In the budget message for 1959, and again for 1960, I recommended immediate repeal of section 601 of the Act of September 28, 1951 (65 Stat. 365). This section prevents the military departments and the Office of Civil and Defense Mobilization from carrying out certain transactions involving real property unless they come into agreement with the Committees on Armed Services of the Senate and the House of Representatives. As I have stated previously, the Attorney General has advised me that this section violates fundamental constitutional principles. Accordingly, if it is not repealed by the Congress at its present session, I shall have no alternative thereafter but to direct the Secretary of Defense to disregard the section unless a court of competent jurisdiction determines otherwise.

Basic long line communications in Alaska are now provided through Federal facilities operated by the Army, Air Force, and Federal Aviation Agency. The growing communications needs of this new State can best be met, as they have in other States, through the operation and development of such facilities by private enterprise. Legislation has already been proposed to authorize the sale of these Government owned systems in Alaska, and its early enactment is desirable.

- Approximately 45% of the expenditures for the Department of Defense are for procurement, research, development, and construction programs. In 1961, these expenditures are estimated at $18.9 billion, compared to $19.3 billion in 1960. The decreases, which are largely in construction and in aircraft procurement, are offset in part by increases for research and development and for procurement of other military equipment such as tanks, vehicles, guns, and electronic devices. Expenditures for shipbuilding are estimated at about the same level as in 1960.