COMMITTEE ON APPROPRIATIONS CLARENCE CANNON, Missouri, Chairman JOHN H. KERR, North Carolina JOHN E. FOGARTY, Rhode Island ANTONIO M. FERNANDEZ, New Mexico E. H. HEDRICK, West Virginia PRINCE H. PRESTON, JR., Georgia OTTO E. PASSMAN, Louisiana LOUIS C. RABAUT, Michigan DANIEL J. FLOOD, Pennsylvania CHRISTOPHER C. MCGRATH, New York SIDNEY R. YATES, Illinois FOSTER FURCOLO, Massachusetts FRED MARSHALL, Minnesota ALFRED D. SIEMINSKI, New Jersey JOHN TABER, New York RICHARD B. WIGGLESWORTH, Massachusetts H. CARL ANDERSEN, Minnesota ERRETT P. SCRIVNER, Kansas FREDERIC R. COUDERT, JR., New York EARL WILSON, Indiana NORRIS COTTON, New Hampshire GEORGE B. SCHWABE, Oklahoma GEORGE Y. HARVEY, Clerk (11) Mr. ROONEY. Gentlemen, this morning we commence consideration of the appropriations estimates submitted by the Bureau of the Budget for the Department of State. At this point we shall insert in the record pages 1 through 6 of the justifications, which contain a summary of requirements for the Department of State. The amount requested for fiscal year 1952 is $12,173,329 over the amount appropriated for the Department in the current fiscal year. The amount requested for 1952 is, however, $69,884,279 over the base figure. Summary of requirements, fiscal year 1952 Appropriations, 1951 regular act. Add: Prior year balance available in 1951. Prior year balance reappropriated in 1951, (Philippine Rehabilitation, Caliquidated contract authorizations.. Counterpart funds (local currency) available in 1951. Savings under sec. 1214, Public Law 759. Deduct: $206, 062, 297 $271, 393, 147 +27, 214, 541 +5, 349, 988 +15, 212, 000 +48, 776, 529 Funds applied to contract authorization. 1951 balance reappropriated in 1952 (Philippine rehabilitation, Department Prior year balance available in 1952. Transfer to "Expenses international development, Executive Office of the Transfer to General Services Administration pursuant to Reorganization Activities reduced or eliminated (including nonrecurring items): "Contributions to international organizations, Department of State". "Salaries and expenses, American sections, International commissions". "International information and educational activities" (including "Institute of Inter-American Affairs". Unobligated balances: "Contributions to international organizations, Department of State". Base for 1952.. +1,000,000 -7,980,000 --11, 000, 000 -625,000 -2,537,000 -52, 400 -126, 933 -675,000 - 172, 953 -50, 289, 961 -5, 000, 000 -1,626, 611 -40,000 -394, 625 (1) -106, 487, 479 213, 682, 197 Summary of requirements, fiscal year 1952-Continued Net difference between 1951 and 1952: 1. Salaries and expenses, Department of State. 4. Acquisition of buildings abroad.. 5. Emergencies in the diplomatic and consular service. 6. Contributions to international organizations, Department of State. 7. Missions to international organizations, Department of State. 8. International contingencies, Department of State... 9. Salaries and expenses, International Boundary and Water Commission, United States and Mexico. 10. Construction, International Boundary and Water Commission, United States and Mexico.... Difference, +$3, 123, 133 .4, 627, 000 +4, 627,000 15, 599, 214 9, 000, 000 -6, 599, 214 9,900,000 19, 900, 000+10, 000, 000 27, 790, 659 30, 684, 476 +2, 893, 817 1,441, 082 1,570, 000 +128, 918 2,800,000 11. Rio Grande Emergency Flood Protection, Department of State. 16, 200, 000+10, 155, 220 12. Salaries and expenses, American Sections, International Commissions. 13. Salaries and expenses, International Claims Commission, Department of State. +380, 800 179, 300 265,000 +85, 700 70, 148, 637 115, 000, 000 +44, 851, 363 3, 330, 363 3,000,000 -330, 363 Summary of obligations by object of expenditure-Continued Lands and structures. Grants, subsidies, and contributions. Refunds, awards, and indemnities. Investments and loans.. Unvouchered... Undistributed. Total obligations. Deduct amount financed from agreements included in prior year obligations Net obligations..... Adjustments under appropriations: Add: Balance available in subsequent years. GENERAL STATEMENT OF THE SECRETARY Mr. ROONEY. We are pleased this morning to have with us the distinguished Secretary of State, the Honorable Dean Acheson, who, I assume, has a general statement, which it is customary to present at this time, with regard to the operations of his very important Department. Mr. Secretary. Secretary ACHESON. Mr. Chairman, I have here a prepared statement which I shall go through if the committee desires or, if the committee should prefer, I shall just insert it in the record. Mr. ROONEY. We shall continue the practice which we have followed in the last few years and insert your prepared statement in the record at this time and ask you to comment generally on the items contained therein, and the details of the present international situation. Mr. ACHESON. I am glad to have this opportunity to meet with you again to present our budget for 1952 and to discuss our problems and review our objectives. I am conscious, as I am sure each of you is conscious, that our problems are rendered urgent by the mounting threat of Communist imperialism and the need to meet that threat if we are to safeguard our independence and our free way of life. For 1952 we are requesting at this time $283,566,476, which compares with appropriations of $271,393,147 for the current year-an increase of $12,173,329. These sums exclude military and economic assistance and costs of occupation. When we take into consideration certain factors such as nonrecurring items, unobligated balances, and other adjustments, we are, in fact, requesting increases of $69,884,279 over comparable funds which comprise the base. The justifications which have been submitted to you analyze these increases and justify the estimates. Witnesses from the several major bureaus and offices of the Department are prepared to appear before you in support of our requests. These estimates provide for continuation of current activities as they are being redirected to emphasize defense and mobilization objectives. However, they do not provide for assumption by the Department of its full role under the mobilization program. Supplemental appropriations will be requested as soon as final plans have been developed. The present international situation has placed an unprecedented burden upon the Department in matters of diplomacy and negotiation. While this burden has grown greater, there has been no equivalent expansion in the Department's organization. Total funds and personnel available to the Department for a number of years past have remained comparatively static, the funds remaining at about three-tenths of 1 percent of the entire Government budget. Yet the number, the complexity, and in particular the significance of matters relating to our foreign affairs have mounted tremendously. A large percentage of the innumerable problems with which the Department is faced day after day are directly and closely related to our struggle for survival as a democratic Nation and to our efforts to maintain peace in the world. The efforts we are making to avert war under the conditions which prevail are of a different order than would be required merely to maintain an established peace. As the most powerful member of the free world alliance, this country has assumed leadership in developing an international order to establish and preserve peace and freedom. The stragetic importance of the responsibilities of the Department of State in such a role makes it imperative that adequate provision be made for its operation. We have made that operation more effective. When I last appeared before you a year ago, I reviewed the Department's progress in carrying out the recommendations of the Hoover Commission. Our experience since then has reinforced my belief that the Department now has an effective action organization. Organization, however, is never a static thing, and the Department has during the past year undergone a number of changes to enable it to meet its newest responsibilities. We have added to our functions the program for overseas technical assistance, a greatly expanded program for mutual defense assistance, and a large increase in our overseas information activities. The emergency situation has created an entire range of new work throughout the Department and I would like to express here, as I have done on other occasions, my pride in and appreciation for the exceptional devotion to duty with which the personnel of the Department and the Foreign Service have responded to this challenge. Our personnel serving overseas are doing outstanding work under increasing pressures and hardships. The Department has created two new major organizational units to meet its added program requirements. A Technical Cooperation Administration, headed by Dr. Henry G. Bennett, former president of Oklahoma A. and M. College, has been charged with planning, implementation, and management of the point 4 program. More recently, under an agreement with the Departments of Defense, Treasury, and ECA, the position of Director, International Security Affairs, has been established. This position has responsibility for |