DEPARTMENTS OF STATE, JUSTICE, AND COMMERCE, THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS FOR 1977

DEPARTMENT OF STATE

THURSDAY, FEBRUARY 26, 1976.

SECRETARY OF STATE

WITNESS

DR. HENRY A. KISSINGER, SECRETARY OF STATE

Mr. SLACK. The committee will please come to order.

We are honored to have with us this morning the distinguished Secretary of State, Hon. Henry A. Kissinger.

Mr. Secretary, you may proceed in the usual fashion, off the record, to describe the problems which confront you and the country today. [Remarks off the record.]

Mr. SLACK. If there are no further questions, we will go back on the record.

Thank you, Mr. Secretary, for your highly informative and interesting session this morning on the state of the world.

THURSDAY, FEBRUARY 26, 1976.

SALARIES AND EXPENSES

WITNESSES

LAWRENCE S. EAGLEBURGER, DEPUTY UNDER SECRETARY FOR MANAGEMENT

JOHN M. THOMAS, ASSISTANT SECRETARY FOR ADMINISTRATION DANIEL L. WILLIAMSON, DEPUTY ASSISTANT SECRETARY FOR BUDGET AND FINANCE

DON C. ELLER, DIRECTOR, OFFICE OF BUDGET

ROGER B. FELDMAN, DEPUTY DIRECTOR, OFFICE OF BUDGET

Mr. SLACK. The first item to which we shall direct our attention is entitled "Salaries and Expenses," on page 13 of the committee print and beginning on page 4 of the justification book. This page we shall insert in the record, together with page 5 through 175.

[The justification pages referred to follow:]

(1)

EXPLANATION OF LANGUAGE CHANGE

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

Salaries and expenses:

For necessary expenses of the Department of State, not otherwise provided for, including expenses authorized by the Foreign Service Act of 1946, as amended (22 U.S.C. 801-1158), and allowances as authorized by 5 U.S.c. 5921-5925; expenses of binational arbitrations arising under international air transport agreements; expenses necessary to meet the responsibilities and obligations of the United States in Germany (including those arising under the supreme authority assumed by the United States on June 5, 1945, and under contractual arrangements with the Federal Republic of Germany); hire of passenger motor vehicles; services as authorized by 5 U.S.C. 3109; dues for library membership in organizations which issue publications to members only, or to members at a price lower than to others; expenses authorized by section 2 of the Act of August 1, 1956 (22 U.S.c. 2669); as amended; refund of fees erroneously charged and paid for passports; radio communications; payment in advance for subscriptions to commercial information, telephone and similar services abroad; care and transportation of prisoners and persons declared insane; expenses, as authorized by law (18 U.S.C. 3192), of bringing to the United States from foreign countries persons charged with crime; expenses necessary to provide maximum physical security in Government-owned and leased properties abroad; and procurement by contract or otherwise, of services, supplies, and facilities, as follows: (1) translating, (2) analysis and tabulation of technical information, and (3) preparation of special maps, globes, and geographic aids; administrative and other expenses authorized by section 637 (b) of the Foreign Assistance Act of 1961. as amended (2? U.S.C. 2397(b)), and by section 305 of the Mutual Detense Assistance Control Act of 1951. as amended (22 U.S.c. 1613(d)); $425,400,000 $539,800,000: Provided, That passenger motor vehicles in possession of the Foreign Service abroad may be replaced in accordance with section 7 of the Act of August 1, 1956 (22 U.S.C. 2674), and the cost, including the exchange allowance, of each such replacement shall not exceed $4,900] $6,500 in the case of the chief of mission automobile at each diplomatic mission (except that four such vehicles may be purchased at not to exceed $9,000 each) and such amounts as may be otherwise provided by law for all other such vehicles, except that right hand drive vehicles may be purchased without regard to anv maximum price limitation otherwise established by law: Provided further, That in addition,

this appropriation shall be available for the purchase (not to exceed thirty-three),

replacement, rehabilitation, and modification of passenger motor vehicles for pro-
tective purposes without regard to any maximum price limitations otherwise established
by law.

The change reflects an increase in the limitation on passenger motor vehicles. The $4,900 limitation in the
case of the Chief of Mission automobiles has been in effect since 1973, Recent price increases have
affected tho Department's ability to purchase Type IV medium sedans suitably equipped to meet security
and other highly essential needs for operations abroad. The acquisition of these vehicles within the
current ceiling has become a problem within the past year in that one of the manufacturers has refused
to offer vehicles. Other manufacturers are expected to follow this pattern of refusal by 1977.
Congress has recognized the increasing cost factor for motor vehicles through the enactment of legislation
which: (1) permitted the purchase of additional systems and equipment above the statutory price limita-
tion (P. L. 91-423); and (2) increased the general purchase price limitation for sedans from $2,100 to
$2,700 (P. L. 94-91). Neither of these laws provide relief for the purchase of Chief of Mission sedans
which include as part of the basic vehicle most of the additional systems and equipment that are addable
options to a regular type sedan.

The proposed limitation of $6,500 should allow uninterrupted procurement through FY 1979, assuming annual increases in the range of 7%. This is based on the upward movement (about 6%) of basic vehicle wholesale prices from the 1975 to the 1976 model year.

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Assignment