the Planning Director was reorganized and is now comprised of the Statistical Surveys and Reports Section and the Sponsored Surveys and Studies Section.

The Division of Graduate Education in Science reporting to the Associate Director (Education) was reorganized and now consists of the following components: Advanced science education program, faculty and postdoctoral fellowships program, graduate fellowships and traineeships programs, and senior fellowships program. The position of Deputy Associate Director (Education) was established in the office of the Associate Director (Education).

The position of Associate Director (Institutional Relations) was established. A Deputy Associate Director (Institutional Relations) position was also established. The Associate Director (Institutional Relations) is responsible for those activities of the Foundation which are directed principally toward maintaining and improving quality of institutional capabilities for science. Among such activities are the operation of the programs which were encompassed within the Division of Institutional Programs, including those dealing with institutional grants for science, graduate science facilities grants, and university science development grants (formerly known as science development grants). The responsibility for operational management of the departmental science development program was also assigned to the Associate Director (Institutional Relations). In addition, that portion of the graduate education development program dealing with substantial development activities at institutions already operating at the graduate level was incorporated into the departmental science development program. Other aspects of the graduate education development program will continue to be handled under the advanced science education program in the Division of Graduate Education under the purview of the Associate Director (Education). Other activities of the Foundation directed toward the institution rather than the individual investigator will be assigned, as appropriate, to the Associate Director (Institutional Relations).

Full-time staff increased from 910 to 912 during the calendar year; part time and WAE decreased from 34 to 29; paid professional consultants decreased from 570 to 548; and consultants serving without compensation decreased from 75 to 32. Total paid employment decreased from 1,514 to 1,489 for the calendar year.

SECURITIES AND EXCHANGE COMMISSION

In April 1966, the staff and functions of the Branch of Market Analysis of the Division of Trading and Markets were transferred to the Office of Policy Research, to be consolidated with the Commission's economic and statistical studies and the compilation of data on program activities. At the same time, the staff and functions of the Chief Counsel's Office in the Office of Policy Research were transferred to the Office of Regulation in the Division of Trading and Markets, to assist directly in that Division's responsibilities for the regulation of the securities market. In addition, two Associate Directors were appointed for the Division of Trading and Markets, one to be responsible for markets and regulation and the other for enforcement.

In July 1966, a number of organizational changes were effected in the Division of Trading and Markets. The Office of Criminal Reference and the Office of Proceedings, which performed similar functions, were consolidated; the Branch of Distribution and Stabilization was abolished; and the three Branches of Enforcement were consolidated into two branches.

In December 1966, the Commission discontinued its branch office in St. Paul, Minn. The investigative work in the St. Paul-Minneapolis area was taken over by the Chicago regional office. It is expected that this change will increase the effectiveness of the Commission's work in that area. The elimination of three positions and related expenses will result in an annual savings of about $40,000, which will be applied to higher priority activities.

SMITHSONIAN INSTITUTION

There was an increase of 109 employees during the calendar year 1966. A sizable percentage of this increase is reflected in the number of employees assigned to the services divisions which provide administrative and technical staff support to the bureaus of the Smithsonian in their various areas of responsibility. Other increases were necessary to staff the expanding research programs of the Museum of Natural History and the Museum of History and Technology. Separate employment figures for the Museum of Natural History and the Museum of History and Technology were submitted for inclusion on the chart. This change is most appropriate and necessary. While these two major museums comprise the U.S. National Museum they are also separate and distinct bureaus of the Smithsonian Institution. As of April 18, 1966, the Canal Zone Biological Area was renamed the Smithsonian Tropical Research Institute. This change was instituted to recognize the Bureau's expanding research programs in the New World tropics.

The National Air Museum was renamed the National Air and Space Museum pursuant to the provisions of Public Law 89-509, dated July 19, 1966, and to reflect properly our unique contributions to space history and technology.

SUBVERSIVE ACTIVITIES CONTROL BOARD

On June 30, 1966, the Board completed a reduction-in-force program necessitated by reduced workload. This came about by reason of a decision of the Supreme Court holding that the statutory requirement for members of the Communist Party to register violates the members' fifth amendment privilege against self-incrimination. The enactment of pending legislation to correct this constitutional defect in that part of the statute will require refilling certain positions.

U.S. INFORMATION AGENCY

During calendar year 1966, the basic organization of the Agency remained unchanged. However, within the overall organizational framework there were some changes which are outlined below.

Effective July 1, 1966, the Agency's Research and Reference Service was abolished with the research function transferred to the Office of

Policy which became the Office of Policy and Research. The reference function (the Agency library) was transferred to the Office of Administration, where it was established, along with a new information systems staff and an Agency historian, in the newly created Information Resources Division.

Effective July 1, 1966, the Information Center Service assumed responsibility for psychologically oriented exhibits at international fairs and exhibitions, and 48 positions were transferred from the Department of Commerce to USIA to carry out these special international exhibitions. In the past, the responsibility was delegated to, and funds were allocated by, USIA to the Department of Commerce for these activities.

On August 9, 1966, the program analysis staff, Office of the Director, which was established in 1965, was transferred to the Office of Policy and Research merged with the Research Service.

USIS posts that have been operating at the following locations were closed: Porto Novo, Dahomey; Baida, Libya; Marrakech, Morocco; Taiz, Yemen; Santiago de los Caballeros, Dominican Republic; and Hue, South Vietnam; and Binational Centers in Villa Dolores, Argentina; Leon, Nicaragua; and Barbacena, Ponta Grossa, and Resende, Brazil. The positions were either utilized for priority needs within the geographic areas or abolished.

USIS posts were opened in Sanaa, Yemen; Marseilles, France; Nakhon Si Thammarat, and Yala, Thailand; Sam Thong, Laos; and Da Nang, South Vietnam; and Binational Centers were opened in Comodora Rivadavia, Argentina; Bluemenau, Brazil; and Ica, Peru. A Voice of America monitoring office was established in Beirut, Lebanon, and VOA correspondent staffs were established in Lima, Peru, and Tokyo, Japan. În addition, USIS posts in Djakarta and Surabaya, Indonesia, and a reading room in Medan, Indonesia, were reestablished and reading rooms in Porto Novo, Dahomey; Baida, Libya; and Marrakech, Morocco, remained open when USÏS branch post operations ceased.

VETERANS' ADMINISTRATION

During 1966 a number of major organizational changes and functional realinements occurred in the VA.

Among the more significant changes was the consolidation under the Assistant Administrator for Personnel of all the personnel functions formerly carried out by the Department of Medicine and Surgery and Department of Veterans Benefits. Under the new organization the Assistant Administrator for Personnel is responsible directly to the Administrator. The position of Executive Assistant was changed to Deputy Assistant Administrator for Personnel and new Executive Assistant, Assistant for Staffing and Development, and Assistant for Employee-Management Relations and Classifications positions were

created.

The internal organization of the Office of Personnel was realined to most effectively accommodate the consolidation of all staff-type personnel activities formerly performed at both staff and department levels. These functions are now distributed to a management and

systems service; an evaluation service; a training and development service; a recruitment and placement service; an employee-management relations service; a classification and position management service; a salary and wage service; and a central office personnel service. An equally significant realinement of functions occurred with the consolidation in the Office of the Controller of the financial management, reporting, and major statistical activities formerly conducted by the departments. The departments, however, will continue to carry out the functions relating to budget formulation and execution. Also, in connection with the consolidation of the financial activities, was the transfer of the activities of the finance service, formerly assigned to the administrative services, to the Office of the Controller. The component services of the Office of the Controller, as reorganized, are the budget service, finance service, and the reports and statistics service. The former Office of the Assistant Administrator for Management and Evaluation was abolished, and a new Office of Management Engineering and Evaluation under an Assistant Administrator, has been established, reporting to the Associate Deputy Administrator. The principal organizational elements of this new office are the management engineering service, the internal audit service and the management services staff. The primary function of this new office is to provide dynamic staff leadership for the application of the most advanced management techniques within the agency.

The emergency planning function, which was formerly in the Office of the Assistant Administrator for Management and Evaluation, has been placed under the Assistant Deputy Administrator.

There has been established a new investigation and security service, reporting directly to the Administrator. Included in the functions of this Service are the investigation and resolution of discrimination complaints.

Recent changes in the Board of Veterans Appeals resulted in the establishment of a new position of Deputy Vice Chairman and the abolishment of the former appellate services I and II. References to the Executive Assistant have been deleted and the functions of the position consolidated under Special Assistants. The former medical assistants have been redesignated as medical advisers.

In the Office of Construction-previously designated as the Office of the Assistant Administrator for Construction-the former positions of Executive Assistant and Manager of Operations were consolidated in a new position of Deputy Assistant Administrator for Construction.

An extensive reorganization of the Department of Medicine and Surgery also occurred during the year. In the Office of the Chief Medical Director the position of Special Assistant has been changed to Executive Assistant, and a new management control staff has been established as an advisory staff under the immediate jurisdiction of the Chief Medical Director. To strengthen research in Veterans' Administration health services administration, and to give added emphasis to the planning-programing-budgeting concept, a new administrative research staff and a planning, programing, and budgeting staff have been added to the immediate office of the Associate Deputy Chief Medical Director.

Other major changes in the Department of Medicine and Surgery included the abolishment of the former Office of Assistant Chief Medical Director for Plans and Coordination and the establishement of a new Office of Management Systems Service. The consolidation of personnel and financial management and reporting functions in the agency resulted in abolishing the D.M. & S. Personnel Service and Office of Controller. However, a new Office of the Budget Service was created in the department. Another change involved the redesignation of the former registrar service as the medical administration service and the former housekeeping service as the building management service with corresponding changes in the titles of the field station counterpart organization elements.

A new nuclear medicine service was established under the Assistant Chief Medical Director for Professional Services, and under the ACMD for Dentistry a new position of Deputy for Dentistry was created.

In the Department of Veterans Benefits, the Personnel Service and Office of Controller, DVB, were abolished as in the Department of Medicine and Surgery. In order to advance the department's PPB activities, a new program planning and budgeting service was established with the following staffs in support: budget formulation and execution, program planning and standards, finance field review and liaison, and research and reports liaison. Certain planning functions formerly performed in the contact and administrative services were transferred to this new service.

Other changes in the Department of Veterans Benefits involved the establishment of a new position of Executive Assistant for Education in the immediate Office of the Director, compensation, pension, and education service, and in the insurance service a position of Deputy Director and a new planning staff were created. Also in the insurance service, the title of Chief, Policy and Procedures Staff was changed to Assistant Director for Policy; the title of Chief, Program Administration Staff was changed to Assistant Director for Program Administration; and the title of Chief, Review and Appraisal Staff was changed to Assistant Director for Standards and Evaluation.

In the Department of Data Management the systems maintenance service has been redesignated the systems operations service, and in the field, the data processing center managers and assistant manager have been redesignated Directors and Assistant Directors, respectively.

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