REASON FOR SEPARATION OF STATE DEPARTMENT AND GOAG APPROPRIATIONS Mr. GARY. Testimony has been given here that a proportionate cost incurred by the State Department in administering the affairs of Germany is apportioned and charged to this appropriation. Mr. WOLFE. That is correct. Mr. GARY. Is that done in connection with other countries? (Discussion off the record.) Mr. WOLFE. Generally speaking, world-wide, all costs of the State Department are in the State Department budget. Mr. GARY. Why should not this be? Mr. KIMBALL. If I may go back a little, I think that I can explain. The principal part of this budget was handled by the Army under GARIOA, as you remarked this morning. When the transfers took place in September 1949, by special provision in the appropriation for that year only, through June 30, the balances in that appropriation came to the State Department. That included those parts of the GARIOA appropriation which we took over. So, in effect, we have continued here in Washington as well as in Germany the old GARIOA appropriation which up to now is still a separate appropriation. The point that you are making is why it is not merged. I believe it will be merged, and it should be within a year or two when the activity will get down to more normal proportions. It will be merged into the State Department appropriation. Mr. WOLFE. That was the philosophy behind not putting it in the State Department appropriation. It is a declining program, continually declining, and until we get a more normal situation, we wanted to leave it as a separate appropriation. Mr. GARY. It is still a conduct of foreign affairs for which the State Department is responsible. Mr. WOLFE. That is correct, sir. DOMESTIC INFORMATIONAL SERVICES TO HICOG Mr. WIGGLESWORTH. What do you mean by International Information for which you have 55 people? Mr. KELLERMANN. You saw the newspapers this morning. Mr. WIGGLESWORTH. What are these people here in Washington doing? Mr. KELLERMANN. They are sending every day a total of 12,000 to 13,000 words to the operators in Germany containing the latest American news-public statements and so forth for the people in HICOG. Mr. WIGGLESWORTH. Is not that a normal State Department function also? Mr. KELLERMANN. Yes. The Wireless Bulletin is being sent to other countries, but Germany has indicated that they have a special need for additional items because in no other country in which we operate do we publish a newspaper. So Mr. McCloy has requested, and the State Department has agreed, that a special service is needed in order to supply the pamphlet operation, the newspapers, the maga zines, which are being produced in Germany. Take the book there on the table, The America Book for the Youth. A large part of the pictorial material and of the articles is supplied by the State Department and is included in the book. This is the type of information, as far as projection of the United States is concerned, that would not be available anywhere else in the State Department, and certainly not available in Germany; so a special operation has been set up in order to satisfy the specific needs of the German program. Take the exchange program, because I think that is one of the most vital ones. You will probably agree that 80 percent of this exchange program is actually conducted in the United States. The people are coming here for training purposes. We have to talk to hundreds of universities, schools, educational institutions and so forth to set up a program. Mr. WIGGLESWORTH. I think that I have a pretty good picture of the exchange program. Mr. KELLERMANN. I may say one more word on the motion picture program. The coverage of the American items that go into the "Welt im Film", our newsreel, is provided by the State Department. The State Department is originating about 52 special documentary pictures for Germany, which is in addition to the pictures produced in Germany proper. BRITISH AND FRENCH OCCUPATION COSTS Mr. GARY. Can you give us a statement of the British and French Occupation costs for the record? Mr. WOLFE. Yes. Mr. GARY. Francs, pounds, and deutschemarks. Mr. WOLFE. I can give it to you in deutschemarks. Mr. GARY. Suppose that you just supply it for the record. Mr. WOLFE. For the fiscal year beginning April 1, 1951, and ending March 30, 1952, the British total cost is 2,089,000,000 deutschemarks, which includes 544,000 deutschemarks for mandatory expenditures. In other words, permanent improvements to the German economy, such as depots, barracks, housing, and so forth; 1,545,000,000 deutschemarks for normal occupation purposes. The French figure is 1,531,000,000 deutschemarks divided as follows: Four hundred and sixty-six million deutschemarks are mandatory expenditures and 1,065,000,000 deutschemarks for straight occupation costs. Mr. GARY. How many francs and pounds? Mr. WOLFE. I do not know. I do not have any idea. I have our dollar figure here for America, but I do not have the other information. Mr. GARY. Thank you, gentlemen. 85541-51-pt. 2- 20 THURSDAY, JUNE 28, 1951. AUSTRIA WITNESSES GEORGE W. PERKINS, ASSISTANT SECRETARY OF STATE FOR EUROPEAN AFFAIRS WALTER J. DONNELLY, UNITED STATES HIGH COMMISSIONER FOR AUSTRIA FRANCIS T. WILLIAMSON, DEPUTY DIRECTOR, OFFICE OF WESTERN EUROPEAN AFFAIRS HERMAN POLLACK, DEPUTY EXECUTIVE DIRECTOR, BUREAU OF EUROPEAN AFFAIRS O. H. TRANSTRUM, DIRECTOR OF ADMINISTRATION, OFFICE OF UNITED STATES HIGH COMMISSIONER FOR AUSTRIA Mr. GARY. The committee will please come to order. We will take up this morning the request for the appropriation for the program for Austria, and we will insert at this point in the record, page 110 of the justification, containing the summary of the Austrian program. (The statement referred to follows:) |