1 Lapse adjustment on increase for training.

2 Gross decreases of $26,515 offset by increases of $9,000 for training and $75 for security.
Increases of $47,500 for printing Foreign Relations Volumes; $42,008 for other con-
tractual services for language instructors; and $10,000 for training equipment.
4 Portion of Foreign Relations Volumes in base ($112,000 less $47,500 increase), $64,500
and 5 percent of printing, $24,391.

Training instructors, $42,008; training equipment, $10,000; printing Foreign Relations Volumes, $112,000; 5 percent reduction in printing by Government Printing Office, $24,391.

Increase for training.

7 Consists of training $565,521 (total increase of $635,521 less $70,000 left in); travel
$97,431 ($75 of the cut applied to domestic travel); transportation of things, $146,103.
Includes comparative transfers of $345,000 from "International information and edu-
cational activities, State," for policy guidance.

The reduction of $2,245,000 on an appropriation basis is comprised of the nonrecur-
ring sum of $3,051,884 offset by the increase of $806,884 over base. The reduction of
$3,100,000 shown in the House report is comprised of the nonrecurring item of $3,051,884
plus the reduction of $393,116 minus the comparative transfer of $345,000 from USIA
not carried in House report figure.

45431-54-pt. 1-48

1954 act (including $15,600,000 reappropriated from prior year balances and $345,000 comparative transfer from USIA for policy guidance)...

House allowance (a reduction of $1,200,000 in the estimate).

65, 945, 000

62, 500, 000

The Department requests the following amendments: (1) Page 4, line 8, strike out "$62,500,000" and insert "$63,700,000, the estimate, or an increase of $1,200,000".

(2) Page 4, line 20, strike out the word: "five" and insert "fifteen".

EXTRACT FROM HOUSE REPORT (P. 2)

"There is included in the bill $62,500,000 for this item a reduction of $1,200,000 in the budget estimate and $3,100,000 below the amount appropriated for the current fiscal year. However, when the comparative transfers, reduction in force costs, and other nonrecurring items are taken into consideration the amount recommended for fiscal year 1955 is approximately $393,000 less than the amount available for the present fiscal year.

"The committee has made a 5 percent reduction in the amount requested for printing and binding based upon an announcement of the Government Printing Office that effective February 1, 1954, there would be a 5 percent reduction in its charges to Government agencies.

"No funds are recommended for either the compilation or printing of the foreign relations volumes. This represents a reduction of $112,000 in printing and reproduction and $115,280 in personnel costs.

"The total requested for travel was $5,097,506. The committee recognizes that a large portion of this is for the home leave and transfer program which is an important feature of the Foreign Service operations. The committee feels that further economies can be made in this item and that under no circumstances should it exceed $5 million during fiscal year 1955.

"For 'transportation of things' the committee recommends a maximum of $2,300,000 which is a reduction of $146,103 below the budget estimate. The Department reported that a substantial reduction had been made in the allowance on the weight of personal effects which Foreign Service personnel can ship at Government expense. Some of the allowances still appear overly generous and in need of further reduction. In those instances where furnished living quarters are provided to the employee, the allowance on personal effects should be correspondingly reduced.

"It is recommended that a thorough study be made of the 'economic offices' to determine the necessity of each and to make certain that no duplication exists with the functions of the Department of Commerce or other Government agencies. "The committee is concerned with the deplorable condition reported to the committee pertaining to language deficiencies of the employees in certain overseas posts and expects the Department to take the necessary steps to correct this situation immediately. The request for 1955 for the training program is $1,500,663 which is an increase of $785,824 over current year funds. The committee questions the need for such a large increase and feels that the necessary training can be accomplished for considerable less than the requested amount.

"The Department is requested to examine very carefully requests for reports of all types from the Foreign Service, originating not only in the Department of State, but in other departments of Government. Members of this committee have been advised by responsible people serving overseas that many of the requests for reports and information are unnecessary, wasteful, and unproductive. "The committee recommends that not less than $8 million of the total amount in the bill for 'Salaries and expenses' shall, if possible, be used to purchase foreign currencies or credits owed to or owned by the Treasury of the United States.”