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The details of these amendments are set forth below:

Budget appendix page

EXECUTIVE OFFICE OF THE PRESIDENT

SPECIAL ACTION OFFICE FOR DRUG ABUSE PREVENTION

Heading

64 Salaries and expenses..

(Immediately preceding the heading "Special
Representative for Trade Negotiations" insert
the above new heading and the following para-
graph thereunder:)

For necessary expenses of the Special Action Office for
Drug Abuse Prevention, including grants and contracts
for drug abuse prevention and treatment programs,
$3,000,000 to remain available until expended: Provided,
That this appropriation shall be available to reimburse
the appropriation for "Special Projects", for expendi-
tures made for the purposes of this appropriation:
Provided further, That this appropriation shall be
available only upon the enactment into law of authorizing
legislation.

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Funds provided by this amendment will be available to the Special Action Office for Drug Abuse Prevention, contingent upon enactment of authorizing legislation, for the costs of staffing, space and other expenses to be incurred for the establishment and operations of the new Office in fiscal year 1972.

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This budget amendment would provide for research and development on the eradication of narcotic-producing plants as proposed in the Omnibus Drug Control Legislative Message. This research would be directed toward the development of technology for the detection and destruction of illicit growth of such plants without adverse ecological effects. The development of this eradication technology would be carried out in cooperation with research institutions in foreign countries.

DEPARTMENT OF DEFENSE-MILITARY

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These additional funds are proposed to undertake a major expansion of programs for the prevention of drug abuse and for the identification and treatment of drug-dependent persons in the Armed Forces.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE
HEALTH SERVICES AND MENTAL HEALTH ADMINISTRATION

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This budget amendment will provide funds for centers for comprehensive narcotic addict and drug abuser treatment and rehabilitation utilizing a variety of treatment modes, together with an expansion of crisis care and counselling programs for drug abusers. Research will be initiated or expanded on drug effects, abuse, prevention and treatment, and efforts will be made to develop more satisfactory synthetic substitutes for opium derivatives, including codeine, used in the practice of medicine. In addition, drug abuse education efforts will be increased and training centers will be established to meet the pressing manpower needs of expanding drug addiction and abuse prevention treatment and rehabilitation programs.

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This amendment would provide (1) $6,600,000 for intensifying law enforcement efforts through the addition of 300 positions for inspectors, agents, and other support personnel; (2) $2,000,000 for development and implementation of new technology for detection, surveillance, communications and automatic data processing as tools in the enforcement of drug laws; and (3) $1,000,000 for international training and technical assistance activities.

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This proposed amendment would provide for additional permanent staff to facilitate more effective coordination of the enlarged efforts of the Department to cope with increasing smuggling of narcotics and other dangerous drugs and the evasion of income taxes by those involved in illegal drug distribution. The Office of the Secretary would also be able to handle rapidly increasing responsibilities in its role as United States representative to the International Criminal Police Organization (INTERPOL).

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776 Salaries and expenses.

(Delete the first paragraph under
this heading and insert in lieu
thereof the following:)

For necessary expenses of the
Bureau of Customs, including pur-
chase of [one hundred and four-
teen] three hundred and fifty-three
passenger motor vehicles (of which
ninety-four shall be for replace-
ment only), including [one hun-
dred and four] three hundred and
forty-three for police-type use [with-
out regard to the general purchase
price limitation for the current fis-
cal year, but not in excess of $800
per vehicle]; acquisition (purchase
of one), operation, and mainte-
nance of aircraft; [and] hire of
passenger motor vehicles and air-
craft; and awards of compensation
to informers authorized by the Act
of August 13, 1953 (22 U.Š.C. 401);
[$137,000,000 $192,535,000.

This proposed budget amendment would provide funds for 1,000 new positions, additional vehicles, aircraft and vessels, and improved detection and other technical equipment to enable the Bureau of Customs to control more effectively the illegal importation of narcotics, hallucinogens, and other dangerous drugs.

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787 Compliance..

(Delete the first paragraph under
this heading and insert in lieu
thereof the following:) For nec-
essary expenses of the Internal
Revenue Service for determin-
ing and establishing tax lia-
bilities, and for investigation
and enforcement activities,
including purchase (not to ex-
ceed [two hundred and eighty-
two] seven hundred and ninety-
nine, of which five hundred and
ninety-five shall be for replace-
ment only, for police-type use
[without regard to the general
purchase price limitation for
the current fiscal year, but not
in excess of $800 per vehicle])
and hire of passenger motor
vehicles: [and] hire of air-
craft; and services of expert
witnesses at such rates
may be determined by the
Commissioner; [$655,000,000]
$808,511,000.

as

Under this request 541 permanent positions would be funded to enable the Internal Revenue Service to intensify its audit and investigations of middle and upper echelon distributors known or suspected of involvement in trafficking in illegal narcotic and dangerous drugs.

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The funds provided by this proposal, together with funds already requested, would permit activation of an additional twenty-seven Drug Dependence Treatment units. These units and supporting activities will be used to facilitate the treatment and rehabilitation of Vietnam veterans discharged from the Armed Services with severe drug problems.

I have carefully reviewed the proposals for appropriations contained in this document which are consonant with the programs outlined in your Omnibus Drug Control Legislative Message. The need for these requests is urgent and immediate. I therefore recommend that these proposals be transmitted to the Congress.

Respectfully yours,

GEORGE P. SHULTZ.

BUDGET REQUEST

Senator MONTOYA. The budget estimates to be considered by this subcommittee amount to $28,640,000 of which $3 million would be for the Executive Office of the President and the balance of $25,640,000 pertains to Treasury Department agencies.

EXECUTIVE ORDER No. 11599: OFFICE ESTABLISHMENT

STATEMENT OF ARNOLD WEBER, ASSOCATE DIRECTOR OF OFFICE OF MANAGEMENT AND BUDGET

ACCOMPANIED BY CHARLES F. BINGHAM, CHIEF, GOVERNMENT ORGANIZATION BRANCH, OFFICE OF MANAGEMENT AND

BUDGET

SUBCOMMITTEE PROCEDURE

Mr. Arnold Weber, associate Director of the Office of Management and Budget will be heard first in representation of the special action office which we understand has one employee on board at the present time.

I might say if you will permit me, Mr. Weber, that we have two appropriations committee meetings this morning; one executive meeting of this subcommittee, and the other, a meeting of the full Appropriations Committee, dealing with matters of Treasury and other agencies of the Government.

So we will have to rush this hearing. We feel, however, that we need this kind of a hearing in order to be able to justify all or part of the funds to the full committee when we go before it for presentation of the markup.

INTRODUCTION OF ASSOCIATES

Mr. WEBER. We appreciate the timely consideration of the President's request.

I have with me Mr. Charles Bingham who is of OMB staff.

Mr. Chairman, members of the subcommittee, I am very pleased to appear before you this morning to discuss the budget amendment requested by the President to cover necessary salaries and expenses of the special action office for drug abuse prevention.

I wish to thank and congratulate the subcommittee for the speed with which it has scheduled these hearings.

By Executive Order 11599 issued June 17, 1971, the President established the special action office for drug abuse prevention in the Executive Office of the President.

APPOINTMENT OF DR. JEROME H. JAFFE AS SPECIAL CONSULTANT TO THE PRESIDENT AND DIRECTOR

He has appointed Dr. Jerome H. Jaffe as special consultant to the President for narcotics and dangerous drugs, and director of the new office.

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