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DEPARTMENTS OF STATE, JUSTICE, AND COMMERCE,
COMMITTEE ON APPROPRIATIONS so o'
GEORGE H. MAHON, Texas, Chairman
JAMIE L. WHITTEN, Mississippi
LINDY (MRS. HALE) BOGGS, Louisiana
ADAM BENJAMIN, JR., Indiana NORMAN D. DICKS, Washington MATTHEW F. McHUGH, New York
ELFORD A. CEDERBERG, Michigan
KEITH F. MAINLAND, Olerk and Staff Director
DEPARTMENTS OF STATE. JISTICE, AND COMMERCE,
THE JUDICIARY, AND RELATED AGENCIES APPROPRIATIONS FOR 1979
FRIDAY, APRIL 7, 1978 BOARD FOR INTERNATIONAL BROADCASTING
GRANTS AND EXPENSES
WITNESSES DR. JOHN AUSTIN GRONOUSKI, CEAIRYAN, BOARD FOR INTERNA
TIONAL BROADCASTING THOMAS HENRY QUINN, XEYBER, BOARD FOR INTERNATIONAL
BBOADCASTING WALTER B. ROBERTS, EXECUTIVE DIRECTOR, BOARD FOR INTER
NATIONAL BROADCASTING ALEXANDER BUCHAN, EXECUTIVE VICE PRESIDENT, RADIO FREE
EUROPE/RADIO LIBERTY, INC., AND EX OFFICIO MEMBER,
BOARD FOR INTERNATIONAL BROADCASTING ARTHUR DAVID LEVIN, BUDGET AND ADMINISTRATIVE OFFICER,
BOARD FOR INTERNATIONAL BROADCASTING MCHAEL R. MARCHETTI, TREASURER AND COMPTROLLER, RADIO
FREE EUROPE/RADIO LIBERTY, INC. ANATOLE SHUB, PROGRAM OFFICER, BOARD FOR INTERNATIONAL
BROADCASTING GEORGE JACOBS, DIRECTOR OF ENGINEERING, BOARD FOR INTER
Mr. SLACK. The committee will please come to order.
The item to which we shall direct our attention this morning is entitled, “Board for International Broadcasting, Grants and Expenses". This item is to be found on page 126 of the committee print and in a separate set of justifications, which we shall insert at this point in the record. [The justification materials follow:]
The supplemental appropriation request for FY 78 and the appropriation request for FY 79 are to provide for the continued oversight activities of the Board for International Broadcasting; for its grants to Radio Free Europe/ Radio Liberty (RFE/RL, Inc.) for broadcasts to Eastern Europe and the Soviet Union; and for implementation of the second phase of the President's program for technical modernization of U.S. international broadcast facilities. (Under this program, seven 250-kilowatt transmitters are to be purchased in FY 79 on behalf of the U.S. Government by the B.I.B., and installed with antennas and related equipment by RFE/RL, Inc.)
The major cause of the FY 78 supplemental request and the increased grant level for FY 79 has been the devaluation of the dollar in relation to the West German mark; 76 percent of RFE/RL operating expenditures are in marks, and another 10 percent in other European currencies. The rapid appreciation of the mark in the first quarter of FY 78 increased RFE/RL currency requirements by $6,008,000 over the original FY 78 appropriation-i.e., by $4,008,000 over and above the $2,000,000 currency devaluation reserve fund provided in the FY 78 legislation. Moreover, the devaluation alone (from DM 2.44 to DM 2.1075 for one dollar) has compelled a rise of more than $7,000,000 in FY 79 operational requirements over the original FY 78 appropriation level. In addition to devaluation and the transmitter modernization program ($9,723,000), cost-of-living increases, higher power, pension and administrative costs, and program improvements emphasizing strengthened American supervision account for the greater part of the remaining increase.
Board for International Broadcasting The Board for International Broadcasting, established by P.L. 93-129 (Oct. 19, 1973), consists of five members appointed by the President by and with the advice of the Senate, and -- under existing law -- the chief operating executive of RFE/RL as an ex officio member. The proposed amendment would substitute the chairman of the RFE/RL board of directors as the ex officio member, to facilitate closer coordination between the Federal and corporate boards. The B.I.B. is authorized to:
· "Make grants to RFE/RL, Inc."
the context of the broad foreign policy objectives of the United States."
"Procure supplies, services and other personal property, including specialized electronic equipment."
The Board's Fourth Annual Report, submitted January 31, 1978, reviewed its own activities and evaluated the mission and operations of RFE/RL for FY 1977. In addition, the independent public accounting firm of Arthur Andersen & Co., which (pursuant to a recommendation of the Comptroller General) is responsible to the Board, has audited the finances of RFE/RL, Inc. for FY 1977; its report to the Board has been separately transmitted to the authorizing and appropriations committees of the Congress.
Radio Free Europe/Radio Liberty
Under by-laws revised in October 1977, the Chairman of the Board for International Broadcasting is an ex officio member of the board of directors of RFE/RL, Inc. and a voting member of its nominating committee, which recommends appointment of new directors and corporate officers. The corporate charter provides that