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rates. deployments, reserve
units. capacity to produce-all
must be kept in balance not
only at present but also when
projected into the future. This
is being done at substantial
savings to the taxpayer.
Finally, there is efficiency in
operations or efficiency in the
actual carrying out of the plans
and the programs that have
been laid out and are provided
for in the annual budget.
This is the area that receives
most public attention and has
in the past been the target of
charges of waste and ineffi-
cheney. Hundreds of thou
sands Of our men and women
have been in and out of the
services. Each has seen some
waste of his time or of some
one else's time. some waste of
material. This type Of waste
we are eliminating.
Efficiency in operations re-
quires the interest of the many
hundreds Of thousands Of men
and women in the service. I
am pleased with the co-opera-
ton we are receiving in this
program from all sources. espe-
cially from the men and women
in the Department Of Defense.
Most people do not like waste.
They would rather use material
carefully and earn the pay
they get. They want the feel
ing Of accomplishment.
Our efforts to obtain more
defense for each dollar spent
have been speeded by several
steps We have taken to i'm
prove the organization in the
Department of Defense and
clarity areas of authority and
responsibility.
First, the Rockefeller Com
mittee studied the basic or
ganization and procedures of
the Department of Defense,
especially with respect to the
position Of the Secretary of
Defense and his relationships
with his principal civilian and
military officials. It's recon-
mendations were the basis for
Reorganization Plan No. s,
which became effective on
June 80, 1853.
Second. the directive on the
Functions of the Armed
Forces and the Joint Chiefs
Of staff" {known as the Key
West Agreement) was revised
and administrative changes
were made within the Joint
Chiefs Of Staff organization to
improve our machinery for
strategic planning for national
security.
Third, new plans for the
more effective top-level organ
ization Of the Army. Navy and
Air Force were drawn up and
have been placed in effect.
These improvements should re-
suit in better management
throughout che military de-
partments..
Fourth, the recommendation
for the appointment Of two
additional assistant secretaries
for each military department
was approved by the Congress.
This has made it possible for
each service to have one assist
ant secretary devoting his full
time and effort ITO personnel,
man power and reserve forces
problems, another to financial
management, and a third to
materiel and procurement
problems. The fourth assistant
secretary in each department
will work on problems which
are peculiar to his department,
such as the civil-inilitary ac-
tivities Of the Army Operation
Of the Panama Canal, civil
functions of the Corps Of En-
gineers, politico- -military-eco-
nomic affairs. the air activ-
tiles of the Navy, and the re-
search and development pro-
gram of the Air Force.
Fifth. the study Of the
Cooper Committee on Fiscal
Organization and Procedures.
This group has just submitted
to me its recommendations for
an improved system of budget
ing, accounting. fiscal report
ing and auditing in the De-
partment of Defense, and we
have undertaken the job of
developing the details Tor inn
plementing the program ! am
sure this is an important step
forward toward the more effi-