36 



oped by the Federal agencies. The Commission was able to review 

 such plans and reach some conclusions. 



Rather than reading the material in the statement which is avail- 

 able for your inspection, I might just briefly note some of the assump- 

 tions on which the Commission's estimates have been built. 



Inevitably, such figures as the $8 billion expenditure over 10 years, 

 which was seen in the press, are only as useful as knowledge how they 

 are pulled together. There are some assumptions that need to be 

 pointed out. First, the Commission in its report has attempted to 

 set forth only the incremental costs of moving forward to implement 

 its recommendations. The basic costs of carrying forward present 

 programs is assumed in building these incremental estimates to con- 

 tinue at the present level throughout the 10-year period. Actually, 

 as Mr. Reedy points out, there will be growth in these programs, 

 whether action is taken on specific recommendations advanced by the 

 Commission or not. 



I think we can anticipate that these present activities will be 

 growing at the rate of say 5 or 6 percent a year. That has been the 

 pattern of the last 6 or 8 years. The additional amounts recommended 

 by the Commission are not greatly larger than these growth rates. 



Second, there has been an effort in these estimates to see how differ- 

 ent parts of the program relate to one another. Whereas individually 

 the numbers may be somewhat hazardous, in total they seemed to the 

 Commission to represent an appropriate package for recommendation. 

 The total level of effort, the mix of capital versus operating outlays, 

 and the sequencing of activity so that an activity such as basic 

 surveys was undertaken early in the program to provide the basis for 

 other activities at a later time — these were all considered by the Com- 

 mission and a judgment developed. 



Third, I might note that the numbers which have been compiled 

 by the Commission are not totally comprehensive of all aspects of 

 the Nation's interests in the sea. They do represent just those amounts 

 to implement recommendations of the Commission. They do not go 

 to the activities of the Department of Defense oriented toward mili- 

 tary purposes. They do not reach programs such as the Public Health 

 Service sanitation activities which were not examined by the Com- 

 mission. They do not — this is a very important point — attempt to 

 bring in estimates for the costs of replacing ships that are operated 

 by the present agencies or of meeting the routine requirements of 

 keeping existing activities going, with which the agencies must be 

 concerned with and regarding which they have in-house excellent 

 projections since the Commission did not feel it was necessary to 

 review their plans in order to develop its own proposals. 



Thank you, Mr. Chairman. 



Mr. Stratton. Mr. Chairman, that completes our formal state- 

 ment. I am sure that the members here would be happy to respond to 

 questions you gentlemen may wish to present. 



Mr. Lennon. In order to accommodate Dr. White, you say that 

 you have to leave in 1 hour? 



Dr. White. 12:15, Mr. Chairman. 



Mr. Lennon. We will direct our questions then to Dr. White to 

 accommodate his situation. 



Do you have questions of him? 



