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COMMITTEE ON APPROPRIATIONS so o'

GEORGE H. MAHON, Texas, Chairman

JAMIE L. WHITTEN, Mississippi
ROBERT L. F. SIKES, Florida
EDWARD P. BOLAND, Massachusetts
WILLIAM H. NATCHER, Kentucky
DANIEL J. FLOOD, Pennsylvania
TOM STEED, Oklahoma
GEORGE E. SHIPLEY, Illinois
JOHN M. SLACK, West Virginia
JOHN J. FLYNT, JR., Georgia
NEAL SMITH, Iowa
ROBERT N. GIAIMO, Connecticut
JOSEPH P. ADDABBO, New York
JOHN J. McFALL, California
EDWARD J. PATTEN, New Jersey
CLARENCE D. LONG, Maryland
SIDNEY R. YATES, Illinois
FRANK E. EVANS, Colorado
DAVID R. OBEY, Wisconsin
EDWARD R. ROYBAL, California
LOUIS STOKES, Ohio
GUNN McKAY, Utah
TOM BEVILL, Alabama
BILL CHAPPELL, Florida
BILL D. BURLISON, Missouri
BILL ALEXANDER, Arkansas
YVONNE BRATHWAITE BURKE,
California
JOHN P. MURTHA, Pennsylvania
BOB TRAXLER, Michigan
ROBERT P. DUNCAN, Oregon
JOSEPH D. EARLY, Massachusetts
MAX BAUCUS, Montana
CHARLES WILSON, Texas

LINDY (MRS. HALE) BOGGS, Louisiana

ADAM BENJAMIN, JR., Indiana NORMAN D. DICKS, Washington MATTHEW F. McHUGH, New York

ELFORD A. CEDERBERG, Michigan
ROBERT H. MICHEL, Illinois
SILVIO O. CONTE, Massachusetts
JOSEPH M. McDADE, Pennsylvania
MARK ANDREWS, North Dakota
JACK EDWARDS, Alabama
ROBERT C. McEWEN, New York
JOHN T. MYERS, Indiana
J. KENNETH ROBINSON, Virginia
CLARENCE E. MILLER, Ohio
LAWRENCE COUGHLIN, Pennsylvania
C. W. BILL YOUNG, Florida
JACK F. KEMP, New York
WILLIAM L. ARMSTRONG, Colorado
RALPH. S. REGULA, Ohio
CLAIR W. BURGENER, California
GEORGE. M. O’BRIEN, Illinois
VIRGINIA SMITH, Nebraska

KEITH F. MAINLAND, Olerk and Staff Director

(II)

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

NATIONAL BROADCASTING

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:]

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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."
. "Assess the quality, effectiveness and professional integrity of their broadcasting within

the context of the broad foreign policy objectives of the United States."
"Encourage the most efficient use of available resources."
"Receive donations, bequests, gifts and other forms of contributions" in the U.S. and abroad.

"Procure supplies, services and other personal property, including specialized electronic equipment."
." Report annually to the President and Congress."

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
RFE/RL, Inc. is a non-profit corporation, chartered in the state of Delaware, with a board of directors of
22 private citizens. The chairman of the board of directors is John S. Hayes, former U.S. Ambassador to
Switzerland. Corporate offices are located at 1201 Connecticut Avenue, N. W., Washington, D. C.

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

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