For the record, can you tell us what the representation allowance has been for the last year, what you have this year, and what you had the year before? Mr. Cook. The amount this year is $58,750. That is the 1954 fiscal year. Senator HICKENLOOPER. Do you have any record for 1953? Senator HICKENLOOPER. I know 1 or 2 cases where people in your Department who have considerable responsibility for contacts with local authorities get about $3.25 a quarter for representation. It seems to me that is a little bit small. Mr. STREIBERT. I testified that this is merely an attempt to take less out of the pockets of our employees than currently. It in no way pays the expenses that these men actually do have to spend in their personal contacts. An example came to my attention recently where in Tehran we had many important people coming in to see some pictures. I would like to be able to describe how important they are, but let me say it was quite an achievement to get them to come to our place to look at this. As is normal in a place like Tehran, they had to serve coffee and cakes afterward. There is no representation allowance for that. These people have to pay for things like that out of their own pocket. They have to do it or it is impolite to their guests. Senator HICKENLOOPER. How is it going to help you to restore it to $60,000? You are getting $58,000 now and you can't do it. Senator GREEN. You cannot give them half a cup of coffee. FROZEN FUNDS Mr. STREIBERT. About $11,000 of the $58,000 is now currently frozen in Germany and Austria, and we will spend less in those countries and spread it around to the other areas in fiscal 1955. So it will really increase a little in other areas. Senator GREEN. What do you mean by frozen? Mr. STREIBERT. It was originally appropriated under a separate appropriation "Government in occupied areas," which was fixed and we could not transfer it to other areas. It is different in 1955. all one in 1955. It is Senator GREEN. You would not be up against the same difficulty? Mr. DICKEY. Senator, to compound this situation, the internal revenue has a ruling that, where a man spends money out of his pocket in this type of thing, he has to get a certification by the Secretary of State, or in this case by the Director, that it was spent for official purposes in order to be able to deduct it from his income tax as an ordinary and necessary expense of doing business, so he gets hurt both ways. Senator GREEN. Is there much trouble to get that? Mr. STREIBERT. Yes, from 77 countries for a cup of coffee. Mr. STREIBERT. That is where we operate. Senator GREEN. If a man wants to make that deduction, if it comes out of his own pocket, should he not get a certificate? Do you object to that? Mr. DICKEY. It is difficult for the Director to know if it is actually spent in that fashion. He is the person who must certify it has been. Senator GREEN. Who put that into effect? Mr. STREIBERT. The Internal Revenue Bureau. Senator HICKENLOOPER. In other words, you are talking about the case where there is not sufficient representation allowance and the local officer spends money out of his own pocket? Mr. DICKEY. Yes, sir. RULING OF INTERNAL REVENUE REQUESTED Senator HICKENLOOPER. Even with that allowance that would still be the case if the representation allowance is not sufficient, then is it necessary for him to spend it out of his own pocket? You do not advocate a change, then? Mr. DICKEY. No, sir. Mr. STREIBERT. We are taking it up with the internal revenue people to get it simplified. Senator GREEN. How are you taking it up? Mr. DICKEY. The Assistant Commissioner of Internal Revenue made the ruling. We are attempting to get it simplified. We have been negotiating with them over the past 30 days to get a change in the rule. Senator GREEN. Did you do it in writing or telephone? Mr. DICKEY. I did it by telephone. We are now meeting on it. Senator GREEN. Have you ever done it in writing? Mr. DICKEY. No, sir. Senator GREEN. Have you advocated the change in writing? Senator GREEN. It seems to me you are negligent in not having done so, if I may make the comment for the record. Why have you not done so before? Mr. DICKEY. I just discovered this ruling 30 days ago, sir. OBJECT CLASS SUMMARY Senator HICKENLOOPER. Without objection, I would like to insert in the record a statement of the 1954 appropriation, the budget estimate and the House allowance for 1955 by object classification. (The information referred to follows:) 45431-54-pt. 2- -29 U. S. INFORMATION AGENCY Comparative object class summary, fiscal year 1954 and estimate and House allowance for fiscal year 1955 1 This adjustment represents a transfer of funds from FOA effectuated Mar. 9, 1954, which was not included in previous budget submissions or considered by the House. Object class breakdown is as follows: Travel, $9,100; transportation of things, $5,700; printing and reproduction, $85,000; other contractual services, $540,650; supplies and materials, $77,550; equipment, $72,000; grants, subsidies, and contributions, $10,000, ANALYSIS OF RESTORATION REQUESTS Senator HICKENLOOPER. I also suggest, Mr. Streibert, that you include in the record a summary analysis of the statement submitted by your office. Mr. POSNER. We will be glad to submit such a summary statement for the record. (The information referred to follows:) UNITED STATES INFORMATION AGENCY Analysis of request for restoration by object class, House allowance compared with budget estimate, fiscal year 1955 Analysis of the total restoration requested is as follows: Activity USIS missions... Press service... Motion picture service. Information center service.. Program direction and appraisal.. Travel: 1954 (net). 1955 estimate.... 1955 House allowance. Restoration requested... Analysis of the total restoration requested is as follows: USIS missions.. Press service.. Motion picture service. Information center service. Program direction and appraisal Administration and staff support. Transportation of things: 1954 (net). 1955 estimate__ 1955 House allowance. Restoration requested.. USIS missions: Local transportation of printed materials, motionpicture equipment, and program supplies; and shipment overseas of household effects of new employees - 454, 356 1955 House allowance.. Information center service: For overseas shipment of books, library equipment, exhibits, and exhibit materials. Communication services: 1954 (net)-- 1955 estimate_ Press service: For overseas shipment of paper, press supplies and 90, 135 169, 155 162, 133 32, 933 1,832, 618 1, 966, 037 1,798, 451 Restoration requested... USIS missions: Primarily postage costs for distribution of additional printed materials in India, Iran, Pakistan, Egypt, Indochina, Korea, and Thailand. 167, 586 Information center service: For mailing additional periodicals and newspapers to overseas posts where mailing costs are not included in the subscription rate....... Office of administration: For full year requirements, penalty mail___ Administrative support: For direct administrative expenses for the new Central African Federation program and for Italy, previously covered under reimbursable support_--- Press service: To increase the wireless file from 6,000 to 8,000 words daily and to restore the Sunday file. 73, 385 47, 940 750 43, 700 1, 811 Restoration requested. USIS missions: Principal items are increased rental of display space for exhibits and pictures; and rental of halls for film showings, lecturers, etc., where free space is not available, plus other minor increases in rents... Administrative support: For direct administrative expense for 45, 084 24, 912 20, 172 4,082, 513 5, 064, 104 3,999, 293 Restoration requested.. USIS missions: For increased circulation of Al Sadakah in Egypt; Congressional and public information staff: For reproduction of Other contractual services: 1954 (net). 1955 estimate 1955 House allowance_ Restoration requested.......... USIS missions: For local production of displays and exhibits; dis- Administration and staff support: For services relating to public 1, 064, 811 493, 951 539, 825 1, 035 30, 000 10, 982, 770 16, 249, 343 11, 690, 146 4, 559, 197 1, 131, 295 101, 142 2,719, 531 37, 979 343, 900 217, 660 7, 690 |