United States are being developed to insure against the insulation of the policymakers in the Department from the advice of those in the USIA familiar with foreign public opinion and psychologies. As now contemplated, these arrangements would provide for officers of the Department in the Office of the Assistant Secretary of State for Public Affairs and the offices of the Assistant Secretaries for regional and functional affairs to be in close contact with appropriate officers of the USIA at many levels. They will exchange information and opinions freely and frequently. Moreover, just as the USIA will have access to significant telegrams, dispatches, memoranda, intelligence reports, and summaries available within the Department of State, so the Department will have access to the significant communications and reports exchanged between USIA in Wash'ington and its representatives in the field.

In addition the diplomatic missions and the USIA missions in the field will be in close and continuing contact. It is expected that they will keep each other fully informed about the requirements of policy and the state of public opinion. The head of the USIA staff will be a member of the team under the general direction and coordination of the ambassador and in this capacity will provide advice on opinions and psychological matters generally to the ambassador and to the other members of the team.

Therefore, on an overall basis, the makers of foreign policy and the experts on foreign public opinion will work from the same broad facts and be guided by the same general considerations.

Since the USIA will use the civil-service system for its domestic employment, there should be no serious barrier to the transfer of personnel between USIA and the Department. As for overseas personnel, it is expected that Foreign Service officers will continue to be assigned for agreed terms to USIA. The personnel system USIA will use for its other overseas personnel will be based upon the provisions of the Foreign Service Act of 1946 and this should minimize the difficulty of the transfer of such personnel into the Foreign Service staff and reserve positions which are the responsibility of the Department of State.

Question 11. It has been said that "Policy problems in propaganda are intangible, subtle, and continuous rendering necessary participation and collaboration rather than review." Would you indicate the nature and extent of foreign policy matters arising in overseas information programs, the methods for State Department review and guidance, and the extent of State-USIA liaison anticipated.

Answer 11. In existing circumstances, virtually every action of the Government and every attitude of the people of the United States has the capability of affecting, for good or for ill, the relations between the United States and the peoples and the governments of other countries. In addition, the preparation of propaganda requires access to full background information on political and economic conditions in areas abroad. Therefore, it is necessary for the Department of State to provide to USIA not only full and current guidance on our foreign policy but also to make freely available background information, advice and consultation on conditions and probable future developments abroad and forecasts of the future development of our own policy.

With respect to the provision of foreign policy guidance, the Department, on its own initiative and in response to the requirements of the USIA, acting through the Office of the Assistant Secretary for Public Affairs, will provide the USIA with full information concerning the foreign policy of the United States, including background, objectives, and current developments. This information will normally be prepared in written form in the appropriate regional or functional bureau of the Department, and will be coordinated through the Office of the Assistant Secretary.

In addition, the Department, acting through the Office of the Assistant Secretary of State for Public Affairs and of the regional and functional bureaus, will provide oral guidance as to foreign policy with regard to issues suddenly arising and requiring urgent consideration.

Moreover, the Department of State will undertake to enable appropriate representatives of the independent agency to attend and to participate in authoritative briefings concerning important foreign policy issues. Arrangements will also be made for the independent agency to avail itself of significant telegrams, dispatches, memoranda, intelligence reports, summaries, and other appropriate materials available within the Department of State.

Review of major USIA plans and programs will be undertaken by the Department to assure that they are consistent with foreign policy and will facilitate the achievement of foreign policy objectives. Such plans and programs

will be submitted by USIA to the Assistant Secretary for Public Affairs. They will be reviewed by him and by appropriate regional and functional bureaus, and, as necessary, by the Secretary or Under Secretary. The Department's conclusion as to the relationship of programs to foreign policy objectives will be furnished to the USIA in written form. Joint conferences will be held as necessary. In addition, appropriate Department personnel will participate on request of USIA in the formulation of its basic programs for various areas and for individual countries. To assist the Department, the views of the chiefs of diplomatic missions will be available as a result of their participation in the development of the program at the country level.

With respect to State-USIA liaison, it is expected that the present arrangements for liaison between State and IIA will generally be continued. These arrangements have been developed through experience to meet both policy and operational requirements.

The provision of policy guidance will be a continuous process, the effectiveness of which will depend on close and clearly defined relationships between the two agencies. Official and formal guidance will come from the Assistant Secretary to the appropriate policy officer of USIA, but there will be developed, under the direction of the Assistant Secretary and the Director of USIA, well defined channels of communication from the regional and functional bureaus of the Department to designated officers in the USIA.

Question 12. Will you clarify the relation of psychological warfare to overseas information? Can you describe the relations between the Psychological Strategy Board and the proposed USIA?

Answer 12. Informational activities to be carried on by the United States Information Agency constitute one important element of what is broadly described as psychological warfare. It is a highly important element and the most extensive and the most voluminous. Coordination between the information activities of the USIA and other elements of psychological warfare is accomplished at the highest level by the Psychological Strategy Board and at the operating level by the Psychological Operations Coordinating Committee. Through such coordinating mechanisms the information activities of the USIA are fitted into other activities of the Government in the psychological field.

Inasmuch as the role of the Psychological Strategy Board is now under review, a precise definition of the relations that will exist between it and the USIA cannot now be given. However, it is expected that both the Department of State and the USIA will be fully represented at all levels of the coordinating process among the agencies involved in foreign propaganda and psychological activities.

JUNE 17, 1953.

DATA SUPPLIED BY THE BUREAU OF THE BUDGET ON COMBINED REQUIREMENTS FOR 1954 APPROPRIATIONS FOR CIVILIAN FOREIGN INFORMATION AND EDUCATIONAL EXCHANGE ACTIVITIES

SECRETARY OF STATE

My DEAR Mr. SECRETARY: Upon the request of the President, a further review has now been completed of the combined requirements for 1954 appropriations for the several civilian foreign information and educational exchange activities of the United States. A reanalysis of these activities within the framework of the stated budget policies of this Administration, giving consideration to the comparative importance of these activities to this Nation's security program, has resulted in a reduction in the total previously contained in the revised 1954 allowances. The amount for annual definite appropriation requests for 1954 has been reduced from $123.4 to $112.5 million; this is comparable to $146.6 million available in 1953. The total estimated 1954 availability is thereby reduced from $136.5 to $125.6 million; this is comparable to $157.4 million available in 1953. These amounts and the proposed procedure for handling them with the Congressional Appropriations Committees have previously been explained to your staff, including representatives of the International Information Administration. Procedures for handling this matter, which have been informally discussed by Assistant Director Hughes with Mr. Taber of the House Appropriations Committee, are outlined in the accompanying memorandum, dated June 12, 1953. There is also enclosed a table which indicates the distribution of funds under the previous allowances and the current revision, dated June 12, 1953.

As they affect appropriations of your Department, previous allowances and revisions were contained in Bureau of the Budget letters dated March 18, April 21,

and May 25, 1953. To the extent that these allowances conflict with the overall determinations herein specified, they are no longer applicable. However, in view of the proposed method of handling these matters described in the attached memorandum, no detailed revisions of estimates by appropriation are being made. Copies of these data are being sent to Director for Mutual Security Stassen, since $3.2 million of the total assets involve accounts under his jurisdiction. It is expected that you will promptly transmit copies of this letter, together with its attachments, to the chairmen of both Congressional Appropriations Committees. Sincerely yours,

ROWLAND HUGHES,
Assistant Director.

PROPOSED HANDLING OF 1954 OPERATING EXPENSES APPROPRIATIONS FOR CIVILIAN FOREIGN INFORMATION AND EDUCATIONAL EXCHANGE ACTIVITIES OF THE UNITED STATES

JUNE 12, 1953.

1. Current budget submissions.-Dollar amounts for foreign information activities of the United States are (or will be) budgeted in three appropriations:

International information and educational activities, State_
Government in occupied areas, State1-
Mutual Security, funds appropriated to the President__

Millions

$87.9

27.9

7.6

Total dollars, annual definite appropriation requests now before
(and to be presented to) Congress, 1954-

123. 4

1 $27.9 million is the Information portion of the $45.1 million total GOA budget. While the total dollars available for these programs in 1953, $99.5 million, is less than the $123.4 million annual definite dollars requested for 1954, these figures are not at all comparable, since in 1953 foreign credits supplemented regular operating expense dollars. In 1954, dollars only are budgeted for all regular operating expenses, except the Fulbright programs. Comparable figures for operating expenses are: 1953, $146.6 million, against 1954 budget estimates of $123.4 million.

When foreign credits, permanent authorizations, and prior-year balances for educational exchange programs are added to the regular operating expense amounts, comparable totals are: 1953, $157.4 million; 1954, $136.5 million.

The attached table shows the components of these proposed dollar annual definite appropriations ($123.4 million), the estimated use of foreign credits without dollar reimbursement for the Fulbright educational exchange program ($10.1 million), and permanent authorizations and prior-year balances for Finnish, Indian (wheat), and Chinese-Korean educational exchanges ($3 million), total assets equaling $136.5 million recommended in the revised budget allowance dated April 21, 1953.

2. Proposed congressional action.-The fact that funds are requested for 1954 in three appropriations and that other assets would become available, as described above, when coupled with the fact that if Reorganization Plan No. 8 of 1953 becomes law there will be created an independent United States Information Agency, resulting in problems of timing and appropriation structure. The best resolution would be for the House Appropriations Committee to effect a consolidated handling for 1954 of the three appropriations enumerated above. Whatever amount was appropriated could be appropriated under the head, "International information and educational activities." This would result in a few minor appropriation language difficulties, discussed more fully below, but otherwise should not interfere with the effective administration of these programs whether Reorganization Plan No. 8 becomes effective or not.

It would, of course, be necessary that the Senate agree to such an appropriation structure change and take its action accordingly. If such an appropriation were enacted, the job of the Director of the Bureau of the Budget in dividing the funds between the new Information Agency and the State Department-as provided by plan No. 8 if it becomes law-would also be simplified.

3. Recommended 1954 dollar appropriation.--In addition to the foreign credits, permanent authorizations, and prior-year balances recommended to be made available for Fulbright, Finnish, Indian, and Chinese-Korean educational exchanges, an annual definite appropriation amount of $112.5 million will carry out a reasonably effective program. As stated above, this $112.5 million figure is comparable to $125.4 million contained in the revised 1954 budget submission, and is comparable to $146.6 million available in 1953. However, because of the

present level of operations of the United States information programs-substantially above the $112.5 million level-this will acutally mean that after paying reduction-in-force costs, the 1954 operating rate will be forced well below a $112.5 million level.

Whether less funds than this magnitude would later prove to be needed cannot now be determined. Therefore, the Bureau of the Budget should not apportion funds from this appropriation for more than the requirements for the first 6 months of fiscal year 1954: the balance should be placed in reserve until the new team has had a chance to make final determinations. By December 31, 1953, it can be determined whether further economies can be made.

Basically, the reduction to $112.5 million, which is approximately a 10 percent reduction, can be accomplished through savings in the reorganizations contemplated by plan No. 8. As it affects media used, it would require deemphasizing radio, decentralizing from Washington and New York to the country level the programing for all information media, cutting down the publications and book and press programs to more reasonable levels, and making use of motion pictures only where they will fully serve a useful purpose. Overhead staffs, the size of our foreign information missions, and the cost of administrative and other supporting services would, of course, have to be reduced accordingly.

4. Necessary appropriation language changes.-A number of technical appropriation language changes would be involved in the merger of these appropriations. Likewise, it might be necessary to give the Director of the Bureau of the Budget certain authority to split up these funds if Reorganization Plan No. 8 did not become effective. The Bureau of the Budget could probably furnish suggested language to handle the proposed consolidation of appropriations

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