Embassy residence

Present situation.-At the present time the Department is paying $15,000 a year rental for an Embassy residence. This lease is necessary because of the fact that the present Embassy residence is an ancient, mud-constructed building with a crumbling brick facade and subject to being destroyed by the slightest earth tremor or violent windstorm, which are common in the area. The interior walls show structural stresses and strain and in some cases, the walls appear ready to fall. In addition, there is no central heating in the structure and oil stoves are in conspicuous places in each room. The structure has been declared unsafe for human habitation and the basement area is now being used for dead storage.

Building program.-The U.S. Government owns an excellent site on which an adequate Embassy residence could be constructed to meet the rigid representational requirements at this important post. This is a case where the rental payments, though high, bear no relation to the importance of having adequate representational facilities for the Ambassador and at least on a level with the embassies of other key nations.

Deputy chief of mission residence

Present situation.-The present residence is like the Embassy residence, an ancient, mud-constructed building with crumbling brick facade and subject to destruction by earth tremor or violent windstorm.

Building program.-The U.S. Government owns an excellent site on which an adequate deputy chief of mission residence could be constructed. The deputy chief of mission requires a representational residence because of the important part that representational activities play at this post.

NOTE 31

Turkey, Istanbul: Office building, 1961-.

$730,000

Present situation. The present office buildings are old, poorly designed, require considerable maintenance, and are situated in a tenement section of the city. Negotiations are being conducted with the Government of Turkey to acquire a 10,000 square meter tract in the best portion of the city in exchange for these old buildings and $200,000.

Building program.-The Department proposes to construct a modern secure office building.

NOTE 32

Ceylon, Colombo: Staff housing and Embassy residence, 1962_

Staff housing

$210,000

Present situation.-At the present time, the staff, with the exception of three persons, are required to live in substandard quarters in order to avoid exceeding their quarters allowance. Rented quarters, when available, are not air-conditioned, poorly serviced, and poorly maintained, making living conditions difficult for junior personnel. As a start, to correct this condition, it is proposed that four units of staff housing construction be undertaken.

Building program.-The Department owns a site which will accommodate the four units of staff housing, thereby eliminating the expense of quarters allowance and discontinuance of subpar rental quarters by junior personnel. Embassy residence

Present situation. The present Embassy residence is an old structure purchased many years ago. The structure has required considerable maintenance and repair and is expensive to operate. The type of construction precludes the elimination of damp walls and stained appearances resulting from climatic conditions. Expensive correction and renovation would be involved to make this into an adequate, modern, and functional Embassy residence. In view of the increasing importance of Ceylon, as well as the need for a representative residence, it is planned to erect a new residence for the Ambassador.

Building program.—It is planned to dispose of the existing structure and erect a suitable Embassy residence.

NOTE 33

Lebanon, Beirut: Office building, 1962--.

-

$800,000

Present situation.-The office building owned by the Government is inadequate and additional space is under lease. The present owned structure is a 60-year-old converted residence which has been weakened structurally by earthquakes. The plumbing and sanitary facilities are outmoded and insufficient. The electrical installations are obsolete to the point of presenting a constant safety hazard. Heating is provided by several kerosene stoves. Due to the age of the building, the nature of the structure, and the inefficient and crowded condition, the building is expensive to maintain and efficient operations are impeded. Since the present building is unsound, it has been determined that extensive remodeling or the erection of additions to the present structure would entail unwise expenditure. The Embassy is now renting quarters at an annual cost in excess of $38,000, including operating cost.

The present site on which the office building is located is suitable for the construction of a new office building. The site is conveniently located and is sufficiently large to permit the construction of a new building while the old one is still in use.

Building program.-The Department proposes to construct a new office building costing approximately $800,000.

NOTE 34

Pakistan, Lahore: Office building, 1962

$250,000

Present situation. The present office quarters, including USIS, are leased at an annual rental of approximately $14,000. The buildings are structures which have been converted from other uses, and they are not satisfactory for use as offices.

Building program.—It is proposed to construct a modern, secure office building.

NOTE 35

Pakistan, Dacca: Consulate general office building, 1962-‒‒‒‒‒‒

$250,000

Present situation. The office and housing facilities including USIA are rented at an annual cost of $27,405. The present offices are poorly located, poorly laid out for office work, undignified, and difficult of access. Utilities are supplied in haphazard fashion. For example, the water pressure is too low to force water into the roof supply tanks with consequent disuse of upper floor sanitary facilities. The interior of the building is of cement finish including the floors which are continually damp and moist during the rainy season. Electricity was originally on d.c. current precluding operation of office business machines and other equipment. There is 10 feet of unpaved area in front of the building. The compound itself is unpaved resulting in a quagmire during the monsoon months. Building program.-The Department proposes to acquire a site that will accommodate a modern secure office building.

NOTE 36

India, Bombay: Staff housing, 1962___.

$80,000

Present situation.-At this hardship post, there are five Government leases for residential quarters costing in excess of $10,000 per annum. Single personnel with comparatively low quarters allowances are forced to rent cheap quarters which have been reported from the post as being inadequate and poorly maintained.

Building program.-The Department intends to construct eight units of staff housing to relieve the pressing housing shortage at this post.

NOTE 37

India, Madras: Staff housing, 1962---

$80,000

Present situation.-There are six residences under lease at Madras at the present time, with total monthly rentals exceeding $7,000. The type of property obtainable at the post is not up to American standards. The services provided

by the lessors are inadequate, difficulties with plumbing and sanitation and communication facilities exist. The climatic conditions at this post are especially difficult for junior personnel living in uncomfortable quarters.

Building program.-The Department has acquired a 5-acre residential site upon which is planned the erection, as soon as possible, of four units of staff housing. Tentative plans also include a house for the senior officer at a later date. It is felt at this time that the immediate pressing need is for staff quarters.

NOTE 38

Egypt, Cairo: Embassy residence, 1962

$250,000

Present situation.-The official residence is rented at a cost of $18,000 a year. The location is not satisfactory, nor is the floor plan suitable for the purpose of representation. The Department has been offered a site appropriate for an Embassy residence, well located and adjacent to the present office compound. Negotiations are in progress with the owner of the site.

Building program.-The Department is acquiring the site adjacent to the Gvernment-owned compound and plans to construct an adequate representative Embassy residence.

ESTIMATED RENTAL SAVINGS

The physical properties acquired under this program cost about $160 million. Construction or acquisition of these Government-owned buildings and housing abroad results in a reduction of dollar appropriations for rent and quarters allowance. The estimated savings of recurrent rent and quarters allowances that would have to be paid if the Government did not own these properties used by the State Department and other agencies abroad are as follows: Functional space (offices, warehouse, garages, service buildings,

etc.) Residential units

$4,686, 500 3, 515, 800

Projected savings___

Estimated savings_-_.

8, 202, 300 621,000

8,823, 300

The attached table shows there would be an additional estimated savings of approximately $621,000 a year as a result of the construction or acquisition of the $22,200,000 worth of office and residential properties projected throughout the world. Thus, it may be conservatively estimated that the annual rental savings would approximate $8,800,000 as a result of past property acquisitions and the immediately projected acquisitions.

Building program priorities, fiscal years 1961 and 1962-Continued

NOTE.-All above rents paid in foreign currencies, since the Department enters into dollar rental contracts only as a last resort. The above rental payments are not foreign currency transactions within the general term applicable to this program, except for the contract existing in Mexico City. Thus, it may be said that estimated rental savings for the projected program would be:

Local currency.

U.S. dollars...--.

66,255 554, 754

Those projects where no saving is reflected represent either a new post or replacement of existing Government-owned properties at an old post.

EXPLANATORY STATEMENT ON RENTAL SAVINGS SCHEDULE

NOTE.-Estimated rental savings are attributable only to those projects which are indicated as priorities for 1961 and 1962. Rental savings for other projects are included in the overall estimates of $8,202,300.

Note 1. Mogadiscio.-The difference between the figure of $26,461 shown in the line-item distribution and the figure of $20,461 shown in the rental savings estimate is attributed to the fact that the rental savings estimate does not include the rent for the principal officer's residence.

Note 2. Yaoundé.-The difference between the figure of $7,500 shown in the line-item distribution and the figure of $4,000 shown in the rental savings is attributed to the fact that the $7,500 figure includes rental for the staff residence space included in the lease, whereas the $4,000 figure shown in the rental savings is attributed to only that portion utilized as office space.

Note 5. Luanda.-The rental savings statement shows a savings of $2,937 for office space and $2,730 for the consulate residence for a total annual rental savings of $5,667. The line-item distribution reflects a figure of $7,000. The difference is attributed to the fact that the $7,000 figure includes rental for staff apartments, which rental is not included in the rental savings figure.

Note 7. Mexico City.-The line-item distribution reports a total rental for the chancery of $67,646 and an estimated rental of $10,000 for other agencies' space. The rental savings figure of $66,255 does not include ICA leases totaling $4,674 annually and one USIA lease costing $7,606 annually. If these latter lease costs had been included in the rental savings paper, the figure shown would then have been $78,355.

Normally rental savings for ICA and USIA are not assumed except where those entire functions are to be included in the plans for a new building. The planned new chancery at Mexico City is unique in that all U.S. Government civilian activities in Mexico City, including the Benjamin Franklin Library, will be housed in the new office building.

Note 9. Ciudad Trujillo.—The line distribution shows a figure of $8,430 which figure includes an ICA lease costing $3,780 annually. The rental savings does not include the ICA lease.

Note 10. Montevideo.-The only valid estimate for rental savings is the $3,369 now being paid for chancery space. No decisions have been made as to what will be included in the new office building. The above figure, in itself, is completely unrealistic since it is based upon the new peso rate for Uruguay, and covers only a small portion of the total space occupied by all U.S. Government activities in Montevideo.

Note 23. Saigon.-A further review of plans for the new office building shows that it will be possible to include in this building additional U.S. Government activities in Saigon. If this is accomplished on the basis of present plans, it would be possible to retire leases now in effect costing $78,021.

Note 27. Tokyo.-Until such time as it is possible to determine by engineering and architectural study the exact amount of new space that can be added to the chancery building in Tokyo, it is unrealistic to assume that any savings would accrue other than one lease costing $3,966. It may be stated that U.S. Government civilian activities now operating in Tokyo occupy leased space costing $102,523. Unless new space could be constructed on the present chancery site that would retire between $60,000 and $75,000 of the space now leased, it is doubtful that any proposal for the construction of additional space on the present chancery site could be justified on economic grounds.

Note 30. Teheran.-The present plans, very well advanced, call for the construction of a new Embassy residence, a new deputy chief of mission house, and an extension to the existing chancery. When this is accomplished, it will be possible to terminate leases as follows:

Embassy residence___.

Deputy chief of mission residence.___
Office Space-----

Total_-_-_

$15,000 7, 153 15, 365

37, 418

Unfortunately, the compound is not of sufficient size to accommodate all U.S. Government activities now operating in Teheran. In addition, the estimated saving in note 30 of $90,000 for services, such as water and electricity, cannot be further refined until the complete installation of enlarged facilities is determined.

Note. 33. Beirut.-The figure of $38,000 shown in note 33 is the rental attributable only to the Embassy. The rental savings schedule figure of $115,597 is the total rental for all agencies housed under one lease which would be replaced by the contemplated office building. Such a proposal is only tentative since the construction of a building this size on the present Government-owned site would entail razing the existing Embassy residence.

Note 35. Dacca.-The figures shown in the rental savings schedule is attributable to office space only and does not include any lease costs for housing. Note 38. Cairo.-The difference between the figure of $18,000 shown in the line distribution and the figure of $14,640 shown in the rental savings is attributable to the fact that the $18,000 figure was based on an exchange rate of $3 to the Egyptian pound whereas the rental savings figure is based upon an exchange of $2.44 to the Egyptian pound.