In the current fiscal year, there was appropriated, via the Second Deficiency Appropriation Act of 1948, $4,000,000. There is now pending in the Senate a supplemental appropriation of $1,115,000 for for export control, which would make the total appropriation for 1949 fiscal year $5,115,000.

The request under the supplemental estimate we now have before us in House Document No. 97 is in the amount of $5,300,000, or an increase of $185,000 over the present fiscal year.

SUMMARY OF POSITIONS AND OBLIGATIONS

Mr. ROONEY. We shall here insert page 16 of the justifications and the chart entitled "Obligations by Objects," on the lower half of page 3 of the justification.

(The matter referred is as follows:)

Export control, Bureau of Foreign and Domestic Commerce estimate of appropriation, fiscal year 1950

Mr. ROONEY. Is there a general statement to be made on this supplemental request, Mr. Bell?

Mr. BELL. Mr. Blaisdell I think will make it for the Bureau, because there are other offices involved besides the Office of International Trade.

Mr. BLAISDELL. Mr. Bell is quite correct. The major amounts requested are for the Office of International Trade, but there is about 25 percent of it which is used in the different parts of the Department, in view of the fact that it requires an increase in the administrative load, both in the Secretary's office and the Assistant Secretary's office and in other parts of the Bureau of Foreign and Domestic Commerce which also use some personnel to supplement the work of the Office of International Trade in this regard.

The principal utilization there, of course, is for those purposes which were referred to in the justifications for the activities of the Secretary's office with regard to other activities of the Bureau of Foreign and Domestic Commerce. I refer particularly to the administration of personnel and budget.

In the Office of the Assistant Secretary the amounts which are used are in connection with staffing the Secretary's Requirements Advisory Committee, of which I am chairman. Some funds are used in the Office of Domestic Commerce which has the primary responsibility for estimating the availability of domestic supplies and in the field service where we maintain a limited number of personnel in the various offices in order to handle detailed questions having to do with the export licensing.

So the major amount is represented by the Office of International Trade and the rest in these various offices. So that in effect the total amount of the appropriation is an addition to the general operations of the Bureau of Foreign and Domestic Commerce to supplement and complement different parts of the Bureau where these different functions either supplement or complement each other.

Mr. ROONEY. That is a very good, if lengthy, summary of everything that appears at first glance on the chart on page 1.

TRANSFER TO BUREAU OF CUSTOMS

What is the purpose of the transfer to the Bureau of Customs in the amount $1,500,000, as requested for the coming fiscal year?

Mr. BLAISDELL. The actual surveillance of goods leaving the country under the export-control system is carried out by the customs service at the ports and the funds are here made available for those personnel which have the actual opening of the boxes and the surveillance of the documents to see that the goods being shipped are in accordance with the licenses which have been issued for goods to leave the country.

Mr. ROONEY. Where do we find the details of this appropriation? Mr. CAWLEY. Mr. Chairman, we have a scheule on the current year's operation for the customs bureau and will insert the proposed schedule for 1950.

Mr. ROONEY. We have never had any schedule before us heretofore. This is a new item as far as we are concerned and we may go at it from an entirely different viewpoint than those who passed on it heretofore.

Mr. BLAISDELL. You are quite right, sir.

Mr. CAWLEY. Mr. Chairman, I apologize. The customs representative will be here shortly and if we may defer that question until he arrives, we would appreciate it.

TRANSFER TO SALARIES AND EXPENSES, OFFICE OF THE SECRETARY

Mr. ROONEY. What is the explanation of the transfer to "Salaries and expenses, Office of the Secretary," in the amount of $105,000? Mr. GLADIEUX. It is the same explanation that Mr. Cawley gave before, Mr. Chairman.

Mr. ROONEY. Is it as bad as that? You have these figures here, do you not?

Mr. GLADIEUX. It is the same explanation as Mr. Cawley gave in connection with the Bureau of Foreign and Domestic Commerce appropriation. This is the proportionate charge for administrative services for export control.

Mr. ROONEY. On what page of the justifications will we find the break-down of this item?

Mr. CAWLEY. Page 17, Mr. Chairman.

Mr. GLADIEUX. This is the proportionate charge which the Office of the Secretary makes from this appropriation for the provision of those administrative services which we handle centrally, in personnel, accounting, auditing, mail and a whole variety of administrative

services.

INCREASE IN NUMBER OF POSITIONS

Mr. ROONEY. Why is there a request for an increase from 24 to 35 positions?

Mr. GLADIEUX. The increase in both positions and money is because, over the last year, we have made some studies as to the proportionate work load which we carry on for these various organizations and their related appropriations. We have found that we have not been charging the export-control appropriation a proportionate

amount for the services rendered. For example, I can illustrate. We have found in the handling of mail at our central mail center, that the export-control mail comprises some 153 percent of the total volume handled. In the case of personnel we estimate that the total volume handled by our personnel operations division, some 35 percent of it is for export control exclusively and the amount of $105,000 here reflected is in an attempt to adjust the charges and make them more nearly relative and more equitable as between the various offices and appropriations which we service.

Mr. ROONEY. Is there anything else you want to say on this?

Mr. GLADIEUX. That is the gist of it, except to emphasize again that by handling these services centrally we feel we make considerable savings for all the offices.

Mr. ROONEY. You are repeating the same explanation and it does not sound like a good one to me.

Mr. GLADIEUX. The question is simply this. Could the export control function maintain an administrative service set-up, a fullscale set of administrative services personnel, accounting and auditing, pay roll, and all the rest-for $105,000. And we would say quite categorically that they could not approach establishing those services for that amount. We can do it centrally much cheaper.

Mr. CAWLEY. Mr. Chairman, I should like to add this by way of further explanation. As Mr. Gladieux has stated, the charge for export control services has been disproportionate. In the current year, as a matter of fact, we have used more than the 24 people to render services for the export control function.

Mr. ROONEY. Where did you take them from?
Mr. CAWLEY. We have been able to finance-
Mr. ROONEY. Where did you take them from?

Mr. CAWLEY. We have them on the immediate Office of the Secretary and OIT pay rolls. We have been able to finance them in the Office of the Secretary because we have had several vacancies that have continued for some time. But I should like to state that when we presented the budget for July 1 to February 28 last year we explained that the amount provided for transfer would not cover our full requirements and that beyond February 28 we would have some adjustments.

I can give you in fairly elaborate detail here, Mr. Chairman, all the facts concerning this.

For example, on personnel operations, in the current year we have carried only 8 on the export-control transfer but have had 16 servicing that group. The requirements there for 1950 are 13. So, for the fiscal year 1950, we are asking that we be able to pay the salaries of 13 people for personnel operations instead of the 16 that we have carried in the current fiscal year.

Similarly, on accounting control for this appropriation in excess of $5,000,000 this past year we have charged only 5 people, for all of the bookkeeping and auditing and scheduling, and so forth for the export control program. program. We carried some additional people on the regular funds of the Office of the Secretary. Next year we want to charge export control with eight people which we plan to do under this increased estimate.

Likewise on other administrative services, for the current year we have used 14 people but only charged 11 to the export control fund.