Senator FERGUSON. Was she under investigation as a security risk when she resigned?

Mr. HUMELSINE. Yes, sir.

Senator FERGUSON. And after she resigned with a cloud over her she could go to the United Nations and get a job and they did not even contact your Department?

Mr. HUMELSINE. No, sir; they did not.

Senator FERGUSON. Do you know that she was denied a passport

in 1947?

Mr. HUMELSINE. I am sure that she was, because we wouldn't give her a passport.

Senator FERGUSON. You would not give her a passport?

Mr. HUMELSINE. That is correct.

Senator FERGUSON. And it was because she was a security risk that you would not give her a passport?

Mr. HUMELSINE. That is right.

Senator MCCARRAN. Of what country was she a citizen?

Mr. HUMELSINE. She is an American citizen.

Senator FERGUSON. To what country did she want to go!

Mr. HUMELSINE. To Japan.

Senator FERGUSON. That was in 1947?

Mr. HUMELSINE. Yes, sir.

Senator FERGUSON. Then, as an American citizen she could go to the United Nations and get a job?

Mr. HUMELSINE. Not on the American mission, or as a United States Government employee. We do not have any responsibility as to the hiring by the United Nations organization.

Senator ELLENDER. By whom was she employed in the United Nations?

Mr. HUMELSINE. She was employed as an editorial clerk in the Secretariat, under Mr. Trygve Lie. He personally didn't hire her, but she was employed in some part of the United Nations Secretariat. Senator ELLENDER. But it was not as a part of our group? Mr. HUMELSINE. It had nothing to do with us.

Senator FERGUSON. That is what I am interested in, that is, as to how that is done. We get a lot of complaints about people transferring from the State Department to the United Nations when they are security risks in the State Department. They can leave and get a job without being checked in the United Nations.

Senator ELLENDER. But this job was not under Senator Austin?
Mr. HUMELSINE. No; nothing to do with that.

Senator FERGUSON. I am not talking about Austin.

Senator ELLENDER. I know, but I was talking about the fact that the United Nations employs not only Americans but people from all

countries.

Mr. HUMELSINE. They employ a lot of Communists.
Senator ELLENDER. Sure they do.

THE UN AS AN AVENUE FOR COMMUNIST INFILTRATION

Senator MCCARRAN. It is the greatest avenue for Communists to get into this country that we have today. They come here under diplomatic immunity, if you please and go into the employ of the United Nations.

Mr. HUMELSINE. That is one of the things that had to be considered and should have been considered at the time the United Nations was located here.

Senator FERGUSON. Who is at the head of employment in the United Nations?

Mr. HUMELSINE. I don't know. I believe it would be the Assistant Secretary General, Mr. Byron Price, who is the Assistant Secretary General for Administration.

Senator FERGUSON. I can see why Russia would insist on having their agents in the United Nations. I would think that when we are putting on an American we should check up on the question of the security of an American because otherwise we are apt to have everybody in the United Nations a Communist and we would have no representation.

Mr. HUMELSINE. They do not consult us on any individuals they hire.

Incidentally, Mary Jane Keeney is no longer working for the United Nations.

Senator FERGUSON. When did she quit?

Mr. HUMELSINE. January 27, 1951.

Senator FERGUSON. Do you know what she is working at now? Mr. HUMELSINE. I don't know but I imagine that she is either in private industry or working as a housewife, or something like that. Senator FERGUSON. By the way, I understand she was suspended up there, with pay. Do you know anything about that?

Mr. HUMELSINE. No, sir; I don't know anything about that.
Senator FERGUSON. Do you know why it would be with pay?
Senator MCCARRAN. Suspended with pay?

Senator FERGUSON. Yes.

Mr. HUMELSINE. I don't know. That would be their own problem. Senator FERGUSON. When did you hear that she had been discharged or had been laid off?

Mr. HUMELSINE. We checked into it because of a communication from Senator Mundt, which I don't believe we have replied to, but which is ready to go out. We found that out and we are checking up for Senator Mundt.

Senator FERGUSON. Can you find out for us, since we are paying part of the expenses of the United Nations, whether or not she has been suspended with pay?

Mr. HUMELSINE. We will be glad to do that.

Senator FERGUSON. And would you see if you can ascertain the cause of the suspension, if you can?

Mr. HUMELSINE. Yes, sir; we will be glad to get that. (The information requested is as follows:)

MARY JANE KEENEY

Mary Jane Keeney's employment by the United Nations was terminated January 27, 1951, and she has received no pay since that date. She was given notice of this termination on December 27, 1950, at which time she was suspended with pay and continued in that status until the effective date of her termination on January 27, 1951. Although her attorneys have attributed her discharge to political reasons, the Secretary General in discharging her stated that in his judgment she "did not reach the high standards contemplated by the Charter." The Department of State does not consider that it could appropriately inquire into the case in detail or into the exercise by the Secretary General of his discretion, as articles 100 and 101 of the Charter clearly vest this responsibility in him.

Senator FERGUSON. That is all I have. Senator MCCARRAN. I want to say with reference to Edith Cameron Wall that this committee received a letter some time ago with reference to her, and the letter was turned over to the Internal Security committee of the Judiciary Committee of the Senate. I have not been able to check into it lately, but they are working on it.

Mr. HUMELSINE. I understand they have been talking to us about it, Senator.

Senator MCCARRAN. Are there any further questions along this line?

Senator FERGUSON. No; thank you very much.

OFFICE OF BUDGET AND FINANCE

AMOUNT REQUESTED

Senator MCCARRAN. The Office of Budget and Finance is requesting an appropriation of $1,083,890, a decrease of $9,520 under your current-year appropriation. You expect to have an employment of 253 employees. Will you give us your justification for this item? I might say that this is the first decrease that I have run into. Mr. HUMELSINE. In the Office of Personnel there was a decrease of two, Senator.

Senator MCCARRAN. Mr. Wilber, do you want to discuss this? Mr. WILBER. Yes, Mr. Chairman: I will be glad to. comes under my direction.

Senator MCCARRAN. Yes, sir.

That Office

Mr. WILBER. It involves all of the budget and fiscal operations of the Department.

We are asking for three less people this next year, which is brought about by improving our procedures in the Finance Division.

COMPOSITION OF OFFICE

The Budget Office itself is made up of 38 positions, and for the Division of Finance we are requesting 199 positions. That Office handles all of the payroll, the auditing of all vouchers, the payment of all bills, the preparation of all financial reports, and the maintenance of appropriation controls. On the other hand, the Division of Budget is responsible for the preparation of budget estimates, such as you have before you.

Senator ELLENDER. Is that for both foreign and domestic employees? Mr. WILBER. Both foreign and domestic, yes, sir.

Chairman MCKELLAR. I see that you have 38 in the Division of Budget.

Mr. WILBER. That is correct, Mr. Chairman.

Chairman MCKELLAR. Does it take that many to prepare a budget for you?

Mr. WILBER. Well, the preparation of these estimates is not a onetime problem. Actually, we are also responsible for the administration and execution of the budget as well as for the preparation of the material that comes to the Congress.

Chairman McKELLAR. To just give you an illustration by way of comparison, the Appropriations Committee of the Senate has 15 em

ployees, and we handle about $54,000,000,000 a year. I don't see what you can find for 38 people in the Budget to do.

Are they allowed to sit around?

Mr. WILBER. No, sir.

Chairman MCKELLAR. What do they do in preparing a budget of this kind, a budget of $1,083,890?

Mr. WILBER. We are responsible for all appropriations of the Department, which total $283,000,000.

Chairman MCKELLAR. $283,000,000, and you are responsible for it? Mr. WILBER. Yes, sir.

Chairman MCKELLAR. I believe the budget is over in other items here. There are budget items here in various of these divisions.

Mr. WILBER. Of course, each bureau, office, and division is responsible for the day-to-day administration of its own particular program. Chairman MCKELLAR. Yes; I understand that. In a sort of general way, they are responsible for the entire budget. Here is a budget of $1,083,890, and it takes 38 people to manage the budget for that many dollars.

Mr. WILBER. I am not making myself clear, Mr. Chairman.
Chairman MCKELLAR. No, sir; you are not.

Mr. WILBER. Of this amount of $1,083,890, the major part is for the Division of Finance, $781,035. The amount of the work devoted to budget purposes only amounts to $223,355. We are responsible for the entire budget and fiscal administration of the Department, which aggregates $280,000,000, exclusive of foreign aid.

Chairman MCKELLAR. I believe I said that various divisions had their budgets. We have had evidence about them here, and they are just as responsible as you are; are they not?

Mr. WILBER. They are responsible for the day-to-day administration of their programs, Mr. Chairman, but we are responsible for reviewing their estimates, approving financial plans, and for seeing that they conduct their budget and fiscal affairs efficiently. We are responsible to Mr. Humelsine for effective administration of the Department in all areas.

Chairman MCKELLAR. Now, I am going to ask you again to take these three items of $79,500, $223,355, and $781,035, making a total of $1,083,890 and I want to congratulate you for making a saving of $9,520 but I would like to have you see where you can cut some more and have you tell us where would be the best places to apply those cuts, because I am convinced from your testimony that you do not need all of this money. I am a busy man; but if I have an opportunity, I am going to come up there and see what your employees do. Mr. WILBER. We will be delighted to have you, Mr. Chairman. Mr. HUMELSINE. I do not know of anything I would sooner do than to have you take a tour through the Department, particularly through this office. I would certainly like to have you do that sometime.

TOTAL APPROPRIATION REQUESTED

Chairman McKELLAR. Mr. Smith has brought me some figures.
Do you recall what the entire amount is that has been asked for?
Mr. WILBER. It is slightly over $283,000,000.

INDIVIDUAL BUDGETS

Senator MCCARRAN. How many budgets have you in the Department of State?

Mr. WILBER. How many individual appropriations?

Senator MCCARRAN. Yes.

Mr. WILBER. It runs around 15, exclusive of the foreign-aid items. Senator MCCARRAN. It is my understanding that you have supervisory obligations on each one of these divisions?

Mr. WILBER. That is correct.

Senator MCCARRAN. That is, on the money expended?

Mr. WILBER. That is correct; sir.

Senator MCCARRAN. And you have men who go out of your Office and into these various divisions to inspect financial operations all of the time?

Mr. WILBER. That is correct. That is exactly right, Mr. Chairman. Senator MCCARRAN. I also understand that you are one who is constantly looking for avenues of economy by means of which your work can be carried out more economically and with less expense?

Mr. WILBER. Very definitely that is true, Mr. Chairman.

Senator MCCARRAN. That is the advice which I get from members of my staff.

Chairman MCKELLAR. I am glad to hear that. I want you to take these items and go over them very carefully.

In connection with that, I want to give you a few figures. The State Department Appropriation Act for 1911 amounted to $4,116,081.41. The act for 1925 amounted to $15,001,646.29.

Senator MCCARRAN. We did not have the Voice of America then. Chairman MCKELLAR. No, sir. The Voice of America was not envisioned in 1925.

The total appropriations in 1911, the year I came here, amounted to $1,039,550,617, and the over-all appropriations of the Government for the fiscal year 1925 amounted to $3,748,651,750.

When we find all of these agencies bringing in budget estimates for every department and in such large amounts, I am just shocked at it. I would like you to take these figures and see if we can cut them. Mr. WILBER. I will be glad to do that, Mr. Chairman.

Chairman MCKELLAR. I would like to have this document giving the figures I have mentioned inserted in the record. (The document referred to is as follows:)

Fiscal year 1911:

Appropriations for the Department of State

Dplomatic and Consular Appropriation Act, 1911
Legislative, Executive, and Judicial Appropriation Act, 1911,
State Department..

Sundry Civil Appropriation Act, 1911, printing and bind-
ing

Total_

Fiscal year 1925:

State Department Appropriation Act, 1925_

Total appropriations:

61st Cong., 1st sess. and 2d sess., fiscal year 1911 and prior fiscal years--

68th Cong., 1st sess., fiscal year 1925–

$4, 116, 081. 41

387, 000. 00 37,000.00

4,540, 081. 41

15, 001, 646. 29

1,039, 550, 617. 00 3,748, 651, 750.00