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The Commission's original request for fiscal year 1977, which

requested fewer positions than are authorized for FY 76, did call for

an increase from the fiscal year 1976 dollar total.

However, 93 percent

of this increase results from built-in cost increases. Only $75,000 of

the budget increase was allowed for growth in program-support costs, and part of this cost growth results from inflationary forces rather than from a change in planned operating levels.

The Commissioners are deeply appreciative of the cooperation extended

by the Congress and your committee in providing funds for the Commission in recent years. This cooperation has been an essential element in the Commission's efforts to meet the expanded responsibilities placed upon

the Commission, culminating in the special demands included in the Trade

Act of 1974.

The justification we originally submitted to your committee provides,

We believe, a full explanation of the Commission's activities and needs.

We want to reemphasize to you that the demands for Commission services

are, in fact, large and growing.

In particular, great efforts will be

required in the following areas:

public investigations under the Trade

Act of 1974; services to support u.s. representatives in the current

round of international trade negotiations; the development of compatible

statistical systems; and participation in the development of a basic

commodity code for use in international trade.

In this period of intense national interest in matters of interna

tional economic policies and particularly of international trade, the

Commission must provide timely and professional assistance to its primary

customers, the Congress and the President, but it must also improve its

services to its ultimate customer, the American people. You will note

that the only two new employees requested in this budget will supply new

expertise and emphasis on consumer interests affected by international

trade matters. The Commission, reflecting its new name and the congres

sional intentions expressed in the Trade Act of 1974, will be attentive

to export issues and what is happening with respect to the trade of other

countries, in addition to its traditional concern with matters pertaining

to imports.

We believe that the Commission's present efforts, such as

its recent advice to the President on the probable effect of tariff

concessions and the generalized system of preferences, its reports on

East-West trade, its studies of international commodity agreements,

and its series on the competitiveness of the United States and other major

trading countries are earning the Commission added respect throughout

the international trade community.

The Commission intends to concentrate its fiscal year 1977 efforts

not on expansion of its resources, which in large part means its personnel,

but rather on improved utilization.

We believe that through improved

management we shall be able to finance effective fiscal year 1977 opera

tions with the $11,539,000 originally requested. We request Senate

approval of this FY 77 budget total.

I shall, of course, be pleased to supply any amplifying information

which might be required.

RESTORATION REQUESTED

Mr. LEONARD. The U.S. International Trade Commission requests restoration of the $239,000 House reduction of its budget request.

In addition to this cut, the Commission faces unexpected increases in miscellaneous expenses and a requirement for continuation of the annual synthetic organic chemicals reports.

These two items will increase fiscal year 1977 costs by an estimated $ 111,000, an amount the Commission believes it can absorb if the full budget of $11,539,000 is enacted.

To absorb both the House cut and these added expenses would require a reduction of our average staff by about 17. With previously planned lapses, this would make vacancies average about 22 of the 426 positions expected to be filled.

The Commission believes that such a vacancy rate would impair its ability to carry out its responsibilities.

For several reasons, the Commission has had an excessive number of vacant positions this year. We are increasing our stress on recruitment. We are now making better progress in our efforts to obtain good employees. We expect to be near our goal of full strength by the start of fiscal year 1977.

The Commission asks enactment of the full amount of its budget request so that it can continue to improve its ability to provide professional advice and assistance to the Nation's makers of trade policy and to the public.

Senator PASTORE. Any questions?
Thank you very much.
Mr. LEONARD. Thank you, sir.

70-425 0.76 44

NONDEPARTMENTAL WITNESSES

STATEMENTS OF:

DONALD A RANEY, PRESIDENT, NATIONAL ASSOCIATION OF

DEVELOPMENT ORGANIZATIONS
JOHN LADD, PAST PRESIDENT, NATIONAL ASSOCIATION OF

DEVELOPMENT ORGANIZATIONS, CURRENTLY EXECUTIVE
DIRECTOR, MOHAWK VALLEY ECONOMIC DEVELOPMENT
DISTRICT

PREPARED STATEMENT

Senator PASTORE. All right. We have a Donald A. Raney, president of the National Association of Development Organizations.

You may proceed, Mr. Raney.
Mr. Raney. Thank you, Senator.

I am Donald Raney from the State of Arkansas. With me is the past president, John Ladd, who will take the first part of it from Nado, N.Y.

Mr. Ladd. Thank you for the privilege of appearing before your committee.

I would like, first of all, to ask you to put this into the record.
Senator PASTORE. Without objection, it is so ordered.
(The statement follows:]

(687)

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