Program Direction, Administration and Institutional Support Services This item includes the activities of (1) the Board of Governors,

the International Advisory Council, the President and Vice President in the overall direction, management, planning, evaluation and coordination of Center Programs; (2) the Office of Administration which provides personnel, fiscal, data processing, contracts and grants review and logistical services to the President and the Institutes; and (3) the Office of Publications and Public Affairs.

$193,041

The budget request for this item is $2,310,000 more than last year's appropriation. The increase of $193,041 provides $28,949 for within-grade employee salary increments and associated fringe benefit costs; $72,981 for the increased costs of consultant services which includes $50,000 for a mandatory year-end audit of FY 1976; $41,883 for the increased costs of rentals, communications and utilities; $14,993 for increases in the costs of equipment; and a net increase of $34,235 in all other categories which reflect price increases.

Mr. Chairman, the East-West Center and its problem-oriented Institutes are designed to bring Asian and American students, specialists and experts together to train, study, exchange ideas and conduct research in their respective fields of endeavor. Thus persons from different countries, age levels, vocations and interests are given an opportunity to improve and share not only their knowledge and skills applied to important world problems, but also their understanding of each other. The relationships and experiences gained by participants at the East-West Center endure even after they leave the Center.

By his budget request, President Ford has demonstrated confidence in and support for the East-West Center. I am very proud of the

contributions that the Center is making not only toward enhancing educational progress, but in promoting better understanding among peoples of diverse backgrounds in the crucial Asia-Pacific area.

Since the Center's establishment, this Subcommittee has been

a strong supporter of its programs and goals. I hope this strong endorsement of the East-West Center will continue to grow just as the Center is doing its best to carry out the mandate of the Congress to promote understanding and better relations among the peoples of the United States, Asia and the Pacific Islands through cultural, educational and technical interchange.

I strongly urge appropriation of the full amount -- $10,000,000 of the President's budget request for the East-West Center for fiscal year

1977.

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

Senator PASTORE. Mr. Thomas, we have some additional questions we would like you to address for the record.

The fiscal year 1977 budget shows an increase of $56,147,000 for this appropriation Contributions to International Organizations; why is this increase so large?

Mr. THOMAS. The increase of $56,147,000 from fiscal year 1976 to fiscal year 1977 is misleading due to intervention of the transition quarter. Because some international organizations have no requirements for the transition quarter and because the transition quarter appropriation provides full year costs for the remaining organizations, the net increase for this appropriation in fiscal year 1977 cannot be determined by a comparison with either the fiscal year 1976 or transition quarter appropriations.

Comparison must be made with the fiscal year 1976 request for those organizations where there is no transition quarter requirement and with the transition quarter request for those organizations where there is a transition quarter requirement. Using this organization-byorganization comparison, we estimate that the real increase for fiscal year 1977 is $8.7 million.

Senator PASTORE. Is this $8.7 million increase mandatory?

Mr. THOMAS. Yes. It is predominantly the result of severe inflationary pressures here and in Europe where many of these organizations are headquartered. Also, U.S. assessments will increase to further programs of particular interest to the United States in the World Health Organization, the Pan American Health Organization, and the International Atomic Energy Agency.

UNESCO

Senator PASTORE. Are there funds requested in this budget for UNESCO?

Mr. THOMAS. We are requesting $3,545,453 in the budget amendment to allow the United States to retain its vote in the next general conference. We have not requested funds to cover the total U.S. arrearage to UNESCO.

Senator PASTORE. Why have you not requested the total amount?

Mr. THOMAS. In our judgment, there has not been sufficient action by UNESCO to reverse the initiatives taken by the Organization which were offensive to us and to the Congress and which led to the adoption of Public Law 93-559. Therefore, we are not in a position to recommend the Presidential certification required by Public Law 93-559 for the United States to become fully active member again.

However, we sense a changing atmosphere in UNESCO, and we believe the best way to influence this atmosphere is to work within the Organization as an active, fully vested member with voting rights. To achieve these voting rights in calendar year 1976, we would have to pay approximately $3.6 million to UNESCO.

We would then be less than 2 years in arrears and meet the UNESCO charter requirements. In order to recover our vote for UNESCO's 19th General Conference, we would have to do this before October.

INTERNATIONAL LABOR ORGANIZATION

Senator PASTORE. What amount is in the budget for the International Labor Organization?

Mr. THOMAS. We have requested $20,260,250. Although we filed the required 2-year notice of withdrawal last November, we must still pay our assessed dues to the Organization as required by the ILO constitution.

During this 2-year period, we will make every effort to persuade the governments of other ILO members to join us in ending the problems which initiated our intention to withdraw.

UNITED NATIONS BUDGET

Senator PASTORE. How much of an increase is included for the United Nations budget?

Mr. THOMAS. There is no increase provided for in the fiscal year 1977 budget. There is an increase of $9,850,000 from fiscal year 1976 to fiscal year 1977 for the U.S. assessment to the United Nations which is misleading because of the intervention of the transition quarter. The real basis of comparison should be the transition quarter appropriation which represents the entire calendar year 1976 U.S. assessment and our contribution to the first half of the U.N. 1976-77 biennium expenditure budget.

Using the transition quarter as a basis and deducting our share of a U.N. supplemental added to our transition quarter estimate for the U.N. 1974-75 biennium, the request for our fiscal year 1977 assessment to the United Nations represents no increase.

MOSCOW COMPLEX

Senator PASTORE. Is this Moscow Complex project authorized? Mr. THOMAS. The design of the project was authorized in 1968. Authorization of $30 million for the first part of the construction phase is currently pending in Congress.

Senator PASTORE. How much will the total project cost?

Mr. THOMAS. It will cost from $75 to $100 million.

Senator PASTORE. How long will it take to complete the project?

Mr. THOMAS. It is anticipated that construction will take from 3

to 4 years.

Senator PASTORE. What facilities will be in the complex?

Mr. THOMAS. The complex will comprise about 635,000 gross square feet. Included will be an office building, housing for 135 families, a cafeteria, a school, and recreational facilities.

Senator PASTORE. When will construction begin?

Mr. THOMAS. Construction will begin in mid to late 1977.

Senator PASTORE. It is known that the Soviet Union is building a complex in Washington. Is there some agreement with respect to parallel progress on these two projects?

Mr. THOMAS. The United States and the Soviet Union have agreed that there will be parallel progress on these two projects.

FOREIGN AFFAIRS ADMINISTRATIVE SUPPORT SYSTEM

Senator PASTORE. What is the Foreign Affairs Administrative Support system highlighted in the Department's fiscal year 1977 budget request?

Mr. THOMAS. The Foreign Affairs Administrative Support system (FAAS) is an interagency financing transfer which will provide the Department with the resources to fund the cost of essential administrative support services.

At the present time, these costs are shared with other agencies. The system will improve budgeting and resource control, ease the financing of administrative support costs overseas, and yield an increase in managerial effectiveness. Because it is an interagency financing transfer, there will be no increase in funds or personnel required by the U.S. Government.

Senator PASTORE. How many agencies and appropriations are affected by this FAAS transfer?

Mr. THOMAS. The FAAS system will affect 24 agencies, 57 appropriations, and 118 posts overseas.

Senator PASTORE. Do the other agencies agree with this transfer?

Mr. THOMAS. The other agencies are emphatic in their agreement to this transfer and their support of the Foreign Affairs Administrative Support system. The system is also supported by the General Accounting Office.

Senator PASTORE. How much of the Department's fiscal year 1977 budget request is for this Foreign Affairs Administrative Support system?

Mr. THOMAS. We are requesting a total of $69,867,000 and 2,553 positions for this interagency financing transfer in fiscal year 1977 to establish the FAAS system.

Senator PASTORE. Are you positive all these funds and personnel transferred to your Department will not result in any increased cost to the taxpayer?

Mr. THOMAS. Yes, sir, we are.

Senator PASTORE. How is it possible to determine that other agencies are reducing their budgets in fiscal year 1977 by the same amount that is transferred to State?

Mr. THOMAS. We have agreed with each of the serviced agencies involved to reduce their appropriations by an equivalent amount. In addition, the President's fiscal year 1977 budget appendix specifically reduces from each affected agency's budget request the portions proposed for transfer to the Department.

INCREASE FOR FAAS

Senator PASTORE. What are the figures in fiscal year 1976 for comparability purposes, and what is the increase over fiscal year 1976?

Mr. THOMAS. The figures for fiscal year 1976 are $57.3 million transferred from other agencies and $1.1 million from certain State Department accounts; the number of positions are the same. For fiscal year 1977, the total of $69.9 million includes an increase of $11.5 million and no positions over the base level of fiscal year 1976.

Senator PASTORE. What is this large $11.5 million increase for?