Senator LAUSCHE. Was the reason that you will not allow the universities to pick their own students, that they should come from many colleges, so that now with the contract with Notre Dame, Notre Dame can designate any 1 of the 36 as fit to train?

Mr. SHRIVER. No, sir; that is not quite accurate. So far as the recruiting is concerned, what we say to 1 college or 36 colleges, or 34 colleges banded together is simply this. We say that they have got to give all Americans who have volunteered for the Peace Corps an equal chance to serve in a project under their administrative control. They cannot say, arbitrarily, we believe, that only a person who has graduated from an Indiana college can serve in this particular project. On the contrary, we say that all people should have a chance to be in it. That is the only reason.

Senator LAUSCHE. This will enable the Indiana colleges to make available to the students of all of the colleges an opportunity to get into the program.

Mr. SHRIVER. That is correct. The training program will take place there, under their jurisdiction, with supervision, too, from our training department. But it will include people not only from Indiana colleges, but other colleges.

SELECTION, PRELIMINARY TRAINING, AND ALLOWANCES OF VOLUNTEERS

SENATOR LAUSCHE. Let us assume Notre Dame has one student who wants to volunteer, and he applies for admittance. Does he apply to Notre Dame University, or does he apply to you?

Mr. SHRIVER. To us. He fills out a questionnaire that goes into our regular pool.

Senator LAUSCHE. And then you pass on it, and notify Notre Dame that he is eligible.

Mr. SHRIVER. We work on it jointly, the selection.

Senator LAUSCHE. Then he continues at Notre Dame as a student. And according to page 30, you give him a medical examination; is that correct?

Mr. SHRIVER. Yes, sir, we do.

Senator LAUSCHE. And a psychiatric examination; is that correct? Mr. SHRIVER. Yes, sir. We give them lots of examinations, yes. Senator LAUSCHE. And while he is in school, he is paid a subsistence reimbursement, I believe, of $180 a month for 3 months. Mr. SHRIVER. That covers 3 months, yes, sir. Senator LAUSCHE. And 3 months would be $540. Mr. SHRIVER. That is $180 for 3 months. per month. That is a mistake. It should say It is $2 a day, $60 a month, 3 months, $180. not be there. I am sorry.

It should not say $180 $180 covering 3 months. That slant sign should

Senator LAUSCHE. You say the "Mo." should not be there? You have $540 for 3 months-$540 divided by 3 would be $180 a month. Mr. SHRIVER. Excuse me. I was mistaken. You are correct. I was thinking of the $2 a day. I want to make one thing clear. He is not still in Notre Dame at college. He is a member of a training program.

Senator LAUSCHE. I understand that. But he was a student at Notre Dame and decided he wanted to become a volunteer. So you continue him in special training; is that correct?

Mr. SHRIVER. That is right. We bring him to a training center. He might have been a student at Indiana, for example, and we bring him to a training center for 3 months, in this case, before he goes

overseas.

Senator LAUSCHE. So while he is continuing his studies, and especially while he is trying to train himself for volunteer work, he is paid $180 a month for 3 months. And then you allow him in addition to that $75 a month for what you call a readjustment allowance. Mr. SHRIVER. That is correct.

Senator LAUSCHE. So the total cost to the Peace Corps for the 3 months of training would be $1,707, according to your chart.

Mr. SHRIVER. That includes examinations and immunizations. Senator LAUSCHE. Now, I am asking these questions so that the record will be clear, and that there will be an understanding of how this $9,000 is arrived at.

Mr. SHRIVER. Sure.

OVERSEAS ALLOWANCES

Senator LAUSCHE. I want to confine my attention solely to what he or she will be paid. I go to item (c) on page 30. At the end of 3 months, he goes overseas and is given a subsistence allowance of $150 a month for 21 months; is that right?

Mr. SHRIVER. Yes, sir.

Senator LAUSCHE. And then he is given what you call a readjustment allowance of $75 a month.

Mr. SHRIVER. That is right.

Senator LAUSCHE. Then he is given a leave allowance of $12.50 a month; is that correct?

Mr. SHRIVER. Yes, sir.

Senator LAUSCHE. And he is given housing rent at $20 a month, for 21 months.

Mr. SHRIVER. That is right.

Senator LAUSCHE. And for clothing, $150 the first year, $50 the second year. And he is also given a bicycle, which you anticipate will cost $50?

Mr. SHRIVER. Yes, sir.

Senator LAUSCHE. I think that is sound. I see no objection to that. Mr. SHRIVER. This is an illustrative program, this is not a specific one like Chile or the Philippines. This is the best projection that we could give of the overall picture of what one Peace Corps volunteer on the average will cost, whether he is in Chile or Tanganyika or some other country.

Senator LAUSCHE. So you calculate that it will cost you about $4,988 for 21 months for the allowances made to him for subsistence, readjustment pay, and other items that I identified.

Mr. SHRIVER. Yes, sir.

THE COLOMBIAN PROJECT

Senator LAUSCHE. Now, with respect to the Colombian agreement, did CARE have a contract with the Colombian Government before you began negotiating with CARE on this use of CARE?

Mr. SHRIVER. They had an agreement with the Colombian Government, but I do not think I would characterize it as a contract covering costs, if that is what you mean.

Senator LAUSCHE. And in that agreement was CARE to provide 65 workers, and the Colombian Government 65 workers?

Mr. SHRIVER. No, sir. At the beginning, Colombia got in contact with CARE asking CARE to inaugurate and operate a school for rural redevelopment workers in Colombia. The Government wanted CARE to train 65 citizens of Colombia in rural redevelopment work. Because CARE has had a great record in this kind of work, they went to CARE and asked them to run a school, so to speak, down there for Colombians.

Senator LAUSCHE. At that time was CARE to furnish any of the type of workers that it is now going to furnish under the Peace Corps program?

Mr. SHRIVER. No, sir.

Senator LAUSCHE. All right. But as it now stands, CARE is to furnish 65 and the Colombian Government is to furnish 65 counterparts.

Mr. SHRIVER. Sixty-five.

Senator LAUSCHE. Under whom will the 65 workers work, CARE or the Peace Corps? I think you said earlier under both. Mr. SHRIVER. That is correct.

Senator LAUSCHE. But subsequently you said that your supervisor will be there, and he will be able to dismiss anyone with whom he is not satisfied.

Mr. SHRIVER. That is right.

Senator LAUSCHE. Well, that will mean that they really will be under CARE, with the vetoing power in your Peace Corps man.

Mr. SHRIVER. The ultimate responsibility always will rest with our Ambassador or the Peace Corps representative; that is correct. But they will be working under the expert guidance of a person who has had a lot of experience in this kind of work, who is associated with CARE. That is why the Colombia Government went to CARE, because they knew they had expert experience in it, and we will be capitalizing on that expert experience.

QUESTION OF PAYING VOLUNTEERS IN CONTRACT SITUATIONS

Senator LAUSCHE. Now, how will these Peace Corps men be paid, through CARE or through the Peace Corps?

Mr. SHRIVER. Well, that question was answered a little while ago, but I would like to ask Mr. Kelly to answer it again, because it changes in midstream.

Senator LAUSCHE. I thought he said a while ago that under the present arrangement they will be paid by CARE.

Mr. SHRIVER. That is correct.

Senator LAUSCHE. But the contract gives you the right to change that and to pay directly.

Mr. SHRIVER. That is correct.

Senator LAUSCHE. So under the present contract CARE will pay. Mr. SHRIVER. That is right, because at this time we do not have legislation. But when the legislation is passed, then we may pick up that item.

Senator LAUSCHE. If you are able to make that kind of contract with CARE, does it follow you will be able to make a similar contract with, let us say, the Catholic Relief Agency?

Mr. SHRIVER. It is possible.

Senator LAUSCHE. And if you made it with the Catholic Relief Agency, you would pay the Catholic Relief Agency the money, and then it would pay these Peace Corps workers.

Mr. SHRIVER. If we were to negotiate a contract at this time, we would do it that way, just as we have done with CARE. But once the legislation has passed, permitting us greater flexibility of action, then we might do it the way we propose to do it with CĂRE in the future. You see

Senator LAUSCHE. I think it would logically follow that. If you can then contract with CARE or the Catholic Relief Agency, you could do it with the Episcopalians, the Friends, and so forth. There would be no limitation, except for one that you imposed that they shall be objective and nondiscriminatory in the selection of their workers.

STANDARDS FOR CONTRACTS WITH PRIVATE AGENCIES AND UNIVERSITIES

Mr. SHRIVER. Senator, while you were on the floor, we had quite an extended discussion here with Senator Church present, and during that time I tried to itemize some of the qualifications which we impose, if you will, on anybody doing business with the Peace Corps. These qualifications or requirements included adherence to our standards of selection; we think they are high standards of selection. It included adherence to our policy of open recruitment, which means that all Americans have an equal opportunity to serve in any Peace Corps project. It included adherence to our standards of training and permits us to provide overseas supervision to the work. Also, it permits dismissal of people who do not live up to the Peace Corps standards of work or conduct overseas. It also includes the one provision just mentioned of no proselytizing here or overseas, and also living according to Peace Corps standards of low pay alongside the nationals of the foreign country.

Those are some of the requirements that we establish with respect to our dealings with private voluntary agencies, religious or otherwise.

STATISTICS ON MISSIONARY ENTERPRISES

Senator LAUSCHE. Now, I do not suppose you will be able either to verify or reject these figures, which purport to be the total of the missionary workers of the United States around the world. There are 26,000 Americans serving as Protestant missionaries abroad, about 6,700 of the Catholic faith, and there are also 20,000 missionaries from other Christian countries. Would you challenge those figures at all?

Mr. SHRIVER. No, sir. I have no basis on which to challenge them. Senator LAUSCHE. It appears that the Protestant churches are expending for missionary work the sum of $163 million a year, and the Catholic Church approximately $40 million a year, and that these missionaries do not confine their work to religion, but they build hospitals, furnish medical aid, educate doctors and nurses, train native

leaders in administrative work, develop social welfare programs, and supply technical skills.

Are you either able to affirm or deny that statement?

Mr. SHRIVER. No, sir. So far as I know I believe they do all these things.

PROVISIONS IN S. 2000 FOR EXPENDITURES

Senator LAUSCHE. Now, I want to direct your attention to section 15(a). That gives this Peace Corps the right to expend moneys regardless of general law, except in one or two instances where you are obliged to conform to law as are other public officials. Will your counsel explain why you are asking the officials of the Peace Corps be given the right to disregard general law in the expenditure of funds?

Mr. KUHN. Well, Senator, the authority is not quite as broad as you have expressed it.

Senator LAUSCHE. Well, I said there were certain exceptions. Mr. KUHN. Yes. Well, this is a provision which actually originates in the Mutual Security Act, section 411(d) where it has been for many years. It does permit expenditures outside the United States for administrative and operating purposes without regard to laws governing the obligation and expenditure of Government funds.

It is used under the terms of an Executive order only sparingly. It is used only where circumstances require the elimination of injustices or inequities in connection with personnel. For example, ICA has had the situation where there has had to be sudden evacuation from foreign posts. This authority has been used to make whole some of their employees who had substantial losses in property. It is used in situations of that kind in order to, as I say, remove injustices which might otherwise occur.

Senator LAUSCHE. Does not this give you the right to expend moneys regardless of general laws except in the instance of the payment of compensation to employees as shown on lines 14 and 15 of page 24? What other inhibitions or prohibitions are there against the expending of money in disregard of general law?

Mr. KUHN. Well, as I say, Senator, it is only with respect to administrative and operating expenses that this authority can be exercised. And if you will give me a moment, sir, I will find the Executive order under which this has been administered.

Senator LAUSCHE. I will not pursue it any further. But I do think that this question may arise, and you had better be prepared for it.

ANTICIPATED VARIATIONS IN COST OF TRAINING PROGRAMS

Mr. Shriver, are you paying each of the universities in the country that you will choose as capable of training these corps workers $250 a month? Is that the general stipend?

Mr. SHRIVER. No, sir; I do not think I would be in a position to say that now, because the training requirements for different countries will vary substantially. So that each contract with each university will be tailormade to the training requirements for a particular country.