Mr. FLOOD. Is your service so far as the Secretary is concerned reportorial, or do you write editorials about it? Do you report the facts as they are found, or do you combine both practices and produce on the desk, every 24 hours, more or less of a cafeteria style predigested paragraph conclusion?

Mr. SARGEANT. I would say this tends to be primarily reportorial in nature.

Mr. FLOOD. I think it should be. You feel it is?

Mr. SARGEANT. I feel it is, sir.

Mr. CLEVENGER. I sometimes wonder what they use for typing that report on, asbestos or paper. If they translate the feelings of the average American on the conduct of our foreign affairs, I cannot help but wonder. We have had one large war on our hands and a larger one coming up, and if they lay on Mr. Acheson's desk a picture of what the public is thinking and saying about the State Department and its activities, I am afraid that they will have to use asbestos to report it.

I do see here the same tendency that we saw in the preceding chapter, and that more personnel is provided for than you were authorized to have. The same thing is true of this section as was true in the one before it; there are more positions than were authorized.

AUTHORIZED PERSONNEL

Mr. WILBER. May I say that in the total for the office that is not the case, Mr. Clevenger. Last year we talked about 303 positions, and actually we reflect in 1951 a total for this office of 282. I believe the total is 282.

Mr. CLEVENGER. I refer you to the hearings which appear on page 154. In this UNESCO relations staff there were 37. Down here there are 42.

Mr. WILBER. In that one section, that is correct, but over-all we are well within the total requested for the Office of Public Affairs last year.

Mr. CLEVENGER. How many did we allow you?

Mr. SARGEANT. Twenty-four positions, a net of twenty-one.

Mr. ROONEY. Mr. Clevenger is absolutely correct when he points out that when you came before us last year in connection with the UNESCO relations staff, you asked as your maximum request 37 employees at a cost of $183,453. You now, in effect, attempt to tell us that last year you asked for and were allowed 42 employees at a cost of $209,945.

Mr. WILBER. That is correct.

FRIDAY, MARCH 2, 1951.

DEPUTY UNDER SECRETARY FOR ADMINISTRATION

WITNESSES

CARLISLE H. HUMELSINE, DEPUTY UNDER SECRETARY

EDWARD B. WILBER, DIRECTOR, OFFICE OF BUDGET AND FINANCE LELAND W. KING, ACTING CHIEF, DIVISION OF FOREIGN SERVICE BUILDINGS OPERATIONS

Mr. ROONEY. The next item, gentlemen, is for the Deputy Under Secretary for Administration, which appears at page 176 of the justifications, which page we shall insert in the record at this point. (The material referred to is as follows:)

Deputy Under Secretary for Administration

Mr. ROONEY. It appears from the table on page 176 that there is no requested increase above the amount allowed in the current fiscal

year.
Mr. HUMELSINE. Yes, Mr. Chairman.

Does this page mean what it says?

Mr. ROONEY. Are there any increases in the individual units in your office?

Mr. HUMELSINE. No, sir; no increases at all.

Mr. ROONEY. In other words, you are running your shop with not more than the same number of live bodies you had a year ago? Mr. HUMELSINE. Five less than a year ago.

area that I am directly responsible for.

That is for the entire

Mr. ROONEY. Do you have a general statement?
Mr. HUMELSINE. Yes; I have.

Mr. ROONEY. We shall be glad to hear you.

GENERAL STATEMENT

Mr. HUMELSINE. If you have no objection, I would like to file the general statement and high light it.

Mr. ROONEY. It will be inserted in the record at this point. (The statement referred to is as follows:)

The general responsibilities and the organization structure of the administrative area of the Department remain essentially the same as they were under my predecessor, Mr. Peurifoy. In addition to my immediate office, the adminis

trative area includes the Offices of Consular Affairs, Personnel, Budget_and Finance, and Operating Facilities, the Foreign Service Inspection Corps, the Division of Foreign Reporting Services and the Division of Foreign Buildings Operations. These offices provide administrative services for the Department and also for the Foreign Service in carrying out our overseas program activities.

The principal organization change which I have put into effect in this area involved the transfer of the management staff from the former Office of Management and Budget to my immediate office. The management staff is now located where it can serve more effectively as a staff arm in improving the Department's organization and operations. In particular, the management staff helps with the management planning required by the new and changing programs of this Government in the field of international security and foreign affairs. Under this arrangement, the Office of Management and Budget was reconstituted as the Office of Budget and Finance, which is under the direction of the Budget Officer, Mr. Wilber.

The 1952 budget request for all offices of the administrative area provides for five less positions than we have in the current fiscal year. This means a salary reduction of about $17,000 in our personnel and finance divisions. This modest reduction, however, does not reflect the added responsibilities and the difficulties of administering the Department occasioned by the present world situation. These estimates were prepared prior to the intensified efforts of the Government to mobilize its resources to cope with the current crisis. Accordingly, they do not reflect the realistic requirements of the Department for this area for fiscal year 1952. It may be necessary to request the Bureau of the Budget to present to the Congress supplemental estimates to provide additional funds for both fiscal years 1951 and 1952.

I would like to sketch briefly the major problems of the administrative area and discuss the way each of the offices is meeting those problems.

You are no doubt familiar with the heavy burdens that have been placed upon the Office of Consular Affairs in the security field. The trend of world events has made it extremely important that we tighten up every phase of our security operations both at home and abroad. We intend to continue our thorough investigation of prospective employees. We will put a new emphasis on the reinvestigation of existing employees in key positions. We will not relax our vigilance in assuring that the staff of the Department of State and the Foreign Service consists of thoroughly loyal employees, trustworthy in every respect to safeguard the security of this country.

In the Office of Consular Affairs, we have made considerable headway in the installation of a management-improvement program through which we expect to get more efficient and effective operations. All of the forms and procedures used in the consular offices abroad are being carefully scrutinized with a view to eliminating any unnecessary steps. Because of certain legislative requirements which limit our ability to streamline some of our consular work, our program of improvement will take some time, and we shall need the assistance of the Congress to fully accomplish our purposes.

I am pleased to report that we have nearly completed our study regarding the feasibility of replacing certain aliens in the field with American employees for security purposes, as was proposed by Senator Green and Senator Lodge. We are also developing the estimates of additional cost which such a replacement program would involve. This item may be presented to the Bureau of the Budget in the form of supplemental requests for 1951 and 1952.

The Office of Personnel has been confronted with new problems, particularly in the recruitment and training fields. The task of securing adequate staff for the Department has become more difficult because of the competition for personnel growing out of the mobilization effort. It has also been necessary to step up the training programs for our employees in order to fill the normal turnover requirements. This Office has continued to give direction to a comprehensive placement and manpower utilization program, particularly on the interchangeability of civil-service and Foreign Service employees. In this regard, we have expanded the entire personnel exchange program which permits civil-service employees to be assigned to Foreign Service positions overseas and the collateral assignment of the Foreign Service employees to a departmental post. We feel that there is considerable advantage to the Department in broadening this exchange activity. It enhances the experience of the Department's employees and permits us to assign qualified staff to positions which require special skills. The Foreign Service employees are also given greater first-hand familiarity with conditions here at home.

We are now discussing with the other departments which are affected just how we can improve our entire personnel system to accomplish some of the goals set for us in the Hoover Commission reports.

The Office of Budget and Finance has been carrying a major responsibility in the financial administration of the Department. This office coordinates and prepares the budget estimates for submission to the Budget Bureau and your committee. A new emphasis is being placed on the use of the budget process to measure the efficiency and effectiveness of the operations throughout the Department. We are still in the very early stages of this process. The stresses that have been placed upon the existing staff of the Department have made it essential for the Budget Office to review existing programs and assist in redirecting our resources toward our new defense and mobilization responsibilities. I feel assured that we are not now conducting "business as usual" in any area of the Department. The new Point 4 Technical Cooperation and Mutual Defense Assistance programs, and the expanded International Information program have created many complicated requirements in connection with the financial administration of the Department.

The Division of Finance as well as the Division of Budget is energetically promoting the maximum use of local currency credits. We plan to modify country agreements wherever necessary and set up an orderly, accelerated drawdown procedure which will give us the most favorable use of such credits.

You will be interested to know that by centralizing budget and fiscal operations in the embassies or principal missions of 40 countries throughout the world involving 176 posts, we have been able to improve our reporting and control mechanisms, while at the same time reducing the total number of employees assigned to this work. At present, we are collaborating with the General Accounting Office and the Bureau of the Budget in a complete survey of our accounting and fiscal reporting machinery. Our goal is to secure the maximum efficiency in this field and to make our financial records and reports more responsive in meeting our needs for timely, dependable, and meaningful financial information to guide us in managing the various programs of the Department.

The Office of Operating Facilities, which is responsible for world-wide communications and records, translating service, procurement and supply, and a wide range of other housekeeping services, has also felt the impact of the stepped-up tempo of emergency activities. We are making all possible economies in providing essential services so that we can absorb the increased volume of essential work, insofar as possible. We have reduced our supply inventories to minimum requirements and have established inventory controls over operating supply rooms. We have set rigid screening standards to keep our supply and equipment needs to the lowest level. On communications, the volume of traffic has incraesed up to 30 percent since the Korean crisis. World conditions have resulted in a sharp increase in the telegraphic volume as well as air and surface dispatches. As a result, not only have the costs risen considerably above our budget allocation, but our physical facilities are being heavily taxed.

I am keenly aware that the administrative offices have a significant responsibility for assuring that the programs of the Department are operated effectively, so that a maximum of real accomplishment may be derived from the funds provided by the Congress. We are diligently working to that end. I shall appreciate the continuance of this committee's strong support in furthering this objective.

OUTLINE OF THE ADMINISTRATIVE ORGANIZATION

Mr. HUMELSINE. The general picture in the administrative area is just about the same as it was last year when Mr. Peurifoy appeared before you.

I would like to give you a brief outline of how we are organized, to be followed, if the committee desires, by a discussion of the individual offices.

The first thing I want to cover is the immediate office of the Deputy Under Secretary. That is my immediate office.

The only change we have made that is worthy of comment in this area is that we did transfer the management staff directly to my office. Formerly it was located as a part of the Office of Management and Budget. Right before Mr. Peurifoy departed for Greece we had

a very careful discussion of this particular problem, and in the light of the experience that Mr. Peurifoy had had over the years in running this staff, he agreed that this would probably be a step worth taking. We are making the attempt now to see how it will work out.

In addition to that staff, we have the Director General of Foreign Service. We have the Foreign Service Inspection Corps headquarters. We have the Division of Foreign Reporting Services and the Division of Foreign Buildings Operations.

PERSONNEL FOR THE DIVISION OF FOREIGN BUILDINGS OPERATIONS

Mr. ROONEY. Now, with regard to the Division of Foreign Buildings Operations, it appears that when you testified before us last year you requested 31 positions at a total cost of $134,994?

Mr. HUMELSINE. Yes, that is correct.

Mr. ROONEY. Now you indicate that you have 28 positions at a cost of $134,950, only $44 less?

Mr. HUMELSINE. We are requesting this year 28 positions.

Mr. ROONEY. What is the abacadabra involved in this?

Mr. HUMELSINE. I showed last year a request for 28 positions.

Mr. ROONEY. Last year the request was for 31 positions at $134,994. This year you indicate that you reduced the staff by three, and you are asking for 28 at $134,950.

Mr. HUMELSINE. I show no reduction of three, Mr. Chairman. Mr. ROONEY. You requested 31 positions a year ago at a cost of $134,994?

Mr. HUMELSINE. Yes.

Mr. ROONEY. Now you have 28 at a cost of $134,950?

Mr. HUMELSINE. I will have to ask Mr. Wilber to explain that. Mr. ROONEY. That is practically the same amount of money with three less employees.

Mr. WILBER. I assume, although I do not know the details, that that is an adjustment of the grade structure within the office. Mr. KING. That is correct.

Mr. ROONEY. What do you mean by that?

Mr. KING. There was an adjustment in the higher salary bracket, the technical employees-architects and engineers.

Mr. ROONEY. You mean that you gave them increases by way of upgrading?

Mr. KING. In some cases; in others they were new appointments. Of course, there were adjustments through the year to the staff which were very minor.

Mr. ROONEY. They cannot be so minor, because if you have three less employees you should show more of a reduction than $44.

Mr. KING. I think that it might be better if we give you a statement of where those increases in the higher brackets occurred. Mr. ROONEY. We are very much interested in this subject. Mr. KING. May I submit such a statement for the record? Mr. ROONEY. We understood last year that there were no increases by way of upgrading contemplated.

Mr. KING. One of the positions with which I am familiar at this. time was the filling of the office of assistant chief, which has been vacant. That is a high-salaried position.