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Making Appropriations for the Consular and Diplomatic Expenses of the Government for the Year Ending 30 June 1868 and for Other Purposes". Section 134 of Public Law 98-164 repealed the provision in the earlier act which prohibited the expenditure of funds for the support of an American embassy to the Vatican.

[The information follows:]

UNDER SECRETARY OF STATE

FOR MANAGEMENT

WASHINGTON

December 16, 1983

Dear Mr. Chairman:

This is to inform you that the Department of State plans to upgrade its diplomatic mission to the Holy See, in Vatican City to an Embassy.

Once Diplomatic Relations are established, we would anticipate setting up a small Class IV Embassy. Therefore, we only plan to increase the staff now assigned to the Vatican Office by up to 7 positions to a maximum of six Americans and four Foreign Service National employees. We expect to begin assigning additional personnel in January 1984. To open the Embassy and to fund it for the balance of Fiscal Year 1984, we project that up to $1,115,000 will be required $913,000 in operating expenses for the Bureau of European and Canadian Affairs budget and $202,000 for American Salaries. These costs are our best estimate at this time and may change.

This high priority requirement will be staffed and funded by applying the 3 positions and $406,000 which are currently budgeted for the Vatican Office. The additional 7 positions and support costs of $507,000 will be reprogrammed from lower priority requirements.

I am available to discuss the proposed reprogramming at your convenience.

Sincerely yours,

Ronald I. Spiers

The Honorable Neal Smith,

Chairman,

Subcommittee on Commerce, Justice,

State, the Judiciary,

House of Representatives.

January 24, 1984

FACT SHEET

INCREASED REQUIREMENTS FOR THE VATICAN

The Department believes that additional resources for Vatican can be held to 5 positions and $351,000 ($56,000 American Salaries and $295,000 Bureau Managed). This is 2 positions and $282,000 less than the increase identified in the reprogramming notification letter of December 16, 1983. A detailed tabulation of funding estimates follows.

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Analysis of positions required:

Ambassador: A new position, the incumbent being a consultant not occupying a position.

Admin/Comm Officer: A new position, with the split off of the Vatican from Embassy Rome, the new embassy will become subject to the full administrative reporting and operations workload making this position unavoidable.

Security Officers (2): Two new positions, to provide personal protection will be required to lead an Italian protective detail. The Ambassador at Embassy Rome has a similar security arrangement. This would offset the 3 SY field agents now

providing protective security to the Envoy.

FSN GSO/B&F Asst: A new position. Like the Admin/Comm officer, the separation from Embassy Rome will create new administrative requirements, such as cashiering, procurement, administrative reporting, building maintenance which are unavoidable.

FSN Driver:

A new position is not required. An embassy Rome driver is presently allocated 80% to the Envoy. Reprogramming this position to the Vatican Embassy should not work any hardship.

FUNDS

The proposed bureau managed cost is $701,000 which represents an increase of $295,000 over the base. Included is $217,000 for one-time costs to establish the embassy. The funding requirements are compared below:

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