oversight

Printing of Military Service Newspapers in Southeast Asia Instead of Airlift From Japan Could Mean Substantial Savings

Published by the Government Accountability Office on 1971-03-10.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

REPORT TO THE CONGRESS

                              llllllllllllllllllllllllll~llllll
                                     LMWA3
                                                         3



Printing of Military Service
Newspapers in Southeast Asia
Instead of Airlift from Japan
Could Mean Substantial Savings
                                         S-165683


Department   of Defense   ’




BY THE COMPTROLLER GENERAL
OF THE UNITED STATES
                COMPTROLLER     GENERAL       OF      THE    UNITED    STATES
                              WASHINGTON.      D.C.     20548




B-165683




To the President  of the Senate and the
Speaker of the House of Representatives

          This is our report    on the opportunity     for substantial
savings      by the Department     of Defense by printing      military
service      newspapers    in Southeast   Asia instead    of airlift    from
Japan.

        Our review  was made pursuant   to the Budget and Ac-
counting   Act, 1921 (31 U.S.C. 53), and the Accounting  and Au-
diting Act of 1950 (31 U.S.C.   67).

        Copies of this report      are being sent to the Director,
Office    of Management       and Budget; the Secretary   of Defense;
the Secretaries      of the Army,    Navy, and Air Force;    and the
Secretary     of Transportation.




                                            Comptroller               General
                                            of the United             States




                 --   50TH ANNIVERSARY                      1921- 1971
        COMi?l'ROLLER GENERAL'S                    PRINTING OF MILITARY SERVICE NEWSPAPERSIN
I   .
        REPORT TO THE CONGRESS                     SOUTHEAST ASIA INSTEAD OF AIRLIFT FROM
                                                   JAPANCOULD MEAN SUBSTANTIAL SAVINGS
                                                   Department of Defense B-165683



        DIGEST
        ------


        WHY THE REVIEW WAS MADE

              During a survey of the transportation       activities      of the Department of
              Defense (DOD) in the Far East and Southeast           Asia, the General Account-
              ing Office   (GAO) observed that large quantities          of Pacific Stars and
              Stripes   and other military  service    newspapers were being airlifted      from
          I   Japan to Southeast   Asia for distribution.


          4 GAO  wanted to find
            achieved by printing
                                      out if savings in transportation
                                         the newspapers at some point
                                                                                costs could be
                                                                              nearer to the readers.


        FINDINGS AND CONCLUSIONS

               About 15 tons of Pacific     Stars and Stripes    and other service,     or unit,
               newspapers are airlifted     daily from a Government-owned     printing     plant
               in Japan to Southeast    Asia by commercial    jet aircraft  chartered      for the
                          The cost to the Government is about $5 million         annually.
               p2?";e*5.)

               DOD, in GAO's opinion,        can save about $3.8 million    annually    by contract-
               ing with a commercial       firm to print    the newspapers in Bangkok, Thailand.
               The savings represent       the difference     between the cost of airlifting      the
               newspapers from Japan       to Southeast Asia and the cost involved in having
               the papers printed    in    Bangkok.     (See p. 7.)

               After    an initial      examination,       in September 1968 GAO proposed that      DOD
               reevaluate      the centralized        printing     of the newspapers and consider    es-
               tablishing      a satellite     printing       plant in Vietnam.     (See p. 7.)

               At that time DOD concurred       that there would be savings by relocating       the
               printing   operation   but stated that establishment     of a printing  facility
               presupposed   a long-term   need.     DOD said that it was questionable    whether
               the plant would serve any useful        purpose.   (See p. 7.)

               The response indicated       that DOD had considered    only the possibility     of
               constructing     a new plant in Vietnam and had not, as GAO had proposed,
               generally    reevaluated   the centralized    printing  operation.    GAO recog-
               nized that any decentralization         would be temporary   but reasoned that,
               unless the withdrawal      of U.S. Forces from Southeast       Asia was immediate

        Tear Sheet
     and complete,  the cost of decentralization    would               be recovered      in the         .   i
     first few months of operation.     (See pQ 7.)

     In view of the potential       savings,    GAO believed    that DOD officials
     should have explored     alternative     methods of printing      the papers nearer
     to the area of distribution         and that consideration      should have been
     given to contracting    with a commercial       firm for the required        printing
     service.   (See p. 7.)

     After    receiving      DOD's comments on its September 1968 proposal,             GAO ex-
     plored alternative         methods of printing          and found several  commercial
     printing       firms capable of printing          the Pacific    Stars and Stripes   and
     willing      to undertake     the job.      A firm in Bangkok offered      per-copy    costs
     sufficiently        low to enable DOD to realize           annual savings of about
     $3.8 million,         even after    considering      the added printing   and transporta-
     tion costs involved.             (See p. 8.)

     Relocating    the printing    plant would mean that about 25 pounds of repro-
     duction    negatives  would be airlifted   daily from Japan to Southeast
     Asia, compared with the 15 tons of newspapers now being given premium
     air transportation.        (See p. 7.)

     If the newspapers were printed            in Bangkok, chartered         commercial    aircraft
    could move them to Vietnam.             Distribution      within    Vietnam would continue
    by present      airlift     procedures.      The relatively      few papers distributed
    in the Philippines          and other areas would be transported            on existing       mil-
    itary   flights       or on commercial     aircraft.      The cost of commercial        airlift
    was considered          by GAO in computing its savings estimate.             be     pp- 8
    and 9.)


RECOMMENDATIONSOR SUGGESTIONS

    In March 1970 GAO proposed that DOD take immediate steps to reevaluate
    the centralized   printing   operation   of Pacific  Stars and Stripes.   As a
    part of that reevaluation,     GAO proposed that DOD study and consider     con-
    tracting   with a commercial   firm for printing    the Pacific Stars and
    Stripes  and unit newspapers.       (See p* 11.)

    For reasons discussed      in the next section,     GAO is now recommending that
    DOD begin negotiating      with qualified  firms in Southeast     Asia for the re-
    quired printing    service    and that the printing    be shifted  as expeditiously
    as possible   where costs are favorable.        (See p. 15,)


AGENCY ACTIONS AND UNRESOLVEDISSUES

    The Deputy Assistant  Secretary   of Defense (Manpower                  and Reserve Affairs)
    stated in June 1970 that,   on the basis of information                   reported  by a DOD




                                            2
      study group which was independent      of Pacific     Stars and Stripes, it
      appeared that the charter  flight     in use provided the best possible
      balance between cost and mission      accomplishment.       (See p. 11.)

     The DODstudy group concluded,         however, that GAO's proposal to employ
     commercial printing     firms to print     the newspapers was feasible      and had
     merit.     The group said that negotiations      were planned with interested
     printing    plants to print     the copies for distribution    in Thailand.       If
     that is accomplished,       the Bangkok leg of the charter     flight   could be
     eliminated     at considerable savings in air miles.        The group said also
     that printing     the Thailand copies in Bangkok would be a valuable          trial
     run and, if successful,        could be extended to other areas,      (See pp. 11
     and 12.)

      In July 1970 GAO visited   one of the commercial firms in Bangkok and
      found that new presses had been installed.     The new presses currently
      can produce about 70,000 copies of the Pacific    Stars and Stripes   daily
      and can be expanded easily   to print up to 160,000 copies daily.      (See
      p. 12.)

      Exploring  the possibility    of having a commercial firm print         some of the
      newspapers is, GAO believes,      insufficient.       If the potential    savings
      are to be realized,     prompt and positive     action is needed to shift       the
      printing  of most of the copies of the Pacific          Stars and Stripes     des-
      tined for Southeast Asia.       (See p. 15.)


K4TTERS'FORCONSIDERATION
                       BY THE CONGRESS
      The need for immediate action      by DOD to effect     substantial   savings   is
      outlined
       d       in this report.




Tear Sheet
                                    Contents
                                                               Page

DIGEST                                                           1

CHAPTER

  1         INTRODUCTION                                         4

  2         SAVINGS BY CONTRACTINGFOR PRINTING NEARER
            THE READERS                                          7

            AGENCYCOMMENTS
                         AND OUR EVALUATION                     11

            CONCLUSIONSAND RECOMMENDATIONS                      14
               Conclusions                                      14
               Recommendations                                  15

            SCOPEOF REVIEW                                      16

APPENDIX

        I   Letter dated June 16, 1970, from the Deputy
              Assistant  Secretary of Defense (Manpower
              and Reserve Affairs)  to the General Ac-
              counting Office                                   19

   II       Principal    officials    of the Department of
               Defense and the Departments of the Army,
               Navy, and Air Force responsible       for the
               administration      of activities discussed
               in this report                                   28

                                   ABBREVIATIONS

DOD         Department      of Defense           /WC &lb@5

GAO         General    Accounting       Office

MAC         Military     Airlift      Command      RL-COBDb7
PS&S        Pacific    Stars       and Stripes
    COMPTROLLERGENERAL'S                     PRINTING OF MILITARY SERVICE NEWSPAPERSIN
*   REPORT TO THE CONGRESS                   SOUTHEAST ASIA INSTEAD OF AIRLIFT FROM
                                             JAPAN COULD MEAN SUBSTANTIAL SAVINGS
                                             Department of Defense B-165683



    DIGEST
    -----_


    WHY THE REVIEW WAS MADE

         During a survey of the transportation       activities      of the Department of
         Defense (DOD) in the Far East and Southeast           Asia, the General Account-
         ing Office   (GAO) observed that large quantities          of Pacific Stars and
         Stripes   and other military  service    newspapers were being airlifted      from
         Japan to Southeast   Asia for distribution.

         GAO wanted to find out if savings in transportation              costs could be
         achieved by printing  the newspapers at some point             nearer to the readers.


    FINDINGS AND CONCLUSIONS

         About 15 tons of Pacific   Stars and Stripes    and other service,     or unit,
         newspapers are airlifted   daily from a Government-owned     printing     plant
         in Japan to Southeast Asia by commercial     jet aircraft  chartered      for the
                     The cost to the Government is about $5 million      annually.
         PSuer~"spe.5.)

         DOD, in GAO's opinion,        can save about $3.8 million    annually    by contract-
         ing with a commercial       firm to print    the newspapers in Bangkok, Thailand.
         The savings represent       the difference     between the cost of airlifting      the
         newspapers from Japan       to Southeast    Asia and the cost involved      in having
         the papers printed    in    Bangkok.     (See p. 7.)

         After    an initial      examination,       in September 1968 GAO proposed that      DOD
         reevaluate      the centralized        printing     of the newspapers and consider    es-
         tablishing      a satellite     printing       plant in Vietnam.     (See p. 7.)

         At that time DOD concurred        that there would be savings by relocating       the
         printing   operation    but stated that establishment     of a printing  facility
         presupposed    a long-term   need.     DOD said that it was questionable    whether
         the plant would serve any useful         purpose.   (See p. 7.)

         The response indicated     that DOD had considered only the possibility        of
         constructing  a new plant in Vietnam and had not, as GAO had proposed,
         generally reevaluated    the centralized    printing  operation.    GAO recog-
         nized that any decentralization       would be temporary   but reasoned that,
         unless the withdrawal    of U.S. Forces from Southeast       Asia was immediate




                                              I
     and complete,  the cost of decentralization    would               be recovered      in the         ~
     first few months of operation.     (See p. 7.)

     In view of the potential       savings3 GAO believed       that DOD officials
     should have explored     alternative      methods of printing     the papers nearer
     to the area of distribution         and that consideration      should have been
     given to contracting    with a commercial        firm for the required       printing
     service.   (See p. 7.)

     After    receiving     DOD's comments on its September 1968 proposal,            GAO ex-
     plored alternative        methods of printing         and found several  commercial
     printing       firms capable of printing        the Pacific    Stars and Stripes   and
     willing      to undertake    the job.     A firm in Bangkok offered      per-copy    costs
     sufficiently        low to enable DOD to realize         annual savings of about
     $3.8 million,        even after   considering      the added printing   and transporta-
     tion costs involved.           (See p. 8.)

     Relocating    the printing    plant would mean that about 25 pounds of repro-
     duction    negatives  would be airlifted   daily  from Japan to Southeast
     Asia, compared with the 15 tons of newspapers now being given premium
     air transportation.        (See p. 7.)

     If the newspapers were printed             in Bangkok, chartered        commercial    aircraft
     could move them to Vietnam.             Distribution     within    Vietnam would continue
     by present      airlift     procedures.     The relatively      few papers distributed
     in the Philippines          and other areas would be transported           on existing       mil-
     itary   flights       or on commercial     aircraft.     The cost of commercial        airlift
     was considered          by GAO in computing its savings estimate.            (See pp. 8
     and 9.)


RECOMMENDATIONSOR SUGGESTIONS

     In March 1970 GAO proposed that DOD take immediate steps to reevaluate
     the centralized   printing   operation   of Pacific   Stars and Stripes.   As a
     part of that reevaluation,     GAO proposed that DOD study and consider      con-
     tracting   with a commercial   firm for printing    the Pacific  Stars and
     Stripes  and unit newspapers.       (See p. 11.)

     For reasons discussed      in the next section,     GAO is now recommending that
     DOD begin negotiating      with qualified  firms in Southeast     Asia for the re-
     quired printing    service    and that the printing    be shifted  as expeditiously
     as possible   where costs are favorable.        (See pm 15.)


AGENCY ACTIONS AJlD VNRESOLK?D ISSUES

     The Deputy Assistant  Secretary   of Defense (Manpower                 and Reserve Affairs)
     stated in June 1970 that,   on the basis of information                  reported  by a DOD




                                            2
    study group which was independent          of Pacific    Stars and Stripes, it
    appeared that the charter  flight        in use provided the best possible
    balance between cost and mission         accomplishment.       (See p. 11.)

    The DOD study group concluded,            however, that GAO's proposal     to employ
    commercial printing       firms to print      the newspapers was feasible      and had
    merit.     The group said that negotiations          were planned with interested
    printing    plants to print       the copies for distribution     in Thailand.       If
    that is accomplished,         the Bangkok leg of the charter      flight   could be
    eliminated     at considerable       savings in air miles.     The group said also
    that printing     the Thailand copies in Bangkok would be a valuable             trial
    run and, if successful,          could be extended to other areas.       (See pp. 11
    and 12.)

    In July 1970 GAO visited   one of the commercial   firms in Bangkok and
    found that new presses had been installed.     The new presses currently
    can produce about 70,000 copies of the Pacific     Stars and Stripes  daily
    and can be expanded easily   to print  up to 160,000 copies daily.     (See
    p. 12.)

    Exploring  the possibility    of having a commercial        firm print  some of the
    newspapers is, GAO believes,      insufficient.       If the potential    savings
    are to be realized,     prompt and positive     action   is needed to shift     the
    printing  of most of the copies of the Pacific          Stars and Stripes     des-
    tined for Southeast Asia.       (See p. 15.)


MATTERSFOR CONSIDERATION
                       BY THE CONGRESS
    The need for immediate action        by DOD to effect      substantial   savings    is
    outlined in this report.
                                CHAPTER1

                             INTRODUCTION

      The General Accounting Office reviewed the method used
by DOD to distribute   Pacific    Stars and Stripes (PS&S) news-
papers to Southeast Asia.      Our review was limited    to evaluat-
ing the cost of delivering     the newspapers from Japan--where
they were printed-- in relation     to the cost of printing   the
newspapers at a point nearer to the readers,        The scope of
our review is on page 16.
       PS&S was established        in 1945 during the final phase of
World War II to publish and distribute              a daily newspaper to
Armed Forces and Government personnel in the Pacific                 area.
The editor-in-chief,      an Army officer,        is assisted by a ci-
vilian   general manager and a professional             staff.    The busi-
ness office    and printing      plant in Tokyo employ about 360
persons, including     U,S, and Japanese civilians             and members
of the Armed Forces.        In addition,     PS&S maintains news bu-
reaus and circulation       offices    throughout     the Pacific    area.

       As a revenue-producing       activity, PS&S operates       under a
triservice    fund council.      Its income is from

      --newspaper sales (55 percent),
      --book and magazine sales (33 percent),
      --special    printing jobs (6 percent), and
      --other   income (6 percent).

      About 256,000 copies of the newspaper are printed daily
in Japan and distributed      over an area of 3 million   square
miles, including     Vietnam, Japan, Korea, Okinawa, the Philip-
pines, Thailand,     Guam, Taiwan, and Wake Island.     Approxi-
mately 50 percent of the daily output is provided free to
troops in combat areas of Southeast Asia, one copy for each
five military    personnel.    The Department of the Army reim-
burses PS&S for the direct printing       cost of these free copies,
which in March 1968 was about 2 cents a copy.

      Also, the PS&S plant in Japan prints     25 military    unit
newspapers totaling  about 19 million    copies a year,     Fifteen
of these newspapers-- about 16,5 million     copies--are   for our
forces in Vietnam,
                                     4
.           Although PS&S is considered a non-appropriated-fund
    activity,      it receives more than $6 million             a year in appro-
    priated     fund support from the military            in the form of air
    and surface transportation,            assigned military         personnel,
    and building      maintenance.      At the time of our review, the
    backbone of the air transportation              furnished      by the military
    was a Boeing 727 jet aircraft            chartered      from a commercial
    carrier     by the Military    Airlift      Command (MAC) at a cost of
    about $5 million       a year.    This aircraft,          chartered    especially
    for airlifting       about 15 tons of PS&S newspapers and unit
    newspapers, made a daily round trip from Japan through South-
    east Asia, stopping at principal             delivery      points.     AmaP
    showing the route of the charter flight                follows.

           During the Korean conflict   PS&S operated a satellite
    printing    plant in Pusan, Korea, and later in Seoul, Korea,
    to print the paper at a plant closer to the ultimate        readers.
    The Korea satellite    plant was discontinued   in 1956 because
    its press was too small to handlethenew       and expanded format
    of the newspaper.

            Officials     of the Department of Defense and the Depart-
    ments of the Army, Navy, and Air Force responsible        for the
    activities       discussed in this report are listed  in appen-
    dix II.
       ROUTE OF AE CRAFT CHA
TQ DISTRIBUTE THE PACBFBC STAR§ AND §TRIIPES
                NEWSPAPERS




    RED    CHINA




                      6
                              CHAPTER2

                      SAVINGS BY CONTRACTING
                FOR PRINTING NF,ARERTHE READERS

        DOD, in our opinion,     can save about $3.8 million    an-
nually by contracting       with a commercial firm to print the
PS&S and unit newspapers in Bangkok, Thailand.            The savings
represent    the difference     between the cost of airlifting     15
tons of newspapers daily from Japan to Southeast Asia and
the costs involved in having the papers printed           in Bangkok.
Only about 25 pounds of reproduction        negatives would be
airlifted.

        During an initial     examination    into the distribution
activities     of PS&S, we proposed in September 1968 that DOD
reevaluate     the centralized    printing     of the PS&S newspaper
in Japan.     As  part   of  the reevaluation,      we suggested that
DOD consider establishing        a satellite     printing  plant in
South Vietnam.
      In December 1968 DOD responded and concurred that
there would be cost savings by relocating    the printing   oper-
ation in Vietnam but stated that establishment     of a print-
ing facility  presupposed a long-term need and usage.      DOD
added that it was questionable,    in light of present and
subsequent developments,   that a facility  of the type that
we proposed would be necessary or would serve any useful
purpose.

      The response indicated       that DOD had considered only
the possibility    of constructing      a new printing  facility      in
Vietnam and had not, as we had proposed, generally             reeval-
uated the existing     printing    operation   in terms of the sav-
ings in transportation       costs which would result from print-
ing the paper nearer to the readers.           We fully recognized
that any decentralization        would be temporary and would be
useful only as long as a significant          number of our forces
are deployed in Southeast Asia.          We reasoned, however, that,
unless our withdrawal      was immediate and complete, the ini-
tial cost of decentralization         would be recovered in the
first  few months of operation.         In view of this savings
potential,    we felt  that DOD officials               should     have explored          .
every alternative     means of having the               papers     printed  nearer
to the area of actual      distribution.

        Therefore    we explored      the possibility        of contracting
with commercial       firms    to print     the PS&S and unit        newspapers
in Southeast      Asia.     We identified        printing    firms   in Thai-
land, Hong Kong, Saigon,          and the Philippines,           which were
interested      in the work.      Several      of   these firms     appeared   to
have the capability         to handle     the job,

      We concentrated     on the possibility          of contract     print-
ing in Thailand     because of its location           and because it
seemed to have the most immediate           availability       from the
standpoint   of equipment,     experience,      and timeliness.          A
firm in Bangkok offered       per-copy     costs sufficiently         low to
enable DOD to realize      annual savings       of about $3.8 million,
even after   considering    the added printing           and transporta-
tion costs involved.

        If the newspapers       were printed  in Bangkok,   chartered
commercial     aircraft    could be used to move them to Vietnam.
Distribution      within   Vietnam would continue     by the 834th Air
Division     under existing      procedures,,

        With respect        to the copies            for distribution      in the
Philippines,        the scheduling            officer      of the 5th Air Force in-
dicated      that he had daily            flights       from Vietnam to the Phil-
ippines      (a distance       of about 800 miles)              with adequate     space
to carry       the papers to the Philippines                  at no additional
cost.     He also stated           that arrangements            could be made to
have a scheduled          aircraft        perform       the mission.    In addition,
MAC has some retrograde               flights       from Vietnam which could
provide      an alternative         means of delivery            to the Philippines.

       Officials     of both MAC and the 5th Air Force indicated
that the Okinawa papers also could be delivered               on retro-
grade flights.         It may be preferable,     however,   to continue
to print      the Okinawa papers in Japan, which is considerably
closer    to Okinawa than is Bangkok,         Since the quantity        of
papers involved        is relatively    small (about 1,700 pounds,         or
half a pallet      load),     it should be possible    to reschedule
one or more of the numerous MAC or other military               flights



                                           8
going from Japan to Southeast Asia to land at Okinawa and
to deliver these newspapers at nominal additional  cost.

      One method of delivering      the 435 pounds of newspapers
to Taipei each day would be by a daily commercial flight
from Tokyo, which arrives     in Taipei daily at about noon,
compared with the current delivery       time of about 3 p.m. We
estimate that the delivery      costs for this service would be
about $40,000 a year.    All distributions     within Okinawa and
the Philippines  would continue under the present system.
       Our estimate of the savings that would accrue to the
Government by contracting   for the printing in Bangkok of
PS&S needed for troops in Southeast Asia was computed as
follows:

Annual savings from eliminating          the
  daily charter flight         of a Boeing
  727 jet from Japan to Okinawa, the
  Philippines,     South Vietnam, Taipei
  and return                                              $5,141,025
Less the following        annual costs:
       Cost to airlift      167,000 copies
         daily from Bangkok to Saigon          $871,693
      Cost to airlift       4,000 copies
         daily from Japan to Taipei              40,000
       Additional   cost to print news-
         papers in Bangkok                      400,737
       Additional   cost of ocean trans-
         portation     for newsprint over
         cost from the continental
         United States to Japan                  40,000    1.352.430

Net annual    savings                                     $3.788.595

Net monthly    savings                                    $   315,716

      Several years ago PS&S officials     attempted to negotiate
with a commercial firm in Thailand for printing        the news-
papers.   These officials   indicated  that negotiations    broke
off at that time because of problems encountered in import-
ing newsprint.    During discussions   in September 1969, offi-
cials of the American Embassy in Thailand and the commercial
printer   advised us that they could foresee no problem in            '
importing   newsprint from the United States.

      Officials     of the commercial printing   firm told us that
appropriate     controls  could be established   to ensure that
only PS&S newspapers and unit newspapers would be printed
on the newsprint imported from the United States and that
PS&S personnel could be stationed       on their premises for
supervisory     purposes.

       The contracting procedure offers more than just lower
distribution    costs, For instance,   as the troop withdrawal
in Southeast Asia progresses,     the number of papers con-
tracted for can be reduced accordingly.

        Although the commercial printer    indicated   that he
would need a l-year guarantee before undertaking          the work,
this should be no problem since the estimated cost of the
full year's contract would be recovered in the first          few
months and savings of about $300,000 a month would be real-
ized thereafter.     In our opinion,    the savings available
warrant the concerted and continuing       efforts   of responsible
officials.
                              CHAPTER 3

               AGENCY COMMENTS AND OUR EVALUATION

        We brought  our findings       to the attention     of the Secre-
tary of Defense in a follow-up            report  dated March 4, 1970,
and we proposed      that DOD take immediate         steps to reevaluate
the centralized     printing     operation.      As a part of this re-
evaluation,     we proposed    that DOD study and consider        con-
tracting    with a commercial      firm for printing       PS&S and unit
newspapers.

       The Deputy Assistant      Secretary      of Defense (Manpower
and Reserve Affairs),       responding      for the Secretary    of De-
fense,   commented on our findings          in a letter    dated June 16,
1970.    (See app. I.>      He stated     that an ad hoc study group
which was independent       of PS&S had made a comprehensive         study
of the matter    and that DOD's examination           of the group's  re-
port had revealed     that:

      1. The Commander in Chief,        Pacific,    was cognizant   of
         the problems     of printing    and distributing      PS&S and
         shared the concern        of GAO and DOD over the high cost
         of distribution.

      2.   The Commander in Chief,       Pacific,  would continue    to
           make every effort     to find   the optimum solution     with
           concomitant  reduction     of costs without   diminution
           of service.

      3. Contracting      with a commercial     source was not pos-
         sible    at that time because none of the commercial
         firms    visited    had the capability     to handle the job,

        On the basis       of the ad hoc group's     report,    the Deputy
Assistant      Secretary     concluded    that the use of a dedicated
charter    flight     provided     the optimum balance     between cost
and mission       accomplishment.

      At the time of the ad hoc group study,         even though
none of the commercial      printers    visited  had the equipment
necessary   to produce   the total     number of newspapers    required
for the Vietnam edition,        the group concluded    that the


                                     11
concept    was feasible      and had merit.            The group indicated
that the Commander in Chief,              Pacific,      was actively         exploring
the possibility        of printing      the copies        required      for Thailand
(17,000)    in Bangkok and that he would negotiate                      toward this
end with interested        printing       plants.        The group reported
that,    if this could be accomplished,                the Bangkok leg of the
MAC charter     flight    could be eliminated              at considerable         sav-
ings in air miles.         Additionally,           the   group    concluded      that
printing     the Thailand       copies    in Bangkok would be a valuable
trial    run for this overall          concept       of satellite       printing
and, if successful,         could be gradually             extended      to other
areas.

        Concerning    the ability         of the commercial      firms     to han-
dle the printing        of the newspapers,         we found that,        apparently
after     the ad hoc group's       visit,      one  of  the   commercial       print-
ing firms     in Thailand      (the Bangkok World) had received                 and
installed     new offset     presses.        We visited     the plant      in July
1970 and inspected        the presses        which were received         on
May 19, 1970.        We found that they were entirely                operational.
Newspaper officials         advised       us that the presses        currently
could print      between 50,000 and 70,000 copies               of PS&S daily
and easily      could be expanded to print             up to 160,000 copies a
day.      The lead time for the expansion              would be about 4 months.

         Officials    of the Bangkok World stated           that they would
welcome a contract           for printing    PS&S, regardless      of the quan-
tity     involved,    and that they would be interested            in producing
the other local         installation      newspapers    of the various     mili-
tary commands.         In    addition,    we found   during    our July  visit
to Bangkok that The Bangkok Post was also very interested                        in
printing        PS&S.

        The ad hoc group reported           that operating       personnel       at
various    installations       believed     that the charter        flight      was
needed to handle other cargo.              MAC officials       told us, how-
ever 9 that the cargo could be shifted               to existing        flights
without    procuring     additional     airlift.

       The ad hoc group reported,         in addition       to the findings
and conclusion     previously    mentioned,    that several        of the
suggestions    that we made in our earlier           report    concerning
administration     and supervision      of PSGS already        had been im-
plemented.     For example,     the Commanding General,           U.S. Army,

                                            12
Japan, no longer has direct supervision         of PSSrS, but this
responsibility       has been delegated to the Commanding General,
U.S. AT,       Pacific.     Also, the Commander in Chief, Pacific,
now has overall       responsibility   for the establishment  of pol-
icy and the conduct of management analysis.




                                13
                                CHAPTER4

                  CONCLUSIONSAND RECOMMENDATIONS

CONCLUSIONS

        Significant   savings can be achieved by printing    PS&S
and unit newspapers at some point closer to the area of
distribution.       Relocating the printing   would reduce the use
of premium air transportation      to deliver   about 15 tons of
newspapers daily.

      Unless the withdrawal        of U.S. Forces from Southeast
Asia is immediate and complete, we believe that there will
be a need to distribute        a large number of PS&S and unit
newspapers in Vietnam, Thailand,         Taiwan, and the Philippines
for some time to come. We believe that our work since the
PresidentIs   announcement of troop withdrawals         from Vietnam
demonstrates    the feasibility      of realizing significant    sav-
ings regardless    of whether the need for newspapers in South-
east Asia is for a short period or for an extended one.

        In our opinion,      use of commercial facilities        to print
the newspapers offers an opportunity            to immediately reduce
the distribution       costs and to eventually       eliminate     the
flight    chartered    specifically     to transport    the finished     news-
papers from Japan.          This opinion was confirmed by a DOD
study group which also concluded that commercial printing
was feasible      although,     at the time of its review, none of
the firms visited       had the capability      to do the work.        A
candidate printing        firm, however, has recently        received and
installed    new printing       presses capable of producing the re-
quired number of newspapers daily.

       The transition   to commercial printing    should not im-
pair DOD's ability    to provide timely,    comprehensive,   and
objective    news to military  personnel and at the same time
should provide DODwith an opportunity        to reduce signifi-
cantly its cost of distributing      PS&S.




                                     14
RECOMMEXWATIONS

       Exploring   the possibility  of having a commercial firm
print some of the newspapers is, we believe,       insufficient.
If the potential      savings are to be realized,  prompt and
positive    action is needed to shift the printing     of most of
the copies destined for Southeast Asia.

        Therefore we recommend that DOD begin negotiating    with
qualified     commercial firms in Southeast Asia for the re-
quired printing      service.  Where costs are favorable,  we rec-
ommend that the printing      be shifted  to these firms as ex-
peditiously      as possible.




                                 15
                               CHAPTER    5


                           SCOPE OF REVIEW

       Our review included an examination            of records relating
to t'he cost of printing      PS&S newspapers in Tokyo, Japan,
and to the cost of distributing           the newspapers in Southeast
Asia; discussions     wit'h officials       of PS&S, Tokyo office;
discussions     with responsible      transportation     officials;   and
discussions     with representatives        of various commercial
printing    firms in Southeast Asia.
      The fieldwork    was done at the following        locations.

      Tokyo, Japan:
           Office of Pacific  Stars and Stripes
      Hong Kong:
           Office of American Consulate
      Saigon, Vietnam:
          Joint U.S. Public Affairs      Office
          Pacific   Stars and Stripes Distribution     Center
          Tan Son Nhut Air Base, 834th Air Division
          377th Base Construction      Engineers,  Real Estate        Di-
             vision
          Commercial printing    firms
      Bangkok, Thailand:
          American Embassy
          Office of the Bangkok World newspaper




                                     16
APPENDIXES




17
                                                                                            APPENDIX I
                                                                                                Page 1

                                 A            NT SEC             TAWY OF DEFENSE
                                             VJbSHINGTON,         D. C. 20301


                                                        16 JTJN 1970
 MANPOWER     AND
RESERVE   AFFAIRS

            Comptroller   General of the United States
            United States General  Accounting   Office
            WG,shington,  D. C, 20548

            Attn:    Director,         Transportation        Division

             Dear   Mr.    Sullivan:

            This is in response       to your letter    to the Secretary     of Defense,
            file T-OD-F-545,        dated March 4, 1970, which enclosed             a study
            pertaining    to the cost of airlifting     the Pacific   “Stars and Stripes”
            newspapers      from Japan--its       place of printing-   -to its ultimate
             readers   in Southeast     Asia (OSD Case #3088).

             Subsequent     to the receipt      of your letter     transmitting    the report,
             and with the concurrence           of representatives        of your office obtained
             at a meeting      on March     19, 1970, the Commander             in Chief Pacific
              (CINCPAC)      was directed      to establish     an ad hoc study group,
             independent     of representatives        of Pacific     “Stars and Stripes,      ‘I to
             review     the substance    of your report,        to study the matter      compre-
             hensively,     and to report     findings    and recommendations          to the
              Department      (copy attached).

             A thorough   and detailed   examination    of this                 report   reveals     the
             following  conclusions    and recommendations:

                    1. That CINCPAC    is cognizant    of the problems  of printing  and
             distribution  of Pacific “Stars   and Stripes”   and shares the concern
             of GAO and the Department       of Defense over the high cost of
             distribution.

                   2. That CINCPAC      will continue                to make every effort           to find
             the optimum   solution  with concomitant                   reduction of costs         without
             diminution  of service.

                    3. That at the present     time,  the establishment      of a satellite
             printing   plant or contracting     with a commercial      source   appears
             infeasible    for the specific  reasons    outlined  in the report.

                                                            19
APPENDIX I
   Page 2


      4.     That funding  for this particular         flight     by CINCPAC          appears
unw,arrdnted     and is not compatible        with    existing        funding   practices
and procedures        and would,    most   likely,        result    in increased        man-
hours    and additional    cost with   no identifiable           improvement         in
managerial     control.

It is the position      of the Department         that Pacific           “Stars     and Stripes”
as well     as European      “Stars     and Stripes”     serves          a unique      command
information      and morale       requirement        by providing           timely,      comprehensive,
and objective    news and entertainment            to our military     personnel.        The
desirability   of keeping      our military     personnel    informed      is axiomatic.
The paramount      consideration        to the Department        is to be able to continue
this   service on a dependable        basis   at the least     cost to the government.

Currently,          it    appears     that the use     of a dedicated      charter    flight   provides
the optimum              balance    between    cost    and mission      accomplishment.

                                                           Sincerely,




Attachment




                                                      20
                                                                    APPENDIX I
                                                                       Page 3


                         REPORT

                               of


        AD HOC          STUDY         GROUP

                               of

      COMMANDER             IN CHIEF           PACIFIC




                               t0




ASSISTANT    SECRETARY                 OF DEFENSE          (M&RA)

                       pertaining        to


   Savings   in the Cost            of Distributing      the

             Pacific       Stars      and Stripes

                        Newspaper




                       May4,          1970
       APPENDIX I
           Page 4


  Subj :      GAO recommendations                      to effect       savings       in the     cost    of distribution
              of Pacific
                 ~_.___  Stars   and              Stripes

Ref:           (a) GAO ltr   T-OD-F-545                   of 4 Mar  70
               (b) SECDEF     2016232               Mar     70
               (cj OASD/M&RA(IAF)                    ltr,   Subj:  GAO           Study     of PS&S        Facilities,
                   29 Nov 68

1.     Reference          (a} is a draft        Government             Accounting            Office     (GAO)     report
concerning          the re-evaluation             of the centralized                 printing       operation      of
Pacific      Stars       and Stripes        (PS&S).       The report             recommends             the establish-
ment      of a satellite         printing      plant    close      to the majority                of troops     in South
East Asia          (SEA)      or the contracting            of printing            of PS&S newspapers                for the
troops       in SEA in an effort               to eliminate           the cost of a MAC-charter
commercial            flight.       This    MAC-charter              flight,       World        Airways       W-199,
distributes         the PS&S newspapers                 from       Tokyo         to Vietnam,           Okinawa,        the
Philippines,           Thailand         and Taiwan,        at a current               cost of $5. 1 million            annually.
This     satellite       plant    or contract        plant     would         print      from      reproduction        mats
supplied        by PS&S,         Tokyo      and would        print       those       copies       of the paper       destined
for SEA distribution,                  approximately          150, 000 copies                 of the 230, 000 printed
daily.


2.   The GAO report        also   recommends        that the funding     of PS&S transporta-
tion costs  be transferred        to PACOM        appropriations     level  for funding   rather
than at the industrial       fund level,    which    is now employed.

3.    Reference    lb) requested                that a task force              study the GAO report     and
provide     OASD/M&RA(IAF)                    with their   findings            and suitable recommendations.

4.    In accord      with       reference      (c) which        expressed       concern      over   the high
cost of transporting               PS&S newspapers              from      Japan   to SEA,       CINCPAC         has
continually      kept this problem              under       review.       On 16 September           1969,     the
new Public       Affairs         Officer,    CINCPAC,             requested      a study     to determine         if
another      method      of transporting           PS&S was feasible.                 The resultant       report
indicated     that the use of C-130                airlift     for the same       requirement         would      re-
sult in a $5, 2 million               annual  cost and,          at the same      time,     degrade      the delivery
of the newpaper           to an unacceptable               degree.      C-130    airlift   would     require       31
hours     plus the time           necessary       for two crew          changes       and five refueling          stops
for the complete            trip     versus   the 17 hours           for the present        World     Airways        727
charter.




                                                              22
                                                                                 APPENDIX I
                                                                                     Page 5
’ 5. The GAO recommendation                for printing      closer    to the majority    of
  troops   located in SEA encompassed            two approaches;          the first being the
  location   of an existing    building    or facility    which could be used to house a
  printing   press and the second,         that of contracting        with a commercial
  firm for the printing      of the necessary        papers.       Both approaches      envisioned
  using reproduction       mats,    produced    in Tokyo,        and flown to the satellite
  printing   plant by the most expeditious            means,

 6. The use of an existing building or facility was investigated    and found
 not feasible for the following reasons depending  on the geographical    area
 involved:

           Philippines
           a.           . Present     classified     actions     concerning     U. S. military
 forces in the Philippines      negate any increase         in U. S. civilian     or military
 manpower.        This manpower     would    be  required     for   a satellite   plant.

           b.    Okinawa.     No facilities   available  because of the growing           concen-
 tration        of U. S. troops.     Building   space is at a premium.

           c. Taiwan.      No facilities   available   at the time     of this   report    to accom-
 plish       this task.

          d. Thailand.      Embassy    personnel   indicate  that host country  sensitivity
 toward      increased    American    presence   in Thailand    would make it extremely
 difficult     to obtain approval   for any large number       of Americans.   No U. S.
 facilities      exist as all bases are Thai.

       e . Vietnam.        Continuing    redeployment        and shifting  of U. S. troop
 dispositions,     lack of skilled     indigenous     labor,    difficulty in obtaining    skilled
 U. S. civilians     if this operation     were located in an isolated        area or an area
 protected     only by Vietnamese        Armed    Forces,       all negate selection    of Vietnam
 as a site for this operation.

 7. A detailed         on-site     survey   was conducted      by a task force to ascertain
 whether     existing      commercial       printing  plants    could be located in areas
 adjacent     to or within        SEA which could print the number           of copies required
 for distribution        to Thailand      and Vietnam,      at a minimum,      and additional
 editions    if feasible.         The Philippines    was not surveyed       because    of the
 distance     (60 miles)       from the nearest      major    printing  area,   Manila    from
 Clark Air Force           Base from where the papers             would be air transported.
 Present     political     unrest was also considered.




                                                 23
    APPENDIX           I                                                                                                           .
         Page          6


 8.   On Okinawa,           only one web off-set              printing        press     of the type required
to print     approximately           120-l    50, 000 copies            daily    of a 24-page          tabloid
from     reproduction          mats    provided         by PS&S was supposedly                  available.
The alleged          owner,      Mr.    Ikemiyadi,          was contacted            and expressed            interest
in obtaining        the contract        to print       PS&S.        When the task          group       asked      to
 see the press         they were       informed         that the press           was under       litigation          and
locked     in a building         owned     by another         individual.           They were         further
informed       that they could          not enter        the building         because      a union       was con-
ducting     picketing       action    around       it.     There      is no assurance          that a press
actually      exists.       The possibility           is that the supposed              owner     would,         once
a firm     contract       was obtained,          then institute           action     to obtain     a press.


9.    On Taiwan,        knowledgeable         American         and Chinese         personnel        were
contacted      concerning       the availability        of web off-set         printing       presses.
Only     one press     in Taiwan       is capable      of printing       the number          of copies
required,       and that is the China           Times.       When      contacted,       representatives
of the China       Times     stated     that they would         not be interested           in obtaining
a contract      until   the end of this       calendar       year    as all press        time      was fully
committed.          The Retired       Serviceman’s          Association         on Taiwan         indicated
interest     in such a contract,           but again,      no actual      press      was visible         and
representatives           stated    they could     not be ready      for three     months     after
being     given    a firm     contract.     Because      of the continuing        redeployment      of
troops      from    SEA,      PS&S cannot      give a firm     printing     contract     for any con-
siderable        number      of copies   that far in advance.

 10.    A detailed          study    was made          of printing            facilities      in Thailand         as the
GAO report            singled      Bangkok         out as the most               likely     place      for effecting        a
commercial             contract      for printing          the SEA copies                of PS&S.          Mr.    Coffey,
USIS;     Mr.      Norman         Smith,       Economic            Officer,         American         Embassy;          and
Mr.     Joe Snyder,            Press      Officer,       Political-Military                 Department,           Ameri-
can Embassy,              were     contacted         concerning             the problems            of letting     such a
contract        in Thailand.            No great       difficulty         was envisioned              by any of these
individuals.            However,         an on-site          visit     to the available             printing     facilities
in Bangkok           developed        information           that varied            from    the GAO report.
Three       printing       plants     were      inspected          and the following              information          obtained;

       a.    Bangkok      Post.     This   British-Canadian        oriented      English       language
newspaper       publishes       15,000    copies     daily  on a web off-set         press.       In
discussions       with    Mr.    Michael     J. Gorman,       managing      director        of the
Post,     it was determined          that the Post was not capable             of printing       the
number          of copies    of PS&S required                 without    using     other   printing establish-
ments      or     exceeding     the time     alloted           to effect    delivery     of the paper   to
Vietnam          while   it was still    timely.



                                                              24
                                                                                                   APPENDIX I
                                                                                                       Page 7

       b.    Bangkok      Daily    News.       This     Thai    language        newspaper         is printed        on
a web off-set       press      by the Pra Choom             Chang      Ltd.       Mr.     Saeng Hetrakul,
owner,      and Mr.      Choochai        Pysansukpipat,           sales     executive?         were    contacted
and indicated        that the company          does not have           sufficient        press    time     to print
the required       number        of copies.       They     stated     that the company              would     be
interested      when their        new equipment,           now on order,             arrived.        Delivery
time     is at considerable         future    date.

       C.    Bangkok         World.        According          to sources         in Bangkok,          this English
language      paper,        printed       in approximately            15, 000 copies           daily,      is partially
owned     by a combine            consisting          of the Lennon          interests,       Mr.       Chinn     Ho,
Hawaiian       financier,         and other          Americans.          An      Italian-Thai         combine        also
has’s    considerable           interest.         At the present           time,        the Bangkok         World       is
totally    incapable         of handling        all,     or any part,          of the PS&S task.               The only
press    available        is a 50 to 60 year               old press      brought         to Thailand        by the
Japanese       in 1942 to print             propaganda          pamphlets.             The press        incurs     frequent
breakdowns           and approximately            3-5 hours           are required          to print     the 15, 000
copies     of the Bangkok          World.        New presses             are on order,           according        to Mr.
Horgan,       the managing          editor.       The building            being     constructed         to house       the
new press         has limited       warehousing           facilities,         transportation          within     the
company        area and adjacent            thereto      is very        limited,       and no provisions             are
evidently      being     made     to train      personnel          in the operation            of the new press
now on order.            (I n contrast       to this,      both the Post           and Daily        News      have    sent
personnel        to the U. S., Australia,               or Britian          to learn      the operation          of the
presses      they have or expect              to obtain.        ) To enter         into any contract            with     the
expectation         that a firm      starting       date could          be set would          be unrealistic.

 11.     Two real problems               exist    in relocating      part     of the printing       operation
to any area in SEA,               one being        the problem       of customs       and business         taxes
for the import           of newsprint          and ink,     the other      being   the political      reaction
or sensitivity         to printing        a portion       of a paper     which     might,     on occasion,
have wire        service       reports      ‘which     are critical      of the government           where     the
printing     takes      place.        Even     though     material     is supposedly        clear    for entrance
into the country,            long periods          of delay     can develop.        A delay      of any sort is
fatal    to delivering         timely      news      to the troops.

12.    The final   GAO           recommendation,               that PS&S transportation         costs    be
funded    from   PACOM             appropriations            assumes    that the entire     cost of the
MAC     charter   aircraft           is chargeable           to PS&S.     Actual  observation        of the
  APPENDIX I
     Page 8

operation       of this    charter    indicates      that MAC       movement       personnel     are
utilizing     nearly     all the available        space      to move    other cargo,       such as
whole     blood    to Vietnam,        NORS-G        material,      registered     mail.      All MAC
and other       air movement         personnel       contacted      in Japan,     Okinawa,      and
Thailand       expressed        a deep interest       in the continuation        of this flight.     The
?vlAC officer        on Okinawa       stated    that it was the only dependable              means   of
Inoving     material       from    Okinawa      to Clark       AFB   in the Philippines.         The
World      Airways          W-199       flight     was observed                on arrival         at Don Muang               Air-
port,     outside       of Bangkok,            Thailand.            It was carrying               two pallets           of mail,
a pallet      of NORS-G            material         had been put on at Cam Ranh Bay to re-
place     the pallet         of PSPrS off-loaded,                 and pallets            of other       material         were
replacing        PS&S at other              stops.       MAC         personnel           at Yokota          AFB,       Japan
 stated    that the flight           was returning              to Japan with               cargo     on every         pallet       on
nearly      every      flight.        Thus      the GAO report,                  charging         PS&S with the full                 cost
of the charter,             does not consider               the interim             stop utilization            by MAC
personnel         nor the fact that material                      is being         retrograded            from       Vietnam         to
Japan      on the last leg of the flight.                       To fund this particular                      charter       from
the unified         command          level,       while     other       charter         flights      remain        funded        from
the industrial           fund level,          appears        incongruous.                 If funded        from      PACOM,
pro-rata        costs      for each activity             utilizing         the flight         would      be necessary              and
many      man-hours            required        to maintain            statistics         and allocate           costs      among
users,       e. g.,     mail,      NORS-G,            couriers,          whole        blood,       etc.

 13.     CINCPAC         shares     the concern          of GAO and ASD/M&RA(IAF)                        over the
high     cost of newspaper            distribution        and will    continue       to make         every      effort
to reduce        such costs.         At the present          time,    though,       the GAO recommen-
dations      to locate     a suitable        facility    to house     a PS&S press               for satellite
printing       or to enter      a contract          with  a commercial          printer        appear      infeasible
as outline        above    except     at considerable           cost in delayed           delivery       or inter-
rupted      service.       Prospects          may improve          in the future        if the troop         population
continues        to decrease       in SEA and commercial                 printing        facilities      in SEA
countries        continues      to improve.

 14.      The GAO recommendation                      of satellite          commercial        contract     printing,
utilizing         reproduction        mats     from      the PS&S plant            in Tokyo      is feasible       and
has much            merit.       At the present         time,       presses       are not available         which
could       accommodate            the entire       press       run required          for the Vietnam         edition.
CINCPAC             is actively      exploring        the possibility           of printing     the number          of
copies        required        for Thailand        (17,000)        in Bangkok         and will     conduct      nego-
tiations        toward      this   end with      interested          printing     plants    in Bangkok        when
their      new presses           are operational.             If this      can be realized         the MAC
     .                                                                            APPENDIX       I
                                                                                         Page 9

    charter    flight can eliminate      the present       Cam Ranh Bay-Bangkok-Saigon
    leg, flying     straight   to Saigon from Cam Ranh Bay, at a considerable
     saving in air miles.        MAC has been requested              to supply the estimated
     savings under this change.          Additionally,       printing    the Thailand   copies
    in Bangkok would be a valuable            trial run for this overall         concept of
     satellite  printing     and, if successful,       the concept could be gradually
    extended to other areas.

     15. Moving       the level of funding for this particular         charter    flight   from the
    industrial     fund level to PACOM       would not result       in any monetary         savings
    and would result       in considerable    additional   clerical     record    keeping.       As
    all of the costs could not be charged           to PS&S, various        agencies     within
    PACOM,        and several    external  to PACOM,       would have to be charged             their
    proportionate       share.

    16. Several         of the suggestions     made in an earlier        GAO report     concerning
    administration         and supervision     of PS&S have already         been implemented.
    The Commanding            General,     U.S. Army,       Japan, no longer has direct
    supervision        of PS&S, but this responsibility          has been delegated      to the
    Commanding           General,   U.*S. Army,      Pacific.     Also,   the Commander        in
    Chief,    Pacific,      now has overall     responsiblity      for the establishment      of
    policy and th‘e conduct of management              analysis.




    Attachments
t     Refs- (b) & (c)




                                                   27
APPENDIX II
    Page 1
                       PRINCIPAL OFFICIALS

                 OF THE DEPARTMENTOF DEFENSE

               AND THE DEPARTMENTS
                                 OF THE ARMY,

                NAVY, AND AIR FORCERESPONSIBLE

              FOR THE ADMINISTRATION OF ACTIVITIES

                    DISCUSSEDIN THIS REPORT


                                              Tenure of office
                                              From            -To
                      DEPARTMENTOF DEFENSE

SECRETARYOF DEFENSE:
   Melvin R. Laird                     Jan.      1969    Present
   Clark M. Clifford                   Mar.      1968    Jan.    1969
   Robert S. McNamara                  Jan.      1961    Feb. 1968

DEPUTYSECRETARYOF DEFENSE:
   David Packard                       Jan.      1969    Present
   Paul H. Nitze                       July      1967    Jan.    1969
   Cyrus R. Vance                      Jan.      1964    June 1967

ASSISTANT SECRETARYOF DEFENSE
  (INSTALLATIONS AND LOGISTICS):
     Barry J. Shillito                 Jan.      1969    Present
     Thomas D. Morris                  Sept.     1967    Jan.    1969
     Paul R. Ignatius                  Dec.      1964    Aug. 1967


                    DEPARTMENTOFTHE ARMY

SECRETARYOF THE ARMY:
   Stanley R. Resor                    July      1965    Present
   Stephen Ailes                       Jan.      1964    July    1965




                                28
                                                   APPENDIX II
                                                       Page 2

                                       Tenure of office
                                       From            To

                  DEPARTMENTOF THE ARMY (continued)

ASSISTANT SECRETARYOF THE ARMY
  (INSTALLATIONS AND LOGISTICS):
     J. Ronald Fox                  June    1969    Present
     Vincent P. Huggard (acting)    Feb.    1969    June 1969
     Robert A. Brooks               Oct.    1965    Feb. 1969


                   DEPARTMENTOF THE NAVY

SECRETARYOF THE NAVY:
   John H. Chafee                   Jan.    1969    Present
   Paul R. Ignatius                 Sept.   1967    Jan.    1969
   Charles F. Baird (acting)        Aug.    1967    Aug. 1967
   Robert H. B. Baldwin (acting)    July    1967    July    1967
   Paul H. Nitze                    Nov.    1963    June 1967
ASSISTANT SECRETARYOF THE NAVY
  (INSTAUATIONS AND ~GIST~):
     Frank K. Sanders               Feb.    1969    Present
     Barry J. Shillito              Apr.    1968    Jan,    1969
     Vacant                         Feb.    1968    Apr.    1968
     Graeme C. Bannerman            Feb.    1965    Feb. 1968

                DEPARTMENTOF THE AIR FORCE

SECRETARYOF THE AIR FORCE:
   Robert C. Seamans, Jr.           Jan.    1969    Present
   Dr. Harold Brown                 Oct.    1965    Jan.    1969
   Eugene M. Zuckert                Jan.    1961    Sept. 1965

ASSISTANT SECRETARYOF THE AIR
  FORCE (INSTALLATIONS AND LOGIS-
  TICS):
    Philip N. Whittaker             May     1969    Present
    Robert H. Charles               Nov.    1963    May     1969




                              29
APPENDIX II
    Page 3
                                      Tenure of office
                                      From            -To
               DEPARTMENTOF THE AIR FORCE (continued)

COMMANDER,MILITARY AIRLIFT COM-
 MAND:
   Gen. Jack J. Catton             Aug.   1969   Present
   Gen. Howell M. Estes, Jr.       July   1964   July    1969




                                                 U.S.   GAO Waah..   D.C.


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