USIA career officers be given the same rights and prerequisites and be subjected to the same stringent judgment of performance as personnel already in the Foreign Service.

5. Increase greatly the already high level of cooperation and joint planning between State and USIA.

In my opinion, this action, which I wholeheartedly endorse, is a major step forward in our constant efforts to improve the efficiency of the Foreign Service of the United States-a Service that is vitally necessary in an era when the burdens of world leadership are heavy upon us.

B. Appropriations

Document XIV-5

"The [Department of State Fiscal 1965] Budget Requests Reflect the Spirit of Economy and Prudence Pledged by the President": STATEMENT MADE BY THE SECRETARY OF STATE (RUSK) BEFORE THE SUBCOMMITTEE ON THE DEPARTMENTS OF STATE, JUSTICE, AND COMMERCE, THE JUDICIARY, AND RELATED AGENCIES OF THE SENATE COMMITTEE ON APPROPRIATIONS, APRIL 28, 1964 (EXCERPT)1

t

I believe the budget requests before you reflect the spirit of economy and prudence pledged by the President. Our preliminary 1965 estimates were reviewed in early December at the specific direction of the President with a view toward making reductions wherever possible. The budget submitted to the Congress in January reflected the results of that review.2

Amendments submitted by the President in March further reduced the January estimates. Those reductions result from revised cost estimates for activities of certain international bodies to which this Government contributes. They also reflect a downward adjustment in personnel to be hired, in accordance with the President's policy to restrict Federal employment. Our presentation to this committee is based on the revised requests.

We are not asking for any additional positions beyond the 131 for communications in our supplemental request for the current fiscal year.* I have asked all the Assistant Secretaries to hold the line.

I believe that one of the most effective ways to save money is to improve the quality of personnel. A smaller number of hard-working first-class people can carry the same workload as a larger number of

1 Department of State Bulletin, May 25, 1964, pp. 836–843.

* See ante, doc. I-2.

H. Doc. 240, 88th Cong., Mar. 9, 1964.

'H. Doc. 203, 88th Cong., Jan. 21, 1964.

mediocre or less energetic people and do a better job. When I returned to the State Department in 1961 after 10 years in private life, I made up my mind that I would not approve increases in personnel unless they were clearly necessary to meet new responsibilities or increased workloads. For 3 years I have pressed my colleagues to examine individual workloads, to eliminate unnecessary jobs wherever possible, and to do all within their power to improve the quality of our personnel.

I believe that we now have, on the whole, a lean organization. I know at firsthand how dedicated and hard-working my principal colleagues in the Department are. They and their staffs work long days and long weeks-normally 6 days and sometimes 7. I doubt that there is another organization anywhere in Government or in the business world which receives so much unpaid overtime work. Indeed, I am concerned about the numbers who are working at a pace which cannot be sustained over a protracted period.

Before discussing the budget in greater detail, I would like to review some of the administrative actions taken during the past year. We have continued to assess priorities, to eliminate the marginal, and to achieve cost reductions. We have held to our desire for economy, efficiency, and good management. At the same time we have tried to strengthen our leadership in foreign affairs.

We have found many ways to economize in the conduct of the Department's business. These help us to do more at less cost-to get "a dollar's value for a dollar spent," to use President Johnson's words. Let me cite a few examples:

Fifteen consular posts have been closed or changed in status, reducing costs by $500,000 a year.

The use of economy accommodation for air travel has been extended to all flights-worldwide. We hope to achieve cost reductions of $457,000 in international travel, and we have trimmed the 1965 request accordingly.

Better methods of handling truck and ocean freight shipments have made it possible to move the same volume for $50,000 less.

The method of production of the Biographic Register and the Foreign Service List was revised to cut publication costs by $30,000.

There were other economies, but these illustrate our efforts. Together they help to keep our budget within reasonable limits and to meet new needs or higher costs within the funds made available to us. We have increased our efficiency in the use of manpower. During the past 2 years the Department has conducted steadily increasing diplomatic and consular activities throughout the world without increasing its total position strength. To achieve this, we have streamlined procedures, reduced reporting requirements, closed marginal consulates, and eliminated low-priority functions. The manpower reductions achieved have enabled us to assign additional personnel to the crisis areas of the world, to new or expanding activities, to new consulates and embassies and to meet increased consular and other workloads.

A few examples will illustrate what we have done:

Visa work has been improved by reducing the number of mandatory visa opinions referred to Washington, by having posts abroad submit directly to the field offices of the Immigration Service requests for routine waivers, by merging the Visa Lookout Books of the Department and the Immigration Service using machine methods, and by reducing consular reports from posts abroad by 30,000 documents annually. All these will result in more visas issued per employee and will help to meet greater demands for visa services.

The Bureau of Far Eastern Affairs abolished 24 lower priority positions to meet urgent new requirements at posts in the Far East.

The Bureau of European Affairs curtailed political reporting from posts in Germany and abolished seven officer positions which were used for higher priority needs at other posts.

The Passport Office issued or renewed 1,018,000 passports in fiscal year 1963 compared with 867,000 in 1962 and increased production per man-year by about 10 percent.

In the long run better utilization of personnel will result from better supervision. We are giving greater emphasis to good supervision. Specifically, we are stepping up our training of firstline and middlelevel supervisors so they will do a better job of managing those who report to them.

These are indicative of our search to find ways of doing things better and our efforts to employ our personnel usefully on the work of highest priority. The search will continue, so that we can hold the line on employment and still meet new demands we know will come.

We have taken a number of steps to improve the quality of the Department's personnel and facilities and to strengthen its capacity for leadership in foreign affairs.

An Interagency Council on International Educational and Cultural Affairs has been established under the chairmanship of the Department's Assistant Secretary for Cultural Affairs. Its purpose is to strengthen the coordination of all Government programs of international exchanges.

Our program to contract with persons of outstanding competence from our colleges to produce policy research studies has continued to augment at minimal expense the research and analysis which we must do within the Department to back up foreign policy formulation.

A new Office of International Aviation has been established in the Bureau of Economic Affairs to give Government-wide leadership in making and carrying out U.S. international aviation policy. The whole international air transport picture has changed since World War II with the strong competition of foreign carriers. Protection and promotion of U.S. interests require special attention to the development of U.S. policy in this field and conveying it persuasively to other governments.

We have taken action on recommendations of the Herter Committee on Foreign Affairs Personnel. We have made progress in estab

6

See ante, doc. XIII-5.

See American Foreign Policy: Current Documents, 1962, pp. 1545–1553.

lishing a joint recruitment program for junior officers for State, USIA [U.S. Information Agency], and AID [Agency for International Development], a lateral entry program geared to our manpower requirements, and a stronger program of career management to develop the high-quality specialists that today's diplomacy requires.

Today, foreign policy is the concern of every American. We are making a particular effort to improve communication with the public through more effective public information programs. We provide speakers and conduct foreign policy conferences throughout the country, we are improving the quality of our written and printed replies to requests for information, and we are assisting the press and mass media in their efforts to ascertain the facts. Conversely, we are striving to improve channels through which we can obtain the views and desires of the general public on America's role in world affairs.

We have endeavored to meet the demands upon State Department leadership in the area of foreign operations.

We are completing the laborious, but essential, job of writing standardized administrative regulations for the Department, AID, and USIA. This includes the drafting of revised rules and joint instructions on travel, pay allotment, titles and rank, rest and recuperation, local employee compensation, security, and related subjects.

In cooperation with the Defense Department and Budget Bureau, we have begun a study of Defense representation abroad. We will review military attaché, MAAG [Military Assistance Advisory Group], and U.S. training missions in selected countries. I expect that this will result in reduction of the total number of such Defense personnel overseas. We are working with the Budget Bureau to establish guidelines for other Federal agencies in staffing oversea operations. During the past year we have developed, tested, and installed in selected embassies a comprehensive country programing system." This system is designed to provide our ambassadors and top management in Washington with an overview of the complex, multiagency programs which we are undertaking abroad in this era of operational diplomacy. It provides a means for planning and using total U.S. resources to achieve our objectives.

Leadership requires investment. It is not cheap. We must attract and compensate the finest minds and the keenest talent for our foreign operations. We must acquire the staff mobility necessary to a tough and flexible worldwide service.

Document XIV-6

The Department of State Appropriation Act, 1965: TITLE I OF PUBLIC LAW 88-527, APPROVED AUGUST 31, 1964 s

In Caracas Oct. 1-18, 1963; Bogotá Dec. 2, 1963; México, D.F., Mar. 9-27, 1964; Addis Ababa Mar. 16-Apr. 3, 1964. See American Foreign Policy: Current Documents, 1961, pp. 1345–1347.

'H.R. 11134, 88th Cong.; 78 Stat. 711.

AN ACT

Making appropriations for the Departments of State, Justice, and Commerce, the Judiciary, and related agencies for the fiscal year ending June 30, 1965, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Departments of State, Justice, and Commerce, the Judiciary, and related agencies for the fiscal year ending June 30, 1965, and for other purposes, namely:

TITLE I-DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

SALARIES AND EXPENSES

For necessary expenses of the Department of State, not otherwise provided for, including expenses authorized by the Foreign Service Act of 1946, as amended (22 U.S.C. 801-1158), and allowances as authorized by the Overseas Differentials and Allowances Act (5 U.S.C. 3031-3039); expenses necessary to meet the responsibilities and obligations of the United States in Germany (including those arising under the supreme authority assumed by the United States on June 5, 1945, and under contractual arrangements with the Federal Republic of Germany); hire of passenger motor vehicles; services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a); dues for library membership in organizations which issue publications to members only, or to members at a price lower than to others; expenses authorized by section 2 of the Act of August 1, 1956 (5 U.S.C. 170g); refund of fees erroneously charged and paid for passports; radio communications; payment in advance for subscriptions to commercial information, telephone and similar services abroad; care and transportation of prisoners and persons declared insane; expenses, as authorized by law (18 U.S.C. 3192), of bringing to the United States from foreign countries persons charged with crime; and procurement by contract or otherwise, of services, supplies, and facilities, as follows: (1) translating, (2) analysis and tabulation of technical information, and (3) preparation of special maps, globes, and geographic aids; $164,000,000, of which not less than $12,000,000 shall be used for payments in foreign currencies or credits owed to or owned by the Treasury of the United States: Provided, That passenger motor vehicles in possession of the Foreign Service abroad may be replaced in accordance with section 7 of the Act of August 1, 1956 (70 Stat. 891), and the cost, including the exchange allowance, of each such replacement shall not exceed $3,800 in the case of the chief of mission automobile at each diplomatic mission (except that five such vehicles may be purchased at not to exceed $7,800 each) and $1,500 in the case of all other such vehicles except station wagons.

See A Decade of American Foreign Policy: Basic Documents, 1941-49, pp. 506-513.