IV. Department of the Treasury

The foreign aid and economic functions of the Department of the Treasury stem from its general financial and monetary responsibilities. All its functions are economic both at home and abroad, where the Treasury is responsible for development of financial aspects of foreign programs. It collects, analyzes, and disseminates world financial data; provides financial advice to foreign operating agencies of the Government; and administers controls over foreign financial transactions, foreign assets, and imports under the Trading With the Enemy Act.

The foreign and international responsibilities of the department are handled in Washington by the Office of International Finance within the Office of the Secretary. There is separate statutory authority of a system of Treasury attachés overseas. (Gold Reserve Act of 1934.)

Discussion

The Department of the Treasury provides policy guidance to the Foreign Operations Administration, the Department of State, and other agencies with respect to fiscal and monetary considerations. This does not involve any duplication or overlapping. Its functions in this report would not be greatly affected by any organizational changes involving the foreign aid program.

Some duplication or overlapping may exist overseas as a result of the Treasury attachés, although it is of a small importance.

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V. Department of Commerce

The Department of Commerce is concerned exclusively with economic matters, but its overseas functions represent a small segment of its total responsibilities. Its major overseas functions are those arising from its statutory duty to foster, promote, and develop the foreign commerce of the United States including overseas investments. Other overseas responsibilities include: a dominant role within the Government in formulating international transportation policy; administration of export licensing controls; collection, analysis, and dissemination of world commercial data; and guidance for Government-industry participation in international trade fairs. The program for the promotion of travel, authorized in the Mutual Security Act of 1954, has been assigned to the Department by the President. (Executive Order 10575, November 6, 1954.)

Organization at Home

The international trade and commerce functions of the department are largely discharged through the Bureau of Foreign Commerce, under an Assistant Secretary for International Affairs. The bureau includes the following organizational units: Foreign Services Operations Staff; Foreign Economic Development Staff; Office of Economic Affairs (which is divided into geographical divisions roughly parallel to those in the State Department), International Resources Staff, and Office of Intelligence and Services. Through its Office of Export Supply, the bureau contributed to the administration of the Battle Act. Other agencies of the Department of Commerce, including the Civil Aeronautics Administration, Maritime Administration, and the Coast and Geodetic Survey, also have relatively minor overseas functions.

Organization Overseas

From 1914 to 1939, the Department of Commerce maintained its own overseas staff of commercial attachés and trade commissioners. In 1939, this staff, together with the agricultural attachés, was merged with the foreign service of the Department of State. In December 1954, new arrangements were worked out giving the Department of Commerce increased administrative control over trade commissioners overseas. However, the department still relies on the foreign service personnel of the Department of State to perform its overseas functions.

Assistance to FOA

In addition to carrying out its own foreign responsibilities, the Department of Commerce provides, on a reimbursable basis advice, assistance and technical support in large measure to FOA in connection with the foreign aid program. In the 1955 fiscal year, it is expected that these reimbursements will cover some 300 positions and exceed $2,900,000. The services provided the foreign aid programs by Commerce include the assignment overseas of experts and support for FOA Washington, from the Bureau of Public Roads, the Bureau of Foreign Commerce, and the Civil Aeronautics Administration. The Bureau of Census furnishes international trade statistics to FOA; the Business and Defense Services Administration assists in providing technical counsel, publications, and engineering services.

Discussion

The activities and functions of FOA in the promotion of trade, travel, and investment, investment guarantees, administration of the Battle Act, and services to American small business clearly overlap with or duplicate functions of the Department of Commerce in these fields, both with respect to organizations in Washington and abroad. More effective and economical operation would undoubtedly result from the elimination of these duplications by lodging full responsibility in the Department of Commerce which has the primary responsibility.

Moreover, the responsibilities of the Department of Commerce overseas may lead to conflict or duplication with the duties of other departments, such as Agriculture in connection with the foreign trade in processed agricultural commodities. Since reliance by Commerce on the overseas personnel of the Department of State has not given satisfactory results, Commerce has, at times, found itself unable to secure the special purpose information it requires. A strengthened and broadened foreign service officer group, responsive to all the overseas needs of United States agencies, would go a long way toward eliminating these conflicts and providing more effective service.

VI. Department of Agriculture

The Department of Agriculture is engaged in economic programs almost entirely, but only a minor portion of its functions involve overseas activities.

Its foreign responsibilities include marketing and bartering surplus agricultural products, developing foreign markets for United States agricultural products, administering United States operations under the international wheat and sugar agreements, administering the agricultural attaché system, collecting world agricultural data, and enforcing quarantines and requirements on imports and exports.

Organization for Foreign Operations

In Washington these responsibilities of the Department are carried out and directed by the Foreign Agricultural Service, under an Assistant Secretary for Marketing and Foreign Agriculture, and by the Commodity Stabilization Service, which is responsible for procurement of agricultural commodities for FOA, for purchase abroad of commodities needed for domestic and foreign requirements, and for administration of the international commodity agreements.

From 1930 until 1939, the Department had a separately administered foreign service, but in 1939 it was integrated, along with the Commerce attachés, into the foreign service of the Department of State. The Agricultural Act of 1954 returned the agricultural attaché service to the Department of Agriculture. A total of 137 Americans and local employees currently staff the permanent overseas missions of the Department.

Assistance to FOA

The Foreign Operations Administration calls on the Department for technical assistance and support in connection with a wide range of agricultural programs, and for certain procurement activities as noted above. For the fiscal year 1955, FOA reimbursements to the Department are estimated to cover 170 positions at a cost of $1,108,000, involving virtually all of the various bureaus and services of the Department.