 On September 13, 1979 President Carter announced the nomination of Hidalgo as Secretary of the Navy, replacing W. Graham Claytor, Jr.. One of his priorities was recruitment of Hispanics into the Navy, particularly in the officer corps.The Vice Admiral James Bond Stockdale Award for Inspirational Leadership, a United States Navy award, was established in 1980 by Hidalgo to honor the inspirational leadership of James Stockdale, a Medal of Honor recipient in the Vietnam War, who exhibited exemplary leadership while a prisoner of war in North Vietnam for nearly eight years.The award were first made in 1981.