"Special International Exhibitions A total of $3,832,000 is recommended for this program of which $332,000 is for payments in foreign currencies which the Treasury Department determines to be excess to the normal requirements of the United States. The amount allowed is an increase of $1,049,000 over the comparable appropriation for the current fiscal year and is a decrease of $1,956,000 from the budget request." 1971 Budget Request The House allowed the full $332,000 requested for this appropriation. The 1971 estimate provides for local currency costs associated with the trade fairs and exhibitions projected for Poland and Yugoslavia during 1971. (1) Page 53, line 20, strike out: "$600,000" and insert: "$800,000". This change is requested to meet continuing requirements for maintenance and improvement of VOA broadcast facilities during 1971. House Report "Acquisition and Construction of Radio Facilities.-- The sum of $600,000 is provided for major improvements, replacements, repairs and engineering research." 1971 Budget Request The Agency's request for the Acquisition and Construction of Radio Facilities appropriation was $800,000. The House reduced this amount by $200,000 in allowing $600,000. The Agency asks that the entire cut be restored. No new funds have been appropriated for radio facilities since 1968. The Agency has used balances available from prior appropriations to carry on a program of propagation and engineering research, and to provide for maintenance, replacements and improvements needed in the world-wide VOA facilities system. By 1971, however, all but $400,000 of these balances will have been applied to current requirements. Facilities maintenance and improvements have been running at a rate of about $1.2 million annually, and a level of $1.0 million was budgeted for 1971. Under the House allowance, this total is reduced to $800,000 ($400,000 from prior balances and $400,000 in new appropriation). For a system which still contains many out-moded components, and which must be competitive and reliable in its output, the reduced level is inadequate by engineering and industrial standards. HOUSE ALLOWANCE AND RESTORATION REQUEST Senator MCCLELLAN. All right, Mr. Shakespeare, you may proceed with your statement. I believe you have a prepared statement. Mr. SHAKESPEARE. Yes, sir, I do. Senator MCCLELLAN. Do you want to read it or briefly highlight it? Mr. SHAKEAPEARE. I can briefly highlight it, if you wish, whichever you prefer. Senator MCCLELLAN. You may proceed to read it. It will probably take less time to read it than to highlight it. Mr. SHAKESPEARE. Mr. Chairman and members, I appreciate this opportunity to appear before this committee in connection with the 1971 budget estimates of the U.S. Information Agency. The House has allowed a total of $182,865,000 for Agency programs, a reduction of $5,023,000 from the President's amended budget request. I am asking the Senate to restore $4,193,000 of this cut. The request for restoration is in three accounts: $2,867,000 in "salaries and expenses," the entire amount cut by the House; $1,126,000 of the $1,956,000 cut from "Special international exhibitions;" and $200,000 cut from the "Radio construction" account. PRIORITIES In terms of priorities, the most essential request is for $966,000 of the $1,126,000 for "Special international exhibitions." This represents the portion of the House cut that is for fairs and exhibitions in the Soviet Union, Eastern Europe, and West Berlin. The total request also covers labor missions and the trade missions program of the Department of Commerce. Our request to the House for the "Special international exhibitions" appropriation was for $5,456,000, but this total can be reduced by $830,000 not required for obligation until fiscal year 1972. The House has allowed $3.5 million of the remaining $4,626,000 required, a cut of $1,126,000. UNITED STATES-SOVIET UNION CULTURAL EXCHANGE PROGRAM In February of this year, the United States and the Soviet Union signed another agreement providing for continuation of cultural exchanges between the two countries. Included is provision for a new, major exhibition which this Agency will construct and tour in six cities of the U.S.S.R., with work to begin this calendar year. This project alone will require $1,481,000 in 1971, plus an additional $830,000 in 1972 funds. Because of the agreement and despite the House cut, we feel we must proceed with this exhibit. TRADE FAIRS Our budget request also includes $1.3 million for exhibitions at annual trade fairs in East Europe; at Zagreb, Bucharest, Plovdiv, Budapest, Poznan, Belgrade, and West Berlin. The fair in Bucharest, which takes place this fall, is a new event. The Rumanian Government's invitation for official U.S. representation was accepted some 46-370 0-70 months ago. Thus we feel that we must proceed with this exhibition, which will require $210,000 of the 1971 appropriation. Under the House bill, however, this is the only commitment which could be funded as we now see it, and participation in all the other trade fair events, beginning this fall and continuing through the fall of 1971, would have to be canceled. At most of these locations, there are permanent pavilions, constructed for the U.S. exhibition, making even more evident the absence of U.S. participation. EXHIBIT IN POLAND AND RUMANIA After some 3 years of discussion, agreement has been reached with officials of the Government of Poland for four showings of the architecture exhibit originally shown in the Soviet Union. There are also firm arrangements for its use at three locations in Rumania. Under the House bill, it would be impossible to fund both opportunities, and the Rumanian tour would have to be canceled. As you yourself said last year, Mr. Chairman, these exhibitions are powerful representations of America. I truly believe this. There are unique opportunities for direct dialog with people at all levels in these very important countries, and in most of them exhibitions represent virtually the only opportunity we have for direct personal contact with the people. I think it would be a serious mistake for our country to fail to seize these opportunities, for lack of funds, at a time when these nations increasingly are expressing interest in more significant cultural links with the United States. The absence of the United States, it seems to me, would best serve the interests of those within these countries who are opposed to closer ties with the United States. SALARIES AND EXPENSES Our budget request for the "Salaries and expenses" appropriation is for $168.3 million. It represents a net increase of $667,000 over the 1970 amount, including the pending second supplemental for last July's pay increase. The House bill reduces this amount by $2,867,000, which I am asking the Senate to restore. Our request provides for continuation of remaining program and staff levels which have already been substantially reduced during the current year. We have projected increases totaling about $857,000 in television programing, representation funds, and certain of our activities in East Europe, but these increases are to be funded almost entirely by $708,000 in further program reductions in West Europe, press, motion picture, and broadcasting operations. The House bill would require susbtantial cutbacks in both our media operations and our overseas activities. I believe that a period of relative stability is now needed, following the overall reductions that have had to be applied during the last 3 years-reductions that have brought our staff to the lowest number since the Agency was set up. ACQUISITION AND CONSTRUCTION OF RADIO FACILITIES The final item which I am appealing is the $200,000 cut by the House from our request for funds for VOA engineering research and for maintenance of the VOA facilities system worldwide. The Congress has, over the years, approved funds for modern plants at a number of points in the system. But there are still a number of components which are both obsolete and difficult to maintain in service. There are also occasional emergency situations of component failures, storm damage, or fire. With balances from previous appropriations, we have met essential research and maintenance needs averaging about $1.2 million for the last several years. However, there have been no new funds appropriated since 1968, and only $400,000 will still be available for such needs in 1971. We have, therefore, requested an additional appropriation of $800,000. The House bill reduces this request by $200,000, and we ask that this cut be restored. Mr. Chairman, I have studied the activities of this Agency very intensively over the past 18 months. I continue to be impressed by the value and magnitude of what we must do to serve our country's interest. I believe our budget requests are justified and appropriate, even in the context of this time of stringency in the Federal budget. I hope that your committee will approve the requests now before you. Senator MCCLELLAN. Thank you very much. I do not doubt that all of this money except possibly salary increases could be expended very wisely and I am not criticizing salary increases except that I have made some observations that indicate to me that a lot of our people could work harder than they do. They could get along with fewer personnel. I have no doubt that substantially all this money could be wisely expended, but we are still under the burden of trying to hold down expenditures. We all recognize that. The House cut, percentagewise, is only about 2.5 percent of the budget. I believe that is it, is it not? Mr. SHAKESPEARE. I believe that is correct. APPLICATION OF $2.5 MILLION RESTORATION Senator MCCLELLAN. In round figures it is about 2.5 percent, which after all is a pretty small cut. All I want you to do is tell me, suppose we restore the whole amount-I don't know that can be done-and we try to reach some accommodation with the House, which would have to be done you know how our system operates-in all candor just what would you do if we just simply undertook to give you $2.5 million, half of what the House cut, give it back to you? How would you spend it? I want you to submit a table showing how you would spend it. Mr. SHAKESPEARE. I will submit that specifically, Mr. Chairman, but I would like to comment on how we would spend the substantial amount of it. Senator MCCLELLAN. We can't arrive at each little item, but maybe we can give you $2 million, $2.5 million. How would you spend it? You say in terms of priority it is most essential to restore the $1,126,000 for special international exhibitions. I support these exhibitions. Again I point out that no doubt all of them could be very wisely provided for, but over all can we wisely and prudently expend so much more than we are going to take in, in the next fiscal year? We come back to that. Cuts have to be made somewhere and everyone has to take his share of it. So I would like to have you file with the |