for 1955 are based on workload statistics maintained in fiscal year 1953 and projected to anticipated workloads in 1955.

The Office of Operating Facilities will continue to provide all administrative services, other than budget, fiscal, management, and personnel, for the Department in Washington and for several relatively small offices throughout other parts of the United States. In addition, this Office will continue to provide general administrative services to the Foreign Service overseas posts.

Many of the services provided are unique because of the Office's responsibilities in connection with the Foreign Service. Some of the unique activities are (1) the operation of a worldwide telegraphic communications system serving all Foreign

Service posts; (2) the operation of a diplomatic courier service to transmit classified material between the Department and other government agencies in the United States, and the Foreign Service; (3) the operation of a worldwide unaccompanied diplomatic pouch service for the delivery of communications which do not require the security protection provided by the courier service; (4) the provision of central translating and interpreting services for the Department and the Executive Office of the President; and (5) the formulation and implementation of a cryptographic plan for the transmission of telegraphic communications.

The estimates for this Office are based on the assumption that in fiscal year 1955 the Department as a whole will continue at substantially the same level of operation as in fiscal year 1954. The mechanization of the wire room in the Telegraph Branch together with further plans for the reduction of communications, will permit a decrease of 17 in the personnel of the Division of Communications and Records. Other cost estimates for communications costs have been reduced correspondingly. Again this year, no funds have been provided in the estimates for replacement of automobiles in the Foreign Service. In fiscal year 1956, however, we will again have to request such funds.

Division of Central Services

The Division of Central Services is responsible for procurement, storage, and issuance of administrative supplies and equipment for both the foreign and domestic operations; maintaining inventory and accountability controls for both expendable and nonexpandable property, including motor vehicles both foreign and domestic; planning and operating property utilization and conservation programs; space management services in Washington including planning and supervising moves between or within offices, providing building services, alterations and repairs; telephone service, including installations, switchboard services and directory listings; export and import freight forwarding services for the Department as well as most other departments and agencies of the Government for supplies, equipment, household and personal effects; authorizing and arranging travel for Department and Foreign Service employees, including arrangements for shipment of household and personal effects; providing graphics presentation services in the form of charts and tables, exhibits, etc.; furnishing high-speed reporters for top level conferences, special meetings, and hearings; and a number of other related services.

Division of Communications and Records

The Division of Communications and Records is responsible for (1) planning and maintaining worldwide telecommunications, courier, and pouch service, (2) planning and maintaining a worldwide records management program and maintaining the official correspondence files of the Department; (3) serving as the Washington terminal for the transmission and receipt of telegraphic and written communications between the Department and its overseas posts and analyzing and distributing communications; and (4) maintaining liaison channels between the Department and other Government agencies for the distribution of communications. Based upon present telegraph traffic trends projected for 1955, coupled with certain procedural improvements, it is estimated that it will be possible to effect a savings of five positions in the Telegraph Branch. With the reduction in the size of the Foreign Service, there will be a reduction in the total volume of written communications, which will permit a savings of seven positions in the records operation. It is further anticipated that the overall reduction in the size of the Department and the projected building consolidations will permit a reduction of five positions in the Mail and Messenger Service. Division of Publications

The Division of Publications provides printing, reproduction, distribution, and related services for the Department. Although the estimates for fiscal years 1954 and 1955 reflect a substantial decrease in personnel and funds below the 1953 level, it is planned that essential requirements will be met through further management improvement and careful screening from the standpoint of necessity and cost of all requests for printing, reproduction, and distribution services. Division of Language Services

The Division of Language Services will continue to provide translating and interpreting services for the Department and the White House. Although the estimates for fiscal year 1954 and 1955 reflect a substantial decrease in personnel and funds below the 1953 level, essential workloads will be handled by confining the use of available translating facilities to requests of the highest priority. Inter

preting requirements are expected to remain at approximately the same level as in prior years. A small staff must be maintained to meet the needs of the Secretary and other top officials in meetings with foreign diplomats who do not speak English. This staff must also provide the nucleus of language service teams for international conferences at which the United States is the host government. With due regard to security, free-lance interpreters will be obtained under contract to augment staff interpreters at such international conferences.

Division of Cryptography

The Division of Cryptography develops and administers a program for the protection of classified information during telegraphic transmission. Much information sent by telegram must be kept from potential enemies of the United States, and its protection is achieved by employing cryptographic systems and related procedures. Cryptographic systems must be designed to withstand the most careful analysis of which foreign governments are capable. The staff provided for in these estimates is the minimum which can provide the necessary protection.

Office of operating facilities—Foreign Service

These positions are necessary to provide personnel for the worldwide diplomatic courier service. Frequency of service is based on the requirements of the Foreign Service posts in consideration of available resources. It is estimated a total of 89 different courier routes will be traveled during fiscal year 1954. Because of the geographic distribution of posts served, the number of basic courier routes will remain unchanged in fiscal year 1955. It is anticipated it will be possible to effect a reduction of three courier positions by decreasing the frequency of service to certain posts in 1955. Selection of these posts will be made based on the importance of the post in world situation, geographic location, commercial airline schedules, and availability of more economical means of communicating with the post. The estimate is based upon experience in previous years of the number of couriers required to furnish the service in accordance with the follow

ing factors: (1) The number of Foreign Service posts served; (2) the frequency of service necessary for each category of post; (3) the number of different routes necessary to serve these posts; and (4) the duration of the travel on individual routes.

Included in the fiscal year 1954 estimate is $447 for termination costs resulting from reduction in force. In addition the 1954 column includes increased costs resulting from the transfer of the Western Hemisphere Regional Courier Office from Washington to Panama.

Post allowances are paid to American employees when the cost of living at a post is higher than in Washington. The estimate for fiscal year 1955 is calculated on the basis of schedules currently in effect and provides for an average net annual payment of $338 for each of the 56 couriers at posts where this allowance is authorized.

Quarters allowances are paid to American employees when Government quarters are not provided. This allowance covers actual expenditures of employees for rents and utilities within prescribed maximum rates. The estimate for fiscal year 1955 is calculated on the basis of schedules currently in effect and provides for an average net annual payment of $710 for each of the 56 couriers at posts where Government quarters are not provided.

Temporary lodging allowances are paid to American employees upon arrival at a post for the cost of temporary quarters for a maximum of 3 months. It is not paid concurrently with a quarters allowance. The amount paid cannot exceed the aggregate amount of per diem for an employee and his family if they were in travel status. It is anticipated that 23 couriers will be transferred to posts during fiscal year 1955 and of this number it is estimated that 16 will draw this type of allowance at an average payment of $365.

Transfer allowances are paid to American employees to compensate for extraordinary expenses incurred in transferring from one climatic zone to another. It is paid in lump sum after arrival at a new post. The fiscal year 1955 estimate provides for an average payment of $150 for each of the 23 couriers who are expected to be in a transfer status.

This estimate is for costs incurred in communication services between the Department and the field, including costs for (1) the transmission of telegraph traffic to the field, incoming collect messages, and certain leased facilities; (2) the operation of a worldwide courier service; (3) the shipment of diplomatic pouch material by air; and (4) the purchase of diplomatic pouches, pouch forms, pouch seals, and the repair of diplomatic pouches.

Courier travel ($677,000). The courier service provides safe-hand transmission of classified material from the Department to the field, the field to the Department,

and between Foreign Service posts. It is anticipated that in fiscal year 1955 there will be further reductions in the frequency of courier service which will result in a saving of $36,000 in courier travel. During fiscal year 1955 it is estimated that couriers will travel 7,500,000 miles on commercial carriers and military aircraft as compared with 9,500,000 miles during fiscal year 1953 and an estimated 7,900,000 miles during fiscal year 1954.

Telegraph ($340,000).—Telegrams are used only when the time element precludes the use of cheaper means of communication. In fiscal year 1953, 30,500,000 words and groups were sent over military, commerical, and leased facilities at a cost of $410,848. Effective July 1, 1953, there was a 5-percent increase in the cost of our leased facilities and terminal equipment. Current traffic trends indicate a total of 25 million words and groups will be processed in fiscal year 1954 at a cost of $350,194. It is estimated that there will be a further reduction in the transmission of words and groups during fiscal year 1955 amounting to $10,194. Unaccompanied pouch ($250,000).—The unaccompanied pouch-service is used for the transmission of material by air and surface facilities whenever security permits and economy in communications cost will result. In fiscal year 1953, 205,000 pounds were transported by air at an average cost of $1.62 per pound. Current weight statistics indicate that in fiscal year 1954 a total of 140,000 pounds will be dispatched by air at an average cost of $1.80 per pound. In fiscal year 1955 there will be a reduction of approximately 46,000 pounds to be transported by air, but the Post Office Department will have to be reimbursed approximately $80,000 for material transported by surface facilities. Until this year surface pouch material was transported without charge to the Department. Although we are absorbing the cost for the transportation of surface material there will still be reduction of $9,800 from fiscal year 1954 costs.

Purchase of pouch forms ($1,000).—This estimate is for the purchase of printed forms for use in the diplomatic mail and courier service.

Repair of diplomatic pouches ($1,200).—This estimate is for the repair of damaged diplomatic pouches and is based on fiscal year 1953 experience.

Purchase of diplomatic pouches and pouch seals ($3,000). This estimate if for purchase of pouches and pouch seals for use in the diplomatic mail and courier service. It is based on fiscal year 1953 unit costs.

Taxes and assessments ($840).-The estimate of $840 is for the Department's (employer's) contribution with respect to wages of couriers subject to the Federal Insurance Contributions Act.

Other expenses

Replacement of passenger motor vehicles:

Actual, 1953.

Estimate, 1954.

Estimate, 1955

$62, 149

In line with the President's economy program the Department is making a reduction in the number of passenger automobiles operated overseas. The proceeds from sales of cars to be disposed of will be used to purchase the most urgently needed replacements for the reduced fleet. Accordingly, no funds are being requested for this item in fiscal year 1955.

Cryptographic supplies and equipment:

Actual, 1953.

Estimate, 1954_
Estimate, 1955.

$117, 277 95, 000 95,000

This estimate provides for the normal replacement elements needed to keep cipher systems secure, and for materials which are used in the production of various cryptographic items. It also provides replacement parts for cryptographic equipment and for new equipment as required. The amount requested for this purpose has been carefully computed in the light of highly technical considerations and the general level of operations contemplated for the Depart

This estimate includes domestic and overseas shipment charges on cryptographic equipment; packing, drayage, temporary storage, and other related domestie costs incurred by the United States dispatch agent.