(1) Page 51, line 10, strike out: "$165,433,000" and insert: "$168,300,000". This change is requested to provide restoration of funds to meet continuing program activity costs in fiscal year 1971.

(2) Page 51, line 11, strike out: "$110,000" and insert: "$210,000". This change is requested to provide representation allowances more nearly commensurate with actual costs, and to meet increased opportunities for personal contacts between USIS officers and key individuals overseas.

House Report

"Salaries and expenses.-- The bill includes a total of $178,433,000 for necessary salaries and expenses of this Agency to enable it to carry out international information activities as authorized by law. This total is made up of $165,433,000 in the item 'Salaries and expenses' and $13,000,000 in the item 'Salaries and expenses (special foreign currency program." The total amount allowed is a decrease of $2,867,000 in the total requested and is the same amount as was appropriated for the current fiscal year including pay act costs contained in the Second Supplemental Appropriation Bill, 1970, as passed by the House."

/ Includes $6,883,000 in supplemental funds as passed by the House.

SALARIES AND EXPENSES

SUMMARY OF PERMANENT POSITIONS AND APPROPRIATIONS, FISCAL YEARS 1970 and 1971

"Salaries and expenses. --The bill includes a total of $178,433,000 for necessary salaries and expenses of this Agency to enable it to carry out international information activities as authorized by law. This total is made up of $165,433,000 in the item "Salaries and expenses" and $13,000,000 in the item "Salaries and expenses (special foreign currency program)." The total amount allowed is a decrease of $2,867,000 in the total requested and is the same amount as was appropriated for the current fiscal year including pay act costs contained in the Second Supplemental Appropriation Bill, 1970, as passed by the House.

1971 BUDGET REQUEST

The House allowed the entire $13.0 million requested for this appropriation. The 1971 estimate provides for the continued financing of local currency costs in these countries designated by the Treasury Department as excess currency countries. For 1971, these countries are Burma, Ceylon, Guinea, India (and Nepal), Israel, Morocco, Pakistan, Poland, Tunisia, the United Arab Republic, and Yugoslavia.

The increase of $2.2 million requested for this appropriation is made up of $911 thousand for shared administrative support payments previously charged to the dollar appropriation; $405 thousand for continuing costs funded from unobligated balances in 1970; $126 thousand for the net added costs of local salary changes; and $758 thousand for expanded program activities, principally for periodical and book publishing programs in India, Ceylon, Pakistan, and Yugoslavia, and for establishment of a reading room at Ljubljana, Yugoslavia.

b/ Includes $183,000 in supplemental pay funds as passed by House.

Amendments Requested

(1) Page 52, line 25, strike out: "$3,500,000" and insert: "$4,626,000".

This change is requested to provide restoration of funds to meet continuing program activity costs in fiscal year 1971.

House Report

"Special International Exhibitions A total of $3,832,000 is recommended for this program of which $332,000 is for payments in foreign currencies which the Treasury Department determines to be excess to the normal requirements of the United States. The amount allowed is an increase of $1,049,000 over the comparable appropriation for the current fiscal year and is a decrease of $1,956,000 from the budget request."

Application of the House Allowance

The House bill allows $3,500,000 in the dollar program for Special International Exhibitions, a reduction of $1,956,000 from the budget request. This amount 1 $717,000 more than the 1970 appropriation. The materials which follow show the application of the House reduction and the requested restoration by program.

1. Fairs and exhibitions: The 1971 request, $4,656,000, is for a program of
participation in seven international fairs in East Europe and Berlin;
full funding of a new U.S. exhibit pursuant to the recent US/USSR Cultural
Exchange Agreement, to be circulated beginning in 1971 in six cities of
the Soviet Union; and reshowings in Eastern Europe of exhibits originally
circulated in the USSR under earlier exchange agreements.

The Agency's 1971 restoration request reduces the estimate from
$4,656,000 to $3,826,000 by elimination of $830,000 not required
until 1972 for the final three showings of the exhibit in the USSR.
(Appropriation of these funds can be deferred until the 1972 budget
request.) Under the House Allowance, the budget would be further
reduced by $966,000, to a total of $2,860,000. This would require
elimination of funds, in addition to the $830,000 not requested to
be restored, for 1971 costs of exhibits this coming fall in trade
fairs in Zagreb and Plovdiv ($261,000), for all projects next spring
at the Budapest, Poznan and Berlin Greenweek fairs ($326,000), for
advance costs of all Fall-1971 exhibits at Zagreb, Plovdiv and Bel-
grade ($175,000), for three re showings of the Architecture exhibit
planned in Romania ($180,000), and associated reductions of $24,000
in administrative services and travel costs.