incumbent is leaving the office soon, after more than 2 years of outstanding and dedicated service. I am now faced with the extremely difficult task of seeking a replacement.

I have a difficult situation in the domestic communications area. For almost my entire tenure as Director I have been seeking both with Government and industry a person of the capabilities and stature necessary to fill the position of Associate Director (National Communications). This position is demanding. It requires an individual with great maturity and a wide range of industry and Government experience; demonstrated management and administrative capability; a highly developed sense of public service; and last, but certainly not least, a sense of humor to temper the frustrations and many trying problems that he will face each day.

I hope that I have now been successful in convincing an individual widely known within industry and Government to accept the position of Associate Director (National Communications). With his help I feel confident that we can look forward to a rapidly growing capability to deal with the complex tasks of policy coordination within the National Communications System area. (The organization chart referred to above follows:)

CHART DTM-2.-Organization of Office of the Director of Telecommunications Management, Executive Office of the President.

Mr. O'CONNELL. I am looking forward with confidence to filling all three of these positions. As a matter of fact, one of them is already filled—with a highly qualified individual.

In the frequency management area, I am fortunate in having a key individual who is well qualified for the position and who has great experience in frequency assignment matters and responsibilities of the

office. I have also obtained a senior staff frequency management consultant with over 40 years of industry experience in this field.

Since taking over I have managed to gather under one roof all of my staff, except for a very limited number who remain at Frostburg, Md. In 1964, these people were scattered in five different locations in the Washington area.

To better state the responsibilities assigned to me, I have recently submitted a proposed revised Executive Order 10995. When, and if, approved, this revision will more clearly reflect the actual duties being accomplished by my office. It will also directly assign certain responsibilities which have heretofore been redelegated to me by the Director, Office of Emergency Planning.

THE ROLE OF CONTRACT SUPPORT IN ACHIEVING OFFICE GOALS

It is clearly impractical to build permanent staff within the office of the competence and numbers and different skills, that would be necessary to accomplish all required policy studies in-house. Accordingly, it has been my philosophy to employ contract studies and research effort to the degree possible in providing the analysis and data base necessary to identify policy alternatives and the relative merit of such alternatives.

This contract study capability is extremely important and perhaps essential to develop the facts, alternatives, and proposals that will clarify the national interests. At the same time, it must be recognized that there is a requirement for in-house staff guidance and analysis of the results of such studies. We have sometimes been limited in placing outside studies by lack of in-house capability to guide them. This contract direction and analysis capability cannot be obtained through other than permanent staff who have the benefit of the total context of national policy interests and continuity of Government activities.

CONTRACTUAL STUDIES COMPLETED TO DATE

In the past 2 years important accomplishments and policy recommendations have been based upon contract study effort. I would like to mention a few of these contract-supported studies:

The report of the Intragovernmental Committee on International Telecommunications, which I have distributed to each committee member, was supported by a major contract study effort carried out by the Stanford Research Institute. Copies of the SRI reports have previously been made available to the committee. I should not fail at this time to make special mention of the important assistance and support provided by the Department of Defense who provided the major financial support for this contractual effort. It was beyond the capabilities of my office or the FCC to support it. We could not have supported this major study without the assistance provided by the Department of Defense.

Another major contractual study effort, which has been completed, was the initial system analysis and design work carried out by the H.R.B. Singer Co. in support of our efforts to convert the radio frequency management task to automatic data processing techniques. This major contractual study was entirely funded by my office. The benefits of the study are now coming to be available to every depart

ment and agency of the Government that makes use of the radio frequency spectrum. We are able from the mass of detail provided to glean and assemble pertinent facts which we were previously not able to obtain.

We have also sponsored several studies to measure the effectiveness of telecommunications during periods of crises. I mention that again later on, and I have copies of those here for the committee. In this way we have endeavored to identify weak links in our system capabilities, our management practices, and our policy structure. Most of these crises studies are classified in nature, however, they have been very important to our overall policy verification function.

Another area of contract study activity, which has been completed, is the cataloging of the many and diverse command control and communications studies that have been done by various agencies in the Government on a somewhat uncoordinated basis. I have here an unclassified summary of the results of this contract study effort. It is also available to the committee members in accordance with their interests.

Mr. HOLIFIELD. The staff will receive all these studies.

CONTRACTUAL STUDIES IN PROGRESS

Mr. O'CONNELL. Our current contractual study program is as follows:

One of the most important ones is an effort to determine the radio. frequency needs of the space services, all of the space services, between now and 1980. This study is being carried out under the direction of the office and jointly with the FCC, and the Department of Defense, NASA, FAA, and other interested agencies and department of the Government.

The data base summary of requirements and the policy or management alternatives are being developed by a contracting team consisting of the Atlantic Research Corp. and Systems Sciences Corp. The results of this study will provide a basis for the development of policies and plans to conserve frequency spectrum and yet provide adequate facilities for Government and non-Government use of space. The study will also provide basic information needed to formulate the U.S. position on space services frequency allocations in forthcoming international conferences.

One of the most productive areas in the entire Government telecommunications program for the application of improved policies is the area of Government-owned versus Government-leased systems. My office has devoted a major effort over the past several months to in-house studies in this area. I have here a typical study made by my staff. It is a comparison of the leased versus Government-owned aspects of the proposals to meet Bonneville Power Administration telecommunications requirements. We are now extending our staff efforts through contractual study and research of the Bonneville case and other Government-owned versus Government-leased case studies. Through this contractual research effort, we are endeavoring to provide a precise pattern of policy guidance which will provide the most efficient and economical application of both Government resources and the resources of the commercial communications carriers.

THE IMPORTANCE OF BUDGETARY SUPPORT

The capabilities, the accomplishments and the potential of any Government agency are largely controlled by the Congress and its decision as expressed through budget authorizations.

My office is no different. We do have our own separate budget now, as I mentioned, distinct and apart from OEP.

The budget identifies the objectives and goals of the office; it prescribes new programs and provides funds with which to move forward; and here we have a chart which indicates what our progress has been in budgetary funding.

In fiscal year 1965, the office was supported by a total budget of approximately $700,000, of which $120,000 was for the ADCSP program development.

Next year, fiscal year 1966, the amount was $1.28 million; and in 1967, as you see from the chart, was $1.6 million (chart 3). (The chart referred to follows:)

Mr. O'CONNELL. My office, like any other office, is totally dependent upon a full understanding of our mission and resultant congressional support.

The history of the budget of the Office of Telecommunications Management is perhaps more representative of the interest of the Congress and the vitality of the executive branch in the field of telecommunications management than any other source. This chart tells the story in straightforward terms.

In fiscal year 1965 the office was supported by a total budget of approximately $700,000-this amount was submerged within the budget of another agency.

In fiscal year 1966 the Congress authorized $1.28 million to carry out the objectives and the goals of the office. This growth in our budget permitted a major increase in the tempo of activity and the capabilities of the office.

In fiscal year 1967 we have seen a national need to maintain nondefense expenditures at a highly austere level in order to avoid the dangers of inflation. Even so, the President recommended a major increase in the budget authorization for my office. The Congress has authorized $1.6 million to carry out the work of the office in fiscal year 1967.

I think this history of support for the office, by both the President and the Congress through budget authorizations, indicates increased recognition of the overriding need for improvements in the field of telecommunications policy.

THE NATIONAL COMMUNICATIONS SYSTEM

Almost from the outset of the establishment of the National Communications System, your committee has taken a direct interest in the planning and implementation of NCS management and organizational structure, and in the System's capabilities. Accordingly, I will not dwell on the considerable background material that applies; rather, I will endeavor to give a straightforward report of where we stand and the issues ahead.

WHERE THE NATIONAL COMMUNICATIONS SYSTEM STANDS TODAY

In brief, the goal of the NCS is to develop an integrated, Government intercontinental communications system which can meet the entire range of Government needs throughout the world. In the initial stages, the objective has been to integrate a resource base of facilities and manpower amounting to some $212 billion in total assets. The progress toward achieving this goal can be stated as follows:

The NCS is proceeding in an evolutionary way, generally in conformance with the policy guidelines set by President Kennedy on August 21, 1963. A need for major policy decisions to foster the ultimate development of the NCS is apparent. However, fundamental command and control decisions will be required, if the NCS charter is to be extended in the future toward total unification.

To date, progress in the development of the NCS has proceeded under a concept of a confederation of systems under DCA coordination and management and integrated planning. We have achieved a great deal of progress in linking together some 48 independent systems of Government departments and agencies. An additional 18 networks of varying sizes remain to be considered for integration into the overall system. The total requirements to be served by a fully capable NCS have been surveyed, but not yet completely defined to form the basis for a completely unified system.

Based on requirements to date, progress has been made in interconnecting selected networks operating within the NCS, and signifi