Senator YOUNG. Mr. Chairman, if I may be indulged in one further question. I have a rather long question which will require a short

answer.

The CHAIRMAN. All right, Senator, without objection. I was going to ask you to defer now because time has run out a little.

Without objection, we'll ask you to state your question now. Senator YOUNG. Just one long question, and I do not think the answer need be long: During the campaign, President Nixon spoke repeatedly of the need to synchronize I am using his words-our national security programs and the concern for arms control and the disarmament agreements. He said, in effect, or promised the evolution of a strategic doctrine stressing the nonbelligerent aspects of our national security posture. He spoke of that. Now, if President Nixon succeeds in translating this philosophy, and it seems to me a good philosophy, into reality, we would receive enormous security benefits; more, indeed, than any proposed weapons system. Have you any answer you care to state now on how you would, as Assistant Secretary of Defense, envision the Department of Defense work in concert with the Arms Control and Disarmament Agency and with the State Department to achieve President Nixon's stated goal of synchronizing our national security programs and continuing the search for arms control and disarmament agreements? In other words, continuing our search, seeking peace?

Dr. NUTTER. Yes; sir, Senator. I believe that I stated earlier that the best mark of success for any Defense Department is its ability to protect our national security by creating real peace in the world. I believe it is an obligation of the Department of Defense to participate in all meaningful activities of this sort for which there is hope that it will lead toward a more peaceful world. Therefore, I would anticipate that the Department of Defense will be engaged very actively in discussions that are going to proceed with the coordination of various opinions of the best way to proceed on these matters.

Senator YOUNG. Thank you, Mr. Chairman.

The CHAIRMAN. Thank you, Senator.

Senator Goldwater?

Senator GOLDWATER. Mr. Chairman, I have no questions. I would like to make a very, very short statement.

The CHAIRMAN. All right, sir.

Senator GOLDWATER. It has been my extreme pleasure and honor to have known Dr. Nutter for a good many years. I have turned to him many times for advice, mostly in the field of economics. It has not been mentioned here today, and I think that it should. I think that Dr. Nutter, along with Colin Clark, are probably the most knowledgeable men on the Soviet economy that we have in the world today. It has not been mentioned either that Dr. Nutter has very easy and ready access to countries that the average American seeking information does not have. We have overlooked this, and I think in this particular job he has been asked to serve in, this is the most valuable asset he brings. The fact that he has been visiting the Iron Curtain Countries and the Communist countries for so many years and has compiled such a list of people in those countries that he can talk with intimately I think will be a great advantage to us.

He has access, in fact, to people all around the world. I think while we are not particularly concerned with economics except the econom

ics of defense, using it in its other form, it would be good for all of us to read some of his writings in this field.

Having discussed this with him many times, and having listened to him lecture at his request at the University of Virginia on this subject, I consider him to be one of the strongest constitutionalists we have among the academicians of America. He has a very, very strong feeling about the relationship of the military to the civilian. In fact, I might add here parenthetically that in my experience with the military, I find a military man has a greater appreciation and greater respect for this relationship than do many civilians I have seen in and out of the government. In relationship, for example, to the remarks about General Burchinal, all we have are the remarks of a newspaper. I would suggest that it would be wise to withhold comment until we find out just what did take place. I do not speak to defend the general, but I speak to recognize that we have no sources other than I think it is the Washington Post, a local paper.

The CHAIRMAN. Who is that you referred to?

Senator GOLDWATER. General Burchinal, who has been charged with misdemeanors in the field of foreign relations.

The CHAIRMAN. The Spanish bases?

Senator GOLDWATER. Yes.

It is a real pleasure for me to endorse Dr. Nutter. I wish I had been here to have the pleasure of introducing him because I look on Virginia as a second home. It is a great pleasure to add to what I think is rapidly becoming the best team we have had on that side of the Potomac in many years.

The CHAIRMAN. Thank you, Senator.

Senator Schweiker?

Senator SCHWEIKER. No questions, thank you, Mr. Chairman.
The CHAIRMAN. I thank all members.

Does any other member have a question he has thought of?
[No response.]

The CHAIRMAN. Dr. Nutter, I want to make a point. This is not a threat to you or anyone else. But I think and I think the committee has the view that any office that is subject to confirmation is also, the nominee, if he is appointed, is subject to being asked to come back before the committee from time to time, whenever the committee might wish, for consultation, especially on policy matters. It is a privilege that the committee certainly will not abuse. But I think it goes right along with the responsibility of the committee in making recommendations as to confirmation.

Do you agree to that general idea?

Dr. NUTTER. Yes, sir; Mr. Chairman. I am mindful of my obligations The CHAIRMAN. I do not use it as a threat, as you know. Of course, the President has the final say on policy, but we do not take the representation that-well, we know that the President has to depend upon his advisers.

Now, you expect to serve here as long as the President desires, is that right?

Dr. NUTTER. Yes, sir; Mr. Chairman, I will serve at the pleasure of the President.

The CHAIRMAN. May I ask, and this is not a personal question. Why do you come to this position? It is not an easy one. You know that already. Why did you respond to this call for public service?

Dr. NUTTER. Mr. Chairman, that decision to accept the nomination of the Secretary of Defense was not an easy one to make, because I have deep roots in the academic community. I have been for many years at the University of Virginia. But after long reflection on the conditions as I see them in the world, the fact that I have exercised my rights as a private citizen to criticize from time to time what has been done in our Government, I felt that I owed an obligation to serve when called upon to do so and I sincerely trust that if I am confirmed, I will be able to fulfill the confidence that has been shown in me by Secretary Laird.

The CHAIRMAN. That is a very good answer. You are now chairman of the department of economics at the University of Virginia, is that right?

Dr. NUTTER. Yes, sir.

The CHAIRMAN. If there are no other questions, we thank you very much for your attendance. You do not have to excuse yourself from the room, of course, until we go into executive session.

Mr. Beal.

NOMINATION OF THADDEUS R. BEAL, TO BE UNDER SECRETARY OF THE ARMY

The CHAIRMAN. Members of the committee, this is Mr. Beal, who has been nominated to be Under Secretary of the Army.

(The nomination reference and biographical data of Mr. Beal, as well as a letter addressed to the chairman of the committee by Mr. Beal regarding his financial holdings, follows:)

NOMINATION REFERENCE AND REPORT

IN EXECUTIVE SESSION,
SENATE OF THE UNITED STATES,
February 19, 1969.

Ordered, That the following nomination be referred to the Committee on Armed Services: Thaddeus R. Beal, of Massachusetts, to be Under Secretary of the Army.

THADDEUS R. BEAL, UNDER SECRETARY OF THE ARMY (APPOINTEE)

Mr. Thaddeus R. Beal has been nominated to succeed Mr. David E. McGiffert, as Under Secretary of the Army.

Mr. Beal, President and Chief Executive Officer, Harvard Trust Company, Cambridge, Massachusetts was born in New York City, March 22, 1917. He received his B.A. degree from Yale College in 1939 (Phi Beta Kappa) and LL.B. from Harvard Law School in 1947 (Cum Laude). He served in World War II as a member of the U.S. Navy, from 1941 to 45, attaining the rank of Lieutenant Commander.

Mr. Beal was admitted to the Massachusetts Bar in 1947. He was an associate and later partner in the law firm of Herrick, Smith, Donald, Farley and Ketchum, Boston, Massachusetts from 1947 until 1956. He joined the Harvard Trust Company in 1957.

Mr. Beal is a trustee of the Cambridge Savings Bank; trustee of Boston Personal Property Trust and director of the Middlesex Mutual Insurance Company. He is a member of the Executive Council, American Bankers Association.

Mr. Beal is married to the former Katharine Putnam. They have four childrenKatharine, Thaddeus, Alice and George.

Hon. JOHN STENNIS,

Chairman, Committee on Armed Services,

U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: In connection with your Committee's consideration of the President's nomination of me as Under Secretary of the Army, and after consultation with Army and Defense Counsel, I wish to advise you that as of this date I own stocks in the following companies which appeared on the Department of Defense Master List (DML) for fiscal year 1968:

This list was developed by checking my securities against the DML for fiscal year 1968.

I wish to advise you further that in accordance with my understanding of the Committee's practices, I will, if confirmed, divest myself of all my stocks in these companies (other than Idaho Power, a regulated public utility) within ninety days, and assure that the funds thus derived and any other funds available to me during my Department of Defense service will not be invested in any company (other than a regulated public utility) listed on the DML current at the time of investment.

There are several trusts, described below and identified as Trusts A through E inclusive, in which I have beneficial or other interests. Each trust at present contains stock in companies listed on the DML. As to each trust I will request the trustee(s) not to forward me any information on investments, holdings, or sales during the period of my Department of Defense service. Furthermore, Í propose to take additional action as indicated below with regard to certain of these trusts:

TRUST A

This is an irrevocable inter vivos trust settled by my mother in 1933. I am the sole income beneficiary. My mother and Chase Manhattan Bank are co-trustees. Upon my death the principal will be divided among my children. Some years ago I released a power of appointment over the principal of the trust and now have no powers with respect to this trust. I will request the co-trustees not to make investments in stocks on the current DML.

TRUST B

This is an irrevocable testamentary trust created by my father who died in 1932. My mother is the sole income beneficiary. Upon her death, the principal will be divided among her three other children and me. My mother and United States Trust Company are co-trustees. I have no powers with respect to this trust. Should any portion of the principal of this trust be distributed to me during the period of my Department of Defense service, and should that portion contain stock in companies (other than regulated public utilities) on the DML, I will divest myself of such stock within ninety days of its distribution to me.

TRUST C

This is also an irrevocable testamentary trust created by my father. As in Trust B my mother is the sole income beneficiary. Upon her death the principal will be divided among her three other children and me. My mother and Irving Trust Company are co-trustees. I have no powers under this trust. Should a distribution of the principal occur during my period of Department of Defense service, I will dispose of the stock of companies on the DML (other than regulated public utilities) to the same extent and in the same manner as indicated for Trust B.

TRUST D

I am using the term "Trust D" to describe identical trusts created by my mother for the individual benefit of her grandchildren during their minority.

These beneficiaries include my two minor children. I am sole trustee of each of the 13 remaining trusts. Apart from my position as trustee, I have no interest in the income or principal of any of these trusts. I will resign as trustee of each of these trusts and will not accept reappointment during the period of my Department of Defense service.

TRUST E

This is an irrevocable trust created under the will of my wife's father, of which I am a co-trustee. Apart from my position as co-trustee, I have no interest in the income or principal of this trust. I will resign as co-trustee and will not accept reappointment during the period of my Department of Defense service.

I have a vested interest in a pension plan and in a profit sharing plan established by my current employer, Harvard Trust Company. Should I be confirmed and enter on my duties, no future funds will be contributed by my employer or me to either of these plans. No action of mine during my Department of Defense service could increase or diminish the amount due to me under these plans.

My other assets consist of cash, stocks in regulated public utilities, state and municipal bonds, stocks in companies not on the DML, and real estate.

I trust that the arrangements outlined above will prove satisfactory to the Committee.

Sincerely,

THADDEUS R. BEAL.

Senator BROOKE. Mr. Chairman, may I have the honor of introducing Mr. Beal?

The CHAIRMAN. Certainly. The Chair is glad to recognize Senator Brooke.

Senator BROOKE. Mr. Chairman, I regret to say that I do have to go to the Banking and Currency Committee, but I appreciate this opportunity to introduce Mr. Thaddeus Beal, who has been nominated by the President for the very important and sensitive position of Under Secretary of the Army. I would like to say Mr. Beal is a man of great imagination, a man who has the courage of his convictions and who I think will serve with great distinction as the Under Secretary of the Army. I am very pleased and proud to recommend him to my colleagues for confirmation and to applaud President Nixon's appointment of this very distinguished citizen of Massachusetts.

I hereby give my proxy to my distinguished ranking lady, Senator Smith, for Mr. Beal, and for the other nominees who will appear before this committee, whose records I have reviewed.

Thank you very much, Mr. Chairman.

The CHAIRMAN. Thank you, Senator.

We are glad to have you here this morning, Mr. Beal. You are now President and Chief Executive Officer of the Harvard Trust Company.

STATEMENT OF THADDEUS R. BEAL, NOMINEE TO BE UNDER SECRETARY OF THE ARMY

Mr. BEAL. Yes, sir.

The CHAIRMAN. Do you have a prepared statement?
Mr. BEAL. I do not have one.

The CHAIRMAN. If there is any statement you wish to make about the duties of the office, why you accepted the will of the President to nominate you or anything like that please do so.

Mr. BEAL. I think all I would like to say at this point is I am pleased and honored to be here and I appreciate the opportunity to serve in this position.