to report that the Peace Corps will meet the criticism of the General Accounting Office as set forth in the following statement furnished for the record:

PEACE CORPS STATEMENT ON CASH-IN-LIEU POLICY

Although the reasons, as explained in Mr. Vaughn's letter of September 3, 1968, to Mr. Stovall of the General Accounting Office (copy attached)* for the adoption and retention of the cash-in-lieu policy are persuasive, the Peace Corps has concluded that the countervailing considerations cited by the Comptroller General are, at this time, paramount. Therefore, all new volunteer applicants will be advised prior to their enrollment as volunteers that the cash-in-lieu-of-GTR privilege will not be available if, at the times of the termination of their Peace Corps service, they are stationed in a country which has been designated by the Treasury Department as an "excess" or "near-excess" currency country. This new policy should meet the thrust of the objections raised by the Comptroller General.

Those volunteers presently in service were advised of the cash-in-lieu privilege at the time of their enrollment and have, to some extent, relied upon it. It is reasonable to assume that volunteers plan their return travel about 6 months in advance of their termination. These travel plans include, in many cases, surface travel in third countries which will require dollars. Accordingly, we plan to apply the former policy to all volunteers terminating prior to January 1, 1970. Volunteers presently serving in "excess or near-excess currency countries," but terminating after December 31, 1969, will be given GTR's payable in excess currency.

Research. The committee continues to be somewhat concerned about the Peace Corps' research activities and stresses again its desire that this activity be confined to the subjects directly related to the Peace Corps. While the committee recognizes that the $500,000 ceiling on research placed on fiscal year 1967 funds no longer applies, it expects the Peace Corps to keep its obligations for this category below that amount, as it has done voluntarily since that time. Security investigations.-For the second year in a row the high cost of security investigations came under committee scrutiny. At $450 per trainee the estimated cost of this item to the Peace Corps for fiscal year 1970 will be close to $4 million. The Peace Corps Director has assured the committee that an overdue study of this expense will be undertaken. It expects to examine this question again next year.

COMMITTEE ACTION AND RECOMMENDATIONS

The amended administration request was introduced as S. 2041 on May 1, 1969. Public hearings were held on June 3 and 25, 1969, at which the principal witness was Joseph H. Blatchford, the Director of the Peace Corps. The committee considered the bill in executive session on July 2, 29, and August 7. On September 8, the House passed H.R.

*Omitted.

11039 by a vote of 281 to 52 and on September 10 the committee ordered H.R. 11039 favorably reported with amendments.

As proposed to be amended by the committee, the authorities contained in H.R. 11039 will enable the Peace Corps to continue its programs on a scale commensurate with U.S. capabilities and priorities, as well as to explore on a pilot basis other avenues by which to increase the effectiveness of its role abroad. The committee urges the Senate to pass H.R. 11039 subject to the recommended amendments.

Changes in Existing Law

In compliance with subsection 4 of rule XXIX of the Standing Rules of the Senate, changes in existing law made by the bill, as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed is shown in roman):

The Peace Corps Act, as Amended

AN ACT To provide for a Peace Corps to help the peoples of interested countries and areas in meeting their needs for skilled manpower.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I—THE PEACE CORPS

SHORT TITLE

SECTION 1. This Act may be cited as the "Peace Corps Act".

DECLARATION OF PURPOSE

SEC. 2. The Congress of the United States declares that it is the policy of the United States and the purpose of this Act to promote world peace and friendship through a Peace Corps, which shall make available to interested countries and areas men and women of the United States qualified for service abroad and willing to serve, under conditions of hardship if necessary, to help the peoples of such countries and areas in meeting their needs for trained manpower, and to help promote a better understanding of the American people on the part of the peoples served and a better understanding of other peoples on the part of the American people.

AUTHORIZATION

SEC. 3. (a) The President is authorized to carry out programs in furtherance of the purposes of this Act, on such terms and conditions as he may determine.

(b) There is hereby authorized to be appropriated to the President for the fiscal year [1969] 1970 not to exceed [$112,800,000 $92,800,000 to carry out the purposes of this Act and the Volunteers to America Program conducted under the Mutual Educational and Cultural Exchange Act of 1961 (22 U.S.C. 2451): Provided, however, That not to exceed $500,000 of funds made available hereunder for fiscal year 1967 shall be obligated under contracts or agreements to carry out research:

Provided further, That no such contracts or agreements shall be executed unless the research in question relates to the basic responsibilities of the Peace Corps. Unobligated balances of funds made available hereunder are hereby authorized to be continued available for the general purposes for which appropriated and may at any time be consolidated with appropriations hereunder.

(h) Volunteers shall be deemed employees of the United States Government for the purposes of the Federal Tort Claims Act and any other Federal tort liability statute, the Federal Voting Assistance Act of 1955 (5 U.S.C. 2171 et seq.), the Act of June 4, 1954, chapter 264, section 4 (5 U.S.C. 73b-5), the Act of December 23, 1944, chapter 716, section 1, as amended (31 U.S.C. 492a), section 5584 of title 5, United States Code (and readjustment allowances paid under this Act shall be considered as pay for the purposes of such section), and section 1 of the Act of June 4, 1920 (41 Stat. 750), as amended (22 U.S.C. 214).

TITLE III-ENCOURAGEMENT OF VOLUNTARY
SERVICE PROGRAMS

SEC. 301. (a) The Congress declares that it is the policy of the United States and a further purpose of this Act (1) to encourage countries and areas to establish programs under which their citizens and nationals would volunteer to serve in order to help meet the needs of less developed countries or areas for trained manpower [, and]; (2) to encourage less developed countries or areas to establish programs under which their citizens and nationals would volunteer to serve in order to meet their needs for trained manpower[.]; and (3) to encourage the development of, and participation in, any international program which seeks to provide volunteers to serve in less developed countries or areas, training, or other assistance in order to help such countries or areas to meet their needs for trained manpower.

[(b) Not more than $300,000 may be used to carry out the purposes of this title in fiscal year 1964. Activities carried out by the President in furtherance of the purposes of this title shall be limited to the furnishing of knowledge and skills relating to the selection, training, and programing of volunteer manpower. None of the funds available to carry out the purposes of this Act which are used in furtherance of the purposes of this title may be contributed to any international organization or to any foreign government or agency thereof; nor may such funds be used to pay the costs of developing or operating volunteer programs of such organization, government, or agency, or to pay any other costs of such organization, government, or agency.]

(b) (1) Activities carried out by the President in furtherance of the purposes of clauses (1) and (2) of subsection (a) of this section shall be limited to the furnishing of knowledge and skills relating to the selection, training, and programing of volunteer manpower. None of the funds available for use in the furtherance of such purposes may be contributed

to any international organization or to any foreign government or agench thereof; nor may such funds be used to pay the costs of developing or operating volunteer programs of such organization, government, or agency, or to pay any other costs of such organization, government, or agency.

(2) Not more than $300,000 may be used in fiscal year 1970 to carry out the provisions of clause (3) of subsection (a) of this section. Such funds may be contributed to educational institutions, private voluntary organizations, international organizations, and foreign governments or agencies thereof, to pay a fair and proportionate share of the costs of the international programs (of the type described in such clause) of such institutions, organizations, and governments or agencies.

(c) Such activities shall not compromise the national character of the Peace Corps.