There has also been a net decrease overseas of approximately 25,000 foreign nationals provided by contractual agreement. This decrease can be attributed to the closing of facilities in oversea commands and the phase-down in military strength.

In November 1957, the Comptroller of the Army forwarded to the committee a number of examples of management improvement in the Army. Those examples were the results of the management improvement program during the fourth quarter of fiscal year 1957.

With its report on organizational changes effected during the year was included a 31-page quarterly publication on Management Improvement for the first quarter of fiscal year 1958, which had been distributed throughout the Army. It was reported that by this means information on improvements developed, tried, and tested at one installation is given to all installations that may have similar conditions and can effect a similar or identical improvement.

DEPARTMENT OF THE NAVY

The Department of the Navy reported that civilian employment in the departmental headquarters decreased 1,151 since December 31, 1956. The net reduction for the Department of the Navy as a whole is 28,074. These reductions reflect the Department of the Navy compliance with expenditure objectives and effective manpower utilization policies of the Department of Defense. Organizational changes reported to have taken place since the last report are set forth as follows:

Office of the Chief of Naval Operations

During this period the DCNO (Fleet Operations and Readiness) was redesignated DCNO (Fleet Operations, Readiness, Research, and Development). A total of 112 civilian positions were transferred from the Office of the Assistant Chief for Intelligence, 95 to the recently established Office of Navy Collaboration in Air Intelligence, Washington, D. C., and 17 to the Navy Field Operational Intelligence Office, Fort George G. Meade, Md.

Bureau of Aeronautics

During this period the Personnel Division, the Office Services Division, and the Computer Division were combined and redesignated as Assistant Chief for Administration.

The Aircraft Logistics Division was made a division under the Office of the Assistant Chief for Plans and Programs, and the Comptroller was made a division under the Office of the Chief of the Bureau. Bureau of Medicine and Surgery

During this period the Administration Division, Comptroller Division, and the Medical Statistics Division were combined and included in the Office of the Assistant Chief for Planning and Logistics; the Assistant Chief for Research and Medical Military Specialties as the Assistant Chief for Research and Military Medical Specialties, and the Assistant Chief for Aviation and Operational Medicine, as the Assistant Chief for Aviation Medicine.

The Publications Division, formerly reported as a separate component, is included in the Office of the Assistant Chief for Personnel and Professional Operations.

Bureau of Naval Personnel

During this period the staff of the Machine Systems Analysis Division was increased in accordance with a phased buildup planned for the Division. These additional personnel were required in order to intensify the analysis of personnel administration functions and to provide trained personnel for key positions in the eventual Navy Manpower Information Center.

Bureau of Ordnance

During this period the Assistant Chief for Planning was redesignated the Planning and Progress Division; the Assistant Chief for Ordnance Establishments as the Naval Ordnance Shore Establishments Division, the Assistant Chief for Material as the Material Division, the Assistant Chief for Research as the Research and Development Division, and the Special Missile Weapon Systems Office as the Special Projects Office.

During this period the staff of the Special Projects Office has increased because of emphasis on the missile program.

Bureau of Supplies and Accounts

During this period the traffic function and 36 employees of the Office of the Assistant Chief for Transportation were transferred to the Department of the Army.

Also during this period the Stores and Plant Accounting Division with 18 employees and the Stock Finance Division with 17 employees were transferred from the Office of the Assistant Chief for Accounting and Disbursing to the Office of the Comptroller.

The staff of the Assistant Chief for Supply Management decreased during this period because of the transfer of the Forms and Publications Supply Office to Byron, Ga., in March 1957.

Bureau of Yards and Docks

During this period the Housing Division was transferred from the Office of the Assistant Chief for Construction to the Office of the Assistant Chief for Real Estate.

Military Sea Transportation Service

On April 25, 1957, the Judge Advocate General rendered an opinion that the Commander, Military Sea Transportation Service, is a part of the Operating Forces of the Navy and as such is "field" rather than "departmental." Accordingly, Commander, Military Sea Transportation Service, was excluded from reports prepared for departmental headquarters beginning April 30, 1957. Departmental records were revised to exclude Commander, Military Sea Transportation Service, from departmental headquarters reports for December 31, 1956; January 31, February 28, and March 31, 1957.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

The Secretary reported that the total number of employees in the Department of Health, Education, and Welfare on January 1, 1958, was 53,291, an increase of 3,345 over the previous year. About 45 percent (1,477) of this increase was for new or expanded programs of the Public Health Service-the principal ones being medical research, communicable disease control, and air- and water-pollution control.

Another 45 percent (1,505) of the increase was in the Social Security Administration, principally for meeting the unprecedentedly heavy claims workloads caused by the 1956 amendments to the Social Security Act. For the remaining agencies, the largest increase, or 6 percent (200), was for an expansion of enforcement operations of the Food and Drug Administration.

Office of the Secretary

There were no organizational changes during 1957. The increase of two positions in the Office was to provide for more effective coordination of Department program activities.

Office of Administration

The Division of Management Standards of the Office of Management Policy was abolished. The Office was reconstituted with a Management Analysis Staff and a Management Standards Staff. These changes provided for a partial realinement of staffs and were designed to provide greater flexibility to meet the needs of operating agencies for staff services.

During 1957, there was an overall increase of 31 positions. The major part of this increase (23) was for activities in the Division of General Services, as follows: For strengthened property management activities (4), for additional messenger services (3), for library services (2), for central administrative services (4), and for temporary positions to meet an increased workload of mechanical processing of statistical data (10).

Office of Field Administration

No changes in organization were made in 1957. There was a total increase of 32 positions. Twenty-five were required to meet increased service workloads in headquarters and regional offices resulting from new and expanded programs of the operating agencies. The remaining seven additional positions were required to conduct a new program of allocations to State agencies of surplus property for civil-defense

purposes.

Food and Drug Administration

A Division of Public Information was established with primary responsibility for developing and directing a broad coordinated approach to promote voluntary compliance with the Federal Food, Drug, and Cosmetic Act, and related laws, through educational and informational efforts.

The headquarters staff was increased by 80 positions, 70 of which were due to an expansion of enforcement operations and 10 to additional work performed for other Government agencies on a reimbursable basis. Enforcement activities in the field accounted for an increase of 120 positions, mostly in the inspectional and laboratory staff.

Office of Education

There were no major changes in organization during 1957. However, there was an overall increase of 50 positions in the Office to carry out programs authorized by the Congress in the preceding year. These were primarily for: research and statistical services (13), extension of rural library services (9), practical nurse training (11), and vocational education (11).

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Office of Vocational Rehabilitation

The Division of Planning and Evaluation was abolished and the functions transferred to the immediate Office of the Assistant Director. Also, a division was established to provide for strengthened administration of the expanded research grants and demonstration program. The moderate increase of six employees in the Office of Vocational Rehabilitation reflected the additional staff needed for the research grants and demonstration program.

Public Health Service

Office of the Surgeon General. No major changes in organization were made during 1957. There was an increase of 27 employees; 20 of the additional employees were in the Division of Public Health Methods to complete the staffing for the national health-survey program authorized by legislation enacted in the summer of 1956.

Bureau of Medical Services.-The Division of Administrative Management was abolished and its functions and 112 employees transferred to the operating divisions and the Office of the Bureau Chief. Employment rose slightly (38) at Freedmen's Hospital due to higher patient load.

Bureau of State Services.-The venereal-disease program was transferred from the Division of Special Health Services to the Communicable Disease Center in Atlanta. The field employees of this program, formerly reported with other regional and field activities, are now included in the employment figures shown for the Communicable Disease Center and for the Bureau. The net increase of about 200 in Bureau employment was primarily for expanded activities in communicable-disease control, air- and water-pollution control, health of the aged and chronic disease, and technical assistance to States.

National Institutes of Health.-There were no organizational changes during 1957. Increased appropriations for medical research work of each of the 7 Institutes, for research and testing of vaccines, for administration of research grants and fellowships and for the operation of the Clinical Center at Bethesda resulted in an increase in employ ment during 1957 from 5,247 to 5,847, or 600-more than 40 percent of the total Public Health Service increase.

National Library of Medicine.-During the year employment rose from 207 to 229, or 22 employees, due to the expansion of the Library's operations.

Commissioned corps.-The number of commissioned officers on active duty rose from 3,052 to 3,272-the expected result of program expansions.

Social Security Administration

Office of the Commissioner.-There were no changes in organization during 1957. An increase of seven employees in the immediate Office of the Commissioner was due in large part to filling vacancies existing on December 31, 1956.

Bureau of Old-Age and Survivors Insurance. There were no changes in organization above the branch level during 1957. The Bureau increased its staff by 1,300 employees during 1957. The increase was required primarily to meet the unprecedentedly heavy claims workload caused by the additional and new benefits provided in the 1956 amendments to the Social Security Act. The amendments extended coverage to approximately 3.7 million additional people,

lowered the entitlement age for women to 62 years, and provided. disability benefits at age 50 and for children over 18 years.

Bureau of Federal Credit Unions.-Under a reorganization in June 1957, the Division of Field Operations was abolished and its major program responsibilities transferred to two new divisions: the Division of Examination and the Division of Program Services. The reorganization gives more emphasis to the examination program.

The reorganization of the Bureau did not involve any increase in number of positions in the headquarters staff. The increased number of field employees represents the additional examiners needed because of increases in the workloads of the program.

DEPARTMENT OF THE INTERIOR

The Department of the Interior did not include 442 employees of the Virgin Islands Corporation in its report submitted to the committee. No explanation was made relative to this deletion until the issue was raised by the staff. Department officials then informed the committee that they had omitted these employees from their report based on a ruling of the Civil Service Commission, that the Virgin Islands Corporation was an independent agency and the employees should not be included in the totals of the Department. This fact was not reported to the committee until after the chart had been completed and was in print-too late to make the necessary changes to conform to this ruling.

In contacting the Department of the Interior as well as all other agencies of the Government, a specific request was addressed to the Secretary that all pertinent changes in organizational structure or personnel be reported in detail. The omission of the Virgin Islands Corporation has, therefore, resulted in an error in the chart as it was too late to make corrections when the proper information was finally received. The figures shown in the report will not, therefore, correspond with those shown on the chart due to the failure of the Department to submit this information as requested.

Office of the Secretary

There were no major organization changes in the Office of the Secretary. An overall increase of 12 employees occurred during the year. Appointments to the Office of the Assistant Secretary for Fish and Wildlife were made early in the year. The Administrative Assistant Secretary's Office increased its staff by 5 as a result of the establishment of a departmental correspondence-control system; 3 of these 5 positions were transferred from the Secretary's immediate office. Fish and Wildlife Service

The only organizational changes are the results of Public Law 1024, 84th Congress, 2d session, that created an Office of the Commissioner and 2 bureaus: Commercial Fisheries and Sport Fisheries and Wildlife. The reorganized Fish and Wildlife Service shows an increase of 289 positions. A very small portion of the increase is directly attributable to the reorganization; i. e., the additional Assistant Secretary, the new position of Commissioner of Fish and Wildlife, and the organizational separation of the two bureaus at headquarters and in the regional offices. The major portion is due to additional emphasis placed on fish and wildlife conservation objectives and programs by the Fish