Carl Riggs, State educational agency, West Virginia. James L. Reid, State educational agency, Maryland. Leslie P. Parmalee, State educational agency, Washington, D. C. E. E. Taylor, State educational agency, New York. Please accept our thanks for your assistance in arranging for our spokesman, Mr. Moore, to appear before the committee. Our committee is reporting back to our respective States the many courtesies extended to us. Cordially yours, S. W. PATTERSON, California. STATEMENT OF AGREEMENT BETWEEN THE MUNITIONS BOARD, NATIONAL DEFENSE ESTABLISHMENT, AND THE BUREAU OF FEDERAL SUPPLY, DEPARTMENT OF THE TREASURY, ON PROCEDURES FOR THE DEVELOPMENT OF A UNIFORM FEDERAL CATALOG SYSTEM The Munitions Board Cataloging Agency has embarked upon a comprehensive 3-year program to provide a uniform catalog system for all items of armed services supply. This program was initiated in recognition of the urgent military need for a common language for supply activities. The Bureau of Federal Supply has been active in the planning for a Federal catalog system in compliance with Presidential directives and its basic responsibility for the development and maintenance of the Federal Standard Stock Catalog. This planning was participated in by the Military Establishment and several of the larger civil establishments. There is now pending before the Congress a bill to reorganize and simplify the procurement, utilization, and disposal of Government property, and for other purposes which provides, among other things, for the transfer of the Bureau of Federal Supply to the Federal Works Agency and authorizes the Federal Works Administrator "As he may deem necessary for the effectuation of his functions under this title, and after adequate advance notice to the agencies affected, and with due regard to the requirements of the National Military Establishment as determined by the Secretary of Defense * to establish and maintain such uniform Federal supply catalog system to identify and classify personal property under the control of Federal agencies as may be appropriate Also, "Each executive agency shall utilize such uniform Federal supply catalog system and standard purchase specifications as far as practicable, taking into consideration efficiency, economy, and other interests of the Government." * * " Pending action of the Congress on the above bill, it is recognized that the interests of the Federal Government can best be served through continuing close cooperation and working contacts between the cataloging activities of the civil and military establishments. To this end the following agreements have been reached between the Munitions Board and the Bureau of Federal Supply: (1) That the present plans and procedures of the Munitions Board Cataloging Agency are satisfactory for initiating Federal catalog operations. It is understood that the Agency is further developing the elements of cataloging in accordance with basic principles developed under the sponsorship of the United States Standard Commodity Catalog Board; (2) That certain revisions and expansions in plans and procedures must be made as work progresses to provide for the requirements of civilian agencies; (3) That the question of classification will require close coordination with the civilian agencies and the Munitions Board Cataloging Agency in order to develop a commodity supply classification system which will be practical and workable for all organizations; (4) That any civilian agency having major supply problems should be represented on the technical group of the Munitions Board Cataloging Agency. The Bureau of Federal Supply will, with the concurrence of the Bureau of the Budget, develop recommendations to the Cataloging Agency as to the agencies which should be represented; (5) That the Bureau of Federal Supply shall have one member and one alternate on the executive group of the Munitions Board Cataloging Agency, for representation of civilian agencies; (6) That after completion of the current "3-year program" of the Munitions Board Cataloging Agency, the respective future responsibilities of the Agency and the Bureau of Federal Supply would, in the absence of legislative direction, be determined by agreement between the Secretary of Defense and the Secretary of the Treasury; (7) That the Bureau of Federal Supply will be responsible for such coordination as will assure that cataloging developments initiated by the Munitions Board Cataloging Agency are made available to interested civil establishments. Director, Bureau of the Budget, Washington, D. C. MY DEAR MR. SMITH: I think it important that the executive departments and agencies develop more systematic records and procedures for use in all transactions requiring a description of items of real and personal property. The large number of actions relating to the acquistion, care, use, and disposal of Federal property has greatly accentuated the need for this improvement in governmental practices, both for the effective prosecution of the war and for the more orderly conduct of peacetime affairs. Such records and procedures should be developed by the several departments and agencies chiefly concerned in accordance with a uniform central plan developed by you. This plan should include a uniform property clasification and a uniform item identification system, covering all commodities, which together might be known as the United States Standard Commodity Catalog. Accordingly, it is my desire that you proceed without delay to secure the preparation and maintenance of such a catalog, utilizing all relevant systems and methods now in use by the Government to the extent that they conform with the central plan, and utilizing also the facilities and services of the agencies principally concerned. It is my wish, and I hereby request, that each department and agency shall assume such share of the work and responsibility as you may determine. Any necessary costs to the several departments and agencies beyond those they are now incurring for similar activities should be included in additional estimates of appropriations. When the Standard Commodity Catalog or any part of it is ready for use it should be promulgated by you for use throughout the Government in all relevant activities involving the procurement, storage, issue, disposal, or intra-Government transfer of property, the listing or cataloging of property, and the collection and tabulation of commodity information. Pending the formalizing of these instructions in an Executive order, I wish you would convey to all departments and agencies my instructions regarding this matter and take whatever steps are necessary to develop and maintain the catalog. Sincerely yours, FRANKLIN D. ROOSEVELT. EXECUTIVE OFFICE OF THE PRESIDENT, Hon. HENRY MORGENTHAU, Jr., BUREAU OF THE BUDGET, Washington, D. C., March 6, 1945. Secretary of the Treasury, Washington, D. C. MY DEAR MR. SECRETARY: In a letter of January 18, the President requested that I develop a uniform property classification and a uniform item identification system, to be used throughout the Government and covering all commodities, which together might be known as the United States Standard Commodity Catalog. He asked that all relevant systems and methods now in use by the Government be utilized to the extent that they may conform with the central plan, together with the facilities and services of the agencies principally concerned. He further asked that each department and agency should assume such share of the work and responsibility as I may determine. The inclusion of responsibility for item identification in this directive has special importance for the Treasury, War, and Navy Departments. I am therefore proposing to exercise this portion of the responsibility given me by the establishment of a United States Standard Commodity Catalog Board, to be composed of one representative of each of these Departments (unless the Secretary of War should desire separate representatives for the ASF and the AAF), together with the Assistant Director of the Budget in charge of statistical standards, who will be named as Chairman. Subject to approval by the Director of the Budget, the Board will develop specifications and a central plan of work for the preparation of the catalog and will make work assignments to appropriate agencies. The Board will be suported by a technical Committee on Commodity Catalog to include two representatives from each of the three Departments, the members to be designated by their corresponding principals on the board, together with representatives of the Bureau of the Budget who will provide liaison between the committee and certain other related activities. The existing Interdepartmental Committee on Commodity Classification and its subordinate committees will be retained in present form to complete their tasks, which underlie the further work on item identification and the commodity catalog. The representative of the Treasury Department on this Committee was formerly Mr. John L. Sullivan, and I assume that you will wish to replace him in its membership. These proposals have been discussed with Messrs. Daniel W. Bell, John W. Pehle and Clifton E. Mack of your Department, who have assured me of its full cooperation. I therefore request that you inform me at your early convenience of your designee to represent your Department on the United States Standard Commodity Catalog Board, and also of your choice of a departmental representative to replace Mr. Sullivan on the Committee on Commodity Classifica tion. I enclose a copy of the President's letter. HAROLD D. SMITH, Director. EDUCATIONAL EXCHANGES UNDER PUBLIC LAW 584, SEVENTY-NINTH CONGRESS, (THE FULBRIGHT ACT) Public Law No. 584, Seventy-ninth Congress, authorizes the use of foreign currencies derived from the sales of surplus property abroad for financing an exchange of persons between the United States and participating foreign countries. This legislation was proposed with two compelling factors in mind: (1) The need for broader international understanding and (2) the shortage of dollars. Other nations wished to purchase the millions of dollars worth of surplus property which the United States shipped abroad during the war, but they could not obtain enough American dollars to do so. Public Law 584 authorizes the Secretary of State to negotiate executive agreements for the use of foreign currencies realized through such surplus property sales for educational exchange. Since the passage of the act, executive agreements have been signed with 10 governments: Belgium and Luxembourg, jointly; Burma, China, France, Greece, Italy, New Zealand, the Republic of the Philippines, and the United Kingdom. The general responsibility for the direction and administration of the program rests with the Department of State. The administration of the program activities abroad is carried out in each country by the respective United States Educational Foundation, or Commission, established for this purpose according to the terms of the separate executive agreements. The foundations and commissions are composed of citizens of the United States and of the participating foreign countries. As provided by the law, the selection of individuals to receive awards and the approval of participating educational institutions is the function of the Board of Foreign Scholarships. The following persons appointed by the President are now serving on the Board: Francis T. Spaulding, Commissioner of Education of the State of New York, Chairman. Helen C. White, professor of English, University of Wisconsin, Vice Chairman. John N. Andrews, personal representative of the Administrator, Veterans' Administration. Sarah Gibson Blanding, president, Vassar College. Charles S. Johnson, president, Fisk University. Walter Johnson, professor of history, University of Chicago. Ernest O. Lawrence, professor of physics, University of California. Martin R. P. McGuire, professor of Greek and Latin, the Catholic University of America. Certain activities related to the selection of candidates for awards have been delegated by the Department of State, with the concurrence of the Board of Foreign Scholarships, to three cooperating agencies in the United States. These agencies disseminate information on available opportunities and receive applica tions for awards and perform preliminary screening. The Institute of International Education performs these functions for candidates for student awards; the United States Office of Education, for candidates for teacher exchange with foreign elementary and secondary schools; the Conference Board of Associated Research Councils for candidates for research scholar and visiting professor awards, and for teacher exchange in American elementary and secondary schools abroad. In the exercise of these functions, the cooperating agencies solicit the assistance and advice of competent American specialists and organizations. The fundamental purpose of the program is the promotion of international understanding through personal contact with peoples of other countries. It is expected that large numbers of American young people will be enabled over the next 20 years to have the opportunity of study and residence abroad. This experience should be invaluable to them, as potential leaders of the future, in providing insight into the actions of other nations and an understanding of their problems. A like number of foreign citizens will be brought to the United States on travel grants to receive training in fields of usefulness to their own countries and to obtain a true picture of American life through active participation. The activities carried out under the program are designed to meet the needs of the participating foreign countries and to give opportunity for the development of American interests abroad. Annual programs are drawn up initially in the separate countries by the respective foundations and commissions. Areas in need of postwar development or reconstruction formulate program activities which will assist in this process. For example, the foundation in the Philippines has indicated that there is a great need at present for the improvement of public education in that country. In the 1948 program, provision was therefore made for awards to American professors to teach and advise in such fields as vocational, secondary, and higher education. Before the separate country programs are approved by the Department, these foreign needs are judged in conjunction with activities proposed by individuals and organizations in the United States. The. final program represents a balance between these two factors and is intended to be reciprocal in nature. Since all funds, available for Fulbright programing are in foreign currency, it is not possible to pay all the expenses of foreign citizens coming to the United States as it is for Americans going abroad. However, the principle of mutual benefit guides the planning of the foundations and the Department in the belief that the objective of increased international understanding will best be served through this kind of cooperative endeavor. Analysis of grants to date (1) GRANTS TO DATE BY CATEGORIES AND COUNTRIES (AS OF APR. 1, 1949) 1 Including 2 proposed travel grants to American professors to be exchanged on a direct basis by institu tions. Analysis of grants to date-Continued (1) GRANTS TO DATE BY CATEGORIES AND COUNTRIES (AS OF APR. 1, 1949) Chairman, Committee on Expenditures in the Executive Departments, United States Senate. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of March 3, 1949, acknowledged by telephone March 7, requesting an analysis and comparison of bills S. 990, S. 991, and S. 597, Eighty-first Congress. Bills S. 990 and S. 991 are designed generally to centralize the control of procurement, utilization, and disposition of Government property in order to effect a unified and efficient program of property management. Although both bills are similar with respect to the objectives intended to be acomplished, S. 990 contains more detailed provisions as to the method by which the objectives shall be achieved. While S. 990 would centralize the property management under the control and jurisdiction of the Federal Works Administrator S. 991 would establish a new independent agency to be known as the Office of General Services, headed by an Administrator appointed by the President, by and with the advice and consent of the Senate. Although both bills provide for the consolidation of the present functions of the Bureau of Federal Supply and the War Asets Administration under one agency, S. 990 further provides for the transfer of the functions of the Director of Contract Settlement and of the Office of Contract Settlement, the Contract Settlement Act Advisory Board, and the Appeal Board to the Federal Works Agency without curtailing or increasing the functions of said boards, whereas S. 991 contains no provisions for the transfer of these functions to the new agency proposed to be created. I desire to call the committee's attention to the repeated recommendations made by me for repeal of the Contract Settlement Act and to the limitations placed by the act on the General Accounting Office which made the Office powerless to prevent or correct, or even to question, overliberal payments made in termination settlements. The audit by the General Accounting Office under the act—after payments had been made and based on such records as might be fur |