Senator SYMINGTON. Defense Intelligence people?
Mr. FLIAKAS. Yes, sir, in the military attaché office.
Senator SYMINGTON. Where do these people live now?

Mr. GERBER. They live now in Brasília, in leased quarters. The renewal of the lease would be exorbitant.

As you know, the inflation rate in Brasília is 18 percent per year. It is estimated that the cost of this new construction would be amortized in a 4-year period.

Senator SYMINGTON. But that inflation helps us, does it not, from the standpoint of their relative inflation against ours in leasing? How much do they pay in Brasília now for leased quarters?

Mr. GERBER. I do not know, sir.

Senator SYMINGTON. It just seems like a lot of money to build down. there in that setup?

Mr. FLIAKAS. We will provide a complete answer for the record. (The information follows:)

The cost of housing for the four military families in Brasilia is $25,250 annually for rent with operation and maintenance costs running $3,780 annually for a total housing cost of $29,030. As indicated in testimony, we anticipate sizable increases in cost upon renewal of existing leases.

Senator SYMINGTON. How do you propose to pay for these houses? Mr. FLIAKAS. Through appropriated funds.

Senator SYMINGTON. Not counterpart?

Mr. FLIAKAS. No, sir.

Senator SYMINGTON. Why not? Have we no counterpart funds in Brazil?

Mr. FLIAKAS. I believe you are speaking of excess foreign currency. Senator SYMINGTON. Yes.

Mr. FLIAKAS. We have none in that country.

SECTION 506

Senator SYMINGTON. Thank you.

In section 506 you request authority to build four sets of quarters at Fort Myer, Va., for the top-ranking enlisted men in the Army, Navy, Air Force, and Marine Corps.

As I understand it, you propose to spend about $32,000 per unit, as opposed to the average cost limitation per unit of $25,000. They will provide about 1,670 square feet of net floor space which is a statutory limitation for the rank of full colonel.

What is this all about?

Mr. FLIAKAS. These billets were created a few years ago to provide a top NCO in each military department. Their positions are unique, in that they are required to perform other than usual duties. They do meet with various representatives within their service, and they are required to entertain and to house people, much as representationaltype positions.

We believe that this space is not unreasonable, and that their unique duties do warrant it.

Senator SYMINGTON. Are they adequately housed now in accordance with their rank?

Mr. FLIAKAS. No, sir; they are not.

The Army NCO is living at Fort Myer in an enlisted man's quarters that has been rehabilitated, but is still not considered adequate. The Navy chief petty officer does occupy a three-bedroom unit at the navy yard, and this, too, is considered inadequate for this position. The Marine Corps sergeant major owns his own private house in Maryland.

The Air Force top NCO is occupying a bachelor enlisted quarters at Bolling. However, his family-he is separated now-his family is in Texas, and they expect when school ends to join him at Andrews.

SECTION 507

Senator SYMINGTON. Under the terms of section 507 you propose to spend about $25,000 each for the repair and renovation of some 12 sets of existing family quarters. Eleven of these are located on the Naval Academy grounds at Annapolis and are an integral part of the Academy complex. These quarters were built, I understand, between 1895 and 1905, and we have previously authorized the repair of 24 of the 25 sets of quarters located there. No doubt this job should be completed.

I do not understand the necessity, however, for spending a like amount to renovate a set of quarters at the naval shipyard in Philadelphia for the commander of the Defense Personnel Support Center, Surely in a city the size of Philadelphia, adequate quarters can be located on the economy. Why must the commander of this support center be located at the shipyard. There must be a more desirable place to live. Will you comment on this observation?

Mr. FLIAKAS. I will expand on this for the record, but he now occupies a set of quarters on the second floor of the Defense Personnel Support Center administrative building. On the ground floor there are guard offices and security offices, and it is just considered inadequate for an officer of his rank. He rejected these quarters, and I believe his deputy is living there now. He has been assigned flag quarters at the shipyard pending authorization and completion of the repair work that we are seeking.

Senator SYMINGTON. He rejected them?

Mr. FLIAKAS. He has a large family, sir, and they were inadequate for his family.

Senator SYMINGTON. For the record, would you supply what it costs to maintain and operate a set of flag or general officer quarters on an average? And supply for the record the operation and maintenance cost of the top 20 such quarters for the past years as well as their locations.

Mr. FLIAKAS. We will.

(The information follows:)

The average cost to maintain and operate our general and flag officers' quarters was $4,145 in Fiscal Year 1970 and $3,988 in Fiscal Year 1971. The attached tables show the operation and maintenance costs for the top twenty quarters in Fiscal Years 1970 and 1971.

GENERAL AND FLAG OFFICERS QUARTERS, OPERATION AND MAINTENANCE COSTS FOR THE TOP 20

Senator SYMINGTON. Since the bill was submitted to the Congress this year, the Air Force Department has requested that $18,500 be included under this section for renovation of a set of quarters at Mildenhall, England, for use by the commander of the 3d Air Force. I believe this results from the move of the 3d Air Force Headquarters, and if you have the details, will you supply them for the record. Mr. FLIAKAS. It has our approval, and we will provide the details. (The information follows:)

The family housing unit is required for the Commander of the Third Air Force which has been relocated from South Ruislip Air Station to Mildenhall, England. The Third Air Force Commander will be the ranking Air Force representative in the United Kingdom. There is no on-base unit that presently meets the desired standard since no general officer has previously been assigned to Mildenhall. The on-base unit selected for renovation is of brick construction and was acquired when the Air Force originally occupied the base after World War II. The unit lacks central heating, modern kitchen and bath facilities, and it re

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quires interior rearrangement of walls, repairing or replacement of electrical and plumbing lines, and interior painting. Cost of this necessary work is estimated at approximately $18,500. It was found to be more economical to repair and improve this on-base unit rather than to lease a quarters in the area. The cost of leasing a unit in the Mildenhall area would average five to six thousand dollars annually.

SECTION 508

Senator SYMINGTON. In section 508 you are asking for an extension of the leased housing program and several other changes in relation thereto. This program seems to become more of an enigma every year.

As you know, the Congress has found it necessary to curb this program in the past to keep it within the realm of good management and the original intent of the Congress. Now let us analyze your request step by step.

First, you ask for an increase in the number of units that may be placed under lease from 10,000 to 12,000 units. Only last year we increased this ceiling from 7,500 to 10,000 based upon your presentation that an increase was warranted primarily due to an increase in the recruiting service by 2,850 persons to man some 748 new recruiting stations in implementation of Project Volunteer. While you requested 11,000, you were granted only 10,000 since your projected increase in personnel coupled with the units that were available to you that were not under lease indicated that 10,000 units were enough.

Now I understand you propose to allocate 4,991 units during fiscal year 1973 to recruiter personnel. You also ask to again broaden this provision to permit the leasing of housing for personnel attending school irrespective of whether it is a service school.

In retrospect, I question our judgment in broadening this authority last year to include personnel attending service schools since it seems to have brought on more problems.

Why do you think this increase is necessary? Will you supply that for the record?

Mr. FLIAKAS. Yes, sir.

(The information follows:)

For Fiscal Year 1973 the proposed increase of 2,900 units is based predominantly on further inceased allocations of leased housing for recruiters, ROTC, and Reserve Training for all the Military Departments in support of efforts to move in the direction of a Volunteer Force. The proposed lease alocations for FY 1973 for recruiters is:

Recruiters constitute almost 39% of our proposed FY 1973 program. Since 1969 recruiting manpower has risen by 8,000 spaces, to the level of the 21,000 personnel requested for FY 1973.

Mr. FLIAKAS. I would like to say that there has been a substantial increase in the number of personnel allocated to the recruiting commands, and this has grown dramatically, from 8,000 bases in 1969 to over 21,000 personnel that are requested for fiscal year 1973. And many

of these people, of course, are away from duty station; they are in areas where adequate housing just cannot be found.

Senator SYMINGTON. Will you supply a breakdown as to how you will allocate these additional units if approved; that is, for recruiters, students, and so forth?

Mr. FLIAKAS. Yes, sir, Mr. Chairman.

(The information follows:)

PROPOSED ALLOCATION OF 2,900 ADDITIONAL DOMESTIC LEASES REQUESTED FOR FISCAL YEAR 1973

Senator SYMINGTON. If the rent of a leased unit exceeds the occupant's rental allowance, how is the difference made up?

Mr. FLIAKAS. When he is assigned to lease quarters, those quarters become what are called public quarters, and he forfeits his BAQ. It is not made up by the individual. The Government leases the quarters and he forfeits his BAQ for the privilege of living in those quarters.

Senator SYMINGTON. In other words, the difference between the occupant's rental allowance and the amount of the lease is additional subsidy for the person occupying the housing which he would not receive if he were on his own; right?

Mr. FLIAKAS. That is correct.

Senator SYMINGTON. If we should delete the service school requirements from this bill, what would it amount to? That is, how many other students of various kinds would be eligible for this type of housing?

Mr. FLIAKAS. Do you have figures on that, Mr. Arrington?

Mr. ARRINGTON. We do not have a separate breakout on student expansion, but we can supply that for the record.

Senator SYMINGTON. Would you supply it?

Mr. FLIAKAS. Yes, Mr. Chairman.

(The information follows:)

Department of the Army has approximately 1,250 personnel attending civilian colleges and universities on PCS orders who would be eligible for Government leased family housing if leasing for this category of students were authorized.

Department of the Navy has two academic programs being conducted at civilian colleges and universities. The first program is the Associated Degree Completion Program which requires 6 additional years' commitment for enlisted personnel and the two years' commitment for each year in the program for officers, 1,123 Navy personnel are currently enrolled at 12 junior colleges. The student enrollment is expected to increase to 2,000 during FY 1973. The second program is the Naval Enlisted Scientific Educational Program which involves 21 Universities. Currently 1,126 enlisted personnel are enrolled in these Universities of whom 824 have dependents. The student enrollment is expected to increase to 1,250 during FY 1973.

Department of the Air Force has 330 PCS students scheduled to enter the Airman Education and Commissioning Program. These students enter as E-5's and spend 24 to 27 months in civilian schools to finish their bachelors degree.