SALARIES AND EXPENSES (SPECIAL FOREIGN CURRENCY PROGRAM)

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

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 is $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.

2.

3.

Labor Missions: The 1971 request for $200,000 is for a program of labor missions and special exhibits at three of the East European fairs, and three independent exhibits in Africa and Latin America. Under the House Allowance, the budget would be reduced by $15,500 to $184,500. This cut would require the elimination of the Fall1970 mission planned for Brazil.

Trade Missions: The 1971 request of $600,000 provides for a program of trade promotion by means of a series of 30 industry-organized missions, two Government-organized missions, and eighteen combined mission efforts. Under the House Allowance, the budget would be reduced by $144,500 to a total of $455,500. This cut would require the elimination of eight of the 18 joint missions planned for 1971, and a reduction in the employment rate during the year.

PROGRAM SUMMARY--SPECIAL INTERNATIONAL EXHIBITIONS
(In thousands of dollars)

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

b As amended by H. Doc. 91-305.

"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."

1971 Budget Request

The House allowed the full $332,000 requested for this appropriation. The 1971 estimate provides for local currency costs associated with the trade fairs and exhibitions projected for Poland and Yugoslavia during 1971.

(1) Page 53, line 20, strike out: "$600,000" and insert: "$800,000". This change is requested to meet continuing requirements for maintenance and improvement of VOA broadcast facilities during 1971.

House Report

"Acquisition and Construction of Radio Facilities.-- The sum of $600,000 is provided for major improvements, replacements, repairs and engineering research."

1971 Budget Request

The Agency's request for the Acquisition and Construction of Radio Facilities appropriation was $800,000. The House reduced this amount by $200,000 in allowing $600,000. The Agency asks that the entire cut be restored.

No new funds have been appropriated for radio facilities since 1968. The Agency has used balances available from prior appropriations to carry on a program of propagation and engineering research, and to provide for maintenance, replacements and improvements needed in the world-wide VOA facilities system. By 1971, however, all but $400,000 of these balances will have been applied to current requirements. Facilities maintenance and improvements have been running at a rate of about $1.2 million annually, and a level of $1.0 million was budgeted for 1971. Under the House allowance, this total is reduced to $800,000 ($400,000 from prior balances and $400,000 in new appropriation). For a system which still contains many out-moded components, and which must be competitive and reliable in its output, the reduced level is inadequate by engineering and industrial standards.