3. Organization

Determining the detailed organizational structure and
reporting relationships within the Agency for International
Communication is the proper function of the new agency's
director after he or she is nominated by the President and
confirmed by the Senate. Below is a chart which shows

one logical manner in which these combined functions could
be organized.

The East-West Center is the recipient of Federal grants. It is not a U.S. Government agency and has no line relationship to this organization. The Agency for International Communication, like the Department of State, will continue to provide backstopping and funding support. The Administration is committed to the future of the

East-West Center.

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Prohibition on Dissemination of Information

The provisions in Title V (Disseminating Information about the United States Abroad) of the United States Information and Educational Exchange Act of 1948, will continue in full force following the reorganization. Section 501 (22 U.S.C. 1461) states that "The Secretary" (since 1953, the USIA Director and, under the Plan, the Director of the Agency for International Communication)

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"is authorized, when he finds it appropriate, to provide
for the preparation, and dissemination abroad, of
information about the United States, its people, its
policies, and through press, publications, radio,
motion pictures, and other information media, and
through information centers and instructors abroad.
Any such information (other than "Problems of
Communism" which may continue to be sold by the
Government Printing Office) shall not be disseminated
within the United States, its territories, or posses-
sions, but, on request, shall be available in the
English language at the Department of State, at all
reasonable times following its release as information
abroad, for examination only by representatives of
United States press associations, newspapers, magazines,
radio systems, and stations, and by research students
and scholars, and, on request, shall be made available
for examination only to Members of Congress."

(emphasis supplied)

Those restrictions on dissemination within the United States, its territories, or possessions will continue to be the law, unless changed by the Congress. For example, it would still be necessary for the Congress to enact specific legislation, as it has in the past (for example, in the case of the Little League Baseball film Summer Fever"), to authorize and govern the distribution for viewing in the United States of any motion picture produced for the agency containing information about the United States for distribution abroad.

These provisions of law (Sec. 501) have been in the Smith-Mundt Act substantially in the present form since 1948, and are well understood as appropriate prohibitions on the dissemination of information about the United States to the American people. They effectively prohibit activities in peacetime such as were previously authorized for the Domestic Branch of the Office of War Information.

Title V relates to the preparation and dissemination abroad of information about the United States, its people, and its policies. It should be noted that certain authorities (relating to the preparation, distribution, and interchange of materials) in the Mutual Educational and Cultural Exchange Act of 1961 (popularly known as the Fulbright-Hays Act), currently vested in the President and delegated to the Secretary of State, will be transferred to the Director of the Agency for International Communication.

Section 102 (b) (1) of the 1961 Act authorizes
"interchanges between the United States and other
countries of handicrafts, scientific, technical, and
scholarly books, books of literature, periodicals,
and Government publications, and the reproduction
and translation of such writings, and the preparation,
distribution, and interchange of other educational
and research materials, including laboratory and
technical equipment for education and research."

This authority is now exercised, and will be after the reorganization so that, in keeping with the mutual exchange purposes of the law; interchanges would make available to the American people and to the various U.S. educational and cultural interests information developed abroad on subjects of mutual interest. Most effectively, such interchanges would normally be part of other exchange activities authorized by the Act. Activities under section 102(b) (1) would be one means for giving further emphasis to the need for American learning about other peoples and to know them and their ideas better,

In summary, Reorganization Plan No. 2 does not change existing authorities regarding dissemination of information. There would continue to be statutory prohibitions on disseminating within the United States information prepared for use abroad about the United States, its people, and

its policies.

There would continue to be the authority for

interchanges of materials, so that we may obtain materials from abroad to further mutual understanding between us and

others.