Message to the Congress Transmitting Reorganization Plan 8 of 1949: Department of Defense.

To the Congress of the United States:

I transmit herewith Reorganization Plan No. 8 of 1949, prepared in accordance with the provisions of the Reorganization Act of 1949.

This plan is designed to make urgently needed changes in the administration of the National Military Establishment and other agencies created by the National Security Act of 1947.

That Act failed to provide for a Department of Defense and for a fully responsible official with authority adequate to meet his responsibilities, whom the President and the Congress can hold accountable. The Act also failed to provide the basis for an organization and a staff adequate to achieve the most efficient and economical national defense program, and to attaining effective and informed civilian control of the armed forces of the United States

On March 5, 1949, I recommended to the Congress that the National Security Act of 1947 be amended to strengthen and clarify the position of the Secretary of Defense and to provide him with more adequate staff assistance in the performance of his responsibilities. My recommendations were made on the basis of our experience under the Act, the recommendations of the First Secretary of Defense, and the extensive study given to this matter by the Commission on Organization of the Executive Branch of the Government.

Since my message of March 5, the Senate has considered the organization of the National Military Establishment and has passed S. 1843 which embodies most of my recommendation. In the House of Representatives consideration has been given to the Senate bill in committee. The measure reported, however, deals only with a limited part of the Senate bill.

The House bill deals with organizational and procedural arrangements for developing and executing the budget. It also provides greater flexibility with regard to methods of financing and accounting for certain complex operations. These are worthwhile improvements and should be of help in obtaining the efficiency and economy which the entire legislation is designed to bring about.

The pending House bill, however, deals only with the mechanics of finance and budgeting and does not deal with many basic factors of managing the department which would so largely determine the content of the budget. There is also a defect in the proposed bill, in that it would vest by statute, specific functions relating to financial management in a subordinate official of the department and then make that official an appointee of the President. This is a detraction from the responsibility of the Secretary. It departs both from our present practice and from the principles of departmental management stated by the Commission on Organization of the Executive Branch, with which I am in agreement. I cannot support budgetary or other control systems which fail to confer responsibility in a clean-cut manner and which present possible obstacles to effective administration.

On June 20 the Reorganization Act of 1949 became law. That Act provides that the President may submit plans to Congress to improve the organization of the Executive Branch and lead to increased economy and efficiency. As my message of March 5 indicated, I place a very high priority upon action to improve our defense organization. It is a vital area of governmental activity. It accounts for nearly one-third of our Federal expenditures.

While it is not possible by reorganization plan to accomplish as broad a reorganization of the National Military Establishment as I have recommended, a number of important improvements can be made by proceeding under the Reorganization Act of 1949.

Plan No. 8 of 1949 converts the National Military Establishment into the Department of Defense. The Secretary of Defense as the head of the Department of Defense will exercise authority, direction and control over the department. Subject thereto, the Departments of the Army, Navy, and Air Force will continue to be administered as executive departments by their respective Secretaries. The plan does not change, or authorize the Secretary of Defense to change, the statutory assignment of combatant functions, roles and missions to the Army, the Navy, and the Air Force.

The plan provides for the office of Deputy Secretary of Defense, in place of the present position of Under Secretary, and also provides the Secretary of Defense with three Assistant Secretaries of Defense. It will provide for a Chairman of the Joint Chiefs of Staff. It will provide for a Personnel Policy Board, on the same organizational basis as the Munitions Board and the Research and Development Board. It will remove the onerous restrictions and limitations imposed on the Secretary of Defense by the National Security Act which are inappropriate to his status as head of the Department of Defense. It will make the Secretary of Defense the sole representative of the Department of Defense on the National Security Council. Since it is impossible to provide by reorganization plan for budgetary and other fiscal arrangements along the lines provided in the Senate and House bills, and since both Houses of the Congress have taken action on this matter, I have excluded the entire subject matter of Title IV of S. 1843 from the reorganization plan.

I have found that each reorganization contained in the accompanying plan is necessary to accomplish one or more of the purposes set forth in section 2(a) of the Reorganization Act of 1949. I have also found and hereby declare that by reason of the reorganizations included in this reorganization plan, it is necessary to make provision for the appointment and compensation of a Deputy Secretary of Defense, three Assistant Secretaries of Defense, a Chairman of the Joint Chiefs of Staff, and a Chairman of the Personnel Policy Board. The compensation of each of these officers is fixed at a rate not in excess of that which I have found to prevail in respect of comparable officers in the Executive Branch of the Government. The functions of the Secretaries of the Army, Navy, and Air Force as members of the National Security Council, and their functions with respect to reporting directly to the President and the Budget Director, provided for in sections 101(a) and 202(a) respectively of the National Security Act, are abolished by the provisions of the plan.

The important results which will flow from the reorganizations set forth in the plan will be more effective civilian authority and control over the military forces, more efficient and economical administration of the Department of Defense, and better interservice relationships. This will pave the way for the lowest possible expenditures for the national defense consistent with the national security. It is probable that it will result in very substantial reductions in expenditures.

I am submitting Reorganization Plan No. 8 at this time for two reasons. First, to emphasize the importance I attach to this matter and to take action by all means at my command to secure prompt action. Second, to provide a sure means whereby all the members of Congress will be able to vote on the question of improving our defense organization in the event that adequate legislation is not developed through the usual legislative processes.

I have not previously submitted a reorganization plan on this matter because I believe that a more appropriate reorganization can be accomplished by legislation. Only by legislative action can the Department of Defense be placed in the proper relation to the military Departments of Army, Navy, and Air Force. While this issue cannot be fully dealt with by reorganization plan, all of the other matters included in my recommendations of March 5 can be effected by plan. Reorganization Plan No. 8 would thus represent a major improvement over our present arrangements. It would clarify and strengthen the responsibility and authority of the Secretary of Defense and would give him better military and civilian staff assistance to accomplish his important duties.

In the event that the changes I recommended to the Congress in March are not effected by statute at this session, then those changes which can be put into effect by reorganization plan should be made. I am primarily interested in achieving some worthwhile results in improving the organization of the defense establishment at the earliest possible time.

Whether the reorganization comes about through legislation, which I would prefer, or by reorganization plan, it should deal adequately with the subject and provide for clear lines of responsibility and authority. This does not mean the creation of one-man rule or dictatorship. Our Constitutional system is the best possible safeguard against that eventuality. It does mean, however, that we can receive full value from the dollars which go for defense and that the Government's activities in this important area will be more effectively planned and managed.

I again urge the Congress to strengthen our defense organization which is so vital to the security of this Nation and the peace of the world.

HARRY S. TRUMAN