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Foreword

The Department of Commerce continued to distinguish itself in 1983 as one of the best managed departments in the federal government. We again showed that the federal bureaucracy can deliver services cost effectively.

Our management structure is now a blend of the most appropriate techniques of the public and private sectors. Through centralization, consolidation, and the setting of management objectives, we have become more efficient with each passing year.

Last year, we established four new Regional Support Administration Centers in Norfolk, Denver, Kansas City and Seattle. The centers will take over from Washington the servicing of 16,000 departmental employees at field offices in 50 states. They will help improve services to the public immensely.

During the past three years, we have cut our budget by 36 percent and reduced administrative personnel by the same percentage. Our new Review Board is saving millions by ensuring that no federal funds go to organizations that owe the government money or submit proposals that are unworthy of funding. I am pleased also that our plain English program has boosted productivity. More than 3,000 persons have undergone training. The result: better comprehension and better performance.

Commerce has demonstrated that the same cost cutting techniques it has adopted internally can be applied government-wide. A model survey of federal field operations that we developed for the Cabinet Council on Management and Administration showed that the government can reduce greatly its operating expenditures by eliminating unneeded field positions through better management practices.

Our major hope of 1984 is that Congress will pass President Reagan's proposal to merge the U.S. Trade Representative's office and the trade and business-related functions of the Department of Commerce into a new department. For the first time, we would be able to make and carry out trade policy in the same place, and take advantage of trade opportunities as never before.

Our successful negotiations with the People's Republic of China and in Japan show how we can develop those opportunities. They resulted in a five-year agreement with the PRC to prevent below cost dumping of textiles, an arrangement with Nippon Telephone and Telegraph Company to give U.S. telecommunications suppliers a larger share of its overseas purchases, and an easing of licensing requirements for telecommunications sales to the People's Republic. Last year, China also was placed in the "V" category under export control regulations. President Reagan made that designation after the first meeting of the joint U.S./China commission on commerce and trade in the People's Republic in May. This gives China the same status as that held by most other friendly and non-allied nations. Our relations with China have improved significantly, but much work remains to be done.

By using the right management techniques, and pursuing policies that balance the United States' trade and security objectives with our trading partners' goals, the Commerce Department is taking long strides toward efficiency and productivity.

Malcolm Baldrige

Secretary of Commerce

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