Comparison of armed services and Agency for International Development personnel assigned at Lima, Peru, for police training and similar pur- Use of United States Government-owned Peruvian currency for construc- Use of United States Government-owned Argentine currency for construc- tion of an embassy office building in Buenos Aires, Argentina.. U.S. military personnel assigned at Lima, Peru, since 1956-- Absence of Marine guards at the U.S. Embassy in Prague, Czechoslovakia. 94-95 Comparative quarters allowance savings that would result from construc- tion of staff apartments in Canberra, Australia.. Supplemental views by Mr. Kass on Tokyo, Japan.. Age of Rothschild property in Paris, France_- Memorandum from Mr. Garfield I. Kass on Embassy building program, Estimated value of chancery in Taipei, Taiwan_- Approximate annual turnover among domestic clerical staff in the Depart- FOREIGN SERVICE BUILDINGS ACT AMENDMENTS OF 1966 MONDAY, AUGUST 9, 1965 HOUSE OF REPRESENTATIVES, ORGANIZATION AND FOREIGN OPERATIONS, Washington, D.C. The subcommittee met at 10:30 a.m., in room 2255, Rayburn House Office Building, Hon. Wayne L. Hays (chairman of the subcommittee) presiding. Mr. HAYS. This morning the committee is in session to hear Secretary Crockett, Mr. Johnstone, and others in the new foreign building program for the next 2 fiscal years. Secretary Crockett? STATEMENT OF HON. WILLIAM J. CROCKETT, DEPUTY UNDER SECRETARY OF STATE FOR ADMINISTRATION; ACCOMPANIED BY RALPH SCARRITT, DIRECTOR-DESIGNATE, FOREIGN BUILDINGS OFFICE; L. V. DEL FAVERO, ACTING DIRECTOR; ORLEN C. RALSTON, DEPUTY DIRECTOR; PAUL R. SEREY, EXECUTIVE OFFICER; CHARLES V. SWAN, BUDGET OFFICER, ALL OF THE FOREIGN BUILDINGS OFFICE; RALPH ROBERTS, DEPUTY ASSISTANT SECRETARY FOR BUDGET AND FINANCE; AND J. E. LYERLY, DEPUTY LEGAL ADVISER FOR ADMINISTRATION, DEPARTMENT OF STATE Mr. CROCKETT. Mr. Chairman and Mrs. Bolton, I have a very short statement I would like to make, and before Mr. Johnstone offers his remarks for the building program I would like to express my thanks for the confidence and continued interest and support this committee has shown in our buildings program over the past 4 years. Both Mr. Johnstone and I have learned that we can count on your understanding and your cooperation, and I think this year's enactment of the Saigon legislation indicates your speed of action when speed is required. As you may already know, Mr. Johnstone left the Foreign Buildings Office in April, preparatory to departing for his new assignment later this month. He has returned to the Buildings Office at my request to testify before the committee on the proposed building legislation. Direction of the buildings program has been turned over to Mr. Ralph Scarritt, who is here to observe the proceedings so that he will be more familiar with the committee's procedures when he presents the program to you next time. Mr. Scarritt has had a good many years of experience in the Department of State and is presently Counselor for Administration at the Embassy in Mexico City. I am confident Mr. Scarritt can continue the excellent pattern of relationship with the committee that Mr. Johnstone has set. Mr. Scarritt will inherit a very promising assistant in Mr. Clemmer Ralston, who has recently been made Deputy Director of the Foreign Buildings Office. Mr. Ralston is also present for the hearings so that he may function the more profitably as second in charge. Between Mr. Ralston and Mr. Del Favero, who has familiarity with the program that comes from long years of experience in the Buildings Office and association with construction and real estate activities, Mr. Scarritt will not lack for intelligent and experienced help. Looking back on his 4 years as Deputy Assistant Secretary for Foreign Buildings, there is a lot Mr. Johnstone has done of which he can rightfully be proud. He took charge of the program when the morale of the staff was, I think, at its lowest ebb and when this committee's confidence in the leadership of the program and its sympathy for program objectives had all but disappeared. I don't believe I need dwell on the improvements Mr. Johnstone made in the organization, or on the success of his efforts to regain the committee's confidence. That he has achieved what he set out to do in both areas is evidenced by the pace at which the buildings operation is now moving. This in turn demonstrates that the committee's belief in the program's policy and leadership has been restored. I want to touch briefly on one or two points which I think are particularly important in connection with the proposed legislation. First, we want good, well-constructed buildings that are functional and free of luxury trappings. We want them to be of obvious American design with proper attention given to local architecture, culture, and tradition. We are prepared to sacrifice esthetic values, where necessary, however, in favor of security from mob violence for our personnel and property. Secondly, we want to construct and furnish these buildings with American materials to the maximum extent possible. And we want to encourage American contractors to build them under certain conditions and in certain situations. I think both these policies are actually sound management principles which the buildings program for the Department of State can and must follow. To a large extent they have already been adopted under Mr. Johnstone's direction and with the support of this committee. Every effort should be made to expand their application wherever possible. There is also a matter concerning operating expenses for the buildings program which is of considerable importance and warrants special mention. While I am aware the committee has not been receptive to our request for continuous authority for this category of costs, I feel obliged to make another plea, for I sincerely believe that continuous authority for these recurring expenses is needed. Except for the buildings program, the Department as a whole has continuous authority for salaries and expenses, and it seems to us that expenditures for furnishings, for maintenance, repair, and minor improvements of buildings and for salaries of buildings personnel are all similar costs. I am convinced we can administer the program more efficiently if these recurring costs are not subject to periodic requests for authorization. Thank you, Mr. Chairman and members of the committee, for giving me your attention. Mr. Chairman, there is only one other point I would like to make. As you know, we have come up before this committee to review the past and to ask in each case for 2 years' legislation, keeping our program, therefore, 1 year ahead of the appropriations process. This is advantageous from our point of view. I hope that it has been advantageous and satisfactory to the committee because it has always given us 1 year ahead to plan on. It has given us a chance to tell you what we are doing and what we plan, at the same time having a basis for continuing appropriations. That concludes my remarks, Mr. Chairman. Mr. Johnstone has a prepared statement. Mr. HAYS. Mr. Johnstone. STATEMENT OF HON. JAMES R. JOHNSTONE, FORMER DEPUTY ASSISTANT SECRETARY FOR FOREIGN BUILDINGS, DEPARTMENT OF STATE Mr. JOHNSTONE. Thank you, Mr. Chairman and members of the committee, for taking time out of your busy schedule to consider this proposed legislation for the Foreign Service buildings program. I expect to take up my new duties as consul general in Frankfurt, Germany, later this month, so this will undoubtedly be my last opportunity to meet with you. I sincerely hope each of you will have occasion to visit Frankfurt while I am there. I assure you of a hearty welcome. The committee's interest in what we are doing in the overseas buildings field and your understanding of our aims and purpose are very much appreciated. The detailed review of the buildings projects that the committee conducted when we appeared before you in 1962, 1963, and on other occasions was extremely helpful to us in carrying out the program. I know the Department can continue to count upon the committee's same thoughtful consideration. Now that direction of the foreign buildings operations is a responsibility that is no longer mine, I can say in all sincerity that the last 41⁄2 years covered a very satisfying period in my life. The work was interesting, yet demanding, with a new challenge to be faced almost every day. The privilege of working with this committee has been a rewarding experience and one I am not likely to forget. I consider that we accomplished a good deal while I was in the Foreign Buildings Office, and perhaps now is an appropriate time to give an accounting of my stewardship. Since 1961, we have: 1. Accomplished a reduction of 130 positions or 51 percent of the staff. From a high of 255 positions in early 1961, the authorized complement is now 125. The current number of positions is better |