In the Bureau of Administration, the following organizational changes occurred or were pending in the offices comprising the Bureau: In the Office of Finance, the field operations staff was changed to the Field Operations Division which comprises the Caribbean fiscal staff, regional finance centers, and the field assistance staff.

In the Office of Operations, the position of Deputy Assistant Secretary for Operations was abolished. The Office is now headed by a director.

An Office of Communications with two staffs and five divisions was established under a Deputy Assistant Secretary for Communications. This was accomplished by the transfer of functions and personnel of the cryptography staff and the Diplomatic Communication Services from the Office of Operations.

The Office of Personnel is now headed by a Director of Personnel, and an extensive reorganization has been approved, although finalization of nomenclature for its components has not been completed. Essentially, there will be a two-line organization: (a) one for all officer personnel, and (b) one for all other personnel which will have responsibility for day-to-day personnel operations. The functions of the Compensation, Medical, and the Personnel Services Divisions will continue as presently constituted.

During 1963, various changes occurred in the status of oversea posts and 14 consular offices were closed. The American Embassy in Libya was transferred from Benghazi to Tripoli and Baida was elevated to Embassy status at the same time. Due to the distribution of Libyan Ministries between Baida and Tripoli, the Ambassador maintains residences at both locations. Benghazi was reduced to consulate status. The former Legations of Taiz, Yemen, and Usumbura, Burundi, were elevated to Embassy status. Saná a was designated as a branch office at Taiz and the consulate general at Tangier was changed to a branch office of the Embassy at Rabat. In addition, the consulate general at Nairobi, Kenya, and the consulate at Zanzibar, Zanzibar, became Embassies.

Malaysia, an enlargement of the former Federation of Malaya, was proclaimed in September and the consulate general at Singapore, formerly within the jurisdiction of the United Kingdom, was designated a constituent post in the new country.

Two consulates, Calgary, Canada, and Durban, Republic of South Africa, were elevated to consulates general and a new consulate was established at Bukavu, Republic of the Congo.

The following consulates were closed during the year: Basel Switzerland; Cardiff, Wales: Cork, Ireland; Edmonton, Canada; Haifa, Israel; Le Havre, France; Manchester, England; Penang, Malaya; Santos, Brazil; Sarajevo, Yugoslavia; and Venice, Italy. Consulates general at Geneva, Switzerland; Salzburg, Austria; and Yokohama, Japan, were also closed.

The name of the consular agency at Puerto Libertador, Dominican Republic, was changed to Manzanillo.

Agency for International Development

The following significant internal organizational changes were ef fected during calendar year 1963:

The Contract Services Division of the Office of Program Support and the Research Contract Staff of the Office of Human Resources

and Social Development were combined into a single Contract Services Division and organizationally placed in the Office of Material Resources.

Also established in the Office of Material Resources was the Procurement Policy Staff to serve as the focal point for the formulation of policies and the development of criteria, regulations, procedures, standards, and practices governing (1) all AID-financed procurement and AID supply management activities, and (2) the monitoring of such procurement and activities, including procurement by borrowers, grantees, or other entities using AID funds.

The Trade Coordination Staff was established within the Office of the Assistant Administrator for Program Coordination in November. This new organizational entity is the principal unit in AID concerned with trade problems of the less developed countries. Its purpose is to: (1) enable AID to bring to bear on U.S. trade policies consideration of their effect on the development problems of the emerging countries; and (2) enable AID to conduct its own programs in a manner which will help to alleviate the trade problems of these countries.

Effective November 6, 1963, the immediate Office of Program Support was abolished and its functions transferred to the Assistant Administrator for Administration. Organizational elements formerly reporting to the Office of Program Support now report directly to the Assistant Administrator for Administration. These elements are: the Office of International Training which was formerly a division; the General Services Division; the Statistics and Reports Division; and the Communications Resources Division.

Peace Corps

During 1963, the Division of Public Information became a division in the Office of Public Affairs. Also the Division of University Relations and the Division of Private Organizations were combined into the Division of University, Private, and International Cooperation. The responsibility for working with international organzations was formerly assigned to the Office of Program Development and Op

erations.

DEPARTMENT OF THE TREASURY

The following organizational changes during calendar year 1963, involving an increase of 1,131 employees, were reported by the Administrative Assistant Secretary:

Bureau of Accounts

During 1963, regional disbursing offices in Boston, Dallas, and Portland were closed resulting in a net decrease in the Division of Disbursement.

Comptroller of the Currency

During the year the Statistical Division was made part of the newly created Department of Banking and Economic Research, and an economic and research and analysis staff was recruited. The Examining Division was abolished and its functions absorbed by the regional offices and continuing organizational units of the National Office. Increases have resulted from adding staff to service the expanding banking industry.

Internal Revenue Service

On January 1, 1964, the Service had 840 more employees than it had on January 1, 1963. This increase was necessary to handle the additional work involved in connection with the increased number of tax returns received and the efforts of the Service to increase public compliance with the tax laws.

The Office of the Director of Practice was transferred from the Internal Revenue Service to the Office of the Secretary effective July 1, 1963. Cincinnati and Dallas Regional Service Centers were established January 1, 1963. The data center in Detroit, Mich., will be established during 1964. Effective January 1, 1964, the number of Internal Revenue regions was reduced from 9 to 8 and the number of districts from 62 to 58. This change in field structure was determined necessary to make better use of existing resources.

Bureau of Narcotics

During 1963 two new field districts were established-with headquarters at Bangkok, Thailand, with branch offices at Singapore and Hong Kong; the other was established with headquarters office at Mexico City with a branch office at Monterrey, Mexico.

Buraeu of the Public Debt

In Washington an Accounting Control Unit was established in the Machine Accounting Section to handle the manual control activities formerly a part of the Office of the Manager.

In Chicago the Numerical Register Section was abolished and the remaining active functions of the Section were transferred to the Adjustment and Research Unit of Accounts and Correspondence Section. Significant personnel changes have occurred. The decrease in the Chicago office occurred as a result of a change in procedure under which the Parkersburg office began to record the serial numbers of retired series E-bonds on magnetic tape and the Chicago office discontinued the manual posting of this information in numerical registers. This led to abolishment of the Numerical Registers Section and a subsequent decrease in personnel. Also, some positions were eliminated through minor realinements of duties. The increase in the Parkersburg office occurred mainly as a result of the taking over by that office of the paper bond work formerly performed by the Cincinnati office, which has been closed.

U.S. Secret Service

During this year the Congress passed legislation assigning additional investigative and protective duties to the Secret Service which have required additional manpower to implement. The Secret Service now has responsibility for the investigation of offenses relating to the counterfeiting of coin slugs, and protective responsibility for a period of not less than 2 years to provide protection for Mrs. Jacqueline Kennedy and her children.

The Secret Service, in 1963, opened and staffed an office in Paris to cope with an increase in international counterfeiting of American currency. To promote greater efficiency in conducting investigations in the continental United States, it was necessary to reorganize on a limited basis, the field districts of the Secret Service. Certain offices

previously staffed by a single representative were expanded to become independent districts which required a limited increase in personnel for each of the four offices created.

Office of the Treasurer of the United States

Reorganization of the functions of the Payment and Reissue Branch and the Control and Correspondence Branch, Securities Division, will result in the transfer of certain functions to the Office of the Chief, Securities Division, and to the Payment and Reissue Branch, to be effective early in 1964.

Because of the transfer of payroll accounting to automated equipment, the Accounts and Payroll Branch, Administrative Office, will be abolished in the near future and a new branch created to assume responsibility for administrative accounts. The Uncirculated Coin Section, Cash Division, was abolished formally on July 1, 1963.

A new reproduction unit will be established in the Administrative Office in 1964 which will consolidate present reproduction functions in the Administrative Office, the Supply and Reproduction Unit of the Administrative Office, and the Photostat Section of the Check Claims Division, and abolish the individual units.

Bureau of Customs

A survey made by representatives of the Office of the Secretary and the Bureau of Customs covered the entire Customs Agency Service, its roles and missions, organization, operation, and so forth. This study's major recommendation was that a regional organization be established with clearly defined supervisory and administrative functions, thus relieving the Customs agents in charge of this workload. This regional organization was established July 1, 1963, with offices at New York, Miami, Houston, Chicago, Los Angeles, Rome, and Tokyo. It is believed that greatly increased effectiveness will be realized from this reorganization.

Additional customs examiners were provided by the approval of funds in a fiscal year 1963 supplemental request to handle the large number of invoices that were being backlogged. This backlog was caused by the additional work in the field appraisement offices in providing the Bureau of the Census with more accurate statistical data on import entries.

Funds were also provided for a Communist propaganda screening program to carry out the requirements of section 305 of Public Law 87-793 approved October 11, 1962. Propaganda screening units were established at New York, Chicago, Seattle, San Francisco, and Los Angeles and also in El Paso, New Orleans, Miami, Honolulu, and San Juan.

Office of the Secretary

The employees of the Office of Tax Legislative Counsel are now included in the report for the Office of the Secretary. They were formerly reported under the Office of the General Counsel. The Office of the Secretary includes the Office of the Director of Practice, which was transferred from the Internal Revenue Service on July 1, 1963. Also, organizations within the Office of the Administrative Assistant Secretary consolidated budget and administrative accounting activities in the Office of Budget and Finance and established a separate Internal Audit Division in the Office of Management and Organization.

INDEPENDENT AGENCIES

Reorganizations, changes in the administration of Federal programs, and major increases or decreases in personnel during calendar year 1963 were reported by the following agencies:

CIVIL AERONAUTICS BOARD

The Chairman of CAB reported that certain organization changes were made in 1963 which resulted in an increase of 18 employees.

The Rates Division, Bureau of Economic Regulation, was reorganized in April into three sections-a Rates and Practices Section, a Tariffs Section, and a Legal Section. The realinement of functions permits more effective treatment of the economic and legal aspects of rate matters, which previously had been combined in a single Commercial Rates Section.

In June a Personnel and Management Division was created by consolidating the Management Division and the Personnel Section. This results in a closer and more productive relationship between the staffs engaged in related aspects of the manpower problem.

An Office of Information was established in October by transferring to it the staff and functions of the former Public Information Section, Office of the Secretary, and the Public Information Officer, Bureau of Safety. This Office consolidates all information functions and reports directly to the Executive Director.

In December a consolidation of related recordkeeping, control, and reference functions was accomplished through transfer to the Office of the Secretary of the Docket Section and the Indices Section, Bureau of Hearing Examiners; the Reference and Control Unit, Office of Carrier Accounts and Statistics; and the Schedule Records Unit, Bureau of Economic Regulation, a total of 26 positions. By bringing these organizations together in the Office of the Secretary, where they may be coordinated with each other and with the Minutes Section, a more effective and economical discharge of these functions is expected to be achieved.

Also in December, the Office of Administration was charged with establishment of a central files by transferring to it the records and staff of 16 of the file stations of the Bureau of Economic Regulation, Bureau of Safety, Office of General Counsel, and Bureau of Enforcement. Remaining files will be studied to bring about further desired centralization of records, thus enabling the best maintenance of records at the least expense.

CIVIL SERVICE COMMISSION

The Chairman reported a decrease of 162 employees during 1963, and that the Commission's organization has been basically stable for the past year. Only three changes of any significance have occurred and these are described briefly below:

In March 1963 an Office of Hearing Examiners was established as part of the Executive Director's office with authority to operate a nationwide program for the employment and compensation of hearing examiners.