(The information requested follows:)

There has been considerable activity in this field during the year-activity aimed toward giving better support to our combatant forces in order to increase their combat effectiveness, toward improving the decisionmaking process, and toward promotion of efficiency and economy. Some of the more significant organizational and management accomplishments and undertakings which have taken place in the Department of Defense during the year under the leadership or with the active participation of my office are listed below:

The Office of the Assistant Secretary of Defense (Systems Analysis) was established to give greater emphasis to this important function by making it more accessible to all elements of the Department of Defense and more responsive to the Secretary of Defense. The recognition of the systems analysis contribution to Defense decisionmaking by placing the function at the assistant secretarial level will enhance systems analysis applications throughout the Department of Defense.

The Military Traffic Management and Terminal Service was established to consolidate the operations of military traffic, land transportation, and commonuser ocean terminals under the Secretary of the Army.

The Defense Contract Audit Agency was established to consolidate the activities of the 3,600 employees of the various contract audit units of the military departments. This consolidation action should save almost $2 million per year and improve efficiency and responsiveness as compared with the former fragmentation of this activity among the military departments. Under this single agency ap proach, contractors will be required to deal with only one defense auditor rather than with several separate service auditors as in the past.

The consolidation of field contract administration offices of the military depart ments under the Defense Supply Agency in order to produce manpower savings (estimated at 10 percent), simplify postaward dealings with industry, and increase efficiency was completed.

A special task force was established in July 1965 to insure that responsible elements of the Department of Defense expedite the provision of required resources to the military effort in Vietnam. This task force, operating under the functional supervision of the Assistant Secretary of Defense (Administration), reports to the Secretary of Defense. It is the mission of this task force to keep abreast of resource requirements for Vietnam and to isolate problem areas so corrective action can be taken to prevent problems from arising before they actually arise. As an outgrowth of studies completed during the year to inventory personnel and space allocations in the National Capital area by function, a program for reviewing the desirability of decentralizing specific Defense activities from the National Capital area has been adopted in furtherance of the Presidential desires to minimize the concentration of executive agencies in the area where economically and operationally practical. The program is being conducted in close coordination with the Bureau of the Budget and shows promise of effectively fulfilling Presidential aims in this matter.

Substantial studies are in process of completion to determine the best organizational and management arrangements in such fields as transportation services. communications services, printing and publications services, and audiovisual services. All of these studies show promise of enabling increased efficiency and greater economy.

MANAGEMENT STUDIES IN PROCESS

Mr. SIKES. What new management studies are in process now which you did not mention in response to previous questions?

You may provide that for the record.

(The information requested follows:)

A management study under the cognizance of the Assistant Secretary (Comp troller) relating to the exploration, design, and development of automation of the budget processes and the account structure. The estimated cost is $120,000.

MANAGEMENT STUDIES TO BE UNDERTAKEN IN 1967

Mr. SIKES. What new management studies do you contemplate for fiscal 1967? That may be provided for the record.

(The information requested follows:)

The ASD (Comptroller) will require a number of studies to develop and prescribe resources management information needs of the elements of the Office of the Secretary of Defense and to provide recommendations leading to the establishment of policies, principles, basic features, terminology, and uniform practices.

The ASD (Installations and Logistics) will require contractual support for the development of at least one orientation seminar and one DOD procurement training course to provide adequate orientation to key DOD personnel in the areas of new procurement and logistics policy procedures. An evaluation of technical manuals with relation to educational science is required. This can best be accomplished by a competitively awarded contract with a leading textbook publisher knowledgeable of modern educational media to evaluate the reflection of the state of the art and to recommend improvements in manuals procured by the military services under contracts for hardware and for use in training and maintenance.

Mr. SIKES. Will they be performed with in-house capability or with outside consultant teams?

Mr. HORWITZ. This part of my office was started in 1961 and it has been wholly inhouse. They are not the kind of studies that require out-of-house expertise. They require inhouse expertise. They have been performed by a small office not exceeding 10 people.

Mr. SIKES. Are there not many advantages to in-house capability when it is possible?

Mr. HORWITZ. There is no question about it. Wherever it is possible to do it inhouse, you want to do it inhouse. You go outside only when you cannot find the total expertise that you need inhouse.

For the kind of problems that I have been dealing with on organizational planning we have had no lack of inhouse capability to do them. Mr. SIKES. What is the difference between the management studies conducted under your responsibility as Assistant Secretary for Administration as contrasted with those conducted by the Assistant Secretary Comptroller?

Mr. HORWITZ. My management studies are looking up to the Secretary of Defense. How can he best allocate his powers and responsibilities? The Comptroller goes looking to see how a particular unit is actually carrying out its job. He looks to see if it has too many people in there, could it improve the job.

What I am principally looking at are the management techniques of the Secretary of Defense. I look up to the Secretary. The Comptroller looks down into the organization.

RESPONSIBILITIES OF ASSISTANT SECRETARY, ADMINISTRATION

Mr. SIKES. Have you assumed any responsibilities in addition to those which Mr. Airhart discussed with us last year?

Mr. HORWITZ. Yes. There have been two things.

One is, the responsibility for security policy was transferred from the Assistant Secretary of Defense for Manpower to my office. This was done when Mr. Morris became the new Assistant Secretary of Defense for Manpower. He went to Mr. McNamara and said he did not believe this was properly a manpower problem. So it ended up with the Assistant Secretary of Defense for miscellaneous.

The other thing is a small group which Secretary McNamara asked me to set up, the Vietnamese Expediting Task Force, whose job is

really to be the spokesman for General Westmoreland at the seat of the government on those problems that General Westmoreland feels need special attention. This is a small group of about six military and four civilians, including clerical, who have set up a system for bringing those matters to the attention of the Secretary of Defense that require intensive action to be taken.

This is a group that we set up and it should disappear when we get all the major problems resolved. I cannot tell you at the moment when it will disappear.

SECURITY CLASSIFICATION OF INFORMATION

Mr. SIKES. Can you contrast the difference in the security arrangements between your organization and those carried out by the Public Affairs Office?

Mr. HORWITZ. Yes.

The Public Affairs Office has only one security responsibility. Their job is to see that classified material is excised from things that are to be made public.

In other words, if something is classified by whoever has authority to classify, public affairs' job is to see that the classification is maintained.

My job, on the other hand, is laying down the classification policy and assisting the Secretary to determine what should be classified and what should be declassified. It goes to the question of whether something should be classified or declassified, plus the management of the over-all industrial security program and personnel security program and their policy considerations.

The Assistant Secretary of Defense for Public Affairs' job is to see that classified material does not inadvertently get declassified without the proper people who have the authority to declassify having declassified it.

Mr. SIKES. We have had considerable difficulty this year with the editing of transcripts of these hearings. That editing, I would gather, comes under the Public Affairs Office.

Mr. HORWITZ. That is correct. We have nothing to do with that. Mr. SIKES. Is it because of this dual agency responsibility that the committee got into the situation it did a week ago, when material which had been classified in the transcript and deleted, suddenly became public information?

Mr. HORWITZ. May I say they are not responsible for this. The man who has declassifying authority declassified it. If this had occurred before they went over your transcript, that would have been left in. Unfortunately, they had operated under one rule and 3 days later he declassified certain information. This goes on all the time. We are faced with the problem, one committee has asked us on a hearing that was held 3 years ago in which a whole host of classified material was taken out to go back over that whole hearing and put back in that which has been declassified in the interim. This would be a tremendous job.

Mr. SIKES. The situation becomes very difficult for this committee because this committee has leaned over backward in an effort to protect security matters. I do not think any committee has a better record in that regard than this one.

Mr. HORWITZ. That is right.

Mr. SIKES. Yet at the same time we frequently find ourselves in an awkward position because we do try to protect security. We send a published record to the floor that has been cut all to pieces for security deletions, and perhaps the same day or the day before or even weeks before someone from one agency or another will have put the whole thing in the paper and it makes us look pretty silly.

Mr. HORWITZ. May I say this is a very bothersome problem. This is one that I do not know the answer to. It probably lies in the nature of circumstances of things and the nature of how busy you are and how busy we are and the time frame in which you have to do it.

STATE DEPARTMENT DECLASSIFICATION

Mr. SIKES. A very good example of this thing is the matter of defoliation or otherwise destroying rice crops to keep them from falling into the Communist hands. All reference to questions on this matter and information was completely eliminated and yet before we got to the floor with the bill, the State Department had issued great long stories telling exactly how many acres they had destroyed, et cetera,

et cetera.

Mr. HORWITZ. This is part of the problem.

Here are the people working down there. They know the day your record comes over that this information is classified. They have to work fast. These people are not privy to the fact that the State Department may be considering declassifying this type of thing and they do not find it out until they have completed the task for you and sent it back to you.

I think this is a case where everybody is working in good faith. Where this happens before the document goes to the printer, we can pick it up and put it back in to the extent that it has now been declassified. I just do not know what you do with the situation where in good faith you take it out because it is classified and it goes to the printer and then gets printed and you then go to the floor, and the day you go to the floor or 2 days before you go to the floor the Secretary of State or Secretary of Defense, or even the President of the United States declassifies it.

I just do not know how you can handle this problem.

COORDINATION ON CLASSIFICATION BETWEEN OFFICES AND/OR DEPARTMENTS

Mr. LIPSCOMB. Do you coordinate between the Public Affairs Office and other departments of the Department of Defense for classification?

Mr. HORWITZ. He coordniates. He goes to the various people who classify. Let us say the item is an Air Force item. He goes to the Air Force and the Air Force says this is a classified fact. This is all he needs. He is told it is classified. The Air Force, which is responsible for classification, tells him that it is still classified. Three days later the Secretary of the Air Force may declassify.

Mr. LIPSCOMB. I am talking about our hearings. They go to the Public Affairs Office.

Mr. HORWITZ. Yes. He will ask the Air Force or the State Department to look at something from the point of view of policy. If it

involves this type of thing, they will get their inning on this. There is coordination across the board. But what happens at the highest level a day or two later is something that these people just do not know about yet.

CLASSIFICATION OF CONGRESSIONAL HEARINGS

Mr. LIPSCOMB. Has anybody ever taken a look to see if they are overclassifying congressional hearings?

Mr. HORWITZ. I know this. Our instructions are when in doubt to err on the side of declassification. On the hearings that I have been familiar with, that I personally have attended, there has not been any overclassification.

Mr. LIPSCOMB. How close is the coordination between the Public Affairs Office and the Administration Office? Because in your justification book you say that the Administration has jurisdiction over and including programs for declassification of information.

On the other one, it says that public affairs takes care of the security of all the materials originating within the Department of Defense, including testimony before congressional committees.

Mr. HORWITZ. Their job is to look at a statement made before the congressional committee and say, does this contain or does it not contain a classified fact. If it contains a classified fact, their job is to see that it comes out.

Mr. LIPSCOMB. Supposing they are not up to date? How do they keep up to date?

Mr. HORWITZ. They keep up to date by going to the people whose job it is to classify that fact. I do not myself, except in papers emanating out of my own office, classify material. I help the Secre tary make the policy on which other people who do the classifying, classify or declassify. But if it involves my area-for example, if there is anything classified in my testimony this morning and I do not know that there is-they will bring it to me and ask me if there is anything specifically classified or that I regard as classified. So that they will not miss something that I regard as classified. They do this with the Secretary of the Air Force, Secretary of the Army. Secretary of the Navy, or any of their people.

STUDY OF CLASSIFICATION OF MATERIAL

Mr. LIPSCOMB. Have you ever made a study of this?

Mr. HORWITZ. Of what? The amount they are classifying? No. Mr. LIPSCOMB. Or the coordination problem of classification.

Mr. HORWITZ. No, but I will be glad to look into it. I have never made any study of it myself. To what degree the Assistant Secretary of Defense, Public Affairs, has, I do not know. I do not know what the former Assistant Secretaries of Manpower have ever done in this

area.

CONSOLIDATION OF OFFICES

Mr. SIKES. Should there be a consolidation of the offices which have to do with this matter?

Mr. HORWITZ. No; I do not believe so, because they are performing entirely different functions. You still have to go back to the same people.