*The estimate of $146,000 will provide approximately 5.0 man years of expert assistance at rates for individuals not to exceed the per diem rate of the equivalent of the top step of a GS-15. Their efforts will supplement the regular staff and provide expertise in specialized work areas which are needed intermittently.

**Assumes approval of FY-72 supplemental request of $35,000.

22.

Recurring Staff Travel: The amount of $72,000 is requested to support
the professional staff in carrying out the mission assigned the Office
of Telecommunications Policy. Extensive travel is required in connection
with (1) inspection of major communication facilities associated with the
National Communications System; (2) travel to commercial, university and
government research and development laboratories and centers; (3) travel
to international conferences such as those associated with the activities
of the International Telecommunication Union; (4) periodic meetings of
the NATO Civil Communications Planning Committee meetings in Brussels,
Belgium; (5) inspection and review of emergency communications facilities;
and (6) other travel by professional and senior staff to address
conference and participate in meetings and special seminars.

Invitational (Consultant) Travel: The amount of $14,000 is required for travel of consultants engaged in the conduct of special assignments for the Director of OTP, including travel for members of the Frequency Management Advisory Council and the Electromagnetic Radiation Management Advisory Council and other industry and Government advisory committees.

Transportation of Things:

*The amount of $50,000 is necessary to provide for rental of space
required during FY 72 and FY 73 to house the additional staff
authorized for FY 72. This amount includes funds necessary for
the relocation of occupants presently housed in space to be made
available to OTP.

The funds requested for FY 73 are required to conduct contractual studies and research projects.

Senator MONTOYA. The subcommittee will be in recess until 10 a.m. tomorrow.

(Thereupon, at 11:55 a.m., Tuesday, May 2, the subcommittee was recessed, to reconvene at the call of the Chair.)

DEPARTMENT OF THE TREASURY, U.S. POSTAL SERVICE, AND GENERAL GOVERNMENT APPROPRIATIONS FOR FISCAL YEAR 1973

MONDAY, MAY 8, 1972

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

U.S. SENATE,

Washington, D.C.

The subcommittee met at 2:05 p.m. in room 1224, New Senate Office Building, Hon. Joseph M. Montoya (chairman) presiding. Present: Senators Montoya, Allott, and McGee.

U.S. POSTAL SERVICE

STATEMENT OF HON. E. T. KLASSEN, POSTMASTER GENERAL
ACCOMPANIED BY:

BENJAMIN F. BAILAR, SENIOR ASSISTANT POSTMASTER GEN-
ERAL FOR SUPPORT

MELVIN C. BAKER, SENIOR ASSISTANT POSTMASTER GENERAL
FOR CUSTOMER SERVICES

JAMES P. BLAISDELL, SENIOR ASSISTANT POSTMASTER GEN-
ERAL FOR EMPLOYEE AND LABOR RELATIONS

PAUL N. CARLIN, SENIOR ASSISTANT POSTMASTER GENERAL
FOR EXECUTIVE FUNCTIONS

LOUIS A. COX, GENERAL COUNSEL

HAROLD F. FAUGHT, SENIOR ASSISTANT POSTMASTER GEN-
ERAL FOR MAIL PROCESSING

RICHARD F. GOULD, ASSISTANT POSTMASTER GENERAL FOR
FINANCE

ARTHUR EDEN, DIRECTOR, OFFICE OF RATES AND CLASSIFICA-
TION, FINANCE DEPARTMENT

WOODROW G. DOAK, MANAGER, BUDGET DIVISION, FINANCE
DEPARTMENT

PRESIDENTIAL REQUEST

Senator MONTOYA. The subcommittee will come to order.

Today the Senate Subcommittee on Treasury, Postal Service and General Government Appropriations will take testimony on the President's request for $1,424,039,000 for fiscal year 1973 for payment to the Postal Service Fund for public service costs, revenue foregone, and for meeting certain liabilities of the former Post Office Department. The President's proposed bill language will be inserted in the record at this point, together with a table reflecting 1972 and 1973 estimates and appropriations.

(The bill language and table follow :)

PAYMENT TO THE POSTAL SERVICE FUND

For payment to the Postal Service Fund for public service costs and for revenue foregone on free and reduced-rate mail, pursuant to 39 U.S.C. 2401 (b) and (c), and for meeting the liability of the] liabilities of the former Post Office Department to the Employees' Compensation Fund [,] and to postal employees for earned and unused annual leave as of June 30, 1971, pursuant to 39 U.S.C. 2004, [$1,217,522,000.] $1,424,039,000, of which $920,000,000 is for public service costs and $471,500,000 is for revenue foregone on free and reduced-rate mail.

[For an additional amount for "Payment to the Postal Service Fund", $200,000,000.]

'The appropriation act did not specify the amount to be applied to public service costs or free and reduced rate mail.

*For fully funding public service costs as authorized by 30 U.S.C. 2401 (b). Contained in H. Doc. 92-164.