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radio transmission; purchase, rental, construction, improvement, maintenance, and operation of facilities for radio transmission and reception, including real property outside the continental limits of the United States and temporary sentry stations, guard barracks, and enclosures for the security of short-wave broadcasting facilities within the continental limits of the United States without regard to the provisions of section 355, Revised Statutes (40 U. S. C. 255) and other provisions of law affecting the purchase or rental of land and the construction of buildings thereon; advertising in foreign neswpapers without regard to section 3828, Revised Statutes (44 U. 8. C. 324); printing and binding (not to exceed $2,710,389, for such expenses within the continental limits of the United States), including printing and binding outside the continental limits of the United States without regard to section 11 of the Act of March 1, 1919 (44 U. S. C. 111); purchase or rental and operation of photographic, reproduction, printing, duplicating, communication, and other machines, equipment, and devices; exchange of funds without regard to section 3651, Revised Statutes; purchase of 488 motor-propelled passenger-carrying vehicles of which 486 for use outside the continental limits of the United States, may be acquired without regard to statutory limitations as to price and authority to purchase; acquisition, production, and free distribution of publications, phonograph records, radio transcriptions, motion-picture films, photographs and pictures, educational materials, and such other items as the Director may deem necessary to carry out the program of the Office of War Information, and sale or rental of such items by contract or otherwise to firms or individuals for use outside the continental limits of the United States; purchase, repair, and cleaning of uniforms for use by porters, drivers, messengers, watchmen, and other custodial employees outside continental United States; such gratuitous expenses of travel and subsistence as the Director deems advisable in the fields of education, travel, radio, press, and cinema; not to exceed $175,000 for entertainment of officials and others in the fields of education, radio, press, and cinema of other countries; payment of the United States' share of the expenses of the maintenance, in cooperation with any other of the United Nations, of organizations and activities designed to receive and disseminate information relative to the prosecution of the war; $64,390,000: Provided, That, exclusive of the contingency fund mentioned in the last proviso hereof, not more than $49,562,101 (including living and quarters allowances) shall be allocated to the Overseas Operations Branch and not more than $2,464,633 shall be allocated to the Domestic Operations Branch: Provided further, That notwithstanding the provisions of section 3679, Revised Statutes (31 U. S. C. 665), the Office of War Information is authorized in making contracts for the use of international short-wave radio stations and facilities, to agree on behalf of the United States to indemnify the owners and operators of said radio stations and facilities from such funds as may be hereafter appropriated for the purpose, against loss or damage on account of injury to persons or property arising from such use of said radio stations and facilities: Provided further, That not to exceed $600,000 of this appropriation shall be available to meet emergencies of a confidential character to be expended under the direction of the Director, who shall make a certificate of the amount of such expenditure which he may think it advisable not to specify and every such certificate shall be deemed a sufficient voucher for the amount therein certified: Provided further, That $10,000,000 of this appropriation shall not be available for expenditure unless the Director of the Office of War Information, with the approval of the President, shall determine that such funds in addition to the other funds provided herein are necessary for carrying on activities in conjunction with actual or projected military operations and that accounts for these funds may be merged with regular accounts.

You received, in the 1944 appropriation, first, from the National War Agencies Act, $33,222,504, and from the first supplemental National Defense Act, $5,000,000, or a total of $38,222,504, so that you are requesting here an increase over 1944 of $26,167,496. Mr. Davis. Yes.

GENERAL STATEMENT

The CHAIRMAN. This increase seems to be spread over all of your organization, Mr. Davis.

Mr. Davis. Over the Overseas Branch; the Domestic Branch is substantially identical.

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The CHAIRMAN. Leaving out the liquidation expenses, in 1944, in connection with curtailment of the Domestic Branch there is an increase for that branch in 1945 of a little less than $60,000. The Overseas Branch, including the contingency fund of $10,000,000 shows an increase of about $26,000,000, and without the contingency fund it is approximately $10,000,000, most of which is in the outpost service, and your general administrative expense shows a slight increase.

We would like to have a statement, Mr. Davis, advising us of any changes in policy as to operations and control, any changes in your organization since you were last before the committee, any changes in directive personnel at the top of your organization, and the general scope of the operations in 1944 and a discussion of your program for 1945.

We will not interrupt you in your statement, and then we will take up a discussion of the Overseas Branch and the Domestic Branch, and we will then have statements from the heads of each of those branches, and at the conclusion of your statement we will inquire of you as to the general policy and will take up with the members of your staff the details of the estimate.

Mr. Davis. May I proceed?
The CHAIRMAN. Yes, Mr. Davis.

Mr. Davis. The Office of War Information requests an increased appropriation for its work in what will be, in all likelihood, the decisive year of the war. The military operations of the coming year, if successful, may well bring the war in Europe to a victorious conclusion before the end of fiscal 1945, while at the same time inflicting crippling blows on the Japanese. But to attain these ends, as we all know, will require the greatest military effort the United States has ever put forth, an effort which will probably entail greater strains on the civilian population than the country has known since 1865. 0. W. I. has been charged with the duty of supporting that military effort, and almost all of the increase asked for in the appropriation for the Overseas Branch is for work projected in response to the demands of military commanders in northern and southern Europe, Asia, and the Pacific. Meanwhile our Domestic Branch--- which is asking for funds for operations at its present level --will be charged with the responsibility of explaining Government policies to the home public, telling the American people why they are asked to do certain things, and to refrain from doing certain others, in support of a war effort which this year will reach its climax.

0. W. I. is purely a war agency, existing only for the duration of the war, and created solely because it seemed å necessary contribution toward the winning of the war. It is our duty to do our job just as efficiently as we can; and to avoid waste, whether of time, effort, or money, because waste of any of these ingredients of our work would reduce our efficiency. But we should be failing in our duty if we did not ask the Congress for as much money as seems to us necessary to do the job that has been assigned to us. The owner of an automobile could save money by never buying any oil, but it would not be real economy; nor would it be if we did not ask for sufficient funds for the effective operation of our Domestic Branch, which serves as an essential lubricant for the information machinery of government on the home front. Our Overseas Branch, on the other

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hand, is in large part an auxiliary of the Army, and like the Army its
business is to get a job done-as efficiently as possible, and as eco-
nomically as the demands of efficiency permit; but the essential point
is not how much we are going to spend, but how much we can spend
effectively, to the attainment of results that serve the national interest.
This year seems likely to be the pay-off, when we shall cash in on the
results of most of the military activity, and most of the propaganda
activity, that has gone on since the war began. But we cannot do so
without intensified military activity, and intensified propaganda
activity too. 0. W. I.'s expenditure this year is no more to be
measured by that of past years than the amount of ammunition our
artillery is going to shoot off this year should be limited to the amount
it shot off last year. In both cases the criterion is simply, how much
is it going to take to do the job which has been assigned to 0. W. I.-
a job which, if it is performed efficiently, will shorten the war in some
degree and thereby save American lives, as well as the taxpayers'
money?

The Congress last year decided to restrict the activities of our
Domestic Branch by the elimination of publications and posters, of
motion-picture production, and of our field service. This had the
effect of making our Domestic Branch largely, though not entirely,
what it had been in some degree theretofore--a staff operation, co-
ordinating the information activities not only of Government agencies,
but of private interests which contribute their effort to the furtherance
of the Government's war programs. Basically our Domestic Branch
now has two functions, as its director will later explain in more detail-
a news function and a service function. Both, however, are designed
to fulfill the directions given us by the President to coordinate the
informational activities of Federal departments and agencies in order
to insure a clear and coherent flow of information to the public.

Our domestic News Bureau, while producing from time to time news reports on general aspects of the war effort, is chiefly engaged in bringing together and coordinating news from other agencies, to make sure that as clear and authoritative a story as possible is given to the people; and thus to eliminate insofar as possible those conflicits and confusions in official statements that were so frequent 2 years ago, and were one of the chief causes of the public demand for the creation of a single Government information agency. Our speech clearance unit makes sure that officials of the executive branch, when they speak on matters outside their own field of authority, reflect the total policy of the Government. Our Foreign News Bureau not only transmits news from foreign sources not otherwise available to newspapers and press associations but performs an extremely useful function in exposing and denaturing enemy propaganda; besides serving in emergencies as the most rapid means of transmission of war correspondents' dispatches to the American press. Our Bureau of Special Services provides information not only in response to public inquiries, but for the needs of Members of Congress and agencies of the executive branch; and our Book and Magazine Bureau serves the long-range news function of bringing information about the Government war effort, and about the needs of Government war programs, to the attention of magazine editors and book publishers who in due course transmit it to millions of readers.

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As for our staff functions, our Motion Picture Bureau continues under Executive order as the central point of clearance and contact between Government agencies and the industry, and is responsible for the review and approval of pictures produced by other Government agencies for distribution to the public. As for the work of production of pictures in explanation and support of Government war programs, which this office used to perform, that has been taken over by the motion-picture industry itself, through its War Activities Committee; and I might add that the industry has also lent us one of its leading figures to serve as the chief of our Motion Picture Bureau. Our Poster Division now merely approves the quality of, and clears for conformity with Government policy, the posters produced by other Government agencies; besides seeing that they are effectively distributed, with as little waste as possible. Our domestic Radio Bureau serves as the contact point and clearance mechanism for the requests of all Government agencies for radio time for their information programs-requests which, when uncoordinated as they were in the early days of the war, caused endless confusion. And our Office of Program Coordination, working in close cooperation with the War Advertising Council and other groups, determines the emphasis and timing of the various home-front information campaigns in support of the war effort, to which private advertisers contribute either time on the air or space in newspapers and magazines.

These three parts of our Domestic Branch-the Radio Bureau, the Motion-Picture Bureau, and the Office of Program Coordination-are responsible for the most effective use, in the interest of the war effort, of hundreds of millions of dollars' worth of time on the air and the screen, and of advertising space in newspapers and magazines, contributed by private citizens and organizations to the national interest. It is the judgment of those with whom our staff men cooperate, both in the Government and private industry, that they are performing that function very effectively-and we are asking, for their continued operation, just about $1 for every thousand dollars' worth of time and space that they allocate.

I have reviewed these particular activities of the Domestic Branch, with which the committee is generally familiar from past years, to emphasize the fact that since the elimination of our publications and motion-picture production the Domestic Branch is principally a staff operation, responsible for the effective organization and coordination of other activities, both governmental and private, far more extensive than any we ever dreamed of conducting ourselves. There are certain further activities, conducted partly by the Domestic Branch and partly by the Director's office, which are perhaps our most important contributions on the home front. We give advice to other Government departments as to the most effective way to present their problems and policies in connection with the war, so as to secure the greatest possible degree of public understanding. An example is the policy on release of war news, recently worked out in full cooperation with the Army and Navy, which seems likely to ensure that the public will get the news of military operations just as fully and promptly as genuine considerations of military security permit. Another instance is the conferences which we undertook last winter with officials concerned with the problems of cut-backs in production and eventual reconver

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sion of industry to civilian uses, whenever military needs shall have slackened. These conferences resulted in substantial agreement on the facts among officials concerned, and substantial unanimity in succeeding public statements, on a topic where confusion had previously threatened to prevail. We cannot and should not tell officials of other agencies what to do; but we can and do advise them how to explain what they are doing or going to do, so that the public will have as clear an idea as possible of what is asked of it, and why.

The foregoing may suggest that our Domestic Branch is a considerably more important piece of governmental machinery than might' be inferred from the very modest sum asked for its operations for the coming year. Now for our Overseas Branch, which is asking for an increase over last year's appropriation of more than 75 percenta total of upward of $59,000,000, of which $10,000,000 is a contingency fund for action in support of military operations which cannot now be precisely foreseen,

This may seem a large figure; but a recent estimate by an authoritative magazine, the London Economist, suggests that the Germans are spending on foreign propaganda almost 10 times as much as we are asking from the Congress; and we must compete with an elaborate and vigorous Japanese propaganda too. We have a world-wide job to do, aside from those nations of the Western Hemisphere which fall in the field of the Coordinator of Inter-American Affairs; in all the rest of the world, there is no nation which our propaganda or information programs do not reach.

As the committee knows, our operations outside the United States fall into two classes--those in friendly or neutral countries, where we operate under the general jurisdiction of the State Department, exercised through its embassies and legations; and those in theaters of war, where we are under the control of the military commanders. Both of these are war jobs. Enemy propaganda is constantly at work endeavoring to create division between us and our allies, to influence the feeling of neutral peoples against us, and make them less inclined to active sympathy with and assistance to our cause. It is the job of O. W. I. in these friendly and neutral countries to keep continually before the public eye the power and strength of the United States, to keep those peoples informed of our great and increasing contribution to the United Nations war effort on all fronts; and to assure them that the war aims of the United States, as laid down in authoritative statements of both the Executive and the Congress, are such as will conduce to the eventual good of the entire world. So long as the war goes on in any part of the world, O. W. I. will be required to explain the American point of view and set forth the American achievement to all peoples whose friendship and understanding may help us win the war.

Virtually all the increased funds we ask for, however, are for our work in support of present or projected military operations, and the expected consequences of those operations. The principal field in which, to date, we have been engaged in this sort of work is the Mediterranan theater, where 0. W. I. has operated as part of the Psychological Warfare Branch of Allied Force Headquarters. This organization included, besides many employees of 0. W. I., a considerable number of American and British military personnel, representatives of the British Ministry of Information and Political Warfare Execu

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