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Mr. INK. I don't believe so, Senator Proxmire, but you are right in that I can't tell you what that percentage is, and it would be something above the 7 percent.

Chairman PROXMIRE. How do you know it is not a great deal above it?

Mr. INK. I can't tell you how much above it it is but a good portion of the military, of course, is included here, and all of the Governmentowned are included.

Chairman PROXMIRE. Not all the Government-owned that are used by the military by any means.

Mr. INK. No, cutside the operational side, they are included.

Chairman ProXMIRE. You see, one of the things I am getting at is when you take that military, I think that IBM could be a great deal higher than 28.1 percent. That statement you have got in the prepared statement is only apparently for the general-purpose computers owned by the Federal Government.

Mr. CUNNINGHAM. I would like to point out though the 28.1 percent is comparable with the national census, our figures are comparable with the national census figures.

Chairman PROXMIRE. They may be comparable with the national census but that does not obviate the fact that IBM may be selling 90 percent of the computers that the military are using.

Mr. CUNNINGHAM. That is possible.

Chairman ProXMIRE. So when you add those two things up it could be that IBM is selling far more overall.

Mr. INK. It could very well affect those percentages. It would undoubtedly affect them in some way. I don't know what the impact would be.

IBM'S NEW 370 SERIES

Chairman PROXMIRE. Let me ask, what is the significance of IBM's brand new 370 series? Will this simplify interfacing ?

Mr. CUNNINGHAM. It was announced yesterday. I am not sure. I think with regard to that since the IBM Corp. has as large a percentage as we have been discussing of the market, much of the compatible peripheral equipment is compatible only with IBM.

Now the 370 looks superficially to us, it has two characteristics, one of which is recognized in the announcement that the standards approved by the President under the instruction issued by the Secretary of Commerce last year for certain standards were cranked into the equipment. These are not the interface standards we are talking about but they are standards which deal with making information acceptable from one computer to another.

This was put into effect in 1969, July 1, 1969.

Now for the first time we have seen an announcement by a major supplier that says that “our equipment accommodates to these standards."

The second thing is that the technological characteristics of the computer are difficult to evaluate in this short period of time, but it seems as though there is an increase in capacity of the kind that we had expected in prior announcements.

CONGRESSIONAL INTEREST IN COMPUTER COSTS

Chairman PROXMIRE. I would just like to ask one other question, Mr. Ink. What other congressional committees have been interested in, to your knowledge, interested in attempting to get this interface compatibility so that it would be possible to have more competition in the computer area?

Mr. INK. Well, of course, Mr. Brooks' committee on the House side has been taking a very strong and sustained interest in just about every aspect of computers, including this. I will turn to Mr. Cunningham for comments by the others.

Mr. CUNNINGHAM. That is the principal committee that has been interested in the problems of compatibility and the use of computers.

Chairman PROXMIRE. Has Mr. Brooks committee been pressing you also to provide a comprehensive inventory

Mr. CUNNINGHAM. Yes.

Chairman PROXMIRE (continuing). Of the computers owned by the Government including the military?

Mr. CUNNINGHAM, Not including the military.

Mr. INK. Again when we say not including the military, I think we understand that it is split, part of it is included and part of it is not.

Chairman PROXMIRE. Included, the part of the military that is not included. There is no problem on the part of the military that is included, I take it.

Has Mr. Brooks' committee indicated any interest in the part that is not owned by the Government but is part of the cost of Government procurement because, as you let a contract and the contractor uses computers, of course, the Government has to pay for that computer use. Has there been any expression on the part of Members of Congress to you for you to secure this!

Mr. INK. I was under the impression that the committee has been interested in just about everything. I don't believe this has been one of the major thrusts of the committee but you can speak to that better than I can. There is almost nothing in the computer area that I don't think has come up in the course of the discussions of that committee because it has been very thorough.

Chairman PROXMIRE. Èxcept for weapons systems.
Mr. CUNNINGHAM. That is right. Weapons systems have not been

gone into.

Chairman PROXMIRE. The Appropriations Committees of neither the House nor the Senate have, the Appropriations Committees of the House or Senate.

Mr. CUNNINGHAM. Yes. Appropriations Committee with defense, yes.

Chairman PROXMIRE. Mr. Mahon's committee in the House.
Mr. CUNNINGHAM. Yes.

Chairman PROXMIRE. But there has been no study to determine why there is this terrific increase in costs, and why the very poor performance has been so characteristic of our computer oriented weapons, to your knowledge.

Vír. CUNNINGHAM. Not to my knowledge, in the Bureau of the Budget. It may be to other people.

FOLLOW-UP ON STUBBINGS REPORT

Chairman PROXMIRE. That Stubbings report was just an invitation to Congress and to the administration to get to work in the area and find out. Of course, that is what this committee has been trying to do.

Mr. INK. Again, Mr. Chairman, I have not been involved in this area in the Bureau before now so if I might see if there is something that I am not aware of that I could provide the committee on the record because I might be shortchanging someone here without intending to.

Chairman ProXMIRE. I would also like to know if Mr. Stubbings has been as richly rewarded for his insights and revelations as was Mr. Ernest Fitzgerald for his revelations on the C5A, and Mr. McGee who disclosed the pilfering of millions of dollars of fuel oil in Thailand, and if similar reward for Mr. Stubbings—has he been promoted, where is he now?

Mr. INK. He is still in the Bureau.
Chairman PROXMIRE. I am glad to hear that.

Mr. INK. He is still active. I don't know just what his assignment is, but the last I saw him on the elevator he was very active and working on some other problems.

Chairman PROXMIRE. He wasn't operating the elevator, was he? [Laughter.]

Mr. Ink. No, sir, Mr. Chairman. Sometimes I wish someone was. I was stuck in that elevator for an hour a little while ago.

Representative Brown. It is probably operated by a computer. [Laughter.] Mr. CUNNINGHAM. It is.

Mr. INK. It is, and I must say, Mr. Chairman, I never have understood why the programing of elevators in this day and age isn't more effective.

Chairman PROXMIRE. To get back to Mr. Stubbings, I understand he doesn't feel free, somebody has put him under wraps so he won't talk to Members of Congress and the press or the public about his study. Is there any restraint you know of from the Budget Bureau on Mr. Stubbings?

Mr. INK. I am not aware of any.

Chairman PROXMIRE. Would you let us know whether he is free to testify, free to come up and disclose his own estimates? He made a very valuable study, as we all know.

Mr. Ink. It is the practice of the Bureau of the Budget to provide full information, whenever requested, through policy level spokesmen, either the Director, Deputy Director, or one of the Assistant Directors of BOB. The Budget examining staff provides assistance to these officials.

Chairman PROXMIRE. Fine.
Mr. Brown?

ETHICAL STANDARDS APPLYING TO OMB AND GSA PERSONNEL

Representative Brown. Our previous discussion indicated that the decisions on computer procurement are centered in the Bureau of the Budget and the General Services Administration. The Bureau of the

Budget determines whether the computer should be acquired, and, if so, whether purchased or rented; GSA implements the Bureau's decision and acquires the computer by the method determined.

What disclosure laws cover the possibility of abuse in either one of these two areas. Are the people who make determinations about computer procurement required, as Members of Congress are now, to disclose their personal holdings or investments?

Mr. CUNNINGHAM. Yes, all the members on the Government staff are required to disclose their holdings and investments. The job is split, as you can see, in several segments, which offers another feature for prevention of any kind of hanky-panky.

Representative Brown. But, for instance, are the people in the Bureau of the Budget who make the decisions as to whether or not we get another computer for whatever price included under these disclosure requirements?

Mr. INK. Yes, sir.

Representative Brown. Those people have their investments on public display; is that correct?

Mr. INK. Yes, sir.
Representative Brown. How long has that been the case?

Mr. CUNNINGHAM. It has been the case since I joined the Bureau in 1966. We had to submit a financial statement.

Mr. Ink. We will have to supply for the record when the disclosure policy went into effect.

(The following information was subsequently supplied for the record by the Office of Management and Budget:)

Executive Order 11222 (below), prescribing standards of ethical conduct for Government officers and employees, was issued on May 8, 1963, and revoked a number of earlier issuances.

a

EXECUTIVE ORDER 11222-PRESCRIBING STANDARDS OF ETHICAL CONDUCT FOR

GOVERNMENT OFFICERS AND EMPLOYEES

By virtue of the authority vested in me by section 301 of title 3 of the United States Code, and as President of the United States, it is hereby ordered as follows:

PART I-POLICY

SECTION 101. Where government is based on the consent of the governed, every citizen is entitled to have complete confidence in the integrity of his government. Each individual officer, employee, or adviser of government must help to earn and must honor that trust by his own integrity and conduct in all official actions.

PART II-STANDARDS OF CONDUCT

SECTION 201. (a) Except in accordance with regulations issued pursuant to subsection (b) of this section, no employee shall solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment, loan, or any other thing of monetary value, from any person, corporation, or group which

(1) has, or is seeking to obtain, contractual or other business or financial relationships with his agency;

(2) conducts operations or activities which are regulated by his agency; or

(3) has interests which may be substantially affected by the performance or nonperformance of his official duty.

(b) Agency heads are authorized to issue regulations, coordinated and approred hy the Civil Service Commission, implementing the provisions of subsection (a) of this section and to provide for such exceptions therein as may be necessary and appropriate in view of the nature of their agency's work and the duties and responsibilities of their employees. For example, it may be appropriate to provide exceptions (1) governing obvious family or personal relationships

where the circumstances make it clear that it is those relationships rather than the business of the persons concerned which are the motivating factors—the clearest illustration being the parents, children or spouses of federal employees; (2) permitting acceptance of food and refreshments available in the ordinary course of a luncheon or dinner or other meeting or on inspection tours where an employee may properly be in attendance; or (3) permitting acceptance of loans from banks or other financial institutions on customary terms to finance proper and usual activities of employees, such as home mortgage loans. This section shall be effective upon issuance of such regulations.

(c) It is the intent of this section that employees avoid any action, whether or not specifically prohibited by subsection (a), which might result in, or create the appearance of—

(1) using public office for private gain ;
(2) giving preferential treatment to any organization or person;
(3) impeding government efficiency or economy;
(4) losing complete independence or impartiality of action;
(5) making a government decision outside official channels; or

(6) affecting adversely the confidence of the public in the integrity of the Government. Sec. 202. An employee shall not engage in any outside employment, including teaching, lecturing, or writing, which might result in a conflict, or an apparent conflict, between the private interests of the employee and his official government duties and responsibilities, although such teaching, lecturing, and writing by employees are generally to be encouraged so long as the laws, the provisions of this order, and Civil Service Commission and agency regulations covering conflict of interest and outside employment are observed.

Sec. 203. Employees may not (a) have direct or indirect financial interests that conflict substantially, or appear to conflict substantially, with their responsibilities and duties as Federal employees, or (b) engage in, directly or indirectly, financial transactions as a result of, or primarily relying upon, information obtained through their employment. Aside from these restrictions, employees are free to engage in lawful financial transactions to the same extent as private citizens. Agencies may, however, further restrict such transactions in the light of the special circumstances of their individual missions.

SEC. 204. An employee shall not use Federal property of any kind for other than officially approved activities. He must protect and conserve all Federal property, including equipment and supplies, entrusted or issued to him.

SEC. 205. An employee shall not directly or indirectly make use of, or permit others to make use of, for the purpose of furthering a private interest, official information not made available to the general public.

SEC. 206. An employee is expected to meet all just financial obligations, especially those--such as Federal, State, or local taxes--which are imposed by law.

PART III-STANDARDS OF ETHICAL CONDUCT FOR SPECIAL GOVERNMENT EMPLOYEES

SEC. 301. This part applies to all "special Government employees” as defined in section 202 of title 18 of the United States Code, who are employed in the executive branch.

SEC. 302. A consultant, adviser or other special Government employee must refrain from any use of his public office which is motivated by, or gives the appearance of being motivated by, the desire for private gain for himself or other persons, including particularly those with whom he has family, business, or financial ties.

SEC. 303. A consultant, adviser, or other special Government employee shall not use any inside information obtained as a result of his government service for private personal gain, either by direct action on his part or by counsel, recommendations or suggestions to others, including particularly those with whom he has family, business, or financial ties.

SEC. 304. An adviser, consultant, or other special Government employee shall not use his position in any way to coerce, or give the appearance of coercing, another person to provide any financial benefit to him or persons with whom he has family, business, or financial ties.

SEC. 305. An adviser, consultant, or other special Government employee shall not receive or solicit from persons having business with his agency anything of value as a gift, gratuity, loan or favor for himself or persons with whom he has family, business, or financial ties while employed by the Government or in connection with his work with the Government.

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