Recreation Resources Review Commission is expected to be available. The Secretary of the Interior, at my request, is preparing a plan for the Federal Government to meet its share of the responsibility for providing outdoor recreational opportunities, including those related to fish and wildlife.

Commerce and transportation: Budget expenditures for commerce and transportation programs are estimated to decline from $2.9 billion in 1962 to $2.5 billion in 1963. This decline reflects mainly a drop of $592 million for the postal service, based on my legislative proposal to increase postal rates to a level that will cover the costs of postal operations, except for those services properly charged to the general taxpayer.

Outlays for the Federal-aid highway program are financed almost entirely through the highway trust fund and are not included in the budget total. Combined, Federal budget and trust fund expenditures for commerce and transportation programs in 1963 will amount to almost $6 billion.

Substantially increased expenditures are provided in the 1963 budget for the new program to assist the redevelopment of areas with persistent unemployment and underemployment and for the expanding development and operation of the Federal airways system.

Housing and community development: The long strides forward in housing and community development programs authorized by the Housing Act of 1961 are making it possible to accelerate progress in renewing our cities, in financing needed public facilities, in preserving open space, and in supplying housing accommodations, both public and private, within the means of low- and middle-income families and elderly people. The major new proposal I expect to make in this field will extend the authority for Federal aids to urban mass transportation.

Health, labor, and welfare: Budget expenditures for health, labor, and welfare programs are estimated at $5.1 billion and trust fund expenditures at $21.6 billion in 1963. The budget includes increased funds for health research and for a major strengthening of the programs of the Public Health Service, the Office of Vocational Rehabilitation, and the Food and Drug Administration. The budget and trust accounts also reflect the legislative recommendations which are pending in the Congress to provide a substantial increase in aid for medical education and to enact health insurance for the aged through social security.

I have given particular attention in this budget to strengthening the labor and manpower functions of the Department of Labor and related agencies. In addition to increased funds for the U.S. Employment Service and for other existing Federal programs, the budget includes funds for the urgently needed legislation providing for Federal aid for training or retraining unemployed workers, and for the training of our young

people through an experimental youth employment opportunities program.

Many American families rely for help and for a new start in life upon the public assistance programs. Yet these programs frequently lack both the services and the means to discharge their purpose constructively. This budget includes substantial increases for public assistance. I am also proposing a significant modernization and strengthening of the welfare programs to emphasize those services which can help restore families to self-sufficiency.

Education: Expenditures for existing and proposed education programs are estimated to be $1.5 billion in 1963, an increase of $327 million over 1962. A strong educational system providing ready access for all to high quality free public elementary and secondary schools is indispensable in our democratic society. Moreover, able students should not be denied a higher education because they cannot pay expenses or because their community or State cannot afford to provide good college facilities. This budget therefore includes funds for the legislative recommendations pending before the Congress to provide loans for the construction of college academic facilities and funds for college scholarships, and assistance to public elementary and secondary education through grants for the construction of classrooms and for teachers' salaries. The budget also includes funds for a new program of financial aid to improve the quality of education by such means as teacher training institutes. Continuing our policy of building the research effort of the Nation, funds are recommended for the National Science Foundation to expand support for basic research and the construction of research facilities, particularly at colleges and universities, and to strengthen programs in science education.

Veterans benefits and services: Our first concern in veterans programs is that adequate benefits be provided for those disabled in the service of their country. The last increase in compensation rates for service-disabled veterans was enacted in 1957. To offset increases in the cost of living since that time. I again recommend that the Congress enact legislation to establish higher rates particularly for the severely disabled. The 1963 budget provides $64 million for this proposal.

NEW OBLIGATIONAL AUTHORITY

Before Federal funds can be spent, the Congress must enact authority for each agency to incur financial obligations. For the current year, it now appears that $3.8 billion of new obligational authority over the amount already enacted will be required. Of this amount, $2 billion represents standby authority for lending in case of need to the International Monetary Fund-in accordance with the recently concluded agreement under which other countries will make available twice this amount of standby authority. This will make a total of $95.7 billion of new obligational authority for fiscal 1962.

For 1963, my recommendations for new obligational authority total $99.3 billion. This includes substantial sums needed for forward funding of programs—such as those of the Department of Defense and the National Aeronautics and Space Administration-under which commitments are made in one year and expenditures often occur in later years.

BUDGET RECEIPTS

The estimate of budget receipts for fiscal year 1963 rests on projections of economic recovery and growth which will be discussed in the Economic Report. In brief, the revenue estimates are based on the assumption that the gross national product will rise from $521 billion in the calendar year 1961 to $570 billion in calendar 1962. At this level of output, corporate profits in calendar 1962 would be about $56.5 billion and personal income about $448 billion. These figures do not reflect the additional stimulus which would be given to investment and incomes in the economy by the investment tax credit now pending before the Congress.

Since the spring of calendar year 1961. the average gain in gross national product has been about 212 percent per quarter. The economic assumptions underlying the budget estimates will be realized with a somewhat more modest rate of gain of approximately 2 percent per quarter. This pace of advance would reduce the rate of unemployment to approximately 4 percent of the civilian labor force by the end of fiscal 1963. Budget receipts {Fiscal years. In billions]

There are, of course, uncertainties in any estimates of econmic developments so far ahead. If private demand gains greater strength than we now foresee and the current expansion accelerates, there would be a larger Federal surplus, which would be a valuable means of restraining potential inflationary pressures. If, on the other hand, the economic recovery unexpectedly halts or is reversed, revenues would fall below the current estimates and a deficit would inevitably result, moderating the economic slowdown.

Aside from revenue gains based on economic expansion, there will be larger revenue collections as a result of strengthening the strengthening the Internal Revenue Service with additional enforcement personnel. Collections are estimated to be increased $300 million during 1963 because of this effort.

Tax reform proposals: Extensive and careful consideration has already been given to the proposals enumerated in my special tax message to the Congess last April. These tax reform proposals, as I noted last year, represent a first step in improving our tax system. The House Committee on Ways and Means has made action on a similar set of recommendations its first order of business this year. I hope they will be enacted early in this session.

I particularly urge enactment of the tax credit for investment in depreciable equipment. The 8-percent credit as formulated by the Committee on Ways and Means, together with administrative revision of guidelines for depreciation now underway, will encourage modernization of productive equipment in private industry desirable alike to improve the Nation's potential for economic growth and the ability of our producers to compete with those abroad.

Any net reduction in fiscal 1963 revenues resulting from adoption of the investment credit is expected to be offset by additional revenues resulting from the enactment of measures to remove defects and inequities in the tax structure, including:

Corrective legislation with respect to the tax treatment of gains on depreciable property, including both real and personal property, which would prevent abuses that now occur and permit greater flexibility in the rules for salvage value in determining depreciation.

A system of tax withholding on dividend and interest income, needed to overcome the serious loss of revenue and the unfairness resulting from the failure of some individuals to report these types of income on their tax returns.

Repeal of the exclusion from an individual's taxable income of the first $50 of dividends and the credit against tax of 4 percent of additional dividends.

Statutory provisions to cope with the problem of business deductions for entertainment and gifts and other expense account items.

Legislation to eliminate unwarranted tax preferences now received by several special types of institutions. Earnings of cooperatives reflecting business activities should be currently taxed either to the cooperatives or to the patrons; special provisions now applicable to mutual fire and casualty insurance companies should be repealed; and the tax deductible reserve provisions applicable to mutual savings banks and savings and loan associations should be amended to assure nondiscriminatory taxation among competing financial institutions.

Revision of the tax treatment of foreign income to serve the overall objective of tax neutrality between domestic and foreign operations. This requires eliminating tax deferral privileges except in less developed countries, and tightening up on other preferences given to foreign income under existing law. These involve (a) tax haven operations, (b) taxation of foreign investment companies, (c) taxation of American citizens who are resident abroad, (b) estate tax

on real property abroad, (e) computation of allowances for foreign tax credits on dividends, and (f) taxation of foreign trusts.

Extension of present tax rates: The budget outlook for 1963 requires that the present tax rates on corporation income and certain excises be extended for another year beyond their scheduled expiration date of June 30, 1962. Existing law calls for changes which would lower the general corporation income tax rate from 52 to 47 percent; reduce the excise rates on distilled spirits, beers, wines, cigarettes, passenger automobiles, and automobile parts and accessories; and allow the tax on general telephone services to expire. I recommend postponement of these changes for another year to prevent a revenue loss of $2.8 billion in 1963.

Transportation tax and user charges: Under existing law, the 10-percent tax on transportation of persons is scheduled for reduction to 5 percent on July 1, 1962. This tax poses special problems for common carriers which must compete with private automobiles not subject to the tax. At the same time it is clearly appropriate that passengers and shippers who benefit from special Government programs should bear a fair share of the costs of these programs.

Accordingly, I recommend that the present 10-percent tax as it applies to passenger transportation other than by air be repealed effective July 1, 1962. I also recommend enactment of new systems of user charges for commercial and general aviation and for transportation on inland waterways.

More specifically, I recommend that the following user charges be enacted, effective January 1, 1963, with the receipts to be retained in the general fund: (a) a 5-percent tax on airline tickets and on airfreight waybills; (b) a 2-centper-gallon tax on all fuels used in commercial air transportation, including jet fuels; and (c) a 3-cents-per-gallon tax on all fuels used in general aviation. The January 1, 1963, effective date will allow time for review by the Civil Aeronautics Board of fare adjustments that might be required by these user charges. Pending the proposed tax changes, the present 10 percent tax on air transportation and the 2-cents-per-gallon aviation gasoline tax should be continued until December 31, 1962.

To extend the principle of user charges to inland waterways, a tax of 2 cents per gallon should be applied to all fuels used in transportation on these waterways, effective January 1, 1963.

PUBLIC DEBT

Changes in the public debt from year to year reflect mainly the amount of the budget surplus or deficit. With a budget surplus of $500 million proposed for 1963, the public debt on June 30, 1963, is expected to be $294.9 billion compared with $295.4 billion at the end of the current year.

The limit on the public debt now stands at $298 billion until June 30, 1962, after which the permanent ceiling of

For details, see table 8 in pt. 2 of this document. The current limit would impose serious operating difficulties on the Treasury during the remainder of fiscal 1962. The critical stage in functioning under the present limit is upon us and the Treasury is without any margin to meet unexpected contingencies. Although the total debt will decline to $295.4 billion after the receipt of taxes in June, customary seasonal patterns of expenditures in excess of receipts can be expected to raise the total debt above the present $298 billion temporary limit at times during the intervening months.

Despite the expectation of budget balance for fiscal 1963 as a whole, with the debt expected to return to the $295 billion level on June 30, 1963, seasonal requirements will temporarily raise the outstanding debt during the course of the year to nearly $305 billion. To make the usual allowance for a margin of flexibility in fiscal 1963, and to restore immediately needed flexibility for operations over the remainder of fiscal 1962, I urge prompt enactment of a temporary increase of the debt limit to $308 billion, to be available for the remainder of this year and throughout fiscal 1963.

BUDGET AND FISCAL POLICY

Beyond the specific elements of budget expenditures and receipts, it is necessary to consider the relationship of the budget as a whole to the national economy. Three aspects of this relationship have been given particular attention in the preparation of this budget.

The budget and economic growth and stability: Our national economic policy is to achieve rapid economic progress for the Nation, with the benefits widely distributed among all parts of the population, to achieve and maintain levels of employment and output commensurate with our growing labor force and productive capacity, and at the same time to maintain reasonable price stability.

The Federal budget has a major role to play in achieving these objectives. Basic investments and services of large importance to the Nation are provided through the Government. Striking evidence of this contribution is that the Federal budget today supports about two-thirds of all the scientific research and development going forward in the

Nation. The budget also supports education, transportation, and other developmental activities contributing to national growth.

Federal budget policy also has a major role to play in economic stabilization. This role was evident in fiscal years 1961 and 1962, when deficits were incurred in turning the business cycle from recession to recovery, as had been true in 1958-59 and in earlier recessions.

We do not expect another economic recession during the period covered by this budget. However, experience has taught us that periodic fluctuations in the economy cannot be completely avoided, and that Federal fiscal policy should work flexibly and promptly in such situations. For this, we need standby plans, the merits and mechanics of which have been explored ahead of time by the Congress and the administration.

Three proposals particularly merit congressional consideration at this time: First, the President should be given standby discretionary authority, subject to congressional veto, to reduce personal income tax rates on clear evidence of economic need, for periods and by percentages set in the legislation.

Second, he should have standby power to initiate, when unemployment rises sharply, a temporary expansion in Federal and federally aided public works programs including authority for new Federal grants and loans for State and local capital improvements. The legislation providing for such an antirecession program should insure that projects to be financed will meet high-priority needs, will be started promptly and completed rapidly, and will result in a net addition to Federal, State, or local expenditures.

Third, legislation should be enacted to strengthen considerably the FederalState unemployment insurance system, including a permanent system of extended unemployment benefits for workers whose regular benefits expire-in good times or bad for workers with long work experience and in recession periods for all workers. These recommendations will be discussed in the Economic Report.

The budget and the balance of payments: In formulating this budget, careful consideration has been given to the impact on our international balance of payments of Federal expenditures abroad for defense, foreign assistance, and the conduct of foreign affairs. During the coming year, U.S. Government expenditures abroad are estimated to be $4.4 billion, compared with $4.6 billion in the current year, mainly for construction and procurement of goods and services for U.S. military and civilian operations abroad; military and civilian salaries; and the fraction of foreign assistance which does not directly finance U.S. exports. The 1963 estimate reflects many actions which have been taken to reduce the level of Government expenditures abroad. We are managing to strengthen our military defenses overseas without increasing our foreign exchange outlays,

and with respect to economic aid we are stressing even further the procurement of American goods and services.

This budget also reflects other measures we are taking to improve the balance of payments, including tax measures to encourage the modernization of productive equipment and consequent increases in our competitive ability in world markets, stepped up export promotion activities, greater encouragement to foreign travel in the United States, and reduced tax inducements to invest in developed areas abroad rather than at home. To improve further our balance-of-payments position, we are continuing negotiations with other industrialized countries with the objective of increasing their purchases of defense materiel in the United States and their contributions to the economic advance of the developing countries.

Basic improvement in our balance of payments will depend primarily upon our ability to continue a high degree of overall price stability and to improve the competitive position of U.S. goods in world markets. The dynamic development and prospective expansion of the European Economic Community are resulting in fundamental changes in world commerce. This pattern of growth presents us with unparalleled export opportunity as well as a continuing challenge. We must meet these changes boldly, confident in our continuing ability to compete on the world markets and to participate in the enormous benefits to all concerned which accrue from the worldwide division of labor and expansion of trade. These are the objectives of the legislative recommendations concerning trade expansion which I shall be sending to the Congress shortly in special message.

The budget and Federal capital outlays: In contrast with the practice of many businesses, State and local governments, and foreign governments, the budget of the U.S. Government lumps together expenditures for capital investment and for current operations. Nevertherless it is clearly of importance, in analyzing the significance of the Federal budget to the Nation, to recognize that the budget includes substantial expenditures for loans, public works, and other durable assets and capital items which will yield benefits in future years.

Furthermore, increasing attention has been given in recent years to the significance of "developmental" expenditures outlays for education and training, and for research, which have the effect of adding to the Nation's level of knowledge and of skill, and thereby increase the capacity to produce a larger national output in future years.

In the 1963 budget, expenditures for Federal civil public works are estimated to be $2.5 billion, and another $1.5 billion is estimated for additions to State, local, and private physical assets. About $7 billion of loan disbursements, to be repaid later, will be made in 1963-including mortgage purchases; repayments in 1963 of loans previously made are expected to total $5 billion, resulting

in net budget expenditures of $2 billion for civil loans. An estimated $4.8 billion will be spent for civil developmental purposes such as education, training, health, and research and development.

Certain trust fund transactions add to the Nation's assets, as well. For example, în 1963, $3.2 billion will be spent for grants to States for highways through the highway trust fund.

EFFICIENCY AND ECONOMY IN THE PUBLIC SERVICE

The effort to increase the degree of efficiency with which the public business is conducted requires constant and unremitting effort on many fronts. This budget reflects continuing improvement in many agencies in productivity per employee, brought about through better training, better supervision, more effective organization, and more efficient equipment.

The first requirement for efficiency and economy in Government is highly competent personnel. In this regard we face one very important problem on which I am placing a new recommendation before the Congress.

This is the urgent need to achieve a reform of white-collar salary systems to enable the Government to obtain and keep the high quality personnel essential for its complex and varied programs. Such a reform should bring career employee salaries at all except the very top career levels into reasonable comparability with private enterprise salaries for the same level of work, and provide salary structures with pay distinctions more adequately reflecting differences in degree of responsibility. These two fundamental standards have been widely supported in the past as proper objectives in determining Government salary structures and I now urge that they be given practical effect.

The legislation I am proposing provides for some adjustment in nearly all salary grades, but it is clear that the higher grades have fallen furthest below the level of reasonable comparability and must therefore be given the greatest percentage increases to make the Government competitive.

There is also a need for more equitable recognition than is presently provided for postal employees, most of whom spend their entire careers in a single pay level. The proposed reform meets this need directly by increasing the number and size of in-grade steps and by replacing the present longevity increases with additional step increases. The proposal takes into account the career character of the large postal carrier and clerk employee group, recruited at grade PFS4. by linking their pay with employees paid under the Classification Act at GS-5.

To ease the budget impact, and to provide ample time for the Congress to study the matter in the light of additional information which will become available annually, I am suggesting that the new pay scales take effect in three annual stages, beginning January 1. 1963.

Important steps to improve the military pay structure, particularly for

higher ranking officers, have been taken in recent years, first in 1955 and, more significantly, in 1958. However, the adjustments now being recommended in civilian compensation require study of the possible need for further changes in military compensation. Consequently, I am directing that a thorough review be made which will permit an up-to-date appraisal of the many elements of military compensation and their relationship to the new proposed levels of civilian compensation. There is one area, however, which has already been adequately reviewed. To reflect an acknowledged rise in housing costs, I am proposing legislation to provide selective increases in the basic allowance for quarters payable to military personnel. As in the case of the civilian pay adjustments, these increases should take effect January 1, 1963.

Pay adjustments alone will not assure high standards of employee competence. There must be scrupulous fairness in recruiting and assigning personnel-and we have given renewed emphasis to equality of opportunity in the Federal service. There must be absolute integrity in all dealings with the public and with policy questions-and we have established clearer and stronger guides on ethical standards and recommended improvement in the conflict of interest statutes. There must be careful attention to the views of employees and their organizations-and we are placing into effect the recommendations of the task force on employee-management relations in the Federal service.

Efficiency and economy require also steady improvement in the organization of the executive branch. Notable advances were made this past year, with the cooperation of the Congress; new and stronger organizations for foreign aid, for disarmament, for civil defense, and for maritime activities were established; a number of regulatory commissions were substantially strengthened; and new centralized agencies were established in the Department of Defense for intelligence and for supply activities. A number of further recommendations are pending in the Congress, notably the proposal to establish a new Department of Urban Affairs and Housing, on which I urge early action.

Finally, increased efficiency requires systematic study of ways and means to accomplish the public business more effectively and at less cost. This work goes forward continually in all fields. I cite by way of illustration a few current examples:

The study, now well along toward completion, of the use of contracts with educational institutions, nonprofit corporations, and private business concerns for the management of Government research and development activities. This study of "contracting out" is being made by the Bureau of the Budget with the cooperation of the principal agencies concerned, and is expected to provide much more information on these matters than has been available heretofore.

72100-s J-87-2-3

Studies, recently completed or in progress, of the operations and management of the Export-Import Bank and the Federal Communications Commission. These studies are made by management consulting firms, and are similar to those completed in recent years for the Federal Trade Commission, the Civil Aeronautics Board, and the Interstate Commerce Commission, all of which produced recommendations of considerable value.

The study, organized at the request of the Department of State by the Carnegie Endowment for International Peace, of personnel requirements-and ways of meeting those requirements-for U.S. activities overseas in the light of present-day conditions in the world.

Studies of this kind normally do not produce headlines, but they are typical of the effort continually underway to raise the efficiency and reduce the cost of conducting the public business.

CONCLUSION

This budget represents a blending of many considerations which affect our national welfare. Choices among the conflicting claims on our resources have necessarily been heavily influenced by international developments that continue to threaten world peace. At the same time, the budget supports those activities that have great significance to the Nation's social and economic growth-the mainsprings of our national strength and leadership. In my judgment, this budget meets our national needs within a responsible fiscal framework-which is the test of the budget as an effective instrument of national policy. I recommend it to the Congress for action, in full confidence that it provides for the prudent use of our resources to serve the national interest.

JOHN F. KENNEDY.

JANUARY 18, 1962. APPROPRIATIONS FOR AIRCRAFT, MISSILES, AND NAVAL VESSELS

The VICE PRESIDENT laid before the Senate a communication from the Deputy Secretary of Defense, transmitting a draft of proposed legislation to authorize appropriations during fiscal year 1963 for aircraft, missiles, and naval vessels for the Armed Forces; which, with the accompanying paper, was referred to the Committee on Armed Services.

REPORT OF TRACKING FACILITIES WITH THE GOVERNMENT OF AUSTRALIA

The VICE PRESIDENT laid before the Senate a communication from the Administrator of National Aeronautics and Space Administration, transmitting, pursuant to law, a report of cooperative agreements with the Government of the Commonwealth of Australia for the establishment and operation of various tracking facilities at Woomera, Australia, to support the space satellite activities of the civilian space program; which was referred to the Committee on Aeronautical and Space Sciences.

REPORT OF FEDERAL CROP INSURANCE CORPORATION

The VICE PRESIDENT laid before the Senate a communication from the Assistant Secretary of Agriculture, transmitting, pursuant to law, the annual report of the operations of the Federal Crop Insurance Corporation for the calendar year 1961; which, with the accompanying report, was referred to the Committee on Agriculture and Forestry. FEDERAL POWER COMMISSION PUBLICATIONS

The VICE PRESIDENT laid before the Senate a communication from the Chairman of the Federal Power Commission, transmitting copies of the following publications issued by the Commission: "Statistics of Natural Gas Companies, 1960"; "Steam-Electric Plant Construction Cost and Annual Production Expenses, 1960"; "Hydroelectric Plant Construction Cost and Annual Production Expenses, 1960"; "Statistics of Electric Utilities, 1960, Privately Owned"; and "Principal Electric Facilities, 1961."

Ordered, That the communication, with the accompanying documents, be referred to the Committee on Commerce. GRANT OF PERMANENT RESISTANCE TO CERTAIN ALIENS UNDER SECTION 6 OF THE REFUGEE RELIEF ACT OF 1953

The VICE PRESIDENT laid before the Senate a communication from the Commissioner of Immigration and Naturalization Service, Department of Justice. transmitting, pursuant to law, a report granting the application for permanent residence of a certain alien, pursuant to section 6 of the Refugee Relief Act of 1953, together with the reason for such grant; which, with the accompanying paper. was referred to the Committee on the Judiciary.

SUSPENSION OF DEPORTATION OF ALIENS

The VICE PRESIDENT laid before the Senate four communications from the Commissioner of Immigration and Naturalization Service, Department of Justice, transmitting, pursuant to law, reports stating all the facts and pertinent provisions of law in the cases of certain aliens whose deportation has been suspended, together with a statement of the reasons for such suspension; which, with the accompanying papers, were referred to the Committee on the Judiciary.

REPORT OF NATIONAL MEDIATION BOARD
AND
NATIONAL RAILROAD ADJUSTMENT

BOARD

The VICE PRESIDENT laid before the Senate a communication communication from the Chairman of the National Mediation Board, transmitting, pursuant to law, the 27th Annual Report of the National Mediation Board, together with a report of the National Railroad Adjustment Board, for the fiscal year 1961; which, with the accompanying report, was referred to the Committee on Labor and Public Welfare.

PETITION

The VICE PRESIDENT laid before the Senate a resolution of the Legisla

ture of the Territory of Guam, commending the achievements of the Governor of Guam in the short period since he assumed office; which was referred to the Committee on Interior and Insular Affairs.

REPORTS OF COMMITTEES

Mr. ROBERTSON, from the Committee on Banking and Currency, to whom was referred the resolution (S. Res. 233) to investigate, and make expenditures in connection with, certain matters within its jurisdiction, reported it without amendment and submitted a report (No. 1122) thereon; and

Ordered, That it be referred to the Committee on Rules and Administraand Administration.

Mr. HILL, from the Committee on Labor and Public Welfare, to whom was referred the resolution (S. Res. 252) authorizing the Committee on Labor and Public Welfare to employ temporarily an additional assistant chief clerk and additional staff and clerical personnel, reported it without amendment: and

Ordered, That it be referred to the Committee on Rules and Administration. Mr. SPARKMAN, from the Committee on Banking and Currency, to whom was referred the resolution (S. Res. 244) authorizing the Committee on Banking and Currency to investigate matters relating to public and private housing, reported it without amendment and submitted a report (No. 1123) thereon; and Ordered, That it be referred to the Committee on Rules and Administration.

CHANGE OF REFERENCE

On motion by Mr. MCNAMARA, and by unanimous consent.

Ordered, That the Committee on Labor and Public Welfare be discharged from the further consideration of the resolution (S. Res. 238) extending time for filing a report by the Special Committee on Aging and that it be referred to the Committee on Rules and Administration.

INTRODUCTION OF BILLS

Bills were introduced, severally read the first and second times by unanimous consent and referred as follows:

By Mr. DIRKSEN:

S. 2704. A bill to authorize the conveyance of certain surplus Federal lands to the State of Illinois for wildlife, conservation, and recreational purposes; to the Committee on Government Operations.

By Mr. JACKSON (for himself and Mr. MAGNUSON):

S. 2705. A bill to change the name of Whitman National Monument to Whitman Mission National Historic Site; to the Committee on Interior and Insular Affairs.

By Mr. MORSE:

S. 2706. A bill for the relief of Lee Soon Him; to the Committee on the Judiciary.

By Mr. MAGNUSON:

S. 2707. A bill to facilitate the application and operation of the Fish and Wildlife Act of 1956, and for other purposes; to the Committee on Commerce.

By Mr. BENNETT:

S. 2708. A bill to provide for certain bridge and highway construction as part bridge and highway construction as part of the Glen Canyon unit of the Colorado River storage project in order to enable highway traffic to cross the Glen Canyon National Recreation Area and Lake Powell; to the Committee on Public Works.

By Mr. DOUGLAS:

S. 2709. A bill for the relief of Ernst Fraenkel and his wife, Hanna Fraenkel: to the Committee on the Judiciary.

By Mr. YARBOROUGH:

S. 2710. A bill to place the Archivist of the United States on the Civil War Centennial Commission; to the Committee on the Judiciary.

By Mr. HUMPHREY:

S. 2711. A bill for the relief of Tasia Demetropoulou (Dimitropoulos); to the Committee on the Judiciary.

By Mr. JOHNSTON:

S. 2712. A bill to amend the provisions of law relating to longevity step increases for postal employees; to the Committee on Post Office and Civil Service.

By Mr. SMATHERS:

S. 2713. A bill for the relief of Jordan Tomicic (Giordano Tomicich); to the Committee on the Judiciary.

By Mr. ERVIN:

S. 2714. A bill for the relief of Dr. Nourollah Shadi; and

S. 2715. A bill for the relief of ManPan Hui; to the Committee on the Judiciary.

By Mr. DIRKSEN:

S. 2716. A bill to amend section 170 of the Internal Revenue Code of 1954 with respect to certain organizations for judicial reform; to the Committee on Finance.

EXPRESSION OF SENSE OF SENATE ON PROJECT HOPE

Mr. HUMPHREY submitted the following resolution (S. Res. 255); which was referred to the Committee on Foreign Relations:

Whereas the need for ever-increasing peaceful, humanitarian cooperation between the people of the United States and the peoples of other nations of the world is apparent; and

Whereas, under the authorization of the President of the United States, the United States Navy has furnished a mothballed hospital ship to the Peopleto-People Health Foundation, Incorporated, under private charter; and

Whereas the People-to-People Health Foundation, Incorporated, also known as Project Hope, has engaged and staffed and equipped the naval hospital ship Consolation-now known worldwide as the steamship Hope I—as a floating medical and health teaching-training center which late in 1961 completed an extremely successful one-year tour of Indonesia and South Vietnam with a staff of volunteer American medical and health personnel and will spend 1962 visiting our South American neighbor. Peru; and

Whereas the chief purpose of Project Hope is to bring to the medical and health professions of the nations that health professions of the nations that

the SS Hope I visits the latest skills and techniques developed by our American medical and health professions; and

Whereas the floating medical center is staffed with American men and women selected from among the top of the medical, dental and health professions; and

Whereas the moneys needed to staff and operate this hospital ship are raised from private sources throughout our Nation; and

Whereas Project Hope has received the enthusiastic support of government, industry, business, labor, the medical, pharmaceutical, and dental professions and private citizens throughout the Nation: Therefore be it

Resolved by the Senate, That Project Hope be commended as another step in increasing good will throughout the world and in bringing the peoples of all nations together in a bond of mutual trust, friendship and cooperation.

STUDY OF ADMINISTRATIVE PRACTICE AND PROCEDURE

Mr. EASTLAND, from the Committee on the Judiciary, reported the following resolution (S. Res. 256); which was referred to the Committee on Rules and Administration:

Resolved, That the Committee on the Judiciary, or any duly authorized subcommittee thereof, is authorized under lative Reorganization Act of 1946, as sections 134(a) and 136 of the Legisamended, and in accordance with its jurisdictions specified by rule XXV of the Standing Rules of the Senate, to make a full and complete study and investigation of administrative practice and procedure within the departments and agencies of the United States in the exercise of their rulemaking, licensing, and adjudicatory functions, including a study of the effectiveness of the Administrative Procedure Act, with a view to determining whether additional legislation is required to provide for the fair, impartial, and effective performance of such functions.

SEC. 2. For the purposes of this resolution the committee, from February 1. 1962, to January 31, 1963, inclusive, is authorized (1) to make such expenditures as it deems advisable; (2) to employ upon a temporary basis, technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person so selected shall be appointed and his compensa tion shall be so fixed that his gross rate shall not be less by more than $1,400 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government.

SEC. 3. The committee shall report its findings, together with its recommendations for legislation as it deems advisable, to the Senate at the earliest prac