mittee composed of Mr. James Rowe, a former member of the Hoover Commission, former Congressman Robert Ramspeck, and Ambassador William De Courcy. The Department has responsibility for directing and coordinating several large world-wide programs, such as "Information and educational exchange," "Military assistance," and "Technical cooperation and development." Since the Korean crisis and the expansion of our mobilization program, these world-wide programs have increased in importance and scope. These programs have also had an impact on our organization structure; we must assure the coordination of these overall functional programs with regional bureau administration. I believe we are accomplishing a balance which will insure the obtaining of our over-all program objectives and, through the regional bureaus, tailoring the operation of these programs to meet the particular needs of the individual areas of the world. As the programs develop and we obtain added experience in their administration, some changes may be indicated. However, I believe we are on the right track and that successful and economical implementation is being obtained. In conclusion, it is evident that the international crisis and our defense-mobilization activity have added to the functions and responsibilities of the Department and have greatly increased the pressures on the officials who are carrying them out. All of us are aware that we must do our job as economically as possible. We are trying to make our present budget meet continually expanding requirements. And we are going to eliminate or reduce many desirable but less essential activities to help pay for the emergency programs for which we are responsible. Of course, this is difficult to do when the savings we accomplish by making reductions in normal activities are offset by major increases in the cost of our supplies, equipment, rent, and transportation. We are currently engaged in a complete review of the Department's responsibilities in the defense-mobilization program. It will be impossible to discharge all of these new responsibilities without coming back to you for supplemental funds. However, I want to assure you that the cost of any expanded requirements will be kept to the minimum. I appreciate the opportunity you have given me to present this brief summary of the estimates now before you. I am at your complete disposal during the committee's review of the estimates. My staff will provide any facts and figures not contained in the formal estimates which the committee may desire. Mr. ROONEY. Secretary Humelsine, do you wish at this point to make an extemporaneous statement highlighting the matters under your administration in the State Department? Mr. HUMELSINE. Yes, Mr. Chairman; I would like to make a brief statement. Mr. ROONEY. We shall be glad to hear you. Mr. HUMELSINE. First of all, I would like to say, Mr. Chairman and members of the committee, that I am glad to be here. I hope that you will bear with me. I am a neophyte in this particular role, since this is my first appearance before your committee in this capacity. I am finding real difficulty, I might add, in filling the spot formerly presided over by Mr. Peurifoy, who I know did a fine job for this committee and for the Department of State. I hope that in some small measure I can meet with your approval in this capacity. I would like to give you a brief summary of the budget request that we have made. SUMMARY OF REQUIREMENTS First of all, this request will not cover the complete monetary requirement of the State Department for the fiscal year 1952. We will be up, I am hesitant to say, for some supplemental considerations. This budget was prepared last spring before the outbreak of the Korean hostilities, and it does not reflect the complete requirements of the Department. Mr. ROONEY. Why as far back as last spring? Mr. HUMELSINE. In order to meet the requirements of the Bureau of the Budget and the President in putting together the entire budget. for submission to the Congress. In addition to the supplemental that I referred to, the budget estimate does not include the point 4 program, nor the budget estimate for occupied government in Germany and Austria. Those will be submitted later. The over-all total of the Department of State's budget for 1952 is $283,366,476. This represents an increase of $12,200,000 above the appropriations for last year. But, by making that statement, I do not want to mislead the committee, because the $12,200,000 appropriation increase does not actually show the real picture. When the proper adjustments are made, excluding the nonrecurring items, the estimate actually represents a real increase of approximately $69,000,000-it comes closer to $70,000,000, $69,900,000 above the program represented by the adjustments to the 1951 figure. I think I should mention, Mr. Chairman, at this time, the most significant increases in round figures, if that meets with your approval. They are as follows: "International information and educational activities" represents an increase of $45,000,000. "Construction of the Mexican Boundary and Water Commission,' $10,000,000. "The emergency fund." $10,000,000. "The Foreign Service retirement fund," $4,500,000. "Salaries and expenses, Department of State," $3,000,000. "Contributions to international organizations," $3,000,000. The most significant decrease is in "Foreign buildings," in the amount of $6.5 million. I have brought today a series of charts which I would like to cover briefly. Mr. ROONEY. We shall be glad to have you exhibit them. Mr. HUMELSINE. This first chart, which we will leave here with the committee, is designed to show the global organizational breakdown of the Department of State, the way it handles the oversea responsibility. Each one of the colors reflects an office in the Department, under a regional Assistant Secretary. For example, the blue area shows the Office of East Coast Affairs in the American Republics area. CHART OF AREAS OF COMMUNIST PENETRATION We have made an overlay, based on intelligence estimates, to show the degree of communistic threat in the whole world situation. The red-the solid red-shows that part of the world which is presently under direct Communist control. The next, which is the vertical cross hatch, shows places where the Communist Party is the major political organization, but does not necessarily control the government. The next is the horizontal cross hatch, which shows where the Communist movement is of importance, by virtue of party activities. The next is the dark-green block, showing where the Communist movements are minor, with the limited influence of Communist trade-unions and other organizations. Then, you see the solid green, which indicates no Communist organization, and where, according to our intelligence estimates, the Communist activities are negligible and are confined mainly to individuals. Then you see these places where stars indicate that the government has outlawed the Communist Party in those particular countries. Then there is a series of arrows which point to particular countries where Communist activities of a sporadic sort of guerrilla activities are encountered. I think this chart may be of some considerable interest to the committee during the course of the hearings, and we will bring it up each day so it will be here for your perusal. Also, we have some charts which I have supplied to each member of the committee, a series of small charts, having to do with the budget requests of the Department of State. The first chart is a comparison of the Department of State budget with the total budget of the United States Government. That shows that the requests that we are making for the State Department, which may seem to be large, represent but a small amount of the total President's budget. In fact, it figures out to three-tenths of 1 percent of the entire United States Government budget for 1952. That is placed before the committee for your use in discussing the items. We realize, and we try, despite the fact that this represents a small portion of the total budget, to operate the Department with every possible economy in line with the job that we have to do. The second chart shows graphically how we break down the appropriation estimates in the Department. The second-largest figure there is for "Salaries and expenses, Department of State," $75,400,000, or 27.3 percent of the total request. The largest single request is for "International information and educational activities," with a request of $115,000,000, or 40.6 percent of the total request for the Department. Other items, although this chart will be here throughout the hearings, are as follows: That for "Contributions to international organizations" is $30,684,476, or 10.8 percent. For the International Boundary and Water Commission: That figures up to 6.2 percent of the total requirement. CHARTS OF PERSONAL SERVICES The third chart is an attempt to set out the number of permanent positions, and that breakdown shows that 64.8 percent of the positions are for the Foreign Service, and of those, 6,705 are Americans, and 11,916 are local employees. On the domestic side, it shows that 23.8 percent, or 6,842 individuals are in Washington. In New York there are 2,436, or 8.5 percent of the total. And of those, the greatest majority of that figure has to do directly with the USIE on the Voice of America. The third figure shows the other cities, 839 individuals, or 2.9 percent. That might cause the question to be raised "Why does the Department, in dealing with the foreign field, have 839 individuals in these cities in the United States?" I would like to say that most of those are connected with the International Boundary and Water Commis sion, and for that purpose 726 of those individuals are in El Paso, Tex. In addition, we have passport agents in New Orleans, Chicago, in San Francisco, and Boston, and we have security offices in those same cities as well as Miami. The fourth chart also shows all personnel under regular Department of State appropriations. It shows the total number of permanent positions under each appropriation. For salaries and expenses, Department of State, which includes the largest number, nearly half, 49.4 percent. In International Information and Educational Activities, 47 per cent. That covers the presentation of those four charts. There are a series of other charts that I think might be of some assistance to the committee when you hear the other witnesses who appear on individual appropriation requests. I would like, Mr. Chairman, to mention one other thing, and that has to do with the two most significant changes in the manner of the presentation of the Budget. The first of those is that we are attempting to present the budget on an area basis this year, that is, for the salaries and expenses appropriation. You will find that the estimates have been combined on a regional basis, for the overseas staff, plus the appropriate departmental backstop. I think that will give the committee a better understanding of what it takes to handle the foreign activities of the Department of State in particular regions. We have done that for the Bureau of European Affairs, the Near East, Far East, Latin America and Germany, and this, as I understand it, is in accordance with the committee's desire to try to put the budget on a performance type basis. I do want to say that Mr. Peurifoy in carrying out the Reorganization of the State Department, which allows for this regional arrangement, took steps to try to reflect that in the budget. We have not done a 100 percent job yet, but that is our goal. The other item I would like to mention is that of administrative support for carrying out the USIE information budget. In former years the USIE program presented a budget justification in one appropriation and the justification for the administrative support for that program was carried under salaries and expenses. This year, for 1952, in keeping with the plan for a performance type of budget, all costs of the information program are carried in the USIE justifications, with provision for transfer of approximately $17,000,000 to salaries and expenses account, for administrative support under the Economy Act. In this way the information program carries its full share of the total cost. I think this will permit the committee to make a better evaluation of the Department's needs for funds in carrying out this particular program. That completes my informal remarks, Mr. Chairman, and I shall be glad to proceed as you desire. Mr. ROONEY. Thank you, Secretary Humelsine. We will insert in the record at this point pages 7, 8, 9, 10, and 11 of the justifications, which contain an analysis of the 1951 appropriation and the 1952 request for salaries and expenses, Department of State. (The material referred to is as follows:) Summary of requirements-Salaries and expenses Appropriation, 1951 regular act. Supplemental appropriation for 1951 (Supplemental Appropriation Act, 1951). Savings under sec. 1214, Public Law 759. Transferred to "Operating expenses, General Services Administration" pur- "Operating expenses, General Services Administration" for rents to be paid $77, 800, 000 $78, 600, 000 -500,000 -52, 400 -50, 726 "General supply fund, General Services Administration" in lieu of sur- -3, 207 "International information and educational activities" for administrative -3, 615,000 "Missions to international organizations, Department of State" for Foreign "Expenses, Displaced Persons Commission" (for sec. 12 activities). Base for 1952. Net difference between 1951 and 1952: -28,800 -4,323, 133 74, 276, 867 |