EXECUTIVE OFFICE OF THE PRESIDENT

COUNCIL ON INTERNATIONAL ECONOMIC POLICY

STATEMENT OF JONATHAN C. ROSE, ACTING GENERAL COUNSEL

ACCOMPANIED BY:

ALLEN J. LENZ, EXECUTIVE SECRETARY

ARTHUR J. CRATEN, SUPERVISORY BUDGET ANALYST, GENERAL SERVICES ADMINISTRATION

SALARIES AND EXPENSES: BUDGET REQUEST

Senator MONTOYA. The next item is a request of $1 million for salaries and expenses of the Council on International Economic Policy. The Acting General Counsel, Mr. Jonathan Rose, will cover this item. Mr. Rose, do you want to submit your statement for the record or do you want to read it?

Mr. ROSE. Whichever you prefer, sir. It is a short statement.

PREPARED STATEMENT

Senator MONTOYA. Why don't you just submit it and then I will ask a few questions on it.

(The statement follows:)

Mr. Chairman and Members of the Committee:

I am honored to appear before this committee in support of

the Administration's request for funds to cover the Fiscal Year 1973 operations of the Council on International Economic Policy.

The Council fills a long standing need by providing a consistent, formally structured method to provide advice to the President and to insure the development of coherent policies concerning all the facets of

international economic issues.

The increasing importance of international economic matters and the great need for a visible and recognized means of policy development and coordination have steadily gained acceptance in recent years.

The establishment of the CIEP was recommended to the President

by his Advisory Council on Executive Organization, chaired by Mr. Roy L. Ash, in late 1970 in consideration of its finding that responsibilities for international economic affairs were dispersed among a large number of departments, agencies, and committees, with no consistent, formally structured means of dealing with these matters.

The President accepted this recommendation and established the Council on International Economic Policy by memorandum dated January

19, 1971.

Subsequently, the

Commission on International Trade and

Investment policy strongly recommended that the Council 'be given perman

ent status and sufficient funding through legislative action. "

Congress legislatively authorized the Council by Public Law 92-412

of 29 August 1972.

ORGANIZATION AND OPERATION OF THE COUNCIL

The statement of justification which I have submitted provides some

specific details on the organization and operation of the Council. Briefly, however, the Council itself is chaired by the President and includes cabinet members whose responsibilites include, or are affected by, the conduct

d our international economic affairs, as well as relevant members of the

Executive Office of the President.

The Council itself, comprised of the President and Cabinet level officers, meets periodically, as required, to fulfill its function. The council structure, however, provides other lower level interagency forums

for the conduct of the bulk of its work.

The Council is served by an Executive Director who has ready access to the President and is responsible for organizing the work of the general Secretariat of the Council. The Executive Director and the Council are

assisted by a small staff. The funding request you are considering covers the salaries of that staff as well as its operating expenses.

The staff of the Council is, of course, a crucial ingredient in

determining its success in providing the President the very best advice obtainable. To date, the Council staff has been formed entirely of personnel detailed from other government agencies. While the personnel provided by the agencies have been excellent and while the staff, I believe, has performed very well, the total reliance on detailed personnel has imposed a significant handicap on development of a regular staff.

The statutory authorization recently granted by Congress, together with the funds requested in this appropriation, will facilitate a more effective operation of the Council by permitting us to develop a more permanent staff, to obtain the services of highly qualified individuals from academic circles

or from other areas of the private sector, and to obtain the services of con

sultants on a short term basis.

The Council's staff will continue to contain a number of individuals

on detail from other agencies. This is essential to provide the necessary element of expertise from government and to enhance communications with the agencies themselves. However, the Council and the quality of advice

furnished to the President can profit from an infusion of expertise from

outside government.

The budget we are submitting is very largely a personnel costs budget, but the funds for other purposes are also important to the independence and

effective operation of the Council.

The law authorizing the Council on International Economic Policy directs that "The President shall transmit to the Congress an annual report on the International Economic position of the United States. Such report shall by submitted not later than sixty days after the beginning of each regular session of the Congress."

The law requires that the report must provide a considerable amount of information which we hope will be valuable to the Congress. The Council staff is anxious to produce an excellent report, not only because it will be valuable to the Congress, but because it will afford a means of providing other government offices and the public information which they should have concerning our increasingly important and fast changing international economic

situation.

Prompt action on this appropriation request will enable the Council

to take steps necessary to achieve its full potential in providing advice and assistance to the President and will permit moving forward in developing the kind of report to the Congress and to the nation which we believe the importance of the se matters makes essential.

I have attempted in this statement to briefly descirbe the role and functioning of the Council on International Economic Policy and the work of the staff which supports it.