2165 of title 42, to permit the Director or any officer, employee, consultant, person detailed from other Government agencies, member of the General Advisory Committee or of any advisory board, contractor, subcontractor, prospective contractor, or prospective subcontractor, or officer or employee of such contractor, subcontractor, prospective contractor, or prospective subcontractor, to have access to Restricted Data which is required in the performance of his duties and so certified by the Director, but only if (1) the Director has determined, in accordance with the established personnel security procedures and standards of the Agency, that permitting such individual to have access to such Restricted Data will not endanger the common defense and security, and (2) the Director finds that the established personnel and other security procedures and standards of the Agency are adequate and in reasonable conformity to the standards established by the Atomic Energy Commission under section 2165 of title 42, including those for interim clearance in subsection (b) thereof. Any individual granted access to such Restricted Data pursuant to this subsection may exchange such data with any individual who (a) is an officer or employee of the Department of Defense, or any department or agency thereof, or a member of the Armed Forces, or an officer or employee of the National Aeronautics and Space Administration, or a contractor or subcontractor of any such department, agency, or armed force, or an officer or employee of any such contractor or subcontractor, and (b) has been authorized to have access to Restricted Data under the provisions of sections 2163 or 2455 of title 42. (c) Any and all of the functions of the Director described in this section may be the subject of an agreement between the Director and the Secretary of State under section 41 (a) of this Act. COMPTROLLER GENERAL AUDIT SEC. 46. No moneys appropriated for the purpose of this Act shall be available for payment under any contract with the Director, negotiated without advertising, except contracts with any foreign government, international organization or any agency thereof, unless such contract includes a clause to the effect that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment, have access to and the right to examine any directly pertinent books, documents, papers, and records of the contractor or any of his subcontractors engaged in the performance of, and involving transactions related to such contracts or subcontracts: Provided, however, That no moneys so appropriated shall be available for payment under such contract which includes any provisions precluding an audit of the General Accounting Office of any transaction under such contract: And provided further, That nothing in this section shall preclude the earlier disposal of contractor and subcontractor records in accordance with records disposal schedules agreed upon between the Director and the General Accounting Office. PRESIDENTIAL AUTHORITY TO TRANSFER CERTAIN FUNCTIONS SEC. 47. The President may transfer to the Director any functions (including powers, duties, activities, facilities, and parts of functions) of any Government agency which relate primarily to disarmament. In connection with any such transfer, the President may provide for appropriate transfer of funds, records, property, and for necessary civilian and military personnel to be made available from the agency from which the transfer is made. USE OF FUNDS SEC. 48. Appropriations made to the Director for the purposes of this Act, and transfers of funds to him by other Government agencies for such purposes, shall be available to him to exercise any authority granted him by this Act, and shall also be available for the following uses to carry out the purposes of this Act: (1) rent of buildings and space in buildings in the District of Columbia: Provided, That to the extent feasible, the Director shall rely upon the General Services Administration for this purpose. (2) administrative expenses incident to carrying out the purposes of this Act, including, without limitation, expenses of printing and binding without regard to the provisions of section 11 of the Act of March 1, 1919 (44 U.S.C. 111); (3) purchase or hire of one passenger motor vehicle for the official use of the Director without regard to the limitations contained in section 78 (c) of title 5 of the United States Code or any other law relating to the purchase or use of Government-owned motor vehicles; (4) entertainment and official courtesies (not to exceed $25,000 in any fiscal year except as may otherwise be provided in an appropriation); (5) expenditures (not to exceed $50,000 in any fiscal year except as may be provided in an appropriation) of a confidential character other than entertainment: Provided, That a certificate of the amount of each such expenditure, the nature of which it is considered inadvisable to specify, shall be made by the Director and every such certificate shall be deemed a sufficient voucher for the amount therein specified; (6) expenses authorized by the Foreign Service Act of 1946, as amended, not otherwise provided for; (7) expenses in connection with travel of personnel outside the United States, including transportation, expenses of dependents, and transportation of personal effects, household goods, and automobiles of such personnel, and including all such expenses when any part of such travel or transportation begins in one fiscal year pursuant to travel orders issued in that fiscal year, notwithstanding the fact that such travel or transportation may not be completed during the same fiscal year; (8) expenditures necessary to make grants for, and to pay expenses incident to, training and study; (9) expenditures in connection with participation in international conferences for the purposes described in section 3 of this Act, including, but not limited to, rental of quarters by contract or otherwise. APPROPRIATIONS SEC. 49. (a) There are hereby authorized to be appropriated to the Agency such sums as may be necessary and appropriate to carry out the purposes of this Act. Sums appropriated pursuant to this section for research development and studies shall remain available until expended. (b) Funds appropriated pursuant to this section may be allocated or transferred to any agency for carrying out the purposes of this Act. Such funds shall be available for obligation and expenditure in accordance with authority granted in this Act, or under authority governing the activities of the agencies to which such funds are allocated or transferred. REPORT TO CONGRESS SEC. 50. The Director shall submit to the President, for transmittal to the Congress, not later than January 31 of each year, a report concerning activities of the Agency. The Director shall include in his report, and shall at such other times as he deems desirable submit to the Congress, such recommendations for additional legislation as he deems necessary or advisable. [Identical letter to Hon. Sam Rayburn, Speaker of the House of Representatives] Hon. LYNDON B. JOHNSON, JUNE 29, 1961. DEAR MR. PRESIDENT: I am transmitting herewith for consideration by the Congress a draft of legislation to carry out the recommendation contained in my May 25 message for the establishment of a strengthened and enlarged disarmament agency to make an intensified effort to develop acceptable political and technical alternatives to the present arms race. Today, ability of man to master his environment threatens to outpace his ability to control himself. The world is more and more interdependent, and the people of the earth can now look beyond this planet to a new age of discovery, but they have not yet been able to banish the primitive threat of war. The ingenuity that has made the weapons of war vastly more destructive should be applied to the development of a system of control of these weapons. But peace cannot be brought about by concentrating solely on measures to control and eliminate weapons. It must also encompass measures to sustain and strengthen international institutions and the rule of law. A disarmament program must take into account the national security, our foreign policy, the relationships of this country to international peacekeeping agencies, including the United Nations, and our domestic, economic, and other policies. It should drive toward the creation of a peaceful world society in which disarmament, except for the forces needed to apply international sanctions, is the accepted condition of international life. For the past 5 months, Mr. John J. McCloy, my adviser on disarmament matters, has been conducting, at my request, an extensive study of the governmental effort and organization necessary to give effect to our national purpose in this field. He has had available to him the results of searching studies by individual Members and committees of the Congress, the agencies of Government principally concerned, national and international organizations and eminent private individuals. During the course of his study, Mr. McCloy has consulted closely with Secretary Rusk, Secretary McNamara, Chairman Seaborg, and other high officials. All of these studies and consultations have inescapably pointed to the conclusion that a new effort, considerably larger than our present effort, in terms of size, range of skills, and authority will be necessary. This can best be accomplished by the creation of a new U.S. agency. Following Mr. McCloy's recommendations, I am therefore proposing that a new U.S. Disarmament Agency for World Peace and Security be established. Enactment of the proposed legislation will permit this agency to deal broadly with the whole range of disarmament matters, including research, policies, and programs. The importance and broad scope of disarmament matters require continuing presidential attention. The complex interrelationships between disarmament activities, foreign affairs, and national security also require that close workinglevel coordination and cooperation be established between the new agency and the Departments of State and Defense, the Atomic Energy Commission, and other agencies. The proposed legislation provides that the Director of the new Agency function under the direction of the President and the Secretary of State. This arrangement will permit coordination of disarmament matters within the purview of the various agencies; it will give special recognition to the need for intermeshing disarmament policies and programs with the broad conduct of foreign affairs; and it will provide a focal point at the highest level of Government for the consideration of disarmament matters. In the light of these unique relationships the Director, as the principal adviser to the President in the disarmament field, will have direct access to him but will, of course, notify the Secretary of State as to the occasion and substance of the advice he offers. In addition, the Director will report to the Secretary of State, without going through intermediate authority, and he will act as the agent of the Secretary of State with authority, under his direction, to act in his name. Also, I intend that he participate in all meetings of the National Security Council having to do with disarmament. I am enclosing a letter from Mr. McCloy describing the legislation in more detail. Sincerely yours, JOHN F. KENNEDY. THE WHITE HOUSE, Washington, D.C., June 23, 1961. MY DEAR MR. PRESIDENT: There is enclosed herewith a draft of a bill to establish a U.S. Disarmament Agency. The bill carries out the recommendation, contained in your special message on urgent national needs dated May 25, 1961, that a strengthened and enlarged disarmament agency be established. The provisions of the bill have been developed in consultation with the agencies principally concerned. The Secretary of State, the Secretary of Defense, the heads of other affected agencies, and I, all concur in these provisions. The purpose of this legislation is to establish such an agency at an authoritative level in the Government with the exceptionally broad competence, functions, and resources required to work toward the objective of a peaceful world society in which disarmament, except for the forces needed to apply inter national sanctions, is the accepted condition of international life. An agency of such far-reaching scope should be able to bring its point of view and recommendations promptly to the highest level of government. The agency should have primary responsibility within the Government for disarmament matters, but there must be close cooperation and coordination with other affected agencies, particularly the Department of State, since a disarmament program must take into account the national security; foreign policy; the relationships of this country to international peace-keeping agencies, including the United Nations; and our domestic economic and other policies. The Secretary of State, the Secretary of Defense, the heads of other affected agencies, and I agree that the performance of these tasks requires the establishment of the new agency which would be created by the enactment of this bill. The draft legislation provides that the Director of this new U.S. Disarmament Agency be under the direction of the President and the Secretary of State. This arrangement recognizes that disarmament considerations are so all-pervasive in scope and importance that the President must concern himself with these matters on a continuing basis. It also recognizes the fact that disarmament policies, negotiations, and programs must be very closely coordinated with State Department activities and responsibilities. Appropriate provision is also made for coordination and cooperation with other affected agencies such as the Department of Defense and the Atomic Energy Commission. The bill vests the Director with primary responsibility for all U.S. disarmament activities. The Agency would, in addition, participate in or contribute to the formulation of overall policy in areas importantly related to or affecting disarmament such as basic national security policies, strengthening of the peace-maintaining machinery of international institutions, and procedures for the settlement of international disputes and the reduction of tensions among nations. In addition to providing a focal point for the integration of the Government's overall efforts in disarmament, establishment of the U.S. Disarmament Agency by enactment of the bill will make possible the necessary augmentation and coordination of the various programs of research and development already being conducted by other agencies of the Government. When it appears that projects now assigned to other agencies would be more effectively performed if made the responsibility of the new Agency, they would be transferred at the direction of the President. The new Agency would be authorized and directed by the bill to develop and conduct broad programs of research, development, and study relating to disarmament. It would utilize private or public institutions or its own facilities for this purpose. It would take the lead in the acquisition of a fund of theoretical and practical knowledge in the disarmament field. This responsibility would encompass the scientific and technical assessment of all aspects of arms control, including detection, identification, inspection, monitoring, limitation, reduction, and control of Armed Forces and armaments, and the development and testing of weapons. The Agency would also be responsible for studies of the structure and operation of international organizations and the methods of maintaining peace and security during different stages of disarmament. It would analyze the economic and political consequences of disarmament and would be responsible for assessing the implications of foreign and military policies of the United States as they relate to possible disarmament measures. In the conduct of research and development programs by the new Agency, full use would be made of the resources of other agencies of the Government, as well as of outside facilities and personnel. The research and planning done by the new Agency would provide the basis for recommendations, appropriately coordinated with other agencies with affected responsibilities, for the President, the Secretary of State, and the heads of other agencies. Under the bill, the Director would be responsible for conducting negotiations based on approved policy, under the direction of the Secretary of State. Such negotiations may take the form of formal conferences or informal communications through regular diplomatic missions. It is essential that in this country and throughout the world the public be kept fully informed of U.S. disarmament policy. The Director would work closely with the U.S. Information Agency to assure that its broadcasts and other information programs properly reflect our disarmament policy. Tasks of inspection and control will fall upon the shoulders of any government participating in a disarmament treaty. The bill contemplates that the planning of U.S. participation in any agreed upon inspection and control system would be done by the Agency. The nature and extent of any such systems are as yet unclear, but the Agency would be expected to play the primary U.S. role in developing and, as appropriate, directing U.S. participation in such arrangements as might result from disarmament activities. To assist in the discharge of the various responsibilities assigned to the Agency, the bill provides for the appointment of an advisory committee of outstanding citizens to advise the Director on such matters as he might request. The exact nature of the skills or organization required to perform the tasks envisaged for the Agency cannot be clearly foreseen at this time. Therefore the maximum amount of flexibility consistent with responsible direction is provided by the bill to permit recruitment by the Agency of high caliber personnel, and to permit the establishment of internal arrangements adequate to meet changing requirements. In conclusion, I must stress that organization, machinery and competent people alone cannot guarantee the success of the mission of our country to prevent war, curb the arms race, and create lasting conditions of peace. But they can assure that the best effort of which we are capable is directed toward these ends. Respectfully, Hon. J. W. FULBRIGHT, Chairman, Senate Foreign Relations Committee, U.S. Senate. JOHN J. MCCLOY. AUGUST 2, 1961. DEAR SENATOR FULBRIGHT: As you know, the President some time ago asked me to act as his Adviser on Disarmament policy for the Nation; and in that connection, he asked me to give him my recommendations as to what type of organization should be set up in the Government to deal with this important subject. I have endeavored to fulfill this mission and have generally advised the President in respect of our test ban negotiations which are being currently conducted in Geneva and also our policy in connection with more comprehensive disarmament measures. As for the second part of my mission-that is, to advise him as to the type of organization which should deal with this problem, I have, after much thought and consultation with people knowledgeable in this area, recommended to him the setting up of an Agency reporting to the Secretary of State but with separate statutory authority to deal with problems of disarmament. Prior to making this recommendation, I naturally consulted with the Secretary of State, the Secretary of Defense, and the Chairman of the Atomic Energy Commission, as well as with a number of other Government and private officials. I also consulted with the Director of the Bureau of the Budget and with the President himself. The result is embodied in S. 2180 sent to the Congress by the President on June 29, 1961, with an accompanying message. Although there were many who pressed the advisability of an entirely separate agency reporting directly to the President, I came to the conclusion that there were so many aspects of foreign relations involved in the formulation of the negotiation of our disarmament policy that it was much more advisable to have the Director of the Agency, although given statutory authority, report to the Secretary of State with right of access to the President upon notification to the Secretary of State. On the other hand, there were so many other aspects of disarmament which affected other departments of the Government it was felt that an agency should not be merely another bureau or division of the State Department. This, together with the consideration that the Agency would be engaged in rather extensive operations dealing with control and inspection systems, led to the semiautonomous character of the Agency which the bill provides. It should have a separate budget and should transmit annual reports to Congress. My experience over the last 6 months has made me feel that the interests of the country in this field cannot be properly served without an agency fully equipped to formulate, carry out, and give the necessary continuity to the Government's policy toward disarmament. The questions relating to disarmament policy and its implementation are bound to demand the attention of the top officials of the Government. The means by which we can avoid both a debilitating and dangerous arms race and the occurrence of war itself has become one of the |