in the Bureau's contributions to regional national intelligence estimates and to the Department's representation on interdepartmental working groups for regional national estimates. These offices in collaboration with the Office of Functional and Biographic Intelligence participate in the national intelligence survey basic research program. Office of Functional and Biographic Intelligence (RFB).—This Office plans, develops, and directs an intelligence research and analysis program for the Department along appropriate functional lines; provides intelligence research and analysis in functional fields of study; coordinates the Bureau's program with research under way in universities and foundations to prevent duplication of effort. It acts as a focal point within the Bureau for receipt of functional substantive problems, directs preparation of the Bureau's contributions to functional national estimates, and represents the Department on interdepartmental working groups for functional national estimates. REB develops a program for the collection and evaluation of biographic information on foreign political, economic, social, and cultural personalities, involving the preparation and dissemination of analytical biographic studies as well as maintenance of the Department's central collection of biographic information on foreign persons. This office also directs the activities of the Geographer of the Department. The expanded export trade promotion program calls for a tremendous expansion of the contents and functions of the commercial reading rooms maintained at each post. Among many other features, it calls annually for the automatic and centralized procurement and distribtuion of roundly 23,200 volumes of books and 20,550 subscriptions of periodicals to 248 Foreign Service posts. The selection, procurement, and distribution of these publications is to be centralized in Washington, and this part of the program is to be implemented by the library in consultation with appropriate elements in the geographic bureaus of the Department and with the Department of Commerce. This program may eventually require a separate and self-contained unit with responsibility for the commercial reading room only. However, it is presently contemplated that the program can be merged with current library operations more economically than by the establishment of a separate unit, with an increase of three positions to the library. Under the integrated staffing the positions required are: Procurement librarian, GS-9.-To supervise the day-to-day operations of procurement for the commercial reading room program, to determine vendors and to place purchase orders, maintain order records and files, draft correspondence and communications to posts, supervise maintenance of fiscal records and reports, maintain contact with Department pouch service, etc. Clerk-typists, GS-4.-Two clerk-typists will be required to do the necessary typing and filing of purchase orders, maintenance of fiscal records, correspondence, reports, etc. Library procurement of foreign publications‒‒‒‒‒ +$15,000 The total increase requested under "Miscellaneous salary and nonsalary obligations" of $15,000 is for library procurement of publications. The increase requested would provide a total availability of $61,000 (from $46,000 in fiscal year 1961) for books, periodicals, and newspapers for departmental use. As indicated in the following table, funds allotted to the library for this purpose have remained substantially the same over a period of years while the cost of publications has increased by about 70 percent during the past 7 years. In other words. the cost of publications has increased from year to year so that currently the library purchases 55 percent fewer publications than 7 years ago. .Reflects an increase of one unbudgeted position and the transfer of one position from the Bureau of European Affairs in the Office of the Director. Lendes $15,503 for cost of printing intelligence reports and $5,250 for binding costs for the Library forterly budgeted by the Office of Deputy Assistant Secretary for Operations. €9183-61—12 Mr. ROONEY. Mr. Hilsman, do you have a statement here in the statement book? Mr. HILSMAN. Yes, sir, I do. Mr. ROONEY. What is your pleasure with regard thereto? Mr. HILSMAN. If you approve, sir, I would like to insert it in the record and then speak very briefly to it; that is, summarize it. Then I would like to go off the record and discuss a little further our plans for the future. Mr. ROONEY. We would like to hear some of these plans for the future on the record. Is that covered in this statement? Mr. HILSMAN. Yes, sir; in more general terms. GENERAL STATEMENT Mr. ROONEY. We shall insert the statement at this point in the record. (The statement follows:) Mr. Chairman and members of the committee, this is my first appearance before this committee and I want to express my pleasure at being here. My prepared statement is in two parts. The first is a statement, prepared originally for my predecessor, giving general background information on the Bureau and reporting on this past year's activities before I came on board. The second part is a statement of my tentative thoughts about the functions and responsibilities of the Bureau and where we might go in the future. HISTORY OF RESEARCH AND INTELLIGENCE FUNCTION The calendar year 1960 marked the 15th anniversary of the establishment of the research and intelligence function in the Department of State. The President, by Executive order dated September 20, 1945, transferred certain functions and staff of the old Office of Strategic Services (OSS) to the State Department, effective October 1, 1945. These elements were combined in the Department with other research specialists, a number of biographic information personnel, the Department's library, and other miscellaneous groups such as the geographer's office. After a year and a half of experimentation, the research and intelligence area was established with functions which persist to the present. Basic responsibilities, developed under the National Security Act of 1947. have been clarified and enlarged by Intelligence Directives of the National Security Council (NSC). DEMANDS ON BUREAU It is apparent that demands on the Intelligence and Research Bureau were influenced by events which could be divided into three phases or periods of time: (1) the immediate aftermath of World War II and when there were hopes of continuing peace among nations of the world; (2) the period of disillusionment; and (3) the cold war, when nations of the free world joined forces to combat the deadly aggressiveness of international communism. PERIOD FOLLOWING WORLD WAR II During the period of adjustment following World War II, the size of the Bureau was drastically reduced, on the theory that peacetime research and intelligence needs would not be as great as wartime needs. However, even in the earlier periods, unforeseen complexities of the international situation brought unexpected requirements-for example, assistance to the development of the Marshall plan. The rapidly mounting international tensions that followed were at once reflected in the upward trend of research and intelligence responsibili ties. During the Korean war, and then the intensified cold war, the need for basic research and current intelligence was emphasized by heavier demands or the Bureau. Furthermore, the East-West tension was not by any means the only cause of demands upon the Bureau. Something like 39 states have achiever independence since World War II; 17 new states joined the U.N this past year ! In these new and developing states, basic political and social forces are on the move. If the United States is to influence these forces away from war and chaos and toward a world in which the United States and its way of life will thrive and prosper, we must first understand what these forces for change are and how they work. It is the responsibility of the Bureau of Intelligence and Research to try to provide some of this basic understanding on which policy is based. INTELLIGENCE AND RESEARCH FUNCTIONS TODAY The Bureau of Intelligence and Research (INR) today has the dual function of meeting the requirements of the coordinated intelligence community under intelligence directives issued by the National Security Council, and the Department's own research and intelligence needs. Evidence of these responsibilities is enumerated in part as follows: 1. Production of INR's own intelligence and biographic reports, briefs, and special papers, a number of regular serial publications on particular countries and subjects, and briefings for the Secretary and for other policymaking officials. 2. Contributions to national intelligence estimates, and the national intelligence survey. 3. Participation in the watch committee, departmental and interagency working groups, the U.S. Intelligence Board and its subcommittees, and special committees and working groups. FUTURE FORECASTS Forecasting the immediate and future workload, the Bureau can expect no diminution of the research and intelligence burden. There is no shortage of foreign policy problems, but, indeed, what amounts to a glut of crises. With rapid political, economic, and social changes proceeding in Latin America, the Near and Far Eastern countries, and the new African countries, there will be constant and urgent need for guidance and understanding to these countries from the United States, and for careful watch over opportunities opened to our enemies, and we anticipate more urgent and varied demands for research and intelligence. We envision the continuation of more or less minor crises requiring sharper focus and emphasis on current operational needs-with more intensifed demand for research and analysis in depth necessary to develop the background essential to understanding such situations, as well as to permit identifiation of problems as they emerge but before they reach crisis proportions. If we could devote more attention to the latter-anticipating problems so they do Lot become crises-the ultimate savings would be PAST YEAR PRODUCTION enormous. Intelligence production this past year continued to show a slight increase overall for fiscal year 1960 over fiscal year 1959. A statement of production for These years follows: ESTIMATE FOR 1962 There are no new positions or money requested in this budget. When I assumed the duties of Director on February 6, 1961, I found that the budget contained a request for three positions in the library to support the expanded trade promotions program and an addition $15,000 for procurement of publications to restore the level of such procurement in previous years, which has been reduced by the steadily increasing cost of these publications. After studying the matter carefully, I asked that both of these requests be withdrawn. LIBRARY My feeling is that a request for additional positions for the library is not justified until they have had time to see what savings in personnel might result from their new and presumably more efficient quarters. The library completed its move to the new building in January, and we hope that the new layout will increase efficiency. Prior to the move, the library maintained five service points outside the central service area. These have now been reduced to three-the Foreign Service Institute reading room, the law reference room, and the relocation center. Until we have had time to test the new system, I see no justification in requesting an increase. PROCUREMENT OF PUBLICATIONS On the procurement of publications, I do not feel that an increase is justified until the present list of publications can be carefully screened to determinee what might be of only marginal usefulness and, thus, eliminated. Here again, we should await a further test of our present system before seeking more funds. FUTURE PLANS I would now like to talk a bit about the future. As you know, I have been on this job only a few weeks. My judgments are far from final, and it would be foolish of me to make this committee any promises at this stage. But I would like to share with you some of my tentative thoughts about how this Bureau might be made even more useful and efficient than it has in the past. I must confess that I was surprised on taking over what a wide number of not always closely related responsibilities this Bureau has responsibility for, and what a large staff is required to discharge those responsibilities. THE LIBRARY The Department of State has had a library since 1789. In recent years, the responsibility for administering the library-which is a service function to the whole Department and to ICA-has been lodged with the Bureau of Intelligence and Research. BIOGRAPHIC INFORMATION The U.S. Government obviously needs biographic information on leaders in other countries. At present, this work is divided between the different agencies-the military accumulate information on foreign military leaders, the State Department accumulates information on political leaders, and so on. THE NATIONAL INTELLIGENCE SURVEY The national intelligence surveys are encyclopedic studies of all the countries and regions of the world. They are apparently used by almost all the agencies of the Government, but the major need is by the military for defense planning. The State Department is responsible for preparing those sections of each NIS dealing with political, economic, and social matters. A substantial proportion of the people in INR work on the NIS; much of our budget comes as reimbursable money for this work; and much of the time and energy of the top command of the Bureau is taken up in managing the activity. THE NATIONAL INTELLIGENCE ESTIMATES As you know, the NIE's are a joint effort by all the Departments and agencies responsible for defense and foreign policy, coordinated by the Central Intelligence Agency. It is on these estimates that some of our most impor |