dous undertaking, of course. He was of the opinion that under the circumstances they were doing a pretty good job but he was also of the opinion they had too many people over there and that they were talking about bringing in more. I wondered whether that was under your jurisdiction?

Mr. STAATS. There is no reason why we could not

Mr. CASEY. You have not had the opportunity to really look into the Vietnam situation.

Mr. STAATS. Our office has been there only since August. They have been occupied very heavily with the military construction contracts and the commodity import study.

Mr. STOVALL. To cite one illustration to your point of our working with manpower questions, we made a report last year in relation to the military assistance groups in Europe. We took a look at several things and found we didn't think the organizations were reducing proportionate to the reduction in work because the military assistance program in Europe had gone down to approximately zero.

We made a report on this. I haven't the figures here but we thought the staffs were excessive. As a result they were looked at and have been very substantially reduced. This was in the European area.

Mr. WEITZEL. Another example of work in the manpower area is in the Defense Department. In our review of their supply system we found a number of deficiencies that were attributable to the lack of sufficient training personnel, the fact that people weren't given sufficient training before they were being sent out to location, and there wasn't the proper ratio between logistics personnel and units to tactical and the other units supported.

We are trying to broaden our activities in the manpower area. In fact, this is one of the functional areas we have set apart in our defense division in order to concentrate on this.

We have also been doing a good deal of work for the Post Office and Civil Service Committee, the Manpower Subcommittee, on such questions as the use of contractor technical personnel versus civil service personnel.

You may have seen something of the inquiry made by the McClellan investigating subcommittee recently on that point.

Mr. STAATS. We did a special study for the Appropriations Committee this year on the staffing at the regional office level of the Post Office Department. I believe they found it useful and took action based on our review. This had to do with need for personnel in the inspection service and the detail of personnel to the regional office level.

LACK OF AUTHORITY TO AUDIT CERTAIN INTERNATIONAL AGENCIES

Mr. CASEY. I notice in your statement that you do some auditing and checking on the Export-Import Bank.

Do any of the international organizations to which we belong come under your authority? Do you have authority to check on the International Bank, or the International Development Association?

Mr. STAATS. This is one of the important areas which I should have mentioned this morning and did not when the chairman asked what agencies were excluded from our audit jurisdiction.

We do not have any responsibility or authority to audit, nor do we have access to the records of, international organizations.

I understand the theory behind this is that this is an international body and the accountability goes to the governments concerned. Therefore, the responsibility for internal audit rests with the participating governments, and no government should have the right to go in except on the basis that the international organization agrees to.

Mr. CASEY. That disappoints me because I wanted to know whether we could have someone this Congress could ask to check into the operation of these two organizations I mentioned.

Mr. Chairman, they are building a country club with your money and my money out here in Maryland.

Mr. ANDREWS. They are doing it without my vote.
Mr. CASEY. You are not going to get a vote on it.
Mr. ANDREWS. I know. Every time I do I vote no.

Mr. CASEY. I am trying to find some way we can do something about it. They seem to be pretty independent.

Just to show you what we have turned loose, Mr. Chairman-I say we because we furnish most of the money for it as I understand it they have a tax exemption on all the property they purchase from the State of Maryland, and they are trying to get one from Montgomery County. I don't know whether or not they have gotten it.

The officers and directors of this organization, their salaries are tax free.

Mr. ANDREWS. What organization?

Mr. CASEY. International Bank for Reconstruction and Development. It is commonly known as the World Bank. There is also the International Development Association. The officers and directors are the same. Their salaries are tax exempt, also.

I daresay when you see one of them go through the supermarket stores, if you have ever been held up in the line and one is bringing out a card. they are getting the exemption from the sales tax on products they buy.

Mr. ANDREWS. Do they have any job vacancies?

Mr. CASEY. You come after me, Mr. Chairman. I mentioned this first.

Seriously, I just wish we had some authority for an agency such as the General Accounting Office who can look into this to tell them this money was not put here to build a swanky country club.

Mr. STAATS. This could be done, but only by agreement among the participating nations.

NATO, for example, has a Board of Auditors in which the United States has a representative. In other words, we have one voice on a Board of Auditors which is responsible for auditing the program of NATO.

This is the only arrangement of this kind that I know of.

Mr. CASEY. Does anyone ever audit this organization that you

know of? I guess they hire outside auditors?

Mr. STAATS. I think they have a commercial-type audit.

Mr. ANDREWS. They andit it themselves.

Mr. CASEY. Can you imagine the representative from "Lower Slobbovia" objecting to building this country club for him out there?

Mr. ANDREWs. I don't know where we are headed.

Mr. CASEY. There is no question but what these organizations serve a very worthwhile purpose. I am sure they do or they never would have been established. I think, however, they are abusing their status by indulging in this sort of operation. In my opinion they have no business spending the funds of that organization for this at all.

Of course, it is a drop in the bucket compared to the billions of dollars they spend, but it is establishing a precedent.

If they accomplish this every one of these organizations will ask "Why don't we do it, too?" They will each have their own country club. They can build it up to the point of recreation for their staffs and employees.

Mr. ANDREWS. Mr. Staats, I am sure you have no jurisdiction over the United Nations.

Mr. STAATS. That is correct.

Mr. ANDREWS. I am sure you know, Mr. Casey, that we put money into funds of the United Nations and then we have no say-so over how those funds will be spent.

I am thinking of one organization of the United Nations which gives money to Castro's Cuban Government. We put money into that fund and yet we have no control over the expenditures of the fund, and some of that money goes down to Castro.

Mr. STAATS. We could technically be invited, as I understand it, by the State Department to go in and assist them, but again only on the basis of whatever rights the United States had agreed upon with respect to an audit of an international organization.

We have, Mr. Chairman, a list here of the various international organizations in which the United States is a participant and to which we contribute. I do not have a completely current figure as to the total U.S. expenditures through these international organizations but it is something more than $200 million a year.

Mr. CASEY. Would you furnish that for the record, Mr. Staats?

Mr. STAATS. We would be very glad to, and we will also give for the record the most recent estimate we have as to the total U.S. expenditures which are made to these organizations.

(Information follows:)

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

A list of the multilateral organizations and programs to which the United States contributes and international finance organizations in which it is a member (no current contributions) follows. Current totals of such contributions range from $300 million to $350 million a year.

GAO AUDIT AUTHORITY

The General Accounting Office does not have any specific authority to audit the affairs of any of these organizations. GAO may, however, depending on the contractual relationship between the United States and the recipient international organization, be permited to examine records pertinent to the application of the United States contributions, to the extent that the Deparment of State

or any other administering United States agency would delegate its own rights of inspection or examination.

MULTILATERAL INTERNATIONAL ORGANIZATIONS AND PROGRAMS IN WHICH THE UNITED STATES IS A PARTICIPANT

United Nations and specialized agencies:

United Nations.

Food and Agriculture Organization.

International Civil Aviation Organization.

International Labor Organization.

International Maritime Consultative Agencies.
International Secretariat for Volunteer Services.

International Telecommunication Union.

United Nations Children's Fund.

United Nations Educational, Scientific and Cultural Organization.

United Nations Emergency Force.

United Nations Expanded Technical Assistance Program.

United Nations Forces in Cyprus.

United Nations High Commissioner for Refugees Program.

United Nations Operations in the Congo.

United Nations Relief and Works Agency for Palestine Refugees in the Near East.

United Nations Special Fund.

United Nations Training and Research Institute.

Universal Postal Union.

World Health Organization.

World Meteorological Organization.

Inter-American organizations:

Inter-American Children's Institute.

Inter-American Indian Institute.

Inter-American Institute of Agricultural Sciences.
Inter-American Tropical Tuna Commission.

Organization of American States.

Pan American Health Organization.

Pan American Institute of Geography and History.

Pan American Railway Congress Association.

Postal Union of the Americas and Spain.

Other regional organizations:

Central Treaty Organization.

Colombo Plan Council for Technical Cooperation in South and Southeast
Asia.

Indus Basin Development Program.

International Commission for the Supervision and Control of Peace in Laos.

North Atlantic Treaty Organization: Civilian Headquarters.

North Atlantic Treaty Organization: Parliamentary Conference.

Organization for Economic Cooperation and Development.
Southeast Asia Treaty Organization.

South Pacific Commission.

Other international organizations:

Central Commission for the Navigation of the Rhine.
General Agreement on Tariffs and Trade.

Hague Conference on Private International Law.

International Atomic Energy Agency.

International Bureau of Education.

International Bureau for the Permanent Court of Arbitration.
International Bureau for the Publication of Customs Tariffs.

International Bureau of Weights and Measures.

International Coffee Organization.

International Commission for the Northwest Atlantic Fisheries.

International Committee for European Migration.

International Cotton Advisory Committee.

International Council of Scientific Unions and Associated Unions.

International Criminal Police Organization.

International Hydrographic Bureau.

International Institute for the Unification of Private Law.

International Lead and Zinc Study Group.

International North Pacific Fisheries Commission.

International Rubber Study Group.

International Seed Testing Association.

International Sugar Council.

International Union of Official Travel Organizations.

International Bureau for the Protection of Industrial Property.

International Whaling Commission.

International Wheat Council.

Interparliamentary Union.

North Pacific Fur Seal Commission.

Permanent International Association of Navigation Congresses.

International finance organizations:

Inter-American Development Bank.

International Bank for Reconstruction and Development.

International Development Association.

International Finance Corporation.

International Monetary Fund.

Source: The above listing was prepared from report submitted by the Department of State to the Congress entitled "United States Contributions to International Organizations." for the fiscal year 1963, House Document No. 313, 88th Congress, 2d Session, and "The United States Budget for Fiscal Year 1966."

Mr. CASEY. I don't believe I have anything further, Mr. Chairman. Again I want to compliment this office for the manner in which they perform the service they do for the Congress, because you are the one independent arm of Congress to whom we can turn.

My constituents have not always been happy with your decisions, but I have always felt I could back up your decision. Mr. STAATS. I appreciate your comment.

Mr. ANDREWS. Mr. Langen?