and resource management systems; establishing performance standards and technical specifications for broadcast equipment; certifying specific equipment for Armed Forces Radio and Television use; establishing manning standards for broadcasting activities; acquiring public service and commercial broadcast program materials; developing, coordinating, and supervising policy, standards, and procedures for the management and effective application of visual information and audiovisual resources; and, performing as the Federal executive agent for the Office of Federal Procurement Policy on behalf of the Office of Management and Budget for the administration of the Federal Audiovisual Contract Management Office.

Our organization, through the Armed Forces Radio and Television Service Broadcast Center in Los Angeles, provides a touch of home by supplying radio and television programs to over 100 manned and 900 unmanned military broadcast outlets located in 75 foreign countries, remote areas of Alaska, U.S. Trusts, Territories, and aboard U.S. Navy ships at sea. The satellite service is now available in 53 countries. Our programming is provided 24 hours a day, 7 days a week, using satellite circuits, land lines, undersea cables, and videotapes, audiotapes and disks either on circuits or mailed directly to user stations. Each day this operation furnishes 24 hours of time sensitive, unedited news, sports, and information on both radio and television by satellite.

In addition, each week 178 hours of entertainment programming is provided on videotape, audiotape or disks. Radio and television programs are obtained from the broadcast and entertainment industries at minimal cost to the government. It is only through the full cooperation and patriotism of the motion picture companies, the radio and television networks, program owners, the music industry, and the unions, federations and guilds that these programs can be acquired within our budget. acquire the rights to distribute over 90 percent of the top-rated entertainment programs presented on American television, and programs such as news and sports are provided gratis. A recent estimate showed that during a one year period we received over $200M of programming for $8M.

We

Through our American Forces Press and Publications Service (AFPPS) the American Forces Information Service (AFIS) publishes products developed for specific audiences such as: The Press and Art Pack which provides camera ready internal command information material to more than 1500 military editors weekly; Billboard which is a finished internal command information display product; while another product Defense Magazine has a wide readership for policy-level articles; and, Defense Issues ensures that policylevel speeches receive distribution to their target readership.

Other products include approximately 60 internally generated but externally procured publications that are distributed worldwide. These publications cover such functional areas as health affairs and foreign country orientation guides.

An important addition to the AFIS and AFPPS mission is the management of the Current News Analysis and Research Service (CNARS) which produces the high visibility daily (work days only) Current News "Early Bird". This is a clipping service in digest form for executives and senior managers in the DoD, OJCS, Military Departments, Unified and Specified Commands, and military-related entities of Congress, the White House, State Department and the CIA. Included are articles from national and international newspapers, magazines, news wire services, and broadcast news program transcripts that cover topics concerning defense and politico-military issues. CNARS also produces several other compilations that cover lengthy and detailed articles in magazines, and summarize books that concern defense and politico-military issues. Finally, CNARS provides a research service through the use of its extensive library system for news that covers defense and politico-military affairs.

The Defense Audiovisual Policy Office has been active on a range of policy initiatives and management system improvements. Military Service's Combat Camera people deploy with operational forces to provide photographic and video imagery of military activities. By exploiting new still video technologies, we can now provide near real time imagery of U.S. Forces in the field directly to the OJCS, National Command Authority, and Service staffs. In fact, now we can provide quality color images of military actions to the highest levels of government aš fast as we can words. Our policy and standards initiatives regarding the emerging interactive videodisk technologies will ensure interoperability of equipment and productions in the DoD and avoid unnecessary costs as these new systems are deployed.

Similarly in the arena of video teleconferencing technology, we are leading actions within the DOD to formulate coherent and effective policies for management of this rapidly expanding and beneficial communications function. Regarding internal information related audiovisual productions, we have recently completed a video entitled "Working for America" to highlight the motivations of our government civilian workforce and which addresses concerns for the future vitality of the Civil Service. Similarly, for the upcoming year key DoD level productions are envisioned to address: 1) Our concerns with professional ethics; and, 2) The priority placement procedures for our employees affected by the anticipated base closures.

The major AFIS operations that are currently financed include: (1) Operation of the Armed Forces Radio and Television Service Broadcast Center in Los Angeles, California, which includes the acquisition of radio and television programming; (2) The Armed Forces Radio and Television Service Satellite Network and the Armed Forces Satellite Transmission Radio System which provides the means for presenting "real time" news, sports, special major events, and other time sensitive broadcast programming to our worldwide audience; (3) The acquisition of radio and television spot announcements that provide internal/command information in place of commercial advertising which has to be deleted from all programming; (4) The news service contracting, printing, and distribution for the DoD Current News Analysis and Research Service, ; (5) Centralized automated management information system for the control of worldwide Armed Forces Radio and Television Service resources; (6) The acquisition of all Department of Defense joint-Service requested publications; (7) The acquisition of all Department of Defense joint-Service interest internal information audiovisual products; (8) The production or acquisition of printed material for Department of Defense targeted audiences; (9) Oversight of Department of Defense publications, and civilian-enterprise, Armed Forces, and Stars and Stripes newspapers. Other operations financed are the management of statutory programs such as: the Department of Defense audiovisual program which includes reports required by Congress; Automated Data Processing support; management of print and publication policy to include OMB mandated annual reductions in periodicals and printing of over $20 million; the administration of international agreements to include radio and television frequency rights in foreign countries, worldwide artistic performance rights, and music copyright.

A comparison of our fiscal year 1988 and 1989 operations and maintenance budgets shows not only no growth after inflation but our FY 89 budget represents far less than the inflation growth. Our FY 88 budget was $61.469M and for FY 89 it is $62.395M; a difference of only $926K, which is only a 1.5% increase in a time of 3.7% inflation. In fact, the FY 89 budget is nearly $7.7M less than our initial budget request because of an internal DoD cut before DOD submitted our final budget.

Since this hearing is mainly involved with Stars and Stripes issues, I believe it best that I elaborate on these

responsibilities.

AFIS develops and implements policies for all DOD publications to include military installation newspapers, periodicals, and pamphlets. It serves as the primary DoD point of contact for Congress on these policy issues. As part of that broad oversight, AFIS has policy responsibilities for the two Unified Command newspapers: the Pacific Stars and Stripes and the European Stars and Stripes. These two publications are owned by the Unified Commanders and are governed by the DoD Instruction, DoDI 5120.4.

The two newspapers provide overseas personnel and their dependents international, national, and regional news; features; commentary; and entertainment from the United States. In that sense, the Stripes represents a DOD "hometown" newspaper for each military theater. Equally important, the two newspapers also cover local, regional, and national news, features, and entertainment concerning their military theater. The newspapers cannot take an editorial position. For both missions, the DoD policy has been and is that the two newspapers will not be censored and that there will be no willful, calculated withholding of unfavorable news.

The

Everyone knows the Stars and Stripes have a long tradition of serving our American forces and their dependents in overseas areas where individuals often are isolated and do not receive other commercial newspapers. Most believe that the newspapers originated during WWII in Europe and associate Stars and Stripes with the cartoons of Bill Mauldin. In reality, the Stars and Stripes can be traced back to WWI and even to the Civil War. first known publication of Stars and Stripes was in Bloomfield, Missouri, when Union soldiers printed and distributed the newspaper to Federal troops. Copies of that newspaper are preserved. The Stars and Stripes newspapers are similar to commercial American newspapers in content, but are unique in their coverage of their military theaters. From its beginning, the purpose of the Stars and Stripes was primarily to support our overseas American fighting forces by keeping them informed of United States and theater news even during periods of conflict. That important wartime mission was recognized by American leaders such as (then) General Dwight Eisenhower who supported this vital wartime mission of the Stars and Stripes.

The staffs of the two newspapers are composed of both military and DoD civilian journalists who serve their nation by providing a credible daily newspaper competitive with major metropolitan newspapers throughout the United States. These editorial staffs are comparable to commercial newspapers. Editing decisions are made by several levels of editors. While both newspapers have civilian managing editors, DoD has not imposed a standardized staff composition.

The Stars and Stripes business operations are also similar commercial newspapers. The European Stars and Stripes is pushed at Darmstadt, Germany and is distributed in three editions throughout Western Europe, and portions of the Middle223. Its daily circulation is approximately 138,000. The Pacific Stars and Stripes is published at Tokyo, Japan and is 1.stributed throughout the Pacific theater. Its circulation has grown throughout the past year to 41,000. The cost of the newspapers to the readers is kept as low as possible so that they are affordable to all members of our American forces overseas. The Stars and Stripes Monday through Saturday editions cost 25 sents and the Sunday edition costs 50 cents in both theaters. The price of the European newspaper was raised to 25 cents in .386. Although the Stars and Stripes outsell competitive Commercial newspapers like USA Today on a ratio of 10 to 1, the newspaper sales activity alone cannot support the Stripes effort. The two newspapers need additional revenues to support their costs. To provide these revenues, the Stars and Stripes organization in both theaters are supported by job printing shop operations in their plants; the resale of commercial books, magazines, and other publications in Stars and Stripes bookstores; by limited advertising authorized by the Congress; and through minimal appropriated fund support for items such as the salaries of mission-essential personnel, some transportation costs, utilities, and maintenance.

This subcommittee is already aware of the problems, challenges, and difficulties the Stars and Stripes operations have faced. We have worked with you and reached understandings about the impact of the shrinking dollar overseas and its effect on Stars and Stripes revenues and operations. In that capacity, I might give a quick summary of the events preceding this hearing.

In 1986, the General Accounting Office conducted an evaluation of both Stars and Stripes and published its report entitled "Stars and Stripes: Appropriated Fund Should Be Reduced." As a result of that GAO report, AFIS worked with Congress and in its response to the GAO recommendations and congressional language, established the Rosen Commission to thoroughly evaluate financial management of the two newspapers. The Rosen Commission was composed of seven senior officer reservists and chaired by Mr. Robert Rosen, a New York businessman. The commission's report was published in December 1987. It is the foundation for the DoD's effort to ensure appropriated funds are reduced and to implement more costeffective operations. The Rosen Commission was a thorough, wideranging study of the Stars and Stripes. Its recommendations covered a broad range that included suggestions to improve the quality of the newspaper, and the management of its resources, include editorial operations. We have kept the Congress informed

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