FOREIGN RELATIONS AUTHORIZATION ACT OF 1972

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CIA-RDP74B00415R000600120003-6
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April 20, 1972
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REPORT
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Approv FOREIGN RELATIONS AUTHORIZATION ACT OF 1972 REPORT COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE TOGETHER WITH ADDITIONAL VIEWS S. 3526 TO PROVIDE AUTHORIZATIONS FOR CERTAIN AGEN- CIES CONDUCTING THE FOREIGN RELATIONS OF THE UNITED STATES, AND FOR OTHER PURPOSES APRIL, 20, 1972.-Ordered to be printed U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1972 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington, D.C. 20402 - Price bw Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 COMMITTEE ON FOREIGN RELATIONS J. W. FULBRIGHT, Arkansas, Chairman JOHN SPARKMAN, Alabama MIKE MANSFIELD, Montana FRANK CHURCH, Idaho STUART SYMINGTON, Missouri CLAIBORNE PELL, Rhode Island GALE W. McGEE, Wyoming EDMUND S. MUSKIE, Maine WILLIAM B. SPONG, JR., Virginia GEORGE D. AIKEN, Vermont CLIFFORD P. CASE, New Jersey JOHN SHERMAN COOPER, Kentucky JACOB K. JAVITS, New York HUGH SCOTT, Pennsylvania JAMES B. PEARSON, Kansas CHARLES H. PERCY, Illinois Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003.6 CONTENTS Authorization of appropriations_____________________________________ 1 Other provisions of the bill_________________________________________ 2 Background------------------------------------------------------ 3 Committee action------------------------------------------------- 4 Committee comments______________________________________________ 6 + Section-by-section analysis: Title I. Department of State____________________________________ 14 Sec. 101(a) (1) Administration of Foreign Affairs---------------- 14 Salaries and expenses ($250,820,000)____________________ 15 Representation allowance ($993,000) --------------------- 17 Acquisition and maintenance of buildings abroad ($27,- 127,000)-------------------------------------------- 18 Acquisition and maintenance of buildings abroad (Special foreign currency program ($6,455,000) _ _ _ _ _ _ _ _ 20 Emergencies in the diplomatic and consular service ($2,100,- 000)----------------------------------------------- 21 Payments to the foreign service retirement and disability fund ($1,958,000) ----------------------------------- 22 General comments of the Committee on the State Depart- ment authorization__________________________________ 22 Sec. 101(a) (2) International organizations and conferences ------ 24 __ 24 International organizations ($180,900,000)______________ Committee comments on International organizations------- 27 Missions to international organizations ($4,863,000) -------- 28 International conferences and contingencies (2,500,000) _ - _ _ 29 Sec. 101(a) (3) International commissions ($18,226,000) -------- 30 See. 101(a) (4) Educational Exchange ($59,200,000) ------------ 35 Mutual educational and cultural exchange activities ($52,400,000) - 35 Center for Cultural and Technical Interchange between East and West ($6,800,000) _ _ _ _ _ _ _ _ _ 40 Sec. 101 (a) (5) Migration and refugee assistance ($8,212,000) _ _ _ _ 41 Sec. 101(b) Authorization of assistance for Soviet Refugees ($85,000,000) ------------------------------------------- 41 A See. 101(c) Availability of funds_____________________________ 42 Sec. 102 Limitation upon prior authorization requirement------ 42 Sec. 103 Deputy Secretary, Bureaus of North American and South American Affairs---------------------------------------- 42 Sec. 104 Executive Schedule Pay Rates______________________ 43 Sec. 105 Retirement annuities for certain aliens --------------- 44 Sec. 106 Military Personnel and Civilain Employees' Claims Act of 1964------------------------------------------------- 45 Sec. 107 Retirement from Foreign Service -------------------- 47 Sec. 108 Recommendations for Promotion -------------------- 47 Sec. 109 Foreign Service Grievances_________________________ 48 Sec. 110 Ambassadors and Ministers------------------------- 50 Title II. United States Information Agency_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 51 Committee comments______________________________________ 51 Sec. 201 Authorization of Appropriations --------------------- 57 See. 201(a)(1)(A) Radio activities____________________________ 60 See. 201 (a) (1) (B) Motion picture and television activities------- 64 Sec. 201(a) (1) (C) Press and Publications activities------------- 66 Sec. 201 (a) (1) (D) Centers and related activities--------------- 69 Sec. 201(a) (1) (E) Program direction and general support, share administrative expenses, and research and assessment -------- 72 See. 201 (a) (2) Special foreign currency program --------------- 76 Sec. 201 (a) (3) Special international exhibitions---------------- 77 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 IV Section-by-section analysis-Continued Title II-Continued Page Sec. 201 (a) (4) Acquisition and construction of radio facilities_-_- 79 Sec. 202 Providing certain basic authorities-------- --- ------ 79 See. 203 Limitation upon prior authorization requirement-_----- 82 Sec. 204 Dissemination of Information within the United States- 82 Sec. 205 Restriction on preparation and dissemination of infor- mation-------------------- - -------- Titl III A C 85 e . rms ontrol and Disarmament A enc (ACDA) Sec. 301 Authorization of appropriations------------ -________ 86 Committee comments-------- _-- _ --------------------------- 89 Sec. 302 Seismic research--_ -- ----- 90 Title IV. Peace Corps -------- ------------------------------- _- 92 Sec. 401 Authorization of appropriations --------------------- 92 Sec. 402 Voluntary service programs---------- ----- 96 Sec. 403 National Advisor} Council---------------------------- 97 Sec. 404 Authorization of excess foreign currencies --- _ _ 97 Title V. General and Miscellaneous Provisions ---------- 97 Sec. 501 Certain additional authorizations of appropriations---- 97 Sec. 502 Expression of individual views to Congress --- 97 Sec. 503 Repeal of Rhodesian Sanctions Provisions 97 Sec. 504 Personnel reduction------------------ _ 98 See. 505 l'nited Nations Headquarters construction--_ - 99 Sec. 506 Use of foreign currencies ----------------_--------_ 99 Title VI. Study Commission Relating to Foreign Policy -------- -_--- 100 Sec. 601 Findings and purpose --------------------- 100 Scc. 602 Commission on the Organization of the Government for the Conduct of Foreign Policy-- -------------------------- 101 Sec. 603 Duties of the Commission.- _ _ _ _ - 101 Sec. 604 Powers of the Commission --------------------------- 102 Sec. 605 Staff of the Commission-- -------------- __--- ----- 102 Sec. 606 Expenses of the Commission ------------ --------- 103 Title VII. Termination of hostilities in Indochina------------------ 103 Cost estimates ---------------------------------------- ------------ 104 Changes in existing law--------------------------------------- ------- 106 Additional views of Senator Spong----------------------------------- 121 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Calendar No. 724 92D CONGRESS SENATE I REPORT 2d Session No. 92-754 FOREIGN RELATIONS AUTHORIZATION ACT OF 1972 APRIL 20, 1972.-Ordered to be printed Mr. FULBRIGHT, from the Committee on Foreign Relations, submitted the following REPORT together with ADDITIONAL VIEWS [To accompany S. 3526] The Committee on Foreign Relations, having had under considera- tion the authorization for fiscal year 1973 for certain agencies, reports the bill (S. 3526), to provide authorizations for certain agencies conducting the foreign relations of the United States, and for other purposes, and recommends that it do pass. AUTHORIZATION OF APPROPRIATIONS The bill authorizes appropriations for the Department of State, the United States Information Agency, the Arms Control and Disarma- ment Agency, and the Peace Corps as shown in the following table: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1? : CIA-RDP74B00415R000600120003-6 FOREIGN ASSISTANCE AUTHORIZATIONS. INCLUDING STATE DEPARTMENT, USIA, ACDA, AND PEACE CORPS Authorization Appropriation, requested, Committee fiscal year 1972 fiscal year 1973 action TITLE I-DEPARTMENT OF STATE 1) Administration of foreign affairs___________________________ $275,401,000 $289, 453, 000 $289,453,000 (2) International organizations and conferences_________________ 159,782,000 188,263,000 188,263,000 (3) International commissions ----- ---------------------------- 14,050,000 18,226,000 18,226,000 (4) Educational exchange ------------------------------------ 46,130,000 59,200,000 59,200,000 (5) Migration and refugee assistance, general ------------------- 8,690,000 8,212,000 8,212,000 Refugees from U.S.S.R----------------------------------------------- ---------------- 85,000,000 Total, Department ofState ---------------------------- 504,053,000 563,354,000 648354,000 TITLE II---U.S. INFORMATION AGENCY (1) Salaries and expenses: (a) Radio activities_______________ 150,754,000 52,122,000 36,485,000 (b) Motion picture and television activities------------- 116 , 150, 000 15, 928, 000 11,150,000 (c) Press and publication activities____________________ 128,334,000 25, 592, 000 17,914,000 (d) Centers and related activities___________ ___ __ __ 133,529,000 29,623,000 29,623,000 (e) Program direction and general support, shared ad- - ministrative expenses, and research and assess- ment___ _ __------------------------- 162,582,000 58,448,000 40,914,000 Total, salaries and expenses ---------------- _ 179,000,000 181,713,000 136,086,000 (2) Salaries and expenses (foreign currency) ---- ---- _---- 13,000,000 12,500,000 12,500,000 (3) Special international exhibitions_____ 3,706,000 5,036,000 5,036,000 (4) Acquisition and construction of radio facilities____________ 1,100,000 1,000,000 1,000,000 Total, U.S. lnfornsstinn Agency------------------------- 196,806,000 200,249,000 154622,000 TITLE III-ARMS CONTROL AND DISARMAMENT AGENCY General_______ --------------- -------------------------- 9,000,000 222,000,000 31,995,000 Seismic research--------------------------------------------------------------------------- (9,995,000) TITLE IV-PEACE CORPS 77,000,000 General ----------------------------------------------------------- Excess foreign currencies___________________________________ 372,000,000 (4) 5,000,000 Total, State,USIA,ACDA, Peace Corps ------------------ 781,859,000 5 785, 603, 000 916,971,000 1 These figures include a total of $13,000,000 in foreign currency.'No figures are available in dollars only for these activ- ities in fiscal year 1972. 2 Authorization request is for 2 fiscal years: fiscal year 1973 and fiscal year 1974. 3 In addition, $2,600,000 in foreign aid funds (technical assistance) was transferred to ACTION by AID on Mar. 20,1972, for support of Peace Corps activities in fiscal year 1972. 4 The request is for a permanent authorization of such sums as may be necessary." The appropriation request for fiscal year 1973 is for $88,027,000. 3 Does not include the appropriation request for the Peace Corps. In addition to the authorization of appropriations, the bill contains It number of other provisions. 1. It transfers the principal responsibility for seismic research from the Department of Defense to the Arms Control and Disarma- ment Agency. 2. It creates a commission to make a long-range, in-depth study of the governmental mechanisms and programs for the making and con- duct of foreign policy. 3. It requires a 10% cutback within the next fiscal year of the num- ber of U.S. Government personnel of certain agencies who are sta- tioned abroad. 4. It prohibits distribution of U.S. Information Agency materials to the U.S. public. 5. It prohibits propaganda activity in behalf of foreign governments by U.S. agencies and requires attribution of all government informa- tion prepared for distribution abroad. 6. It establishes a grievance procedure for Foreign Service personnel. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 7. It requires that promotion within the Foreign Service be based on individual merit as determined by impartial selection boards. 8. It repeals the provision in the Strategic and Critical Materials Stock Piling Act, as amended, allowing the importation of chromium ore from Rhodesia in violation of a U.N. Security Council decision. 9. It establishes a Bureau of North American Affairs and a Bureau of South American Affairs in the Department of State. 10. It requires Senate approval of persons given the personal rank of ambassador or minister. 11. It encourages more candid testimony to Congressional commit- tees by witnesses from the foreign affairs agencies. 12. It prohibits the use of funds for the purpose of maintaining or supporting U.S. forces in hostilities in Indochina after December 31, 1972, subject to an agreement for the release of prisoners of war. BACKGROUND Until enactment of Public Law 92-226, the Department of State and the United States. Information Agency (USIA) operated under a permanent authorization of appropriation. Public Law 92-226, ap- proved February 7, 1972, calls for periodic authorizations of appropria- tions for the Department of State and USIA in order to .assist the Congress in carrying out its legislative review functions. It provided in Section 401(b) that- Notwithstanding any other provision of law, no appro- priation shall be made to the Department of State under any law for any fiscal year commencing on or after July 1, 1972, unless previously authorized by legislation hereafter enacted by the Congress. and in section 401(d) that- Notwithstanding any other provision of law, no appropria- tion shall be made to the Secretary of State, or to any Gov- ernment agency authorized to administer the provisions of this Act, under any law for any fiscal year commencing on or after July 1, 1972, unless previously authorized by legislation enacted by the Congress after the date of enactment of the Foreign Assistance Act of 1971. The rationale for requiring periodic authorization for both the State Department and USIA was stated in the Committee report (S. Rept. 92-432) in these words: A principal objective of the Legislative Reorganization Act of 1946, as amended, is to ensure more effective oversight and review by Congress of Executive Branch departments and agencies. Section 136 of the Act states that ". . each Standing Committee of the Senate shall review and study, on a continuing basis, the application, administration, and execution of those laws, or parts of laws, the subject matter of which is within the jurisdiction of that Committee." This section further requires that after January 1, 1973, each Standing Committee must report biennially to the Senate on its legislative review activities. The Committee on Foreign Relations has legislative juris- diction over the operations of both the Department of State Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/1111Q : CIA-RDP74B00415R000600120003-6 and the United States Information Agency. Thus, requiring annual authorization for both will enable the Committee to carry out its oversight functions more effectively. It would also make both State and the USIA more responsive to the Committee and Congress. Much improvement is needed in this respect. Pursuant to these provisions, the Senate on February 29, 1972, received from the Acting Secretary of State and the Director of USIA drafts of proposed legislation to authorize appropriations for the Department of State and for the USIA. Previously, on February 14, 1972, a message had been received from the President relating to the Arms Control and Disarmament Agency (ACDA) authorization and subsequently on March 21 a communication was received from the Director of ACTION relative to authorizations for the Peace Corps, VISTA, and other programs, which was referred jointly to the Foreign Relations and Labor and Public Welfare Committees, which have decided to deal separately with the international and domestic operations of ACTION. A series of hearings on these various authorization requests was scheduled during March and early April, as follows: ON THE STATE DEPARTMENT AUTHORIZATION Mar. 8, 1972---------- Secretary of State William P. Rogers and William B. Macomber, Jr., Deputy Under Secretary for Management. Mar. 9, 1972 (a.m.)---- Martin J. Hillenbrand, Assistant Secretary for European Affairs; William B. Macom- ber, Jr., Deputy Under Secretary for Management; and Winthrop G. Brown, Acting Assistant Secretary for East Asian and Pacific Affairs. Mar. 9, 1972 (p.m.)____ Charles A. Meyer, Assistant Secretary for Inter-American Affairs; Joseph J. Sisco, Assistant Secretary for Near Eastern and South Asian Affairs; David D. Newsom, Assistant Secretary for African Affairs; and William B. Macomber, Jr., Deputy Under Secretary for Management. Mar. 10, 1972 (a.m.)___ Samuel De Palma, Assistant Secretary for International Organization Affairs; John Richardson, Jr., Assistant Secretary for Educational and Cultural Affairs. Mar. 10, 1972 (p.m.) Willis C. Armstrong, Assistant Secretary for Economic Affairs; Ronald I. Spiers, Di- rector, Bureau of Politico-Military Af- fairs; and Ray S. Cline, Director, Bureau of Intelligence and Research; and William B. Macomber, Jr., Deputy Under Secre- tary for Management. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 ON THE ACDA AUTHORIZATION (S. 3200) Mar. 16, 1972 --------- Gerard C. Smith, Director; Philip J. Farley, Deputy Director; and Sanford Menter, Executive Director, all of Arms Control and Disarmament Agency; Joseph S. Clark, Coalition on National Priorities and Military Policy and Its Task-Force on Arms Control and Disarmament; and Adrian S. Fisher, Arms Control Association. Mar. 20, 1972--------- Frank Shakespeare, USIA Director. Mar. 21, 1972--------- Jay W. Gildner, Assistant Director, West Europe, and Kempton B. Jenkins, Assist- ant Director, Soviet Union and Eastern Europe. Mar. 21, 1972--------- Assistant Directors of USIA: Leslie A. Squires, South Asia; Kent Crane, East Asia/Pacific; Darrell C. Carter, Latin America; Michael Pistor, Near East and North Africa; Gordon Winkler, Africa; and Ben Posner, Administration. Mar. 23, 1972 --------- Assistant Directors of USIA : Kenneth R. Giddens, Voice of America; Bruce Hers- chensohn, Screen Services; an Henry Loomis, Deputy Director. Mar. 23, 1972_________ Assistant Directors of USIA : Harold F. Schneidman, Information Center Service; Lyle D. Compann, Press and Publica- tions; Ben Posner, Administration; and Deputy Director, Henry Loomis. Mar. 23, 1972--------- American Foreign Service Association mem- bers: William C. Harrop, F. Allen Harris, Thomas D.' Boyatt, and Mrs. Barbara J. Good; and Leo Albert of Association of American Publishers. Apr. 7, 1972---------- Joseph H. Blatchf ord, Director of ACTION; and Thomas Scanlon, a former Peace Corps Volunteer. In addition, the Committee on Foreign Relations has had referred to it the following measures related to these agencies: A request, February 11, 1971, from the State Department for legislation to lower the mandatory retirement age for career ministers (S. 999) ; Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 6 A request, February 29, 1972, from the State Department for legislation to strengthen and improve its organization (S. 3321) ; A request, March 6, 1972, from USIA for certain basic authority (point-of-order legislation) ; S. 2659, a bill to provide for a procedure to investigate and render decisions and recommendations with respect to grievances and appeals of employees of the Foreign Service; S. 3142, a bill to authorize the Secretary of State to furnish assistance for the resettlement of Soviet Jewish refugees in Israel; and S. 3308, a bill to provide that the Peace Corps may use foreign currencies during fiscal year 1972 for its expenses in foreign countries. The hearings on these measures have been printed in separate volumes as follows: Department of State Appropriations Authoriza- tion, FY 1973; .USIA Appropriations Authorization, FY 1973; Peace Corps Appropriation Authorizations, FY 1973; Arms Control and Disarmament Act Amendments; and U.S. Foreign Service Grievance and Appeals Procedures. The above measures, together with certain other related measures and amendments proposed by Senators were combined with the pro- posed authorization to afford the Committee and the Senate a more complete overview of operations of the foreign affairs agencies of the Executive Branch. The Committee proceeded to mark up the omnibus measure on April 10, 11, 12, 13, and 17, 1972 and on April 17 voted to report the bill favorably to the Senate by a vote of 15 to 0. Voting in the affirma- tive were Senators Fulbright, Sparkman, Mansfield, Church, Symington, Pell, McGee, Muskie, Spong, Aiken, Case, Cooper, Javits, Scott, and Percy. COMMITTEE COMMENTS The Committee undertook this new responsibility to authorizes periodic appropriations for the Department of State and the United States Information Agency in order to carry out more effectively its oversight responsibilities under the Legislative Reorganization Act and to make the Department and the Agency more responsive to Congress. The Committee believes that the first objective has been well served. As to the second, the results cannot yet be evaluated with precision. But the results thus far are not encouraging. For example, the Com- mittee was refused access to the U.S. Information Agency's "Country Program Memoranda" by the President, who invoked executive privilege as a justification for refusing to provide the documents. This is discussed in more detail in the section relating to the USIA. On the whole, however, the Committee believes that the exercise has been a beneficial one for both the Congress and the Executive Branch. The principal focus of the hearings on the authorization requests was in developing information on the nature, size and cost of the governmental machinery for the making and conduct of foreign policy. The process has been educational but disturbing. The results of the Committee's study this year make it apparent that the present foreign policy machinery does not serve the Executive Branch, Con- gress, or the public, which pays the bills. The Committee has con- csluded that, since the problem of creating a more effective system Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :f IA-RDP74BOO415ROO0600120003-6 for the making and conduct of foreign policy cuts across so many lines within both the Executive Branch and the Congress, the only effective approach is through a high-level study commission. The proposal for such a study commission was made to the Committee through the joint, bipartisan efforts of Senators Fulbright and Aiken. Senator Aiken had served on the original Hoover Commission and his co- sponsor of the proposal was particularly reassuring with respect to the need for such a study commission at this time. The Committee adopted the Fulbright-Aiken proposal unanimously. In the period since World War II the number of agencies involved in foreign policy matters has proliferated greatly. Of the 21,814 U.S. civilian employees serving overseas on December 31, 1971, only 3,409 are engaged in regular State Department activities. The activities abroad of a number of the agencies with deep involvement in foreign policy, such as the CIA and the Department of Defense, are carried on without effective Congressional oversight or control from the standpoint of their impact on foreign policy. The tables below illustrate the multiplicity of agencies with representation abroad. The personnel of each agency are, on paper, under the jurisdiction of the local U.S. Ambassador. In practice, however, this is but a thin fiction. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 8 Q m m D-0 I ~y v N N v+ 7 N = y ~ m d M C w tONV~ Lt)00 tO NN ~0)OO~ OQ7 tD O1N W ~fl N ONE.--, 00)M Ong QCtp tON T N TO O rtNOaO CD G~WMA OO O) ~ ~ tO ~OOOfO m o OOff c~i uio"u'Sa~ CV0-O U~ ~+Y fV tO~N d N C r~ 'O N d y C ti o +. am-C,- fl O ~m N .r N ti MtnO t0 C'tA t0 0) d ., ~(N)O~inNN ti .rNNN Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 d E E ,?3 C y my dy da cN ~ y dd 7 y E E = y C y E a E r r o is t a h E a ?? n y Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/161:0CIA-RDP74B00415R000600120003-6 United States Foreign United States Foreign American Battle Monuments GSA: Commission: Germany-------------- ----- 2 ---------- Belgium 4 37 Japan---------------- ----- 1 I France ----------------- _ . 22 173 Ryukyus----------- ----- 4 1 Italy--- ----------------- 4 39 Philippines ------------ _I ---------- Luxembourg ----------- __- 2 10 Vietnam -----_________._____ 2 1 Mexico- ------------------ 1 2 Netherlands_________________ 2 19 Total-------------------- 10 3 Philippines ------------ ----- 2 44 HUD: France --------------------- 1 ---------- Tunisia --------------------- 2 10 United Kingdom .------------- 2 14 Interior: AEC: Belgium - ------------ --- 5 ---------- Belgium ------------------ 3 -------- Germany-------------------- I ---------- Japan -------------------- 3 1 Total --------------------- 7 1 Brazil__------------------- I --------- Labor: Ryukyus__________________ 3 -_ ------- France--------------------- 3 ---------- National Science Foundation: Japan -- ------------------- 3 ---------- Japan -3 2 United Kingdom-------------- 2 ---------- ---------- Total - --------------- ----- 14 0 Environmental Protection Agency: Japan--------------------- 5 --------- TVA: Sweden------------------- I ----------- Switzerland ------------------ 3 ---------- Export-Import Bank: Total ----------------- . 4 --------- Austria -------------------- I VA: Philippines___________ ______ 22 275 Hong Kong ------------ ----- 1 In addition to the civilian agency personnel listed, as of Septem- ber 30, 1971, there were 3,210 people from the Defense Department abroad serving as military attaches or connected with military aid programs. The proliferation of activities abroad by other agencies is illustrated also by overseas spending. Of the $6,021,635,000 spent :abroad by U.S. Government agencies in FY 1971, only $153,577,000, or two percent, was attributable to the Department of State. This is shown on the table below: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1 d4 CIA-RDP74B00415R000600120003-6 Report on overseas expenditures, fiscal year 1971 [In thousands of dollars] World-Wide Summary U.S. dollars Agency for International Development--------------------------- 91, 938 Agriculture, Department of------------------------------------- 5, 218 American Battle Monuments Commission------------------------ 483 Atomic Energy Commission------------------------------------- 8,579 Civil Service Commission--------------------------------------- 22,654 Commerce, Department of__________________________________ _ _ _ 4, 666 Defense, Department of---------------------------------------- 4,811,600 Export-Import Bank of Washington----------------------------- 4, 899 General Services Administration--------------------------------- 197 Education and Welfare, Department of------------------- Health 273, 879 , Department of________________________________________ Interior 46, 809 , Department of----------------------------------------- Justice 3,860 , Department of__________________________________________ Labor 1,160 , Library of Congress -------------------------------------------- 145 National Aeronautics and Space Administration-------------------- 22,704 National Science Foundation------------------------------------ 2,561 Panama Canal------------------------------------------------ 53,385 Peace Corps-------------------------------------------------- 14,842 Post Office Department---------------------------------------- 29,378 Railroad Retirement Board------------------------------------- 13,097 State, Department of------------------------------------------ 153,577 Tennessee Valley Authority_____________ 11,848 Trasnportation, Department of---------------------------------- 13,503 Department of--------------------------------------- Treasury 2,013 , United States Information Agency------------------------------- 33,352 Veterans Administration----------------------------------------- 76,888 Subtotal ------------------------- -- -- 5,708,235 ------------- Expenditures of certain foreign currency which was purchased with dollars from Commercial sources other than the Department of Defense---------------------------------------------------- +313,400 Total-------------------------------------------------- 6,021,635 Source: Department of State. The Committee recommendation for creation of the Commission would have the Congress make the following statement concerning this state of affairs: The Congress finds that during the last quarter of a century there has been a proliferation of agencies of the United States Government with respect to the formulation, man- agement, and conduct of, and the collection of information relating to, the Nation's foreign policy. This proliferation has resulted in the diminution of both the President's and the Congress' respective powers with respect to the formulation and implementation of foreign policy, the less effective co- ordination and control of such policy, the distortion of tra- ditional policy-making processes, and the waste of the tax- payers' money through overlapping of functions and dupli- cation of effort. It is the purpose of this act to establish a study commission which will submit findings and recommen- dations to provide a more effective system for the formula- tion and implementation of the Nation's foreign policy. There has not only been a proliferation of agencies directly involved in foreign affairs, but there has been a corresponding growth in the amount of input in the policy-making process by non-foreign affairs Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 IgIA-RDP74B00415R000600120003-6 agencies. For example, the Treasury Department, through control of our balance of payments, import and international development bank policies, has a great impact on foreign policy generally. Through Public Law 450, the Agriculture Department has a significant voice in the foreign aid program. And on down the government organization chart. The following list of agencies with interests in international economic affairs and the number of personnel and the costs devoted by each to looking after its interests in the field of foreign economic policy re- veals the multiplicity of interests involved throughout the Executive Branch : AGENCIES WITH INTERESTS IN INTERNATIONAL ECONOMIC POLICY Full-time employees in permanent positions June 30, 1971 Obligations incurred in fiscal year ending June 30, 1971 Atomic Energy Commission, Division of International Activities___________________ Civil Aeronautics Board I t ti 84 $1 400 000 , n erna l onal Economic Affairs___________________ ------ Council on International E i 58 , , 1 115 000 c po icy conom Export-Import Bank_______ r 89 , , r 1,130,000 ____ - Federal Reserve Board: Division of International Finance__ --- - ---- _ O --- 358 2, 75 912,221,000 1 479 verseas Private Investment Corporation ------------------------ __ _ -`---- - Special Representati fo T d N 127 , ,000 1 488 000 ve r ra e egotiations __ ____ ___ _ _ _ ----- - - Dff Commi ------------- - i 30 , , 633 000 ss Depepartments of: on----------------------------------------------------------- 248 , 4,452,000 Agriculture: Public Law 480------- ----------------------------------------------------------- Foreign Agricultural Service_ 702,500,000 735 Export Marketing Service ____-_------------ 189 ------------------------ For i E 27,462,000 3 684 000 e gn conomic Development Service111 Consume & M k i , , 6 004 000 r ar et ng Service__________________..................... 7 A ricult l R h , , 196 000 g ura esearc Service________________________________________ 48 Othe----- --------- 12 , 1,303,000 Commerce: ___--___--_ 6 4,252,000 Bureau of International Commerce Offic of F i Di I --------- 1, 168 31,241 000 e ore gn rect nvestment ---------------- - TravelService _________________ 134 , 2,846,000 ___ _______________________________ ------- - -- Bureau ofDomestic Com 78 4,669,000 merce ______________________ Social and Economic Statistics Administration___________- ------ Interior: 300 350 5,500,000 5,053,000 Oil Import Administration-------------------------------------------- Offi f Oil d 19 403 000 ce o an Gas Labor I t i 20 , 676 000 : n ernat onal Labor Affairs_____________________________________ State (overseas anddomestic) 32 , 518,000 -------------------------------------------- [of which were foreign local employees] ________________________________ A f (1,176) gency or International Development_____________________________ T t i 13,477 1 995 803 000 ranspor at on: Office of International Programs________________________ T 31 . , , 440 000 reasury: Assistant Secretary for International Affairs___ ___ 332 , 8,035,000 I Data are for fiscal year ending June 30, 1972. Source: Department of State. The interests within the Executive Branch on foreign policy issues are so broad and diverse that the traditional processes for decision- making no longer work. Most significant foreign political, military, and economic policy issues are decided through the systems set up under the National Security Council and the International Economic Policy Council, whose personnel refuse to appear before Congressional com- mittees. A review of the legislative history of the National Security Act, which established the National Security Council, indicates that the Congress did not intend for the Council to become, as it has, the principal mechanism for the formation and direction of foreign policy. The National Security Council was established to deal with national security matters, essentially military issues, not to run the nation's foreign policy. The International Economic Policy Council does not have a statutory base but was created by administrative action. Both Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 1.CIA-RDP74B00415R000600120003-6 of these organizations have grown in power and influence at the ex- pense of Congress and the traditional policy-making processes. Although the power of the NSC and the IEPC are increasing in the making and implementation of foreign policy, there is still no single focal point within the Executive Branch for the making of decisions relating to the use of resources by the foreign affairs agencies. The Office of Management and Budget does not weigh the proposed pro- grams of the various agencies against each other. The Director of that office declined an invitation to testify as to the role of OMB in balancing priority demands of various agencies in the field of foreign policy. And there is no single place in the Executive Branch for the systematic establishment of priorities for use of our nation's resources for foreign policy purposes. And, in Congress, because of the number of committees involved in the authorization and appropriations processes, there is also no one focal point for Congressional oversight. In effect, the apparatus for foreign policy is like a bureaucratic no- man's land, with every agency pursuing, to a significant extent, its own objectives without effective control by either Congress or the Executive Branch. Only a high-level study commission, as recommended by the Committee, can cut across all of the lines involved within both Con- gress and the Executive Branch and arrive at sound recommenda- tions for creation of a more effective system. The Commission's mandate would be broad as can be seen from the following language: Sec. 3. (a) The Commission shall study and investigate the organization, methods of operation, and powers of all departments, agencies, independent establishments, and instrumentalities of the United States Government partici- pating in the formulation and implementation of United States foreign policy and shall make recommendations which the Commission considers appropriate to provide im- proved governmental processes and programs in the formu- lation and implementation of such policy, including, but not limited to, recommendations with respect to- (1) the reorganization of the departments, agencies, independent establishments, and instrumentalities of the executive branch participating in foreign policy matters; (2) more effective arrangements between the Execu- tive Branch and Congress, which will better enable each to carry out its Constitutional responsibilities; (3) improved procedures among departments, agen- cies, independent establishments, and instrumentalities of the United States Government to provide improved coordination and control with respect to the conduct of foreign policy; (4) the abolition of services, activities, and functions not necessary to the efficient conduct of foreign policy; and (5) other measures to promote economy, efficiency, and improved administration of foreign policy. It is the Committee's intention that the Commission shall have the authority to study both programs and machinery of all agencies 76-616 0-72-2 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1 GA CIA-RDP74B00415R000600120003-6 which have an impact on the making and conduct of foreign policy, including those not traditionally classified as foreign affairs agencies. The Committee expects the Commission to devote special attention to the problems of arrangements between Congress and the Executive Branch on foreign policy matters, including Congressional access to information, the availability of Executive Branch personnel to testify before committees, the impact of the security classification system ou Congress, and other such problems. The Committee expects the Commission's study to be unhurried and in depth. It will be essential for the Commission to have adequate staff to conduct thorough in- vestigations and analyses of the many complex issues involved. The Committee expects the Commission to seek out and find for the project the best talent the nation has to offer. The Committee believes that this Commission, if it carries out the broad mandate provided, will lead to creation of a more effective system for the management of the nation's foreign affairs, which will redound to the ultimate benefit of Congress, the Executive Branch, and the American people. SECTION-BY-SECTION ANALYSIS 1 See. 101 (a) authorizes the appropriation of funds for the operation of the Department of State for fiscal year 1973. The total of the amounts provided in subsections (1) through (5) and Section 101 (b) for various activities is $648,354,000 broken down as follows: Section 101(a): (1) Administration of Foreign Affairs------------------------- $299,453,000 (2) International Organizations and Conferences---------------- 188, 263, 000 (3) International Commissions________________________________ 18, 226, 000 (4) Educational Exchangt --------------------------------------59, 200, 000 (5) Migration and Refugee Assistance, general----------------- 8,212,000 Section 101(b) Refugees from the USSR____________________ 85,000,000 ---- Total, Department of State_____________________________ 648, 354, 000 Sec. 101 (a) (1) Administration q f Foreign Affairs ($28,9,453,000). For Administration of Foreign Affairs, the State Department is requesting $289,453,000 and the Committee approved the full amount. This is the largest single item in the Department's budget because it. covers almost all the salaries of Department employees at home or abroad. It also includes other expenses, such as conduct of diplomatic and consular relations with foreign countries, conduct of diplomatic relations with international organizations, acquisition, operations and maintenance of facilities including office space and living quarters for American staff abroad, funds of relief and repatriation loans and for other emergencies of the Department, and payments to the Foreign Service Retirement and Disability Fund. The table below gives a breakdown of the major categories of expenses, together with a comparison with FY 1972. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : pJA-RDP74B00415R000600120003-6 Appropriations 1972 1973 Increase or decrease I. Salaries and expenses_________________________________________ $244,750,000 $250,820,000 +$6 070 000 II. Representation allowances______________________________________ 93000 9 ' 993,000 , , ____________ Ill. Acquisition, operation, and maintenance of buildings abroad-------- 18, 75 0, 000 27,127, 000 +8 377 000 IV. Acquisition, operation, and maintenance of buildings abroad (special foreign currency program)_____________________ ______________ V 6,850,000 6,455,000 , , , -395,000 VI . Emergencies in the diplomatic and consular service_______________ 2,100,000 , 2,100 000 -------------- . Payment to Foreign Service retirement and disability fund ---------- 1 958,000 1,958,000 ______________ ------------------- Total______________________________________________________ 275,401,000 289,453,000 +14,052,000 I Information furnished by the Executive Branch is shown by indentation. Salaries and Expenses ($250,820,000) The salaries and expenses category is the principal account for State Department operations. It covers most of the day-to-day costs of operating the Department, whose largest single expense is salaries and support of its employees in the U.S. and overseas. As the ten-year history below shows, there has been a reduction in State Department employees since FY 1969. For FY 1973 a small increase of 126 persons is anticipated bringing to 13,362 the number of employees during FY 1973. 10-YEAR HISTORY Positions -------------- -- Overseas -------------- Domestic Americans Locals Total Amount 1964 4.545 4,594 5 673 14 812 $153 000 000 1965 4,397 4,628 , 5 668 , 14 693 , , 171 145 000 1966 4, 500 4, 567 , 5, 772 , 4 839 , , 179 660 000 1967 4,559 4,577 5 8C7 , 14 943 , , 190 400 000 1968 4,671 4,395 , 5 530 , 14 596 , , 195 699 000 1969 4, 679 4, 120 , 5, 242 , 14 041 , , 207 095 600 1970 4,682 3,854 5,159 , 13 695 , , 224 550 251 1971 4,606 3, 805 5, 030 , 13 441 , , 233 687 000 1972--------- 4,386 3,765 5,085 , 13 236 , , 244 750 000 1973 (estimate)_______________________ 4,477 3,782 5,103 , 13,362 , , 250,820,000 The distributions of persons and funds by major offices and bureaus is illustrated in the following State Department table: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1 q6 CIA-RDP74B00415R000600120003-6 1971 actual 1972 estimate 1973 estimate ---- --------- ----------- Num- Num- Num- ber Amount ber Amount ber Amount Operating expenses: Office of the Secretary_________________ 410 $1,606,155 424 $1,497,100 438 $1,538,600 Office of Protocol______________________ 46 59,400 46 60,800 46 60,800 International Scientific and Technological Affairs_____________________________ 44 257,931 44 248,100 59 317, 100 CongressionalRotations__ _____ 25 45,425 25 45,500 25 45,500 Legal Adviser_________________________ 103 251,900 103 229,400 103 229,400 Economic Affairs______________________ 216 310,200 220 314,700 220 319,700 Intelligence and Research -------------- 324 704, 841 324 905, 100 324 1, 105, 100 Africar.Affairs------------------------ 1,307 10,093,200 1,312 10,492,900 1,312 10,930,500 Near Eastern and South African Affairs-_ 1, 220 5,919,264 1,237 6,495,400 1,255 7,098,500 East Asian and Pacific Affairs___________ 1, 609 7,477,617 1.630 8,058,200 1, 637 9,134,600 Inter-American Affairs_________________ 1, 716 10, 434, 400 1,725 10, 972, 500 1, 725 11,693,10o European Affairs______________________ 2,955 16,856,300 2,980 17,836,200 2,989 19,825,400 International Organization Affairs------- 174 441,404 175 345,500 185 380,200 Public Affairs_________________________ 114 812,900 116 796,400 119 908,600 Management: Security and Consular Affairs------- 671 4,505,791 705 5,484,900 734 6,704,400 Foreign Service Institute___________ 308 1,481,183 307 1,748,000 307 1,821,400 Deputy Under Secretary for Manage- ment-------------------------- 420 1,418,345 423 1,572,200 423 2,263,000 Administration: Office of Security__________________ 221 4,036,770 221, 3,979,000 221 4,028,700 Office of Communications__________ 406 9,269,099 406 9,907,600 406 9,904,900 Assistant Secretary for Administra- tion--------------------------- 575 5,996,942 570 6,067,800 570 6,360,000 Total, operating expenses---------- 12,864 81,979,067 12,993 87,057,300 13,098 94,669,600 Adjustment for lapse on continuing positions: Americans--------------------------- 461 -------------- 443 -------------- 443 -------------- Locals------------------------------- 137 -------------- 145 -------------- 145 -------------- Worldwide accounts: - ---- American salaries 141 684 954 -------- 148 348 700 -------- 500 149 185 ----------------------- - menttravel_________________________ Postassign , , 111,018,200 -------- , , 9,707,700 9, -------- , , 10,056900 ---- - ----- --- - - -- -- - - - Total obligations____________________ 13,462 233,951,951 13,581 245,113,700 13,686 253, 912, 000 Deduct Comparative Transfer fromMECEA___ -21 -496,213 -21 -466,000______________________ Presidential reduction-Directive, Aug. 15, 1971---------------------------------------------------- ____ -324 -1,557,000 -324 -3,092,000 Unobligated balance_______________________________ 215,616 -------- 1,557,000 ---------------------- Appropriation transfer to GSA---- .----------------- 15,646 -------- 102,300 ---------------------- Appropriation or estimate____________ 13,441 233,687,000 13,236 244,750,000 13,362 250,820,000 Of the $250,820,000 for salaries and expenses for FY 1973, $146,266,500 (or approximately %) is expected to go for salaries and $104,533,500 (or approximately %) for office operating expenses, as the following table shows: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 17 DEPARTMENT OF STATE SALARIES AND EXPENSES SUMMARY OF INCREASES AND DECREASES, 1973 Appropriation, 1972------------- --------------------------------------------------------------- $244,750,000 Estimate, 1973--------------------------------------------------------------------------------- 250,820,000 Increase------------------------------------------------------------------------------- 6,070,000 Amount Positions ---------------------- Post Ameri- American assignment Operating cans Locals Total salaries travel expenses Tote Appropriation, 1972 -------------- 8,469 5,091 13,560 $148,003,700 $9,707,700 $87,038,600 $244,750,000 President's reduction-directive, Aug. 15, 1971----------------- -318 -6 -324 -2,919,000 ------------ -173,000 -3,092,000 Transfer to "Operating expenses, Public Buildings Service," General Services Administration- ------------------------------------------------ -102,300 -102,300 Comparative transfer from " Mutual educational and cultural exchange activities," 1972 ------------------------- +21 -------- +21 +345,000 ------------ +121,000 +466,000 Net program increase, 1973------- +87 +18 +105 +836,800 +349, 200 +7, 612, 300 +8,798,300 --------- ------------------- ------- Estimate,1973------------ 8,259 5,103 13,362 146,266,500 10,056,900 94,496,600 250,820,000 Increase in appropriation------_ +87 +18 +105 -1,737,200 +349, 200 +7, 458, 000 +6,070,000 Note: Tha above schedule reflects the estimated amounts to be reduced as a result of the President's directive to reduce employment in fiscal year 1972. The separate office requests which follow do not include these reductions. The Department is applying the President's reduction on a selective basis and through attrition. Representation allowance ($993,000) As the following ten-year history shows, this item has remained substantially unchanged since FY 1965. 10-YEAR HISTORY Year : Amount 1964------------------------------------------------------ $973,000 1965------------------------------------------------------ 993,000 1966------------------------------------------------------ 993,000 1967-------------------------------------------------- --- 993,000 1968------------------------------------------------------ 993,000 1969---------- ------------------------------------------- 993,000 1970------------------------------------------------------ 992,444 1971------------------------------------------------------ 993,000 1972------------------------------------------------------ 993,000 1973 (estimate) -------------------------------------------- 993,000 BUDGET SUMMARY Appropriation, 1972--------------------------------------------- $993,000 Estimate, 1973------------------------------------------------- 993,000 Increase---------------------------------------------------------- These funds are used for advancing U.S. interests through formal and informal contacts with foreign officials and nationals. Such con- tacts are invaluable to our diplomatic establishment overseas as sources of factual data and opinions on which to base intelligent appraisals of other countries policies and as a way to promote under- standing of U.S. policies. The table below gives a breakdown of the number of persons and areas which share this amount and illustrates how stringent it is by the fact that the overall average allowance per officer for FY 1973 will be $494. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1618CIA-RDP74B00415R000600120003-6 Chiefs of mission and charges at diplomatic posts Ranking subordi- pates Other officers at missions Officers at consular posts Total Number of positions: African affairs ------------------------------ 40 33 164 50 287 Near Eastern and South Asian affairs---------- 22 18 216 80 336 East Asian and Pacific affairs_________________ 14 15 241 87 357 Inter-American affairs_ __________ 23 23 327 120 493 European affairs____________________________ 26 26 364 120 536 Total ------------------------------------ 125 115 1,312 457 2,009 Average allowance: African affairs_____ _ $2,005 $706 $240 $422 1$571 Near Eastern and South Asian affairs__________ 3,036 1,178 226 377 1 497 East Asian and Pacific affairs----------------- 4, 307 1,313 187 286 1 420 Inter-American affairs_ ___________ 4,809 1,087 162 203 1432 European affairs____________________________ 4,573 1,577 250 398 1558 Total amount: African affairs______ ------------------------------ 80,200 23,300 39,400 21,100 164,000 Near Eastern and South Asian affairs__________ 66,800 21,200 48,800 30,200 167,000 East Asian and Pacific affairs_ ----------------- 60, 300 19, 700 45,100 24, 900 150, 000 Inter-American affairs_ _______ 110,600 25,000 53,100 24,300 213,000 European affairs____________________________ 118,900 41,000 91,300 47,800 299,000 Total------------------------------------ 436,800 130,200 277,700 148,300 993,000 Overall average --------------------------- 3,494 1,132 212 325 494 Chiefs of mission and charg?s at diplomatic missions---- $436,800 $436, 800 -------------- Ranking subordinates __________________________________ 130,200 130,200 -------------- Other officers at missions_________________________________________ 277,700 277,700 -------------- Officers at consular posts__________________________________________ 148,300 148,300 -------------- Total ------------------------------------------------------ 993,000 993,000 -------------- Indeed, the Committee is concerned that this amount may be in- sufficient, especially taking into account the inflationary spiral of the last ten years. The Committee is undertaking a study of what other nations spend on similar functions to be ready to propose a readjust- ment next year, if this should be desirable. Acquisition and Maintenance of Buildings Abroad ($27,127,000) Pursuant to the Foreign Service Buildings Act of 1926, as amended, the Department of State has had responsibility for the acquisition, construction, operation and maintenance of office space and, where necessary, living quarters, for American personnel overseas, including that of other agencies. Under this program, the United States has obtained holdings of over 1,600 buildings, located in 233 principal cities, and estimated to be worth close to $600,000,000. The latest ten-year history of this program, together with the budget summary and highlights of budget changes, follows: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : Ye-RDP74B00415R000600120O03-6 Positions Overseas Domestic Americans Locals Total Amount 1964________________________________ 1965 73 20 40 133 $18 125 000 _________________________________ 1966 71 16 27 , , 114 18 125 000 ________________________________ 1967 71 16 27 , , 114 19 125 000 _________________________________ 1968 71 16 23 , , 110 15,500 000 --------------------------------- 1969 71 16 23 , 110 13 350 000 _________________________________ 1970 71 16 20 , , 107 12;500 000 1971 62 13 19 , 94 13 335 110 1972 62 13 19 , , 94 14 300 000 _______________________________ 1973 ti -62 10 17 , , 89 18 750 000 (es mated)______________________ 62 10 17 , , 89 27,127,000 BUDGET SUMMARY Appropriation, 1972----------------------------------------- $18,750 000 ' Estimate, 1973---------------------------------------------- , 27, 127, 000 Increase---------------------------------------------- 8,377, 000 Program by activities Increase or 1972 1973 decrease Acquisition, development, and construction: Africa------------------------------------------------------ $324,000 A i $1,100,000 +$776 000 mer can Republics----------------------------8,99 9,000 E A i 160,000 , -8 839 000 ast s a and PacificAffairs--------------- _-------------------- 99,000 E 8,500,000 , , }8 401 000 urope--------------------------------------------- 419,000 N E t d 1,175,000 , , +756 000 ear as an South Asia -------------- -------------- 1,100,000 3,337,000 , +2,237,000 Total 10, 941, 000 14, 272,000 +3,331,000 Operations: Minor improvements------------636,000 - 636,000 Leasehold payments____________________ __--_---_- - __--__ 643,000 ti O f ld 564,000 -79 000 pera ano bui ings________________________________________ 6,328,000 M i t d 6,680,000 , +352 000 a n enance an repair of buildings----------------------------- 3,660,000 Furnishings and equipment: 4,000,000 , +340,000 Newly acquired or constructed projects_____________________ 350,000 Additio al l d 350,000 ----------- , rep n cements,an repairs______________1,272,000 P t 1,500,000 +228 000 rojec supervision ________________________-____------------- 542,000 Ad i i t i 554,000 , +12 000 m n s rat on ___________________________________ 1,539,000 1,561,000 , +22,000 Total ------------------------_--------------------------- 14,970,000 15,845,000 +875,000 Total obligations --------------------------------------------- 25,911,000 Deduct: Unebligatedbalance brought forward ---------------------------- -2,766,000 A ti 30, 117,000 -30 000 +4,206,000 +2 736 000 n cipated proceeds of sale of real property and miscellaneous receipts---------------------------------------------------- -4,425,000 Add:U bli t db , -2,960,000 , , +1 465 000 no ga e alance carried forward ---------------------------- +30,000 -------------- , , -30,000 Appropriation or estimate________________________________ ___ - - - - - - - - - - - - - - - - - - - - 18,750,000 27, 127,000 +8,377,000 The increases and decreases by activity presented by the administra- tion are as follows: ACQUISITION, DEVELOPMENT AND CONSTRUCTION +3,331,000 This program is funded by a combination of appropriated funds, unobligated funds carried over from the preceding fiscal year, and funds derived from the sale of excess proper- ties abroad. Africa +$776,000.-The net increase will provide for initiating construction of an office building in Dakar, Senegal at $1,100,000 with funds derived from the sale of excess properties abroad during fiscal year 1973. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1620CIA-RDP74B00415R000600120003-6 American Republics -$8,889,000.-No new projects are planned for fiscal year 1973. East Asia and Pacific Affairs +$8,401,000.-The net in- crease requested is to provide $8,500,000 in appropriated funds for initiating construction of a multi-storied office building in Tokyo which would house all Embassy office functions except the USIS Cultural Center and the Com- merce Trade Center. Upon completion of construction, the old office building annex will be sold. Europe +$756,000.-This net increase includes $700,000 to provide dollar support costs for construction of an office building in Belgrade, Yugoslavia (the balance of construe tion costs, $2,950,000 is included in the fiscal year 1973 Special Currency Program requests). Near East and South Asia +$2,287,000.-This request includes $2,082,000 in appropriated funds to begin construc- tion of a $3,200,000 office building in Beirut, Lebanon. The balance of the total cost, $1,118,000 will be obtained from the sale of excess properties abroad during fiscal year 1973. OPERATIONS +$875,000 The $15,845,000 requested for operation and maintenance of buildings is an increase of $875,000 over the amount available in fiscal year 1972. This increase is to provide for mandatory salary and related costs and overseas wage and price increases ($684,000), additional requirements for fur- nishing and furniture ($150,000), and maintenance and repair of buildings ($120,000). A decrease in annual recurring leasehold payments (-$79,000) will partially offset the increase in fiscal year 1973. Acquisition, Operation and Maintenance of Buildings Abroad (Special .foreign currency program) ($6,455,000) In addition to the amounts requested above, the State Department is authorized to utilize foreign currency proceeds from P.L. 480 sales subject to appropriations. For this purpose, the Department is requesting an authorization of $6,455,000 for the purchase of excess foreign currency. The details concerning the past and proposed oper- ations of this program were furnished by the Executive branch: 10-YEAR HISTORY Year: Amount 1964---------------------------------------------------- $2,750,000 1965---------------------------------------------------- 5,000,000 1966---------------------------------------------------- 6,500,000 1967---------------------------------------------------- 6,250,000 1968--------------------------------------- ----- 5,025,000 1969--------------------------------------------------- 3,050,000 1970------------------------------------------------ ---- 2,186,000 1971 ------------------------------------------------------ 6,500,000 1972.-------------------------------------------- 6,850,000 1973 (estimate)------------------------------------------- 6,455,000 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 ?-CIA-RDP74B00415R000600120003-6 BUDGET SUMMARY Appropriation, 1972------ ___________________________----------- $6,850,000 Estimate, 1973----------------------------------------------- 6,455, 000 Decrease------------------------------------------------ 395,000 Program by activities Increase or 1972 1973 decrease Payment to acquisition, operation, and maintenance of buildings abroad (total obligations) ---------------------------------------------- D d t $8,754,000 $6,455,000 -$2,299,000 e uc unobligated balance brought forward------------------------- -1,904,000 -------------- -1,904,000 --------------------- Appropriation or estimate------------------------------------ 6,850,000 6,455,000 -395,000 HIGHLIGHTS OF BUDGET CHANGES ACQUISITION, DEVELOPMENT, AND CONSTRUCTION-$2,299,000 Africa -$1,140,000.-A net amount of $295,000 requested for fiscal year 1973 will provide for acquisition of two staff houses and four staff apartments in Tunis, Tunisia, and a residence for the Public Affairs Officer. Europe +$3,130,000.-The funds requested for fiscal year 1973 will provide $2,950,000 for the construction of an office building in Belgrade, Yugoslavia and for the acquisition of two senior officer residences, an Army attache residence and an Air Force attache residence in Belgrade. Near East and South Asia -$4,289,000.-No new projects are programed for fiscal year 1973. Operations.-The amount of $2,900,000 requested for fiscal year 1973 is the same as the amount available in fiscal year 1972. The increases required in fiscal year 1973 for over- seas wage and price ($125,000), and additional requirements for furnishings and equipment for new properties ($30,000) will be funded by a reduction in requirements for minor improvements (-$155,000). Emergencies in the Diplomatic and Consular Service ($2,100,000) The Department of State furnished the following data on this item: This appropriation provides funds for relief and repatria- tion loans to United States citizens abroad and for other emergencies of the Department. Repayments of loans are deposited in miscellaneous receipts of the Treasury. 1964---------------------------------------------------- Amount $1,900,000 1965---------------------------------------------------- 2,000,000 1966---------------------------------------------------- 2,050,000 1967---------------------------------------------------- 3,600,000 1968---------------------------------------------------- 2,100 000 1969---------------------------------------------------- , 1,600 000 1970- , 600 000 1 1971- 1 , , 2, 100 000 972 , 2, 100 000 1973 (estimate)------------------------------------------- , 2, 100,000 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1622CIA-RDP74B00415R000600120003-6 BUDGET SUMMARY Appropriation, 1972___________________________________________ $2,100,000 Estimate, 1973_______________________________________________ 2,100,000 Increase__ _ Program by activities 1972 1973 Increase or decrease Regular annual requirements --------------------------------------- $1, 575, 000 $1,575,000 ______-_.__- Reliefand repatriation --------------------------------------------- 525,000 525,000 _._________- Appropriation or estimate ------------------------------------ 2, 100,000 2,100,000 -------------- Payments to the Foreign Service Retirement and Disability Fund ($1,958,000) In the words of the Department of State: This appropriation request results from the amendment to the Foreign Service Act, Section 865 (Public Law 9.1-201) which provides that any new statute which liberalizes benefits or extends benefits to new groups of employees, or increases salaries on which benefits are computed, is deemed to authorize appropriations to the Fund. The appropriations made annually to the fund for any statue must equal one- thirtieth of the unfunded liability created by the statute. The estimate for fiscal year 1973 includes $1,000,000 for the fourth annual payment to the Fund resulting from enact- ment of the Federal Employees Salary Act of 1970 (Public Law 91-231) and $958,000 for the third annual payment to the Fund resulting from enactment of the Federal Pay Comparability Act of 1970 (Public Law 91-656). The following tables give further detail: HISTORY OF APPROPRIATION Year: Amount 1971---------------------------------------------------- $2,958,000 1972.---------------------------------------------------- 1,958,000 1973 (estimate)___________________________________________ 1,95S, 000 BUDGET SUMMARY Appropriation, 1972------------------------------------------- $1,958,000 Estimate, 1973----------------------------------------------- 1,958,000 Increase---------------------------------------------------------- Increase or Program by activities 1972 1973 decrease General Comments of the Committee on the State Department Authorization Foreign policy research.-Members of the Committee have been concerened about the waste, duplication and the seeming lack of effective inter-agency coordination and control in the field of foreign :affairs and foreign areas research. Although an inter-agency co- ordination committee has been established and the Department of State has assured the Committee that it "has a veto power over foreign area contract research projects in the social and behavioral Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/162~IA-RDP74B00415R000600120003-6 sciences of other agencies", the list of current projects which is printed in the hearings, makes it clear that there is still much money being wasted in this field. If the Department of State does have a veto power over other agency research proposals, as it says it has, the power should be exercised more often. For example, the Department of the Army spends each year $1,000,000 on the printing of guides to countries around the world. Last year it produced nineteen hard-backed, multi-hundred page books on countries such as Ceylon, the Congo, Iraq, Cuba, Iran and Yugoslavia. It is highly unlikely that the Department of State could get Congress to appropriate $1,000,000 a year for such a purpose. If such a project can be justified for the spending of public funds, it should be under the jurisdiction of the Department which has the statutory responsibility for conduct of foreign affairs. The Committee expects the Department in the future, to use its authority more effectively over foreign research proposals by other agencies to prevent initiation of projects of dubious value and to insure closer relevance of foreign research to the proposing agency's area of responsibility. Proper identification of agency produced material.-Members of the Committee have noted that much of the material disseminated in Congress by the foreign affairs agencies concerning legislation does not identify the source by agency. It appears that the issuing agency thus seeks to avoid responsibility for what appears in such papers. This practice should be stopped. In the future the Committee expects that any material disseminated in Congress by the foreign affairs agencies, or by other agencies which deal with subjects within the jurisdiction of the Committee on Foreign Relations should bear clear markings showing the originating agency. The Committee also expects that, as a matter of courtesy, it will in the future, be furnished with copies of Executive Branch position papers on legisla- tion within the Committee's jurisdiction which are produced for general distribution within Congress. Dissemination of information to the Public.-Another matter which is of concern to some, members of the Committee is the failure of State Department publications on controversial issues involving Legislative- Executive branch relations on foreign policy matters to present more than the Executive Branch point of view. For example, the Bureau of Public Affairs of the Department of State published an item on the subject of the War Powers of the President and Congress. The docu- ment presented the view of the Executive Branch on S. 2956, but it ignored completely the position and arguments set forth in the Com- mittee report on the bill. As a simple matter of fairness and objectivity, this document published by the Department of State for domestic use, should have at least mentioned the availability of Congressional documents on the subject. As it is, Congress appropriates funds to the Executive Branch which the Executive Branch then uses to propagandize the American people in support of the positions of the Executive Branch. It is rather as if a Committee were to hold hearings and then publish only the views in support of the Committee decisions. In future publica- tions on controversial issues between Congress and the Executive Branch on foreign policy the Department should give a more balanced presentation which will, at least to some extent, reflect Congressional viewpoints. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 IA-RDP741300415R000600120003-6 Advisory Committees.-The Department of State has 26 public advisory committees for which the Department will spend an esti- mated $587,661 in FY 1973. These range from the 100-member Special Advisory Committee on Public Opinion to the 7-member Advisory Committee on "Documents on German Foreign Policy." Few have been authorized by statute. The Committee urges the Department to reappraise the need for the non-statutory committees with a view to eliminating those which are not fully justified by their past contribu- tions to the more effective management and conduct of our foreign policy. The Committee will review the results in connection with its work on the FY 1973 authorization request. Sec. 101 (a) (2) International Organizations and Conferences ($188,- 263,000) For international organizations and conferences the committee approved the full amount requested of $188,263,000 for FY 1972. These funds will be used to pay the U.S. assessed share of participat- tion in the United Nations and its specialized and related agencies, in the Organization of American States and other Inter-American organizations, in various regional organizations such as SEATO, and others, and in a miscellany of smaller international organizations. This item also covers the U.S. expenses of international conferences and of U.S. missions to various international organizations, such as the United Nations, at New York International Atomic Energy Agency, at Vienna, and similar missions where they exist. The major breakdown of these items is as follows: Contributions to international organizations- - - - - - - - - - - - - - - - - - - $180, 900, 000 Missions to international organizations------------------------ 4,863,000 International conferences and contingencies-------------------- 2500000 Total, International Organizations and Conferences------- 188, 263, 000 International organizations ($180,900,000) The following State Department table shows the assessed U.S. contributions to international organizations, together with the FY 1972 data and an explanation of the increases. Year : 1964---------------------------------------------- - -- 1965-------------------------------------------------- 1966-------------------------------------------------- 1967-------------------------------------------------- 1968-------------------------------------------------- 1969-------------------------------------------------- 1970-------------------------------------------------- 1971-------------------------------------------------- 1972---------------- 1973 (estimate)-------_~___ ---------------------------- Amount $99,679,000 87, 548, 000 95, 578, 000 104, 126, 000 109, 341, 400 118, 453, 000 131, 417, 400 141, 319, 000 152, 864, 000 180, 900, 000 BUDGET SUMMARY Appropriation, 1972----------------------------------------- $152,864,000 Estimate, 1973--------------------------------------------- 180,900,000 Increase----------------------------------------------- 28,036,000 Less amounts not appropriated in fiscal year 1972 for the inter- national labor organization-------------------------------- -7,816,337 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/165 IA-RDP74B00415R000600120003-6 Program by activities 1972 Increase or 1973 decrease United Nations and specialized agencies: United Nations_ _____________________ - - _ - - - - -- - - - - - - - - - - - - - _ $52,437,699 $60,119,286 +$7,681,587 Uni ted Nations Educational, Scientific, and Cultural Organization---_ 12,018,301 12,018,301 ______________ International Civil Aviation Organization __ 4, 235,983 4, 495,063 +259,080 World Health Organization -------------------------------------- 23,741,250 26,341,960 +2,600,710 Food and Agriculture Organization --------------------- .--------- 10,083,458 12,150,832 +2,067,374 International Labor Organization_______________________________ 7,816,337 8,709,250 +892,913 Intern at ionalTelecommunication Union -------------------------- 810,380 966,797 +156,417 World Meteorological Organization -------------------------------- 774,477 943,489 +169,012 Intergovernmental Maritime Consultative Organization____________ 115,463 151,538 +36,075 International Atomic Energy Agency ----------------------------- 3,977,148 4,882,916 +905,768 -------------- Subtotal-- _______________________________________ 116,010,496 130,779,432 +14,768,936 Inter-American organizations: Inter-American Indian Institute_________________________________ 61,561 61,561 Inter-American Institute of Agricultural Sciences ------------------ 2,960,006 3,196,807 +236,801 Pan American Institute of Geography and History_________________ 151,300 151,300 -------------- Pan American Railway Congress Association ------------- .--------- 15,000 15,000 -------------- Pan American Health Organization______________________________ 10,436,513 11,313,412 +876,899 Organization of American States -________________ 18,780,444 20,767,512 1,987,068 --------------- - Subtotal____ --------------------------------------------------- 32,404,824 35,505,592 -1-3,100,768 Regional organizations: South Pacific Commission____________________________________ 215,309 247,605 +32,296 North Atlantic Treaty Organization______________________________ 5,315,087 6,414,955 +1,099,868 North Atlantic Assembly --------------------------------------- 72,513 79,946 +7,433 Southeast Asia Treaty Organization ------------------- .----------- 396,334 452,750 +56,416 Colombo Plan Council for Technical Cooperation__________________ 9,386 9,753 +367 Organization for Economic Cooperation and Development ----------- 5, 352,123 6,401,758 +1,049,635 International Control Commission for Laos __________________________________________________-_____________ Subtotal----- ______________________________ 11,360,752 13,606,767 +2,246,015 Other international organizations: InterparliamentaryUnion ------------- _----------------------- 29,350 32,720 +3,370 nternational Bureau of the Permanent Court of Arbitration-------- 1,491 1, 550 +59 International Bureau for the Protection of Industrial Property-----_ 15, 000 15,000 -------------- International Bureau for the Publication of Customs Tariffs_________ 18, 614 19, 914 +1,300 International Bureau of Weights and Measures------- __ 86,460 98,670 +12,210 International Council of Scientific Unions and Associated Unions------------------------------------------------ I nternational Hydrographic Bureau _____________________ 17,642 . 17,642 -------------- International Wheat Council ------------------------------------ 38,475 41,980 International Coffee Organization -------____ 253,600 290,000 +36, 400 International Institute for the Unification of Private International Law------------------------------------------------------ 8,982 11,860 +2, 878 Hague Conference on Private International Law___________________ 11,451 12,456 +1,005 Maintenance of Certain Lights in the Red Sea_____________________ 4,471 3,910 -561 Bureau of International Exhibitions______________________________ 7, 120 7,625 +505 Customs Cooperation Council----------------------------------- 341,772 385,045 +43,273 International Center for the Study of the Preservation and Restora- tion of Cultural Property_____________________________________ 69,837 69,837 -------------- Subtotal ------------------------------------------------ 904,265 1,008,209 +103,944 Total ---------------------------------------------------- 160,680,337 180, 900, 000 +20, 219, 663 Less amount not appropriated for the International Labor Organi- +7,816,337 The requested $180,900,000 for international organizations and conferences in this bill represents a net increase of $20,219,663 over the FY 1972 appropriation. The State Department furnished the following explanation of this increase: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 26 UNITED NATIONS AND SPECIALIZED AGENCIES +$14,768,836 A total of $130.8 million will be required in fiscal year 1973 for U.S. contributions to the assessed budgets of the United Nations, eight specialized agencies and the Inter- national Atomic Energy Agency. This is an increase of $14.8 million over fiscal year 1972. The estimate of $60.1 million for contribution to the United Nations is net of a $3.9 million repayment on the UN bonds purchased by the United States. The assessed budgets of the United Nations and Spe- cialized Agencies total $454.8 million for fiscal year 1973, an increase of $50.9 million over fiscal year 1972. The most significant increase in these budgets is $24.5 million for the United Nations. A substantial part of the budgeted increases are the result of wage and price rises, including the profes- sional salary increase for the United Nations system, and some currency revaluation. The remainder is largely for program expansion, particularly in economic and social activities to meet the needs of developing countries, as well as activities of direct interest to the United States. Other significant increases in the budgets of the specialized agencies include the World Health Organization ($9.4 million), the Food and Agriculture Organization ($6.6 million for the biennium) and the International Labor Organization ($3.5 million also for the biennium). INTER-AMERICAN ORGANIZATIONS +$3,100,768 A total of $35.5 million is included in the fiscal year 1973 budget request for U.S. contributions to the assessed budgets of the six inter-American organizations, an increase of $3.1 million over fiscal year 1972. The assessed budgets of these organizations total $52.5 million, an increase of $3.0 million over fiscal year 1972. Significant increases are provided for the Pan American Health Organization (PAHO) and the Organization of American States (OAS). The $1.0 million increase for PAHO is primarily for wage and price increases and some program expansion, particularly malaria eradication and support of the Pan American Zoonosis Center. The estimated increase of $1.7 million for the OAS is entirely attributable to wage and price increases, improved personnel benefits and tax equalization fund adjustments. There is no program expansion. REGIONAL ORGANIZATIONS +$2,246,015 A total of $13.6 million is required in fiscal year 1973 to meet the U.S. obligation to support the assessed budgets of six regional organizations, an increase of $2.2 million over fiscal year 1972. The major increases are $1.1 million for the North Atlantic Treaty Organization and $1.0 million for the Organization for Economic Cooperation and Develop- ment. Practically the entire increase is for wage and price increases and exchange rate adjustments following the dollar devaluation. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :RA-RDP74B00415R000600120003-6 OTHER INTERNATIONAL ORGANIZATIONS +$103,944 A total of $1.0 million will be required in fiscal year 1973 for U.S. contributions to the assessed budgets of fourteen international organizations, an increase of $104 thou- sand over fiscal year 1972. About $20,000 of the increase is attributable to the dollar devaluation. A total of $1.0 million will be required in fiscal year 1973 for U.S. contributions to the assessed budgets of fourteen other international organizations, an increase of $104 thou- sand over fiscal year 1972. About $20,000 of the increase is attributable to the dollar devaluation. Committee comments on international organizations The table above, however, does not show the sum total of U.S. con- tributions to these organizations--only. the assessed amounts to the regular budgets. The Committee was furnished with an additional table showing that our total contributions to international organiza- tions and programs from all appropriation sources amounted to $526,304,000 in FY 1972 and is estimated at $655,607,000 in FY 1973. According to this table, which is printed in the hearings, $132,335,000 of this amount will be financed from. foreign assistance appropriations, and $342,372,000 from other appropriations, principally P.L. 480, plus the $200,000,000 special appropriation for the United Nations Relief Operation in East Pakistan. The Committee urges the Depart- ment of State to consider consolidating in one bill all of the requests for authorization for contributions to international organizations and commissions. In this way the Committee will be able to appraise in one proposal the full scope of our financial participation in these organiza- tions. In view of the recent action of the Congress in urging the President to undertake to implement the recommendations of the so-called Lodge Commission that the U.S. contributions to the regular budgets of the United Nations be reduced to not more than 25 percent, the Committee expressed its concern at the increase in this budget over that of FY 1972. While recognizing the role of world-wide inflation in this matter, the committee nonetheless felt that a general review of U.S. participation in such organizations might disclose some whose usefulness has ended, particularly as far as continued U.S. participa- tion is concerned, as for instance the International Seed Testing Association and the International Lead and Zinc Study Group about which questions were raised at the hearing. Next year, the Committee expects to go into this matter in depth, and hopes that in the interim the State Department will recommend on its own initiative that U.S. participation in some of these organizations be terminated. As long, however, as the United States is a member, by law or treaty, in these organizations, the Committee feels strongly about the U.S. obligation to pay its dues. It has particular reference here to the In- ternational .Labor Organizations. Nothing has come to the Committee's attention that would warrant terminating the U.S. membership in the ILO or that would indicate that such an action is being seriously entertained in any responsible quarter. Since it is clearly the intention of the United States to retain its membership in the ILO, our national interest is not only not served by remaining in arrears but positively damaged by such action. While the question of appropriating funds Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 28 for the payment of our overdue assessments is not before the Com- mittee on Foreign Relations, the committee does nevertheless urge particularly that full FY 1973 contribution be authorized. The Committee considered a request by Senator Hatfield to incor- porate the substance of S. 2313 as an amendment to the pending bill.! This would have authorized the appropriation, in addition to the funds being requested, specifically as a contribution to any fund created within the United Nations to provide for the establish- ment and maintenance of a peacekeeping force, provided that the U.S. contribution not exceed 25 percent of total other contributions. The Committee shares the desire to give a boost to the United Na- tions' efforts to establish a stand-by peacekeeping force and strongly urges the Department of State to persist in negotiations in the United Nations to this end. A specific authorization of funds for this purpose however the Committee believes is premature. If there should develop, it sudden breakthrough in negotiations, moreover, the Committee has been assured that adequate authority in the United Nations Partici- pation Act and the Foreign Assistance Act of 1961, as amended, exists to earmark a U.S. contribution and would support such decision by the Executive branch. There appears to be a need for a focal point within the Department to assure better coordination and control of our participation in all international and regional organizations. It is recognized that the multiplicity of interests within the Department, other departments and agencies, and the public complicate coordination and control. A much more effective effort is needed, however, and the Committee will expect the Department to report on the corrective steps taken during consideration next year of the authorization legislation for FY 1974. Missions to International Organizations ($4,868,000) This item covers the costs of U.S. Missions to various international organizations, as well as the expenses of Congressional delegations to interparlimentary groups, established by law. The table which follows lists the organizations involved, together with the comparable data for FY 1971 and an explanation of changes, all furnished by the' executive branch. 1972 1973 Increase or decrease, U.S. mission to- United Nations________________________________________________ $2,032,500 $2,054,100 +$21,600 International organizations, Geneva_____________________________ 1:449,200 1,476,500 +27,300 . nternational organizations, Vienna ------------------------------ 513,400 566,300 +52,800 International Civil Aviation Organization_________________________ 151,000 152,900 +1,900 Organization of American States -------------------------------- 159,500 158,400 -1,100. United Nations Educational, Scientific, and Cultural Organization---- 211,300 217,400 +6,100 The Food and Agriculture Organization___________________________ 84,200 82,500 -1,700 Subtotal___________________________________________________ 4,601,100 4,708,100 -107,000 U.S. congressional groups to- Interparliamentary Union -------------------------------------- 26,900 44,900 +18,000 North Atlantic Assembly --------------------------------------- 30,000 50,000 +20,000 Canada-United States InterparliamentaryGroup ------------------- 30,000 30,000 -------------- Mexico-United States Interparliamentary Group _ 30,000 30,000-------------- Subtotal ___________________________________-_--_---_------ 116,900 154,900 +38,000 Total obligations -------------------------------------------- 4,718,000 4,863,000 +145,000 President at reduction-directive, Aug. 15, 1971_______________________ +75,000 -------------- -75,000 Appropriation or estimate___________________________________ 4,793,000 4,863,000 +70,000; Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :291A-RDP74B00415R000600120003-6 HIGHLIGHTS OF BUDGET CHANGES The net increase of $70,000 requested for fiscal year 1973 will provide $49,000 for statutory salary increases of Ameri- can personnel and overseas wage and price increases; $22,000 for increased costs of the United Nations Ambassador's leased residence at the Waldorf Astoria; $30,000 to obtain appropriate office quarters and furnishings in Vienna; $9,000 for two additional local employees for the U.S. Mission to International Organizations to provide improved support at Geneva and Vienna; and $38,000 for expenses of members of Congress attending the Interparliamentary Union and the North Atlantic Assembly. These increased requirements in fiscal year 1973 are offset by a savings of $3,000 for non- recurring costs of household furnishings and $75,000 for the fiscal year 1972 Presidential Reduction. As in the case of U.S. contributions to international organizations. not all expenses of U.S. Missions are included in this item. The U.S. missions to NATO, the European Communities, and the OECD, for example are funded by foreign aid appropriations. The Committee questions this separate treatment and will press for a consolidation of these expenses with those funded in the State Department authoriza- tion, so that a balanced overall review can be made possible. The committee is greatly concerned at the size of several of these missions and urges a thorough review of the matter. It expects corrective action to be taken prior to consideration of the authorization for FY 1974. International Conferences and Contingencies ($2,500,000) These funds finance U.S. participation in international conferences and in new or provisional international organizations. Again, not all international conferences are included in this item; the SALT talks, for instance, are funded by the Arms Control and Disarmament Agency, as discussed later in this report, and other bilateral negotiations are excluded. The principal expenses are travel, per diem, and adminis- trative costs. The following State Department table gives the history and budget summary of this item: 10-YEAR HISTORY 1964----------------------------------- 1965----------------------------------- 1966----------------------------------- 1967----------------------------------- 1968---------------------------------- $1,943,000 1,943,000 1,943,000 1,943,000 1,780,000 1969---------------------------------- 1970---------------------------------- 1971---------------------------------- 1972---------------------------------- 1973 (estimated)----------------------- $1,800,000 2,062,393 2,130,000 2,125,000 2,500,000 A BUDGET SUMMARY ppropriation,1972----------------- ------------------------------------------------ 000 $2,125 Estimate,1973------------------ ----------------------------------------------------------------- , 2,500,000 Increase ------------------------------------------------------------------------------- 375,000 1972 1973 Increase oj decrease Participation in international conferences---------------------------- $1,245,000 $1, 513,000 +$268,000 Contributions to new or provisional international organizations---------- 880, 000 5 { 107,000 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16IA-RDP74B00415R000600120003-6 HIGHLIGHTS OF BUDGET CHANGES 't'he net increase requested includes $150,000 for U.S. participation in a UN Law of the Sea Conference; $33,000 for the Diplomatic Conference on International Humanitarian Law; $22,000 for an Intergovernmental Maritime Consulta- tive Organization Conference on Marine Pollution; $63,000 for the additional cost of conferences recurring in fiscal year 1973; and $107,000 to provide for an estimated increase in the U.S. share of the budget of the General Agreement on Tariffs and Trade (GATT). The Committee has long been expressing its concern at the prolifera- tion of international conferences and at the size of U.S. delegations to some of these. Admittedly, the State Department is aware of this problem and attempting to control it, as the following paragraph from the budget presentation shows: For example, in 1971, for conference participation financed by this appropriation, the Department sent only one official participant at the expense of the appropriation to 51% of the conferences, for another 250/0 of the conferences, only two for another 9%, only three, for another 80//'Gi only four or five and only for the remaining 7% of the conferences were more than five participants sent at the expense of this fund. These latter conferences were such important ones as the UN General Assembly, the General Assembly of the Organi- zation of American States, the Assembly of the International Civil Aviation Organization and the Ministerial Meeting of the Organization for Economic Cooperation and Development. Nonetheless, and in light of the fact that the State Department expects U.S. participation in 425 conferences in FY 1973 the Com- mittee feels that further improvement should be possible in this item, to comply with the President's policy of showing a lowered profile abroad. The $987,000 budgeted for contributions to "new or provisional" organizations is allocated as follows: 1972 1972 estimate 1973 estimate Increase Central Treaty Organization________________ $135,000 $135,000 -------------- General Agreement on Tariffs and Trade _____________________________ 707,000 814,000 $107,000 International Cotton Advisory Committee_____________________________ 23,000 23,000 -------------- nternational Rubber Study Group___________________________________ 9,000 9,000 -------------- International Seed Testing Association_______________________________ 1,000 1,000 -------------- __________ ____________________ Lead and Zinc Study Group ----------------------------------------- 5,000 5,000 -------------- 880,000 987,000 107,000 This table raises the questions how new is "new" and how provi- sional is "provisional". One of the organizations dates back to 1921 and the most recent was set up in 1966. The Committee recommends that the State Department reconsider, or regularize, our participa- tion in these "new and provisional" organizations, in time for the FY 1974 budget presentation. Sec. 101(a) (8) International Commissions ($18,226,000) This subsection authorizes appropriations for U.S. obligations to the international commissions listed below in which the United States Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 3CIA-RDP74B00415R000600120003-6 is a member pursuant to treaties and laws, and includes construction in the case of the International Boundary and Water Commission, United States and Mexico. Program by activities 1972 1973 Increase or decrease International Boundary and Water Commission, United States and Mexico: Salaries and expenses_________________________________________ $1,135,000 $1,127,000 -$8,000 Operation and maintenance____________________________________ 2,810,000 2,884,000 +74,000 Construction__________________________________________________ 6,280,000 10,197,000 +3,917,000 American section, International Boundary Commission, International Joint Commission_______________________________________________ 725,000 722,000 -2,800 International Pacific Halibut Commission_____________________________ 246,000 270, 500 +24, 500 nternational Pacific Salmon Fisheries Commission____________________ 525,800 552,000 +26,200 Inter-American Tropical Tuna Commission___________________________ 452,000 532, 500 +80, 500 International Commission for the Northwest Atlantic Fisheries---------- 6,400 6,400 -------------- International Whaling Commission__________________________________ 1,000 1,000 -------------- International North Pacific Fisheries Commission______________________ 26,200 28,000 +1,800 Great Lakes Fishery Commission____________________________________ 1,813,000 1,853,100 +40,100 North Pacific Fur Seal Commission__________________________________ 4,000 4,000 -------------- International Commission for the Conservation of Atlantic Tunas________ 14,500 25,400 +10,900 International Council for the Exploration of the Sea__________________________________ 12,000 +12,000 Expenses of the U.S. commissioners __________________ 11,100 --- 11,100 ----- Subtotal, international fisheries commissions___________________ 3,100,000 3,296,000 +196,000 The largest item in this category concerns the International Bound- ary and Water Commission, United States and Mexico, and details from the State presentation follow: 1. INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND MEXICO The International Boundary and Water Commission is responsible, through a series of treaties between the United States and Mexico, for the regulation and exercise of the rights and obligations the two Governments have assumed for the solution of problems arising on the boundary which require joint engineering action. The principal problems which occur are: (1) changes in and stabilization of the river boundaries, (2) distribution between the two countries of waters of the international rivers, (3) common flood control problems, (4) conservation and regulation of waters of the river boundaries for utilization in the two countries, (5) quality of waters of international rivers, (6) sanitation hazards, (7) development of hydroelectric power, and (8) determination and demarcation of the land boundary. The activities performed by the United States section relate to treaty obligations assumed by the United States, general policy determinations by the President and the Secretary of State, and authorizations of the Congress. This appropriation provides for: (1) administration of treaties and agreements in force and negotiation of new agree- ments as the need arises, (2) technical guidance and super- vision of distribution of boundary waters, joint projects with Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 ,IA-RDP74B00415R000600120003-6 Mexico, and general engineering studies, and (3) preliminary surveys and investigations. The U.S. section of the Com- mission is headquartered in El Paso, Texas. Positions, Year domestic Amount 1964-------- -------- 1965 1966-------- -------- 1967 ---------------- 1968--------------- 67 $715,000 64 815,000 67 815,000 65 851,000 67 851,000 Positions, domestic Amount 1969__________________ 67 $923,000 1970_________________ 67 1,008,783 1971__________________ 67 1,072,000 1972______________ 65 1,135,000 1973 (estimate)------ - 65 1,127,000 BUDGET SUMMARY Appropriation, 1972----------------------------- ----------------------------------- $1, 135, 35,000 Estimate, 1973-------------------------------------------- ------ ---------------------- --------- 1,127,000 Decrease ---------------------------------------------- 00 ------ - ---- ------ -8,000 Program b activities Increase or Y 1972 1973 decrease General administration________ $642,000 $638,000 -$4,000 General engineering______________________________________________ 398,000 394,000 -4,000 Project investigations ---------------------------------------------- 95,000 95,000 -------------- Appropriation or estimate 1,135, 000 1, 127,000 -8,000 TABLE 2.-OPERATION AND MAINTENANCE '['his appropriation finances the cost of the operation and maintenance of flood control works including the American Darn and Canal, Rio Grande canalization and rectification projects, the Lower Rio Grande flood control projects, the Anzalduas Dam, Amistad Dam, Falcon Dam and power plant, the Douglas-Aqua Prieta sanitation plant, and stream gaging stations on the international rivers and tributaries. Positions, domestic Amount Positions, domestic 1964 -- 251 $2,015,000 1969 270 1965-__ 233 1,987,000 1970__________________ 258 1966---------------- 237 2,025,000 1971 255 1967---------------- 223 1,985,000 1972 ------------------ 245 1968--------------- 220 1,935,000 1973 (estimate)---_____ 245 Amount $2,029,000 2,498,737 2,716,000 2,810,000 2,884,000 BUDGET SUMMARY Appropriation, 1972---------------------------------------------------------------------- $2, 810, 000 Estimate, 1973----------- ----------------------------------------- Increase---------- - -- ------------------------------------------------------------- 1972 1973 El Paso projects---- _- $765,000 $786,000 Lower Rio Grande flood control project ___ 864, 000 892,000 Lower Rio Grande water quality inprovement project__________________ 20, 000 20,000 Falcon Dam and powerplant_ ------------------------------------- 327, 000 334,000 Amistad Darn -------- -------------------------------------------- 192,000 184, 000 International gaging stations ----- -.--------------------------------- 597,000 622, 000 Douglas-Agua Prieta sanitation ------------------------------------- 25,000 26,000 Lower Colorado River clearing______________________________________ 20,000 20,000 Appropriation or estimate__________________________ 2,810,000 2,884,000 74,000 Increase or decrease +$21,000 +28, 000 -------------- +7, 7,000 -8,000 +25,000 +1,000 -------------- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/163,3CIA-RDP74B00415R000600120003-6 This appropriation finances the construction activities of the United States section of the International Commission in response to obligations established by treaties and other agreements between the United States and Mexico, and Acts of Congress. The principal projects, financed jointly by the two countries are sanitation projects, flood control dams on the Rio Grande, and flood control works on the Rio Grande and Tijuana rivers. Positions 1 domestic Amount Positions r domestic Amount 1964-___-_ 123 $6,500,000 1969__________________ 115 $5,806,000 1965---------------- 121 8,300,000 1970__________________ 22 411,629 1966-__ 108 10,883,000 1971------------------ 57 4,200,000 1967----------------- 73 5,754,000 1972 ------------------ 54 6,280,000 1968---------------- 91 9,000,000 1973 (estimate)-- -------- 60 10,197,000 r Includes positions under allocations to other agencies. BUDGET SUMMARY Appropriation, 1972----------------------------------------------------------------------------- $6,280,000 Estimate, 1973------------------------------------------------------------------------ ---------- 10,197,000 Program by activities 1972 1973 Increase or decrease Rio Grande international dams program: Amistad Dam---------------- $14, 657 -$14, 657 Lower Rio Grande flood control improvement program_________________ 5,456, 148 $7, 151, 000 +1,694,852 No gales sanitation________________________________________________ 68,092 -------------- -68,092 Tijuana River flood control ----------------------------------------- 465,973 4,800,000 +4,334,027 ----- ---------- ---- Total obligations____________________________________________ 6,004,870 11, 951, 000 +5,946,130 Deduct unobligated balance, start of year ---------------------------- -1,524,870 -1,900,000 . -275, 130 Add unobligated balance, end of year------------------------------- 1,800,000 46,000 -1,754,000 ---- Appropriation or estimate__________________________________ 6,280,000 10,197,000 +3,917,000 The requested increase of $3,917,000 for fiscal year 1973 will permit construction to continue in the Lower Rio Grande Flood Control Improvement Program for the pro- tection of life and property from excessively high flood levels such as occurred with Hurricane Beulah in 1967; continued development of design, plans and specifications for the Tijuana flood control project, and the letting of the initial construction contract for the U.S. improvements. The justifications for funds for the International Boundary Commission and the International Joint Commission, both U.S.-Canadian bodies, and for the various fisheries com- missions are as follows: II. AMERICAN SECTIONS, INTERNATIONAL COMMISSIONS This appropriation finances the United States share of expenses of: 1. The International Boundary Commission which main- tains United States-Canadian boundary markets in accord- ance with existing treaties and establishes and preserves Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 if lA-RDP74B00415R000600120003-6 boundary vistas by periodic tree cutting and chemical vegetation control. 2. The International Joint Commission which conducts in- vestigations of boundary waters for the regulation of levels and flows of water, pollution abatement and water quality control, and such other related matters referred from the governments of the United States and Canada and of mutual concern to both countries. Principal investigations and activities at present concern an expanded role in abating pollution in the Great Lakes basin, possible regulation of Great Lakes water levels, preservation and enhancement of the American Falls at Niagara Falls, and surveillance of transboundary air pollution along the entire border. Positions Year: Overseas Americans 1964 ------------------ 20 .. ------------ 20 $430,000 1965------- ------------------------ --- 20 ------------- 20 472,000 1966 _____-____- 20 - ---------- 20 475,000 1967-------------------- - ------------- 20 6 26 650,000 1968 --- ----- --------------- 17 4 21 630,000 1969____------------------------------- 32 1 33 629,000 1970----- ------------------------------ 28 ---------------- 28 599,484 1971 ----- ------------- --------------- 29 ---------------- 29 653,000 1972 (estimate)---------------------_____ 30 29 _______________ ---------------- 30 29 725,000 722,200 I Includes positions under allocations to other agencies. BUDGET SUMMARY ti 1972 A on, ppropria -------- - -------------------------------- - ....... Estimate,1973'---------------------------------------------------------------- - ------- .......... - - ------- $725,000 722,200 Decrease -----------------------------------------------------------------_ -- ------ ------- 2,800 Program by activities 1972 1973 Increase or decrease International Boundary Commission_________________________________ $175,200 $197,000 ?$21,800 nternational Joint Commission - _ _____________________________ 548,600 525,200 -23,400 Total obligations -__- --__------- _------------------------- 723,800 722,200 -1,600 Presidential reduction--Directive, Aug. 15,1971---------------------- +1,200 __--- --------- -1,200 Appropriation or estimate 725,000 722,200 -2, 800 1_ International Boundary Commission +$21, 800.-The increase of $21,800 includes $7,500 for within-grade salary increases and personnel benefits, $10,000 for the increased cost's of salaries for temporary summer employees, and $4,300 for increased operating expenses of the field crews cutting brush and regrowth of trees in the boundary vista. .. International Joint Commission -$23, 400.-The net decrease of $23,400 results from the assumption of fund- ing responsibility for environmental studies and reports b" the Environmental Protection Agency (--$138,000), a reduction in personnel compensation for two less days ( $1,200) and an increase of $115,800 requested for fiscal Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1635CIA-RDP74B00415R000600120003-6 year 1973. The increase requested will provide $112,200 to the Commission to annualize the cost of two positions authorized in fiscal year 1972 and permit an increase of five new positions in fiscal year 1973. There is an increase of $3,600 requested for allocation to Geological Survey, Department of the Interior for their additional activities planned for fiscal year 1973 in support of the Commission. III. INTERNATIONAL FISHERIES COMMISSIONS This appropriation provides funds for the United States share of the expenses of nine international fisheries com- missions in which it participates. The Commissions deter- mine and undertake or recommend measures necessary for the preservation and expansion of fishery stocks. Year 1964--------------------------------- $2,000,000 1969--------------- --------------- 1965----------------------------------- 2,025,000 1970---------------------------------- 1966----------------------------------- 2,125,000 1971---------------------------------- 1967---------------------------------- 2, 125,000 1972---------------------------------- 1968----------------------------------- 2,015,000 1973(estimate)------------------------ Amount $2,075,000 2,409,188 2,543,800 3,100,000 3,296,000 BUDGET SUMMARY Appropriation,1972----------------------------------------------------------------------------- $3,100,000 Estimate,1973-------------------------------------- ------------------ -------------------------- 3,296,000 Increase --------------------------------- ------------------------------------------------- 196,000 HIGHLIGHTS OF BUDGET CHANGES The requested increase is to (1) provide $63,400 for salary adjustments for Commission personnel in fiscal year 1973 consistent with the salary increases authorized in January, 7.971 for United States Government employees, and $16,800 for upgrading of retirement benefits; and (2) provide $103,800 for program increases needed to strengthen the effectiveness of the Tropical Tuna ($51,000), North. Pacific ($1,800), Great Lakes ($40,100), and Atlantic Tuna Commissions ($10.900), and (3) provide $12,000 to join the International Council for the Exploration of the Sea. Sec. 101 (a) (4) Educational Exchange ($59,,200,000) This item consists of two major categories: $52,400,000 for programs authorized by the Mutual Educational and Cultural Exchange Act of 1961, as amended and by the Act of August 9, 1939; and $6,800,000 to carry out the provisions of the Center for Cultural and Technical Interchange between East and West of 1960. Mutual Educational and Cultural Exchange Activities ($52,400,000) These funds finance the educational and cultural exchange program conducted by the Department of State under the authority of the Mutual Educational and Cultural Exchange Act of 1961, as amended. The purposes of the program are to improve international under- standing and cooperation through improved communications between U.S. and foreign scholars, educators and institutions, as well as through the short-term exposure of leaders and other foreign nationals to American life. The recent history of this program is set forth below together with the budget summary and an explanation of increases all furnished by the State Department: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/163hfIA-RDP74B00415R000600120003-6 Positions,' domestic Amount Year: 1964_.------- 473 $42,625,000 1965--------- __ 466 45,000,000 1966_____________ 458 53,000,000 1967_____________ 444 47,000,000 1968------------- 417 45, 125,000 1969 353 31, 425, 000 Positions,' domestic Amount Year: 1970__ _ 327 32,300,721 1971______________ 318 37,176,000 1972-------------- 304 40,500,000 1973 (estimate) ---- 298 52,400,000 I Includes positions under allocation to other agencies. Note.-Excludes $457,000 and 21 positions in 1973 for UNESCO activities transferred to salaries and expenses. Com- parable amounts for 1971 are $496,213 and 23 positions and for 1972 are $466,000 and 21 positions. BUDGET SUMMARY Appropriation, 1972---------------------------- ----------- -------------- - ------------ Esti t 1973 - $40,500,000 ma e, -------------- ----- -------- - ----------------------------------------- 52,400,000 Increase ------------------------------------ ------------------------- -- ---- - 11,900,000 Program activities 1972 1973 Increase or decrease Exchange- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - of persons -------- ---- __ $30,482,492 $41,334,492 +$10,852,000 Aid to American-sponsored schools abroad --------------------- 1,700,000 2,400,000 +700,000 Cultural presentations ---------------------------------------- 700,000 1,000,000 +300,000 Program services ---------------- - _ ___________________ 7,179,000 7,640,000 +461,000 Administrative expenses -------------------------------------- 2,672,000 2,767,000 +95,000 Total program ----___ _____________ - 42 733,492 , 55,141 492 +12,408,000 Deduct other available funds--------------------------------- -2 796, 492 -2,741,492 492 +55,000 Total obligations-_ _ _ _ - _ 39, 937, 000 52, 400, 000 +12, 463, 000 Presidential reduction-Directive, Aug. 15, 1971--------------- - 97,000 --------- -97,000 Comparative transfer to "Salaries and expenses"_______________ 466,000 ---------------- -466,000 Appropriation or estimate____________________________ 40,500,000 52,400,000 +11,900,000 HIGHLIGHTS OF BUDGET CHANGES The increase of $12,463,000 for this program ($55,000 of which is to offset a reduction in funds available from other sources) is explained in the succeeding paragraphs. Principal changes are: EXCHANGE OF PERSONS +$10,852,000 An increase of $10,852,000 to provide for mutually bene- ficial exchange projects and to stimulate private cooperative efforts and relationships between American and foreign or- ganizations ($9,897,000) ; expand and enhance the high school exchange program particularly in lower income countries ($150,000) ; and strengthen the selection, placement, counselling and orientation of non-grant students ($805,000). AID TO AMERICAN-SPONSORED SCHOOLS ABROAD +$700,000 The proposed increase of $700,000 will provide for the de- velopment of improved educational programs in these schools to demonstrate American educational ideals as well as educa- tional principles and methods employed in the United States. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 ,3f IA-RDP74B00415R000600120003-6 CULTURAL PRESENTATION +$300,000 Increased funds provide for a balanced program abroad with primary emphasis still on the USSR and East Europe. PROGRAM SERVICES +$461,000 The requested increase of $461,000 provides for within- grade salary costs and 15 new domestic positions requested for essential program activities ($96,000) ; overseas wage and price increases and the necessary additional overseas support for the requested increase in program ($365,000). ADMINISTRATIVE EXPENSES +$95,000 The increase of $95,000 will provide funds for additional administrative expenses including within-grade salary costs, travel and overseas wage and price increases. The largest component part of this item is the exchange of persons on which further executive branch detail follows: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 38 z' 00 ?o ?o u~i o?c'~.i .~?~?o ooooommo ~oomvon~'irn?o ~noo Lei ip voo oo .-: en T O O a o 0 M o? ?o a vu~ -mop N~m m Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 3fIA-RDP74B00415R000600120003-6 uJ W W NtOOM < OO T1- VNCOMe ti A M ?--i u"~ T tp ?--~ N N LL'i t^M M?-y CO N- - N CO CON- N D7 OMM?O+ R T tOp r-i N ti d't( W tMD tt0l X000 ~nNN h ~ M ti N C N y Q N O10 M N.+N N O 00 NM t D .~ .~OO iL J COO_C NV1 _ mMN?0-~ tO ~ IOOM NM OfN Q N Mtp O .+ O d'N CO O 00 N NNN .N-~ NM M ~itO tO .+ NNNM CO .O~a N~ ~M N tO~ 000NN top N OO)M 00,Oi VOp ~tl~ a Ot ON ~N 1~ N M M NN ~ N N N N Ny~OO U'1 tO nN OON 0 N 001 N ?0-i .Oi N ~I'NMpt O r ON M1 N N ?--~ .~-i N ~.Vi i m ti NN OMNNQ 00 ^ tD tOZ OO i0'd' NMti i .Ni M~ NM ~W ~tNn n .--i M~-1 Nm iOW M OON O f` C O~ i00 N 00 ~~V i ?--i ~ N 00 ti N CO M N 001") N N ?--~ O ^ N'V COO Ot I- O ti O CC 01 C W 2 y O ~Gl N r y 'N ayi u u M o r:Vl &C ~ O C- O E O avv ott i tN y tY~ 9 N'-.' p. C y C- rt+N A v aO+ OG tO -O HO c ` v 9 ` ~vv O s tO N N N F 0:2. ~ C i O G G C yC2~OLm. jNL `?' 00 F-I- C7 m ?~O-`n ~ d 9'O Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 40 As the recent appropriations history shows, the exchange program is on its way to recover from the FY 1969 low of $31,425,000, a de- velopment that is most gratifying to the Committee and it believes deserves full congressional support. The effects of this program are of a long-term nature, and all the more important for that reason as we look to future generations for leadership. Center for Cultural and Technical Interchange Between East and West ($6,800,000) The purposes of this center, established pursuant to a section of the Foreign Assistance of 1960, is to foster better relations and greater understanding between the peoples of the Pacific rim. It is run by the University of Hawaii as an semi-autonomous institution and administers grants, fellowships and scholarships to qualified applicants to study or train at the Center. The following State Department tables and text summarize the recent budgets and changes therein. 1964----------------------------------- $5, 100,000 1965- ---------------------- 5,800,000 1966---------------------------------- 5,800,000 1967 ----------------------------------- 6,050,000 1968----------------------------------- 5,220,000 1969 ---------------- $5,260,000 1970------------------ --------------- 5,260,000 1971---------------------------------- 5,260,000 1972--------------------------------- 5,680,000 1973 (estimate)-- _ 6,800,000 BUDGET SUMMARY Appropriation, 1972------------------------------------------------------------------------------ $5,630,000 Estimate, 1973---------------------------------------------------------------------------------- 6,800,000 Increase--------------------------------------------------------------------------------- 1,170,000 Increase or 1972 1973 decrease Education, research, and training programs --------------------------- $4,537,606 $5,616,868 +$1, 079, 262 Program direction, administration, and institutional support services---- 1,092,394 1, 183,132 -1-90,738 Appropriation or estimate ------------------------------------ 5,630,000 6,800,000 +1,170,000 EDUCATION, RESEARCH, AND TRAINING PROGRAMS, +$1,079,262 'l'o provide for increased educational and cultural exchange activities, including a new program, an additional 250 indi- vidual exchanges of various types, and a followup program for East-West alumni ($607,606); to broaden the spectrum of academic disciplines and professional experience on the Center's staff and increase the quality, length, and continuity of the Center's research, study, and training ($429,671) ; to provide for non-discretionary salary, employee benefits, and other costs ($41,991). PROGRAM DIRECTION, ADMINISTRATION, AND INSTITUTIONAL SUPPORT SERVICES, +$90,738 To provide additional staff resources to strengthen the Center's management and to solicit additional private and foreign government assistance for the Center; meet non- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/164t1A-RDP74B00415R000600120003-6 discretionary salary, employee benefit and other costs, and provide additional supplies, materials and support services ($90,738). See. 101 (a) (5) Migration and Refugee Assistance ($8,212,000) This authorization provides for United States assistance on a multilateral basis to migrants and refugees through contributions to the Intergovernmental Committee for European Migration, the United Nations High Commissioner for Refugees and on a unilateral basis to refugees designated by the President, as authorized by law. It also includes a contribution to the International Committee of the Red Cross. It does not include relief assistance for Pakistani refugees, nor the new program for relief of refugees from the Soviet Union, which is described separately following this section. The following table gives a comparison with FY 1972 funds and a breakdown by organization or program of proposed allocations. DEPARTMENT OF STATE-MIGRATION AND REFUGEE ASSISTANCE Appropriation, 1972-------- ---- $8,690,000 - - - - -,197- Decrease, Presidential reduction: -Directive of--Aug- . 15- -1-13,000 Total obligations, 1972----------- ---------------------------------------------------------- 8,677,000 Transfers from foreign assistance funds by Presidential determination: 72-1--------------------------------------------------------------------------------------- +5,000,000 72-6--------------------------------------------------------------------------------------- +1,850,000 Total availability 1972_____________________________________________________________________ 15,527,000 Estimate 1973--- ------------------------------------------------------------------------------ 8,212,000 Decrease-------------------------------------------------------------------------------------- -7,315,000 1972 Increases/decreases ----- ---- ------------ Presidential 1972 1972 App- determi- Total appro- total Program by activities vities ion nation program 1973 priatian program 1. Intergovernmental Committee for European Migration(ICEM)______ $3,250,000 ------------ $3,250,000 $3,225,000 -$25,000 -$25,000 2. United Nations High Commissioner for Refugees (UNHCR)---------- 1,000,000 ------------ 1,000,000 1,000,000 ------------------------ 3. U.S. Refugee program (USRP)______ 2,900,000 $1,850,000 4,750,000 2,400,000 -500, 000 -2, 350, 000 4. Far East Refugee program (FERP)__ 500,000 ------------ 500,000 500,000 --------------- 5. Refugees from East Pakistan___________________ 4,825,000 4,825,000 _______-________________ -4,825,000 6. International Committee of the Red Cross (ICRC)------------------- 50,000 ------------ 50,000 50,000 ------------------------ 7. Administration___________________ 977,000 175,000 1,152,000 1,037,000 +60,000 -115,000 -- -- ---------------- Total obligations______________ 8,677,000 6,850,000 15,527,000 8,212,000 -465, 000 -7,315,000 Note.-The request for $8,212,000 for fiscal year 1973 is to provide funds for migration and refugee programs authorized under Public Law 87-510, the Migration and Refugee Act of 1962, and for assistance under Public Law 89-230 which provides for an annual contribution to the International Committee of the Red Cross. Of this amount, $7,125,000 is to remain available until Dec. 31, 1973. In accordance with the legislative authority, the fiscal year 1973 funds requested will be utilized for contributions to the Intergovernmental Committee for European Migration (ICEM), the United Nations High Commissioner for Refugees (UNHCR), and the International Committee of the Red Cross (ICRC), for assistance to refugees which the President determines to be in the national interest, including refugees from Communist countries in Europe and from Communist China and for related administrative costs. All of these programs have been in existence for a number of years and show relatively little change. Section 101(b) . Authorization of Assistance for Soviet Refugees ($85, 000,000) This subsection authorizes the appropriation of $85,000,000 to Israel, and other suitable countries of Jewish and other religious refugees from the Soviet Union. The State Department estimates that about 14,000 Jews migrated from the Soviet Union to Israel in 1971 and that the number will Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 42 increase to about 40,000 in 1972. The number will of course depend on the number of requests the Soviet authorities are willing to approve. This increased flow imposes a heavy financial and social burden on Israel-a nation of only three million people. The Committee believes that our nation should be prepared to hel:) Israel. in this task. First,; the United States has a tradition of refugee assistance arising from our own experience of being founded and populated by the refugees of an earlier world. Since World War If we have contributed more than $2.8 billion in such assistance, includ- ing close to $600 million to assist Cuban refugees, almost $85 million to aid Korean refugees, and more than $500 million to help Arab refugees. Second, there is our long history of concern with persecution on account of religion. Third, there is the special interest this nation has always taken in the well-being of Israel. For these reasons, the Committee believes that we should help Israel cope with the new influx of Soviet refugees. The Committee believes that the use of the funds authorized should be apportioned in relation to the actual flow of refugees. If the refugee load does not develop as anticipated, it is expected that a proportionate amount of the funds will not be spent. Section 101(c). Availability of funds This subsection would provide for the customary extension of the availability of funds beyond the end of the fiscal year, to the extent. provided for in appropriation Acts, for such appropriations of the Department as "Acquisition, operation, and maintenance of buildings abroad," "Acquisition, operation, and maintenance of buildings abroad (Special Foreign Currency Program)," "International Bound- ary and Water Counnlission, United States and Mexico-Construction," and "Migration and Refugee Assistance." This authority is required to enable the Department to retain funds appropriated for construe- Lion projects, the completion of which extends beyond a single fiscal year, and to enable the Department to meet the calendar year 1973 program needs for Migration and Refugee Assistance. Section 102. Limitation upon prior year authorization requirement This section has been included to assure that permanent appro- priations under which payments are made directly from the Treasury in accordance with existing statutory authority are not considered within the purview of section 407 of the Foreign Assistance Act of 1971. There are a number of such existing authorities such as the annual payment to the Republic of Panama; the annual payment to (he Foreign Service Retirement and Disability Fund ; use of proceeds Isom the sale or lease to foreign governments of sites at the Interna- tional Center, Washington, D.C., for financing the costs of site prepara- tion; payments from the Educational Exchange Permanent Appro- priation which includes World War f debt payments by Finland; expenditure of trust funds received from foreign governments for citizens of the United States or others; and expenditures from the gift funds of the Department. Section 103. Deputy Secretary-Bureaus of North American and South American Affairs. Subsection (a) changes the title of the second ranking officer in the Department of State from "Under Secretary of State" to "Deputy Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/13 CIA-RDP74B00415R000600120003-6 Secretary of State," and creates an additional Assistant Secretary of State position within the Department. The new position of "Deputy Secretary" will remain in Level II of the Executive Salary Schedule. The recent reorganization of the executive level of the Department re-emphasizes the Under Secretary's role not only as the Secretary's alter ego but also as his principal deputy in all matters. The Secretary relies on the Deputy Secretary for insuring coordination of foreign affairs activities, including guidance to the Department and to other agencies on allocation of resources. The Deputy Secretary will be responsible for the management of the Department's planning, evaluation and resources allocation processes. The Secretary's responsibilities have greatly expanded since the establishment of the position of Under Secretary. In addition to directing the activities of the Department proper, which are headed by the various Assistant Secretaries, he is also responsible for directing two semi-autonomous agencies-A.I.D. and ACDA. The involvement of the Department in the activities of numerous international organi- zations and the coordination of U.S. policy through the U.S. Repre- sentatives to these organizations have further complicated the re- sponsibilities of the Secretary and Under Secretary. The additional Assistant Secretary position is needed because of the new Bureau created by subsection (b) (1). Subsection (b) (1) establishes within the Department of State a Bureau of North American Affairs and a Bureau of South American Affairs. At the present there is a Bureau of Inter-American Affairs which is responsible for foreign policy matters with all nations south of the U.S. border and in the Caribbean area. To the north, Canada comes under the Bureau of European Affairs. The change, sponsored by Senators Aiken, Church and Spong, will bring our immediate neighbors, Canada and Mexico, into one Bureau in order to emphasize our special relationship with these countries. Many Canadians, for example, sensitive to their former colonial status, resent having their country lumped into some bureau with the nations of Western Europe. It is the Committee's intention that the nations to be included in the new Bureau of North American Affairs shall be Panama, and all nations to the north, including the islands of the Caribbean. Subsection (b) (2) makes necessary shifts in the responsibilities of offices within the State Department to reflect the creation of the two new bureaus and the geographical areas assigned to each. Subsection (b) (3) abolishes the ? Bureau of Inter-American Affairs and the position of Assistant Secretary of State for Inter-American Affairs. Subsection (d) transfers the duties of the Under Secretary of State to the Deputy Secretary of State. The provision also allows the incumbent Under Secretary to assume the duties of Deputy Secretary without reappointment by the President and confirmation by the Senate. Subsection (e) makes the provisions of subsections (a) and (b) effective July 1, 1972. Section 104. Executive Schedule Pay Rates Subsection (1) would amend Chapter 53 of Title 5 of the United States Code to reflect the change in the title of the second ranking officer in the State Department authorized in Section 103(a). Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :4C4IA-RDP74B00415R000600120003-6 Subsection (2) amends the listing of personnel positions authorized' for Level IV of the Executive Schedule to increase from 11 to 12 the number of Assistant Secretaries of State authorized for pay at this level. Section 105. Retirement Annuities for Certain Aliens 'T'his section would add a new subparagraph (J) to paragraph (1) of section 8331 of title 5, United States Code, to authorize Civil Service retirement credit for certain alien employees of the United States abroad who work fora protecting power (foreign government) on United States interests (luring an interruption of diplomatic or consular relations. Such credit would be authorized only when the United States reimburses the protecting power for the services performed by the aliens. Alien (local) employees of the Foreign Service working in a United States embassy or consular post are separated from Federal Service when diplomatic or consular relations with the country exercising jurisdiction in the area involved are broken and American employees of the embassy or consular post are evacuated. Arrangements normally are made at such times to have it third nation protect United States interests on a reimbursable basis. In such cases the third country' usually hires key Foreign Service local employees who have been technically separated to carry on the work involved in handling United States interests, such as travel of American citizens, and shipping and commercial matters; the local employees are thereafter usually rehired by the Foreign Service upon resumption of relations. Service under such circumstances has not been creditable for Civil Service Retirement purposes. This has been a problem since World War II during which several hundred Foreign Service local employees transferred to "American Interests Sections" of Swiss embassies and consulates in order to continue to serve United States interests in enemy and occupied countries. After the war, most returned to Foreign Service rolls and about 100 are still so employed. In addition, about 50 others are now performing such service in Cuba and the Near East helping to protect United States interests. 't'his bill would authorize Civil Service retirement credit for such service for employees whose direct employment with the United States is interrupted in this unique way. Subsection 105(x) defines qualifying service as fulltime service per- formed by an alien (1) previously employed by the United States Government, (2) for a foreign government for The purpose of protecting or furthering United States interests (luring an interruption of diplo- matic or consular relations and (3) for which reimbursement is made by the United States to the foreign government. The section amends 5 U.S.C. 8331 to include an alien performing such service as an "employee" for purposes of Civil Service retirement coverage. If such an employee was a participant in the Civil Service retire- ments system on his most recent separation as a Foregin Service local employee, normally he would continue under the Civil Service re- tirement system (luring his employment by the protecting power. If such employee was not a participant in the. Civil Service retirement, system on his most recent separation as a Foreign Service local em- ployee, he normally would not become a participant in Civil Service retirement system (luring employment by the protecting power. In the latter case, if upon subsequent employment by the United States Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Government he received a type of appointment entitling him to Civil Service retirement coverage, the prior service for the protecting power would count, under this amendment, as creditable service in the same manner as other prior non-deposit Federal service. In the case of an alien who continued under the Civil Service retirement system while employed by a protecting power, the amendment would require that both employee and employer. retirement contributions continue to be deposited in the Civil Service retirement fund. Subsection (b) makes the amendment effective on the first day of the second month which begins after its enactment. Subsection (c) provides that the amendment not apply to persons retired or sepa- rated on the effective date. The amendment would apply to all those employed by a protecting power who meet the criteria stated in this bill on the effective date and to all so employed thereafter. All service made creditable by this amendment performed by eligible persons prior to the effective date will be creditable. It is estimated that the current annual payroll for eligible employees now working for protecting powers is $200,000. Under this bill, this payroll would be added to the payroll on which the Department makes a 7 percent retirement contribution to the Civil Service retirement fund. This would cost $14,000 annually. Also, enactment of this bill would result in an increase of approximately $300,000 in the unfunded liability of the Civil Service retirement system because of past service performed by employees for protecting powers. Section 106. Military Personnel and Civilian Employees Claims Act of 1964. Although the legislative history of payment of employee claims dates back to April 9, 1816, with enactment of the Military Personnel Claims Act, the Department of Defense, the military departments and the Coast Guard were the only agencies with authority to pay personnel claims prior to 1964. The Military Personnel and Civilian Employees' Claims Act of 1964 extended the coverage of claims statutes to civilian officers and employees of all government agencies, subject to the same $6,500 limitation previously in existence for the ment authority of the Department of Defense, the military departments and the Coast Guard to 10,000, but, retained the $6,500 imitation for the civilian agencies., The Committee believes that the justification submitted in support of the 1965 amendment is equally applicable to the foreign affairs agencies. Tbp, monetary limitation of $6,500 is unrealistic and unduly restrictive in terms of the present cost of household goods and personal effects reasonably in an employee's possession. It imposes a great hardship on certain claimants who are victims of catastrophic losses, and leads to an increase of private relief legislation. The Department of State administers the claims settlement pro- gram jointly with the Agency for International Development (AID) and the United States Information Agency (USIA). The joint regu- lations promulgated by State, AID and USIA are in accordance with the statements made in House Report No. 460 of the 88th Congress that the experience of the military departments would serve to estab- i76-51e 0-72----4 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 A,gjKpved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 46 Ash guidelines and standards. The provisions of these regulations are similar to those of the military departments; the uniform depreeiaiior allowance list developed by the military departments as a giude to adjudicating claims is used by the Department; and the policy set bye the military departments as to maximum amounts allowable on categories of items such as photographic equipment, paintings, silver, ware and major appliances has also been adopted by the Department. nAlthough most claims are settled for less than $1,000, a few hundred dollars, a small percentage of claimants have received full reinmbursenieti.'h` for their losses since they exceeded the $ti 501) limitation.` 'T'hirty-five claims have been determined to be payable in excess of $6,500 but for the statutory monetary limitation. Personnel of civilian agencies with claims prior to 1964 could obtain recovery by requesting the Congress to enact private relief legislation. The same has been true for claims after 1964 for amounts in excess Of $6,500. The authority granted by Congress through enactment of the Military Personnel and Civilian Employees' Claims Act of 1964 relieved the Congress of much of the burden associated with processing private relief legislation. The proposed limitation of $10,000 with the retroactive provision, would provide further relief from processing private relief bills for personnel of the foreign ;affairs agencies. It woutld also permit more expeditious settlement in those cases where a total loss occurs and the employee is faced with circumstances of extreme hardship. The, increase in the ceiling to $10,000 was made retroactively effective to August 31, 19.64 for the military agencies by the 19'65 amendment. ']'his section would permit application of the $10,000 ceiling retroactively to this same date for the foreign affairs agencies. The Committee believes as a matter of equity to the individuals involved that they should be reimbursed for losses of personal property up to $10,000 in the same manner as if they had been employed ill a military department. Losses in excess of $6,500 have resulted primarily from catastrophes involving total loss or damage to employees' personal effects. Most have resulted from hostile activities or abandonment resulting ftom emergency evacuations. A few of these total losses occurred as a result of vessel wreckage or other severe transportation hazard. Most claims stern from losses incurred in overseas areas or in conjunction with, the movement or storage of personal effects authorized at goverrnmlent expense, for service-directed assignments to, from or between overseas post,, of duty. Of the 35 claims settled or pending since 1964 for the Departrtient of State, Agency for International Development and United States Information Agency payable in excess of $6,500 but for the exiting limitation, the proposed legislation would involve it maximum exp ndi- t:ure of $60,000 if enacted; it cost which the government would also incur in Congress were to consider favorably it request to enact private relief legislation for these same claimants. The. additional cost to the government for the next five years cannot be accurately determined because of the unpredictability of incidents that cause substantial losses. Based on past experience, the cost is estimated to be $7,000 per year. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 47 Section 107. Retirement from Foreign Service This section would amend sections 631 and 632 of the Forign Service Act of 1946, as amended, to lower the mandatory retirement age for career ministers from age 65 to 60. Such officers would continue to be exempt from mandatory retirement for age while serving in in positions to which they have been appointed by the President, by and with the advice and consent of the Senate. The amendment would continue the Secretary's authority to extend the service of any officer for up to five years beyond mandatory retirement. This would insure that the lowered retirement age would not work to the detri- ment of the public interest. The amendment would also provide for a gradual implementation of the change in order that affected officers would have time to make necessary adjustments. For officers age 60 or over at the time of enactment, the effective date would be set mid-way between the date of enactment and the (late the officers would reach age 65. For example, the retirement date under the proposed legislation for an officer 64 years old at the time of enactment whose 65th birht- day is ten months hence would be five months after the (late of enact- ment. A 62-year-old officer whose 65th birthday was to be 30 months hence would be subject to retirement 15 months after the (late of enactment. An officer whose 60th birthday coincided with the (late of enactment would be subject 30 months hence. This 30-month date would be the outer limit, and the end of that month would be the effec- tive date of the legislation for all career ministers reaching 60 after the date of enactment. Thus after two and a half years following the date of enactment, all career ministers would be mandatorily retired on reaching the age of 60, unless they were serving at that time in positions to which they were appointed by the President with Senate confirmation, or unless they were extended by the Secretary. Sec. 108. Recommendations for Promotion The Committee amended Sec. 623 of the Foreign Service Act of 1946 to require the Secretary of State, and other officers to whom the Act is applicable, to recommend to the President promotions of foreign service officers based upon, and in accordance with, the findings and order of rank determined by selection boards created by the Secretary to evaluate the performance of foreign service officers. This has been the usual practice heretofore although it has not been required by law. Recently, however, some officers charged with responsibility for recommending promotions to the President have not followed the recommendations of the selection boards. As a hypo- thetical example, when a selection board submits in rank order a list of 25 officers for promotion from class two to class one and there are funds for only ten such officers to be appointed, the officer recom- mending specific promotions to the President has been able to insist that it is his prerogative as manager of his agency to disregard the rank-order recommended by the selection board and substitute his judgment for that of the selection board. The view of the Committee is that this practice weakens the career system and is destructive of morale in the career service. The Com- mittee recognizes that it could control this practice by recommending that the Senate refuse to give its advice and consent to recommended promotions not consistent with the rank order recommendations of Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 48 the selection boards. It believes, however, that the requirement of rank order promotions should be embodied in law. The Committee amendment does not apply to recommendations for promotion to the rank of career minister or career ambassador. The Committee amendment does not limit the management authority of the head of the affected agencies to assign officers to any duty-thus management could assign a low-ranking officer to a position of responsi- bility normally held by an officer with a higher career rank. The Committee has made one exception in requiring the head of the agency to adhere to the recommendations of the selection board. A new Section 623(b) permits the head of the agency "in special circumstances" to accept a grievance panel recommendation for pro- motion. of a Foreign Service officer. Section 109. I+hreign Service Grievances This adds a now part to Title VI of the Foreign Service Act of 1946, relating to Personnel Administration, establishing a procedure for the consideration of grievances in the Foreign Service. The major features of this new language are set forth below: 1. The stated purpose of the new part is "to provide officers and employees of the Service and their survivors, a grievance procedure to insure the fullest measure of due process, and to provide for the just consideration and resolution of grievances of such officers, employees, and survivors." 2. The Secretary of State is required to promulgate regulations pro- viding for the consideration and resolution of grievances which do not "in any manner alter or amend the provisions for due process." 3. The new part calls for the establishment of a three-member board composed of "independent, distinguished citizens of the United States well known for their integrity, who are not officers or employees of the Department, the Service, the Agency for International Develop- ment., or the United States Information Agency." One of the members shall be appointed by the Secretary of State; another by the organiza- tion "accorded recognition as the exclusive representative of the officers and employees of the Service"; and the third shall be appointed by the other two members. If the first two members are unable to agree on a third member within ten days after the second of such two members is appointed, the Chief Judge of the U.S. Court of Appeals for the District of Colum bia shall appoint the third member. Provision is also made for the establishment of additional panels of three members as may be necessary "to consider and resolve expeditiously grievances filed with the board . . ." 4. A grievance shall be barred unless it is filed within a period of six months after the occurrence or occurrences giving rise to the griev- ance, except that if the grievance arose prior to the date the regula- tions are first promulgated or placed into effect, and not considered and resolved, it may be filed within a period of one year after the date of enactment of this new part. 5. The board is required to conduct a hearing on any case filed with it and such hearings shall be open unless the Board determines otherwise. 6. Any grievant, witness or other person involved in it proceeding before the board "shall be free from any restraint, interference, coercion discrimination or reprisal." 7. In considering it, grievance, the board shall have access to "any document or information considered by the Board to be relevant. . . ." Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 4CIA-RDP74B00415R000600120003-6 8. If the board resolves that a grievance is meritorious (in any case not relating to promotion, assignment or selection out of an officer or employee), it shall direct the Secretary to grant such relief as the board determines proper and "the resolution and relief granted by the board shall be final and binding upon all parties." In the case of a grievance relating to any promotion, assignment or selection out, the board shall certify its resolution to the Secretary of State together with such recommendations for relief as it deems appropriate. The board's recommendations are to be final and binding on all parties, except that the Secretary may reject a recommendation "only if he determines that the foreign policy or security of the United, States will be adversely affected" and fully documents his reasons therefor. 9. A grievant may not file a grievance under this new part if he has formally requested (prior to filing a grievance) that his grievance be considered under a provision of a law, regulation or order other than those provided under this part. 10. Any actions taken by the Secretary of State or the Board are subject to judicial review and the Secretary is required to promulgate and place into effect regulations to establish and appoint members of the Board not later than 90 days after the date of enactment of the pending bill. During the past year the Committee has received many complaints regarding grievance procedures in the Department of State. Some complaints have come from individuals who have severed their relationship with the Department, others from individuals who are still within the Department. In recognition of many of these complaints on October 6, 1971, Senator Bayh (for himself and Senators Beall, Brooke, Case, Church, Cooper, Cranston, Hart, Hartke, Humphrey, Kennedy, Moss, Muskie, Pastore, Scott, Stevenson, Tower and Tunney) introduced S. 2659 as a substitute for a bill (S. 2023) which he had introduced earlier that year. A similar bill (S. 2662) was introduced by Senator Moss (for himself and Senator Miller). The Committee held public hearings on these grievance bills on October 7 and 18, 1971. Furthermore, in connection with consideration of the nomination of Howard P. Mace, the former Director of Personnel for the Depart- ment of State, to be Ambassador to Sierra Leone, considerable testi- mony was directed at alleged shortcomings in the Department of State grievance procedures. The Committee is aware of the concern of the Department of State at the enactment of this provision. The Department has established an "interim grievance" procedure system which it has expected in due course would be revised, depending upon agreements to be worked. out between management in the Department and such organization as may be accorded recognition as the exclusive representative of officers and employees of the Foreign Service. There have been un- avoidable delays in selecting the organization to represent officers and employees and it may be anticipated that more time will elapse before representatives of such a group and the management of the Depart- ment will be able to develop mutually acceptable grievance procedures. Accordingly, the Committee decided to adopt compromise language worked out by various sponsors of S. 2659. If management of the Department and representatives of Depart- mental employees find provisions of this legislation interfere with their Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 IA-RDP74B00415R000600120003-6 working relationship, there will be opportunity in the future to suggest necessary changes in the pattern established by this provision. Sec. 110. Ambassadors and Ministers This section requires that persons given the title of "ambassador" or "minister" must first be nominated by the President and confirmed by the Senate in accordance with the requirements of the Constitution. An exception would be made in the case of persons given recess appointments to positions carrying such ranks in accordance with clause 3, section 2, of Article II of the Constitution. It would thus abolish the present practice of conferring the personal rank of "ambassador" or "minister" on individuals for protocol purposes. Under the present, practice, which has no Constitutional or statutory sanction, their names are not submitted to the Senate and the Senate has no control over the number of people so named. A total of 22 per- sons, whose names and positions appear below, now hold the personal rank of ambassador or minister. The current practice denigrates the Constitutional role of the Senate, involves a misuse of the titles of ambassador and minister, and should be stopped. With regard to individuals who serve as Deputy Chiefs of Mission, it is the Committee's understanding that they may be designated as "Minister-Counselor" only after the Secretary of State is satisfied that such a, title is necessary for the effective discharge of their duties. According to information received from the Department of State, this title has been accepted by the international diplomatic community as a title indicating a rank of precedence higher than Counselor but "clearly subordinate to and distinct from any title denoting Chief of Mission." PERSONS HOLDING PERSONAL RANK OF AMBASSADOR ACCORDED BY THE PRESIDENT (AS OF JAN. 3, 1972) Date Name accorded Designation Donald L. McKernan (L)--------- Sept. 26,1966 In connection with his designation as Special Assistant to the Secretary of State for Fisheries and Wildlife, accorded the personal rank of Ambassador during the periods of his representation of the United States at international conferences and meetings on fish and wildlife matters. Richard D. Kearney (L)__________ Mar. 22,1967 A m ember of the International Law Commission, United Nations. Joseph A. Greenwald, of July 22,1969 Representative of the United States to the Organization for Economic Illinois (FSO-1)(L). Cooperation and Development (OECD), Paris. Samuel D. Berger, of New Mar. 7, 1968 Deputy Ambassador to the Republic of Vietnam. York (FSO-CM)(L). Joseph F. Friedkin, of Texas (L)___ July 2,1968 Com missioner of the U.S. Section on the International Boundary and Water Commission, ited States a Emil Mosbacher, Jr., of New Jan. 28,1969 Chief of Protocol for thenWh to House.nd Mexico. York (P). Gerard C. Smith, of the May 13, 1969 During such periods as he may require it in representing the United District of Columbia (L). States at talks and negotiations on matters relating to arms control and rmament Philip J. Farley, of California May 13,1969 Alter nateaRep esentative of the United States at the forthcoming (FSO-1XL). talks with representatives of the U.S.S.R. on strategic arms limitations. James F. Leonard, Jr., of Mesy Leonard, o July 18,1969 During such periods as he may be designated to serve, either as the U.S. Representative or Alternate Representative, at meetings of the 18-Nation Disarmament Conference. John C. Mundt, of New York May 28. 1971 Sn i I William J. Porter, of Massa- July 31, 1971 Personal Representative [of the President[ to head the U.S. Delegation chusetts (FSO--CMXP). at Paris Meetings on Vietnam. David H. Ward, of Illinois (P)______ Dec. 23,1971 A Special Representative of the United States for Inter-Oceanic Canal Negotiations. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 51 PERSONS HOLDING PERSONAL RANK OF MINISTER ACCORDED BY THE PRESIDENT (AS OF JAN. 3, 1972) Boris H. Klosson, of Maryland May 21,1969 (FSO-1 L). Deputy Chief of Mission, Moscow, U,S.S.R. Rufus Z. Smith, at Illinois Oct. 26, 1968 (FSO-1)(L) Deputy Chief of Mission, Ottawa, Ontario, Canada. . Wells Stabler, of Connecticut July 1,1969 (FSO-1) (L). Deputy Chief of Mission, Rome, Italy. Donald C. Bergus, of Pennsylvania Jan. 30, 1968 Counselor of the U.S. Interests Section of the Spanish Embassy in (FSO-1)(L). Cairo. Robert A. Fearey, of Maryland Aug. 6,1969 (FSO-1)(L). Civil Administrator of the Ryukyu Islands, Naha, Okinawa. William A. Ellis, of Washington (L)_ Oct. 17,1968 Director, U.S. AID Mission to Brazil. William J. Stibravy, of New Jersey Sept. 24, 1968 (FSO 1 L U.S. Representative to the United Nations Industrial Development O Vi i ti - ). Weir M. Brown, of Illinois (L) ----- July 3, 1962 rgan za on, enna. Deputy to the U.S. Representative to the Organization for Economic Cooperation and Development, Paris/DECD. Stuart H. Van Dyke, of Virginia Oct. (L) 1, 1968 U.S. Representative to the Development Assistance Committee of the OECD P i . Jules Bassin, of New York Aug. 13,1969 s. , ar Deputy Representative of the United States to the European Office of (FSO-1)(L). the UN and other International Organizations, Geneva, Note: (L)=Rank given by letter from the President; (P)=Rank given in commission from the President in connection with Presidential appointment not requiring confirmation by the Senate, TITLE II-UNITED STATES INFORMATION AGENCY Conran ittee comments The United States Information Agency requested a total authoriza- tion of $200,249,000. The specifics of this request and the Committee's recommendations are as follows : Request Committee recommenda- tions Increase (+) or decrease (-) Radio activities___________________________________________________ $52,122 $36,485 -$15,637 Motion picture and TV activities ------------------------------------ 15,928 11,150 -4,778 Press and publications activities ------------------------------------ 25, 592 17,914 -7,678 Information centers, libraries, and related activities ------------------- 29,623 29,623 -------------- Program direction, general support and related activities_______________ 58, 448 40,914 -17,534 Salaries and expenses-special foreign currency program______________ 12, 500 12, 500 ____________-_ International fairs and exhibits ------------------------------------- 5,036 5,036 ------------- Acquisition and construction of radio facilities_______________________ 1,000 1,000 _____-____--. The Committee's decision to reduce the USIA's authorization re- quest was based in large part on the Agency's refusal to make its Country Pro-ram Memoranda and other planning information avail- able to the ommittee as requested. The following correspondence contains the Committee's request and the Agency's negative response based on a claim of Executive Privilege by the President. UNITED STATES INFORMATION AGENCY, Washington, D.C., March 16, 197g. Hon. J. WILLIAM FULBRIGIHT, Chairman, Committee on Foreign Relations, U.S. Senate. DEAR MR. CHAIRMAN : In response to your letter of March 1, I am enclosing herewith the President's directive dated March 15 from which you will note that I am unable to comply with your request for the USIA Country Program Memoranda and associated planning documents. I find that the material you request clearly falls within the scope of the President's directive. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/18: CIA-RDP74B00415R000600120003-6 My staff and I have carefully examined the so-called Country Pro- gram Memoranda and find that, for the most part, these are planning or working documents subject to subsequent discussion and final ap- proval. These documents are under constant review, and programs are changed in the light of changing developments in Washington and in the host countries. You will note from the President's directive that he wishes the Administration to be wholly responsive to Congressional requests sub- ject only to restrictions necessary for the proper functioning of the Executive Department. With this objective in view, I shall be happy to supply your Com- mittee with summaries of the approved country objectives together with a description of the activities proposed to implement them. Also, our key officers, including myself and the Assistant Directors for each geographic area, are ready to provide your staff with country-by- country briefings as well as being available at all times for questioning by you and your colleagues. Sincerely, FRANK SHAKESPEARE. TIIE WHITE HOUSE, WVash.ington, D.C., March 15,1972. MEMORANDUM FOR THE SECRETARY OF STATE, THE DIRECTOR, UNITED STATES INFORMATION AGENCY As you know, by a memorandum of August 30,1971 to the Secretary of State and the Secretary of Defense, I directed "not to make avail- able to the Congress any internal working documents which would disclose tentative planning data on future years of the military assist- ance program which are not approved Executive Branch positions." In that memorandum, I fully explained why I considered that the dis- closure of such internal working papers to the Congress would not be in the public interest. I have now been informed that the Senate Foreign Relations Com- mittee and the House Foreign Operations and Government Informa- tion Subcommittee have requested basic planning documents submit- ted by the country field teams to the United States Information Agency and the Agency for International Development, and other similar papers. These documents include all USIA Country Program Memoranda and the AID fiscal year 1.973 Country Field Submission for Cambodia, which are prepared in the field for the benefit of the agencies and the Department of State and contain recommendations for the future. Due to these new requests for documents of a similar nature to those covered by my August 30, 1971 directive, I hereby reiterate the posi- tion of this Administration so that there can be no misunderstanding on this point. My memorandum for the Heads of Executive Departments and Agencies, dated March 24, 1969, set forth our basic policy which is to comply to the fullest extent possible with Congressional requests for information. In pursuance of this policy, the Executive Departments and Agencies have provided to the Congress an unprecedented volume of information. In addition, Administration witnesses have appeared almost continuously before appropriate Committees of the Congress to Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : F 4-RDP74B00415R000600120003-6 present pertinent facts and information to satisfy Congressional needs in its oversight function and to present the views of the Administra- tion on proposed legislation. The precedents on separation of powers established by my predeces- sors from first to last clearly demonstrate, however, that the President has the responsibility not to make available any information and mate- rial which would impair the orderly function of the Executive Branch of Government, since to do so would not be in the public interest. As indicated in my memorandum of March 24, 1969, this Administration will invoke Executive Privilege to withhold information only in the most compelling circumstances and only after a rigorous inquiry into the actual need for its exercise. In accordance with the procedures established in my memorandum of March 24, 1969, I have conducted an inquiry with regard to the Congressional requests brought to my attention in this instance. The basic planning data and the various' internal staff papers requested by the Senate Foreign Relations Committee and the House Foreign Operations and Government Information Subcommittee do not, in- sofar as they deal with future years, reflect any approved program of this Administration, "but only proposals that are under consideration. Furthermore, the basic planning data requested reflect only tentative intermediate staff level thinking, which is but one step in the process of preparing recommendations to the Department Heads, and there- after to me. I repeat my deep concern, shared by my predecessors, that unless privacy of preliminary exchange of views between personnel of the Executive Branch can be maintained, the full frank and healthy ex- pression of opinion which is essential for the successful administra- tion of Government would be muted. Due to these facts and considerations, it is my determination that these documents fall within the conceptual scope of my directive of August 30, 1971 and that their disclosure to the Congress would also, as in that instance, not be in the public interest. I therefore, direct you not to make available to the Congress any y internal working documents concerning the foreign assistance program or international information activities, which would disclose tentative planning data, such as is found in the Country Program Memoranda and the Country Field Submissions, and which are not approved positions. I have again noted that you and your respective Department and Agency have already provided much information and have offered to provide additional information including planning material and fac- tors relating to our foreign assistance programs and international in- formation activities. In implementing my general policy to provide the fullest possible information to the Congress, I will expect you and the other Heads of Departments and Agencies to continue to make available to the Congress all information relating to the foreign as- sistance program and international information activities not incon- sistent with this directive. RICHARD M. NIXON. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/lf : CIA-RDP74B00415R000600120003-6 111 r. Fn NR SFLIKESPEARF,, Director, 17.8. Information Agency, Washington, D.C. IN 'MArcu 1, 1972. .lit MR. S71,AKESPhlARE: I am enclosing a copy of Mr. Ablard's letter of February 28 to Mr. Robert Dockery of the Committee stair concerning the status of the Country Program Memoranda prepared by the United States Information Agency. I understand from Mr. Ablard's letter that the Memoranda are regarded as "internal plan- ni ng or working documents" and as such, the Agency believes that "it would not be appropriate to provide these documents to the Committee." As you know, the "Agency in Brief 1972" publication describes this material in the following way: "'t'hese CPM's (Country Program Memoranda) are designed to integrate (7SIS planning and resource allocation with overall U.S. objections in the country. The CPM's encompass total Agency re- sources devoted to the country, including media products and ma- terials supplied from Washington." (p. 19) T believe this information would be of interest to all Members of the Committee and of particular assistance to them in connection with the Agency's authorization hearings, beginning March 20. In view of this, I am requesting that the Agency reconsider its decision and agree to make this information available to the Com- mittee. I should appreciate hearing from you on this matter at your earliest, convenience and, hopefully, no later than March 10. If the original decision is maintained, I should like to know what the .Agency's legal authority is for withholding this type of information 110111 lie Congress. Sincerely yours, J. W. FULBRIGIIT, Chairman. I1.S. INFoRMATIoN Ao],.NCY, Washington, D.C., Febrecary 25,1972. Mr. Iioh3RRT I )ociERY, ~1~taif Consultant, Committee on Foreign Relations,. United States ACenate. I) :Au Bore : In )Yell:nation for authorization hearings on March 20, you have requested that USIA furnish you Country Program Memor- anda and ITS1A Planning Papers. An evaluation of these documents reveals that they are substantially in the nature of internal planning or working documents which are in many cases unapproved and in a raw form. In most cases the CPM is not a final document as such but is an exchange of papers and proposals between the post and the area offices, with suggestions from other departments in Washington. They are, in a real sense, planning documents which are constantly under revi- sion as programs change and developments occur both in the country of* operation and in Washington. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :CSIA-RDP74B00415R000600120003-6 Accordingly, it would not be appropriate to provide these docu- ments to the Committee. However, we can provide you a summary of the approved country objectives, activities to implement them, and principal USIA audiences. Also, we can provide an oral briefing on a country-by-country basis to you and your staff colleagues, as well as for any Members of the Committee. Of course, the Assistant Directors for each geographic area will give testimony before the Committee which can include specific country objectives. Sincerely yours, CITARLES D. ABLARD, General Counsel and Congressional Liaison. The Committee finds this refusal to provide information pursuant to the legislative duty of oversight as set forth in the Legislative Re- organization Act particularly dismaying because first of all it comes from the Information Agency itself-an Agency which should fully appreciate the value of information in the decisionmaking process. The Agency's refusal raises serious doubts as to whether it has such an appreciation and leaves the impression that USIA is willing to supply the Committee and the Congress with only that information which supports one point of view. Such a practice is hardly conducive to building a reputation for a "balanced and objective information pro- gram" and is more akin to a straightforward propaganda effort. Equally dismaying is the all-encompassing nature of the Executive Privilege claim and USIA's implementation of it. Taken together these decisions raise the following considerations : (1) They are broad enough to preclude from Presidential review future requests by the Committee for information on USIA and its activities; (2) the effect of the decisions is to permit working level officials to determine what will and what will not be made available to the Committee by labeling the material requested "internal working document"; and (3) the decisions serve to foreclose the possibility of the Committee and its staff having access to information in the Execu- tive Branch that runs counter to an official policy position. The Committee finds these prospects uninviting, unacceptable and potentially destructive to the legislative process. The information contained in the Agency's Country Program Mem- oranda and other planning documents may provide a full and ade- quate justification for the $200 million authorization request. The Committee simply has no way of knowing. It was in effect asked to approve this request "in the blind." It could not do so. And in the absence of such information and justification, the Committee believes the taxpayers of the country ought to be given the benefit of the doubt. Accordingly, it recommends a substantial reduction-a reduction of $45 million in the USIA authorization request. If the Agency decides at a later date to furnish the information requested, the Committee of course would consider a supplemental authorization request. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1CIA-RDP74B00415R000600120003-6 The specific redactions recommended by the Committee. are an in- dication of its doubts and reservations about the size, and extent of USIA's media prog-ranrs with the exception of its information gird library centers and cultural exchange-related activities. All of these programs are, described below in detail from material provided by the Agency itself. The material is reprinted for illustrative purposes only. As far back as 19:3 the Committee, as a consequence of the work undertaken by the Hickenlooper-Fulbright Subcommittee, raised doubts about the media programs in its report "Overseas Information Programs of the United States." For example, with respect to the Voice of America program, the report stated : . The Committee, has paid much attention to a review of the scripts sent out by the Voice. It cannot rate many of them high in message value or purpose. Many of them might well have been omitted. (page 20) And, Even though presented with enthusiastic sincerity, the Committee was not convinced by the elaborate testimony and presrrrnptive evidence given by VOA personnel to establish numerical and other proof of foreign audience reception. Much of the data was of a speculative nature.. (page 21) With respect to the press and publications media services, the 1953 report carried the following observations: The Committee has received diverse comments on the press and publications program from all parts of the world, many of them critical. . . . There has been advocacy of the com- plete, abolition of the wireless file on the grounds of its rela- tively minor value and its competition with the regular com- mercial news service. (page 17) In contrast to the above, the Committee's 1953 report contained generally favorable comments about the information (library) cen- ters program and cultural exchanges: Irrforrnatiorr from all sources, including the Committee's own overseas observations, indicates that these [information] centers contribute effectively to the purposes of the informa- tion program. Former Directors of the information program testified to their value. Non-official observers abroad who comrnunicated their views to the Committee generally con- curred. (page 14) 'I'lie strength of the exchange-of-persons program appears to stem from diverse factors. The program enjoys a high prestige troth at home, and abroad and is therefore able to at- tract, the voluntary participation of leading citizens. It is iron-political and non-propagandistic in character so that it is acceptable in all parts of the non-Communist world. More than any other part of the program, exchanges are a two-way iuiderta,king which stimulate foreign participation. (page 15) Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 57 IA-RDP74B00415R000600120003-6 This year after 'three days of intensive hearings on the USIA authorization bill, many Members of the Committee continue to have serious doubts about the Agency's large-scale, media operations. These doubts arise from a belief that, in approving the Information and Educational Exchange Act of 1948, Congress never envisioned that any agency of the Government should become permanently involved in radio broadcasting, TV and motion pictures or press and publica- tions. The Government's entry into the information field was largely intended as an interim stop-gap arrangement until such time as the private communications and media services could expand their inter- national coverage. In fact, the 1948 Act directed the Secretary of State to reduce such Government information activities whenever corresponding private information dissemination if sound to be adequate. In this day of satellite communications and media services of every type, variety and description, it is difficult to argue that "private in- formation dissemination" is inadequate. And yet, the United States Information Agency continues to expand its media services. This year it planned to spend $94 million on these activities-about three times as much as it planned to spend on library and cultural programs. What seems to have occurred over the years is that USIA's media services have just "groomed." And instead of serving as a complement to the private media services, they may in fact be competing against them. If this is the case, there is no justification for it and the trend ought to be reversed. Hopefully, the United States Information Agency will give very serious consideration to this matter in the months ahead. Sec. 001 (a). Authorization of Appropriations This section authorizes appropriations to be made to the United States Information Agency for purposes of carrying out interna- tional informational and cultural exchange activities pursuant to the United States Information and Educational Exchange Act of 1948, the Reorganization Plan 8 of 1953, and the Mutual Educational and Cultural Exchange Act of 1961. USIA's justifications follow : The United States Information Agency seeks to promote a better understanding of the United States in other coun- tries. The basic legislative authority for USIA and its prede- cessor organizations is P.L. 402, enacted in 1948. It provides for the dissemination abroad of information about the United States, its people and policies. Among the means USIA uses to accomplish this purpose are radio broadcasting, information centers, libraries, per- sonal contact, lectures, book publication and distribution, press placement, magazines and other publications, motion pictures, television, exhibits, and English-language instruc- tion. Under the direction of the Ambassador and in coopera- tion with binational commissions where they exist. USIA offi- cers abroad also carry out the overseas functions of the De- partment of States' educational and cultural exchange programs. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 CIA-RDP74B00415R000600120003-6 58 HISTORY OF U.S. INFORMATION AGENCY APPROPRIATIONS, FISCAL YEARS 1954 THROUGH 1973 ESTIMATE [In millions of dollars[ Salaries and Special international expenses exhibition Amount Radio SFC I Amount SFC r constr. IMG 2 Grand total 1954--------------------------------- $84.2 --------------- --------------------------------- $84.2 1955------------ -------------------- 77.3 _ --------- $5.0 --------------------------- 82.3 1956-------------------------------- 87.3 --------- 5.0 ------------------------------ 92.3 1957--------------------------------- 113.0 ---------- 11.2 ------------------------------ 124.2 1958--------------------------------- 96.5 ---------- 15.2 ---------- $1.1 ---------- 112.8 1959-------------------------------- 101.7 ---------- 6.4 ---------- 14.8 $2.5 125.4 1960-------------------------------- 101.6 ---------- 6.1 ---------- 9.0 2.7 119.4 1961---------------------- ---------- 105.3 $3.0 8.9 $0.7 8.7 3.7 130.3 1962--------------------------------- 111.5 9.3 8.0 .3 10.7 1.5 141.3 1963--------------------------------- 123.1 8.5 7.6 .4 16.2 1.0 156.8 1964-------------------------------- 134.0 11-7 7.2 .5 12.1 .7 166.2 1965--------------------------------- 140.3 8.2 15.0 .4 2.0 ---------- 165.9 1966-------------------------------- 144.0 11.1 3.7 .2 26.2 ---------- 185.2 1967--------------------------------- 152.2 10.9 2.7 .4 6.5 ---------- 172.7 1968--------------------------------- 155.1 8.6 12.0 .4 18.2 ---------- 194.3 1969--------------------------------- 160.0 9.3 3.5 .4 -------------------- 173.2 1970--------------------------------- 169.7 10.8 2.9 ------------------------------ 183.4 1971--------------------------------- 172.1 13.0 4.0 .3 .6 ---------- 190.0 1972------------------------------- 179.0 13.0 3.4 .3 1.1 ---------- 3 196.8 1973 estimated------------------------ 181.7 12.5 4.7 .4 1.0 ---------- 3200.3 1 Special foreign currency program. Informational Excludes suppemental request program. 1972 and amendment in 1973 relating to January 1972 Pay Act and dollar devalua- tion. Estimate for 1973 includes proposed amendment of $1,552,000 for 7th United States-U.S.S.R. exhibits exchange. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :591A-RDP74B00415R000600120003-6 Ec?~o epo N-OU p = O N N nE' ..E O O..C fn 6d d,_ d W vi E o.~ y o?a c `o.o Etc 7~ N .NU OCp =O N O N ~-O w m ne`q~N? O T N ~ w~ GL dd. ~'E~mmN ? L c c nm ma c. m m.. N woy~~ - A ti m y ~ 9 0 E`"OUOa`~~ oL C?E~'d~ E o.=N.c dcoa mo9 E- w U N S .- vw~iaot d C v V N r N Q_>`oE E Nv?1i ??.ma Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 - CIA-RDP74B00415R000600120003-6 66 ANALYSIS OF AGENCY POSITIONS BY MAJOR ORGANIZATIONAL GROUPINGS AND APPROPRIATION FROM WHICH FUNDED 1971 1972 1973 Increase or actual estimate estimate decrease(-) Salaries and expenses:' USIS missions: Domestic----------------------------- 143 109 109 -------------- Overseas Americans _-_____________________ 1,137 1,091 1,086 -5 Local employees___________________________ 4,462 4,238 4,216 -22 ------------------------ --- Total, USISmissions ---------------------- 5,742 5,438 5,411 -27 Domestic___________________________________ 2,232 2,208 2,222 14 Overseas Americans ------------------------- 146 141 132 -9 Local employees____________________________ 1,159 1,178 1,178 _ Total, media services____________________ 3,537 3,527 3,532 5 Research, direction, and other services: Domestic-------- - ------------------------ 867 842 Overseas Americans____________________________ 3 Local employees------------------------------------------ 3 Total, Research, Direction and Other Services- 867 848 842 -------------- 3 ------------- 3 -------------- 848 -------------- Total, salaries and expenses: Domestic ----------- ----------------------- 3,242 3,159 3,173 14 Overseas Americans ------------------------- 1,283 1,235 1,221 -14 Local employees__________________________ 5,621 5,419 5.397 -22 Total, salaries and expenses________________ 10, 146 9,813 9,791 Special international exhibitions: Domestic --------------------------------------- 56 56 Overseas Americas_____________________________ 2 2 Local employees-------------------------------- 6 6 Total, special international exhibitions___________ 64 64 Grand total, USIA: Domestic _________________________ 3,298 3,215 Overseas Americans __________________ 1, 285 1,237 Local employees________________________________ 5,627 5,425 Total, USIA_________________________ ________ 10,210 9,877 9,855 -22 Subsection201(a) (1) (A). Radio Activities This section authorizes an appropriation of $36,485,000 for radio activities. The Administration requested $52,122,000 for these activi- ties according to its justification which follows : 79ie radio activities of the Agency consist of the operations of the Broadcasting Service (the Voice of America), the pro- duction and placement of radio materials by overseas mis- sions, and support to Radio in the American Sector of Berlin (RIAS). The Voice of America is now broadcasting in 35 languages. The projected weekly broadcast schedule as of June 30, 1.972, and June 30, 1973, is presented below. In addition to direct broadcasts. VOA prepares direct point-to-point feeds and recorded programs for placement on local stations overseas. The program operations of VOA include the management, planning and policy supervision of programs it broadcasts and/or distributes. The more important areas are (1) the centralized program service which produces VOA newscasts, news analyses, and features; (2) the language services them- 56 -------------- 2 ------------- 6 --------------- 3,229 14 1,223 -14 5,403 -22 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release-2001/11/16 : CIA-RDP74B00415R000600120003-6 61 selves, which edit and translate into foreign languages the material produced by the centralized program service, create original programs tailored to specific countries, broadcast programs in different languages, and prepare recorded 1na- terials for use by forei n radio stations; (3) the VOA studios and control plant in Washington and network traffic; and (4) overseas correspondents at Athens, Beirut, New Delhi, Bangkok, Hong Kong, Tokvo, Saigon, Munich, Belgrade, Abidjan, Lagos, Nairobi, Rabat, and Buenos Aires, and sub- sidiary centers in New York, Chicago, Los Angeles, Miami, Rhodes, Beirut, and Cairo. During 1972, broadcasting to East Asia has been reduced by 28 hours weekly : a reduction of 101/2 hours in Khmer to a total of 14 hours, and a reduction of 171/2 hours in Vietnamese to a total of 35 hours. In 1973, an additional 28 hours of broad- cast are planned as follows: (a) Initiation of seven hours in Uzbek; (b) An increase of seven hours in Ukranian fora total of 21 hours; and (c) An increase of 14 hours in Russian for a total of 70 hours. Estimated 1973 costs for VOA program operations are $25,372,000. The VOA manages a world-wide system of Government- owned or leased radio facilities, broadcasting over 47 trans- mitters in the United States and 76 transmitters overseas. Most of the Voice of America programs originate in Washington and are transmitted to the shortwave stations at Greenville in North Carolina, Dixon and Delano in California, and Bethany in Ohio, and the medium wave station at Marathon in Florida. The shortwave transmissions are then picked up by overseas relay stations which boost the strength of the signal and transmit it to the target area via short or medium wave, depending on the local situation and available facilities. Programs to Latin America are broadcast directly from fa- cilities in the United States. Most of the Arabic broadcasts to the Near East and North Africa emanate from the Rhodes Program Center for direct broadcast over the transmitters at Rhodes. Construction of the new Relay Station at Kavala in Greece is expected to be completed in July, 1972. The Kavala Station will take over the broadcast schedule currently being carried on the medium wave transmitter of the Thessaloniki Relay Station in March, 1972. In August, 1972, the shortwave oper- ation will be transferred to Kavala from Thessaloniki, at which time VOA operations of the Thessaloniki Station will be discontinued. USIS posts produce news and feature programs for place- ment on indigenous stations, promote VOA broadcasts, place on local stations VOA-produced package programs, and-in certain cases-produce radio program elements for broadcast by the Voice of America. USIS activities in Brazil and Mex- Approved'1 W 32001/11/16 : CIA-RDP74BOO415R000600120003-6 Approved For Release 2001/11/162CIA-RDP74B00415R000600120003-6 ico illustrate field radio programs. TJSIS Brazil produces and places two 30-minute programs each week. It also distributes eight VOA-packaged programs weekly. Approximately 185 radio stations in Brazil now use IJSIS-supplied materials each rut ith. ( I S I S Mexico produces and places 5-minute commentaries, two weekly half-hour programs, and a weekly 15-minute pro- grain on IJ.ti. scientific achievements. It also places 12 VOA- produced package programs on 29 stations and produces in- terviews and reportages for use by VOA. l IAS maintains a 24-hour schedule of broadcasting di- rected to East Germans. The station is directed by three career IJSIS officers work- ing with a top German Directorate, who themselves are radio well of significant stature in German radio and cultural cir- c1es, The total German staff is presently 594. Broadcast time amounts to 2-15 hours per week (in the morning and the eve- ning transmitters are divided to carry two contrasting pro- grams with longer periods on weekends). The station produces from its own resources about 90%% of its varied and sophisti- eated broadcast schedule ; the remainder coming from the VOA German feeds, and exchanges with the stations of the Federal Republic. RIAS is an associate member of the Asso- ciation of West. German State. Radio Organizations, and thus offers its programs to these stations in exchange for a signifi- cant amount of cost-free programming in return. Its main studios are in one building in Berlin, with a small studio in Bonn for its daily coverages from the Wrest Germain capital. The Berlin facilities include twelve studios, a major facility for recording large orchestras and variety programs; five mobile units for live coverage from around Berlin; and and the necessary administrative and technical control offices anti facilities. Its transmission facilities, located at its base in the southeastern section of the 1T.S. sector of Berlin, in- chide, two nrediunr-wave transmitters, two FAT amid one short- wave transmitter. To cover the heavily populated and indus- trialized southern area of the GDR, BIAS also operates one nleclium and one FAT transmitter in Northern Bavaria, near Hof. All BT.AS medium wave transmissions are continuously jammed by the GDP around the clock; short-wave and FAT are not, the former probably because listenership is small, and the latter bec:ntse jamming would disrupt too many of East Germany's ow ti broadcasts on nearby frequencies. 1972 and 1973 positions Fiscal year 1972 estimate Fiscal year 1973 estimate Ameri- Direct Support Direct Support RIAS _______ ___ 3 $3,418 $99 $3,517 $3, 515 $107 $3,622 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 63 BROADCASTING SERVICE DIRECTION, AND UNDISTRIBUTED COSTS This activity includes : (1) Certain central management functions of the Broadcasting Service, such as the Office of the Director and associated staffs and (2) An allocated por- tion of the home leave and transfer, training, and other world- wide support costs related to USIS staff involved in radio activities. A summary of FY 1972 and FY 1973 staff and resources for radio activities is presented below, followed by the weekly VOA broadcast schedule for those years. The amounts for radio activities include : A. Costs for the operation of the Broadcasting Service (VOA) ; B. The costs incurred by overseas missions to produce and place radio programs, and to promote Voice of America broadcasts; and C. Radio support for RIAS (Radio in the American Sec- tor of Berlin). SUMMARY OF RADIO ACTIVITIES [Dollar amounts in thousands[ Domestic support USIS missions 1972 estimate 1973 estimate 1. VOA program operations ------------------------------------------- 1, 180 -------------- $24, 920 $25, 372 2. Technical broadcasting operations------------------- 1,136 -------------- 18,459 19,496 3. Overseas missions activities-------------------------------------- 191 r 5, 965 16,058 4. Broadcasting Service direction, and undisturbed costs-- 33 10 1,410 1,492 Total, radio activities------------------------ s2,349 201 50,754 52,418 I Includes funds for RIAS. See above. 2 Position data are for 1973. In 1972, VOA has 2,344 positions. June 30, 1972 June 30: 1973 (Originations and repeats) (Originations and repeats) East Europe: Albanian -------------------------'-------------------------------------- 3:30 3:30 Armenian-------------------------------------------------------------- 7:00 7:00 Bulgarian-------------------------------------------------------------- 10:30 10:30 Czech-Slovak----------------------------------------------------------- 14:00 14:00 Estonian--------------------------------------------------------------- 7:00 7:00 Georgian--------------------------------------------------------------- 7:00 7:00 Hungarian ------------------------------------------------------------- 17:30 17:30 Latvian ---------------------------------------------------------------- - 7:00 7:00 Lithuanian------------------------------------------------------------- 7:00 7:00 Polish----------------------------------------------------------------- 14:00 14:00 Romanian-------------------------------------------------------------- 10:30 10:30 Russian---------------------------------------------------------------- 56:00 70:00 Serbo-Croatian--------------------------------------------------------- 7:00 7:00 Slovene---------------------------------------------------------------- 3:30 3:30 Ukrainian-------------------------------------------------------------- , 14:00 21:00 Uzbek--------------------------------------------------------------------------------- 7:00 World-wide English------------------------------------------------------- (86:30) (87:30) West Europe: Greek------------------------------------------------------------------ 3:30 3:30 Turkish---------------------------------------------------------------- - 3:30 3:30 Approved For Release 2001/1.1/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 64 Africa: French------------------- ------------ -- swanih -------------------------------------------------------- English to Africa World-wide English --------------- Subtotal Near East and North Africa: Arabic__.._- .... World-wide English----- ------- -------------._ June 30, 1972 June 30, 1973 (Originations (Originations and repeats) and repeats) 31:30 31:30 7:00 7:00 42:00 42:00 (45:30) (45:30) 77:00 77:00 (101:30) (101:30) Bengali --------------------------------- - -------------- 7:00 7:00 Burmese ------------------------ ------------------ - _- ----------- 7:00 7:00 Hindi . ----------------- ---- - -------- .. ------ --- 7:00 7:00 Urdu__-. -------------- ---------------------- ------- - ------------ 7:00 7:00 World-wide English -------------------------------- ..................... (54:15) (54:15) Subtotal Fast Asia and Pacific: Khmer------------- Chinese - --- -------- - -------------------------- --------------- Indonesian Korean------------------------------------------ ------------ 14:00 14:00 10:00 70:00 21:00 21:00 10:30 10:30 7:00 7:00 Russian-- -------------------------------------------- Thai---- 21:00 21:00 ----------- -------------------------- -------------- 3:30 3:30 Vietnamese----- V i e t n a m e s e - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------------------------------- --------------- 35:00 35:00 - World-wide English------ ------------------------------ --------------- (63:00) (63:00) Subtotal --------------------------------------------- --- ----------- 182:00 182:00 Latin America: Spanish-- --- --------------------- --------------- 49:00 49:00 Portuguese--- -------- - --------------------------------- ---- 21:00 21:00 World-wide English ---------------------------------------------- --- (14:00) (14:00) Subtotal ------------ ----------- --------__ --------------- 70:00 70:00 World-wide English --------------------------------------- --------------- 180:15 180:15 Total Broadcasts-______ _ --------------------------------------------- 810:15 838:15 1'7clisect;ov, 201(a) (1) (B) -Motion picture and television activities This subsection mithorizes an approlniation in the amount of $11,- 150,000 for motion picture and television activities. For these activities the Administration requested $15,928,000 as described in its l>resentation : Motion picture and television activities of the Agency in- elnde the operations of the International Screen Service (ISS) and distribution and production operations of over- seas missions. rRODU(TION, ADAPTATION, AND ACQUISITIONS The Screen Service produces, contracts for, and acquires films and television programs for use by the overseas mission iii support of Agency objectives. These programs consist of single film and TV documentaries as well as series. Certain [ TSI S posts also produce and/or adapt films and TV programs. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1665CIA-RDP74B00415R000600120003-6 The motion picture production activities of the Screen Service include the development of documentary films and the provision of newsreel services. In fiscal year 1972, work is proceeding on approximately 30 documentary films of varying length, including : "The Numbers Start With the River," a film on small-town America ; a continuation of the One Man series of 13-minute color documentaries on the lives and work of individuals (such as David Federle, Capitol Page Boy, and Wilson Riles, Superintendent of Schools, State of California) ; and films in the U.S. Newsreel services include short filmed coverage of special events for use in newsreels and television programs overseas. Television production by ISS includes both television series and special programs. Special programs treat signifi- cant developments, timely issues, and aspects of American life, including policy pronouncements by the President and other high officials of Government, visits of foreign leaders, space exploration, and inauguration of satellite ground sta- tions overseas. The use of satellite television programing is increasing. For example, last year four programs with Yugo- slav President Tito were transmitted to Yu;goslavaia during his visit to the United States. Other television production in- cludes : Vision USA, a 30-minute series presenting a view of what is happening in the U.S. today; an American literature series called The American Experience; a color production of the opera, The Consul; Correspondente Internacional, a series for Brazil; Ahora, a series for Latin American audi- ences; and Science Report, a monthly program shown regu- larly in 80 countries, on significant developments in Ameri- can science and technology. ISS also facilitates coverage by resident foreign corre- spondents of public affairs events and developments in this country, and cooperates with visiting- foreign television crews making special documentaries about the U.S. The Screen Service is also placing increasing emphasis on the acquisition of productions from sources outside the Agency. This year, 225 titles are expected to be acquired. At some posts, program materials provided by ISS are adapted for local use. Where local facilities exist and where it is to their advanatge, some posts produce motion picture and television programs locally. In the East Asia and Pacific area, for example, six overseas missions engage to some ex- tent in local motion picture and television productions. In Latin America, twelve countries are engaged in some such production-principally Brazil, Colombia, Mexico, Peru, and Uruguay. USIS posts distribute and exhibit, film and television pro- grams through local theatrical and TV outlets, through loans to private and governmental organizations, and by direct prof,,-ction by members of the TTSTS staff. The Screen Service facilitates the distribution and placement of materials at posts by recording programs in certain languages by pro- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 66 viding prints of materials, and by supplying posts with projectors. The Screen Service manages two television studios and related facilities in Washington. Color cameras and other color etluipmetrt are gradually being added to these facilities, enabling the Screen Service to produce selected program material in color for kinescope and videotape distribution. 'i'bis activity includes: (1) certain central management functions of the Screen Service, such as the Office of the Di- rector and associated staffs; and (2) an allocated portion of the home leave and transfer, training, and other world-wide support, costs related to USIS staff involved in motion picture and television activities. A snnnuai-v of FY 1972 and FY 1973 staff and resources for (notion picture and television activities is presented below. The amounts include: (a) costs for the operation of the Screen Service (IS5) ; and (b) costs incurred by overseas missions to distribute and produce motion picture and tele- vision materials. SUMMARY OF MOTION PICTURE AND TELEVISION ACTIVITIES ]Dollars in thousands] Domestic media USIS missions 1972 estimate 1973 estimate 1. Production, adaptation, and acquisition_____________ 121 155 $7,863 $7,914 2. Distribution and placement________________________ 36 r 401 4,932 5,045 3. Domestic technical facilities________________________ 60 ----------- ___ 1,361 1,365 4. Screen service direction, and undistributed costs 45 29 1,994 1,998 Total, motion pictures and TV activities-----.---. 262 r 585 16, 150 16,322 1973 estimate. 1972 estimate includes 1 additional position equivalent. Nvbsection't, 201 (a)(1) (C) Press and publicationv, activities This authorizes an appropriation of $17,914,000 for press and pub- lications activities. The Administration requested $25,592,000 as set forth below: The (tress and publications activities of the Agency cover a wide range of products and services generated both by the Press and Publications Service (IPS) and by overseas mis- sions. WLImELESs FILE PIZODTT(1TION, TRANSMISSION, ANI) DISTRIBUTION The Press and Publications Service operates a worldwide radio-teletype communications system known as the wire- less file. One of the Agency's main fast channels of regular communication with USIS posts, it conists of five regional transmissions sent five days weekly to 127 monitoring posts. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1%7 CIA-RDP74B00415R000600120003-6 The files, which run from 10,000 to 15,000 words daily, to each region, feature key U.S. Government statements and articles explaining American policy, government operations, and aspects of American life. Major sources of this material are the White House, the Congress, Departments of State and Defense, other federal agencies and private American institu- tions and authorities. The files also carry regional stories and interviews of particular interest to specific areas or countries and editorial wrapups. The files emphasize full textual treat- ment of official materials not available through commercial sources. Material sent in the wireless file is used by USIS posts in several different ways : for placement in indigenous media and post-produced publications ; for distribution of selected items directly to interested officials, heads of various organizations, and other key people ; and for timely back- ground information on major issues. Such background infor- mation is used by USIS and Embassy officers in their per- sonal contacts with editors, writers, government officials, and other opinion leaders. IPS produces six magazines, two of which-Dialogue and Problems of Communism=-are for worldwide distribution. Dialogue is a scholarly quarterly which consists primarily of reprints from U.S. journals. It presents a diversity of opinion and analysis on subjects of international interest, including urban problems, economic development, science and technol- ogy, and literature and the arts. Problems of Communism is a bi-monthly journal which features articles from scholars presenting in-depth analyses of developments in communist countries. Both magazines are reprinted in foreign-language versions. Three other IPS magazines carry substantive texts in for- mats emphasizing visual impact through quality photog- raphy and modern typography. American Illustrated, pub- lished monthly in Russian and Polish, is designed to present a balanced picture of American cultural and technological achievements. It is sold in the USSR and Poland under recip- rocal agreements which limit the number of copies sold to 60,000 in Russian and 30,000 in Polish. Topic, with a circula- tion of 45,000, is issued eight times a year in English and French for sub-Sahara Africa. It emphasizes aspects of the American scene which are significant to Africa as part of its focus on U.S.-African relationships. Al Majal, which is pub- lished eight times a year in Arabic in 19,000 copies, empha- sizes U.S.-Arab mutual interests and American cultural, sci- entific and social progress. Horizons, a monthly magazine in English for USIS posts in Southeast Asia, explains the United States and its policies, especially those most relevant to Southeast Asia. This 60,630- circulation magazine also provides a major source of material for similar one-country magazines published by USIS posts in Thailand, Viet-Nam, the Philippines, Nepal and Laos. Many posts prepare magazines of their own which are dis- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 ;6RIA-RDP74B00415R000600120003-6 tributed in the countries where they originate. A few cir- culate in other countries as well. Included in this category are In forma.tiorr and I)ocvi ents, a 94,(100-circulation semi- monthly current affairs magazine published by I SIS Paris and distributed in France and in French-speaking countries of Africa, and World Today, produced in Chinese by USIS Hong Kong and circulated in 113,600 copies in East Africa. Examples of other new post-produced publications include Slian in India, a monthly in English with a circulation of 130,000; sheen hrontlers in Iran, a monthly in Farsi dis- tributed in 2:I,500 copies; A5'aber in Mexico, a Spanish- language monthly with a circulation of 19,200; and the Japanese-language Trends in Japan, with a highly-targeted circulation of 7,120. 1 I'S supports post-produced periodicals by providing edi- torial and technical assistance, by furnishing paper and other supplies when printed locally, and-in some cases--by print- ing the periodicals at one of its three overseas printing plants. OTHER PRESS ACTIVITIES, PAMPHLETS. LEAFLETS, AND PHOTOS Activities included here cover a variety of products and services provided by the Press and Publications Service and by overseas posts. Feature articles-less timely than material carried in the wireless file, but covering the same broad range of subjects related to Agency themes-are regularly produced by IPS and sent to hiSIS posts by air. USIS posts use these feature materials primarily for placement in local magazines and periodicals. They are also placed in USIS post publications and used in connection with seminars and discussion groups. IPS furnishes posts with picture stories and news and feature photos for placement in local publications, and also provides posts with press supplies and equipment required for their local publications. Pamphlets and leaflets are prepared and printed both by IPS and by overseas missions. Pamphlets are on subjects such as the American economy, arts, government, science, and history. PRESS SERVICE PRINTING FACILITIES Major printing facilities of IPS are located at Regional Service Centers in Manila, Beirut and Mexico City. Prin- cipal IPS publications, as well as many of the periodicals and pamphlets produced by posts, are printed at these centers. PRESS SERVICE DIRECTION, AND UNDTSTRHBITTED COSTS This activity includes: 1) certain central management fiurctions of the Press and Publications Service, such as the Ofli(c of the Director and associated staffs, and the servicing of. all operational telegraphic traffic for the Agency (1973 estimate, ~1,263,000) ; and 2) all allocated portion of the Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 69 home leave and transfer, training and other world-wide costs related to USIS staff involved in press and publications activities. A summary of FY 1972 and FY 1973 staff and resources for Press and Publications activities is presented below. The amounts include: a) costs for the Press and Publications Service (IPS) ; and b) costs incurred by overseas missions to distribute and produce press and publications materials. SUMMARY OF PRESS AND PUBLICATIONS ACTIVITIES [Dollars in thousands] Domestic media USIS 1972 estimate 1973 estimate 1. Wireless file production, transmission, and distribution- 83 335 $5, 868 $6, 029 2. Periodicals--------------------------------------- 89 1362 7,336 7,472 3. Other press activities pamphlets, leaflets, and photos__ 124 1 698 9, 511 9,669 4. Press service printing facilities_____________________ 348 -------------- 1,694 1,954 , 5. Press service direction, and undistributed costs ------- 58 72 3,925 3 906 Total, press and publications activities______________ 702 11,467 28,334 29,030 - ---------------------- 1 Position equivalents are for 1973. In 1972 the estimate for overseas missions position equivalents for periodicals is 366; for other press activities, 705; for all press and publications activities, 1,467. Subsection 201(a) (1) (D). Centers and Related Activities This subsection authorizes an appropriation of $29,623,000 for over- seas information centers and related activities. This is the full amount requested by the Administration in its presentation which follows : The Agency's centers and related programs span a wide range of programs, products, and services provided by the Information Center Service (ICS) and by USIS posts. These include book programs, multimedia program develop- ment, support for binational centers, and the operation and support of overseas information centers and related activities. The Agency supports a variety of commercial publishing programs designed to promote the widest possible dissemina- tion abroad of books which illustrate important aspects of American life and culture. Special emphasis is placed on those titles which describe American political, economic, so- cial, and philosophical development. The support of the Agency may take several forms, such as obtaining foreign-language rights ; absorbing translation and promotion costs; giving sufficient support to decrease the retail price; or agreeing to purchase part of the foreign edi- tion. American publishers are assisted in the production of special low-priced export editions in English for sale abroad by local book dealers. For example, by an arrangement with Yugoslav publish- ers, English reprints of 20 titles in the American studies cat- egory have been produced and sold in Eastern Europe. In the India textbook program the Agency, in 1971, financed Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 7CCIA-RDP74B00415R000600120003-6 publication of 59 titles. The texts, selected by representatives of the Indian and American Governments, are sold to Indian students for one,-fourth of the. II.S. price. l'raIlslated editions are prepared by qualified residents of the countries in which the languages are used and published by reputable publishers in those countries. Among the regu- lar animal output in the book publishing program at present arc about -12 titles per Year in French for distribution throughout French-speaking Africa; 18 titles in Arabic for sale throughout the Arabic-spcalnng area ; 22 titles in Serbo- Croatian for sale to Yugoslav students; and Its titles in Spanish for Latin American audiences. Most, editions arc unabrridged, but some topical books are condensed to reach a larger audience. A numbea? are published in simplified English versions for overseas readers. In the Agency's Ladder Book Series, for example, books are adapted to vocabulary levels from 1,000 to 5,000 high frequency Eng- lish words, and published by U.S. publishers. In addition to its publishing programs, the Agency distri- bnles abroad new books donated by American publishers. Through the IJSIS posts, these books are given to selected foreign recipients which include government officials, school administrators and teachers, university faculties and libraries. Over the last two fiscal years 4.2 million donated books have been distributed in this mnanner. The Information Center Service is exploring the develop- ment of programs on important subjects, using a number of media. (exhibits, publications, films, other audio-visual ma- terials, speakers, etc.) in combinations which complement and reinforce the information and impressions being communi- cated. In addition, regular exhibits and components will con- tinue, to be provided to meet post needs. Seminars and lectures will be used in combination with exhibits and multimedia programs. Binational Centers are institutions (jointly sponsored by American residents and nationals of the host countries) oper- ating for the purpose of disseminating information about the United States and the host country, and of fostering cultural exchange and better mutual understanding. They conduct academic and cultural programs, and many emphasize the teaching of English to nationals of the host country. The Agency provides support to 127 of these institutions, 100 of which are in 19 Latin American countries. The kind and extent of support varies from center to center, but could include : 1) Grants made by USTS posts for program ma- terials, to help meet local operating expenses, and to finance special projects; 2) Grants to selected binational centers to assist them in acquiring adequate space for their activities; 3) The provision by ICS of American books and publications, Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 71 and supplies and equipment not available locally; 4) The de- velopment and supply of English-teaching materials by ICS for the extensive English-teaching programs run by the bi- national centers. These materials give accurate information on American life, ideas, and political and economic systems. ICS publishes the English Teaching Forum, a bi-monthly professional journal, with a circulation of around 75,000; 5) The assignment of Agency personnel to assist in the man- agement of the centers. In Latin America, for example, 43 Americans are assigned to 38 selected centers. MISSION INFORMATION CENTER OPERATIONS, RELATED ACTIVITIES AND SUPPORT The activities included in this section relate primarily to the operation of the Agency's 164 information centers and reading rooms overseas. USIS posts rent, maintain and operate these centers and reading rooms, which are the focal points for a variety of re- lated activities. These include the operation of exhibits ; the promotion of English teaching by conducting classes and seminars, and providing textbooks, supplies and other sup- port to local institutions offering English language instruc- tion; the selection of publications for use in libraries and for presentation to institutions and carefully selected key opinion leaders; conduct and support of programs that pro- mote all aspects of American life and culture through semi- nars, conferences, lectures, concerts, and art exhibitions; and the encouragement and assistance to foreign universities in establishing courses in American studies. The Information Center Service provides materials, supplies and equipment to support the posts in these activities. In addition, the Center Service advises posts on the contents and program relevance of books considered for use i.n libraries and for presentation; and on the whole range of center related activities. CENTER SERVICE DIRECTION, AND UNDISTRIBUTED COSTS This activity includes : 1) certain central management functions of the Information Center Service, such as the Office of the Director and associated staffs; and 2) an allocated por- tion of the home leave and transfer, training, and other world- wide support costs related to USIS staff involved in centers and related activitie~ A summary of FY 1972 and FY 1973 resources for centers and related activities is presented below. The amounts in- clude: a) costs for the operation of the Information Center Service (ICS) ; and b) costs incurred by overseas missions for the support of center operations and related activities. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 72 SUMMARY OF CENTERS AND RELATED ACTIVITIES [Dollars in thousands[ Domestic media USIS 1972 estimate 1973 estimate. 1. Book programs ----------------------------------- 32 188 $4,759 $4,780 2. Multimedia program development -_-------------- 52 -------------- 1,163 1, 134 3. Binational center support--__ - 26 r 127 4,384 4, 278 4. Mission information center operations, related activi- ties and support ----- --------------------------- 79 r 1,348 19, 435 20, 354 5. Center service direction, and undistributed costs ------ 22 87 3,788 3,736 Total, centers and related activities 211 r 1,750 33,529 34, 282'; 1973 position equivalents. I n 1972, position equivalents are 126 for binational center support, 1,375 forcenter operations and support activities, and 1,776 for all centers and related activities. Subsection 201 (a) (1) (E). Program direction, and general support, shared administrative expenses, and research and assessment This subsection authorizes an appropriation of $40,914,000 for pro- gram direction, general support, shared administrative expenses and research and development activities. For these purposes, the Admin- istration requested $58,448,000. Its presentation follows : The Agency's central management functions, both domestic and overseas, are grouped under this heading. Program and policy direction are carried out by the Di- rector, by the Office of Policy and Plans, by Area Directors and their staffs, and by USIS officers supervising country programs. The Director and his Deputy are responsible for the overall planning and direction of the Agency's program. In addition to the Director's immediate staff, the Office of the Director in- cludes an Executive Secretariat, an Operations Center and a Resource Analysis Staff. The O fflee of Policy and Plans, under the Director's guid- ance, formulates information policies for the Agency. The Office obtains policy guidance from the White House and the Department of State, and maintains regular contact with other agencies of Government and private organizations. It provides basic themes and program emphases for the oper- ating elements of the Agency and coordinates media output. it provides professional expertise on specialized topics such as national security and science. The Office undertakes plan- ning in support of executive decisions and reviews plans of overseas missions and other Agency elements to assure that operations are consistent with policy objectives and priorities. This Office also operates centers for foreign correspondents in New York and Washington, D.C., to assist newsmen from abroad in reporting accurately on the American scene. The centers offer a reference service, aid foreign journalists in Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/19] CIA-RDP74B00415R000600120003-6 arranging interviews of government officials, and provide photographs and background materials. Assistant Directors for the Geographic Areas supervise the Agency's programs in or directed to countries in their re- spective areas. Program Direction by Overseas Staff's. In addition to the Program and Policy Direction provided by the domestic of- fices, USIS Public Affairs Officers and members of their staffs provide direction in the field for 109 country programs in- volving operations at 192 posts. The Agency also provides a small staff to assist the members of the U.S. Advisory Commission on Information. The staff prepares program materials for the Commission's quarterly reports to the Director of the Agency and for reports to Congress. DIRECT ADMINISTRATION AND OTHER SUPPORT Included in this section are the activities of several domestic elements-the Offices of General Counsel, Public Information, Security, Personnel and Training, and Administration-and of USIS staff members when engaged in the administrative functions required by their country programs. The O face of the General Counsel conducts the legal affairs and Congressional relations of the Agency. It advises the Director and other Agency officials on the meaning and intent of laws, executive orders, international agreements, and de- cisions of law which affect the Agency's operations; on the legal authority concerning the Agency ; and on legal implica- tions of proposed activities. The Office represents the Agency in hearings arising on disputes on contracts, equal employment opportunity, and licensing. It also secures necessary rights clearances for the Agency's programs. The Office of Public Information responds to questions from the American public concerning the purposes and oper- ations of the Agency; prepares and issues news releases on appropriate activities, policies, and personnel actions; pre- pares the semiannual report to Congress ; publishes a house organ ten times a year; and conducts public tours of the Voice of America studios. The Office of Security directs and carries out all Agency security operations involving personnel, physical, and docu- mentary security matters. As the investigative arm of the Agency, it evaluates and determines whether applicants for employment and prospective Agency contractors meet the security standards of the Agency, and conducts investigations and makes recommendations in all security matters. The Office of Personnel and Training is responsible for the development and application of Agency domestic and foreign service personnel policy covering the recruitment, training, assignment and career development of Agency employees. The Office of Administration provides central administra- tive services to the Agency domestically, and maintains ar- rangements with the Department of State for reimbursable administrative support services to the Agency's overseas op- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : C 4-RDP74B00415R000600120003-6 orations. The central administrative services supplied include : budgeting, fiscal operations, emergency planning, contract and procurement, central management, automatic data pro(-, essing, property management, communications and records, travel and transportation arrangements, reproduction serv- ices, and certain field services. Direct Administrative Servieinq by Overseas Missions. Certain administrative costs and servicing functions are pro- vide(i directly by ITSIS overseas missions in support of their country programs. Included in this category are rents, utili- ties, and maintenance of residential and non-residential space; certain communications charges; procurement of miscellane- ous supplies, equipment, and furnishings; costs for maintain- ing general purpose vehicles; and the staff time required of TTSIS personnel to furnish administrative services. 1 summary of FY 1972 and FY 1973 staff and resources for program direction and general support is presented be- low. The amounts provided include: a) costs of central man- a(,,ement functions provided by domestic element ; and b) overseas missions costs for direction and support, including allocated positions of home leave and transfer, training, and other world-wide support costs for staff engaged in these activities. SUMMARY OF PROGRAM DIRECTION AND GENERAL SUPPORT 1972 1973 1972 and 1973 estimate positions (thousands) estimate (thousands) Program and policy direction- domestic program and policy direction: Office of the Director--- - ------------------------------- Offi f P l 41 $874 $868 ce o o icy and Plans__ _.________________ ------------------ Offi f 48 1 147 1 129 ces o the Area Directors------------------- U S Ad is C i i 102 , 2,504 , 2 502 . . v ory omm ss on on Information________________________ 3 89 , 89 Total, domestic program and policy direction ------------------- Pro ram di ti b 194 4, 614 4 588 g rec on y overseas staffs -------------------------------- 1466 7,046 , 6,961 Total, program and policy direction- -------------------------- 660 11,660 11,549 - -_: Direct administration and other support--direct domestic support: Office of General Counsel ___--______________________ __________ Offi f P 19 381 380 ce o ublic Information ------------- ----------------------- Offi 9 196 913 ce of Security________ __ ____________________ -------------- Off 59 1,422 458 1 ice of Personnel and Training-------------------------------- Off f A 126 2,315 , 2 276 ice o dministration---------------------------------------- 399 7,659 , 7,657 Total, domestic support ____--------------------------------- Di t d 612 11,973 11 964 rec a ministrative expenses of overseas missions__________________ 1 621 14,640 , 14, 359 Total, direct administration and other support------------------ 1,233 26, 613 26,323 Total, program direction and general support ------------------- 1,893 38, 273 37, 872 1 1973 estimate. The estimates for 1972 position equivalents for program direction by overseas staffs is 470; and for direct administration for overseas staffs, 633 position equivalents. ADMINISTRATIVE SUPPORT (FROM DEPARTMENT OF STATE) The Agency reimburses the Department of State fora share of the cost of the Department's overseas administrative. opera- tions. The reimbursement is based on the administrative sup- port provided ITSIS posts by the Department, both here and abroad. The FY 1973 estimate for the reimbursement is $20,483,000. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/167r,CIA-RDP74B00415R000600120003-6 The administrative servicing to be furnished to USIS posts by the Department in 1973 includes : (1) Communica- tions, primarily telegraphic traffic and pouching, at an esti- mated cost of $3,257,000; (2) Procurement, contracting, and other general services such as building operations, vehicle operations and maintenance, shipping and customs clearance, and the furnishing of administrative supplies, $4,962,000; (3) A variety of other administrative support services includ- ing budget and fiscal, personnel, security, medical, and lan- guage and area training, estimated to cost $4,762,000 in 1973; and (4) The Agency's share of the cost for the communica- tions, procurement, and other services used directly by the Department of State's shared administrative support opera- tion overseas, $6,953,000. The Department also provides administrative support for the Agency's radio relay stations, radio program centers, and regional press centers overseas ; and furnishes several services in support of Agency operations in the U.S., such as translation and health room services. A summary of FY 1972 and FY 1973 requests for Admin- istrative Support is presented below. SUMMARY OF ADMINISTRATIVE SUPPORT [From Department of State] Fiscal year Fiscal yye73 1972 1 estimate estimate Support for overseas missions: 1. Communications--------------- --- ------------------------------------ $3, 133 $3, 257 2. Procurement, contracting, and general services----------------------_------ 4,738 4,962 3. Other support for posts---------------------------------------------------- 4,606 4,762 4. Administrative operations-------------------------------------------------- 6,576 6,953 -------------- support for overseas missions----------------------------------------- Total 19,053 19,934 , Support for other agency operations ----------------------------------------------- 1,166 1,238 Deduct reimbursements ---------------------------------------------------------- -659 -689 Total, direct obligations, administrative support ------------------------------- 19,560 20, 483 RESEARCH AND ASSESSMENT The Agency systematically examines the effectiveness of its programs to ensure that they serve USIA objectives with maximum efficiency. This evaluation function is carried on primarily by the Office of Research and Assessment (IOR), which includes research, media reaction reporting, inspection and audit of overseas operations, special evaluations and analyses, the Agency library and historian ; and by research activities of overseas posts. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 .CIA-RDP74B00415R000600120003-6 SUMMARY OF RESEARCH AND ASSESSMENT ACTIVITIES [Dollar amounts in thousands] 1972 and 1973 positions 1972 estimate 1973 estimate Office of Research and Assessment 1. Research studies_._ ---------- 71 $2,073 $2 053 2. Inspection and audit ____________________________ 15 502 , 474 3. Agency library- _.__ __-- 37 604 604 4. Direction and support__________________________________ 21 555 526 Total, Office of Research and Assessment-------------------- 144 3, 734 657 3 Research activities of overseas missions ...-_- -__ 55 1,015 , 935 Total, research and assessment activities ------- _- _----------- 199 4,749 4,592 Sec. 201 (a) (2). 8peeia77 foreign currency program This subsection authorizes an appropriation of $12,500,000 in for- eign currencies owned by the United States Government and deter- mined to be excess to the normal requirements of the United States. This amount was requested by the Administration. Its presentation follows : The Agency's special foreign currency appropriation, to- gether with the balances available from prior years is used for payments in U.S.-owned foreign currencies in those countries where the Treasury Department has determined that the supply of such currencies is excess to the normal requirements of the I`.S. Government. For 1973, these "excess" countries are Burma, Guinea, India (and Nepal), Israel, Pakistan, Poland, Tunisia, the Arab Republic of Egypt, and Yugoslavia. The Agency will continue to make full use of foreign currencies to meet local program expenses in these countries in 1973. The 1973 request is for $12.5 million. $500 thousand less than appropriated for 1972. This amount would permit con- tinuation of the. 1972 program in 1973 at approximately the same levels, and would provide for the built-in cost changes in wages, services, and maintenance of facilities. Positions funded for this account, in 1973 would remain unchanged at a total of 994 local employees. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :7CIA-RDP74B00415R000600120003-6 SALARIES AND EXPENSES (SPECIAL FOREIGN CURRENCY PROGRAM) --SUMMARY OF AVAILABILITY AND OBLIGATION REQUIREMENTS Comparative Available transfers Less from Actual or to (-) or Total actual or Carryover to prior estimated from dollar obligating estimated subsequent years, appropriation appropriation authority obligations years Fiscal year 1971: Excess currency countries--____ $747, 277 $13, 000, 000 -$1, 590, 600 $12,156, 677 559 23 $10, 936, 796 3 630 $1,219,881 19 929 Restricted currency countries __- 23,559 --------------------------- , , , Total, 1971 actual___________ 770,836 13,000,000 -1,590,600 12, 180,236 10,940,426 1,239,810 Fiscal year 1972: Excess currency countries------ 1,469,881 13, 000, 000 -1,471,363 12, 998, 518 12, 471, 797 526, 721 Restricted currency countries ___ 19,929 _______----- _---- _______ 19,929 10,650 9,279 Total, 1972 estimate--------- 1,489,810 13, 000, 000 -1,471,363 13, 018, 447 12, 482, 447 536, 000 Fiscal year 1973: Excess currency countries------ 776,721 12, 500,000 -------------- 13,276,721 279 9 13,276,721 279 9 ------------ Restricted currency countries--- 9,279 --------------------------- , , -_______-_-- Total,1973estimate 786,000 12,500,000 -------------- 13,286,000 13, 286,000 ------------ I Includes $403,101 in 1971 and $250,000 estimated in 1972 and 1973 resulting from the recovery of prior year obligations. Note: An analysis showing the requirements for funding continuing 1972 programs in 1973 under the Special Foreign Currency appropriation appears with the Leadoff tab statement for the regular Salaries and Expenses appropriation. Sec. 201(a) (3). Special international exhibitions This subsection authorizes appropriations of $5,036,000 for inter- national exhibitions and fairs pursuant to the authority contained in the Mutual Educational and Cultural Exchange Act of 1901 as set forth in its presentation : The U.S. Information Agency directs and coordinates cer- tain government-wide activities pursuant to the provisions of this Act under Executive Order 11034 of June 25,1962. Funds for the program are appropriated to the Agency on a no-year (available until expended) basis and may be allocated in part to other agencies for conduct of collateral activities. The program conducted under these authorizations is cur- rently focused on East Europe, the Soviet Union, and Berlin. The topical, rather than purely commercial, character of the exhibitions presented under this program extends its appeal to virtually all audiences. The program involves the develop- ment and presentation of exhibitions at international fairs and other selected locations, and special exhibitions circulated in accordance with cultural exchange agreements or ad hoc arrangements. The exhibits include, in addition to various aspects of American life and culture presented in American environments, seminars conducted by American specialists eminent in the particular exhibition's theme ; bi-lingual American guides ; libraries of publications pertaining to the theme; quality brochures for mass distribution; extensive coverage by other Agency media such as VOA; invitational press previews; guided tours for VIP and special groups. The exhibitions generate extensive local press, TV, radio, and newsreel coverage. The Department of Labor, using funds allocated by the Agency, presents labor exhibits and seminars independently, and at international fairs, often in conjunction with Agency exhibitions. In these presentations, American experts discuss 76-616 0-72-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 78 industrial safety and hygiene, manpower, training, and simi- lar subjects with their host country counterparts. These pro- grams are coordinated closely with the Agency so as to comple- ment. ITSTS country plans. The 1973 .program request totals $5,030,000, including the budget amendment to be proposed. It provides for eight ex- hibitions at international fairs in Berlin and five countries of Eastern Europe, three showings in the. USSR of the Re- search and Development Exchange Exhibit, completing the scheduled six showings which began in FY 1972, and seven reshowings in Romania and Poland of - former USSR ex- change exhibits. The amount of $1,552,000, projected as a budget amendment, is included in the request for advance costs to prepare and staff two showings for a new exhibition anticipated under the pending TT.S./USSR Cultural Ex- change Agreement for 1972 and 1973. A balance of $1,798,000 will be requested in FY 1974 for this exhibit to complete the showing schedule, bringing total two-year funding for the project to $3.350.000. The availability of FY 1973 funds will assure an exhibition staffed and ready for opening by May 1973. Without the funding in FY 1973, some 12 months would elapse before another exhibition could be presented following the last showing of "Research and Development" in the USSR.. Negotiations for the new agreement are scheduled for March, 1972. The Labor Mission allocation program provides for semi- nars at four international fairs in East Europe and four circulating exhibits to be, shown at several sites in Yugoslavia, Argentina, Central America, and the Arabian Peninsula. A summary of requests for these programs is presented below. SPECIAL INTERNATIONAL EXHIBITIONS-DOLLAR AND SPECIAL FOREIGN CURRENCY ACCOUNTS [Dollars in thousands] 1972 and 1973 positions 1972 estimate Proiects/ Projects( American Local showings Amount showings Amount A. Fairs and exhibitions-U.S. Information Agency: r 10 $1 717 2 10 $1,582 , 1. Trade fairs ----------- ----------------------------- 2. Reshowing of exchange 7 443 7 477 exhibits in East Europe ------ -----_-_-___------- 3. U.S.S.R. exchange exhibits: 3 1 556 3 738 , (a) 6th series ___------------------------------ 2 1,552 (b) 7th series--- --------------------------------------------------- 4. Staff and general operating 1 218 1,245 , 58 6 costs_____ --- Total, fairs and exhibi? 934 22 6 20 4 5,574 , 58 tions-_-__------ B. Labor missions-Department of 6 ------------ 8 223 8 L b 239 or -__-_------------ ---- a C. Osaka World's Fair -------- ----------- ------------------- 3 ---------- Deduct:reimbursementsand _1 --______ -777 504 _ , balances applied----------------------- -------------- - ---- Total, appropriation and request ____ -_-_- 3,706 ------------ 5, D36 Represents 7 exhibitions occurring in fiscal year 1972 and 3 projects requiring advance funding. 2 Represents 8 exhibitions occurring in fiscal year 1973 and 2 projects requiring advance funding. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : JA-RDP74B00415R000600120003-6 Sec. 201 (a) (4). Acquisition and construction of radio facilities This subsection authorizes an appropriation of $1,000,000 for radio construction, repair and engineering research. This amount was re- quested by the Executive Branch as set forth in its presentation : This authorization of appropriation provides funds on an available-until-expended basis for use in the continuing Agency program to improve the capabilities of VOA's world- wide broadcasting system. The Kavala Relay Station is the only major project cur- rently active. Construction is continuing on this $28,000,000 project. The medium wave facility is expected to be completed and on-air in March 1972. The shortwave portion of the sta- tion is expected to be completed by July 1972 with an antici- pated on-air date of August 1, 1972. Funds in the amount of $1,000,000 are requested in FY 1973 to provide $900,000 for the continuing program of major im provements, replacements and repairs to maintain and im- prove the efficiency of existing facilities; and $100,000 for the engineering research program for improvement of broadcast- ing techniques and facilities components. The maintenance and repair request includes projects that range in individual cost from under $10,000 to $160,000, and involve most of the VOA Relay Stations. The research funds are requested to con- tinue ionospheric propagation research. The 1972 and 1973 fund requirements within this appro- priation are shown below. It Purpose 1972 estimate (thousands) 1973 estimate (thousands) Major construction projects: Greece construction (Kavala)_________________________________________________ $1,043 -------------- Other major construction projects--------------------------------------------- 380 -------------- Total, major projects- ------------------------------------------ 1,423 -------------- Engineering research____________________________________________________________ 167 $100 M ' ajorimprovements, repjacementsand repairs_____________________________________ 1 2 ,6 8 900 Total, funds____________-------------------------------------------------- Less balances applied--------------------------------------------------------- 3,218 -2, 118 1,000 ------------- Appropriations enacted and requested_______________________________________ 1,100 1,000 Sec. 202. Providing certain basic authorities Section 202 of the proposed legislation according to the executive branch would amend Title VIII of the United States Informa- tion and Educational Exchange Act to authorize specific items by adding new sections 804 and 805. Annual appropria- tion acts of the Agency have invariably included items which were not authorized in substantive legislation. Both the Standing Rules of the Senate and the Rules of the House of Representatives make such substantive legislation in an appropriation act subject to a point of order (Rule XVI-2 of the Standing Rules of the Senate and the Rules of the Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16: CIA-RDP74B00415R000600120003-6 House of Representatives make such substantive legislation in an appropriation act subject to a point of order (Rule XVI-2 of the Standing Rules of the Senate and Rule XXVI-2 of the Rules of the House of Representatives. Therefore, the proposed legislation is, for the most part, a codification in. basic legislation of administrative authori- ties which have regularly been made available in annual ap- propriation acts. In general, the proposals are identical with the language regularly included in such appropriation acts and do not constitute any new authority. Sec. 804(7). This subsection, described below, is similar to that included in the Agency appropriation acts since the establishment of the Agency in 1953 and does not constitute any enlarge- ment of existing Agency authority. The language authorizes the Agency to employ aliens abroad for service in the United States related to translation or narration. For example, it may not be possible to find in the T Jnited States citizens who have the proper accent or who are familiar with the up-to-date idiom of certain languages or dialects. In such instances the Agency call recruit and employ qualified narrators and translators directly from abroad. No new authority. Sec.804(2). This subsection is complementary to subsection 804(a) and simply authorizes the Agency to pay travel expenses of aliens employed abroad and their dependents to and. from the United States and their countries of residence. No new authority. Sec.804(3). Agency appropriation acts have regularly included au- thority similar to that proposed in subsection 804(c) for en- tertainment within the United States. Under the proposed languages, expenditures for entertainment are authorized only when and to the extent specifically provided for in an appropriation act. No new authority. Sec. 80.E (.) . This subsection authorizes the Agency to secure liability insurance on official vehicles operated abroad. It is common practice for Embassy vehicles, both State Department and USIA, to carry liability insurance. In many foreign coun- tries such insurance coverage is mandatory under local law. The Comptroller General has ruled consistently that ap- propriated funds may not be expended, in the absence of statutory authority, to purchase insurance to cover the Gov- ernnient's possible tort liability (19 C.G. 798). No new authority. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CA-RDP74B00415R000600120003-6 Sec. 804 (5). Agency appropriation acts have regularly included author- ity to settle tort claims in the manner authorized in the first paragraph of Section 2672 as amended, of Title 28 of the United States Code, when such claims arise in foreign coun- tries. Without such authority only administrative settlement of domestic tort claims would be permitted because subsec- tion (k) of Section 2680 of the Tort Claims Act excludes any claim arising in a foreign country. No new authority. Sec. 804 (6). This subsection, which is similar to authority regularly contained in Agency appropriation acts, permits the Agency to contract with aliens abroad. The nature of the Agency's program involving such varied activities as exhibits, lectures, periodical distribution, etc. requires the use of local contrac- tual services. Specific statutory authority is necessary for employment of personal services by contract as a result of numerous deci- sions of the Comptroller General (25 C.G. 579; 26 C.G. 468) to the effect that all. employment of personal services must be by appointment in accordance with Civil Service and Classi- fication laws or the Foreign Service Act of 1946 in the ab- sence of statutory authority for employment by contract. No new authority. Sec. 804 (7). The Comptroller General has ruled (3 C.G. 828; 18 C.G. 238), that in the absence of specific statutory authority, ap- propriated funds cannot be used to purchase ice or drinking water. Agency appropriation acts have regularly contained such authority. No new authority. Sec. 804(8). The Comptroller General has held (19 C.G. 625), that in the absence of specific statutory authority therefor, appro- priated funds are not available for payment of excise taxes on checks drawn on United States Government deposits in for- eign banks. Agency appropriation acts have regularly in- cluded such authority. No new authority. Sec. 804 (9) . Statutory authority exists for the transportation of re- mains of employees from abroad to the United States (22 U.S.C. 1136(8) ; 5 U.S.C. 5742). The transportation to their homes of the remains of persons serving abroad under grant or contract in Agency activities is not covered by existing statutory authority. The proposed subsection is similar to au- thority regularly included in Agency appropriation acts. No new authority. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 82 Sec. 804 (10), (11),and (12). These subsections are similar to authority regularly in- cluded in Agency appropriation acts for rental and main- teance of office and residential quarters. In keeping with existing and past practices, leases may be made for a maxi- mum of 5 years. No new authority. Sec. 801 (13) . This subsection is identical to authority included in re- curring Agency appropriation acts. Under this authority, Agency personnel attending international conferences abroad can be paid travel expenses and per diem at the rates estab- 1 ished by the Secretary of State for the particular confer- ences without regard to the Standardized Government Travel Regulations. No new authority. Sec. 805. This section, which is repetitive of technical language in recurring Agency appropriation acts, permits the Agency to charge the appropriation for the fiscal year in which travel begins for all expenses of such travel even though not con- cluded until sometime in the succeeding fiscal year. No new authority. See. 203. Limitation upon prior authorization requirement According to the Executive Branch's analysis This section would assure that permanent appropriations under which payments are made directly from trust funds and other similar accounts in accordance with existing statutory authority are excluded from the application of section 407 of the Foreign Assistance Act of 1971. There are a number of such existing authorities. They include, for example, the use of proceeds from the sale to foreign governments of films owned or controlled by the United States Information Agency; the use of funds advanced from foreign govern- ments to replace damaged Agency property; and the expendi- ture of funds received from non-Federal sources, primarily business concerns, for use at international exhibitions. Sec. 204. Dissemination of information within the United States This section prohibits the internal distribution of USIA materials. The Smith-Mundt Act, the basic authority for USIA, speaks only in terms of dissemination of information overseas, with the proviso that, materials sent overseas be available for examination by the pri- vate media services and "on request, shall be made available to Mem- bers of Congress." However, Acting Attorney General Richard G. Kleindienst recently ruled that, in his view, the purpose of the provision relative to the press and Members of Congress ". .. was to make USIA materials available to the American public, through the press and Members of Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : % -RDP74B00415R000600120003-6 Congress." The exchange of correspondence between the Chairman of the Committee and Acting Attorney General Pleindienst follows : UNITED STATES SENATE, COMMITTEE ON FOREIGN RELATIONS, Hon. RICHARD G. KLEINDIENST, Acting Attorney General, Department of Justice, Washington, D.C. Washington., D.C., March 28,1972. DEAR, MR. KLEINDIENST : My attention has been drawn to the pro- posed use on a number of New York Television stations of a film pro- duced by the United States Information Agency entitled "Czecho- slovakia 1968". This appears to involve an ,intent-to violate the pro- visions of the United States Information and Educational Exchange Act of 1948, as amended. The Information Agency was created for the purpose of the dissemination abroad of information about the United States, its people, and policies. It was not created for dissem- ination of information in the united States. The only exception to the domestic dissemination of material pro- duced by the United States Information Agency of which I am aware is that authorized by P.L. 89-274, which contains language stating that nothing in that resolution is to be construed to establish a precedent for making other materials prepared by the United States Informa- tion Agency available for general distribution in the United States. I ask that the Department of Justice take action forthwith to re- strain the domestic dissemination of this film. Sincerely yours, Hon. J. W. FULBRIGIIT, U.S. Senate, Washington, D.C. J. W. FULBRIGIIT, Chairman. DEPARTMENT OF JUSTICE, Washington, D.C., March 31, 1972. DEAR SENATOR FULBRIGIIT: This is in response to your letter of March 28, 1972, concerning proposed showing of the United States Information Agency film entitled "Czechoslovakia 1968" on a number of New York television stations. We understand that the film is to be used as a portion of Senator Buckley's periodic televised reports to his constituents, and that the Senator obtained a print of the USIA film from the National Audiovisual Center, General Services Administra- tion. USIA has informed us that it has an agreement with the Center under which it supplies selected copies of its films to the Center for distribution on a noncommercial, educational basis. You state in your letter that the proposed showing appears to vio- late the United States Information and Educational Exchange Act of 1948, as amended. 22 U.S.C. 1431, et seq. You have also referred to P.L. 89-274, a 1965 statute relating to distribution of a USIA film about the late President Kennedy, indicating your view that that statute was the only exception to a prohibition of domestic dissemina- tion of materials produced by USIA. You asked that the Department of Justice seek to restrain the proposed domestic showing of "Czecho- slovakia 1968." Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 84 We have reviewed the applicable statutes and their legislative his- tories. While the question is not altogether free from doubt, it is our opinion that the proposed showing of "Czechoslovakia 1968" would not violate existing law. The second sentence of section 501 of the 1948 Act (22 U.S.C. 1461) provides that material disseminated abroad by ITSIA- "shall be available in the English language at the Depart- ment of State, at all reasonable times following its release as iaforination abroad, for examination by representatives of United States press associations, newspapers, magazines, radio systems, and stations, and, on request, shall be made ble to Members of Congress." avail, This provision was added as an amendment during House floor debate. Its apparent purpose was to make USIA materials available to the :1 merican public, through the press and Members of Congress. See re- nmarks of Representative Simpson, 93 Cong. Rec. 6991 (1947). The wording of the House amendment was slightly modified during Senate floor debate, but its purpose was left unchanged. 94 Cong. Rec. 248, 249, 267 (1948). This provision of the 1948 statute has not been amended. The overall statutory mandate of USIA, as reflected in the first sentence of section 501 of the 1948 Act, is to "disseminate abroad" information about the United States. The legislative history of the 1948 Act and subsequent enactments-notably the 1965 statute con- cerning the Kennedy film-do reflect Congressional concern that USIA, as a federal tax-supported agency, not engage in domestic propaganda activities. Particularly in light of this history, it is clear that USIA cannot actively engage in the domestic dissemination of its materials. On the other hand, as noted above, USIA is required by statute to make its materials available upon request to the press or Members of Congress. In our view, therefore, the USIA's organic statute should be read to distinguish between active domestic dissemi- iiation by USIA of its materials, and merely making its materials available, thus harmonizing its potentially conflicting goals. On its face, the second paragraph of P.L. 89-274 might perhaps be read to conflict with section 501 of the 1948 statute, particularly the language, in the former to the effect that USIA materials are not to be made "available for general distribution in the United States." How- ever, we do not believe that this language can properly be read to repeal the second sentence of section 501 of the 1948 Act, the USIA's organic statute, for several reasons. First, the legislative history of the 1965 statute does not, reflect any express Congressional intention to repeal the 1948 statute, and, indeed, the debates reflect, in our view, some misconception about the existing law. Second, the 1965 statute and its history were concerned with broad domestic dissemination of its films by USIA. Congress did not then consider the existing prac- tice of making USIA materials available to the press and to Members of Congress, pursuant to the 1948 Act. Finally, the revelant language of the 1965 statute is not cast as a statutory prohibition. By contrast, the 1948 statute imposes a clear statutory duty upon USIA. Under our reading of the law, and in the present factual circum- stances, we do not believe that the Department of Justice could or Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/1 016 : CIA-RDP74B00415R000600120003-6 should obtain a court order restraining the proposed showing of "Czechoslovakia 1968." The principal legal tests controlling the issu- ance of injunctive relief are likelihood of success on the merits of the case, and a showing of irreparable injury. For the reasons stated, we aro convinced that we would not succeed on the merits in this instance. Moreover, under the circumstances, a single showing of this film in one area of the country could not, as we see it, be deemed irreparable in- jury. In addition, although the situations are different in some re- spects, many of the considerations which led the Supreme Court to deny the Government's request to prevent publication of the Pentagon Papers are present here. See New York Times v. United States, 403 U.S. 713 (1971). It is true that existing law is somewhat unclear as to the standards governing domestic availability and distribution of USIA materials. In our judgment, generally speaking, current USIA practices in this respect are reasonable accommodations of complex and sometimes possibly conflicting directives from the Congress deriving from the 1948 statute, the 1965 statute, and other expressions of Congressional intent. However, it may be appropriate for USIA to reexamine its current practice of depositing selected films with the National Audio- visual Center without additional. restrictions on domestic distribution. Sincerely, RICH ARD G. KLEINDIENST, Acting Attorney General. This ruling is in the view of a committee a distortion of the legis- lative intent concerning the domestic distribution of USIA materials. Authority for the public showing of the USIA film concerning the late President Kennedy required a special act of Congress. And in order to placate the genuine concerns expressed at the time that the showing of this film would pave the way for the wholesale distribu- tion of USIA materials and progandizing the American public, Con- gress stated the following in that act : "It is further the sense of Congress that the expression of Congressional intent embodied in this joint resolution is to be limited solely to the film referred to herein and that noth- ing contained in this joint resolution should be construed to establish a precedent for making other materials prepared by the United States Information Agency available for general distribution in the United States." It is difficult to understand how Congress could have stated its in- tentions more clearly. And yet, in view of the Acting Attorney's re- cent ruling, there is an obvious need for a specific prohibition against the domestic dissemination of any USIA materials. This provision is a blanket prohibition barring public distribution of any and all materials produced by the United States Information Agency. In the future. special situations can be handled on a case-by- case authorization basis, as was the case with the Kennedy film. Sec. ?05-Restrictions on preparation and dissemination of informa- tion. This amendment to the Information and Educational Exchange Act of 1948 prohibits any Government agency from preparing or dissemi- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CW-RDP74B00415R000600120003-6 nating information of any kind on behalf of a foreign government. In addition, it prohibits any Government agency from distributing abroad unattributed materials which it has prepared or assisted in pre- paring, whether such assistance was financial, technical or otherwise. The anieiidment defines the term "dissemination of information" to include "publication, broadcasting and telec ti f i f as ng o n ormation. In recent years the Committee was warned of U.S. Government agencies : -preparing informational materials which have been attrib- uted to foreign governments, such as in the case of Vietnam and Laos ; -funding by the Government of Radio Free Europe and Radio liberty with no attribution to the U.S. Government; -distributing general propaganda materials without attri- bution to the Government, as in the case of the comic book, "El Desengano," dealing with urban terrorism, and distrib- uted throughout Latin America; and -preparing for and attributing informational materials to private U.S. companies overseas, such as in the case of an investment brochure recently prepared for and attributed to Texaco-Gulf in Ecuador. These practices are deceptive and serve to undermine the basic tenets of the Information and Educational Exchange Act of 1948-an Act whose fundamental purpose was and still ought to be to inform the people of other countries about the United States. The examples of unattributed material prepared by this or that Federal agency, of covert funding of radio broadcasts to Eastern Europe and the Soviet Union, of propaganda prepared by a Govern- ment agency and then attributed to a foreign government-all of this indicates how far we have strayed from the basic purposes and goals set forth in the 1948 Information Act. The amendment serves to get our overseas information program back on the right track. It prevents these questionable practices from continuing and developing further. It gets us out of the propaganda business on behalf of other governments and requires that any in- formation materials disseminated abroad by the U.S. Government be attributed to it. TITLE III-ARMS CONTROL AND DISARMAMENT AGENCY (ACDA) Sec. 301. Authorization of appropriations Sec. 301 authorizes the appropriations of $31,995,000 for the ACDA. This amount is composed of $22,000,000 for the regular functions of the ACDA for the fiscal years 1973 and 1974, and $9,995,000 for fiscal year 1973 for seismic research only. Of the $22,000,000, the ACDA proposes to request appropriations for $10,560,000 for fiscal year 1973 and $11,440,000 for fiscal year 1974. The twelve-year history of appropriations and obligations, broken down by program operations and external research and field testing, is as follows: Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :S;IA-RDP74B00415R000600120003-6 UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY SUMMARY OF APPROPRIATIONS AND OBLIGATIONS (JUNE 30) (In thousands-fiscal year 1962-fiscal year 1973) External research Program and field Appropriations operation testing Total Fiscal year: 1962--------------------------------------- $1, 831 $1, 229 $600 $1, 829 1963___ ____________________________ 6,500 2,549 3,560 6,109 1964 -------------------------------------------- 7,500 3,341 4,034 7,375 1965---------------------------------------- 9,000 3,567 5,399 8,966 1966________________________ _____ 10,000 13,893 5,809 9,702 1967------------------------------------------- 9,000 4,010 4,765 8,775 1968-------------------------------------- 9,000 24,484 4,500 8,984 1969------------------------------------------- 9,000 5,365 3,602 967 8 1970 ------------------------------------------- 9,500 6,940 2,510 , 9,450 1971------------------------------------------- 28,645 6,924 1,708 8,632 1972------------------------------------------- '9,000 7,433 1,567 9,000 1973------------------------------------------- 6 10,000 7,800 2,200 10,000 Total__ ____________________________ 98,976 57,355 40,254 97,789 I Excludes appropriation transfer of $35,000 to GSA. 2 Excludes appropriation transfer of $16,000 to GSA. s Includes appropriation supplemental ($395,000) for civilian pay act increases. ($272,000 from Public Law 91-231 and $123,000 from Public Law 91-656.) 4 Includes 1972 budget amendment ($264,000) for civilian pay act increases from Public Law 91-656. Does not include estimated pay increase costs of $116,000 from Public Law 92-210, approved Dec. 22, 1971. a Does not include estimated pay increase costs of $253,000 from Public Law 29-210, approved Dec. 22, 1971. A comparison of the FY 1971-1972 authorizations and appropria- tions with those requested for FY 1973-1974 prepared by ACDA follows : TITLE III-ARMS CONTROL AND DISARMAMENT AGENCY TABLE I.-SUMMARY OF APPROPRIATIONS AND OBLIGATIONS FOR EXPIRING FISCAL YEAR 1971-72 AUTHOR- IZATION PERIOD Appropriations: Fiscal year 1971-72 authorization_______________________________ $8,645,000 $8,855,000 $17, 500, 000 From original no-year authorization l------------------------------------------ 145,000 145,000 - - ------- Grand total_________________________________________________ 8,645,000 9,000,000 17,645,000 Program operation_______________________________________________ 6,923,720 7,433,000 14,356,720 External research_____________________________________________ 1,160,036 1,047,000 2,207 036 Field testing -------------------------------------------------- 548,193 520,000 , 1,068,193 Subtotal 1,708,229 1,567,000 3,275,229 Total obligations____________________________________________ 8,631,949 9,000,000 17,631,949 Unobligated balance__________________________________________ 13,051 -------------- 13,051 Grant total 8,645,000 9,000,000 17,645,000 1 Use of part of this residual authority was necessary to cover pay increases contained in Public Law 91-656, approved Jan. 8, 1971. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 CIA-RDP74B00415R000600120003-6 88 TABLE 2.-PROJECTED BREAKDOWN OF ESTIMATED APPROPRIATION REQUESTS FOR FISCAL YEAR 1973-74 AUTHORIZATION PERIOD 1973 estimate 1974 estimate Total Program operation________________________________________________ $7,800,000 $8,000,000 $15,800,000 External research_________________________________________________ 1,330,000 1,855,000 3,185,000 Field testing______________________________________________________ 870,000 645,000 1,515,000 Subtotal___________________________________________________ 2,200,000 2,500,000 4,700,000 Total------------------------------------------------------------ 10,000,000 10,500,000 20,500,000 Estimated Pay Act costs____________________________________________ 560,000 940,000 1,500,000 Grand total_________________________________________________ 10,560,000 11,440,000 22,000,000 The increases in the budget over the expiring two-year authoriza- tion are shown below together with the ACDA's justification for them : $utnmary of increases-Fiscal years 1973-4 authorization ($22.0 million) over Item in millions) 1. Mandatory pay acts (Ind. 1/8/71; 12/22/71; 10/1/72 (est.) ; and 10/ 1/73 (est.)) --------------- - -2. 1 II. External research and field testing-------------------------------- -1.4 III. New positions (10 in fiscal year 1973; 10 in fiscal year 1974) -------- +. 5 IV. Wage and price increases----------------------------------------- +.3 V. Dollar revaluation abroad----------------------------------------- +.2 Total --------------------------------------------------------- -4.5 An increase in funding for the Agency's program opera- tions in fiscal years 1973 and 1974 will be necessary to meet a growing workload, as well as to cover rising costs of Agency operations. The process of developing international agree- ments to control and limit arms will require active, com- plex negotiations at the Strategic Arms Limitation Talks (SALT), at the Geneva Conference of the Committee on Dis- armament (CCD), and the United Nations General Assem- bly. At the CCD, following recent, successful negotiations on the Seabed Arms Control Treaty and the draft biological weapons convention, active discussions on chemical weapons limitations and a comprehensive test ban (CTB) are antici- pated. Requirements may be placed on the Agency to partici- pate in negotiations for mutual balanced force reductions (MBFR) in Europe and the proposed Conference on Secu- rity and Cooperation in Europe (,CSCE). The Agency will also continue program operations in the following areas : implementation of the Nuclear Non-Proliferation Treaty (NPT) safeguards requirements; control of conventional arms transfers; assessment of the economic impact of de- fense expenditures and arms control ; and limitations on military expenditures. The projected level of funding for the Agency's external research and field testing activities reflects anticipated re- quirements growing out of SALT, MBFR, CTB, NPT, chem- ical weapons limitations and conventional arms control. The Agency is required under its Act (cf. 22 U.S.C. ? 2571) to conduct a research program to acquire a fund of theoretical and practical knowledge concerning arms control and dis- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 WA-RDP741300415R000600120003-6 armament. This research program includes projects designed to provide an independent technical basis for developing and evaluating arms control proposals. For FY 1973 and 1974 we project expenditures of $4.7 million for these purposes. (See the summary of projected external research and field testing programs for fiscal years 1973 and 1974 beginning on p. 24, and the table projecting requirements by research cate- gory on p. 33.) These expenditures will continue to reflect an emphasis on research in support of negotiations rather than on research aimed at generalized goals. The curent request represents what is required for ACDA's part in the government's effort to promote arms control as an effective instrument of national security and world peace. The primary responsibility of ACDA for the conduct of the SALT negotiations is well-known and does not need to be elaborated on. So to a lesser degree is its responsibility to rep- resent the United States at the Geneva discussions of the Conferences of the Committee on Disarmament and to par- ticipate in disarmament debates at the, United Nations Gen- eral Assembly. In the course of the preceding two fiscal years, ACDA has managed, or taken substantial part, in negotia- tions leading to the following agreements : the so-called "Ac- cidents" and "Hot Line' agreements of September 30, 1.971; the Seabed Arms Control Treaty, approved by the Senate on February 15, 1972; and the Convention prolnbiting the. de- velopnient, production and stockpiling of biological and toxin weapons soon to be signed and submitted to the Senate. Be- sides the ongoing SALT negotiations prospective subjects for discussion concerns mutual and balance force reductions in Europe, control of chemical arms, controls on the transfer of convent.ionl armaments, and a comprehensive test ban. Committee comments The Committee agrees that the ACDA can view this record with pride. Indeed., the only question this record raises is whether the ACDA is concentrating too much on negotiations and not enough on its other statutory responsibilities which are set forth in the 1961 Act as follows: (a) The conduct, support, and coordination of research for arms control and disarmament policy formulation ; (b) The preparation for and management of United States participation in international negotiations in the arms control and dsarmament, field; (c) The dissemination and coordination of public informa- tion concerning arms control and disarmament; and (d) The preparation for, operation of, or as appropriate, direction of 11)irited States participation in such control sys- tems as may become part of United States arms control and disarmament activities. In the mid-sixties, the Committee began to be concerned that ACDA was emphasizing research-and in the Committee's view some ir- relevant research-at the expense of negotiations, as the twelve-year table at the beginning of this section shows. This situation has now changed to such a degree that the Committee's concern is the reverse. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 90 For FY 1973, out of $10,000,000 the ACDA proposes to spend $7,800,- 000 for program operations, which largly involve negotiations. The Agency testified that the SALT talks alone has been costing it about $1,300 000 a year. The Committee certainly urges the. Agency to con- tinue strenuously exploring all avenues towards arms control. At the same time, however, ACDA has a duty to pursue diligently its other statutory tasks, even if this should necessitate future higher funding for the Agency. The Committee does not want to see the Agency become merely a specialized negotiating arras of the Department of State. Among useful research that ACDA could be pioneering is environ- mental warfare, especially weather modification, and the Committee urges the Agency to take the lead in this area with a view towards controlling such developments while there is still time. Sec. 302 SP,7snrie research, The Committee voted to approve the following amendment proposed by Senator Case: Notwithstmiding any other provision of law, $9,995,000 of the amounts appropriated for fiscal year 1973 to carry out this Act (1) shall be obligated and expended only to conduct seismic research, and (2) shall not be transferred to any other agency. L companion amendment, by Senator Case to S. 3108, the military pro- curement authorization bill before the Senate Armed Services com- mittee, would reduce by $9,995,000 the amounts requested for research, development, test, and evaluation for the Defense Agencies and further specify that none of the funds appropriated under that Act be avail- able to or for the. Advanced Research Projects Agency, Department of Defense., to conduct seismic research. The combined effect of the amendments is to transfer the responsi- bility for seismic, research now carried out by the Defense Department to the Arms Control and Disarmament Agency. Such a shift in responsibility was first considered when the Arms Control and Disarmament Agency was established in 1961 but in view of the newness of the Agency was not carried out.. The Agency is now well experienced and has won the confidence of Congress and the pub- lic. This is a responsibility that it can well assume at this time. And it is certainly in its area of interest. Seismic research is directed toward improving and developing those techniques by which the. United States could monitor an comphehen- sive nuclear test, ban treaty. This ability is involved in any negotiations toward such a treaty. Seismic research was once a high- priority program funded at its height in 1963 at $41.4 million. For the coming fiscal year the Defense Department is proposing to spend $9,995,000 on it. Former ACDA Assistant Director Adrian Fisher, at the hearing on this item, described the situation of leaving seismic research in the Defense Department as "a certain intellectual conflict of interest." No. went on to explain- With the greatest personal respect for all concerned in con- ducting that research, I must say that they have been put in a somewhat conflicting position. The DOD is an agency charred with developing and maintaining a nuclear weapons arsenal, and naturally looks at U.S. security from the point Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :,qIA-RDP74B00415R000600120003-6 of view of the continuing refinement of our weapons cap- ability ; at the same time it is given the responsibility for find- ing ways to refine our capability to monitor an agreement which would make it impossible for us to acquire and develop more and better nuclear weapons. The fact that seismic research needs greater attention than being given currently was underlined by Senator Case's discussion of the amendment : The Defense Department's responsibility for what is essen- tially an arms control measure inevitably conflicts with its primary military role. I do not believe that (ongres intended that the Defense Department should be in the position of both controlling the development of the means by which underground testing can be ended and serving as the advocate of the military impor- tance of continued testing. For almost 9 years, the United States and the Soviet Union have been deadlocked in the negotiation of an underground nuclear test ban treaty. One of the principal. causes of this deadlock has been U.S. insistence upon, and Soviet resistance to, onsite inspections as a means of verifying compliance with such a treaty. During this same period there have been great advances in. the state of the art in seismic monitoring techniques. The potential of these discoveries is that the United States may be able to rely upon seismic means for verifying compliance and drop its insistence upon onsite inspections. Has the Defense Department pursued and exploited the op- portunities offered by these advances in a manner commen- surate with our treaty obligation to do everything in our power to bring about an end to underground nuclear testing?, 'Pine Committee believes that the ACDA. can and will give seismic research the boost it needs for our future requirements. Since a large amount, of this research is contract research, and since the Director of ACDA, Gerard Smith, testified that he has expert personnel in this area, the proposed shift in responsibilities should not present many praetical difficulties. It will be well worthwhile if improved research should bring some forward movement in the stalled discussions of a comprehensive test ban treaty. The ACDA has submitted views in opposition to the proposed trans- fer which are printed on p. 42 of the hearings on the ACDA Appro- priations Authorization. While the Committee is disturbed at the low priority assigned seismic research by officials in the Defense Department, it has no desire to reflect on the work of the Advanced Research Projects Agency. It does, however, expect that, there will. be no dupli- cation of this type of research by the Defense Department. The amend- ment. represents a complete transfer of this effort, not a doubling of it. It also involves all ongoing legislative commitment on the part of the Congress to continue funding seismic research on an annual basis in the ACI)A authorizing bill, since the amendment applies only to FY 1973. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 92 TITLE IV-PEACE CORPS Authorization of appropriations The primary purpose of Title IV is to authorize an appropriation of $77,000,000 for the fiscal year 1973 operations of the Peace Corps programs of ACTION, together with an additional authorization of $5,000,000 for the purchase of excess foreign currencies. The Committee rejected a request fora permanent authorization for Peace Corps operations. The Committee considered such a proposal inappropriate in view of the Peace Corps' long history of annual au- thorizations, coupled with the fact that the Committee has recently required periodic authorizations for both the Department of State and the United States Information Agency. As a result of the current emphasis on the recruitment of skilled technicians, the Committee concluded that the activities of the Peace Corps are becoming quite similar to operations carried out under the technical assistance programs of AID. In view of this, the Committee considered, but did not act on, a proposal which would have estab- lished the Peace Corps as a unit within AID. The Committee agreed to study this question further and it is expected that, separate legisla- tion proposing such a merger will be introduced in the near future. Section 401. Authorization of appropriations This amends section 3(b) of the Peace Corps Act and authorizes an appropriation of $77,000,000 for fiscal year 1973. This compares with a fiscal year 1972 authorization of $77.2 million and an appropri- ation of $72 million. In addition to the above appropriation, $2.6 million was transferred from AID technical assistance funds, raising the total funds available to the Peace Corps in FY 1972 to $74.6 million. The following table compares the amount requested with the au- thorizations and appropriations of prior years : PEACE CORPS-STATEMENT OF AUTHORIZATIONS AND APPROPRIATIONS Iln thousands of dollarsi Request Authorization Appropriation Fiscal years: 1970--------------------------------------------------------- 109,000 98,450 98,450 1971--------------------------------------------------------- 98,800 98,800 90,000 1972_ --------------------------------------------------------- 1973 82,200 8 027 77,200 172,000 -------------------------------- 8 , ---------------------------- The Peace Corps intends to support 8,400 volunteers and trainees during the 1973 program year and expects to train 5,500 volunteers. This is ,in increase of approximately 1175 volunteers and 500 trainees over the previous program year. Volunteers are presently serving in 57 countries and areas and the Peace Corps hopes to be in several more before the end of the 1973 program year. By areas and countries the volunteers and trainees are distributed as follows : Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74BOO415ROO0600120003-6 93 1972 1969 1970 1971 estimate Africa: Botswana---------------------------------------------- 53 60 80 76 Cameroon ---------------------------------------------- 50 64 78 98 Chad-------------------------------------------------- 52 45 51 56 Dahomey----------------------------------------------- 32 43 38 61 Ethiopa------------------------------------------------ 318 156 171 199 Gambia------------------------------------------------ 18 39 55 75 Ghana------------------------------------------------- 212 285 317 269 Ivory Coast--------------------------------------------- 110 108 112 116 Kenya----------------------------------------------- 243 295 301 236 Lesotho----------------------------------------------- 50 27 22 33 Liberia------------------------------------------------ 256 147 277 283 Malawi------------------------------------------------- 140 50 20 38 Mali- :--:---------------------------------------------------------- 1 16 13 Mauntania----------------------------- ------------- --------------------------- Mauritius---------------------------------------------------------- -3 26 16 Niger ----------------------------------------------- 71 71 86 78 Senegal ----------------------------------------------- 95 93 103 124 Sierra Leone-------------------------------------------- 286 211 182 207 Swaziland---------------------------------------------- 41 24 92 111 Togo------------------------------------------------- 77 88 87 90 Uganda ----------------------------------------------- 72 70 82 114 Upper Volta-------------------------------------------- 56 49 65 75 Zaire------------------------------------------------------------- 9 75 116 Guinea----------------------------------------------- 19 22 ------------------------ Nigeria------------------------------------------------ 66 ----------------------------------- Somah Republic --------------------------------------- 42 ------------------------------------ ------------------- Total----------------------------------------------- 2,359 1,980 2,336 2,492 Latin America: Brazil -------------------------------------------------- 405 334 256 277 British Honduras---------------------------------------- 28 42 38 39 Chile------------------------------------------------ 201 109 42 2 1 Colombia---------------------------------------------- 132 185 8 2 Costa Rica ---------------------------------------------- 57 102 92 108 Dominican Republic------------------------------------- 68 40 56 79 Eastern Carib bean---- ----------------------_----------- 163 168 171 143 Ecuador----------------------------------------------- 112 114 194 208 El Salvador --------------------------------------------- 58 67 62 85 Guatemala ------------------------------------ 75 77 104 112 ------- Honduras --------------------------------------- 106 117 137 145 ------- Jamaica----------------------------------------------- 159 199 170 191 Nicaragua ---------------------------------------- 28 50 67 84 ------ Paraguay--------------------------------------------- 66 70 56 75 Peru ----------------------------------- - 101 220 194 119 - ------------- Uruguay-------------------------------------------- 22 14 8 16 Venezuela---------------------------------------------- 164 129 199 224 Bolivia------------------------------------------------ 133 130 ------------------------ Guyana----------------------------------------------- 55 24 ------------------------ Panama ------------------------------------------------ 84 107 ----------------------- Total ------------------------------------------------ 2,361 2,245 2,031 2,205 North Africa, Near East, East Asia, Pacific: Afghanistan-------------------------------------------- 137 112 130 149 Fiji---------------------------------------------------- 109 98 92 117 India ------------------------------------------------- 452 433 318 302 Iran--------------------------------------------------- 200 153 127 166 Korea ------------------------------------------------- 118 174 228 245 Malaysia----------------------------------------------- 313 403 363 343 Malta -------------------------------------------------------------- 7 6 8 Micronesia--------------------------------------------- 390 286 295 314 Morocco ----------------------------------------------- 106 132 157 183 Nepal ------------------------------------------------- 126 143 147 179 Philippines--------------------------------------------- 410 347 274 178 Solomon Islands--------------------------------------------------------------- 6 6 South Pacific Commission -------------------------------------------------------- 1 1 Thailand----------------------------------------------- 231 216 267 229 Tonga------------------------------------------------- 31 40 47 68 Tunisia---------------------------------------------- 136 84 109 118 Western Samoa----------------------------------------- 35 46 51 86 Ceylon------------------------------------------------ 14 ------------------------------------ Turkey------------------------------------------------- 164 1 ------------------------ 76--616 0-72-7 Approved For Release 2001/11/16 : CIA-RDP74BOO415ROO0600120003-6 Approved For Release 2001/11/16 :&IA-RDP74B00415R000600120003-6 Their principal fields of activities are set forth in the following table: Volunteers' Trainees2 Man-years Agriculture --------- B i d l 1,488 1,170 1 520 us ness eve opment____---------------------------------- C 169 140 , 180 ommunity development_____________ ---------------------------- Envcation Environment 237 3, 066 245 2, 270 314 2, 948 Health ----------------- P f i l 412 503 335 395 435 514 ro ess ona -------------- - ---------------------------- 378 290 380 pba --- ------------------------------------------- 283 225 290 ndev n Urha development____ Oth 321 255 328 er-- - --- --- ---- - ------------------ 128 175 229 Total --- 6,985 5,500 7,138 ' As of Dec. 31, 1971. 2 Estimated for fiscal year 1973. On June 30, 1971, by Executive Order 11603, the Peace Corps was transferred to ACTION, an agency created by the Reorganization Plan No. 1, of 1971 which went into effect on July 1, 1971. ACTION programs have been divided into three major categories for manage- ment purposes. They are : International Programs, which consists of the Peace Corps; Domestic Programs, which include all domestic volunteers activities; and Support Programs, which include the re- cruitment, selection, and placement of all ACTION volunteers, pro- gram and policy evaluation and development, and across-the-board management and administrative functions. The funds requested by the Peace Corps are expected to finance all the International Programs and part of the Support Programs. The, following table indicates the estimated budget amounts for fiscal year 1973, together with the comparable estimates for fiscal year 1972, and the actual amounts for fiscal year 1.971: 1971 actual 1. Funds (obligations in thousands): A. Training: Fiscal year- 1972 1973 estimate estimate 1. Training---- -------------------- ---- 2 ------ $11,344 $10,823 $14,107 . Training support ---------------------------- - ------ 3,285 1,290 2,590 12,113 16,697 1. International travel ----- _-------------- - 5,932 5,138 7 200 2. Allowances- _ 12, 013 11,568 , 13 372 3. Other volunteer support _____ __ 6, 327 5,589 , 7,254 4. Readjustment allowance____________________ __ __ 7,581 7,462 8,067 31,853 29,757 35,893 C. Program support --------------- .___ 22,545 20,030 19,610 D. Allocation of program support costs --------- ____ ____ 15,997 12,700 14,828 F. Pay raises --------------- ----------- -------------- 517 999 F. Total funds __-_____ 85,024 75,117 88,027 During the 1971 program year, the average direct cost of the various types of training was $3,238 per trainee. The Peace Corps anticipates Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 :QIA-RDP74B00415R000600120003-6 a decrease to $2,760 for program year 1972 trainees and $2,670 for 1973 trainees. These decreases are attributed to the increasing use of in-country training, where the costs are less. The following is a break- down of estimated total training costs for fiscal years 1973 and 1972, and the actual costs for 1971. Fiscal year- 1971 actual 1972 estimate 1973 estimate Training costs-Peace Corps: 1. Regular contract-------------------------------------------- 1, 536 2, 555 2 395 2. Peace Corps centers________________________________________ 903 , 3. Peace Corps centers and host country________________________ 4 C 1,364 ---------------------------- . omplete in-host country ------------- ______________________ 4,445 4, 092 6 439 5. Contract and in-host country_________________________________ 3,096 4,176 , 5,273 6. Training support -------------------------------------------- 3,285 1,290 2,590 Total,training costs______________________________________ 14,6J 12,113 16,697 Volunteer costs will increase approximately $6 million in fiscal year 1973. These increases are shown in the following table : VOLUNTEER COSTS [in thousands of dollars] 1971 actual 1972 estimate 1973 estimate 1. International travel______________________________________________ 5,932 5,138 7 200 2. Allowances__________________________________________12,013 11,568 , 13,372 Lettlin-------------------------------------------- in --- 9, 808 - - - - 9,461 10,993 629 647 837 Leave Leave ----- 1,576 1,460 1,542 3. Medical supplies and services____________________________________ 1,706 1,655 1 927 4. In-country travel________________________________________________ 682 676 , 785 5. Supplies and equipment____________________________________ 6 430 405 471 . Other support-------------------------------------------------- 3,509 2,853 4,071 Dependent's support_______________________________________ .......... Vehicle procurement 473 --- 879 ________________________________________ 231 ------------ _ Vehicle shipment ---------------------29 237 30 Bureau of employee compensation____________________________ 681 693 962 Miscellaneous costs_________________________________________ 2,149 1,687 1,963 7. Readjustment allowance_________________________________________ 7,581 7,462 8,067 Total, volunteer costs________________________________________ 31,853 29,757 35,983 The projected program support costs for the Peace Corps were estimated at $19,610,000. These costs do not include the allocated sup- port costs of the combined ACTION operations. They represent the expenses of the international staff involved in the management and operations of Peace Corps programs overseas and in Washington and other direct support of the Peace Corps, such as, shared adminis- trative support (Department of State), multinational volunteer grants, and research. The following is a table setting out the costs of these various programs. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1 6,S CIA-RDP74B00415R000600120003-6 PROGRAM SUPPORT COSTS [in thousands of dollars] 1971 actual 1972 estimate 1973 estimate 1. Personnel costs------------------------------------------------ 12,186 10,885 10,300 2. Operating costs------------------------------------------------- 6,653 5,335 5,185 3. Shared administrative support--Department of State---------------- 3, 325 3, 700 3,700 4. Multinational volunteer grants (title I11)--------------------------- 285 100 350 5. Research---------------------------------------------------- 96 10 75 Total, program support-------------------------------------- 22,545 20,030 19,610 Tinder the reorganization, all of the combined Support Programs of ACTION are organized to serve the entire agency and presumably cannot be identified specifically with either the Peace Corps or the 11)omestie. Programs. However, for appropriation purposes the funds for ACTION will be divided into two hills; one for Peace Corps and one for the domestic activities. Given this requirement, ACTION has determined that the most equitable means of making a distribution of the program support costs is a proration on the basis of work-load as reflected by the permanent full-time personnel associated with the Peace Corps and the domestic programs. Based on such a computation, which is shown below, the Peace Corps share of these costs is $14,828,000. ALLOCATION OF PROGRAM SUPPORT COSTS ]Dollar amounts in thousands) Fiscal year 1973 permanent positions: Peace Corps programs---- -------------------------------------------------------------------- $748 Domestic programs --------------------------------------------------------------------------- 386 Support programs---------------------------------------------------------------------------- 595 Total --------------------------------------------------------------------------------- 1.729 Total Peace Corps and domestic positions -------------------------------------------------------------- 1,134 Peace Corps as percentage of 1,134 -------------------------------------------------------------------- 65.9 Domestic positions as percentage of 1,134--------------------------------------- --_-------------------- 34. 1 Fiscal year 1973 combined support programs ------------------------------------------ _---------------- $22,500 Peace Corps programs share (22.500 times 65.9 percent) ------------------------------------------------- $14,828 Domestic programs share ($22,500 times 34.1 percent) ---- ---------------------------------------------- $7,672 Sec. 4O2.-Voluntary Service Programs This amends section 301(b) of the Peace Corps Act to increase the limitation on expenditures authorized to encourage the development of international voluntary service programs from $300,000 to $350,000 and to make this limitation applicable to any fiscal. year. The Peace Corps believes that this increase is necessary to insure the continued growth and expansion of the international volunteer efforts. Mr. Blatchford, Director of Peace Corps, indicated during the April 7 hearings that : This year's requested increase hopefully will help to offset the $200,000 reduction we were forced to make -n our contri- bution to the Vnited Nations Volunteer Service Program due to the Peace Corps severe budget crisis. The Committee takes note of Mr. Blatchford's intention and con- tinues to urge the Peace Corps to broaden its scope and to work with other countries' volunteer services in a more multinational approach. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1667CIA-RDP74B00415R000600120003-6 See. 403. National Advisory Council This abolishes the Peace Corps National Advisory Council 90 days after the enactment of this bill. Sec. 4O4. Authorization of Excess Foreign Currencies This provision offered by Senator Pearson would authorize the ap- propriation to the Peace Corps for FY 1973 of $5,000,000 in U.S.- owned foreign currencies which are excess to the needs of the United States. The Committee has always supported the maximum use of foreign currencies for official U.S. agency programs, particularly when the use of foreign currencies can result in savings in dollars. Section 17 of the Peace Corps Act urges that maximum use be made of excess foreign currencies in carrying out Peace Corps programs. TITLE V-GENERAL AND MISCELLANEOUS PROVISIONS Section 501. Certain Additional Authorizations of Appropriations This section provides an authorization of appropriations for the fiscal year ending June 30, 1973, for a number of functions, activities and expenses of a nature that are difficult to determine in advance. One such category provided for in this authorization of appropria- tions covers increases in salary, pay, retirement or other employee benefits authorized by law which occur from time to time and require supplemental appropriations such as the, Federal Employees pay in- crease of January 9, 1972, which is not included in the amounts re- quested in Section 101. This section would also authorize appropria- tions for nondiscretionary increases such as those resulting from the recent exchange rate realignments and appropriations required to finance new or expanded activities authorized by law or treaty which would take effect after the enactment of this legislation. Section 502. Expression of Individual Views to Congress This provision is designed to encourage Executive Branch witnesses before the Committee to be more candid in their testimony, partic- ularly in responding to questions soliciting their personal views. The Committee should be able to obtain the frank views of officials of agencies for which it has oversight responsibility, even though they may run counter to official policy. If the hearing process is to be pro- ductive, the witnesses must be responsive. All too often Executive Branch witnesses seem to be afraid to respond candidly to questions put to them for fear of departing in any way from official policy. This provision will give them statutory encouragement to speak frankly to the Committee. It is patterned after a provision in the National Security Act relat- ing to testimony before Congress by the Secretaries of the military de- partments and by members of the Joint Chiefs of Staff. Sec. 503. Repeal of Rhodesian Sanctions Provisions This section proposed by Senator McGee would repeal Section 10 of the Strategic and Critical Materials Stock Piling Act which was added by Section 503 of Public Law 92-156, commonly known as the Rhodesian Chrome Amendment. There is no current shortage of metallurgical-grade chrome ore, or chromite, for either defense or commercial purposes: (a) the Office of Emergency Preparedness with DOD agreement has declared excess to the strategic stockpile (a three-year supply of 3.1 million tons of Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16gsCIA-RDP74B00415R000600120003-6 chrome ore for full-wartime purposes) almost 21/4 million tons, and the Senate has passed a bill, S. 773, to release 1.3 million tons; (b) the rate of drawdown of earlier stocks under PL 89-415 has only av- eraged some 165,000 tons annually over the last six years since the Rhodesian embargo; (c) U.S. total consumption of such chrome ore in 1970 was 911,000 tons and only ten percent of that went for direct defense, or strategic, purposes-at that rate the excess of 21/4 million tons would fill our defense needs under existing conditions for at least a dozen years. The U.S. imported about one-third of its chromite from the Soviet Union for several years before the Rhodesian sanctions, partly be- cause it has the world's highest ratio of chrome to iron-4 to 1, as dis- tinct from Rhodesian ore's 3 to 1 ratio. No one disputes the future need for Rhodesian chromite, especially since the USSR seems to be ex- lrausting its resources. However, the U.S. can do without either Rho- desian or Russian chrome ore for both defense and commercial pur- poses over at least the next three years. The Rhodesian Chrome Amendment put the United States, for the first, time, in a position of defying the UN Security Council. We were the first nation to break its formal adherence to TTN sanctions. The effects of this action on the TUN and on our relations with the African Continent have been serious. It is too late to undo all the damage by Congress' unwise action last year, but reversal of the current U.S. posture will again pledge our support for the UN Security Council's decision and help improve our general relations with nations on the African Continent. Section 504. Personnel Reduction This section requires that by June 30, 1973, the total number of U.S. government personnel assigned abroad, other than personnel of the Department of State (including reimbursable personnel carried on the Department's rolls), members of the Armed Forces not assigned as attaches or to military aid activities and volunteers in the Peace Corps, be reduced by at least ten percent from the current levels. In addition, the amendment places a worldwide ceiling of 6,000 on the number of State Department personnel (including reimbursable per- sonnel assigned to the Department) who can be stationed overseas at any one time. According to the recent information available to the Commit- tee, there are some 26,000 U.S. personnel overseas under the jurisdic- tion of diplomatic mission chiefs. Of this total, State Department per- sonnel engaged in regular Department related activities number 3,400 or about 13 percent. If to this total are added those carried on the Department's rolls as reimbursable personnel, those whose duties actu- ally are in behalf of other agencies such as A.I.D., U.S. Information Agency, and others, the State T uartment total increases to 5.809-- but even this amount represents only 22 percent of the total. By comparison there were : 5,047 AID personnel; 4,650 Defense Department personnel (excluding members of the Armed Forces) ; 8,372 Peace Corps personnel ; 1,069 USIA personnel; 1,527 other Executive Branch personnel including Justice, Agriculture, Commerce, HEW, NASA and EXIM Bank. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/19016 : CIA-RDP74B00415R000600120003-6 In other words, for every State Department employee-overseas there are four more employees from other government agencies. This situation indicates that our overseas missions have developed into miniature foreign policy establishments, drawn along the lines of Washington itself. Those Executive Branch agencies (other than State) which have a foreign-policy input in Washington-ranging from the Department of Defense to the Department of Agriculture- also have their representatives overseas, the only difference being that the representation is on a smaller scale. This provision would begin to reverse this situation and start to reduce the number of government employees overseas to a more man- ageable level, while at the same time enhancing the power of the State Department to regain better control over our missions abroad. This mandatory reduction reflects the Committee's concern over some reductions have been made iii the last several years, but believesq8 that substantially greater reductions could be made which would re- sult in the more efficient and effective conduct of foreign affairs. This reduction should also have a favorable impact on the government's fiscal condition and our balance of payments problem. The Committee views the ten percent reduction required as a mini- mum figure and expects that serious efforts will be made to reduce the overseas bureaucracy much further. The Committee will follow the implementation of this directive closely and expect to give careful study to the results during its consideration for authorization legis- lation for FY 1974. In addition, the Committee will expect the De- partment of State to provide a detailed justification in the FY 1974 presentation material of all U.S. personnel in each U.S. mission abroad to which 50 or more Americans are assigned. Sec. 505. United Nations Headquarters Construction Public Law 91-622 authorized a U.S. contribution of not to exceed $20,000,000 for a U.S. contribution to help defray the costs of an ex- pansion of the Headquarters of the United Nations. No funds have yet been appropriated for this purpose. The U.S. contribution was to be the cornerstone of the entire financ- ing arrangement for meeting the U.N.'s expanding space requirements. Since U.S. funds have not been provided, the problem, particularly for organizations such an UNICEF, are growing more critical. The Committee has included this. section in the bill to reaffirm its concern about this situation and to urge that funds be made available to im- plement the expansion program, a. project to which Congress gave its approval in 1970. Section 506. Use of foreign currencies This section amends Section 502(b) of the Mutual Security Act of 1954, as amended, which deals with expenditures of foreign currencies by Congressional committees. The currencies involved have been ac- cumulated by the United States through the sale of surplus agricul- tural commodities (P.L. 480), the repayment of loans under the For- eign Assistance Act, the payment of interest on deposits of foreign currency in foreign banks, and from various other programs, including the sale of American surplus property. Under present law, Members and employees of committees are au- thorized to draw not to exceed the equivalent of $50 per day (exclu- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CI4DP74B00415R000600120003-6 live of transportation costs) in foreign currencies to meet their sub- sistence expenses in counection with official travel outside the United States. Foreign currencies owned by the United States are divided into two categories; namely, "excess" and n.on-excess." Where the supply of a Foreign currency is great enough to more than meet IT.S. requirements For the next two years, the currency is designated as "excess" by the Department of the Treasury. At the present time there are eight so- called "excess" currency countries. They are: Burma, Guinea, India, Israel, forocco, Pakistan, Poland, Tunisia, IT.A.R. (Egypt), and Yugoslavia. The foreign currencies in other countries are in the "non-excess" category, meaninw,. that the supply is not adequate to meet U.S. ire- fill icements for two years. In most of these "non excess" currency coun- tries the ITnited States Government must use dollars to purchase foreign currencies from commercial sources to pay for part of its op~,r- ating expenses.'1'hus, when these foreign currencies are used in connec- tion with Congressional travel, as has been done in the past, an equivalent amount of additional currency must be purchased with alplrropriated dollars to satisfy the expenditure requirements. During Fiscal Year 1971, for example, approximately $770 000 was used for , this purpose. Needless to say, the purchase of such currencies wit11p- propriated dollars constitutes a balance of payments drain and also a net. budgetar y drain on the United States Government. This amendment would have the effect of requiring expenditures made in connection with travel abroad to be financed directly out of appropriated funds, except in the so-called "excess" currency coun- tries. In such countries the equivalent of not to exceed $75 per day (exclusive of transportation costs) could be made available to each Afenrber or employee to meet his subsistence expenses. The ameardrnent also prohibits the use of excess currencies to pay the expenses or fees of witnesses appearing before Congressional corn- mittees in the United States. This latter provision would result in ('rnigressionai committees paying witness fees out of their own funds at rates authorized by the Senate or the House of Represent atives,'as the case may be. TITLE VI--STTTDY COMMISSION RELATING To FOREIGN POLICY AS"eclion. 601-Fn'idlnas and Purpose Section 601 states Congress' findings concerning the need fora study commission to provide a more effective system for the formulation and implementation of the nation's foreign policy. "Con gress finds that during the last quarter of a century there has b,, en a proliferation of agencies of the United States Government with respect to the formulation, management, and conduct of, and the collection of information relating to, the nation's foreign policy. This proliferation has resulted in the diminution of both the Presi- dent's and the Congress' respective powers with respect to the formu- lation and implementation of foreign policy, the less effective coordi- nation and control of such policy, the distortion of traditional policy- making processes, and the waste of the taxpayers' money through overlapping of functions and duplication of effort." Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/1',6 : CIA-RDP74B00415R000600120003-6 Section 602-Commzission on the Organization of the Government for the Conduct of Foreign Policy Subsection (a) establishes a Commission on the Organization of the Government for the Conduct of Foreign Policy. Subsection (b) sets forth the composition of the Commission and the procedure for the appointment of members. The Commission shall be composed of twelve members, who shall be appointed as follows : (1) four members appointed by the President, two from the Executive Branch of the Government and two from private life; (2) four members appointed by the President of the Senate, two from the Senate and two from private life; and (3) four members appointed by the Speaker of the House of Representatives, two from the House of Representatives and two from private life. Subsection (c) states that the Commission shall elect a chairman and a vice chairman from among its members. Subsection (d) provides that seven members of the Commission shall constitute a quorum. Any vacancy in the Commission shall not affect its powers, and the vacany shall be filled in the same manner in which the original appointment was made. Subsection (e) authorizes members of the Commission who are not V employed by the Government to receive $145 a day (including travelloo time) during the times when they are engaged in the actual perform- ance of their duties as members of the Commission. It provides that members of the Commission who are officers or employees of the United States shall serve without additional com- pensation and that all members of the Commission shall be reimbursed for travel, subsistence, and other necessary expenses incurred in the performance of their duties. Section 603-Duties of the Commission Section 603 contains the mandate to the Commission. It orders the Commission to study and investigate the organization, methods of operation, and powers of all departments, agencies, independent estab- lishments, and instrumentalities of the United States Government participating in the formulation and implementation of United States foreign policy and to make recommendations which the Commission considers appropriate to provide improved governmental processes and programs in the formulation and implementation of foreign policy, including, but not limited to, recommendations with respect to- (1) the reorganization of the departments, agencies, indepen- dent establishments, and instrumentalities of the Executive Branch participating in foreign policy matters; (2) more effective arrangements between the Executive Branch and Congress, which will better enable each to carry out, its con- stitutional responsibilities; (3) improved procedures among departments, agencies, inde- pendent establishments, and instrumentalities of the United States Government to provide improved coordination and control with respect to the conduct of foreign policy ; (4) the abolition of services, activities, and functions not neces- sary to the efficient conduct of foreign policy; and (5) other measures to promote economy, efficiency, and im- proved administration of foreign policy. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-q Approved For Release 2001/11/16 : C% DP74B00415R000600120003-6 The Commission's mandate is broad and farreaching in keeping with the importance of the problems that it will consider. The Copn- inittee intends that the Commission shall study all aspects of the gov- ernmental system for making and conducting policy as well as current programs and activities relating to our foreign policy. The Committee expects the Commission to give special consideration to Congress- Executive Branch relationships, including, but not limited to, the issues of executive privilege, access to information, the security cla$si- fication system. and more effective ways to further the intentions of the drafters of the Constitution concerning the coordinate-relationship of the Congress and the President in the formulation of foreign policy. With respect to the Executive Branch, it is the Committee's intent that the Commission shall consider the activities of all agencies and offices within the Executive Branch which have an impact on foreign policy or the conduct of our affairs abroad, including all inter-agency ,r- rangeanents for the control and coordination of all matters relating to forei,?,n policy. Subsection (b) provides that the Commission shall submit a compre- hensive report to the President and Congress, not later than June 30, 1971, containing the findings and recommendations of the Commission with respect to its study and investigation. Its recommendations may include proposed constitutional amendments, legislation, and adnin- istrative actions the Commission considers appropriate in carrying out its duties. Section 604-Powers of the Commission This section sets forth the powers of the Commission. It empowers the Commission or, on the authorization of the Commission, any sub- committee or member thereof, to hold hearings and sit and act at such times and places, administer oaths, and require, by subpena or other- wise, the attendance and testimony of such witnesses and the produc- tion of such books, records, correspondence, memorandums, papers, and documents as the Commission or subcommittee or member may deem advisable. Subpenas may be issued under the signature of the chairman of the Commission, of any such subcommittee, or any desig- nated member, and may be served by any person designated by the chairman or a member. Subsection (b) authorizes the Commission to secure directly f>om any executive department, bureau, agency, board, commission, office, independent establishment, or instrumentality information, sugges- tions. estimates, and statistics for the purpose of this Act. Each such department, bureau, agency, board, commission, office, establishment, or instrumentality is authorized and directed to furnish such infor#na- tion, suggestions., estimates, and statistics directly to the Commission, upon request made by the chairman or vice chairman. Sec. 605-Staff of the Comim.ission This section authorizes the Commission to appoint and fix the com- pcnsation of such personnel as it deems advisable, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1603CIA-RDP74B00415R000600120003-6 Subsection (b) authorizes the Commission to procure the services of experts and consultants in accordance with section 3109 of title 5, United States Code, but at rates not to exceed the daily rate paid a person occupying a position at GS-18. A staff of adequate size, composed of the best talent the nation has to offer, is essential to the successful fulfillment of the Commission's mandate. The Committee expects the Commission to take such steps as may be necessary to insure that it has a competent staff of sufficient size. Sec. 606-Expenses of Commission .Section 606 authorizes the appropriation of such sums as may be necessary to carry out the provisions of this title. TITLE VII. TERMINATION OF HOSTILITIES IN INDOCHINA Section 701, hereafter referred to as the Case-Church amendment, would bring about a total withdrawal of all American military forces from Indochina, provide an inducement for the release of American prisoners of war and an accounting of those Americans missing in ac- tion, and reinforce Title VI of Public Law 92-156 (known as the Mansfield amendment). It is also designed to give the President's pro- gram of Vietnamization the best possible chance for success. The Case-Church amendment utilizes Congress' power of the purse. It prohibits the expenditure or obligation of funds for the mainte- nance or support of United States military forces in or over North or South Vietnam, Cambodia, or Laos, on or after December 31, 1972. This means that, beyond this explicit date, the purse strings will be drawn shut and there will be no financing of American armed forces for the purpose of engaging any further in the war on the Indochina peninsula, once an agreement is reached for the release of U.S. pris- oners of war now held by the Government of North Vietnam and forces allied with that Government as well as an accounting for all Americans missing in action who have been held or known to be held by the North Vietnamese or its allies. The Committee is convinced that the best way to get American prisoners home, other than through a negotiated settlement, is to bring all of our troops, airmen, and sailors home. That is the objective of this provision. Case-Church, on the other hand, does not prohibit the furnishing of military assistance nor the maintenance of traditional Military Assistance Advisory Groups (MAAGs) in the countries of Indochina. U.S. monies and materiel can be provided the various P-overnrnents of Indochina, but participation by U.S. personnel shall be limited to small numbers of technicians responsible for the distribution and end- use checking of said monies and materiels only. Advisers of any kind are barred from involvement throughout Indochina, as they are al- ready in Cambodia by Section 7 of Public Law 91-652 (known as the Cooper-Church amendment). There shall also be the normal diplo- matic complement of military attaches. The Case-Church provision, approved by a vote of 9-1, is the latest attempt by the Committee to bring about an orderly and rapid ter- mination of our military involvement in the war in Indochina. It follows on the two Cooper-Church amendments which are now law. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 1QA-RDP74B00415R000600120003-6 These bar the, introduction of U.S. ground combat troops into Laos, Thailand, and Cambodia, plus American military advisers in Cam- bodia. It follows the repeal of the Gulf of Tonkin Resolution. It fol- lows the Mansfield amendment which passed the Senate three times last year and was enacted into law, setting a government policy to terminate U.S. military operations in Indochina by a date certain and withdrawing all our forces contingent upon the release of all American POWs. Another Cooper-Church amendment to end U.S. military involvement in Indochina was deleted from the Foreign As- sistance Authorization bill by the Senate last October 28th by one vote. The. Case-Church provision is an example, too, of the Committee's efforts to restore the proper Constitutional balance between Congress and the Executive branch in matters of war and peace. In 1969, the Senate voted for the Commitments Resolution ; on April 13, 1972, the Senate passed the War Powers bill, making explicit what the Presi- dent can and cannot do vis-a-vis the Constitution in engaging the awned forces of the United States in hostilities. The Committee believes that for American national interest to be served and for the President's Policy of Vietnamization to succeed, America's allies in Indochina must be put to the test of defending themselves against hostile forces without U.S. military involvement and back-up support. Such a time is now, not five years or 20 years from now. After so many- years of U.S. participation in the Indochina war, it is the strong view of the Committee that the United States has ful- filled its commitment in arming and assisting as well as in engaging in combat. for another country. In fact, the United States has done everything legitimately possible for South Vietnam to help it stand as a nation on its own two feet. If it is unable to do so now, neither the bornhinrr of North Vietnam, the use of more devastating military tac- tics, or the continued presence of Americans will enable it to do so. If the South Vietnamese are to become self-reliant on the battlefield, then 1972 is the year for total American military withdrawal and for a total take-over of the war by the peoples of Indochina themselves. COST ESTIMATES Section 252(a)(1) of the Legislative Reorganization Act of 1970 requires that committee reports on bills and joint resolutions contain: "(A) an estimate, made by such committees, of the costs which would be incurred in carrying out such bill or joint resolution in the fiscal year in which it is reported and in each of the five fiscal years following such fiscal year ..." The Act also requires that the com- rnittee's cost estimate be compared with any estimates made by a Federal agency. The committee estimates that the cost of carrying out the provisions of this bill during FY 1973 will be approximately $905,000,000 which is the. amount of the authorizations of appropriations approved for the year. This bill contains only a one-year authorization for each of the agencies involved, except the Arms Control and Disarmament Agency for which a two-year authorization was provided. The Com- mnittee expects to review the operations of these agencies on an annual basis and to make such adjustments in authorizations of appropria- Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/161:jIA-RDP74B00415R000600120003-6 tions as may be called for under the circumstances each time. The Committee has adopted a provision requiring a cutback in overseas personnel and established a commission which should result in im- provements in the management of the nation's foreign affairs with consequent savings to the taxpayers. The Committee is, therefore, unable to make any realistic projection of costs over the next five years at this point. However, a straight line projection of the amounts authorized for this year, excluding the special one-time authorization for aid to refugees, would amount to $4,525,000,000 without taking into account the effects of inflation or other unforeseeable factors. The cost estimates supplied by the agencies are as follows: Administration of foreign affairs---------------------------- $289.5 $312.6 $321.1 324.3 334.2 International organizations and conferences------------------ 188.3 212.0 230.8 250.8 272.9 International commissions---------------------------------- 18.2 23.5 23.0 11.8 9.2 Educational exchange------------------------------------- 59.2 61.9 64.4 67.1 70.2 Other---------------------------------------------------- 8.2 8.7- 9.0 9.5 9.9 Total, Department of State--------------------------- 563.4 618.7 648.3 663.5 696.4 ' Excludes budget amendments due to pay costc and dollar devaluation, totaling $15,100,000. Above represents only known mandatory and nondiscretionary projections. No expansion of present programs or other similar increases are reflected. Funding(thousands) ---------------------------- $88,027 $93,132 $93,034 $92,724 $92,724 Program data: Trainee input_______________________________ 5,500 6,000 6,000 6,000 6,000 Man-years: Volunteers----------------------------- 7,138 7,380 7,290 7,200 7,200 Trainees_______________________________ 1, 308 1, 240 1,240 1, 240 1,240 --------------------------- Total-------------------------------- 8,446 8,620 8,530 8,440 8,400 Fiscal year end strength: Volunteers----------------------------- 7,000 7,250 7,160 7,070 7,070 Trainees------------------------------- 1,400 2,685 2: 695 2,685 2,685 r The above estimates represent simple projections of cost expressed in constant dollars at prices existing at the time the estimates are prepared. They are not intended to predict future economic conditions, and do not reflect possible changes in the scope or quality of the projected programs which might result from experience gained in actual practice. Further, the resources which might appropriately be applied in later years will require a reexamination of the relative priorities of this and other Government programs, in the light of economic and other circumstances then prevailing. Thus, the esti- mates do not represent a commitment as to amounts to be included in future budgets. The U.S.I.A. estimates that for FY 1973-77 the cost of its programs and activities will total $1,092,000,000. The ACDA estimates, that in addition to the FY 1973 and 1974 authorization contained in this bill, its requirements for FY 1975, 1976 and 1977 will be $12,000,000, $13,000,000, and $1.4,000,000 respectively. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/161bCIA-RDP74B00415R000600120003-6 CHANGES IN EXISTING LAW In compliance with subsection 4 of rule XXXIX of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman) : Text of Public Law 885, 84th Congress (S. 2569), 70 Stat. 890, approved August 1, 1956, as amended by Public Law 86-707 (H. It. 7758), 74 Stat. 700, approved September 6, 1960. Public Law 86-723 (S. 2633), 74 Stat. 847, approved September 8, 7060. Public. Law 87-565 (S. 2996), 76 Stat. 263, approved August 1, 1962, and Public, Law 88-205 (H. R. 7885), 77 Stat. 391, approved December 16, 1963 AN ACT To provide certain basic authority for the Department of State SEC. 15. (a) Notwithstanding any other provision of law, no ap- propriation shall he made to the Department of State tinder any law for any fiscal year commencing on or after July 1, 1972, unless pre- viously authorized by legislation hereafter enacted by the Congress. The provisions of this subsection shall not apply to, or affect in any man- ner, permanent appropriations, trust funds, and other similar accounts administered by the Department as authorized by law. * * * * * * Text of Pub lie, Law 73, Sist Congress (S. 1704), 63 Stat. 111, approved May 26, 1949, as amended by Public Law 250, 84th Congress (S. 2237), 69 Stat. 536, approved August 5 1955, Public. Law 85-477 (H.R. 12181), 72 Stat. 274, approved Juno 30, 1958, Public Law 85-524 (S. 1832j, 72 Stat. 363 approved July 18, 1958, Public Law 86-117 (S. 1877), 73 Stat. 265, approved July 30, 1959, and Public Law 88-426 (H.R. 11049), 78 Stat. 424, approved August 14, 1964 AN ACT To strengthen and improve the organization and administration of the Iepartment of State, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, [That there shall be in the Department of State in addition to the Secretary of State an Under Secretary of State, two Deput Under Secretaries of State, and eleven Assistant Secretaries of Statei That there shall be in the Department of State, in addition to the Secretary of State, a Deputy Secretary of State, two Deputy Under Secretaries of State, and twelve Assistant Secretaries of State. Excerpts from Title 5, United States Code CHAPTER 53-PAY RATES AND SYSTEMS Subchapter III-Executive Schedule Pay Rates ? 5313. Positions at level II Level 1I of the Executive Schedule applies to the following positions, for which the annual rate of basic pay is $42,500: (I) Deputy- Secretary of Defense. (2) [Under Secretary of State.] Deputy Secretary of State. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/161jIA-RDP74B00415R000600120003-6 ? 5315. Positions at level IV Level IV of the Executive Schedule applies to the following positions, for which the annual rate of basic pay is $38,000: (22) Assistant Secretary of State [(11)] (12). CHAPTER 83-RETIREMENT ? 8331. Definitions For the purpose of this subchapter- (1) "employee" means- ( * * * * * * (H) an individual employed by Gallaudet College; [and] (I) an individual appointed to a position on the office staff of a former President under section 1(b) of the Act of August 25, 1958 (72 Stat. 838) ; and (J) an alien (i) who was previously employed by the Govern- ment, (ii) who is employed full time by a foreign government for the purpose of protecting or furthering the interests of the United States during an interruption of diplomatic or consular relations, and (iii) ,for whose services reimbursement is made to the foreign government by the United States; Military Personnel and Civilian Employees' Claims At of 1964 (3 U.S.C. 241(b)(1)) [(b) (1) Subject to any policies the President may prescribe to effectu- ate the purposes of this subsection and under such regulations as the head of an agency, other than a military department, the Secretary of the Treasury with respect to the Coast Guard, or the Department of Defense, may prescribe, he or his designee may settle and pay a claim arising after the effective date of this Act against the United States for not more than $6,500 made by a member of the uniformed services under the jurisdiction of that agency or by a civilian officer or employee of that agency for damage to, or loss of, personal property incident to his service. If the claim is substantiated and the possession of that property is determined to be reasonable, useful, or proper under the circumstances, the claim may be paid or the property replaced in kind. This subsection does not apply to claims settled before its enactment.] (b) (1) Subject to any policies the President may prescribe to effectuate the purposes of this subsection and- (A) under regulations the head of an agency (other than a military department, the Secretary of the Treasury with respect to the Coast Guard, the Department of Defense, or an agency or office referred to in subparagraph (B) of this paragraph) may prescribe for his agency or part thereof, he or his designee may settle and pay a claim arising after the effective date of this Act against the United States for not more than $6,500 made by a member of the uniformed services under the jurisdiction of that agency or by a civilian officer or employee of that agency or in the case of ACTION, all of that part of ACTION Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1q CIA-RDP74B00415R000600120003-6 other than the office referred to in such subparagraph, for damage to, or loss of, personal property incident to his service; and (B) under regulations the Secretary of State, the Administrator for the Agency for International Development, the Director of the United States Information Agency, the Director of the United States Arms Control and Disarmament Agency, the Director of ACTION with respect to the office of ACTION engaged primarily in carrying out the Peace Corps Act, and the Board of Directors of the Overseas Private Investment Corporation may prescribe for their agencies or, in the case o ,CTIO11r f , ,for such, office, he or his designee may settle and pay a claim arising after the effective date against the United States for not more than $10,000 made by a civilian officer or employee of such agency or office for damage to, or loss of personal property incident to his service. I f the claim is substantiated and the possession of that property is deter- mined to be reasonable, useful, or proper under the circumstances, the claim may be paid or the property replaced in kind. This subsection does not apply to claims settled before August 31, 1964. Foreign Service Act of 1946, as amended Text of Public Law 724, 79th Cong. [II.R. 6967], 60 Stat. 999, approved August 13, 1946; as amended by P.L. 73, 81st Cong. [S. 17041, 63 Stat. 111, May 26,1949; P. L. 160, 81st Cong. [If. R. 5100], 63~Stat. 407, July 6, 1949; P.L. 759, 83d Cong. [II.R. 9910], 68 Stat. 1051, August 31, 1954; P.L. 22, 84th Cong. [H.R. 4941], 69 Stat. 24, April 5, 1955; Y.L. 250, 84th Cong. [S. 2237], 69 Stat. 536, August 5, 1955; P.L. 726, 84th Cong. [H. R. 11356], 70 Stat. 555, July 18, 1956; P.L. 828, 84th Cong. [S. 3481], 70 Stat. 704, July 28, 1956; P.L. 85 462 [S. 7341, 72 Stat. 203, June 20, 1958; P.L. 85-477 [H.R. 121811, 72 Stat. 261, June 30,1968; P.L. 86-707 [II.R. 77581, 74 Stat. 795, September 6, 1960; P.L. 86-723 [S. 2633], 74 Stat. 831, September 8, 1960; P.L. 87- 195 [S. 1983], 75 Stat. 424, September 4, 1961; P.L. 87-793 IHI.R. 7927], 76 Stat. 832, October 11, 1962; P.L. 88-205 [H.R. 7885], 77 Stat. 379, December 16, 1963; P.L. 88-426 [H.R. 110491, 78 Stat. 400, August 14, 1964; I'. L. 89-301 IH.R. 102811, 79 Stat. 1111, October 29, 1965; P.L. 89-308 IH.R. 4170], 79 Stat. 1129, October 31, 1965: Reorganization Plan No. 4 of 1965 [30 F.R. 9353, July 28, 1965]; P.L. 8934S [S. 2150], 79 Stat. 1312. November, 1965; C.L. 89 -504 [H.R. 14122], 80 Stat. 288, July 18, 1966; P.L. 89-554 [II.R. 10104], 80 Stat. 378, September 6, 1966; P.C. 89-673 [S. 2463], 80 Stat. 952, October 15, 1966; and P.L. 90-494 (S. 633], 82 Stat. 810, August 20, 1968; P.L. 90-206 [H.R. 7977], 81 Stat. 632, December 16, 1967; P.L. 91-201 [H.R. 14789], 84 Stat. 17, February 28, 1970 Y.L. 91-231 [S. 3690], 84 Stat. 195, April 15, 1970; and F.L.91-656 [H.R. 13000], 84 Stat. 1946, January 8, 1971. AN ACT To improve, strengthen, and expand the Foreign Service of the United States and to consolidate and revise the laws relating to its administration. Part A-Principal Diplomatic Representatives APPOINTMENTS SEC. 501. (a) The President shall, by and with the advice and con- sent of the Senate, appoint ambassadors and ministers, including career ambassadors and career ministers. (b) The President may, in his discretion, assign any Foreign Service officer to serve as minister resident, charge d'affaires, commissioner, or diplomatic agent for such period as the public interest may require. (c) On and after the date of enactment of the Foreign Relations Authori- ation Act of 1972, no person shall be designated as ambassador or minister, and no person shall use the title of ambassador, or be designated to serve in any position or use any title which includes either of those words, unless that person is appointed as an ambassador or minister in accordance with subsection (a) of this section or clause 3, section 2, of section 2, of article II of the Constitution, relating to recess appointments. * * * * * * * Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1O9CIA-RDP74B00415R000600120003-6 TITLE VI-PERSONNEL ADMINISTRATION [SEC. 623. The Secretary is authorized to establish, with the advice of the Board of the Foreign Service, selection boards to evaluate the performance of Foreign Service officers, and upon the basis of their findings the Secretary shall make recommendations to the President for the promotion of Foreign Service officers. No person assigned to serve on any such board shall serve in such capacity for any two consecutive years.] SEC. 623. (a) The Secretary shall establish, with the advice of the Board of the Foreign Service, selection boards to evaluate the performance of Foreign Service officers; and upon the basis of their findings, which, except for career ambassadors and career ministers, shall be submitted to the Secretary in rank order by class or in rank order by specialization within a class, the Secretary shall make recommendations in accordance with the findings to the President for the promotion of Foreign Service officers. No person assigned to serve on any such board shall serve in such capacity for any two consecutive years. (b) In special circumstances, which shall be set forth by regulations, the Secretary may recommend to the President the promotion of a Foreign Service officer who has received a recommendation for a promotion by a grievance panel. FOREIGN SERVICE OFFICERS WHO ARE CAREER AMBASSADORS OR CAREER MINISTERS [SEC. 631. Any Foreign Service officer who is a career ambassador or a career minister, other than one occupying a position as chief of mission or any other position to which he has been appointed by the President, by and with the advice and consent of the Senate, shall upon reaching the age of sixty-five, be retired from the Service and receive retirement benefits in accordance with the provisions of section 821, but whenever the Secretary shall determine it to be in the public interest, he may extend such an officer's service for a period not to exceed five years. PARTICIPANTS IN THE FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM WHO ARE NOT CAREER AMBASSADORS OR CAREER MINISTERS 62 [SEC. 632. Any participant in the Foreign Service Retirement and Disability System, other than one occupying a position as chief of mission or any other position to which he has been appointed by the President, by and with the advice and consent of the Senate, who is not a career ambassador or a career minister shall, upon reaching the age of sixty, be retired from the Service and receive retirement benefits in accordance with the provisions of section 821, but whenever the Secretary shall determine it to be in the public interest, he may extend such participant's service for a period not to exceed five years.] Approved For Release 2001/11/16 : CIA-RDP74BOO415R000600120003-6 Approved For Release 2001/11/16 YEA-RDP74B00415R000600120003-6 FORETON SERVICE OFFICERS WHO A RE CAREER AMBASSADORS SEC 681. Any. Foreign Service officer who is a career ambassador, other than one occupyng a position as chief of mission or any other position to wh.?:ch he has been appointed by the President, by and with the advice and consent of the Senate, shall be retired from the Service at the end of the month in which he reaches age sixty-five and receive retirement benefits in accordance with the provisions of section 821, but whenever the Secretary shall determine it to be in the public interest, he may extend such an officer's service for a period not to exceed five years. Any such officer who hereafter completes a period of authorized service after he reaches age sixty-five Shall be retired at the end of the month in which he completes such service. PARTICIPANTS IN TTIE FOREIGN SERVICE RETIREMENT AND DISABILITY 5YS'~'/%ir WHO ARE NOT CAREER AMBASSADORS SEC. 632. Any participant in the Foreign Service Retirement and L)isability System, other than one occupying a position as chief of mission or any other position to which he has been appointed by the President, by and with the advice and consent of the Senate, who is not a career ambassador shall be retired from the Service at the end of the month in which he reaches age sixty and receive retirement benefits in accordance with the provisions of section 821, but whenever the Secretary shall determine it to be -in, the public interest, he may extend such participant's .service for a period not to exceed five years. Any such officer who hereafter completes a period of authorized service after he reaches age sixty shall be retired at the end of the month in which he completes such service. PART .I-FOREIGN SERVICE GRIEVANCES STATEMENT OF PURPOSE SEC. 6!71. It is the purpose of this part to provide officers and employees of the Service and their survivors, a grievance procedure to insure the fullest measure of due process, and to provide for the just consideration and resolution of grievances of such officers, employees, and survivors. REGULATIONS OF THE SECRETARY SEc. 6.92. The Secretary shall, consistent with the purposes stated, in section 691 of this Act, implement this part by promulgating regulations, and revising those regulations when necessary, to provide for the consid- eration and resolution of grievances by a board. No such regulation promulgated by the Secretary shall in any manner alter or amend the provisions for due process established by this section for grievants. The regulations shall include, but not be limited to, the following: (1) Any grievant shall be entitled to file a grievance with the board for flits consideration and resolution. For the purposes of the regulations- (A) "grievant" shall mean any officer or employee of the Service, or any such officer or employee separated from the Service, who is a citizen of the United States, or in the case of the death of the officer or em- ployee, a surviving spouse or dependent family member of the officer or employee; and Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1q,1,lCIA-RDP74B00415R000600120003-6 (B) "grievance" shall mean a complaint against any claim of in- justice or unfair treatment of such officer or employee arising from his employment or career status, or from any actions, documents, or records, which could result in career impairment or damage, monetary loss to the officer or employee, or deprivation of basic due process, and shall include, but not be limited to, actions in the nature of reprisals and discrimination, actions related to promotion or selection out, the contents of any efficiency report, related records, or security records, and actions in the nature of adverse personnel actions, in- eluding separation ,for cause, denial of a salary increase within a class, written reprimand placed in a personnel file, or denial of allowances. (2) (,J,) The board considering and resolving grievances shall be com- posed of independent, distinguished citizens of the United States well known for their integrity, who are not officers or employees of the Depart- ment, the Service, the Agency. for International Development, or the United States Information Agency. The board shall consist of a panel of three members, one of whom shall be appointed by the Secretary, one of whom shall be appointed by the organization accorded recognition as the exclusive representative of the officers and employees of the Service, and one who shall be appointed by the other two members. However, if such two members are unable to agree on an individual to be appointed as the third member within ten days after the second of such two members is appointed, the Chief Judge of the United States Court of Appeals for the District of Columbia Circuit shall appoint the third member. If members of the board (including members of additional panels, if any) find that additional panels of three members are necessary to consider and resolve expeditiously grievances filed with the board, the board shall determine the number of such additional panels necessary, and appointments to each such panel shall be made in the same manner as the original panel. Members shall (i) serve for two-year terms, and (ii) receive compensation at the same rate paid an individual at GS-18 of the General Schedule under section 5332 of title 5, United States Code. Whenever there are two or more panels, grievances shall be referred to the panels on a rotating basis. Except in the case of duties, powers, and responsibilities under this paragraph (2), each panel is authorized to exercise all duties, powers, and responsibilities of the board. (B) The board may obtain such facilities and supplies through the general administrative services of the Department, and appoint and fix the compensation of such officers and employees as the board considers necessary to carry out its functions. The officers and employees so appoint- ed shall be responsible solely to the board. All expenses of the board shall be paid out of funds appropriated to the Department for obligation and ex- penditure by the board. The records of the board shall be maintained by the board and shall be separate, from all other records of the Department. (3) A grievance under such regulations is forever barred, and the board shall not consider or resolve the grievance, unless the grievance is field within a period of six months after the occurrence or occurrences giving rise to the grievance, except that if the grievance arose prior to the date the regulations are first promulgated or placed into ef/ect, the grievance shall be so barred, and not so considered and resolved, unless it is filed within a period of one year after the date of enactment of this part. There shall be excluded from the computation of any such period any time during which the grievant was unaware of the grounds which are the basis of the grievance Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 1,gA-RDP74B00415R000600120003-6 and could not have discovered such grounds if he had exercised, as deter- mined by the board, reasonable diligence. (4) The board shall conduct a hearing in any case filed with it. A hearing shall be open unless the board for good cause determines otherwise. The grievant and, as the grievant may determine, his representative or representatives are entitled to be present at the hearing. Testimony at a hearing shall be given by oath or affirmation, which any board member shall have authority to administer (and this paragraph so authorizes). Each party (A) shall be entitled to examine and cross-examine witnesses at the hearing or by deposition, and (B) shall be entitled to serve interroga- tories upon another party and have such interrogatories answered by the other party. Upon request of the board or grievant, the Department shall promptly make available at the hearing or by deposition any witness under the control, supervision, or responsibility of the Department, except that if the board determines that the presence of such witness at the hearing would be of material importance, then the witness shall be made available at the hearing. If the witness is not made available in person or by deposi- tion within a reasonable time as determined by the board, the facts at issue shall be construed in favor of the grievant. Depositions of witnesses (which are hereby authorized, and may be taken before any official of the United States authorized to administer an oath or affirmation, or, in the case of witnesses overseas, by deposition on notice before an American consular officer) and hearings shall be recorded and transcribed verbatim. (5) Z11 ny grievant filing a grievance, and any witness or other person involved in a proceeding before the board, shall be free from any restraint, interference, coercion, discrimination, or reprisal. The grievant has the right to a representative of his own choosing at every stage of the proceed- ings. The grievant and his representatives who are under the control, supervision, or responsibility of the Department shall be granted reasonable periods of administrative leave to prepare, to be present, and to present the grievance of such grievant. Any witness under the control, supervision, or responsibility of the Department shall be granted reasonable periods of administrative leave to appear and testify at any such proceeding. (6) In considering the validity of a grievance, the board shall have access to any document or information considered by the board to be relevant, including, but not limited to, the personnel and, under appropriate security measures, security records of such officer or employee, and of any rating or reviewing officer (if the subject matter of the grievance relates to that rating or reviewing officer). Any such document or information requested shall be provided promptly by the Department. A rating officer or reviewing officer shall be informed by the board if any report for which he is responsible is being examined. (7) The Department shall promptly furnish the grievant any such document or information (other than any security record or the personnel or security records of any other officer or employee of the Government) which the grievant requests to substantiate his grievance and which the board determines is relevant to the proceeding. (8) The Department shall expedite any security clearance whenever necessary to insure a. fair and prompt investigation and hearing. (9) The board may consider any relevant evidence or information coming to its attention. (10) I f the board determines that (A) the Department is considering any action (including, but not limited to, separation or termination) which is related to, or may affect, a grievance pending before the board, Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 i,fgIA-RDP74B00415R000600120003-6 and (B) the action should be suspended, the Department shall suspend such action until the board has ruled upon such grievance. (11) Upon completion of the proceedings, if the board resolves that the grievance is meritorious- (A) in the case of a grievance not relating to the promotion, assign- ment, or selection out of such officer or employee, it shall direct the Secretary to grant such relief as the board deems proper under the circumstances, and the resolution and relief granted by the board shall be, final and binding upon all parties; and (B) in the case of a grievance relating to any such promotion, assignment, or selection out, it shall certify such resolution to the Secretary, together with such recommendations for relief as it deems appropriate and the entire record of the board's proceedings, includ- ing the transcript of the hearing, if any. The board's recommenda- tions are final and binding on all parties, except that the Secretary may reject any such recommendation only if he determines that the foreign policy or security of the United States will be adversely affected. Any such determination shall be fully documented with the reasons therefor and shall be signed personally by the Secretary, with a copy thereof furnished the grievant. After completing his review of the resolution, recommendation, and record of proceedings of the board, the Secretary shall return the entire record of the case to the board for its retention. No officer or employee of the Department participating in a proceeding on behalf of the Department shall, in any manner, prepare, assist in preparing, advise, inform, or otherwise participate in, any review or determination of the Secretary with respect to that proceeding. (12) The board shall have authority to insure that no copy of the Secretary's determination to reject a board's recommendation, no notation of the failure of the board to find for the grievant, and no notation that a proceeding is pending or has been held, shall be entered in the personnel records of such officer or employee to whom the grievance relates or any- where else in the records of the Department, other than in the records of the board. (13) A grievant whose grievance is found not to be meritorious by the board may obtain reconsideration by the board only upon presenting newly discovered relevant evidence not previously considered by the board and then only upon approval of the board. (14) The board shall promptly notify the Secretary, with recommenda- tions for appropriate disciplinary action, of any contravention by any person of any of the rights, remedies, or procedures contained in this part or in regulations promulgated under this part. SEC. 693. If a grievant files a grievance under this part, and if, prior to filing such grievance, he has not formally requested that the matter or matters which are the basis of the grievance be considered and resolved, and relief provided, under a provision of law, regulation, or order, other than under this part, then such matter or matters may only be considered and resolved, and relief provided, under this part. A grievant may not file a grievance under this part if he has formally requested, prior to filing a grievance, that the matter or matters which are the basis of the grievance be considered and resolved, and relief provided under a provision of law, regulation, or order, other than under this part. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1611f-IA-RDP74B00415R000600120003-6 SFC. 694. Notwithstanding any other provision of law, regulations promulgated by the Secretary under section 692 of this Act, revisions of such regulations, and actions of the Secretary or the board pursuant to such section, may be judicially reviewed in accordance with the provisions of chapter 7 of title 5, United States Code. United States Information and Educational Exchange Act of 1948, as amended Text of Public Law 402, 80th Congress [ILR. 3342], 62 Stat. 6, approved January 27, 1948; as amended by Public Law 298, 82d Congress [S. 2077], 66 Stat. 43, approved April 5, 1952; Public Law 414, 82d Congress (Ii.R. 5678], 66 Stat. 276, approved June 27, 1952; Public Law 665, 83d Congress [H.R. 9678], 68 Stat. 862, approved August 26, 1964; Public Law 555, 84th Congress [S. 2562], 70 Stat. 241, approved June 4, 1956; Public Law 726, 84th Congress [H.R. 11356], 70 Stat. 555, approved July 18, 1956; Public Law 85-477, 85th Congress, 72 Stat. 261, approved June 30, 1968; Public Law 87-139, 75 Stat. 339, approved August 14, 1961; and Public Law 87-256, 75 Stat. 527, approved September 21, 1961 AN ACT To promote the better understanding of the United States among the peoples of the world and to strengthen cooperative international relations. TITLE V--DISSEMINATING INFORMATION ABOUT THE UNITED STATES ABROAD SFc. 501. The Secretary is authorized, when he finds it appro- priate, to provide for the preparation, and dissemination abroad, of information about the United States, its people, and its policies, through press, publications, radio, motion pictures, and other infor- mation media., and through information centers and instructors abroad. Any such [press release or radio script] information shall not be disseminated within the United States, its territories, or possessions, but, on request, shall be available in the English language at the Depart.- inent of State, at all reasonable times following its release as informa- tion abroad, for examination by representatives of United States press associations, newspapers, magazines, radio systems, and stations, and, on request, shall be made available to Members of Congress. Sec. 503. (a) In. carrying out the provisions of this Act or any other law, no Government agency shall, directly or indirectly, prepare or assist in preparing for dissemination, or disseminate, information of any kind for, on behalf of, or in the name of, any foreign government. (b) No Government agency shall prepare, or assist in preparing infor- mation, for dissemination abroad, unless the information prepared by that agency, or with the assistance of that agency, clearly indicates at the beginning of such information the name of the Government agency so preparing or assisting. (c) For purposes of this section, the dissemination of information in- cludes, publication, broadcasting, and telecasting of information. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1611%IA-RDP74B00415R000600120003-6 SEC. 701. Appropriations to carry out the purposes of this Act are hereby authorized. The provisions of this section shall not apply to, or affect in any manner, permanent appropriations, trust funds, and other similar accounts administered by the Secretary or such agency as authorized by law. TITLE VIII-ADMINISTRATIVE PROCEDURES BASIC AUTHORITY See. 804. In carrying out the provisions of this Act, the Secretary, or any Government agency authorized to administer such provisions, may- (1) employ, without regard to the civil service and classification laws, aliens abroad for service in the United States relating to the translation or narration of colloquial speech in foreign languages when suitable qualified United States citizens are not available (such aliens to be investigated for such employment in accordance with procedures established by the Secretary or such agency and the Attorney General). Such persons may be admitted to the United States, if otherwise qualified, as nonimmigrants under section 101(a) (15) of the Immigration and Nationality Act (8 U.S.C. 1101 (a) (15)) for such time and under such conditions and procedures as may be established by the Secretary and the Attorney General; (2) pay travel expenses of aliens employed abroad for service in the United States and their dependents to and from the United States; (3) incur expenses for entertainment within the United States within such amounts as may be provided in appropriations Acts; (4) obtain insurance on official motor vehicles operated by the Secretary or such agency in foreign countries, and pay the expenses incident thereto; (5) notwithstanding the provisions of section 2680(k) of title 28, United States Code, pay tort claims. in the manner authorized in the first paragraph of section 2672 of such title, when such claims arise in foreign countries in connection with operations conducted abroad under this Act; (6) employ aliens by contract for services abroad; (7) provide ice and drinking water abroad; (8) pay excise taxes on negotiable instruments abroad; (9) pay the actual expenses of preparing and transporting to their former homes the remains of persons, not United States Government employees, who may die away from their homes while participating in activities conducted under this Act; (10) rent or lease, for periods not exceeding five years, offices, building, grounds, and living quarters abroad for employees carrying out this Act, and make payments therefor in advance; (11) maintain, improve, and repair properties used for information activities in foreign countries; (12) furnish fuel and utilities for Government-owned or leased property abroad; and (13) pay travel expenses of employees attending official interna- tional conferences, without regard to sections 5701-5708 of title 5, United States Code, and regulations issued thereunder, but at rates Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 1,16 not in. excess of comparable allowances approved for such conferences by the Secretary. TRAVEL EXPENSES SEc. 805. Appropriated funds made available for any fiscal year to the Secretary or any such Government agency, to carry out the provisions of this Act, for expenses in connection with travel of personnel outside the continental United States, including travel of dependents and trans- portation of personal effects, household goods, or automobiles of such personnel, shall be available for all such expenses in connection with travel or transportation which begins in that fiscal year pursuant to travel orders issued in that year, notwithstanding the fact that such travel or transportation may not be completed until the following fiscal year. Arms Control and Disarmament Act, as amended Text of Public Law 87-297, 75 Stat. 631, approved September 26, 1961, as amended by Public Law 88-186, 77 Stat. 341, approved November 26, 1963, by Public Law 89--27, 79 Stat. 118, a proved May 27, 1965, and by Public Law 90-314, 82 Stat. 129, approved May 23, 1968, and by Public Law 91-246, 64 Stat. 207, approved May 12, 1970, with annotations reflecting other pertinent statutes. AN ACT To establish a United States Arms Control and Disarmament Agency SEC. 49. (a) There are hereby authorized to be appropriated not to exceed $10,000,000 to remain available until expended, to carry out the purposes of this Act. In addition, there is hereby authorized to be appropriated for the fiscal years 1964 and 1965, the sum of $20,000,000, and for the three fiscal years 1966 though 1968, the sum of $30,000,000, and for the two fiscal years 1969 through 1970, the sum of $18,500,000, and for the two fiscal years 1971 and 1972, the sum of $17,500,000, and for the two fiscal years 1973 and 1974, the sum of $31,995,000,000, to remain available until expended, to carry out the purposes of this Act. Notwithstanding any other provision of this Act, not more than $7,000,000 of the funds appropriated pursuant to the preceding sentence for fiscal years 1969 through 1970 may be used for the purpose of research, development, and other studies conducted in whole or in part outside the Agency, whether by other government agencies or by public or private institutions or persons: Provided, That this limitation shall not apply to field test activities conducted pursuant to the authority of this Act. Notwithstanding any other provision of law, $9,995,000 of the amounts appropriated for fiscal year 1973 to carry out this Act shall be obligated and expended only to conduct seismic research. The Peace Corps Act, as amended Test of Public Law 87-293 [H.R. 75001, 75 Stat. 612, approved September 22, 1961, as amended by Public Law 87-442 [H.R. 107001, 76 Stat. 62, approved April 27, 1982 Public Law 87-793 (H.R. 79271, 76 Stat. 832, 865, approved October 11, 1962 Public Law 88-200 [II.R. 9009], 77 Stat. 359, approved December 13, 1963; Public Law 88- -285 [S. 2455], 78 Stat. 166, approved March 17 1964; Public Law 88426 [H.R. 11049], 78 Stat. 400, 421, approved August 14 1964; Public Law 88-448 [fI.R. 7381], 78 Stat. 484, 490 approved August 19, 1961; Public Law 89-134 [SI. 2054], 79 Stat. 549, approved August 21, 1965; Public Law 89-572 [S. 3418], 80 Stat. 764, approved September 13, 1966; Public Law 90-175 [S. 1031], 81 Stat. 542, approved December 5, 1967; Public Law 90-362 S. 29141, 82 Stat. 250, approved June 27, 1968; Public Law 91-99 [ILR. 11039], 83 Stat. 166, approved October 29, 1969; and Public Law 91-352 [S. 3430], 84 Stat. 464, ap- proved July 24, 1970 AN ACT To provide for a Peace Corps to help the peoples of interested countries and areas in meeting their needs for skilled manpower Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16.1'CIA-RDP74B00415R000600120003-6 SEC. 3. (a) The President is authorized to carry out the programs in furtherance of the purposes of this Act, on such terms and conditions as he may determine. (b) [There is hereby authorized to be appropriated to the President for the fiscal year 1971 not to exceed $98,800,000] There are authorized to be appropriated to the President for the fiscal year 1973 not to exceed $77,000,000 to carry out the purposes of this Act: Provided however, That not to exceed $500,000 of funds made available hereunder for fiscal year 1967 shall be obligated under contracts or agreements to carry out research: Provided further, That no such contracts or agree- ments shall be executed unless the research in question relates to the basic responsibilities of the Peace Corps. Unobligated balances of funds made available hereunder are hereby authorized to be continued available for the general purposes for which appropriated and may at any time be consolidated with appropriations hereunder. None of the funds authorized to carry out the purposes of this Act shall be used to carry out the Volunteers to America Program conducted under the Mutual Educational and Cultural Exchange Act of 1961, as amended (22 U.S.C. 2451 et. seq.), or any similar program involving the service or training of foreign nationals in the United States. (c) There are authorized to be appropriated to the President for the purposes of this Act, in addition to funds otherwise available for such purposes, for fiscal year 1973, $5,000,000 in foreign currencies which the Secretary of the Treasury determines to be excess to the normal require- ments of the United States. TITLE III-ENCOURAGEMENT OF VOLUNTARY SERVICE PROGRAMS SEC. 301. (a) The Congress declares that it is the policy of the United States and a further purpose of this Act (1) to encourage countries and areas to establish programs under which their citizens and nationals would volunteer to serve in order to help meet the needs of less devel- oped countries or areas for trained manpower; (2) to encourage less developed countries or areas to establish programs under which their citizens and nationals would volunteer to serve in order to meet their needs for trained manpower; and (3) to encourage the development of, and participation in, international voluntary service programs and activities. (b) (1) Activities carried out by the President in furtherance of the purposes of clauses (1) and (2) of subsection (a) of this section shall be limited to the furnishing of knowledge and skills relating to the selection, training, and programing of volunteer manpower. None of the funds available for use in the furtherance of such purposes may be contributed to any international organization or to any foreign government or agency thereof; nor may such funds be used to pay the costs of developing or operating volunteer programs of such organization, government, or agency, or to pay any other costs of such organization, government, or agency. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/161.11IA-RDP74B00415R000600120003-6 Not more than [$300,000] $850,000 may be used in any fiscal year [1971] to carry out the provisions of clause (3) of subsection (a) of this section. Such funds may be contributed to educational institu- tions, private voluntary organizations, international organizations, and foreign governments or agencies thereof, to pay a fair and pro- portionate share of the costs of encouraging the development of, and participation in, international voluntary programs and activities. (e) Such activities shall not compromise the national character of the Peace Corps. [PEACE CORPS NATIONAL ADVISORY COUNCIL SEC. 12. (a) The President may appoint to membership in a board to be known as the Peace Corps National Advisory Council twenty- five persons who are broadly representative of educational institutions, voluntary agencies, farm organizations, and labor unions, and other public and private organizations and groups as well as individuals interested in the programs and objectives of the Peace Corps, to advise and consult with the President with regard to policies and programs designed to further the purposes of this Act. (b) Members of the Council shall serve at the pleasure of the Presi- (lent and meet at his call. They shall receive no compensation for their services, but members who are not officers or employees of the United states Government may each receive out of funds made available for the purposes of this Act a per diem allowance of $50 for each day, not to exceed twenty days in any fiscal year in the case of any such member, spent away from his home or regular place of business for the purpose of attendance at meetings or conferences and in necessary travel, and while so engaged may be paid actual travel expenses and per diem in lieu of subsistence and other expenses, at the applicable rate prescribed by the Standardized Government Travel Regulations, as amended from time to time.] The Strategic and Critical Materials Stock Piling Act (60 Stat. 5'96; 50 U.S.C. 98-98h) [ SEC. 10. Notwithstanding any other provision of law, on and after January 1, 1972, the President may not prohibit or regulate the impor- tation into the United States of any material determined to be strategic and critical pursuant to the provisions of this Act, if such material is the product of any foreign country or area not listed as a Communist- dominated country or area in general headnote 3(d) of the Tariff Schedules of the United States (19 U.S.C. 1202), for so long as the importation into the United States of material of that kind which is the product of such Communist-dominated countries or areas is not prohibited by any provision of law.] [SEC. 11] See. 10. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/1gCIA-RDP74B00415R000600120003-6 Retained Provisions of the Mutual Security Act of 1954, as amended SEC. 502. USE OF FOREIGN CURRENCY.-(a) Notwithstanding sec- tion 1415 of the Supplemental Appropriation Act 1953, or any other provision of law, proceeds of sales made under Section 550 of the Mutual Security Act of 1951, as amended, shall remain available and shall be used for any purposes of this Act, giving particular regard to the following purposes- (1) for providing military assistance to nations or mutual defense organizations eligible to receive assistance under this Act; .(2) for purchase of goods or services in friendly nations; (3) for loans, under applicable provisions of this Act, to in- crease production of goods or services, including strategic ma- terials, needed in any nation with which an agreement was negotiated, or in other friendly nations, with the authority to use currencies received in repayment for the purposes stated in this section or for deposit to the general account of the Treasury of the United States; (4) for developing new markets on a mutually beneficial basis; (5) for grants-in-aid to increase production for domestic needs in friendly countries; and (6) for purchasing materials for United States stockpiles. [(b) Notwithstanding section 1415 of the Supplemental Appropria- tion Act, 1953, or any other provision of law, local currencies owned by the United States, which are in excess of the amounts reserved un- der section 612(a) of the Foreign Assistance Act of 1961, as amended, and of the requirements of the United States Government in payment of its obligations outside the United States, as such requirements may be determined from time to time by the President, (and any other local currencies owned by the United States in amounts not to exceed the equivalent of $50 per day per person exclusive of the actual cost of transportation) shall be made available to appropriate committees of the Congress engaged in carrying out their duties under section 136 of the Legislative Reorganization Act of 1946, as amended, and to the Joint Committee on Atomic Energy and the Joint Economic Com- mittee and the Select Committees on Small Business of the Senate and House of Representatives for their local currency expenses: Provided, That each member or employee of any such committee shall make, to the chairman of such committee in accordance with regulations pre- scribed by such committee, an itemized report showing the amounts and dollar equivalent values of each such foreign currency expended and the amounts of dollar expenditures made from appropriated funds in connection with travel outside the United States, together with the purposes of the expenditure, including lodging, meals, transportation, and other purposes. Within the first sixty days that Congress is in session in each calendar year, the chairman of each such committee shall prepare a consolidated report showing the total itemized expendi- tures during the preceding calendar year of the committee and each subcommittee thereof, and of each member and employee of such committee or subcommittee, and shall forward such consolidated report to the Committee on House Administration of the House of Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 120 Representatives (if the committee be a committee of the House of Representatives or a joint committee whose funds are disbursed by the Clerk of the House) or to the Committee on Appropriations of the, Senate (if the committee be a Senate Committee or a joint committee whose funds are disbursed by the Secretary of the Senate). Each such report submitted by each committee shall be published in the Con- gressional Record within ten legislative days after receipt by thel Committee on House Administration of the House or the Committee' on Appropriations of the Senate.] (b) Notwithstanding section 1415 of the Supplemental Appropriation' Act, 1153, or any other provision of law, local currencies owned by the!. United States, which are in excess of the amounts reserved under section 612(a) of the Foreign Assistance Act of 1961, and which are determined' by the Secretary of the Treasury to be excess to the normal requirements of the United States, shall be made available to appropriate committees' of the Congress engaged in carrying out their duties under section 136 of the Legislative Reorganization Act of 1946, and to the Joint Committee on Atomic Energy and the Joint Economic Committee and the Select Committees on Small Business of the Senate and House of Representatives for their local currency expenses. Any such excess local currencies shall not be made available (1) to defray subsistence expenses or fees of wit- nesses appearing before any such committee in the United States, or (2) in amounts greater than the equivalent of $75 a day for each person, exclusive' of the actual cost of transportation. Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6 ADDITIONAL VIEWS Or SENATOR SPONG After discussing for several years the need for authorizing legisla- tion for the Department of State and U.S. Information Agency (USIA), Congress this year included in a foreign aid authorization bill a provision requiring periodic authorizations for the Department and USIA. I approve of the authorization requirement. We now have before us the results of our first, limited authorization efforts. In view of the desire of the committee, myself included, to require such authorizing legislation and in view of the fact that this is the first year we have had it, I believe we should not attach the amendment relating to Southeast Asia to this bill. Essentially this bill deals with administration of the affected agencies. Policy, which the Southeast Asia amendment represents, can be more appropriately handled in other legislation. For these reasons, I voted "present" when the amendment to termi- nate funds for activities in Southeast Asia on December 31, 1972, was considered in committee. I believe the Senate should express itself on Southeast Asia and have myself supported such an expression, in the form of the Mansfield amendment, on a number of occasions. I will support appropriate expressions in the future. I do, however, believe that it would be preferable for this authorization bill to be passed without policy amendments. 0 Approved For Release 2001/11/16 : CIA-RDP74B00415R000600120003-6