As Mr. McNamara pointed out, there are frequent regular and ad hoc meetings between officials of the two Departments, including the Joint Chiefs of Staff, which give depth to this cooperation. On our side, we have created the Office of the Deputy Assistant Secretary for Politicomilitary Affairs to assist the supervisory level of the State Department in the management and conduct of all the Department's relations with the Department of Defense, including the Military Establishment.16 It is intended to provide leadership on such matters within the State Department and thereby enable it to fulfill more effectively its role of providing timely political guidance to other governmental agencies on politicomilitary matters.

With regard to broader training of personnel, Secretary McNamara told you of the present stage of the State-Defense Exchange Program," and I fully share his favorable preliminary impression of the results. In addition, State now has 32 officers on detail to the Department of Commerce, as well as some 15 divided among other important agencies such as Treasury, Labor, CIA, USIA, and ICA. We are also reviewing the respective training courses for senior officers in the War Colleges and our Foreign Service Institute, with a view to better integration of training and matters of high-level concern.

Mr. Bell's [Director, Bureau of the Budget] testimony dealt fully with the very important question of the relationship between the Department of State and the Bureau of the Budget in matters affecting national policy.18 As he pointed out, arrangements have been made which assure that cost and budget considerations are worked into programs of military and economic aid, regional and country planning, and into the reports of the task forces, at an early stage in their development.

One of the most difficult and longstanding problems of the Department of State has been its complex pattern of relations with other departments and agencies of the Government on international economic, commercial, and financial matters.

As you know, the President earlier this year abolished the Council on Foreign Economic Policy 19 and emphasized the role of leadership which the Department of State must play in the development and coordination of our foreign and economic policies. This role involves contacts with other departments and agencies at almost every level, but the principal responsibility for exercising the Department's leadership in this field rests with the Under Secretary for Economic Affairs, George W. Ball. To assist him in dealing with issues which require high-level policy consideration there has recently been estab

16

Effective May 16, 1961, Jeffrey C. Kitchen was appointed Deputy Assistant Secretary for Politico-Military Affairs.

"Initiated Jan. 9, 1961; see the Department of State Bulletin, Jan. 30, 1961, pp. 169-170 and ibid., July 10, 1961, pp. 92–93.

18

Organizing for National Security-State, Defense, and the National Security Council: Hearings, etc.-Part VIII, pp. 1133–1171 and ibid., part IX, pp. 11731181.

19 See the Department of State Bulletin, Jan. 30, 1961, pp. 157–159.

lished an arrangement whereby the under secretaries of the departments principally concerned with economic and trade matters hold regular meetings to discuss these issues.

Scheduling of matters for consideration by the National Security Council is normally arranged by the President's Special Assistant for National Security, Mr. McGeorge Bundy, working in close cooperation with the appropriate officers in the Department of State and other departments and agencies. Responsibility for presentation is assigned to the department chiefly concerned. An effort is made to present issues in breadth and depth and in terms of the alternate courses of action offered. Once a decision is taken by the President, clear responsibility is assigned to the appropriate agency, in most cases the Department of State, for the coordinated execution of the agreed policy. Thus the principle of departmental responsibility, which was emphasized in the excellent presentation made to your subcommittee by Mr. Don Price [Dean, Graduate School of Public Administration, Harvard University],20 is adhered to throughout.

In conclusion I should like to say that in my judgment the present system does go a long way toward meeting the objectives recommended by your subcommittee. But at the same time I do not wish to imply that we have no problems yet to resolve. We will continue to seek for ways of providing the President with ever greater flexibility in focusing his attention, and that of the Cabinet officers involved, on problems requiring high-level decision.

[THE MUTUAL EDUCATION AND CULTURAL EXCHANGE ACT OF 1961: Public Law 87-256, Approved September 21, 1961 (Excerpt)-Ante, doc. 657]

[ARMS CONTROL AND DISARMAMENT ACT: Public Law 87-297, Approved September 26, 1961-Ante, doc. 550]

[ADMINISTRATION OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 1954, AS AMENDED: Executive Order No. 10900, January 5, 1961, as Amended Through Executive Order No. 10972, November 3, 1961-Ante, doc. 642]

[ADMINISTRATION OF FOREIGN ASSISTANCE AND RELATED FUNCTIONS: Executive Order No. 10973, November 3, 1961 (Excerpt)-Ante, doc. 648]

20

Organizing for National Security-State, Defense, and the National Security Council: Hearings, etc.-Part IX, pp. 1230-1278.

B. Appropriations

664. SUPPLEMENTAL APPROPRIATIONS FOR THE DEPARTMENT OF STATE FOR FISCAL YEAR 1961: Public Law 87-14, Approved March 31, 1961 (Excerpts)1

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated out of any money in the Treasury not otherwise appropriated, to supply supplemental appropriations (this Act may be cited as the "Third Supplemental Appropriation Act, 1961”) for the fiscal year ending June 30, 1961, and for other purposes, namely:

DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

SALARIES AND EXPENSES

For an additional amount for "Salaries and expenses", $10,140,000.

REPRESENTATION ALLOWANCES

For an additional amount for "Representation allowances", $22,000.

EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

For an additional amount for "Emergencies in the diplomatic and consular service", $1,300,000.

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

INTERNATIONAL CONFERENCES AND CONTINGENCIES

For an additional amount for "International conferences and contingencies", $100,000.

For additional amounts for appropriations for the fiscal year 1961, for increased pay costs authorized by or pursuant to law, as follows:

1H.R. 5188, 87th Cong.; 75 Stat. 20, 30-31, 39. See H. Doc. 58, 87th Cong., Jan. 18, 1961; Third Supplemental Appropriation Bill, 1961: Hearings [Before a Subcommittee of the Committee on Appropriations, U.S. House of Representatives], 87th Congress, 1st Session; H. Rept. 52, 87th Cong., Mar. 3, 1961; Third Supplemental Appropriation Bill for 1961: Hearings [Before the Committee on Ap propriations, U.S. Senate], 87th Congress, 1st Session, on H.R. 5188; S. Rept. 85, 87th Cong., Mar. 24, 1961; and H. Rept. 211, 87th Cong., Mar. 29, 1961 (the conference report).

DEPARTMENT OF STATE

International organizations and conferences: "Missions to international organizations", $85,000;

International commissions:

International Boundary and Water Commission, United States

and Mexico:

"Salaries and expenses", $38,000;

"Operation and maintenance", $39,000;

"American sections, international commissions", $17,000; "International fisheries commissions", $21,000;

Educational exchange: "International educational exchange activi

ties", $311,000;

665. SUPPLEMENTAL APPROPRIATION FOR THE DEPARTMENT OF STATE FOR FISCAL YEAR 1961: Public Law 87-74, Approved June 30, 1961 (Excerpts)2

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated out of any money in the Treasury not otherwise appropriated, to supply supplemental appropriations (this Act may be cited as the "Fourth Supplemental Appropriation Act, 1961") for the fiscal year ending June 30, 1961, and for other purposes, namely:

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

For an additional amount for "Contributions to international orga nizations", $32,204,000.

2 H.R. 7712; 75 Stat. 195. See Fourth Supplemental Appropriation Bill: Hearings Before a Subcommittee of the Committee on Appropriations, U.S. House of Representatives, 87th Congress, 1st Session; H. Rept. 547, 87th Cong., June 16, 1961; Fourth Supplemental Appropriation Bill for 1961: Hearings Before the Committee on Appropriations, U.S. Senate, 87th Congress, 1st Session, on H.R. 7712; and S. Rept. 427, 87th Cong., June 20, 1961.

666. THE DEPARTMENT OF STATE APPROPRIATION ACT, 1962: Title I of Public Law 87-264, Approved September 21, 1961 3

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the Departments of State and Justice, the Judiciary, and related agencies for the fiscal year ending June 30, 1962, namely:

TITLE I-DEPARTMENT OF STATE
ADMINISTRATION OF FOREIGN AFFAIRS

SALARIES AND EXPENSES

For necessary expenses of the Department of State, not otherwise provided for, including expenses authorized by the Foreign Service Act of 1946, as amended (22 U.S.C. 801-1158), not otherwise provided for; expenses necessary to meet the responsibilities and obligations of the United States in Germany (including those arising under the supreme authority assumed by the United States on June 5, 1945. and under contractual arrangements with the Federal Republic of Germany); salary of the United States member of the Board for the Validation of German Bonds in the United States at the rate of $17,100 per annum; expenses of the National Commission on Educational, Scientific, and Cultural Cooperation as authorized by sections 3, 5, and 6 of the Act of July 30, 1946 (22 U.S.C. 2870, 287q, 287r); purchase (not to exceed five) or hire of passenger motor vehicles: printing and binding outside the continental United States without regard to section 11 of the Act of March 1, 1919 (44 U.S.C. 111); services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a); purchase of uniforms; payment of tort claims, in the manner authorized in the first paragraph of section 2672, as amended, of title 28 of the United States Code when such claims arise in foreign countries: dues for library membership in organizations which issue publications to members only, or to members at a price lower than to others; employment of aliens by contract for services abroad; refund of fees erroneously charged and paid for passports; radio communications: payment in advance for subscriptions to commercial information, telephone and similar services abroad; care and transportation of prisoners

H.R. 7371, 87th Cong.; 75 Stat. 545. See H. Doc. 115, 87th Cong., Mar. 20, 1961; H. Doc. 210, 87th Cong., July 13, 1961; Departments of State and Justice, the Judiciary, and Related Agencies Appropriations for 1962: Hearings Before a Subcommittee of the Committee on Appropriations, U.S. House of Representatives, 87th Congress, 1st Session; H. Rept. 442, 87th Cong., May 29, 1961; Departments of State, Justice, the Judiciary, and Related Agencies Appropriations, 1962: Hearings Before a Subcommittee of the Committee on Appropriations, T.S. Senate, 87th Congress, 1st Session, on H.R. 7371; S. Rept. 731, 87th Cong., Aug. 14, 1961; and H. Rept. 1163, 87th Cong., Sept. 11, 1961 (the conference report).