1 Includes 10 fairs in late summer and fall of 1956 funded partially from fiscal year 1956 appropriation. * Excludes use of foreign currencies available to Department of Agriculture under Public Law 480 used for Government participation in certain fairs to help develop markets for surplus agricultural commodities. BUDGET ESTIMATE IN HOUSE DOCUMENT 403 HOUSE REPORT "The bill includes $4,687,400, a reduction of $4,312,600 in the amount of the budget estimates, to continue the President's special international program of artistic and athletic presentations abroad and participation in international trade fairs. The sum allowed is the same amount as appropriated for fiscal year 1955 and also for fiscal year 1956 less the amount requested for the United States Information Agency. "The Committee was told that from $1,240,000 to $1,700,000 of previously appropriated funds for this program would be unexpended as of June 30, 1956. "The sum of $312,600 was requested for the United States Information Agency, principally for promoting and publicizing this program. The Committee is of the opinion that this Agency should be able to carry on this work within its regular annual appropriation which is in the amount of $113,000,000 for the fiscal year 1957, and therefore, directs that no part of the funds recommended herein be allocated to the United States Information Agency. "The testimony before the Committee reveals that of the $229,738 available to the United States Information Agency from this fund for fiscal year 1956, the sum of $120,615, or over 52 percent was expended for entertainment. Large amounts of the USIA funds were used for the purchase of tickets which were given away to people to attend the performances. If the performers or companies sent abroad were of such consequence that free tickets had to be given away at government expense for them to have an audience they should not have been sent in the first place. For example, the Agency expended $3,000 of the taxpayers' money to purchase tickets to present to people free of charge to listen to the Los Angeles Symphony Orchestra in Tokyo. "It is inconceivable that a Government Agency would even consider a payment of $23,000 for royalties in connection with a touring play, in addition to all the other costs of an overseas tour. Nevertheless, such is the case, as an examination of the hearings will disclose. "The Committee expects that all agencies in any way connected with this program will correct the loose financial operations pointed out in the report of the General Accounting Office and the investigative report of this Committee, and take the necessary action to prevent their reoccurrence in the future." FUNDS APPROPRIATED TO THE PRESIDENT PURPOSE AND NEED FOR SUPPLEMENTAL FUNDS A total of $10 million has been appropriated for the President's emergency fund for international affairs, $5 million by the 83d Congress (Public Law 663, approved August 26, 1954) and $5 million by the 84th Congress (Public Law 219, approved August 4, 1955), to remain available until expended, to encourage and make possible the exhibition abroad by private firms and groups of the best United States industrial and cultural achievements. Basic legislation to place this program on a permanent basis is now pending before the Congress. S. 3116, 84th Congress, known as the International Cultural Exchange and Trade Fair Participation Act of 1956, was passed by the Senate on March 26, 1956, and referred to the House Committee on Foreign Affairs. It is requested that the amount of $9 million, to remain available until expended, be appropriated to continue the program during the fiscal year 1957 under the new legislation. The proposed language contemplates that the previous appropriations for this program will be merged with this appropriation. The fund is needed to provide United States participation in international trade fairs, to help private groups to demonstrate our accomplishments in the cultural field, and to assist projects of many kinds that tend to show to the peoples of other countries, in dramatic and effective manner, the manifold ways in which our society contributes to the well-being and happiness of its people. The Director of the United States Information Agency serves as the President's coordinator in this program to insure that each time the United States is represented abroad, the representation refutes as directly as possible the Communists' anti-American propaganda line and reinforces the foreign policy of the United States. The President stated his desire that the funds be used solely for expenses directly chargeable to approved projects for the program. Therefore, direct administrative expenses are kept to a minimum and Agency and Departments' overhead is met to a large degree from the general funds of the participating agencies. The Secretary of Commerce is responsible for the execution of projects in connection with participation in foreign international trade fairs. Likewise, the Secretary of State is responsible for the execution of cultural projects. Promoting and publicizing these projects, abroad, is the responsibility of the United States Information Agency. In order to provide for a program adequate to meet the Soviet offensive for cultural and industrial prestige, an additional appropriation of $9 million is requested, of which $5,987,400 is for participation in international trade fairs in foreign countries, $2,700,000 for cultural projects, and $312,600 for exploitation and promotion of both cultural projects and trade fairs in foreign countries. There follows separate justification for the allocations to the Departments of Commerce and State, and the United States Information Agency. 1 1957 Commerce estimate includes $67,000 for activities of the Department of Labor. General statement ALLOCATION TO DEPARTMENT OF STATE Allocations to date for artistic and athletic presentations abroad include $2,250,000 made available by Public Law 663, 83d Congress, 2d session, the Supplemental Appropriation Act of 1955 and $2,050,000 made available by Public Law 219, 84th Congress, 2d session, the Supplemental Appropriation Act of 1956. The primary objectives of the cultural (artistic and athletic) presentations program are (1) to improve the understanding in foreign countries regarding the cultural achievements of the United States and (2) to serve as a method for refuting Communist propaganda that the United States is a nation of cultural barbarians. These funds are being used primarily to underwrite certain losses by American cultural performers abroad. These losses occur because of high international transportation costs, unfavorable rates of exchange and itineraries to more distant parts of the world. Unless these losses are underwritten, many performers could not appear abroad or would be limited to appearing in a small number of countries. Thus, the funds are essentially "seed money,' making possible increased appearances of performers abroad and serve as a stimulus to private enterprise in musical, theatrical, and other fields. To handle the administration of this program, the following organizational pattern has been established: 1. The Operations Coordinating Board has the responsibility of assuring the effective use of the appropriated funds. This responsibility was originally vested in a special Cabinet Committee but has been transferred to Operations Coordinating Board; 2. The Operations Coordinating Board's Cultural Presentations Committee has the primary responsibility for the review, approval in principle and coordination of cultural activity projects; 3. The Department of State has been assigned action responsibility for cultural activities. Within State, the Public Affairs Area (International Educational Exchange Service) has been assigned the operating responsibility for this activity. The International Educational Exchange Service formulates plans for cultural projects which are in accord with the needs and interests of the various geographical areas as expressed in official communications from the overseas diplomatic offices and as advised by the Department's regional specialists. To the maximum extent possible the Department relies on private enterprise to carry out this program. Operating under contract with the Department, the American National Theater and Academy (ANTA) implements the Department's plans by approaching artists and cultural groups which are judged suitable for displaying cultural achievements abroad. In addition to the cultural projects, the Department has contracted with the Amateur Atheletic Union, universities, and other organizations, to implement in a similar manner, a number of sports projects. These contract agencies operate on a nonprofit basis and administrative funds received from the Department cover only the direct operating expenses of booking projects. To date, administrative expenses have only been provided to ANTA. All other projects have been administered without cost to the Department. All individuals and groups assisted must be certified as to artistic competence by panels of leading private authorities in the fields of drama, music, dance, or athletics before they can be considered for program participation. The In the case of cultural projects, following negotiations with an artist or a performing group, ANTA submits to the Department a request for the financial assistance required by the artists to undertake a tour in a particular area. requested amount represents the estimated maximum difference between the total tour costs and the private support of the attraction plus funds which are anticipated from performance box office receipts. The Cultural Presentation Committee must approve each project before it can be activated. After the Committee's approval of a project, the Department's original contract with ANTA is amended to provide for an allocation of funds to implement the project. This contract specifies that funds allocated for a project represent the maximum amount which will be furnished by the Government. All attempts at savings must be made by the assisted artists and groups and all unused funds must be returned to the program. ANTA and the Department supervise the booking negotiations and other arrangements in order to insure that program funds are properly used. Upon the completion of each project a complete financial report of how the program funds were expended is submitted by ANTA for the review of the Department. Sports projects are negotiated, approved, and administered in a similar manner. The estimate for 1957 includes 38 major projects at a cost of $2,560,000 plus administration costs of $140,000 for a total of $2,700,000. The area breakdown is: As of March 31, 1956, a total of 24 projects have been approved for the program in the 1956 fiscal year. It is planned that several additional projects will be approved. A number of the approved projects will take place during the summer and early fall months. Typical of the approved projects are: a European tour by the Boston Symphony Orchestra, a European and Near Eastern tour of the Ballet Theatre, a tour in Latin America of the New Orleans Philharmonic Orchestra, a Far Eastern tour of the Los Angeles Philharmonic Orchestra. Also a number of outstanding individual American performing artists will tour in various areas of the world. Without exception, all projects undertaken in the cultural presentations program thus far have met with tremendous success. The program has been acclaimed as meeting a vital need in establishing and maintaining good relationships with other countries. |