ALLOCATION OF HOUSE REDUCTION Senator MCCLELLAN. The House did not specifically cut you. This has been an allocation from the agency since the overall cut. Am I correct? Mr. POSNER. That is correct, Mr. Chairman. The House reduced the total appropriation by about 35 percent, by $1,956,000, compared to the request of $5,456,000. Senator MCCLELLAN. Reduced it a third, and this agency is getting a fourth reduction. Mr. POSNER. Yes, sir. Senator MCCLELLAN. There is no discrimination against it. It has been given its fair share of what the House allowed. Mr. POSNER. That is correct. Mr. PAULY. The point I would like to make is that we will not be able to maintain the program even on its relatively small basis in 1971, on the basis of the funds available. BENEFITS TO UNITED STATES: SALES AND ANTICIPATED SALES Senator MCCLELLAN. Do we have any concrete proof that our country benefits or our manufacturers and exporters benefit from this, that it has actually made a concrete contribution to increasing the exports of our products? Mr. PAULY. Mr. Chairman, we have the responses of the participants in these trade missions. We ask them at the conclusion of the mission what they sold on the particular mission and what they anticipate they will sell as a result of that operation within a 12-month period, which we believe is a brief period but one which is reasonably affected Senator MCCLELLAN. Will you submit for the record a statement or a compilation of the total amount of sales at the missions and those anticipated as a result of the missions? Can you submit a compilation on the basis of how much of our goods was sold as a result of the trade mission program last year? Mr. PAULY. Yes, sir. Senator MCCLELLAN. Will you do that? Mr. PAULY. The information we receive is from the actual participants. This is the view of the businessmen involved. It is not our view. Senator MCCLELLAN. I understand. That is why I want it in the record. I am for these things where there is a benefit to this country. Of course, if we can export more, the greater the probability of full employment and many other things. Our economy is strengthened by exports. All I want to know when I ask a question like this is, are we getting value out of it? Are we getting value received? The more you export, the more jobs, the greater the salaries paid, the more revenue our country gets. Mr. PAULY. I support that, Mr. Chairman, and we will certainly do that. (The information follows:) The above results are based on reports received from the individual businessmen mission members. The figures include sales made during the mission and the members' estimate of sales that will be made within 12 months as a result of their participation in the mission. The members projected 12 month sales may not always be accomplished but this is difficult to ascertain. Many members are reluctant to report their sales accomplishments despite the fact that Commerce agrees to keep such information confidential. The above figures cannot take into account business activities of the mission members other than sales, such as the appointment of foreign agents and distributors or the making of licensing or joint venture arrangements, which have long term result potentials. USIA-COMMERCIAL COORDINATION Senator MCCLELLAN. Senator Ellender. Senator ELLENDER. Are you under USIA or Commerce? Senator ELLENDER. Why are you coming through USIA on this? Why is it not handled by Commerce? Mr. PAULY. This has been a determination by the Congress of the United States. There has been consideration of another way of handling it, but we have received guidance from the Congress that it is preferred to handle it in this way. We have had excellent cooperation with our colleagues in USIA. We have no operating problems as a result of operating this way. So we are making no request for any change. Senator ELLENDER. What part does USIA play in this? Mr. PAULY. We have the operating responsibility. We cooperate and coordinate. Sometimes there is an opportunity for us to support a USIA trade fair with a mission, which we are happy to do if we can justify it on commercial grounds, because ours is a commercial program. But the responsibility for the implementation is ours. Senator ELLENDER. This is really a supplement to the fairs that are conducted by the USIA? Mr. PAULY. No, Senator. Senator ELLENDER. Or exhibits? Mr. PAULY. Occasionally it works out that we support a fair by coordinating the timing. But almost all times now the missions operate on a commercial itinerary, independent of any fair. Now, your memory, I am sure, is excellent. There was a time, a number of years ago, when there was a close coordination, and the missions generally were in direct support of an exhibition. But that has not been true since we have been taking a very straight commercial focus. COMMERCE EXHIBITIONS USIA AND COMMERCE PROGRAM DISTINCTIONS Senator ELLENDER. Has Commerce any plans for exhibitions other than what we are talking about that are operated through USIA? Mr. PAULY. Senator, Commerce does have a commercial exhibition program which is entirely separate from Senator ELLENDER. How much money do you obtain for that purpose? Mr. PAULY. Senator, I prefer to give it to you for the record. It is not a figure I can pull out of the air. Senator ELLENDER. Why is that exhibition program separate from USIA? Why is it not handled all together if you say USIA is so good? Mr. PAULY. I can answer that, but perhaps Mr. Shakespeare would also like to comment. The objectives of the program are quite different. Our trade-mission program and our exhibition program is focused on producing business, in the near term where we can, and part of it, a smaller amount, to laying a foundation for our participation, particularly in the developing markets for the longer-run future. My colleagues in USIA have an entirely different program. At one time, some years past, we undertook certain occupational responsibilities at the request of USIA. But when their objective shifted a little bit, they undertook the full operation of the exhibition program. Here again we have no problem. We would anticipate that it would operate on a smooth basis. Senator ELLENDER. You do not believe Commerce could not handle this, do you? Mr. PAULY. I do not believe that we have expertise in the special line of communicating an image of the United States. I think that requires specialization. I would not undertake to say that our expertise in commercial activities would automatically cover that kind of activity. Senator ELLENDER. Could that not be done through the State Department? Mr. PAULY. I have no opinion on that, sir. That is all. 1970 TRADE MISSION Senator MCCLELLAN. Will you file a list of the number of trade missions in this current year and the places? Mr. PAULY. Yes, sir; I will be glad to do that. (The list follows:) 1970 Government Missions (3): Iran Seminar Africa Survey Mission I Africa Survey Mission II 1970 Specialized Missions (9): Electronic Data Processing to United Kingdom Tourist Industry to Yugoslavia Service Industries to Japan Pumps & Compressors to Italy Automotive Industry to Germany Tourist Industry II to Yugoslavia 1970 Industry-Organized Government-Approved (IOGA) Missions (36): North Carolina Industries IV to Far East Western Electronic Manufacturers Association to Far East Scientific Ap paratus Makers Association to Far East Food Processing Machinery & Supplies Association to Far East New York State Department of Commerce to Far East Institute for the Development of the Metalworking Industries to Far East Pan American Airways III to Far East South Carolina Reverse Investment to Far East Virginia Industrial Development II to Germany Michigan State Industries III to Soviet Union and Eastern Europe Alabama State Industries V to South America American-Arab Association to Arabian Gulf Indiana State Industries IV to Far East Pennsylvania Reverse Investment IV to Germany Jacksonville Chamber of Commerce II to Panama and Costa Rica Greater Cleveland Growth Association to Western Europe San Francisco Chamber to Commerce II to United Kingdom Delaware to Soviet Union Food Processing Machinery & Supplies Association to South America Michigan-Metalworking/Materials Handling to South America Puerto Rico Industries IX to Venezuela Long Island Association to Western Europe Western Electronics Manufacturers Association to Western Europe Pollution Control Equipment to Western Europe Puerto Rico Industries X to Jamaica New York State Reverse Investment to Western Europe Odessa Chamber of Commerce to Canada Mississippi State Industries VI to South America ACCOMPLISHMENTS OF LABOR MISSION Senator SMITH. Perhaps since we are going to have the accomplishment from this gentleman, we should ask Mr. Avery for a statement of what he feels has been accomplished in the labor part of this program. Senator MCCLELLAN. Will you supply that, Mr. Avery? Mr. AVERY. Yes, sir. (The statement follows:) ASSESSMENT OF LABOR MISSION PROJECTS 1. Colombia Cities (Bogota, Cali, and Medellin) an Independent Exhibit. 2. 3. A show of twelve exhibit areas embracing 7,000 square feet entitled Assessment: The Embassy stated that the labor exhibit was "one of Zagreb, Yugoslavia with USIA. Labor held seminars featuring a case study approach to industrial Assessment: Post reported great interest and appreciation from Tehran, Iran with USIA. Manpower and Economic Development Symposia. A two-day seminar for |