SOVIET TANK PRODUCTION FACILITIES

I might just show you again, by way of a chart, the comparative growth, for example, of tanks.

[The information follows:]

This is a picture that shows one of the three tank plants that the Soviet Union has now in active operation compared to the only U.S. plant. We have those superimposed over the city of Washington, which gives you some idea of the magnitude of their production facilities.

(6) Another weakness has to do with several of our key weapons systems that are outmatched by systems the Soviet Army has fieldedfor instance, infantry combat vehicles, antiaircraft weapons, chemical warfare systems.

COMPARISON OF UNITED STATES-U.S.S.R. CHEMICAL WARFARE CAPABILITY

I have here a chart which shows you the chemical warfare capability that is in the Soviet divisions.

[The chart follows:]

UNITED STATES-U.S.S.R. CHEMICAL UNIT COMPARISONS

Each of the 168 Soviet divisions has what you see in this picture assigned to their units. The smaller box that you see there represents a U.S. divisional chemical unit. We only have three of those.

(7) Another serious problem is the cost of equipment and major spare parts that have, on the average, increased by well over 100 percent in the past 10 years. Our procurement budget of $4.6 billion will permit us to realize a much needed and modest level of equipment modernization.

(8) Sharply rising costs that have deflated the Army's budget, with serious results. Some examples:

(a) The amount of money needed to overcome the backlog of required maintenance and repair of facilities as of the end of fiscal year 1976 is $566 million. The amount required to overcome the depot maintenance backlog as of the end of fiscal year 1976 is $282 million.

(b) The pressures to cut costs are adversely affecting the standard of living and the morale of large numbers of service men and women. (c) Over 25.000 soldiers are performing civilian-type tasks to the detriment of military proficiency and readiness.

Our programs for fiscal year 1977 are based upon a budget that has been pared by about $2 billion in the budget development process.

The Army's fiscal year 1977 budget request is $26.7 billion, composed of $25 billion in the DOD appropriation request now before this subcommittee, and $748 million in military construction. In addition, the OSD contingency contains an estimated $546 million for the Army for pay increases and legislative items giving the total Army share of the Defense estimate of $27.3 billion. Compared with the fiscal year 1976 funding level, this provides approximately $1.4 billion increase in real program growth which will permit the Army to continue a modest improvement in its modernization and force structure equipment acquisitions.

That increase. incidentally, Mr. Chairman, is basically in procurement, in O. & M., and in research and development.

We should recognize, however, that the portion of this increase reflected in the operating accounts will be partially offset by future inflation because we are not allowed to project inflation in those

accounts.

In my opinion, the programs that we are presenting for your consideration are the minimum necessary to maintain the Army and to move it, albeit slowly, toward the objective of a modern, fully ready Army capable of sustained combat.

In brief, the Army's strength and capabilities are essential elements of our foreign policy and the concomitant capacity to safeguard our interests. As indicated in my posture statement, it is a fine, proud Army, and it merits your fullest support.

Thank you, Mr. Chairman.

OFFICE OF THE COMPTROLLER

PREPARED STATEMENT OF MAJ. GEN. RICHARD L. WEST

Chairman MCCLELLAN. Before we proceed to questions, I would like to place in the record at this point the statement by Maj. Gen. Richard L. West, Director of Army Budget, Office of the Comptroller of the Army.

[The statement follows:]

I. INTRODUCTION

Mr. Chairman and members of the Committee; I appreciate this opportunity to present the Army's portion of the Department of Defense Appropriation request, and I look forward to working with you and your staff over the next several weeks as the budget request is reviewed.

The total Army budget for FY 1977 is $26.7 billion. This is $2.6 billion higher than the revised FY 1976 level of $24.1 billion, which includes the pay supplemental. This request

includes $26.0 billion before the Defense Subcommittee and $0.7 billion before the Military Construction Subcommittee. If we add the Army's share of the DoD contingency for military and civilian pay raises of $0.6 billion, the total Army portion of the DoD request becomes $27.3 billion.

A comparison in constant dollars gives a picture of the levels of the Army budget over time. This year's request is somewhat lower than 1964, the last year prior to Viet Nam in which we had a similar 16 division force

structure. Since 1975, an especially depressed year, the trend has been one of gradual increase.

The $2.6 billion increase over FY 1976 includes real program growth of about $1.4 billion; the remaining $1.2 billion is due to inflation. The growth we have planned is to continue equipment modernization, reduce equipment shortages, and begin a modest reduction of real property and depot maintenance backlogs.

Budget Priorities

The program objectives we hope to achieve in FY 1977 are translatable into the following budget priorities:

• Readiness of Forces.

• Maintenance of a Quality Volunteer Force.