Mr. NOOTER. Mr. Chairman and honorable members of the committee: The proposed fiscal year 1978 population program totals $177 million. To carry out the population planning purposes of section 104 of the Foreign Assistance Act, we are seeking $167 million in new obligational authority and we estimate recoveries from prior year funds of $10 million. The fiscal year 1978 program compares with an estimated level of $143.4 million in fiscal year 1977.

Proposed executive branch authorizing legislation calls for separation of the population and health accounts to permit consideration of each program on its merits and without application of an arbitrary ratio of funding between them. We continue to be firmly committed to the goal of integrating the delivery of family planning assistance and general health services wherever appropriate, and the proposed separation of authorization and appropriation accounts will not inhibit the flexible administration of these funds at the implementation stage to that end.

We have already spoken in the other session about the fact that there are trends toward progress in the population field. More and more governments have removed barriers to the practice of birth control and are taking the affirmative action of instituting family planning programs. Leaders in the developing countries increasingly recognize that the reduction of population growth involves not only the availability of family planning services but also the overall improvement of economic and social conditions, where the benefits of development are visible to and flow more directly to the poor, and where people can hope for a better future.

I might say, Mr. Chairman, when one thinks of this problem in a somewhat more historic way, I remember in my early years with AID-1964, 1965-it was a time when AID wasn't even permitted to provide a family planning assistance program, because the attitudes in our own country hadn't progressed to a full understanding of this problem. I considered that situation compared to what one finds when he would travel around the world today, is vastly different. There has been a tremendous shift in attitudes and outlook regarding what is now widely understood throughout the world as a serious problem.

SECTION 117

In this regard, AID is proposing a new section 117 in the Foreign Assistance Act which would focus additional attention on the interrelationship between population growth and overall development. This legislation would give further emphasis to the need to deal with family planning, not in isolation but as an integral part of other aspects of the development process.

I think I will skip ahead, Mr. Chairman, in the interests of time. We do show a breakdown, of course, among the various categories of assistance requests and we have submitted the details of the program elements in the congressional presentation books. I will stop here to respond to questions.

UNFDA

Senator INOUYE. Mr. Nooter, we will be submitting several questions for your response.

On page 3 of your statement you mention the United Nations Fund for Population Activities and the International Planned Parenthood Federation. First of all, I am certain you are aware that this Committee has been trying to get all contributions to international organizations financed from the appropriations account by that name. Why then does your Agency insist on contributions to the U.N. Fund for Population Activities from the population account. Why not through the contributions to "International Organizations" account?

Mr. NOOTER. Mr. Furman will answer that.

Mr. FURMAN. Two basic reasons, Mr. Chairman. First of all, we are trying to focus attention on the entire population issue and trying to provide all funds from a single functional account. We think this is a very useful mechanism and helps to induce other donors to increase their levels of contribution. Second, as you well know, in dealing with the U.N. family of organizations it is frequently difficult to have substantial impact on how their funds are used. In this particular instance because funds are appropriated through this functional account, and because our organization has a direct and open relationship with the UNFPA staff, we feel that we are able to encourage them to act more effectively than we might otherwise be able to do if it were appropriated under "International Organizations."

Senator INOUYE. Where is the headquarters of this?

Mr. FURMAN. In New York.

Senator INOUYE. Who is the Director?

Mr. FURMAN. Raphael Salas, a Filipino and a former Government official of the Philippines.

Senator INOUYE. Do you know what his gross salary is?

Mr. FURMAN. I do not offhand, no, sir.

Senator INOUYE. I will let you know what it is. It is $76,030; plus post adjustment of $8,688; plus representation allowance of $4,000; plus education allowance of $1,377; plus dependency allowance of $300. The gross total is $90,395. What other employees have

Mr. FURMAN. I have no idea what salary scales of the United Nations

are.

Senator INOUYE. I just want to know if we are just subsidizing salaries there.

Mr. FURMAN. Their salaries, sir, as far as I know, are paid out of the funds that are provided from our assessed contributions, not funds that would be coming out of the "International Organizations" account, but assessed through the State Department. The funds we are talking about here are used for program activities and not for the salaries of the senior staff of that organization.

Senator INOUYE. I am just curious, Dr. Ravenholt, what do you get. Dr. RAVENHOLT. Well, as you know, for a long time we have been held at ceiling. I was at ceiling, so this time went to $47,500. But I share your concern, Mr. Chairman, with the multilateral organization that the salaries scale tend to run substantially above ours. Certainly, of course, we might think ours are too low, but they are larger than ours. But I would say in defense of UNFPA, the United Nations Fund for Population Activities, that they have done the best job of any of the U.N. agencies I know to keep the number of employees at a reasonably low level.

Mr. FURMAN. I think we should point out, Mr. Chairman, that under 5 percent of their budget is attributable to administrative costs. so as Dr. Ravenholt is pointing out, the funds made available to them are being used primarily for program activities.

Senator INOUYE. You told me salaries come from another account

Mr. FURMAN. I said administrative costs in terms of running the program. The salaries of the senior staff, as far as I know, do come from assessed contributions.

Senator INOUYE. What is ours? What percentage of the total administrative contribution does the United States make?

Mr. FURMAN. Our current level is proposed at $28 million for fiscal year 1978, against an anticipated $110 million. This would give us a share of about 25 percent.

Senator INOUYE. Anticipated?

Mr. FURMAN. With contributions coming from other donors.

Senator INOUYE. How successful were you last fiscal year on your "anticipated"?

Mr. FURMAN. The fiscal year 1977 program was $95 million, of which we contributed $25 million. In fiscal year 1976 it was $79 million, against which we contributed $20 million. So the rate is running at about 25 percent rate annually. This is significantly different than what it was some years ago. When the program started, we contributed well over the lion's share, well over 80 percent.

POPULATION RESEARCH

Senator INOUYE. In our report of fiscal 1976 we noted that a concerted effort by the United States in population planning was over 10 years old. We wondered at that time if there were not too many areas where a "decisive step should be taken out of the field of research and into the field of action." You are now proposing to provide $67.6 million for activities which I consider to be research. What decisive steps are you now taking in action programs?

Mr. FURMAN. Two points, Mr. Chairman. First of all, the budget for research activity is $29.9 million in fiscal year 1978. Those activities are concentrated in four basic areas, demographic data collection, policy analysis, fertility control techniques, and operations research. It is the latter two which really have a significant impact in terms of improved methods of fertility control and improvement of the delivery systems through which contraceptives for family planning are made available at the community level, and those occupy the bulk of that $179 million.

Senator INOUYE. Fertility control techniques would be research, wouldn't it?

Mr. FURMAN. Within those two subaccounts.

Senator INOUYE. Demographic Data Collection and Analysis, what is that, research?

Mr. FURMAN. There is approximately $1 million, in the demographic area which is being used for the development of methodology to improve our data collection system.

Senator INOUYE. What population policy funds are requested to continue programs in research?

Mr. FURMAN. Social science research and policy development. $6.3 million in that particular area.

Senator INOUYE. What percentage of the funds that are now available throughout the world for population planning is used for action programs?

Mr. FURMAN. Of the U.S. budget?

Senator INOUYE. Of the whole world.

Mr. FURMAN. Well, our program is $177 million. Just a moment.

Dr. RAVENHOLT. I would add, Mr. Chairman, that we fully share your concern for action, and we look upon research simply as necessary of putting a sharper cutting edge on that program.

Senator INOUYE. I am not against research. I think it is very important.

Mr. FURMAN. Yes.

Senator INOUYE. But we can't do research forever.

Mr. FURMAN. Let me say it was about half the level of what was put in, a few years ago. Ten percent then; now it is down to 5 percent of our program. We think we have gotten some very important breakthroughs in the improvement of contraceptive technology and we are currently delivering those with the utmost speed to transfer this technology throughout the developing world.

AID is the foremost source of action assistance of any of the organizations. We provide about 80 percent of the contraceptives for the family planning programs in the developing countries. We put particular emphasis on this. About half the budget, as you can see, goes for either contraceptives or family planning service programs directly. So we very much share this concern and we put the emphasis upon that, delivering of the contraceptives and when we get a new breakthrough in technology we get it out there as quickly as we can.

Mr. NOOTER. I think, Mr. Chairman, the history of this program has shifted in the 10 or 12 years AID has been involved in it. If we were still using the technology of 10 years ago, we wouldn't be as far along as we are.

Dr. RAVENHOLT. In fact, Mr. Chairman, it might be useful, I have a map showing the way that we are delivering the training and the newest technology, for example, in the surgical field, and so forth. This is going very rapidly around the world. It shows where the trainees are coming from, where the equipment is going, and on the last, or next to last page, it also indicates what is happening to the accrued birth rate in a half dozen countries, along the lines of your previous question.

Senator INOUYE. Without objection, these maps and charts will be made a part of the record at this point.

[The maps follow:]