Mr. SLACK. Mr. Secretary, when you appeared before the committee last year you indicated that with the changed setup you hoped to attract substantial funds from other sources; which, I believe, you stated would lower the cost per participant for the taxpayer. Have you met with success, or has the Doctor met with success in this area?

Mr. RICHARDSON. I would like to start, since you addressed the question to me, and ask Dr. Kleinjans to follow up. Mr. Chairman, I continue to be as confident as I was last year that the change to an incorporated, independent status will make this institution more economical, and its program will be carried out and its objectives accomplished at lower cost to the taxpayer in the long run. But so far, we haven't had the long run. This incorporated status began July 1 of 1975. The Board, the international members of the Board were elected at the end of 1975 and met for the first time in January of 1976. This is a new idea for an American, Government-sponsored institution-to raise funds from other governments and other interests abroad. They have already raised some. They are making a very effective effort at it. But I anticipate it will take time to develop these resources.

Mr. KLEINJANS. If I may add to that, Mr. Chairman, we have directly approached 12 other governments, and we have gone to the governments specifically because we are asking them for funds so that what we do at the Center becomes a cooperative venture and the people who come to the Center will come as our colleagues, in that sense.

As we have approached them we have been told by all these governments that they are being hit by the worldwide recession and inflation. They have made statements like, "You couldn't have hit us at a worse time; this is the worst time in 10 years," comments like that.

However, they expressed an appreciation for the philosophy underlying our approach to them, and indicated that they would do what they could to meet our request for funds.

Personally, I am going on a trip to Asia in April. I will be talking to government leaders during that month, and I will have a better feel for the situation at that time.

Mr. SLACK. Of course the documents you have handed us, which we will include in the record, indicate that the figures are going down rather than up. I notice the contributions-in-kind item dropped from $839,000-plus to $661.000—a difference of about $180,000. So we haven't gotten to the point where we are moving up the hill. have we?

Mr. KLEINJANS. The problem with those figures, Mr. Chairman, if you look at the funding other than direct congressional appropriations

Mr. SLACK. Are you talking about cash contributions now?

Mr. KLEINJANS. This is a summary sheet of the three which we have previously handed to you. Mr. Chairman.

If you look on page 2 of that document there is approximately $800.000 in kind contributions, and, in addition, as footnote No. 2 indicates, excludes $677,000 which was provided by USAID and other institutions to Indonesia, for the purpose of their working with us on Centersponsored programs. In other words, we attempt to work cooperatively with all of these institutions. There are times when we take the initiative and stimulate funding from other institutions. However. rather than having the funds come to us, we think it is better that they go directly to the other institutions, and we cooperate in that way. So, there is this kind of funding which does take place.

Mr. SLACK. Item No. 1 excludes $268,000 and item No. 2 excludes $667,0 0. I don't yet understand the exclusions. Why are they excluded?

Mr. KLEINJANS. They are excluded because the money did not come directly to us. It went to these institutions; but it is for a part of a program that we are working out cooperatively with the institutions receiving the funds. We have a large research program, for example, on the value of children, which is an attempt to find out why people say they have children. The program involves the participation of nine different countries, including the United States. It is an attempt to find out why population is increasing at the rate it is. And these grants have gone to some of these other institutions with which we cooperate, rather than coming directly to us.

APPROPRIATION LANGUAGE CHANGE

Mr. SLACK. I note on page 333 of the justifications that you wish to change the appropriation language to delete "agency of" and insert "recipient in" in the State of Hawaii. Isn't this entire appropriation granted to the East-West Center Corporation?

Mr. RICHARDSON. Yes.

Mr. KLEINJANS. Yes, it is.

Mr. SLACK. Then what are your reasons for proposing this change? Mr. KLEINJANS. The reason is that prior to this, the Grant-in-Aid Agreement was between

Mr. SLACK. You say "prior to this." Prior to what?

Mr. KLEINJANS. Prior to the incorporation, the agreement was between the University of Hawaii and the Department of State. The University of Hawaii was an agency of the State of Hawaii. The proposed change is because the word "agency" might be read alone as a U.S. agency.

Also, the Hawaii law establishing the Corporation states that the new corporation is not an agency of the State of Hawaii.

Mr. SLACK. The last sentence on that page, page 333, says, "The proposed change would provide grants to other individuals in addition to agencies." What are we talking about here?

Mr. RICHARDSON. I think what you have, unfortunately, hasn't been changed. That was an error Mr. Chairman. We have some revised language that I thought you had by now. May I supply it at this point? Mr. SLACK. Very well. That clears it up.

[The information follows:]

DEPARTMENT OF STATE-CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN EAST AND WEST

EXPLANATION OF LANGUAGE CHANGE

The 1977 budget estimates include the proposed change in appropriation language explained below. New language is in italics and deleted matter is enclosed in brackets.

CENTER FOR CULTURAL AND TECHNICAL INTERCHANGE BETWEEN EAST AND WEST

To enable the Secretary of State to provide for carrying out the provisions of the Center for Cultural and Technical Interchange Between East and West Act of 1960, by grant to any appropriate [agency of] recipient in the State of Hawaii, [$9,000,000 $10,000,000: Provided, That none of the funds

appropriated herein shall be used to pay any salary, or to enter into any contract providing for the payment thereof, in excess of the highest rate authorized in the General Schedule of the Classification Act of 1949, as amended.

It is proposed to change the word "agency" to "receipient" because the word "agency" might be read alone as a U.S. Agency.

NEW BUILDING

Mr. SLACK. Referring now to page 334 of the justifications, you say, "During Fiscal Year 1977, a new East-West Center program building, built completely with funds appropriated by the State of Hawaii Legislature, will be ready for occupancy," et cetera. Will the entire Center move into the new building, or is this to supplement your existing structures?

Mr. KLEINJANS. This is in addition to our existing structures.

Mr. SLACK. On page 335 of the justifications you state, and I quote: This level of funding is necessary to respond to the increased United States and international interest in the Center due to incorporation and construction of the new program building.

Does this mean that the $1 million increase in this budget is required because of the new building?

Mr. KLEINJANS. No; it does not.

EAST-WEST CENTER PARTICIPANTS

Mr. SLACK. Last year at this point, I believe you provided us with a chart showing the number of participants by country. Do you have an updated chart at this time?

Mr. KLEINJANS. Yes; we do.

Mr. SLACK. Without objection, we shall insert at this point in the record the "East-West Center Current Participants by Country, July 1, 1974 to June 30, 1975."

[The chart follows:]

PORTION OF BUDGET FOR STUDENTS

Mr. SLACK. What portion of your budget actually goes to students? Mr. KLEINJANS. About 35.5 percent. If you will, look at the final page of the submission, sir.

Mr. SLACK. Page number-?

Mr. KLEINJANS. No. 340. Under the 1977 estimate, $3,554,738 of the total $10 million requested is for scholarships and grants.

APPORTIONMENT OF FUNDS

Mr. SLACK. Doctor, would you advise the committee how you go about apportioning your budget among the various institutes and programs?

Mr. KLEINJANS. Yes. Basically, we go through a program planning and budget review process with the various institutes appearing before me and presenting their proposed programs. We have a set of criteria which forms the basis for our assessment of the merit of projects being proposed. The first consideration then is whether or not the proposed projects meet these East-West Center criteria.

Second, we look at the institutes and try to assess their ability to initiate and implement the programs proposed.

Third, we evaluate the previous accomplishments of the institutes with similar programs. We also take into consideration whether the programs and projects being proposed are likely to stimulate outside funding. It is on the basis of the foregoing considerations that we apportion our budget.

EAST-WEST CENTER BOARD MEMBERS

Mr. SLACK. Do you have a list of the members of the board?
Mr. KLEINJANS. Yes; we do.

Mr. SLACK. May we have that?

Mr. KLEINJANS. I don't know if we have that with us. We will supply it.

Mr. CEDERBERG. Will you tell us who they are?

Mr. SLACK. Read it into the record at this point, if you will.
Mr. KLEINJANS. I can give it from memory.

Mr. CEDERBERG. That is all right.

Mr. KLEINJANS. Appointed by the Secretary of State were five: the former Senator William Fulbright: Dr. Eleanor Sheldon, the president of the Social Science Research Council in New York; Dr. Lucien Pye, professor at the Massachusetts Institute of Technology; Mr. John MacIver, an attorney from Milwaukee, Wis.; and Mr. Edgar Kaiser, an industrialist from San Francisco.

Appointed by the Governor of the State of Hawaii, were five also: Mr. Herbert Cornuelle, the president of the Dillingham Corp.; Mr. Kenneth Char, the president of Aloha Airlines: Dr. George Kanahele. a local industrial consultant: Dr. Mary Bitterman, the director of Hawaii Educational Television; and Mr. Russell Okata, the associate director of the Hawaii Government Employees Association.

These appointees, and the ex officio members of the board which I will also name, in turn elected five other members. The five elected members are: Masary Ibuka, chairman of the board of the Sony