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expenses, lodging and meals, books, tuition fees and other educational or training expenses, etc. This authority has been used for work of the type described in each fiscal year, and it is contemplated that similar exercise of this authority will be required in the fiscal year 1946.

CONFINDENTIAL FUND

Mr. WIGGLESWORTH. $100,000 for emergencies of a confidential character. Can you tell us something about that, either on or off the record?

Mr. HARRISON. May I go off the record for a moment?
Mr. WIGGLESWORTH. Yes.
(Off-the-record discussion.)

Mr. WIGGLESWORTH. You might make a note that Mr. Harrison requests that the amount of $100,000 for confidential purposes be reduced to $25,000.

Mr. Hisle. The budget estimate is $50,000 for confidential projects. Mr. HARRISON. The $100,000 is the appropriation limitation.

Mr. Hisle. The $100,000 is the not to exceed" limitation, but the tem in the budget estimates is $50,000 for projects of that type.

Mr. WIGGLESWORTH. It would be satisfactory to you if we reduce that to not exceed $25,000?

Mr. HARRISON. Yes; however, I am sure you gentlemen would look with favor on an adjustment later, should this prove too drastic a reduction.

Mr. Ludlow. We do not have any medals up here to bestow on you, but we give you our hearty thanks for that cut.

PROTECTION TO RADIO STATIONS

Mr. WIGGLESWORTH. You are asking for authorityto indemnify the owners and operators of such 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.

Do you need that authority again?

Mr. Hisle. Yes. That authority has been in the appropriation language since fiscal year 1943. It is designed to permit the Government to indemnify the owners and operators of international shortwave radio stations and facilities for loss or damage resulting from the Government's use of these facilities.

Under the contracts with the short-wave stations, the Government has the exclusive right to determine program content. Since the stations are legally responsible for the material which is broadcast and yet have no control over that material, it is manifestly unfair to have them bear the loss or damage which might result in the case of a libelous statement, for example, particularly in view of the fact that the stations will receive no profit under their contracts.

Since the loss or damage which the stations may suffer may only occur after the expiration of the appropriation and is a contingent liability which cannot be estimated, this clause is necessary to effect an exception of section 3679 of the Revised Statutes.

Mr. WIGGLESWORTH. Have you had to indemnify anybody as yet!

Mr. HISLE. No. That provision is to protect the owners and operators of international short-wave radio stations and facilities from loss or damage resulting from the Government's use of the facilities. The O. W. I. and O. I. A. A. have taken over all international short-wave radio stations and facilities under reimbursable cost contracts.

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Mr. WIGGLESWORTH. That is in lieu of what?

Mr. Hisle. The stations have the legal responsibility for the material which is broadcast and yet have no control over that material, and therefore it is unfair to have them bear the loss or damage which might result in case of libelous statements which might be made over the radio, particularly in view of the fact that the operators receive no profit under the operating contracts.

CONTRACT AUTHORIZATIONS

Mr. WIGGLESWORTH. You were talking this morning about your contract authorization used in connection with the basic economy program. Is that the only contract authorization the agency has?

Mr. HisLE. There is one that has been used in connection with the cooperative educational program carried out by the Inter-American Educational Foundation, $2,500,000, We are asking for $301,423 for partial liquidation of that.

Mr. WIGGLESWORTH. Will you supply for the record a statement which will show your contract authorizations and obligations against each contract authorization and the appropriation against each?

Mr. HISLE. Yes.
(Information requested follows:)

Contract authorizations

Year or years available for obligation

Basic econ-
omy pro-

gram,
1944-45

Cooperative educational program,

1945

$2,500,000 2,500,000

Amount of contract authorization.
Obligations, Apr. 30, 1945.
Cash appropriation, fiscal year 1945.
Unliquidated balances, June 30, 1945.
Cash appropriation requested for fiscal year 1946.
Cash appropriations to be requested for fiscal years subsequent to 1946

$18,000,000
18,000,000

4,000,000
14, 000, 000

3, 543, 290 10, 456, 710

2,500,000

310, 123 2, 198, 577

CORPORATIONS

Mr. WIGGLESWORTH. How many corporations are there?

Mr. HARRISON. We have five corporations, of which one is in dissolution; two others are relatively inactive in the sense that they are completing projects started about 2 years ago; and the remaining two are very active, the Institute of Inter-American Affairs and the Inter-American Educational Foundation, Inc.

Mr. WIGGLESWORTH. They are financed and owned in part by the Federal Government?

Mr. HARRISON. Yes. With the exception of operating receipts, the corporations are financed by the United States Government. They are all Government-controlled corporations.

Mr. WIGGLESWORTH. I wish you would give us a statement for the record in respect to these corporations showing when and where they were incorporated and their capital.

Mr. Hisle. We have statements already prepared that we can put in the record.

Mr. WIGGLESWORTH. I would like to have the statement show also (a), where and when they were incorporated; (b), what the capital is, (c), where the money comes from, (d) whether they have authority to borrow or to issue securities, and if so to what extent that authority has been drawn upon, (e) whether they are audited by the Comptroller General or not; ( n an itemized statement of all funds received, (g) an itemized statement of all funds expended, and (h) for how long it is anticipated that each will continue to function under present plans.

(Information requested follows:)

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1 Does not include fund contributions of local governments where cooperative program carried out through special agency or service established within framework of local government. (See statement under Basic Economy Department for contributions of local governments to cooperative programs.)

Status of funds on cumulative commitment, and obligation, and authorization basis Total capitalization.--

$65, 024, 404 Total commitinents, obligations, and special project authorizations, June 30, 1945.-

62, 004, 291

Balance...
Authorized or to be authorized and required for fiscal years 1946–49.

Reserve.

3, 020, 113 2, 807, 455

212, 658

EXPLANATORY STATEMENT The Institute of Inter-American Affairs was created under the laws of the State of Delaware on March 31, 1942, pursuant to authority contained in the Third Supplemental National Defense Appropriation Act, 1942 (Public Law 353, 77th Cong., approved December 17, 1941). It is a Government-controlled nonprofit membership corporation.

The purposes of the Corporation are to help solve critical health, sanitation, and food problems that impair the war effort, the control and solution of which are also essential to the economic development of the Western Hemisphere; to provide assistance which will expedite the procurement of strategic and critical materials essential to the war effort; to carry out the obligations of this Government with relation to the health and sanitation program assumed by it under Resolution 30 of the meeting of the Ministers of Foreign Affairs of the American republics held in Rio de Janeiro, Brazil, January 15–28, 1942; and to offset the serious economic dislocations created by the war, principally disruption of agricultural production and local industries, caused by restrictions in the export from this country of materials and equipment.

The principal activities of the Corporation are conducted in cooperation with the other American republics in accordance with the terms of agreements entered into with the governments of the other American republics. The agreements usually provide for the porgrams to be performed by special agencies or services established within the framework of the particular ministry or department concerned, i. c., Ministry of Health or Ministry of Agriculture, of the governments of the other American republics. Provision is also made for the programs to be approved and conducted by mutual agreement of the parties to the agreement under the general supervision of the chief of party of the technical mission sent to the particular country. The cooperative agreements provide for contributions by both parties of funds, materials, and services, and arrangements are being made for the governments of the American republics to assume increasing responsibility for carrying on the programs with their personnel and funds. Cooperative health and sanitation programs are being carried out with 18 of the Latin-American countries, and cooperative food supply programs with 8 countries. Cooperative programs extend to various States, the latest of which, under present plans, is December 31, 1948.

The Corporation is financed by grants made to it by the Office of Inter-American Affairs. The total amount granted or to be granted to the Corporation through June 30, 1945, is estimated at $65,024,404 of which amount it is estimated $51,024,404 will be paid over to the Corporation by June 30, 1945, and the remainder in subsequent fiscal years in accordance with the cash needs of the Corporation for carrying out its programs. Also, in the case of one country, fund contributions of the local government are taken into the Corporation and disbursed directly by it. In the cases of the other countries, the fund contributions of the local governments are disbursed by the special agency or service Established within the framework of the local governments through which the cooperative program is carried out.

No securities have been issued or money borrowed by the Corporation. The transactions of the Corporation are audited by the General Accounting Office.

The receipts, expenditures, and means of financing are shown in detail in the foregoing statement.

Inter- American Educational Foundation, Inc.

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$102, 980

26, 162 63,028 192, 170

800,000

Mr. Hisle. We have statements already prepared that we can put in the record.

Mr. WIGGLESWORTH. I would like to have the statement show also (a), where and when they were incorporated; (b), what the capital is, (c), where the money comes from, (d) whether they have authority to borrow or to issue securities, and if so to what extent that authority has been drawn upon, (e) whether they are audited by the Comptroller General or not; (1) an itemized statement of all funds received, (9) an itemized statement of all funds expended, and (h) for how long it is anticipated that each will continue to function under present plans.

(Information requested follows:)

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1 Does not include fund contributions of local governments where cooperative program carried out through special agency or service established within framework of local government. (See statement under Basic Economy Department for contributions of local governments to cooperative programs.)

Status of funds on cumulative commitment, and obligation, and authorization basis Total capitalization..

$65, 024, 404 Total commitments, obligations, and special project authorizations, June 30, 1945.

62, 004, 291 Balance

3, 020, 113 Authorized or to be authorized and required for fiscal years 1946–49. 2, 807, 455 Reserve.

212, 658 EXPLANATORY STATEMENT The Institute of Inter-American Affairs was created under the laws of the State of Delaware on March 31, 1942, pursuant to authority contained in the Third Supplemental National Defense Appropriation Act, 1942 (Public law 353, 77th C'ong., approved December 17, 1941). It is a Government-controlled nonprofit membership corporation.

The purposes of the Corporation are to help solve critical health, sanitation, and food problems that impair the war effort, the control and solution of which are also essential to the economic development of the Western Hemisphere to provide assistance which will expedite the procurement of strategie and critical materials essential to the war effort; to carry out the obligations of this Govern ment with relation to the health and sanitation program assumed by it unde

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