members to be appointed by the President, by and with the advice and consent of the Senate. The Chairman shall be designated by the President and shall receive compensation at the rate of $20,500 per annum. The other two Board members shall receive compensation at the rate of $20,000 per annum. All actions of the Board except those relating to internal administrative matters shall be by affirmative vote of a majority of its members. The Chairman shall be responsible for the internal administrative direction of the Board and its staff. FUNCTIONS OF THE BOARD SEC. 2. (a) The Board shall assist and advise the President in the discharge of his responsibilities as President of the United States in connection with United States telecommunication resorces to meet the changing demands of national security and welfare and shall act for him in the discharge of his responsibilities arising from the Communications Act of 1934, as amended, for management of the Federal Government's use of the radio frequency spectrum in such a way as to provide the optimum accommodation of present and foreseen future needs of national security, safety of life and property, international relations, and the economic, social, educational, and political life of the Nation and the general welfare of its people. (b) The Board shall formulate telecommunication policies, plans, programs, and standards designed to assure efficient telecommunication management within the executive branch of the Government with due regard for the maintenance of sound and healthy commercial telecommunication services both domestic and foreign. The Board shall coordinate the formulation of United States policies and positions within the executive branch of the Government for international negotiation and shall assist and advise the Secretary of State in the projection internationally of United States telecommunication policies and positions. The Board shall provide policy guidance for and direct the implementation of United States international telecommunication treaty obligations by the several agencies in the executive branch of the Government. (c) The Board shall carry out such policymaking, planning, and executive functions as are required for the discharge of the President's responsibilities arising from section 305 of the Communications Act of 1934, as amended, for the assignment of radio frequencies to Government stations or classes of stations. The Board shall formulate policies, criteria, engineering standards, and procedures for the allocation and assignment of radio frequencies to the several agencies of the executive branch of the Government and for the use thereof. The Board shall maintain or cause to be maintained suitable records of assignment of frequencies to Government users and the publication of lists of Government frequency assignments as appropriate. (d) The Board shall, as a special duty, review the national table of radio frequency allocations being employed by Federal Government and non-Federal Government users. This review shall be done in consultation with the Federal Communications Commission to the end that a determination be made as to whether the current division of radio spectrum serves the national interest to an appropriate degree. The Board shall make a report of findings to the President for transmission to Congress. The report shall contain, in addition to the findings resulting from the review and the comments of the Federal Communications Commission thereon, such recommendations as may be considered desirable and applicable. The report is to be made at the earliest date consistent with the task to be performed but no later than two years from the appointment and qualification of the Board members. (e) The Board shall maintain continuing review of the national table of radio frequency allocations, coordinating with the Federal Communications Commission, for the purpose of insuring an appropriate division of spectrum space between the Federal Government and non-Federal Government users. The Board shall formulate, and coordinate with the Federal Communications Commission, the development of long-range plans for future use of the radio spectrum resource. The Board shall encourage the operational application of new techniques, improved equipment, and methods to promote a more effective use of the radio spectrum and to conserve radio frequencies. (f) The Board shall, as a further special duty, (1) study the role of the Federal Government in the management of United States telecommunications; (2) study the administrative organizations for discharging the Government's responsibilities with particular reference to the division of responsibility under the Communcations Act of 1934, as amended, and the terms of this Act; and (3), not later than two years from the appointment and qualification of the Board members, report to the President for transmission to the Congress the Board's recommendations on what changes, if any, should be made in the existing administrative organization. (g) The Board shall carry out such other duties and responsibilities as may be directed by the President from time to time. (h) The Board shall establish and maintain liaison as required with departments and agencies of the Federal Government and the telecommunications industry, including but not limited to the broadcasting, electronic, and communications services, with particular reference to research and development and new manufacturing techniques and capabilities, for the purpose of improving telecommunication services, the conservation of the spectrum, and for increasing productivity of the total resource. The Board shall encourage research and studies in those areas where the need exists. (i) The Board shall, in the formulation and promulgation of policies, plans, programs, criteria, standards, and procedures of national import, consult as appropriate with the Federal Government agencies. (j) The Board is also authorized: (1) subject to the civil service and classification laws, to select, employ, appoint, and fix the compensation of such officers, employees, attorneys, and agents as shall be necessary to carry out the provisions of this Act, and to define their authority and duties; (2) to appoint such advisory committees as shall be appropriate for the purpose of consultation and advice to the Board in perforamnce of its functions hereunder and to obtain services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55 (a)), at rates not to exceed $100 per diem for individuals; and (3) to place in grades 16, 17, and 18 of the General Schedule established by the Classification Act of 1949, as amended, not to exceed ten positions which shall be additional to the number authorized by section 505 of that Act. ORGANIZATION OF NATIONAL TELECOMMUNICATIONS BOARD SEC. 3. The term of office of each member of the Board shall be six years, except that (1) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term; and (2) the terms of office of the members first taking office after the date of enactment of this Act shall expire, as designated by the President at the time of appointment, one at the end of two years, one at the end of four years, and one at the end of six years. Two members shall constitute a quorum of the Board. Each member of the Board shall be a citizen of the United States. ANNUAL REPORT SEC. 4. The Board shall make an annual report to the President for transmission on or before the 15th of March of each year to the Congress, summarizing the activities of the Board for the previous calendar year and making such recommendations as it may deem appropriate. TRANSFER OF RECORDS, PROPERTY, PERSONNEL, AND FUNDS SEC. 5. The records, property, personnel, and funds used, held, employed, available, or to be made available, in connection with the functions vested in the Director of the Office of Civil and Defense Mobilization by Executive Order 10460 of June 16, 1953, and Executive Order 10705 of April 17, 1957, shall be transferred, consonant with law to the Board. APPROPRIATIONS SEC. 6. There are hereby authorized to be appropriated such sums as may be necessary and appropriate for the carrying out of the provisions and purposes. of this Act. Hon. OREN HARRIS, EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D.C., June 8, 1959. Chairman, Committee on Interstate and Foreign Commerce, MY DEAR MR. CHAIRMAN: Reference is made to your request to the Bureau of the Budget for its views with respect to H.R. 7057, a bill to provide the President with the means to discharge satisfactorily his responsibilities in connection with national telecommunication resources including the Government's use of the radio frequency spectrum. The President has recommended to the Congress that a study be made of current telecommunications practices, including an examination of appropriate executive branch organization for the allocation and utilization of frequencies. This Presidential recommendation is embodied in House Joint Resolution 331 which is before your committee for consideration. It is believed that H.R. 7057 should not be enacted pending completion of the study called for by House Joint Resolution 331. That study might either support proposals in H.R. 7057 or might lead to other conclusions. In the opinion of the Bureau of the Budget, the particular organizational device recommended by the report, a National Telecommunications Board of three members appointed by the President, subject to Senate confirmation, and with fixed 6-year overlapping terms of office is inappropriate for the Executive Office. As a Presidential staff unit the Board should support and assist the President in carrying out his responsibilities as Chief Executive. The provision of a 6-year term of office would make it possible that a President would have an unresponsive Board during his first term in office. Necessary continuity can best be obtained through the existence of a highly qualified technical staff. The desirability of using a board in the Executive Office has been thoroughly explored several times. The first Hoover Commission in its report on "General Management of the Executive Branch" (pp. 16-17) summed up the arguments against this arrangement as follows: "To put a full-time board at the head of a staff agency is to run the risk of inviting public disagreement among its members and of transplanting within the President's Office the disagreements on policy issues that grow up in the executive departments or in the Congress. It also makes cooperation with related staff agencies more difficult." The same report (p. 16) explored the issue of Senate confirmation and came up with the following recommendation: "The Congress, when it enacted the Budget and Accounting Act of 1921, wisely made the Director of the Bureau of the Budget a staff agent to the President, to be appointed by him without the Senate confirmation that properly goes with appointment of heads of the operating agencies. Similarly, it recently authorized the President to appoint the executive secretary of the National Security Council without Senate confirmation." Sincerely yours, PHILLIP S. HUGHES, Assistant Director for Legislative Reference. Hon. OREN HARRIS, GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: Reference is made to your request to the Secretary of Defense for the views of the Department of Defense with respect to H.R. 7057, 86th Congress, a bill "To provide the President with the means to discharge satisfactorily his responsibilities in connection with national telecommunication resources including the Government's use of the radio frequency spectrum." The purpose of the bill is to establish a National Telecommunications Board in the Executive Office of the President primarily to (1) assist and advise the President in the discharge of his responsibilities in connection with U.S. telecommunication resources; (2) formulate policies, plans, programs, and standards designed to assure efficient telecommunication management within the executive branch of the Government; (3) carry out such policymaking, planning, and executive functions in the assignment of radio frequencies to Government stations or classes of stations; (4) review and continue to review the national table of radio frequency allocations being employed by the Federal Government and non-Federal Government users for the purpose of insuring an appropriate division of spectrum space; and (5) study the role of the Federal Government in the management of U.S. telecommunications. There appears to be no justification at this time for the permanent establishment of a National Telecommunications Board as proposed by H.R. 7057. Accordingly, the Department of Defense does not support the enactment of H.R. 7057 and reiterates its position of May 1, 1959, to you with regard to House Joint Resolution 331, a resolution "To establish a commission to study and report on the U.S. telecommunication resource with special attention to the radio spectrum," since upon completion of the Commission's report of the study and investigation, which study is similar to that proposed in H.R. 7057, the Commission shall cease to exist. The Bureau of the Budget has advised that there is no objection to the submission of this report to the Congress. Sincerely yours, Hon. OREN HARRIS, ROBERT DECHERT. DEPARTMENT OF STATE, Washington, D.C., June 16, 1959. Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. HARRIS: I have received your letter of May 14, 1959, requesting the Department's comments on H.R. 7057, introduced by you, "To provide the President with the means to discharge satisfactorily his responsibilities in connection with national telecommunication resources including the Government's use of the radio frequency spectrum." This bill relates to similar subject matter to that in House Joint Resolution 331, "To establish a commission to study and report on the U.S. telecommunication resource with special attention to the radio spectrum," on which the Department commented to you in my letter dated May 29, 1959. The Department has studied H.R. 7057 and reviewed House Joint Resolution 331 and believes that substantial benefits would result from the adoption of House Joint Resolution 331 and is in favor of the general objectives of H.R. 7057. While the solution suggested in H.R. 7057 would seem preferable eventually in that it would establish a continuing facility at a Government level where a more comprehensive treatment can be given to the problems involved, the overlappingterm Board form of organization may, perhaps, be inappropriate for this purpose as compared with a single administrator in the Executive Office of the President. For this reason and because of the need for careful consideration of the related effects of such organization before its final adoption, the Department prefers the adoption of House Joint Resolution 331 at this time. The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this report. Sincerely yours, WILLIAM B. MACOMBER, Jr., Assistant Secretary (For the Acting Secretary of State). FEDERAL AVIATION AGENCY, Hon. OREN HARRIS, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: This is in reply to your letter of May 14, 1959, for a report on H.R. 7057, a bill "To provide the President with the means to discharge satisfactorily his responsibilities in connection with national telecommunication resources including the Government's use of the radio frequency spectrum." The purpose of this bill is to establish in the Executive Office of the President a National Telecommunication Board in order to provide the President with a means to satisfactorily discharge his responsibilities in connection with the national telecommunication resources including the use of the radio frequency spectrum. The Board would be empowered to advise the President in the discharge of responsibilities, as well as to formulate policies, plans, and programs to carry out such policymaking; and also, as a special study, it would review the national table of radio frequency allocations being employed by Federal and nonFederal users. It would be required to make an annual report to the President to transmit to the Congress. The Federal Aviation Agency has carefully reviewed the provisions of H.R. 7057, and, after consideration, finds that it would support the approach to this problem contemplated by House Joint Resolution 331. It is the considered opinion of the Federal Aviation Agency that a temporary commission to investigate and study this area should precede the establishment of any permanent Board. Therefore, this Agency would support House Joint Resolution 331 in preference to H.R. 7057. The Bureau of the Budget has advised that it interposes no objection to the submission of this report to your committee. Sincerely yours, ALAN L. DEAN (Acting for E. R. Quesada, Administrator). The CHAIRMAN. I have made this somewhat lengthy recital of congressional efforts to deal with the spectrum problem referring to the two studies in the last 10 years, one the President's Advisory Board in 1950 and 1951 and then the Cooley committee last fall, in order to have incorporated in this hearing record a reasonably complete history of the various proposals which have been made to bring about a solution of the frequency allocation problems with which the Congress, the executive branch and all users of the radio spectrum have been confronted. It is my hope that the panel discussion scheduled for today and tomorrow will help us to identify the problems and clarify the issues that must be faced in connection with any improvement of present methods of spectrum management. I think to start off with, it would be advisable to have the panel members identify themselves and to expedite it, Dr. Stewart, I believe I will let you start off and then go on around so that we can for the record have each one identified who is to participate. Mr. STEWART. My name is Irvin Stewart, one time a member of the Federal Communications Commission, more recently president of West Virginia University, currently a professor in that university on leave of absence for 1 year. The CHAIRMAN. Thank you. Dr. Cooley? Mr. COOLEY. I am Victor E. Cooley. I spent my business life with the Bell Telephone Co. I am now retired, but was for 42 years Deputy Director of the Office of Defense Mobilization just before retirement. The CHAIRMAN. And chairman of the Cooley Advisory Committee appointed by the President last year, if I may help you out. Mr. QUESADA. Mr. Chairman, I am Mr. E. R. Quesada, the Administrator of the Federal Aviation Agency. The CHAIRMAN. Referred to as General Quesada. Mr. DOERFER. I am John Doerfer. I have been a Commissioner since 1953 on the Federal Communications Commission, and am presently its Chairman. Mr. BARTLEY. Mr. Chairman, I am Robert T. Bartley, member of the Federal Communications Commission since 1952, member of the |