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COORDINATION WITH BUREAU OF RECLAMATION

The foregoing remarks complete my coverage of several improvements that relate directly to the stipulated desires of the committees of Congress. However, we have made other improvements on our own in the past year which I think will also be of interest to the committee and to the Nation. For example, you will find that there is now very close coordination between the Corps of Engineers and the Department of the Interior.

While there has been, unfortunately, much exaggeration of the differences between the corps and the Bureau of Reclamation, it cannot be denied that certain policies conflicted. But I am now happy to report that the controversies which loomed so large in recent years have largely been eliminated or are well along toward amicable and effective settlement.

Secretary Stevens and Secretary McKay early last year made it a matter of personal concern that the old issues be settled or referred to proper higher authority for determination. We have had numerous meetings and other discussions with Secretaries McKay, Tudor, and Aandahl and without exception have been able to find common meeting ground.

I can say in all sincerity that our two departments are now working in close harmony, and I shall continue my personal efforts to continue the wholehearted collaboration. I am confident that Secretary McKay and his Under Secretary and Assistant Secretaries reciprocate this view. This collaboration should also do much toward the development of sound national water policies by agencies which are fairly familiar with the problems.

Coordination of the corps' work with the watershed work of the Soil Conservation Service has also been a subject of intensive collaboration with officials of the Department of Agriculture in recent weeks. Assistant Secretary Coke has devoted much time and effort to the meetings that we have had, and are still having.

MEMORANDUM OF UNDERSTANDING

To illustrate the genuine desire for interagency cooperation that now exists among the Departments of Interior, Agriculture, and Army, I may cite the memorandum of understanding on the ArkansasWhite-Red Rivers survey signed on November 25 by Secretaries Mekay, Benson, and Stevens. The memorandum also establishes a Committee of Assistant Secretaries to assure full and continuous coordination of the three departments in the A-W-R survey and to decide quickly on matters which cannot be settled in the field.

Senator McCLELLAN. General, do I understand from that that in this overall survey of the Arkansas-White River Basin this Commission that was established is working in harmony and have the same yardsticks to measure benefits?

General STURGIS, I would say, Senator, that there are many basic problems that have come to light that have been the cause of difficulties in getting along in the field. What this really does is set up an agreement or understanding which does have an approach for solving these problems. I could not sit here and guarantee that other problems will not come up, but I would like to point out what it provides

is reference of the problems as they come up to higher authority in the sense stead of boiling in the field and reaching no solution.

refine th The problems are then referred to the Committee of Secretaries is ten more where they can be solved at the top level, because many of the difficul. Esiet eng ties down there have been that the field agencies follow policies that si ind are really established by their higher echelons. Therefore, they could there. V not very well get together on them. The only place you can get the us can together on them is up in the top level of the departments themselves.

Senator McCLELLAN. In other words, where any serious disagreement develops in the lower echelons, it is now brought up here and the top Secretaries resolve it!

General Sturgis. Yes, sir. This agreement has been in effect now study for a couple of months. So far as I know, there has been no occasion of the fie for the reference of a problem so far.

Senator McCLELLAN. This memorandum you are speaking of serves as a guide to all of the participants of the different agencies involved?

Andred General STURGIS. Yes, sir.

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TECHNICAL CONSULTANT

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Also not mentioned here is the appointment of a consultant who will sit with the Committee and advise the Secretaries if any problem is referred to them. He will be an impersonal, technical consultant. He has not been appointed yet, and that matter has been before the Bureau of the Budget. The departments concerned-Interior, Agriculture, and ours—have made a joint recommendation of a number of names, but no appointment has as yet been made. We have gotten together, as far as the department heads are concerned, on names of 6 or 7 people agreeable to all of us.

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REAL ESTATE POLICY

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As the number of reservoirs in operation has increased, we have found ourselves the custodians of a large amount of federally owned land. Recognizing the undesirability of concentrating ownership in the Government, we have revised our real-estate policy so as to acquire only the minimum land essential to the construction, operation, and maintenance of our projects.

Secretary Stevens has taken a direct interest in this matter and has participated personally in the formation of the new policy. When fully effective, it will decrease significantly the costs of land for reservoirs. Of equal or greater importance are the facts that less land will be removed from local tax rolls and that there will be less land requiring supervision and administration by the Government with the costs attendant to those duties. The new real-estate policy, after approval by Secretary Stevens, was worked out in collaboration with the Department of the Interior and both Departments jointly announced its adoption. This is another example of the close cooperation and unity of action between the Departments of the Interior and Army.

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IMPROVED BUDGET AND ACCOUNTING SYSTEM

Last year when we appeared before this committee, we were in the process of setting up a new and improved budget and accounting system. The system has now been in full effect for more than 6 months

w it is proving to be as useful and successful as we had hoped. We are now moving to refine the system and simplify it where feasible in osier to make it even more useful as a tool for field control by job Epervisors and district engineers. I am glad to know that the comDitee and your staff find the system supplying needed information batter than ever before. With a little more experience I am sure the *h to you and to us can be further enhanced.

CONSOLIDATION OF OFFICES

The Corps of Engineers and the Secretary of the Army have given I thought and study to possible improvements through changes

the structure of the field organization of the Corps of Engineers, Duding consolidation of some district and division offices. During ** Fear the Northeast and North military construction districts have town consolidated and relatively minor readjustments effected in conLoraldi-tricts. Many other possible consolidations have been and 1. bring studied. It has not been conclusively evident that the prosfet ve economies would be sufficient to warrant, at this time, the maut dislocation of persons and the temporary administrative

zion that would be occasioned. The field organization of the Corps of Engineers is never static en workloads shift as between civil and military construction and

within these activities. Furthermore, for the first time since the Krpan emergency began in the summer of 1950, an appreciable numbep of new starts is included in our budget. If the Congress concludes : 1. Dew starts should be made in fiscal year 1955, it will have a very ariable impact on the problem of field organization. 1. adition to these factors, anticipated changes in the size and

of the Air Force and Army construction program during the .*.* Vear may require further evaluation to determine what

zational structure can best serve both the changed civil and arv programs. In view of these considerations, it has been im wie to proceed slowly and cautiously with any major condations. As it becomes more clear what the fiscal year 1955

tam will be, on both civil and military, the Corps of Engineers sike better able to appraise the situation and make whatever field ... Teruents and consolidations appear sound from the standpoints

(.al defense and economy.

*7. I 8. MAJOR PROBLEMS OF ADVERSE EFFECT TO OPERATIONS BUT

BEYOND CORPS CONTROL I have discussed a few of the problems where we were able to :-.ertake solutions as directed by the committee of Congress or m'y on our own responsibility because we had the means and ****ity to proceed. There are many other important matters that

annt were on our own but which have a profound effect on the z. and the work for which we are responsible. i'lere alrearly mentioned that the most important problem affecting

Oy is our deteriorating personnel situation. While our : ''ary [sunnel situation is currently very critical, indeed, the

1.981 mmnnel situation is a threat to our future. sateur MCLFLLAN. What is that situation with respect to the ...

nnel? What is causing that problem?

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is reference of the problems as they come up to higher authority instead of boiling in the field and reaching no solution.

The problems are then referred to the Committee of Secretaries where they can be solved at the top level, because many of the difficulties down there have been that the field agencies follow policies that are really established by their higher echelons. Therefore, they could not very well get together on them. The only place you can get together on them is up in the top level of the departments themselves.

Senator McCLELLAN. In other words, where any serious disagreement develops in the lower echelons, it is now brought up here and the top Secretaries resolve it?

General STURGIS. Yes, sir. This agreement has been in effect now for a couple of months. So far as I know, there has been no occasion for the reference of a problem so far.

Senator McCLELLAN. This memorandum you are speaking of serves as a guide to all of the participants of the different agencies involved?

General STURGIS. Yes, sir.

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TECHNICAL CONSULTANT

Also not mentioned here is the appointment of a consultant who will sit with the Committee and advise the Secretaries if any problem is referred to them. He will be an impersonal, technical consultant. He has not been appointed yet, and that matter has been before the Bureau of the Budget. The departments concerned—Interior, Agriculture, and ours—have made a joint recommendation of a number of names, but no appointment has as yet been made. We have gotten together, as far as the department heads are concerned, on names of 6 or 7 people agreeable to all of us.

REAL ESTATE POLICY

As the number of reservoirs in operation has increased, we have found ourselves the custodians of a large amount of federally owned land. Recognizing the undesirability of concentrating ownership in the Government, we have revised our real-estate policy so as to acquire only the minimum land essential to the construction, operation, and maintenance of our projects.

Secretary Stevens has taken a direct interest in this matter and has participated personally in the formation of the new policy. When fully effective, it will decrease significantly the costs of land for reser, voirs. Of equal or greater importance are the facts that less land will be removed from local tax rolls and that there will be less land requiring supervision and administration by the Government with the costs attendant to those duties. The new real-estate policy, after approval by Secretary Stevens, was worked out in collaboration with the Department of the Interior and both Departments jointly announced its adoption. This is another example of the close cooperation and unity of action between the Departments of the Interior and Army.

IMPROVED BUDGET AND ACCOUNTING SYSTEM

Last year when we appeared before this committee, we were in the process of setting up a new and improved budget and accounting system. The system has now been in full effect for more than 6 months

and it is proving to be as useful and successful as we had hoped. We are now moving to refine the system and simplify it where feasible in order to make it even more useful as a tool for field control by job supervisors and district engineers. I am glad to know that the committee and your staff find the system supplying needed information better than ever before. With a little more experience I am sure the worth to you and to us can be further enhanced.

CONSOLIDATION OF OFFICES

The Corps of Engineers and the Secretary of the Army have given much thought and study to possible improvements through changes in the structure of the field organization of the Corps of Engineers, including consolidation of some district and division offices. During the year the Northeast and North military construction districts have been consolidated and relatively minor readjustments effected in continental districts. Many other possible consolidations have been and are being studied. It has not been conclusively evident that the prospective economies would be sufficient to warrant, at this time, the resultant dislocation of persons and the temporary administrative confusion that would be occasioned.

The field organization of the Corps of Engineers is never static since workloads shift as between civil and military construction and also within these activities. Furthermore, for the first time since the Korean emergency began in the summer of 1950, an appreciable number of new starts is included in our budget. If the Congress concludes that new starts should be made in fiscal year 1955, it will have a very appreciable impact on the problem of field organization.

In addition to these factors, anticipated changes in the size and scope of the Air Force and Army construction program during the coming year may require further evaluation to determine what organizational structure can best serve both the changed civil and military programs. In view of these considerations, it has been deemed wise to proceed slowly and cautiously with any major consolidations. As it becomes more clear what the fiscal year 1955 program will be, on both civil and military, the Corps of Engineers will be better able to appraise the situation and make whatever field realinements and consolidations appear sound from the standpoints of national defense and economy.

SECTION IV. MAJOR PROBLEMS OF ADVERSE EFFECT TO OPERATIONS BUT

BEYOND CORPS CONTROL

I have discussed a few of the problems where we were able to undertake solutions as directed by the committee of Congress or largely on our own responsibility because we had the means and authority to proceed. There are many other important matters that we cannot solve on our own but which have a profound effect on the corps and the work for which we are responsible.

I have already mentioned that the most important problem affecting our efficiency is our deteriorating personnel situation. While our military personnel situation is currently very critical, indeed, the civilian personnel situation is a threat to our future.

Senator McCLELLAN. What is that situation with respect to the civilian personnel? What is causing that problem?

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