Office buildings now under construction and to be occupied during fiscal year 1954 will provide an additional 112,000 square feet. Government-owned properties as of June 30, 1953, provided 1,794,057 square feet of office space, and residential housing for approximately 1,500 officers and employees, including attachés of other agencies, exclusive of the HICOG housing facilities at Bonn, Germany, which were financed from other funds. properties, by type, follow: These 129 62 679 456 The following table shows the overall recurring estimated annual gross savings as a result of Government ownership of buildings abroad. Office space-Department of State and other agencies.. Total_____ $3, 633, 474 1, 740, 012 483, 343 5, 856, 829 The above annual figure of $5,856,829 added to prior year savings since the credit utilization program began in 1947 reaches an approximate accumulative figure of $26 million. Nature of building program and budget composition.-The following explanation applies to the 1954 and the 1955 programs: Depending upon the size of the building project involved, the average time it takes to complete a project varies from 12 to 3 years. This fact poses a budgeting problem since funds are required to be on hand prior to commitments relating to the project. Consequently it is important to seek funds in orderly and self-contained phases of the time span of the building program consistent with fiscal year budget requirements. The basic three time-consuming but self-contained phases of a building project are site, design, and construction. As a practical matter only 2 of the 3 can usually be accomplished or well started in 1 year: either (1) site and design or (2) design and construction. With few exceptions, this budget is prepared on such basis. The effect of this approach is to obtain a more realistic estimate of funds to be obligated for any given year. Moreover, on projects calling for site and design, it is intended to limit design to preliminaries. Aside from saving time, preliminary design will firm up estimates for construction costs and will afford more reliable information in reviewing requests for funds for construction. Summary of activities Every possible effort has been, and is being, made to keep dollar expenditures at a minimum and requests for dollar projects are being deferred excepting where real hardship conditions obtain. In addition, FBO has arranged in many instances to procure construction materials abroad from foreign credit sources for use in noncredit countries, thereby avoiding direct-dollar expenditures. Dollar disbursements are made only where sufficient foreign credits are not available. The following tabulation shows projects underway on June 30, 1953, those planned from funds available in the 1954 fiscal year and those requested for 1955 and recurring operational costs. Preceding the tabulation is a key to the various abbreviations or codes used in connection with identifying post classification, project classification, and the status of project classification. CG. CGR. 1 Not limited to site and construction costs, as are the projects enumerated under the regional bureaus, but includes as well cost of design, furniture and furnishings, and Contingencies. India-New Delhi Embassy residence and staff housing--- Description of present situation $600,000 The American Ambassador to India is presently housed in a Governmentowned residence located at 17 Ratendone Road, New Delhi. This residence is small and does not properly reflect the American Ambassador's position in India In addition to other Government-owned properties, the Embassy has a large leasing program to provide housing for its personnel. The complete listing of the officially leased housings represent a considerable annual expenditure of public funds. Two examples are cited: (1) The Taj, 36 Queensway, $16,489.20 per annum. (2) Bharat Bank Building, No. 6 Ansari Road, $4,947.12 per annum. Recommended structures (1) Staff housing. (2) Ambassador's residence. Justification Despite the size and scope of the Embassy's leasing program, it has been unable to provide sufficient quarters for the personnel assigned to New Delhi. In addition to the scarcity of housing at this post, available quarters are usually beyond the means of Embassy personnel. The scarcity of housing, which results in a seller's market, is likely to continue for several years. To overcome this scarcity of housing, the Department has been negotiating with the Indian Government over a 2-year period in an endeavor to acquire a building site which would permit the construction of quarters for staff personnel as well as a suitable location for a representative Embassy residence. As a result of these endeavors the Indian Government agreed finally to accept the present Government-owned office in exchange for a 28-acre site in the best and newly developed residential area at New Delhi. In addition, the Indian Government agreed to permit the Embassy to have free use of the present Governmentowned office building for a period of 3 years. This concession was obtained to permit the Department to undertake construction and complete the residence and the staff housing within the 3-year period. If unreasonable delay should ensue in the prosecution of this project and unless construction is commenced at the earliest possible moment, the Department conceivably would not be able to complete the building project within the time allotted for free use of the presently owned Government office building. This would necessitate the paying of rent or possibly an expensive move to other quarters. In addition, the Department might appear to be acting in bad faith with the Indian Government in failing to act promptly after the concessions made. Furthermore, with the development of the diplomatic enclave the situation changes in several respects. For instance, our tenancy of the Taj compound is based solely upon our inability to provide other quarters for its 70-plus occupants. Consequently, with the acquisition of the diplomatic enclave site, the Government of India will insist upon our providing staff housing and vacating the Taj compound. This was one of the considerations upon which the Indian Government agreed to lease the Taj to the Embassy. It is realized that it is presently impractical to construct housing for all Embassy personnel in the diplomatic enclave. However, in view of the annual expenditure for rented quarters, the continued shortage of housing for our personnel, and the need to have key personnel located near the Embassy chancery, the proposed construction of staff housing and an Ambassador's residence is adequately justified. The Government of India set aside that area of New Delhi known as the Diplomatic Enclave for the express purpose of creating a foreign diplomatic development of chanceries and residence. Our acceptance of the land in the enclave has thus committed us to implement a building program. Utilization of foreign currency This project can be financed by the use of Indian rupees which the Indian Government owes the United States under the agreement of May 16, 1946. There are ample rupee balances under this agreement and there is no shortage of currency for this project which would preclude its undertaking. Office building Description of present situation Haiti-Port-au-Prince $250,000 The Embassy offices are now located in leased space at a cost of $3,900 per annum. These quarters are crowded and in a poor state of repair. Unsuccessful efforts have been made to lease suitable space and this is the most pressing need in the ARA area. The Embassy is housed in a building that presents both security and fire risks. It is an old frame residence converted into office space. Filing cases serve as partitions and corridors contain desks. Recommended structure Embassy office building. Justification (a) Security.-Conditions in the presently occupied building are definitely below standard, and the most glaring deficiencies are: (1) The inadequacy of the space in the present building whereby American officers and employees, dealing with classified material, occupy common offices with local employees, and outside terraces and hallways are being used as offices by secretaries to the Ambassador and first secretary. (2) The building is very vulnerable to surreptitious entry. (b) Economic.-The present Embassy building necessitates constant repairs. (c) Representational.-Due to the crowded and unsightly conditions the presently occupied building is not satisfactory from a representational standpoint. (d) Health.-Crowded conditions in addition to accident hazards make for poor health conditions of employees. (e) Morale. An elimination of conditions stated in (c) and (d) would do much to improve the morale at this post. Utilization of foreign currency It is proposed to implement the office building project through the utilization of credits from the war assets agreement with Haiti, plus utilization of credits in European countries for importation of construction materials. Embassy office building.. Netherlands--The Hague Description of present situation $525,000 United States Embassy offices at The Hague are now housed in the Esso Building and in several other scattered locations. From the standpoint of the importance of our relation with the Netherlands this is an altogether inadequate situation. Also, it entails a serious security problem as well as loss of efficiency. Furthermore, the owners of the building have indicated a desire to terminate the lease for space which we occupy in the Esso Building as soon as possible. Recommended structure Embassy office building. Justification In order to provide consolidated office quarters which will eliminate the present security problem and provide for improved operating efficiency as well as meet our representational requirements, it is proposed to construct an office building which will be financed partly through an exchange of property with a value of $471,191 plus remaining cost of $525,000 on a site already owned by the Government. The Netherlands Government has persistently sought the 66-acre park tract in the center of The Hague for public use and this action solves a political problem and provides an opportunity to substantially finance a sorely needed adequate office building. The savings which will be effected will be especially important as substantial increases in rental will have to be met this year, particularly in negotiation for new quarters. Utilization of foreign currencies The financing of this project will be accomplished almost entirely through the use of Netherlands guilders. For special items of equipment not available in the Netherlands, it is planned to import the required material with British sterling or German deutschemark credits, in which currencies there are ample holdings. |