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Laergy/White House relationship is in accordance with the Atomic

Energy Act of 1954, and the subsequent legislation establishing the

Department of Energy.

Dr. Wagner, who will follow me ia presenting his testimony, will

elaborate further on the cooperative relationship between our two

Departments.

ADJUSTING TO CHANGE

Because the work of our organization is vital to the national

defense, we must strive to conduct our business in a manner that

will prompt neither a negative public nor regulatory reaction which

could threaten to compromise our ability to get the job done; we

pust manage our business in ways that we

as citizens, would hope

that other industrial operations would be managed.

This means our operations must be carried out in a secure, safe,

and environmentally responsible manner. In addition, our operations Bust produce the required weapons quantities while meeting the stringent quality requirements that will assure their safety and reliability. All of our efforts must be managed efficiently and

economically.

In recent years the operational standards against which we must

work have been changing.

The experience of the Three Mile Island

lacident has tightened the standards and practice for the operation

of defense related reactors.

The increasing world-wide incidence

of terrorist activities has required that we enhance the physical security afforded nuclear materials in our sensitive facilities. Our ongoing efforts to effectively manage radioactivity since the

inception of our program have paid off; but now, the adequacy of

previously accepted industrial standards and practices for management

of other chemicals and waste for the protection of the environment

and the public 18 more and more coming into question.

We are adjusting to each of these changes in a careful, responsible way.

We have reviewed our most critical facilities and operations

to define areas needing improvement.

We are continuing these

studies throughout the Defense Programs complex.

We have developed

prioritized plans for addressing the identified deficiences.

Our

Fiscal Year 1984 supplemental request and our Fiscal Year 1985

budget request that we will justify to you, contain near-term

priority upgrades necessary to correct known deficiencies:

Our

primary responsibility, however, is to produce and maintain the

nuclear weapons stockpile in a safe ; . secure, and environmentally responsible manner.

THE ISSUES

In their testimony following my statement, the Defense Programs
Deputy Assistant Secretaries will be describing their responsi-

bilities and the manner in which they are addressed in the Fiscal

Year 1985 budget and Fiscal Year 1984 supplemental request.

They will cover the major issues and challenges before them, and

they will address the security, safety, and environmental actions

proposed and underway to assure the success of their programs.

General Hoover, the Deputy Assistant Secretary for Military

Application, will address the reasons why, in support of the

Defense Department, we

are engaged in a substantial effort to

replace the older weapons in the United States arsenal with more

advanced state-of-the-art systems along with some of the technical

challenges involved in pursuing the President's Strategic Defense

Initiative and other weapon developments.

Dr. Gilbert, the Deputy Assistant Secretary for Nuclear Materials,

will discuss the reasons why the Department must continue to produce

increased quantities of plutonium and tritium for the weapon program

and the steps we

are planning, to provide for responsible interim

and long-term management of our radioactive waste.

Mr. Culpepper, the Deputy Assistant Secretary for Security Affairs,

will discuss with you the issues associated with safeguards

and security at

our nuclear facilities, classification concerns and

activities of the Verification and Control Technology program.

BUDGET REQUESTS

(Chart 3)

Our Fiscal Year 1985 appropriation request for Defense

Programs totals $7.3 billion.

In addition the request for the

Fiscal Year 1984 Supplemental is $157.6 million (Chart 4).

General Hoover, Dr. Gilbert, and Mr. Culpepper will explain in

detail the specific requirements for their programs.

(Chart 5)

Because our work is in direct support of the United

States military nuclear forces, it seems appropriate, for

perspective, to compare the size of the Department's Defense

Programs effort to the combined total of the nuclear force effort

in the Department of Defense and in the Department of Energy.

In

that context, in Fiscal Year 1985, our budget request comprises

about 15 percent of the total.

In Fiscal Year 1984, the

percentage is about 15 percent, and in Fiscal Year 1983, it was

approximately 14 percent.

in the context of prior year budgets, our Fiscal Year 1985 request

and the Fiscal Year 1984 supplemental may

seen large.

I suggest

that in the context of the Department of Defense budget for nuclear

weapon systems,

our request is not only very reasonable, but it is

also consistent with Congressional action in prior years.

While we are all concerned about budget deficits, our primary

objective within Defense Programs is to provide the nuclear warheads

to support the strategic posture of the Administration.

We believe

our budget request will continue

to provide for balanced support of

the Department of Defense.

I will be pleased to

answer any questions the Committee may have.

BIOGRAPHICAL SKETCH

ROBERT L. MORGAN

Robert L. Morgan was appointed Principal Deputy Assistant Secretary for Defense Programs, U.s. Department of Energy (DOE) on January 3, 1984. He also continues in his dual position as Manager of the Department's Savannah River Operations office in South Carolina, which he has held since March 1, 1980. Prior to his new appointment as Principal Deputy in the Defense Programs office, Mr. Morgan served as Director of Doe's Nuclear Waste Policy Act Project office since appointment on January 31, 1983. Mr. Morgan began working with the u.s. reactor development program in 1959 while with the U.S. Army at the Idaho Operations Office of the then, Atomic Energy Commission. In June 1965, he resigned his commission and accepted a position at the Savannah River Operations office. He was concerned with the development of work in the Heavy Water Organic Cooled Power Reactor program and when the program was transferred to Canogo Park, California in 1966, Mr, Morgan became the Senior Representative at that site for reactor development programs. Mr. Morgan rejoined the staff at the Savannah River Operations office in July 1973 as Deputy Manager. In November 1977, he was detailed to DOE Headquarters in Washington where he first served as Acting Director for Field Operations Management for the Assistant Secretary for Energy Technology. In May 1978, he was assigned as Acting Director of the office of Nuclear waste Management. He returned to full time status at the Savannah River Operations Office in November 1978 where, in addition to his duties as Deputy Manager, he also served as Assistant Manager for Health, Safety and Environment.

In February 1981, Mr. Morgan was once again detailed to DOE'S
Washington Headquarters to serve as Acting Assistant Secretary
for Defense Programs, and in July 1983, as Acting Deputy Under
Secretary. Since 1981, Mr. Morgan has also served as the Depart-
ment's representative to the Southeastern Federal Regional
Council and the Southern States Energy Board.
Mr. Morgan graduated with a B.s. degree from the U.S. Military
Academy in 1952, and an M.s. degree in civil and Nuclear
Engineering from the Massachusetts Institute of Technology in 1959.
He is married to the former Arden Park of Hayward, California, and
they have three children. They reside in Aiken, South Carolina.
February 1984

DEFENSE PROGRAMS

Chart 1

DEFENSE PROGRAMS MISSION

• DESIGN, TEST AND MANUFACTURE ALL U.S. NUCLEAR WEAPONS

• DEVELOP INERTIAL FUSION IN SUPPORT OF THE

NATION'S MILITARY NEEDS

• PRODUCE ALL NUCLEAR MATERIALS REQUIRED FOR THE U.S. WEAPONS PROGRAM AND MANAGE DEFENSE NUCLEAR WASTE

• ENSURE THE PROTECTION, CONTROL AND

ACCOUNTABILITY OF SPECIAL NUCLEAR MATERIALS AND DOE FACILITIES

• ENSURE VERIFICATION OF INTERNATIONAL ARMS AGREEMENTS AND CONTROL THE TRANSFER OF SENSITIVE TECHNOLOGY AND EQUIPMENT

• CONTROL THE DISSEMINATION OF CLASSIFIED

INFORMATION

AUTHORITY

Chart 2

• ATOMIC ENERGY ACT OF 1954, AS AMENDED

(TRANSFERRED TO DOE BY PL 95-91, "DOE ORGANIZATION ACT").

• ANNUAL "NUCLEAR WEAPON STOCKPILE
MEMORANDUM," APPROVED BY THE PRESIDENT,
DIRECTS SPECIFIC WEAPON BUILDS AND
RETIREMENTS.

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