THURSDAY, APRIL 13, 1967.

GENERAL RESEARCH AND SERVICES, GRANTS FOR CONSTRUCTION OF HEALTH RESEARCH FACILITIES, AND GENERAL RESEARCH SUPPORT GRANTS

WITNESSES

DR. JAMES A. SHANNON, DIRECTOR, NATIONAL INSTITUTES OF HEALTH

DR. THOMAS J. KENNEDY, JR., DIRECTOR, DIVISION OF RESEARCH FACILITIES AND RESOURCES

DR. HEINZ SPECHT, CHIEF, OFFICE OF INTERNATIONAL RESEARCH DR. ARNOLD W. PRATT, DIRECTOR, DIVISION OF COMPUTER RESEARCH AND TECHNOLOGY

POSEY B. HOWELL, JR., EXECUTIVE OFFICER, DIVISION OF COMPUTER RESEARCH AND TECHNOLOGY

RICHARD L. SEGGEL, EXECUTIVE OFFICER, NATIONAL INSTITUTES OF HEALTH

CHARLES MILLER, FINANCIAL MANAGEMENT OFFICER, NATIONAL INSTITUTES OF HEALTH

DR. WILLIAM H. STEWART, SURGEON GENERAL

G. R. CLAGUE, ACTING CHIEF FINANCE OFFICER

JAMES B. CARDWELL, DEPUTY ASSISTANT SECRETARY, BUDGET GENERAL RESEARCH AND SERVICES

1 Includes capital outlay as follows: 1966, $242,000; 1967, $1,292,000; 1968, $1,495,000. Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1965, $3,072,000 (1966 adjustment, -$1,000); 1966, $2,431,000; 1967, $2,431,000; 1968, $2,431,000.

Mr. NATCHER. The committee will come to order. At this time, Dr. Shannon, if you will, please, we would like for you to discuss with the committee matters pertaining to general research and services, grants for construction of health research facilities, and general research support grants. You have with you certain members of your staff that you will refer to from time to time with these items. We will be pleased to hear from you now.

GENERAL STATEMENT

Dr. SHANNON. Thank you very much, sir. Mr. Natcher, may I identify the specific people related to the specific activities? On my left is Dr. Heinz Specht, who is Chief of the Office of International Research. Dr. Arnold Pratt is Director of the Division of Computer Research and Technology right here. Dr. Thomas Kennedy is Director of our Division of Research Facilities and Resources.

AUTHORIZATION AND ORGANIZATION OF GENERAL RESEARCH AND SERVICES

I thought that I might introduce this rather complex series of very important activities. The activities of NIH which we have presented up to this time, while quite diverse, have one thing in common: each activity is conducted under a single legislative authority. The budget breakout for each is a simple reflection of how each authority will be used in program terms.

We now come to a series of very important activities, the routine budget presentation of which tends to confuse rather than clarify the relationship between legislative authority, on the one hand, and the administrative means we have found effective in translating these authorities into program terms, on the other. The activities covered by the "General research and services" appropriation are conducted under the general legislative authority of the Public Health Service to pursue scientific activities in the development of new knowledge important to the resolution of disease problems and the maintenance of health. These activities themselves-some with small dollar support, others with rather large dollar support-have in common one general characteristic: they exist to underpin the activities of NIH that are supported by a series of independent though related categorical appropriations and that are concerned with disease categories. They provide general support to grantee institutions within which the bulk of the research programs we support are conducted. To put it another way, they provide resources to the scientific community at large without regard to categorical disease programs but resources which are essential for the effective development and execution of each of the categorical programs and resources which, as programs, can best be managed by a central organization.

These centrally managed programs are contained either in the general structure of my office, as is the case with the Office of International Research and with engineering development activities, or in independent divisions, as is the case with the Division of Computer Research and Technology and the Division of Research Facilities and Resources.

FUNDS FOR GENERAL RESEARCH AND SERVICES

The authorities were created by Congress, the administrative apparatus was created by NIH. The relationships between the two, Mr. Natcher, are presented in this chart and are summarized in the table that I believe Mr. Moyer has distributed to you. I believe it will clarify the written record of these proceedings if this chart can be reproduced together with an accompanying table, in black and white, in the record. Mr. NATCHER. If there is no objection it will be inserted in the record at this point, Dr. Shannon.

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