they allowed to send copies directly to you of the recommendations or any papers they submit to the Ambassador over there?

Mr. BEHRMAN. No, sir. They would still have to have clearance on cables which now require the clearance of Ambassadors. There are some cables which they send directly on commercial matters over their own signature.

Senator THURMOND. Suppose a representative of the Commerce Department felt those with the State Department were hampering their efforts with regard to trade and hampering their efforts with regard to encouraging private enterprise, or in some other way, how would that information ever get to you people back here in the Commerce Department?

Mr. BEHRMAN. We have two ways of getting that information. One, we are instituting or have already carried out two regional conferences with commercial officers, in which I myself, having gone out, Assistant Secretary Ruder went with us at one instance, and talked with the people, privately, and fully, and any problems they have in terms of the subject matter with which they deal or their ability to get communications through to us, are surfaced at these discussions.

Senator THURMOND. As I understand, they can't get them through to you, only what the Ambassador approves.

Mr. BEHRMAN. On a written form. privately

But when we talk with them

Senator THURMOND. You can't go to 80 or 90 countries and keep up with all of these people.

Mr. BEHRMAN. No, sir; we don't intend to.

Seantor THURMOND. How would you get the information then from your people in these different foreign countries, regularly, that you ought to have, of what they recommend, which the State Department may have turned down.

Mr. BEHRMAN. The other way in which we will do it, is by having continuing contact on a personal basis, our desk officers, and the commercial officers.

Senator THURMOND. You mean you can pick up the telephone and call them?

Mr. BEHRMAN. We certainly can, if necessary.
Senator THURMOND. And they can call you?

Mr. BEHRMAN. They can.

Senator THURMOND. So although they are not allowed to transmit their opinions and recommendations back to you, of what they have recommended to the State Department over there

Mr. BEHRMAN. In an official fashion.

Senator THURMOND. They can pick up their telephones and call you and give you that information, is that correct?

Mr. BEHRMAN. If it was that important; yes, sir.

Senator THURMOND. At least that is some consolation.

Mr. BEHRMAN. We also have this procedure, Senator, and that is we ourselves will initiate requests for activities which have not been coming out of the posts, for example, that we think are important and that may get stopped at State, saying this is not appropriate, to request the commercial officer to do that, in which case then we carry it to a higher level; that is, I will call Assistant Secretary Martin, we will

discuss the matter, get it cleared away and we have had no difficulty so far at this level of getting the appropriate cooperation from the State Department.

Senator THURMOND. Now I want to ask you this.

With regard to investments by private enterprise in other countries, does that fall within your sphere of activity?

Mr. BEHRMAN. Yes, sir.

Senator THURMOND. Is it going to be your policy to encourage private investment in these underdeveloped and other countries abroad?

Mr. BEHRMAN. In the underdeveloped countries particularly; yes, sir. We have, in fact, in our regular organization established an Office of International Investment, because we have felt that the aid program can be effective in the long run only if private enterprise takes over in the development of these countries. Private enterprise has not been leaned on sufficiently, in our opinion. We have a very small office, which will have the role of attempting to gain for private enterprise a greater opportunity in the development programs of these countries and also to explain to private enterprise in the United States the opportunities which exist abroad.

Senator THURMOND. You have the choice of seeing private enterprise develop or having funds provided for governmental activity. Which would you choose?

Mr. BEHRMAN. I think they are in the present circumstances not wholly alternative. There are some things in the less-developed countries which require governmental assistance to build a foundation for private enterprise. My fear is that we may build a foundation and leave it there, without building the structure of private enterprise activity, which is necessary to get the right kind of growth. My hope is that we will be able to take it off-the aid part having built the foundation-and the superstructure be built by private enterprise. Senator THURMOND. In other words, you are laying the groundwork for private enterprise in foreign countries though? Mr. BEHRMAN. This is my hope and objective.

Senator THURMOND. And are not encouraging foreign aid to do things that private enterprise might do, if foreign aid will stay out? Mr. BEHRMAN. On the contrary, it is called to the attention of my people repeatedly, where there is opportunity that I think private enterprise could work into, to make sure this is represented both to the aid agency and to the private enterprise.

Senator THURMOND. Are you familiar with this new textile agreement that has been drawn up?

Mr. BEHRMAN. I have read it. I was not in on the negotiations. Senator THURMOND. Will the enforcement of that fall into your activity?

Mr. BEHRMAN. This will be done through a textile committee, called GATT. We have not within our own Department decided where our representation should be.

The negotiations, handling of these negotiations, has been under Assistant Secretary Price for since the beginning of the discussions and it is logical that the textile division will continue to handle administrative matters.

The CHAIRMAN. The Chairman wants to say here that I hope you will read the reports made by our Subcommittee on Textiles, so you will have a background, because indirectly you will be involved in it and it is my opinion if it had not been for the insistance and the work done by this subcommittee, Senator Thurmond, Senator Pastore, and Senator Cotton, that this textile agreement would have never come into being. I think people ought to know that this was a long, persistent hard line that they kept on and finally got something, not always something we like, but something.

Senator THURMOND. On that point I would like to compliment the chairman of this committee for appointing this textile subcommittee and showing his interest in this important industry, which according to the Defense Department, ranked second only to steel in the matter of national defense.

The CHAIRMAN. Thank you.

Senator THURMOND. Now, what is your relation to Mr. Price? Now his title is what, and your title?

Mr. BEHRMAN. His title is Assistant Secretary for Domestic Affairs.
Senator THURMOND. And yours is for International Affairs?
Mr. BEHRMAN. Yes.

Senator THURMOND. But you will be working closely with him and have a very close liaison with him on these questions, will you not? Mr. BEHRMAN. We are in constant touch, Senator.

Senator THURMOND. And you are interested, of course, not only in our textile industry, but in other industries in this country, too. Mr. BEHRMAN. Yes, sir.

Senator THURMOND. And you will do what you can to help preserve them and not allow them to be destroyed by excessive foreign imports, I presume?

Mr. BEHRMAN. Our objective is economic growth of the United States, sir.

Senator THURMOND. I am glad to hear you say that.

Thank you very much.

The CHAIRMAN. Without objection, we will put into the record at this point information concerning communication channels available to commercial attachés.

The matter referred to follows:)

The commercial attachés in almost every post report to an Economic Officer or Economic Minister who in turn reports generally directly to the Ambassador. Therefore, the work assignments of the commercial officers are determined by the requirements of each post, which in turn are coordinated with the desk officers in the State Department. The Department of Commerce has the opportunity to request specific work of the commercial officers, which is programed into their workload at the post. Attached is a statement on the channels of communications showing the flow of materials from the post into the Department of Commerce.

COMMERCIAL ATTACHÉ COMMUNICATION CHANNELS

By definition, most communications from commercial attachés concern matters relating to the promotion of trade, travel, investment, services to business, and commercial reporting. All such "commercial" communications go to the Department of Commerce for action, with only minimal handling in the Department of State required to transmit the communication to Commerce. The communications take two forms: those transmitted in their original form directly to Commerce; those requiring reproduction in State for distribution purposes.

A. Commercial communications not requiring reproduction

1. Includes trade letters, all reports on prescribed forms (WTD's trade lists, export-import opportunities) and invitations to bid reported by operation memorandum.

2. All such communications are sent by pouch from the posts in envelopes addressed to Commerce, except when included with other materials for operational convenience. On arrival in State's mailroom, they are transferred directly to Commerce, envelopes are not opened in State. Commerce messenger service picks up messages at State mailroom.

B. Commercial communications requiring reproduction

1. Includes telegrams, airgrams, dispatches.

2. Covers all normal commercial reporting (market surveys, trade contact surveys, trade opportunities of urgent character or requiring more information than form 476 permits, trade mission, and trade fair activity. All commercial messages not covered by A-1 above).

3. Mechanics of reproducing and distributing are explained in attachment A. 4. Messages relating to the export expansion program are captioned "Export." In the case of telegrams and airgrams this flags distribution in Washington, with Commerce getting action copy. In the case of export dispatches, all posts are under instructions to type an extra advance flimsy copy which the post sends in a separate envelope (i.e., apart from the original dispatch from which a mat and reproduced copies are obtained), and which is transmitted directly to Commerce upon arrival in State's mailroom, thus avoiding any possible delays caused by reproduction and distribution. Commerce receives an appropriate number of copies when the dispatch is reproduced.

C. Other commercial attaché reporting

1. Communications of a nature broader than strictly commercial (i.e. general economic reports, commodity and industry reports) which are generally prepared by economic officers, but to which the commercial attaché may contribute or in some cases prepare, are reproduced and distributed by State, with the primary agency at interest receiving the action copy, and other appropriate agencies reveiving information copies.

D. Relationship between Bureau of Economic Affairs, State, and Commerce Department

1. Commerce receives all copies of trade letters, and reports on prescribed forms (see A-1 above). The Bureau of Economic Affairs, Department of State, receives no copies.

2. Commerce receives action and agreed number of information copies of all messages concerning trade promotion and commercial reporting. State and other agencies receive information copies as required.

3. The Bureau of Economic Affairs, State, normally receives the action copy of messages which bear on foreign economic policy. Commerce receives appropriate information copies, which are distributed simultaneously to other bureaus and agencies.

4. Commodity and industry reports, financial reports, etc., are distributed to all interested agencies (i.e. State, Commerce, Interior, Treasury, Federal Reserve Board, Agriculture, etc.) with the agency of primary responsibility receiving the action copy.

ATTACHMENT A-MECHANICS OF REPRODUCTION AND DISTRIBUTION——
INCOMING COMMUNICATIONS

Telegrams

1. Arrive in Telegraph Branch, DC/T.

2. Typed, Commerce message sent at once by pneumatic tube to Commerce liaison office, which is located in State.

3. Commerce messenger picks up telegram from liaison office and takes it to the Department of Commerce (four times daily).

Airgrams-despatches

1. Arrive in pouch room, sent on conveyor to Records Management (RM/AN) for logging in.

2. Analyst determines which agencies receive message-marks up and transmits to Reproduction and Distribution (RD).

3. RD makes offset master, reproduces in required number of copies, assorts per agency, and places in envelopes for distribution. Commerce copies, including action copy of commercial messages, go to mailroom in department, where Commerce messenger picks up message.

NOTE. Reproduction time is one of mechanics-no delays for review or clearances; reproduction and distribution time ideally is within 1 working day, but uneven workload on incoming mail may cause total operation to run over this time. Commerce gets their copies just as fast as State personnel, except on export messages (Commerce receives flimsy before State personnel).

Senator YARBOROUGH. Mr. Chairman, I am forced to go to another meeting.

Dr. Behrman, I noticed you were born in Texas, received your education in North Carolina, got a doctor's degree in New Jersey, and live in Delaware now. You have a bachelor of science degree and a Ph. D. in economics.

I want to know if there is any relationship in your statistical experience between your expanding intellectual horizons and the declining areas of the geographical boundaries of the jurisdiction in which you live?

Mr. BEHRMAN. Not that I know of.

Senator ENGLE. How did you happen to leave out California?

Mr. BEHRMAN. I should have put it in. I lived there for a year, at least.

Senator YARBOROUGH. Dr. Behrman, these commercial attachés in our Embassies overseas, do you have any jurisdiction over them now? Mr. BEHRMAN. Now we have no legal or administrative jurisdiction over them. The jurisdiction which we will have is spelled out in the agreement that the chairman and I were talking about, in which we are taking a considerably greater role in the choice of the personnel, their allocation, their tours of duty, the scope of their work, inspection of the officers, the recruitment, and so on.

The actual administration of the service would still be under the Foreign Service Act and carried out through the administrative personnel of the State Department, under this agreement. However, having the larger responsibility which is spelled out in the agreement, we ourselves will be following much more closely the personal records of these people; we will be looking at the dossiers. We will have a place on the selection and promotion boards, so we in fact are assuming a considerably more authoritative position.

Senator YARBOROUGH. In some of the countries I visited last fall, some of the nationals of those countries indicated to me the commercial attachés were doing more, they thought, for the relations between that country-beneficial relations between that country and this-than any of the other people in the Embassy.

That wasn't all, but some. Since I have to leave now, I want to say at the time I was in Ghana, they were preparing the International Trade Fair, under the direction of Mr. Berlin and we visited that site shortly before it was opened. I thought it was one of the most efficient operations I have seen, Mr. Berlin's direction and preparation of it, and I understand the fair was tremendously effective.

The Communists had one not long before that, and I have heard from other people something of the tremendous effect of our trade fair under Mr. Berlin's direction.