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1975/08/09 HR5884 Council on International Economic Policy Appropriations Authorization
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1975/08/09 HR5884 Council on International Economic Policy Appropriations Authorization
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President (1974-1977 : Ford). Council on International Economic Policy. 8/9/1974-1/20/1977
Appropriations and expenditures
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The original documents are located in Box 29, folder "8/9/75 HR5884 Council on
International Economic Policy Appropriations Authorization" of the White House Records
Office: Legislation Case 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 R. 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States of America his copyrights in all of his unpublished writings in National Archives collections.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.
Exact duplicates within this folder were not digitized.
Digitized from Box 29 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
APPROVED AU6 9 9 - 1975 AUG 9-
ACTION
THE WHITE HOUSE
Last Day: August 13
WASHINGTON
August 8, 1975
MEMORANDUM FOR
THE PRESIDENT
To
archives
FROM:
JIM CANNON
8/12
SUBJECT:
H.R. 5884 - Council on International
Economic Policy Appropriations Authorization
Attached for your consideration is H.R. 5884, sponsored by
Representative Nix, which:
-- Amends CIEP's authorizing legislation to permit the
Council to appoint and compensate its staff without
regard to the general laws governing Federal employment.
-- extends the life of CIEP from June 30, 1977 to
September 30, 1977, consistent with the change in the
fiscal years under the Congressional Budget Act of 1974.
-- authorizes appropriations for CIEP of $1,657,000 for
FY 76 and $1,670,000 for FY 77.
Additional information is provided in OMB's enrolled bill
report at Tab A.
OMB, Max Friedersdorf, Bill Seidman, Max Friedersdorf, NSC,
Counsel's Office (Lazarus) and I recommend approval of the
enrolled bill.
RECOMMENDATION
That you sign H.R. 5884 at Tab B.
FORD LIBRARY & 938870
AUG 9- APPROVED 1975 STATES UNITED
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
AUG 7 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 5884 - Council on International
Economic Policy (CIEP) appropriations authorization,
fiscal years 1976 and 1977
Sponsor - Rep. Nix (D) Pennsylvania
Last Day for Action
August 13, 1975 - Wednesday
Purpose
Authorizes appropriations of $1,657,000 for the CIEP in
fiscal 1976 and $1,670,000 in fiscal 1977, extends the life
of the Council from June 30, 1977, to September 30, 1977,
and exempts the CIEP from the general laws regulating
Federal employment.
Agency Recommendations
Office of Management and Budget
Approval
Council on International Economic Policy
Approval
Department of the Treasury
Approval
Civil Service Commission
Approval
Department of State
No objection
Discussion
The enrolled bill is identical to a draft Administration
proposal transmitted to the Congress earlier this year.
It provides 2-year appropriations authority for the CIEP
consistent with the provisions of the Congressional Budget
and Impoundment Control Act of 1974 (P.L. 93-344). Amounts
authorized for appropriation are $1,657,000 for fiscal 1976
and $1,670,000 for fiscal 1977. The bill contemplates that
2
appropriations authorization for the Council during the
transition period between fiscal years 1976 and 1977
(July 1, 1976 - September 30, 1976) will be provided in
general legislation the Administration has requested for
this purpose.
The bill also extends the life of the Council from June 30, 1977,
to September 30, 1977, thus conforming the termination of the
Council's authority to the new fiscal year established by
the 1974 Budget Act.
Finally, the enrolled bill amends the CIEP's basic authorizing
legislation to permit the Council to appoint and compensate
its staff without regard to the general laws governing
Federal employment. Recognizing the temporary nature of the
CIEP and its need for administrative flexibility to meet
rapidly changing problems on which it must advise the
President, Congress previously has included identical
exemptions from these laws in annual appropriation acts for
the Council. Last year, however, during consideration of the
CIEP's fiscal 1975 appropriation bill, the conference
committee recommended that such exemptions no longer be
carried in appropriations bills because such provisions are
more appropriate in basic authorizing legislation and may be
subject to a "point of order" in annual appropriations bills.
James m. Director Trey for
Legislative Reference
Enclosures
MEMORANDUM
COUNCIL ON INTERNATIONAL ECONOMIC POLICY
August 4, 1975
FOR:
James M. Frey
Assistant Director for
Legislative Reference
OMB
FROM:
J. M. Dunn
Acting Executive Director
SUBJECT:
Enrolled Bill Request on CIEP Authorization, HR 5884
This legislation is identical to the bill transmitted to the Speaker of
the House of Representatives and the President of the Senate on
March 20, 1975. Therefore, we strongly recommend that it be signed
into law by the President.
Under the International Economic Policy Act, the Council advises the
President on international economic issues, provides a focal point for
coordinating the activities of the appropriate departments and agencies
of the United States for the purpose of achieving a consistent international
economic policy, makes recommendations to the President for programs
which promote consistency between international and domestic economic
policy, and drafts the annual International Economic Report of the President.
The Council is composed of key cabinet level and Executive Office officials,
including the Secretaries of State, Treasury, Defense, Agriculture,
Commerce, Labor, and Transportation; the Director of the Office of
Management and Budget; the Chairman of the Council of Economic Advisers;
the Special Representative for Trade Negotiations; the Assistant to the
President for Economic Affairs; and the Executive Director of the Council
on International Economic Policy. The Secretary of the Treasury is the
Chairman of the Council, and the Assistant to the President for Economic
Affairs is the Deputy Chairman.
- 2 -
HR 5884 consists of three sections:
Section 1 is an amendment to the International Economic Policy Act
which will permit CIEP to continue to appoint and compensate its
staff without regard to the provisions of law regulating the employment
and compensation of persons in the Government Service. Language to
that effect has been included in each act making appropriations for
CIEP operations since its statutory establishment. Because such
language is more appropriate in basic authorizing legislation and may
be subject to a "point of order" in annual appropriation bills, the
conference committee on CIEP's 1975 appropriation bill recommended
that the language no longer be carried in such bills.
From the start it has been recognized that CIEP is a small, temporary
agency that needs the administrative flexibility to adapt its organization
and staffing to meet rapidly changing problems on which it must advise
the President. The Council needs to be able to employ personnel
expeditiously from in or out of government and should avoid building
a permanent career structure. For those reasons, the exemption
from general laws on appointment and compensation were included
in the annual appropriation bills. This legislation simply moves the
relevant language from those bills to the basic authorizing act.
Section 2 of the legislation extends CIEP's basic authority from
June 30, 1977, to September 30, 1977, consistent with the change in
the fiscal years under the recently-enacted Congressional Budget Act
of 1974 (P.L. 93-344).
Section 3 of the legislation authorizes appropriations of $1, 657, 000 for
the fiscal year ending June 30, 1976, and $1, 670, 000 for the fiscal year
ending September 30, 1977. These amounts are consistent with the
President's 1976 Budget proposals.
UNITED
STATE
UNITED STATES CIVIL SERVICE COMMISSION
CIVIL SEWER
WASHINGTON, D.C. 20415
CHAIRMAN
August 5, 1975
Honorable James T. Lynn
Director, Office of Management and Budget
Washington, D.C. 20503
Attention: Assistant Director for
Legislative Reference
Dear Mr. Lynn:
This is in reply to your request for the views of the Civil Service
Commission on enrolled H.R. 5884, "To authorize appropriations for
carrying out the provisions of the International Economic Policy
Act of 1972, as amended, and for other purposes."
Section 1 is the only provision of this legislation of concern to
the Commission. It would permit the Council on International Economic
Policy to employ and compensate staff without regard to the laws
regulating employment and compensation in the Government service. It
further provides that no more than eight employees shall be compensated
above the rate for GS-15, and none of them will be compensated above
the rate for GS-18.
In a report of January 30, 1975, to OMB on an identical provision in
a draft bill, the Commission did not object to the exception from the
appointment and compensation laws. This was on the basis that the
Council is slated to go out of existence in 1977 and the fact that
the Council has been operating an excepted personnel system since
1972 under appropriation act authorizations. We also had no objection
to the proposed authority to compensate up to eight employees at
supergrade levels.
Therefore, insofar as the personnel provisions are concerned, we
recommend that the President sign enrolled H.R. 5884.
By direction of the Commission:
Sincerely yours,
Robert Chairman Hempton
THE GENERAL COUNSEL OF THE TREASURY
of
DEPARTMENT THE THE ASURI TRI.
WASHINGTON, D.C. 20220
1789
AUG 5 1975
Director, Office of Management and Budget
Executive Office of the President
Washington, D. C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Reference is made to your request for the views of this Depart-
ment on the enrolled enactment of H.R. 5884, "To authorize appro-
priations for carrying out the provisions of the International Economic
Policy Act of 1972, as amended, and for other purposes.'
The enrolled enactment would amend the International Economic
Policy Act of 1972 to (1) extend the life of the Act to September 30,
1977; (2) provide a limited exemption from the provisions of the
United States Code regulating the employment and compensation of
persons in the Government service for staff of the Council on Inter-
national Economic Policy; and (3) conform the 1977 fiscal year
description in the legislation to that required by the Congressional
Budget and Impoundment Control Act of 1974. (Public Law 93-344,
section 501).
The Department recommends that the enrolled enactment be approved
by the President.
Sincerely yours,
General Counsel
DEPARTMENT OF STATE
I
Washington, D.C. 20520
AUG 6 - 1975
Honorable James T. Lynn
Director Office of
Management and Budget
Washington, D.C.
Dear Mr. Lynn:
With regard to your request of August 1
concerning H.R. 5884, I can inform you that from
the foreign relations standpoint, the Department
of State has no objection to the approval of this
enactment.
Sincerely,
Robert Robert J. McCloskey Closing
Assistant Secretary
for Congressional Relations
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: August 7
Time: 500pm
Bill Seidman
oh
FOR ACTION:
Paul Leach th
cc (for information):
Jim Cavanaugh
Max Friedersdorf the
Jack Marsh
Ken Lazarus
NSC/S on
FROM THE STAFF SECRETARY
DUE: Date: August 8
Time: noon
SUBJECT:
H.R. 5884 - CIEP appropriations authorization, FY 76 and 77
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
AUG 7 REC'D
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: August 7
Time: 500pm
Bill Seidman
FOR ACTION:
CC (for information):
Paul Leach
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
NSC/S
FROM THE STAFF SECRETARY
DUE: Date: August 8
Time:
noon
SUBJECT:
H.R. 5884 - CIEP appropriations authorization, FY 76 and 77
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
---- Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
X
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
approval
this
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
James is.
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: August 7
Time: 500pm
Bill Seidman
FOR ACTION:
CC (for information):
Paul Leach
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
NSC/S
FROM THE STAFF SECRETARY
DUE: Date:
Time:
August 8
noon
SUBJECT:
H.R. 5884 - CIEP appropriations authorization, FY 76 and 77
ACTION REQUESTED:
- For Necessary Action
For Your Recommendations
-
Prepare Agenda and Brief
Drait Reply
For Your Comments
Draft Remarks
-
-X
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
8-7-75 OK PCL - -Call Judy
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
I. you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
Jason 11.
For the Prost dent
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: August 7
Time: 500pm
Bill Seidman
FOR ACTION:
CC (for information):
Paul Leach
Jim Cavanaugh
Max Friedersdorf
Jack Marsh
Ken Lazarus
NSC/S
FROM THE STAFF SECRETARY
DUE: Date:
Time:
August 8
noon
SUBJECT:
H.R. 5884 - CIEP appropriations authorization, FY 76 and 77
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
-
Prepare Agenda and Brief
Draft Reply
-X
For Your Comments
Draf. Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
No objection - -- Ken Lazarus 8/8/75
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
telephone the Staff Secretary immediately.
James its Company
EXECUTIVE OFFICE OF THE PRESIDENT
SERVICE
OFFICE OF MANAGEMENT AND BUDGET
SEALS
WASHINGTON, D.C. 20503
AUG 7 1975
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 5884 - Council on International
Economic Policy (CIEP) appropriations authorization,
fiscal years 1976 and 1977
Sponsor - Rep. Nix (D) Pennsylvania
Last Day for Action
August 13, 1975 - Wednesday
Purpose
Authorizes appropriations of $1,657,000 for the CIEP in
fiscal 1976 and $1,670,000 in fiscal 1977, extends the life
of the Council from June 30, 1977, to September 30, 1977,
and exempts the CIEP from the general laws regulating
Federal employment.
Agency Recommendations
Office of Management and Budget
Approval
Council on International Economic Policy
Approval
Department of the Treasury
Approval
Civil Service Commission
Approval
Department of State
No objection
Discussion
The enrolled bill is identical to a draft Administration
proposal transmitted to the Congress earlier this year.
It provides 2-year appropriations authority for the CIEP
consistent with the provisions of the Congressional Budget
and Impoundment Control Act of 1974 (P.L. 93-344) Amounts
authorized for appropriation are $1,657,000 for fiscal 1976
and $1,670,000 for fiscal 1977. The bill contemplates that
2
appropriations authorization for the Council during the
transition period between fiscal years 1976 and 1977
(July 1, 1976 -- September 30, 1976) will be provided in
general legislation the Administration has requested for
this purpose.
The bill also extends the life of the Council from June 30, 1977,
to September 30, 1977, thus conforming the termination of the
Council's authority to the new fiscal year established by
the 1974 Budget Act.
Finally, the enrolled bill amends the CIEP's basic authorizing
legislation to permit the Council to appoint and compensate
its staff without regard to the general laws governing
Federal employment. Recognizing the temporary nature of the
CIEP and its need for administrative flexibility to meet
rapidly changing problems on which it must advise the
President, Congress previously has included identical
exemptions from these laws in annual appropriation acts for
the Council. Last year, however, during consideration of the
CIEP's fiscal 1975 appropriation bill, the conference
committee recommended that such exemptions no longer be
carried in appropriations bills because such provisions are
more appropriate in basic authorizing legislation and may be
subject to a "point of order" in annual appropriations bills.
James m. Director Trey for
Legislative Reference
Enclosures
MEMORANDUM
5408
NATIONAL SECURITY COUNCIL
August 8, 1975
MEMORANDUM FOR:
JAMES CAVANAUGH
mut
FROM:
for
Jeanne W. Davis
SUBJECT:
H.R. 5884 - CIEP Appropriations
Authorization, FY 76 and 77
The NSC Staff concurs in the proposed Enrolled Bill H. R. 5884 -
CIEP appropriations authorization, FY 76 and 77.
THE WHITE HOUSE
WASHINGTON
August 8, 1975
MEMORANDUM FOR:
JIM CAVANAUGH
FROM:
MAX L. FRIEDERSDORF MC
SUBJECT:
H.R. 5884 - CIEP appropriations
authorization, FY 76 and 77
The Office of Legislative Affairs concurs with the agencies
that the
subject bill be signed.
Attachments
94TH CONGRESS
HOUSE OF REPRESENTATIVES
1st Session
an
REPORT
No. 94-219
AUTHORIZATION FOR COUNCIL ON INTERNATIONAL
ECONOMIC POLICY
MAY 15, 1975.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. Nix, from the Committee on International Relations,
submitted the following
REPORT
[To accompany H.R. 5884]
The Committee on International Relations, to whom was referred
the bill (H.R. 5884) to authorize appropriations for carrying out the
provisions of the International Economic Policy Act of 1972, as
amended, and for other purposes, having considered the same, report
favorably thereon without amendment and recommend that the bill
do pass.
PURPOSE
The purposes of H.R. 5884 are to authorize funds for the carrying
out of the provisions of the International Economic Policy Act of
1972, to amend section 208 of the Act in order to provide an exemption
from the provisions of the United States Code regulating the employ-
ment and compensation of persons in the Federal service, and to con-
form the 1977 fiscal year description in the legislation to that required
by the Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344, section 501).
COMMITTEE ACTION
Executive Communication 625 from the Acting Executive Director
of the Council on International Economic Policy, transmitting draft
legislation to authorize appropriations for carrying out the provisions
of the International Economic Policy Act of 1972, as amended, was
referred to the Committee on International Relations March 20, 1975.
On March 26, 1975, the Executive Communication was referred to the
Subcommittee on International Economic Policy for appropriate
action. On April 10, 1975, the bill H.R. 5884 was introduced (by
request) by the Chairman of the subcommittee, Hon. Robert N. C. Nix.
38-006
2
3
Mr. J. M. Dunn, Acting Executive Director of the Council on Inter-
The Subcommittee held a public hearing on the bill April 15, 1975.
The staff is composed of approximately 45 persons, consisting of
At national the Economic Policy, testified as to the operations of the
conclusion of the testimony, H.R. 5884 was considered agency. by the
clerical help and of economic, legal and international affairs experts.
action. Subcommittee and approved, without amendment, for full Committee
In order to meet from time to time specific expertise needs, personnel
are detailed from the Executive Branch to serve with the agency.
The Committee on International Relations met in open session to
The salaries of such persons are paid from the CIEP budget.
consider the bill on May 8, 1975, and unanimously ordered it favorably
The agency is divided into four areas of responsibility: Group I is
reported to the House.
responsible for development issues; Group II deals with financial
issues; Group III deals with industrial issues, raw materials, techn-
BACKGROUND
ology, nuclear energy, and trade; Group IV is responsible for domestic
inally The established by a Presidential Directive on January 10, 1971.
The Council on International Economic Policy (CIEP) was orig-
policy coordination.
COST ESTIMATE
Council was given statutory authorization in the International
Pursuant to clause 7 of Rule XIII of the House Rules, the Committee
Economic Policy Act of 1972, which received the President's signature
has examined the request submitted by the Administration to carry
on August 29, 1972 and is cited as Public Law 92-412. The is
out the purposes of the International Economic Policy Act of 1972,
end of fiscal year 1977.
a temporary one and will expire under the terms of the statute agency at the
as amended, and recommends the amounts requested by the Admin-
Under the International Economic Policy Act, the Council advises
istration of $1,657,000 in fiscal 1976 and $1,670,000 in fiscal 1977.
ties the President on international economic issues, coordinates the activi-
Since the Act shall expire at the conclusion of the 1977 fiscal year,
the Committee cannot predict whether or not additional authorizations
economic policy, and drafts the Annual International Economic Re-
of various departments and agencies as they relate to international
will be necessary.
the March, most 1975. The Council also prepares and publishes special report
port of the President to the Congress. It published its third in
STATEMENTS REQUIRED BY RULE XI(1) (3)
Materials" recent of which are the "Special Report on Critical reports,
Pursuant to the requirements of Rule XI (1) (3) of the Rules of the
and "U.S. Government Data Collection Activities Imported with
House of Representatives, the following statements are made:
Respect to Foreign Investment in the United States."
(A) Oversight findings and recommendation. During the hearing
by The Section Council 205 of is Public composed Law of 92-412: the following members as designated
on H.R. 5884, extensive oversight testimony was received on the struc-
1. The Secretary of State.
ture and operations of CIEP. No oversight findings and recommen-
dations are made at this time. Future hearings will be held on the
2. The Secretary of the Treasury.
3. The Secretary of Defense.
operations of the Council on International Economic Policy by the
Subcommittee on International Economic Policy of the Committee on
4. The Secretary of Agriculture.
International Relations.
5. The Secretary of Commerce.
6. The Secretary of Labor.
(B) Congressional Budget Act section 308 (a) requirement. This
7. The Secretary of Transportation.
measure provides for no new budget authority.
(C) Congressional Budget Office estimate and comparison. No esti-
9. The Chairman of the Council of Economic Advisors.
8. The Director of the Office of Management and Budget.
mate and comparison prepared by the Director of the Congressional
Budget Office under Section 403 of the Congressional Budget Act of
10. The Special Representative for Trade Negotiations.
1974 has been received by the Committee.
the has appointed as Deputy Chairman Mr. L. William Siedman, He
The President may appoint additional members of the Council.
(D) Committee on Government Operations summary. No oversight
findings and recommendations have been received which relate to this
Assistant to the President for Economic Affairs. The Hon. who is
measure from the Committee on Government Operations under clause
man the Council by the President.
Simon, of the Secretary of the Treasury, has been designated the William Chair-
2 (b) (2) of Rule X.
Congressional authorization. for the sake of uniformity in the implementation one of year the
This bill provides a two year authorization rather than a
INFLATIONARY IMPACT STATEMENT
The Budget and Impoundment Control Act of
This program is one which is devoted to the improvement and study
additional $57,000 cover anticipated personnel cost increases of year 1975 of
increased will costs for fiscal year 1976 over fiscal 1974.
of the International Economic Policy of the United States. There is
no specifically identifiable inflationary impact.
of the annual costs of $42,000 for travel, space rental and the $15,000 and
terminal year leave cover anticipated space rental costs and for fiscal
1977 will report. The additional increase of $13,000 printing
SECTION-BY-SECTION ANALYSIS
Title 5 of the United payments States for Code. department personnel as authorized increases under in
Section 1 of the bill provides an exemption from Civil Service stat-
utes and regulations. Identical language has been included in each act
H.R. 219
H.R. 219
4
5
making appropriations for CIEP operations. Such language is more
appropriate in authorizing legislation, and the conference committee
the Assistant to the President for Economic Affairs is the Deputy
Chairman.
on CIEP's fiscal year 1975 appropriation bill recommended that the
The enclosed draft bill consists of three sections.
language no longer be carried in appropriation bills.
The exemption is necessary because CIEP is a small, temporary
Section 1 is an amendment to the International Economic Policy
agency that requires administrative flexibility to adapt its organiza-
Act which will permit CIEP to continue to appoint and compensate
tion and staffing to meet rapidly changing problems. The Council must
its staff without regard to the provisions of law regulating the employ-
ment and compensation of persons in the Government Service. Lan-
be able to employ personnel expeditiously from in or out of govern-
guage to that effect has been included in each act making appropria-
ment and should avoid building a permanent career structure.
This amendment retains the numerical limitations on executive
tions for CIEP operations since its statutory establishment. Because
salary level positions (three) and on those compensated above the sal-
such language is more appropriate in basic authorizing legislation and
may be subject to a "point of order" in annual appropriation bills, the
ary level of GS-15 (eight).
Section 2 of the bill amends Section 209 of the Act. It strikes out
conference committee on CIEP's 1975 appropriation bill recommended
the words "June 30, 1977" and inserts in lieu thereof, "September 30,
that the language no longer be carried in such bills.
From the start it has been recognized that CIEP is a small, tem-
1977," which will be the close of the new fiscal year 1977 as desig-
porary agency that needs the administrative flexibility to adapt its or-
nated by Title III of the Congressional Budget and Impoundment
ganization and staffing to meet rapidly changing problems on which
Control Act of 1974. (This title provides that fiscal years will begin
it must advise the President. The Council needs to be able to employ
October 1, rather than July 1).
personnel expeditiously from in or out of government and should
Section 3 of the bill increases the FY 1975 authorization of $1,600,-
avoid building a permanent career structure. For those reasons, the ex-
000 to $1,657,000 for the fiscal year ending June 30, 1976 and $1,670,000
emption from general laws on appointment and compensation were in-
for the fiscal year ending September 30, 1977. The authorization would
cluded in annual appropriation bills. This amendment proposes simply
increase CIEP's budget by a total of $127,000 for the two fiscal years
to move the relevant language from those bills to the basic authorizing
1976 and 1977.
act. It continues current numerical limitations on executive salary
ADMINISTRATION POSITION
level positions and on those compensated above the salary level of
GS-15.
The Administration supports this legislation, as evidenced by testi-
mony and Executive Communication 625. The text of the Executive
Section 2 of the draft legislation extends CIEP's basic authority
communication from the Council on International Economic Policy
from June 30, 1977, to September 30, 1977, consistent with the change
follows:
in the fiscal years under the recently-enacted Congressional Budget
MARCH 20, 1975.
Act of 1974 (P.L. 93-344).
Hon. CARL ALBERT,
Section 3 of the draft bill authorizes appropriations of $1,657,000
The Speaker, U.S. House of Representatives,
for the fiscal year ending June 30, 1976, and $1,670,000 for the fiscal
Washington, D.C.
year ending September 30, 1977. These amounts are consistent with the
President's 1976 Budget proposals.
DEAR MR. SPEAKER: Enclosed for consideration by the Congress is
I am hopeful the Congress will be able to act expeditiously on this
proposed legislation regarding the Council on International Economic
draft legislation. The Office of Management and Budget has advised
Policy.
that enactment of this proposed legislation would be in accord with
Under the International Economic Policy Act, the Council advises
the program of the President.
the President on international economic issues, provides a focal point
Sincerely,
for coordinating the activities of the appropriate departments and
J. M. DUNN, Acting Executive Director.
agencies of the United States for the purpose of achieving a con-
sistent international economic policy, makes recommendations to the
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
President for programs which promote consistency between interna-
tional and domestic economic policy, and draft the annual Interna-
In compliance with clause 3 of Rule XIII of the Rules of the House
tional Economic Report of the President.
of Representatives, changes in existing law made by the bill, as re-
The Council is composed of key cabinet level and Executive Office
ported, are shown as follows (existing law proposed to be omitted is
officials, including the Secretaries of State, Treasury, Defense, Agri-
enclosed in black brackets, new matter is printed in italics, existing
culture, Commerce, Labor, and Transportation; the Director of the
law in which no change is proposed is shown in roman)
Office of Management and Budget; the Chairman of the Council of
Economic Advisers; the Special Representative for Trade Negotia-
INTERNATIONAL ECONOMIC POLICY ACT OF 1972
tions; the Assistant to the President for Economic Affairs; and the
Executive Director of the Council on International Economic Policy.
The Secretary of the Treasury is the Chairman of the Council, and
H.R. 219
H.R. 219
6
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
the Executive Schedule (5 U.S.C. 5313). He shall keep the Committee
on Banking, Housing and Urban Affairs of the Senate, the Commit-
tee 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 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,
United States Code, governing appointments in the competitive serv-
ice, and shall be paid in accordance with the provisions of chapter 51
and subchapter III of chapter 53 of such title relating to classification
and General Schedule pay rates.] The staff of the Council shall be
appointed and compensated without regard to the provisions of law
regulating the employment and compensation of persons in the Govern-
ment service: Provided, That, except for the officers provided for in
paragraph (2) and for not to exceed eight 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, 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
Executive Salary Schedule, and appoint and fix the compensation of
two officers at rates of basic compensation not to exceed the rate pro-
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 service to the same extent as is
authorized by section 3109 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 Fed-
eral agency is authorized to detail, on a reimbursable basis, any of its
personnel to the Council to assist it in carrying out its duties under this
title.
SEC. 209. The provisions of this title shall expire on [June 30, 1977]
September 30, 1977; 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 is authorized to be appropriated $1,800,000 for the fiscal year
ending June 30, 1975.]
Sec. 210. For the purpose of carrying out the provisions of this title,
there are authorized to be appropriated $1,657,000 for fiscal year end-
ing June 30, 1976, and $1,670,000 for the fiscal year ending Septem-
ber 30, 1977.
H.R. 219
94TH CONGRESS
1st Session
}
SENATE
{
REPORT
No. 94-355
INTERNATIONAL ECONOMIC POLICY
ACT OF 1972 AUTHORIZATIONS
REPORT
OF THE
COMMITTEE ON BANKING, HOUSING
AND URBAN AFFAIRS
UNITED STATES SENATE
TO ACCOMPANY
H.R. 5884
JULY 31, 1975.-Ordered to be printed
U.S. GOVERNMENT PRINTING OFFICE
57-010
WASHINGTON : 1975
94TH CONGRESS
-
SENATE
REPORT
1st Session
No. 94-355
INTERNATIONAL ECONOMIC POLICY ACT OF 1972
SNOLLVZIHOHLIV
JULY 31, 1975.-Ordered to be printed
Mr. STEVENSON, from the Committee on Banking, Housing and
Urban Affairs, submitted the following
REPORT
[To accompany H.R. 5884]
The Committee on Banking, Housing and Urban Affairs, to which
were referred S. 1262 and H.R. 5884, identical bills to authorize
appropriations for carrying out the provisions of the International
Economic Policy Act of 1972, as amended, and for other purposes,
having considered the same, reports favorably on H.R. 5884 without
amendment and recommends that the same do pass.
HISTORY OF THE BILL
S. 1262 was introduced in the Senate at the request of the adminis-
tration by Senators Proxmire, Stevenson, and Tower on March 20, 1975
and subsequently referred to the committee. The International Finance
Subcommittee held hearings on the bill on June 16 and July 18, 1975
and thereafter agreed to report the bill favorably without amendment
to the full committee for final action.
In an open executive session on July 29, 1975 the committee met to
consider the legislation and agreed to report without amendment the
companion measure, H.R. 5884, which had passed the House on
July 9, 1975 and was then pending before the committee.
PURPOSE OF THE BILL
The purpose of the bill is to authorize appropriations for the Coun-
cil on International Economic Policy ("CIEP") for fiscal years 1976
and 1977; to extend CIEP's underlying authority to September 30,
1977 in conformity with the new fiscal year arrangements prescribed
by the Congressional Budget Act of 1974; to provide an exemption
for CIEP from the provisions of the United States Code regulating
the employment and compensation of persons in the Federal service;
and to allow compensation in excess of the GS-15 level but not in
excess of the GS-18 level for up to eight CIEP employees.
57-010
2
3
NEED FOR THE LEGISLATION
"consider policies and programs for coordinating the activities of
all the departments and agencies of the United States for the purpose
This legislation is needed in order to permit CIEP's continued op-
of accomplishing a more consistent international economic policy, and
eration. Its current funding authorization expired on June 30, 1975,
make recommendations to the President in connection therewith;"
and temporary funding is now being provided pursuant to a continu-
"continually assess the progress and effectiveness of Federal efforts
ing resolution, Public Law 94-41.
to carry out a consistent international economic policy and
CIEP was'established by Executive order of the President in Jan-
"make recommendations to the President for domestic and foreign
uary of 1971 for the purpose f-achieving greater executive, branch
programs which will promote a more consistent international economic
coordination in the development and implementation of international
policy on the part of the United States and private industry."
economic policy. In August of 1972, Congress gave CIEP statutory
The International Economic Report, which CIEP helps prepare, is
base through June of 1973. In October of 1973, Congress extended
required by the law to contain
CIEP's life to June 30, 1977.
(1) "information and statistics describing characteristics of inter-
CIEP is composed of the following plus such additional members
national economic activity and identifying significant current and
as the President may designate:
foreseeable trends and developments;"
1. Secretary of Treasury (current Chairman by appointment
(2) "a review of the international economic program of the Fed-
of President).
eral Government and a review of domestic and foreign economic con-
2. Secretary of State.
ditions and other significant matters affecting the balance of interna-
3. Secretary of Defense.
tional payments;"
4. Secretary of Agriculture.
(3) "a.review of the foreign investments of United States-based
5. Secretary of Commerce.
trans-national firms, and the level of foreign wage rates on the level,
6. Secretary of Labor.
stability, and financial reward for domestic employment;"
7. Secretary of Transportation.
(4) "a comparative description and analysis of the following sub-
8. Director of OMB.
ject matter with respect to the United States, the European Com-
9. Chairman of the Council of Economic Advisors.
munity and principal countries within the European Community,
10. Special Representative for Trade Negotiations.
Japan, and whenever applicable, the Union of Soviet Socialist
11. Assistant to the President for Economic Affairs (Member
Republics:
and Current Deputy Chairman by designation of the President).
(a) research and development expenditures, and productivity
The President designates the Chairman from among the members
and technological trends in major industrial and agricultural
of the Council. He appoints the Executive Director by and with the
sectors;
advice and consent of the Senate.
(b) investment patterns in new plant and equipment;
Under the law, CIEP has a mandate to-
(c) industrial manpower and training practices;
provide "a clear top level focus for the full range of international
(d) tax incentives and other governmental financial assistance;
economic issues";
(e) export promotion practices;
"deal with international economic policies including trade, invest-
(f) share of the export market, by area and industrial and
ment, balance of payments, and finance as a coherent whole;"
agricultural sectors;
provide "consistency between domestic and foreign economic
(g) environmental practices;
policy;"
(h) antitrust practices; and
provide "close coordination with basic foreign policy objectives;"
(i) long-range governmental economic planning programs,
"investigate problems with respect to the coordination, implementa-
targets, and objectives;"
tion, and long-range development of international economic policy;
(5) "& review of the relationship between the U.S. Government
and
and American private business with respect to "the matters listed
"make appropriate findings and recommendations for the purpose
immediately above;" and
of assisting in the development of a rational and orderly international
(6) "a program for carrying out the policy objectives of [the act,]
economic policy within the United States."
together with such recommendations for legislation as [the President]
In addition, CIEP is required to
may deem necessary or desirable."
"assist and advise the President in the preparation of the Interna-
This is a broad mandate. It is an outgrowth of the recognized need
tional Economic Report;"
for a comprehensive approach to international economic problems and
"review the activities and policies of the U.S. Government
and,
for effective resolution of policy disputes within the executive branch
for the purpose of making recommendations to the President
in the international economic arena.
consider with some degree of specificity the substance and scope of the
There is criticism, however, that CIEP has not fulfilled its intended
international economic policy of the United States;"
role; that coordination of U.S. international economic policy is seri-
"collect, analyze, and evaluate authoritative information
con-
ously deficient; that disputes between Treasury, State, Agriculture,
cerning international economic matters;"
Commerce, and other Government agencies are not effectively refereed;
S.R. 355
S.R. 355
4
is
that the decisions are often made without adequate consultation
interested agencies of Government; that as a result there-is among incon-
sistency, indecisiveness, and a lack of U.S. initiative in international
In addition, EPB is directed to " provide advice to the President
economic policy; that America's vast economic resources are not
on all aspects of national and international economic policy,
U.S. leadership; and that to America's allies, to the world at large; and
tively mobilized; that major issues go unresolved for lack of effective effec-
oversee the formulation, coordination, and implementation of all eco-
nomic policy of the United States, and
serve
as
the
focal
point
businessmen attempting to make long-range plans, the United to
for economic policy decision-making." (Emphasis supplied). The
States presents a confused image.
executive committee of EPB meets daily.
hearings suggested that CIEP should be abolished altogether. They
Some of the witnesses at the International Finance Subcommittee's
The following chart (which includes the National Advisory Council
on International Financial and Monetary Policy, ["NAC"] a body
it sessions, that in 1974 as a whole, it met on only six occasions, and that
point out that from July 1974 to March of 1975, CIEP held no formal
established by Executive order in 1966 to coordinate, inter alia, the
policies of government agencies engaged in foreign financial and mon-
has been without a permanent executive director for the last 6
etary transaction), shows the relationship among existing executive
nization months. The recently released report of the Commission on the Orga-
branch interdepartmental coordinating agencies in the international
economic arena.
mends so-called Murphy Commission, takes the same position and
of the Government for the Conduct of Foreign Policy, the
EXECUTIVE BRANCH INTERNATIONAL ECONOMIC POLICY COORDINATING GROUPS
the Domestic Council.
transfer of CIEP staff to the National Security Council recom- and
EPB Executive
CIEP
EPB
Committee
NAC
head of any executive department from acting as its chairman and
Others recommended that CIEP be restructured, by prohibiting the
Chairman
Treasury I
Treasury 1
Treasury 1
Treasury.1
making the President its chairman instead. (This was the situation
Deputy Chairman
Asst. to Pres. for
None
None
Asst. to Pres. for
Econ. Affairs.
Econ. Affairs.1
prior to October of 1974 when Public Law 93-121 removed the
Executive Director
Apptd. by Pres. subject
Asst. to Pres. for
Asst. to Pres. for
None.
tory requirement that the President be CIEP's chairman.) It is statu-
to Conf. by Senate.
Econ. Affairs.1
Econ. Affairs.1
Membership
Treasury
Treasury
Treasury
Treasury.
realistic, it is argued, to expect department heads to submit their views un-
Asst. to Pres. for
Asst. to Pres. for
Asst. to Pres. for
Asst. to Pres. for
Ecan. Aftairs.¹
Econ. Affairs.¹
Econ. Affairs.¹
Econ. Affairs.¹
to a body chairmed by the head of another department with its
State
State 1
State
State.1
mended possibly conflicting, interests and perspectives. Still others own,
Agriculture
Agriculture 1
Commerce
Commerce
Commerce.
the creation of a new Department of International Trade recom-
Labor 1
Labor 1,
Transportation 1,
Transportation
to Commerce, not necessarily in lieu of, but perhaps in addition to, CIEP and
OMB
OMB
OMB
Chrm., CEA 1
Chrm., CEA 1
Chrm., CEA
pursue U.S. foreign economic and commercial objectives.
Exec. Dir., CIEP
Exec. Dir., CIEP
Exec. Dir., CIEP
force a particular policy coordinating structure on the President
Throughout the hearings, however, the futility of attempting to
Defense
STR
HEW
HUD
and generally conceded. Every President has his own style of operation was
Interior
will ultimately choose and utilize the structure which best suits
Chrm., Fed. Res. Bd.
Pres. and Chrm., Ex.-
his own personal needs.
Im. Bank.
both Board in ("EPB") in September of 1974. EPB largely overlaps CIEP
This is illustrated by the President's creation of the Economic Policy
1 Common membership.
State added as of June 16, 1975.
Treasury; its Executive Director, the Assistant to the President for
structure and mission. Its chairman is the Secretary of the
It is contended, however, that despite the apparent overlap, CIEP,
of Economic Affairs, is Deputy Chairman of CIEP: and all the members
nonetheless, serves a useful separate function. Secretary of the Treas-
CIEP, save the Secretary of Defense and the Special Trade Repre-
ury Simon, in testimony before the International Finance Subcommit-
sentative, are members of EPB.
tee, pointed out that CIEP's responsibility is confined to international
ant Secretary of the Treasury and whose Executive Director is the Assist- the
EPB also has an executive committee whose Chairman, again, is
economic policy whereas EPB has responsibility for both international
and domestic policy. The Secretary, who is chairman of both EPB
the the Secretary of the Treasury, the Secretary of State, the Assistant of
to the President for Economic Affairs. Its membership consists
and CIEP, indicated that CIEP is called upon by EPB, contributes to
EPB's work, and provides EPB with useful staff support.
President for Economic Affairs, the Director of OMB, the Chair- to
Since EPB has neither an independent budget nor an independent
to attend. CIEP. The Chairman of the Federal Reserve Board is also invited
man of of the Council of Economic Advisors, and the Executive Director
staff, in practice it relies on CIEP for staff support. In essence, then,
funding for CIEP is also funding for staff to serve EPB, the Presi-
dent's chosen instrument for coordinating both domestic and inter-
ters EPB acts as "the principal spokesman of the executive branch mat-
Under the Executive order establishing EPB, the Chairman of
national economic policy.
In the committee's view, no purpose would be served by depriving
Executive of economic policy.' In addition, under that Executive order, on the
the President of the staff resources needed for effective coordination.
Director of EPB is responsible for "coordinating the im-
The need for enhanced coordination efforts is greater than ever before.
plementation of economic policy and providing liason with the Pres--
The committee recommends passage of H.R. 5884 in recognition of that
idential staff and with other governmental authorities."
need and with the hope that CIEP will contribute to its fulfillment.
S.R. 355
S.R. 355
6
Already, there are signs of improvement. CIEP has been meeting
more frequently. At the hearings, the State Department representative
indicated that State would hereafter play a greater role in CIEP's
deliberations and submit its views to CIEP for interdepartmental co-
ordination to a greater extent than in the past. And Secretary of the
Treasury Simon has indicated an intent to make greater use of CIEP.
The committee has every expectation of further improvement in the
future. It sees evidence of an appreciation by the Executive Branch of
the need for better international economic-policy coordination and an
enhanced role for CIEP. In this regard, appointment of a permanent
executive director for CIEP would help. It is in anticipation of earn-
est efforts to achieve a comprehensive and coordinated approach to
international economic policy that the committee recommends passage
of H.R. 5884.
EXPLANATION OF THE BILL
Section 1 of the bill would provide an exemption for CIEP from
the provisions of the United States Code regulating the employment
and compensation of persons in the Federal service and allow compen-
sation in excess of the GS-15 level, but not in excess of the GS-18 level,
for up to eight CIEP employees.
The purpose of these provisions is to give CIEP flexibility in attract-
ing and allocating personnel to meet rapidly the changing circum-
stances inherent in any coordinating function. Authority for compen-
sation at super-grade levels is necessary because all existing super-
grade positions in the executive branch have been allocated elsewhere.
In the past, both provisions have been included in CIEP's appro-
priations legislation, but the Appropriations Committees have recom-
mended that the matter be handled by the authorizing committees.
Section 2 of the bill would extend CIEP's underlying authority to
September 30, 1977 in conformity with the new fiscal year arrange-
ments prescribed by the Congressional Budget Act of 1974.
Section 3 of the bill would authorize $1.650 million for CIEP for
fiscal 1976 and $1.670 million for fiscal 1977. Last year, Congress au--
thorized $1.8 million-and appropriated $1.6 million-for fiscal 1975.
The authorization on an annual basis is, therefore, down from what
Congress authorized-and only slightly up from what it appro-
priated-for fiscal 1975.
Such funds would permit a total permanent staff (excluding per-
sonnel detailed from other agencies) of 30, down from 31 for fiscal
1975.
FISCAL IMPACT STATEMENT
In accordance with section 252 (a) of the Legislative Reorganization'
Act of 1970, the committee provides the following estimate of the
maximum cost of this measure:
Fiscal year 1976
$1.650 million
Fiscal year 1977
$1.670 million
CHANGES IN EXISTING LAW
In the opinion of the Committee, it is necessary to dispense with the
requirements of subsection'4 of Rule XXIX of the Standing Rules of
the Senate in order to expedite the business of the Senate.
S.R. 355
H. R. 5884
Ainety-fourth Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday, the fourteenth day of January,
one thousand nine hundred and seventy-five
An Act
To authorize appropriations for carrying out the provisions of the International
Economic Policy Act of 1972, as amended, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That section 208 of
the International Economic Policy Act of 1972 is amended by striking
out the second sentence of paragraph (b) (1) and inserting in lieu
thereof the following: "The staff of the Council 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 para-
graph (2) and for not to exceed eight persons who may receive com-
pensation 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."
SEC. 2. Section 209 of the International Economic Policy Act of 1972,
as amended, is further amended by striking out "June 30, 1977" and
inserting in lieu thereof "September 30, 1977".
SEC. 3. Section 210 of the International Economic Policy Act of
1972, as amended, is further amended by striking out said section and
inserting in lieu thereof the following:
"Sec. 210. For the purpose of carrying out the provisions of this
title, there are authorized to be appropriated $1,657,000 for fiscal year
ending June 30, 1976, and $1,670,000 for the fiscal year ending
September 30, 1977.".
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
August 1, 1975
Dear Mr. Director:
The following bills were received at the White
House on August lst:
H.R. 2559
H.R. 5884
H.R. 8564
H.R. 8597
.V
H.R. 8714
Please let the President have reports and
recommendations as to the approval of these bills
as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable James T. Lynn
Director
Office of Management and Budget
Washington, D. C.