(b) A Division of Transportation Management was established in the Office of General Services under the control of the Deputy Assistant Secretary for Operations to provide more efficient and better coordinated management of the Department's sizable travel and transportation operations.

(c) A reorganization of the political desk units of the Office of Near Eastern Affairs was accomplished to improve the effectiveness of operations and to reflect political developments in that area.

(d) In the Bureau of Intelligence and Research, the Office of Intelligence Research and Analysis and its subordinate units were reorganized along functional lines to obtain greater effectiveness. This was the initial step in a series of organizational changes planned to give improved supervision of operations. Similar changes in other components of the Bureau are pending.

(e) The functions of the Office of the Assistant Secretary for Public Affairs were amended to reflect the merger of the public affairs activities of the Department and the International Cooperation Administration. The merger was accomplished to achieve more economical operations and improved coordination and control.

(f) A reorganization of the Office of Refugee and Migration Affairs was accomplished to reflect the termination of the Refugee Relief Act of 1953 and the implementation of the special immigration program. (9) A reorganization of the Office of Budget was accomplished along fiscal appropriation lines to improve operating efficiency.

(h) The Office of International Trade was reorganized to reflect the establishment of the Trade Agreements Division and the Commercial Policy and Treaties Division. This measure was the result of efforts to solve problems inherent in the unwieldy organizational pattern. which previously characterized the Office.

(i) The Office of Security was revised and reorganized in the interest of improved operating efficiency.

(j) The Bureau of Inter-American Affairs was reorganized to reflect political developments in the area and to achieve more direct supervisory control of subordinate operating units.

(k) The functions of the Special Assistant for Disarmament and Atomic Energy were amended to assign to him additional responsibility for Departmental activities relating to outer space.

(1) The final phases of the close-out activities of the Brussels Universal and International Exhibition, 1958, are expected shortly to be completed. The staff is being reduced as rapidly as possible by termination or reassignment, as appropriate.

Also, during 1958, a number of changes were made in the status of Foreign Service posts. One embassy was reduced to the status of consulate general (Damascus), the embassy formerly located at Tripoli was moved to Benghazi, Libya, two consulates were closed, two new consulates were established and two consulates were raised to the status of consulates general. Three consular agencies were closed and one consular agency was opened.

In management planning for 1959, consideration is being given to the establishment of organizational arrangements which will provide more intensive and comprehensive attention to Soviet affairs. Also, the second phase of the reorganization of the Bureau of Intelligence and Research (see item (d)) is expected to be completed shortly. This reorganization when completed will materially improve super

vision and operating procedures of the Bureau. In addition, the position of Special Assistant to the Secretary for the Coordination of International Educational and Cultural Relations is being established. The functions and responsibilities of this position are responsive to recent legislation and will contribute to the achievement of international educational and cultural objectives.

Organizational changes effected in ICA since January 1, 1958, are summarized by the Department of State in its report as follows: International Cooperation Administration

Development Loan Fund.-In accordance with section 202(a) of the Mutual Security Act of 1954, as amended, the Development Loan Fund has been established as a wholly-owned Government corporation. Management of the Fund is vested in a five-man Board of Directors consisting of the Under Secretary of State for Economic Affairs, who serves as chairman, the Director of the International Cooperation Administration, the Chairman of the Board of Directors of the Export-Import Bank, Managing Director of the Fund, and the U.S. Executive Director on the International Bank for Reconstruction and Development. The DLF corporation, under the direction of the Loan Fund Manager, is responsible to the Loan Committee for the administration of the loan funds made available by title II of the Mutual Security Act.

Office of Private Investment.-A recent ICA staff study on private enterprise recommended that a new Office of Private Investment be established in order that ICA may more effectively discharge its responsibilities in the stimulation of private investment abroad. This study also recommended the transfer of the investment guarantee program from the Office of the Assistant to the Director for Finance to the proposed new Office of Private Investment. These proposals have been approved in principle and plans for their implementation are now underway.

Deputy Director for Program and Planning.-A reorganization was made of this office as a result of the transfer of certain of its functions to the Office of the Special Assistant for Mutual Security Coordination of the Department of State. As a result, a separate policy planning and programing staff were established in the Office of the Deputy Director for Program and Planning.

Office of Food and Agriculture.-The statistical coordination staff was retitled the research development staff in order to reflect more closely its assigned responsibilities. In addition, a training program development staff was established to evaluate present and develop future techniques for application to participants in the agricultural field of activity.

Participant training.-In order to improve the effectiveness of ICA training programs, the training development staff of the Office of the Deputy Director for Technical Services was reorganized. This resulted in the establishment of a Multi-Field University Contracts Branch and a Special Projects Branch and the allocation of some additional staff resources.

Trade Policy Staff.-The function of ICA representation in matters relating to the reciprocal trade agreement program was transferred from the trade policy staff of the Office of the Deputy Director for Technical Services to the Deputy Director for Program and Planning.

Voluntary foreign aid staff-As a result of improved reporting systems adopted and the transfer of minor functions previously handled by this staff, ICA was able to reduce permanent positions in this office from 10 to 5.

Office of Public Reports.-The staff and functions of the Office of Public Reports have been transferred to the Department of State.

Far East region.-There were no missions established, closed, or substantially reorganized during calendar year 1958 in the Far East area. However, greater use was made of multimission or regional project arrangement during this period. Projects were established. on a regional basis because the programs concerned crossed country lines (as the Mekong River and telecommunications projects) or because it was found more economical and effective to decentralize to the field certain technical training programs. The latter permits making use of the advances in technical knowledge and ability which have already been achieved in such countries as the Philippines and Japan.

Latin American region.-In the Latin American area one new mission was established during 1958. Effective July 28, 1958, an office of the ICA representative-Eastern Caribbean-was established in Portof-Spain, Trinidad. This mission is responsible for ICA programs in Trinidad and Tobago, the Leeward Islands, the Windward Islands, and Barbados. Program emphasis centers on technical assistance in housing, agriculture, and education, particularly in the Windward and Leeward Islands.

Internal mission changes of significance included the establishment of controller divisions in the following missions: Ecuador, Honduras, Paraguay, and Peru. The controller functions had been previously performed by the mission executive officer in these missions. The need for improved fiscal management and increased accounting and reporting responsibilities led to the establishment of controller positions and a separation of executive officer-controller functions.

Africa-Europe region.-Nonmilitary assistance programs to Europe have declined steadily over the past several years, and the authorized staffing levels have also been decreased. In the period November 30, 1957, to November 30, 1958, the U.S. personnel in Europe (with the exception of the continuing programs in Yugoslavia and Spain) have been cut one-third from 89 to 59. Further reductions on a phased basis are planned for calendar year 1959.

In Africa programs have developed rapidly and it is anticipated that the growing U.S. interest in Africa will continue this trend. The U.S. personnel levels have increased from 366 in November 30, 1957, to 444 in November 30, 1958, reflecting increasing program emphasis. In addition, missions were established in Nigeria and the Federation of Rhodesia and Nyasaland during calendar year 1958 and plans have progressed for the early establishment of a mission for East Africa.

Near East-South Asia region.-Management improvements were made in the internal organization and functional alinement of several of the Near East-South Asia missions during 1958. The mission in Iran, for example, was substantially altered in order to strengthen the programing function in the USOM and the administration of essential supporting services for technicians. Emphasis has also been given to improved operation of the small mission offices in selected provinces.

A new mission was established during 1958 in Sudan and has been developed rapidly to meet the requirements of the assistance program for Sudan. After some months of experience with the initial organization and staffing pattern, a substantially revised pattern was determined necessary and has been instituted.

DEPARTMENT OF THE TREASURY

The Department, in its report to the committee, submitted a detailed list of organizational and personnel changes effected during 1958, as follows:

Office of the Secretary

In January 1958 the telephone operators formerly assigned to the telephone switchboard in the Internal Revenue Service Building were transferred to the Office of Administrative Services to work on the consolidated switchboard which was installed on December 27, 1957. The consolidated switchboard is operated by the Office of Administrative Services and it is handling the telephone service formerly provided by separate switchboards in the Main Treasury, Internal Revenue Service, and Engraving and Printing Buildings.

Bureau of Accounts

During the calendar year 1958 the following changes were made in the activities of the Bureau of Accounts:

(a) On January 2, 1958, under the provisions of Treasury Department Order No. 177-16 of December 18, 1957, there was transferred to the Office of the Treasurer of the United States certain work in connection with claims for nonreceipt of Government checks. Transferred with this work were four employees of the Division of Disburse

ment.

(b) The disbursing functions for social-security payments in Birmingham, Ala., were delegated to the Social Security Administration on a test basis, several years ago. As the result of a joint study by a committee appointed by the Director of the Bureau of the Budget, the Comptroller General, and the Secretary of the Treasury, the delegation was withdrawn effective with the fiscal year 1959. On September 7, 1958, this disbursing function was returned to the Bureau. On January 1, 1959, there were 63 employees performing this function. (c) Under Public Law 85-745, approved August 25, 1958, and Treasury Department Order No. 177-17, dated September 22, 1958, the Bureau now accounts for and makes monthly annuity payments to former Presidents or their widows.

(d) By amendment No. 1 of Treasury Department Order No. 174, dated October 10, 1958, the Bureau is required to make an annual audit of the Federal Reserve currency stock in the vaults of the Bureau of Engraving and Printing.

The 2,432 employees on the rolls as of January 1, 1959, are not representative of the requirements of the Bureau. During the period January 1 through June 30, 1959, the Division of Disbursement will process checks for two seasonal programs; i.e., income-tax refunds and agriculture-benefit payments. In order to handle these seasonal requirements the Division of Disbursement payroll will be increased during this period by 143 employees, making a total for the Bureau at its peak of 2,575. However, the average number of employees for

the Bureau of Accounts for the fiscal year 1959 will amount to only 2,388.

Overall employment for the Bureau shows a decrease of 50 employees between the reporting dates of January 1, 1958, and January 1, 1959. Forty-one of these represent the net difference in the number of temporary and part-time employees required to do special nonrecurring tasks. The reduction of nine employees was the result of the elimination of the same number of permanent positions.

Bureau of the Public Debt

The Washington office is comprised of five organizational units. Employment in the Washington office of the Bureau remained relatively constant. The reduction of 17 employees is related primarily to fuller utilization of machine accounting in the Division of Public Debt Accounts and Audit during the past year.

In August of 1957, a new office was established in Parkersburg, W.Va., to process the card bond type series E savings bonds and bond stubs on electronic data-processing equipment. This office has been expanded gradually in relation to the volume of work received and the availability of the electronic equipment. The introduction of new techniques in processing savings bonds of this type has permitted substantial reductions in personnel in the Chicago Departmental Office, where all series E bonds were formerly processed on conventional equipment.

Reductions in the Savings Bond Audit Branches from 457 to 236 were made possible when the New York Audit Branch was closed June 30, 1958, and the remaining workload transferred to the Audit Branch in Cincinnati, Ohio.

Office of the Treasurer, United States

There were no organizational changes in this Office during calendar year 1958. There was a net increase of 38 employees during the year, due primarily to increased workload in the check payment and reconciliation activity and the check-claims activity.

The program to convert to an integrated electronic system for the payment and reconciliation of all Government checks in Washington was completed early in calendar year 1958. The volume of checks paid increased from 371 million in calendar year 1957 to 398 million in 1958. This increased volume required 11 additional employees in the Check Payment and Reconciliation Division.

The concentration in Washington of the check-payment operation has resulted in the receipt here of a large number of claims and related papers which were formerly received and disposed of at the Federal Reserve banks through which the checks were made payable. Also, by integrating the check-reconciliation function with the payment function in the check-payment activity, we now receive claims and related papers which were formerly received and processed by the General Accounting Office in the initial steps of handling claims before forwarding them to the Office of the Treasurer for final action.

In January 1958, under Treasury Department Order No. 177-16, functions heretofore performed by the Bureau of Accounts in approving claims for substitute checks were transferred to this Office. Placing all the functions relating to the approval of the issuance of substitute checks in one location and authorizing their issuance on the basis of the original written statement of the claimant in most cases has result