Senator HOLLAND. Let's make as clear a picture of this whole situation as we can by the statement I have made.

Thank you.

(The information referred to follows:)

The direction of Congress that has led to the deletion of fund requests for civil defense and defense mobilization functions from the budgets of the various Federal departments and agencies and the consolidation of these fund requests into a central "package" budget estimate under the heading of the Office of Civil and Defense Mobilization can best be expressed by quoting from several reports of the House Committee on Appropriations covering fiscal year 1959 appropriations. The applicable quotations follow:

HOUSE REPORT 1332, 85TH CONGRESS

Office of Defense Mobilization:

"Thus the total annual cost of administering defense mobilization activities is, in fact, unknown. The committee suggests that the Office of Defense Mobilization prepare a budget estimate for the next fiscal year which will reflect the true cost of the functions and activities under its general direction. This same method should be used for financing civil defense activities which, at present, are also scattered among the several Departments and agencies."

HOUSE REPORT 1543, 85TH CONGRESS

Federal Civil Defense Administration:

"The following agencies appeared before the committee to request approximately $1,860,000 to carry out civil defense responsibilities assigned to them by the Federal Civil Defense Administration: Department of Commerce; Corps of Engineers; Department of Health, Education, and Welfare; Post Office Department; Department of Labor; and the Housing and Home Finance Agency. The Department of Agriculture was represented, but stated it was not requesting additional funds. The committee suggests other agencies absorb the cost as Agriculture has done, but has provided $250,000 to FCDA for allocation to an agency where this is impossible and the functions to be performed are absolutely essential."

Housing and Home Finance Agency:

"The committee has specifically denied $100,000 requested for defense planning activities."

Interstate Commerce Commission:

"The committee has specifically denied $225,000 for defense mobilization functions."

HOUSE REPORT 1565, 85TH CONGRESS

Defense mobilization and civil defense activities:

"For the third time the budget included extensive requests for additional funds for defense mobilization and civil defense activities as a part of the programs of the Departments of Labor, and Health, Education, and Welfare. Following is an excerpt from the committee's report on the bill for fiscal year 1956 which was quoted in the committee's report on the bill for 1958:

"The committee has disapproved all requests from both departments, for civil defense and defense mobilization activities. It is the committee's firm belief that the scattering of the basic program authorities through the executive branch and the piecemeal consideration of appropriations for these activities by the legislative branch can result only in confusion and waste of public funds. It would appear that the only businesslike way to handle this matter would be for the central agency, charged with the primary responsibility, to prepare and present to the Congress a total, integrated program.

"The committee has not changed its opinion. All such requests have been denied and the committee will look with extreme disfavor on the diversion, for these purposes, of any funds in the bill."

HOUSE REPORT 1725, 85TH CONGRESS

Department of Commerce, general administration:

"The bulk of the requested increase was intended to provide for new positions to carry out functions delegated to the Secretary of Commerce by the Office of Defense Mobilization. As a matter of Appropriations Committee policy, funds to provide for ODM functions under this bill have been deleted, with one major exception."

Department of Commerce, Bureau of the Census:

"A request for $300,000 to carry out ODM delegated functions was deleted in accordance with the committee policy described above."

Department of Commerce, Business and Defense Services Administration: "Referring once again to the general committee policy of deleting money provided for ODM functions, an amount of $3,060,000 is identified with these functions as they are performed by the Business and Defense Services Administration. The committee has made an exception for 1959, in this instance and left these funds in the BDSA appropriation. Action is deferred until review of the budget for 1960 at which time it will be expected that functions delegated to BDSA by ODM will be funded under the ODM budget and will not appear in this bill."

The above excerpts from House reports indicates the general desire of the various subcommittee chairmen for central budgeting of these costs. The commitment to present the 1960 budget on this basis was made during the hearings on Reorganization Plan No. 1 of 1958 by letter from the Director of the Bureau of the Budget explaining the method of budgeting for appropriations of OCDM (pp. 20 and 21, H. Rept. 1874, 85th Cong.). The applicable paragraph of this letter follows:

"The appropriation for operating expenses would include funds for functions delegated to other agencies. This would be consistent with the views expressed by the Committee on Appropriations of the House in acting on the 1959 budget estimates. Of course, the need for funds for such delegated functions would be covered in the usual budget justification which would be presented by the Director of the Office of Defense and Civilian Mobilization."

Comparison of ongoing and new programs-Assignments to other Federal agencies, fiscal year 1960

4,500,000

500,000

300,000

57,000

440, 900

1, 218, 100

50,000

History of appropriations granted for Federal assignments of civil defense and defense mobilization functions