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1st Session

No. 634

AMENDING THE ACT OF MAY 26, 1949, AS AMENDED, TO STRENGTHEN AND IMPROVE THE ORGANIZATION OF THE DEPARTMENT OF STATE

JULY 7, 1959.-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

[To accompany S. 1877]

The Committee on Foreign Affairs, to whom was referred the bill (S. 1877) to amend the act of May 26, 1949, as amended, to strengthen and improve the organization of the Department of State, and for other purposes, having considered the same, report unanimously thereon without amendment and recommend that the bill do pass. The Honorable C. Douglas Dillon, the Under Secretary of State, testified in favor of the bill.

The three principal officers of the Department of State are the Secretary of State, the Under Secretary of State, and the Under Secretary of State for Economic Affairs. The act of May 26, 1949, as amended by the Mutual Security Act of 1954, as amended, established the position of Under Secretary of State for Economic Affairs. The latter act made this Under Secretary a member of the Board of Directors of the Development Loan Fund and provided that he should serve as Chairman of that Board.

S. 1877 affects directly only the third officer (i.e. the Under Secretary of State for Economic Affairs) of the Department of State. It permits the President to designate that third officer as either the Under Secretary of State for Political Affairs or the Under Secretary of State for Economic Affairs. This provides greater flexibility to the President to designate by title the third officer of the Department of State to carry out those functions and responsibilities assigned to him by the Secretary. Mr. C. Douglas Dillon was the Under Secretary of State for Economic Affairs. He has been appointed the Under Secretary of State, the second post in the Department. If this bill is enacted, it will be possible for the Secretary to assign to the No. 3 officer the duties and responsibilities relating to political affairs and to the No. 2 officer the duties and responsibilities relating to economic affairs.

59014-59 H. Rept., 86-1, vol. 4- 30

The bill also specifies that the functions with respect to the Development Loan Fund now vested in the Under Secretary of State for Economic Affairs be vested in the Secretary of State.

The Committee on Foreign Affairs believes that the changes made by S. 1877 will improve the organization of the Department of State. It should be stressed that these administrative improvements in no way alter existing salary schedules in the Department, nor does it create any new positions.

The following letter accompanied the Department of State's request for this legislation:

Hon. SAM RAYBURN,

Speaker of the House of Representatives.

DEPARTMENT OF STATE,
Washington, April 30, 1959.

DEAR MR. SPEAKER: There is transmitted herewith a draft of a proposed bill to amend the act of May 26, 1949, as amended, to strengthen and improve the organization of the Department of State, and for other purposes.

The bill is designed to give the Secretary greater flexibility in assigning duties to the second and third ranking officers of the Department. If enacted, it would replace the present third-ranking position of Under Secretary of State for Economic Affairs with a position, the title of which will be either Under Secretary for Political Affairs or Under Secretary for Economic Affairs, as designated by the President. The incumbent of this position will receive compensation at the rate of $22,000 per annum which is $500 less than the salary per annum of the first-ranking Under Secretary. Under this arrangement the President on the advice of the Secretary will have the necessary flexibility to assign functions to the two Under Secretaries as he deems most appropriate.

At the present time, the Under Secretary of State for Economic Affairs is by law a member of the Board of Directors and Chairman of the Development Loan Fund. Enactment of the proposed bill would vest these duties in the Secretary of State. It is intended, however, that the duties of the Secretary in connection with the Development Loan Fund, including membership on the Board and the chairmanship, will be delegated by the Secretary to the appropriate Under Secretary of State.

A similar letter is being transmitted to the President of the Senate. The Department has been informed by the Bureau of the Budget that there is no objection to the submission of this legislation to the Congress for its consideration.

Sincerely yours,

WILLIAM B. MACOMBER, Jr.,
Assistant Secretary

(For the Secretary of State).

CHANGES IN EXISTING LAW

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 passed by the Senate, are shown as follows (existing law proposed to

be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman): Text of Public Law 73, 81st Congress (S. 1704], approved May 26, 1949, as amended by Public Law 250, 84th Congress [S. 2237], approved August 5, 1955, Public Law 85-477, 85th Congress (H.R. 12181], approved June 30, 1958, and Public Law 85-524, 85th Congress [S. 1832], approved July 18, 1958

An ACT To strengthen and improve the organization and administration of the Department of State, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be in the Department of State in addition to the Secretary of State an Under Secretary of State, two Deputy Under Secretaries of State, and eleven Assistant Secretaries of State.

SEC. 2. (a) The Secretary of State and the officers referred to in section 1 of this Act, as amended, shall be appointed by the President, by and with the advice and consent of the Senate. The Counselor of the Department of State and the Legal Adviser who are required to be appointed by the President, by and with the advice and consent of the Senate, shall rank equally with and shall receive the same salary as the Assistant Secretaries of State. Any such officer holding office at the time the provisions of this Act, as amended, become effective shall not be required to be reappointed by reason of the enactment of this Act, as amended. Unless otherwise provided for by law, the rate of basic compensation of the Deputy Under Secretaries of State shall be the same as that of Assistant Secretaries of State.

[(b) There is hereby established in the Department of State the Office of Under Secretary of State for Economic Affairs, which shall be filled by appointment by the President, by and with the advice and consent of the Senate. The Under Secretary of State for Economic Affairs shall receive compensation at the rate of $22,000 per year and shall perform such duties as may be prescribed by the Secretary of State. The President may initially fill the position of Under Secretary of State for Economic Affairs by appointing, without further advice and consent of the Senate, the officer who, on the date of the enactment of this subsection, held the position of Deputy Under Secretary of State for Economic Affairs. Any provision of law vesting authority in the "Deputy Under Secretary of State for Economic Affairs" or any other reference with respect thereto, is hereby amended to vest such authority in the Under Secretary of State for Economic Affairs.]

(b) There is established in the Department of State an Office which shall be entitled as designated by the President, either Under Secretary of State for Political Affairs or Under Secretary of State for Economic Affairs, which Office shall be filled by appointment by the President, by and with the advice and consent of the Senate. The incumbent of such Office shall receive compensation at the rate of $22,000 a year and shall perform such duties as may be prescribed by the Secretary of State. Any provision of law vesting authority in the "Under Secretary of State for Economic Affairs", or any other reference with respect thereto, is hereby amended to vest such authority in the Secretary of State.

SEC. 3. The Secretary of State, or such person or persons designated by him, notwithstanding the provisions of the Foreign Service

Act of 1946 (60 Stat. 999) or any other law, except where authority is inherent in or vested in the President of the United States, shall administer, coordinate, and direct the Foreign Service of the United States and the personnel of the State Department. Any provisions in the Foreign Service Act of 1946, or in any other law, vesting authority in the "Assistant Secretary of State for Administration", the "Assistant Secretary of State in Charge of the Administration of the Department", the "Director General", or any other reference with respect thereto, are hereby amended to vest such authority in the Secretary of State.

SEC. 4. The Secretary of State may promulgate such rules and regulations as may be necessary to carry out the functions now or hereafter vested in the Secretary of State or the Department of State, and he may delegate authority to perform any of such functions, including if he shall so specify the authority successively to redelegate any of such functions, to officers and employees under his direction and supervision.

SEC. 5. The following statutes or parts of statutes are hereby repealed:

Section 200 of the Revised Statutes, as amended and amplified by the Acts authorizing the establishment of additional Assistant Secretaries of State, including section 22 of the Act of May 24, 1924 (ch. 182, and the Act of December 8, 1944, R.S. 200; 43 Stat. 146; 58 Stat. 798; 5 U.S.C. 152, as amended by Public Law 767, Eightieth Congress).

Section 202 of the Foreign Service Act of 1946 (60 Stat. 1000) and any other reference in such Act to the "Deputy Director General". Section 1041 of the Foreign Service Act of 1946 (60 Stat. 1032).

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