Senator MCCARRAN. Senator, there is one observation I would like to make as we go along here.

Chairman MCKELLAR. Certainly.

Senator MCCARRAN. You have been here a long time, and during the last 18 years I think we have had probably 15 or 20 reorganization bills set up for the purpose of economizing.

Chairman MCKELLAR. And every one of them cost money.

Senator MCCARRAN. And I never saw one that economized to the extent of a dollar. If anyone can show me one that did, I would be glad to admit that.

Chairman MCKELLAR. I would ask Mr. Humelsine and Mr. Wilber if they can find such a case to let us know.

Senator MCCARRAN. Do not waste your time.

Mr. WILBER. It would be very difficult.

OFFICE OF OPERATING FACILITIES

AMOUNT REQUESTED

Senator MCCARRAN. The next item for consideration is the "Office of Operating Facilities," which is requesting $3,962,814, the same as the amount available for this purpose during the current fiscal year.

You have 1,118 employees, and hope to have the same number next year. What functions are performed in this office and why does it require over 1,100 employees to perform them?

Mr. Wright, we will be glad to hear from you.

Mr. WRIGHT. The Office of Operating Facilities is composed of four divisions in the Department of State at Washington and the New York division, known as the New York Administrative Office.

SCOPE OF OFFICE

The divisions are as follows: The Division of Communications and Records; the Division of Central Services; the Division of Language Services; the Division of Cryptography; and the New York Administrative Office.

Senator MCCARRAN. Will you take each one of those offices separately and tell us what you do there?

Mr. WRIGHT. The Office of the Director, sir, has the staff people that administer these five divisions of the Department of State.

Chairman McKELLAR. What do they do? Here is the Office of Operating Facilities. What do you call operating facilities and what do you and your employees do?

Mr. WRIGHT. I would like to take them a division at a time.

Senator MCCARRAN. Take a division at a time if you will, please, Mr. Wright.

DIVISION OF CENTRAL SERVICES

Mr. WRIGHT. The Division of Central Services provided telephone communications, duplicating and graphic services, space for personnel, and the storage of supplies and equipment in Washington. It provides supplies and equipment, transportation of personnel and freight for both the foreign and domestic operations of the Depart

ment.

It is the objective of this Division to improve the effectiveness and to reduce the cost of furnishing these services to the Department by, first, conducting surveys and analyses of the procurement and supply system; secondly, by developing and maintaining a comprehensive property-management program for the Department and the foreign posts; and, thirdly, by conducting studies of all other operations, to determine that equipment, space, duplicating processes, and so forth, are being properly utilized.

DIVISION OF COMMUNICATIONS AND RECORDS

The Division of Communications and Records was reorganized during the fiscal year 1950 to better fulfill its responsibilities for World War communications and records functions.

Comprehensive analyses of existing facilities and practices showed the way to effective realinements in the field.

Senator MCCARRAN. Somewhere along the discussions, will you take one item and bring it out in relief and make it clear? Take one communications item, for example.

Mr. WRIGHT. On the matter of communications, we have telephonic communications as well as telegraphic communications; our telegraphic communications are coded communications on a world-wide basis, by which we communicate with all of the foreign posts throughout the world.

Senator MCCARRAN. All right. Now, right there just take one illustration, please, and high light it and let us see what you do with it. Let us say a wire cable is sent to you from some place, or that you send a cable.

Mr. WRIGHT. Yes. A cable is received from London on a policy matter going into the Department of State. That cable is received in code. It has to be decoded and put into normal English text. Senator MCCARRAN. Is that done in your office?

Mr. WRIGHT. That is done in my office in the Division of Communications and Records.

Then at that point the cable must be studied to determine who shall receive copies of it, that is, information copies. Then a plate must be made so that we can reproduce this particular cable. The cable may be a 10-page cable, sir.

The plate is made and it must be run through a reproduction machine. The pages must be assembled. It must go into our messenger system then, which is part of the Division of Communications and Records.

Then these particular copies of this cable are sent to the various parts of the Department of State. Certain ones are marked for action; others are marked for information. These are sent to the various interested bodies.

The action office may, in turn, be required to make a reply to London. That may require some clearances which are arranged through the messenger service that we run. A cable may finally be cleared and be on its way back to London, at which time it must be put into code in our code room in the telegraphic section. It must be sent on the wires and go back to London as a reply to the London Embassy on this problem. Now, we are not through with the job at that point, be

80513-51-pt. 1-74

cause copies must also be made for distribution here in the Department of State to the interested parties, showing what the final copy of the cable was, what the wording was that went back to London.

Now, in the Division of Communications and Records, you find that we have there 570 employees. That, of course, includes messengers, people who run duplicating machines, people who run cryptographic machines, incrypters and decrypters, and the various other employees who make up the mechanics who work on a 24-hour-a-day basis, 7 days a week, sir.

Senator MCCARRAN. A 24-hour-a-day basis?

Mr. WRIGHT. Yes, sir. We run night and day every day of the week.

Senator MCCARRAN. Every day of the week?

Mr. WRIGHT. Yes, sir.

Senator MCCARRAN. All right.

Mr. HUMELSINE. Mr. Chairman, this is one of the divisions I am most proud of. I ran an operation similar to this during the war. and they run a lot more efficient division in the Department of State than we did at the height of the war with all the facilities that we had. They have done, I think, a splendid job.

Chairman MCKELLAR. What does the New York Administrative Office do with 31 employees?

NEW YORK ADMINISTRATIVE OFFICE

Mr. WRIGHT. The Administrative Office, sir. I believe you are speaking of, is the Office of the Director.

Chairman MCKELLAR. I am referring to the New York Administrative Office.

Mr. WRIGHT. Yes, sir; that is in New York.

Senator MCCARRAN. There you are asking for $89,512. What do they do?

Mr. WRIGHT. Those are the people who supply administrative serv ices to all the Department of State personnel who are employed in New York City. They recruit personnel. They see that they are properly paid. They provide telephone service and space service and all of the various housekeeping facilities for Department of Stare employees in New York.

Senator MCCARRAN. Are they housed in certain buildings of their own in New York?

Mr. WRIGHT. They are in a group of buildings, Senator.

OFFICE OF VOICE OF AMERICA

Mr. HUMELSINE. Senator, one of the main things in New York is the Voice of America. Practically the whole operation of the Vo of America is located there. It has over 2,000 people.

Senator MCCARRAN. Is the Voice of America involved in this New York Administrative Office which Mr. Wright is discussing?

Mr. HUMELSINE. They are providing the administrative supp for that.

Senator MCCARRAN. All right. I want to go back and then come down.

DIVISION OF LANGUAGE SERVICES

You have discussed the Division of the Communications and Records. We come next to the Division of Language Services, central program services.

Mr. WRIGHT. The Division of Language Services performs two functions. They do interpreting and translating.

We do interpreting for all international concerences that are run by the Department of State. We provide interpreters for the White House. We do translating work for the Department of State. That is the translating of these documents that come in in foreign languages. We also do the translating work for the White House.

This Division does nothing but perform a language service because we are dealing with people who either speak or write foreign languages.

Senator MCCARRAN. How many have you employed?

Mr. WRIGHT. We have 48 employees there, Senator.

Senator MCCARRAN. What is the Division of Cryptography?

Mr. WRIGHT. Yes; I will come to that. Incidentally, I might add that we work in all of the major languages spoken in the world today either by having people on our payroll or people who are cleared securitywise who are available on a contract basis.

DIVISION OF CRYPTOGRAPHY

The Division of Cryptography is the Division that is responsible for the security of the codes of the Department of State, so that communications with our foreign posts can be carried on in a secure manner, without our messages being read by interlopers.

Mr. HUMELSINE. They actually make up the codes, so that we have secure codes. I might say that the head of this Division was one of the best experts the Navy produced, Captain Park. He retired from the Navy and we hired him to take over this job.

I think you will recall, Senator, that there was a lot of criticism of State Department codes back in World War II. They said that you could get a book at the corner drug store that would enable you to break any State Department code.

We have taken a lot of interest in this and we feel that we have a security code, as secure as there is in the world.

Senator MCKELLAR. I want to congratulate you on not asking for more money than you asked for last year, but again I want to call your attention to the fact that our Chief Executive, President Truman, after these estimates were made up a year ago, according to your evidence, has asked for reductions in nonwar expenses. I want you to go over these six items, and give us information as to where we can make cuts. Give us the best places where cuts could be made. Mr. WRIGHT. I will try to do that, sir.

FURTHER DISCUSSION ON NEW YORK ADMINISTRATIVE OFFICE

Senator MCCARRAN. All right. We go now to the New York Administrative Office.

Your explanation of that isn't quite clear to me unless we deal with the Voice of America. Unless we put this Division into that in New York, I do not see why this Division should be in New York.

Mr. HUMELSINE. Let me try to clear that up, if I may.

Senator MCCARRAN. All right.

Mr. HUMELSINE. We do not allow the Voice of America to hire their own personnel privately. I mean that all of the personnel for the Voice of America is hired centrally through the Department. Inasmuch as the bulk of this operation is located in New York, we have a small branch personnel office there that is part of this number, which office clears all of these people. They do all of the work incident to putting them on the Voice of America payroll.

Senator MCCARRAN. In other words. you clear them for security purposes?

Mr. HUMELSINE. Yes, sir.

Senator MCCARRAN. You clear all employees of the Voice of America?

Mr. HUMELSINE. Yes, sir. That includes not only clearance from a security standpoint, but as to whether or not they have qualifications for the particular job.

Senator ELLENDER. Why could that not be done just as well in Washington? Is it necessary to have the office there and to pay rent and everything else in New York?

Mr. HUMELSINE. Well, it would actually be true, on the basis of the records, that it would be more expensive to have the office in Washington, because we would have to have people come down here for interviews and you would have a lot of running back and forth where rightfully these people are in New York.

Senator ELLENDER. Are those people employed locally?

Mr. HUMELSINE. A great many of them come out of this particular area; yes, sir.

Chairman MCKELLAR. Are they civil-service employees?

Mr. HUMELSINE. Yes, sir; all of them are civil-service employees.

TOTAL PERSONNEL OF VOICE OF AMERICA

Senator MCCARRAN. We will get into this later, but can you state how many people are employed by the Voice of America?

Mr. HUMELSINE. It is over 2,000.

Mr. WILBER. It is a total of 2,500 in New York.

Senator MCCARRAN. I do not want to touch on that now. I do not like to listen to it even, but I know we are coming to it pretty

soon.

Mr. WILBER. The number there now, Mr. Chairman, is 2,070 for this year.

Chairman MCKELLAR. For the Voice of America there are 2,070 employees?

Mr. WILBER. That is right, Mr. Chairman.

Senator MCCARRAN. And this Administrative Office, the New York Administrative Office, passes on those 2,070 employees?

Mr. HUMELSINE. It does more than that. It takes care of the administration and personnel and all the various things for that group. We have a passport agency in New York: we have a branch of our Security Office in New York; we have all the shipping that goes out of New York for all of our overseas posts. All of those things are done in New York.