precise estimates of monetary benefits at this time. It is expected, however, that the dollar expenditures of U.S. post exchanges and commissaries in foreign countries will eventually be reduced considerably and that a corresponding improvement in the U.S. balance of payments will result.

GOVERNMENT INFORMATION

1. Federal Government's Use of Anonymous News Sources.

(a) Summary of investigation.-In 1965, the subcommittee sent all major Federal agencies and a group of Washington reporters questionnaires on the dissemination of Government information under certain mutually agreed conditions requiring nonattribution of the information. This includes such techniques as background briefings, off-the-record comments, and not-for-direct-attribution information when (1) the conditions on the use of the information are agreed to by the press, and (2) it is agency policy to use the techniques or officials have agency authorization to decide whether or not to use them.

The subcommittee's initial investigation indicated that many major Government news stories are not attributed to a specific official spokesman. The investigation also indicated that the ground rules for the use of anonymous source stories varied between agencies and, at times, within a single agency. One official providing information to the press "for background only" would intend that the information be attributed to the agency but not to the specific official; another official in the same agency using the same term would mean that the information could not even be used by the press. The same wide variation in the understanding of anonymous source terms was apparent among reporters.

The information from the questionnaires is being compiled to determine whether Government-wide ground rules should be suggested for the dissemination of Government information from anonymous

sources.

(b) Estimated monetary and other benefits.-While no monetary benefits would be expected to result from the investigation, a standardization of ground rules would make possible greater public understanding of important Government developments.

2. Government Information Organization.

(a) Summary of investigation.-The subcommittee staff, with the help of General Accounting Office auditors, made a preliminary analysis and tabulation of answers to a comprehensive subcommittee questionnaire on the organization of the public and congressional information function in the executive branch of the Federal Government. Initial findings revealed that approximately $30 million is spent on salaries alone for some 4,000 persons providing Government information to the public and the Congress.

As responses to the questionnaire in many instances were inconclusive, it is anticipated a supplemental questionnaire will be required to complete the study and place it on a current basis.

(b) Estimated monetary and other benefits.-More efficient organization of public and congressional information functions of Government agencies will make possible more effective dissemination of information in both areas. In addition, a substantial savings can be realized in the $30 million annual salary costs.

3. Names and Salaries of Government Employees.

(a) Summary of investigation.-In 1965, the subcommittee reopened its investigation into the availability to the public of information about Government employees. The action followed a Post Office Department refusal to disclose to the public and to Members of Congress the names of summer postal workers. The subcommittee found that the Department had no legal authority to withhold the information. As a result, the Post Office Department agreed to make available at each Post Office the names of summer employees.

On March 17, 1966, the Civil Service Commission issued a Government-wide policy statement (Federal personnel manual system letter-FPM letter No. 294-1) setting forth guidelines for access by the public to the names and salaries of Federal employees. The new policy, patterned after existing Civil Service Commission internal guidelines, requires departments and agencies generally to release basic personnel information to the public and the Congress where the national security is not involved.

(b) Estimated monetary or other benefits. While no monetary benefits can be estimated, public knowledge of Government activities improves efficiency and economy.

4. U.S. Information Problems in Vietnam.

(a) Summary of investigation.-As a followup on an investigation of information problems in Vietnam initiated in 1962, the subcommittee on May 10, 1965, was given a classified briefing on U.S. information policies and practices in that country by representatives of the Department of State, Department of Defense, and the U.S. Information Agency. Specific attention was focused on the effectiveness of Government guidelines formulated in March 1965, for the control of sensitive information in Vietnam. The basic policy of the guidelines follows recommendations made by the Government Operations Committee in House Report No. 797, October 1, 1963.

On-site subcommittee investigations in November 1965, and May 1966, revealed that official U.S. information sources were generally responsive to the requirements of the news media.

Scheduled followup subcommittee investigations in Vietnam will include coordination of news from official sources, reliability and scope of U.S. briefings to the news media, efficiency and economy of U.S.sponsored TV activities, and auditing of USIA expenditures and operations.

(b) Estimated monetary and other benefits. Further investigation into the efficiency and economy of USIA activities is required before determining possible monetary benefits. Formal subcommittee hear

ings and on-site investigations have resulted in improved U.S. information policies in Vietnam.

5. Availability of Selective Service Information.

(a) Summary of investigation.-Starting in February 1966, the subcommittee received a series of complaints from the news media that some local Selective Service boards in various parts of the country had refused to release for publication the names of draftees who had been ordered to report for final induction. Concurrently, many local draft boards were making the names available.

A subcommittee investigation determined that: (1) There is no specific statutory authority for withholding the names of inductees; (2) local boards withholding names were acting on instructions from some State Selective Service directors who contended that publishing the names might be detrimental to the interests of the registrant; and (3) the absence of a nationwide uniform policy regarding the release of names was due principally to a lack of positive direction from Selective Service System headquarters in Washington.

As a step toward clarifying a muddled information policy, Director Hershey on April 15, 1966, issued Local Board Memorandum No. 71, as amended, which reads as follows:

There are no restrictions imposed by the Director of Selective Service upon the release or publication of lists of names of registrants nor upon the time such lists may be made available for publication. In the absence of any restrictions imposed by a State director of Selective Service upon the local boards under his jurisdiction, such local boards may publish such lists of registrants as they in their discretion may deem appropriate.

The California State selective service director responded to the new memorandum by lifting a 2-year-old restriction on release of names he had imposed on 144 draft boards, and it is anticipated directors in other States, where a ban exists, will take similar action.

(b) Estimated monetary and other benefits.-While monetary benefits are not involved, the investigation pointed up the need for coordination and guidance on Government information policies, and it has helped assure the removal of information restrictions involving the names of selective service registrants.

LEGAL AND MONETARY AFFAIRS SUBCOMMITTEE

1. Treasury Department, Internal Revenue Service-Time Required To Process Rulings.

(a) Summary of investigation. The subcommittee inquired into the length of time it takes IRS to process applications by taxpayers for rulings on the income tax consequences of contemplated transactions. The study inquired into the efficiency with which this important function was being performed by IRS. The subcommittee's findings indicated a recognition by IRS of the need for early ruling and that reasonable efforts are made to provide prompt service. In addition, IRS recently reorganized the Division which handles rulings with a view to giving improved ruling service.

(b) Estimated monetary and other benefits.-There are no computable monetary benefits. The subcommittee interest in the matter can serve to provide incentive for the IRS to continue to seek means to improve its ruling service.

2. Internal Revenue Service-Prosecutions and Fractional Settlements.

(a) Summary of investigation. This inquiry concerned statements reportedly attributed to IRS officials that "boxcar" figures are used by IRS officials in claiming unpaid taxes, putting the taxpayers to the difficulties of refuting such inflated claims, and implying a policy of unjustified fractional settlements of income tax claims. Inquiry revealed that the statements were recklessly made and apparently without valid foundation. Inasmuch as the subcommittee had no basis for further action, the matter was closed although the general subject of the grounds on which IRS compromises particular cases is of continuing interest to the subcommittee.

(b) Estimated monetary and other benefits.-No monetary benefits.

3. Internal Revenue Service-Acquiescence Procedures in Adverse Tax Court Decisions.

(a) Summary of investigation.-The subcommittee studied the basis on which IRS acquiesces or nonacquiesces in adverse opinions by the U.S. Tax Court. There are three principal types of cases to which the procedures apply: (1) those decided solely on the questions of fact; (2) those involving novel and important questions of law; and (3) those in which there is a conflict of judicial decisions. The subcommittee found nothing in the established policies and general criteria.

IRS applies in the different circumstances of the cases which required further attention.

(b) Estimated monetary and other benefits.-No monetary benefits.

4. Internal Revenue Service-Complaint of Alleged Improprieties in Detroit Office.

(a) Summary of investigation.-A complaint that IRS officials of the Detroit district office were guilty of improperly assessing income taxes and settling tax liabilities failed to be sustained. Complainant refused to provide any specific information or evidence although requested to do so by the subcommittee, the Department of Justice, and the IRS.

(b) Estimated monetary and other benefits.-No monetary benefits.

5. Treasury-Bureau of Engraving and Printing-100 Year History. (a) Summary of investigation.-The subcommittee inquired into circumstances surrounding the preparation and publication of a 100year history of the Bureau of Engraving and Printing which both the Comptroller General and the House Appropriations Committee characterized as a capital expenditure. Although by law advance congressional approval of capital expenditures such as the publication here involved is required, none was sought in this case. However, the House Appropriations Committee subsequently considered the matter, after some $70,000 had been expended, and approved the expenditure of sufficient additional funds needed to complete the publication. The history is now published and is being sold at $7 per copy. It is hoped that the costs of the project, in the area of $80,000, may be recovered from the proceeds of sales.

(b) Estimated monetary and other benefits.-No estimated monetary benefits in this instance because the unauthorized expenditures had been made before the matter came to the subcommittee's attention. However, the inquiry served as a notice to the agency to conform with required procedures in the future with respect to capital expenditures. The inquiry should also serve the same purpose for all Federal agencies.

6. Treasury-Bureau of Engraving and Printing-Theft of Sheets. of Currency.

(a) Summary of investigation.-The subcommittee inquired into the circumstances which made possible the theft of 12 complete but unissued sheets of currency by a Bureau employee. The study disclosed that the Bureau exercises reasonable safeguards to prevent the theft of currency and that its security experience has been good.

(b) Estimated monetary and other benefits.-None computable.