FURTHER AMENDING THE U.S. INFORMATION AND EDUCATIONAL EXCHANGE ACT OF 1948

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• Publication Date: July 19, 1972
• Content Type: OPEN

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92n CONGRESS HOUSE OF REPRESENTATIVES REPORT
2d Session No. 92-1225
FURTHER AMENDING THE U.S. INFORMATION AND
EDUCATIONAL EXCHANGE ACT OF 1948
JULY 19, 1972.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. MORGAN, from the Committee on Foreign Affairs, submitted the
following
REPORT
The Committee on Foreign Affairs, to whom was referred the bill
(S. 3645) to further amend the U.S. Information and Education Ex-
change Act of 1948, having considered the. same, report favorably
thereon without amendment anal recommend that the bill do pass.
PURPOSE OF THE BILL
The purpose of S. 3645 is to authorize an appropriation of $38,520,-
000 for fiscal year 1973 to the Secretary of State to provide grants,
under such terms and conditions as he considers appropriate, to
Radio Free Europe and Radio Liberty.
The bill also provides that except for funds appropriated pursuant
to the authorization contained therein, no funds appropriated after
the date of this act may be made available to, or for the use of Radio
Free Europe or Radio Liberty in fiscal year 1973.
In effect, the bill merely reaffirms the action of the House on
November 19, 1971, when, by a vote of 271 to 12, it approved a
2-year authorization for Radio Free Europe and Radio Liberty. The
amount approved at that time for fiscal year 1973 was identical to
the amount proposed in S. 3645. In the conference earlier this year,
however, the fiscal year 1973 authorization was eliminated, neces-
sitating the enactment of a separate authorization for the year
beginning July 1, 1972.
COST ESTIMATES
Pursuant to clause 7 of rule XIII of the House rules, the committee
has examined the Executive request for $38,520,000 to finance the
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two broadcasting activities in fiscal year 1.973 and recommend that
the full amount be authorized. Inasmuch. as President Nixon. an-
nounced on May 10 that he plans to appoint a Presidential Study
Commission to study and make recommendations with respect to
future funding of Radio Free Europe and Radio Liberty, and since
such Commission's findings and the executive branch recommenda-
tions will be subject to further consideration by the Congress, it is
not possible at this time to make any projection beyond fiscal year
1973.
COMMITTEE ACTION
On May 10, 1972, the Executive forwarded to the Speaker of the
House Executive Communication 1965 which was subsequently
referred to the Committee on Foreign Affairs. The Executive Com-
munication reads as follows:
1301), CARL ALBERT,
Speaker of the House of Representatives,
Washington, B. C.
DEAR MR. SPEAKER: There is transmitted herewith for the consid-
eration of the House of Representatives, a proposed bill for the author-
ization of U.S. Government grants to Radio Free Europe and Radio
Liberty for fiscal year 1973. It may be noted that this proposed bill
is, in effect, an extension of Public Law 92-264 which was signed by
President Nixon on March 30, 1972.
We propose the extension of this legislation because we believe the
broadcasting activities of these two organizations should be continued
and that it is in the interest of the U.S. Government to support them.
The bill is proposed in this form because it would appear from the
legislative history of Public Law 92-264, that it is the form which
most nearly meets the wishes of the Congress.
The bill is submitted at this time in order that the Congress may
carry out its intention, expressed in the report of the Joint Conference
Committee, to give consideration to this legislation prior to the end
of the current fiscal Year.
The Department has been advised by the Office of Management
and Budget that this bill is in accord with the President's program.
Sincerely ti onrs,
DAVID M. ABSHIRE,
Assistant Secretary for Congressional Relations.
Enclosure: 1. Draft bill.
A BILL To further amend the United States Information and Educational
Exchange Act of 1948
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress Assembled, That
Section 703 of the United States Information and Educational
Exchange Act of 1948 is hereby amended to read as follows:
SEc. 703. There are authorized to be appropriated to the
Secretary of State $38,520,000 for fiscal year 1.973 to provide
grants, under such terms and conditions as the Secretary
considers appropriate, to Radio Free Europe and Radio
Liberty. Except for funds appropriated pursuant to this
II. Kept 92-1225
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section, no funds appropriated after the date of this Act may
be made available to or for the use of Radio Free Europe or
Radio Liberty in fiscal year 1973.
This draft was introduced as H.R. 15002 by Hon. Thomas E.
Morgan, chairman of the committee, on May 16, 1972.
Before the committee could act on this measure, the Senate passed a
companion bill, S. 3645.
The committee considered both bills in an executive session on
July 19, 1972 and, by a voice vote, ordered S. 3645 reported to the
House with the recommendation that it do pass.
13ACKGROUND
Radio Free Europe (RFE) and Radio Liberty (RL) have operated
since the early post-World War II period, the former broadcasting to
Eastern Europe, the latter to the Soviet Union. Until fiscal year 1972,
the funding of these operations came primarily from the Central
Intelligence Agency, although Radio Free Europe received some
support from private sources. Continued funding from CIA sources
was denied both organizations by the Congress in fiscal year 1972.
On May 1.9, 1971, the Executive forwarded to the Speaker of the
House, Executive Communication 740, together with a draft bill which
provided for the establishment of an American Council for Private
International Communications, Incorporated, to grant support to the
activities of private American organizations engaged in the field of
communication with foreign peoples-including Radio Free Europe
and Radio Liberty. The draft was introduced as H.R. 9637 by Hon.
Thomas E. Morgan, chairman of the committee, on July 7, 1971.
On August 2, 1971, the Senate approved a bill, S. 18, which author-
ized an appropriation of $35 million for fiscal year 1972 to the Secretary
of State for grants to Radio Free Europe and Radio Liberty.
On September 14 and 21, 1971, the Committee on Foreign Affairs
held hearings on the several legislative proposals relating to the
funding of Radio Free Europe and Radio Liberty. On September 30,
1971, by a vote of 23 to 1, the committee ordered reported S. 18 with
an amendment in the nature of a substitute for the Senate language.
As amended, S. I8 provided for the establishment of a Commission to
review and evaluate the activities of Radio Free Europe and Radio
Liberty, and authorized appropriations of $36 million for fiscal year
1972 and $38.5 million for fiscal year 1973 to the Chairman of the
Commission for grants to the two radio stations.
On November 19, 1971, by a vote of 271 to 12, the House approved
S. 18, as amended.
After a prolonged deadlock, the conferees agreed to the Senate
version of S. 18 which became Public Law 92-264.
On May 10, 1972, President Nixon issued the following statement:
Under Public Law 92-264, which I signed on March 30, 1972,
grants in support of Radio Free Europe and Radio Liberty were
authorized through the end of fiscal year 1972.
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The decision to continue Government support for these radios was
approved by large majorities in Congress and reflects the judgment
that has been expressed overwhelmingly by newspapers throughout
this country and by leading citizens in all walks of life that Radio
Free Europe and Radio Liberty continue to perform a unique and
valuable service. As I stated in a recent letter to the Chairman of the
Radio Free Europe Fund, "* * * we have followed. closely the work
of RFE and are satisfied that it continues to serve a fundamental
national interest." I also said that "* * * the free flow of information
and ideas among nations is indispensable to more normal relations,
between East and West and to better prospects for an enduring
peace."
I have therefore asked the Secretary of State to submit today a bill
which would continue Government support to the radios through
fiscal year 1973. As with the fiscal year 1972 authorization, this bill
would make the grants to the radios through the Secretary of State
under such terms and conditions he deems appropriate.
A number of different views have been expressed in Congress as
to how the radios might best be funded for the future. No consensus
on this important matter has emerged. The House version of the
fiscal year 1972 authorization and Senate Resolution 272 make clear
that majorities in both Houses believe this should be given further
study before a definitive solution is adopted.
To this end, I plan to appoint it Presidential Study Commission
with instructions to render its report and recommendations by
February 28, 1973, so that the administration and Congress can take
them into consideration in formulating authorizing legislation for
fiscal year 1974. In making its study, the Commission will be par-
ticularly concerned to consult exhaustively with Members of Congress.
In undertaking this task, the Commission will have the benefit
and will take full account of the in-depth studies of each radio that
were prepared by the Congressional Research Service at the request
of the Senate Foreign Relations Committee together with companion
studies recently completed by the General Accounting Office. Two
subsequent studies by the Congressional Research Service-one a
survey and analysis of the available options with respect to future
funding methods and the other an examination of the foreign policy
aspects of these broadcasting operations-will also materially assist
the Commission.
It is evident that the choice of the method or mechanism for future
funding of the radios must depend upon a proper perception of the
relationship of those operations to the national interest and specifically
to this nation's foreign policy objectives. In my view, that relation-
ship exists for one fundamental reason, but one reason only: namely,
that it has always been and must always be part of our national pur-
pose to promote free, responsible communication among nations, not
just at the governmental level, but at all levels. Thus, these radios
are not spokesmen for American official policy-that role belongs in
broadcasting to the Voice of America. Rather, they are expressions of
our profound conviction that a responsible, independent and free press
plays an indispensable part in the social and political processes that
look to better understanding and more effective cooperation, not only
within a nation, but also among nations.
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It is this conception, I believe, that lies at the base' of the article
of the Universal Declaration of Human Rights which declares it to
be the right of everyone "to seek, receive, and impart information and
ideas through any media and regardless of frontiers." International
broadcasting is of course only a part of that process; our international
exchange programs are another important part.
The Commission will render it great service by undertaking a critical
examination of this subject and by providing the best possible basis
for determining the methods by which support for these valuable or-
ganizations can, be maintained without impairment to the professional
independence upon which their present effectiveness depends.
While this Commission produces its recommendations, it is essen-
tial that the authorization providing support to Radio Free Europe
and Radio Liberty be extended for fiscal year 1973. While I continue
to believe that the Department of State is not the appropriate channel
for grants to the two radios, I believe that discussion of the altern-
atives should be deferred until we have the benefit of the recommenda-
tions of the Commission. I therefore strongly recommend that the bill
which we are submitting to Congress for a 1973 authorization be given
favorable consideration before the beginning of the new fiscal year.
The President's statement was followed by the submission to the
Congress of Executive Communication 1965, described earlier in
this report.
COMMITTEE COMMENTS
S. 3645 is a stop-gap measure requested by the Executive. It pro-
vides funding for Radio Free, Europe and Radio Liberty in the same
amount which the House approved for these operations for fiscal
year 1973 on November 19, 1971. This interim authorization is
necessary to allow these activities to continue while the Commission
proposed by the President studies their relevance to the current objec-
tives of U.S. foreign policy and submits its recommendations regarding
the method of future funding.
During the past 20 years, the United States has committed several
hundred million dollars to the support of Radio Free Europe and
Radio Liberty. However, since most of those funds came from covert
sources, the purposes of these two radio stations and the manner in
which they have used public moneys have not been subject to normal
congressional oversight.
The information which will be developed by the Presidential
Study Commission, together with studies already made by the General
Accounting Office and the Congressional Research Service of the
Library of Congress, should provide the Congress with the necessary
data for reaching an informed decision about the future of these
operations.
In the meantime, funding recommended in S. 3645 will permit
Radio Free Europe and Radio Liberty to maintain their program
activities at the fiscal year 1971 level. The proposed authorization
takes into consideration the rise in some costs resulting from the
recent devaluation of the dollar. As in fiscal year 1972, however, it
will not allow the stations sufficient resources to pay for
(a) Any general wage and salary increases.
(b) Contractual cost-of-living allowance increases.
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(c) Increases in housing allowance scales.
(d) Pension payments to the American pension plan.
(e) Most American home leaves.
(f) Technical modernization projects.
The committee urges that S. 3645 be approved.
BUDGET DOCUMENTS
Tables showing distribution of Radio Free Europe and Radio Lib-
erty costs by type of expense, which were submitted by the Executive
together with detailed justification of fiscal year 1973 authorization
and appropriation requests, follow:
RADIO FREE EUROPE--DISTRIBUTION OF COSTS BY TYPE OF EXPENSE
[Dollar amounts in thousands]
Increase or
1971 actual t 1972 estimate 1973 estimate decrease
Num-
ber
OPERATING EXPENSES
Personnel compensation:
Permanent positions and annual
rate-------------------------
Deduct lapse--------------------
Total, permanent positions and
1,647
-19
annual rate_________________ 1,628
Miscellaneous salaries:
Temporary and part-time
employment---- _ 9
Overtime, premium and other
pay-----------------------------
Total, miscellaneous
salaries-------------- 9
Severance payments_____________________
Total, personnel compensation
and benefits________________ 1,637
Employee benefits:
Taxes--------------------
Pension and insurance ---------------
Benefits for foreign service -----------
Otherbenefits------------- ___---- __
Total, employeebenefts__---------
B enefits to former personnel_________
Freelance fees for programing --------- ___
Administrative costs:
Travel-----------------------------
Rents------------ -------------------
Contractural services and other
expenses----------------------------
Licenses, royalties, and copy-
rights-------------------- . -------
Technical-----------------------------
News and information________________
Entertainment --------------------------
Conferences---------------------------
Gen era[ and administrative_______ _______
Total administrative costs--------------
Capital expenses--------------------------
Total operating expenses------- 1,637
Amount
Num-
ber
Amount
Num-
ber
Num-
Amount ber Amount
$10,917
1,640
$11,743
1,635
$12,292 -5 +$549
-171
-16
-176
-16
-200 ________ -24
46
9
49
9
712 -------- +78
- ------------
688
9
683
9
763 -------- +80
107
________
93
__-_____
113 -------- +20
996
1,080
1 145 -------- -65
1
484
-- -----
643
----- ___
1,646 -------- +1,003
,
415
2
--------
2,546
______--
2,797 -------- -251
,
176
--------
199
226 ________ +27
071
5
--------
4,468
--------
5,814 -------- +1,346
,
73
_____
138
__-___
153 ________ +15
508
....
497
______,_
500 -------- +3
17,193
1,633
17, 446
1,628
19,435 -5 +1,989
167
--------
130
-------
138 +8
344
-------
370
-------
386 +16
436
--------
475
___-.__
503 +28
212
--------
251
-------
285 +34
1, 070
-------
1,084
--------
1,146 ?62
282
--------
300
--------
300 ------------------
33
-------
22
--------
23 +1
39
--------
37
--------
41 +4
1,173
--------
1,167
________
1,214 +47
3,756
--------
3,836
------__
4,036 +200
260
84
---- __--
329 +245
21,209
1,633
21,366
1,628
23,800 -5 +21434
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1973 estimate
Increase or
decrease
Num-
Num-
Num-
Num-
ber
Amount
her
Amount
ber Amount
her Amount
FINANCING
Reduction of net assets_____________________
-$187
--------
-$702
------------------
+$702
Fundraising--------------------------------
-1, 271
--------
-884
-------____-------
+884
Interest and other income____________-218
-100
-_______ -$100
------------------
Subtotal ----------------------------- -1,676
--------
-1,686
------- _ --100
+1,586
1 Fiscal year 1971 data shown for comparative purposes. Radio Free Europe funds were provided through another
Government agency in fiscal year 1971.
Increase or
1971 actual 1 1972 estimate 1973 estimate decrease
Num- Num-
ber Amount her Amount
OPERATING EXPENSES:
Personnel compensation:
Permanent positions and annual
rate_________________________ 1,004 $7,984 891 $7,960
Deduct lapse___________________ -63 -471 -27 -232
Total permanent positions and
annual rate________________ 941 7,513 864 7,728
Miscellaneous salaries: Tempo-
rary and part-time employment- 16 84 12 70
Employee benefits:
Taxes------------------------------ 625 -------- 712
Pension program -------------------- 766 -------- 788
Housing and other fringe
benefits__________________________ 1,070 -------- 1,901
Total employee benefits-- 16 2,461 12 3, 401
Miscellaneous fees and profes-
sional services________________________ 595 ------451
Total personnel compensa-
tion and benefits---------- 957 10,653 876 11,650
Administrative costs:
Travel--------------------------------- 67 -------- 52
Rents and utilities_______________________ 549 -------- 643
Production________________ 117 ________ 154
Licenses------------------------------- 236 -------- 445
Technical ------------------------------ 793 -------- 832
News and information------------------- 102 -------- 88
Entertainment----------------------- 26 ------- 20
General and administrative_______________ 609 -------- 563
Total administrative costs______________ 2,499 -------- 2,797
Capital expenses_______________________121 ________ 31
Total operating expenses------ 957 13, 273 876 14, 478
Num-
Num-
ber
Amount
her Amount
891
$8,595
--------
-27
-250
----- -18
. 864
8,345
-------- +617
8
45
-4 -25
--------
757
-------- +45
--------
845
-------- +57
--------
1,178
________ - -723
8
2, 780
-4 -621
________
614
________ +163
872
11,784
-4 +134
--------
52
------------------
--------
691
-------- +48
________
36
________ -118
--------
445
------------------
--------
910
-------- +78
--------
102
-------- + 14
--------
19
-------- -1
_ -----
600
-------- +37
--------
2,855
-------- +58
________
181
-------- +150
872
14, 820
-4 +342
------ __----------------- +1,258
------------------------- +900
------------------------- ---------
Subtotal---------------------------- -1,141 ------- -2, 158 -------------------------- +2,158
Appropriation_________________________ 12, 132 -------- 12,320 -------- 14,820 -------- +2,500
FINANCING
Reduction of net assets______________________ -1, 141 -------- -1,258
Liquidation reserve applied to termina-
tion costs-------------------------------------------------- -900
1 Fiscal year 1971 data shown for comparative purposes. Radio Liberty funds were provided through another Government
agency in fiscal year 1971.
H. Rept. 92-1225
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CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3 of rule XIII of the Rules of the House
of Representatives, changes in existing law made by the bill, as re-
ported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman) :
United States Information and Educational Exchange Act of 1948
AUTHORIZATION FOR GRANTS TO RADIO FREE EUROPE AND RADIO
LIBERTY
[SEC. 703. There are authorized to be appropriated to the Depart-
ment $36,000,000 for fiscal year 1972 to provide grants, under such
terms and conditions as the Secretary considers appropriate, to Radio
Free Europe and Radio Liberty. Except for funds appropriated under
this section, no funds appropriated after the date of enactment of this
section for any fiscal year, under this or any other provision of law,
may be made available to or for the use of Radio Free Europe or
Radio Liberty.]
SEC. 703. There are authorized to be appropriated to the Secretary of
State $38,520,000 for fiscal year 1973 to provide grants, under such
terms and conditions as the Secretary considers appropriate, to Radio
Free Europe and Radio Liberty. Except for funds appropriated pursuant
to this section, no funds appropriated after the date of this Act may be
made available to or for the use of Radio Free Europe or Radio Liberty
in fiscal year 1973.
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Calendar No.814
J2D CONGRESS
?d Session
REPORT
No. 92-851
RADIO FREE EUROPE AND RADIO LIBERTY
Mr. SPARKMAN, from the Committee on Foreign Relations,
submitted the following
REPORT
The, Committee on Foreign Relations, to which was referred the
bill (S. 3645) to amend. the U.S. Information and Educational. Ex-
change Act of 1948 to provide assistance to Radio Free Europe and
Radio Liberty having considered the same, reports favorably thereon
without amendment and recommends that the bill do pass;
PURPOSE OF THE BILL
The purpose of S. 3645 is to amend section 703 of the U.S. Iuforma-
tion and Educational Exchange Act of 1948 to authorize an appropria-
tion of $38,520,000 in fiscal year 1973 for continued Government
funding of Radio Free Europe and Radio Liberty. -
The followinw tables, submitted by the executive branch, provide a
breakdown. of le. cost for the Radios:
*(Star Print) 65-oro
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RADIO FREE EUROPE-DISTRIBUTION OF COSTS BY TYPE OF EXPENSE
[Dollar amounts in thousands]
1971 I 1972
actual estimate
Number Amount Number
1973 Increase
estimate or decrease
Amount Number Amount Number Amount
7perating expenses:
Personnel compensation:
Permanent positions and annual rate ---------------------------- 1,647 $10,917 1,640 $11,743 1,635 $12,292 -5 +$549
Deductlapse-------------------------------------------------- -19 -171 -16 -176 -16 -200 -------------- -24
----------
Total, permanent positions and annual rate_____________________ 1,628 10,746 1,624 11,567 1.619 12.092 -s iFV~
Temporary and part-time employment______________________ 9 46 9 49 9 51 -------------- +2
Overtime, premium, and other pay--------------------------------------- 642 -------------- 634 -------------- 712 -------------- +78
------------------------ ------- Total, miscellaneous salaries______________________________ 9 688 9 683 9 763 -------------- +80
Severance payments--------------------------------------------------- 107 -------------- 93 -------------- 113 -------------- +20
Taxes-------------------- -------------------------------- 996 -------------- 1,080 -------------- 1,145 ---------- -- +65 1
Pension and insurance------------------------------------------------- 1,484 -------------- 643 -------------- 1,646 -------------- +1,003
Benefits for foreign service--------------------------------------------- 2,415 -------------- 2,546 -------------- 2,797 ____________ +251
Other benefits---------------------------------------------------------- 176 -------------- 199 -------------- 226 -------------- +27
-------------------------------
Total, employee benefits ---------------------------------------------- 5,071 -------------- 4,468 -------------- 5,814 -------------- +1,346
Benefits to Former Personnel -------------------------- --------------------- 73 -------------- 138 -------------- 153 -------------- +15
Free Lance fees for programing_______________________________________________ 508 497 -------------- 500 -------- ----- +3
Total, personnel compensation and benefits_____________________ 1,637 17,193 1,633 17,446 1,628 19,435 -5 +1,989
Administrative Costs:
Travel
Rents
Contractual services and other expenses_______________________________________
Licenses, royalties, and copyrights_____________________________________________
Technical
News and Information
Entertainment
Conferences
General and administrative
Total Administrative Costs -----------
------
------------ Capitalexpenses - ---------
-- ----------- --- ------------------- --- 260 --
167 -------------- 130 -------------
344 -------------- 370 --------------
436 -------------- 475 --------------
212 _ ___ 251 -----------__-
1,070 ------------- 1,084 --------------
282 -------------- 300 --------------
33 -------------- 22 -------------
39 -------------- 37 --------------
1,173 -------------- 1,167 --------------
3,836 -------------
84 --------------
Total, operating expenses ---------------------------------------- 1,637 21,209 1,633 21,366 1,628
138 -------------- +8
386 -------------- +16
503 -------------- +28
285 -------------- +34
1,146 -------------- +62
300 -------------------------
23 -------------- +1
41 -------------- +4
1,214 ______________ +47
4,036 -------------- +200
329 -------------- +245
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Financing:
Reduction of net assets -187 Fund raising------------- --- ---- - - - - - - - - - - - - - ---- - - - - ------------------------ -1,271 --------------
Interest and other income -218 --------------
Subtotal ------------- -1,676 ----------
Appropriation -------------------------------------------------19,533
-702 ------------------------------------------ +702
-884 ----------------------------------------- +884
-100 -------------- -100
--
-1 686 --------------
19,680 -------------- 23,700 ------------ -x4.020
Fiscal year 1971 data shown for comparative purpcses. Radio Free Europe funds were provided through another Government Agency in fiscal year 1971.
+1,586
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RADIO LIBERTY-DISTRIBUTION OF COSTS BY TYPE OF EXPENSES
(Dollar amounts in thousands
1971 r
actual
Number
Operating expenses:
personnel compensation:
Permanent positions and annual rate ------------------------ ---- 1, 004
Deduct Lapse-----------------------------------------
Total personnel compensation and benefits_____________________ 957
Total permanent positions and annual rate --------------------- 941 7,513 864 7,728 864
Miscellaneous salaries: Temporary and part-time employment---___- 16
1972 1973
estimate estimate
Increase
or decrease
Amount Number Amount Number Amount Number Amount
$7,984 891 $7,960 891
-471 -27 -232 -27
$9, 595 -------------- +$635
-250 -------------- -18
8,345 -------------- +617
84 12 70 8 45 -4 -25
Employee benefits:
-- - 625 -------------- 712 -------------- 757 -------------- +45
a------------------------------------------------------------------
T xes ------ - --------------------- - - - ------- --- - ------- - 766 -------------- 788 -------------- 86' -------------- -+57
723
Pension program-- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,070 - - - - - - - - - - - - - 1,901 - - - - - ------- - - 1,178 - - - - - - - - - - - - - - Housing and other fringe benefits-----------------------------------------
-
-------------
-621
Total employee benefits___-_-____-_-_.____---------- 16 2,461 12 3,401 8 2,780 -4
595 - --- --- - ----- - 451 - -- ----- - - - - - 614 - -- - - -- --- - - - - +163
Miscellaneous fees and professional services ------------------------------------
4 x-134
10,653 876 11,650 872 11,794 -
Administrative costs: 52 ______________
Travel----- - ------------ 67 ------------
--------------------------------------------- ---- 643 -------------
Rentsandutilities__________ 549 -------------- 643
117 -------------- 154 ------------
Production -------------------------------------------------------------- 236 -------------- 445 --------------
Licenses ----------------------------------------------------------- -- 793 -------------- 832 --------------
TechnicaL._------------------------------------------------------------------ 88 -------------
News and information ------------------------------------------------------- 102 ----------
Entertainment------------------------------------------------------------- 563 --------------
General and administrative______________
-----------------------------------
----------
2,797 --------------
Total Administrative Costs -------------------------------------------------- 2,499 ____________-_
121
Capital expenses--- --------------------- ---------------------------- ----
Total operating expenses---------------------------------------- 957 13,273 876 14,478 872
52 ----------------------------
691 -------------- 148
36 -------------
445 ----------------------------
910 -------------- +78
102 -------------- +14
19 -------------
600 -------------- +37
2,855 -------------- +58
181 --------------
14,820 4 +342
Financing: -1,141 -1,258 ----------------------------------------- 1,258
________--------------- ---" +9W
---------------------------- -
Reduction of net assets -----------------------------------------------------------
--------
Liquidation Reserve Applied to Termination Costs --------------------------------------------------------------
------ -------------
-1 141 2,158 ------------------------------------------ +2,158
-------------
Subtotal -------------------------------------------------------------
12, 320 -------------- 14, 820 ------------- +2,500
Appropriation--------------- ---------------------------------------------- 1r ^,131 --------------
r Fisal year 1971 data shown for comparative purposes. Radio Liberty funds were provided through another Government agency in fiscal year 1971.
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COMMITTEE ACTION
Senator Fulbright introduced S. 3645 by request on May 25, 1,972,
It was referred to the Committee on Foreign Relations and public
hearings were held June 6 and 7 at which time the committee heard
from Dr. Dirk Stikker, chairman of the Westren European Advisory
Committee for Radio Free Europe and from the, Honorable U.
Alexis Johnson, Under Secretary for Political Affairs. Following the
hearing on June 7, the committee met in executive session and ordered
the bill favorably reported by a vote of 10 to 3. Those who voted to
report the bill were: Senators Sparkman, Church, McGee, Muskie,
Spong, Aiken, Cooper, Javits, Scott and Percy. 'hose who voted.
against were: Senators Fulbright, Mansfield, and Symington.
Since the disclosure last year of the Government's covert funding
of Radio Free Europe and Radio Liberty, the committee has devoted
much time and attention to this issue. From the information gathered
and the testimony presented during that time, a majority of the
committee believe that the broadcasting services performed by both
Radios serve the foreign policy interests of the United States by pro-
viding the peoples of Eastern Europe and the Soviet Union with news
and information that otherwise would not be available to them. Al-
though by no means conclusive, the evidence presented to the
committee suggests that both Radio Free Europe and Radio Liberty
provided balanced new,, and political commentary on internal develop-
ments within Eastern Europe and the Soviet Union and that both
maintain substantial listening audiences in their respective areas.
So long as the governments of the Soviet Union and the Eastern
European countries foel compelled to restrict the flow of news and
information, there is at least an. apparent need to provide the peoples
of these countries with "the other side or the story." Radio Free
Europe and Radio Liberty seek to perform this function-tan important
function which the committee Hopes will be supported in the near
future by some, if not all, of the countries of Western Europe.
In their testimony before the, eoinmit:tee, both Dr. Stikker and the
Honorable U. Alexis Johnson agreed that others should contributeto
the financial support of the radios. For example, Dr. Stilc.kor told
the committee, on June 6:
Let me state most emphatically that, I personally fully
agree with your stated view that it is time, for West Euro-
peans to begin sharing the financial burden of these radio
operations.
Similarly, the Under Secretary of State for Political Affairs informed
the committee on June 7:
I fully share the view that, to the extent possible, funds
other than U.S. Government funds should be solicited to
support these programs.
The committee's swift and decisive action to approve continued
Government funding for the Radios through fiseal 1973 should be
more than sufficient to indicate the U.S. commitment to the Radios.
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But this is not an open-ended commitment and the extent to which it
continues in the future will be determined by the kind of financial
support that can be generated during the coining year among the
Western European nations.
COST ESTIMATE
Section 252(a) (1) of the Legislative Reorganization Act of 1972
requires that committee reports on bills and joint resolutions contain
"(A) an estimate made by such committee, of the costs which would
be incurred in carrying out such bill or joint resolution in the fiscal
year in which it is reported and in each of the 5 fiscal years following
such fiscal year * * *." The act also requires that the committee's
cost estimate be compared with any estimate made by a Federal
agency.
The committee estimates that the total cost in fiscal year 1973
for the Radio Free Europe and Radio Liberty programs will be
$38,520,000, the amount requested by the executive branch. Using
a straight-line projection of this funding level, the costs for fiscal year
1974-78 will be $192,600,000. If during this period the two Radios
proceed to modernize their facilities in accordance with plans which
already been prepared, there would be an additional cost ranging
from $22 million to $43.5 million at current rates.
As noted earlier in this report, however, the committee expects
that in the near future a substantial portion of these costs will be
borne by other contributors.
For the 5-year period fiscal year 1974-78, the executive branch
estimates the Radio Free Europe and Radio Liberty programs will.
cost $244 million, assuming the current level of operations is main-
tained throughout the period.
CHANGES IN EXISTING LAW
In compliance with paragraph 4 of rule XXIX of the Standing
Rules of the Senate, changes in existing law made by the bill, as
reported, are shown as follows (existing lan proposed to be omitted
is enclosed in black brackets, new matter is printed in italic, existing
law in. which no change is proposed is shown in roman):
United States Information and Educational Exchange Act of
1948, as amended
"AUTHORIZATION FOR GRANTS TO RADIO FRET. F:IrROPE ANT) RA DIO
1APERTF
"SEC. 703. There are authorized to be appropriated to the [Depart-
Inent 836,000,000 for fiscal year 1972] Secretary of State $38,520,000
for fiscal year 1973 to provide grants, under such terms and conditions
as the Secretary considers appropriate, to Radio Free, Europe and
Radio Liberty Except for funds appropriated [under]
this section, no funds appropriated aftethe date of et actnicnt of
this section for any fiscal y eax, under this or any other provision of
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law,] this Act may be made available to or for the use of Radio Free
Europe or Radio Liberty in fiscal year 1973.".
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