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Senator DIRKSEN. I have some questions, Mr. Chairman. Dr. Conant, how much restriction is there on the free flow of people and trade between the various British, French and American zones? Dr. CONANT. Essentially, none. The zones have all disappeared and there is no sign up when you go from one zone to the other.

Senator DIRKSEN. So that the boundaries have been pretty well expunged now?

Dr. CONANT. Yes, so that you can only find them on a map.

VALUE OF DEUTSCHEMARK

Senator DIRKSEN. What is the present value of the deutschemark? Dr. CONANT. 4.2, to the dollar.

Senator DIRKSEN. Has it maintained a rather stable value?

Dr. CONANT. Yes, very stable ever since the currency reform. Senator DIRKSEN. What do you foresee for convertibility over there?

Dr. CONANT. You mean when it will come about?

Senator DIRKSEN. Yes.

Dr. CONANT. I am afraid that is a highly technical banking subject that I cannot give an estimate on. Of course, it is discussed a great deal. The Ministry of Economics, Professor Erhardt, as you know, is a great believer in it, and there are many technical problems involved between the different nations.

I do not think it is in the immediate future, although it is a goal that I think he for one, and I believe we on our side, would like

to reach.

STATUS OF UNITED STATES COURTS IN GERMANY

Senator DIRKSEN. Do the judges in courts retained over there come under your jurisdiction?

Dr. CONANT. Yes, but they have practically been all given up. This was part of the transitional year and I presented this budget a year ago and I said we were going to assume that during the year we became an Embassy, and we are going right ahead to give up our courts anyway. They have practically disappeared.

Senator DIRKSEN. If the appeals are not exhausted by that time, what happens to them?

Dr. CONANT. Well, I think there that is just what we have left, one appeal, I think, one appeal court to take care of them. But we have agreed to transfer a great many jurisdictions to German courts.

TROOPS

Senator DIRKSEN. This is a question you may not be able to answer, and maybe you should not, but how many troops do we have over there? Is that a classified question?

Dr. CONANT. I do not think that is classified. I think that is on the record. The figure I always use is 250,000.

Senator DIRKSEN. That is the complete complement of men and officers?

Dr. CONANT. I would think so. It is the figure that is commonly given. I do not know that I can claim its accuracy within a few percent.

COMMENTS ON EMERGENCY REFUGEE PROGRAM

Senator DIRKSEN. Getting back for a moment to the question. raised in Senator Ellender's memorandum about refugees, how much identity do you have with that emergency refugee program? You will recall we gave them a quota of 75,000.

Dr. CONANT. That comes under my general supervision, but we have a special setup for it. I haven't a direct answer. Mr. L'Heureux over here has the particular responsibility for that program. Senator DIRKSEN. Doubtless, you are aware of the fact there has been a great deal of complaint that either because of the restrictions we wrote into the act, or because of the administration, that the number of those who have taken advantage or could take advantage of the program has been just a trickle compared to what we expected. Can you make some comment on it from that end.

Dr. CONANT. I will hazard a comment and then ask Mr. L'Heureux, who has had more experience with it than I, either to correct me or to amplify my remarks.

I would say that Germany was not a very fair test of the program anyway, because the German economy has been so successful and people are doing so well in Germany that people do not want to leave the Federal Republic. The forces urging people to migrate are not there. Do you want to add to that, Mr. L'Heureux?

ISSUANCE OF VISAS

Senator DIRKSEN. Before you answer that, Mr. L'Heureux, let me just follow up with one other question: Obviously, the experience of your consular officers in the issuance of visas, the number of applicants would have to be the determining factor finally. Not that they come in regularly, but they would have to wash through the consular officers.

Mr. L'HEUREUX. It is not so much the number of applicants as the number of assurances that are obtainable from the United States.

FACTORS RETARDING PROCUREMENT OF ASSURANCES

Now, the restrictions in the law may have retarded the procurement of assurances. In other words, if they have to guarantee housing and a position and keep that open until the applicant comes, it is an indeterminate period of time as to when they will come, whether it is 6 months or a year. I think people have been reluctant to give

assurances.

But so far as the security features of the law, they have not impeded the issuance of visas. There are many aliens who were desirous of coming to the United States 2 years ago who are no longer interrested now. They feel that the economy is so much better and with the buildup of the German Army there will be ample available employ

ment, and their relatives are there, their ties are there and they would rather not leave.

EXPORT-IMPORT AGENCY

Senator DIRKSEN. I notice in your general statement that you mention the Export-Import Agency. Does it still exist?

Dr. CONANT. I think it is in the process of liquidation and it has been in the process of liquidation for some time. It is doing nothing in the sense of a positive thing. It is trying to get rid of itself.

Senator DIRKSEN. It is not exercising control, actually, over exports and imports at the present time?

Dr. CONANT. No.

Mr. HEFNER. There are approximately 20 cases left to resolve. Senator DIRKSEN. So the requirement for securing a license for the import or export of manufactured goods and processed goods is all out of the window now?

Dr. CONANT. It is all gone.

Senator DIRKSEN. And is there anything in your budget for continuation of the Joint Export-Import Agency?

Dr. CONANT. No.

ADVANCED PLANNING GROUP

Senator DIRKSEN. I notice in your general statement, also, that you say this on page 6:

The request does not include funds for the activities of (1) the Advanced Planning Group.

Could you tell us a little more about that?

Dr. CONANT. The Advance Planning Group is a name we have given to what might be called a preliminary MAAG team. You know the Military Assistance Group which is set up in most countries. We could not set it up in Germany now because Germany is still an occupied country, and the treaties have not yet been ratified.

But at the same time, in order to save time and get ahead with the planning of the expansion of their industries and the building of their armed forces, we have had a group of military people there in Germany for some time, for some months. They are working closely with the Ministry, which is concerned with defense or will be concerned with defense

This group will be a MAAG team as soon as the treaties are passed. Senator DIRKSEN. Is this a military group?

Dr. CONANT. Yes; so that the defense establishment takes care of that.

Senator DIRKSEN. What has been their attitude toward a planning group over there?

Dr. CONANT. They are enthusiastic for it and they are delighted and we have had the fullest cooperation.

GOA PERSONNEL STRENGTH

Senator DIRKSEN. Now, I do not know whether you can answer this or not, but in addition to the one thousand one hundred and ninety-odd that you have over there

Dr. CONANT. You mean the personnel?

Senator DIRKSEN. Yes; the number of Americans in Germany. You say it is 1,172 altogether, domestic and foreign, local and United States.

Dr. CONANT. That is quite right.

FOA PERSONNEL IN OCCUPIED AREA

Senator DIRKSEN. Can you tell us approximately what FOA has on duty over there now?

Dr. CONANT. I think Mr. Hefner may have those figures. In the way of American staff, I do not know whether we have their full staff picture or not here.

Mr. HEFNER. At the present time in headquarters there are 11 professionals, 6 clerical, and 29 local staff on FOA administrative funds. There is an escapee program which has a country unit of 9 professionals, 4 clericals, and 17 locals, a regional group with approximately the same number of staff. There is the FOA technical exchange program which has a total of 6 professionals, 1 clerical, and 10 locals.

Senator DIRKSEN. You say "headquarters." Now, is there a field staff?

Mr. HEFNER. In Berlin they have about 2 or 3 professionals in Berlin; and we do not have the exact figures.

Senator DIRKSEN. That will be roughly about 100 administrative personnel that FOA will have on duty over there.

PERSONNEL STRENGTH OF ADVANCE PLANNING GROUP

How large, doctor, will this Advance Planning Group be? Have you any idea at the moment?

Dr. CONANT. At the moment, as I recall it, it is something like 30, but it might go up to 100 gradually. I think the MAAG teams were as big as that when they became official.

Mr. L'HEUREUX. It is roughly 100. They are planning on more there.

PERSONNEL STRENGTH OF USIA

Senator DIRKSEN. Now, I see your statement also indicates that while they are under your direction, USIA is exclusive of your office? Dr. CONANT. Yes.

Senator DIRKSEN. What have they over there?

Dr. CONANT. They have 136 United States personnel and 1,600 locals.

Senator DIRKSEN. They are still running their radio and newspapers?

IMPORTANCE OF BERLIN RADIO STATION

Dr. CONANT. Under my jurisdiction they are running only the radio station in Berlin, and I have supervision although I do not have the budget. That is a very important station in Berlin, which, as you know, is one of the best ways we can keep the morale of the inhabitants of the Russian Zone high.

I would like to point out that I was in Berlin a short time ago, and I told the leading political people there of the different parties that we were going to continue the station. That I did on authority

from Washington because there had been rumors that we were going to give it up. They said that was "the best news that we have heard." This is a very important thing from our point of view.

Senator KILGORE. You would say that station is effective?

Dr. CONANT. Very effective, and I would be prepared to argue that at great length, although it is not in this budget.

Senator CHAVEZ. You cannot tell us anything about the one at Tangiers?

Dr. CONANT. No, I am sorry. It is the only one under my control, the one in Berlin.

NEWSPAPER PUBLICATIONS DISCONTINUED

Senator KILGORE. How about the newspapers?

Dr. CONANT. We gave up the big newspaper which was published in Frankfort a year ago last fall. We continued the edition in Berlin on a temporary basis, and we gave that up on February 1 of this year. So we are publishing no papers.

Senator KILGORE. What was the reason for that?

Dr. CONANT. We gave up the one in Frankfort for two reasons, one because it cost a lot of money, and secondly, because we then thought that the occupation was coming to an end very shortly, and we did not believe that whether we had the money or not we ought to run an American newspaper in an indepdentent country.

Senator KILGORE. Well, can I draw from that also that you felt that the German press itself was presenting a fair picture?

Dr. CONANT. Yes, sufficiently so. In Berlin we gave it up partly on economy and again because we did not want to be in the position of even in Berlin where we shall be in occupation, running an American newspaper indefinitely.

Senator KILGORE. Is there anything further?

AGRICULTURAL ATTACHÉS

Senator DIRKSEN. Now, do you have some agricultural attachés attached to your headquarters, Dr. Conant?

Dr. CONANT. Yes, and I am not sure whether they are carried on this budget or a separate budget. I will have to ask Mr. Hefner.

Senator KILGORE. In your statement you say that you have a number of people attached there, the advance planning group and the Agriculture group, and the Foreign Operations Administration, the Treasury Department, and I do not believe they are on your budget. Mr. HEFNER. No.

Senator KILGORE. They are paid for by the respective departments and agencies from which they come?

Mr. HEFNER. In 1956, the Agriculture attachés will be paid for out of the Agriculture appropriation.

Senator DIRKSEN. How many people of that kind do you have?
Mr. HEFNER. Two professionals and two clerical.

Senator DIRKSEN. Is that the whole size of the staff?
Mr. HEFNER. That is the Agriculture staff.

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