Traditionally, rates of pay for retired military personnel have been proportionate to current rates of pay for active personnel. The 1958 military pay act departed from this established formula by providing for a 6% increase rather than a proportionate increase for everyone retired prior to its effective date of June 1, 1958. I endorse pending legislation that will restore the traditional relationship between retired and active duty pay rates.

- Expenditures for operating and maintaining the stations and equipment of the Armed Forces are estimated to be $10.3 billion in 1961, which is $184 million more than in 1960. The increase stems largely from the growing complexity of and higher degree of maintenance required for newer weapons and equipment.

A substantial increase is estimated in the cost of operating additional communications systems in the air defense program, as well as in all programs where speed and security of communications are essential. Also, the program for fleet modernization will be stepped up in 1961 causing an increase in expenditures. Further increases arise from the civilian employee health program enacted by the Congress last year.

Other factors increasing operating costs include the higher unit cost of each flying hour, up 11% in two years, and of each steaming hour, up 15%. In total, these increases in operating costs outweigh the savings that result from declining programs and from economy measures, such as reduced numbers of units and installations, smaller inventories of major equipment, and improvements in the supply and distribution systems of the Armed Forces.