having been included in the annual appropriation. The difficulty with this procedure is that due to the time sequence required for presenting supplemental estimates, there can be no assurance that funds will be available when required. The Department cannot use the funds provided for regular conference activities for these meetings as the accelerated rate of expenditure in anticipation of a supplemental appropriation is contrary to the provisions of the antideficiency law. Alternatively, in most instances, there is not sufficient time prior to the convening of the meeting to obtain a supplemental appropriation for the specific purpose.

The request of $1,500,000 for the 1956 fiscal year will provide $1 million for the "regular" activities, the same amount as provided in the annual appropriations for the 1954 and 1955 fiscal years. The remaining $500,000 is a "contingency" amount which will be available to the Secretary of State to meet the expenses of United States participation in those "unforeseen" meetings which may be scheduled. Included in this category are meetings relating to the peaceful uses of atomic energy, meetings of the Manila Pact Council, further disarmament discussions and four-power discussions. There can be no assurance that all of these will be held during the 1956 fiscal year but at the same time it is entirely possible, even probable, that other conferences of equal or comparable importance may be convened during the next 18 months.

The 1956 request of $1,500,000 is the amount the Congress appropriated for the fiscal year 1953. The amount requested will again provide the Department a "contingency" appropriation so that it can finance United States representation at the international conference table without recourse to annual supplemental requests. It was for this reason that the Congress saw fit to establish the "International contingencies" appropriation in 1945.

The peaceful settlement of international issues continues to be one of the major objectives of United States foreign policy. Multilateral negotiations are an essential medium in the attainment of this objective. It is extremely important that this Government be in a position financially to undertake these negotiations promptly when it is in our national interest to do so.

NEED FOR APPROPRIATION

Mr. WILBER. Mr. Wainhouse has a word on this item. Mr. WAINHOUSE. The House report, Mr. Chairman, does not indicate the reasons for the disallowance of the sum which we ask.

The recent history of this appropriation for international contingencies indicates that $1 million will normally cover the costs of the United States participation in regularly scheduled meetings of international organizations or periodic meetings in which this Government has a bona fide interest. The $500,000 contingency fund which we are requesting is really to meet the cost of meetings which are now scheduled such as the Conference on Peaceful Uses for Atomic Energy and other meetings which we now cannot predict but are sure will eventuate in the next fiscal year.

Senator KILGORE. Including a conference with Chou en-lai, and other conferences.

Mr. WAINHOUSE. Well, quite possibly, sir.

Senator KILGORE. In other words, in a period which is full of continuing crises, you feel that we need contingent funds for these conferences, is that right?

Mr. WAINHOUSE. That is right-and last year we found ourselves without funds and had to turn to the Congress for a supplemental and, if this cut stays, we shall very likely have to return to the Congress this forthcoming year to meet the necessary expenses for these contingencies.

Senator KILGORE. I think we have sat in supplemental hearings for $100,000.

Mr. WILBER. That is correct, Mr. Chairman.

Senator KILGORE. Frankly, I do not like supplementals. I think it is rather misleading to the American people. I much prefer to have really an honest budget unless some unforeseen thing appears. That is my feeling in the matter.

This fund is simply to take care of such contingencies as may arise in the way of international conferences and matters of that kind which will be cleared, as all other funds are cleared, and if not expended, will be repaid to the Treasury, is that right?

Mr. WAINHOUSE. Yes, sir.

CURRENT YEAR OBLIGATIONS

Senator KILGORE. Would you, Mr. Wilber, file in the record the obligations of the current year as of, say, April 1, that you now have? Mr. WILBER. I will be glad to, Mr. Chairman.

(The information referred to follows:)

Obligations as of Apr. 1, 1955--

$851, 899

Additional commitments for conferences scheduled to convene between
Apr. 1 and June 30, 1955...

Available for presently unscheduled conferences which may be convened between Apr. 1 and June 30, 1955_.

228, 101

20, 000

Total appropriation----

1, 100, 000

Mr. WILBER. I know that we have a balance of only $20,000 now, which is uncommitted, for probable conferences at this time. Senator KILGORE. That is, out of the last supplemental?

Mr. WILLER. Yes, sir.

Senator KILGORE. And we still have May and June to go.

Mr. WILBER. Yes, sir.

Senator KILGORE. I am glad to get that in the record. Will you file a statement?

Mr. WILBER. I will be glad to.

PREPARED STATEMENT

Mr. WAINHOUSE. May I submit for the record my prepared statement on this item?

Senator KILGORE. The statement may be inserted in the record. (The statement referred to follows:)

STATEMENT OF DAVID W. WAIN HOUSE, DEPUTY ASSISTANT SECRETARY FOR INTERNATIONAL ORGANIZATION AFFAIRS ON INTERNATIONAL CONTINGENCIES The "International contingencies" appropriation, for which $1,500,000 is being requested, provides the necessary funds for participation by this Government in various official international conferences and other related activities.

The recent history of this appropriation indicates that $1 million will normally cover the costs of United States participation in regularly scheduled meetings of international organizations or periodic meetings in which this Government has bonafide interest. The $500,000 for contingencies would provide for such activities as the Conference on the Peaceful Uses of Atomic Energy now scheduled for Geneva in August and any conferences which may be convened on the chiefs of state or foreign ministers level.

The $1,075,000 approved by the House will provide only $75,000 of the $500,000 which was requested for contingencies. It is doubtful that the $75,000 will be adequate even to meet the costs of United States participation in the Conference on the Peaceful Uses of Atomic Energy. No funds are provided for any ministerial level conferences which may be convened during the coming year. In the light of the present international situation, it is the Department's view that it is unrealistic to assume that such conferences will not be necessary.

59824-55-35

It will be recalled that during the past year there have been the Berlin and Geneva conferences, the nine-power meeting in London, the Manila Pact Council sessions at Manila and Bangkok, and the current discussions on disarmament in London. There is every likelihood that before the end of this fiscal year there will be a four-power meeting, preceded by the preliminary consultations now in progress among the Western Powers.

To finance such unscheduled meetings, both in fiscal year 1954 and this year, we had to obtain supplemental funds. The timing of developments in the conduct of our foreign affairs often makes recourse to a supplemental appropriation request very difficult. A major purpose in the initial establishment of this appropriation, as its very title indicates, was to allow a reasonable latitude for these contingencies.

I, of course, can give no assurance that $500,000 is the contingency amount which wll be required. It may be too much; it may not be enough. This will, be determined by international developments. I feel, however, that this amount which incidentally is the same as the amouut appropriated for 1953, is a realistic figure in the light of world conditions today. Further, if these contingencies do not develop, any funds not required of course will be returned to the Treasury.

INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES

AND MEXICO

STATEMENTS OF LELAND H. HEWITT, UNITED STATES COMMISSIONER, INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND MEXICO, ACCOMPANIED BY COLLINS CLAYTON, ACCOUNTANT; AND EDWARD B. WILBER, BUDGET OFFICER, DEPARTMENT OF STATE

RESTORATION REQUESTED

Mr. WILBER. The next appropriation is "International Boundary and Water Commission, United States and Mexico."

For the "Operation and maintenance" item the House allowed $1,200,000 as compared with $1,474,900 requested. Therefore, we are urging that a restoration be made of the $274,900 which was cut by the House.

We have Colonel Hewitt here, Mr. Chairman, to testify on this item. I would like to insert in the record the justification for the restoration.

AMENDMENTS AND JUSTIFICATION

Senator KILGORE. The amendments requested for these two items, together with the justification data filed in support therewith, will be made a part of the record at this point.

(The justification referred to follows:)

INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND

AMENDMENTS REQUESTED

(1) Page 9, line 12, strike out "$1,200,000" and insert "$1,474,900", the estimate, or an increase of $274,900 for "Operation and maintenance.' (2) Page 9, after line 16, insert:

"RIO GRANDE EMERGENCY FLOOD PROTECTION

"For emergency flood control work, including protection, reconstruction, and repair of all structures under the jurisdiction of the International Boundary and Water Commission, United States and Mexico, threatened or damaged by floodwaters of the Rio Grande, which have heretofore been authorized and erected under the provisions of treaties between the United States and Mexico, or in pursuance of Federal laws authorizing improvements on the Rio Grande, $20,000 to remain available until expended."

EXTRACT FROM HOUSE REPORT (P. 5)

"The bill includes $1,635,000 for this activity, a reduction of $309,900 in the amount of the budget estimates and a decrease of $115,000 below the amount appropriated for the current fiscal year. Of the amount recommended, $435,000 is for 'Salaries and expenses' and $1,200,000 is for 'Operation and maintenance.' The amount allowed for 'Salaries and expenses' is the same as for the current fiscal year when the transfer of three employees to another account is taken into consideration. The committee sees no necessity for the requested position of budget officer for this commission, especially in view of the able presentation before the committee by the present personnel.

"The amount allowed for 'Operation and maintenance' is $200,000 over the present year's appropriation and is $274,900 below the amount of the budget estimate.

"The request for $20,000 for the item 'Rio Grande emergency flood protection' has been deleted, inasmuch as there was an unobligated balance of $123,279 as of December 31, 1954."

Salaries and expenses

JUSTIFICATION

The Department does not wish to appeal the House reduction of the item of $15,000 in view of the favorable comment of the House report as to the adequacy of its budget presentation.

The amounts approved by the House committee will not permit carrying out the carefully developed program designed to accomplish the deferred maintenance work and systematic replacement of the obsolete heavy duty maintenance equipment required to achieve maximum economy in the operation and maintenance of the projects at their proper operating level.

Rio Grande emergency flood protection

This appropriation is to provide funds for use in the flood emergencies affecting flood-control works under the jurisdiction of the United States section of the Commission wherein the Federal Government has invested $57,572,109. These works protect some of the most highly developed irrigated areas in the United States having an estimated value aggregating $1 billion. No appropriation has been received for the funds since fiscal year 1952; of a total available of $209,787 in fiscal year 1952, only $121,112 are remaining in the account as of March 31, 1955. Further reductions in this fund increase the probability that in the event of a serious disaster the section would be compelled to face a deficiency situation. Restoration of this reduction is respectfully requested.

SALARIES AND EXPENSES, INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES AND MEXICO

The "Salaries and expenses" appropriation finances entirely and only regular boundary and water activities of the United States Section.

General administration, comprising the activities essential to fulfillment of the basic responsibilities of the section, and including (a) administration on behalf of the United States of the applicable treaties and agreements in force, in accordance with acts of the Congress governing the functioning of the section; and (b) policy formulation and management of the United States section.

General engineering provides for (a) technical engineering guidance and supervision on behalf of the United States of accounting of national ownership of boundary waters, and of planning, construction, operation and maintenance of international projects; and (b) general engineering studies relating to international problems within the purview of the Commission which are either of a continuing nature or have not developed sufficiently to warrant the formulation of a specific project.

Project investigations, including preliminary engineering studies and examinations made in pursuance of applicable treaties and agreements in force, which are aimed at the development of specific projects for the solution of international problems.