Summary of requirements, fiscal year 1956-International Educational Exchange

Appropriation:

1955 regular act.

1955 supplemental act..

Activities

Add comparative transfers from: "Government in occupied areas".

Base for 1956................

$14,700,000
300,000
3,577, 547

$18, 577, 547

'Total for each geographic area would include pro rata shares of items 5, 6, and 7.

22, 000, 000

NOTE.-The above figures include the distribution of domestic expenses prorated to the respective areas.

EUR

FE.

NEA.

Total.

BUDGET PRESENTATION

The budget for the 1956 fiscal year is presented in terms of area and country programs. These programs are estimated on the basis of the type of exchange activity. The total request for 1956 is $22 million of which $8,299,124 is in foreign currencies for Public Law 584 requirements. This budget request includes the German and Austrian programs previously carried under the appropriation "Government in occupied areas.' The amounts obligated in 1954 and available in 1955 are included in the various statements contained herein to show comparability as between fiscal years.

The amount of $8,299,124 to purchase foreign currencies for 1956 is based on the continuation of existing executive agreements, and the extension of a certain number of agreements. These agreements are entered into in accordance with the provisions of Public Law 584, 79th Congress, as amended by Public Law 400, 82d Congress and as furthered by Public Law 480, 83d Congress. Programs in 1955 are being carried out pursuant to executive agreements in 24 countries. It is planned to reactivate programs in South Korea and China (Formosa) in 1956. Executive agreements were signed with these countries on April 28, 1950, and November 10, 1947, respectively. Executive agreements with France, Greece, India, Italy, Norway, and the United Kingdom will be extended since the current reservation of funds will be exhausted in 1955.

SUMMARY OF LAWS AUTHORIZING USE OF FUNDS FOR 1956 INTERNATIONAL EDUCATIONAL EXCHANGE PROGRAM

Annual appropriations

1. Public Law 402, 80th Congress, the United States Information and Educational Exchange Act of 1948, the Smith-Mundt Act.-Provides, among other things, the general basic authority for a reciprocal educational exchange program between the United States and other countries, and authorizes annual dollar appropriations from the United States Congress for that purpose. The first appropriations made by the Congress under this act were for the 1950 fiscal year. Funds for the 1956 operation of this program are included in this appropriation request.

Funds under this act are used primarily for: (1) Grants for observation and consultation, for general lecturing, advice and consultation, or the acquiring of specialized practical experience in all countries except Finland where other dollar appropriations are available; (2) in conjunction with foreign currencies for priority projects in 24 countries where funds under the Fulbright Act are available; (3) all types of exchange grants in countries where funds under other acts are not available; (4) administration in the United States of programs under items 2, 4, and 6 below.

2. Public Law 584, 79th Congress, the Fulbright Act.-Provides that some of the foreign currencies owed to the United States as a result of surplus property sales abroad may be used to finance exchanges between the United States and certain foreign countries for study, teaching, lecturing, or advanced research. This act was passed on August 1, 1946. It was amended by Public Law 400, 82d Congress, the Mutual Security Act of 1952, to provide for the use of foreign currencies "held or available for expenditure by the United States or any agency thereof *** and not required by law or agreement *** to be expended or used for any other purpose.' The purposes of Public Law 584 were furthered by Public Law 480, 83d Congress, the Agricultural Trade Development and Assistance Act of 1954, which provides that one of the uses to which currencies accruing under this act may be put is "the financing of international educational exchange activities*** authorized pursuant to Public Law 584, 79th Congress, as amended." A provision of the Mutual Security Act of 1954 (Public Law 665, 83d Cong., sec. 514) also furthers this program by requiring the Secretary of the Treasury, upon request of the Secretary of State, to reserve foreign currencies for sale to the Department of State for international educational exchange activities. Programs financed in whole or in part with founds available under this act are proposed for operating in 24 countries in 1956. As incidated in this appropriation request, these foreign currency funds are used in conjunction with dollar funds appropriated under Public Law 402, the Smith-Mundt Act, in all of these countries except Finland where other dollar funds are similarly used. All of these foreign currency requirements are included in this appropriation request.

Other American Republics

3. Public Law 355, 76th Congress, Act for Cooperation With the Other American Republics. Provides, among other things, authorization for educational exchanges between the United States and the other American Republics, including those provided under the terms of the Buenos Aires Convention of 1936. Since 1950, funds to carry out exchanges under this authorization have been included in the annual request for appropriations under Public Law 402 (see above). Special funds-Finland

4. Public Law 265, 81st Congress, the Finnish Educational Exchange Act.-This act was passed on August 24, 1949. It provides that the annual payment in dollars on Finland's World War I debt to the United States may be used, among other things, for educational exchanges between the two countries. Accordingly, funds under this act are used for: (1) Grants for observation, consultation, and general lecturing, or the acquiring of specialized practical experience; in conjunction with foreign currencies (Public Law 584) for priority proiects. Estimates for the administration of this program in 1956 are included in this appropriation request. However, program funds, while included in the schedules, are not part of this appropriation request.

India

5. Public Law 48, 82d Congress, the India Emergency Food Aid Act of 1951.— This act provides that interest payments in dollars by the Government of India before January 1, 1957, may be used, among other things, for exchange of students, professors, other academic persons and technicians between the United States and India. The first funds under this act became available in fiscal year 1953. Funds under this act will be used primarily for: (1) grants for observation, consultation, and general lecturing, or the acquiring of specialized practical experience (in addition to those available under the Smith-Mundt act); (2) other special projects. Estimates for this program in 1956 are included in the Department's budget under a separate heading.

Ireland

6. Public Law 472, 80th Congress, Economic Cooperation Act of 1948.-This act (Sec. 115 (b) (c)) provides that the unencumbered balance remaining in the special deposit account, shall be disposed of within such country for such purposes as may, subject to approval by the act of joint resolution of the Congress, be agreed to between such country and the Government of the United States. Public Law 665, 83d Congress (sec. 417) approved the use of approximately 6 million Irish pounds for purposes listed in the agreement between the Government of Ireland and the Government of the United States, dated June 17, 1954, including 500,000 Irish pounds which are to be used for "scholarship exchange between the United States and Ireland." The 500,000 Irish pounds will be used to carry out a Public Law 584 type program of educational exchange. These funds are the property of the Irish Government and are not reflected in this budget request. However, domestic expenses required to administer this program are included,