they require modification of contracts or other financial arrangements already entered into by the United States (or any Government agency) shall not go into effect until one hundred and twenty days after the date of enactment of this Act. (d) The head of any Government agency financing by contract, or otherwise administering, federally financed research and development activities, may, by stipulation in the contract or by other advance agreements with any organization, provide for the retention by the organization, or by the inventor, or by their assignees of such patent rights based on discoveries, inventions, or findings produced in the course of such research and development as the head of such Government agency deems fair and equitable, and consistent with the national interest: Provided, That (1) the head of such Government agency shall, before entering into any such contract or agreement, make a finding that the agency has made every reasonable effort to arrange for the conduct of the necessary research and development, without entering into a contract containing such provision; (2) the organization shall contribute or shall have contributed substantially to the development of the particular inventions, discoveries, or findings for which patent rights are retained through earlier or current research and development activities financed by the organization; (3) in every case, the contract or agreement shall provide for at least an irrevocable, nonexclusive, royaltyfree license for governmental purposes to the United States; and (4), in the case of any nonprofit organization, the head of such Government agency further determines (A) that the research and development is essential in the field of national defense or in such other fields as the President may specify for such purpose, and (B) that the patent rights retained will not be used to serve the special benefit of any organization conducted for profit or of any individual, and will be made available or licensed to applicants on a nonexclusive, uniform, and reasonable royalty basis. In the administration of the provisions of this subsection, the head of any Government agency shall be guided by such rules and regulations as the President may deem necessary and prescribe by Executive order. (e) The Administrator shall make a quarterly report to the President and to the Congress concerning contracts and agreements containing the provisions authorized by subsection (d). This report shall include a list of all contracts and agreements containing such a provision entered into by any Government agency during the preceding quarter, the reasons supporting the approval of such provision in each case, the amount of Federal funds expended or to be expended under each contract or agreement containing such a provision, the name of the organization with which the contract or agreement was made, and the general nature of the patent rights reserved for private use in each case. The report shall also include a list of all inventions, discoveries, or findings in which patent rights were permitted to be retained pursuant to the provisions of subsection (d) and which were first recorded or finally authorized during the preceding quarter, identification of the contract or agreement under which such inventions, discoveries, or findings were produced, and the nature of the rights retained. The report shall also include the Administrator's recommendations, if any, for such further Executive or legislative action as may deem necessary. (f) Notwithstanding any other provision of this Act, the President, or any person designated for that purpose by him, may exempt from the requirements of this Act relating to dedication to the public, publication, dissemination, making available, or reporting information, data, patents, inventions, or discoveries relating to or produced in the course of federally financed research or development or in which the United States holds any rights, if and so long as the President or such designated person determines that such exemption is essential in the interest of national security. INTERNATIONAL COOPERATION SEC. 9. (a) The head of any Government agency is hereby authorized, with the approval of the President and through the Department of State, to conclude reciprocal agreements with foreign governments or agencies thereof, relating to the interchange of scientific and technological information (including models and samples for information purposes), and the use and availability of patents and patent rights owned or controlled by the respective governments. (b) The Administrator is hereby authorized, with the approval of the President and through the Department of State, to cooperate in any international research or development activities consistent with the purposes or provisions of Act and to expend for such international research activities such sums within the limit of appropriated funds as the Administrator may deem desirable. (c) The Administrator may defray the expenses of representatives of Government agencies and other organizations and of individual scientists to accredited international scientific congresses and meetings whenever he deems it necessary in the promotion of the objectives of this Act. INTERDEPARTMENTAL COORDINATION SEC. 10. (a) There is hereby established an Interdepartmental Committee on Science, to consist of the Administrator, as Chairman, and the heads (or their designees) of such Government agencies engaged in or concerned with the support of scientific activity to a substantial degree as the President may from time to time determine. The Interdepartmental Committee shall meet whenever the Chairman so determines, but not less than once a month. (b) The Interdepartmental Committee shall advise and assist the Administrator in gathering and correlating data relating to the scientific research and development activities of the Federal Government; shall study and evaluate such data in relation to the program of the Foundation and the scientific research and development programs of the other Government agencies; and shall make such recommendations to the Foundation and other Government agencies as in the opinion of the Committee will serve to aid in effectuating the objectives of this Act and other legislation providing for Federal support of scientific research and development. The Administrator, in consultation with the Interdepartmental Committee, shall, from time to time, make recommendations to the President for the achievement of maxmum effectiveness in the conduct of all federally financed research and development. MISCELLANEOUS SEC. 11. (a) To enable the Administrator to carry out his powers and duties, there is hereby authorized to be appropriated annually to the Foundation, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary to carry out the provisions of this Act. The funds appropriated to the Foundation, as herein authorized, and funds hereafter appropriated to any Government agency for scientific research or development, as herein defined, shall, if obligated during the fiscal year for which appropriated, remain available for expenditure for four years following the expiration of the fiscal year for which appropriated. After such a four-year period, the unexpended balances of appropriations shall be carried to the surplus fund and covered into the Treasury. (b) The materials or equipment purchased by Federal funds or furnished by the Federal Government in connection with research and development activities shall be the property of the United States. The Administrator shall not, however, through the Foundation or its own employees, operate any laboratories, pilot plants, or other such scientific or technical facilities which he may acquire. (c) In carrying out his functions under this Act, the Administrator is authorized (1) to prescribe such rules and regulations as he may deem necessary to govern the manner of the operations of the Foundation and its organization and personnel; (2) to make such expenditures as may be necessary for carrying out the provisions of the Act; (3) to enter into contracts, or amendments or modifications of contracts, without performance or other bonds, and without regard to section 3709 of the Revised Statutes (U. S. C., title 41, sec. 5) in the case of all contracts which relate to scientific research or development; (4) to make advance, progress, and other payments which relate to scientific research or development without regard to the provisions of section 3648 of the Revised Statutes (U. S. C., title 31, sec. 529); (5) to acquire by purchase, or otherwise, hold and dispose of by sale, lease, loan, or otherwise, real and personal property of all kinds necessary for, or resulting from, scientific research or development; and (6) to prescribe, with the approval of the Comptroller General of the United States, the extent to which vouchers for funds expended under contracts for scientific research and development shall be subject to itemization or substantiation prior to payment, without regard to the limitations of other laws, relating to the expenditure of public funds and accounting therefor. (d) Tue provisions of the Reorganization Act of 1945 shall be applicable with respect to the Foundation, and with respect to the transfer of agencies and functions to and from the Foundation, without regard to the provisions of section 5 (e) of such Act. (e) The Office of Scientific Research and Development, and its constituent committees shall be transferred to the Foundation; together with such of the powers, functions, duties, personnel, property, records, funds, (including all unexpended balances of appropriations, allocations, or other funds now available), contracts, assets, and liabilities as may be determined by the President. The National Roster of Scientific and Specialized Personnel shall be transferred from the Department of Labor to the Foundation, together with such of the personnel, records, property, and balances of appropriations as have been utilized or are available for use in the administrtaion of such roster as may be determined by the President. The transfers provided for in this subsection shall take effect at such time or times as the President shall direct. (f) If any provision of this Act, or the application of such provision to any person or circumstance, is held invalid, the remainder of this Act, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. SEC. 12. As used in this Act DEFINITIONS (a) "Research and development" means theoretical analysis, exploration, and experimentation in any field of science (including but not limited to the mathematical, physical, biological, medical, engineering, and social sciences), and the extension of investigative findings and theories of a scientific or technical nature into practical application, including the experimental production and testing of models and processes. (b) "Federally financed research and development" means research and development conducted directly by the Federal Government and all other research and development financed in whole or in part directly by the Federal Government from funds designated for research and development, under a contract, grant, or other direct form of financial assistance for research and development. (c) "Government agency" includes departments, independent agencies and commissions, corporations, and other instrumentalities of the Federal Government. (d) "Organizations" include State and local government agencies, corporations, partnerships, nonprofit institutions, and individuals. (e) "Scholarships and fellowships" means stipends covering tuition and other fees, and such living, travel, and other expenses as the Administrator may determine. Mr. PRIEST. The Chair would like to ask unanimous consent to have placed in the record immediately following the printed text of the bills some reports from the Government departments. We have three reports from the Atomic Energy Commission dealing with the three classifications of the bills before the committee. We also have a report from the National Advisory Committee for Aeronautics, one from the Treasury Department, one from the Civil Service Commission, a report from the Department of State, and one from the Department of Agriculture. We also have a report from the Civil Service Commission in which they suggest some amendments that the subcommittee can take up in executive session. In addition, we have a report from the Department of Labor and one from the Executive Office of the President. There is a further report from the Executive Office of the President, and there is also a report from the National Military Establishment and one from the Federal Security Agency. Without objection, these reports from the departments will be printed in the record immediately following the text of the bills. (The reports follow :) Hon. ROBERT CROSSER, THE SECRETARY OF COMMERCE, Chairman, Committee on Interstate and Foreign Commerce, DEAR MR. CHAIRMAN: This letter is in reply to your recent communications requesting the Department's opinion concerning H. R. 12, 185, 311, 1845, 2308, and 2751, bills to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense; and for other purposes, and H. R. 359, a bill to promote the progress of science and the useful arts, to secure the national defense, to advance the national health and welfare, and for other purposes. Since the termination of hostilities, the President and the Congress have been aware of the need for the establishment of a National Science Foundation. A bill to establish a foundation, S. 1850, was introduced into the Seventy-ninth Congress and, after extensive hearings were held, passed the Senate in July of 1946. This bill failed of enactment with the adjournment of the Seventy-ninth Congress. Numerous bills to obtain this objective were introduced into the first session of the Eightieth Congress. S. 525, a bill similar to S. 1850 of the Seventy-ninth Congress, and S. 526, which provided for a different organizational make-up,1 were considered by the Senate Committee on Labor and Public Welfare, and S. 526 was reported to the Senate and ultimately passed the Congress. That bill was not approved by the President, and he transmitted to the Congress on August 6, 1947, a memorandum outlining his reasons for withholding approval. A bill, H. R. 6007, and an identical bill, S. 2385, were then introduced into the second session of the Eightieth Congress. These bills were drafted in an effort to satisfy the President's objection to S. 526 and to secure the best possible legislation on this subject. S. 2385 passed the Senate by a voice vote in May of 1948, but no action was taken by the House. H. R. 6007, although reported favorably by the House Committee on Interstate and Foreign Commerce, failed of enactment with the adjournment of the Eightieth Congress. A large number of bills have been introduced in the Eighty-first Congress to establish a National Science Foundation. Bills similar to H. R. 6007 and S. 2385 of the Eightieth Congress which have been introduced to date are H. R. 12, 185, 311, 2308, 1845, 2751, and S. 247. One bill, H. R. 359, is similar to S. 1850 of the Seventy-ninth Congress and S. 525 of the Eightieth Congress. This Department has the following comments concerning the subject bills: ORGANIZATION The determination of what organizational structure should be created to operate a Science Foundation has been a central issue in the consideration of past bills on this subject. The problem has revolved around the issue of the extent to which Government policy should be determined and Government funds expended by persons who will act as Government officials only when attending meetings of the Foundation. S. 526 of the Eightieth Congress was vetoed by the President primarily because it was considered unsound in its organizational structure. This bill vested the authority of the Government in a 24-member Foundation, an executive committee chosen by it, and a Director also named by the Foundation. H. R. 6007 (80th Cong., 2d sess.) provided for the appointment of the Director by the President. This modification of the vetoed proposal was made with a view to meeting the President's objection. Although H. R. 12, 185, 311, 1845, 2308, and 2751 of the Eighty-first Congress provide for the appointment of the Director by the President, it is the opinion of this Department that administrative efficiency would be better assured if these proposals provided for carrying out congressional policy through the executive branch of the Government in the normal manner. Rather than delegating power to persons who, for all practical purposes, are outside the Government, we feel that it would be more advantageous to provide for the placing of all executive responsibility in the hands of the Director or a full-time nonpartisan commission, with an advisory committee set up for consultation. The one-man Admin 1 The principal difference between S. 525 and S. 526 (80th Cong.) related to (1) form of administrative organizations, (2) patent policy, (3) the inclusion of social science, and (4) the distribution of research funds. istrator, acting upon the advice of a nine-man advisory board, provided for in H. R. 359 would provide the more usual type of administrative organization. It is not because of a lack of confidence in the integrity or wisdom of the prominent citizens who would be the members of the Foundation that the above objection is voiced. It is rather a belief that the formulation and execution of Government policy is a full-time job and private citizens who are Government officials for only a few days a year cannot have the familiarity with the problems of Government administration, so essential to the effective discharge of Government responsibilities and to the avoidance of conflict with established Government policies. It is recognized by this Department that this view was presented several times to the Eightieth Congress, and was considered in detail at the time of the hearings on S. 525 and S. 526 in 1947 and when H. R. 6007 was considered in 1948. The Department nevertheless continues to favor this view and urges further consideration of the organizational structure of the Foundation in light of the above recommendations. The proposed bills represent improvement over S. 526 of the Eightieth Congress which was vetoed by the President. They would provide for a Director, appointed by the President, who would exercise all powers set forth in the proposal, subject to the policies developed by the Foundation, and would supervise the contract-research program and the accompanying expenditure of research funds, with the approval of the Foundation's executive committee. Nevertheless, it is believed that additional steps should be taken if the confusion which we feel would be inherent in such an organizational structure is to be minimized. It is recommended that the bills specifically provide for the appointment of a limited number of Government officials as members of the Foundation. The mutual advantage to be gained from joint participation by Government officials and qualified members of the public in approaching the problems of scientific research have been demonstrated by the National Advisory Committee for Aeronautics which includes representatives of interested Government agencies and outstanding authorities from outside of Government. The presence of Government officials on the Foundation would provide some measure of coordination between the Foundation and the broad programs of the executive branch. In addition, the appointment of Government officials to the Foundation would do much to promote coordination of the activities of existing Government scientific agencies and the Foundation. In view of the presence of such scientific agencies as the National Bureau of Standards, Weather Bureau, and the Coast and Geodetic Survey within the Department of Commerce, the Department is particularly interested in this problem. The only provision in H. R. 12, for example, which seeks to secure some measure of cooperation among existing Government agencies and the Foundation is section 14 (b) which states: "The activities of the Foundation shall be construed as supplementing and not superseding, curtailing, or limiting any of the functions or activities of other Government agencies authorized to engage in scientific research and development." In view of the impossibility of precise description of the exact functions or activities of the Government agencies in such a rapidly changing field as scientific research, it is the Department's opinion that existing agencies must coordinate their work with that of the Foundation to avoid duplication. Such coordination, the Department believes, could be obtained through the Interdepartmental Committee on Scientific Research and Development, which was created by Executive order in 1947. There is some recognition of this principle in these bills, for example, H. R. 12 where the Foundation is directed to consult with the Secretary of Defense concerning national defense research, with the Secretary of State when the Foundation cooperates with foreign countries on international research and in the total exemption of the atomic research field from the scope of the Foundation's activities. The proposals now before the Congress provide for Divisions of Medical Research; Mathematical, Physical, and Engineering Research; Biological Science; Scientific Personnel and Education; and such others as the Foundation may deem necessary. Only in H. R. 359 is specific provision made for a Division of Social Science. Although the other proposed bills do not exclude from the Foundation's jurisdiction social science research, the specific enumeration of specific fields which are all natural sciences may result in the exclusion of social science by implication. The Department urges that consideration be given to either in |