reduction in the dollar request cuts the dollars available for United States expenses of foreign nationals who receive foreign currency travel by two-thirds below the present operating level. Thus, almost the entire cut will have to be applied to the foreign nationals coming to the United States. This will have the following effects:

(a) A lowering of selection standards because most of foreign currency travel grants will be awarded to those who can obtain private dollar resources for stateside expenses, scholarships, etc.

(b) An elimination or reduction of priority projects of political significance which depend on full grants (covering both dollar and foreign currency expenses) from this Government for their implementation.

(c) A greater drain on United States educational institutions for free scholarships to support foreign nationals who get only their travel.

(d) An increase in the number of Americans participating in the Public Law 584 program.

Disproportionate cuts for the various areas will result from the foreign currency limitation, which although it makes possible the provision of sufficient funds for Public Law 584 foreign currency grants in 20 countries, will limit severely the dollars needed to assure effective utilization of these funds and to carry out operations under Public Law 402 throughout the world. The following table shows why this is the case:

Thus, the severe dollar cut makes impossible the increased programs which had been planned for the Far East, Near East and Latin America. Instead it greatly increases the percentage of the program in Europe and will result in a distribution of grants throughout the various regions of the world entirely out of line with the original program plan for the 1956 fiscal year.

In addition to funds for the restoration of grants to the planned level, it is also important that program items, such as foreign grantee orientation which must be reduced by $160,856, be restored in order to operate an effective program.

2. Reduction in aid to American-sponsored schools in Latin America

The 1956 budget request of $250,000 for aid to American-sponsored schools in Latin America must be cut back to the 1954 level of $128,250, a reduction of $121,750.

Assistance to these schools is necessary in view of the role of these schools in moulding opinion and training national leaders favorable to the United States. Reports from our diplomatic missions consistently attest to the importance of our aid contributing to the effectiveness of these schools, which enroll approximately 70,000 students each year, and request reinforcement of our effort to strengthen inter-American solidarity and combat alien ideologies.

The reduction from the 1956 request will not make it possible to maintain adequate professional services and provide sufficient guidance to these schools to maintain United States standards of teaching and administration and to reflect the North American way.

3. Deletion of $2,400,000 limitation for administrative expenses

The limitation of $2,400,000 for administrative expenses of the $12 million program approved by the House is in proportion to the amount of $4,110,377 requested for 1956 for a $22 million total program. However, the limitation amount is not adequate to carry out the 1956 program and to complete the 1955 program. The 1955 program which totaled $18,577,547 carries over into 1956 since most of the grantees to whom awards are made in 1955 will be on their grants in 1956. Necessary services by the International Educational Exchange Service and its contracting agencies must be provided in implementing this

program as well as planning and awarding grants under the 1956 program. Any such limitation on administrative expenses will seriously impair the carrying out of a program on which commitments have already been made.

It was stated in the House report that the administrative expenses for this activity have been entirely too high, and therefore a limitation was placed in the appropriation text. The request of $4,110,377 for this purpose in 1956 represents 18.7 percent of the total appropriation request, but represents only 13 percent when compared with the total estimated program for 1956 of $31,530,000. This includes in addition to the appropriation request, $266,622 in program funds available under the Finnish program (Public Law 265, 81st Cong.) and $9,263,378 in private funds for support of the grant program included in the 1956 budget.

International educational exchange activities-Effect of House of Representatives action (H. R. 5502) on 1956 educational exchange program

See footnotes at end of table, p. 172.

International educational exchange activities-Summary of grants and source of funds for 1956 program-Continued