The CHAIRMAN. This is as of April 2 and today is the 20th. That is as of 18 days ago. We will put the first sheet of this set in the record

at this point.

(The table is as follows:)

United States foreign-aid program, Public Law 389, as of Apr. 2, 1948

NOTE. Shipment figures are estimates, based in part on preliminary information obtained from U. S. procuring agencies and the recipient governments, and are subject to revision on receipt of official supporting documents.

The CHAIRMAN. That indicates an unshipped balance of $182,000,000 as of April 2. You do not know anything more about it than that, do you?

Mr. CAWLEY. No, sir.

ALLOTMENTS OF FUNDS ADVANCED BY RFC

The CHAIRMAN. That is as of the effective date of Public Law No. 472. One billion dollars was made available for this particular set-up. What has happened to that, if anything, up to this point?

Mr. CAWLEY. Mr. Chairman, we have allotted approximately $800,000,000 of that, as follows-

The CHAIRMAN. Have you that in the form of a table?

Mr. CAWLEY. Yes, sir. I have a break-down of that which I can supply for the record. Of course, as the Administrator indicated, there has been about $62,000,000 of that committed to date.

Mr. BISSELL. Mr. Chairman, I have the details on that. The exact amount committed to date is $63,492,000.

The CHAIRMAN. That represents the obligations to this point? Mr. BISSELL. It is the total of procurement authorizations actually issued by ECA.

The CHAIRMAN. Would you be able to give us total allotments? Mr. BISSELL. This is a break-down of the commitments, which, of course, represent only a fraction of the allotments. We can supply this statement for the record, which I am handing to you at this time. This is broken down by countries and by commodities.

The CHAIRMAN. You mean that this statement of typewritten items is to be added to the pencil memorandum you have handed me?

Mr. BISSELL. That is correct, sir. Those pencil items add up to only $55,000,000. As you can see the added amount represents some acquisitions acted upon yesterday for shipments to Italy.

The second table is a break-down of the same total but by commodities. It does not represent an additional set of figures.

The CHAIRMAN. I think I would like to have you put those details in the record.

Mr. CAWLEY. Mr. Chairman, going back to my previous statement, I have a detailed analysis here of the spread of the $1,000,000,000.

I wonder if you would care to have that inserted in the record and brought up to date, to reflect the obligations as indicated on the two schedules Mr. Bissell has just handed you.

The CHAIRMAN. This statement is a break-down of allotments?
Mr. STEFAN. Is that the $800,000,000, Mr. Cawley?

Mr. CAWLEY. Yes. We have set up $800,000,000; $200,000,000 is still reserved by the President.

The CHAIRMAN. All there is to this is an allocation of $800,000,000 to the Administrator?

Mr. CAWLEY. That is correct.

The CHAIRMAN. There seems to have been an allocation by objects of $332,250,000, of which $2,250,000 seems to be allocated to the Economic Cooperation Administration for administrative expenses; $250,000,000 for program expenses. Does that mean for the purchase of commodities, or does it mean something else?

Mr. CAWLEY. No; that is for the purchase of commodities. The CHAIRMAN. I think the title is not too accurate. There seems to be $65,000,000 allocated to Agriculture and that is under "Expenses." Does that mean also the purchase of commodities?

Mr. CAWLEY. The $65,000,000 is for purchase of commodities. The word "expenses" is merely the title of the basic appropriation and is attached to all of the allotments and allocations, whatever their purpose.

The CHAIRMAN. There is another item which seems to go to the Army for $10,000,000; what is that?

Mr. CAWLEY. That is likewise a procurement allocation against which procurement authorizations will be issued from time to time. The CHAIRMAN. This is for procurement of commodities also? Mr. CAWLEY. Yes, sir.

The CHAIRMAN. Then there is $5,000,000 for expenses allocated to Treasury; is that likewise for commodities?

Mr. CAWLEY. Yes, sir.

ALLOWANCE TO AGENCIES FOR OPERATION EXPENSES IN CONNECTION

WITH PROCUREMENT PROGRAMS

The CHAIRMAN. I think that as you get to that table the allocations should show what they are for; that is, whether they are for administrative expenses or for the purchase of commodities; at least that much, because I think otherwise it might be confusing.

Mr. CAWLEY. Yes, sir; Mr. Chairman, I would like to state at this point that that table was made up this morning and it will have to be revised and brought up to date for you. I would like to point out, in connection with the procurement allocations made to these various agencies that we have initially set up a 1 percent amount for operations expenses to be incurred by them, for their expenses in connection with their operations on this procurement program.

Mr. WIGGLESWORTH. Does the 1 percent come out of the respective amounts in column 2, out of the first item?

Mr. CAWLEY. Not the $2,250,000 item which is all administrative expenses, but it will come out of the other respective amounts, eventually. For example, if we have around $65,000,000 allotted to agriculture, the expense against that procurement would represent 1 percent, so that $650,000 would be available for operating expenses in

connection with these procurements. The 1 percent operations allowances are included in the amount for each procurement authorization as they are issued.

DETAILS OF STATUS OF FUNDS, AID AUTHORIZED BY COMMODITIES OR SERVICES, AND BY COUNTRIES

The CHAIRMAN. I think that table should appear.

(The statement referred to follows:)

Status of funds as of Apr. 19, 1948, title I of the Foreign Assistance Act of 1948

Appropriation symbol and title

Allocations received by ECA

Allocations
issued by
ECA

Allotments
and pro-

curement
authoriza-
tions

Estimated obligation

RFC advance to the President: 118/90041, Foreign Assistance, Executive Office of the President, Apr. 3, 1948 to Apr. 2, 1949. Allocation by President to the Administrator: 118/95400, expenses, Economic Cooperation Administration, Executive Office of the President, Apr. 3, 1948 to Apr. 2, 1949

Allocations issued by the Administrator:

118/95400(01), expenses, Economic Cooperation Administration, Executive Office of the President (allotment to ECA, for administrative expenses) Apr. 3, 1948 to Apr. 2, 1949

118/95400(02), expenses, ECA (allotted to ECA for program expenses) Apr. 3, 1948 to Apr. 2, 1949.

12--118/95400, expenses,

ECA

(allotted to Agriculture) Apr. 3, 1948 to Apr. 2, 1949.. 21-118/95400, expenses, ECA (allotted to Army) Apr. 3, 1948 to Apr. 2, 1949.

20-118/95400(25), expenses, ECA

(allotted to Treasury) Apr. 3, 1948 to Apr. 2, 1949.

Unallocated by the President..

1 Includes estimated obligations for personal services in the amount of $2,077.31 and actual obligations for other administrative expenses of $52,922.69.

* Information not available at this date.

STATEMENT 1.-Economic Cooperation Administration aid authorized as of Apr. 19, 1948, by countries

STATEMENT 1.-Economic Cooperation Administration aid authorized as of Apr. 19, 1948, by countries-Continued

STATEMENT 2.-Economic Cooperation Administration aid authorized as of Apri 19, 1948, by commodities or services

The CHAIRMAN. Mr. Cawley, I think we ought to have copies of these tables so that the committee may have the details in front of them when we get to asking questions.

Mr. CAWLEY. Yes, sir.

The CHAIRMAN. Is there anything else you wish to tell the committee, Mr. Hoffman?

Mr. HOFFMAN. I will try to answer any questions you may have, Mr. Chairman.

The CHAIRMAN. I think for the time being that is about all I have to ask. I do not feel, at this point, that I should go any further until we get a little more of the detailed developments.

DISCUSSION OF ORGANIZATION OF ECA

Mr. WIGGLESWORTH. Without going into the details I would like to ask the Administrator if he can tell us, in general terms, what will be the size of the over-all set-up he contemplates (a) on America, and (b) on the other side of the water.

Mr. HOFFMAN. I can tell you in general. We expect to hold down the personnel to the very smallest possible number and it is our expectation in this country that we will farm out all the work we can farm out, and when the missions are set up abroad we hope to follow the same procedure.

It is almost impossible to make anything but a wild guess as to what number of people will be employed, because here again more supervision might result in much sounder expenditure of dollars.

I would guess that we ought to have something like 500 people, when we get going, on this side, and perhaps 1,000 people abroad. That is subject to considerable change.

ALLOCATION FOR ADMINISTRATIVE EXPENSES

Mr. WIGGLESWORTH. You have in here $15,000,000.

Mr. HOFFMAN. Yes. I think originally it was $20,000,000 if I remember correctly.

Mr. CAWLEY. Yes.

TECHNICAL SERVICES

Mr. HOFFMAN. $20,000,000 was set up for administrative expenses. We are hoping that we can handle the administrative expenses within the $15,000,000, but this item of technical services for which $1,000,000 is budgeted—and we are now budgeting $6,000,000 is one that we cannot tell much about, because that is where it is quite possible later on we might have to go back and ask for a very substantial increase; we do not know as yet.

Mr. WIGGLESWORTH. That is for advisory personnel?

Mr. HOFFMAN. That is technicians in these various industries where you undertake to get production increased, and experts in the agricultural field; of course we do not know as yet, but it seems to us that one of the commodities we can export that may result in the quickest step-up is know-how. That has got to be handled tactfully. We cannot go over to these countries and tell them how they are to run their business in a crude manner, but we think we can work out the situation in such a way that they will want to have the knowledge we have in this country, both industrial production and agricultural production. When we study the field and realize how low their output has been per man, both in the field of industrial and agricultural production we feel that one of the greatest contributions we can make to them is through the export of know-how.

BILATERAL AGREEMENTS WITH NATIONS TO BE AIDED

Mr. WIGGLESWORTH. I understand that at the Paris Conference last summer each nation indicated specific targets in terms of increased production, in terms of putting in their currency, budget,