Mr. ROONEY. Gentlemen, the committee will please come to order. The first item in the Department of State's budget is entitled "Salaries and expenses." This appears at page 1 of the committee print and beginning at page 6 of the justifications.

We shall insert at this point in the record pages 6 through 33 of these justifications.

(The pages follow:)

EXPLANATION OF LANGUAGE CHANGES

1. Purchase of automobiles

Delete "five" and insert in lieu thereof "twenty, of which four are for replacement only".

The four passenger cars to be replaced are for use in Washington. In fiscal year 1963 all of these vehicles will be eligible for replacement under the GSA standards of 6 years or 60,000 miles. The vehicles to be replaced include one 1955 and three 1956 Ford sedans. The purchase of the other 16 automobiles is to in

crease the oversea vehicle fleet.

2. Purchase of foreign currencies

Delete "$15,000,000" and insert in lieu thereof "$9,000,000".

The reduction in the amount of foreign currencies required to be purchased from the Treasury is necessary because of the reduced availability of certain currencies to the Treasury. While currencies may be available to the Treasury in a specific country, the basic agreement under which they were generated may have restricted the purposes for which they may be used to the extent that the Treasury is unable to supply sufficient currencies to meet the Department's requirements.

EXPLANATION OF BUDGET FORMAT (FOREIGN SERVICE SUBMISSION)

The following summary "blue sheet" table on page 8 provides a breakdown of increases by major program or functional item of expense for the appropriation in total. This same functional distribution is shown on the increase-decrease statement for each organizational unit. For example, the major functional increase for the item “Elevation of consular posts to diplomatic status" is shown on the blue sheet summary as $279,281. The amounts which make up this total are shown on page 71 for the Bureau of African Affairs ($213,100), on page 262 for the Bureau of European Affairs ($15,281) and the balance of supporting costs is shown on page 334 for the Bureau of Administration ($50,900).

The committee has, however, always displayed an interest in examining the requested increases both by major program, such as elevation of consular posts and by category of expense such as travel, supplies, equipment, etc. Therefore, the submission for each regional bureau contains a summary page which shows the increases distributed both ways (e.g., p. 72 for the Bureau of African Affairs).

Increases are then justified separately on subsequent pages in terms of program increases and in terms of items of expense. For example, the total figure ($213,100) at the bottom of the column headed "Elevation of consular posts to diplomatic status," on page 72 is explained and justified in narrative on page 79 on the basis of program only. In addition, the increases requested for allowances, differentials, and other operating expenses, without regard to the program involved, are justified by type of expense on pages 89 et seq.