STATE/USIA AUTHORIZATIONS HEARINGS BEFORE THE COMMITTEE ON FOREIGN RELATIONS UNITED STATES SENATE NINETY THIRD CONGRESS SECOND SESSION ON S. 3117 TO AUTHORIZE APPROPRIATIONS FOR THE DEPARTMENT OF STATE, AND FOR OTHER PURPOSES S. 3118 T

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75B00380R000800080043-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 242
• Document Creation Date: December 12, 2016
• Document Release Date: December 28, 2001
• Sequence Number: 43
• Publication Date: March 12, 1974
• Content Type: REGULATION

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STATE/USIA AUTHORIZATIONS
HEARINGS
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
NINETY-THIRD CONGRESS
SECOND SESSION
ON
S. 3117
TO AUTHORIZE APPROPRIATIONS FOR TIIE DEPARTMENT OF
STATE, AND FOR OTHER PURPOSES
S. 3118
TO AUTHORIZE APPROPRIATIONS FOR THE UNITED STATES
INFORMATION AGENCY, AND FOR OTHER PURPOSES
S. 3119
TO AMEND THE DEPARTMENT OF STATE APPROPRIATIONS
AUTHORIZATION ACT OF 1973 AND THE FOREIGN SERVICE
BUILDINGS ACT, 1926
Printed for the use of the Committee on Foreign Relations
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COMMITTEE ON I+C'REIGN RELATIONS
J. W. FULBRIGHT, Arkansas, Chairman
JOHN SPARKMAN, Alabama GEORGE D. AIKEN, Vermont
MIKE MANSFIEI D, Montana CLIFFORD P. CASE, New Jersey
FRANK CHURCH, Idaho JACOB K. JAVITS, New York
STUART SYMINOTON, Missouri. HUGH SCOTT, Pennsylvania
CLAIBORNE PELL, Rhode Island JAMES B. PEARSON, Kansas
GALE W. McGEE, Wyoming CHARLES H. PERCY, Illinois
EDMUND S. MUSKIE, Maine ROBERT P. GRIFFIN, Michigan
GEORGE S. McGOVERN, South Dakota
HUBERT H. HUMPHREY, Minnesota
PAT M. HOLT, Chief of Staff
Aa'CHUa M. KOHL, Chief Clerk
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CONTENTS
Hearing Days : Page
Monday, March 11, 1974----------------------------------------- 1
Tuesday, March 12, 1974----------------------------------------- 163
Statements by :
Austin, Gilbert, Assistant Director, USIA, Near East, North Africa
and South Asia------------------------------------------------ 218
Boyatt, Thomas D., president, Governing Board, American Foreign
Service Association ; accompanied by Allen Harris, Lois Roth and
Herman Cohen------------------------------------------------- 136
Casey, William,, Under Secretary for Economic Affairs, Department
of State ; accompanied by Dean Brown, Deputy Under Secretary
for Management, and William C. Armstrong, Assistant Secretary
of State for Economic and Business Affairs---------------------- 64
Dillon, Dr. Dorothy, Assistant Director, USIA, Latin America------ 212
Donaldson, William, Under Secretary of State for Coordinating Secur-
ity Assistance ; accompanied by Seymour Weiss, Director, Bureau
of Military and Political Affairs,- Department of State ------------ 115
Keogh, Hon. James, Director, USIA; accompanied by Eugene P. Kopp,
Deputy Director, USIA----------------------------------------- 179
Shirley, John W., Assistant Director, USIA, Soviet Union and East
Europe ; accompanied by Kenneth Giddens, Director, Voice of
America, Robert Scott, Director, Motion Picture Service, Harold
Schneidman, Director, Information Center Service, and Lyle Cop-
mann, Director, Press Service----------------------------------- 194
Sisco, Joseph, Under Secretary of State for Political Affairs ; accom-
panied by Dean Brown, Deputy Under Secretary for Management,
and Seymour Weiss, Director, Bureau of Military and Political
Affairs, Department of State------------------------------------- 12
Insertions for the record :
Text of S. 3117, 93d Cong., 2d sess-------------------------------- 2
Text of S. 3119, 93d Cong., 2d sess-------------------------------- 2
Department of State, comparison of 1975 estimates with 1974 appro-
priations, table------------------------------------------------- 3
Administration of foreign affairs, salaries and expenses, table------- 5
Other Department of State appropriations, table -------------------- 6
Section-by-section analysis of S. 3117------------------------------ 7
Department of State, comparison of 1975 dollar authorization request
with 1973 and 1974 appropriations, table------------------------ 9
Department of State, comparison of 1975 position authorization re-
quest with 1973 and 1974 position authorizations------------------ 10
Numbers of civilian agency personnel overseas under jurisdiction of
diplomatic mission chiefs, December 31, 1973----------------- Facing 10
Report on overseas expenditures by the U.S. Government, table------ 11
Prepared statement of Joseph J. Sisco----------------------------- 17
Prepared statement of Hon. Joseph J. Sisco regarding fiscal year 1974
amendments --------------------------------------------------- 21
Clarification concerning U.S. Embassy facilities in East Berlin------ 27
Denial of visa to Gutierrez Alea---------------------------------- 30
Activities of U.S. Special Forces teams in Philippines--------------- 39
Cultural, scientific, and educational exchanges with the People's Re-
public of China------------------------------------------------ 41
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Insertions for the record-Continued Page
Department, of State comments on S 2802 --------------------------- 415
I)epartmeut. of State reaction to Senate Resolution 71_______________ 413
Expenses involved in maintaining Cuba policy______________________ 41)
Estimate of needs and impact of shortages and price increases on
poor countries --------__'
Prepared statement of lion. Willian J. Casey______________________ 71)
Appendix 1-"International Trade. Monetary and Financial Pol-
ic;y---The Decision Making Process".--------------------------- 77
Appendix I1--"Executive Branch Organization for International
E;cooonic Policy,"( oinnattee I riot of the Committee on Finance,
ITS. Senate, 93d Cong., 2d seis., February 18, 1974----------- 80
('i,st to U=.aited States of policy towt.rd Cuba----------------------- 96
'fatal i?.S, dollar reserves in possession of Arab oil producing nations,
table ---- ------------------ ------------------------------------- 100
Por capita income derived from Saudi Arabian oil reserves ---------- 101
Consumption of fuel in Southeast Asia for military purposes ---------- 120
Amount of fuel to be used in Cambodia and South Vietnam. fiscal year
1974 -- ---------------------------------------------------------- 12:L
Personnel in U.S. IIAAG in Portugal and ability to monitor effectively
against use of t'.S.-provided equipment in Africa_________________ 120
Additional question of Senator Gale McGee and State Department
response ------------------------------ -------------------------- 13L
Atlditionai questions for ttae record and state Department responses__ 132
Prepared statement of Tbomtu D. Poyatt---------------------------- 113
Attacbacent A-.AFSA s proposed revisions to the Foreign Service
Act ---------------------------------------------------------- 148
Attachment I3-A proposed bill------------------------------- 141)
Department of State. overtime payments to Foreign Service Officers,
calendar year 1973, tablc ----------------------------------------- 156
I)epartnient of State. percentage of representation funds retained by
Ambassadors, fiscal year 1.973, tatle-------------------- ----------- 161)
'Text of S. 3118, 93d (long., 2d sess---------------------------------- 163
Section-by-section analysis of S. 3115______________________________ 164
USIA, coaaiparison of 1971 request with 1973 and 1974 appropriations,
table -------------------------------------------------------------- 165
l'SIA, summary of 1975 luthc-rizatlon request, table ----------------- 1615
USIA, an,ilysis of agency positions by major organizational groupings
and appropriation from which funded, table______________________ 166
history of USIA appropriations, fiscal years 1954 through 1975, esti-
mate, table------------------------------------------------------ 167
USIA, comparison of agency operatng appropriations on a constant
dollar basis. table --------------------------------------- ----------- 1C
USIA, summary of salaries and expeises requirements, table --------- 168
Special international exhibitions. dollar and special foreign currency
accounts. table--------------------------------------------------- 1613
Acquisition and construction of radio facilities, table-------------- 161)
Number of USIA employees with sa aries over $15,000: $20,000; $30,-
000: and 835.000, tabl( -------------------------------------------- 169
List of publications currently being produced by USIA. showing fre-
quency. circulation and antI cipated fiscal year 1973 cost ----------- 170
Domestic dissemination of all USIA materials______________________ 170
USIA information centers, rending rooms and binational centers, and
their cfor fiscal year 1973, taltles________________ -
costs ------------ 171
List of top 50 hooks in I:ngish acquired by USIA during fiscal year
1973 ------------------------------------------------------------ 171
List of films produced, now in production and acquired by USIA, fiscal
year 1973------------------------------------------------------- 175
Annex to statement of John \V. Shirley, concerning question of area-
Inedia cooperation ---------------------------------------------- 203
Nate on USIA coverage of Seeretar:' Kissinger's visit to Panama____ 215
Prepared statement of Gilbert Austin --------------------------------- 219
Biography of Gilbert F. Austin ------------------------------------ 221
Assignment of Foreign Service Infcrtnation Officers________________ 221
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Insertions for the record-Continued page
Letter to Senator Claiborne Pell from Hon. James Keogh, Director
USIA, dated March 12, 1974, concerning selection out for time in
class ---------------------------------------------------------
230
Regulation on notification or removal from promotion list------------
231
Procedure for notification if addition to approved list results from
grievance board action-----------------------------------------
232
Materials distributed without USLA label--------------------------
234
Language designated positions------------------------------------
236
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STATE/USIA AUTHORIZATIONS
MONDAY, MARCH 11, 1974
UNITED STATES SENATE,
COMMITTEE ON FOREIGN RELATIONS,
Washington, D.C.
The committee met, pursuant to notice at 10 a.m. in room 4221, The
Dirksen Senate Office Building, Senator John Sparkman presiding.
Present: Senators Sparkman, Pell, Humphrey, Aiken, Case and
Percy.
Senator SPARICMAN. Let the committee come to order, please.
OPENING STATEMENT
This morning and this afternoon the Foreign Relations Committee
will conduct its annual hearings on the Department of State authoriza-
tion bill.
In the past, these hearings have proved valuable both to the com-
mittee and, I believe, to the Nation. They have served the purpose of
the law that requires the Department of State to keep the Foreign
Relations Committee fully and currently informed with respect to all
of its activities. We expect the hearings this year to serve the same
useful purpose.
The three witnesses we will hear today are the Department of State's
three Under Secretaries : Mr. Joseph Sisco, Under Secretary for Polit-
ical Affairs; Mr. William Casey, Under Secretary for Economic
Affairs; and Mr. William Donaldson, Under Secretary for Coordinat-
ing Security Assistance.
Mr. Sisco, appearing this morning, has been asked to present an
overview of U.S. foreign policy and the Department's budget and to
answer questions in those broad areas. Mr. Casey, appearing this after-
noon, has been asked to present an overview of international economic
policy issues-including trade, monetary and resource problems-and
also to discuss the process of interaction among U.S. Government
agencies in the formulation and implementation of policy. Also this
afternoon, Mr. Donaldson, who has been dealing almost entirely with
energy matters, has been asked to present an overview of the interna-
tional energy picture and, secondarily, to discuss the Department's
role in security assistance and political-military decisionmaking in
ge~ieral.
I would like to remind the witnesses of the provision of law that per-
mits witnesses to express their personal opinions and views and to make
personal recommendations when so requested by the committee.
Before we begin with the first witness, I will place in the record
a. copy of the bill, S. 3117, which authorizes a total appropriation of
$792 million for fiscal year 1975 along with certain explanatory ma-
terial.
(1)
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[Texts of S. 3117 and S. 3119 and explanatory material follow:_j'
[S. 3117, 93d Cong., 2d Sess.]
A BILL To authorize appropriations for Department of State, and for other purposes
Be it enacted by the Senate and House 9f Representatives of the United States
of American in Congress assembled. Tha; this Act may be cited as the "Depart-
ment of State Appropriations Authorizati )n Act of 1974".
AUTHORIZATION OF APPROPRIATIONS
SEC. 2. There are authorized to be appropriated for the Department of State
for the fiscal year 1975, .to carry out the authorities, functions, duties, ar.d re-
sponsibilities in the conduct of the foreigl affairs of the United States. including
trade negotiations, and other purposes authorized by law, the following amounts :
(1) for the "Administration of Foreign Affairs", $376,135,000;
000;
(2) for "International Organizations and Conferences", $229,604,000;
43) for "International Commissions", $112,407,000; of which $94,575.00(1
is authorized to be appropriated for ;he United States Section, International
Boundary and Water Co:ulmiesion to undertake such measures as may he
required to carry out the agreemem: with Mexico entitled "Permanent and
Definitive Solution to the International Problem of the Salinity of tha
Colorado River" ;
(4) for "liiducational Eixchange", $64,914,000;
(5) for "Migration and Refugee Assistance", $9,470,000.
SEC. 3. Appropriations made Under sation 2 of this Act are authorized toy
remain available until expended.
CERTAIN AUDITION AL AUTHORPLATION S OF APPROP IIIATI ONS
SEc. 4. In addition to amounts authorized by section 2 of this Act, there are
authorized to be appropriated for the Department of State for the fiscal year
1975 such additional amount; as may be necessary for increases in salary. pa '',
retirement, or other employee benefits authorized by law which arise subsequent
to the date of enactment of this Not.
Src. 5. In addition to the authorization contained in section 4 of this Act, there
is authorized to be appropriated not to exceed 5 per centum of each amount.
otherwise authorized in section 2 of this Act for urgent requirements which arise
subsequent to the date of enactment of this Act.
LrMITAT ION ON PAYMENTS
SFc. 6. There are hereby authorized to be appropriated funds for payment prior
to January 1, 1975, of United States expenses of membership in the United
Nations Educational, Scientific, and Cultural Organization, the International Civil
Aviation Organization, and the World Health Organization notwithstanding that
such payment; are in excess of 25 per !entuin of the total annual assessment of
such organizations.
[S. 3119, 93d Cong., `Zd Sees-]
A BILL To amend the. Department of State Appropriations Authorization Act of 1973
and the Foreign Service Buildings Act, 1926
Be it enacted by the senate and Hoagie of Representatives of the United titafes
of America in Congress assembled, That the Department of State Appropria-
tions Authorization Act of 1973 (87 htat. 451) Is amended as follows:
(1) In section 2(a) (1) thereof, providing authorization of appropriations
for the "Administration of Foreign Af?airs", strike out $282,565,000", and insert
in lieu thereof $304,568,000"? iri~+tions
(2) In section '2(a) (2) thereof, providing authorization of aplrn]
for "International Organizations and Conferences, strike out $211,279,000"
and insert in lieu thereof $212,777,000".
(3) In seeUon 2(b) (1) thereof, providing authorization of appropriations
for increases in salary, pay, retirement, or other employee benefits authorized
by law, strike out "$9,328,000" and it sort in lieu thereof "$1.6,711,000".
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Suc. 2. (a) Section 5315 of title 5, United States Code, is amended by adding
at the end thereof the following:
"(98) Assistant Secretary for Oceans and International Environmental
and Scientific Affairs, Department of State."
(b) Section 5316 (109) of such title 5 is repealed.
Slce. 3. Subsection (g) of section 4 of the Foreign Service Buildings Act,
1926 (22 U.S.C. 295), is amended as follows :
(1) In subparagraph (1) (A), strike out "$590,000" and insert in lieu thereof
"$631,000".
(2) In subparagraph (1) (C), strike out "$160,000" and insert in lieu thereof
"$204,000".
(3) In subparagraph (1) (E), strike out "$2,218,000" and insert in lieu there-
of the figure "$2,287,000".
(4) In subparagraph (2), strike out "$45,800,000" and "$21,700,000" and in-
sert in lieu thereof "$48,532,000" and "$23,066,000", respectively.
DEPARTMENT OF STATE
COMPARISON OF 1975 ESTIMATES WITH 1974 APPROPRIATIONS
Appropriations
1974
1975
Increase or
decrease
ADMINISTRATION OF FOREIGN AFFAIRS
Salaries and expenses:
Regular act___________________________________________________ $304,000,000
$353,500,000
+$49,500,000
Pending supplemental for Federal Salary and Wage Board increases- 13, 130, 000
--------------
-13,130, 000
Acquisition, operation, and maintenance of buildings abroad:
Regular act--------------------------------------------------- 21, 173,000
22,914,000
+1,741,000
Pending supplemental for Federal salary increases---------------- 185,000
_____________
-185,000
Total
Acquisition, operation, and maintenance of buildings abroad (special
foreign currency program) ---------------------------------------- 5,138,000
4,870,000
-268,000
Emergencies in the Diplomatic and Consular Service___________________ 2, 100,000
'
2, 100,000
--------------
Payment to Foreign Service retirement and disability fund_____________ 2,972,000
20, 535, 000
+17, 563,000
Subtotal___________________________________________________ 348,698,000
403,919,000
+55,221,000
INTERNATIONAL ORGANIZATIONS AND CONFERENCES
,Contributions to international organizations:
Regular act___________________________________________________ 200,000,000
214,079,000
+14
079
000
Supplemental appropriation act (Public Law 93-245, unobligated
balance lapsing)____________________________________________ 17,337,000
--- ----------
,
,
-17, 337, 000
Total______________________________________________________ 217,337,000
214,079,000
-3,i?58,000
Missions to international organizations:
Regular act --------------------------------------------------- 5,725,000
6,660,000
+935,000
Pending supplemental for Federal salary increases---------------- 226,000
--------------
-226,000
Total______________________________________________________ 5,951,000 6,660,000
+709,000
International conferences and contingencies:
Regular act ---------------------------- _-------- _------------- 4,500,000 6,400,000
+1,900,000
Supplemental appropriation act (Public Law 93-245) -------------- 1,700,000 --------------
-------
-1,700,000
--
Total -------------------------------------------------- ____ 6,200,000 6,400,000
+200,000
.International trade negotiations:
Regular act___________________________________________________ 1,700,000 2,465,000
+765
000
Pending supplemental for Federal salary increases---------------- 44, 000 --------------
,
-44,000
1,744,000 2,465,000
+721,000
Subtotal___________________________________________________ 231,232,000 229,604,000
-1,628,000
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Millions of Dollars
400 -
FY-1966 1967 1968 1969 1971 1971 1972 1973 1974 rn1915 r^
SALARIES AND EXPENSES
APPROPRIATIONS
Overseas
Domestic
is@>.Locals
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COMPARISON OF 1975 ESTIMATES WITH 1974 APPROPRIATIONS-Continued
1974 Increase or
1975 decrease
International Boundary and Water Commission, United States
and Mexico:
Salaries and expenses:
Reguiar act__________------------------ 4,284,000 4,701,000
Pendng supplemental for Federal salary and wage +417,000
board Isupplementa e
311,000 ......... ------- -311,000
Subtotal__________________________ 4,595,000 4,701,000 +106,000
Construction__________________________________________ 3,800,000 102,306,000
+98, 506, 000
American sections, international commissions:
Regular act___e__m__en______________________
-------------
Pending 950,000 1,370,000
,000
supplemental for Federal salary increases____._.___ 53,000 _________------- -j- -53420,000
Subtotal ________.__ 1,003,000 1,310,000
1367, 000
International Fisheries Commissions:
Regular act ---------------
P ___________________________3,517,000 4,030,000
ending supplemental for Federal salary increases ...... ___ 58,000 ---------------- -1-513, 000
-58,000
Subtotal3,515,000 4,030,000
+455,000
Total________________________ 12,973,000 112,407,000
-i-99, 434,000
EDUCATIONAL EXCHANGE
Mutual educational a
nd cultural exchange activities:
Regular act_____________________________________ 49 800,000 57,500,000
Pending supplemental for Federal salary Increases__________ 187,000 --------- +7,700,000
------ -787,000
Center for Subtotal Cultu__ral ____d__T _________________ 50,587,000 57,500,000
anechnical Interchange Between East and +6,913,000
Total West---- _-_-_-_-_-_-------------------- ---------------------- 6,700,000 7,414,000
+714,000
_________ 57,287,000 64,914,000
----- -1-7, 627000
OTHER
Payment to International Center
, Washington, District of Columbia- 2,200,000 ------- _........ -2,200,000
TOTAL APPROPRIATIONS
Regular act____________________
P 618,559,000 810,844,000
Supplemental Appropriation Act (Public Law93-245)_-______19,037,000________________ +-119,037,000
00
ending supplemental forFederal salary andwage board increases- 14,794,000 _________ -14,794, 000
Total, Department of State____________ 652,390,000 810,844,000
+158,454,000
ADMINISTRATION OF"FOREIGN AFFAIRS
SALARIES AND EXPENSES
This appropriation provides funds for the formulation and execution of the
foreign policy of the United States, including the conduct of diplomatic and
consular relations with foreign countries, diplomatic relations
with interna-
tional organizations, and related activities.
Domestic Americans Locals Total
Amount
1966__________ 4,831 4,236 5,772 14,839 $180,653,000 4 890 1968_______ 5,028 4,038 5,530 14,596 196,692,000
5,807 14,943 191,393,000
1969________________________
1970 5,043 3,756 5,242 14,041 208,088,600
_________________________________ 5,023 3,513 5,159 13,695 225,543,251
1972_________________________________ 4,696 3,461 55 030 13.441 ,079 13,236 250,361,
1973 000
--------------------------------- 4,805
1974___________ _ __ _ __ 3,490 5,17 13,412 270,161,500
1975(estimated)_______------- 4,957 3,608 5,1777 13,718 31 317,1300,000
3,689 5,283 13,929 353,500,000
i Adjusted for comparability to reflect merger of representation allowances appropriation. Fiscal year 1975 includes 100
Positions requested to fiscal year 1974 proposed supplemental.
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Budge' surynyaary _
-------- -- $304, 000, 000
Appropriation 1971 _
Pen(ling Supple)uel:.tal for Feceral SalaI,y and Wage Boar( 13 130, 000
--------------
increases ----?-? ------
Total Appropriation 1 ___-.--__ --------------- 317, 130, 000
Estimate, 1975: -- 347, 840,000
Estimate ----------------------------------------------------
Fiscal year 1975 Cost and fiscal year 1974 Proposed Sup- r; 660, (100
plenlental - - -------------------
Total estimate, 197.1 ___.----------- 353, 500, 000
Increase in appropriation ------------------ 36, 370, 000
J'reposed Supplemental for 1974 excluded.
01`11 EE i1PPROPRI AT)''AS
I1t addition to the foregoing alpjrropria,ions carried in the Departments of
State. Justice, and Conunercc, tl,e Jntliciiirv and Related. Agencies Appropriation
Act. the follotviltg ppropriatiO1a are wade to the Department by other legislative
Carl rt.ments.
_-_- __
Increase or
1974
1975
decrease
Funds appropriated in the Foreign Assistance and Related Ag(n-
cies Appropriation Act:
ation and retutee assistance _-_-_____------------
mi
11;9.556,
5 000
$9,470,000
-$86, OG
-36, 500, 000
gr
Assistance to refugees 'rom the Soviet Union -__ -. -_. --
Administrative and other expenses, sec. 627(b), Foreign Ac-
136,
4
800,000
_____
5,900, 000
+1,100,000
sisiance Act ------ ------------ ------------- - --_-
Subtotal ------.--------------- ----
,
511,856,000
15 370,000
35,486,000
Permanent and indefinite apptopriations:
d
000
200
15
20,100, 000
900, 000
+4,
----
Payment to foreign service retirement and disability fun
ld War
W
,
,
or
Educational exchange fund, payments by Finland
353,000
352,000
--1,000
0
0
I debt --------------------------
148,000
,
948,000
0
-2, 200,
International center, Washington, D.C------------------
328,000
2
2,328,000
----------------
Payment to the Repub is of Panama --------- _-----------
Subtotal ------- ------------ ---------- --
and
ti
J
21, 029, 000
23, 728, 000
+2,699,000
ce,
us
Funds appropriated in the Departments of State,
Commerce, the Judiciary, and Related Agencies Appropriat on
652, 390, 000
810, 844, 000
+158,454,000
Total, Department of State ----------------------------
.'24, 275, 000
849, 942,000
+125, 667, 00
Excludes $4,800,000 transferred from other accounts by P'esidential determination order for assistance to Pakistani
refugees in Bangladesh.
The following is a brief d.escr? -ption of the activities financed from Other
Appropriations
M1G0EATION AND RI;I'EIGEE ASSISTANCE
This appropriation provides for Unite( States assistance to migrants and refs -
gees through contributions to the Inteigovernmental Committee for European
1ligration, the United Nations High Commissioner for Refugees, and through
direct assistalice to or in behalf of refugees from various countries. It also
includes $50,000 for an annual U.S. contribution to the International Committee
of the Red Cross,.
ASSISTANCE TD RE#IJGEES FROM THE SOVIET UNION
This appropriation in fiscal years 1973 and 1974 provided for United States
assistance to Jewish or other similar refugees from the Union of Soviet Sceialiat
Republics. No funds are included for fiscal year 1975.
ADMINIS'T'RATION AND OTHER EXPENSES, IIECTION (137 (R), FOREIGN AMSOS'1'ANCE~ ACT
This 1 iropriation provides for the e bof the U.S. Missions toltine North
and
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Development, administration of the Mutual Defense Assistance Control Act, and
the supervision of military assistance and arms sales activities.
PAYMENT TO FOREIGN SERVICE RETIREMENT AND DISABILITY FUND
This is a permanent appropriation authorized by the Foreign Service Act
Amendments of 1969 (I'.L. 91-201) which requires the Secretary of the Treasury,
beginning in 1971, to make annual payments to the retirement fund on a sliding
percentage scale of an amount. equal to: (1) interest on the unfunded liability,
and (2) annuity disbursements attributable to military service.
EDUCATIONAL EXcIIANGE FUND, PAYMENTS BY FINLAND, WORLD WAR I DEBT
This is a permanent appropriation derived from amounts paid by the Republic
of Finland on its World War I debt. These funds finance an exchange of persons
program with Finland.
INTERNATIONAL CENTER, WASHINGTON, D.C.
This is a permanent appropriation representing the funds derived from the pro-
ceeds of sale of property owned by the United States, in the northwest section of
the District of Columbia, to foreign governments for use as Embassies, These
funds will be used to finance the cost of site preparation.
PAYMENT TO THE REPUBLIC OF PANAMA
This is a permanent appropriation for an annual payment to the Government of
Panama for rights granted in perpetuity for the construction of the Panama
Canal. The annual payment of $2,095,000 Was increased to $2,328,000 due to
further devaluation of the United States dollar (P.L. 93-110). $518,000 is reim-
bursed to the Treasury by the Panama Canal Company.
SECTION-BY-SECTION ANALYSIS OF S. 3117
Section 2.-This section provides an authorization of appropriations for the
Department- of State in accordance with the provisions of Section 107 (b) of the
Foreign Assistance Act of 1971. Funds are authorized to be appropriated under
this legislation for the fiscal year 1975.
This section contains the authorizations for appropriations by category for fis-
cal year 1975. Apart from the amounts, this section corresponds to subsection 2 of
Public Law 93-126 and excludes authorization for the acquisition, operation and
maintenance of buildings abroad which is being submitted as separate legislation.
ParagrapIz (1) authorizes appropriations under the heading "Administration of
Foreign Affairs" to provide the necessary funds for the salaries, expenses and
allowances of officers and employees of the Department, both in the United States
and abroad. It includes funds for executive direction and policy formulation, con-
duct of diplomatic and consular relations with foreign countries, conduct of diplo-
matic relations with international organizations, domestic public information
activities, central program services, and administrative and staff activities. Fur-
ther, it provides funds for relief and Ilepatri.ation loans to United States citizens
abroad and for other emergencies of the Department; and payments to the For-
eign Service Retirement and Disability Fund.
Paragraph (2) authorizes appropriations under the heading "International
Organizations and Conferences." This category provides the necessary funds for
United States contributions of its assessed share of the expenses of the United
Nations, eight specialized agencies and the International Atomic Energy Agency,
six Inter-American organizations, six Regional organizations and seventeen other
international organizations. The United States membership in these organiza-
tions, which has been authorized by treaties, conventions or specific Acts of Con-
gress, constitutes an obligation for payment of its share of the assessed budgets
pursuant to the basic statutes or constitutions of the international agencies. Also
included are the necessary funds for the missions which represent the United
States at the headquarters of certain international organizations in which the
United States has membership or participates pursuant to treaties, conventions
or specific Acts of Congress. These missions maintain liaison with the interna-
tional secretariats and with the delegations of other member governments at the
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 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800080043-3
S
organizations' headquarters. In addition, provision is made for funding of official
United States Goveriunent participation in regularly scheduled or planned multi-
lateral intergovernmental conferences, meetings and related activities, including
international trade negotiations, and for contributions to new or provisional orga-
nizations. Included also are the expenses of Congressional delegations to inter-
national parliamentary- meetings. This subsection does not include the authoriza-
tion of appropriations of voluntary contributions to international organizations
which are provided for in other Congressional enactments.
Paragraph (3) authorizes appropriations under the heading "International
Commissions" which provides funds to enable the United States to fulfill its
treaty and other international obligations with Mexico, including the expenses
and operations of the American Section of the International Boundary and Water
Commission, United States and Mexico; prcject investigations and construction
on the United Stites-Mexican border. Most prominent among the appropriations
to the U.S. Section, International Boundary and Water Commission, are those
funds to be used for the resolution of the international problem of the salinity of
the Colorado River. Resolution was reached In the agreement Minute No. 242
of the Commission concluded under the 1944 Water Treaty and entitled "-Perma-
nent and Definitive Solution to the International Problem of the Salinity of the
Colorado River", dated August 30, 1973. Thin agreement settles an Issue plaguing
United States and Mexican relations for the past twelve years. The authorization
requested provides that the U.S. Section be responsible for carrying out the pro-
visions of the agreement, since it is the agency charged with the administration
of the treaty.
Specifically, the appropriation proposed for authorization in the section would
be used to :
(a) Construct a desalting complex, including a desalting plant within The
boundaries of the 'United States and a bypass drain for the discharge of 1:11e
reject stream from the plant ,and certain other drainage water to the Santa
Clara. Slough in Mexico, with the part in Mexico to be constructed by the appro-
priate agencies of the Government of Mexico with funds transferred through this
Commission.
(b) Accelerate cooperative water management programs in the Wellton-Mo-
hawk Irrigation and Drainage District to reduce the quantity of drain water
pumped by the District and thereby enable reduction in the size and cost of the
desalting complex. The measures include assistance to farmers in installing
oil farm improvements to enhance irrigatior efficiencies and
(c) Acquire, to the extent necessary, to further reduce the quantity of drain-
age flow, lands or interest in lands within the Wellton-Mohawk Division, (eila
Project, to reduce the 75,00 irrigable acres authorized by the Act of July 30, 1947
(61 Stat. 628). In consideration of the purchase of irrigable lands and the asso-
ciaE.ed increased cost of operation and maintenance of the irrigating system, re-
pa;: nient obligations of the irrigation district to the United States under exist-
ing contracts will be appropriately reduced
The above measures will be designed and operated with the objective of carry-
ing out the obligations under Minute No. 242 at the least overall cost to the
United States.
.also included are the authorization of funds for American Sections, Interna-
tional Commissions, in accordance with existing treaties, for expenses of the
American Section of the International Boundary Commission and the Interna-
tional Joint Commission, which are concerned respectively with maintenance of
the United States-Canadian border, and environmental and other joint problems
involving; the United States and Canada. Appropriations are also authorized
for expenses, including contributions, to enable the United States to meet its
obligations in connection with participation in international fisheries cominis-
siuns pursuant to treaties or conventions, and implementing Acts of Congress.
Paragraph (4) authorizes appropriations under the heading "EducationalX Ex-
change" which provides funds to enable he Secretary of State to carry out his
functions ender the provisions of the Mutual Educational and Cultural Exchange
Act of 1961, as amended, and the Act of A gust 9, 1939. Funds appropriated under
this authorization provide for the educai:ionai and cultural program of the lIe-
pa.rtment of State, including the exchange of persons, aid to American sponsored
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 Approved For Release 2002/01/10 : CIR-RDP75B0038OR000800080043-3
schools abroad, and cultural presentations. Included also as the authorization of
funds to enable the Secretary of State to provide for carrying out the provisions
of the Center for Cultural and Technical Interchange Between East and West
Act of 1960 by grant to the State of Hawaii. The Center provides grants, fellow-
ships and scholarships to qualified persons from Asia and the Pacific and Ameri-
cans who work jointly on problems of mutual concern.
Paragraph (5) authorizes appropriations under the heading "Migration and
Refugee Assistance" to enable the Secretary of State to provide assistance to
migrants and refugees, both on a multilateral basis through contributions to or-
ganizations such as the Intergovernmental Committee for European Migration
and the United Nations High Commissioner for Refugees, and on a unilateral
basis through assistance to refugees designated by the President, as authorized
by law. Also included is an authorization of funds for a contribution to the In-
ternational Committee of the Red Cross pursuant to existing legislation. This
subsection does not include the authorization of appropriations for special and
emergency refugee relief assistance which is provided for in other Congressional
enactments.
Section 3.-This section provides for the customary extension of the availabil-
ity of funds beyond the end of the fiscal year, to the extent provided for in appro-
priation Acts, for such appropriations of the Department as "International
Boundary and Water Commission, United States and Mexico-Construction'.', and
"Migration and Refugee Assistance". This authority is required to enable the
I)epartanent to retain funds appropriated for construction projects, the comple-
tion of which extends beyond a single fiscal year, and to enable the Department
to meet completely the calendar year 1975 program needs for Migration and
Refugee Assistance.
Section If.-This section provides an authorization of appropriations for an
expense difficult to determine in advance. Its purpose is to provide authorization
of appropriations for increases in salary, pay, retirement or other employee
benefits authorized by lacy which occur from time to time and require supple-
mental appropriations. The Department is requesting the flexibility to meet such
additional mandatory costs without returning for increased authorizations of
appropriations prior to the submission of a request for additional or supplemental
appropriations.
Section 5.-This section provides authorization of appropriations for urgent
activities which arise during the year and which are difficult to determine in ad-
vance. Experience has shown that unexpected international events of vital in-
terest to the United States may necessitate urgent requests for additional appro-
priated funds which may be delayed because of lack of authorization. One recent
example is the Middle East War and the resulting Middle East Peace Conference.
Similarly, appropriations to support certain initiatives in foreign affairs such
as opening a new post in East Berlin could not be obtained this past year because
of lack of authorization. The limitation of 5 percent of the amounts previously
authorized for each subparagraph in section 2 would allow flexibility to respond
to fast-moving world events.
DEPARTMENT OF STATE
COMPARISON OF 1975 DOLLAR AUTHORIZATION REQUEST WITH 1973 AND 1974 APPROPRIATIONS
[In thousands of dollars[
Budget chapter
1973
1974
1975
Increase or
decrease
Administration of Foreign Affairs_____________________
276,070
322,202
376, 135
+53,933
International Organizations and Conferences -----------
194,250
213,895
229,604
+15,709
International Commissions___________________________
28, 476
12, 973
112, 407
+99,434
Educational Exchange_______________________________
51,450
57,287
64,914
+7,627
Migration and Refugee Assistance---------------------
12, 566
9,556
9,470
-86
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 Approved For Release 2002/01/i0 : CIA-RDP75B0038OR000800080043-3
COMPARISON OF 1975 POSITION AUTHORIZ.sTION REQUEST WITH 1973 AND 1974 POSITION AUTHORIZATIONS
1974
1975
Increase ar
decrease
Administration of Foreign Affairs:
Americans:
Domestic ------- -----------------------------
4,815
4,933
4.957
424
Overseas -------------------------------- .--
3,450
3,608
3,689
-181
Subtotal----------------------------------
8,295
8,511
8.646
7-105
Locals ----------- --------------------------- ___
5,117
5,177
5,283
+106
Total______________________________________ -----------------------------------------
13,412
13,718
13 929
-1211
International Crganizations and Conferences:
Americans:
Domestic- --- -------------------------------
113
126
--------------
Overseas ------------------------- --------
59
+12
Subtot I---- ------------------ -----
169
213
225
+12
Locals -------------------------------------..
28
28
--...---------
241
253
+12
International Commissions:
Americans:
Domestic ----- --------------------------
348
386
592
+206
Overseas _---------------------------------
2
6
10
-i-4
Total----------------------------------------
350
392
602
-1210
Educational Exchange:
Americans: Domestic ------------------------------
262
262
262
--------------
Migration and Refugee Assistance:
Americans:
Domestic -------------------------- ---------
23
23
23
--------------
Overseas__________________________ ------------------------------------
7
7
6
--1
Subtotal ---------------------------------
30
30
29
Locals -------------------------------------- ..-_
13
13
11
Total ---------------- -------------- ---------
43
43
40
Total :
Americans:
Domestic --------------------------_-------
5, 551
5,730
5, 960
+230
Overseas.------- --------------------------
3,555
3,708
3,804
-} 96
Subtotal---------------------------------
9,106
9,438
9,764
+326
Locals------------------------------------ ----
5, 156
5, 218
5, 322
+104
14, 26Z
14,656
15, 08G
r 4430
I For fiscal year 1975 only 330 new positions are requested. The fiscal year 1975 column, however, includes 100 positions
requested in a fiscal year 1974 proposed supplementa in the cetegory "Administration of Foreign Affairs."
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 Approved For Release 2002101110 : CIA-RDP75B00380R000800080043-3
NUMBERS OF CIVILIAN AGENCY* PERSOP'NEL OVERSE4S UNDER JURISDICTION OF DIPLOMATIC MISSION CHIEFS DECEMBER 31, 1973 (ACTUAL EMPLOYMENT)
TOTAL STATE AID USIA
GLOBAL T L
SCARY ALL AGENCIES
INCL. PASA
US FN U$ FN US FN US FN US FN US FN
US FN
AFRICA 4,590 3,540 815 1,499 461 677 354 822 380 435 379 220 144 582
1D0% 1007, 17.765 42.357, 10,04 19.13 7.71 23.22 8.289 12.29 8.27% 6.227 3.14% 16.447
N&AR EAST-SOUTR ASIA 2,013 5,114 695 2,284 443 752 452 1,532 264 656 79 474 174 1,286
1007. 100% . 44.467. 44.667, 22.01% 14,707, 22.457, 29.96% 13.17A 12 $37, 3.92 9.27% 8.64T 25.157
EAST ASIA, PACIFIC 4,746 9,660 1,040 2,186 614 934 426 1,252 1,201 2,727
393 2,031 219 1,374
1007, 100% 21.927, 22.637. 12.947, 9.61 6.98 12.961 25.31% 28.21% 8.26 21.02! 4.611 14.237,
LATIN;AMBRICAN REPUBLICS 4,979 4,773 1,105 1,796 656 687 449 909 469 832 241 417 203 646
1007, 100?J 22.197, 37,639. 13.117, 18.58 9.027 19fb% 9{2 17.4.37, 4.84 6.741 4.087, 13.54%
EUROPE 2,fi30 5,241 1,580 2,879v 1,192 1,147 368 1,132 15 1 232 867
1007 100%- 60.08% 54.936 45.32% 31.33% 14.767 21.6 0.571 0.02 ' 8.82% 16.551
'
TOTAL 18,956 28,328 5,435 10,644 3,366 4,997 2,069 5,647 2,329 4,651 1 092 3 142 972 14,755
100% 1007, 28.677, 31.5878 17.767, 17.64% ]0917, 19.9d/ .1229% 16.475h rB 11.09% 5.131 1679%
US
84
1.831
15
0.79%
41
0.861
59
1.197,
-
200
1.067.
PE
FN
94
2.667,
32
0.62%
66
0.691
105
2.20%
-
297
1.051
ACE COR
US
2,683
58.457,
500
24.84%
1,586
33.427
2,462
49k57.
-
-
7,231
38.7,
14
Ri
US
43
0,941
26
1.29%
38
0.80%
36
0.731
143
0.75%.
FN
129
3.64
9s
1.82
%
107
1.11%
188
3.93%
-
517
1.633
i
AGRICU
US FN
11 9
' 0.24% 0.257,
17 32,
0.851 0.62%
24 28
0.51%
, 029%
60 193
1.207 4.047,
69 7 '
3
2.62L 1.39%
181 335
0.95% IJB1,
LTURE
CONT
-
3
0.06%
1
0,027.
-
4
0.02%
RACT
FN
3
D.OB%
15
0.297
b3
0.65%
16
72
1.377,
169
0.6o%
S
US
_
1
. 0.05%
8
0.17%
2
1
0.427,
28
1.067.
58
0.30%
COM
TAFF
FN
_
6
0.12%
22
0.237,
22
0.46%
58
1.11%
108
0.38%
MERCE
CON
US
-
-
-
-
1
0.04%
1
0.Q%
IRACT
1
0.02%
4
0.041
13
0.277.
23
D.44%
41
0.147,
S
US
1
0.027,
1
O.OSX
1
0,02%
10
0.20%
1
0.04X
14
0.07%
I
TAFF
TN
-
2
0.
041
-
2
0.04
l
0.02
5
0.027,
'
CONT
US
3
0.15%
3
0.06%
3
0.06
%
-
9
.057,
RACT
FN
181
S.11X
134
2.62%
116
1.20%
37
0.76%
311
5.93%
779
2.75
X
JU
US
29
1,44
13
1.547,
115
2.317,
159
6.OSX
376
1.98
STICE
FN
-
6
% 0.12%
14
0.14%
2
0.04%
19
0.367,
41
0.14%
ST
US
0.02
0,02%
5
0.10%
10
0.38
%
17
0.09%
N
AFF
FN
-
-
-
-
ASA
CONTRACT
US FN
44 358
0.96 10.11
0.02% 5.567,
139 375
2.797, 7.667,
281 559
10.668 87, 10,66
465 1 829
2.45% 6.467.
TRANSPORT
MIL. CIV
QS US
2
- 0.04%
3
0.151
0.34 26
0% 0.597,
1 4
-0.287,
2 70
0.0~ 2.
16
117
0.087, 0.627,
ATION
ILIAN
FN
1
, 0.02'
11
O.11X
1
0.02
14
0.27%
27
0.09
TR
US
_
2
D.10
26
0.55
317 4
0.34%
106
x.037.
151
0.80
EASURY
FN
_
1
7 0.029>
27
0.28%
1
0.02%
9
0,171 '
38
D.13
i
A
S
US :i
2
O.04X
1
O.O5 X
11
O.23X
3
~ 0.067,
42
i
1.60%
59
0.311
BMC AEC
TAFF
iETU
12
0.34
45
0.2
2
D.04%
296
5.651
355
1.25%
EPA E
CON
US
%
2
O.1O
-
26
0.991
28
0.151
X-IM
TRACT
-
X
6
0.067,
14
0.277,
20
D.O1%
ST
10
0,21%
5
0.19
15
0.08
AJHUD
AFF
FN
3
0 _ .03%
-
3
O.DI%
INTERI
CON
US
-
OR
TRACT
_.FN
__
_
'
_
_
-
NSF SMI
STAFF
QS FN
1
0.027,
_
22 282
0.46% 2,92
%
-
3
O.11X
26 262
0.14% I.OOX
T TV p
CONTRACT
US FN
18
_ 0.51%
91
-
j
787,
3 11
0.06% .11%
16 125
0327, 2.645
45
66%
19 290 ,i
0.1 1.02%
*Excludes staffs of the Department of Defense and other elements, public disclosure of which is rohibited.
I
M/MS:1/1974
HWW
1
H
I
i
I
H
i
I
I
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 Approved For Release 2002/01/10 :1CgIA-RDP75B00380R000800080043-3
REPORT ON OVERSEAS EXPENDITURES BY THE U.S.GOVERNMENT
WORLDWIDE SUMMARY (BY AGENCY)
[In thousands of dollars or dollar equivalents)
Expenditures made in foreign
currencies, (dollar equivalents)
Expenditures ----------- Total,
made in Charged to Not charged to overseas.
dollars appropriations appropriations expenditures
(1)
(2) (3)
(4)
ACTION___________________________________________
36,366
4,372 666
41,404
Agency for International Development_________________
338,693
35,428 381,921
756,042
Agriculture_________________________________________
17,387
6,658 ------------ _
24,045
American Battle Monuments Commission______________
2,320
309 ---- __--------
2,629,
Atomic Energy Commission___________________________
7,595
442 --------------
8,037
Civil Service Commission_____________________________
31,030
1,052 --------------
32,082
Commerce ------------------------- ----------------
7,847
1,377 --------------
9,224
Defense____________________________________________
4,551,590
173,410 1,322
4,726,322
Environmental Protection Agency__________________________________
2,860 -------- -----
2,860
Export-Import Bank of the United States_______________
4,490
----------------------------
4,490
General Services Administration______________________
217
----------------------------
217
Health, Education, andWelfare -----------------------
387,735
39,060 1
426,796
Interior--------------------------------------------
54,482
. 6,227 -------------
60,709
Justice ------------------------------------------10,464 504 --------------
10,968
Labor--------------------------------------------
853
21 --------------
874
Library of Congress_____________ _ __---------------
186
2,774 _______ ____
2,960,
National Aeronautics and Space Administration_________
31,670
4,121 --------------
35,801
National Science Foundation__________________________
2,859
3,494 --------------
6,353
Panama Canal--------------------------------------
59,738
---------
59,738
Railroad Retirement Board__________________________
17,074
17,383
Smithsonian Institution______________________________
2,329
420 --------------
2,749
State______________________________________________
234,016
38,772 929
273,717'
Tennessee Valley Authority___________________________
14,691
----------------------------
14,691
Transportation --------------------------------------
12,521
45
-------------- 12,566
Treasury------------------------------------------
3,788
7,197
-------------- 10,985
U.S.Inforniation Agency_____________________________
76,101
20,552
34 96,687
U.S. Postal Service ----------------------------------
33,353
419
-------------- 33,772
Veterans Administration ---------- _------------------
-124,760
7,709
-------------- 132,.469
Undistributed--------------------------------------
54,525
-54,525
----------------------------
Note: Foreign currency balances for U.S. use:
Nonconvertible----------------------------------- ---------------------------- -------------
1,707,828
Convertible---------------------------------------------------------------------------------
21,876.
Total -------------------------------------------------------------------------- ---------
1,729,704
Senator SPAR_K.MAN. Our first witness will be Mr. Joseph Sisco, who
is accompanied by Mr. Dean Brown, Deputy Under Secretary for
Management.
Mr. Sisco, we will start with your statement.
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 Approved For Release 2002/01/10 : tIA-RDP75B00380R000800080043-3
STATEMENT OF JOSEPH SISCO, UNDER SECRETARY OF STATE FOR
POLITICAL AFFAIRS; ACCOMPANIED BY DEAN BROWN, DEPUTY
UNDER SECRETARY FOR MANAGEMENT AND SEYMOUR WE:[SS,
DIRECTOR, BUREAU OF POLITICO AND MILITARY AITAIRS,
DEPARTMENT OF STATE
i1lr. Sisrco. Thank you.
With your permission I would like to ask that the statement be
included i rr the record. To gave time I think I will read only certain
portions to allow the committee further time for questioning:
Senator SPARKMAN. Very well.
Mr. Srco. You can see since I have been Under Secretary for
Political Affairs for an entire 2 weeks, that you are getting a real
expert across the board here this morning.
Senator SPARKMAN. IV 'e will take our chances on that. It may be
2 weeks on this, but it Las been a good many years in the broad field
of foreign relations.
\Ir. Sisco. I have sought to make myself an instant expert on all
of the areas in the last 2 weeks ar d T will do my best.
FT'\1s\MENTAL QUESTIONS
\1r. ("hairmrm, as I prepared this testimony from the point of
view of a broad overvi,?w, there were. three ftifrdarnental questions
hat came to my mind:
First. what kind of world stricture can we realistically seek to
create, and what are the major obstacles to its creation?
Second, what rs the potential and what are the limits of America's
rontribntion to a new global structure'?
'Third '>hat is the central foreign policy challenge facing the
.American people?
We cannot determine the future unilaterally. It is beyond the
power of any one country to create a new international order.
CHALLENGE BEFORE IJNUTED STATES
BuW, two major crises of lt) -in the Middle East and in energy--
demonstrate'i that the United States has a unique contribution to
make to a peaceful world order. Ike have brought Arabs and Israelis
from the b rk-tlefleld to tr,e negotiating table. We have launched the
+catclr for a global solut-orr to the. global problem of energy. These
factss of 1,)ternationeI life.
Our irrterfsts., our strengths, and our resources compel an active
rrxrl respon-,;b1e A merican rol in the world. This does not mean
there is or should k, a Wrshir ;?tor; blueprint for every internationaly or ecolrorn ic. It
does mean a policy of selective
r-rr(rrgc,m~)t on the critice1 problems of our time.
1brorrr r roost of rnv (puart: -r century in the State I)epartment we
have arced a relatively frozen international landscape. The challenge
was to ease the cold war with tfxe Soviet Union and China and to (,."'I'd
hot wars in Korea and Vietnam.
While we are no longer directly engaged in war and the landscape
has begun to thaw, it would be a mistake for any of us to take for
granted a future of peace. Each of the. achievements of recent, years
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 Approved For Release 2002/01/10 :IOIA-RDP75B0038OR000800080043-3
is only partial-foreign policy is a process, not a final product. The
danger of nuclear weapons is still self-evident. While our relations
with Moscow and Peking are improved, they are still competitive.
Peace in the Middle East and Indochina is not yet secure.
Therefore the central challenge before Americans today is not any
particular issue but our willingness to persevere, to pursue a con-
sistent framework of policies over a sustained period of time. We
falter or tire only at the risk of great peril to all of us.
AREAS OF GREATEST FUTURE IMPACT
Let me devote the remainder of my remarks to the four areas in
which our willingness to pursue steady purposes can have the greatest
I. Allies-we are convinced that at the very heart of a stable world
must be the community of nations sharing common goals, common
ideals, and a common perspective of how to deal with the problems
and threats confronting us. New relationships with countries with
different systems and outlooks are only possible if old relationships
with allies remain strong.
Our alliances with Japan and Western Europe were attained as
a result of a World War and have served successfully to deter 2najor
threats to global peace for more than a quarter century. Today we
must not permit an improved climate in international relations to
weaken our strong ties with our allies.
The problem before us is whether the nations of the Atlantic area
and Japan, faced with self-evident problems that affect them all, can
develop a common approach or whether this relationship is dominated
by nationalistic rivalries.
The United States has made clear its choice. In speeches last. April
and December, Secretary Kissinger made a number of specific pro-
posals to revitalize our alliances. Ile said:
"We have intensified all levels of consultations with our allies, but
consultation must be a twb-way street.
"We wish to make steady progress toward the issuance of joint
declarations to define the future of our relationships.
"We encourage the development of Western European unity, but
not at the expense of the Atlantic unity that is essential to European
security and to tho resolution of a growing list of global issues."
There can be no higher priority than to encourage Japan and
Western Europe to join us in giving fresh creativity to our alliances
based on our common objectives.
NEW RELATIONSHIPS WITH SOVIET UNION AND CHINA
IT. New relationships-our debate about the future has centered
principally on the kind of relationship we should seek with the
Soviet Union and China. Today, I believe, we are free of certain of
the. illusions of the past, and there is hope for the future. Relations
once characterized simply by degrees of hostility are now defined by
a complex mixture of competition and cooperation.
These relationships have been described as detente. We do not say
that detente is based on the compatibility of domestic systems. We
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recognize, and we must remain frilly aware, that some of the valves
and the ideology of both the Soviet 1Jirion and the People's Repubic
of China arc opposed and sometimes hostile to ours.
Tit our relations with the Soviet I'nion, detente is rooted in Cie
recognition that potential adversaries can bring- damage to each
other-mutual destruction in t1-e case of the TTnited States and
U.S.S.R.--and have a. common interest and responsibility in structur-
ing their relationships so as to prevent this risk. Put another wap:
that the threat of nuclear war is root a rational policy.
Ill this corn est. we have made a concerted effort to agree upon rules
of conduct that will encourage mutual restraint. We have agreed on
basic principles designee[ to minimize the use of conflict and to pre-
vent nuclear war. We have established communications between the
top leaders that make it possible in titre of crisis to avoid the danger.
of accident or miscalculation. W have sought through an organic-
network of agreements to develop a framework for mutual interests
that will give durability to an improvement in Soviet.-Americar rela-
tions. It is within this contest that we place such emphasis on normali
zation of the Soviet-American economic relationship which you will
shortly be considering.
SALT, AF3FR ANI) (,;,('E N11GOTIATIONS
The realism of Soviet-America) relations in 1974 is demonstrated
by the fact that we are engrageel wi"lr one another in an unprecedented
range of negotiations wl icli address the hard political and security
I.-.sties confronting us and seek to build greater stability. 'These
include :
Strategic Arms Limitation Talks [SALT]-our objectives, to
paraphrase the President, are to coatrol military technology and mod-
crate the process of strategic arms growth so that our political rela-
tionship with the 1T.S.S.Ii., indeed the basic issues of war and peace,
will not be dominated by the competition in this area. We seek aaz
agreement that will enhance strategic stability and preserve essential
e,luilibrium of the strategic forceE of the two sides.
Mutual and balanced force reductions [MBFR]-here we and our,
allies hop( by patient negotiating effort, to probe Soviet willingness to
address the real issues of military security in Europe and negotiate
an agreement, 1-hat will maintain the security of both East and West
at. lower levels. of confrontation and cost.
Conference on European Security and Cooperation [CSC ), i__
broadly stated. the Western objectives in this conference are to reach
agreement on principles to guide interstate relations, enhance con-
fidence in military intentions through such measures as advance.
notification of maneuvers. improve economic and other cooperatPill,
and open the way to broader contacts among the people of the 35:
participating states.
Obviously, all of these negotiating initiatives touch on very im-
portant political and military interests of the, United States and its
allies. It is for this reason that we work in concert with them in..
M13FR and CSCE, and consult closely on SALT.
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15
NEW RELATIONSHIP WITH PEOPLE'S REPUBLIC OF CHINA
Our new relationship with the People's Republic of China is also
contributing to a more hopeful environment for peace, particularly
in Asia. In 1973 we strengthened our dialog by establishing liaison
offices in each other's capitals, by Secretary Kissinger's two visits to
Peking, and by a substantial expansion of economic and other ex-
changes. In 1974 we will strive to deepen our dialog, to give durable
form and content to our relationship. We have indeed come a long
way since our first efforts in 1969 and since the President's trip to
Peking in 1972. But we have a long way still to go.
MAINTAINING APPROPRIATE LEVEL OF MILITARY STRENGTII
To build a more peaceful world, America requires the confidence
of our allies and the respect of those with different social systems. A
.strong defense is an essential element as a means of accomplishing
both. We will not allow the United States to be second to any nation
in its conventional and nuclear forces. It is a fact that the Soviet
Union is making a major military effort-improving its capability
in Europe, expanding its scapower, and pursuing major new strategic
nuclear programs still permitted under the interim agreements.
The task of maintaining an appropriate level of military strength
is a complex one, affected by the dynamics of technological progress,
political power, and pressing domestic priorities. For a quarter cen-
tury, the Congress and five separate administrations have met this
task together and provided America with an adequate defense. It is
essential that cooperation continue to this end.
III. Middle East-tire recent Middle East and energy crisis have
clearly demonstrated that our efforts to achieve common international
objectives are more than intellectual exercises. Our labor in this criti-
cal area demonstrates our willingness to persevere, to take bold diplo-
matic moves in the-knowledge that the seeds of war remain, and that
there can be no lasting structure of global peace without a durable
peace in the Middle East.
The fourth war in a quarter century between Arabs and Israelis
has changed the objective conditions in the area. It has also changed
the perception of each side toward the other. From four recent trips
to the area, I have the impression that people there are weary and
desirous of raising their sights.
In these circumstances, there is hope in the step-by-step approach
we have adopted. Both sides want the United States to play a con-
structive role. Both Egypt and Israel have gained from the disen-
gagement of forces agreement achieved this past January. This first
step toward a final settlement has been implemented with impeccable
good faith by both sides. The separation of forces has reduced the
likelihood of renewal of hostilities on this front. And above all, the
Egyptian-Israeli disengagement agreement could become in time the
kind of practical test of peace on the ground which can build con-
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1E
fidence between adversaries and help break the shackles of past
suspicions.
The task at hand now is to seek to achieve something similar or,
the Syrian-Israeli front. The Israeli Government is sending a high-
level representative to Washington within 2 weeks, and Syria has
agreed to do the same in the near future. This is no more than a.
beginning, but a significant beginning in a slow and agonizing effort
to reconcile objectives that in many respects seem contradictory. But
for the first time in my years of work on this problem, it is possible
to begin to perceive how the; process toward peace can be carried.
forward.
IV. Emerging Issues-throughout history, the clash of economic
interests has been an important cause of war and a major obstacle to
peace. But following the Second World War, we erected a monetary
and trading system which channeled the pursuit of economic gain into,
peaceful competition. Now a whole set of emerging problems-energy
and raw maternal shortages, food and population imbalance, rampant;
global inflation--threaten to overwhelm the system and return, the
world to the sort of economic conflict which traditionally has led
to war.
Just as we have begun to understand that the dangers of the arms
race impose cooperation upon us, new races have begun : for the Earth':,,
limited resources. for the oceans, for technology, for capital. And. just
as we are striving to avert nuclear catastrophe, we must, now work to
deter new economic chaos. To overcome these potential obstacles to
peace. we must assure that all natons--rich and poor. resource pro-
ducing and consuming-have a stake in an expanding global economy.
Only then wil': all have a vested interest in the stability of the inter-
national order.
As Secretary Kis ;inger made clear before the members of the Senate
Committee on Finance last week, we attach great importance to the
foreign policy aspects of the trade bill which is presently being con-
sidered by Congress. 'T'here is no doubt in our mind that the interna-
tional political situation will be deeply affected by the way in which
we carry out our trade and economic relations. It is in the U.S. national
interest that we have the necessary flexibility to negotiate agreements
that can be inutually ber_eficial, and by so doing to avoid returning
to the days unbridled competition aid hostil ity .
At. the same time, let me say a word about IDA [International De-
velopment association]. We are de>_ply concerned that a congressional
decision against TDA. replenishment would signal to the world. that
lmerica has lost interest. The consequences would be serious in our
judgment not only for thc-~ survival of the poor but for the possibility
of a cooperative world order.
I began by noting that in both major crises of 1973, the United States
made unique and substantial contributions-bringing the parties from
the battlefield to the negotiating table in the Middle East and t,al= ing
the first step toward international cooperation in energy. These
achievements confirm bob the necessity and the rewards of an outward
looking, international America. The world continues to look to us for
leadership.
We have established a solid foundation on which to build a. structure
Ap d f P ~61 / 1 1t0?U av 6P75B 38080 08000orte.
80043-3
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1.7
administration or in one decade. It will require sustained and co-
operative participation by the Congress and the executive branch bul-
warked and supported by the American people. I believe this can be
achieved.
AUTHORIZATION REQUEST
On a final word about the State Department budget and the re-
sources that are required for an American foreign policy+which pro-
tects our interest and helps sustain our efforts toward peace.
As you know, the Department of State has the smallest total budg-
etary requirement of any Cabinet-level Department. For the next
fiscal year, we are requesting authorization for $792.5 million, an in-
crease of $110.7 million. Three-quarters of this sum is required to meet
statutory increases such as our assessed contributions to international
organization, contributions to the Foreign Service Retirement Fund,
statutory salary increases, and overseas operating expenses.
Other significant increases are requested for the international sa-
linity project on the Colorado River and for the educational exchange
program.
STATEMENT FOR FISCAL YEAR 1074 AMENDMENTS
Mr. Chairman, as requested, I have a prepared statement for the
Department's fiscal year 1974 amendments, which I am pleased to sub-
mit for the record.
Thank you, Mr. Chairman.
[Mr. Sisco's prepared and supplemental statements follow:]
PREPARED STATEMENT OF HON. JOSEPH J. SISCO, UNDER SECRETARY OF STATE FOR
POLITICAL AFFAIRS
Mr. Chairman, members of the Senate Foreign Relations Committee, I have
been Under Secretary for Political Affairs for only about 2 weeks. I have appeared
on a number of occasions before this committee-as Assistant Secretary of Inter-
national Organization Affairs and as Assistant Secretary of Near Eastern Affairs.
I am pleased to be here in my new capacity. This morning I shall try to present
my testimony on the basis of a broad overview.
Three fundamental questions come to mind :
First, what kind of world structure can we realistically seek to create, and
what are the major obstacles to its creation?
Second, what is the potential and what are the limits of America's contribution
to a new global structure?
Third, what is the central foreign policy challenge facing the American people?
We need a vision of the future-of the world in which we want to live-to give
meaning, context and direction to specific policies. We need a better understanding
of the obstacles to peace and the realities of our influence.
We cannot determine the future unilaterally. It is beyond the power of any one
country to create a new international order.
But two major crises of 1973-in the Middle East and in energy-demonstrated
that the United States has a unique contribution to make to a peaceful world
order. We have brought Arabs and Israelis from the battlefield to the negotiating
table. We have launched the search for a global solution to the global problem
of energy. These are facts of international life.
Our interests, our strengths and our resources compel an active and re-
sponsible American role in the world. This does not mean there is or should be
a Washington blueprint for every international conflict-military or economic.
It does mean a policy of selective engagement on the critical problems of our
time.
Through most of my quarter century in the State Department we have faced
a relatively frozen international landscape. The challenge was to ease the Cold
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18
liar with the Soviet Union and China and to end hot wars in Korea and Vietnam.
'While we are no Longer directly engaged in war and the landscape has begun
to thaw, it would be a mistake for any of I s to take for granted a future of peace.
P,o'h of the achievements of -ecen.t years is only partial-foreign policy is a
process, not a final product. The danger of nuclear weapons is still self-evident.
11"Iaile our relations with Moscow and Ptking are improved they are still com-
petitive. Peace in the Middle East and Indochina is not yet secure.
Therefore the central challenge before Americans today is not any particular
issue but our willingness to persevere, to pursue a consistent framework of
l rie, over'a sustained period of time. We falter or tire only at the risk of
gr''zat peril to all o;: us.
Let nie devote the remainder of my remarks to the four areas in which our
willingness to pursue steady purposes can have `the greatest impact on our
fi.lure.
1. ALLIES
We are convinced that at the very heart of a stable world must be the com-
munity of nations sharing corn:.non goals, conueon ideals and it contmon perspec.-
tive of how to deal with the problems and threats confronting its. New relation-
ships with countries with different systems and outlooks are only possible if old
relationships with allies remain strong.
conr, nIhaaces with Japan and Western. Europe were attaiacd as a result of
a World War and have served snecessfull:r to deter major threats to global peace
fi-r more than a quarter century. Today we must not permit an improved clinmte
in international relations to weakel_ our strong ties with our allies.
The problem before us is whether the rations of the Atlantic area and J, pan,
faced with self-evident problems that aict; them all, can develop it common ap-
p, ouch or whether this relationship is do ninated by nationalistic rivalries.
The United States has made clear its choice. In speeches last April and Decem-
ber, Secretary Kissinger made a number of specific proposals to revitalize our
aiIinees. He said
We have intensified all level; of consultation with our allies, but consultation
umst be a two-way street.
We wish to make steady progress toward the issuance of joint declarations to
define the future of our relationships.
We encourage the development of Western European unity, but not at the ex-
pense of the Atlantic unity that is essential to European security and to the
r ' solution of a growing list of global issue:.
There can be ao higher priority than tc encourage Japan and Western Europe
to join us in giving fresh creativity to our alliances based on our cone non objec-
ti ves.
it. NEW IIELA'CIONSIIIPS
Our debate about the future has cente ?ed principally on the kind of rela.tion-
su.ip we should seek with the Soviet Union and China. Today, I believe, we are
f:?eer of certain of the illusions of the past, and there is hope in the future.:Rela-
lions once characterized simply by degrees of hostility are now defined by a com-
plex mixture of competition and cooperation.
These relationships have been described as detente. We do not say that detente
is based on the compatibility of domestic systems. We recognize, and we n)nst
r-~''main fully aware, that some of the values and the ideology of both the Soviet
Union and the People's Republic of China are opposed and sometimes hostile to
ours.
In our relations, with the Soviet tJnion, detente is rooted in the recognition that
potential adversaries can bring damage to each other-mutual destruction in the
case of the U.S. and USSR-and have a common interest and responsibility in
structuring their relationships so as to prevent this risk. Put, another way : that
the threat of nuclear war is not a rational policy.
In this context, we have made a concer=ed effort to agree upon rules of conduct
that will encourage mutual restraint. We have agreed on basic principles de-
slued to minimize the use of conflict and to prevent nuclear war. We ha'e es.
tablished comintnlications between the top leaders that make it possible in tune
of crisis to avoid the danger of accident or miscalculation. We have sough'
through an organic network of agreements to develop a framework for mutual.
interests that will give durability to an improvement in Soviet-American rela-
tions. it is within this context that we place such emphasis on normalization of
the Soviet-American economic relationship which you will shortly be considering.
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If there is no rational alternative to the pursuit of detente, what is the current
state of detente? In 1973 our relationship with the Soviet Union was sorely tested
by a war in the Middle East which neither of us sought. This tense period demon-
strated once again that we cannot take our relationship for granted, that we
must work to institutionalize the relationship we have forged.
The realism of Soviet-American relations in 1974 is demonstrated by the fact
that we are engaged with one anotherin an unprecedented range of negotiations
which address the hard political and security issues confronting us and seek to
build greater stability. These include :
Strategic Arms Limitation Talks.-Our objectives, to paraphrase the Presi-
dent, are to control military technology and moderate the process of strategic
arms growth so that our political relationship with the USSR, indeed the basic
issues of war and peace, will not be dominated by the competition in this area.
We seek an agreement that will enhance strategic stability and preserve es-
sential equilibrium of the strategic forces of the two sides.
Mutual and Balanced Force 1tcductions.-Here we and our allies hope by pa-
tient negotiating effort to probe Soviet willingness to address the real issues of
military security in Europe and negotiate an agreement that will maintain the
security of both East and West at lower levels of confrontation and cost.
Conference on European Security and Cooperation.-Broadly stated, the West-
ern objectives in this conference are to reach agreement on principles to guide
interstate relations, enhance confidence in military intentions through such
measures as advance notification of maneuvers, improve economic and other
cooperation, and open the way to broader contacts among the people of the 35
participating states.
Obviously, all of these negotiating initiatives touch on very important po-
litical and military interests of the U.S. and its allies. It is for this reason that
we work in concert with them in MBFR and CSCE, and consult closely on SALT.
Our new relationship with the People's Republic of China is also contributing
to a more hopeful environment for peace, particularly in Asia. In 1973 we
strengthened our dialogue by establishing liaison offices in each other's capitals,
by Secretary Kissinger's two visits to Peking, and by a substantial expansion
of economic and other exchanges. In 1974 we will strive to deepen our dialogue,
to give durable form and content to our relationship. We have indeed come a
long way since our first efforts in 1969 and since the President's trip to Peking
in 1972. But we have a long way still to go.
To build a more peaceful world, America requires the confidence of our allies
and the respect of those with different social systems. A strong defense is an
essential element as a means of accomplishing both. We will not allow the
United States to be second to any nation in its conventional and nuclear forces.
It is a fact that the Soviet Union is making a major military effort-improving
its capability in Europe, expanding its sea power, and pursuing major new stra-
tegic nuclear programs still permitted under the Interim Agreements.
The task of maintaining an appropriate level of military strength is a com-
plex one, affected by the dynamics of technological progress, political power
and pressing domestic priorities. For a quarter century the Congress and five
separate Administrations have met this task together and provided America
with an adequate defense. It is essential that cooperation continue to this end.
III. MIDDLE EAST
The recent Middle East and energy crises- have clearly demonstrated that our
efforts to achieve common international objectives are more than intellectual
exercises. Our labor in this critical area demonstrates our willingness to perse-
vere, to take bold diplomatic moves in the knowledge that the seeds of war re-
main, and that there can be no lasting structure of global peace without a dura-
ble peace in the Middle East.
The fourth war in a quarter century between Arabs and Israelis has changed
the objective conditions in the area. It has also changed the perception of each
side towards the other. From four recent trips to the area, I have the impression
that people there are weary and desirous of raising their sights.
In these circumstances, there is hope in the step-by-step approach we have
adopted. Both sides want the U.S. to play a constructive role. Both Egypt and
Israel have gained from the disengagement of forces agreement achieved this
past January. This first step towards a final settlement has been implemented
with impeccable good faith by both sides.
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20
The separation of forces has reduced the likelihood of renewal of hostilities
on this front. And above all, the Egyptian-]smell disengagement agreement could
become in time the kind of practical test o' peace on the ground which can build
confidence between adversaries and help break the shackles of past suspicions.
The task at hand now is to seek to acheve something similar on the Syriau-
Israeli front. The Israeli Government is ,;ending a high-level representative to
Washington within two weeks and Syria has agreed to do the same in the rear
future. This is no more than a beginning, but a. significant beginning in a slow
and agonizing effort to reconcile objectives that in many respects seem contra-
dictory. But for the first time ir my years of work on this problem, it is possible
to begin to perceive how the process toward peace can be carried forward.
IV. EMERGING ISSUES
Throughout history the clash of economic interests has been an important
cause of war and a major obstacle to peace. But following the Second World
War we erected a monetary and trading system which channeled the pursuit
of economic gain into peaceful competition. Now a whole set of emerging prob-
lems-energy and raw material shortages, food and population imbalance,
rampant global inflation-threaten to overwhelm the system and return the world
to the sort of economic conflict which traditionally has led to war.
Just as we have begun to understand that the dangers of the arms race im-
pose cooperation upon us, new races have begun : for the earth's limited re-
sources, for the oceans, for technology, for capital. And just as we are striving
to avert nuclear catastrophe, we must now work to deter new economic chaos.
To overcome these potential obstacles tc peace, we must assure that all na-
tions-rich and poor, resource producing and consuming-have a stake in an
expanding global economy. Only then will all have a vested interest in the sta-
y of the international order.
As Secretary Kissinger made clear befDre the Members of the Senate Com-
mittee on Finance last week, we attach great importance to the foreign policy
aspects of the Trade Bill which is presently being considered by Congress. There
is no doubt in our mind that the international political situation will be deeply
affected by the way in which we carry out our trade and economic relations.
It is in the U.S. national interest that. we have the necessary flexibility to nego-
tiate agreements that can be mutually bEneficial, and by so doing to avoid re-
turning to the days of unbridled competition and hostility.
.A prosperous multilateral trading relationship is one of the bases of the po-
litical approach that we have adopted in our relationship with the advanced
industrialized nations of the West since World War II. A breakdown in this
system would be contrary to our interests.
The recent energy crisis has demonstrated the risks inherent in nations trying
to resolve their problems unilaterally. The recent Washington Energy Con-
ference was an initial step toward recognition of the necessity to deal with
multilateral problems on a. multilateral ba fis.
On the question of trade, our approacl has been that all the major trading
nations must acs. in concert and in the common interest. We have recognized
the necessity of expanding the flow of trade between the industrialized and de-
'sloping countries of the world. One way we seek to do this is by the extension
of a system of generalized tariff preferences to developing countries.
In short, we seek :
to reduce trade barriers among the industrialized countries and to help
nee t the demands of developing countrie; by the expansion of their exports so
that they can proceed with the tasks of economic and social development;
to normalize trade relations between the U.S. and the Soviet Union and the
countries of Eastern Europe; and
to enhance global economic relationslips on a multilateral basis, for the
benefit of the world's peoples.
.1nd we are encouraged by the results o' our meeting with the Latin American
Foreign Ministers in Mexico to believe that the developing nations can partici-
pate more fully in the benefits of this dad of international order. We have
initiated a new dialogue--brought a new spirit to our relationship so that this
Hemisphere can make a decisive contribztion to an interdependent world. We
are developing an agenda of cooperation in such areas as science and technology,
consultation on multilateral trade and moaetarl- issues, the role of transnational
corporations, the problems of development.
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And, of course, it is important that the United States do its share. We are
deeply concerned that a Congressional decision against IDA replenishment would
signal to the world that America has lost interest. The consequences would be
serious not only for the survival of the poor but for the possibility of a coopera-
tive world order.
V. CONCLUSION
I began by noting that in both major crises of 1973 the United States made
unique and substantial contributions-bringing the parties from the battlefield
to the negotiating table in the Middle East and taking the first step toward
international cooperation in energy. These achievements confirm both the neces-
sity and the rewards of an outward-looking, internationalist America. The world
continues to look to us for leadership.
We have established a solid foundation on which to build a structure of peace.
But the task we have set ourselves cannot be completed in one administration,
or in one decade. It will require sustained and cooperative participation by the
-Congress and the Executive Branch bulwarked and supported by the American
people. I believe this can be achieved.
Let me conclude with a brief mention of the resources required for an Ameri-
can foreign policy which protects our interests and helps sustain our efforts to-
wards peace. As you know, the Department of State has the smallest total
,budgetary requirements of any Cabinet-level Department. For the next fiscal
.year we are requesting authorization for appropriations of $792.5 million-an
increase of $110.7 million. Three-quarters of this sum is required to meet statu-
tory or mandatory increases such as our assessed contributions to international
organizations, contribution to the Foreign Service Retirement Fund, statutory
salary increases and overseas operating expenses. Other significant increases are
requested for the International Salinity Project on the Colorado River and for
the educational exchange program. Mr. Chairman : As requested, I have a pre-
pared statement for the Department's Fiscal Year 1974 amendments which I
am pleased to submit for the record.
Departmental representatives are with me and are prepared to answer ques-
tions you may have regarding the details of these budgetary requests.
STATEMENT OF JOSEPII J. SISCO, UNDER SECRETARY OF STATE FOR POLITICAL AFFAIRS
REGARDING FY 1974 AMENDMENTS
Mr. Chairman and Members of the Committee : I appreciate the opportunity
to appear before your Committee today in support of our requested amendment
to the Department of State's Appropriations Authorization Act of 1973, Public
Law 93-126. The amendments requested provide for increases of $22.4 million
for the Administration of Foreign Affairs ; $1.5 million for International Or-
ganizations and Conferences ; $7.4 million for the 1974 costs of the Federal
Salary increases authorized in January and October, 1973; and $1.5 million for
the Foreign Service Buildings Program.
ADMINISTRATION OF FOREIGN AFFAIRS
The President's initiatives in foreign affairs have opened vital opportunities
for furthering mutually advantageous relations among nations. Our proposed
authorization amendment for Administration of Foreign Affairs will allow us to
increase our representation abroad by opening new posts in East Berlin, German
Democratic Republic ; Ulaanbaatar, Mongolian Peoples Republic and Port
Moresby, New Guinea and will enable us to provide adequately for additional
support costs of our operations in Washington and overseas which have oc-
curred in the last several months. These estimates total $7.0 million. In addi-
tion, there is an increase of $15.6 million which will allow the Department to
comply with the law requiring payments to the Foreign Service Retirement and
Disability Fund over a thirty year period to cover the unfunded liability caused
by transfers of new groups of employees into the Foreign Service Retirement
System. Public Law 93-189, which became law December 19, 1973, provided for
the transfer of approximately 2,500 employees of the Agency for International
Development into the Foreign Service Retirement System. The amount of $15.6
million was calculated by the Treasury Department Actuary as that necessary
for the first of thirty equal annual payments required by law. These estimates
total $22.6 million ; however, as there is $597 thousand of unused authorization
available only $22.0 million additional authorization is requested.
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I:NITRNATIONAL ORGANIZATIONS AND CiONFERENCUS
The increase of $1.5 million requested for the category "International Organiza.
tions and Conferences" will allow us to request a supplemental appropriation or
$2.3 million for the remainder of the Lnited States contribution to the Inter-
national Labor Organization (ILO). The FY 1974 Appropriation Act was ne,,rly
$2.5 million less than the authorization of P.L. 93-126. However, $1.7 million or
that authority was used for an urgent supplemental appropriation to provide &,.?
the Middle East: Peace Conference and continuation of the Conference on Security
and Cooperation in Europe. Coupled with the remaining unused authorization or
$789 thousand, the additional $1.5 million requested will be used to support the
supplemental appropriation required to fulfill our assessment to the ILO.
CIVILIAN :PAY ACT
An increase in authorization for $7.4 r=pillion is requested for the Civilian Pay
Act, E.O. 11739 which was implemented in October. 1973. Our present Authortza-
tion Act (P.L. 93-126) provides only for the January, 1973 pay raise.
The request for additional authorization of $1.5 million for the Foreign Build-
ings Program in fiscal years 1974 and 1975 is due to the 1973 devaluation of the
dollar and its immediate effect on the program. Devaluation has precipitated a
sharp increase in the cost of our Operations Program, which provides the funding
for operating, maintenance and furnishings costs of office and residential proper-
ties, as well as minor improvements and long-term rental costs. The Congress teas;
already authorized and appropriated funds for fiscal year 1974 to cover similar
increased costs for other Department appropriations.
The requested amendment to the Foreign Service Buildings Act includes $1,3956,
000 in each of these two fiscal years for the Operations Account. This sum cover,
both Foreign Ruiidings appropriations-the Regular Dollar Program and the P.L.
450 Excess Currency Program.
We do not require an increase In the a nouns: currently authorized for the two-
year period for the Capital Program. Instead we are seeking an adjustment be-
tween the two years to provide an increase of $1:54,000 in fiscal year 1974 and a
corresponding decrease in fiscal year 197,11. This transfer is needed to cover minor
cost increases in several capital projects in the P.L. 480 Program, as a result o:r
the devaluation of the dollar.
Mr. Chairman, I thank you and the Committee members for your time. If von
have further questions on these matters, I will be pleased to answer them.
Senator Sii'ARF.DIA- . Thank you, Mr. Sisco.
Wlien you make reference to your submitting a statement for the
Department's fiscal year 1')74 amendments, is this it? I ant still a little
unclear. We have two statements here. One of them is a summarv of
the I+ isca.l 1975 nroposal. Another is a comparative statement as to 1979:
and 1975. Which one of those it it?
Zr. BnowN. titre are submitting an amendment to the fiscal year
1:174 authorization requesr-ing an additional S22 million for foreign
a (?'airs, $1.5 million for international organizations, and so on, sir.
Senator Smmici Alv. That is this single sheet?
Mr. BitowN. It is not the comparison that we are talking about.
Senator Stns mm,nN. I have R. two-page statement and also a one-page
statement. I alit trvin'r to find o14 which one you are putting in the.
record, or if both are being submitted.
'Jr. Bii0-'1'N. O.
Senator Si',krs.ns:,,x. I am sorry. These are prepared by our commit--
tee staff arid nor, you. 't'hank you.
Thank you very much.
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Mr. Sisco, I think that is a very fine statement and personally I am
pleased with it and we are glad to have it as part of the record of these
hearings.
I would like to ask a few questions and then ask Senator Aiken to
propound questions. We have a great many questions to propound.
STATUS OF SALT, MBFR AND CSCE NEGOTIATIONS
I would like to start off with Europe.
Could you comment a little further upon the present status of the
three ongoing negotiations you mentioned. One is SALT ; the other is
the European Security Conference; and the other is the negotiations
regarding the mutual balanced force reduction.
Mr. Sisco. First, let me say a few words regarding the CSCE to the
Conference on European Security.
Mr. Chairman, this is a conference which began in July of 1973 and,
as you know, it brings together 33 European States plus ourselves and
,Canada.
Our approach basically is this: We would like to see this conference
a firm principle of nonintervention and noninterference in the external
:affairs of States whatever their social or political systems. We would
like to see this conference stress the promotion of freer human contact
:a.nd the exchange of ideas and information beyond the traditional cul-
ture exchange patterns, and at the same time we would like to see or we
would like to avoid by doing this any kind of action which would
imply a formal recognition of the territorial status quo in Eastern
Europe.
We would like to see it stress a broadening of East-West cooperation
in increased trade, in exchange on science and technology and in efforts
to improve the environment.
I think this conference has to be looked at in the broader picture of
East-West relationships. In other words, a definition of these relation-
ships, a clarification of these relationships.
Where we are in this: 'hhere have been ideas and proposals that have
been exchanged. The principal focus at the moment relates to certain
language dealing with the whole question of human contacts, freer
human contacts.
I would say that progress has been reasonably (rood. We would like to
? see this. thing concluded over the next couple of months, if possible.
Now on SALT, I would say this : The talks reopened in Geneva on
the 19th of February. Although I am no technician, I think I would say
this: The objective here is to get an agreement with the Soviet Union
which provides essential equivalence in the central systems.
The talks, as you are aware, Mr. Chairman, deal. with extremely im-
portant matters of great complexity and nonetheless the President and
Mr. Brezhnev have said that a serious effort will be made to reach a
SALT II Agreement in 1974, and we remain committed to that goal.
I would say that in this renewal of discussions that started on the
19th, that we are getting into the specific details.
As you know, in SALT I, we dealt with defensive missiles and you
are getting now at the stage of where in dealing with offensive missiles
you are dealing both with numbers and with quality, and so if the
objective is essential equivalence, the difficulty and complexity of this,
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since it deals with both numbers and quality, I think it is pretty self-
evident.
I can't predict whether we are going to be able to achieve an agree-
ment in 1974 but, as I say, we are going to make every effort since we
remain committed to that goal.
Now as to mutual balanced force reductions. These talks opened last
October, I recall, in Vienna, and I think the progress has been fairly
good. Both sides presented some proposals in November and our judg-
ment is that thus far these talks have been conducted in a very business-
like atmosphere.
I would describe the situation roughly like this: You do have
basically a Western proposal which seeks to redress the existing sub-
stantial Warsaw Pact advantage in ground force manpower.
As you know, I think the figure on the Warsaw Pact side is some-
thing like 900,000, if I recall. On the Western side, somewhere around
750,000.
Our proposal envisages a two-phase negotiation ultimately leading
to a common ceiling on ground force manpower for both sides.
On the other hand, the Eastern proposal envisages a three-stage
reduction program in which all direct participants would reduce all
types of its forces by equal percentages totalling ultimately to about
17 percent reductions.
It is clear from these two proposals that they do diverge substan-
tially but they do at the same time contain some common element and
this is again a very complicated issue. It obviously deals with vital
security interests of both sides, and I think I can sum it up in this w:ay :
That we realize this is a difficult task and that quick results are not par-
ticularly likely but we remain cautiously optimistic regarding the
ultimate outcome of the negotiatiens themselves.
Senator SPAIIH:MAN. On the, mutual balanced force reduction, you
gave two different proposals. The second was based on percentage
reduction. I believe you said 17 percent.
Mr. Sisco. Yes, sir.
Senator SPARKMAN. What would that amount to in figures? The first
I believe you said was 900,000 for the Warsaw Pact and 700,000?
Mr. Sisco. 71,50 roughly.
Senator SPARKMAN. 750. To wha, would this 17 percent reduction
amount?
MIr. Sisco. We can compute that a:rd submit it for the record. I don't
think we have a figure on it.
[The information referred to is classified and in the committee files.]':
Senator SPARKMAN. Another thing. Why the greater number for the
Warsaw Pact Nations than for the Western European Nations?
Mr. Sisco. Well. the disparity has been there based on the distribu-
tion of forces within the Eastern European countries themselves. In
other words, what they have now is roughly around 900,000.
Our force level, that is, the NATO force level is roughly 150,000 less,
and this is one of the things that makes the situation so difficult in this
negotiation because you are talking here about a security situation that
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relates to conventional forces and I think that the Soviets quite can-
didly would not dive up this advantage, if I can put it that way, the
advantage not only of numbers but the advantage of the fact they are
very close to Western Europe whereas if anything occurred and we
were involved based on our NATO commitment we would have to
move all the way back here from the Western Hemisphere.
I think you will find one of the difficulties in this negotiation is a
reluctance on the part of the Soviet to give up this numerical
advantage.
ENCOURAGING DEVELOPMENT OF WESTERN EUROPE UNITY
Senator SPARKMAN. I was glad to see your statement that we encour-
age the development of Western European unity but not at the expense
of Atlantic unity.
I think that we certainly need to work with that in mind.
I want to ask you about one more area. I would like to ask you about
all of these areas and hope before we finish we can do that, but I will
ask one more and then turn it over to Senator Aiken.
RELATIONSHIPS WITI.I LATIN AMERICA
I don't recall that you mentioned Latin America.
Mr. Sisco. It is in my statement that I submitted for the record, Mr.
Chairman. I skipped that part as I was reading it but let me say a word
about that.
We are very pleased with the results of the recent meeting in Mexico
City. We feel that the principal result of that meeting has been to cre-
ate a positive atmosphere in our relationships with our Latin American
friends.
It does begin, we believe, the initiation of a new dialog, a new dialog
which will be carried forward in a subsequent meeting about a month
from now. So that we think that this is an indication, a continuing
indication, a fresh manifestation of American interest in Latin
America
You know historically as one looks at Latin America, I think our
Latin American friends have felt over the years that simply because
we have been friends and we are so close that we tend to take them for
granted. And, I think, of course, this would be a very serious mistake.
I have talked to Secretary Kissinger on this regarding this recent
trip and he is very, very pleased with the results and we are going
to follow up here in this next month.
Senator SPARKMAN. I am glad to hear that because we have heard
frequently that we tend to neglect Latin America, South America,
particularly, and I think it would be a very bad mistake for us not
to keep in mind at all times the importance of good relations between
the United States and our southern neighbors, and I am glad we are
going to have that followup meeting.
Did you attend the meeting in Mexico City?
Mr. Sisco. No.
Senator SPARKMAN. I understand it was a very worthwhile meeting.
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0I r. Slsce. i1'0
'11, the Foreign AIisisters were, I gather, much im-
pressed with d.e grasp of the Latin American problems which our
5t-oretary of state has. Anybody who has worked with Henrv K_is-
sirrger learns one thing: you can be the action officer on the Middle
Fast or Latin America. or whatever it is, but you can be sure that
b.% the time he gets fully involved in this kind of conference, he will
k_sow more about that particular area than you do, the so-ca'~led
expert, and I think the Latin Amer can meeting, Senator Sparkman,
illustrates that, right to the point.
I art full of admiration for our Secretary of State in terms, of
tin kind of preparation that he involved himself in and I think this
Wits reflected net only in the meeting itself but I think that each one
of the Foreign ;Ministers felt here wis it man that had it very genuine
interest, and I am told by those there he was greeted with cheers,
and this I might say is a new experience in Latin America for many
of us in present times.
II)A's 1NTI:REST TO LATIN AMERICA
:=orator SPARKMAN. You mentioned IDA. Is that of great interest
to Latin America?
Mr. Sisco. Very much so. At this meeting in Latin America the
St cretary of State indicated that we would pursue this matter further
wit Ii the Congress in hopes that everything will be done so that the
II )A replenishment, IDA IV, will 3n fact be achieved. This is very
important to Latin America.
It is important to it number of other parts of the world. And I
think that it has been a constant in the situation and we have
indicated that we want to participate.
As You know, the IDA would run out of its committable funds
after July 1 and our Bona,tion is necessary to reach the 80 percent
participation level which determines whether IDA TV will go into
e1ieet or not, and the fact of the matter is if we indicate and are in
position to indicate what we are going to do, obviously others will
go ahead and make their cormnitment, but if we should falter tdien
I think von would find that others would equally falter and, therefore,
it would be, a, very serious situation indeed.
Senator SrnRrnlA~. I agree with you in the importance of IDA
and I do hope that Ave can do our share in supporting it.
'.Jr. Sisco. 't'hank you for your support.
`legator SPnr,K1v[A N. Let me ask Senator Aiken.
I,'xcuse nre for just it few minutes.
`lt'nator Al r r:N. I found your statement generally very good. I am
looking over some of your requests for additional funds.
P-W,11,1TATrON OF EXPANSION OF 17.9. EXPORTS TO SAtTDI ARABIA
notice 1.~? million to establish it permanent ambassadorial rep-
resvntation in Ornarl and to facilitate the expansion of U.S. exports
to -htudi Arabia,.
I )o von expect that increased exports to Saudi Arabia would be
1111rtched by rnc?eased imports from Saudi Arabia?
"Ir. SSisco. Flasically, our approach, Senator, to Saudi Arabia, at
tit present time is to try to work something out with them in provid-
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ing American technical help, American advice, in what they are very,
very interested in, namely, the industrialization of their country.
We do have a military assistance relationship with Saudi Arabia.
The question of oil is self-evident. And they have had good experi-
ence over the years with American technology.
As we look ahead to the future our hope is that we can deepen
our relationship not only in the military assistance category but
likewise in economic and financial matters.
They are interested, for example, in science and technology, this
kind of thing. We returned from Saudi Arabia, just a week ago and
it was clear to me from these discussions that this is a matter of
continuing interest. I think that we have got an opportunity here
to develop in these areas.
It will not only afford business opportunities for our business
people, export and that sort of thing, but I think they are as much
interested in the actual technology and our advice and I think we
can move on both fronts in this regard.
Senator AIKEN. You think then they might be able to pay cash
for any exports that we send them rather than balance them off with
increased imports from that country?
Mr. Sisco. Well
Senator AIKEN. We don't have a balance of trade with them now,
do we?
Mr. Sisco. No. I think on the whole they will be in position to pay
for many of these things with cash.
Senator AIKEN. I hope so.
WEST GERMAN OPINION OF PROPOSED U.S. EMBASSY IN EAT BERLIN
I notice you asked for $1.4 million to open an Embassy in East
Berlin, probably very soon.
What does West Germany think of that proposal?
Mr. Sisco. The West Germans have no difficulty with it, Senator.
As you know, from what has occurred over the past weeks and
months, closer contacts and relationships have developed between both
East and West. The opening of this Embassy I should make clear does
not constitute formal diplomatic relationships on our part. The East
Germans now have been recognized by about 100 countries. Really, if
I want to be very literal and technical, it is really a new post rather
than an Embassy. We do not intend in the foreseeable future for there
to be a resumption of formal diplomatic relationships.
[The following information was subsequently supplied:]
[Supplied by the Department of State]
We have asked the East Germans to provide us with suitable Embassy
facilities in East Berlin but they have not yet met our minimum requirements
in this area. When they have done so, we are prepared to have formal negotia-
tions in Washington, looking toward the formal establishment of diplomatic
relations with East Germany. Those negotiations will be concerned with the
functions of the respective Embassies, consular relations and the handling of
claims problems. The establishment of relations with the GDR is a matter of
protecting our own interests and the interests of our citizens by affording Ameri-
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tourists consular services and assisting American businessmen who wish
to buy from or sell to East German enterprises. Three additional points may
be useful, namely :
-In international law, the establisIment. of diplomatic relations does not
imply approval of another governments internal or foreign policies.
-The (.DR became a member of the United Nations in September 1973.
--The GDR now maintains diplomat is relations with more than 100 states,
approximately 10 of which have recogr.ized the GDR since December 1972.
ANTICIPATED RECOGNITION OF MONGOLIAN PEOPLES REPUBLIC
Senator AIKEN. $600.000 for a new mission in Ulan Bator, the Capi-
tol of Mongolia, in anticipation of U.S.. recognition of the Mongolian
People's Republic. I think that was considered a few years ago.
1-low do the Mongolians' neighbors regard this? Do they feel better
about it than i-hev used to? Does Mongolia herself feel better about it ?
Mr. SISCr). I want to be very sure. We have been in negotiations with
the Mongolians on this matter for some time.
As von know, Senator, those negotiations have not been concl uled.
Our hope is that they will be, br.t I can't really point to anything
specifically.
Candidly, Senator, for internal e:dmillistrative reasons we are shoot-
ing for roughly May for concluding the negotiations. Whether we will
achieve ahould. do, are disappointed because
many come in, fill language-desig:a.ated jobs, but neither study a la:a-
gua.ge nor nnake, any effort over period of a year or two to try 'to
obtain proficiency in a language. We feel language proficiency is a
basic element of service in the modern Foreign Service.
EXTRAORDINARY COSTS FOR STAFF OFFICERS
Senator PELL. In connection wi ;h the extraordinary costs for Staff
Corps members, you did not touch it in your sequence of your testi-
snonv. Your number sequence is wrong. You have two No. 5's.
Mr . 11OYA7-1. Sorry, Mr. Chairman. We are a poor organization.
Senator PELT,. The extraordinary costs for Staff. Corps members,
it seems to inc you skipped that, but you are very much behind.
Mr. BoYArr.. Yes, sir. The problem here is that it does not affect a lot
of people, but when it does affect an employee, it is just devastating.
In my own experience, I was stationed in Chile about 10 years ago,
and they had a 200-percent import duty on automobiles. Well, the re-
sult was that we had not one Staff person in that Embassy who had an
automobile, and this had all sorts of complications in terms of school-
ing, you know, for their children, and what they could do for recrea-
tion. It was a very difficult situation.
I think that a simple enactment in title IX would give the Secretary
the authority under appropriately safeguarded conditions to see that
there are no abuses, to permit this kind of an allowance which now has
no legislative basis.
Senator PE Li.. I would agree with you.
With regard to terrorism, I would see the merit of your views.
I am glad the USIA study is going on, because I have come increas-
ingly to the view that perhaps we should combine the U.S. Information
Officer Corps and the U.S. Foreign Service Officer Corps into one.
The information officer will benefit by being given a political or com-
mercial or consular assignment, and by the same token, the political or
consular officer will benefit by getting an information assignment. I
think we made a mistake in creating these two separate Services. I am
wondering if Miss Roth, who is a Foreign Service information officer,
has any views in this regard.
Miss ROTH. As Mr. Boyatt said, Mr. Chairman, this is very much
under study. I think the impetus for the study was the report of this
committee last spring when many of us felt that this was a very serious
matter, and if our Agency did not take it seriously, we, the profes-
sionals, should. So we have been at work since last June and last Satur-
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155
day came up with a possibly acceptable first draft. Our paper will spell
out briefly the history of the problems and delineate structural and
functional problems. What we propose to do is come up with three
options.
Senator PELL. I would hope one of those options would include the
idea of one Officer Corps.
Miss ROTH. One of those options does, Mr. Chairman.
Senator PELL. Yes. Then, I look forward to backing at least one of
them.
Miss ROTH. But we do feel that 9 or 10 of us working are not enough
to get a true consensus, if there is such a thing in the U.S. Information
Agency, and in the coming 6 weeks we will be in contact with our
members overseas as well as those here, to get a better feeling. This is
part of our joint effort for the Murphy Commission and part of a
rigorous look at ourselves which is long overdue.
AFSA VIEW OF OVERTIME
Senator PELL. Speaking to you as an organization, what is the pres-
ent status with regard to overtime? The Foreign Service officers are
eligible for overtime, which is a regulation, I hope, that will be re-
versed because they either have to make their choice of being civil
service 9-to-5 group or an elite service in the real sense of the word,
and not expecting overtime for working Saturdays, Sundays, and
nights. What is the present view of the AFSA in this regard?
Mr. BOYATT. My friend from Texas has volunteered to handle this
question. I am delighted to let him do so.
Mr. IIARRIS. The overtime problem, sir, is primarily a Staff Corps
problem. It is not an officer problem.
Senator PELL. I am not talking about the Staff Corps. I am only
talking about the regulations which apply to Staff Corps and For-
eign Service officers alike.
Mr. HARRIS. They are not regulations. It is a provision of title 5 of
the United States Code.
Senator PELL. So we ought to change the law, in other words.
Mr. IIARRIS. That would be necessary. The Association's position is
that the law should be applied in an evenhanded way. The officers who
are eligible for overtime are class 5, step 2, and below. So essentially,
it is officers who are earning under $16,000 a year. Quite frankly, Sen-
ator, in terms of the pay comparability problem, a career officer in
today's Foreign Service may have been in the Service for 5 years be-
fore he reaches class 5. So we feel an officer, when he is a duty officer in
the Department or an embassy, should get the few dollars extra re-
quired by law. This is really necessary because a number of officers,
especially an officer assigned in Washington with small children and
trying to buy a home, have financial problems. Certainly things are a
lot easier when you are abroad. Your housing is provided. But there
are severe financial hardships on the junior officers, and class 5 officers
in the Service, which the Service must face. But the primary problem,
let me emphasize, with overtime, is in the Staff Corps. The Staff Corps
are the people who are really putting in the bulk of the overtime, and
in many cases, the laws and regulations are not being applied
uniformly.
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6
Senator PEIa,. I would not agree with you about the Foreign Service.
Granted they need a few extra dollars. That should be done by in-
creasing their 4alaries or allowances, but not by this particular way
that derogates the idea of an elite, service.
Mr. BoYATT. We would like to take a look at the pay comparability
problem because the junior officer comes in through an extremely rigor-
ous process, 15,000 apply and 160 are accepted, and find that as he goes
nn the career ladder every time he makes a step his peer in the military
or in the civil service making the same step gets more money. Our
curve looks like this. Tt starts out flat and goes up very slowly and
then Roes up very quickly in. the end, and the curve in the civil service
roe, like that so we have a big gap in there where our people do not
make comparable salaries.
Senator 1,ET.1.. Maybe they do not. Then, he ought to make the
choice of goin!r into the. civil service. But I think it should be one or
the other. This is a view we have ,overed before, and I feel very
strrmnly, far the sake of the. Foreign) Service, it should differentiate
itself As much as it can from the civil service both in mentality and
structure.
FSO'S IM-3:IVING OVERTIME PAY TSI ENTS IN LAST FISCAL YEAR
think I ha,'e asked one of the people from the Department to stay
behind. Maybe le would be kind enough to furnish for the record, the
number of cases in the last fiscal. year in which Foreign Service officers
hae:e received overtime payments, the number of people and the
amount or w1utt2ver is easier for you to furnish. Put it in the record.
Mr. HARRIS. Officers?
Senator PELL. Only Foreign Service officers, not staff.
Tr. HARv,IS. I think that num her w ill be very low.
Senator PELL. Good.
The information referred to follows:]
DEPARTMENT OF STATE-OVERTIME PAYMENTS TO FOREIGN SERVICE OFFICERS, CALENDAR YEAR 1973
[Supplied by Departmont of State]
July to
N ember
Foreign
Jr nuary to
December
Service
J ine 1973
1973
Total paid
officers paid
Overseas:
AF ----------
- --
$3,178.07
4
$4,630.90
49
3
300
$7, 808.97
086
43
5
28
22
NEA
-------------- -----------
1,785.9
,
.
,
.
=A
---------------
--------------------------
15,406.26
9,328.07
3
348
60
24,734.33
6
850
76
69
46
-------------- __.------------ --------------
.ARA
3,502.113
,
.
,
.
_
EUR----------------------------------------- ---
2,591.96
5,258.97
7,850.93
43
Total, overseas ---------------------------------
26,464.39
25,867.03
52,331.42
208
Domestic --------------------------------- ------?
6,837.42
37,216.38
64,053.80
91
Grand total -------------------------- .------ .-_-
13,301.81
63,083.41
116,385.22
299
c.TIIER NATIONS' PRACTICES REGARDING EDUCATIONAL TRAVEL FOR
DEPENDENTS
Senator PELL. What is the practice of other nations with regard to
educational travel for dependents?
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Mr. COHEN. We have done a. survey on that, Senator, and virtually
every Western European country has a minimum of one round trip
per year and other Governments like the United Kingdom, finance two
round trips a year for Christmas holidays. and the summer vacation.
So, generally speaking, we are way behind every other country in the
world on this.
Senator PELL. All other career services; that is it?
Mr. COHEN. Correct.
Senator PELL. Have you made a study of all services, Outer
Mongolia?
Mr. COHEN. No, no; it is essentially Western European countries we
.have covered.
Senator PELL. Soviet Union?
Mr. COHEN. We have not looked at them, no.
LIAISON WITH COMMITTEE, STA F F ON USIA STUDY SUGGESTED
Senator PELL. Going back to USIA for a moment, if you are doing a
study of the various options, there ought to be pretty close liaison be-
tween you and the committee staff here because our staff is dissatis-
fied with the present setup and is making its own study. It would be
nice if we all came to a common viewpoint.
Miss ROTH. We welcome it.
Mr. BOYATT. We look forward to it.
IMPACT ON FOREIGN SERVICE CHILDREN OF LIVING OVERSEAS
Senator PELL. Has any study been made of the impact of living
overseas on Foreign Service children?
Mr. BOYATT. Yes, Mr. Chairman. Our association and the Associa-
tion of American Foreign Service Women, and the State Department
Medical Division have jointly formed and contributed to an educa-
tional counseling center. This center in turn has brought outside con-
sultants in to look at several case histories of Foreign Service children
with a view to drawing some broad conclusions. They have come to the
conclusion that the stresses and strains of overseas living, changing
the environment every 2 or 3 years, losing friends, new schools and,
.above all, separation of parents and children, creates severe strains'
which have had the impact of causing a greater degree of trouble than
is the national average because of the strains of this kind of existence.
Senator PELL. It can be surmounted. I did not go to school until the
:fifth grade.
Mr. BOYATT. That would be welcomed by the children.
Senator PELL. No, I am chairman of the Education Subcommittee.
MAJOR IMPEDIMENTS TO IMPROVING FOREIGN SERVICE LANGUAGE SKILLS
What are the major impediments to improving language skills in
the Foreign Service?
Mr. BOYATT. Well, I think you mentioned one. Certainly, one valid
approach to the problem which is to do more for the nominees who are
entering the Service. I think the change in law that we suggested is
required. I also think that a more rational assignment policy on the
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1t"8
part of our personnel people would be helpful and finally-yes, it is a
question of filling the language-des: gnated jobs with language-capable
people. I think the Service as a whole has the talent; it is a questions
of getting the right person in the right job at the right time.
I also think that more attention should be paid to Foreign Service
Institute. All of us who have gone, through it in one or two or three
or more languages and have it gicat deal of faith in the Institute,
and would like to see their operations strengthened.
OTHER FETMMAL EMPLOYEES HAVING INSURANCE PROTECTION FOR
DANGEROUS ASSIGNMENTS
Senator PErL. 1)o any other Federal employees have insurance pro-
tection for dangerous assignirteuts?
Mr. BoyATT. Let me ask Texas to answer this one. He looked into it,
sir.
Mr. IIARus,. Essentially, the proposal we made on terrorism is an
insurance scheme. It is a Government paid $50,000 insurance policy
for anyone killed in the line of duty by terrorist activities. The b:i11
we put forward is patterned. after legislation, which is in effect now
heriffs, Federal marshals, and prison
which covers peace officers, sheriffs,"'
guards.
As you know, the military also nave free insurance for any member
of a military service who is killed in the line of duty. Unfortunately,
as Mr. Bovatt pointed out, being a diplomat in today's world places
you in the first line of battle.
FOREIGN SERVICE MORALE IN STATE DEPARTMENT
Senator PELL. What would you say would be the morale of the
service at this time? Is it good, bad, indifferent? I know in the 30
years I have been watching it it has always seemed to be low but vary-
ing degrees of low. It may be higher than one thinks.
Mr. BOYATT. Mr. Chairman, le, me divide the answer in two parts.
I will answer for the State Department where I live and which I feel
I know; and I will ask Miss Rota to answer for USIA.
With respect to the Department of State, let we say in my judg-
ment, the morale of the Foreign Service is higher today than it has
ever been ir., my exper:Lane, and that is 15 years. I think there are
three
Senator PELL. This is an abrupt change from 2 years ago.
Mr. BoYArr. Yes, sir, I think. there has been a very abrupt change.
Senator FELL. And you are ging to give me the reason. Good.
Mr. BoYATe. Yes. One of which is admittedly self-serving. In my
judgment, Caere are three reason:, for this. The most important reason,
I think, is the assumption. of Secretary Kissinger of the position of
Secretary of State. Dr. Kissinger, as this committee is well aware, is
a man of great ability and great talent and he has joined the Foreign
Service, in our view. Ii am sure Dr. Kissinger sees it the other way
around but I think this has been a marvelous merger of first class first
ass
rou capable talented of servingatat le .dean uik rsl:ip.cThere is a sort ofga sense of come
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mitment, there is a high on in the Foreign Service, and that certainly
is the first and most important reason.
I think the second reason, Mr. Chairman," is that over the last 2 or
3 years the association has come before this committee and it has be-
come apparent to the men and women of the Foreign Service that the
Senate Foreign Relations Committee and the House and the Congress
in general, do care about us and what is 'happening to us and have
demonstrated this in very practical ways, such as the kindergarten
allowance. I mean, it is a small thing as affairs of state go, but it is
important to those with kindergarten age kids.
Senator Pr L. Fine. And you sent your president up here like a
Trojan horse in the Congress.
Mr. BOYATT. That is right.
? The third reason, which is a self-serving one, is the fact that under
the new concepts by which we relate to administrative management
we do have an exclusive representative which is our voice. We elect
our representative and our voice speaks independently and I think
people respond to that.
I would just like to add, Senator, that I should not underestimate
the importance of the Pell amendment which you passed last year on
the question of insuring the promotion process against political in-
fluence. It is extremely important. In any case, I think people have a
greater sense of pride and a greater sense of participation, greater
than anything I have known. Hank is older than I.
Mr. COHEN. I agree with him, yes.
Senator PELr,. Thank you.
Miss Roth.
Miss ROTH. I hate to go from such a high, Mr. Chairman, to a low.
My experience in years is more limited but I see the morale sinking
day by day in the U.S. Information Agency. I think one of the reasons
is that those of us who joined the Foreign Service feel that our work
is overseas, and when the Agency was first started its Washington
base was 20 percent and its overseas base was 80 percent. Today that
has declined to about 50 percent of the professionals in the service in
Washington, and about 50 percent of them overseas. So the 50 percent
in Washington are frustrated and concerned and because they are
closer to the real issues of Washington policy are even more concerned.
In the field I think the morale is higher because the people are
doing their jobs and that is what we came in for.
The second reason for the uncommonly bad morale these days,
I think is that the Agency has been so reactive over the years, so
concerned with short term issues, so busy putting out fires that it has
not had a chance to think in terms of the long-range needs that an
information and cultural program must have to contribute to sup-
port for American foreign policy. So that the sense of continuity,
the sense of program concept is something we all feel is very much
lacking and something we are addressing in our study.
Senator PELL. I appreciate your statement very much, and I think
that perhaps the study that you are doing and the study the com-
mittee staff here is doing may lead to some results that will ameliorate
the position of the Agency.
30-856-74-12
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I remember before the war, World War II, it was in-house and
then it was, I will not say outhouse, but beyond the agency. Then
it was back in-house and now beyond it. I have seen it go back and
forth, and one would think when one arrived at a final conclusion, it
would stick. But maybe with the changing times-in connection with
entertainment allowances, do the Ambassadors as a general rule,
distribute these to the other officers or do they keep them themselves d'
Or is there any pattern?
Mr. BoYATT, Well, as you know, Mr. Chairman, the Ambassador
has the right to use it all himself, if he wants to. In my own experience
without going into details, just let me say it has been a lot fairer
raider career Ambassadors than it has been under politically-appointed
ambassadors.
While I ain on this subject of the question of costs, Tex pointed
out as we were. talking about a hundred thousand dollars being. you
know, the "price" of a medium-sized European post that it is a good
investment because it takes a couple of hundred thousand dollars a
year to keep an ambassador in a middle-sized European post and
this entertainrr..ent allowance, of course, is part of it.
I think it is fair to say in the career service the feeling is that we
do not worry about that much with the career Ambassador because
it. is a pretty square shake. otherwise, you do not know because in
some cases it is yes and other cases, nn.
Senator P5,,LL. I think you are right and I think a noncareer man
with outside income can save his income; for that period of time very
adequately.
Mr. BoY-A rr. Yes ; there is a certain trade-off there.
Senator P1:LL. But in this connection with the entertainment al-
lowance, I would like to ask the Department's representative hero
if it would furnish for our printed record here two columns, one of
the career Ambassadors and one of the. noncareer Ambassadors and
then next to each man's name, not the amount particularly, but the
percentage of the entertainment allowance that he has distributed.
T think that would be very interesting and salutary.
Mr. BOYAPn I am looking forward to seeing that too, Mr. Chairman.
(The information referred to follows:]
DEPARTMENT OF STATE-PERCENTAGE OF REPRE5ENTATIDN FUNDS RETAINED BY AMBASSADORS
[Fiscal year 19731
Percent
distributed
Percent to other
retained by officers in Totd
ambassadors country percent
Career ambassadors (85)-------------------------------- .----------- 47 53 100
Noncareer ambassadors (:35)----------------------------------------- 35 65 160
Note: Parentheses indicate number of ambassadors.
Source: Department of State.
Miss Rem. Could I interject here with one rose to the Agency?
Senator PULL. Yes.
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Miss ROTH. I think our people in the field have been dealt with
quite equitably. However, the amounts are so pitifully small that the
average officer without concern spends $1,000 out of his pocket know-
ing that this is part of his or her job.
RETIREMENT OF CAREER MINISTERS AT SIXTY
Senator PELL. Another general point. AFSA supports the retire-
ment of career ministers at 60 as opposed to 65.
Mr. BOYATT. Yes, Sir.
? Senator PELL. It seems to me that is not too good an idea because
we do not have too many. How many is it?
Mr. BoYATT. Forty-seven. It is getting close to 50.
Senator PELL. These are obviously very able men, and I am won-
dering if we are right in calling for their retirement.
Mr. BOYATT. I would like to make a distinction here. We are not
proposing that all career ministers be retired at age 60. We are only
proposing that those career ministers after the age of 60, who do not
hold or are not appointed to a position of Presidential responsibility
requiring Senate advice and consent would be retired, and I think
our judgment there is that it is an extremely able group of men and
the vast majority of that-, group is being used in Presidentially ap-
pointed positions, ambassadorships, and assistant secretaryships and
so on. .
Senator PELL. I do not think that is what your suggested amend-
ment says, though. Your amendment just retires them.
Mr. HARRIS. That is clearly our intention.
Mr. BOYATT. I am sorry if it is not clear. Our intent, the purpose
was
Mr. HARRis. The purpose is not to retire anyone who is fairly senior
in age who is filling a responsible job under the direction of the Presi-
dent, confirmed by this committee. A man 70 years of age who enjoys
the confidence of the President and this committee should be able
to continue as a career minister regardless of his age. However, for
it person who does not enjoy that confidence, whose career, let us say,
has peaked, we feel that person should leave the service at age 60
and make an opportunity for another younger career minister to
come in to take his place.
Senator PELL. I see your point and I must say I have some timidity
about it, since my predecessor, who was chairman of the committee
that did the confirming retired, I think, at 88 or 89 from his position.
In connection with the grievance area, do you have any outstanding
problem at this time?
Mr. HARRIS. Sir, the major problem has been the Agency's refusal
to have a board which is impartial.
Senator PELL. This is going back to the point you mentioned
earlier?
Mr. HARRIS. Yes.
Senator PELL. This is one I hope you hammer out together so we
do not have to do it by legislation. I hope the Department will make
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162
note of the committee's views because we do not want to legislate
this, but we will be left with no al?,ernative if there is no agreement.
I thank you very much. I am sorry for the lateness of the hour.
It is excellent testimony, and thana you for coming up.
The committee is recessed until tomorrow morning at 10 o'clock,
when the Dirmtor of USIA will be here.
[Whereupon, at 6:20 p.m., the committee was recessed, to reconvene
at 10 a.m., Tuesday, March. 12,1974.1
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TUESDAY, MARCH 12, 1974
UNITED STATES SENATE,
COMMITTEE ON FOREIGN RELATIONS,
Washington, D.C.
The committee met, pursuant to notice, at 10:05 a.m., in room 4221,
The Dirksen Senate Office Building, Senator John Sparkman pre-
siding.
Present : Senators Sparkman, Pell, Aiken, and Pearson.
Senator SPARKMAN. Let the committee come to order, please.
Other Senators have indicated they will be here, but I think we had
better get started. This morning our committee is meeting in connec-
tion with annual hearings on the USIA [United States Information
Agency] authorization bill. In past years the committee has heard
testimony from the Director and from the Assistant Directors for the
various functional and geographical areas.
This year's hearings will follow the same approach but with a slight
modification. Following the Director's opening presentation of overall
Agency activities, the committee will hear from a series of their -five-
man area teams, with each team comprising the four functional assist-
ant directors and the geographic assistant directors from a particular
region of the world. Each of the three area teams as they appear in
succession will make a short presentation of the USIA activities in the
selected region.
We will hear first, however, from Mr. James Keogh, Director of
USIA, who is accompanied by Mr. Eugene Kopp, Deputy Director of
the Agency, and Mr. Stan Silverman, Agency Budget Officer. As we
begin, I am inserting in the record a copy of the proposed fiscal year
1975 USIA legislation, some explanatory tables, and other material.
[The information referred to follows:]
[S. 3118, 93d Cong., 2d sess.]
A BILL To authorize appropriations for the United States Information Agency, and for
other purposes
Be it enacted by the Senate and House of Representatives of the United States
of America in Congress assembled, That this Act may be cited as the "United
States Information Agency Appropriations Authorization Act of 1974".
SEC. 2. (a) There are authorized to be appropriated for the United States
Information Agency for fiscal year 1975, to carry out international informational
activities and programs under the United States Information and Educational
Exchange Act of 1948, the Mutual Educational and Cultural Exchange Act of
1961, and Reorganization Plan Numbered 8 of 1953, and ether purposes authorized
by law, the following amounts :
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164
(1) $231,468,000 for "Salaries and Expenses" and "Salaries and Expenses
(special foreign currency program)", except that so much of such amount
as may be appropriated for "Salaries; and Expenses (special foreign currency
program)" may be appropriated without fiscal year limitation ;
(2) $6,770,000 for "Special intern?.tional exhibitions" ; and
(8) $4,400,000 for "Acquisition and construction of radio facilities".
Amounts appropriated under paragraphs (2) and (3) of this subsection are
authorized to remain available until expended.
(b) (1) In addition to amounts authorized in subsection (a) of this sectio:a,
there are authorized to be apprortated for the United States Information Agency
such additional amounts as may be necessary for increases in salary, pay, retire-
ment, or other employee benefits authorized by law which arise subsequent to the
date of enactment of this Act.
(2) In addition to the authorization contained in section 2(b) (1), there is
authorized to be appropriated not to exceed 5 per centum of each amount other-
wise authorized in section 2(a) for urgent requirements which arise subsequent
to the date of enactment of this Acs..
REPORTS TO CONGRESS
SEC. 3. Section 1008 of the United States Information and Educational E:c-
change Act of i9i8 is amended. to read as follows :
"SEc. 1008. The Secretary shall submit to the Congress annual reports of
expenditures made and activities carried on under authority of this Act, inclusive
of appraisals and measurements, where feasible, as to the effectiveness of the
several programs in each country where conducted."
SECTION-EY-SECTION ANALYSIS OF S. 3118
Section 1.-Provides that the Act may be cited as the "United States Informa-
tion Agency Appropriations Authorization Act of 1974."
Section 2. Subsection 2(a) (1) -Authorizes appropriations to be made for
salaries and expenses necessary to carry out international informational activi-
ties and programs under the United States Information and Educational Er-
change Act, the Mutual Educational and Cultural Exchange Act, and Reorganiza-
tion Plan No. 8 of 1953, for the fiscal year ending June 30, 1975. The portion
appropriated pursuant to the special foreign currency program would be ava".1-
able until expended. The $231,468,000 requested is the amount now included in the
President's budget for fiscal year :1975.
Subsection 2(a) (2).-Authorises appropriations to be made for expenses
necessary to carry out functions under Section 102 (a) (3) of the Mutual :Educa-
tional and Cultural Exchange Act, to remain available until expended, for the
fiscal year ending June 30, 1975. The $6,770,000 requested is the amount new
included in the President's budget for fiscal year 1975.
Subsection 2(a) (3). Authorises appropriations to be made for the purchase.
rent, construction, and improvement of facilities for radio transmission and
reception and the purchase and instal' ation of necessary equipment for radio
transmission ar.d reception ; and acquisition of land and interests in land by
purchase, lease, rental or otherwise, tI remain available until expended. The
$4,400.000 is the amount included in the President's budget for fiscal year 1975
for nresent action. The request will cover maintenance and repair of existi ig
facilities : modi;ication of the antennas at the Agency's West Coast plants ; and
continued technical research.
Sach,eection. ?(h) (1).-Federal nay raises and other laws or Executive Orders
will rectuire 1r.ereased costs on the part of the Agency. In order to pro-
vide funds for such requirements, Section 2(b)(1) authorizes increases in
appropriations.
S11ARP.ctinn. 2(b) (2).-Authorises an amount not to exceed 5 per centum of
each amount otherwise authorized to to appropriated by Section 2(a) in order
to meet urgent requirements arising sli)eegpent to the date of enactment of this
Act. For example. It is anticipated that the present worldwide petroleum dif$cul-
ties may result in substantial increase; in costs to the Agency for which ad1i-
tional fundq will be necessary.
Snrtion. g:---:Amends section 1008 of the United States Information and Ednea-
tion Exchange Act of 1948 to require annual reports to the Congress. Semi-.annual
reports are required at present.
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U.S. INFORMATION AGENCY
COMPARISON OF 1975 REQUEST WITH 1973 AND 1974 APPROPRIATIONS
In thousands of dollars]
1973
actual
1974
estimate
1975
estimate
Increase or
decrease(-)
A. Salaries and expenses:
1. Dollar appropriation (annual). ----
---------- 190,750
196,000
222,091
26,091
Pay act supplemental ------------------------------------ 7,062
--------------
- -7,062
Subtotal, salaries and expenses ------------
190, 750
203,062
222,091
19,029
2. Special foreign currency program (no-year
funds)----------------------------------
12,500
6, 000
9, 377
3, 377
Total, salaries and expenses____________
203,250
B. Special international exhibitions (no-year funds):
1. Dollar appropriation ------------------------
5,061
4,336
6,770
2,434
Supplementals (pending)_________________________________ 6,438
_______-------
-6,438
Subtotal, special international exhibitions___
5,061.
10,774
6,770
-4,004
2. Special foreign currency program ------------
357
78
______________
-78
Total, special international exhibitions-_____
5,418
10, 852
6,770
-4,082
C. Acquisition and construction of radio facilities (no-
yearfunds)------------------------------------
1,100
1,000
1 4,400
3,400
D. Grand total, appropriations and requests----.--
209, 768
220, 914
242, 638
21, 724
I Excludes $13,840,000 for the 1st phase of the project to replace the Voice of America relay station on Okinawa. A
request for authorization and appropriation of funds project this project will be submitted at a later date, as appropriate.
U.S. INFORMATION AGENCY, SUMMARY OF 1975 AUTHORIZATION REQUEST (SALARIES AND EXPENSES RESOURCES
DISPLAYED BY GEOGRAPHIC AREA AND MEDIA FUNCTION)'
[In thousands of dollars]
Motion
Press and pictures and
publications television
Centers and
related
activities
Radio
1975totaI
A. Salaries and expenses (program by
geographic area):
East Asia and Pacific___________ 11,100 6,696
15,386
18,226
51,408
Africa------------------------- 5, 902 3, 285
11, 703
8, 519
29, 409
Near East, North Africa, and
South Asia__________________ 9,275 3,461
16,093
11,913
40,742
Latin America_________________ 7,905 7,045
15,982
6,230
37,162
West Europe___________________ 8,934 3,689
21,235
2,197
36,055
Special Europe_________________ 313 169
1,300
1,365
3,147
Soviet Union and East Europe____ 5, 384 961
5,257
22,067
33, 669
Less foreign currency balances
applied ---------------------
Total salaries and expenses
request___________________ 48,787 25,292
86,910
70,479
231,468
B. Special international exhibitions__________________________________
i
i
i
i
f
di
6,770
--------- -----
6,770
ra
s
on and construct
on o
o
C. Acqu
t
facilities----------------------------------------------------------------
4, 400
4, 400
I This display represents application in gross terms of the agency's total salaries and expenses resources by function
and geographic area. It necessarily involves the proration of resources related to worldwide programs, program direction,
research activities, administrative and other general support, and certain field costs that are not directly attributable
either to major functions or geographic areas.
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USIA, ANALYSIS OF AGENCY POSITIONS BY MAJOR ORGANIZATIONAL GROUPINGS AND APPROPRIATION
FFOM WHICH FUNDED
1.973
actual
1974
estimate
1975
estimate
Increase or
decrease (--)
Salaries and expenses: I
USIS missions:
Domestic ------------------------------___
111
106
106
__-_________-
Overseas Americans_________________________
1,048
1,021
1,026
5
Local employees ------------------------------
4,179
4,014
4,024
10
Total, USI3 missions -------------------------
5,338
5,141
5,156
15
Media services:
Domestic- --------------------------.-.-----
2,229
2,193
2,195
2
Overseas Americans --------------------------
150
145
145
________
Local employees____________________________
1,191
1,137
1,112
____ _
-25
Total, media services ---------------- -.-____
Research, direction, and other services:
3,570
3,475
3,452
-23
Domestic ----------------------------------
851
804
804
----------- -
Overseas Amerians_________________________
8
6
6
--------------
Local employees----------------------------
4
2
Total, research, direction, and otter services-
863
812
Total, salaries and e:penses:
Domestic -----------------------------
3,191
3,103
3,105
2
Overseas Are ricans_____________ __
1,2.06
1
172
1
177
5
,
Local employees_______________________5,374 5, 153
,
5,138
-15
Total, salaries and expenses ---------- ------
9,771
9,428
9,420
-8
Domestic-------------------------------------
56
56
56
--------------
Overseas Americans------------------ _-----------
2
12
12
--------------
Local employees --------------------------------
6
20
20
-------------
Total, special international exhibitions. ------------
64
88
88
_____________
Grand total, USIA:
Domestic___________________________.-____-.-_._
3,247
3,159
3,161
2
Overseas Americans -------------------------------
1,208
1,184
1,189
5
Local employees__________________________________
5,380
5,173
5,158
-15
Total, USIA --------------------- _......... -----
9,835
9,516
9,508
-3
I Includes dollar and fo eign currency accounts.
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. 167
HISTORY OF U.S. INFORMATION AGENCY APPROPRIATIONS, FISCAL YEARS 1954 THROUGH 1975, ESTIMATE
[In millions of dollars[
Salaries and expenses
Special international exhibitions
Infor-
Special
Special
mational
di
foreign
foreign
a
Radio me
d
G
currency
currency
construe- guaran-
ran
total
Fiscal year
Dollars
Program
Total
Dollars
program
Total
tien tee
2
84
----- - ---------------------
84.2
1954------ -------
_______
1955
84.2
77.3
-----
----------
.
77.3
-----
5.0
5.0
--------------------
82.3
92.3
______
1956-------------
87.3
----------
87.3
113
0
11.2
--------------------
124.2
1957-------------
1958
113.0
96
5
--------
-
.
96.5
15.2
----------
15.2
1.1 ----------
2
5
112.8
125
4
----_---_____
1959-------------
1960-_-_----
.
101.7
101.6
105
3
---------
--------
--------
3
0
101.7
101.6
108
3
6.4
6.1
8.9
----------
----------
0.7
6.4
6.1
9.6
.
14.8
9.0 2.7
8.7 3.7
.
119.4
130.3
1961-------------
1962
.
111
5
.
9.3
.
120.8
8.0
.3
8.3
10.7 1.5
0
1
141.3
156
8
-------------
1963________
.
123.1
8.5
131.6
7.6
.4
5
8.0
7
7
.
16.2
1 .7
12
.
166.2
1964________
134.0
140
3
11.7
8
2
145.7
148
5
7.2
15.0
.
.4
.
15.4
.
2.0 ------
165.9
1965-------------
1966
.
144
0
.
11.1
.
155.1
3.7
.2
3.9
26.2 ------
185.2
172
7
-------------
.
152
2
10
9
163
1
2.7
.4
3.1
6.5 ----------
.
1967-------------
1968
.
155
1
.
8.6
.
163.7
12.0
.4
12.4
18.2 ----------
194.3
176
7
-------------
1969-------------
1970
.
163.5
169.7
9.3
10.8
172.8
180.5
3.5
2.9
.4
----------
3.9
2.9
--------------------
--------------------
.
183.4
190
0
-------------
1971-------------
1972
172.1
181.2
13.0
13.0
185.1
194.2
4.0
3.5
.3
.3
4.3
3.8
.6 ----------
1.1 ----------
1
0
.
199.1
209
7
-------------
1973-------------
1974
190.7
203
0
12.5
6.0
203.2
209.0
5.1
10.8
.4
.1
5,5
10.9
.
----------
1.0 ----------
.
2220.9
7
242
-------------
1975 estimate_____
.
222.1
9.4
231.6
6.8
----------
6.8
4.4 ----------
.
a As a result of rising salary costs and other inflationary factors experienced since 1954, the $231,500,000 requested in
fiscal year 1975 for the Agency's regular operating budget represents only $82,500,000 in terms of 1954 constant dollars.
An explanation of these cost increases and a comparison of the regular operating appropriations on a constant dollar basis
follow this table.
2 Includes pending supplementals of $13,50D,000 in 1974.
USIA, COMPARISON OF AGENCY OPERATING APPROPRIATIONS ON A CONSTANT DOLLAR BASIS-COMBINED
SALARIES AND EXPENSES APPROPRIATIONS
[In millions of dollars]
Appropriations
enacted by
Congress
Appropriation-
values on a
constant dollar
basis
-------------------------------
1954
84.2
84.2
74
8
-----------------------------------
-----------------------------------
1955
77.3
.
4
80
------------------------------
------------------------------------
1956
87.3
.
100
6
-----------------------------
-------------------------------------------
1957
113.0
.
81
0
----------------------------
----------------------------------------
1958
96.5
.
82
7
-------------------------------
------------------------------ ---- -----
1959
101.7
.
81
3
-------------------------------
--------------------------- ----------
1960
-
-
101.6
.
84
2
-
-
-----------------------------
1961
-----------------------------------
-
108.3
.
1
93
-
---------------------------
---------------------------------------
1962
----
120.8
.
97
3
-
---------------------------
-------------------------- ------ -------
1963
131.6
.
103
0
-------------------------------
-----------------------------------_
1964
145.7
.
100
3
-----------------------------
-----------------------------------r-----
-
-
1965
148.5
.
102
0
-----
-
---------------------
--------------------------------------------
1966
-
155.1
.
4
103
-
-------------------------
----------------------------------------------
1967
163.1
.
101
2
-------------------------
----------------------------------------------
1968
163.7
.
99
3
-------------------------
-------------------------------------------
1969
172.8
.
92
5
--------------------------
-----------------------------
1970
-
180.5
.
88
6
-
- -----------------------------
1971 ---- ----------------
185.1
.
87
2
---------------------------------------
1972
-
194.2
.
84
9
-
- -- ------------------- ----
---------------------------------------
1973
-
203.2
.
0
79
-
---- ------------------------
------------------------------------------
1974
-
r 209.0
.
5
2 82
-
------------------------ --
1975 estimate---------------------------------------------------------------
2231.5
.
I Includes pending supplemental of $7,062,000 for Federal pay raise.
2 Includes an fund o increase eof $5,400,000 ($2,000,000 O0for in terms Agency of 1954 domestic dollars) for the newly required payment to the Federal
buildings
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U.S. INFORMi,TION AGENCY
SUMMARY OF SALARIES AA D EXPENSES REQUIREMENTS
]Irr thousan is of dollars)
Program element 1973 actual estim19e4
1975 Increase or
estimate decrease (--)
Overseas mission programs:
East Asia and Pacific------------------------------ $21,473 $23,077
Africa
$24
390
$1
313
________.. 13,!119 14, 094
Near East
No
th Af
i
,
14
874
,
7:i0
,
r
r
ca, and South Asia_____.._____ 21,384 21, 507
Latin America
,
,
42
779
1
272
__________________ 19
940 20,893
West Euro
e
,
22
439
,
1
546
p
------------------ 21,746 24,950
Special Euro
e
,
27
504
,
2
554
p
program (Berlin, RI AS, GDR) ------- 3,597 1,930
Soviet Union and E
,
2
788
,
858
ast Europe_____________________ 6,902 7,287
,
7,546
2319
Total, overseas mission programs_______________ 109,061 113,738
122,320
8, 582
Media indirect and worldwide support.
Press and Publica'ious Service-_______._ 10, 488 10, 899
Motion Picture v
l T
l
i
11
740
84.1
o
e
ev
sion Service..___...8,800 8,564
Information Center Service
,
8,679
115
-------------------
4,972 5,256
Broadcasting Service _-------------------------- 49,983 53,564
7,016
56,333
1, 7E0
Total, media indirect and worldwide support ...... 74,168 78, 283
83, 768
Research, direction, and general support:
Office of Research ----------------------------- 2,988 3,007
Program s
d
li
i
2
947
-60
a
po
cy d
rection__________-._____-.-___ 2,978 2,946
Direct administ
t
,
2915
-31
ra
ion and other support-..--.---.---- 13, 397 13, 838
14, 213
375
Total, research, direction, and general support---- 19,363 19,791
Reimburse
t
G
20
075
284
ment
o
eneral Services Administration__.____________
,
5,429
5,429
Total, salaries and expenses obligations----------- 202, 592 211,812
Net foreign currency b?lauces applied and other adjust-
231,592
19,780
merits ---------------------- 658 -2,750
-124
2,621)
Total, salaries and expenses appropriations and
estimates ------------------------------ _---- 203, 250 1209,062
I Includes proposed pay act supplemental 01 $7,063,000.
SPECIAL INTERNATIONAL EXHIBITIONS
DOLLAR AND SPECIAL. FOREIGN CURRENCY ACCOUNTS
(Funds in thousands]
1974 and 1975 I ositions 1974 estimate
1975 estimate
American Local Showings Amount
howings
Amount.
A. Fairs and exhibitions--U.S. Information
Agency:
1. Trade fairs __...... ._____---
---
19
--
2. Reshowings of exchange exhibits ---------
in East Europe ----------- _---------------------------
3. U.S.S.R. exchange exhibits:
a) 6th series
b) 7th series
12
----------
$1,236
1,050
89
310 $1,053
13 1,066
----------------------
----- ?------
(c) 8th seic
4. Art and American scene exhibits
in East Europe___ __________________________
17
1,702
700
87
----------------------
4 2,960
21 100
5. Staff and general operating costs-
58
-----
1, 434
------------ 1.497
Total, fairs and exhibitions------
B
Okin
f
i
U
I
S
58
6
43
6, 298
48 6
676
.
awa
r-
a
.
.
nformation Agency___
C
Labor
i
i
10
14
1
370
,
1 4
012
.
m
ss
ons-Department of Labor____
6
----------
6
260
,
9 289
Total, obligations ---------------------
Adjust for reimbursements
bala
c
d
74
20
50
6,928
58 1,10,977
,
n
es, an
other adjustments-------------------------------------- ------------------
3,924
------------ -4,207
Total, appropriation and requests----- 74
20 50
10,852
58 6,77D
'Represents 4 exhibitions occurring in fiscal year 1974 and ', projects requiring advance funding.
'Represents 6 exhibitions occurring in fiscal year 1975 and 4 projects requiring advance funding.
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169
ACQUISITION AND CONSTRUCTION OF RADIO FACILITIES
]Funds in thousands of dollars]
Major construction projects:
Delano and Dixon antenna improvements_________________________________________________
$2,800
Other major construction projects ___I----------------------------------------- $62
----------
Total, major projects-. ---------------------------------------------------- 62
2,800
Engineering research____________________________________________________________ 138
100
Major improvements, replacements and repairs_____________________________________ 1,615
1,500
Total, funds------------------------------------------------------------ 1'815
4,400
Less balances applied----------------------------------------------------------- -815
Appropriation enacted and requested______________________________________________ 1,000
4,400
TABLE SHOWING THE NUMBER OF USIA EMPLOYEES WITH SALARIES OVER $15,000;
$20,000; $2.5,000; $30,000; AND $35,000
The number of employees of USIA whose annual salaTies are :
(a)
$355,001-and above------------------------------------------------
108
(b)
$30,001 to $35,000------------------------------------------------
346
(c)
$25,001 to $30,000------------------------------------------------
454
(d)
$20,001 to $25,000 ------------------------------------------------
752
(e) $15,001 to $20,000------------------------------------------------
777
The Agency's employment totaled 8,864 on January 31,1974. As indicated above,
2,527 of those employees received salaries in excess of $15,000. It should be noted
that among American employees, a GS-9, step 8, earns $15,009 and junior pro-
fessionals at grades GS-11 and r SIO/FSR-6 earn over $15,000 after one to
three years experience. Tints, with present pay scales the Agency's employees in
the middle grade ranges receive over $15,000. Because of its domestic and over-
sews requirements for skilled professionals in the media and communications
fields, the Agency employs a significant number of employees in the middle and
higher grades.
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170
LIST OF PUBLICATIONS CURRENTLY BEING PRODUCE]) BY USIA, SHOWING THE FRE-
QUENCY, CIRCULATION, AND ANTICIPETED FISCAL YEAR 1975 COST
PRESS PND PUBLICATIONS SERVICE
PUBLICATIONS CURRENTLY BEING PRODUCED
Fre-
quency
(issues
Circula-
1975
Where principally
per
Lion (per
estimated
Publication title distributed Langu,ige
year)
issue)
cost
1. America Illustrated R_.__-U.S.S.R----------- -__..Russitn----------------
12
62,000
$1,475,290
2. At Majal________________ Near East and Ncrth Arabic -----------------
8
20, 400
343,184
Africa.
3. Dialogue------------ --- Worldwide---. ----------- Engglisi and B other
4
191,000
597, 946
lank wages?
4. Economic Impact ------------- do------------------ Englis and Spanish__-_-
4
35,000
234,254
5. Horizons USA ----------- Worldwide except sub- Englisi and 16 other
6
330, 000
1,551,659
Sahara Africa. lani;uages.3
6. Problems of Communism- Worldwide______________ Englis-----------------
6
26,700
261,126
7. Topic ------------------- Sub-Sahara Africa_______ English and French______
8
49,600
510,434
8. Informations of Docu? France and French Frenci______----
12
70,400
314, 953
meets. speaking countries.
9. Student Review ------- -_ Republic ofChira____.._ Chincse!Engli:sh____-____
8
35,800
62,805
10. Titian___________Indonesia ------ --------- Indoiesian-------------
6
8,000
89,043
11. Trends ----------- Japan__: --__________..-_ Japanese_______________
6
15,400
237,360
12. World Today ------- ____ East Asia area ------- ..-- Chinose----------------
12
79, 800
185, 312
13. New Frontiers ---- ...---- Iran ___________________ Fersi___.---- ----------
12
21,500
120,380
14. Span___-__-____-...__-_ India .____________...... English -----------------
12
130,000
835,318
15. Interlink_________-._..-__- Nigeria _______.-__------------ o-----------------
4
6,900
28,208
16. Current Scene ----------- Worldwide-------------- English, French, and
12
10,000
97,650
Spanish.
Total estimated cog. ------------------------------------------------------------------------
6,956,922
I The Polish version of "America Illustrated" is being con