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Senator PASTORE. Now another question; would you like to comment on this matter of the electromagnetic capability facility or would you prefer to put a memorandum in the record?

Dr. WHITEHEAD. I think it might be preferable to put a memorandum in the record.

(The following was subsequently received for the record:)

THE WHITE HOUSE, Washington, July 16, 1970.

Hon. JOHN O. PASTORE,

Chairman, Subcommittee on Communications,

Committee on Appropriations,

U.S. Senate, Washington, D.C.

DEAR MR. CHAIRMAN: In response to your request during this morning's hearing. I am submitting my views on the $906,000 for improved electromagnetic compatibility analysis capabilities included in the President's fiscal year 1971 budget recommendations. Now that Reorganization Plan No. 1 of 1970 has gone into effect and I have been nominated to be Director of the new Office of Telecommunications Policy, I have been reviewing the administration's budget recommendations in this area and the recent actions by the House and Senate. As this matter goes to conference, I am pleased to have this opportunity to submit my views for the record.

Your opening statement at this morning's hearings stated very clearly and accurately the importance of better spectrum management. We may not have an immediate spectrum crisis, but the rapid and dynamic growth of telecommunications in this country is placing accelerating demands on spectrum resources. Although not all of our available spectrum resources are being fully utilized, existing allocations have resulted in artificial shortages that impose economic penalties and make impossible the introduction of some new services. Our existing frequency management machinery is increasingly hard pressed to deal with the expansion of spectrum demands. I regard the improved coordination of spectrum allocation as one of the most important areas of telecommunications policy. We must begin now to improve these techniques or there actually will be a spectrum crisis in the not too distant future.

I recognize, as does the Congress, that the development of a comprehensive data base and analytic capability will require the expenditure of Federal funds, and that those expenditures must be justified in terms of the tangible benefits this activity will produce. A very direct benefit will be more flexible and responsive use of our existing spectrum resources. Improved management of spectrum use and allocations also will encourage better planning by system designers both in Government and in industry. Both of these steps are essential to a more efficient use of the spectrum, making spectrum resources available to accommodate both existing needs and the demand for new services that are developing for the future.

With respect to this electromagnetic compatibility analysis effort, it is not our intention to establish any new facility or organization which would require legislative authorization. Rather, we intend to develop the necessary analytic techniques, data base, and processing capabilities to provide the information necessary for the Office of Telecommunications Policy to achieve more efficient use of the spectrum.

I wish to emphasize that we still consider the full funding of $3.3 million is vitally important to the development of an effective telecommunications policy program during the forthcoming year. The electromagnetic compatibility functions referred to above would, in large measure, be carried out through the Department of Commerce under OTP guidance. The $906,000 appropriation request is the essential first step to get started in this area.

Sincerely,

CLAY T. WHITEHEAD, Special Assistant to the President.

Senator PASTORE. Are there any further questions?

We have a biographical sketch. We will put that in the record. (The biographical sketch follows:)

CLAY THOMAS WHITEHEAD

Clay T. Whitehead was born on November 13, 1938, in Neodesha, Kans., and graduated from Cherokee County Community High School in Columbus, Kans. He received his B.S. and M.S. degrees in electrical engineering from the Massachusetts Institute of Technology, majoring in communications theory and systems engineering. He later received his Ph. D. in management, also from M.I.T., with concentration on policy analysis, economics, and research and development management. While at M.I.T., he taught courses in electronics and political science. He was elected to the engineering and science honorary societies-Tau Beta Pi, Sigma Xi, and Eta Kappa Nu.

Mr. Whitehead served in the U.S. Army for 2 years, attaining the rank of captain, where he worked on Army chemical defenses and the threat to the United States from biological warfare.

Mr. Whitehead was at the Bell Telephone Laboratories for about a year during his undergraduate studies as a part of the M.I.T.-Bell Laboratories cooperative program. Prior to obtaining his doctorate, he was a consultant at the Rand Corp., where he worked on arms control, air defense, and spacecraft engineering studies. After completing his Ph. D., he joined the Rand staff to plan and organize a policy research program on health services and other domestic policy areas. He has also served as a consultant to the Bureau of the Budget.

Following the election in 1968, Mr. Whitehead served on the President-elect's Task Force on Budget Policies and assisted on transition matters. He joined the White House staff in January 1969, where his responsibilities have included the space, atomic energy, and other technically related programs; maritime affairs, liaison with regulatory agencies; and several economic and organizational matters. Mr. Whitehead is a Special Assistant to the President.

Senator PASTORE. Is there anyone in this room who desires to speak for or against this nomination?

There being none, we will adjourn.

(Whereupon, at 10:35 a.m., the committee adjourned.)

NOMINATION OF ROBERT MCLELLAN, TO BE ASSISTANT
SECRETARY OF COMMERCE FOR DOMESTIC AND IN-
TERNATIONAL BUSINESS

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Washington, D.C.

The committee met, pursuant to notice, in room 5110, New Senate
Office Building, at 9:45 a.m., Hon. Vance Hartke, presiding.
Present: Senators Hartke, Hart, Long, Cotton, Prouty, Pearson,
and Baker.

Senator HARTKE. Good morning.

This morning we have before us the nomination of Robert McLellan to be Assistant Secretary of Commerce for Domestic and International Business. Mr. McLellan has had extensive experience in international business before coming with the Government last year as Deputy Assistant Secretary for Business Development. At the present time he is serving as Acting Assistant Secretary in the post for which he has been nominated.

We are pleased to have you with us. We will put your biographical statement in the hearing record. Your financial statement will not appear in the record, but in accordance with committee practice it will be kept in the files, available for inspection.

(The biography follows:)

BIOGRAPHICAL SKETCH OF ROBERT MCLELLAN

Robert McLellan was appointed Deputy Assistant Secretary of Commerce for Business Development on May 1, 1969, and administered the oath of office by Secretary of Commerce Maurice H. Stans on June 9. He is now the Acting Assistant Secretary for Domestic and International Business.

Mr. McLellan was born in Nebraska in 1923 and attended grammar and high schools there. In 1941 he moved to California. After a tour of duty with the Army Air Corps during World War II, he attended San Jose State College, graduating with a Bachelor of Science Degree in Engineering (with honors). Subsequently, he attended graduate school at Santa Clara University and the Graduate School of Business at Stanford University.

In 1949, Mr. McLellan joined the Export Department of FMC Corporation as a Sales Engineer subsequently holding positions of Sales Manager and General Manager of the Machinery Export Department of FMC International before being appointed a Vice President in 1960.

Mr. McLellan has traveled extensively in his foreign business activities. He has visited most of the areas of the world, including several trips to the U.S.S.R. He is active in international trade activities and is a former member of several San Francisco Bay Area world trade organizations. He is a past Trustee of the World Affairs Council of San Francisco and a former member of the Regional Export Expansion Council, the Western International Trade Group, the World Trade Club of San Francisco and the University Club of San Jose. He is a member of the Executive Committee of the Agri-business Council.

STANFORD LIBRARIES

Late in 1969, Mr. McLellan served as Chairman of the regional conferences of U.S. Economic/Commercial Officers in Tehran and Rome, and in January led a delegation of busines and government executives to examine U.S. commercial opportunities in selected countries of Africa. In April and May, he accompanied Secretary Stans on a six nation tour of Latin America as part of President Nixon's program to strengthen relationships between Latin America and the United States.

Mr. McLellan, his wife Helen and their four children formerly lived in Saratoga, California but now reside in Washington, D.C.

Senator HARTKE. Senator Murphy apologizes that he cannot be here, but he supports the nomination. Senator Cranston has registered no objection to the nomination.

Good morning, sir.

STATEMENT OF ROBERT MCLELLAN

Mr. MCLELLAN. Good morning, Mr. Chairman.

Senator HARTKE. You may proceed. Do you have a statement? Mr. MCLELLAN. I really have nothing further to say, Mr. Chairman, beyond the biographical sketch which you have and the financial statement which I have submitted.

I would add that I am pleased to have the chance to be here and to meet you gentlemen, and to say that I look forward to the opportunity of serving as Assistant Secretary of Commerce for Domestic and International Business.

If there are any questions, I certainly would be pleased to try to answer them.

Senator HARTKE. Since this is an administration recommendation, Senator Cotton, I will defer to you, sir.

Senator COTTON. That is very kind of you, Mr. Chairman.

Mr. McLellan. I note here that you have of course filed with the committee, not for the record, but to be on file for whoever desires to look at it, your financial statement. And I note that as far as your security holdings are concerned, yours and Mrs. McLellan's consist of a substantial number of shares of FMC Corp. common stock. What is FMC?

Mr. MCLELLAN. FMC used to stand for Food Machinery and Chemical Corp. I was an employee for FMC Corp. for some 25 years before I left to join Government in June of 1969.

Senator COTTON. I noted that, but I did not know what FMC meant, if anything.

Mr. MCLELLAN. It does not stand for anything now, just FMC. Senator COTTON. You mean it has become a horrible conglomerate or something?

Mr. MCLELLAN. I would not characterize it as a horrible conglomerate, but it is a large, diversified corporation.

Senator COTTON. I understand.

Now, just as a matter of form I have to ask you—there is absolutely no implication in the question-if you are aware of any possibility that your holdings in FMC Corp. could in any way be construed as being in conflict of interest in the discharge of your duties in the Department?

Mr. MCLELLAN. Senator Cotton, I do not see how in any way my holdings of FMC Corp. common stock could represent a conflict of interest in the discharge of my duties.

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