"This appropriation provides for necessary expenses of the General Services Administration to comply with the requirements of Executive Order 11652 dated March 8, 1972, incident to declassification of all security classified information." (From The Budget for 1974.)

APPROPRIATION LANGUAGE

For expenses necessary for the review and declassification of documents, and related records management activities, pursuant to Executive Order 11652, directives issued pursuant thereto, and other applicable authorities, including expenses not otherwise provided for, and acceptance and utilization of voluntary and uncompensated services, $1,200,000 $1,000,000.

JUSTIFICATION

Section 5(E) (2) of Executive Order 11652 directs that:

All information and material classified before June 1, 1972, and more than thirty years old shall be systematically reviewed for declassification by the Archivist of the United States by the end of the thirtieth full calendar year following the year in which it was originated. In his review, the Archivist will separate and keep protected only such material as is specifically identified by the head of the Department in accordance with (E)(1)...

A National Security Council Directive dated May 17, 1972 (37 FR 10053) elaborated on this section of the Executive Order in two sections, II, D, and III, D. In the latter, the NSC directed that:

a request by a member of the public or by a Department ... to review for declassification documents more than 30 years old shall be referred directly to the Archivist of the United States, and he shall have the requested documents reviewed for declassification in accordance with Part II, hereof. If the information or material requested has not been transferred to the General Services Administration for accession into the Archives, the Archivist shall, together with the head of the Department having custody, have the requested documents reviewed for declassification.

The Executive Order requires the Archivist to systematically review all security classified information as it becomes 30 years old. This includes all records accessioned into the National Archives. But, as the NSC Directive makes clear, it also may include--upon request of an individual or of a Department--that NARS participate in a review of any classified records predating 1943 which may be in Federal Records Centers, in agency storage areas or custody, or elsewhere.

The quantity involved is estimated

at about 15 million pages for the period through 1945.

94-174 073 pt. 4 44

RECORDS DECLASSIFICATION (Continued)

Under the provisions of the Executive Order, 58 million pages now in the custody of the National Archives and Records Service, originating during calendar years 1913 through 1942, are to be reviewed during fiscal year 1973. In FY 1974 we are required to review approximately 36 million pages in our custody which originated in calendar year 1943 and half of the 39 million pages originated in calendar year 1944. The following table indicates the number of pages, by date of the documents, in the National Archives and Records Service and the date the Executive Order requires declassification review.

The Executive Order directs that by December 1975 the nearly 160 million pages of accessioned permanently valuable classified records of the World War II period must be reviewed.

The declassification review requirement does not end in 1975 with the final review of World War II records. Each year of the cold war and Korean war period the quantity of permanently valuable classified records increased. The volume of classified material for the period 1946-1950 totals some 180 million pages, and for the period 1950-1954 totals 185 million pages located as shown below:

It is expected that through experience, refinement of procedures, and other efficiencies that NARS will be able to stay abreast of the review requirement imposed by the Executive Order without increases in the size of the staff. The systematic review requirement of Section 5 (E) of Executive Order 11652 will continue for 30 years (i.e., until 2002).

RECORDS DECLASSIFICATION (Continued)

EXPLANATION OF DISTRIBUTION BY OBJECTS (See Activity Data Sheet)

11 Personnel Compensation and Staffing.- $879,000. For 110 permanent positions distributed as follows:

12 Personnel Benefits.- $80,000. Includes $64,000 for direct contribution to retirement fund; $12,000 for health benefits; and $4,000 for group insurance.

21 Travel.- $8,000. For approximately 175 days of travel to the several Presidential Libraries and to records centers involved to coordinate the declassification review program, and ensure consistency in application of agency guidelines, and travel by selected employees to Washington for training.

23 Rents, Communications, and Utilities services.- $13,000. Provides for depreciation of administrative equipment and communication services.

24 Printing and Reproduction.- $1,000.

25 Other services.- $15,000. Provides for moving expenses and payments

to the Public Health Service for health room services.

26 Supplies and materials.- $4,000. Provides for necessary office supplies and for copying supplies for Xerox machines.

TUESDAY, JUNE 5, 1973.

PROPERTY MANAGEMENT AND DISPOSAL SERVICE

OPERATING EXPENSES, PMDS

Mr. STEED. The committee will now take up the 1974 budget request for the Property Management and Disposal Service.

The appropriation for fiscal year 1973 was $41 million. The budget estimate for 1974 is $33,837,000, a reduction below 1973 of $7,163,000. Mr. Thawley, do you have a statement?

Mr. THAWLEY. Mr. Chairman, I have a very brief statement. I can either submit it for the record or read it.

Mr. STEED. Read it and we will have some questions.

GENERAL STATEMENT

Mr. THAWLEY. Mr. Chairman and members of the committee, I am Tom Thawley, Commissioner of the Property Management and Disposal Service, and I am pleased to be here today to discuss with you the programs, objectives and budgetary requirements for the coming fiscal year. We are requesting $33,837,000 for "Operating Expenses, Property Management and Disposal Service" which reflects a net decrease of $463,000 from the comparable appropriation for 1973. These figures are exclusive of the rare silver dollar program for which funds have already been appropriated.

Our property management area increases $168,000 primarily due to higher recurring storage costs. We are increasing our real property utilization, disposal, and appraisal area by $239,000 and 12 positions to provide for increased workload associated with carrying out the provisions of Executive Order 11508 and plans to accelerate disposals. In 1974 we expect to increase real property sales and transfers by 40 properties with acquisition costs of $60 million. This increase is offset by a decrease of $400,000 in protection and maintenance of real properties.

The personal property activity, exclusive of the rare silver dollar program, is decreasing $350,000. This represents costs anticipated to be financed by reimbursements into this activity from the U.Š. Postal Service for disposal services rendered by GSA.

S & CM disposals increase $200,000, primarily to cover scheduled outshipments which represent an increase of approximately 100,000 tons over the 1973 level. However, this increase does not reflect a recent announcement by the President regarding the forth coming accelerated disposals of stockpile materials.

The 1974 request reflects a $320,000 reduction in the payment to the Administrative Operations Fund.

Of the $10 million appropriated for the sale of rare silver dollars, we expect to carry over approximately $4 million in 1974 for future sales. Our first sale amounted to 800,000 coins sold at $30 each realizing $24 million. The second sale began June 1.

I would like to highlight briefly a few of our 1973 accomplishments. As of March 31, our real property sales have amounted to $33.1 million compared to a total of $12.7 for all of last year. Excess stockpile sales are $378.0 million as of April 30, compared to a total of $134.9