The recommended reduction in the President's request for the contingency fund is consistent with both the House and Senate versions of legislation authorizing security assistance for fiscal year 1976, which reduce the President's request for a $10 million revolving contingency fund by $5 million and keep the authorization on an annual basis. According to AID, the Fund is being operated at a rate of $1.8 million under the Continuing Resolution for the current fiscal year. None of these funds have been obligated to date.

The President's budget authority request of $34 million is $8.5 million below his request for fiscal year 1976. The reduction below the traditional request of $42.5 million is due to the availability of unobligated balances from prior year appropriations.

DEPARTMENT OF STATE

Based upon agreements between the Department of State and 24 other agencies operating overseas, the Department has instituted a Foreign Affairs Administrative Support system (FAAS) to replace. the previous Shared Administrative Support system (SAS).

The Department provides a number of administrative support activities and facilities for these agencies overseas. Under the SAS the appropriations of each agency included a sum for such support. Under the new FAAS, reflected in the fiscal year 1977 budget, all of these administrative costs are included in the State Department budget and the budgets of the other agencies reduced in equivalent amounts.

The new system represents no increase in overall costs to the Government; it is a bookkeeping arrangement. This approach is supported by the GAO.

The introduction of this new system accounts for an increase of $69.9 million in the Department's fiscal year 1977 budget.

1 Pending.

2 Outlays for payments to the Foreign Service retirement and disability fund are included in outlays shown on page 41.

COMMITTEE COMMENT

This sum covers salaries, expenses, and allowances of the officers and employees of the Department, both in the United States and abroad; representation allowances abroad, to which the committee added $500,000; emergencies in the Diplomatic and Consular Service; executive direction and policy formulation; administrative and staff activities; and a payment of $8,055,000 to the Foreign Service retirement and disability fund for the unfunded liability created by new statutes which liberalize benefits or increase salaries on which benefits are computed.

67-541-76-3

This sum defrays the assessments of the United States in international organizations and pays the costs of U.S. participation in international conferences. It includes the U.S. share of the cost of the United Nations and its specialized agencies as well as 12 regional organizations and 17 smaller international organizations. From it are paid the expenses of seven missions which represent the United States at the headquarters of certain of these organizations. Included is $45 million for Middle East peacekeeping activities. It will also defray expenses of the U.S. delegation which will host the annual meeting this year of the North Atlantic Assembly, for which an additional $50,000 has been included. The additional $25 million for UNESCO recommended by the committee is strictly a contingency fund to provide for the U.S. share of its regular assessment to UNESCO should the situation change to the point where the U.S. desires to resume its participation in this agency. That sum includes a residual payment due for its 1974 assessment as well as its assessment for calendar year 1975. Unless there is a change in the current situation within UNESCO, it is most unlikely that the Congress would authorize any funds for further participation.

2 Includes $15,000,000 for preservation of ancient Nubian monuments (special foreign currency programs).

COMMITTEE COMMENT

This sum will enable the Secretary of State to carry out his functions under the provisions of the Mutual Educational and Cultural Exchange Act as well as provide support to the East-West Center associated with the University of Hawaii.

This sum provides for U.S. assistance to migrants and refugees through contributions to the Intergovernmental Committee for European Migration, the United Nations High Commissioner for Refugees, the International Committee for the Red Cross and direct assistance to or on behalf of refugees from various countries through voluntary agencies.

1 Supplemental authorization request of $31,458,000 is pending.

2 Of which $5,535,000 is for the purchase of foreign currencies from the U.S. Treasury which are considered excess to U.S. needs.

COMMITTEE COMMENT

A small portion of this sum will permit the acquisition, development, and construction of office buildings abroad used by many civilian agencies of the United States as well as residences for diplomatic and consular personnel. The principal portion is for the operation and maintenance of these properties. The program is authorized at 2-year intervals. Last year Congress authorized $55,202,000 for fiscal year 1977. The Executive has requested a supplemental authorization of $31,458,000, most of which is to start work on a new embassy complex in Moscow. Under existing law the authorized but unappropriated sum for 1977 may be carried over to future fiscal years until appropriated.

Passport Office

[In thousands of dollars]

This sum will permit the Passport Office to miniaturize its voluminous files thus reducing the need for additional filing cabinets and office space. It will also enable the Office to continue its study and development of the Travel Document and Issuance System to expedite the issuance and use of passports in international travel.