The investment bankers, who manage the marketing of bank bonds,

we contacted were concerned about the impact that failure to appropriate callable capital would have on the continued marketability of bank

bonds. In their view a sustained failure to appropriate callable

capital could increase the cost and limit the size of future bank issues.

AID STAFFING

The number of AID full time U.S. employees in permanent positions was 3,653 at December 31, 1976. This was a slight decrease from the on-board figures of 3,706 at June 30, 1976, due principally to a decrease in the number of employees in Washington headquarters while the number overseas increased slightly.

Total staffing of AID, including foreign nationals overseas, was 5,711 at December 31, 1976. This total, too, is down slightly from the June 30 figure of 5,751 but reflects the steady decline over the past several years from the high of 17,569 employees at the end of fiscal year 1968.

AID has carried out several reductions in force over the past few years to reduce their overall staffing. During the period July 1, 1975, through December 31, 1976, there were 92 separations of AID full time foreign service employees, the majority of which were terminations of

Time Limited or Temporary Appointments. The separations of full time employees for all pay classifications and for all reasons--retirements, resignations, transfers, etc.--during this same period totaled 630.

AID through its actions over the past few years has brought about substantial reductions in its overall staffing. The downward trend has slowed, however, and AID anticipates increasing its overall staff by 242 U.S. nationals and 199 foreign nationals by the end of fiscal year 1977 to meet additional requirements of Middle East and African programs.

With respect to the anticipated increase in U.S. nationals, the number of such employees at the end of December 1976 (3,653), was below the 3,710 figure which the Subcommittee, in its report on the fiscal year 1977 Appropriations Bill, had suggested as adequate. AID has projected this figure to 3,895 by September 30, 1977.

This Subcommittee has previously expressed concern over the percentage of U.S. national employees in Washington versus those overseas. We found that as of December 31, 1976, approximately 65 percent of the U.S. national employees of AID were stationed in Washington and 35 percent overseas. This ratio has not varied to any great extent over the past few years since the beginning of the downward trend in overall staffing. As a matter of perspective, when AID's foreign national employees are considered, the ratio of staff at the end of December 1976 is approximately 41 percent Washington, 59 percent overseas and projected as 39 percent Washington, 61 percent overseas by the end of September 1977. At the specific request of the Subcommittee, we have obtained and analyzed information on the grade and pay structures of AID compared with other U.S. Government agencies operating overseas. AID, even after the scaling down of staff which has been done, still has, generally, a higher average grade structure than the Department of State, United States Information Agency and Peace Corps. This higher average grade structure, in the general schedule (GS) grades as well as the foreign service grades, is reflected in their overseas staffs--based on selected missions--as well as the Agency overall. Moreover, from the standpoint of salaries over

45 percent of AID employees make over $27,600 per annum compared with 21 percent of State employees and 28 percent of USIA employees who fall

into such salary ranges.

Further, at the request of the Subcommittee staff, we obtained information on the number of AID employees in the top five grade categories, i.e., Executive Appointees, Chiefs of Missions, Foreign Service Reserve Officer, Class 01, GS-18s, and AD-18s, as of December 31, 1976, in relation to past periods. We noted a reduction in the number of employees in these top grades from 162 as of May 25, 1975, to 118 as of December 31, 1976.

Following are a number of schedules and charts dealing with AID

staffing.