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ever possible, they should travel by air, become car 12 ground installations and in all possible ways lear operandi, the tactics, and the thought of that corps.

The morale of military units is not, however, a one-FLT DI wherein the mental condition of the officer or soldier re out effort, the continual consideration by superiors.

with high morale builds by its own endeavor a self-respect ADD A TRUTH for efficient service. As an instance, it should not be the

War Department to prove the physical or mental que its officers and men. They, themselves, ought to assume the bones of proof. If preparatory conditions can be equalized, pers tests should be resumed as a promotion qualification. Also, Dem it may seem a minor point, officers can show their self-respect esprit by the acquisition of a full complement of proper undims

In

VITALIZATION

my annual report for the fiscal year 1938, I invited atten the serious situation confronting the promotion list by ressec of superannuation of officers in the World War group and the effect of that group in blocking promotion of the officers who follow it. The War Department has now submitted legislation to Congress to provide a fixed 4.35 percent annual attrition rate by the retirement. to the extent necessary, of officers who are over age in grade. The mensure should be enacted into law. In my opinion, it is the fairest means of eradicating a constantly growing evil.

FUTURE DEFENSE PLANS

The foregoing discussion of the Army's recent progress and its immediate administrative needs leads to my final recommendation, one that cannot be too highly emphasized.

The most important need at this time is a clear definition of what constitutes adequacy in normal military defense. Much has been written and said during the past year by a variety of protagonists running the entire gamut of informed intelligence in military art. The resulting confusion in the mind of the mass of the citizens who pay for and receive the service of this military organization is natural. It is simple common sense for the country to determine upon and maintain at a constant level a sound, reasonably constructed Army as a matter of pure economy and safety. The great outlay of money culminating in the appropriations of the past fiscal year were caused in the main by the failure to observe this precept during the so-called disarmament period. The pinching economy in national defense during that 10-year stretch resulted in a wholly inadequate military establishment. The wastage of public funds resulting from the neglect was bad enough, but such a dangerous state of national security should never again be permitted.

This

I wish to stress again the time element in preparation for war. an immensely rich nation, but all of its wealth, all of its industrial pacity, all of its intelligent manpower, is helpless before the inexoble demands of time in manufacture and training. The period has ng passed when ineffectively armed or insufficiently trained men can icceed in war. We know to a day the time necessary to produce very item of armament and equipment-the time it takes to train ur military specialists. As an instance, the sums appropriated this st year will not be fully transformed into military power for 2 years. his fact, that it takes years to resolve the will of the people into ficiently handled munitions of war, must be remembered. The me persons who now state that they see no threat to the peace of ne United States would hesitate to make the same forecast through a -year period.

The net result of sane reasoning, of sound emergency planning, hould be to move the short distance that still remains to place the Army in a position of readiness, and having attained that status, to so naintain it as a matter of continuing military policy. The relatively ninor fluctuations necessary to balance the current international nilitary situation can then be promptly made. The constant modernzation of arms and equipment can be made smoothly and economically introduced.

The components of the economical, properly balanced position in readiness for this country are as follows:

An outpost line for security and the protection of initial defense forces.As previously noted, these ground and air forces must be prepared for immediate action. Their training, their equipment must be complete, and their strength sufficient to withstand attack until reinforced. Panama and Hawaii, properly strengthened, and the proposed installations in Puerto Rico and Alaska constitute this general line.

The main position.-The forces available here, the initial protective force, less those on outpost duty, consist of the remainder of the Regular Army and all of the federalized National Guard together with those Reserves assigned to them in emergency. Certain have fixed defense positions. Some require short periods of conditioning and training before they are committed to action. It is evident and important that a certain proportion must consist of immediately available infantry artillery teams-small, seasoned, hard-hitting divisionsthat are available for instant dispatch to reinforce our forward positions, to seize or hold naval and air bases or to destroy enemy bases. We have not now a single complete division of the Regular Årmy of the United States so available. We have four partial divisions and five brigades in various stages of completion; and only a few special units available-medium artillery, tanks, signal corps, engineers, and medical troops.

We urgently need to have always available five complete divisions at full peace strength, with a small complement of special troops, to meet the contingencies indicated. About 1,800 officers and 23,000 enlisted men will provide the additional personnel required to accomplish this important purpose on a modest peace strength basis. To disband our brigades in order to obtain five complete divisions would be a serious mistake, as these brigades will be needed as nuclei for the organization of additional Regular Army battle teams, and to lead in

the defense of continental United States until National Guard divisions can assume full responsibility for this duty.

Reserves. The soundness of our position will be nullified if we are unprepared to back up this initial protective force with adequate reserve strength. Any emergency worthy of the name will demand the mobilization of our protective mobilization force of a million men. Plans for that force must be real and complete. The critical armament and equipment should be on hand. In addition, the plans for a flexible levy up to any required strength must be soundly laid in manpower and in procurement in case a concerted attempt is made to limit our political future.

From the foregoing outline, the adequacy or ineptness of our defenses can always be determined. In all fairness to the people, it is the military minimum that can be devised for them with accompanying assurance that they are properly protected. In consequence, they should require its accomplishment and demand its maintenance.

CONCLUSION

In conclusion, I commend to you in highest terms the officers and men of the Army who have served throughout the past year with their traditional loyalty, efficiency, and enthusiasm. Their splendid cooperation during extremely full programs of expansion and training has been most gratifying and commendable. That unwavering support and complete loyalty will, I know, be extended constantly to my successor. In addition, I desire to record my sincere appreciation of the spirit of helpfulness exhibited toward the staff by members of Congress in legislative matters. It has been invaluable.

In closing this, my final report to you, I wish to thank you heartily for the full confidence and warm friendship you have shown me on all occasions and to express the pleasure and satisfaction I have enjoyed from our personal association in the War Department.

MALIN CRAIG,
Chief of Staff.

APPENDIX A

Annual Report of the Board of Commissioners of the United States Soldiers' Home and Annual Report of the Inspection of the United States Soldiers' Home by the Inspector

General of the Army (22 Stat. L. 564)

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