Substantial progress is being made during the current fiscal year, with funds appropriated by the last Congress, to increase the effectiveness of this program. Moving on beyond the practice of previous years of depending upon influential groups in each country to relay our story, we have begun to reach directly large mass audiences, and each month new thousands of people are hearing what we have to say. A network of radio broadcasting facilities capable of beaming the spoken word into all corners of the world is under construction. Visual materials, including current news topics, illustrated pamphlets, documentary motion pictures, exhibits, and similar items are being issued in larger quantity and prepared to appeal directly to the interest of significant population groups.

Great importance is attached to the exchange of persons, especially. leaders, as one of the most effective means of accomplishing our objectives. The United States information centers abroad are increasingly popular as sources of information about the United States and as channels through which people are reached and influenced.

Much effort this fiscal year must, of necessity, be devoted to the mechanics of putting this intensified program in motion. We are endeavoring to recruit the best people available for assignment to the oversea and domestic phases of the operation. Careful security clearance is of utmost importance. Space and other operating tools must be provided.

The estimate for 1952 will provide for a continuation of the activities inaugurated in the current fiscal year, for the operation of the radio facilities on which construction will be completed during the year, for intensification of our efforts in three countries recently added to the areas of critical concern, and for specific projects to meet urgent needs in several other countries.

In dealing with the problems I have been discussing and with the myriad of others which will arise, the Department will continue to report to the Congress and the American people the facts essential for informed judgment or criticism. We are constantly endeavoring to develop closer working relations with Congress, and to promote more extensive consultations with the committees.

Mr. Humelsine, who I am sure is known to all of you, has assumed responsibility for administration and controls in the Department. He succeeds Mr. Peurifoy, who did such a fine job. I feel that I am particularly fortunate to obtain the services of so competent a successor. Mr. Humelsine will be available to you and render any assistance you may require in the field in which he has jurisdiction. I have left the discussion of our problems on administration and controls to him.

In this presentation, I have endeavored to indicate the careful study which has gone into the preparation of this budget request and the care which has been exercised to relate expenditures to need. I will now be glad to talk with you about any matters which you may wish to discuss.

In accordance with what I understand to be the committee's desire, I shall discuss informally and off the record with the committee the entire situation in the world which lies back of this request for funds. Does that meet the wishes of the committee?

Mr. ROONEY. That is exactly what we have in mind, Mr. Secretary. (Statement off the record.)

STATUS OF LOANS TO SPANISH GOVERNMENT

Mr. ROONEY. What is the present status of the Spanish loans? Secretary ACHESON. As I understand it, Mr. Chairman, the present status of the Spanish loans is that the Spanish Under Secretary of Industry and Commerce is here negotiating the terms and amounts of various loans. My understanding is that initial loans were approved on February 14 for four projects, which total $12,200,000. These discussions are still going forward.

(Discussion off the record.)

DUPLICATION OF GOVERNMENTAL AGENCIES

Mr. STEFAN. Mr. Secretary, the questions that I have in mind have been disturbing me over a period of years. They concern the entire world picture, which is a very serious one, due to the fact that we have to take leadership in it. There is the question, if we are going to continue to take leadership in the situation all over the world. in connection with all of these problems, what the effect will be of a duplication of effort by various Government agencies and how effective will be our regular Foreign Service in the future. I should like to develop that in detail, and that is going to take some little time.

Secretary ACHESON. I should like very much to talk with you about it. This is a matter which has concerned me a great deal, too.

Mr. STEFAN. I have been working on it ever since we got into Greece and since we first developed our Marshall-plan program, as well as these other programs. I have been disappointed, in that I think the work we are doing now is going to be ineffective unless we have a concentration of authority by our chiefs of missions who are scattered all over the world at 300 different posts. The question is whether they are going to be set aside, whether they are going to become merely glorified clerks, and superseded by some other agencies who could duplicate and perhaps destroy the objectives that we have in mind. I think we are wasting money because of interference and duplication. Secretary ACHESON. I should be glad, indeed, to come back and talk to you about that.

(Discussion off the record.)

Mr. ROONEY. Thank you, Mr. Secretary, for a very interesting and informative statement.

Mr. PRESTON. It has been a very interesting statement, Mr. Secretary.

Secretary ACHESON. Thank you, Mr. Chairman and gentlemen.

SALARIES AND EXPENSES

WITNESSES

CARLISLE H. HUMELSINE, DEPUTY UNDER SECRETARY FOR AD-
MINISTRATION

EDWARD B. WILBER, BUDGET OFFICER

GENERAL STATEMENT OF THE DEPUTY UNDER SECRETARY FOR ADMINISTRATION

Mr. ROONEY. With respect to the item, "Salaries and expenses, Department of State," we have with us the distinguished Deputy Under Secretary of State for Administration, Mr. Carlisle H. Humelsine.

Mr. Humelsine, I understand you have a general statement that you wish to submit for the record?

Mr. HUMELSINE. Yes, sir.

Mr. ROONEY. The statement will be incorporated in the record at this point.

(The statement referred to is as follows:)

STATEMENT OF THE DEPUTY UNDER SECRETARY FOR ADMINISTRATION

Now, Mr. Chairman, I would like to present a brief summary of the Department's estimates for fiscal year 1952. I plan to be present throughout the committee's review of the estimates and will be available for discussion on the individual items as they are reached.

Our request of $283.6 million for 1952 is only about three-tenths of 1 percent of the budget for the entire Government. Of the amount being requested by the Department, approximately $28 million, or 10 percent, is for capital expenditures— $9 million for acquisition of buildings abroad; $16 million for construction projects of the International Boundary and Water Commission; and $3 million for liquidating contractual obligations for restoration of public roads under the Philippine rehabilitation program. Also $35.3 million is requested for contributions to international organizations and to the Foreign Service retirement fund. Our request for regular operating funds, therefore, is $220.3 million.

With your permission, I would like now to provide for the record a summary table comparing the 1952 requests with the appropriations and the base for each appropriation for the current fiscal year.

Appropriations and adjusted base for fiscal year 1951 as compared with estimates

for 1952