PUBLIC LAWS-CH. 301-JULY 23, 1947 number of officers in the various ranks as provided in this section the computation shall be based on the actual number of officers on active duty, including permanent, temporary, temporary service, and reserve officers on active duty, but not including extra num- bers in the Coast Guard at the date of making the computation. The Secretary of the Treasury shall, at least once each year, make such a computation, and the resulting numbers in the various ranks as so computed shall be held and considered for all purposes as the authorized number in such various ranks. The nearest whole number shall be regarded as the authorized number in case frac- Reduction and in- tions result in the computation. The Secretary of the Treasury crease of percentages is, however, as he may from time to time determine the needs of the Coast Guard require, authorized to reduce the percentages applicable to any rank or ranks above lieutenant commander and in order to compensate for such reduction, to increase correspond- ingly the percentages applicable to any rank or ranks below the paReuction in rank, rank or ranks in which such percentages are so reduced. No officer shall be reduced in permanent rank or pay or removed from the active list of the Coast Guard as the result of any computation or determination made by the Secretary of the Treasury to establish the number of officers in the various ranks. Promotion to rear SEC. 2 . Commissioned officers, including extra numbers in rank, shall be promoted to the ranks of rear admiral by selection, under such dAstanstConmaein regulations as the Secretary of the Treasury may prescribe. The Chief. Assistant Commandant and the Engineer in Chief shall be entitled to the pay and allowances provided by law for rear admirals of the uppehaadmils of upper half. The number of rear admirals on the active list of the Coast Guard entitled to the pay and allowances provided by law for rear admirals of the upper half, excluding the Assistant Commandant and the Engineer in Chief for purposes of computation, shall be one-half of the number of officers on the active list of that rank. Where the division results in an odd number, the odd number shall be placed in the upper half. No officer who has or may become entitled to the pay and allowances of a rear admiral of the upper half shall suffer a reduction of his pay and allowances solely by reason of the fact that recedece the number of rear admirals may for any reason be reduced. The precedence on the list of rear admirals shall be determined by the date of first appointment to that rank, except that the Assistant Com- mandant shall, while holding such office, be next in precedence to the Commandant. commissioned ficers. SEO. 3 . The President is authorized to appoint, by and with the advice and consent of the Senate, permanent commissioned officers in the Coast Guard in ranks appropriate to their qualifications, experi- ence, and length of service, as the needs of the Coast Guard may require and as are found by the Secretary of the Treasury, as the result of such examinations as he may deem necessary, to be mentally, morally, ategoes. professionally, and physically qualified, from among the following Categorie categories: (1) Graduates of the Coast Guard Academy; (2) Temporary commissioned officers of the Coast Guard; (3) Chief warrant officers, warrant officers, and enlisted men of the Coast Guard; (4) Members of the Coast Guard Reserve; 5) Licensed officers of the United States merchant marine who have served four or more years aboard a vessel of the United States in the capacity of a licensed officer; and (6) Personnel of the former Bureau of Marine Inspection and Navigation of the Department of Commerce, and the Bureau of Customs of the Treasury Department, who were transferred [61 STAT.