JUSTIFICATION

This appropriation provides for the salaries and other operating expenses of the Department in Washington and for all U.S. embassies, legations, and consulates abroad. The 1961 budget estimates for salaries and expenses included $119,850,000 and 13,899 positions, an increase of $7,550,000 over the amount appropriated for fiscal year 1960 (inclusive of $300,000 appropriated in second Supplemental Appropriation Act, 1960). The 1961 request took into account a net reduction in the base of $488,793, resulting from an adjustment in the lapse rate of $1,128,696, offset by decreases totaling $1,617,489. These decreases result from a reduction in communication costs, move to the new building, a reduction in the cost of transportation of effects, savings in rentals and quarters allowances as a result of the availability of Government-owned facilities, termination of the special immigration program under Public Laws 85-316 and 85-892, and nonrecurring expenses. In the 1961 request, 74 positions were eliminated

from the base.

The 13,899 positions (4,686 domestic, 4,510 Americans, 4,703 locals) requested for 1961 represent an increase of 479 positions over the 13,420 positions included in the base for 1961 (13,494 authorized for fiscal year 1960 (inclusive of 89 positions provided by Second Supplemental Appropriation Act of 1960) offset by the reduction of 74 reflected in the adjustment to the base).

The House bill provides an appropriation of $113,500,000, an increase of only $1,200,000 over the amount appropriated for fiscal year 1960, inclusive of the $300,000 appropriated in Second Supplemental Appropriation Act, 1960. The House report suggests that a reduction be made in existing operations to provide the positions required for new programs, including new posts, elevations, and consular workloads.

The Department has carefully reviewed the budget estimate in the light of the report and the action of the House of Representatives, together with the increasing responsibilities imposed upon the Department and Foreign Service as a result of the continually changing and critical international situation. The Department has accordingly eliminated lower priority operations wherever possible in an endeavor to reduce its revised requirements for fiscal year 1961 as near as possible to the House allowance. To meet minimum essential requirements, the Department requests the restoration of $3,877,000 and 295 positions.

The following table shows an analysis of the base adjustments and program increases requested for 1961, the effect of the House action and the restoration requested.

As indicated in the foregoing table, the House allowance has been distributed among three mandatory program increase requirements: oversea wage and price increases, the elevation of consular posts to diplomatic status, and costs of the Federal Employees Health Benefit Act. After providing for these built-in increases, no funds remained of the House allowance for the opening of new posts, improved support for existing staff, additional political and economic activities, increased consular activities, increased hard language training, and improved communication facilities. The additional amounts requested for these activities have, however, been reduced wherever possible or deferred to a later year, and are considered to be only the amounts necessary to meet current minimum essential requirements.

The following paragraphs discuss the program increases which could not be accommodated within the House allowance and for which restoration is requested:

The Department's budget request for fiscal year 1961 included an increase of 85 positions and an amount of $826,850 for opening 11 new posts as follows:

Changing conditions in the above countries and the growing importance of centers which have assumed new importance necessitate the opening of new Foreign Service posts in order to represent adequately the interests of the United States. The new posts in Nepal, Pakistan, and Brazil, involve posts of embassy status and are required to maintain deplomatic contact with the national governments. In the case of Nepal, the post was formally opened August 5, 1959, and initially staffed by the transfer of two American positions from New Delhi. Additional positions (8 American and 10 local) were provided by the Second Supplemental Appropriation Act, 1960. The post in Pakistan is also being opened in fiscal year 1960 and seven positions (two American and five locals) were provided by the same supplemental appropriation act. The new posts in Africa, Mexico, and Europe are needed to give protection and welfare services to American citizens, to meet increasing demands for visa services, and to provide for urgently needed political and economic reporting in areas which are not now adequately covered.

The Department has carefully reviewed its estimates for opening new posts in the light of the House report, and with a view to reducing the amount requested wherever possible consistent with the responsibilities with which the Department is charged. It has been concluded that opening of the proposed consulate at Oaxaca, Mexico, and one of the proposed consulates in Europe could be deferred to a subsequent fiscal year. This reduces the amount currently required to 67 positions and $707,986.

Restoration of 67 positions and $707,986 is considered necessary in the best interest of the United States, and is requested.

The Department's budget request for fiscal year 1961 included an increase of 33 positions and an amount of $644,457 for elevation of consular posts to diplomatic status as follows:

The House allowance provided no positions and $388,857 toward the elevation of the above posts from consular to diplomatic status. The Department has reviewed carefully the need to elevate these posts to diplomatic status and requirements for additional positions and funds.

All countries in which these posts are located will achieve independence in the very near future. Sensitive to their newly won status as independent nations, these countries will expect the United States to establish missions of embassy rank. It is anticipated that many countries, including those in the Soviet bloc, will establish diplomatic missions immediately following proclamation of independence. The rapidly changing political and economic conditions in these areas require that the existing consulates be raised to diplomatic status and provided with sufficient staff to enable the United States to meet the challenging needs of these newly independent and underdeveloped countries.

It is strongly urged that the Senate restore the 33 positions and $255,600 as being in the best interests of the United States.

The increase requested under this heading covers certain nonsalary expenses such as travel, rents, supplies, and equipment needed to make our existing staffs at oversea posts more effective and more productive in their jobs.

This amount includes $13,100 for travel for a chief of mission conference in the African area to permit the exchange of views and debate of policies. In view of the rapid and sharp changes in all phases of the African scene, U.S. relations with the various African countries must constantly be reanalyzed and refocused. Such conferences in the past have proved to be highly beneficial, providing not only for the exchange of views on common and interrelated problems but also for the formulation and implementation of policy for the area.

$25,716 is included for increased rental cost for a more adequate chancery building at Khartoum under short-term lease. The present building is woefully inadequate for a diplomatic mission. It will be necessary to pay 2 years' advance rent for the new building at a cost of $38,858. When offset by the present annual rental of $13,142, the increased cost in 1961 is $25,716.

The remainder of the increase requested is needed to provide for the replacement of office furniture and equipment and household equipment and furniture for certain posts in Africa and the Near East. The climatic conditions at many of these posts are such that items of equipment become unusable and unservice

able in 2 to 3 years. In some areas, such as Somalia, Nigeria, and the Belgian Congo, the life expectancy of mechanized equipment is even less. Besides climatic conditions, other adverse factors, such as a total lack of maintenance facilities, unskilled operators, and excessive costs for shipping equipment to areas where repairs can be made, contribute to the high attrition rate and unusually heavy replacement cost.

In the light of the House report and in view of the necessity for providing for other essential increases in 1961, the Department has concluded, after careful review of the estimates for this item, that certain of these replacement items, though they are highly desirable, can be deferred. Accordingly, the total request for restoration in this item has been reduce 1 to $100,000.

The 1961 budget estimate included an increase of $116,192 and 10 positions for additional political reporting in the field of labor activities. These positions were requested to strengthen the Department's ability to evaluate the significance of organized labor movements in selected countries, particularly as these movements relate to the political trends which affect our national interest. Of the 10 positions, 6 are for posts in Africa, 3 for the Near East and south Asia, and 1 for the Far East.

The six positions in Africa are for the posts of Lagos, Dakar, and Salisbury, each of which requires a labor officer and a labor assistant to observe and analyze trade union activities. In Lagos the trade union movement and Nigeria's nationalism are closely linked. In Dakar the formerly unified General Workers' Union of Black Africa has split into three branches. This unrest in trade union ranks may become a prime avenue of Communist penetration, and should be kept under surveillance. In Salisbury, the well-organized and politically and economically influential trade unions, the rapid increase of Africans receiving cash rather than wages in kind, and the conflict over the industrial color bar are factors of great significance which should be analyzed and reported by a capable labor officer and assistant.

Three labor attachés are requested for posts in the Near East and south Asia— Athens, Ankara, and New Delhi.

In Athens, there are fractional rivalries between the Communist and nonCommunist influences in what are primarily non-Communist trade unions. The Department and other Government agencies need more information on this situation, as well as on other aspects of Greek labor. In Turkey, the trade union movement is becoming an important force within the society and a qualified officer is needed to report on the political significance of the growing labor movement. This officer will work with the Turkish Government in the solution of its long-range problem of manpower training and allocation. The activities of the regional office of the International Labor Organization in Ankara would also be covered by this officer. In New Delhi, an assistant labor attaché is needed to help the labor attaché who must travel extensively and cover many aspects of this country's industrial growth. This assistant will enable the labor attaché to keep the Department and the Department of Labor fully informed of coming developments in the Indian labor scene.

The position requested for the Far East is for Seoul. In Korea there are nearly 400,000 members of the Federation of Korea Trade Union and its affiliates. There is a close relationship between labor unions and the Liberal Party. It is important to the United States that the political implications of the growing strength of the Korean labor movement be followed closely, assessed carefully, and, to the extent possible, encouraged to develop along democratic lines. A full-time labor officer is needed for this work.

The work to be done by these employees is of great importance in evaluating the political impact of these various labor movements. It is strongly urged that the Senate restore the 10 positions and the $116,192 requested for this purpose.