American and other exporters to bid for sales to foreign governments. • An agreement on licensing will reduce the extent to which unnecessary or unduly complicated import licensing requirements impede trade. An agreement on customs valuation will encourage more uniform methods of appraising imports for the purpose of applying import duties. • An agreement on commercial counterfeiting will promote cooperation and uniform approaches for this growing trade problem. • An agreement on aircraft will provide a basis for fairer trade in this important U.S. export sector. • Agreements to improve the international trading framework will tighten the handling of international trade disputes, respond to needs of developing countries in a fair and balanced manner, modernize the international rules applicable to trade measures taken in response to balance-ofpayments emergencies, and provide a basis for examining the existing international rules on export and import restraints, while currently strengthening those rules through improvements in the dispute-settlement procedures. Several other agreements on tariff and non-tariff matters have been negotiated in response to specific requests that were made by the United States or other countries. These agreements are described in the attachments. In addition, members of the Administration will be consulting with the Congress about the implementation of several agreements on agricultural trade that we intend to enter into at about the time the Tokyo Round is concluded. These agreements will provide for a fairer international sharing of the burdens in interna tional wheat trade, and will encourage consultations and cooperation on international trade in coarse grains, meat, and certain dairy products. The agricultural agreements are also expected to improve the application of accepted international trading rules to agricultural trade. In accordance with procedures specified in the Trade Act, the United States will not enter into the agreements outlined above for the next 90 calendar days. After the agreements have been signed, they will be submitted for Congressional approval, together with whatever legislation and administrative actions may be needed to implement the agreements in the United States. The agreements will not take effect with respect to the United States, and will have no domestic legal force, until the Congress has specifically approved them and enacted any appropriate implementing legislation. During Congressional consideration of these agreements, we will also supply information on the related negotiations to reduce, harmonize, or eliminate tariff barriers, and on the recent establishment of an International Steel Agreement in the Organization for Economic Cooperation and Development. The success of the Tokyo Round and its implementation will be the product of a good working relationship among the Congress, the Administration, and the American public. Through these agreements and their domestic implementation, we can construct trade policies and institutions that advance our national interest and enhance the prosperity of our people. The President announced today that Mr. William Simpson of Gulfport, Miss., will join the White House staff immediately as Deputy Assistant to the President. In this capacity, Mr. Simpson will be working with Hamilton Jordan and his staff on the priority goals and programs of the administration. Simpson was born in Gulfport on July 29, 1923. He attended the Marion Military Institute, Marion, Ala., and the University of Mississippi before graduating from the U.S. Merchant Marine Academy at Kings Point, N.Y. He saw combat service as a naval midshipman and officer in the Pacific Theater in World War II. From 1947 to 1965, he was associated with his father and brother in operating the family shrimp and oyster canning facility in Gulfport. From 1965 to 1968, he was special assistant to Mississippi Governor Paul B. Johnson, Jr. Simpson also served as first chairman of the Mississippi Marine Conservation Commission and as president of the State Port Authority at Gulfport. From 1968 through 1978, Simpson was administrative assistant to Senator James O. Eastland of Mississippi, who served as President pro tempore of the Senate from 1972 until his recent retirement. Federal Pay and the Anti-Inflation Program Memorandum From the President. January 4, 1979 Memorandum for the Heads of Executive The success of our anti-inflation effort is critical to the economic well-being of the nation. To achieve this success, it is vital that the Government, in managing its own affairs, join with the rest of the nation in a positive commitment to reducing inflationary pressures. Accordingly, I have determined that it would be inconsistent with the public interest for any category of Federal pay rates to be increased by more than 5.5 percent during fiscal year 1979. To this end, this Administration and the Congress have frozen Federal executive pay altogether, and have placed a 5.5 percent ceiling on pay increases for most Federal workers-those under the General Schedule and related pay systems, the members of the uniformed services, and most Federal wage employees. However, there are substantial numbers of nonappropriated fund employees and other workers employed by entities of the Federal Government who are not covered by these Government-wide actions, since they are under a variety of relatively small pay systems over which you have pay setting authority. In order to ensure that proposed pay increases for other pay systems do not exceed the maximums for Federal pay that the Congress and I have set, the policy of this Administration is: In the public interest to control inflation, each officer or employee in the executive branch who has administrative authority to set rates of pay for any Federal officers or employees should exercise such authority, to the extent permissible under law, treaty, or international agreement, in such a way as to ensure that no rate of pay for any category of officers or employees is increased more than 5.5 percent during fiscal year 1979. Specific ally excluded from this limitation are rates of pay for foreign nationals authorized under the Foreign Service Act of 1946 as amended (22 U.S.C. 889) and increases in rates of pay to implement the minimum wage provisions of the Fair Labor Standards Act of 1938, as amended, as authorized under currrent agency policies. The Chairman of the Civil Service Commission, until January 1, 1979, and the Director of the Office of Personnel Management, on and after January 1, 1979, will provide you with any further advice or assistance you may need in complying with this policy. JIMMY CARTER Independent Water Project Executive Order 12113. January 4, 1979 By the authority vested in me as President by the Constitution and laws of the United States of America, in furtherance of the Water Resources Planning Act (79 Stat. 244; 42 U.S.C. 1962 et seq.), and in order to ensure coordinated planning and independent review of Federal water resource programs and projects, it is hereby ordered as follows: 1-101. The Water Resources Council shall ensure that it has established a current set of principles, standards, and procedures for Federal participants in the preparation of comprehensive regional or river basin plans and for the formulation and evaluation of Federal water and related land resources projects (42 U.S.C. 1962a-2). 1-102. The Council shall ensure that an impartial technical review is performed on preauthorization reports or proposals and preconstruction plans for Federal and Federally assisted water, and related land resources, projects and programs, as they are defined in the Council's principles and standards. 1-103. The Council shall develop a planning manual for use by each agency (a) in calculating benefits and costs by using the best available techniques and (b) in applying the principles and standards in a consistent manner. 1-104. The impartial technical review shall evaluate each report, proposal, or plan for compliance with (a) the Council's principles and standards, (b) the planning manual or, pending issuance of the manual, established agency procedures, (c) other Federal laws, regulations and guidelines relevant to the planning process, and (d) the goal of wide public participation in the development of project plans, including adequate opportunity for public comment and adequate consideration of those views. 1-105. (a) Beginning April 1, 1979, all agencies shall submit, prior to their approval by the head of the agency, preauthorization reports or proposals and preconstruction plans for Federal and Federally assisted water, and related land resources, projects and programs to the Council at least 90 days prior to the scheduled time for their submission to the Office of Management and Budget in support of authorization or funding requests for those activities in fiscal year 1981 and subsequent years. (b) An agency shall not submit to the Council more than one-third of the total reports, proposals, and plans scheduled for review in any fiscal year during any quarter of that fiscal year. (c) Within 60 days of the submission by an agency of a report, proposal, or plan, the Chairman of the Council shall transmit the results of the impartial technical review to the appropriate agency head, including identification of any specific variations from Council approved procedures and manuals and the steps necessary to bring the plan into conformance therewith. 1-106. (a) All agency reports, proposals and plans submitted to the Council for review shall include sufficient information to allow an adequate technical review. In particular, this information shall include: (1) Sufficient documentation to allow a technical review of the analysis by the agency of the ratio of the benefit to the cost. (2) Evidence that an adequate evaluation has been made of reasonable alternatives, including nonstructural ones, for addressing the water-related problems of the affected regions and communities. (3) An explanation of the relationship of the plan to any approved regional water resource management plans. (4) A summary of the consideration given to water conservation measures and a listing of those measures incorporated into the plan. (5) Evidence that there has been compliance with relevant environmental and other laws and requirements. (6) Evidence that the public and State and local officials have been involved in the plan formulation process. (b) If the documents and information necessary for the review are not initially submitted, the Chairman may extend the review period by not more than 30 days. If the documents and information submitted do not demonstrate compliance, a finding detailing the areas of noncompliance will be transmitted to the agency head. 1-107. Before any agency submits to the Congress, or to any committee or member thereof, a report relating to, or affecting in whole or in part its advance programs, or the public works and improvement projects comprising such programs, or the results of any plan preparation for such programs or projects, such report or plan shall be submitted to the Office of Management and Budget for advice as to its relationship to the program of the President. When such report or plan is thereafter submitted to the Congress, or to any committee or member thereof, it shall include a statement of the advice received from the Office of Management and Budget. 1-108. Agency submissions to the Office of Management and Budget of the reports, proposals or plans reviewed pursuant to this Order shall be accompanied by a statement of the findings transmitted to the agency head. 1-109. Executive Order No. 9384 of October 4, 1943, as amended, is revoked. JIMMY CARTER The White House, January 4, 1979. [Filed with the Office of the Federal Register, 3:37 p.m., January 5, 1979] NOTE: The text of the Executive order was released on January 5. Independent Water Project Memorandum From the President. Memorandum for the Chairman and Members of the Water Resources Council In my Water Resources Policy Reform Message of June 6, 1978, I stated that an independent project review unit would be created in the Water Resources Council to ensure water projects have been planned in accordance with the Principles and Standards and other planning requirements. Today I have signed an Executive Order which establishes this independent water project review function in the Water Resources Council. I look forward to your speedy organization of the independent review unit. As described in my Water Policy Message, I expect the review function will be performed by a professional staff of about 30 and will be operational in time for the 1981 budget cycle. Rules, regulations and procedures necessary to implement the independent review function should be published in proposed form in the FEDERAL REGISTER within six weeks and in final form within the following six months. JIMMY CARTER NOTE: The text of the memorandum was released on January 5. Environmental Effects Abroad of Major Federal Actions Executive Order 12114. January 4, 1979 By virtue of the authority vested in me by the Constitution and the laws of the United States, and as President of the United States, in order to further environmental objectives consistent with the foreign policy and national security policy of the United States, it is ordered as follows: SECTION 1. 1-1. Purpose and Scope. The purpose of this Executive Order is to enable responsible officials of Federal agencies having ultimate responsibility for authorizing and approving actions encompassed by this Order to be informed of pertinent environmental considerations and to take such considerations into account, with other pertinent considerations of national. policy, in making decisions regarding such actions. While based on independent authority, this Order furthers the purpose of the National Environmental Policy Act and the Marine Protection Research and Sanctuaries Act and the Deepwater Port Act consistent with the foreign policy and national security policy of the United States, and represents the United States government's exclusive and complete determination of the procedural and other actions to be taken by Federal agencies to further the purpose of the National Environmental Policy Act, with respect to the environment outside the United States, its territories and possessions. SEC. 2. 2-1. Agency Procedures. Every Federal agency taking major Federal actions encompassed hereby and not exempted herefrom having significant effects on the environment outside the geographical borders of the United States and its territories and possessions shall within eight. months after the effective date of this Order have in effect procedures to implement this Order. Agencies shall consult with the Department of State and the Council on Environmental Quality con |