In pursuance of that authorization, the Department requested the Congress to provide an appropriation for the 1961 fiscal year of $8.3 million which would be used to make a nonrecurring grant to the University of Hawaii to aid it in establishing the center. The University of Hawaii, however, with the endorsement of the Hawaiian delegation in Congress and of the Governor, submitted an alternate plan. This plan called for continuous, large-scale support by the Federal Government in the amount of $31 million for the first 3 years, or $69,961,041 over a 6-year period.

The Congress preferred the University of Hawaii's proposal and appropriated $10 million which the Secretary of State was directed to make available to the government of Hawaii for the establishment of the center, indicating that "this is the amount required as the first year's cost of a 3-year program involving a total cost of approximately $31 million."

The appropriation act provided that the funds were to enable the Secretary to provide for center activities by making a "grant to any appropriate agency of the State of Hawaii." The Governor of Hawaii designated the University of Hawaii as the appropriate agency to receive the funds for carrying out the provisions of the authorizing legislation. It was understood that the neces sary buildings for the center would be constructed on land belonging to the University of Hawaii, and that they would be used for the training of qualified persons as provided for in the legislation. Those attending the center would include but would not be limited to those whose attendance was made possible by grants, fellowships, and scholarships made pursuant to the legislation. During the 1961 fiscal year, the University of Hawaii committed $9,459,000 in establishing the center. Of this amount, $1,120,440 was expended during the period.

Despite the necessarily late start, substantial progress was made. Ninety-nine grants were made to students and five grants to visiting faculty members for the 1960-61 academic year. Detailed plans for necessary buildings were for mulated, bids were advertised, and contracts were awarded in July 1961.

The university also convened a representative group of educational leaders and other specialists in relevant fields to advise the university as to the shape and direction which the center should take in order to become a nationally significant focal point for educational, cultural, and scientific relations between the United States and the Asian and Pacific areas.

Shortly after my appointment to the Department, I visited Hawaii in order to discuss with officials of the university problems connected with the devel opment of the center and plans for its future progress. I also strongly sup ported an invitation issued by the board of regents of the University of Hawaii to a group of three consultants to provide additional advice and specific recommendations regarding the program, organization, and administration of the center. This committee of consultants was composed of outstanding leaders in American higher education. They were Clark Kerr, president of the University of California, John W. Gardner, president of the Carnegie Corp. of New York, and Herman Wells, president of Indiana University. Glen Taggart. director of international programs, Michigan State University, assisted them. The main questions to which the consultants addressed themselves were those involving the organization and administration of the center, its program, the selection of a permanent director, and the long-term financing of the center's activities.

The recommendations of the consultants (see attached copy of consultants' report), which were approved by the Department and by the unanimous vote of the board of regents of the University of Hawaii, have led to certain modifications in the university's original plan, including a less rapid rate of growth for the center in the interest of developing a long-term, high-quality program. The recent selection of Dr. Alexander Spoehr, distinguished scientist and director of the Bishop Museum in Hawaii, as chancellor of the East-West Center, should insure the successful carrying out of these plans.

In terms of funds needed at this time, these revisions are reflected in the present estimates. This request for an appropriation of $6,850,000-a redue tion of $2,843,000 from the $9,693,000 contemplated in the original long-term plan presented to the subcommittee of the Committee on Appropriations, U.S. Senate, on June 24, 1960-will provide for a smaller number of grants for scholarships and visiting lecturers during academic years 1961-62 and 1962-63, than had originally been anticipated, and for commensurate assistance with administration, operations, and completion of additional facilities. It will provide for 300 grants for scholarships, 35 grants for visiting lecturers, $3,224,715 for construction of library and classroom facilities, and $1,085,210 for operations.

The Department is satisfied, as are the special consultants, that the Federal funds involved are essential to the development of the center itself and do not constitute a subsidy to the University of Hawaii. I should also like to remind the committee that the State of Hawaii has made a substantial contribution to this project. Hawaii's Legislature appropriated $852,000 for buildings and for administrative expenditures in connection with the planning and operation of the center, and the University of Hawaii provided a land area of 21 acres with a market value of about $2,740,000 on its main campus for the special facilities of the center.

During this initial period of developing the center, University of Hawaii officials have received the wholehearted cooperation of the Department of State and the Foreign Service of both the Department and the U.S. Information Agency. The university's determination to initiate the scholarship program as quickly as possible has been supported by various elements within the Department's Bureau of Educational and Cultural Affairs, and by our Embassies and Fulbright Commissions in Asian countries. This is attested to by the university authorities who, in a recent progress report on the center, indicated that our Embassy people "have gone out of their way to facilitate" this work and that "in some cases Fulbright officials *** have worked near miracles in an administrative sense in order to assist with such selections ***" [i.e., of scholarship candidates] in time for the second semester of the academic year 1960-61. All of us who have been concerned with this new venture in international understanding are convinced that the Center for Cultural and Technical Interchange Between East and West, located in the unique cultural and geographical environment provided by the newest of our States, is a significant new resource which has a distinct contribution to make to the expanding efforts of the United States in the field of educational, cultural, and scientific exchange.

Thank you for the opportunity to present this statement and to support this estimate.

REPORT OF THE COMMITTEE OF CONSULTANTS TO THE BOARD OF REGENTS, UNIVERSITY OF HAWAII, ON THE CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN EAST AND WEST, JUNE 14, 1961

Subject: The Center for Cultural and Technical Interchange Between East and West.

To the Regents of the University of Hawaii:

Since its creation in October 1960, the Center for Cultural and Technical Interchange Between East and West (more commonly called the East-West Center) has shown significant progress. Programs and activities have been outlined, and some actively launched. A partial staff has been recruited. The first buildings have been planned, and building bids will be let this month. Inventories of Hawaii's assets for support of the center program have been made. Almost 100 students from Asia and America are now studying at the University of Hawaii under center scholarships, and about 150 more are expected to begin studies this fall.

These accomplishments testify to the initiative which has gone into development of the center. The regents were wise, however, to request a review of the organization and program of the center at this stage of its development. The committee of consultants has now met with representatives of the center and the university and a number of other interested individuals, has examined the present and proposed structure and programs of the center in some detail, and makes the following recommendations:

CONCEPT

(1) The center is soundly conceived and should be vigorously developed as an important national resource and a contribution to international understanding. An educational center to bring together scholars, students, and technicians from Asia, the Pacific islands, and the United States will have great value for the individual participants, and for the nations from which they come. Some Asian countries have need for technical training facilities and all countries need greater mutual appreciation of cultures and national problems.

AFFILIATION

(2) The center should continue to be affiliated with the University of Hawaii. As an educational program for the training of students, scholars, and technicians, the center should be closely associated with a university. This association will also serve to emphasize that the center is a nonpolitical body, not operated by the U.S. Government, a fact which will enhance the center's effectiveness among many Asian representatives.

While the university's major responsibility is to the people of Hawaii and the center's is to the entire Nation, these are not mutually incompatible. It is essential, however, that the differences be taken fully into account in the organization, administration, and programing of the center. There can then be no question that the university and the center will derive strength from one another while each carries out its own purpose.

Chancellor

GENERAL STRUCTURE AND ADMINISTRATION

(3) A new position, that of chancellor, should be established for administration of the center.

The leadership of the center needs to carry prestige that will be recognized throughout the United States and Asia; hence, the proposal for the title and responsibilities of the position of chancellor.

The chancellor should be under the administrative responsibility of the President but should have considerable autonomy in the center's development and administration. He should have authority in matters directly concerning the center, and should be held accountable for the center's results. His duties would include the preparation and control of center budgets, negotiation of contracts, public relations, and the development of cooperative arrangements with scholars and institutions on the mainland and throughout Asia.

(4) Selection of the chancellor should proceed as carefully and rapidly as possible.

The chancellor should be an academician with administrative ability. First consideration should be given to candidates in Hawaii. Too often the tendency is to overlook the talent close at hand, and the process of attracting a widely known person from the mainland would be time-consuming and perhaps end in frustration. It may prove more fruitful to find a relatively young, vigorous person who is willing to devote his future to the development of the center. The chancellor's salary range should be high enough to attract a thoroughly qualified person, probably between $20,000 and $30,000 per year. Other important perquisites will be provision for housing, entertainment allowance, and transportation.

Advisory Council

(5) The Regents should appoint an Advisory Council of qualified persons from Asia and the United States to advise the chancellor concerning the program of the center.

The Council should be relatively small, with members chosen not as representatives of institutions, countries, or special groups but as individuals able to give sound advice and to help marshal the support and resources of higher education. Because of the center's national character, the Department of State should be invited to nominate one Council member. Appointment should be by the regents on the recommendation of the President and the chancellor.

As special projects are undertaken, it will be desirable to establish subjectmatter advisory committees with members drawn from Asia and from the United States. It is essential to create a sense of wide participation in the development of center programs. This can best be done by affording involvement at the policymaking level.

Administration of programs

(6) The center should administer directly the Institute for Advanced Projects, the International Training Agency, and the Translation Bureau.

(7) The formal education of students and the provision of student services should be carried out by the University of Hawaii and other universities, through contractual arrangements with the center. The International College should be disbanded.

(8) Resources for research should be administered by the center through grants.

As conceived now, the center is built around four broad functions: student education, scholar and leader exchange, technical training, and research.

The formal education of students and the granting of degrees cannot be undertaken by the center. For this function, the center should make contractual arrangements with the University of Hawaii and, on occasion, other universities, providing proper reimbursement for facilities and services. The Institute of American Studies, Asian studies and overseas operations programs, foreign student advisor program, and the English Language Institute should be carried out by the university under the appropriate colleges or administrative units Services rendered to the center by these programs would be done by contract. The functions now performed by the International College would be absorbed by other university units, and that college could then be disbanded as a separate administrative body.

The Institute for Advanced Projects, the International Training Agency, the Translation Bureau, and other functions not concerned primarily with student academic instruction should be administered directly by the center.

Resources for research should be administered by the center through grants awarded on the basis of individual research projects selected in terms of the center's program objectives. Grants should be available to scholars not only at the University of Hawaii but also elsewhere in the United States and in Asian nations; and the projects need not be carried out at the University of Hawaii. The following chart graphically presents the administrative structure of the center relative to the university: