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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 McCARRAX. 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. That Office comes under my direction.

Senator McCARRAN. Yes, sir.

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 employees, and we handle about $51,000,000,000 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 MoCARRAN. 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:)

Appropriations for the Department of State
Fiscal year 1911 :
Dplomatic and Consular Appropriation Act, 1911-

$4, 116, 081. 41 Legislative, Executive, and Judicial Appropriation Act, 1911, State Department

387, 000.00 Sundry Civil Appropriation Act, 1911, printing and binding--

37,000.00

Total.

4,540, 081. 41 Fiscal year 1925 : State Department Appropriation Act, 1925

15, 001, 646. 29 Total appropriations :

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

1,039, 550, 617.00 68th Cong., 1st sess., fiscal year 1925.

3, 748, 651, 750.00

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 fiseal 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 Department.

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

you send

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 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

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