**STATEMENT OF**

**GENERAL B. B. BELL**

**COMMANDER, UNITED NATIONS COMMAND;**

**COMMANDER, REPUBLIC OF KOREA-UNITED STATES COMBINED FORCES COMMAND;
AND COMMANDER, UNITED STATES FORCES KOREA**

**BEFORE THE**

**HOUSE APPROPRIATIONS COMMITTEE**

**SUB-COMMITTEE ON MILITARY CONSTRUCTION, VETERANS AFFAIRS AND RELATED
AGENCIES**

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height="2.6944444444444446in"}

**7 March 2007**

**Table of Contents**

[*I. Transforming the Republic of Korea - United States Alliance*
2](#i.-transforming-the-republic-of-korea---united-states-alliance)

[United Nations Command 3](#united-nations-command)

[Combined Forces Command 3](#combined-forces-command)

[United States Forces Korea 4](#united-states-forces-korea)

[Achieving Normalcy for United States Forces Korea
6](#achieving-normalcy-for-united-states-forces-korea)

[Good Neighbor Program 8](#good-neighbor-program)

[Ensuring Equitable Pay 8](#ensuring-equitable-pay)

[Upgrading and Building New Infrastructure
9](#upgrading-and-building-new-infrastructure)

[Fiscal Support for Transformation and Relocation
10](#fiscal-support-for-transformation-and-relocation)

[Build-to-Lease 10](#build-to-lease)

[Military Construction 11](#military-construction)

[Sustainment, Restoration and Modernization Programs
12](#sustainment-restoration-and-modernization-programs)

[Allied Burden Sharing 13](#allied-burden-sharing)

[Benefits of USFK\'s Transformation Plan
14](#benefits-of-usfks-transformation-plan)

[II. Building for the Future 15](#ii.-building-for-the-future)

Mr. Chairman, and distinguished members of the committee, it is a
privilege to appear before you today representing the Soldiers, Sailors,
Airmen, Marines, and Department of Defense Civilians who so capably
serve in the Republic of Korea. On behalf of these outstanding men and
women, I thank you for your sustained commitment to our Nation's armed
forces, and to improving the quality of life of our Servicemembers and
their families. Your continued support enables us to measurably
contribute to the security of our nation and the Republic of Korea
(ROK), while promoting peace and stability in the vitally important
Northeast Asia region. I appreciate this opportunity to report on the
status of our force and our transformation initiatives.

In the Posture Statement I submitted to the House Armed Services
Committee, I focused on the status of our strategic partnership with the
Republic of Korea -- an Alliance that has successfully deterred
aggression and enhanced regional stability for nearly 54 years.
Northeast Asia is a vital national interest area for the United States.
25% of the world\'s trade passes through this area, and indeed 24% of
United States foreign trade is with this area. The Republic of Korea is
our seventh largest global trading partner. It is in our national
interest that northeast Asia remains stable, secure and prosperous. A
healthy and vibrant U.S. Alliance with the Republic of Korea is a
cornerstone to our continued achievement of this important national
interest. As is always the case, we must transform our posture to be
more adaptive and responsive to a changing international security
environment, and the needs of a lasting Alliance. Current and future
United States funding for Military Construction (MILCON), leasing, and
Sustainment, Restoration, and Modernization (SRM), all play a vital role
in enabling these transformational initiatives.

In this statement, I will focus on the United States Forces Korea (USFK)
transformation plan and the importance of your support through the
appropriations of MILCON and SRM funding. Although United States MILCON
is only a small percentage of the total cost for the USFK relocation
program (the Republic of Korea is funding the overwhelming majority of
the cost), it is an extremely important component. Furthermore, the
Republic of Korea sees appropriate U.S. funding as a key signal of
continued United States commitment to the ROK -- U.S. Alliance, and
their fiscal investment in our new facilities.

# I. Transforming the Republic of Korea - United States Alliance 

The ROK Government has requested that military command arrangements
transition from our current Combined Forces Command (CFC) -- where
wartime authority and responsibility is equally shared between the ROK
and the U.S., but led by a U.S. Four Star General -- to a command
structure where ROK forces are in the lead and independently commanded
by the ROK military during wartime. Transitioning the Alliance to a new
ROK-led military command and control structure, with U.S. and United
Nations (UN) forces in a doctrinally supporting role, will establish a
relationship that best serves both nations' interests for the long-term.
The United States supports this arrangement, and it is my assessment
that we can execute this transition with no degradation to Alliance
deterrence or warfighting capabilities. As a point of emphasis, under
the new supporting arrangement, command of U.S. forces will remain under
a U.S. commander with a chain of command back to Washington.

Recently, our governments agreed to transition wartime operational
command and control (OPCON) of ROK forces to the ROK military. We plan
to execute this transition in 2012. I will begin my statement by
summarizing the organizations I currently command in Korea.

## United Nations Command

As the longest standing peace enforcement coalition in the history of
the United Nations, the United Nations Command (UNC) represents the
international community's enduring commitment to the security and
stability of the Korean Peninsula. With fifteen current member \"sending
state\" nations and the ROK, the United Nations Command actively
supervises compliance with the terms of the 1953 Korean Armistice
Agreement, fulfilling the members' mutual pledge to "fully and
faithfully carry out the terms" of the Armistice. The UNC will continue
to have an important role after the ROK--U.S. Alliance wartime OPCON
transfer. The UNC provides the primary conduit to accept international
support from the United Nations in the event of a Korean conflict. We
will ensure that the United Nations Command remains an important
component in deterring aggression, and supporting combat operations
should war break out in Korea.

## Combined Forces Command

Since its inception nearly 30 years ago in 1978, the Combined Forces
Command has been the warfighting command of the Republic of Korea -
United States Alliance. Through authority based on the 1953 Mutual
Defense Treaty, the CFC provides the cornerstone of deterrence against
north Korean aggression, and if deterrence fails, stands ready to fight
and win decisively. Vigilant and well trained, the Combined Forces
Command is the most powerful combined warfighting organization in the
world today. As the commander of CFC, I respond equally to both Alliance
partners, the United States and the Republic of Korea.

We are committed to achieving the goal of a ROK-led defense structure.
Doing so requires a reshaping of the ROK--U.S. military partnership in a
manner that will strengthen our nations' relationship, while
facilitating the Republic of Korea's predominant role in its own
defense. On transfer of wartime OPCON to the ROK military, CFC will be
disestablished and an independent U.S. command will be established. Our
Combined Implementation Working Group has been charged with developing
the construct under which the Alliance will function after OPCON of ROK
forces in wartime has transferred to the ROK in 2012.

## United States Forces Korea

This is the headquarters that exercises command authority over all U.S.
forces committed to Korea in peace or war. The United States and
Republic of Korea governments agreed to the reduction of 12,500 USFK
personnel over a five-year period beginning in 2004. Between 2004 and
2005 we reduced 8,000 troops, including the deployment of the Second
Infantry Division\'s 2^nd^ Brigade Combat Team (BCT) to Iraq which was
subsequently relocated to Fort Carson, Colorado.

In late 2004, the Yongsan Relocation Plan (YRP) -- a government to
government agreement -- was signed and ratified. Under that agreement,
USFK elements assigned to the Yongsan Garrison in Seoul will relocate to
Camp Humphreys, near Pyongtaek, over 60 kilometers to the southwest. The
relocation of the 2nd Infantry Division (2ID) from camps north of Seoul
and near the demilitarized zone (DMZ) is also part of the realignment
plan which, when complete, will allow United States forces to assume a
more efficient and less intrusive footprint within two hubs of enduring
installations. Sustained funding for our military construction projects,
particularly Army construction, coupled with significant host
nation-funded construction by the Republic of Korea, is crucial for this
plan to remain on track.

The relocation plan is already underway. The Republic of Korea has
purchased 2,800 acres of land required to expand the Army\'s Camp
Humphreys and the Air Force\'s Osan Air Base. It is in the process of
purchasing more than 250 acres at the Air Force\'s Kunsan Air Base to
accommodate relocation efforts there. We have awarded a contract to
develop the first 205 acres at Camp Humphreys to accommodate the Army\'s
FY07 construction program.

We have closed 36 installations encompassing over 16,700 acres with a
tax assessed value of over \$500 million and returned 30 installations
to the Republic of Korea. In accordance with our Status of Forces
Agreement, we have transferred -- free to the Republic of Korea -- all
buildings, capital assets, and improvements located on these
installations, many built with U.S. MILCON dollars. It remains our goal
to close a total of 59 camps and facilities -- totaling over 38,000
acres.

#### Achieving Normalcy for United States Forces Korea

In the past 54 years, South Korea has transformed from a war ravaged
country to one of the most modern, progressive, democratic and free
countries in the world. It is highly competitive with the most advanced
economies in the world. Their medical system is world class and their
universities renowned. Their industries and businesses are credited with
superb worldwide innovation and reliability. Unfortunately, in a modern
and vibrant Republic of Korea, we still annually rotate Servicemembers
in and out as though this remained an active combat zone. It is not. We
currently authorize only 2,900 of our current 29,000 Servicemember force
(10%) to bring their families to Korea. In comparison to this,
historically, the United States was willing and ready to face down the
Soviet Union in Europe while stationing forces and families with their
Servicemembers there on accompanied tours. We willingly took this risk
facing over a hundred divisions of enemy forces equipped with hundreds
of tactical and theater nuclear weapons. My son was born 12 kilometers
across an inter-zonal border from several Soviet divisions. With this as
a backdrop and given the U.S. military\'s high worldwide operations and
personnel tempo rates, it is certainly time to consider the manner in
which we rotate Servicemembers to U.S. Forces Korea.

Given the nature of the Global War on Terrorism, the U.S. military will
continue rotational commitments to active combat zones for years to
come. With continued short tour rotations to a modern Korea, we
needlessly contribute to increased rotational turbulence of a total
force already under great rotational stress. Furthermore, annually
rotating up to 90 percent of our force in Korea strains our ability to
maintain a ready force, and we spend too much permanent change of
station (PCS) money rotating our troops each year. We need to keep
troops, leaders, and commanders in position longer for stability and
continuity. It does not serve our national interests in Korea to
annually rotate forces and station Servicemembers on short,
unaccompanied tours as a baseline to our commitment on this peninsula.

With about 2% of the active military force committed to service in
Korea, the United States can easily afford to do what is right and
endorse normal three year accompanied and two year unaccompanied tours
in Korea, much like we endorse in Japan. We need to initially double our
authorized accompanied tour limit, then -- over time -- provide the
facilities and infrastructure to authorize full accompanied tours for
our forces. Having spent 14 years of my military service overseas in
Korea, Europe, and the Middle East, living and working in both
accompanied and unaccompanied environments, it is my best judgment and
recommendation that for the health of our Alliance and the nation\'s
engagement strategy, a commitment to a reasonable level of normal
accompanied tours overseas is decidedly in the best interests of the
United States. I will soon submit formal proposals to the Department of
Defense in pursuit of this policy. If and when the budget proposals to
resource this policy formally arrive in front of Congress, our
Servicemembers and their families would deeply appreciate your favorable
consideration and support. The ROK-U.S. Alliance will measurably
benefit.

#### Good Neighbor Program

The Good Neighbor Program is a USFK hallmark for fostering harmonious
relations between our Servicemembers and the Republic of Korea
citizenry. The key pillars include community relations programs, Korean
cultural awareness programs and ROK--U.S. military-to-military
activities. Some examples include Servicemembers and their families
teaching English to Korean children, volunteering in orphanages, and
assisting with humanitarian projects and conservation efforts. Korean
families also invite Servicemembers to their homes to experience Korean
hospitality and participate in cultural tours, and U.S. commanders host
local government officials to orient them to the military mission. We
see the benefits of the program every day. The Good Neighbor Program
improves the understanding and support of the Korean community for the
strategic mission of USFK, and effectively demonstrates the respect of
USFK Servicemembers for the laws, history, culture, and customs of the
Republic of Korea. When we are authorized to increase our family
accompanied tours, the effectiveness of the Good Neighbor Program will
increase proportionally.

#### Ensuring Equitable Pay

Major improvements have been made in pay disparity in the Republic of
Korea. For the first time in over 50 years of the Alliance, a Cost of
Living Allowance was authorized in 2003. Additionally, the Army and the
Air Force implemented the Assignment Incentive Pay (AIP) Program,
authorizing a cash incentive for Servicemembers who are willing to
extend their tours in Korea. So far, over 16,000 Soldiers and Airmen
have volunteered for AIP, saving the Department of Defense over \$78
million in permanent change of station costs. Following the great
success of the Army and Air Force AIP programs, in January 2006, the
Navy implemented this program for its Sailors. The combined effect of
reduced permanent change of station costs and increased stabilization is
a win-win situation. However, while AIP has been a major success for our
unaccompanied Servicemembers (90% of the force), accepting AIP means
longer separations from family back home in the States. Nonetheless, the
AIP program is a superb success and your continued support will help
improve the stability, predictability, and operational readiness of our
force.

#### Upgrading and Building New Infrastructure 

We have long promised our U.S. military personnel and their families an
improved quality of life while stationed in Korea. Our Servicemembers
are committed to the Alliance and they are ready to fight and die to
preserve the peace here. They deserve high quality living and working
conditions and we cannot fail them in this pursuit. I consider
improvements in facilities, housing, and quality of life infrastructure
for my Servicemembers and their families long overdue and necessary
immediately.

The President's Fiscal Year 2008 budget request includes military
construction projects that are essential to our forces in Korea and
critical to the execution of our overall relocation master plan. If
authorized and appropriated by the United States Congress in the FY08
budget, those critical projects -- barracks at Camp Humphreys -- will be
completed and ready for use in 2010.

We have a U.S. - ROK Master Pan for the allocation of all resources
relating to the relocation of USFK south of Seoul. It is focused on
redevelopment and expansion of our enduring installations. This is
accomplished by combining existing facilities with new facilities
sourced by a combination of United States MILCON funds, Republic of
Korea host nation-funds burden sharing funds, and private industry
build-to-lease projects. The result will be planned communities that
will integrate work spaces / areas, barracks, dormitories, family
housing, schools, day care centers, religious facilities, shopping
areas, and MWR activities.

#### Fiscal Support for Transformation and Relocation

Many of our Servicemembers are forced to live in very substandard
housing--- whether in military facilities or in crowded urban areas
outside our installations. Our realignment to two enduring hubs will
allow us to focus on improving living and working conditions. To this
end, sustained access to several different funding programs, including
commercial Build-To-Lease (BTL), Military Construction, SRM and Allied
Burden Sharing will be essential.

##### *[Build-to-Lease]{.underline}*

I am particularly supportive of the Army\'s requirement to meet our
national commitments in realigning Joint forces from Seoul and Army
forces north of Seoul to a modernized Camp Humphreys. For example, the
Army is pursuing build-to-lease opportunities to meet housing
requirements. Build-to-lease provides a quality, cost effective housing
option using South Korean capital investment, and I strongly support the
Army\'s pursuit of this effort to leverage private capital.
Unfortunately, our current legislative lease cap authority does not
allow us to keep pace with housing market costs in Korea. The Army is
aggressively seeking your support to ensure that our lease cap authority
delivers the appropriate purchasing power to enable the build-to-lease
program to succeed. I strongly support the Army's efforts to meet our
housing requirements and also ask for your favorable and expeditious
approval of our legislative proposal to establish the necessary lease
cap authority for build-to-lease. Continued support for family housing
construction in Korea through commercial build-to-lease projects will
help ensure quality housing for all of our Servicemembers' families.
Again, this program is essential to the Army\'s efforts to relocate our
forces from north of and in Seoul, to south of Seoul, and supports
national agreements the U.S government has concluded with the Republic
of Korea. Unless we receive timely approval for lease cap authority
adjustments, it will be extremely difficult, if not impossible, for the
Army to synchronize its construction program in Korea with ongoing
burden sharing building efforts by the Korean Government on our behalf.

##### *[Military Construction]{.underline}*

The Military Services are working towards achieving the Department of
Defense\' goal to house all USFK Servicemembers and their families in
adequate installation housing as soon as possible. To improve the
unaccompanied senior enlisted and officer quarters, the Army has
contracted a commercial BTL project at K-16 Air Base and plans similar
projects at Camp Humphreys. We recently completed two host nation-funded
construction projects in our southeast hub to provide barracks space for
our Marines and Sailors at Camp Mu Juk in Pohang.

The Army and Air Force are using targeted MILCON to build unaccompanied
housing facilities at Camp Humphreys and Osan and Kunsan Air Bases. For
FY08, the Army is requesting \$57 million in military construction funds
to build two additional barracks complexes at Camp Humphreys. These
projects are summarized in Table 1.

  --------------------------- -------------------- ----------------------
  **Table 1. FY08 United                           
  States Military                                  
  Construction Projects for                        
  Korea**                                          

  **Project Description**     **Location**         **Program Authority
                                                   (\$M)**

  **Army Projects**                                

  Barracks Complex            Camp Humphreys       \$22.00

  Barracks Complex            Camp Humphreys       \$35.00

                              ***Total Program***  **\$57.00**
  --------------------------- -------------------- ----------------------

As we move forward in our partnership with the Republic of Korea to
construct new USFK facilities, I request your continued support into the
future to build necessary Army barracks at Camp Humphreys for our
Soldiers and Air Force dormitories at Osan Air Base for our Airmen.

##### *[Sustainment, Restoration and Modernization Programs]{.underline}* 

The challenge to recapitalizing our infrastructure is substantial and
continues to be significantly under-funded. Our facilities and
infrastructure are old with over one-third of the buildings in the
command aged between 25 and 50 years, and another one-third classified
as temporary structures. Due to previously under-funded Sustainment,
Restoration and Modernization Programs by the Services, many buildings
have deferred maintenance which only perpetuates the problem. Many of
these buildings are ones that we will retain, even as we relocate
portions of the force.

In 2006, Eighth United States Army was under funded by 18 percent (\$20
million) in sustainment and 70 percent (\$246 million) in restoration
and modernization requirements. The Seventh Air Force was under funded
by 24 percent (\$12 million) in sustainment and 90 percent (\$361
million) in restoration and modernization requirements. Without the
funds to sustain, restore, and modernize our facilities, our
Servicemembers will be relegated to live and work in run-down,
dilapidated, patched-up facilities.

An adequate SRM profile for each of the Services is absolutely essential
if we are to maximize the appropriated MILCON dollars we receive. Your
support for our SRM program requirements, combined with host-nation
burden sharing contributions, is critical to complete infrastructure
renewal and enhance programs for both our force protection and the
quality of life of our Servicemembers and their families.

##### *[Allied Burden Sharing]{.underline}* 

As we work to move our facilities to two enduring hubs, the Republic of
Korea has committed to a significant share of the fiscal burden. Through
negotiated agreements, the Republic of Korea has agreed to fund a large
majority of our relocation costs. This commitment by our Ally is greatly
appreciated and requires a continued good faith commitment by the United
States as well. Clearly, defense burden sharing is advantageous to both
Alliance partners. For the United States, the Republic of Korea's
willingness to equitably share appropriate defense costs is a clear
indicator that United States forces in Korea are welcome and wanted.
While the Republic of Korea is committed to significantly assist in our
relocation efforts, burden sharing monies are also essential to the
daily sustainment of our force, and are the source of funds we use to
pay our Korean national workforce and construct selected facilities.
Towards this end, past burden sharing contributions by the ROK have not
achieved the agreed principle of equitable cost sharing which the United
States views as a 50-50 equal share of the USFK annual stationing costs.
For example, in calendar year 2006, the ROK provided USFK with
approximately 38% of our non-personnel stationing costs, short of a
preferred 50% equitable contribution. This year, the ROK government has
agreed to support U.S. forces with a 41% contribution. While this is an
improvement, we are still short of achieving a 50-50 equitable outcome.
We will continue to negotiate and coordinate with our ROK ally in
pursuit of a more equitable contribution to USFK stationing costs.

#### Benefits of USFK\'s Transformation Plan

Our plan to transform United States Forces Korea will result in enhanced
deterrence and warfighting capability. Transformation will also support
a thirty-three percent reduction of United States Forces Korea to about
25,000 total personnel; a 66 percent overall reduction of United States
forces\' occupied real estate; a 98 percent reduction of United States
forces\' occupied real estate in Seoul; and the development of modern
enduring installations at two hubs south of Seoul. This provides
increased readiness, a less intrusive presence, and economy of
scale-generating efficiencies and cost savings.

# II. Building for the Future

The USFK transformation significantly contributes to increased strategic
relevance and flexibility for United States forces stationed in the
Republic of Korea. Our improved basing posture will enhance our
collective ROK-U.S. deterrence of north Korean aggression, and enable
more rapid reinforcement to the Korean theater in the event of a crisis.
Transformation provides a force capable of dissuading potential threats
to the ROK -- U.S. Alliance, and to overall U.S. interests in the
Northeast Asia region. Your continued investment in installation
infrastructure through United States MILCON projects and SRM will
greatly improve our operational capabilities and the quality of life for
our Servicemembers, Department of Defense Civilian employees, and
families.

The Republic of Korea and others perceive the presence of an enhanced,
transformed U.S. Forces Korea as the most important statement of the
United States\' resolve and commitment to the ROK -- U.S. Alliance. It
is this reality that lies at the core of the Alliance\'s ability to
deter aggression and maintain regional peace and stability.

We are all proud of all the Soldiers, Sailors, Airmen, Marines, and
Civilians who serve in the Republic of Korea. Their dedication and
performance continue to earn the trust and confidence that you have
placed in them. Thank you for your continued support to them as they
work to ensure vital U.S. interests are preserved on the Korean
Peninsula, as well as across Northeast Asia.