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SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS

JOHN L. MCCLELLAN, Arkansas, Chairman ALLEN J. ELLENDER, Louisiana

MARGARET CHASE SMITH, Maine JOHN O. PASTORE, Rhode Island

ROMAN L. HRUSKA, Nebraska MIKE MANSFIELD, Montana

CLIFFORD P. CASE, New Jersey RICHARD B. RUSSELL, Georgia

MILTON R, YOUNG, North Dakota Chairman, ex officio

Ex officio

Ex OFFICIO MEMBERS FROM THE COMMITTEE ON FOREIGN RELATIONS FOR

CONSIDERATION OF DIPLOMATIC AND CONSULAR APPROPRIATIONS J. W. FULBRIGHT, Arkansas

GEORGE D. AIKEN, Vermont JOHN SPARKMAN, Alabama

HAROLD E. MERRICK, Clerk to the Subcommittee A88istants: JOSEPH T. MCDONNELL, PAUL J. COTTER, and WILLIAM J. KENNEDY, Jr.

(II)

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DEPARTMENTS OF STATE, JUSTICE, AND COMMERCE,

THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1971

THURSDAY, MAY 28, 1970

U.S. SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D.C. The subcommittee met at 10:15 a.m., in room S-128, the Capitol, Hon. John L. McClellan (chairman) presiding.

Present: Senators McClellan, Ellender, and Smith.

U.S. INFORMATION AGENCY

SALARIES AND EXPENSES

SALARIES AND EXPENSES (SPECIAL FOREIGN CURRENCY PROGRAM)

SPECIAL INTERNATIONAL EXHIBITIONS

SPECIAL INTERNATIONAL EXHIBITIONS (SPECIAL FOREIGN CURRENCY

PROGRAM)

ACQUISITION AND CONSTRUCTION OF RADIO FACILITIES

STATEMENT OF FRANK SHAKESPEARE, DIRECTOR
ACCOMPANIED BY:

HENRY LOOMIS, DEPUTY DIRECTOR
BEN POSNER, ASSISTANT DIRECTOR (ADMINISTRATION)
MRS. NANCY G. STEPHENS, AGENCY BUDGET OFFICER
PAUL E. PAULY, DIRECTOR, OFFICE OF INTERNATIONAL

TRADE PROMOTIONS, BUREAU OF INTERNATIONAL COM

MERCE, DEPARTMENT OF COMMERCE
DONALD AVERY, CHIEF, INTERNATIONAL EXHIBITS DIVI-

SION, BUREAU OF INTERNATIONAL LABOR AFFAIRS, DE-
PARTMENT OF LABOR

BUDGET REQUEST AND HOUSE ALLOWANCE

Senator McCLELLAN. This morning we will begin consideration of the 1971 funds requirements for the U.S. Information Agency. The total budget request for the three appropriation items was $187,888,000. The House allowed $182,865,000, a reduction of $5,023,000.

APPEAL LETTER AND SUPPORTING JUSTIFICATION

By letter, dated May 19, 1970, request is made for restoration of $4,193,000. This sum includes the following items: $2,867,000 for salaries and expenses; $1,126,000 for special international exhibitions; $200,000 for acquisition and construction of radio facilities.

The appeal letter and supporting justifications and amendments requested to the House bill will be placed in the record.

(The letter and justification follows:)

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H. R. 17575 allows a total of $182,865,000 for operations of the U. S. Information Agency for fiscal year 1971. This total is $5,023,000 less than our amended request for $187,888,000. The amounts for 1970, including supplemental pay funds approved by the House, total $181,216,000. I am requesting the Senate to restore $4,193,000 of the amount cut by the House: the entire $2,867,000 cut from the Salaries and Expenses appropriation; the $200,000 cut from the $800,000 requested for Acquisition and Construction of Radio Facilities; and $1,126,000 of the $1,956,000 cut from the request for Special International Exhibitions.

Our request for the Salaries and Expenses appropriation for 1971 to tals $168.3 million, and represents a net increase of $667,000 over the comparable amount for 1970. The House bill reduces this request by $2,867,000, all of which I am asking the Senate to restore. Our budget provides $857,000 for increases in television programming, activities in East Europe, and additional representation allowances. These increases are almost entirely offset by reductions in our press, motion picture, and broadcas'ing activities, and by further reductions in West Europe. Thus, the House bill would entail still further cuts in our continuing programs and activities.

The House bill allows $3,500,000 for the Special International Exhibitions program, This compares with the Agency's request of $5,456,000 (as amended by H. Doc. 91-305) and is a reduction of $1,956,000. I ask that $1,126,000 of this cut be restored, leaving $830,000 that is not being appealed. The Agency's original request included $2,346,000 for the full estimated cost of construction and operation of a new exhibit to be shown in the Soviet Union this calendar year and next. Of this total, $830,000 will not be required for obligation until fiscal year 1972, and need not be covered in the 1971 appropriation.

The Honorable
John L. McClellan, Chairman
Subcommittee on the Departments
of State, Justice, Commerce, the
Judiciary and Related Agencies
Senate Committee on Appropriations

This exhibition program is now limited to participation in international trade fairs in East Europe and Berlin, and the circulation of large exhibits in the USSR and East Europe as called for by exchange and other special bi-lateral agreements.

The program also provides for the use of Labor Missions at the East European fairs and other selected locations, and for the export promotion Trade Mission program of the Department of Commerce. All such efforts would have to be substantially reduced under the House bill.

The 1971 budget request provided for the new exhibit to be shown in the Soviet Union, for continued U. S. participation in international trade fairs in Bulgaria, Hungary, Poland, Romania, Yugoslavia, and Berlin, and for reshowings in Poland and Romania of an exhibit formerly used in the Soviet Union. These projects represent not only the results of long, difficult negotiations, but are unique opportunities in our efforts to broaden contacts with the peoples of East Europe. The reduction made by the House is, in my view, unwise in terms of the contribution such exhibitions offer for the advancement of U. S. Interests in these important countries. I strongly urge the Senate to restore $1,126,000 of the amount cut by the House.

The Voice of America is the only means of communication available to the U. S. Government without regard to national boundaries and the policies and restrictions imposed by other governments. Many elements of the VOA facilities are obsolete, becoming increasingly costly and difficult to maintain. No new funds have been appropriated for radio facilities since 1968, and we have relied on prior balances to take care of the essential maintenance and improvement needs of the system. By fiscal year 1971, however, such funds will be down to $400,000, for support of a system having a value of more than $200 million. Our budget request was for an additional $800,000, which under the House bill has been cut to $600,000. I am requesting the Senate to restore the $200,000 reduction made by the House,

I will be pleased to appear before your committee to discuss our programs, our budget estimates, and these restoration requests.

Sincerely,

Frank Shakespeare

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