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Mr. STAATS. No. It is not a funded type system. It is more or less just and accounting device through which funds flow and is a more or less short-term-type insurance operation, not one that extends for many years as you have in retirement benefits or, say, for example, as in the civil service retirement fund where we try to fund for obligations that extend 20 or 30, or even 40 years ahead.

Mr. ROBERTS. In your experience has it ever been necessary for the Government to put up money to cover a shortage in this fund at any particular time?

Mr. Staats. No. This fund, of course, as you know, is a fairly new one and my recollection is that the law contemplated there would be a review, I believe, at the end of either 3 or 5 years. So that I would not consider, Mr. Chairman, that the experience we have had to date would necessarily be conclusive as far as the long-term future is concerned, but as of the present time, the charges seem to be reasonable and in line with the cost.

These are carried by contract, as you know, with private carriers.
Mr. ROBERTS. All right. Thank you very much.

Mr. Staats. The $186 million to be obligated for international activities cover a broad range of health, sanitation, and nutrition programs.

This assistance is provided through annual contributions to international organizations such as the World Health Organization, the Pan American Health Organization, and the United Nations Children's Fund. It is provided also through bilateral AID projects which are mostly for control of communicable diseases and for water supply and sewerage systems.

Most of the estimated $136 million of obligations in 1964 for health and health-related programs by the Housing and Home Finance Agency will be for public facility loans to municipalities and other communities for sanitation facilities.

This agency also makes public works planning advances under the Housing Act of 1954 and college housing loans for infirmaries and health facilities.

In addition, under the Public Works Acceleration Act of 1962 grants totaling $316 million will also be made by HHFA in 1963 for health facilities; no such funds are projected for 1964. HHFA will also insure mortgages on nursing home loans representing an estimated 12,100 beds in 1964.

Mr. ROBERTS. Mr. Staats, let us go back to page 7. I have a question there. Do you have any amounts that have been obligated for international health research?

Mr. STAATS. Under the Health Research Act?
Mr. ROBERTS. Yes, sir.
Mr. STAATS. Is that what you have particular reference to?
Mr. ROBERTS. Yes, sir.

Mr. STAATS. I believe we have the information for the State Department and AID programs. The amounts obligated are $2 million in 1962, $1 million in 1963, and $2 million estimated for 1964. It has not been a very large program.

Mr. ROBERTS. Could you also give us the amount which has been spent in counterpart funds!

Mr. STAATS. Under that same act?

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Mr. ROBERTS. Yes, sir, under the category of U.S. funds. I think that is the way it is designated, isn't it, Mr. Borchardt?

Mr. BORCHARDT. Yes, sir.
Mr. STAATS. That is correct.
Mr. ROBERTS. Thank you very much. Mr. Nelsen has a question.

Mr. NELSON. With respect to sanitation facilities under the Housing and Home Finance Agency, would this include sewage disposal facilities, or what does it include?

Mr. STAATS. It includes sewage disposal facilities financed under the Community Facilities Act. However, it does not include the facilities provided for under the Water Pollution Act.

Mr. NELSON. This would be connection

Mr. Staats. These would be in connection with, say, sewage lines for new subdivisions, or for connection of an industrial complex, or a shopping center, or something of that kind.

Mr. NELSON. Thank you.

Mr. Staats. On page 14 of the supplementary statement, Mr. Nelson, there is a description which spells out in a little more detail what is spent under the Housing and Home Finance category.

Mr. Nelson. Thank you.

Mr. ROBERTS. One other question before we leave the international health research bill. In this bill, if I remember correctly, there was a question of delegating the President's powers to the Surgeon General. Has that power been delegated so far as you know?

Mr. Staats. It has not.
Mr. ROBERTS. It has not?

Mr. STAATS. It has not, and the reason for that, Mr. Chairman, has been the President's belief, both in the Eisenhower administration and in this administration, that the number of such grants is probably not going to be large.

There is always a problem of coordination here with the Department of State in terms of our timing and the approach to a particular situation.

Therefore, since it has been felt that it is feasible to continue to vest these powers in the President, the President has personally approved the actions to date under that act.

Mr. ROBERTS. Thank you, sir.

Mr. STAATS. The AEC medical and health-related programs of $88 million in 1964 are almost entirely in the fields of basic and applied research on the effects and the uses of radiation.

Approximately 60 percent of these funds are for research in the biological sciences, covering such areas as the effects of radiation on plants and animals, research on molecular and cellular structure, and the study of radiation genetics.

Another 25 percent of AEC's outlays are for research in the medical sciences, including radiological environmental health and various other fields.

Mr. ROBERTS. I would like to ask one question there if I may. Are we now through the AEC making some grants to colleges and universities for construction of atomic reactors on campuses?

Mr. Staats. Such grants are not currently being made to colleges and universities. Of course, you are familiar with the Brookhaven complex in New York where, I believe, there are some nine universities involved.

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A somewhat similar arrangement has been developed at the Argonne Laboratories in the Chicago area. This has been done in at least those two cases.

Mr. ROBERTS. The reason I asked this question is the people who are charged with this responsibility at Auburn University, in my State, recently contacted me as to the possibility of some funds.

Matching funds is the way it was explained to me. I remember a few years ago that the Legislature of Alabama had this question before it, as to whether or not Auburn would participate in some type of research program in the atomic energy field. If you could get me some information on that situation, I would certainly be grateful to you.

Mr. STAATS. There are many lump-sum contracts similar to NSF grants made by AEC in basic research in physics and the nuclear sciences, as well as reimbursable cost contracts for larger programs-say over $250,000. These latter contracts may provide for facilities in these areas. My reference a minute ago had to do with the development of nuclear-oriented laboratories such as Brookhaven and Argome, but the AEC does make basio research contracts and they also provide facilities in the areas which are of interest to the AEC.

This constitutes, obviously, a problem of coordination for use in the Budget Bureau because there is a need to be sure that those contracts are consistent with and do not duplicate grants made by the Science Foundation, which has very broad authority for the same types of grants. We have tried to divide the fields between the two agencies for budget purposes, leaving to AEC those areas which are most directly related to its mission.

Mr. ROBERTS. I believe I was informed that this particular grant would have to have the approval of the National Science Foundation.

Thank you, sir.

Mr. STAATS. National Aeronautics and Space Administration, a new agency in the field, will in 1964 obligate an estimated $76 million for a broad range of medical and health-related projects as part of its

These include aerospace medicine, human factors research, biosciences, biological satellite flight program, research grants to universities, and construction of NASA facilities.

The Department of Agriculture will obligate an estimated $105 million in 1964 for research and preventive community services which have varying degrees of medical and health-related significance.

Most of these activities have the purpose of insuring a wholesome, nutritious, and adequate food supply for our Nation.

The Agricultural Research Service, for example, is concerned with finding out how infectious diseases and harmful parasites of livestock and poultry are transmitted to men, how to control insects and diseases, and how to avoid pesticide residue problems, as well as with human nutrition research.

The poultry inspection and the meat inspection programs of the Department represent other important health-related activities.

Several other agencies covered in our survey will devote substantial amounts to health in fiscal 1964. The National Science Foundation will obligate $36 million for basic research and training in the life sciences, the Justice Department $17 million for construction of hospital facilities and health services for Federal prisoners, the Small

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Mr. Rogers of Florida. Thank you, Mr. Chairman.

Speaking of the new drug law now, I noticed in the paper this last week that a statement was attributed to Dr. Frances Kelsey which dealt with difficulty evidently in finding space and personnel to handle the data flowing into the FDA under the new law and the new regulations and I think the columnist insinuated that drug companies were purposely inundating the agency with this mountainous paperwork trying to keep Dr. Kelsey from performing her functions.

Of course, under the new law and the regulations, manufacturers must supply additional information on the testing of new drugs that was not required before.

Certainly, in making these statements Dr. Kelsey is not implying that they should not furnish this information, I presume? Mr. Jones. You are quite

correct, Mr. Rogers. Mr. ROGERS of Florida. What steps have been taken now to provide the necessary space and personnel to handle this information that is required by the law?

Mr. Jones. Dr. Kelsey was appointed Chief of Investigational Drug Branch, Division of New Drugs, Bureau of Medicine.

The recruiting of physicians for the Bureau of Medicine, I am informed, has been successful beyond that which we had anticipated.

They now have commitments of 60 professional people to fill 57 authorized positions, so that they are, if these people fulfill the commitments they have made, being recruited successfully. Mr. ROGERS of Florida.' What is the time limit on that? Mr. Jones. This is over the next 6 weeksMr. ROGERS of Florida. Within 6 weeks? Mr. Jones. They will be coming in. The amount of space available to the Bureau of Medicine is totally inadequate. There has been a 15percent increase in the personnel authorized for the Food and Drug Administration for each of the last few years,

They have gone from 1,000 to something over 3,000 employees in 5 years. I can give you the exact figure. I think it is in the testimony that Mr. Larrick provided for you earlier, which I will not repeat.

Federal office building 8, a building adjacent to the headquarters of Health, Education, and Welfare, is under construction for the Food and Drug Administration.

It will be inadequate when completed. It is not built to the size asked for at the time it was planned, but it is even less adequate now.

This building will not be available until October 1963 for some of the offices. It will be another 2 years, so we are told, before the laboratories in this building are fully available.

There has been in the last 2 weeks a development in which Dr. Kelsey's branch and the Bureau of Medicine, in toto, have been provided an additional 11,500 square feet of space in the building they now occupy, and which is adjacent to the space they now have. The Secretary last week made a personal inspection of this space. le has asked specifically that certain things be done to improve it.

The Administrator of the General Services Administration is fully ooperative and trying to provide space. Office space is at a premium a Washington and it is very difficult to get, but Dr. Kelsey's situation as been greatly relieved by the additional space made available within le last 2 weeks. On the point of whether or not the drug industry is


erations, a program of plant renovation and modernization now underway has as one of its objectives the reduction of atmospheric emission to negligible amounts.

Expenditures in recent years for air pollution control activities related to steam-electric generating plants are as follows: Fiscal year: 1962.

$98,000 1963 estimated.

145,000 1964 estimated.

176,000 Outlays for air pollution control features built in or added to steam stations are not included in these amounts.

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HEALTH-RELATED ACTIVITIES-EXPORT-IMPORT BANK The Export-Import Bank has financed the export of American hospital equip ment by making loans at varying rates of interest up to 594 percent to recipient nations and to U.S. exporters. Since the inception of the Bank in 1934, througb April 30, 1963, equipment valued at $5,366,300 has been financed in Argentina, Chile, Costa Rica, El Salvador, Greece, Peru, Colombia and Nicaragua.

The Bank has also financed water supply and sewerage projects amounting to $60,221,350 through April 30, 1963, in Uruguay, Venezuela, Ecuador, Syria, Iran, Liberia, Colombia, Costa Rica, Peru, Trinidad, Mexico, and Paraguay.

Mr. NELSEN. Mr. Chairman, while you are on the air pollution subject, it seems to me I saw a story in one of the papers about activities in that area in the Department of the Interior.

To your knowledge, if there is some activity going on there would you check it out for us, because we are interested in air pollution.

We have bills before our committee that deal with air pollution and we are quite anxious to find out what has been done, and where, and what the results have been.

Mr. STAATS. The only item that I could think of in Interior would be in connection with the Bureau of Mines.

Mr. NELSEN. Yes; that is what I think it was.

Mr. Staats. Conditions affecting miner's health in the mines, the problem of silicosis and of lack of oxygen, and other conditions involved in mining operations. I am not aware of anything else, but we can doublecheck that point. (The information mentioned follows:)

AIR POLLUTION ACTIVITIES-DEPARTMENT OF THE INTERIOR The Bureau of Mines participates in the Federal air pollution effort through a research program aimed at developing means for the economic source control of pollutants originating from the production and use of minerals, particularly the mineral fuels. The Bureau is investigating the composition of inotor-vehicle exhaust, reductions into which it enters in the open atmosphere, and means for minimizing discharge of those exhaust components most responsible for troublesome air pollution. Other investigations include development of economic means for removing sulfur oxides from powerplant stack gases and for controlling pollution from burning coal-refuse piles, and selected mineral-industry process improvements to reduce discharge of pollutants. A great deal of the air pollution control research conducted by the Bureau of Mines is for other agencies, chiefly the Public Health Service. In 1963, for example, of the total program of approximately $600,000 over 80 percent of the funds were transferred to the Bureau of Mines from other agencies.

Mr. ROBERTS. Thank you.

Mr. Staats. Mr. Chairman, we have also in our analysis developed a discussion around the types of health programs carried on by Federal agencies.

Up to this point we have been talking about what the principal agencies are doing, but we thought it also might be useful to you to

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