SECTIONAL ANALYSIS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP59-00224A000100490010-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 9
• Document Creation Date: November 17, 2016
• Document Release Date: July 31, 2000
• Sequence Number: 10
• Content Type: MISC

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SECTIONAL ANALYSIS
Section 1 (State Department Proposal)
P.L. 1+02 now authorizes three 'means" to be used by the educational exchange
service in cooperating with other nations to achieve the objectives of the Act.
This adds a fourth authorizing the development of projects in these fields.
It has been found that the continuity of carefully planned educational
exchange projects engender binational support and cumulative effectiveness which
cannot be gained from single isolated exchanges.
This proposal would permit the establishment of Chairs in American Studies in
educational institutions abroad utilizing American and American trained professors.
This provision would also permit the arranging for special seminars abroad.
This would enable the bringing together of groups of American professors, lecturers
and researchers, already abroad under this program or the Fulbright program, for
the purpose of presenting an intensive course in various phases of American
subjects.
These special conferences would be attended by foreign nationals who had been
exchange visitors under the program, as well as some foreign nationals who had not
had such an experience. For the former, this would be a "refresher" or ''follow-up,
session where they could in a sense recharge their batteries and continue to shine
brightly as advocates, among their people, for the things achieved through their
experiences in the United States. For those attending such sessions wtio have not,
and in many instances cannot, become exchangees, it will give them an Insight into
American studies and American educational techniques. For example, a group of
foreign high school teachers of American history or English could attend such
sessions, even though they might not be able to come to this country under this
program. The cost would be small when compared with the cost of bringing them to
this country.
It should be noted that the various provisions granting new authority which
will require the expenditure of funds are all permissive in nature. No additional
funds are to be requested by the Department for the implementation of the new pro-
visions during fiscal year 1958, but certain changes will be made in programming
to permit the use of some funds for the new activities. The estimated costs of
each amendment, based on the planned program for 1958, are indicated a; the end of
the sectional analysis.
Section 2(a) (State Department Proposal)
Section 2(a) provides for the orientation of foreign nationals, it this
country, who are not exchangees under the Government program. Orientation is now
given to Government grantees. This would enable the same thing to be tione for
persons in this country under private programs, when such programs are similar to
the one conducted by the Government under this Act and the orientation will help to
accomplish the objectives of this Act. The Government can take advantage of the
presence of such persons in this country and, at relatively small expense, give
them something that will make them more effective witnesses for the United States
when they return home.
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Section 2(b) (State Department Proposal)
Section 2(b) will permit the Secretary to arrange for the attendance of
nationals of cooperating countries at institutions of learning or places of study
in any cooperating country.
This would be done sparingly, but situations arise where an activity of this
type would be extremely helpful and most effective. For example, the Department
might want to bring together a group of Latin American English teachers in say,
Quito, Ecuador, to take an intensive course under American professors in the
teaching of English as a foreign language.
The Department might find it desirable to bring together nationals of several
Asiatic countries at the University of the Philippines for courses in American
literature, American history, etc., either under American professors or under
Filipino professors who had American training.
This provision would also permit the sending of nationals of other countries tc
such fine American schools as the American University of Beirut or Robert College.
This is now permissible under the Fuibright Act and the Department feels it should
also be authorized under the Smith-Mundt Act.
Section 3, Item 1 (State Department Proposal)
Item (1) of Section 3 will permit officers of State universities and land
grant colleges to be considered for appointment to the U. S. Advisory Commissions.
It is believed that such persons should be eligible. The inclusion of the pro-
vision would improve and simplify the procedures for the selection of persons for
the Commissions in that it would enlarge the field from which members could be
chosen and would make it unnecessary to examine State constitutions and statutes
before selections are made from certain educational institutions. The members of
these Commissions are appointed by the President and confirmed by the Senate.
This will solve a problem that exists, especially in connection with the
membership of the Commission on Educational Exchange.
Section 3, Item 2 (USIA proposal)
Item (2) of this section adds a new sentence to be added to section 602(a) of
the Act to increase the membership of the Commission on Information from 5 to 7.
The increased membership will provide a broader representation of American
experience, knowledge and pursuits on the Commission.
Section 4 (Joint USIA and State Proposal)
The change in section 603 of the Act would permit both Advisory Commissions to
report to the Congress annually rather than semi-annually as now required. In
general, reporting on an annual basis would produce reports that would be more
complete and meaningful because the programs are planned and administered in terms
of one or more years. A period of one year is required to complete a single cycle.
This change would not preclude the submission of interim reports, however, as a
given situation might require.
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Section 5(State Department Proposal)
Section 5 authorizes the Secretary of State to utilize Binational Commissians,
created under the Fulbright Act, in administering the programs authorizrd in the
Smith-Mundt Act. No authority is requested for creation of any new conViissions.
The use of the existing commissions in countries where programs are conducted under
both acts will assure maximum coordination and acceptability of the eomhined pro-
gram in the host country, at a minimum of additional expense under this Act. The
budget of these commissions is subject to the approval of the Secretary of State.
Section 6, Item 1 (Joint USIA and State Proposal)
Section 6 amends section 801(6) of the Act so as to authorize the calling of
meetings to obtain advice and assistance of private and public educational institu1..
tions and other similar organizations. This would permit better cooperation between
governmental and non-governmental programs so that the effectiveness of both would
be increased, especially in the exchange of persons area. Persons attending such
meetings at the invitation of the Government would not require full field investiga-
tions of the kind conducted for persons employed or assigned to duty. gaxch investi-
gations are not considered necessary since the persons attending would serve in
advisory capacities only and would not have access to classified material.
There is general authority now under which individuals may be brought in for
consultation and advice, but specific authority as a part of this Act would be
extremely helpful in attracting the type of individuals needed for this program.
Section 6. Item 2
Section 6 further amends section 801(6) of the Act so as to authorize an
increase from $10 to $15 in the per diem rates payable to members of advisory com-
missions and committees. Such persons serve without compensation. The 415 rate
conforms to the general rate now prescribed for consultants and others serving
without compensation. The authority requested would bring these commission and
committee members under the general legislation prescribing rates of per diem for
experts and consultants serving the Government without compensation.
Section 7, Item 1 (USIA Proposal)
This section will permit the Information Agency to give assurances to private
parties that assistance they render to the information program will not result in
loss or damage to them.
For example, the Agency frequently borrows paintings and other art objects
from private parties for distribution in its exhibits program. Naturally, It must
give the owner assurance that, in case of loss or damage, he will be made whole.
The estimated cost of purchasing insurance to cover borrowed paintings and
other objects for exhibit would be less than $25,000 per year. The Agency also
finds from time-to time that prospective distributors and exhibitors of its films
or kinescopes want the Agency's protection against claims by persons subs?=quently
asserting ownership of rights in the films or kinescopes. This latter is an
especially difficult situation because the intangible rights in motion pictures,
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kinescopes and similar properties are manifold and exceedingly complicated and it
is frequently necessary for the Agency to use materials in which full rights cannot
be obtained or where the exact rights acquired by the Government cannot 10e
ascertained.
The Agency is not able to estimate the extent of the liability which might be
incurred by it under contracts indemnifying exhibitors of its films against third
party claims. However, the Agency would not employ such contracts of indemnity
except in unusual situations where the financial risk of the United States was out-
weighed by the benefits to be dierived?from the film showings. Few such situations
are anticipated.
Section 7, Item 2 Joint USIA and State Proposal)
Section 7 further provides authority for payment of emergency medical expenses
for alien employees and participants in the program. The lack of authority to pay
such expenses in emergency cases has given rise to serious problems.
Under the exchange program, foreign participants are really guests oa this
Government while in this country and the inability of the Government to meet their
emergency hospital and medical expenses, which the individuals often are unable to
meet, places them in an embarrassing position. The same is true of American
participants abroad. Authority is requested also to pay the expense of travel
incurred by reason of illness. In a number of instances, participants in the
program have suffered mental or physical disorders that require their return home
accompanied by an attendant. The proposed provision would permit payment of travel
costs incurred under such circumstances.
It has been the policy of the Information Agency to bring selected local em-
ployees (foreign nationals) to the United States for orientation and indoctrina-
tion, and on occasion, it is necessary to send alien employees away from their
homes or countries of residence to other countries on temporary duty. In the past,
there has been no provision permitting the Agency to provide hospitalizati.)n and
medical care for these alien employees in cases where they become ill while on
assignment away from home. In the interests of good public relations and personnel
policy, it is thought desirable that the Agency, in its discretion, be authorized
to provide such care.
Section 7 further provides authority for the Information Agency to pay travel
expenses of alien employees and their dependents, when such aliens are required
for work in the U.S. or in countries other than their native ones.
At present, the Act does not permit the Agency to pay transportation expenses
for dependents of these employees. When the information program was conducted by
the Department, special authority to do this was available in the Department's
annual appropriation acts. But, for unspecified reasons, such authority has been
left out of the annual appropriation acts for the Agency. As a result, the Agency
is presently in the difficult position of trying to hire persons native to other
countries for essential positions in the United States without being able to pay the
expenses of transporting their families to the United States. This limitation has
created great difficulties in securing necessary foreign nationals, particularly
those with language skills required by the Far East Division of the Voice of America
for its broadcasting operations in Far Eastern languages.
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Section 8 (State Department Proposal
Section 8 of the bill amends section 902 of the Act to permit the acceptance
of funds from international organizations of which the United States is a member
for operation of programs authorized by the Act. Authority now exists for the
acceptance of such funds from foreign governments. The additional authority is
needed to permit this Government to assist in administering some of the fellowship
programs of the United Nations. The funds would be accepted and used for only those
specific projects for which they are made available by such organizations.
For example, under the United Nations Fellowship Program, a grantee from India
seeks training of the type given in the Bureau of Standards. United Nations has
the funds to pay for such training, but authority is needed to accept and use the
funds.
This would grant such authority and would permit handling the project in the
same way it would be handled had the request for training come directly from the
Government of India.
Section 9State Department Proposal)
The change proposed in section 1008 would permit the Secretary of State to
report to the Congress on the educational exchange program annually. He is now
rdgiired to report semiannually. Since a year is required to meet a complete cycle
of the exchange program, reports presented on this basis would be more complete and
more meaningful.
Section l0, New Section 1012 (Joint State and USIA Proposal)
The new section 1012 permits the Secretary of State and the Director of the
U. S. Information Agency to settle meritorious claims arising from activities of
this Government in foreign countries. The expeditious settlement of such claims
will aid immeasurably in maintaining and promoting friendly relations abroad.
The authority set out in the proposed new section 1012 for the settlement of
claims abroad is patterned on the authority presently available to the Armed Ser-
vices (31 USC 224(d)). The Department of State has very limited authority to
settle tort claims abroad which is based on the domestic tort claims law (28 USC
2672 . The Agency relies upon the language in its appropriation acts authorizing;
settlement of claims arising out of torts occurring in other countries in
accordance with the domestic tort claims law. The domestic law authorizer. only
settlement of claims up to $1000 for which the United States, if a private party,
would have been liable under the law of the place where the tort occurred. This
language makes the law difficult to apply abroad because of the great variation in
notions of legal liability among different countries abroad, whose legal systems
differ widely from the common law system in the United States. As a result, the
Agency has been confronted with most difficult. problems in connection with several
claims which were border-line from the viewpoint of technical, legal liability but
which did create substantial inequity.
The new provisions will also tend to reduce the number of cases in which
American employees of the Department and the Agency, whose actions cause :4ijuries
or damage to the citizens of foreign countries, will be sued in foreign courts.
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In view of the nature of the U. S. Information Agency operations and its
special duty to create the best relations for the United States among fore5..gn
peoples, it is important that the Agency be able to settle and pay just elftims of
foreign nationals arising out of the actions of its agents and employees.
Section 10, New Section 1013 (USIA Proposal)
General. The authority of this section will enable the Agency to estblie12
a career personnel system for the Agency's professional overseas officers, and en-
able the Agency to recruit and retain the best qualified persons available for
its overseas service. Under its present authority, the Agency is limited to the
appointment of Foreign Service Reserve and Staff officers for its Foreign Service.
When the Agency was established, it was recognized that this limited personnel
authority granted to the new Agency under Reorganization Plan No. 8 and imple-
menting Executive orders was not adequate. In the message he sent to the Congress
with the Reorganization Plan, the President said:
"While these tpersonneJ arrangements will enable the new
Agency to function with reasonable effectiveness from the
outset, I do not consider them permanently suitable."
Professional overseas personnel of the Agency work with and under thf: same
conditions as Foreign Service Officers of the Department of State in our diplomatic
and consular establishments abroad. This section proposes, therefore, that, with
certain stated exceptions, career officers of the Agency be made subject n.o the
provisions of law which apply to Foreign Service Officers. Thus professional of-
ficers of both the Department of State and the Agency who work together wider the
same conditions in overseas establishments will be assured equality of treatment.
Also, by applying the Foreign Service Officer system to the new career personnel
system of the Agency, the Agency will be able to profit from the years of experience
of the Department in administering the Foreign Service Officer Corps.
Subsection (a). The new category of officers to be established by the legis-
lation will be known as U. G. Information Officers who will be required to pass
examinations and meet qualifications and standards for appointment substaatially
equivalent to those required for Foreign Service Officers under the Act. Suf-
ficient flexibility is provided in this subsection to permit the Agency to tailor
its examinations to selection of officers with specific qualifications required by
the program.
Subsection (b). Certain of the laws applicable to Foreign Service Officers
are not pertinent to USIO's. Laws which pertain, for example, to Chiefs of
Missions, Career Ambassadors or Career Ministers have no direct application to
USIO's as such. This subsection, therefore, specifies the statutory authorities
available to the Secretary of State which are not made available to the Director
with respect to USIO's. The Director is not authorized by this section to appoint
Foreign Service Officers or Consular Agents.
Certain authorities of the Foreign Service Act which are vested in t;he Presi-
dent, such as authority to regulate allowances and post differentials, have been
delegated by Executive order to the Secretary of State. These delegated authorities
of the Secretary of State are not made available to the Director under this section.
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The Director will continue to have the authorities made available to him by the
President under Executive orders implementing Reorganization Plan No. 8 which
established the Agency.
Subsection (c). Two boards are established by subsection (c) to perform with
respect to Agency Foreign Service personnel the functions vested by the Foreign
Service Act in the Department of State Board for the Foreign Service and the Board
of Examiners. The boards will perform functions with respect to all categories of
Agency Foreign Service personnel as in the case of their counterparts in the-
Department.
Subsection (d). Under subsection (a), USIO's will be eligible to be commis-
sioned as diplomatic or consular officers, or both, and for assignment to serve
under such commissions in any diplomatic or consular capacity other than as a
Chief of Mission. This subsection merely establishes procedures for commissioning
and assigning USIO's in a diplomatic or consular capacity which will be the same
as those now followed by the Agency and the Department of State in commissioning
and assigning Foreign Service Reserve and Foreign Service Staff Officers of the
Agency. No change in.tpresent arrangements is contemplated.
Under these procedures, the Director, when he considers it necessary to carry
out the Agency's functions, will request the Secretary of State to recommends, to the
President that USIO's be commissioned as diplomatic or consular officers, or both,
by and with the advice and consent of the Senate, or to assign USIO's so cotcanis-
sioned to serve in a diplomatic or consular capacity. In this way, the Secretary
of State retains responsibility for commissioning Agency personnel and for their
assignment to. serve under their commissions in diplomatic or consular capacTi.ties.
The Director retains authority over assignment and transfer of USIO's in other
than diplomatic or consular capacities.
Subsection (e). Under subsection (a) of this section, USIO's will be Subject
to a retirement system established pursuant to the provisions of Title VIII of the
Foreign Service Act which sets up a retirement system for Foreign Service Officers.
The Agency would be required to follow all the provisions of the Foreign Service
Act relating to retirement. This subsection makes it clear that the Agency will
establish and administer an independent retirement fund on behalf of its USIO's,
rather than participate in the State Department Fund. In setting up its sy-,tem,
the Agency will be guided by the experience of the Department of State and will
follow to the greatest possible extent the regulations of the Department relating
to its retirement system.
Subsection (f). To the extent that its needs will permit, the Agency intends
to take advantage of the experience of the Department in the administration of the
Foreign Service Officer Corps and to pattern its regulations after those of the
Department. The Agency will continue to be bound by Government-wide regulations
relating to allowances issued by the Department. Close coordination will b?
maintained with the Department in regard to such matters as policies and pr~cedurres
with respect to appointments, promotions, assignments and separations. The Agency
Board of the Foreign Service which is responsibile for making recommendations to
the Director on these matters will include a member designated by the Secretary of
State.
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Subsection . Title VII of the Foreign Service Act is concerned with the
establls-hment and operation of the Foreign Service Institute and with the gsneral
training and development of the personnel of the Service. This subsection makes it
clear that the Agency will not have authority to establish a Foreign Service
Institute to parallel that of the Department of State. The Agency will continue to
make use of the facilities of the Foreign Service Institute of the Department
under appropriate financial arrangements and will use those provisions of Title VII
which pertain to training and development of Foreign Service Personnel in training
and developing its USIO?s. The provisions of Title VII which pertain to training
and development of Foreign Service Reserve and Foreign Service Staff Officers are
now available to the Agency under Reorganization Plan and Executive Order 10477.
Subsection (h). This subsection is intended to place on record that the
enactment of the legislation is not to be construed as making permanent the separa-
tion of the information program from the Department. The overall effect of the
section is to establish in the Agency a personnel system which will parallel that
of the Department of State. The existence of parallel personnel systems wo,ild
simplify the return of the program to the Department of State if such course should
be decided upon.
Section 10, New Section 1014 (USIA Proposal)
The proposed section 1014 changes the name of the U. S. Information Agency to
the U. S. Information Service. The reason for this proposal is that the overseas
information offices and personnel of the United States have functioned for number
of years under the name of the "United States Information Service". After estab-
lishment of the United States Information Agency under that name by Reorganization
Plan No. 8 of 1953, it was decided to preserve the title "United States Information
Service" for all overseas operations of the Agency, because that name (USIS) had
become so well known in foreign countries. Unfortunately, the existence of two
names for the Agency has caused considerable confusion. It is not clear to many
whether there is one Agency or two,, or what the relationship is between USI.3 and
USIA. To eliminate this confusion and cumbersomeness, it is considered important
to bring the domestic name of the organization into conformity with the nam3 by
which it is already so well known overseas--the "United %tates:.information ')-ervice"
-so that operations may be carried on under a single name both domestically and
abroad.
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Estimated Costs of Proposals (State Department and USIA)
Section 1: Estimated cost (Department) - $100,000
Section 2(a): Estimated cost (Department) - $486,500
Section 2(b): Estimated cost (Department) - $8+7,000
Section 3, Item 1: No additional cost
Section 3, Item 2: Estimated cost (USIA) - $1000
Section 4: Estimated cost - A small saving would result
Section 5: No additional cost
Section 6(a): Estimated cost (Department) - $17,000
(USIA) - $ 1,000
Section 7, Item 1: Estimated cost (USIA) - $25,000
Section 7, Item 2: Estimated cost (Department) - $25,000
(USIA) $ 2,000
Section 8: No additional cost
Section 9: No additional cost
Section 10, New Section 1012: Estimated cost (Department and USIA) - $).2,00X)
Section 10, New Section 1013: Estimated cost (USIA) - $125,000
Section 10, New Section 1014: No additional cost
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