SURPLUS PROPERTY DISPOSAL PROGRAM

This is the second special program that we have. The estimate for 1948 for "Salaries and expenses, surplus property Disposal" is $2,650,000, a reduction of $3,350,000 below the appropriation of $6,000,000 for 1947. This reduction has been treated as a nonrecurring item and has been deducted from the base and, hence, is not reflected in comparisons. Unlike our other programs, each of which is financed from a number of appropriations, this program and the appropriation from which it is financed coincide. This appropriation is carried under the budget category for Department service. The estimate of $2,650,000, for 1948, was submitted to Congress in two parts, namely, $1,200,000 in the printed budget and $1,450,000 in House Document No. 158.

The estimate, for 1948, contemplates 606 employees as compared with 1,953, for 1947, a reduction of 1,347. Substantial decreases are also estimated under travel, communication service, and other contractual services.

INFORMATION AND CULTURAL PROGRAM

The third specialized program is the information and cultural program. The estimates for 1948 for the information and cultural program compared with appropriations for 1947 by budget category are as follows:

Mr. STEFAN. Are you treating Cooperation with the American Republics with OIC?

Mr. KURTH. Yes, we have grouped them.

Mr. STEFAN. They are merely under the same administration?

Mr. KURTH. That is right. They are under the same administration. We wanted to show you the total cost of the information and cultural program in one place.

Mr. STEFAN. And the total cost is what?

Mr. KURTH. $37,201,220.

DEPARTMENT SERVICE

The increase for the Department Service consists of the following:

The increase for the Foreign Service is required for the following:

Increase required under Public Law 724 (Foreign Service

Act of 1946)__

$400, 375

Salaries for 94 additional employees.

$722, 808

Deduct cost of Public Law 724, included above... 360, 505

Cooperation with the American Republics which is a part of the information and cultural program.

The increase of $549,997 is made up of increases for three general purposes, as follows:

I would like to state in conclusion, Mr. Chairman, that these estimates as submitted we believe are the minimum to carry out the programs of work outlined. We want to give the committee full information about each estimate in order that our needs may be fully understood and for that reason we have available a number of witnesses to appear before you to supply such information as you may require.

I appreciate the opportunity you have given me to submit this summary of our budget and we will try to be of every possible assistance to the committee so that they may understand not only the figures but the reasons underlying our request.

DISCUSSION OF STRUCTURE OF THE BUDGET FOR THE STATE DEPARTMENT

Mr. STEFAN. Mr. Kurth, we thank you very much for explaining these various divisions of the State Department. The committee is well aware of your ability to tell us in detail the real facts especially having to do with the budget, as we know of your efficiency and experience in the Department, and your frequent appearances before the committee.

I wonder if the Department has ever given any study to programing this under a regular program basis, so the committee could understand the picture just a little bit more clearly.

Mr. KURTH. I think, Mr. Chairman, your point is very well taken. The present appropriation structure dates back many years, of course. The State Department is the oldest department of the Federal Government. The appropriation structure is really on a basis of objects of expenditure; that is, salaries and expenses, travel, and so forth; whereas it might be modernized so that the appropriations would coincide with the programs of work. At the present time the programs of work cut across all appropriations. Certainly it is confusing to us to handle it that way and I know it must be confusing

to you.

Mr. STEFAN. If it is confusing to you, who are an expert budget officer, how confusing it must be to those of us who have but little opportunity to go into these items in detail, as we should, in order that we may ourselves know what it is all about, so that we may present the matter intelligently to the full committee and then to the membership on the floor of the House when we bring the bill up for final passage.

You say the State Department is making a study of this?

Mr. KURTH. Yes. We have a continuing project which involves the elimination of as much of the appropriation language as possible and the consolidation of appropriations. You will notice that we have taken some steps this year to consolidate a number of the appropriations. Incidentally I might say that that was done at the instance of the committee last year. One of the members of the committee suggested that we consolidate all of the departmental items into one appropriation and all of the Foreign Service items into one appropriation, which was done. Our next step should be logically to change the appropriation structure to show programs of work. We believe that when we come before you next year we will have done something in that direction.

Mr. STEFAN. Gentlemen, Mr. Kurth, the budget officer, has explained briefly each of these sections and we will now turn to another matter which is of interest to the committee, and the discussion of which will be off the record.

EDITOR'S NOTE.-The following schedules indicate the portion of the State Department programs financed from "Salaries and expenses, Department of State" and therefore constitute breakdowns of the above table.

APPROPRIATION REQUIREMENTS, 1947, AND ESTIMATES, 1948 Mr. STEFAN. We will continue hearings on the appropriations for 1948 and turn to Salaries and Expenses, Department of State. It is noted that the adjusted appropriation requirements for the fiscal year 1947 are $36,876,049 and the estimates for 1948 are $47,046,000, an increase of $10,169.951.

SUMMARY OF REQUIREMENTS FOR PROGRAMS

The summary of requirements for the programs falling under this appropriation item will be inserted in the record at this point. (The summary is as follows:)

STATEMENT OF PERSONAL SERVICES FOR REGULAR ACTIVITIES

Mr. STEFAN. If the members of the committee will turn to page 33 of the justifications, they will find a break-down of the organizational units. That break-down I believe should be put in the record at this point; that will include pages 33 to 38, inclusive. (The matter referred to is as follows:)