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Economic Policy Board
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1075762
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Economic Policy Board
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Vernon C. Loen and Charles Leppert Files
Vernon Loen's and Charles Leppert's General Subject Files
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President (1974-1977 : Ford). Economic Policy Board. 9/30/1974-1/20/1977
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The original documents are located in Box 7, folder "Economic Policy Board" of the Loen
and Leppert Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 7 of the Loen and Leppert Files at the Gerald R. Ford Presidential Library
Public Law 92-412
92nd Congress, S. 3726
August 29, 1972
An Act
86 STAT. 644
To extend and amend the Export Administration Act of 1969 to afford more
equal export opportunity. to establish a Council on International Economic
Policy, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
Equal export
opportunity;
international
TITLE I-AMENDMENTS TO THE EXPORT ADMIN-
economic pol-
ISTRATION ACT OF 1969
icy.
SEC. 101. This title may be cited as the "Equal Export Opportunity
Citation of
Act".
title.
SEC. 102. Section 2(3) of the Export Administration Act of 1969
83 Stat. 841.
is amended by inserting before the period at the end thereof a comma
50 USC app.
and the following: "particularly when export restrictions applied
2401.
by the United States are more extensive than export restrictions
imposed by countries with which the United States has defense treaty
commitments".
SEC. 103. Section 3 of the Export Administration Act of 1969 is 50 USC app.
amended by adding at the end thereof the following:
2402.
"(6) It is the policy of the United States that the desirability of
subjecting. or continuing to subject, particular articles, materials, or
supplies, including technical data or other information, to United
States export controls should be subjected to review by and consulta-
tion with representatives of appropriate United States Government
agencies and qualified experts from private industry."
SEC. 104. (a) Section 4(b) of the Export Administration Act of
1969 is amended-
50 USC app.
(1) by inserting (1) after (b) and
2403.
(2) by adding at the end thereof the following new paragraphs:
"(2) The Secretary of Commerce, in cooperation with appro- Export decontrol,
priate United States Government departments and agencies and the
investigation.
appropriate technical advisory committees established under section
5(c), shall undertake an investigation to determine which articles, Post, p. 645.
materials, and supplies, including technical data and other informa-
tion, should no longer be subject to export controls because of their
significance to the national security of the United States. Notwith-
standing the provisions of paragraph (1), the President shall remove
unilateral export controls on the export from the United States of
articles, materials, or supplies, including technical data or other infor-
mation, which he determines are available without restriction from
sources outside the United States in significant quantities and com-
parable in quality to those produced in the United States, except that
any such control may remain in effect if the President determines
that adequate evidence has been presented to him demonstrating that
the absence of such a control would prove detrimental to the national
security of the United States. The nature of such evidence shall be
RALD
included in the special report required by paragraph (4).
'(3) In conducting the investigation referred to in paragraph (2)
and in taking the action required under such paragraph, the Secretary
of Commerce shall give priority to those controls which apply to
articles, materials, and supplies, including technical data and other
information, for which there are significant potential export markets.
'(4) Not later than nine months after the date of enactment of the Report to
Equal Export Opportunity Act, the Secretary of Commerce shall President and
submit to the President and to the Congress a special report of actions Congress.
taken under paragraphs (2) and (3). Such report shall contain-
Pub. Law 92-412
- 2 -
August 29, 1972
86 STAT. 645
August 29, 1972
- 3 -
Pub. Law 92-412
86 STAT. 646
(A) a list of any articles, materials, and supplies, including
technical data and other information, which are subject under this
progress with respect to the investigation required by section 4(b) (2)
Act to export controls greater than those imposed by nations with
of this Act. Nothing in this subsection shall prevent the Secretary Ante, P. 644.
which the United States has defense treaty commitments, and the
from consulting, at any time, with any person representing industry
reasons for such greater controls; and
or the general public regardless of whether such person is a member
"(B) a list of any procedures applicable to export licensing
of a technical advisory committee. Members of the public shall be
in the United States which may be or are claimed to be more
given a reasonable opportunity, pursuant to regulations prescribed by
burdensome than similar procedures utilized in nations with
the Secretary of Commerce, to present evidence to such committees.
which the United States has defense treaty commitments, and the
" (3) Upon request of any member of any such committee, the Expenses, re-
reasons for retaining such procedures in their present form.".
Secretary may, if he determines it appropriate, reimburse such member imbursement.
(b) (1) Section 4(e) of such Act is amended to read as follows:
for travel, subsistence, and other necessary expenses incurred by him in
83 Stat. 842.
connection with his duties as a member.
50 USC app. 2403.
(e) The authority conferred by this section shall not be exercised
Agricultural
with respect to any agricultural commodity, including fats and oils
"(4) Each such committee shall elect a chairman, and shall meet at Meetings.
commodities,
or animal hides or skins, without the approval of the Secretary of
least every three months at the call of the Chairman, unless the Chair-
exception.
man determines, in consultation with the other members of the commit-
Agriculture. The Secretary of Agriculture shall not approve the
exercise of such authority with respect to any such commodity during
tee, that such a meeting is not necessary to achieve the purposes of this
Act. Each such committee shall be terminated after a period of two Committee
any period for which the supply of such commodity is determined by
him to be in excess of the requirements of the domestic economy,
years, unless extended by the Secretary for additional periods of two termination.
except to the extent the President determines that such exercise of
years. The Secretary shall consult each such committee with regard to
such termination or extension of that committee."
authority is required to effectuate the policies set forth in clause (B)
50 USC app. 2402. or (C) of paragraph (2) of section 3 of this Act."
SEC. 106. Section 14 of the Export Administration Act of 1969 is Ante, p. 133.
Effective date.
(2) Any rule, regúlation, proclamation, or order issued after July
amended by striking out "August 1, 1972" and inserting in lieu thereof
1, 1972, under section 4 of the Export Administration Act of 1969,
"June 30, 1974".
exercising any authority conferred by such section with respect to
SEC. 107. Nothing in this title shall be construed to require the re- Confidential
any agricultural commodity, including fats and oils or animal hides
lease or publication of information which is classified pursuant to information.
or skins, shall cease to be effective upon the date of enactment of
Executive order or to affect the confidentiality safeguards provided in
this Act.
section 7(c) of the Export Administration Act of 1969.
83 Stat. 845.
SEC. 105. Section 5 of the Export Administration Act of 1969 is
SEC. 108. The provisions of this title take effect as of the close of 50 USC app.
50 USC app.
2404.
amended by adding at the end thereof the following:
July 31, 1972.
2406.
Effective date.
Technical ad-
"(c) (1) Upon written request by representatives of a substantial
visory commit-
segment of any industry which produces articles, materials and sup-
TITLE II-COUNCIL ON INTERNATIONAL ECONOMIC
tees, appoint-
plies, including technical data and other information, which are
POLICY
ment.
subject to export controls or are being considered for such controls
because of their significance to the national security of the United
SHORT TITLE
States, the Secretary of Commerce shall appoint a technical advisory
committee for any grouping of such articles, materials, and supplies,
SEC. 201. This title may be cited as the "International Economic Citation of
including technical data and other information, which he determines
Policy Act of 1972".
title.
is difficult to evaluate because of questions concerning technical mat-
STATEMENT OF PURPOSES
ters, worldwide availability and actual utilization of production and
technology, or licensing procedures. Each such committee shall con-
SEC. 202. It is the purpose of this title to provide for closer Federal
sist of representatives of United States industry and government.
interagency coordination in the development of a more rational and
No person serving on any such committee who is representative of
orderly international economic policy for the United States.
industry shall serve on such committee for more than two consecutive
FINDINGS AND POLICY
years.
Duty and
"(2) It shall be the duty and function of the technical advisory
SEC. 203. The Congress finds that there are many activities under-
function.
committees established under paragraph (1) to advise and assist the
taken by various departments, agencies, and instrumentalities of the
Secretary of Commerce and any other department, agency, or official
Federal Government which, in the aggregate, constitute the domestic
of the Government of the United States to which the President has
and international economic policy of the United States. The Congress
delegated power, authority, and discretion under section 4(d) with
further finds that the objectives of the United States with respect to
respect to actions designed to carry out the policy set forth in section
a sound and purposeful international economic policy can be better
3 of this Act. Such committees shall be consulted with respect to ques-
accomplished through the closer coordination of (1) domestic and
tions involving technical matters, worldwide availability and actual
foreign economic activity, and (2) in particular, that economic
utilization of production and technology, and licensing procedures
behavior which, taken together, constitutes United States interna-
which may affect the level of export controls applicable to any articles,
tional economic policy. Therefore this Act establishes a Council on Council on
materials, or supplies, including technical data or other information,
International Economic Policy which will provide for-
International
and including those whose export is subject to multilateral con-
trols undertaken with nations with which the United States has
(A) a clear top level focus for the full range of international Economic Pol-
economic issues; deal with international economic policies includ- icy, establish-
defense treaty commitments, for which the committees have expertise.
ing trade, investment, balance of payments, and finance as a ment.
Such committees shall also be consulted and kept fully informed of
coherent whole;
Pub. Law 92-412
- 4 -
August 29, 1972
August 29, 1972
- 5 -
Pub. Law 92-412
86 STAT. 647
86 STAT. 648
sistent international economic policy, and make recommendations
(B) consistency between domestic and foreign economic policy;
to the President in connection therewith.
and
(5) Continually assess the progress and effectiveness of Fed-
(C) close coordination with basic foreign policy objectives.
eral efforts to carry out a consistent international economic
The Congress intends that the Council shall be provided with the
policy.
opportunity to (i) investigate problems with respect to the coordi-
(6) Make recommendations to the President for domestic and
nation, implementation, and long-range development of international
foreign programs which will promote a more consistent interna-
economic policy, and (ii) make appropriate findings and recommen-
tional economic policy on the part of the United States and
dations for the purpose of assisting in the development of a rational
private industry. Recommendations under this paragraph shall
and orderly international economic policy for the United States.
include, but shall not be limited to, policy proposals relating to
monetary mechanisms, foreign investment, trade, the balance
CREATION OF COUNCIL ON INTERNATIONAL ECONOMIC POLICY
of payments, foreign aid, taxes, international tourism and avia-
SEC. 204. There is created in the Executive Office of the President a
tion, and international treaties and agreements relating to all
Council on International Economic Policy (hereinafter referred to in
such matters. In addition to other appropriate objectives, such
this title as the "Council").
policy proposals should be developed with a view toward-
(A) strengthening the United States competitive position
in world trade;
MEMBERSHIP
(B) achieving equilibrium in international payment
SEC. 205. The Council shall be composed of the following members
accounts of the United States;
and such additional members as the President may designate:
(C) increasing exports of goods and services;
(1) The President.
(D) protecting and improving the earnings of foreign
(2) The Secretary of State.
investments consonant with the concepts of tax equity and
(3) The Secretary of the Treasury.
the need for domestic investment;
(4) The Secretary of Defense.
(E) achieving freedom of movement of people, goods, capi-
(5) The Secretary of Agriculture.
tal, information, and technology on a reciprocal and world-
(6) The Secretary of Commerce.
wide basis;
(7) The Secretary of Labor.
(F) increasing the real employment and income of workers
(8) The Director of the Office of Management and Budget.
and consumers on the basis of international economic activity;
(9) The Chairman of the Council of Economic Advisers.
and
(10) The Special Representative for Trade Negotiations.
(G) preserving the diversified industrial base of the United
The President shall be the Chairman of the Council and shall preside
States.
over the meetings of the Council; in his absence he may designate a
REPORT
member of the Council to preside in his place.
SEC. 207. (a) The President shall transmit to the Congress an annual International
report on the international economic position of the United States. Economic Report,
DUTIES OF THE COUNCIL
Such report (hereinafter referred to as the "International Economic
submittal to
SEC. 206. Subject to the direction of the President, and in addition
Report") shall be submitted not later than sixty days after the begin-
Congress.
to performing such other functions as he may direct, the Council
ning of each regular session of the Congress, and shall include-
shall-
(1) information and statistics describing characteristics of
(1) Assist and advise the President in the preparation of the
international economic activity and identifying significant cur-
International Economic Report required under section 207.
rent and foreseeable trends and developments;
(2) Review the activities and the policies of the United States
(2) a review of the international economic program of the
Government which indirectly or directly relate to international
Federal Government and a review of domestic and foreign eco-
economics and, for the purpose of making recommendations to
nomic conditions and other significant matters affecting the
the President in connection therewith, consider with some degree
balance of international payments of the United States and of
of specificity the substance and scope of the international eco-
their effect on the international trade, investment, financial, and
nomic policy of the United States, which consideration shall
monetary position of the United States;
include examination of the economic activities of (A) the various
(3) a review of the impact of international voluntary stand-
agencies, departments, and instrumentalities of the Federal Gov-
ards, the foreign investments of United States based transnational
ernment, (B) the several States, and (C) private industry.
firms, and the level of foreign wage rates on the level, stability,
(3) Collect, analyze, and evaluate authoritative information,
and financial reward for domestic employment; and
current and prospective, concerning international economic mat-
(4) a program for carrying out the policy objectives of this
ters. Such evaluations shall include but not be limited to the
title, together with such recommendations for legislation as he
impact of international trade on the level, stability, and financial
may deem necessary or desirable.
rewards for domestic labor and the impact of the transnational
(b) The President may transmit from time to time to the Con- Supplementary
corporation on international trade flows.
gress reports supplementary to the International Economic Report, reports to
each of which may include such supplementary or revised recom-
Congress.
(4) Consider policies and programs for coordinating the activi-
ties of all the departments and agencies of the United States
mendations as he may deem necessary or desirable to achieve the
with one another for the purpose of accomplishing a more con-
purposes and policy objectives set forth in this title.
Pub. Law 92-412
- 6 -
August 29, 1972
86 STAT. 649
EXECUTIVE DIRECTOR AND STAFF OF THE COUNCIL
SEC. 208. (a) The staff of the Council shall be headed by an Execu-
tive Director who shall be appointed by the President, and he shall
be compensated at the rate now or hereafter provided for level II of
83 Stat. 863.
the Executive Schedule (5 U.S.C. 5313). He shall keep the Committee
Information to
on Banking, Housing and Urban Affairs of the Senate, the Commit-
congressional
tee on Banking and Currency of the House of Representatives, the
committees.
Committee on Foreign Relations of the Senate, the Committee on
Foreign Affairs of the House of Representatives, the Committee on
Finance of the Senate, the Committee on Ways and Means of the
House of Representatives, and the Joint Economic Committee fully
and currently informed regarding the activities of the Council.
(b) (1) With the approval of the Council, the Executive Director
may appoint and fix the compensation of such staff personnel as he
deems necessary. Except as provided in paragraph (2), the staff of
the Council shall be appointed subject to the provisions of title 5,
80 Stat. 378.
United States Code, governing appointments in the competitive serv-
5 USC 101 et
ice, and shall be paid in accordance with the provisions of chapter 51
seq.
and subchapter III of chapter 53 of such title relating to classification
5 USC 5101,
and General Schedule pay rates.
5331.
(2) With the approval of the Council, the Executive Director may
appoint and fix the compensation of one officer at a rate of basic com-
pensation not to exceed the rate provided for level IV of the Federal
5 USC 5315.
Executive Salary Schedule, and appoint and fix the compensation of
two officers at rates of basic compensation not to exceed the rate pro-
5 USC 5316.
vided for level V of the Federal Executive Salary Schedule.
(c) With the approval of the Council, the Executive Director may
procure temporary and intermittent services to the same extent as is
80 Stat. 416.
authorized by section 3109 of title 5, United States Code, at rates not
5 USC 5332
to exceed the daily equivalent of the rate provided for GS-18.
note.
(d) Upon request of the Executive Director, the head of any Federal
agency is authorized to detail, on a reimbursable basis, any of its per-
sonnel to the Council to assist it in carrying out its duties under this
title.
Expiration date.
SEC. 209. The provisions of this title shall expire on June 30, 1973,
unless extended by legislation enacted by the Congress.
AUTHORIZATION FOR APPROPRIATIONS
SEC. 210. For the purpose of carrying out the provisions of this title,
there are authorized to be appropriated not to exceed $1,400,000 for
fiscal year 1973.
Approved August 29, 1972.
LEGISLATIVE HISTORY:
HOUSE REPORTS: No. 92-1260 (Comm. on Banking and Currency)
accompanying H. R. 15989 and No. 92-1342
(Comm. of Conference).
SENATE REPORTS: No. 92-890 (Comm. on Banking, Housing and Urban
Affairs) and No. 92-981 (Comm. on Foreign Relations).
CONGRESSIONAL RECORD, Vol. 118 (1972):
June 21, 22, July 31, Aug. 1, considered and passed Senate.
Aug. 3, considered and passed House, amended, in lieu of
H. R. 15989.
Aug. 15, Senate agreed to conference report.
Aug. 18, House agreed to conference report.
GPO 83-139
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
1st Session
No. 93-389
AMENDING THE INTERNATIONAL ECONOMIC
POLICY ACT OF 1972
Ordered to be printed
Mr. PATMAN, from the committee of conference,
submitted the following
CONFERENCE REPORT
[To accompany S. 1636]
The committee of conference on the disagreeing votes of the two
Houses on the amendemnts of the House to the bill (S. 1636) to amend
the International Economic Policy Act of 1972, having met, after full
and free conference, have agreed to recommend and do recommend to
their respective Houses as follows:
That the Senate recede from its disagreement to the amendment of
the House to the text of the bill and agree to the same with an amend-
ment as follows:
In lieu of the matter proposed to be inserted by the House amend-
ment insert the following:
That section 205 of the International Economic Policy Act of 1972 is
amended-
(1) by striking out (1) The President. ;
(2) by redesignating clauses (2) through (7) as clauses (1)
through (6),
(3) by inserting after clause (6), as redesignated, the
following:
(7) The Secretary of Transportation.", and
(4) by striking out the last sentence and inserting in lieu thereof
the following: "The President shall designate the Chairman of
the Council from among the members of the Council."
SEC. 2. Section 209 of the International Economic Policy Act of 1972
is amended by striking out "1973" and inserting in lieu thereof "1977".
SEC. 3. Section 210 of the International Economic Policy Act of
"1974".
SEC. 4. Section 207 (a) of the International Economic Policy Act
of 1972 is amended by redesignating paragraph (4) as paragraph (6),
by striking out "and" at the end of paragraph (3), and by inserting
immediately after paragraph (3) the following new paragraphs:
"(4) a comparative description and analysis of the following
subject matter, with respect to the United States, the European
Community and principal countries within the European Com-
99-006
2
munity, Japan, and whenever applicable, the Union of Soviet
Socialist Republics-
"(A) research and development expenditures, and produc-
tivity and technological trends in major industrial and agri-
cultural sectors;
(B) investment patterns in new plant and equipment;
JOINT EXPLANATORY STATEMENT OF THE
(C) industrial manpower and training practices;
COMMITTEE OF CONFERENCE
(D) tax incentives and other governmental financial
assistance;
The managers on the part of the House and the Senate at the con-
(E) export promotion practices;
ference on the disagreeing votes of the two Houses on the amendments
(F) share of the export market, by area and industrial
of the House to the bill (S. 1636) to amend the International Economic
and agricultural sectors;
Policy Act of 1972, submit the following joint statement to the House
(G) environmental practices;
and the Senate in explanation of the effect of the action agreed upon
" (H) antitrust practices; and
by the managers and recommended in the accompanying conference
(I) long-range governmental economic planning pro-
report:
grams, targets, and objectives;
The House struck out all of the Senate bill after the enacting clause
(5) a review of the relationship between the United States
and inserted a substitute amendment.
Government and American private business with respect to the
The committee of conference has agreed to a substitute for both the
categories of subject matter listed in subparagraphs (A) through
Senate bill and the House amendment. Except for clarifying, clerical,
(I) of paragraph (4) and any other appropriate areas of informa-
and conforming changes, the differences are noted below:
tion, together with recommendations for appropriate policies and
The Senate bill allowed the President to appoint the Chairman of
programs in order to insure that American business 28 competi-
the Council on International Economic Policy from among the statu-
tive in international commerce; and".
tory members of the Council or any other person the President named
SEC. 5. Notwithstanding the provisions of section 208(a) of the
as a member of the Council. The House amendment allowed the Presi-
International Economic Policy Act of 1972, any future Executive
dent to appoint a Chairman of the Council from among the statutory
Director of the Council on International Economic Policy appointed
members. The conferees accepted the Senate provision.
after the date of the enactment of this bill shall be appointed by the
The Senate bill provided, with certain exceptions, that employees
President, by and with the advice and consent of the Senate.
of the Council may be appointed without regard to civil service provi-
And the House agree to the same.
sions governing appointment in competitive service. There was no
That the Senate recede from its disagreement to the amendment of
comparable provision in the House amendment. The Senate receded to
the House to the title of the Senate bill and agree to the same.
the House.
WRIGHT PATMAN,
The Senate bill repealed the provision of the International Economic
THOMAS L. ASHLEY,
Policy Act of 1972 providing for an expiration date. The House
THOMAS M. REES,
amendment changed the present expiration date from June 30, 1973,
PARREN J. MITCHELL,
to June 30, 1975. The conferees accepted the compromise date of June
FERNAND J. ST GERMAIN,
30. 1977.
RICHARD T. HANNA,
The Senate bill made appointment of the Executive Director of the
EDWARD I. KOCH,
Council subject to Senate confirmation, including the incumbent. The
ANDREW YOUNG,
House amendment made appointment of any Executive Director other
JOHN JOSEPH MOAKLEY,
than the incumbent subject to Senate confirmation. The conferees
WILLIAM B. WIDNALL,
accepted the House provision.
BEN BLACKBURN,
The Senate bill authorized $3,000,000 to be appropriated for fiscal
GARRY BROWN,
year 1974 and the same amount for fiscal year 1975. The House author-
ALBERT W. JOHNSON,
ized $1,400,000 to be appropriated for fiscal year 1974. The conferees
STEWART B. McKINNEY,
accepted the House provision.
BILL FRENZEL,
The House amendment added the Secretary of Transportation to
Managers on the Part of the House.
the Council. No comparable provision was included in the Senate bill.
JOHN SPARKMAN,
The conferees accepted the House provision.
WILLIAM PROXMIRE,
The House amendment required the annual report transmitted by
HARRISON A. WILLIAMS,
the President to Congress under section 207 of the International Eco-
ADLAI STEVENSON,
nomic Policy Act of 1972 to include comparative description and
JOHN TOWER,
(3)
WALLACE F. BENNETT,
BoB PACKWOOD,
H.R. 93-389
anagers on the Part of the Senate.
H.R. 93-389
4
analysis of certain specific activities, policies, and programs of the
United States, the European Community and its principal members,
Japan, and whenever applicable, the U.S.S.R. The amendment also
required that the report include analysis concerning the relationship
between the United States Government and American business and
recommendations for programs and policies to insure that American
business is competitive in international commerce. No comparable pro-
vision was included in the Senate bill. The conferees accepted the
House position.
WRIGHT PATMAN
THOMAS L. ASHLEY
THOMAS M. REES,
PARREN J. MITCHELL,
FERNAND J. ST GERMAIN,
RICHARD T. HANNA,
EDWARD I. KOCH,
ANDREW YOUNG,
JOHN JOSEPH MOAKLEY,
WILLIAM B. WIDNALL,
BEN BLACKBURN,
GARRY BROWN,
ALBERT W. JOHNSON,
STEWART B. McKINNEY,
BILL FRENZEL,
Managers on the Part of the House.
JOHN SPARKMAN,
WILLIAM PROXMIRE,
HARRISON WILLIAMS,
ADLAI STEVENSON,
JOHN TOWER,
WALLACE F. BENNETT,
BOB PACKWOOD,
Managers on the Part of the Senate.
U.E. 93-389
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1066
AUTHORIZING APPROPRIATIONS FOR CARRYING OUT
THE PROVISIONS OF THE INTERNATIONAL ECONOMIC
POLICY ACT OF 1972
MAY 29, 1974.-Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. PATMAN, from the Committee on Banking and Currency,
submitted the following
REPORT
together with
DISSENTING VIEWS
[To accompany H.R. 13839]
The Committee on Banking and Currency, to whom was referred
the bill (H.R. 13839) to authorize appropriations for carrying out
the provisions of the International Economic Policy Act of 1972, as
amended, having considered the same, report favorably thereon with
amendments and recommend that the bill as amended do pass.
The amendments are as follows:
On the first page, line 7, strike out "are" and insert in lieu thereof
"is".
On the first page, beginning in line 8, strike out "such sums as may
be necessary until the expiration of the provisions of this title" and
insert in lieu thereof "$1,800,000 for the fiscal year ending June 30,
1975".
NEED FOR THE LEGISLATION
For economic policy formation in the international field, the Presi-
dent relies upon a specialized cabinet level group, the Council on Inter-
national Economic Policy (CIEP). The President and the Council
are served by a staff under an executive director who is also an assist-
ant to the President.
CIEP was created by Presidential memorandum in January 1971,
on the recommendation of the Advisory Council on Executive Orga-
nization, to improve the coordination of U.S. Government agencies
with responsibilities in the field of foreign economic affairs. The Con-
gress first authorized the CIEP in the International Economic Policy
Act of 1972 in P.L. 92-412 of August 29, 1972, and granted further
authorization in P.L. 93-121.
99-006
2
The Council and its staff are formed to achieve a clear, top-level
focus on the broad range of international economic policy issues. It
is the function of CIEP to help assure that all factors affecting inter-
national economic policy are more fully considered and that policy
decisions are based on realistic assessments of U.S. foreign economic
interests. Another objective of CIEP is consideration of these policy
choices in the context of both domestic economic development and our
INTERNATIONAL ECONOMIC POLICY ACT AMENDMENTS
broad foreign policy objectives.
(H.R. 13839)
The CIEP staff is used by the Council and its executive director to
coordinate the efforts of individual agencies and to synthesize the
DISSENTING VIEWS
sometimes divergent policy recommendations forwarded by them.
While full Council meetings are held when necessary and appropri-
As has been the case from the inception of statutory authority for
ate, most of the Council's work is necessarily conducted by subcom-
the operation of the Council on International Economic Policy, the
mittees. The subcommittees of the CIEP are: the Executive Commit-
organization and function of this body is almost completely duplica-
tee, at Cabinet level, chaired by Secretary of the Treasury; the Senior
tive of the functions of other offices in the Executive Branch.
Review Group, at sub-Cabinet level, chaired by the Executive Direc-
Basically, CIEP is a research and reporting agency which has been
tor; and the Operations Group, chaired by the Under Secretary of
in existence, initially under Executive Order, during 1971 to 1972,
State for Economic Affairs. Attendance at meetings of these subcom-
and with legislative authority for nearly two years since August 1972.
mittees is determined by the topics to be considered. In addition, the
During that time the Council has produced substantial presentations
CIEP uses ad hoc interagency groups to handle specific problems and
both in the form of Annual International Economic Reports of the
issues.
President and in the form of personal appearances by the Executive
Among the important issues in which the Council was involved dur-
Director before various committees of the Congress.
ing 1973 were:
We find no fault with the performance of the Council on Interna-
Negotiations on trade and monetary reform;
tional Economic Policy. However, the duplication of the CIEP func-
New international agreements on the treatment of foreign in-
tions by other Executive Branch agencies represents an inefficient de-
vestment;
votion of our resources to these activities.
The impact of U.S. banking and securities regulations on inter-
The subject matter covered by the CIEP report is basically that of
national investment patterns;
defining and evaluating the U.S. position in the world economy, its
U.S. policy on expropriations of U.S. investments by foreign
policies on trade, investment, and the international monetary system,
governments;
and a selection of specific issues such as the energy crisis, banking and
Problems associated with the transfer of U.S. technology
securities regulation, and economic aspects of our relationship with
abroad;
the Communist countries.
Export controls on agricultural and industrial commodities in
Among the other Executive Branch organizations which evaluate
short supply, and
and report on these same issues are the Council of Economic Advisers,
East-West trade policy.
the Bureau of International Commerce in the Department of Com-
At the end of 1973, there were 23 members of the Council's profes-
merce, the Office of the Special Representative for Trade Negotiations,
sional staff. Several are on detail from other government agencies.
the East-West Trade Policy Committee, the Treasury Department,
The remainder provide special skills stemming from previous aca-
and the Federal Reserve System. While each of these particular offices
demic, research, or business experience.
has its own slant on the matters within the jurisdiction of the CIEP
H.R. 13839, as introduced, would authorize to be appropriated such
and indeed the CIEP includes in its numbers the heads of most of
sums as may be necessary until the expiration of the provisions of
these other agencies, we do not feel that it is necessary to institutional-
the International Economic Policy Act of 1972, as amended, to June
ize this meeting ground for all of these individual offices, especially
30, 1977. The Committee adopted an amendment to the bill which
when the Treasury Department or the Council of Economic Advisers
would limit the authorization of appropriations to the Fiscal Year
could easily perform this function.
1975, and in an amount not to exceed $1.8 million. The amendment was
On one hand it does not even seem necessary that there be any more
adopted by voice vote. It was the view of the Committee that author-
than a request by the President that those individuals presently mem-
ization of the appropriations for one year would aid the Committee
bers of the CIEP meet jointly in order to make their own particular
in its review of the activities of the Council for the coming Fiscal
concerns and desires known on the matters which come before the
Year.
Council; and staff could easily be recruited as it was in the first place
By a roll call vote of 21 ayes and 5 nays, the Committee voted to
from among the various departments and agencies represented on the
adopt H.R. 13839 with an amendment.
Council.
The estimated cost of the legislation, if enacted, would be $1,800,000
On the other hand, we feel that a further coordinating function
for Fiscal Year 1975.
might well be served if specific staff were devoted to these pursuits as
(3)
H.R. 1066
H.R. 1066
4
a part of the operation of the Council of Economic Advisers. It is
interesting to note that the entirety of Chapter 6 of the President's
Economic Report of February 1974 is devoted to the international
economy in 1973. The completeness of this treatment of monetary
affairs, trade and investment position of the United States, our bal-
ance of payments, relationships with our trading and monetary
partners, and the problems of planning for future trade and monetary
goals of the Nation is remarkable not SO much for its thoroughness
which, of coure, is to be expected, but for the high incidence of dupli-
cation of the efforts of the CIEP.
The cost of this duplication is not inconsiderable. In 1972 and 1973,
the annual cost of operation for the CIEP was approximately $1.4
million. Although H.R. 13839, as introduced, would have provided
an open-ended authorization, the Committee wisely acted to limit
the authorization to $1.8 million for one additional year. However,
we must evaluate this amount of expenditures of taxpayers' money
not only as an increase of nearly one-third, but in concrete terms of
$1.8 million proposed to be spent for work which could best be accom-
plished elsewhere and at considerably lower cost.
We propose that the function heretofore carried out by the Council
on International Economic Policy be undertaken as an integral part
of the Council of Economic Advisers' activities and that the present
members of CIEP be consulted as to their particular concerns on in-
ternational economic policy. The only practical and acceptable means
by which to redirect this important function into the proper, efficient,
and logically integrated channel is for the House to reject the exten-
sion of the Council on International Economic Policy in favor of the
Council on Economic Advisers approach.
BEN B. BLACKBURN,
CHALMERS P. WYLIE,
PHILIP M. CRANE,
JOHN H. ROUSSELOT,
CLAIR W. BURGENER.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
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 re-
ported, are shown as follows (existing law proposed to be omitted is
enclosed in black brackets, new matter is printed in italic, existing
law in which no change is proposed is shown in roman) :
SECTION 210 OF THE INTERNATIONAL ECONOMIC
POLICY ACT OF 1972
AUTHORIZATION FOR APPROPRIATIONS
SEC. 210. For the purpose of carrying out the provisions of this
title, there [are] is authorized to be appropriated [not to exceed $1,-
400,000 for fiscal year 1974] $1,800,000 for the fiscal year ending
June 30, 1975.
H.R. 1066
FOR IMMEDIATE RELEASE
October 1, 1974
Office of the White House Press Secretary
THE WHITE HOUSE
EXECUTIVE ORDER
ESTABLISHING THE PRESIDENT'S ECONOMIC POLICY
BOARD, AND FOR OTHER PURPOSES
By virtue of the authority vested in me by the
Constitution and laws of the United States, it is hereby
ordered as follows:
Section 1. There is hereby established the President's
Economic Policy Board (hereinafter referred to as the Board).
Sec. 2.
The Board shall consist of the Secretary of
Pres.
the Treasury who shall be its Chairman, the Assistant to
Defense
the President for Economic Affairs, the Secretary of State
Asst.
to
the Secretary of the Interior, the Secretary of Agriculture
P586
Econ
the Secretary of Commerce, the Secretary of Labor, the
Affairs
Secretary of Health, Education, and Welfare, the Secretary
Interior
of Housing and Urban Development, the Secretary of Trans-
HEW
portation, the Director of the Office of Management and
HUD
Budget, the Chairman of the Council of Economic Advisers,
Trans,
and the Executive Director of the Council on International
CIEP
Economic Policy. The Chairman of the Board of Governors
AEP
STR
of the Federal Reserve System is invited to attend meetings
not
of the Board.
Ch. OF FEO
Sec. 3. The Economic Policy Board shall provide
advice to the President concerning all aspects of national
and international economic policy, will oversee the formu-
lation, coordination, and implementation of all economic
policy of the United States, and will serve as the focal
point for economic policy decision-making. The Chairman
of the Board shall act as the principal spokesman for the
Executive Branch on matters of economic policy.
Sec. 4. (a) There is hereby established the
Executive Committee of the Board. The Executive Committee
shall consist of the Secretary of the Treasury, who shall
be its Chairman, the Assistant to the President for Economic
Affairs, the Director of the Office of Management and Budget,
the Chairman of the Council of Economic Advisers, and the
Executive Director of the Council on International Economic
Policy. The Chairman of the Board of Governors of the
Federal Reserve System is invited to attend meetings of the
Executive Committee.
(b) The Executive Committee shall meet daily to
consider matters involving responsibilities of the Board.
Sec. 5. The Assistant to the President for Economic
Affairs shall be the Executive Director of the Board and
of the Executive Committee, and, as such, shall be respon-
sible for coordinating the implementation of economic policy
and providing liaison with the Presidential staff and with
other Governmental activities.
more
(OVER)
2
Sec. 6. (a) The Secretary of the Treasury shall be a
member of the Council on Wage and Price Stability and be its
Chairman. The Assistant to the President for Economic Affairs
shall be a member of the Council and be its Deputy Chairman.
(b) The Secretary of the Treasury shall be the Chairman
of the Council on International Economic Policy. The Assistant
to the President for Economic Affairs shall be a member of
that Council and be its Deputy Chairman.
(c) Section (b) of Executive Order No. 11269, as
amended (prescribing the composition of the National Advisory
Council on International Monetary and Financial Policies),
is further amended by inserting after "the Secretary of
the Treasury, who shall be Chairman of the Council, the
following "the Assistant to the President for Economic
Affairs, who shall be Deputy Chairman of the Council,".
(d) (1) Section 1 of Executive Order No. 11789
(prescribing the composition of the President's Committee
on East-West Trade Policy) is amended to read as follows:
"(1) The Assistant to the President for
Economic Affairs."
(2) Section 2 of that Order is amended to read
as follows:
"Sec. 2. The Secretary of the Treasury
shall be the Chairman of the Committee, and
the Assistant to the President for Economic
Affairs shall be its Deputy Chairman."
Sec. 7. All departments and agencies shall cooperate
with the Board, including the Executive Committee thereof,
and shall, to the extent permitted by law, provide it with
such assistance and information as the Chairman or the
Executive Director of the Board may request.
GERALD R. FORD
THE WHITE HOUSE,
September 30, 1974
# # # #
FOR RELEASE AT 12 NOON EDT
SEPTEMBER 28, 1974
Office of the White House Press Secretary
THE WHITE HOUSE
The President announced today the formation of a new Economic Policy Board
which will oversee the formulation, coordination and implementation of all
economic policy, and named Secretary of the Treasury, William E. Simon,
as chairman.
Secretary Simon will act as the principal spokesman for the Executive Branch
on matters of economic policy. The new Board will be the focal point for
economic policy decision-making, both domestic and international. Secretary
Simon will also chair an Executive Committee of the Board which will meet
daily.
The President also announced the appointment of L. William Seidman as
Assistant to the President for Economic Affairs. In addition to a wide range of
other duties, Mr. Seidman will serve as a member and Executive Director
of the Economic Policy Board and its Executive Committee. In his new roles,
Mr. Seidman will be responsible for coordinating the implementation of
economic policy and providing liaison with the Presidential staff and with
other governmental activities.
Secretary Simonand Mr. Seidman will have responsibility for ensuring that
there is adequate coordination among existing and proposed committees relating
to economic policy. Secretary Simon will serve as Chairman, and Mr. Seidman
as Deputy Chairman, of the Council on Wage and Price Stability as well as the
Council on International Economic Policy, the National Advisory Council on
International Economic Policy, the National Advisory Council on International
Monetary and Financial Policies, and the President's Committee on East-West
Trade Policy.
The other members of the Economic Policy Board will be:
Secretary of State Henry A. Kissinger
Secretary of the Interior Rogers C. B. Morton
Secretary of Agriculture Earl L. Butz
Secretary of Commerce Frederick B. Dent
Secretary of Labor Peter J. Brennan
Secretary of Health, Education, and Welfare Caspar W. Weinberger
Secretary of Housing and Urban Development James T. Lynn
Secretary of Transportation Claude S. Brinegar
Director of the Office of Management and Budget Roy L. Ash
Chairman of the Council of Economic Advisers Alan Greenspan
Executive Director of the Council on International Economic Policy
William D. Eberle
Mr. Greenspan, Mr. Eberle, and a senior member of the Office of Management
and Budget, will serve as member of the Executive Committee. Dr. Arthur
F. Burns, Chairman of the Federal Reserve Board, will attend both Board and
Executive Committee meetings when appropriate.
#
#
#
FOR IMMEDIATE RELEASE
DECEMBER 18, 1974
Office of the White House Press Secretary
THE WHITE HOUSE
L. WILLIAM SEIDMAN
Biographical Data
L. William Seidman has been Assistant to the President for Economic Affairs,
Executive Director of the Economic Policy Board and a member of the Energy
Resources Council since September 28, 1974.
Prior to these appointments, Mr. Seidman was Assistant to the Vice Presi-
dent for Administration in the Office of Vice President Gerald R. Ford.
Before entering government service, he was National Managing Partner
of Seidman & Seidman, Certified Public Accountants in Grand Rapids,
Michigan. From 1963 to 1968, he was Special Assistant on Financial Affairs
to the Governor of Michigan. He was a member of the Federal Reserve Bank
of Chicago (Detroit Branch) and its Chairman in 1970.
Mr. Seidman was born on April 29, 1921, in Grand Rapids, Michigan. He
received his A.B. degree (Phi Beta Kappa) in 1943 and his LL. B. degree
in 1948 from Harvard Law School. He received an M.B.A. degree from
the University of Michigan in 1949. He served in the United States Naval
Reserve as a Lieutenant from 1942 to 1946.
He is married to the former Sarah Berry and they have six children. They
reside in McLean, Virginia.
# # #
DRAFT: 2/3/75
MEMORANDUM FOR THE PRESIDENT
FROM:
DIRECTOR, OMB
SUBJECT:
Feasibility of Seeking a Statutory
Economic Policy Board (EPB)
I.
BACKGROUND
At present, the Economic Policy Board (EPB) is enabled
by Executive Order 11808 (September 30, 1974). This does
not provide a statutory basis for the appropriation of
funds to maintain a staff to serve the EPB. There are
also concerns over the respective roles of EPB and the
Council on International Economic Policy (CIEP) mandated
by the International Economic Policy Act of 1972. It has
been proposed that the Administration submit legislation
which creates EPB in statute, transfers CIEP functions
and staff to it, and repeals the International Economic
Policy Act.
II. OPTIONS
Option A -- Submit legislation to create EPB.
PROS
1. Would provide appropriation basis for an adequate
staff.
2. In spirit of cooperation, gives Congress opportunity
to define EPB role and make it accountable to Congress.
3. Rationalizes EPB/CIEP roles and staffs -- some
staff economics can be realized.
CONS
1. Reduces President's flexibility to change EPB
role in future if needed.
2. Lets Congress define role of a White House office.
2
3. Provides opportunity for "Christmas-treeing" of
undesirable provisions (e.g., demands for documents;
keeping Congress "fully and currently informed";
extensive report).
4. If the Assistant to the President for Economic
Affairs were to serve either as Chairman or as
Executive Director, his confirmation can be mandated.
5. Precipitates complicated issue of Congressional
jurisdiction over EPB and CIEP as well.
Option B --- Resolves EPB staffing and relationship to
CIEP administratively
PROS
1. Retains Presidential flexibility over roles and
priorities of EPB.
2. Avoids opportunity for Congressional mandating
of undesirable provisions.
3. Avoids jurisdictional dispute in Congress.
Cons
1. Does not solve staffing problem. Other less
satisfactory means would have to be used (staff
detailed from other agencies, greater use of staff
work prepared by other agencies).
2. Not a clear resolution of possible EPB/CIEP overlap
of roles.
3. Does not offer ooperation with Congress on defining
EPB role -- may cause Congress to initiate its own
legislation.
3
III. RECOMMENDATION
The need for this legislation depends on how large a
staff is required to support EPB, which in turn is a
function of what role EPB is to play. The current
Executive Order describes essentially a role of advice
to the President and coordination of policy emanating
from the many Federal agencies having important responsi-
bilities in the arena of economic affairs. A large EPB
staff would not be needed or indeed desirable to support
this role, if the full cooperation and assistance of
involved agencies can be assured.
Legislation opens the risk of Congressional removal of
Presidential flexibility on the use of EPB at a time
when such flexibility is still needed. It means further
risk over undesirable provisions forcing EPB preoccupation
with Congressional rather than Presidential concerns.
OMB therefore recommends that legislation creating EPB
in statute not be submitted.
Implement Option A
Implement Option B
See me
OPTION I - Formal Definition of EPB/CIEP Role and Resources
Legislation would be submitted to the Congress to
create EPB by statute and bring the CIEP role and resources
into the new organization. Such statutory authorization
would provide the basis for appropriating funds for whatever
EPB staff is needed but subject to the will of the authori-
zation and appropriation process. The advantages of this
approach are that the President and the Congress would visibly
join in establishing a "capstone" economic affairs organiza-
tion, a fairly explicit mission for such an office would be
agreed to, its formal charter would add to its credibility
and leverage, and it would have access to a more certain
source of funds to maintain its staff.
The disadvantages of this approach lie in the fact that
legislation requires a high degree of "locking-in" to a specific
EPB in terms of defined role, membership, staffing and respon-
sibility, and that these specifics will be dictated in large
part by the Congress rather than the President. A number
of specific concerns are at risk:
1. The defined role of EPB -- The Congress can
insist that an explicit definition of EPB
responsibilities, authorities, priorities and
even procedures be locked in statute, thus
reducing the President's flexibility to ac-
commodate his use of EPB to meet changing
circumstances.
-2-
2. Confirmation -- Any Chairman, Executive Director,
or other official (excluding the President or an
already confirmed official) will undoubtedly be
made subject to confirmation, and the collateral
requirement that such officials testify before all
appropriate Congressional committees. This is
assumed to be the case even where the Assistant to
the President for Economic Affairs serves either
as Chairman or Executive Director. This is an
undesirable precedent for top ranking Presidential
Assistants and would probably result in heavy pre-
occupation with Congressional demands.
3. Congressional demands for information -- Legislation
creating EPB by statute would give the Congress the
opportunity to mandate several forms of information
demand:
a. They have a stronger basis for demanding
testimony relating to the business of EPB
itself, as distinct from the activities of
the departments and agencies as described
by their heads.
b. They can mandate that the Congress be kept
"fully and currently informed." Because
there are SO many committees and subcommittees
-3-
with jurisdiction in both domestic and
international economic matters, both EPB
leadership and staff might find themselves
responding to such extensive Congressional
demands that their capacity to meet Presidential
and Executive Branch need would be impaired.
C. Congress might also demand access to studies,
options, analyses, projections, or other data
even of a preliminary nature intended for the
President, including access, before the President
or others in the Executive Branch have themselves
had an opportunity to use such material. The
CIEP legislation when enacted, mandated an
extremely broad-ranging annual report; there is
the real prospect that such a requirement could
be extrapolated into the domestic economic area
as well, where the conflict with CEA's annual
report would be even more pronounced.
4. Congressional Committee jurisdiction -- Because
there are so many committees and subcommittees dealing
with economic affairs, legislation for creating an
EPB would precipitate further infighting over juris-
diction both on the enabling bill itself and over
continuing substantive jurisdiction. If the enabling
legislation is clearly cast as an "organization" bill,
-4-
it might be steered to the more neutral Govern-
ment Operations Committee where the Administration
could attempt to address the organizational intent
rather than policy issues. There is, however, no
guarantee of safety in this route, and it would not
resolve the intense jurisdictional competition for
continuing oversight. Using the reasoning that we
are proposing an "organization" bill, we would pro-
pose to draft minimal legislation seeking only the
statutory basis for an EPB chaired by the President
who is free to designate additional members as he
chooses and to appoint such staff officials as he
deems necessary. We would then seek to hold the
line against Christmas-treeing, including reintro-
duction of provisions in the current CIEP statute
which we can do without.
5. EPB budget and staff -- Enabling legislation would
undoubtedly furnish the necessary statutory basis for
the direct appropriation of the necessary funds to
provide whatever staff resources (and consultant
services) are considered necessary. These resource needs
would obviously have to be justified to Congress,
but, given the importance of the subject matter,
-5-
reasonable Congressional reaction seems likely.
How important this advantage is, is a function of
the urgency for staff resources which cannot be
obtained except by this route.
6. Combining EPB and CIEP --- It is understood that
EPB and CIEP are, at least in part, motivated by
the possibility of using current CIEP staff capa-
bility to meet the needs for staff in the domestic
economic arena. Statutory enablement for EPB would
solve that need directly and thus reduces at least
that reason for combination.
OPTION II - Non-statutory Approaches for Improving
EPB/CIEP Roles and Resources
An alternative to formal statutory creation of EPB and
combination with CIEP lies in the potential to solve perceived
problems within the present arrangements -- that is, a statutory
CIEP and an EPB established and defined by the President by
Executive Order. The specific concerns discussed in Option I
appear as follows:
1. The defined role of EPB -- The President would
retain his present latitude in accommodating his
use of EPB as he sees fit to meet changing cir-
cumstances. This means he is free to make changes
in membership, the chairman, the executive director,
the stated definition of EPB's role or priorities
or any other aspect of the Board's functioning.
Formal combination with CIEP, however, is not
possible because CIEP is locked in statute. We
would therefore have to continue to explain the
relationship between the two and to integrate
their efforts without organizational combination.
2. Confirmation -- If the Congress seeks to require
confirmation of the Executive Director of EPB,
they would have to introduce separate legislation
LISA GERALD R. FORD
to do so and could not ride a bill which is a
Presidential initiative. Such legislation could
be more effectively opposed by the Administration.
-2-
3. Congressional demands for information -- In the
absence of a statute which mandates EPB responsi-
bilities to the Congress, EPB can be freer in
retaining control of material intended as con-
fidential advice to the President and avoiding
premature release of preliminary work. Require-
ments for EPB to testify could continue to be
met by any member already confirmed.
4. Congressional committee jurisdiction -- The absence
of legislation would avoid putting EPB in the
middle of the Congressional jurisdiction conflict
and would also leave the jurisdictional issues
surrounding CIEP alone. The Executive Director
of CIEP would obviously continue to testify on
international economic matters and careful
coordination would still be needed to assure a
consistent Administration posture before the
many Congressional committees involved.
5. EPB budget and staff -- In the absence of an
authorizing statute, the EPB and the Assistant
LIBRARY GERALD R. FORD
to the President for Economic Affairs would con-
tinue to face the problem of finding staff
resources to undertake both the substantive
-3-
analysis and the administrative work required
to support the Board. It is also recognized
that resources available through the White House
budget will continue to be limited. A number of
avenues for tapping staff capability would have
to be pursued:
a. Some continuing use of CIEP staff is warranted
in areas of common concern. CIEP staff assist-
ance should not however be asked to work in
areas of purely domestic economic concern,
since that might be seen as being outside of
the purposes for which CIEP funds are authorized.
b. The National Security Council has successfully
employed a system by which it defines specific
studies or analyses it wants undertaken, and
then places requirements on departments and
agencies having the appropriate staff resources
to prepare reports for the Council. This approach
might include longer term assignments such as
reassessment of the adequacy of statistical
information or providing computerized information
service to the Board.
LIBRARY GERALD R. FORD
C. Some use can be made of people borrowed from
other government organizations for a fixed period
of time, either for administrative or analytical
duties.
THE WHITE HOUSE
WASHINGTON
DATE: 2-10-75
TO: Dang
FROM: Max L. Friedersdorf
Please handle
Please see me
For your information
Other
THE WHITE HOUSE
WASHINGTON
February 8, 1975
MEMORANDUM TO:
MAX FRIEDERSDORF
FROM:
JACK MARSH July
Please have Doug Bennett touch base with Phil Buchen in reference
to certain statutory authorities involving the Council of Economic
Advisors and related efforts here in the White House.
COUNCIL ON INTERNATIONAL ECONOMIC POLICY
February 11, 1975
FOR: DOUG BENNETT
Per our telephone conversation.
SKIP Ship HARTQUIST
COUNCIL ON INTERNATIONAL ECONOMIC POLICY
WASHINGTON, D.C. 20500
February 4, 1975
MEMORANDUM FOR
PHILIP W. BUCHEN
SUBJECT:
Legislation Regarding Economic Policy Board
Attached for your review is a version of the Economic Policy Board
legislation which has been revised in accordance with your suggestions
as follows:
(1) Section 3 - Optional paragraph inserted.
(2) Section 5 - Head of staff is designated as Executive Director,
who will be appointed by the President. The reference to leases
(subparagraph (e)) has been deleted.
Our instructions are that the Assistant to the President for Economic
Affairs is to be a member of the Board, so we have left Section 4 as is.
The President's message to Congress has also been revised accordingly.
mike
J.M.Dunn Runn
Acting
Executive Director
Attachments
CC:
Jay T. French - Rm 110
Roger Porter - Rm 200
Robert Walthieus - EW 112
Charles Bingman - Rm 10236 - New EOB
FORD is LIBRARY
PRESIDENTIAL MESSAGE TO CONGRESS TO ACCOMPANY THE
ECONOMIC POLICY BOARD ACT OF 1975
Dear Mr. Speaker (Mr. President):
I am submitting herewith proposed legislation to the Congress to establish
the President's Economic Policy Board, which will oversee the formula-
tion, coordination and implementation of economic policy.
The Economic Policy Board was originally established by Executive Order
11808 on October 1, 1974 and over the past four months, I have found it
extremely useful in focusing attention throughout the Executive Branch on
critical economic issues and at the same time providing a workable forum
for the consideration of solutions to our economic problems.
The purpose of this legislation is to establish the Economic Policy Board
by law and to provide the Board with a staff. I feel this legislation will
greatly strengthen what I have found to be a very effective organization
for ensuring coordination among the many executive departments and
agencies presently supporting the decision-making process on economic
policy matters.
The proposed legislation provides that the Board will oversee the
formulation, coordination, and implementation of all economic policy
of the United States, serve as the focal point for economic policy
decision-making, and make such reports and give such advice to the
President as it deems appropriate or as the President may require.
The Board will consist of the President; the Vice President; the Assistant
to the President for Economic Affairs; the Secretary of State; the Secretary
of the Treasury; the Secretary of Defense; the Secretary of the Interior;
the Secretary of Agriculture; the Secretary of Commerce; the Secretary
of Labor; the Secretary of Health, Education, and Welfare; the Secretary
of Housing and Urban Development; the Secretary of Transportation; the
Director of the Office of Management and Budget; the Chairman of the
Council of Economic Advisers; and the Special Representative for Trade
Negotiations.
- 2 -
The staff of the Board will be headed by an Executive Director appointed
by the President. The role of the staff will be to assist the Board in
coordinating and implementing economic policy. There are many
departments and agencies within the Executive Branch which are directly
or indirectly concerned with economic policies. Since these departments
and agencies represent a wide range of economic interests, it is
important that the staff responsible for coordinating the inputs to and
outputs from the Economic Policy Board be independent from any single
agency. In this way, all views regarding both domestic and international
issues will be incorporated into the decision-making process in an orderly
manner.
The Board will be responsible for ensuring adequate coordination among
existing and proposed committees relating to economic policy. This
includes the Council on Wage and Price Stability, the National Commission
on Productivity and Work Quality, the National Advisory Council on
International Monetary and Financial Policies, and the East-West Foreign
Trade Board.
Since the Economic Policy Board will be responsible for providing advice
to the President concerning both national and international economic
policy, the Council on International Economic Policy will be abolished.
This action should not be considered to be a deemphasis of international
economic policy. On the contrary, changing economic conditions and
the greater internationalization of our economy require a closer coordina-
tion between our domestic and international economic policies. The
Council's staff and resources will be transferred to the Economic Policy
Board effective on the date of enactment of this legislation. It is
anticipated that the total White House resources allocated to the Board
will be about the same as are presently devoted to economic policy
matters.
I urge the Congress to act promptly in passing this legislation. No greater
problems face this nation today than those involving economic policy. It
is vitally important that the resources of the Federal Government be
channeled in the most efficient way possible, and this legislation will
help to accomplish that goal.
A BILL
To establish the President's Economic Policy Board, and for other
purposes.
Be it enacted by the Senate and the House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Economic Policy Board Act of 1975. 11
Sec. 2. There is hereby established the President's Economic Policy
Board (hereinafter in this chapter referred to as the "Board").
Sec. 3. Subject to the direction of the President, and in addition to
performing such other functions as he may direct, the Board shall
oversee the formulation, coordination, and implementation of all
economic policy of the United States, serve as the focal point for
economic policy decision-making, and make such reports and give such
advice to the President as it deems appropriate or as the President
may require.
Sec. 4. The Board shall be composed of the following members and
such additional members as the President may designate:
- 2 -
(1) The President.
(2) The Vice President.
(3) The Assistant to the President for Economic Affairs.
(4) The Secretary of State.
(5) The Secretary of the Treasury.
(6) The Secretary of Defense.
(7) The Secretary of the Interior.
(8) The Secretary of Agriculture.
(9) The Secretary of Commerce.
(10) The Secretary of Labor.
(11) The Secretary of Health, Education, and Welfare.
(12) The Secretary of Housing and Urban Development.
(13) The Secretary of Transportation.
(14) The Director of the Office of Management and Budget.
(15) The Chairman of the Council of Economic Advisers.
(16) The Special Representative for Trade Negotiations.
The President shall preside over meetings of the Board: Provided, That
in his absence he may designate a member of the Board to preside in his
place.
Sec. 5. (a) The staff of the Board shall be headed by an Executive Director
who shall be appointed by the President. The Executive Director shall be
compensated at the rate now or hereafter provided for level II of the
Executive Schedule (5 U.S.C. 5313).
- 3 -
(b)(1) The Executive Director may appoint and fix the compensation
of such staff personnel as he deems necessary. The staff of the Board
shall be appointed and compensated without regard to the provisions of
law regulating the employment and compensation of persons in the
Government service: Provided, That, except for the officers provided
for in paragraph (2) and for not to exceed 10 persons who may receive
compensation not in excess of the rate now or hereafter provided for
GS-18, no staff personnel shall receive compensation in excess of the
rate now or hereafter provided for GS-15.
(2) The Executive Director may appoint and fix the compensation
of two officers at a rate of basic compensation not to exceed the rate
provided for level III of the Federal Executive Salary Schedule, and
appoint and fix the compensation of four officers at rates of basic com-
pensation not to exceed the rate provided for level V of the Federal
Executive Salary Schedule.
(c) The Executive Director may procure temporary and intermittent
servicesto the same extent as is authorized by section 3100 of title 5,
United States Code, at rates not to exceed the daily equivalent of the
rate provided for GS-18.
- 4 -
(d) Upon request of the Executive Director, the head of any
Federal agency is authorized to detail, on a reimbursable basis, any
of its personnel to the Board to assist it in carrying out its duties
under this title.
(e) The Executive Director may enter into and perform contracts,
cooperative agreements, or other similar transactions with any public
agency or instrumentality or with any person, firm, association,
corporation, or institution.
Sec. 6. The Council on International Economic Policy is hereby abolished.
The International Economic Policy Act of 1972, as amended (22 U.S.C.
2841-2849), is hereby repealed.
Sec. 7. The records, property, personnel, and unexpended balances of
appropriations, authorizations, allocations and other funds held, used,
arising from, available to, or to be made available to the Council on
International Economic Policy, are hereby transferred to the Economic
Policy Board.
Sec. 8. For the purpose of carrying out the provisions of this title,
there are authorized to be appropriated such sums as may be necessary.
COUNCIL ON INTERNATIONAL ECONOMIC POLICY
WASHINGTON, D.C. 20500
MEMORANDUM FOR
PHILIP W. BUCHEN
SUBJECT:
Legislation Regarding Economic Policy Board
Attached are three items for your review. Items (1) and (2) represent
optional approaches in drafting the EPB bill:
(1) Draft legislation to establish the Economic Policy Board by
amending the International Policy Act of 1972 (TAB A).
(a) A version of (1) showing changes in existing law (TAB B).
(2) Draft legislation establishing the Economic Policy Board and
repealing the International Economic Policy Act of 1972 (TAB C).
I recommend we submit to Congress the draft legislation establishing
the EPB and repealing the International Economic Policy Act of 1972
(Tab C above). It seems to me that this legislation should be presented
to the Congress as an additional effort by the President to solve the
difficult economic problems facing the nation, rather than as an
"upgrading" of CIEP. Legislation amending the CIEP statute (Tab A)
would tend to understate the importance of the EPB itself while emphasizing
the broadening of CIEP's responsibilities.
The basic arguments for establishing the EPB by legislation are as
follows:
(1) The President is reinforcing his determination to cooperate
with the Congress in solving our economic problems by establishing
the EPB by statute, making it accountable to Congress.
- 2 -
(2) In order to support the decision-making process within the
EPB, and assure coordination among Federal departments and agencies
on economic matters, the President has decided to provide the EPB
with a small, highly qualified staff.
While I agree with your assessment that it is important to retain the
support of CIEP's constituency on the Hill, I believe our supporters
will favor giving the EPB a legislative mandate, particularly if they
are assured that CIEP's functions regarding international economic
policy will be continued under the umbrella of the EPB setup. With
respect to Congressional leaders, key Committee chairmen and the
membership at large who may not be intimately familiar with CIEP,
however, I think it is important to submit the proposal as a new law
rather than as an amendment to an existing statute which deals with
international economic matters. This is even more important with
respect to the presentation of the proposal to the press and the general
public.
OMB also recommends following the approach taken in Tab C, for the
following reasons:
(1) If the legislation is drafted in the form of a reorganization of
the Executive Office, it is more likely to be referred to the Government
Operations Committees than the Banking Committees. This is desirable,
because the testimony of the Administration witness would then be focused
on organizational matters rather than a detailed examination of economic
policy. This is particularly important because Senator Proxmire and
Congressman Reuss, vocal critics of the Administration's economic
program, chair the Banking Committees.
(2) If the legislation is referred to the Government Operations
Committees, we have more flexibility in deciding who the Administration
witness will be. It may be desirable to have the Director of the Office of
Management and Budget testify, rather than Mr. Seidman. This would
avoid the complication of having an Assistant to the President testify
(though the Assistant to the President would be testifying in his capacity
as the President's nominee for Executive Director of the Board).
- 3 -
(3) As a reorganization proposal, the draft legislation is less
likely to be encumbered with detailed amendments requiring an annual
report, reports to various congressional committees and SO forth.
(4) This method of establishing the EPB is in accord with the
President's desire to set up an "NSC-type" organization for economic
policy.
J. M. Dunn
Acting
Executive Director
Attachments
A BILL
To establish the President's Economic Policy Board, to amend
the International Economic Policy Act of 1972, and for other
purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the "Economic Policy Act of 1975. "
Sec. 2. Section 202 of the International Economic Policy Act of
1972 (22 U.S.C. 2841) is amended by striking out "a more rational
and orderly international economic policy for", and inserting in lieu
thereof "the domestic and international economic policy of".
Sec. 3. Section 203 of the International Economic Policy Act of
1972 (22 U.S.C. 2842) is amended -
(1) by inserting immediately after "purposeful" in the
second sentence thereof "domestic and";
(2) by striking out "(1)" in the second sentence thereof;
(3) by striking out everything following "activity" in the
second sentence thereof and placing a period after "activity";
(4) by striking out "a Council on International Economic
Policy" in the third sentence and inserting in lieu
thereof "an Economic Policy Board";
(5) by amending the first clause of subparagraph (A) by
inserting immediately after "of" the following:
"domestic and"; and by amending the second clause
thereof by striking out "international" and by striking
out "including trade, investment, balance of payments,
and finance";
(6) by amending subparagraph (C) by inserting immediately
after "coordination" the following: "of international
economic policy"; and
(7) by amending the last sentence by striking out "Council"
and inserting in lieu thereof "Board", by inserting
immediately after "long-range development of" the
following: "domestic and", and by striking out "a
rational and orderly international economic policy for"
and inserting in lieu thereof "the domestic and international
economic policy of".
Sec. 4. Section 204 of the International Economic Policy Act of
1972 (22 U.S.C. 2843) is amended by striking out "a Council on
International Economic Policy (hereinafter referred to in this
title as the "Council")" and inserting in lieu thereof "an Economic
Policy Board (hereinafter referred to as the "Board")".
Sec. 5. Section 205 of the International Economic Policy Act of
1972 (22 U.S.C. 2844) is amended -
(1) by striking out "Council" in the first sentence and inserting
in lieu thereof "Board";
(2) by adding the following new subparagraphs -
"(1) The President.' "
"(2) The Vice President. 11
"(6) The Secretary of the Interior. 11
"(10) The Secretary of Health, Education, and Welfare. "
"(11) The Secretary of Housing and Urban Development."
"(13) The Assistant to the President for Economic Affairs.
(3) by redesignating subparagraphs (1), (2), (3), (4), (5), (6),
(7), (8), (9) and (10) as subparagraphs (3), (4), (5), (7),
(8), (9), (12), (14), (15), and (16), respectively; and
(4) by striking out "Council" both times it appears in the
last sentence and inserting in lieu thereof "Board".
Sec. 6. There shall be an Executive Committee of the Board which
shall be composed of such members as the President may designate.
The President shall designate the Chairman of the Executive
Committee from among its members. The Executive Committee
shall meet from time to time to consider matters involving responsi-
bilities of the Board.
Sec. 7. Section 206 of the International Economic Policy Act of
1972 (U.S.C. 2845) is hereby repealed.
Sec. 8. Subject to the direction of the President, and in addition to
performing such other functions as he may direct, the Board shall -
(1) Advise the President concerning all aspects of national
and international economic policy.
(2) Oversee the formulation, coordination, and implementation
of all economic policy of the United States.
(3) Serve as the focal point for economic policy decision-making.
(4) Coordinate the activities of all the departments and agencies
of the United States with one another for the purpose of
accomplishing a more consistent domestic and international
economic policy.
(5) Make such recommendations and reports to the President
as it deems appropriate or as the President may require.
(6) Assist and advise the President in the preparation of the
Economic Policy Report required under Section 10 of
this title.
Sec. 9. Section 207 of the International Economic Policy Act of
1972 (22 U.S. C. 2846) is hereby repealed.
Sec. 10. The President shall transmit to the Congress an annual
Economic Policy Report on the activities of the Board, setting
forth a program for carrying out the policy objectives of this title,
together with such recommendations for legislation as he may
deem necessary or advisable.
The President may transmit from time to time reports
supplementary to the Economic Policy Report, each of which may
include such supplementary or revised recommendations as he may
deem necessary or desirable to achieve the purposes and policy
objectives set forth in this title.
Sec. 11. Section 208 of the International Economic Policy Act of
1972 (22 U.S.C. 2847) is amended -
(1) by striking out "Council" in both places it appears in
paragraph (a) and inserting in lieu thereof "Board",
and by inserting immediately after "President" in the
first sentence thereof "by and with the advice and
consent of the Senate, ";
(2) by striking out "Council," in the first sentence of sub-
paragraph (b)(1) and inserting in lieu thereof "Board,";
(3) by striking out the second sentence of subparagraph
(b)(1) and inserting in lieu thereof "The staff of the
Board shall be appointed and compensated without
regard to the provisions of law regulating the employment
and compensation of persons in the Government service:
Provided, That, except for the officers provided for in
paragraph (2) and for not to exceed
persons who may
receive compensation not in excess of the rate now or
hereafter provided for GS-18, no staff personnel shall
receive compensation in excess of the rate now or hereafter
provided for GS-15.";
(4) by striking out "Council" in subparagraph (b)(2) and
inserting in lieu thereof "Board", and by striking out
"one", "IV", "two", and "V" and inserting in lieu
thereof" ", " " , " ", and " ", respectively; and
(5) by striking out "Council" in paragraph (d) and inserting
in lieu thereof "Board".
Sec. 12. Section 5 of (Public Law 93-121) (22 U.S.C. 2847a) is
hereby repealed.
Sec. 13. Section 209 of the International Economic Policy Act of
1972 (22 U.S.C. 2848) is hereby repealed.
Sec. 14. Section 210 of the International Economic Policy Act of
1972, as amended (22 U.S.C. 2849) is amended by striking out
"not to exceed $1,800,000 for fiscal year 1975. ", and inserting
in lieu thereof "such sums as may be necessary
11
TAB B
A BILL
To establish the President's Economic Policy Board, and for
other purposes.
(SHOWING CHANGES IN EXISTING LAW MADE BY THE BILL.
EXISTING LAW PROPOSED TO BE OMITTED IS LINED THROUGH,
NEW MATTER IS UNDERLINED, AND EXISTING LAW IN WHICH
NO CHANGE IS PROPOSED IS SHOWN IN REGULAR TYPE.)
Be it enacted by the Senate and the House of Representatives of
the United States of America in Congress assembled, That this
Act may be cited as the "Economic Policy Act of 1975".
Sec. 202. It is the purpose of this title to provide for closer Federal
interagency coordination in the development of a -more-rational-and
orderly- the domestic and international economic policy fer of the
United States.
Sec. 203. The Congress finds that there are many activities undertaken
by various departments, agencies, and instrumentalities of the Federal
Government which, in the aggregate, constitute the domestic and
international economic policy of the United States. The Congress
further finds that the objectives of the United States with respect
to a sound and purposeful domestic and international economic policy
can be better accomplished through the closer coordination of (-1)-
domestic and foreign economic activity. and (2) in particular, - nat-eesnemic
behavior which,-taen tegether-constitutes-Uaited Sltates-iteational
eesnomic-policy- Therefore this Act establishes a -Geuneil-on
International-Economic Policy an Economic Policy Board which will
provide for -
(A) a clear top level focus for the full range of domestic and
international economic issues; deal with international economic policies
including trade,-investment,-balanee-of-payments;-and finanee-
as a coherent whole;
(B) consistency between domestic and foreign economic policy;
and
(C) close coordination of international economic policy with basic
foreign policy objectives.
The Congress intends that the Council Board shall be provided with
the opportunity to (i) investigate problems with respect to the
coordination, implementation, and long-range development of domestic
and international economic policy, and (ii) make appropriate findings
and recommendations for the purpose of assisting in the development
of a-rational and orderly international the domestic and international
economic policy for of the United States.
Sec. 204. There is created in the Executive Office of the President
a-Couneiton-Iternational-Eeonomic-Poliey(hereimafte-referedto -
thistitle-as the-"Gouneil). an Economic Policy Board (hereinafter
referred to as the "Board").
Sec. 205. The Gouncil Board shall be composed of the following members
and such additional members as the President may designate:
(1) The President.
(2) The Vice President.
(1) (3) The Secretary of State.
(2) (4) The Secretary of the Treasury.
(3) (5) The Secretary of Defense.
(6) The Secretary of the Interior.
(4) (7) The Secretary of Agriculture.
(5) (8) The Secretary of Commerce.
(6) (9) The Secretary of Labor.
(10) The Secretary of Health, Education, and Welfare.
(11) The Secretary of Housing and Urban Development.
(7)-(12) The Secretary of Transportation.
(13) The Assistant to the President for Economic Affairs.
(8)-(14) The Director of the Office of Management and Budget.
(9)-(15) The Chairman of the Council of Economic Advisers.
(10) (16) The Special Representative for Trade Negotiations.
The President shall designate the Chairman of the GeuneH Board from
among the members of the Council Board.
Sec.
There shall be an Executive Committee of the Board which
shall be composed of such members as the President may designate.
stude
The President shall designate the Chairman of the Executive Committee
from among its members. The Executive Committee shall meet from
time to time to consider matters involving responsibilities of the Board.
Se -206. - Subject to the direction of the President, and in addition
to performing such other functions as he may direct, the -Geuneil-
shall--
(1) Assist and advise the President in the preparation of the
International- Economic Report required under section 207.
(2) Review the activities and the pelicies of the United States
Government which-indirectly or-directly relate to international
economics-and, for-the purpose ef- making recommendations to the
President in connection therewith; in consider with some degree of
specificity- the substance and scope- ef the -inte reational economic
pelicy-ef the United-States,-whieh consideration all include examination
of the economic activities (A) the various agencies, departments,
and instrumentalitie the Federal-Government, (B) the several -
States,-and (C-pri-ate-industry
(3)- Gellect, analyze, -and evaluate authoritative information,
eurrent and prespective, - -eeneerning international economic matters. -
Such evaluations shall include but -not-be limited to the impact-ef
international-trade on-the level, stability, and -financial rewards fer-
demestie labor-and the impact of the transnational-corporation-on -
international-trade flows. --
(4)- -Gensider policies-and programs for coordinating the activities
ef- all the departments and-ageneies of the United States with -one another-
for the purpose ofaccomplishing-a-more-eensistent-international-
economic policy, and make ecommendations to the President in-
connection- therewith.
(5) Continually assess-the progress-and effectiveness of Federal-
efforts to earry -out-a consistent international economic policy.-
(6)- Make recommendations to the President for -domestic and-
foreign rams which wiH- premote a more consistent -inte reational
economic policy OR the part of the United States and private industry. -
Recommendations -der this paragraph shall -include, - but shall not be
limited-to,- policy proposals relating to monetary mechanisms, - foreign -
investment, trade, the-balance of payments, foreign aid, - taxes,-
international- tourism and aviation, - and -inte reational treaties and- -
agreements relating to-all-such matters. - Hr addition to other appropriate
objectives, -such policy proposals should be developed with a view toward
(A) - strengthening the United States competitive position in world-
trade;
(B) - achieving equilibrium- in international payment accounts -of- the
United States;-
(G) - increasing experts of goods and services;
(D) - protecting and improving the earning -of- foreign investments -
eensenant with the concepts of -tax-equity-and the need for demestic
investment;-
(E) - aehieving-freedom- ef movement ef- people, goods, capital,-
information, and technology -on a reciprocal-and worldwide basis,
(F}-increasing-the-realempleyme-and icoe-o-worerand
eonsumers on-the bacis-of-interational-eeonomic-aetivity+and
(G) - preserving the diversified industrial base ef- the United States.
Sec.
Subject to the direction of the President, and in addition to
performing such other functions as he may direct, the Board shall -
(1) Advise the President concerning all aspects of national and
international economic policy.
(2) Oversee the formulation, coordination, and implementation
of all economic policy of the United States.
(3) Serve as the focal point for economic policy decision-making.
(4) Coordinate the activities of all the departments and agencies
of the United States with one another for the purpose of
accomplishing a more consistent domestic and international
economic policy.
(5) Make such recommendations and reports to the President
as it deems appropriate or as the President may require.
(6) Assist and advise the President in the preparation of the
Economic Policy Report required under Section 8 of this
title.
Seer-207. (a) The President shall transmit te-the Congress an-annual
report on the international economic position of the-United States:----
Such-report (hereinafter referred to as-the "International Economic -
Report shall be submitted not later-than sixty- day s-after the beginning
of each regular session of the Congress, and shall include- -
(H) - information and statistics describing eha eteristics of
international economic- activity and identifying significant current -
and-foresecable trends and developments;
(2)- -a review. of the -international economic program of the
Federal Government and -a review of domestic and foreign economic
conditions and other significant matters affecting the balance of-
international payments of the United States and -of- their effect -on
the international trade, investment, - financial, and monetary
position -of- the United States -
(3)- a review ef- the -impaet of -inte reational -volunta standards,
the foreign investments of United States based transnational firms,-
and the level- ef- foreign wage rates-on the level, stability, -and
financial reward fer domestic employment;
(4) a- comparative description and-analysis ef- the following
subject- matter, with respect 40 the United States, the Suropean
Community and principal- countries within the European Community,
Japan, and whenever applicable, the Union of Soviet Socialist-
Republics-
(A) research-and development expenditures, and productivity
and technological trends in-majer-industrial and-agricultural-
sectors;-
(B) - investment patterns in-new-plant-and equipment;-
(G) - industrial -manpower-and-training practices;
(D) tax incentives and other governmental financial assistance;-
(E) expert promotion practices;-
(F) - share of the export-market, -by area and industrial and-
agricultural sectors;-
(G) environmental practices;
(H) -antitrust practices; and
(i) leng range governmental economic planning programs,
targets,-and-objoctives;-
(5) a review- ef- the -relationship between the United States Government
and American private business with respect to the categorie -of- subject-
matter listed in -subparagraphs (A) through (I) of-paragraph (4) and any--
other appropriate areas ef information, together with -recommendations
for appropriate policies and programs in order-to insure that American
business is -competitive -in- international commerce; and
(6) a program for-earrying out the policy objectives of this
title,-tegether with-suchrecommendations-forlegiolationashe
may deem necessary or desirable. -
- (b) - The President may transmit from time to time to the Congress -
reports supplementary- to the Inte rational Beenemic Report, each of -
whieh-may-include-such-supplenentary or-reviscdecomolationsas
he -may deem necessary er desirable to-achieve the purposes and pelicy-
objectives-sot-forth-in thik title.
Sec.
The President shall transmit to the Congress an annual Economic
Policy Report on the activities of the Board, setting forth a program for
carrying out the policy objectives of this title, together with such
recommendations for legislation as he may deem necessary or advisable.
The President may transmit from time to time reports supplementary
to the Economic Policy Report, each of which may include such supple- -
mentary or revised recommendations as he may deem necessary or
desirable to achieve the purposes and policy objectives set forth in
this title.
R.
FOR
"See -5- Netwithstanding the provisions -of- ection 308(a)-
of the-International-Econoic Policy -A et of 1972, - Hy future
Executive Director the Council -on International Economic
Policy appointed after the date-of the ennetment of this -bill
shal-be-appointed--the-President,-by a witb-the-advice
and consent ef the Senate.
Sec. 208. (a) The staff of the Council Board shall be headed by an
Executive Director who shall be appointed by the President, by and
with the consent of the Senate, and he shall be compensated at the rate
now or hereafter provided for level II of the Executive Schedule (5 U.S.C.
5313). He shall keep the Committee on Banking, Housing and Urban
Affairs of the Senate, the Committee on Banking and Currency of the
House of Representatives, the Committee on Foreign Relations of the
Senate, the Committee on Foreign Affairs of the House of Representatives,
the Committee on Finance of the Senate, the Committee on Ways and Means
of the House of Representatives, and the Joint Economic Committee fully
and currently informed regarding the activities of the GeuneH Board.
(b) With the approval of the Genneil Board, the Executive Director
may appoint and fix the compensation of such staff personnel as he deems
necessary. Except as paragraph (2) the staff Council
shaH-be appointed subject provisions of title 5, Uited-States-Code,
governing appointments the competitive service, and shall be- paid in
accordance with the provisions of chapter and- subehapter H-ef chapter-53
ef- such-title relating- to ssification- General Schedule pay rates.
R.
ALD
FROM
The staff of the Board shall be appointed and compensated without
regard to the provisions of law regulating the employment and compensation
of persons in the Government service: Provided. That, except for the
officers provided for in paragraph (2) and for not to exceed
persons
who may receive compensation not in excess of the rate now or hereafter
provided for GS-18, no staff personnel shall receive compensation in
excess of the rate now or hereafter provided for GS-15.
(2) With the approval of the Council Board, the Executive Director
may appoint and fix the compensation of one
officer(s) at a rate of
basic compensation not to exceed the rate provided for level IV-
of
the Federal Executive Salary Schedule, and appoint and fix the compensation
of two
officers at rates of basic compensation not to exceed the rate
provided for level V-
of the Federal Executive Salary Schedule.
(c) With the approval of the Council, the Executive Director may
procure temporary and intermittent service to the same extent as is
authorized by section 3100 of title 5, United States Code, at rates not
to exceed the daily equivalent of the rate provided for GS-18.
(d) Upon request of the Executive Director, the head of any
Federal agency is authorized to detail, on a reimbursable basis, any
of its personnel to the Genneil Board to assist it in carrying out its
duties under this title.
RERALD
FORM
See- -209. - The previsions of this title shall expire-en-June 30,
1077,-unlessextended-bylegislatien-enacted-byhe-Congess
Sec. 210. For the purpose of carrying out the provisions of this
title, there are authorized to be appropriated net to -exceed
$1,-800,000.ferfiseal year-1975- such sums as may be necessary.
Sec.
The International Economic Policy Act of 1972, as
amended, (22 U.S.C. 2841-2849), is hereby repealed.
R.
SECTION
FORD
TAB C
A BILL
To establish the President's Economic Policy Board, and for other
purposes.
Be it enacted by the Senate and the House of Representatives of the
United States of America in Congress assembled, That this Act may
be cited as the "Economic Policy Board Act of 1975. 11
Sec. 2. There is hereby established the President's Economic Policy
Board (hereinafter in this chapter referred to as the "Board").
Sec. 3. Subject to the direction of the President, and in addition to
performing such other functions as he may direct, the Board shall -
(1) Advise the President concerning all aspects of national
and international economic policy.
(2) Oversee the formulation, coordination, and implementation
of all economic policy of the United States.
(3) Serve as the focal point for economic policy decision-making.
(4) Make such recommendations and reports to the President
as it deems appropriate or as the President may require.
R.
SEALS
FORD
Sec. 4. The Board shall be composed of the following members
and such additional members as the President may designate:
(1) The President.
(2) The Vice President.
(3) The Secretary of State.
(4) The Secretary of the Treasury.
(5) The Secretary of Defense.
(6) The Secretary of the Interior.
(7) The Secretary of Agriculture.
(8) The Secretary of Commerce.
(9) The Secretary of Labor.
(10) The Secretary of Health, Education, and Welfare.
(11) The Secretary of Housing and Urban Development.
(12) The Secretary of Transportation.
(13) The Assistant to the President for Economic Affairs.
(14) The Director of the Office of Management and Budget.
(15) The Chairman of the Council of Economic Advisers.
(16) The Special Representative for Trade Negotiations.
The President shall preside over meetings of the Board: Provided, That
in his absence he may designate a member of the Board to preside in his
place.
Sec. 5. (a) The staff of the Board shall be headed by an Executive
Director who shall be appointed by the President. The Executive
Director shall be compensated at the rate now or hereafter provided
for level II of the Executive Schedule (5 U.S.C. 5313).
(b)(1) With the approval of the Board, the Executive Director
may appoint and fix the compensation of such staff personnel as he
deems necessary. The staff of the Board shall be appointed and
compensated without regard to the provisions of law regulating the
employment and compensation of persons in the Government service:
Provided, That, except for the officers provided for in paragraph (2)
and for not to exceed
persons who may receive compensation not
in excess of the rate now or hereafter provided for GS-18, no staff
personnel shall receive compensation in excess of the rate now or
hereafter provided for GS-15.
(2) With the approval of the Board, the Executive Director may
appoint and fix the compensation of
officer(s) at a rate of basic
compensation not to exceed the rate provided for level
of the
Federal Executive Salary Schedule, and appoint and fix the compensation
of
officer(s) at rates of basic compensation not to exceed the rate
provided for level
of the Federal Executive Salary Schedule.
R.
BERALD
FREE
(c) With the approval of the Council, the Executive Director
may procure temporary and intermittent service to the same extent
as is authorized by section 3100 of title 5, United States Code, at
rates not to exceed the daily equivalent of the rate provided for GS-18.
(d) Upon request of the Executive Director, the head of any
Federal agency is authorized to detail, on a reimbursable basis, any
of its personnel to the Board to assist it in carrying out its duties under
this title.
Sec. 6. The Council on International Economic Policy is hereby abolished.
The International Economic Policy Act of 1972, as amended (22 U.S.C.
2841-2849), is hereby repealed.
Sec. 7. The records, property, personnel, and unexpended balances
of appropriations, authorizations, allocations and other funds held, used,
arising from, available to, or to be made available to the Council on
International Economic Policy, are hereby transferred to the Economic
Policy Board.
Sec. 8. For the purpose of carrying out the provisions of this title,
there are authorized to be appropriated such sums as may be necessary.
STATE
THE WHITE HOUSE
WASHINGTON
February 12, 1975
MEMORANDUM FOR:
PHILIP W. BUCHEN
L. WILLIAM SEIDMAN
THRU:
JOHN O. MARSH
MAX L. FRIEDERSDORF
VERN LOEN VL
m.f.
FROM:
DOUGLAS P. BENNETT DPB
SUBJECT:
Feasibility of Seeking a Statutory
Economic Policy Board (EPB)
This memorandum is not intended to analyze the merits or demerits of such
a policy decision but to shed some light on possible congressional reaction
should the decision be made to seek statutory authority for the Economic
Policy Board (EPB) in conjunction with a merger of the Council on Inter-
national Economic Policy (CIEP).
Legislative History
The EPB was created by Executive Order on October 1, 1974. CIEP was es-
tablished by Executive Order in 1971 with statutory authority provided August
29, 1972 under the International Economic Policy Act of 1972. The original
legislation was jointly considered by the Senate Banking, Housing and Urban
Affairs Committee and the Senate Foreign Relations Committee and by the
House Banking and Currency Committee. It should be noted that the committee
chairmen involved were Senator Sparkman (Banking), Senator Fulbright (Foreign
Relations) and Representative Patman (Banking). Both House and Senate con-
ferees were appointed from the respective Banking Committees.
In addition to creating this Council by statute and delineating its functions, the
Congress required an annual report to be transmitted to the Congress at ap-
proximately the same time as the report of the Council of Economic Advisors
(CEA) and required "keeping fully and currently informed the banking com-
mittees and the foreign policy committees of the Senate and the House of Rep-
resentatives, as well as the Joint Economic Committee". The move to require
Senate confirmation of the Council's Executive Director was defeated in the
Senate Banking Committee by a vote of 9 to 5. Statutory authority for the CIEP
was to expire June 30, 1973 subject to extension by the Congress.
FORD & LIBRARY GERALD
- 2 -
Apparently, enactment of this statute was not inspired by strong Congressional
motivation but was rather the fruit of untiring and diligent efforts on the part of
Peter Flannigan and was agreed to by the Congress at the Administration's re-
quest. Confirmation of the Executive Director was not included primarily as
a favor to Mr. Flannigan although Senator Mondale was most anxious to include
this provision in the basic law.
In 1973 the Congress adopted various amendments to the International Economic
Policy Act of 1972. The two major provisions were as follows:
(1) Extended the expiration date of the Council from June 30, 1973
to June 30, 1977; and
(2) Appointment of the Executive Director of the Council other than
the incumbent (Peter Flannigan) was made subject to Senate confirmation.
Anticipated Congressional Response
To accomplish merger of the CIEP into a statutorily authorized EPB requires
two legislative steps:
(1) Abolution of the CIEP statutory authority; and
(2) Statutory creation of the EPB with transfer of CIEP functions
to the EPB.
Congressional approval of this merger proposal will not be without difficulty and,
in this regard, I believe we should be cognizant of the following:
(1) Repeal of the statute authorizing the CIEP will probably be jointly
considered by banking and foreign policy committees of both Houses and, ad-
ditionally, would be carefully scrutinized by the Joint Economic Committee.
Particular attention should be given to the fact that the banking committees
have new chairmen. Chairman Reuss of the House Banking and Currency Com-
mittee is generally considered to be a reasonably able economist with his greatest
interest and expertise in the field of international economics. As a result, we
could expect substantial opposition from him. On the other hand, Chairman
Proxmire has greater interest in domestic economics and might favor such a
merger and the "elevation" of the domestic side (although he understands the
interrelation of domestic and international economic policy). Nevertheless,
I suspect both committees would perceive this as a downgrading of accent on
international economic policy. This would clearly be the view of the House and
Senate Foreign Policy committees. Considerable opposition could emanate as
a result of this perception.
FORDO & LIBRAR. BERALD
- 3 -
(2) The role of the Special Trade Representative with respect to the
newly created EPB/CIEP would need to be carefully distinguished in light of
the recent elevation of the STR to cabinet rank. Chairman Long of the Senate
Finance Committee would be particularly disturbed if in any way the STR's
responsibilities were diluted. This could prompt jurisdictional involvement
of the Senatè Finance and House Ways and Means Committees.
(3) Most assuredly Senate confirmation would be required of the Execu-
tive Director thereby exacting a promise from the nominee that he will freely
and willingly testify before the Congress. Given the state of the world economy
and the problems here at home and the extensive politicizing of this issue, the
Executive Director would be resolved to extensive congressional testimony and
a deluge of written inquiries from the Hill. The congressional demands on his
time would be substantial thus possibly diluting his ability to directly serve the
President.
(4) In all likelihood the Congress would mandate frequent receipt of
information both of a confidential nature as well as formal reports. This would
impede the sensitive nature of his responsibilities with respect to the President.
(5) The Congress during consideration of the legislation may redefine
responsibilities and purposes of the EPB in such a manner that the President's
intent is substantially changed.
Conclusion
Congressional approval of the statutory authority sought could, I am confident,
be obtained but there would be a price in the form of exacting numerous promises
which may be unacceptable or have the effect of overburdening the Executive
Director and impairing his ability to serve the President. I also caution against
the extensive use of personnel "on loan" from other congressional appropriated
organizations. There is the risk of attracting the attention of Congress thereby
subjecting the President to criticism and overzealous scrutiny of the White House
budget.
FORD is LIBRARY GERALD
-
THE WHITE HOUSE
WASHINGTON
February 14, 1975
Doug,
You did a great job on the
EPB memo for Mr. Buchen.
Many thanks.
Jack
MEMORANDUM
OF CALL
TO:
Doug YOU WERE VISITED BY-
YOU WERE CALLED BY
Carl Bell
OF (Organization)
CIEP
PHONE NO.
PLEASE CALL
CODE/EXT.
-2.7.77
WILL CALL AGAIN
IS WAITING TO SEE YOU
RETURNED YOUR CALL
WISHES AN APPOINTMENT
MESSAGE
on Dnon
FORD is LIBRARY 07V839
Room 213
EQB Sent
copy of copy to
of
RECEIVED BY
R
GPO : 1969-o48-16-80341-1 2/14 382-389
DATE
TIME
5:45
STANDARD FORM 63
63-108
REVISED AUGUST 1967
GSA FPMR (41 CFR) 101-11.6
THE WHITE HOUSE
WASHINGTON
February 12, 1975
MEMORANDUM FOR:
PHILIP W. BUCHEN
L. WILLIAM SEIDMAN
THRU:
JOHN O. MARSH
MAX L. FRIEDERSDORF
VERN LOEN VL
m.6.
FROM:
DOUGLAS P. BENNETT DPE
SUBJECT:
Feasibility of Seeking a Statutory
Economic Policy Board (EPB)
This memorandum is not intended to analyze the merits or demerits of such
a policy decision but to shed some light on possible congressional reaction
should the decision be made to seek statutory authority for the Economic
Policy Board (EPB) in conjunction with a merger of the Council on Inter-
national Economic Policy (CIEP).
Legislative History
The EPB was created by Executive Order on October 1, 1974. CIEP was es-
tablished by Executive Order in 1971 with statutory authority provided August
29, 1972 under the International Economic Policy Act of 1972. The original
legislation was jointly considered by the Senate Banking, Housing and Urban
Affairs Committee and the Senate Foreign Relations Committee and by the
House Banking and Currency Committee. It should be noted that the committee
chairmen involved were Senator Sparkman (Banking), Senator Fulbright (Foreign
Relations) and Representative Patman (Banking). Both House and Senate con-
ferees were appointed from the respective Banking Committees.
In addition to creating this Council by statute and delineating its functions, the
Congress required an annual report to be transmitted to the Congress at ap-
proximately the same time as the report of the Council of Economic Advisors
(CEA) and required "keeping fully and currently informed the banking com-
mittees and the foreign policy committees of the Senate and the House of Rep-
resentatives, as well as the Joint Economic Committee". The move to require
Senate confirmation of the Council's Executive Director was defeated in the
Senate Banking Committee by a vote of 9 to 5. Statutory authority for the CIEP
was to expire June 30, 1973 subject to extension by the Congress.
FORD & LIBRARY GERALD
- 2
Apparently, enactment of this statute was not inspired by strong Congressional
motivation but was rather the fruit of untiring and diligent efforts on the part of
Peter Flannigan and was agreed to by the Congress at the Administration's re-
quest. Confirmation of the Executive Director was not included primarily as
a favor to Mr. Flannigan although Senator Mondale was most anxious to include
this provision in the basic law.
In 1973 the Congress adopted various amendments to the International Economic
Policy Act of 1972. The two major provisions were as follows:
(1) Extended the expiration date of the Council from June 30, 1973
to June 30, 1977; and
(2) Appointment of the Executive Director of the Council other than
the incumbent (Peter Flannigan) was made subject to Senate confirmation.
Anticipated Congressional Response
To accomplish merger of the CIEP into a statutorily authorized EPB requires
two legislative steps:
(1) Abolution of the CIEP statutory authority; and
(2) Statutory creation of the EPB with transfer of CIEP functions
to the EPB.
Congressional approval of this merger proposal will not be without difficulty and,
in this regard, I believe we should be cognizant of the following:
(1) Repeal of the statute authorizing the CIEP will probably be jointly
considered by banking and foreign policy committees of both Houses and, ad-
ditionally, would be carefully scrutinized by the Joint Economic Committee.
Particular attention should be given to the fact that the banking committees
have new chairmen. Chairman Reuss of the House Banking and Currency Com-
mittee is generally considered to be a reasonably able economist with his greatest
interest and expertise in the field of international economics. As a result, we
could expect substantial opposition from him. On the other hand, Chairman
Proxmire has greater interest in domestic economics and might favor such a
merger and the "elevation" of the domestic side (although he understands the
interrelation of domestic and international economic policy). Nevertheless,
I suspect both committees would perceive this as a downgrading of accent on
international economic policy. This would clearly be the view of the House and
Senate Foreign Policy committees. Considerable opposition could emanate as
a result of this perception.
FORD i LIBRAKI GERALD
- 3 -
(2)
The role of the Special Trade Representative with respect to the
newly created EPB/CIEP would need to be carefully distinguished in light of
the recent elevation of the STR to cabinet rank. Chairman Long of the Senate
Finance Committee would be particularly disturbed if in any way the STR's
responsibilities were diluted. This could prompt jurisdictional involvement
of the Senate Finance and House Ways and Means Committees.
(3) Most assuredly Senate confirmation would be required of the Execu-
tive Director thereby exacting a promise from the nominee that he will freely
and willingly testify before the Congress. Given the state of the world economy
and the problems here at home and the extensive politicizing of this issue, the
Executive Director would be resolved to extensive congressional testimony and
a deluge of written inquiries from the Hill. The congressional demands on his
time would be substantial thus possibly diluting his ability to directly serve the
President.
(4)
In all likelihood the Congress would mandate frequent receipt of
information both of a confidential nature as well as formal reports. This would
impede the sensitive nature of his responsibilities with respect to the President.
(5) The Congress during consideration of the legislation may redefine
responsibilities and purposes of the EPB in such a manner that the President's
intent is substantially changed.
Conclusion
Congressional approval of the statutory authority sought could, I am confident,
be obtained but there would be a price in the form of exacting numerous promises
which may be unacceptable or have the effect of overburdening the Executive
Director and impairing his ability to serve the President. I also caution against
the extensive use of personnel "on loan" from other congressional appropriated
organizations. There is the risk of attracting the attention of Congress thereby
subjecting the President to criticism and overzealous scrutiny of the White House
budget.
FORD is LIBRARY GERALD
THE WHITE HOUSE
WASHINGTON
February 12, 1975
MEMORANDUM FOR:
PHILIP W. BUCHEN
L. WILLIAM SEIDMAN
THRU:
JOHN O. MARSH
MAX L. FRIEDERSDORF
Mi.
VERN LOEN VL
FROM:
DOUGLAS P. BENNETT
DPE
SUBJECT:
Feasibility of Seeking a Statutory
Economic Policy Board (EPB)
This memorandum is not intended to analyze the merits or demerits of such
a policy decision but to shed some light on possible congressional reaction
should the decision be made to seek statutory authority for the Economic
Policy Board (EPB) in conjunction with a merger of the Council on Inter-
national Economic Policy (CIEP).
Legislative History
The EPB was created by Executive Order on October 1, 1974. CIEP was es-
tablished by Executive Order in 1971 with statutory authority provided August
29, 1972 under the International Economic Policy Act of 1972. The original
legislation was jointly considered by the Senate Banking, Housing and Urban
Affairs Committee and the Senate Foreign Relations Committee and by the
House Banking and Currency Committee. It should be noted that the committee
chairmen involved were Senator Sparkman (Banking), Senator Fulbright (Foreign
Relations) and Representative Patman (Banking). Both House and Senate con-
ferees were appointed from the respective Banking Committees.
In addition to creating this Council by statute and delineating its functions, the
Congress required an annual report to be transmitted to the Congress at ap-
proximately the same time as the report of the Council of Economic Advisors
(CEA) and required "keeping fully and currently informed the banking com-
mittees and the foreign policy committees of the Senate and the House of Rep-
resentatives, as well as the Joint Economic Committee". The move to require
Senate confirmation of the Council's Executive Director was defeated in the
Senate Banking Committee by a vote of 9 to 5. Statutory authority for the CIEP
was to expire June 30, 1973 subject to extension by the Congress.
2 --
Apparently, enactment of this statute was not inspired by strong Congressional
motivation but was rather the fruit of untiring and diligent efforts on the part of
Peter Flannigan and was agreed to by the Congress at the Administration's re-
quest. Confirmation of the Executive Director was not included primarily as
a favor to Mr. Flannigan although Senator Mondale was most anxious to include
this provision in the basic law.
In 1973 the Congress adopted various amendments to the International Economic
Policy Act of 1972. The two major provisions were as follows:
(1)
Extended the expiration date of the Council from June 30, 1973
to June 30, 1977; and
(2)
Appointment of the Executive Director of the Council other than
the incumbent (Peter Flannigan) was made subject to Senate confirmation.
Anticipated Congressional Response
To accomplish merger of the CIEP into a statutorily authorized EPB requires
two legislative steps:
(1)
Abolution of the CIEP statutory authority; and
(2)
Statutory creation of the EPB with transfer of CIEP functions
to the EPB.
Congressional approval of this merger proposal will not be without difficulty and,
in this regard, I believe we should be cognizant of the following:
(1) Repeal of the statute authorizing the CIEP will probably be jointly
considered by banking and foreign policy committees of both Houses and, ad-
ditionally, would be carefully scrutinized by the Joint Economic Committee.
Particular attention should be given to the fact that the banking committees
have new chairmen. Chairman Reuss of the House Banking and Currency Com-
mittee is generally considered to be a reasonably able economist with his greatest
interest and expertise in the field of international economics. As a result, we
could expect substantial opposition from him. On the other hand, Chairman
Proxmire has greater interest in domestic economics and might favor such a
merger and the "elevation" of the domestic side (although he understands the
interrelation of domestic and international economic policy). Nevertheless,
I suspect both committees would perceive this as a downgrading of accent on
international economic policy. This would clearly be the view of the House and
Senate Foreign Policy committees. Considerable opposition could emanate as
a result of this perception.
- 3
(2)
The role of the Special Trade Representative with respect to the
newly created EPB/CIEP would need to be carefully distinguished in light of
the recent elevation of the STR to cabinet rank. Chairman Long of the Senate
Finance Committee would be particularly disturbed if in any way the STR's
responsibilities were diluted. This could prompt jurisdictional involvement
of the Senate Finance and House Ways and Means Committees.
(3)
Most assuredly Senate confirmation would be required of the Execu-
tive Director thereby exacting a promise from the nominee that he will freely
and willingly testify before the Congress. Given the state of the world economy
and the problems here at home and the extensive politicizing of this issue, the
Executive Director would be resolved to extensive congressional testimony and
a deluge of written inquiries from the Hill. The congressional demands on his
time would be substantial thus possibly diluting his ability to directly serve the
President.
(4)
In all likelihood the Congress would mandate frequent receipt of
information both of a confidential nature as well as formal reports. This would
impede the sensitive nature of his responsibilities with respect to the President.
(5)
The Congress during consideration of the legislation may redefine
responsibilities and purposes of the EPB in such a manner that the President's
intent is substantially changed.
Conclusion
Congressional approval of the statutory authority sought could, I am confident,
be obtained but there would be a price in the form of exacting numerous promises
which may be unacceptable or have the effect of overburdening the Executive
Director and impairing his ability to serve the President. I also caution against
the extensive use of personnel "on loan" from other congressional appropriated
organizations. There is the risk of attracting the attention of Congress thereby
subjecting the President to criticism and overzealous scrutiny of the White House
budget.
THE WHITE HOUSE
WASHINGTON
February 12, 1975
MEMORANDUM FOR:
PHILIP W. BUCHEN
L. WILLIAM SEIDMAN
THRU:
JOHN O. MARSH
MAX L. FRIEDERSDORF
VERN LOEN
VL
m.f.
FROM:
DOUGLAS P. BENNETT
DPE
SUBJECT:
Feasibility of Seeking a Statutory
Economic Policy Board (EPB)
This memorandum is not intended to analyze the merits or demerits of such
a policy decision but to shed some light on possible congressional reaction
should the decision be made to seek statutory authority for the Economic
Policy Board (EPB) in conjunction with a merger of the Council on Inter-
national Economic Policy (CIEP).
Legislative History
The EPB was created by Executive Order on October 1, 1974. CIEP was es-
tablished by Executive Order in 1971 with statutory authority provided August
29, 1972 under the International Economic Policy Act of 1972. The original
legislation was jointly considered by the Senate Banking, Housing and Urban
Affairs Committee and the Senate Foreign Relations Committee and by the
House Banking and Currency Committee. It should be noted that the committee
chairmen involved were Senator Sparkman (Banking), Senator Fulbright (Foreign
Relations) and Representative Patman (Banking). Both House and Senate con-
ferees were appointed from the respective Banking Committees.
In addition to creating this Council by statute and delineating its functions, the
Congress required an annual report to be transmitted to the Congress at ap-
proximately the same time as the report of the Council of Economic Advisors
(CEA) and required "keeping fully and currently informed the banking com-
mittees and the foreign policy committees of the Senate and the House of Rep-
resentatives, as well as the Joint Economic Committee". The move to require
Senate confirmation of the Council's Executive Director was defeated in the
Senate Banking Committee by a vote of 9 to 5. Statutory authority for the CIEP
was to expire June 30, 1973 subject to extension by the Congress.
2
Apparently, enactment of this statute was not inspired by strong Congressional
motivation but was rather the fruit of untiring and diligent efforts on the part of
Peter Flannigan and was agreed to by the Congress at the Administration's re-
quest. Confirmation of the Executive Director was not included primarily as
a favor to Mr. Flannigan although Senator Mondale was most anxious to include
this provision in the basic law.
In 1973 the Congress adopted various amendments to the International Economic
Policy Act of 1972. The two major provisions were as follows:
(1)
Extended the expiration date of the Council from June 30, 1973
to June 30, 1977; and
(2)
Appointment of the Executive Director of the Council other than
the incumbent (Peter Flannigan) was made subject to Senate confirmation.
Anticipated Congressional Response
To accomplish merger of the CIEP into a statutorily authorized EPB requires
two legislative steps:
(1)
Abolution of the CIEP statutory authority; and
(2)
Statutory creation of the EPB with transfer of CIEP functions
to the EPB.
Congressional approval of this merger proposal will not be without difficulty and,
in this regard, I believe we should be cognizant of the following:
(1) Repeal of the statute authorizing the CIEP will probably be jointly
considered by banking and foreign policy committees of both Houses and, ad-
ditionally, would be carefully scrutinized by the Joint Economic Committee.
Particular attention should be given to the fact that the banking committees
have new chairmen. Chairman Reuss of the House Banking and Currency Com-
mittee is generally considered to be a reasonably able economist with his greatest
interest and expertise in the field of international economics. As a result, we
could expect substantial opposition from him. On the other hand, Chairman
Proxmire has greater interest in domestic economics and might favor such a
merger and the "elevation" of the domestic side (although he understands the
interrelation of domestic and international economic policy). Nevertheless,
I suspect both committees would perceive this as a downgrading of accent on
international economic policy. This would clearly be the view of the House and
Senate Foreign Policy committees. Considerable opposition could emanate as
a result of this perception.
- 3 -
(2)
The role of the Special Trade Representative with respect to the
newly created EPB/CIEP would need to be carefully distinguished in light of
the recent elevation of the STR to cabinet rank. Chairman Long of the Senate
Finance Committee would be particularly disturbed if in any way the STR's
responsibilities were diluted. This could prompt jurisdictional involvement
of the Senate Finance and House Ways and Means Committees.
(3)
Most assuredly Senate confirmation would be required of the Execu-
tive Director thereby exacting a promise from the nominee that he will freely
and willingly testify before the Congress. Given the state of the world economy
and the problems here at home and the extensive politicizing of this issue, the
Executive Director would be resolved to extensive congressional testimony and
a deluge of written inquiries from the Hill. The congressional demands on his
time would be substantial thus possibly diluting his ability to directly serve the
President.
(4)
In all likelihood the Congress would mandate frequent receipt of
information both of a confidential nature as well as formal reports. This would
impede the sensitive nature of his responsibilities with respect to the President.
(5)
The Congress during consideration of the legislation may redefine
responsibilities and purposes of the EPB in such a manner that the President's
intent is substantially changed.
Conclusion
Congressional approval of the statutory authority sought could, I am confident,
be obtained but there would be a price in the form of exacting numerous promises
which may be unacceptable or have the effect of overburdening the Executive
Director and impairing his ability to serve the President. I also caution against
the extensive use of personnel "on loan" from other congressional appropriated
organizations. There is the risk of attracting the attention of Congress thereby
subjecting the President to criticism and overzealous scrutiny of the White House
budget.
THE WHITE HOUSE
WASHINGTON
March 13, 1975
MEMORANDUM FOR:
DOUG BENNETT
FROM:
MAX FRIEDERSDORF m.f.
The Economic Policy Board will hold a meeting from 9 A.M.
to 5 P.M. on Saturday, March 15, Room 208, Executive Office
Building. It will be attended by Secretary Simon, Bill Seidman,
Frank Zarb, Alan Greenspan, Sid Jones and representatives from
CIEP and other interested offices.
The topic will be the general economic outlook and budget
prospects. This will be the first meeting of this group
since back in January prior to the State of the Union. I
would like for you to represent our office in this session and
be prepared to give our staff a report on Monday morning at
our own staff meeting.
I will be attending part of the sessions on Saturday but
would like for you to plan to attend the full day if possible.
CC: Jack Marsh
Bob Wolthuis
Bob will coure kome
10:45-2:15 10:45