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SPECIAL
COLLECTIONS

Annual Report of the
Secretary of Commerce
for the Fiscal Year Ended
June 30.1974

5INESS ENERGY CO____
rORS
BALANCE OF PAYMENTS
UVES
PRODUCTIVITY TRENDS
E )INESS METRIC CONVERSION
OUNTS TECHNICAL REPORTS
5 ECONOMIC DEVELOPMENT
O e m a r k S MARINE FISHERIES
ATENTS WEATHER FORECASTS
TANDARDS TRADE PROMOTION
YS POLLUTION MEASUREMENT
LEfiaMMUNICATIONS TOURISM
CENSUS OF POPULATION
1
Y BUSINESS ENTERPRISE
A
iDS MERCHANT MARINE
iP O S S NATIONAL PRODUCT
30030005362976

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1974

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For sale by the
Superintendent of Documents
U.S. Government Printing Office
Washington, D.C., 20402

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Price $1.55

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US DEPT OF COMMERCE LIBRARY

38584000092832

3 8584 0000928

Annual Report of the
Secretary of Commerce
for the Fiscal Year Ended
June 30, 1974

U.S. DEPARTMENT OF COMMERCE
Frederick B. Dent, Secretary
John K. Tabor, Under Secretary

9/ / ?/ '

>S~

f

Letter of Transmittal

December 2, 1974
Dear Sirs:
I have the honor to transmit to you the annual report of the
activities of the Department of Commerce for the fiscal year ended
June 30, 1974. In the interest of economy, we have eliminated the
printing of the full number of copies authorized by 44 U.S.C.
1116. Arrangements have been made with the Superintendent of
Documents to place a limited supply on sale and to provide the
number needed for depository libraries.
Copies are being made available to the Committees of Congress
which are regularly concerned with the work of the Department of
Commerce. A limited number of additional copies will also be
furnished to other Committees or individual Congressmen upon
request, and, of course, a copy will be maintained on file in the
Department for public inspection as required by law.
Sincerely yours,

Secretary of Commerce

The President Pro Tempore of the Senate
The Speaker of the House of Representatives

Foreword

This is the 62nd Annual Report of the Secretary of Commerce.
It is prepared under Title 15, United States Code, Section 1519,
which provides that the Secretary of Commerce shall make an
annual report to the Congress on the finances and activities of
the Department of Commerce.
Separate annual reports are made by the Department’s Economic
Development Administration, Patent Office, Maritime Administra­
tion, United States Travel Service, National Bureau of Standards,
Office of Minority Business Enterprise, Office of Telecommunica­
tions, and National Marine Fisheries Service. Also, each of the
Regional Action Planning Commissions publishes an annual
report, and the Department’s Domestic and International Busi­
ness Administration publishes a quarterly report of its export
administration activities. Except for those of the Regional
Commissions, all these reports may be obtained from the
Superintendent of Documents. The reports of the Commissions
may be obtained from the Department’s Office of Regional
Economic Coordination in Washington, D.C. 20230.
Annual reports, in addition to meeting legal and other require­
ments, serve valuable research and reference purposes, and
provide a permanent historical record of the Department and its
major activities. In order that this Annual Report may better
serve those purposes, the constructive comments and suggestions
of its readers would be appreciated. These comments should be
directed to the Director of the Office of Organization and
Management Systems, Department of Commerce, Washington,
D.C. 20230.

IV

Contents

Letter of Transmittal.......................................................................................................................................

Page
iii

Foreword...........................................................................................................................................................

iv

Highlights .........................................................................................................................................................

1

CHAPTER I.-THE DEPARTMENT OVERALL ......................................................................................

4

CHAPTER IE—GENERAL ADMINISTRATION.........................................................................................
Administrative Management ..........................................................................................................
Public Affairs ...................................................................................................................................
Office of General Counsel...............................................................................................................
Policy Development..........................................................................................................................

10
10
13
14
16

CHAPTER III.—SOCIAL AND ECONOMIC STATISTICS .......................................................................
The Assistant Secretary for Economic Affairs ...........................................................................
Social and Economic Statistics Administration...........................................................................
Bureau of Economic Analysis........................................................................................................
Bureau of the Census .....................................................................................................................

17
17
17
18
19

CHAPTER IV —ECONOMIC DEVELOPMENT ........................................................................................

22

CHAPTER V —REGIONAL ACTION PLANNING COMMISSION PROGRAM ....................................

26

CHAPTER VI.—DOMESTIC AND INTERNATIONAL BUSINESS..........................................................
G eneral..................................................... , ......................................................................................
Office of Field Operations...............................................................................................................
Bureau of Domestic Commerce......................................................................................................
Bureau of Resources and Trade Assistance ..................................................................................
Bureau of International Commerce...............................................................................................
Bureau of East-West Trade...............................................................................................................
International Economic Policy and Research................................................................................

29
29
29
30
32
34
35
37

CHAPTER VIL—TOURISM ..........................................................................................................................

43

CHAPTER VIII.-FOREIGN DIRECT INVESTMENT.............................................................................

45

CHAPTER IX.—MINORITY BUSINESS ENTERPRISE.............................................................................

46

CHAPTER X.—SCIENCE AND TECHNOLOGY........................................................................................
The Assistant Secretary...................................................................................................................
National Bureau of Standards........................................................................................................
Patent Office ..................................................................................................................................
National Technical Information Service........................................................................................
Office of Telecommunications ......................................................................................................

50
50
51
54
55
56

v

CONTENTS-Continued
CHAPTER XI.-OCEANIC AND ATMOSPHERIC ACTIVITIES ............................................................
G eneral..............................................................................
Severe Storms Research .................................................................................................................
Coastal Zone Management..............................................................................................................
Sea G rant...........................................................................................................................................
The NOAA Corps ............................................................................................................................
National Weather Service ...............................................................................................................
National Ocean Survey ..............................................
National Marine Fisheries Service .................................................................................................
Environmental Data Service ..........................................................................................................
National Environmental Satellite Service ....................................................................................
Environmental Research Laboratories...........................................................................................

Page
61
61
64
64
65
65
66
68
69
72
73
74

CHAPTER XII.-MAR1TIME AFFAIRS......................................................................................................

78

CHAPTER XIII.—APPENDIX.......................................................................................................................

82

vi

HIGHLIGHTS
GENERAL ADMINISTRATION

ECONOMIC DEVELOPMENT

• The Assistant Secretary for Administration imple­ • The Economic Development Administration approved
mented a Department-wide management by objectives
$174 million for 456 public works projects. This
program, covering some 40 percent of the Depart­ consisted of $38.7 million for 190 projects to help
ment’s activitiës.
create immediate jobs and $135.3 million for 266
projects to support long-range planning for permanent
jobs.
SOCIAL AND ECONOMIC STATISTICS

• It provided $ 17.9 million in technical assistance to help
• Drawing on work by the Social and Economic
solve problems that curtail economic growth.
Statistics Administration, the Assistant Secretary
for Economic Development and the Chief Statisti­ • It approved $20 million for business development
cian of Canada completed reconciliation of trade
loans and working capital guarantees.
statistics for the two countries. This represents
the cumulation of a program designed to provide • Finally, it made 209 grants totaling $7.7 million
a better basis for trade negotiations between the
to help local governments, multi-county district
United States and Canada.
organizations, and the States plan for economic
growth.
• The Administration completed a series of alter­
native economic projections through the year
2020. These projections include separate figures
REGIONAL ACTION PLANNING
for 39 industries, each of the 50 states and the
COMMISSION PROGRAM
District of Columbia, plus 632 metropolitan and
other areas.
• The Regional Commissions approved $17.3 million
for public works projects and $18.9 million for
• Benchmark input-output tables for the year 1967
technical assistance. A number of the Commis­
were completed and offered for sale. Such tables are
sions played a significant role in helping State
fundamental to a detailed understanding of the
Governors develop programs for dealing with cur­
American economy.
rent issues, such as short-term and long-term
energy problems.
• The Administration published the first results of a
program to measure the country’s expenditures for
pollution control.
DOMESTIC AND INTERNATIONAL BUSINESS
• It also worked to complete processing and review of • The Domestic and International Business Adminis­
the 1972 Economic Censuses and released reports
tration realigned and expanded its field office system
from the Censuses of Business, Construction Indus­
to improve service to local businessmen. Its Ombuds­
tries, Manufactures, and Mineral Industries.
man continued to help at the national level, answering
over 10,000 inquiries relating to shortages and other
• Finally, it began publishing U.S. import data on a new
matters.
basis. This—the so-called “cost, insurance and freight”
basis—is the one generally used abroad, and now our • The 1974 edition of the U.S. Industrial Outlook
import statistics will be much more comparable to
reviewed 1973 developments and projected activity
those of foreign countries.
for 1974 and 1980 for over 200 industries.

FOREIGN DIRECT INVESTMENT
• The Domestic and International Business Adminis­
tration began a special program of industrial energy
conservation, contacting over 43,000 business leaders • Pursuant to long-standing policy to remove controls
over U.S. investment abroad as soon as feasible, the
and awarding some 8,000 “SavEnergy” citations to
Department terminated its Foreign Direct Investment
successful participants.
Program.
• The Administration helped negotiate the new
“A rrangem ent Regarding International Textile
MINORITY BUSINESS ENTERPRISE
Trade,” which involves the United States and 50 other
countries.
• Federal expenditures for minority enterprise activities
• The drive to increase exports continued, the Admin­ totalled $1.3 billion, including .7 billion for procure­
ment from minority-owned firms, during fiscal 1974.
istration sponsoring 75 major exhibitions and over
1,000 smaller exhibitions around the world. It imple­
mented a new, fully automated system to notify U.S. • The Department’s Office of Minority Business Enter­
prise assisted 24,683 minority firms, packaging over
firms of overseas business opportunities. It also
$201 million in loans and generating $253 million in
provided support to the President’s Export Council,
procurement.
which was created in December 1973.

• The Administration continued work to promote
SCIENCE AND TECHNOLOGY
East-West trade, supporting the existing U.S.-Soviet
and U.S.-Polish commercial commissions as well as the
new U.S.-Romanian commission. It recruited some • Thirty-three cooperative arrangements with other
Federal agencies were undertaken during the first full
300 U.S. firms to participate in exhibits and trade
year of the Experimental Technology Incentives
missions.
Program. This Program is managed by the National
Bureau of Standards and is designed to influence the
• Early in the fiscal year, the Administration intro­
rate of technological change.
duced export controls for soybeans and certain
related products. These were terminated with the new
• Room air conditioners were the first products for
soybean crop.
which specifications were developed in the Bureau’s
voluntary appliance labeling program. This program is
• One of the Administration’s more significant ac­
designed to inform consumers about the energy
complishments was creation of a new staff, spe­
consumption and efficiency of home appliances.
cializing in matters of international economic policy
and research. During the year, this staff played a
major role in the formulation of U.S. negotiating • The Bureau hosted two major national conferences on
privacy of information and security of data stored in
positions on tariff and non-tariff barriers. It also
computers, and also issued a handbook for the
worked to improve Government coordination with
physical protection of computerized data and com­
U.S. industry during the course of multilateral trade
puter installations.
negotiations.
• The Bureau completed a study of children’s strength
capabilities, as an aid in designing safer toys and other
children’s products, and developed flammability
standards for children’s sleepwear in sizes 7 through
• The United States Travel Service made, substantial
14.
progress towards its calendar 1974 goals of increasing
foreign exchange earnings by $ 137 million and foreign
• The Bureau originated a system of television captions
visitor arrivals by 235,000.
for the deaf that was tested by the Public Broad­
casting System.
• The Service developed 41 tour programs in six foreign
markets, and these produced 115,000 passenger book­
ings. It also established 355 travel planning centers in • The Bureau developed standards for walkthrough
metal detectors used in airports and public buildings
the United Kingdom and West Germany, helped U.S.
to detect hidden objects such as guns, knives, and
cities land 26 international congresses, and promoted
razor blades. It also developed security standards for
40 international trade shows.
exterior residential doors and windows.
2
TOURISM

and technicians from 72 nations in the largest and
most complex international weather project ever
conducted. The Administration is coordinating U.S.
participation in the experiment.

• The Patent Office examined and processed 116,000
patents to completion, a new record. Since only
104,000 applications were received, this reduced the
Office’s inventory of applications awaiting exami­
nation by 12,000.

• Researchers installed and began testing electronic
tornado detectors at 20 sites along the Nation’s
• The Office ^Iso installed a system to assess and
“tornado alley.” In Colorado, scientists flew into
forecast technological developments for the American
thunderstorm clouds to attempt to modify lightning.
business, scientific, and engineering communities.
Using patent data, the system produces reports on
such subjects as coal gasification, shale oil, and solar • The Administration announced a one-year goal for
computerizing nautical chart data for the Gulf of
and nuclear energy.
Mexico, the first area in the nation to be included in a
new automated hydrographic data bank.
• The National Technical Information Service sold 2.4
million copies of Federal or Federally-sponsored
scientific and technical reports. These sales and the • The Administration provided scientific data that led
to reduced fishing by foreign nations off our coasts. It
Service’s other activities grossed $8.3 million, up $2.7
also made significant advances in administering the
million from fiscal 1973.
Marine Mammal Protection Act.
• The Office of Telecommunications performed the
first comprehensive review of cable television tech­
MARITIME AFFAIRS
nology, the results of which are being used in applying
this technology to both Government and non• The Maritime Administration awarded construction
Government use.
differential subsidy contracts for 12 ships at a
cost of $281.7 million. All 12 are tankers and
three—rated at 390,770 deadweight tons—are the
OCEANIC AND ATMOSPHERIC ACTIVITIES
largest ever built in American shipyards. The
award of these contracts brought total construc­
• Timely Weather Service warnings were credited with
tion under the program to 59 ships aggregating
reducing the death toll during the April 1974 tornado
outbreak, which hit 13 States. To speed storm
6.2 million deadweight tons.
warnings further, the National Oceanic and Atmos­
pheric Administration unveiled plans for a system of • In calendar year 1973 American flag vessels
carried 39.8 million tons of cargo. This was a
highly computerized meteorological offices. It will be
two-thirds increase over the previous year, but
installed in some 275 locations by 1980.
still only 6.4 percent of the Nation’s total water­
borne foreign trade.
• The Administration also added two meteorological
satellites to its observing system, these polar-orbiting
spacecraft, together with another series of geo­ • In January 1974 the Maritime Administration’s Mer­
chant Marine Academy became the first—and only—
stationary satellites, are key elements in the system.
Federal academy to admit women. Of the 348 plebes
in the July 1974 class, 15 were female.
• The operational phase of the Atlantic Tropical Experi­
ment began in June 1974, bringing together scientists

3

CHAPTER I

THE DEPARTMENT OVERALL

or the Department by Executive Order or other Presi­
The Department of Commerce was so designated by the dential action.
Act of March 4, 1913, which reorganized the Depart­
ment of Commerce and Labor, created by the Act of Organization
February 14, 1903, transferring the labor activities into The chart on page 6 shows the organization of the
a separate department.
Department. The organizational components on this
chart fall into one of the following three general
categories:
Mission
• Office of the Secretary
The primary statutory mission of the Department is “to
• Operating units
foster, promote and develop the foreign and domestic
• Federal Cochairman of the Regional Commissions
commerce” of the United States. As a result of
legislative and other additions, this has evolved to The Office o f the Secretary is the general management
encompass a broad responsibility to foster, serve, and arm of the Department and provides the principal
promote the Nation’s economic development and tech­ support to the Secretary in formulating policy and in
nological advancement. The Department seeks'to fulfill providing advice to the President. It provides program
this mission through:
leadership for the Department’s functions, and exercises
general supervision over the operating units. It also
• Participating with other Government agencies in provides, as determined to be more economical or
the creation of national policy, through the Presi­ efficient, administrative and other support services for
dent’s Cabinet and its subdivisions.
designated operating units.
• Promoting progressive business policies and The Office of the Secretary consists of the Secretary and
growth.
the Secretarial Officers, the staff units immediately
• Assisting States, communities, and individuals serving these officials, and a number of independent
offices which perform Department-wide functions and
toward economic progress.
report directly to the Secretary. The Secretarial Officers
• Strengthening the international economic position are:
of the United States.
Under Secretary
• Improving man’s comprehension and uses of the
Assistant Secretary for Administration
physical environment and its oceanic life.
General Counsel
• Assuring effective use and growth of the Nation’s
Assistant Secretary for Domestic and International
scientific and technical resources.
Business
Assistant
Secretary for Maritime Affairs
• Acquiring, analyzing, and disseminating infor­
Assistant
Secretary for Economic Affairs
mation concerning the Nation and the economy
Assistant
Secretary
for Tourism
to help achieve increased social and economic
Assistant
Secretary
for
Science and Technology
benefit.
Assistant Secretary for Economic Development
Creation

The specific functions and programs of the Department
that make up these broad activities are authorized by the
Department’s 1903 organic act (15 USC 1501 et. seq.)
and by other legislation. They also include respon­
sibilities transferred from other Departments and
agencies by Presidential reorganization plan, as well as
responsibilities assigned to the Secretary of Commerce
4

The Under Secretary serves as the principal deputy to
the Secretary in all matters affecting the Department
and performs such continuing and special duties as the
Secretary may from time to time assign.
The Assistant Secretary for Administration and the
General Counsel are the Secretary’s principal assistants

Domestic and International Business Administration
United States Travel Service
Office of Foreign Direct Investments
Office of Minority Business Enterprise
Patent Office
National Bureau of Standards
National Technical Information Service
Office of Telecommunications
National Oceanic and Atmospheric Administration
Maritime Administration

on administrative management and legal matters,
respectively.
The other Secretarial Officers (referred to as Program
Secretarial Officers) are the Secretary’s principal assist­
ants on program matters, each being responsible for a
particular program area of the Department. This respon­
sibility may include exercising policy direction and
general supervision over one or more operating units or,
instead, serving as the head of a single operating unit.
The operating units of the Department are organiza­
tional entities outside the Office of the Secretary
charged with carrying out the major substantive func­
tions, or programs, of the Department. The heads of
some operating units are Program Secretarial Officers; in
other cases, they report to a Program Secretarial Officer
or directly to the Secretary. During fiscal 1974, the
Department had 12 operating units:

One operating unit—the Office of Foreign Direct Invest­
ments—was officially abolished on June 30, 1974.
The Federal Cochairmen o f the Regional Commissions
represent the Federal Government on the joint FederalState Regional Action Planning Commissions. These
Commissions provide assistance to economically dis­
tressed, multistate regions designated by the Secretary.
Only the Federal Cochairmen and their supporting staffs
are part of the Department.

Social and Economic Statistics Administration
Economic Development Administration

5

U.S. DEPARTMENT OF COMMERCE
SECRETARY
GENERAL COUNSEL
O ffice of P olicy Development
Office of Communications
Office of Congressional Relations
O ffice of Regional Economic
Coordination_________________

ADMINISTRATOR

NATIONAL OCEANIC AND
ATMOSPHERIC ADMINISTRATION

ASSISTANT SECRETARY
FOR
SCIENCE & TECHNOLOGY

U N D ER S E C R E T A R Y
ASSISTANT SECRETARY
FOR
ADMINISTRATION

ASSISTANT SECRETARY
FOR
TOURISM

ASSISTANT SECRETARY
FOR
MARITIME AFFAIRS

UNITED STATES TRAVEL
SERVICE

MARITIME ADMINISTRATION

ASSISTANT SECRETARY
FOR ECONOMIC AFFAIRS
FEDERAL COCHAIRMAN OF
REGIONAL COMMISSIONS

O FFIC E OF
TELECOMMUNICATIONS

PATEN T O FFICE

NATIONAL
TECHNICAL INFORMATION
SERVICE

OFFICE OF
FOREIGN DIRECT
INVESTMENTS

ECONOMIC DEVELOPMENT
ADMINISTRATION

ASSISTANT SECRETARY
FOR DOMESTIC AND
INTERNATIO NAL BUSINESS
DOMESTIC AND INTERNATIO NAL
BUSINESS ADMINISTRATION

Four Corners, Ozarks, New England,
Old West, P a cific Northwest, Upper
Great Lakes and Coastal Plains

NATIO N AL BUREAU OF
STANDARDS

ASSISTANT SECRETARY
FOR
ECONOMIC DEVELOPMENT

SOCIAL AND ECONOMIC
STATISTICS ADMINISTRATION

OFFICE OF MINORITY
BUSINESS ENTERPRISE

JUNE 1974

LIST OF KEY OFFICIALS
DEPARTMENT OF COMMERCE
June 30,1974
Secretary of Commerce........................................................................................................
Assistant to the Secretary...........................................................................................
Administrative Assistant to the Secretary................................................................
Special Assistant to the Secretary.............................................................................

Frederick B. Dent
Murray S. Scureman
Edward W. Huffcut
Hastings Wyman

Under Secretary of Commerce.............................................................................................
Special Assistant to the Under Secretary..................................................................
Program Assistant to the Under Secretary..............................................................

John K. Tabor
James A. Goyette
Vacant

Deputy Under Secretary for Legislative Affairs................................................................

George J. Pantos

Staff Offices of the Secretary:
Special Assistant for Policy Development................................................................
Special Assistant for Regional Economic Coordination..........................................
Special Assistant for Public Affairs .........................................................................
Director, Office of Communications .......................................................................

Darrell Trent
Daniel Garbern
Basil R. Littin
Thomas A. Bell

Assistant Secretary for Administration.............................................................................
Deputy Assistant Secretary ......................................................................................
Deputy to the Assistant Secretary...........................................................................
Director, Office of Administrative Services and Procurement...............................
Director, Office of Audits ........................................................................................
Director, Office of Budget and Program Analysis...................................................
Director, Office of Emergency Readiness ..............................................................
Director, Office of Financial Management Services.................................................
Director, Office of Investigations and Security .....................................................
Director, Office of Organization and Management Systems.................................
Director, Office of Personnel....................................................................................
Director, Office of Publications...............................................................................
Special Assistant for Civil R ights.............................................................................
Chairman, Appeals Board...........................................................................................
Director, Interagency Auditor Training Center.......................................................

Henry B. Turner
Guy W. Chamberlin, Jr.
Paul J. O'Neill, Acting
Donald B. Moore
Sidney S. Baurmash
David S. Nathan
Richard J. Pidgeon
Clyde E. Ahrnsbrak
Harry C. deVenoge
Joseph 0. Smiroldo
John Will
David Farber, Acting
Luther C. Steward, Jr.
Hugh Dolan
Elwood A. Platt

General Counsel ...................................................................................................................
Deputy General Counsel.............................................................................................

Karl E. Bakke
Bernard V. Parrette

Assistant Secretary for Economic Affairs...........................................................................
Deputy Assistant Secretary........................................................................................
Administrator, Social and Economic Statistics Administration.............................
Director of the Census (Bureau of the Census)............................................
Director, Bureau of Economic Analysis.......................................................

Sidney L. Jones
David Ferrel
Edward D. Failor
Vincent P. Barabba
George Jaszi

Assistant Secretary for Economic Development (Head of the Economic Development
Administration)...................................................................................................................
Deputy Assistant Secretary.........................................................................................
Deputy Assistant Secretary for Economic Development Planning........................
Deputy Assistant Secretary for Economic Development Operations ..................

William W. Blunt, Jr
Richard L. Sinnott
Joseph G. Hamrick
Daniel J. Cahill

7

LIST OF KEY OFFICIALS Continued
Federal Cochairmen of the Regional Action Planning Commissions:
Coastal Plains Regional Commission............................................................
Four Corners Regional Commission..............................................................................
New England Regional Commission..............................................................................
Ozarks Regional Commission......................................................................................
Upper Great Lakes Regional Commission..................................................................
Old West Regional Commission..................................................................................
Pacific Northwest Regional Commission....................................................................

Russell
J. Hawke, J
Stanley
Womer
Russell
F. Merriman
Bill H. Fribley
Raymond C. Anderson
Warren C. Wood
Jack 0. Padrick

Assistant Secretary for Domestic and International Business (Head of the Domestic
and International Business Administration)....................................................................... Tilton H. Dobbin
Deputy Assistant Secretary........................................................................................... John M. Dunn
U.S. Commissioner General of the International Exposition of the
Environment to be held at Spokane, Washington in 1974.................................... Claude Bekins
Deputy Assistant Secretary for International Economic Policy and Research.. . . Lawrence A. Fox
Deputy Assistant Secretary for International Commerce................................ Marinus van Gessel
Deputy Assistant Secretary for Resources and Trade Assistance.................... Seth M. Bodner
Deputy Assistant Secretary for Domestic Commerce...................................... Paul T. O’Day
Deputy Assistant Secretary for East-West Trade ............................................. Lewis W. Bowden
Deputy Assistant Secretary for Administrative Management........................ Judith S. Chadwick
Assistant Secretary for Tourism (Head of the U.S. Travel Service)................................... C. Langhorne Washburn
Deputy Assistant Secretary........................................................................................... Michael Miller
Deputy Assistant Secretary for Bicentennial Affairs................................................. Peter J. Malatesta
Director, Office of Foreign Direct Investment....................................................................
Assistant Director ........................................................................................................

Vacant
Vacant

Director, Office of Minority Business Enterprise................................................................
Deputy Director............................................................................................................

Alex M. Armendaris
Samuel J. Cornelius

Assistant Secretary for Science and Technology.......................................................
Deputy Assistant Secretary .............................................................................
Deputy Assistant Secretary for Product Standards........................................
Deputy Assistant Secretary and Director, Office of Environmental Quality
Director, National Bureau of Standards..........................................................
Director, National Technical Information Service ........................................
Commissioner of Patents (Patent Office).......................................................
Director, Office of Telecommunications.......................................................

Betsy Ancker-Johnson
David B. Chang
Francis LaQue
Sidney R. Galler
Richard W. Roberts
William T. Knox
C. Marshall Dann
John M. Richardson, Acting

Administrator, National Oceanic and Atmospheric Administration.................................
Deputy Administrator.................................................................................................
Associate Administrator...............................................................................................

Robert M. White
Howard W. Pollock
John W. Townsend, Jr.

Assistant Secretary for Maritime Affairs (Head of the Maritime Administration)...........
Deputy Assistant Secretary...........................................................................................

Robert J. Blackwell
Howard F. Casey

8

DEPARTMENT OF COMMERCE
Summary of Employment and Financing—Fiscal 1970 to 1974a
End of year employment
1970

Obligations (in thousands)

1971

1972

1973

1974

1970

1971

1972

1973

1974

General f unds:
General A d m inistratio n ..........................................
Social and Economic Statistics A dm inistration.
Economic Development A dm inistration.............

287
31,634
1.001

299
4,574
905
65

326
4,721
742
49

342
4,381
719
53

$6,070
154,364
271,765

$6,896
84,609
252,995

$7,484
56,657
284,133

b $9,533
61,753
326,875
42,528

b $9,386
58,841
239,999

Domestic and International Business
A dm inistration..........................................................
United States Travel Service...................................
Office of Foreign Direct Investments ...............
Office of Minority Business E nterprise...............

305
5,454
991
50

1,890
107
144
79

1,836
123
113
78

1,705
108
100
258

1,765
98
101
305

1,921
122
9
263

38,666
4,525
3,153
1,200

43,277
4,546
2,846
2,084

49,404
6,377
2,546
43,519

61,933
8,996
2,426
36,036

68,406
11,455
2,504
48,991

Science and Technology:
Patent Office .......................................................
National Bureau of S tandards.........................
National Technical Inform ation Service . . .

2,785
2,104

2,682
2,196

2,692
2,161

56,063
45,923

62,294
50,261

207

2,918
2,072
321
231

48,594
42,446

172

2,793
2,072
74
197

....................

67,234
52,286
1,495
5,348

71,908
61,220
1,632
5,045

Office of State Technical Services..................

290

2,424

National Oceanic and Atmospheric
Adm inistration .......................................................
Maritime A dm inistratio n ........................................
National Industrial Pollution Control Council .

9,123
1,596

12,170
1,458
11

12,532
1,564
9

12,254
1,540

12,544
1,480

179,219
303,833

287,686
478,759
298

338,422
516,670
312

364,631
719,169
320

417,609
581,121

Subtotal, General Funds..............................

50,750

27,639

27,179

27,037 27,376

1,054,125

1,304,911

1,460,733

1,760,563

1,619,052

O ther Fundsc ...............................................................

7,037

6,770

6,846

7,260

7,806

195,578

152,587

146,626

169,700

170,171

Total, All F u n d s ...........................................

57,787

34,409

34,025

34,297

35,1 82

1,249,703

1,457,498

1,607,359

1,930,263

1,789,223

a Am ounts for fiscal 1970 through 1973 have been adjusted so as to be comparable to the D epartm ent’s fiscal 1974 organization structure,
k Fiscal 1973 and 1974 obligations for General Adm inistration include obligations under the Department-wide special foreign currency program.
c Other funds include public enterprize, intra-governmental, and trust funds. Em ploym ent, but not obligations, is included for allocation accounts carried in the budget
schedules of other agencies. Advances and reimbursements between Commerce appropriation accounts are excluded.

CHAPTER II

GENERAL ADMINISTRATION
ADMINISTRATIVE MANAGEMENT
The Assistant Secretary for Administration

The Assistant Secretary for Administration conducts all
administrative management activities required in the
overall operation of the Department and, in addition,
provides administrative management services to the
Office of the Secretary and selected operating units. He
also exercises functional supervision over administrative
management activities throughout the Department.
During fiscal 1974, the Assistant Secretary focused on
the development of a Department-wide management by
objectives program and on upgrading the capabilities of
his staff for in-depth operational reviews. He also
continued to emphasize the task force approach to both
operational and organizational reviews.
Administrative Services and Procurement

Department procurement totalled $521.4 million, about
the same as last year.
Maritime ship construction
program ......................
All other procurement . . .
T o tal..........................

Fiscal 1973

Fiscal 1974

$343.4
181.0
$524.4

$281.6
239.8
$521.4

Of the $239.8 million, awards to small businesses
amounted to $76.0 million including $29.9 million in
set-asides. There was also $81.2 million awarded to
minority business enterprises, including $2.5 million
under the Small Business Administration’s “8(a)” pro­
gram.
Excess property, with an acquisition cost of $13.5
million, was transferred out of the Department. Reduc­
tions in inventory, equipment, and space requirements,
together with related improvements, produced cost
benefits of $3.5 million.
The Department (the 12th largest Federal energy user)
reduced its energy consumption 13.5 percent below
fiscal 1973. This reduction was principally due to the
efforts of the National Bureau of Standards.

Five Department field offices were collocated in the
Federal Office Building in Philadelphia. Four offices
were collocated at the Federal Plaza in New York City.
The Department reduced its motor vehicle accident rate
20 percent, and its injury frequency rate 4 percent,
below fiscal 1973. It also continued its record of
achievement under the Payroll Savings Plan and Com­
bined Federal Campaigns, exceeding its established goals
for the 11th straight year.
The Office of Administrative Services and Procurement
saved $1.2 million through the use of various procure­
ment techniques, as well as increased utilization of
manpower. It removed 7,460 cubic feet of records and
discontinued or consolidated 970 forms, saving an
additional $164,000. Its library circulated 201,515
books and periodicals and serviced 53,595 reference and
telephone requests. As a result of employee cross
training and other actions, the Office increased its
productivity by 5 percent.
Appeals

The Appeals Board considers private contractors' pro­
tests on decisions made under contracts which may be
appealed to the Secretary. The Board also handles
appeals of specified administrative actions in the fields
of maritime subsidies, export control, regulation of
imports of foreign excess property, and foreign direct
investments. In addition, the Board may be assigned
specified cases for review. The Board is quasi-judicial in
nature. Its goal is to handle cases expeditiously as well as
fairly, in a manner that will forestall litigation in court.
At the beginning of fiscal 1974 there were four cases
pending before the board; 18 new cases were presented
during the course of the year. Of these, 11 were settled
and 11 were carried over into fiscal 1975.
Audits

The Office of Audits continued to emphasize reviews of
program effectiveness and of the efficient and economic
use of resources. It also developed streamlined audit
methods to increase productivity.

During fiscal 1974 the Office issued 58 reports on the
internal operations of the Department. These reports
identified potential savings of $4.1 million on an annual
basis and $.8 million on a one-time basis. This represents
an increase of about $.5 million over the prior year.
The Office also issued 473 (and reviewed an additional
438) reports on the operations of the Department’s
contractors and grantees. This compares with 429
reports issued and 269 reviewed in fiscal 1973. Cost
savings from audits completed and reviewed during fiscal
1974 totalled $1.0 million, up $.1 million from fiscal
1973.
All in all, savings came to $5.9 million—a 360 percent
return on the Department’s investment in audit ac­
tivities.
Budget and Program Analysis

Work was continued on the integration of the Depart­
ment’s management by objectives program with its
budget formulation process. Special effort was given to
the development of major Departmental objectives and
specific program plans for their attainment, both of
which had to be consistent with, and supportive of,
proposed Administration goals and priorities.
Progress also continued on the Department’s manage­
ment reporting system. This system is designed to
provide managers and analysts with information neces­
sary to track program progress and evaluate program
accomplishments. Effort was directed toward the addi­
tion of performance measurements to the automated
portion of the system so as to allow comparison of
program performance against program plans and re­
sources.
Appropriations for fiscal 1974 totalled 51,553,177,000.
Of this amount, $1,445,093,000 was contained in the
regular appropriation act and $108,084,000 was con­
tained in supplemental appropriation acts. At year-end,
$36,615,000 was held in reserve for use in carrying out
fiscal 1975 programs.

Revised regulations implementing Title VI of the Civil
Rights Act became effective in July 1973. The revision
reflected recent developments in civil rights enforce­
ment. It specifically requires nondiscrimination in the
membership of planning and advisory bodies which are
an integral part of Federal financial assistance programs.
The Department appointed equal housing coordinators
for all of its operating units and major field installations.
It also established equal housing referral services in some
operating units.
Emergency Readiness

The Office of Emergency Readiness concentrated on
implementation of the Departmental Contingency Plan
for Emergency Operations. It completed organizational
arrangements for executive-policy emergency teams de­
signed to perform essential defense mobilization func­
tions. These teams are assigned to the Department’s
emergency operating facilities and could be activated in
a national defense emergency.
The Office coordinated a Departmental review of several
defense-related plans and exercises and of natural dis­
aster legislation. It also continued to provide support for
NATO civil emergency planning and civil wartime
agencies activities.
Financial Management Services

The Office of the Secretary accounting function was
centralized in one organization within the Office of
Financial Management Services. Previously the function
was split between two organizations, presenting signifi­
cant coordination problems both inside and outside the
Department.
A significant training effort was undertaken in connec­
tion with decentralization of the Office of Minority
Business Enterprise. Sessions were held in Washington
and the field to assist office employees in all financial
aspects associated with their relocation.
Interagency Auditor Training

Civil Rights Compliance

At the beginning of fiscal 1974, the Department had 24
pending discrimination complaints filed by either its
employees or applicants for employment. During the
year it received an additional 22 complaints; but it also
disposed of 29 complaints for a year-end carry over of
17. Of the 29 complaints closed, 25 required final
Departmental decision by the Director of Equal Employ­
ment Opportunity. To date, none of these decisions has
been reversed by the Civil Service Commission or the
courts.
11

Established in fiscal 1969, the Interagency Auditor
Center is the only Federal facility oriented to the needs
of the government auditors. Its students consist pri­
marily of Federal employees, but employees of State
and local governments—as well as of foreign govern­
ments—also participate.
By fiscal 1974 the number of courses had increased by
244 percent, enrollments by 303 percent, and revenues
by 372 percent over the base year of fiscal 1969.
Out-of-town courses were conducted in 17 locations.

Investigations and Security

The Office of Investigations and Security evaluated 581
full field investigations and conducted 23 administrative
and 14 criminal investigations involving employee mis­
conduct. Eight cases were referred to the FBI. The
Office completed 17 discrimination complaint cases and
12 investigations and inspections involving suspected
criminal activity, referring seven to the FBI. It also
completed 15 assignments to provide personal protec­
tion to the Secretary and others during East-West trade
conferences.
The Office initiated a system of security inspection and
contracted for an electronic alarm system for the Main
Commerce building in Washington.
Organization and Management Systems

The Office of Organization and Management Systems
conducted a number of major studies during fiscal 1974.
It reviewed the Department’s international business
policy, tourism, and procurement activities and in each
case recommended a streamlining of the organization
involved. It also developed a plan to strengthen domestic
business programs and evaluated the adequacy of safe­
guards against fraud, improper use of funds and other
financial abuses. Most of the recommendations in these
studies were either implemented in fiscal 1974 or were
being implemented at the end of the year.
One of the Office’s more significant contributions was
the full implementation of a Department-wide manage­
ment by objectives program. In fiscal 1974 this program
encompassed eight Presidential and 16 Secretarial objec­
tives, covering some 40 percent of Commerce’s activities.
It helped top management focus on the achievement of
specific program results of direct benefit to the public
and the economy.
In the area of automatic data processing, the Office
began development of a long-range planning system. It
revised its policy on feasibility studies to insure their
review before funds are requested. It also improved
software management procedures and developed a
Department-wide software inventory.
The Office also expanded the automated cost-based
budget system at the Patent Office to incorporate the
reporting requirements for the management by objec­
tives program, and completed a personal property
management inventory system for the Patent Office.

19.8 in 1973 to 20.7 in 1974. The percentage of women
in higher grades (GS-12 and above) increased from 6.9
percent to 7.7 percent. This progress reflects continued
results of equal opportunity efforts instituted in the past
few years, as well as increased availability of qualified
minority and female competitors.
Special efforts were made to strengthen the managerial
skills of Department executives. These included sys­
tematic identification of all managers with executive
potential, specific identification and training of 683
individuals for special development in fiscal 1974, and
formulation of individual development plans for all
Department managers.
Department employment rose by 880 (about 2 1/2
percent) from June 1973 to June 1974. Most of the
increase was in temporary and other non-permanent
personnel.
Full-time permanent
T e m p o r a r y and
other....................
Total ................

June 1973 June 1974 Change
28,333
28,592
+259
5,964
34,297

6,585
35,177

+621
+880

Planning and Evaluation

During fiscal 1974, the Office of Planning and Evalua­
tion continued to operate as a management task force
under the direct supervision of the Assistant Secretary
for Administration. It reviewed material for the Depart­
ment’s management by objectives program and inter­
preted Presidential initiatives in the areas of program
planning, management control, and operational evalua­
tion. It conducted, or helped to conduct, major studies
of program, operational, or management problems.
These included studies of alternative ways to improve
the competitive position of the United States maritime
industry, and of the objectives of the National Oceanic
and Atmospheric Administration’s marine activities.
The Office also conducted more limited analyses of such
Commerce activities as voluntary energy labeling, fire
safety, and preparation for the 1976 bicentennial.
Publications and Printing

Sales of Department printed materials increased 22.5
percent in fiscal 1974 to a new record of $22.6
million. Included in that total were sales of charts
and maps, patents and trademarks, and technical
Personnel
reports. Supporting the sale of its publications, the
The Department continued its efforts to assure equal Department produced some 465 flyers and other promo­
employment opportunity for all. The percentage of tional pieces. For a number of years the Department of
minority employees in its full-time work force rose from Commerce has been the leading Federal Government
12

originator of publications sold through the Superin­
tendent of Documents sales systems.
The Office of Publications, which produces most of the
Department’s in-house printing, turned out 149 million
pages in its main plant in Washington, D.C. At Springfield, Virginia, site of the Office’s Micrographic Division,
70 million pages were printed, and microfiche duplicates
totalled 3.3 million. Value of work at the Washington
and Springfield sites totalled $5.6 million, up 4 percent
from the previous year.
The Office’s Micrographics Division installed unique
microfiche enlargement and duplication equipment
which, through consolidation of previously separate
production steps, is saving an estimated $195,000 a year.
The Office also converted its main printing plant to a
new system of producing printing negatives and installed
a new automated plate processor. Estimated savings of
$14,000 a year will result from these changes.
The Office launched an intensive study of Commerce
publications with the goal of producing a Department
design manual. This study is being carried out in
coordination with efforts of the White House-sponsored
National Endowment for the Arts to upgrade the
appearance of Government publications. The Office also
completed editorial work on a new edition of the
Department’s “Handbook of Publishing and Printing.”
PUBLIC AFFAIRS
General

S

The Department’s Office of Communications dis­
seminated public information on Departmental activities
through many different news media outlets during fiscal
1974. One outlet was the 17 press conferences the
Secretary of Commerce held in Washington. In addition,
over 2,700 news releases were issued, hundreds of tape
recordings were made by the Department’s Broadcast
Service, many articles carrying the Secretary’s byline
were prepared, news film clips were produced, and news
was disseminated by interviews, briefings, and con­
ferences. In addition to his many contacts with corre­
spondents, editors, writers, and broadcasters in the
Nation’s capital, the Secretary made 69 out-of-town
news appearances.
Energy conservation was one of the major news events
of the year, with the Secretary unveiling a nationwide
program of energy conservation for industry in October
in which he urged adoption of an energy management
program. He also announced in December formation of
the National Industrial Energy Conservation Council,
made up of 21 of the Nation’s top industrialists. The
energy work of the Department’s National Bureau of
Standards also proved extremely newsworthy. This
13

Bureau has been studying methods of improved building
design to conserve energy. It also began an expanded
research study of solar energy and developed a new
Energy Conservation System for Industry and Com­
merce jointly with the Federal Energy Administration.
This System, if fully implemented, could result in energy
savings by industry alone of the energy equivalent of 1.4
million barrels of oil a day. The Department also began a
program of voluntary labeling of appliances showing
with an easily readable label the energy consumption of
each appliance. The labeling program began in May with
the labeling of room air conditioners.
But many of the year’s newsmaking events were as
diversified as the Department, ranging from the admis­
sion of women for the first time to the U.S. Merchant
Marine Academy (administered by the Department’s
Maritime Administration) to the Secretary’s trade mis­
sion to the Soviet Union, Romania, Bulgaria, the United
Kingdom, and Belgium in April. There were major
announcements on formation of the Commerce Action
Group for the Near East to help American companies
take advantage of the anticipated market boom in the
Near East as a result of climbing oil revenues, and on
export controls of instruments and equipment used in
crime control and detection that were placed on
shipments to 10 Eastern European countries, the Soviet
Union, Outer Mongolia, and the People’s Republic of
China. Then there was a major agreement signed
between two Commerce operating units—the Maritime
Administration and the Office of Minority Business
Enterprise—to expand minority business involvement in
the shipbuilding industry, and announcement of the
Minority Business Enterprise program in which 15
National Football League players secured 1,770 manage­
ment training jobs for minority college students. Dedica­
tion in May by the Secretary of the $11.5 million
Federal Pavilion at “Expo ’74,” the International Ex­
position on the Environment at Spokane, Washington,
also received extensive media coverage.
News Room

The Department’s News Room issued 2,725 press
releases, responded to approximately 15,000 inquiries
from the news media and public, and fulfilled some
2,500 media requests for Commerce publications. In
addition, the News Room handled distribution of over
500 recurring releases, including foreign trade and
statistical reports of the Bureau of International Com­
merce, and economic reports of the Bureau of Economic
Analysis, which are made available to editors on a.
demand basis. The News Room prepared and distributed
251 issues of the daily “Commerce News Digest,” 24
issues of the “Magazine Digest,” 12 issues of the
monthly “Communications Digest,” and two special

OFFICE OF GENERAL COUNSEL
issues on the metric system and the energy crisis. The
News Room also processed 295 speech texts.
General
The General Counsel is the chief law officer of the
Broadcast Service
Department and legal adviser to the Secretary and other
The Commerce Broadcast Service provided special daily Commerce officials. He is responsible for advice on all
economic reports to a number of networks and, in legal matters and related policy questions, except for
addition, to many of the Nation’s 50-watt radio stations. those involved in the issuance of patents or the
These reports reached approximately 1,600 stations. registration of trademarks, and provides legal guidance
They were also translated into Spanish and provided to to all Department operating units. He also provides legal
32 Spanish-speaking radio stations. Reports of regional services to operating units which do not have legal staffs
and local interest were distributed to various sections of of their own.
the country on a daily basis, including special interest
reports to minority-oriented broadcasting stations. Each Legislation and Implementing Regulations
weekend a recorded 60-second economic wrap-up was
distributed to both radio and television stations. Also The General Counsel is responsible for preparation or
35-mm color slides were forwarded to television stations review of Departmental legislative proposals, expressions
using the material. Approximately 110 radio stations of official opinion as to the merits of proposed or
regularly aired a weekly Commerce 3 1/2-minute feature pending legislation, statements concerning such legisla­
program produced and distributed by the Office of tion to be made before Congress, and advice to the
Communications. Over 20,000 calls were received re­ President on enrolled enactments. He is also responsible
for preparation or review of Departmental comments on
questing “Spotmaster” recordings.
environmental regulations proposed by other agencies.
He is responsible for representing the Department with
Publications
the Office of Management and Budget and other Federal
agencies.
Publication of the Department’s biweekly official maga­
zine, “Commerce Today,” continued as an information The Department developed 22 detailed legislative pro­
service to the Nation’s business and industrial com­ posals during the fiscal year and received requests for
munity. This magazine provides its subscribers with comment on over 900 items of legislation, including
authoritative interpretation of Commerce policies, pro­ approximately 500 requests from the Congress. The
grams, and procedures, as well as information about Department also received 264 requests to comment on
other governmental activity affecting the American agency regulations in the environmental field; par­
ticularly noteworthy were effluent guidelines for 30
businessman.
industries under the Federal Water Pollution Control
Early in 1974, the magazine was restyled to make more Act. Departmental witnesses testified at over 90 Con­
efficient use of page space without sacrificing content in gressional Committee hearings (exclusive of appro­
a successful effort to reduce its steadily increasing priation hearings).
subscription rate. A rate increase from $33 to $42.40
was announced in January, but the rate was reduced to Laws enacted during the year which involved significant
$29.80 in March. A highly successful promotion cam­ new programs or administrative responsibilities of the
paign was launched in May, bringing total paid subscrip­ Department were:
tions to nearly 10,500, an increase of 7 percent above
Amendments to the National Sea Grant College and
the level earlier in the year.
Program Act of 1966 (P.L. 93-73).
Special “World Trade Outlook” issues were published in
Transferring domestic travel promotion functions
July and January. At the direction qf the Secretary, new
from the Department of the Interior to the Depart­
emphasis was given to the coverage of domestic business
ment of Commerce (P.L. 93-193).
news in order to divide the magazine equally between
The Endangered Species Act of 1973 (P.L. 93-205).
domestic and international news.

The Office also updated the Department brochure, Administration
“Serving a Growing Economy and a Growing People,” to Legal services were provided in support of Department­
reflect a number of changes that have taken place.
wide activities such as conflict of interest, personnel,

14

budget and appropriations, equal opportunity, procure­
ment, internal organization, tort and other claims,
property control and rulemaking.
Approximately 1,120 procurement contracts and grant
documents were reviewed, including 163 contracts and
grants for the Office of Minority Business Enterprise.
Legal counsel was also furnished on contract-related
problems including disputes, terminations, appeals, and
related involvement with the Comptroller General and
with the Department of Justice.
There was substantial activity calling for extensive legal
assistance involving census law, the Freedom of Informa­
tion Act, the Federal Advisory Committee Act and
related litigation. As Departmental authority on admin­
istrative law, the Office of General Counsel also provided
legal counsel for its legal offices and units on a variety of
questions arising out of proposed legislation and other
matters, and acted to coordinate recommendations of
the Administrative Conference of the United States
applicable to the work of the Department.
Domestic and International Business

Legal services were provided to the Domestic and
International Business Administration, the Social and
Economic Statistics Administration, and to the United
States Travel Service.
In the area of domestic commerce and business, counsel
was provided on minimum wage laws, pension plans, tax
proposals and antitrust issues. Legal assistance was also
provided on administration of, as well as a legal
challenge to, the Department’s defense priority system
for certain defense-related materials under the Defense
Production Act.
Other litigation involved the Justice Department’s anti­
trust suit against IBM. As part of this suit, IBM has
sought access to various Department documents which
contain proprietary information supplied by individual
firms and for which there are statutory privileges against
disclosure.
Energy and environmental issues received considerable
attention. The Office participated in development of
proposals regarding noise control, pollution from pesti­
cides and solid wastes, and the effects of strip mining. It
also worked with interagency groups to develop pro­
posals regarding fuel allocation and the licensing and
siting of nuclear power plants.
Policy guidance and extensive legal services were pro­
vided on the Department’s export control program.
These included formulating and drafting the Adminis­

15

tration’s proposal to amend and extend the Export
Administration Act of 1969, working with Con­
gressional Committees during their consideration of
the proposal, preparing regulations to monitor com­
modities in short supply, developing licensing meth­
ods for commodities subject to short supply export
controls, granting exceptions on hardship grounds,
representing the Office of Export Administration
before the Appeals Board, and work involving
violations of the program.
The trade adjustment assistance program also received
attention, which included reviewing adjustment pro­
posals and drafting commercial documents for financial
and technical assistance loans and loan guarantees.
Counsel was provided to the U.S. Travel Service on
programs to encourage foreign tourists to visit the
United States and on the possible establishment of a
National Tourism Resources Board.
In the area o,f international trade and commerce, legal
assistance involved expansion of trade between the
United States and the Soviet Union, the People’s
Republic of China, and the countries of Eastern Europe.
Counsel was also provided on such matters as: (1) the
textile import program, including a suit brought against
the Government by the Consumer’s Union challenging
the procedures under which bilateral textile agreements
were negotiated; (2) international expositions, par­
ticularly the Spokane “ Expo ’74” where work included
formulating the drafting legislation to authorize Govern­
ment participation, preparing all required legal docu­
ments, and providing counsel to the U.S. Commissioner
General; (3) trade and tariff legislation in connection
with the proposed Trade Reform Act, including inter­
agency negotiations, drafting amendments and Depart­
mental submissions; and (4) preparation for the up­
coming trade negotiations, including the establishment
of industry advisory committees.
Science and Technology

Legal services were provided to the Assistant Secretary
for Science and Technology, the National Bureau of
Standards, Patent Office, National Technical Informa­
tion Service, Office of Telecommunications, and Office
of Environmental Affairs.
Advice covered such major areas as fire research and
safety, international voluntary standards, patent policy,
the metric system, energy conservation, energy research
and development, and environmental affairs.
In accordance with former President Nixon’s directive in
his energy message of January 1974, the Office of the

General Counsel, in coordination with the Federal
Energy Office, drafted legislation to promote energy
conservation by requiring the labeling of major appli­
ances and motor vehicles with respect to their energy use
and efficiency. This legislation, cited as the “National
Appliance and Motor Vehicle Energy Labeling Act of
1974,” was submitted to the Congress in March 1974.
Substantial legal services were also provided in connection
with the increasing environmental activities of the Depart­
ment. For example, legal comments were provided on
regulations issued under the Clean Air Act and the Federal
Water Pollution Control Act Amendments of 1972, on
environmental impact statements submitted for Depart­
mental review, and on environmental legislation.

setting and monitoring overall policy guidelines for the
Department. Its staff also serves as a special problem­
solving and study group on matters of direct concern to
the Secretary.
The main focus of the Office during fiscal 1974 was
shaped by the increasing demand and price for certain
resources and the resultant impact on U.S. industrial
and commercial activities. Policy studies undertaken
included industrial energy conservation practices, the
impact of the oil embargo on petroleum availability,
international food and commodity requirements, coal
and natural gas availability, and waste recycling. Policy
reviews undertaken included R&D recoupment, the
financial difficulties of U.S.-flag international air car­
riers, and U.S. policies for the World Food Conference
and trade negotiations. The Office also assisted in
POLICY DEVELOPMENT
developing Departmental policy and programs relating
The Office of Policy Development serves as the Secre­ to the enhancement of productivity in commerce and
tary’s advisor on Departmental policy. The Office aids in industry.

16

CHAPTER ill

SOCIAL AND ECONOMIC STATISTICS

conference sponsored by the London Financial Times in
February 1974.
Under the chairmanship of the Assistant Secretary, the
The Assistant Secretary for Economic Affairs is the Department’s Economic Advisory Board met quarterly
Chief Economist of the Department and principal with the Secretary of Commerce to review economic
advisor to the Secretary on domestic and international developments and offer advice on policy issues.
economic policy issues. He serves as the Department’s
liaison with the Council of Economic Advisers and
SOCIAL AND ECONOMIC STATISTICS
economic officials of the Government. He also exercises
ADMINISTRATION
policy direction and general supervision over the Social
and Economic Statistics Administration.
The Social and Economic Statistics Administration
as a center for collecting, compiling, analyzing,
In fiscal 1974, the Assistant Secretary for Economic serves
and
publishing
a broad range of general purpose statistics
Affairs continued to serve as one of the Administration’s dealing with Social,
economic, and demographic data. It
chief economic spokesmen. In this capacity, he con­ (1) conducts censuses,
and.other data-gathering
ducted regular quarterly briefings for the press on the activities designed to surveys,
make
available
data
Gross National Product and prepared biweekly articles relating to the social and economic statistical
activities
and
on the economy for publication in Commerce Today.
characteristics of the population and enterprises of the
During Phase IV of the Economic Stabilization Program, Nation, (2) maintains the economic accounts of the
the Assistant Secretary participated with other members United States, (3) serves as the central research organiza­
of the Cost of Living Council’s Policy Review Com­ tion of the Department on the functioning of the
mittee in a series of hearings on requests for exceptions economy, (4) provides special analyses to government
to price controls. He also addressed a number of business officials on the effects of alternative economic policies,
groups as part of the Cost of Living Council's program to and (5) conducts special statistical studies on various
enlist the cooperation of business.
segments of the economy. It also has responsibility for
the preparation, interpretation, and projection of meas­
The Assistant Secretary represented the United States at ures
of aggregate U.S. economic activity.
the International Economic Symposium, held at Alpbach, Austria, in September 1973. As the Commerce The Administration carries out its programs through its
representative on the U.S. delegation, he also met with two component organizations, the Bureau of Economic
the Economic Policy Committee of the Organization for Analysis and the Bureau of the Census.
Economic Cooperation and Development.
During the year Administration management gave partic­
In November 1973, the Assistant Secretary and the ular
to how the Bureau of the Census might
Chief Statistician of Canada announced the results of the betteremphasis
to the challenges of the 20th Decennial
reconciliation of United States-Canada bilateral trade Census.respond
A
key
factor
is the Bureau’s computer capacity.
statistics for 1971 and 1972. This represented the It has, therefore, proposed
a computer facility designed
successful culmination of a joint program undertaken in specifically as a computer installation.
proposal has
1971 to provide a better basis for trade negotiations been approved by the General ServicesThis
Administration.
between the two countries. A similar reconciliation of As recommended, this building would be in place and
balance of payments statistics was concluded in March operational well in advance of the 1980 Census.
1974.
At hearings conducted by the Senate Banking Com­ A comprehensive review was made of all Census Bureau
mittee’s Subcommittee on International Finance in early publications, and comparisons made of the time lag
1974, the Assistant Secretary testified on the historical between the period covered and the release of the
pattern of foreign investment in the United States. He publication. This review determined that release dates
also delivered a major address on this subject at a for high priority publications, including the periodic
THE ASSISTANT SECRETARY FOR
ECONOMIC AFFAIRS

17

censuses and one-time surveys, have been advanced
substantially. For the 1972 Economic Censuses, process­
ing of publications up to and including printing is being
monitored, and all will be released earlier than was the
case for the 1967 Economic Censuses—some by as much
as 12 months.
This year witnessed a number of innovative develop­
ments that will improve service to data users.
“CARPOL,” a computerized carpooling program, was
released at the onset of the critical gasoline shortage in
the fall of 1973. More than 4,000 copies of the user’s
manual were distributed by the Federal Energy Office.
“UNIMATCH” is a computerized system which will
perform both address matching and general statistical
matching. “CENTS” was developed to facilitate the
tabulation of population and housing data. It provides a
flexible, easy-to-use report generating system that can be
used by both non-programmers and programmers. “ZIPMATCH” is a system developed for the U.S. Postal
Service to assign zipcodes to mailing pieces.
Other initiatives included work on socio-economic data
from the 1970 Census of Population and Housing, and
these were computerized into narrative profiles. More
than 800 socio-economic characteristics from the 1970
Census of Population and Housing for places not
included in the standard census publications were made
available through a specially developed computer pro­
gram. An Index to the Published Tables of the 1970
census was also prepared, to provide a complete cross
reference between any specific subject covered and the
tables where it is shown.
Other data use publications intended as aids to data
users included the 1972 edition of the Census County
and City Data Book, the Mini-Guide to the 1972
Economic Censuses, and a historical catalog of all Census
publications from 1790 through 1972.
BUREAU OF ECONOMIC ANALYSIS
Mission

The Bureau of Economic Analysis provides basic meas­
ures and analyses of the state of the U.S. economy,
through the preparation, development, and interpreta­
tion of national economic accounts. These consist of
(1) the national income and product accounts, sum­
marized by the Gross National Product, (2) wealth
accounts, which show the business and other com­
ponents of national wealth, (3) input-output accounts,
which trace the interrelationships among industrial
markets, (4) personal income and related economic
series by geographic area, and (5) the U.S. balance of
international payments. Work on national accounts is
supplemented by the preparation and analysis of other
measures of business activity, such as the Plant and
Equipment Survey, which provides information on
18

business investment, econometric models of the U.S.,
and a system of economic indicators. Data and analyses
prepared by the Bureau are disseminated mainly through
its monthly publications, the Survey o f Current Busi­
ness, Business Conditions Digest, and Defense Indicators.
Econometric Model

A new version of the Bureau’s quarterly econometric
model of the United States was published in July 1973.
An analysis of the model’s use as a forecasting instru­
ment was published in August 1973.
Balance of Payments

Annual data on U.S. international transactions with
Australia and South Africa were separately compiled and
published for the first time in the June 1974 Survey.
Data on income receipts from U.S. direct investments
abroad were revised for 1966-73 to eliminate over­
statements in income receipts from some foreign pro­
ducing affiliates of U.S. petroleum companies. A special
survey revealed the overstatement has become sizable in
recent years. The revisions were published in the June
1974 Survey.
Regional Economics

In conjunction with the Department of Agriculture, the
Bureau completed a set of alternative economic projec­
tions to complement the original set of projections based
on the so-called “C-Series” population projections. The
projections were made for the United States, 50 States
plus the District of Columbia, 253 Standard Metro­
politan Statistical Areas, 173 economic areas, 206 water
resource planning areas, and the non-metropolitan por- «
tions of economic and water resource areas. They are for
intervals of ten years between 1980 and 2020, covering
population and employment and income detail for 39
industries. Projections of other measures such as land use
and various types of agricultural and nonagricultural
production are also included.
The decennial employment series, contained in Growth
Patterns in Employment by County, 1940-1950 and
1950-1960, have been extended to include data for
1970. These employment series by industry are from the
several Censuses of Population. The updated series will
be published in a single volume entitled Regional
Employment by Industry, 1940-1950, 1940-1970,
Decennial Series for the United States, Regions, States,
and Counties.
In the May 1974 issue of the Survey, in an article
entitled “Local Area Personal Income,” there were
presented for the first time income measures for nearly
2,500 counties that lie outside the Standard Metro­
politan Statistical Areas of the United States. These

measures included total personal income and per capita
personal income by place of residence. In addition, there
were presented labor and proprietors’ income by indus­
try. A new feature was the inclusion of an explicit
“residence adjustment” which links place of work to
place of residence for labor and proprietors’ income.

turers and provides actual and preferred utilization rates
by industry and by asset-size class. The series are
available for year-end 1965, for midyear and year-end
1966 and 1967, and for the end of each quarter from
1968 through 1973. The data will be released on a
quarterly basis in the future.

Business Capital

Expenditures for Pollution Abatement

Annual estimates of the Nation’s stock of fixed nonresidential business capital for the years 1925-73, by major
industry groups and detailed types of assets, were
published in Fixed Nonresidential Business Capital in
the United States, 1925-73, available from the Depart­
ment’s National Technical Information Service. A sum­
mary of these estimates appeared in the March 1974
issue of the Survey.

A comprehensive program to estimate the expenditures
made by consumers, businesses and government for
pollution control was initiated in fiscal year 1973.
Estimates of business capital expenditures for air and
water pollution abatement, which appeared in the
July 1974 Survey, represent the first published results
of this program. The data will be published on an annual
basis.

The 1967 Input-Output Study

BUREAU OF THE CENSUS

Benchmark input-output tables for the United States for
the year 1967 were completed in the second half of
fiscal 1974. The 85-industry tables were published in the
February 1974 Survey, along with discussion of con­
cepts, relation to the national income accounts, applica­
tions of the tables in economic analysis, sources, and
estimating techniques. These tables have been made
available for sale on computer tape at the 367-industry
and 484-industry levels of detail, as well as at the
85-industry level.

Mission

Reliability of GNP Estimates

Economic Censuses

A paper giving the results of a study of the reliability of
the quarterly GNP estimates Reliability o f the Quarterly
National Income and Product Accounts o f the United
States, 1947-71, was presented at the Thirteenth General
Conference of the International Association for
Research in Income and Wealth. This paper was also
published in the March 1974 issue of the Review o f
Income and Wealth and as a Bureau Staff Paper.
Spending by Foreign Affiliates

The Bureau of the Census collects and publishes basic
statistics concerning the population and the economy of
the Nation in order to assist the Congress, the Executive
Branch, and the general public in the interpretation and
evaluation of economic and social developments. The
Bureau publishes a wide variety of statistical data and
provides special tabulations of statistical information for
government
It and private users.
Emphasis during fiscal 1974 centered on completion
of clerical processing and analytical review of the
data needed to publish 1972 census results. All pre­
liminary reports for the Census of Business (retail
and, wholesale trade and selected service industries),
the Census of Construction Industries, the Census of
Manufactures, and the Census of Mineral Industries
were issued during the year. Also released were
final publications of the National Travel Survey,
the Truck Inventory and Use Survey, and several
state reports of the Census of Business trade
areas.
An unprecedented effort was made to publicize results
of the 1972 Economic Censuses. Press releases were
issued to newspapers, radio-TV outlets, trade associa­
tions, and newsletters. About 80,000 releases were
mailed.

Revision of two data series covering property, plant, and
equipment expenditures and sales by majority-owned
foreign affiliates of U.S. companies for the period
1966-72 was completed. The work included reviewing
sample data for consistency and re-benchmarking the
sample data to the 1966 census of U.S. direct invest­
ments abroad. Revised estimates of affiliates’ property,
plant, and equipment expenditures were published in
Census of Governments
December 1973.
The data collection phase of the 1972 Census of
Utilization of Manufacturing Capacity
Governments was completed, and all data reviewed,
A new series on capacity utilization was introduced in edited and entered onto computer tape. Ten of 17 final
the July 1974 Survey. The series covers all manufac­ reports had been issued by the end of fiscal 1974.
19

Agriculture Census

Funds for the 1974 Census of Agriculture were released
late in September, permitting resumption of planning
after more than 12 months suspension. A combined
pretest and dress rehearsal was conducted by mail in 11
geographically and agriculturally dispersed counties in
January, followed by two follow-ups and field interviews
of a sample of both respondents and non-respondents.
Work began on the construction of the mailing list for
the Census with receipt of address lists from various
administrative sources.
The public information program to encourage coopera­
tion with the 1974 Census of Agriculture will make
greater use of modem electronic media techniques than
ever before. Spot announcements have been prepared by
Loretta Lynn, a country music star, and Bill Baird, a
well-known TV Puppeteer. They will be released during
the time when data are being collected.
Population and Housing

In fiscal 1974, the first preparatory funds for the 1980
Census of Population and Housing were authorized and
formal planning activities initiated on a number of
fronts. Plans were developed for a major effort to elicit
information on 1980 census data needs from a broad
range of census users and potential users. To meet the
expanding data needs of State and local governments for
reapportionment and redistricting purposes, a working
relationship was established with the National Legislative
Conference and similar organizations. Because of the
critical importance of the underenumeration problem, a
large-scale staff effort to develop procedures to improve
coverage was begun. In addition, discussions were under­
taken to establish continuing and organized channels of
communication with the black and Spanish-ancestry
communities to help develop more effective enumera­
tion approaches.
Current Surveys

Effective with the statistics for January 1974, the
Bureau is publishing U.S. import data a “c.i.f.” (cost,
insurance, and freight) and a “f.a.s.” (freight alongside
ship) basis—both in addition to the Customs value basis
which has traditionally been reported. As most other
countries report their import data on a c.i.f. basis, the
presentation of the U.S. import data on a similar basis
makes our statistics more comparable with those of our
trading partners, permitting better analysis of the com­
petitive impact of specific imports on the domestic
market. The f.a.s. valuation is on the same basis as that
used for valuing U.S. exports, and is the one most
suitable for balance of payments computations.
20

More reliable data on persons of Spanish origin were
published by doubling the number of Spanish origin
persons included in the Current Population Survey of
March of each year. Annual reports are being prepared
on the demographic, social, and economic characteristics
of persons of Spanish origin.
Data on State and local government adjusted taxes and
intergovernmental revenues during fiscal year 1973 were
provided to the Department of the Treasury for use in
implementing the Federal Revenue Sharing Program.
Special Surveys and Projects

The final phase of data collection for the Consumer
Expenditure Survey was completed during the year, and
results from the earlier phases began to flow to the
Bureau of Labor Statistics. These data form the basis for
revising the Consumer Price Index. Data collection was
begun to develop a sampling frame for outlets in which
prices will be collected for the Consumer Price Index
throughout the decade.
The Bureau has provided extensive technical advice to
the Government of Saudi Arabia on planning for
population and housing censuses. This assistance has
included on-site guidance from Bureau specialists in
census design, training, and data processing. Following a
meeting in late June between the Saudi Minister of State
for Finance and the National Economy and the De­
partment’s Assistant Secretary for Economic Affairs, the
Bureau recruited a highly qualified population cen­
sus advisor to provide one year of on-site assistance,
and has also made arrangements to provide short-term
assistance in the development of an industrial statistics
base.
A complete set of State and county population estimates
for July 1972, and per capita income estimates for 1971
were transmitted to the Office of Revenue Sharing.
County population estimates were prepared for 39
States as a part of the Federal-State Cooperative Pro­
gram.
At the request of the Department of Housing and Urban
Development the Bureau undertook a survey to measure
placements of new mobile homes. This survey will
provide data now lacking for a significant portion of low
cost housing.
The Bureau also initiated a program which will provide
quarterly information on new housing started, com­
pleted, and under construction, in selected metropolitan
areas. This report will be supplemented each year to
show selected characteristics of these structures. This is
the first time such information will be available for a
local area.

Other Activities

Improvements

The Bureau was asked by the Office of Management and
Budget to assist them, through the Federal Regional
Councils, with a prototype Socio Economic Demographic
Information System in San Francisco. Two information
specialists were assigned to the San Francisco Office
during the year. Procedures were developed for pro­
viding information on such projects as housing defaults,
child day-care center locations, and carpooling.
The Bureau’s Field Division initiated a mileage reduction
program for most ongoing surveys in conjunction with
the overall effort to conserve energy. The result was a
savings of nearly two and one-half million miles, or
11.7% of 1973 mileage. The Field Division, which
conducts the Bureau’s direct interview surveys, through
its 12 regional offices, incurs approximately 96% of all
Social and Economic Statistics Administration mileage.
In conjunction with local agencies of government and
regional planning councils, the Bureau has begun the
development of a standardized set of geographic base
files on all Standard Metropolitan Statistical Areas in the
United States.

The Bureau prepared a book-length monograph entitled
Population o f the United States, Trends and Prospects:
1950-1990 as part of the background material for the
World Population Conference in August at Bucharest,
Rumania. This was one of 57 similar “country state­
ments” prepared by cooperating countries. The report
included information on the historical growth of popula­
tion in the United States and on the components of
growth-births, deaths, and net immigration. It also
covered changes since 1950 in regard to fertility differ­
entials, marriage, education, migration, and ethnic com­
position of the population; recent employment, occupa­
tion, and income trends; and projections of population
to 1990 in terms of age, school enrollment, labor force
participation, and household formation.
An updated Census Guide to Programs and Publications:
Subjects and Areas was issued early in the fiscal year. An
Historical Catalog o f Census Publications: 1790 through
1972 was submitted for printing to be issued in the fall
of calendar 1974. The 1973 Pocket Data Book was
issued in March 1974.

SOCIAL AND ECONOMIC STATISTICS ADMINISTRATION

Reports Published by the Bureau of the Census, Fiscal 1970-74
1970
Current Program:
Retail, Wholesale, and Selected Service Trade S ta tis tic s ....................
Manufacturing and Industrial Statistics .................................................
Current Population S urvey............................................................................
Construction S ta tistic s..................................................................................
Housing Statistics .........................................................................................
Agriculture Statistics ..................................................................................
State and Local G ov ernm en ts.....................................................................
Foreign Trade Statistics..................................................................................
Statistical Abstracts and Special R ep o rts.................................................
Economic Statistics and Surveys ...............................................................
Subtotal for Current Programs .................................................
Censuses:
1970 ................................................. ...

Economic:

1967............................................................................................

21

1972

1973

1974

80
1,150
71
75
17
17
25
128
123
5

108
624
57
85
8
13
22
196
184
15

11 1
652
52
86
22
27
140
183
59

80
630
81
20
30
139
102
18
1

1,691

1,312

1,339

1,202

1,243

1
33
62

533

2
327

295

140

241

407

8

14
351
2,042

159
15
1,114
2,426

3,138
69
3,544
4,883

3
2
46
50
143
539
1,741

8
4
873
22
49
1,096
2,339

Agriculture: 1969 .........................................................................................
Subtotal for Censuses .....................................................................
Total all re p o rts ...............................................................

1971

564
20
1 16
22

CHAPTER IV

ECONOMIC DEVELOPMENT

The Assistant Secretary
The Assistant Secretary for Economic Development
heads the Economic Development Administration-the
Commerce Department operating unit that provides
financial assistance to help areas of the Nation with
serious unemployment problems plan and carry out
programs to create jobs and increase incomes. The
Assistant Secretary advises the Secretary on economic
development in the States, multi-county districts, and
local communities. He represents the Department of
Commerce and the Federal Government in developing
and coordinating programs to support industrial and
commercial growth in economically undeveloped areas
of the Nation.
Mission of the Economic Development Administration
The mission of the Economic Development Adminis­
tration is to help create jobs and increase incomes in
economically lagging areas of the Nation. In fiscal 1974
the Administration placed special emphasis on assistance
to communities and States facing high unemployment
because of cutbacks in military activities. The Public
Works and Economic Development Act of 1965 as
amended (42 USC 3121 et seq.) authorizes the Agency
to provide financial, planning, and technical assistance to
encourage long-range industrial and commercial growth
in qualified areas. The Act also authorizes grants to help
create immediate jobs through the construction of
public facilities in areas of high unemployment.
Economic Development Assistance
During fiscal 1974 the Economic Development Admin­
istration approved:
• $174 million for 456 public works projects includ­
ing $38.7 million for 190 public works impact
projects to help create immediate jobs and $135.3 mil­
lion for 266 projects supporting long-range planning
programs to create permanent jobs through orderly,
diversified economic growth.
• $20 million for business development loans and
working capital guarantees.
• $17.9 million for 322 technical assistance projects,
including $7.5 million for 79 grants to help communi­
22

ties plan long-range economic growth to combat
unemployment anticipated in connection with cut­
backs in military activities.
• $7.7 million for economic development planning at
local, multi-county district, and State levels.
Basic Programs
The Economic Development Administration makes
grants and loans to help local communities build
facilities to encourage private enterprise to expand and
create new jobs. Funds are provided to help develop
industrial areas, transportation facilities, job-training
centers, and water and sewer systems.
The Administration makes long-term, low-interest loans
to help expand or establish job-generating activities.
Technical assistance is provided to help solve problems
blocking growth.
Grants are provided to help areas, multi-county eco­
nomic development districts, Indian reservations, and
States plan activities essential to orderly, diversified
economic development.
Qualified Areas
Qualification for assistance from the Economic Devel­
opment Administration, under provisions of the Public
Works and Economic Development Act of 1965,
generally is based on high unemployment or
underemployment.
Qualified areas are geographic units such as counties or
their equivalents, Indian reservations, cities or parts of
cities, or labor areas.
On June 30, 1974, there were 1,780 areas qualified for
assistance. This included 335 areas qualified under
Title 1 for public works grants only. The other 1,445
areas were qualified for the full range of benefits—public
works loans and grants, business loans, and planning and
technical assistance.
The Administration can provide technical assistance to
any area of the Nation where serious problems of
unemployment exist or are anticipated.

Planning Program

The multi-county economic development district is
the key element of the Economic Development
Administration’s planning program. On June 30, 1974,
there were 157 districts operating in 40 States.
The aim of the district program is to encourage adjacent
jurisdictions to work together to overcome regional
problems blocking growth and to create jobs for
residents of economically lagging areas.
The 157 operating economic development districts
contained 1,234 counties and 256 growth centerscommunities that can provide jobs and services for

unemployed and underemployed residents of the
district.
Redevelopment areas participating in the district
program are eligible for bonuses of 10 percent above
what they would normally receive in public works
grants.
In fiscal 1974, the Administration approved 143 grants
for $6.2 million to help pay administrative costs of the
district staffs.
In addition, nine grants for a total of $370,000 were
approved for area planning units and 57 grants for a
total of $1.1 million were approved for the Nation’s
Indian reservations.

23

Table 1.-SUMMARY OF EDA OBLIGATED PROJECTS FOR FISCAL 1974
By State and Program

(Amounts in thousands of dollars)
Public Works
State

No. of
projects Amount

Technical
Assistance
Working No. of Amount
projects
capital

Business Development
No. of
projects

Loans

7
Alabama . . . .
$4,058
1
$494
8
A laska.................
3,607
11
6
Arizona . . . .
10
5,040
10
Arkansas . . . .
3,878
4
16
1
California . . . .
29
9,223
$180
16
Colorado . . . .
6
5
2,476
Connecticut . .
5
2,938
5
Delaware . . . .
1
100
1
District of
1
Columbia . .
1
112
450
2
F lo rid a ..............
9
1,659
3
G eo rg ia.............
9
3,179
8
H a w a ii.............
Id a h o .................
8
1,363
4
I llin o is .............
8
1
6,751
2,500
6
In d ia n a .............
7
3,513
3
1
Iowa .................
1,067
3
K a n s a s .............
2
1,920
4
1
Kentucky . . . .
3,981
9
500
2
Louisiana . . . .
5,127
18
3
M ain e.................
9
1,524
1
Maryland . . . .
2
1,668
2
Massachusetts .
8
7,448
17
Michigan . . . .
9
4,505
2
Minnesota. . . .
9,644
19
7
Mississippi . . .
10
5,606
9
Missouri . . . .
5
1,558
9
Montana . . . .
4
532
6
Nebraska . . . .
4
2,074
1
N e v a d a .............
344
3
1
New Hampshire
3
1,65 3
New Jersey . . .
3
1,225
1
5,200
3
New Mexico . .
22
4,370
4
New York . . .
13
5,581
9
North Carolina .
2
10
3,765
2,400
6
North Dakota .
10
1,935
6
4
Ohio .................
4,387
5
Oklahoma . . .
18
5,411
18
Oregon . . . .
3,148
9
1
2,500
4
7
Pennsylvania . .
14
3,019
Rhode Island . .
2
601
2
South Carolina .
8
3,607
5
South Dakota .
8
2,807
1
Tennessee. . . .
9
5,191
6
Texas .................
43
9,630
3
1,310
270
8
Utah .................
4
1,726
2
2,250
2
Vermont . . . .
2
365
1
Virginia . . . .
3
1,476
2
Washington . .
23
9,145
13
1
West Virginia . .
3,115
6
Wisconsin . . . .
12
3,002
2
Wyoming . . . .
1
576
1
800
American Samoa
Puerto Rico . .
4
3,311
5
U.S. General . .
59
Totals . . 456 $173,943 1 15 $17,954
2 $900 3 322
NOTE: Detail may not add to totals due to rounding.
* Includes 3 working capital guarantees.
3 Agency exposure for guarantee of 90 percent of unpaid balance of loans.
Does not include additional line items such as task orders.
Does not include continuing grants.

24

$510
200
192
124
1,730
214
346
3
110
313
661
274
182
193
63
220
235
40
14
176
1,666
152
122
267
248
111
50
30
209
10
350
135
205
584
188
150
1,059
602
206
5
205
527
135
26
145
784
19
70
728
3,153
$17,942

Planning Grants

State Total

No. of
No. of
projects Amount projects Amount
1
1

$122
180
187
415
107
107

1

98
555
126
158
68
100
52
230
253
132
117
375
148
397
264
217
30
7

1
2
2
1
1
2
3
1
1
2
1
2
1
1
1
1
2

1

4 28

186
198
204
125
89
333
180
138
236
210
140
387
92
158
209
41
38
54
39
324
$7,739

17
$5,184
18
3,987
5,419
20
4,416
20
46
11,060
2,797
11
10
3,283
2
103
4
222
12
2,070
17
4,395
12
1,764
9,591
15
3,774
11
6
1,230
2,192
6
14
4,945
22
5,419
11
1,669
4
1,844
25
9,230
13
5,033
9,914
26
19
6,269
2,071
17
11
860
2,154
5
4
381
1,653
3
7
6,634
27
4,566
24
6,129
19
6,504
18
2,265
9
5,060
37
5,932
14
5,978
21
4,216
5
1,203
4,049
13
3,022
10
5,537
15
11,854
56
4,202
8
3
391
5
1,779
36
10,103
7
3,175
14
3,110
2
1,376
54
4,079
9
3,478
60
821 $217,578

Table 2. —CUMULATIVE SUMMARY OF EDA OBLIGATED PROJECTS
By State and Program through Fiscal 1974

(Amounts in thousands of dollars)
States

Public Works
No. of
projects

Technical
State Total
Planning Grants
Assistance
Working No. of Amount No. of Amount No. of Amount
projects
capital projects

Business Development
No. of
projects

$54,553
161
10
$619
42
$1,361
14 $16,131
$493
$36,443
95
Alabama . .
37,855
14
823
120
1,807
42
87
135
2
62
35,138
Alaska. . . .
37,813
1,243 146
9
55
1,422
4
2,612
32,536
78
Arizona . . .
65,282
52
3,261 265
918
720
45
3,604
8
58,040
160
Arkansas . .
145,349
605 494
12,110
12
2,930 264
20,331
31
187
112,303
California . .
12,038
556
11
661 j 69
30
2
2,315
8,506
Colorado . .
26
18,019
35
1
26
807
14
2,819
2
14,367
18
Connecticut
5,729
12
33
3
738
1
4,958
8
Delaware . .
District of
16,719
46
2,43 5
1,046
35
828
13,457
6
5
Columbia
16,308
77
8
446
1,233
35
765
3,1 19
10
24
11,509
Florida
72,381
81
4,305 244
3,010
53
2 1,4 19
12
43,646
98
Georgia
1,374
10
73
38
3
1
3
66
1,197
3
Hawaii
13,849
76
531
605
10
15
360
2,818
5
9,895
46
Idaho .
74,010
190
995
24
3,528
86
14,241
11
55,247
69
Illinois.
17,288
71
254
7
789
31
2,187
180
14,057
6
27
Indiana
6,54 1
26
2
100
157
7
398
1
16
5,886
Iowa . . .
11,844
37
385
680
6
13
10,779
19
Kansas
93,620
1,455 271
1,894
26
1,643
50
6,683
83,589
20
175
K entucky.
44,721
1,780 153
31
959
30
3,113
6
38,868
86
Louisiana .
27,526
853 109
20
645
4,410
35
17,703
15
8,325
39
Maine . . .
12,191
45
357
2,171
6
22
180
5,052
5
4,611
12
Maryland .
38,928
64 5 150
5,471
18
91
4,928
27,884
6
35
Massachusetts
60,210
44
2,51 5 216
1,410
47
8,167
540
6
48,118
119
Michigan .
52,114
12
890 229
1,089
83
1,080
5,697
24
44,438
110
Minnesota.
101,674
2,978 305
50
2,150
51
840
15,510
14
81,036
190
Mississippi
23,832
155
1,313
29
1,062
53
1,772
19,686
3
70
Missouri .
26,296
1,829 159
43
765
58
315
2,048
21,654
6
52
Montana .
13,601
36
145
514
3
14
12,941
19
Nebraska .
3,828
32
5
241
78
5
299
1
3,210
21
Nevada . .
8,609
29
151
11
270
1,300
7,158
3
15
New Hampshire
40,637
79
1,508
878
42
20,942
18,187
15
22
New Jersey .
51,101
1,032 189
25
55
770
999
3,948
11
45,353
98
New Mexico
67,996
1,491 288
30
6,338
42,528 151
17,095
24
43,072
83
New York. .
58,654
27
1,308 170
1,139
34
293
12
7,816
97
48,391
North Carolina
16,435
67
686
11
716
1
19
750
14,283
36
North Dakota
53,369
614 167
11
74
4,789
3,976
8
43,990
74
Ohio . . . .
62,740
47
2,653 270
71
1,228
315
14,343
44,517
14
138
Oklahoma .
29,685
70
7
337
580
25
7,5 00
2
21,268
36
Oregon . .
75,668
1,898 309
30
9,300
1 1,934
585 164
11
104
52,536
Pennsylvania
20,306
31
2
5
1,140
11
1,113
18,048
1
17
Rhode Island
47,312
1,299 142
24
637
16
810
1 1,468
33,908
12
90
South Carolina
11,570
97
1,155
29
345
23
10,069
45
South Dakota
74.772
1,062 188
22
1,572
32
16,034
540
56,104
13
121
Tennessee .
82,824
2,413 337
55
2,903
80
12,074
670
65,433
19
183
Texas . . . .
19,613
67
499
11
377
8
2,250
16,487
2
46
Utah . . . .
4,512
18
50
1
46
6
4,415
11
Vermont . .
19,608
83
1,273
25
24
1,469
900
2,640
14,226
3
31
Virginia . .
79.772
869 198
16
3,176
945
60
18,266
15
107
57,461
Washington
70,700
532 189
11
705
5,667
761
50
12
116
63,796
West Virginia
18,862
378 112
11
41
1,445
2,919
3
57
14,120
W isconsin. .
3,367
22
38
48
1
1
7
800
2,481
13
Wyoming . .
2,883
13
4
231
132
4
135
1,010
3
1,510
2
60
1
1
60
Guam . . . .
63.772
125
440
7
2,396
36
19
12,681
48,254
63
Puerto Rico
1,394
8
30
1
113
5
1,2 51
2
Virgin Islands
20,467
2,081 350
23
18,386
325
U.S. General
968 $51,702 7,559 $2,112,180
Totals . . 3,477 $1,608,701 1 426 $340,673 2 $66,459 2,686 $111,105
NOTE: Detail may not add to totals due to rounding.
Agency exposure for guarantee of 90 percent of unpaid balance of loans.
1 Includes 80 working capital guarantees.

25

CHAPTER V

REGIONAL ACTION PLANNING COMMISSION PROGRAM

Mission

The Regional Action Planning Commission Program is a
unique partnership between the Federal Government
and the States. It provides for financial, technical,
planning, and research assistance to designated multi­
state regions which are economically distressed. The
regions must first be designated by the Secretary of
Commerce. The States affected may then come together
with the Federal Government to form regional commis­
sions consisting of the Governors of these States and a
Federal Cochairman appointed by the President. The
commissions set development priorities for the regions,
propose strategies for upgrading their economies, and
develop plans and programs for enhancing their growth.
At present 29 states participate either on a partial or
whole-state basis in the following seven regional commis­
sions: Coastal Plains (parts of North Carolina, South
Carolina, and Georgia); Four Corners (parts of Arizona,
Colorado, New Mexico, and Utah); New England (Con­
necticut, Maine, Massachusetts, New Hampshire, Rhode
Island, Vermont); Old West (Montana, Nebraska, North
Dakota, South Dakota, Wyoming); Ozarks (Arkansas,
Louisiana, Missouri, Oklahoma, Kansas); Pacific North­
west (Idaho, Oregon, Washington); and Upper Great
Lakes (parts of Michigan, Minnesota, Wisconsin).
The Regional Action Planning Commission Program is
authorized by Title V of the Public Works and Economic
Development Act of 1965, as amended, and Executive
Order 11386. It was recently extended through June 30,
1976, by Public Law 93423. The Secretary carries out
his responsibilities under this legislation through his
Special Assistant for Regional Economic Coordination.
The Special Assistant heads the Department’s Office of
Regional Economic Coordination.
Coastal Plains Regional Commission

In a joint effort with eight oil companies, the Coastal
Plains Regional Commission organized and spearheaded
an analysis of the economic and environmental feasi­
bility of deepwater oil ports and the attendant refinery
sites for the southeast Atlantic coast of the United
States. A draft report of the study has been submitted.
A third-level aviation service provided by Wheeler
Flying Service of Raleigh was initiated, with Com­

mission support, in North Carolina. The service links
medium-size cities and is similar to the system
funded by the Commission in Georgia and South
Carolina.
The Commission created an Industrial Development
Advisory Committee, which serves as a link to public
and private industrial development agencies and or­
ganizations, to advise the Commission on broad
policy considerations and program development in
industrial development. An Environmental Affairs Ad­
visory Committee provides guidance with respect to
economic growth in terms of its impact on the
environment.
In fiscal 1974, the Commission invested $2.6 million in
public works projects with a total cost of $16.2 million.
It also funded technical assistance projects in the
amount of $ 1.4 million.
Four Comers Regional Commission

The States of Arizona and Utah joined in expanding two
newly developed techniques to handle competing
demands on scarce fuel, energy, and water resources, and
state planning policies and decisions affecting these
demands. The project combines the Arizona Trade-Off
Model, which evaluates economic and environmental
factors involved in specific development projects, and
the Utah Forecasting Model, which estimates the
impact of alternative state futures. Colorado and New
Mexico are expected to join these activities early in
fiscal 1975.
All four States expanded work in the field of energy
research and information coordination, primarily be­
cause of coal, oil shale, and natural gas development and
potential in the region. Colorado funded a study to
explore alternative employment potentials for industries
which have suffered or may suffer because of energy
shortages. Utah instituted a comprehensive mining ed­
ucation program at the College of Eastern Utah. A
number of the public works projects approved in fiscal
1974 related to new energy exploration and develop­
ment in the Four Corners region.
The Four Corners Regional Commission approved $4.6
million in public works grants and $1.7 million in
technical assistance during fiscal 1974.
26

New England Regional Commission

The New England Regional Commission played a sig­
nificant role through its various energy programs by
operating an energy information system which can assist
in contingency planning, allocation procedures, con­
servation programs, and long-range energy policy formu­
lation; by performing technical and policy analyses; by
assisting in interfacing between state and Federal Gov­
ernments on energy matters; by developing programs to
take advantage of the benefits of Federal research and
development activities; and by developing a regional
program of energy conservation.
As a major part of its energy program, the Commission
initiated a comprehensive analysis for oil refinery sites,
deepwater ports, and a petroleum product distribution
system in New England. This effort will lead to a
coordinated region-wide approach to major energy pro­
ducing and distributing facilities resulting in large eco­
nomic benefits to the region. It will help the Commis­
sion examine the siting of electric, including nuclear,
plants.
To enable its member States to meet the complex issues
presented by the Regional Rail Reorganization Act of
1973, the Commission helped the States in their efforts
to overcome gaps in the overall transportation system in
the region. Through analyses of highway, rail, and air
service problems, it assisted the States in studying
alternative solutions and supported them in the imple­
mentation of the alternatives selected.
In fiscal 1974, the Commission approved a total of $7.2
million in such program areas as energy conservation and
development, transportation, commercial-industrial de­
velopment, and state management programs.
Old West Regional Commission

The Old West Regional Commission became fully opera­
tional during the latter part of the fiscal year with the
establishment of Commission headquarters under an
Executive Director in Rapid City, South Dakota, and a
field office in Billings, Montana. These offices help
coordinate and monitor energy programs as well as
provide assistance to the States on Commission activi­
ties.
The Old West Region, along with the Four Corners
Region, contains the country’s largest reserve of energy
resources—coal, uranium, oil and other fuels. The Com­
mission is deeply involved in opportunities for economic
development but is also trying to ameliorate the effects
of its development. A special appropriation in the
amount of $2 million in fiscal 1974 was used to help
identify and solve the social and economic impacts of
coal development in the region.

In fiscal 1974, the Commission expended $2.8 million in
technical assistance in the areas of human resources,
industrial development, natural resources, agriculture
and forestry, recreation and tourism, transportation,
regional economic analysis, government services, and
state investment planning. The Commission does not
have supplemental grant-in-aid authority in fiscal
1974.
Ozarks Regional Commission

With the inclusion of the whole of Kansas, the
Ozarks Region is now a five-state region and a new
regional plan is being developed and will be com­
pleted and submitted to the Secretary within calendar
1975.
The Ozarks Regional Commission continued, and plans
to complete during fiscal 1975, a five-state regional
health evaluation survey. The survey is being financed
by the Commission and coordinated by the U.S. Public
Health Service. Results will be displayed both graphi­
cally and statistically, so as to show where health
problems are most intense and where Federal and state
efforts need to be concentrated.
The Arkansas River Development Corporation entered
the third year of work planning for the optimum
utilization of the McClellan-Kerr Waterway on the
Arkansas River. The Corporation is financed by the
Commission. Efforts are being made to extend the
project to other states in the Arkansas Basin.
The Commission contracted with Worldwide Transporta­
tion services to provide service to shippers and distribu­
tors utilizing both the Arkansas and Mississippi water­
ways as a means of stimulating additional traffic and
marketing opportunities throughout the region, es­
pecially on the Arkansas and lower Mississippi water­
ways. Arkansas, Oklahoma, and Louisiana are active
participants in the project.
The Commission’s five-state land use planning effort, in
cooperation with the U.S. Department of Interior,
continued and is expected to be regionwide within fiscal
1975.
In fiscal 1974 the Commission invested $1.5 million in
technical assistance projects and $5.2 million in public
facilities projects.
Pacific Northwest Regional Commission

The Pacific Northwest Regional Commission was utilized
by the Governors to fund state energy offices and to
coordinate regional energy efforts through a Regional
Energy Task Force. The energy offices successfully
coordinated a program for a petroleum allocation and
27

which centered on assistance to the region’s recrea­
tion industry and on development of energy account­
ing and information systems. The program included a
demonstration project to provide publicly subsidized
transportation from metropolitan areas to the
region’s recreation facilities. Special promotion and
information services were instituted to encourage
in-state tourism, as well as special assistance to each
governor’s office to provide the public with
information on energy problems as a conservation
measure.
A major effort was also undertaken to establish a
computerized energy information service to provide
regional planners with information on energy usage and
demand in the future.
The Inland Lake Renewal and Demonstration Project, a
joint venture of the University of Wisconsin and the
Wisconsin Department of Natural Resources funded by
the Commission, was completed in fiscal 1974. Wis­
consin enacted legislation to implement a similar
program throughout the State. The project attempted to
restore the degraded inland lakes, develop and evaluate
techniques for land use management that would control
the movement of pollutants into these lakes, and to
develop techniques for systematic lake-use and landuse planning. The program is expected to have a
regional benefit with widespread use in Michigan and
Minnesota.
Upper Great Lakes Regional Commission
In fiscal 1974 the Commission invested $4.8 million in
To meet the energy crisis, the Upper Great Lakes supplemental grants and $2.8 million in technical assist­
Regional Commission embarked on an energy program ance projects.

distribution system within and among the three States.
In addition, the Commission funded a regional energy
program which would enable Idaho, Oregon, and Wash­
ington to plan and coordinate alternative regional
solutions to energy shortages through 1980.
The Commission focused on expanding foreign trade and
evaluating alternate foreign trade expansion strategies
for the region. Steps have been taken to increase foreign
trade from a 1972 level of $7.1 billion to approximately
$12.3 billion by 1980.
The Commission undertook a warm water irrigation
project to demonstrate and assess the feasibility of using
condenser cooling water from thermal power plants for
agricultural production, thereby reducing the biological
degradation of the Columbia River into which the water
is now allowed to flow.
The Commission launched several demonstration proj­
ects in fiscal 1974. Among them were development of a
third-level air carrier plan for the Pacific Northwest, a
regional pilot project for waste-disposal, and an Indian
Cultural-Education Center.
At the present time, the Commission has invested $1.5
million in technical assistance projects. The Commis­
sion did not have supplemental grant authority in
fiscal 1974.

CHAPTER VI

DOMESTIC AND INTERNATIONAL BUSINESS

GENERAL

Export Promotion Programs

The Assistant Secretary for Domestic and International
Business is the Secretary’s principal advisor on the
promotion of progressive business policies and growth
and strengthening the international economic position of
the United States. The Assistant Secretary heads the
Domestic and International Business Administration,
and, as such, is responsible for Commerce programs
involving the expansion of international commerce,
including: (1) research, analysis, and the development of
policy initiatives, in the areas of international trade,
finance, and investment, (2) the expansion of East-West
trade and other commercial relations, (3) promotion of
business-consumer relations, (4) competitive assessment,
(5) energy programs, (6) import quota administration,
(7) export administration, (8) trade adjustment assist­
ance, (9) the collection, analysis, and dissemination of
selected information on various industries, commodities,
and markets, (10) the preparation and execution of
plans for industrial mobilization readiness, and (11)
participation in domestic trade fairs.
The Domestic and International Business Administration
underwent a realignment of certain policy and other
functions in fiscal 1974. Its international economic
policy, research, and analysis functions, together with
those of its Office of Competitive Assessment, were
placed into a single area—the International Economic
Policy and Research staff—headed by a Deputy As­
sistant Secretary. Concurrently, the Bureau of Com­
petitive Assessment and Business Policy was redesignated
the Bureau of Domestic Commerce.

Fiscal 1974 goals for tangible export actions were met as
follows:
Percent
Category
Goals Results of goals
Target industry
export actions .......... 2,600 3,760
144
Non-target industry
export actions .......... 3,400 5,118
150
Total export actions. 6,000 8,878
147
Trade opportunity
7,000 7,096
101
subscriptions
Of the total export actions reported above, 5,089
represent initial export sales by New-to-Market firms
totaling $588,958,000.
Domestic Trade

District Offices continued to be involved in a variety of
domestic trade activities in fiscal 1974. These included:
(1) bringing to the local business community the
Department’s energy conservation program, (2) partici­
pating in presentation of the Secretary’s productivity
message to local business firms, (3) arranging and
participating in a series of “Census User” conferences
with the Bureau of the Census in ten major cities, (4)
cooperating with the National Bureau of Standards in
promoting awareness of its energy labeling program and
metric conversion material, and (5) participating with
the Bureau of Domestic Commerce in a program to alert
the Department to material shortages at the local level.
For the 6-month period ending June 30, 1974, Field
Energy Conservation activities included the following:

OFFICE OF FIELD OPERATIONS
Mission

The Domestic and International Business Administra­
tion’s Office of Field Operations has six regional, 42
district, and 10 satellite offices located in major in­
dustrial and commercial centers in the United States
and Puerto Rico. It serves as the Department’s principal
medium of contact with the local business community.
Its primary function is to provide these communities
with informational services, business data, and counsel­
ing on Departmental international and domestic pro­
grams, including related marketing aids.

Energy seminars held ..........................................
181
Energy conservation film showings.....................
759
Energy citations awarded.................................... 5,957
Federal Procurement

The Office conducts Procurement Conferences for local
businessmen as requested by Members of Congress who
act as the sponsors. An average of 14 civilian agencies
:9

and the Army, Navy, and Air Force send procurement
counselors to each Conference. In fiscal 1974, 31
conferences were held, attended by 5,963 local business­
men representing small and medium sized firms. At each
conference a seminar on “Export Opportunities” was
given by an Office Trade Specialist.
Service Improvements

To improve service to the local business community, ten
“satellite” offices were opened in fiscal 1974. The Office
also realigned the geographical areas of its District
Offices to conform with appropriate state boundaries.
States with large concentrations of industry continued
to be served by more than one office. In some cases a
District Office continues to serve more than one State.
BUREAU OF DOMESTIC COMMERCE
Mission

agency Fertilizer Task Force which was created to
monitor domestic and foreign fertilizer supply.
In coordination with the International Economic Policy
and Research staff, the Bureau assisted in preparations
for future negotiations under the General Agreement on
Tariffs and Trade. Activities included:
• Recommendations for membership of over 500
business executives on the 26 Industry Section
Advisory Committees.
• Preparation of separate background and trade
material for each of these 26 committees.
• Contact with each of the members of these
committees to assist them in their contributions.
• Preparation of studies on the effect of foreign
non-tariff barriers on selected areas of U.S. trade
and the effect of preferential trade agreements on
U.S. trade.

The Bureau of Domestic Commerce of the Domestic and In other activities designed to support trade expansion,
International Business Administration is responsible for
aiding and promoting the development of U.S. business. the Bureau:
The Bureau monitors and analyzes trends, issues, and
• Worked with the Assistant Secretary for Science
other national priorities and their impact on individual
and Technology, the Bureau of International
industries, and evaluates significant inter-industry issues
Commerce, and the Bureau of East-West Trade in
which affect the business community. The Bureau also
a program of technical aid to exporters.
operates an Ombudsman program to serve the business
community and others in their business with Govern­
• Assisted in developing trade opportunities through
ment, and administers the statutory program for indus­
participation in trade missions and catalog shows.
trial mobilization readiness.
• Supported the National Bureau of Standards by
serving on the Government’s Advisory Committee
Research, Analysis, and Information
for International Legal Metrology.
The Bureau assisted in the administration of the Eco­
nomic Stabilization Program. It provided the Cost of The Bureau prepared and published the 1974 edition of
Living Council with detailed analyses for selected indus­ U.S. Industrial Outlook. This publication reviewed
tries and commodities in short or tight supply. Bureau significant industry developments in 1973 and projected
officials were detailed to the Cost of Living Council activity levels for 1974 and 1980 for more than 200
during the period June-September 1973 to assist in the individual manufacturing and non-manufacturing indus­
analysis of exemption requests and in the formulation of tries. For the first time, it included special reports on
general economic areas that affect most of the individual
Phase IV.
covered. Reports on the energy situation,
The Bureau initiated and published a weekly Business industries
consumer
Conditions Report that was distributed throughout the included. credit, and pollution control costs were
Department and to other Federal agencies concerned
with current tight supply situations. This report is a Industry studies on newsprint, certain food products,
concise compilation of issues and problems that are electronics, chlorine, and fertilizers were published
emerging throughout the economy as a consequence of during the year, the latter two in support of interagency
the strong domestic and worldwide demand for basic task forces. The third annual survey entitled Franchising
industrial products and raw materials.
in the Economy 1972-74, as well as the eighth edition of
the Franchising Opportunities Handbook were pub­
The Bureau monitors export activity in ferrous scrap. lished.
Similar monitoring was initiated to assess export activi­
ties in copper base scrap. Special surveillance procedures The Bureau completed a 15-month study entitled
were established to monitor the exports of fertilizers and Frozen Cooked Food Survey on the economic feasi­
petro-chemicals. The Bureau also chaired the Inter­ bility of using frozen foods for military troop field
30

feeding. This study was performed, under contract, for
• Preparation, in response to Section 6 of the Clean
the Army.
Water Act Amendments of 1972, of an annual re­
port to the Congress on the impact of environ­
The Bureau established the Interagency Committee to
mental legislation and regulation on the foreign
Assess the Impact of Crimes Against Business which will,
trade position of U.S. industry.
among other things, evaluate the effectiveness of existing
Federal programs to reduce the costs to the business
The Ombudsman
community of this type of illegal activity.
Throughout the fiscal year, the Bureau’s Office of the
Project Independence
Ombudsman for Business served as a clearinghouse
Working closely with the Federal Energy Office, the within the Department of Commerce for dissemination
of information about shortages affecting the U.S.
Bureau:
economy. It responded—normally within 5 days—to
• Provided 18 volumes of basic data on key energy - some 5,600 written inquiries, 90 percent of which
using industries for use in analytical work and originated from senior management of U.S. businesses
planning and implementation of allocation and and Members of Congress in respect to commodity
shortages. In addition, it answered another 5,000 general
conservation programs.
and shortage inquiries arising from visits and telephone
• Planned and managed 15 contract studies on calls.
energy use patterns in industry, energy supply
problems, opportunities for fuel substitution and The Office provided current situation reports for major
energy conservation, and the impact of allocation commodities in short supply. Developed in close coordi­
nation with Bureau industry specialists and other Wash­
programs on industry.
ington analysts, these situation reports contained an
• Coordinated Departmental inputs to an inter­ analysis of each short supply situation including produc­
agency task force, to inventory all government tion, imports, exports, demand, and expected availa­
sources of energy information and identify critical bility levels for the near and longer term. Periodic
additional requirements for energy data.
revisions incorporated details of each announced govern­
• Conducted a major study of materials, construc­ ment action and its impact on availabilities as well as
tion, and equipment requirements and possible changes in industry plans in respect to both production
bottlenecks to meet the increased energy produc­ and distribution.
tion goals of the President’s Project Independence.
• Developed an automated industrial energy data Industrial Mobilization
base for use in analyzing the impact of energy Under the Defense Production Act, the Bureau:
problems on manufacturing.
• Processed 1,883 special assistance cases and author­
izations.
Inter industry Analyses
• Conducted disaster surveys pursuant to 36 disaster
In fiscal 1974, the Bureau developed policy positions on
declarations.
360 legislative proposals and was involved in policy
analysis of a number of significant issues including:
• Redrafted Defense Priorities System Regulation 1,
“Basic Rules of the Defense Priorities System,”
• Preparation of an interdepartmental study on
and
Defense Materials System Regulation 1, “ Basic
workers’ compensation which analyzed the recom­
Rules
of the Defense Materials System”—both
mendations of the National Commission on State
becoming
effective July 1, 1974.
Workmen’s Compensation Laws.
• Participation in an interdepartmental task force to
• Prepared analyses on materials stockpile supply and
draft the Employee Retirement Income Security
requirements, essential survival items, and the
Act, as well as a special task force to establish the
availability in domestic production of certain items
Pension Benefit Guaranty Corporation.
important to national security.
• Participation in an interdepartmental task force to
• Participated with NATO in developing plans for its
develop National Health Insurance proposals.
Wartime Organizations and in a continuing and ex­
panded analysis of production lead-time for critical
• Preparation and publication of a study on the eco­
NATO material.
nomic impact of proposed Environmental Protec­
tion Agency air quality regulations.
31

provided an important link between Department of
Commerce programs and the leadership of the American
business community. The full Council met three times
during the year. In addition, its program evolved through
four active sub-councils, focusing on problems in tech­
nology, motivation, product efficiency, and public
awareness.
On January 3, 1974, the Secretary and the Federal
Energy Administrator addressed an appeal to 43,000
businessmen. The letter described certain energy-saving
steps of the Federal Government and urged business
leaders to adopt such of those steps that applied to their
own organizations. They were also requested to send a
summary of actions and savings to the Department and
the Federal Energy Office.
Bureau members participated in Project Independence
working groups on resource development and supply. In
addition, the Bureau was responsible for the Departmentled Material, Equipment, and Construction Task Force.
The Bureau helped establish and implement procedures
for quantitative restrictions on exports. These controls
began in January 1974 and remained in effect at the end
of the fiscal year. In fiscal 1974, 493 petitions were
processed with awards resulting in the importation of
512,000 barrels of petroleum per day.

BUREAU OF RESOURCES AND
TRADE ASSISTANCE
Mission

The Bureau of Resources and Trade Assistance of the
Domestic and International Business Administration
handles import issues, assists industries experiencing
difficulties from international competition and disrupted
markets, and coordinates Department energy programs.
Energy Conservation

The principal thrust of the Bureau’s energy program was
to request the business/industrial community, large and
small, to adopt a four-point energy management pro­
gram. The four points are: (1) a top management
commitment to energy conservation, (2) a thorough
audit of all forms of energy use, (3) a setting of tough,
measurable goals for energy conservation, and (4) an
energy conservation campaign designed to educate and
motivate employees, customers, suppliers, and the com­
munity at large. In November 1973, the Secretary
addressed a direct appeal to 43,000 business leaders to
adopt the four-point program. Those firms whose chief
executive pledged to support this concept were awarded
a “SavEnergy” citation expressing the Department’s
appreciation. Approximately 8,000 of these awards were
made during the fiscal year.
To assist in delivering the Government’s energy conserva­
tion message, the Bureau developed a variety of promo­
tional materials including a 20-minute color motion
picture. The film depicted the importance of energy
conservation and gave practical suggestions for imple­
menting the four-point energy-management concept.
A number of brochures and pamphlets designed to help
the businessman develop and carry out his energymanagement program were published. Seven major
brochures were: Energy Conservation and the Business
Community, How To Start an Energy Management
Program, 33 Money-Saving Ways to Conserve Energy in
Your Business, Energy Management: Economic Sense
for Retailers, Marketing Priorities and Energy, Indus­
try’s Vital Stake in Energy Management, and Energy
Conservation Handbook. By the end of the year, the
brochures (180,000 copies) and the Energy Management
film had reached over 750 business groups, with a total
audience of approximately 25,000. Over 100 private
organizations purchased copies of the film for use in
their own programs.
The Bureau also provided staff and substantive support
to the National Industrial Energy Conservation Council
established by the Secretary of Commerce at the
direction of the President on November 28, 1973. The
Council’s 24 business leaders represent a broad crosssection of the U.S. business community, and it has

International Trade in Textiles

On December 20, 1973, the United States and 50 other
nations concluded an international arrangement under
the General Agreement on Tariffs and Trade (GATT)
for the orderly expansion of world trade in cotton,
wool, and man-made fiber textiles and apparel. The
United States led in the negotiation of this agreement,
which is known as the Arrangement Regarding Inter­
national Trade in Textiles. This Arrangement provides
for the negotiation of bilateral agreements to ensure the
orderly development of textile trade and the equitable
treatment of participating countries. It provides for
bilateral consultations when an importing country finds
its market threatened with disruption. If the consulta­
tions do not result in a solution, the importing country
may unilaterally restrain further imports of the product
from the exporting country. The Arrangement also
establishes a Textile Surveillance Body to supervise its
implementation. The United States is a permanent
member of the Body.
The Bureau participated in the negotiation of the
Arrangement, furnished data and analyses to the U.S.
delegation, and worked with the GATT Textiles Com­
mittee Technical Sub-group, which is developing infor­
mation sources for the Textile Surveillance Board.
The Bureau developed the background papers for, and
participated in, the negotiation of a new wool and
32

summer of 1974, and on an overall study of critical
imported materials.

man-made fiber textile and apparel agreement with
Singapore. In addition, six expiring cotton textile
agreements were extended with Japan, Italy, the Philip­
pines, Egypt, Jamaica, and Malta.
The Bureau is taking part in a review of all U.S. bilateral
textile and apparel agreements required of all partici­
pants in the Textile Arrangement. It prepared the
position papers for, and participated in negotiations with
Hong Kong, the Republic of China, and India to extend
these major textile agreements and bring them into
conformity with the Arrangement.
The Interagency Committee for the Implementation of
Textile Agreements, which is responsible for supervising
the implementation of all textile trade agreements, is
chaired by the Deputy Assistant Secretary for Resources
and Trade Assistance. The Bureau carries out the
Committee’s staff work, monitoring all textile and
apparel imports under U.S. bilateral agreements and
imports from countries without such agreements in
order to be in a position to take appropriate action if
imports threaten or cause market disruptions. At the end
of fiscal 1974, the United States had bilateral textile and
apparel agreements with 30 countries covering 83
percent of U.S. cotton textile and apparel imports, 37
percent of U.S. wool imports, and 52 percent of U.S.
man-made fiber textile and apparel imports.

Statutory Programs

The Bureau assists the Secretary of Commerce, as
Chairman of the Foreign-Trade Zones Board, in the
administration of the Foreign-Trade Zones Act. There
are 13 foreign-trade zone sites presently in operation in
the United States, including new sites at Kansas City,
Kansas, and Kansas City, Missouri, which became active
during fiscal 1974. A synthetic natural gas plant was
located within the subzone in Hawaii and the Kansas
City, Missouri, and the New York City zones expanded
their facilities during the year. Merchandise in U.S. zones
at the beginning of fiscal year 1974 amounted to about
226,000 short tons, valued at approximately
$53,000,000. Merchandise received during the year
amounted to about 1,700,000 short tons, valued at
approximately $205,000,000. About 1,600,000 short
tons, valued at approximately $200,000,000 were for­
warded.
During fiscal 1974 action was taken on 515 applications
for duty-free entry of scientific instruments under the
Educational, Scientific, and Cultural Materials Act.
The Bureau administers the Secretary’s responsibilities
with regard to the foreign excess property program. A
total of 427 cases were processed during the fiscal year,
with approximately $2,216,000 worth of property
approved for importation.
Public Law 89-805 limits the number of watches
and watch movements that may be imported duty-free
from U.S. insular possessions (the Virgin Islands, Guam,
and American Samoa). During the reporting period
almost $4.5 million in salaries and wages and $4.5
million in corporate taxes were generated by territorial
watch assembly operations. Approximately 5.6 million
units of quota were allocated, and 77 licenses and 1,202
shipment permits were issued.

Import Trade Policy

The Bureau continued its activities on import-related
problems affecting industrial products such as steel,
footwear, and consumer electronic products. The Office
of Import Programs monitored steel imports in relation
to the Voluntary Restraint Arrangement on steel exports
to the United States. A detailed statistical series on steel
imports was prepared and published. It formed the basis
for quarterly reports to key Congressional committees
analyzing developments in the steel trade.
International Commodity Trade

The Bureau staff represented the Department in inter­
agency planning for, and participated in, U.S. delega­
tions to a number of intergovernmental meetings and
negotiations affecting international trade or access to
supplies of primary commodities. This included consul­
tations held under the general auspices of the United
Nations Conference on Trade and Development, the
Special Session of the United Nations General Assembly
on Raw Materials, and specialized meetings such as the
International Rubber Study Group, the International
Coffee Organization, and the United Nations Conference
on Law of the Sea. The Bureau worked on a review of
the economic basis for U.S. policy toward Law of the Sea
questions, which involved participation in the first Law
of the Sea Conference held in Caracas during the
33

Trade Adjustment Assistance

In the course of the year, the Department certified three
firms eligible to apply, certified three proposals, and
monitored the operations of 13 firms to assure com­
pliance with the provisions of their certified proposals.
Also one new application for certification of eligibility
to apply for trade adjustment assistance was received,
and four firms submitted their economic adjustment
proposals for certification. By the end of the year and
since the beginning of the program, a total of 31 firms
had been certified. Overall assistance authorized reached
$38 million. Assistance to implement adjustment pro­
posals has been extended to firms in the footwear,
textile, electronics, piano, stainless steel flatware, barber
chair, and sheet glass industries.

agencies. By the end of fiscal 1974, over 7,000 U.S.
companies had registered as subscribers to receive direct
mail notifications of overseas business opportunities
disseminated through this new system. During fiscal
1974, the Bureau disseminated to potential U.S. sup­
pliers 9,150 sales and representation opportunities,
3,190 foreign government tenders, and 517 miscel­
laneous trade opportunities.

BUREAU OF INTERNATIONAL COMMERCE
Mission

The Bureau of International Commerce of the Domestic
and International Business Administration promotes
U.S. foreign trade, stimulates export marketing by U.S.
firms, and assists U.S. business in its operations abroad.
Overseas Sales Assistance

During fiscal 1974, the Bureau of International Com­
merce provided significant assistance to firms in winning
contracts on 20 major foreign projects involving more
than $1 billion in direct exports. The Bureau also
instituted a new service, the Overseas Product Sales
Group, to assist firms in capitalizing on export oppor­
tunities for specific products valued in excess of $1
million. As a result of this new activity, the Bureau was
instrumental in assisting U.S. firms to win export sales
contracts totalling more than $1.1 billion. The Bureau
also sponsored 19 commercial exhibitions at national
and international trade fairs in Europe, Latin America,
Africa, and Asia, and 56 major exhibitions at U.S. Trade
Centers in Tokyo, London, Frankfurt, Milan, Paris,
Stockholm, Sydney, Mexico City, Buenos Aires, Beirut,
Singapore, Tehran, and Taipei. In addition, 1,041
special exhibitions were scheduled between the major
exhibitions at trade centers. In all these trade fair and
trade center exhibitions, 3,876 exhibitors participated.
The Bureau also sponsored 92 trade missions with 672
members, 14 technical sales seminars with 103 members,
and six special consumer goods promotions in foreign
department stores.
New Trade Centers

To allow U.S. manufacturers to display their products in
three of the fastest growing markets in Asia, U.S. Trade
Centers were established this year in Tehran, Taipei, and
Seoul. The Center in Tehran fosters the development of
a balanced trading partnership with oil-rich Iran by
encouraging the sale of sophisticated U.S. equipment
ranging from scientific monitoring devices to agricultural
machinery. The Government of the Republic of China
strongly supported the establishment of the Taipei
Center in line with its official policy of directing
Taiwanese importers and manufacturers to seek U.S.
sources of supply. The Government of the Republic of
Korea was also instrumental in the creation of the Seoul
Center.

President’s Export Council

The President’s Export Council, composed of 22 chief
executive officers of major U.S. corporations, was
established by Executive Order in December 1973 to
serve as a national advisory body to the President on
export expansion activities. This Council, for which the
Bureau of International Commerce provides administra­
tive support, has initiated action in a number of areas,
including calling for a strong U.S. Government position
on the importance of a sustained program to promote
exports; endorsing the Domestic International Sales
Corporation tax deferral authority; and conducting
studies on export financing, export controls, taxation,
and the effect of U.S. antitrust laws on exports.
Foreign Buyers

The Foreign Buyers Program was inaugurated in
February 1974 to encourage foreign visitors to attend
selected trade shows in the United States and to
facilitate contact between U.S. businessmen and foreign
buyers visiting here. During the remainder of fiscal 1974
the new program was instrumental in attracting an
estimated 1,800 foreign buyers to three trade shows in
the United States and arranging approximately 1,500
contacts between these buyers and U.S. firms.
Near East Study Group

A special Near East Study Group was formed in March
1974 to review the changing market situation in the
Near East resulting from that region’s greatly increased
oil revenues. Three members of the Group made a 3week trip to the Near East in April, consulting with Em­
bassy officers, foreign government officials and business­
men, and resident U.S. businessmen in Cairo, Baghdad,
Tehran, Kuwait, Abu Dhabi, Jidda, Riyadh, and Beirut.
A report, entitled: The Near East Market: A Report to
U.S. Business, was prepared and published describing the
opportunities in the area, with emphasis on the oil-rich
countries.

Trade Opportunities Program

Expo ’74

In September 1973, the Bureau implemented a fully
automated system to disseminate to U.S. companies on a Expo ’74, the international exposition on the environ­
paid subscription basis sales inquiries and bid requests ment at Spokane, Washington, opened on May 4, 1974,
received from overseas businessmen and Government for a 6-month run and an anticipated 4.6 million visitors.
34

The Bureau was instrumental in ensuring that an
impressive U.S. Pavilion was constructed, and advising
on cost-reducing methods based upon its considerable
experience in these matters. Its officials served as
advisors to the exhibition managers on the ongoing
programs of this function.

scientific and technological cooperation and the develop­
ment of cooperative projects, and (4) the continued
need to work toward the creation of normal trading
conditions.
People’s Republic of China

Commercial relations with China continue to improve
sharply, with two-way trade for fiscal 1974 reaching
$1.14 billion, a 485 percent increase over fiscal 1973.
Important institutional roles in this trade continued to
be played by the United States Liaison Office in Peking
and by the private, non-profit, National Council for
United States—China Trade. A council delegation was
the only broad gage U.S. commercial group to have
visited China. Further progress in normalization of
this bilateral trading relationship is dependent upon
resolving outstanding problems such as the Chinese
blocked assets—U.S. private claims issue, Most Favored
Nation tariff treatment (a problem with most other
socialist countries also), and, ultimately, diplomatic
recognition.
During the year, the Secretary of Commerce led or
participated in missions to the U.S.S.R. Hungary, Poland,
Romania, and Bulgaria. Two of these visits involved
commission meetings, but on all of them the Secretary
held extensive meetings with high level officials to
discuss expansion of trade relations.

BUREAU OF EAST-WEST TRADE
Mission

The Domestic and International Business Administra­
tion’s Bureau of East-West Trade is responsible for
promoting trade and improving economic relations with
the centrally-planned economies of Eastern Europe and
Asia. The Bureau is also charged with the responsibility
for carrying out the provisions of the Export Adminis­
tration Act of 1969.
Joint Commercial Commissions

The institutional mechanism of a joint commercial
commission is a major vehicle in the negotiation of
commercial accords in the promotion and normalization
of East-West trade relations. Two commissions, the
Joint U.S.-U.S.S.R. Commercial Commission and the
Joint American-PolishTrade Commission were in place at
the beginning of the year. The U.S.-Romanian Economic
Council was added during President Ceausescu’s Decem­
ber 1973 visit to Washington. The Bureau serves as the
staffing base for Commission activities.
The U.S.-U.S.S.R. Commission reviewed the current state
of commercial relations and the implementation of
existing agreements, explored the prospects for the
future, including opportunities for U.S. firms in long­
term Soviet projects, and developed the text of the
Long-term Agreement to Facilitate Economic, Indus­
trial, and Technical Cooperation which was signed in
Moscow on June 29, 1974. The Agreement provides that
both governments shall use their good offices to facili­
tate such cooperation and to provide facilities for the
businessmen of one country in the other. The Agree­
ment also provides for creation of a group of experts
who will meet periodically to exchange information and
forecasts of basic economic, industrial, and commercial
trends.
American-Polish Trade Commission discussions centered
on long-term industrial cooperation, joint ventures,
business facilitation problems, maritime issues, agricul­
tural purchases, and textile agreements.
U.S.-Romanian Economic Council discussions primarily
concerned: (1) existing and new areas of economic,
industrial, and technical cooperation, including joint
ventures, (2) the need for continuing support of activi­
ties undertaken in these areas by the firms and organiza­
tions of both countries, (3) the intensification of

Trade Promotion

The Bureau continued promoting U.S. trade with
promising markets in Eastern Europe and the Soviet
Union. It recruited about 300 U.S. firms to participate
for the first time in officially sponsored trade exhibits
and trade missions. Numerous U.S. firms were encour­
aged to participate on their own in 16 major Eastern
European trade fairs. The Bureau organized and con­
ducted six technical sales seminars and five specialized
trade missions and also supported six other U.S. trade
missions that were initiated or organized by U.S.
industry or regional organizations. Particular attention
was given to organizing Joint Export Expansion Pro­
grams for U.S. firms that were new-to-export or were
exporting to the East for the first time.
Some 500 U.S. firms have now actively cooperated with
the Bureau in promoting sales to Eastern Europe, as
compared with about 200 at the close of fiscal 1973.
Numerous opportunities for exports to the East were
brought to the attention of interested U.S. firms and also
used in planning special trade promotion events. While
the objectives set for all the trade promotional events
organized by the Bureau were achieved or exceeded, the
following promotions proved most notable.
A nine-day metal working equipment exhibit at the fall
Brno Engineering Fair in Czechoslovakia, for which 20
35

U.S. firms were recruited, resulted in off-the-floor sales
of $44,500 and a projected $1,355,000 first year sales
for new-to-market and $730,000 for old-to-market U.S.
firms. A technical seminar held in conjunction with the
U.S. exhibit was attended by 50 high-level Czechoslo­
vakian industry officials.
The U.S. special commercial exhibit, “USA Tech 1973,’’
featuring petrochemical technology and equipment, was
held at Bucharest, Romania, in November 1973.
Twenty-two U.S. firms participated in the promotion
which attracted 297 commercial executives and about
3,000 technical and business visitors from Romanian and
other East European state industries and trading organi­
zations. Off-the-floor spot sales amounted to a record
$2.5 million, with 1 year’s projected sales of $45
million.
“STANK1-USA,” a solo U.S. exhibit for machine tools
and metalworking equipment held in Moscow in April,
was officially opened by the Secretary. Fifty-five of the
83 participating U.S. firms were new-to-market. Spot
sales during the 10-day exhibit totaled $19.3 million
with sales of $97.9 million projected over the next year.
Top Soviet officials and high ranking delegations from
every Eastern European country visited this exhibit.
With over 350,000 visitors this was the most heavily
attended U.S. solo exhibit ever held in the U.S.S.R. The
show also featured a most successful seminar with 24
technical presentations.
“Health-USA-74,” held in conjunction with a Soviet
international fair for public health systems, featured
participation by 43 U.S. firms recruited and spon­
sored by the Department of Commerce. Twenty-seven
of these were new-to-market. Floor sales during the
event totaled $1.4 million and a 1-year sales pro­
jection amounted to $9.4 million. U.S.S.R. sources
reported over 600,000 visitors, almost all of' whom
visited the U.S. exhibit.
The Poznan International Technical Fair featured a U.S.
exhibit with 32 exhibitors who represented 62 American
firms recruited by the U.S. Trade Development Center in
Warsaw. Off-the-floor sales totaled $1.3 million while
12-month sales were projected at $28 million. Of the
latter, sales of $1.4 million were anticipated by new-tomarket firms.
Well-targeted trade missions also had unusual success. An
Air Traffic Control Mission to Czechoslovakia, Hungary,
and the U.S.S.R. in April 1974 achieved projected sales of
$6 million in the next 12 months. A high level executive
mission to Hungary in April resulted in one member’s
signing a contract for over $1 million.

are U.S. firms and their affiliates or agents in Europe.
The Center concentrates on helping new-to-market U.S.
firms and using the long established and numerous
East-West traders based in Vienna as avenues of trade for
American products.
In addition to providing support for trade missions,
recruitment for exhibits, and coordination of exhibits in
the United States’ second largest market in East Europe,
the Warsaw Trade Development Center served as an ideal
base for a number of American firms to hold individual
between-show exhibits, seminars, and business meetings.
It is preparing for five Joint Export Expansion Promo­
tions in the coming year.
The Secretary officially opened the new Commercial
Office in Moscow in April 1974. The Office served as a
base of support for the important trade promotions
scheduled for the U.S.S.R. These included not only trade
fairs but also trade missions, seminars, and the provision
of sales information on U.S. products to the Soviet state
trading organizations.
Trade Development Assistance

During the year there were 1,678 contacts, including
602 new ones, with U.S. companies for the purpose of
providing advice on the “how to” of East-West trade
and/or assistance on individual East-West transactions.
The specific transactions for which assistance was being
provided on a continuing basis were almost triple that of
fiscal 1973. The export value of these transactions
increased from $1.3 billion to over $5 billion.
Advisory Committees

The six government-industry technical advisory com­
mittees that were established in 1973 under the provi­
sions of the Export Administration Act of 1969, as
amended, held a total of 29 meetings during fiscal 1974.
In addition, subgroups of the various committees met 29
times. The committees dealt with matters relating to
computer systems and computer peripherals, com­
ponents and related test equipment, semiconductors and
semiconductor manufacturing and test equipment, nu­
merically controlled machine tools, and telecommuni­
cations equipment. A seventh committee, dealing with
electronic instruments, was established during fiscal
1974 and held two meetings. It began a work program
for providing the same type of information and recom­
mendations as the other six.
An Advisory Committee on East-West Trade was offi­
cially created during the year to advise on the Bureau’s
programs and problems. It is anticipated that its
membership will be established and that its organiza­
Trade Centers
tional meeting will be held in the first quarter of the
The Vienna East-West Trade Center now has over 1,000 next
fiscal year.
subscribers to its trade information bulletin, all of which
36

first half of the fiscal year by licensing against contracts
dated before July 2, 1973. For the third and fourth
quarters of fiscal 1974, ferrous scrap licensing was based
on past histories of exports to various countries by each
applicant. These controls are maintained to assure
adequate supplies of scrap for domestic steel mills and
foundries.
Midway through the fiscal year, controls were imposed
on petroleum based fuels, to prevent excessive exports
of those scarce commodities. As with ferrous scrap, the
licensing system is based on country quotas and histori­
cal participation in exports.
A new monitoring system was introduced in November
1973, to gain information on the supply and demand for
fertilizers. Producers and importers were required to
report monthly on inventories, production, imports,
shipments, and prices. Exporters filed semi-monthly
reports of unfilled export orders and actual export
shipments.

Publications

Eight major publications regarding trade and commercial
relations with the socialist countries were printed and
distributed during the fiscal year along with a number of
minor publications. Among the major efforts were
publications on trading in Poland, Romania, Czecho­
slovakia, Hungary, and the U.S.S.R. Also included was a
report on the America-Polish Trade Accords of
1972-73 which reflected the activities of the Joint
American-Polish Trade Commission.
Export Licensing

The Bureau worked through the various programs
enumerated above to facilitate East-West trade. The
Bureau also took firm measures to assure that such trade
was conducted within the national security, foreign
policy, and short supply guidelines of the Export
Administration Act of 1969.
In the conduct of its export control program, the Bureau
received advice on a regular basis from the governmentindustry technical advisory committees and from such
governmental agencies as the Departments of Agricul­
ture, Defense, Interior, State, Transportation, and
Treasury, the Atomic Energy Commission, the National
Aeronautics and Space Administration, and the Central
Intelligence Agency. On the international level, the
Bureau’s export licensing was coordinated with the
established list of strategic commodities.

INTERNATIONAL ECONOMIC POLICY
AND RESEARCH
Mission

The Deputy Assistant Secretary for International Eco­
nomic Policy and Research, of the Domestic and Inter­
national Business Administration, is responsible for
developing and recommending positions and policies on
international trade, finance, and investment issues. Eco­
nomic research and analysis are conducted to support the
development of policy decisions and recommendations.

Short Supply Commodities

The Office of Export Administration continued moni­
toring programs begun in the previous fiscal year to
provide data on anticipated exports of a number of
grains and related agricultural commodities. The report­
ing requirements imposed on exporters of agricultural
commodities was discontinued in November 1973, when
the Department of Agriculture began its monitoring
system.
At the beginning of fiscal 1974, export licensing systems
were introduced for soybeans and certain related
products, under the short supply provisions of the
Export Administration Act of 1969. With the approval
of the Secretary of Agriculture, these licenses allowed
export of 50 percent of the unfilled balance of soybean
contracts, as reported June 13, 1973, and 40 percent of
such contracts for soybean oil-cake and meal. Exports of
other controlled agricultural commodities were licensed
for 100 percent of contracts. With the availability of a
new crop in the autumn of 1973, the controls for
soybeans and other agricultural commodities were ter­
minated.
Controls on exports of ferrous scrap were introduced at
the start of the fiscal year and were administered for the

Trade Negotiations

Foreign Ministers of the more than 80 participating
nations formally opened the seventh round of the
Multilateral Trade Negotiations under tire General
Agreement on Tariffs and Trade in September. Inter­
national Economic Policy and Research staff played a
major role in formulation of U.S. negotiating positions
on means of achieving tariff and nontariff barrier
liberalization. As a backdrop to preliminary discussions,
the United States concluded negotiations with the Euro­
pean Community concerning increased tariffs arising out
of enlargement of the Common Market. The Inter­
national Economic Policy and Research staff developed
the list of industrial products, and supporting materials
for which the United States requested compensatory
tariff reductions from the Community.
The staff also worked with the Office of the President’s
Special Representative for Trade Negotiations and other
agencies to provide information for Congressional con­
sideration of the proposed Trade Reform Act. This Act
would authorize United States participation in the en­
forcement of Multinational Trade negotiations. It would
37

also help this country to expand its trade with Eastern February 1974, as well as for the Sixth United StatesEurope, Latin America and other markets and to Korea Commerce Ministers Meeting in Washington in
better protect itself against unfair or injurious import June 1974.
competition.
Industry Consultations

Trade Talks

In order to achieve close and continuing coordination
with U.S. industry throughout the course of the multi­
lateral trade negotiations, an Industry Consultations
Program involving some 500 industry representatives has
been established jointly by Commerce and the Office of
the President’s Special Trade Representative. The Indus­
try Policy Advisory Committee held its first meeting in
March. This Committee, consisting of high-level execu­
tives representing major segments of U.S. industry, is
designed to provide overall industry views on general
U.S. objectives and approaches in the multilateral trade
negotiations. Twenty-six Industry Sector Advisory Com­
mittees, comprised of technical experts, also have been
established to provide detailed advice and recom­
mendations regarding U.S. and foreign trade barriers
affecting their particular products.

The International Economic Policy and Research staff has
been playing a key role in U.S. consultations with the
European Community and the nations of die European
Free Trade Association on the “rules of origin” issue.
The United States requested these consultations under
Article XXII of the General Agreement on Tariffs and
Trade to help prevent our commercial interests from
being impaired by these restrictive rules, which are an
integral part of the free trade agreements entered into in
1973 by the European Community and European Free
Trade Association countries. An organizational meeting
was held on April 29, 1974, and further meetings are
scheduled for this year.
In April 1974, the Secretary visited London and Brussels
as part of a continuing U.S. effort to work for better
understanding and improved commercial relations with
the European Community and its member states. In
London the Secretary discussed a number of economic
and commercial issues with representatives of the British
Government, including Secretary of State for Trade
Peter Shore. In Brussels, the Secretary met with Belgian
Minister for Economic Affairs Willy Claes and with
Altiero Spinelli, European Community Commissioner for
Industrial, Technological, and Scientific Affairs. The dis­
cussion with Commissioner Spinelli focused on the
emerging common industrial policy of the Community
and comparable measures in the United States.
The Deputy Assistant Secretary for International Eco­
nomic Policy and Research was a member of the U.S.
delegation for the seventh round of U.S.-European
Community bilateral consultations held in Washington
on October 29-31, 1973, and the eighth round held in
Brussels June 6-7, 1974. A broad range of economic
issues of mutual interest were discussed, and specific
sessions were devoted to Community industrial policies
as they affect U.S. trade interests.
Bilateral discussions on trade and investment were held
during the Secretary’s four-country visit to the Far East
in July 1973 and the Under Secretary’s visit to the same
region in March 1974. The former included the Ninth
Meeting of the Joint United States-Japan Committee on
Trade and Economic Affairs and the Fifth United
States-Korea Commerce Ministers Meeting. Extensive
briefing material was prepared and coordinated to cover
the range of economic issues of interest to the United
States in these discussions. Similar contributions were
made for the annual sub-cabinet bilateral economic
consultations with New Zealand held in Wellington in

Environment and Energy

In conjunction with the Department of State, the
President’s Council on Environmental Quality, and the
Environmental Protection Agency, the International
Economic Policy and Research staff participated in four
meetings under the auspices of the Organization for
Economic Cooperation and Development in Paris, seek­
ing the adoption by the 24 member countries of both
national and international environmental policies and
programs with appropriate safeguards to prevent un­
necessary distortions of international trade and invest­
ment patterns. A staff official headed the U.S. Dele­
gations at sessions of the Econorrjic Commission for
Europe’s Committee on the Development of Trade, and
the Economic Commission for Asia and the Far East’s
Trade Committee. The concern of many Asian coun­
tries about the impact of rising oil prices on their
economic development was urgently expressed at the
Economic Commission for Asia and the Far East
meeting.
Foreign Investment Policy

During fiscal 1974, U.S. international investment policy
became an area of widening concern, both domestically
and abroad. As foreign investment in the United States
increased, following two devaluations of the dollar,
Congressional and public interest in this issue height­
ened. The International Economic Policy and Research
staffs Office of International Finance and Investment
was repeatedly called upon to service requests for
specific information, as well as to assist in the prep­
aration of legislation providing for a comprehensive
38

study of foreign investment in the United States. The
Office was also active in interagency working groups
within the Executive Branch dealing with expropriation
and other investment problems abroad.
Various international organizations increased this in­
terest in international investment during the year, and
Office members attended four separate meetings of
committees set up under the Organization for Economic
Cooperation and Development to deal with investment
matters. The Commerce goal at such international
meetings is to assure the maintenance of an adequate
climate for U.S. business abroad.

The Office also provided assistance to the business
community on the creation and operation of export
trade associations, which, when registered with the
Federal Trade Commission, have a limited immunity
from the antitrust laws under the Webb Pomerene Act
of 1918. It also provided information in connection with
the proposed Omnibus Export Expansion Act. Certain
features of this Act would expand the ability of the
associations to export limited services as well as goods.
Competitive Assessment

The International Policy and Research Staffs Office of
Competitive Assessment combined to develop and rec­
ommend policy and program actions to enhance the
international competitiveness of, and to counter adverse
developments in U.S. industry and business. A new
program for the Office was approved in March 1974 and
implementation began before the fiscal year was out.
The program has three major components: (1) infor­
mation systems development, (2) competitive determi­
nants research and analysis, and (3) competitive systems
projections and testing.

Exports

Fiscal 1974 witnessed the growth of numerous move­
ments both within Congress and elsewhere to restrict the
operation of U.S. export financing facilities. The Office
of International Finance and Investment mounted a
substantial effort to analyze the short- and long-term
implications of such restrictions on the competitiveness
of U.S. exporters and our position in world markets. The
Office was also involved on a continuing basis with such
issues as: (1) export financing costs of various industrial
sectors among major competitor countries, (2) harmoni­
zation of export credits with Japan and the European
Communities, (3) financing sales of short supply com­
modities, and (4) financial issues arising from inter­
national energy problems and the increased cost of
primary commodities.
The Office continued to publicize the Domestic Inter­
national Sales Corporation tax deferral benefit for
exporters, enacted in December 1971. In fiscal 1974, the
Office responded to 750 requests for information on this
feature of the Tax Code. About 1,700 such corporations
were formed during this period, making an approximate
total of 5,800 as of June 30, 1974.

Research and Analysis

In the area of research, efforts were concentrated on
issues and problems of particular concern to the U.S.
international economic position. Research was con­
ducted on the impact and implications of exchange rate
changes, oil prices and the balance of payments, long­
term raw materials availability, and U.S. dock strikes. A
research information bank was created, collecting to­
gether research studies conducted in and out of the
government concerning international economics. Quar­
terly compilations of research are widely distributed to
maximize the exchange of information among re­
searchers and users of research.

39

OFFICE OF FIELD OPERATIONS
Selected Workload Data for Fiscal 1971-74
1971

1972

1974

1973

2,293
1 1,925
2,519
1,335
Export S em in ars................................................................................................................
1,332
Domestic Seminars ..........................................................................................................
825
1 962
905
39,313
36,034
30,778
1 30,073
Out-of-Office V isits..........................................................................................................
1,300
1,080
475
487
New-to-Export A ctio n s...................................................................................................
n.a.
n.a.
4,556
7,798
New-to-Market A ctio n s...................................................................................................
31
40
23
49
Business O pportunity/Federal Procurement Conferences ...................................
750
750
792
700
Associate O ffices................................................................................................................
$302,000
$529,000 $450,000 2 $373,000
Publication S ales...............................................................................................................
26,000
3 27,500
27,500
24,500
CBD Subscriptions ..........................................................................................................
1 The Export Promotion Program established in fiscal 1973 required concentration on Target Industries and less emphasis on
seminars and visits to non-Target Industries.
2 The sales reductions over the past three years are primarily due to the opening of Government Printing Office bookstores in key
cities.
3 Adjusted,
n.a.—Not available.

BUREAU OF DOMESTIC COMMERCE

Selected Workload Data for Fiscal 1974
1974

BUSINESS ASSISTANCE:
Industrial Outlook R e p o rts ..........
Domestic Trade Publications . . . .
Legislation Proposals Reviewed . .
Business Impact Analyses Prepared
Trade Opportunities Disseminated
DEFENSE PRODUCTION AND INDUSTRIAL READINESS:
Special Assistance and Authorization Cases Processed....................
Estimates of Essential Civilian and War-Supporting Requirements
Special Supply-Requirement S tu d ie s....................................................
Stockpile Materials Consumption Data S tu d ie s................................
Stockpile Materials Supply Data S tu d ie s ............................................
Special Stockpile S tu d ies..........................................................................
National Defense Executive Reserve:
R eservists................................................................................................
Training Conferences H e ld ................................................................
Industrial Evaluation S tu d ies...................................................................

40

225
135
360
55
11,500
1,883
0

0

102
15
2

542
6
135

BUREAU OF INTERNATIONAL COMMERCE
Selected Workload Data for Fiscal 1970-74
Table I.-INTERNATIONAL COMMERCIAL INFORMATION ACTIVITIES
Overseas Business Reports prepared...................................................................
Market Share Reports issu ed ...............................................................................
Trade Lists sold..........................................................................................................
World Traders Data Reports so ld ........................................................................
Foreign Market Reports Dissem inated..............................................................

1970

197 1

1972

1973

86
1,182
47,727
41,331

75
1,182
50,645
45,721

78
1,182
51,133
44,879

52,780

61,429

64,113

1 23
75
50,525
2 145
36,486
3 3,357
65,299

1974
62
1,1 61
4 2,320
1,625
28,904
5,931
41,336

An additional 1,161 reports were released in July-December 1973, after delays resulting from the relocation of the United
Nations com puter office from New York to Geneva, Switzerland.
2 The Export Mailing Lists is a new program which began in fiscal 1973.
The “ Agent/Distributor Service” was operated on a limited “ pilot” basis until November 1972, when it became a “worldwide”
program.
4 Represents Target Market Trade Lists, consolidated lists previously sold separately.

Table IL—TRADE AND INDUSTRIAL EXHIBITIONS
1970........................................................................................................
1972........................................................................................................
1973........................................................................................................

Agency
sales agreements
Exhibitions Exhibitors Trade visitors 12-month
(000’s)
established
22
963
71,084
388
94,801
22
905
208,154
155,844
370
Not avail.
170,079
18
1,075
783
172,555
20
766
204,950
177
236,444
23
876
170,446
160

Table III.-TRADE CENTERS
Joint Export
Expansion
Programs
1970.................................................................
1971................................................................
1972.................................................................
1973.................................................................
1974................................................................

Betweenshow
Exhibitions
Promotions
126
49
240
55
1
424
63
17
57
983
29
1,012
56

Agency
sales agreements
Exhibitors 12-month
(000’s)
established
1,533
84,196
507
112,193
520
1,875
2,297
194,838
1,233
327,900
2,135
5 37
413.894
461
2,171

Table IV.-TRADE MISSIONS
Missions
39
35
99
84
92

1970.
1971.
1972.
1973.
1974.

41

Mission
members
257
241
769
615
672

Table V.-COMMERCIAL REPRESENTATION ACTIVITIES
1970
Foreign Service Officers Participating in:
Commerce C onsultations..............................................................................................
Field Office C onsultations............................................................................................
Performance Evaluations:
Annual End-User Evaluations.......................................................................................
Foreign Service Report A ppraisals.............................................................................
Experience Record Appraisals (profiles)...................................................................
Briefings for Foreign Service Inspectors...................................................................
Training:
Foreign Service O fficers................................................................................................
Foreign Nationals (Trained A broad)...........................................................................
Foreign Nationals (Trained in U .S .)..........................................................................

1971

1972

1973

1974

352

362

358

610

61 5

189
50

174
41

175
48

202
52

225
65

345
170
189
75

331
167
1 55
88

250
190
200
1 20

2 80
193
125
90

271
174
100
127

276
210

2 80
215

243
225

106
101

80
111
18

BUREAU OF EAST-WEST TRADE

Export Administration Activities for Fiscal 1972-74
Export License Applications Received ..................................................................................................................
Special Commodity Studies Initiated.......................................................................................................................
Investigations O p e n ed ..................................................................................................................................................
Export Transaction Checks Required ....................................................................................................................

42

1972

1973

78,561
713
196
463

64,046
1,446
236
345

1974
65,883
1,118
241
489

CHAPTER VII

TOURISM

The Assistant Secretary

The Assistant Secretary for Tourism administers the
International Travel Act of 1961 and heads the United
States Travel Service. He also serves as the principal
adviser to the Secretary on matters of foreign and
domestic tourism in the United States, and is the
Secretary’s representative to the American Revolution
Bicentennial Administration.
Mission of the U.S. Travel Service

The United States Travel Service, the official govern­
ment tourist office, is responsible for strengthening the
domestic and foreign commerce of the United States by
promoting business and pleasure travel to American
tourism destinations from abroad. It works with other
government agencies and the U.S. travel industry to
shape “VISIT USA” programs that develop travel to the
United States.
The fiscal 1974 Presidential objective of the Travel
Service was to increase foreign exchange earnings from
tourism by $137 million and foreign visitor arrivals by
235,000 over levels which would have resulted from
normal growth in in-bound travel during calendar 1974.
To measure progress toward this objective the Service
uses a Performance Measurement System to track specific
programs. Performance data is reported quarterly, and
includes input from each of the six market-nations in
which the Service operates: Canada, Mexico, Japan, the
United Kingdom, France, and West Germany. Under this
System, the Service continuously monitors five programs
and several related activities. Three are major, direct im­
pact programs which received heavy emphasis during
fiscal 1974. These are Tour Development, Sales Develop­
ment, and Convention Sales.
Tour Development

Tour Development is designed to get the VISIT USA
product into the brochures of foreign travel wholesalers
and on the shelves of international retail travel agents. It
stresses the development of VISIT USA package tours
and tour features not previously offered, and the
inclusion of more U.S. destination packages in the
catalogs of major multi-destination tour wholesalers.

Through the Tour Development program, the Travel
Service supplies selected wholesalers and tour operators
abroad with product information about U.S. attractions,
assists them in planning sample itineraries, and provides
financial support on a shared basis for the production,
distribution and promotion of tour catalogs and collat­
eral material.
During fiscal 1974, the Service invested $1,071,000 in
tour development contracts with 35 foreign tour whole­
salers in six markets. These funds assisted in the
development of 41 tour programs during the fiscal year.
The number of package tour programs made available
with Service assistance by market was: Canada, 13;
West Germany, 10; United Kingdom, 5; France, 5;
Japan, 5; and Mexico, 3. Collectively these package
tour programs resulted in 115,232 passenger bookings
and $41.1 million in foreign exchange earnings during
fiscal 1974, a direct cost-benefit ratio of 39 to 1. Since
actual operation usually occurs in successive fiscal years,
total bookings and earnings will approximate 200,000
and $80 million.
Sales Development

Sales Development has as its purpose the production of
passenger sales to the United States from specific travel
agency and travel industry sources abroad.
Retail travel agencies which offer the greatest potential
to increase VISIT USA sales, through their sales volume,
interests, and location, are identified and invited to
become “Travel Planning Centers.” Those which accept
are officially recognized, provided with reference li­
braries, information on U.S. travel opportunities and
specialized training in selling all types of U.S. holiday,
group and individual travel.
For fiscal 1974, the Travel Service set as its objective the
establishment of 260 Travel Planning Centers in two
market-nations, the United Kingdom and West Germany.
A total of 355 centers were actually established during
the fiscal year.
Training for 5,000 foreign travel agents was conducted
by Travel Service field office personnel during 100 spe­
cial seminars in the fiscal year. These seminars, along
43

with familiarization training, acquaint the retail seller major international congresses, with minimum esti­
of travel with the actual packaged product he is to sell mated earnings of $5.6 million. Six conventions landed
and with specific U.S. tour facilities and destinations.
with the Service’s assistance were held during Fiscal Year
1974 with minimum estimated dollar earnings of
$891,500. An estimated 2,300 foreign attendees par­
Convention Sales
ticipated in the six conferences held.
The Travel Service’s Convention Sales Program has the
objective of selling more international associations on
holding their congresses and conventions in the United Office of Expositions and Special Projects
States.
The Office of Expositions and Special Projects, which
Through sales calls on the U.S. affiliates of international became an operating organization within the Travel
associations, Service personnel seek to sell them on Service during the fiscal year, develops and stimulates
inviting their internationals to meet in the United States. major international expositions and other events pro­
When such invitations are extended and accepted, U.S. posed for the United States.
convention cities are notified and urged to bid for the The Office assists U.S. trade show organizers in arranging
congress.
for duty-free entry of foreign exhibit items under the
Service field office personnel call on U.S. and foreign Trade Fair Act of 1959, and represents the United States
tour operators to sell them on organizing tours to at the Bureau of International Expositions in Paris.
conventions and on developing both pre- and post-con­
vention tours. As part of this effort to increase conven­ During fiscal 1974, the Office of Expositions and Special
tion sales, the Service produced a sales brochure and a Projects (1) certified 49 qualifying trade events for
convention promotion film. Both items feature U.S. duty-free entry of foreign exhibit items, (2) promoted
convention facilities and were placed in use during the 40 trade shows, (3) counseled 46 sponsors of exportoriented expositions, and (4) processed applications and
final quarter of fiscal 1974.
completed foreign promotion for five “VIP” shows
During the fiscal year, Service commercial intelligence (Visit, Investigate, Purchase) designated by the Secretary
and sales leads enabled U.S. convention cities to win 26 as major international events.

FOREIGN VISITOR ARRIVALS TO THE U.S. BY AREA OF PERMANENT RESIDENCE FOR
CALENDAR 1971, 1972,1973, AND FIRST SIX MONTHS OF 1974
1971
Area

Total

E u ro p e ................. 1,112,683
South America . .
312,650
113,531
Central America .
West Indies . . . .
315,676
485,321
Asia ....................
Oceania .............
124,106
A frica....................
32,385
O ther Overseas . .
71
Total Overseas 2,496,423
M e x ico ................. 1,170,583
Canada ................. 9,928,000
Grand to ta l. . 13,595,006

1973

1972

First six months o f 1974

Change
from 1970

Total

Change
from 1971

Total

Change
from 1972

Total

Change from
first six months
of 1973

+ 13.4%
-2 .0
+2.0
+ 15.3
+35.8
+2.7
+ 17.3
-24.5
+9.0
+7.8
+2.0
+ 3.7

1,301,385
312,318
117,719
333,170
609,282
153,072
34,649
63
2,861,658
1,377,143
8,818,318
13,057,119

+17.0%
-o .i
+3.7
+5.5
+25.5
+23.3
+7.0
-11.3
+ 14.6
+ 17.6
(a)
(a)

1,605,100
355,149
132,992
359,886
845,482
187,081
41,269
30
3,526,989
1,619,451
8,808,724
13,955,164

+23.3%
+ 13.7
+ 13.0
+8.0
+38.8
+22.2
+ 19.1
-5 2 .4
+23.2
+ 17.6
-o .i
+6.8

663,214
166,163
66,080
148,108
475,992
81,887
18,755
33
1,620,232
856,726
3,298,860
5,775,818

-4.8%
+9.5
+ 11.9
+3.2
+26.9
-6 .4
+ 13.1
+230.0
+ 5.9
+ 14.5
-8.3
-1 .7

aCanadian data for 1972 and subsequent years is not comparable to that for 1971.

44

CHAPTER VIII

FOREIGN DIRECT INVESTMENTS

The Office of Foreign Direct Investments was establsihed
by Executive Order 11387 in January 1968 to adminis­
ter a temporary program to reduce the immediate
impact of foreign direct investment on the U.S. balance
of payments. While the program did not restrict the total
amount of overseas business investment, U.S. companies
and individuals were limited in using U.S. source funds
and foreign earnings to invest or reinvest in foreign
affiliates in which they had an interest of 10 percent or
more. The primary effect of the program was to induce
investors subject to its restrictions to borrow overseas a
portion of the funds they used for foreign direct
investments.
Office regulations established quotas for “ direct in­
vestments,” defined as the algebraic sum of net

transfers of capital by U.S. investors to their af­
filiated foreign nationals and the direct investor’s
share in the reinvested earnings of such affiliates. The
program also limited the amount of foreign balances
or other foreign property that direct investors could
hold in liquid form.
During the life of the Program, the Office of Foreign
Direct Investments pursued a policy of gradual liberaliza­
tion aimed at ending controls as soon as balance of
payments considerations would permit. To this end,
Foreign Direct Investment Regulation controls admin­
istered by the Office were terminated on January 29,
1974. The Office completed all work involved in this
termination and was abolished on June 30, 1974.

OFFICE OF FOREIGN DIRECT INVESTMENTS

(Selected Workload Data)
Fiscal years

Applications for specific authorizations ....................................................
Petitions for reconsideration of prior decisions .....................................
Foreign borrowing certificates processed ..................................................
Specific authorizations is su e d ........................................................................
Quarterly, annual and special reports processed........................................
Compliance investigations in itia te d ..............................................................
Sections of regulations and general bulletin issued...................................
Legal interpretations or opinions rendered..................................................
Research projects com pleted..........................................................................
Key punch cards processed...............................................................................
♦ Function commenced in 1973.

45

1971

1972

1973

1974

208
50
3,096
135
9,550
312
260
761
146
(*)

186
31
2,898
193
9,561
448
179
748
165
(*)

160
18
2,949
141
7,5 16
227
241
1,239
151
210,648

37
1,787
37
4,892
91
3 53
1,448
1 17
106,3 36

CHAPTER IX

MINORITY BUSINESS ENTERPRISE
Mission

operates fully staffed regional offices in Atlanta,
Chicago, Dallas, New York, San Francisco, and Washing­
ton, D.C. It also has smaller field offices in 12 other
cities. These offices direct the activities of some 300
local business assistance centers across the country.
The Office of Minority Business Enterprise provides
funds to the centers for administrative costs which
enable these private, non-profit organizations to offer
free management and technical assistance services to
individual clients. Included are organizations which
provide general management and technical assistance
including feasibility and marketing studies, loan pack­
aging, accounting, and other business services. A number
of centers specialize in services to construction contrac­
tors. Nearly a dozen are involved exclusively in Indian
business development activities. The Office also supports
State minority business enterprise offices which have
been established in several states around the country.
During fiscal 1974 some 24,683 clients received some
form of business assistance at centers funded by the
Office. More than 4,590 loan packages valued at $200.8
million were approved, and the centers generated some
3,824 procurement contracts valued at an estimated
$252.6 million for minority firms.
On the national level, the Office continues to work with
trade and professional groups which conduct specialized
training and marketing programs in support of minority
business enterprise.
Over the past 2 years the Cablecommunications Re­
source Center of Washington, D.C., has operated a
national clearinghouse to promote and assist minority
entrepreneurs and venture organizations in the emerging
cable television industry. This Office-sponsored activity
has resulted in the organization of 21 minority-owned
cable television franchises. One, in Gary, Ind., is already
on the air, and Cablecommunications is presently look­
ing at franchise systems with an estimated potential
market value of more than $18,000,000.

The Office of Minority Business Enterprise provides the
overall direction for the minority business activities of
the Federal Government. It also supports programs of
local governments and of the private sector to promote
the establishment, growth and stability of minority owned business enterprises.
Established in 1969, the Office seeks to help change an
economic picture which at that time showed some 35
million minority Americans owning 322,000 businesses,
or 4 percent of the total number of businesses. Less than
a quarter of these firms, most of which are retail and
service operations, had paid employees. Their receipts in
1969 accounted for less than 1 percent of all earnings
for U.S. businesses.
The Federal Role

During fiscal 1974 Federal expenditures for minority
enterprise activities including grants, loans, loan guaran­
tees, and procurement continued near the levels set the
previous year and totalled approximately $1.3 billion.
Federal agencies continued to place more procurement
contracts with minority-owned firms through competi­
tive bidding and through the Small Business Adminis­
tration’s “8(a)” program than ever before. Direct pro­
curement amounted to an estimated $474.7 million, and
8(a) procurement rose to an estimated $272.2 million
versus $212.9 million in fiscal 1973.
Total procurement was $746.8 million, up nearly $16
million over the previous year’s total.
Working with officials from other Federal agencies, the
Office of Minority Business Enterprise launched several
inter-agency programs in fiscal 1974. Minority firms in a
number of industries from food service to real estate can
benefit from new specialized programs now underway
with the National Aeronautics and Space Administra­
tion, the Department of Housing and Urban Develop­
ment, the Department of the Interior, and the Com­
merce Department’s Maritime Administration.

Capital and Marketing

Business Services

At the close of fiscal 1974, 67 Minority Enterprise Small
Fiscal year 1974 saw a major reorganization of the Business Investment Companies with an aggregate capi­
Office of Minority Business Enterprise’s technical assist­ talization from private sources in excess of $29.3 million
ance system along regional and local lines. It now were in operation. These Investment Companies provide
46

a valuable source of equity capital for minority firms
which has the leveraging potential to generate over one
half billion dollars in financing for minority-owned
business ventures.
The American Bankers Association reported $272 mil­
lion in new loan commitments to minority businesses in
fiscal 1974, a 36 percent jump over the previous year’s
total. This increase puts the commercial banking in­
dustry over the top in its goal of $1 billion in credits to
minority entrepreneurs by 1975.
Total deposits in the Nation’s 55 minority-owned banks
also climbed over the $ 1 billion mark during fiscal 1974.
This compares with under $400 million on deposit in 1970
at the start of a joint Government/private sector drive to
increase funds on deposit in the then 28 minority banks.
More than 800 major companies are now represented on
the National Minority Purchasing Council. Organized by
the Office in 1972 to increase corporate purchases from
minority firms, the Council reported minority sales to its
member firms totaled some $433 million.

ity Business Enterprise, the Labor Department, and the
Department of Health, Education and Welfare was
completed in fiscal 1974. The report of the National
Task Force on Education and Training for Minority
Business Enterprise, a blue-ribbon panel of educators
and minority business specialists, forms the basis for
shaping a long-term national minority business education
program which is now getting underway.
In another area, the U.S. Conference of Mayors is
conducting a study under a grant to determine a strategy
for municipal involvement in minority business genera­
tion. Researchers will look at several means of commu­
nity renewal including the creation of neighborhood
business centers serviced by specialists from business
development organizations in the study to be completed
later this year.
Nearly 2,300 young people are now on the employment
rolls of major companies around the Nation as a result of
the completion of the second successful year of the
Business Management Fellowship training plan for
socially or economically disadvantaged college students.
Research and Training
This unique plan offers students the opportunity to gain
An 18-month study of minority business education and on-the-job business experience and earn a salary while
training programs commissioned by the Office of Minor­ they attend college.

47

FEDERAL PROCUREMENT FORM MINORITY
B U SIN ESSE S
(IN MILLIONS OF DOLLARS)

48

FEDERAL FUNDING FOR MINORITY
BU SIN ESS DEVELOPMENT
(LOANS, LOAN GUARANTEES, GRANTS, PROCUREMENT
IN MILLIONS OF DOLLARS)

49

CHAPTER X

SCIENCE AND TECHNOLOGY
THE ASSISTANT SECRETARY
Responsibilities

Commerce Science and Technology Fellowship Program

The Assistant Secretary for Science and Technology has
authority over the scientific and technological affairs of
the Department. She supervises research and develop­
ment activities, coordinates environmental affairs, and
advises the Secretary and other Commerce officials on
science and technology. The major scientific and tech­
nical programs are conducted by the National Bureau of
Standards, the Patent Office, the National Technical
Information Service, and the Office of Telecommuni­
cations- all under her direction. She also supervises the
Office of Environmental Affairs and the Office of
Product Standards.

The Ninth Commerce Science and Technology Fellow­
ship Program was conducted for 13 outstanding scien­
tific and technical men and women who participated in a
10-month program of advanced training, combined with
specific work assignments. Each of the Fellows was
assigned, for a 9-month work period to the Department
of Housing and Urban Development, House Interstate
and Foreign Commerce Committee, House Science and
Astronautics Committee, District of Columbia Govern­
ment, Office of Management and Budget, National
Science Foundation, Department of Transportation, and
to one of several operating units within Commerce.
Office of Environmental Affairs

Commerce Technical Advisory Board

Established in 1963, the Commerce Technical Advisory
Board consists of about 20 members, all recognized
leaders in engineering, science, education, industrial
research, business, or labor. It is chaired by the Assistant
Secretary, its only government member. It recommends
measures to increase the value to business and industry
of Department scientific and technical activities, advises
on ways to stimulate private industrial research and
development, and provides liaison on technical matters
between industry and Government.
In fiscal 1974, the Secretary established a special Board
panel - the Panel on Project Independence Blueprint—to
advise him—as well as the Department of the Interior
and the Federal Energy Administration—on technical,
scientific, and policy matters involved in an in-depth
analysis of the Nation’s energy posture. The panel will:
• Provide an independent assessment of the feasi­
bility of the actions and policies resulting from the
Project Independence Blueprint.•
• Represent a central input of private sector views
concerning governmental policy decisions designed
to expand the domestic supply of U.S. energy
resources.
• Provide advice and information on such matters as
the realistic capacity for expansion of domestic
energy resources within a given time frame.
50

The Office of Environmental Affairs was established in
February 1972 to provide scientific and technological
advice and coordination for a wide range of activities
related to air and water pollution, land use, solid waste,
recycling, noise, pesticides, toxic substances, and energy.
The Office coordinates Commerce review of draft en­
vironmental impact statements prepared by other Depart­
ments pursuant to the National Environmental Policy
Act of 1969, and provides expert technical assistance in
the evaluation of the environmental consequences of
proposed Federal actions. During fiscal 1974, more than
800 draft statements prepared by other Departments
and independent agencies were received, com­
ments forwarded to the originating Departments. The
Office assisted various operating units in Commerce
prepare 12 draft statements on their programs. It
disseminated these statements, as well as 10 final
statements, to other government offices, environmental
groups, and the general public. The Office also reviewed
and commented on over 400 other documents involving
proposed environmental legislation, rule making, and
reports. This compares with about 200 such documents
in fiscal 1973 and 90 in fiscal 1972.
The Office has significantly expanded its water pollution
work during the year. The Federal Water Pollution
Control Act Amendments of 1972 call for a broad range
of standards, criteria, guidelines, and other regulations
directed toward the abatement of water pollution in the
United States. Among the more significant are industrial

waste effluent guidelines and new source performance
standards, which set forth the degree of pollution
reduction that must be attained by industrial discharges.
Compliance with these regulations will require billions of
dollars from American industry in the next decade. For
this reason, and because of their impact on the economy
in general, the Office has been conducting a compre­
hensive evaluation of the regulations to insure that they
are scientifically valid, technically feasible, and eco­
nomically achievable. During the year, the effluent
guidelines for 30 major industrial categories, including
most of the larger water using industries, have been
evaluated.
Other water pollution regulations which the Office has
evaluated include those pertaining to pretreatment, toxic
pollutants, user charges for dischargers into publicly
owned treatment works, discharge permits, thermal
discharges, and ocean dumping.
The Office has been active in the Interagency Committee
on International Environmental Affairs and the Environ­
ment Committee of the Organization for Economic
Cooperation and Development. It has major respon­
sibilities under the U.S.-U.S.S.R. Environmental Agree­
ment and during fiscal 1974, was also assigned the job of
maintaining communications with business and industry
on environmental matters. In addition, it has worked
with national education associations to develop im­
proved environmental curricula, and participated in the
deliberations of a number of Federal interagency ad­
visory groups.
Office of Product Standards

The Office of Product Standards coordinates the Depart­
ment’s activities in product standards (domestic and
international), packaging and labeling, and building
codes. It also provides Commerce liaison with other
Federal agencies, private organizations, the Congress and
foreign governments. The latter includes work involving
the exchange agreement on standards with the U.S.S.R.
The head of the Office serves on the Council of the
International Organization for Standardization, the
Board of Directors of the American National Standards
Institute, and the Committee of Government Officials
Responsible for Standardization Policies of the UN
Economic Commission for Europe.
NATIONAL BUREAU OF STANDARDS
Mission

The National Bureau of Standards was created by
Congress in 1901 to develop a unified measurement
system for the Nation’s growing economy. Since that
time it has become the Nation’s largest physical sciences
and measurement laboratory.
51

Some of the Bureau’s primary functions include:
• The development, custody, and maintenance of
national standards of measurement;
• The development of methods for testing materials,
mechanisms, and structures;
• The determination of physical constants and prop­
erties of materials;
• Cooperation with other government agencies and
private organizations to develop standard practices;
• Invention and development of devices to serve
special needs of the government.
• Operation of a fire research program and chief
technical resource for the Consumer Product
Safety Commission.
• Enforcement of the 1967 Fair Packaging and
Labeling Act.
• Providing scientific and technological advice to
other Federal agencies on automatic data proc­
essing.
Experimental Technology Incentives

During fiscal 1974, its first full year of operation, the
Experimental Technology Incentives Program began
letting contracts and entering into arrangements with
other Federal agencies to examine government policy in
areas that influence the rate of technological change.
Examples of the 33 separate projects launched in fiscal
1974 included one with the Environmental Protection
Agency to consider alternative incentives that would
stimulate private industry to develop new and safer
pesticides in the face of stricter Federal controls. A
contract was also awarded to Charles River Associates, a
small consulting firm, to develop policy alternatives that
would prevent or ameliorate crises caused by cutoffs of
foreign supplies of metals or ores.
Energy

In the area of energy conservation, the Bureau launched
a voluntary appliance-labeling program to show con­
sumers the energy consumption and efficiency of home
appliances. Air conditioners were the first product for
which energy efficiency labels were developed. Labels
for refrigerators, home freezers, clothes washers and
dryers, ranges, and hot water heaters will be developed
in the near future.
Energy utilization and conservation in a factory-built
townhouse was studied by Bureau scientists and engi­
neers. They measured total energy lost by the house and
compared the results with expected losses through the

ceilings, walls, windows, and doors. Based on these and
other tests, a number of definitive energy-loss factors
were established for field conditions. For example, it
was found that effective use of insulation can save up to
55 percent of the energy required for heating a house.
For a given area, single-pane glazing can lose 10 times
more heat that a well-insulated wall and five times more
heat than double glazing. Turning the thermostat back 9
degrees overnight can save about 11 percent of the
heating energy when the outdoor temperature is about
21° Fahrenheit.
Technical staff in the Bureau’s Center for Building
Technology drafted design and evaluation criteria for
energy conservation in new buildings at the request of
the National Conference of States on Building Codes and
Standards. In cooperation with the General Services
Administration, NBS engineers are studying the tech­
nology of energy conservation in a new Federal office
building being constructed in Manchester, New Hamp­
shire.
Other energy-related programs include research on mate­
rials for advanced energy conversion systems and coal
gasification plants, and development of measurement
standards for liquefied natural gas and for national
nuclear and fusion energy programs.
Environment

Bureau scientists developed three certified standard
reference gases for mobile source emission analysis.
These standards are used by the Environmental Pro­
tection Agency for compliance testing with automotive
emission laws. As primary standards to be used in the
calibration of daily working standards obtained from
commercial sources, they will also be used by the
automotive industry and specialty gas manufacturers.
The Bureau examined the performance of several motor
vehicles run on gaseous fuels rather than gasoline. The
operations and exhaust emission characteristics of onehalf and one ton trucks run on three different fuels—
gasoline, compressed natural gas, and liquefied petro­
leum gas—were determined for the U.S. Postal Service.
In other environmental programs, Bureau scientists
developed accurate measurement methods for use in
guarding against nuclear pollution from nuclear power
plants, and made significant contributions to under­
standing and controlling the impact of noise pollution
on man.
The Bureau developed a technique to identify and
analyze mercury and volatile organo-mercury com­
pounds produced by microorganisms isolated from
natural waters and the bottom sediments of the Chesa­
peake Bay. The method is sufficiently sensitive to detect
mercury compounds at natural levels in samples as small
52

as one milliliter of air in the neighborhood of the
isolated mercury-processing bacteria.
The State of Washington, under sponsorship of Com­
merce’s National Marine Fisheries Service, completed the
large-scale mathematical modeling of the Pacific Coast
salmon hatcheries and began modeling of the salmon
fisheries. Designed by a Bureau scientist, the models are
intended to improve management efficiency in both
commercial and sport fishing in an area where the annual
yield to the State of Washington is over SI 50 million.
Health and Safety

The National Bureau of Standards developed a system of
television captions for the deaf that was tested by the
Public Broadcasting system. The project, funded by the
Department of Health, Education and Welfare, will
enable many hearing-impaired persons to enjoy tele­
vision. Initial reactions and suggestions of deaf viewers
were extremely positive based on the early showings.
A Bureau study of the Nation’s blood banking system
was used by the Department of Health, Education and
Welfare to help develop a proposal for a new national
blood banking program. The study found three federal
agencies, four national organizations, and at least eight
states that impose regulations on the blood-banking
industry—with the nature of controls and enforcement
varying widely. The report included a cost analysis of
the current system and nine alternative system
structures.
The Bureau’s Boulder, Colorado, laboratories made a
pioneering comparison of ultrasonic power measurement
techniques with the Department of Health, Education
and Welfare’s Bureau of Radiological Health in Rock­
ville, Maryland. The closeness of the results provided
increased confidence in ultrasound as both a diagnostic
and therapeutic tool in medicine.
The Bureau developed a standard for walk-through metal
detectors used in airports and public buildings to detect
objects such as guns, knives, and razor blades hidden on
the body. It also developed security guidelines for door
and window assemblies. The guidelines are aimed at
upgrading security of residences and small businesses.
Consumer Protection

The Bureau has completed a study of children’s strength
capabilities as an aid to designing safer toys and other
children’s products. It studied 556 children, ages 2
through 6, in day schools and day-care centers in the
Washington, D.C., area.
The Bureau designed and developed an instrument to
test a hot surface and determine in a few seconds
whether the surface will be harmless to touch, painful,

or will inflict a burn injury. The instrument is called a
“thermesthesiometer” and it was developed with funds
from the Consumer Product Safety Commission. It will
be produced commercially by a private firm for use by
designers in testing new products.
The Bureau developed’ the technical basis for the
issuance of a flammability standard for children’s sleepwear in sizes 7 through 14. The standard will take effect
May 1, 1975. It follows an earlier standard for sleepwear
sizes 0 through 6X that became effective July 29, 1973.
The Bureau also performed the technical groundwork
for that standard.
The Bureau’s Programmatic Center for Consumer Prod­
uct Safety produced 75 reports for the Consumer
Product Safety Commission during fiscal 1974. They
covered a wide range of tests and products—from
tricycle stability to blanket flammability to plastic
gasoline containers.
Measurement Standards

The United States, through the National Bureau of
Standards, became a member of the International
Organization of Legal Metrology, which is concerned
with the promulgation of recommended laws governing
the design and use of commercial and industrial meas­
uring instruments.
The Bureau’s high-accuracy time service logged an
average of 11,000 calls per week in fiscal 1974. Since it
began a time-of-day service utilizing radio station WWV
in 1970 there have been more than a million calls. A new
service of stations WWV and WWVH at Fort Collins,
Colorado, was announcement of Skylab experiments.
In cooperation with the Forest Service, the Bureau is
studying the use of microwave measurements to deter­
mine the depth and structure of snow pack in order to
try to predict avalanches.
Under a 5-year contract with the American Petroleum
Institute, the Bureau will provide the American petro­
leum industry with an extended set of reference data on
the density of crude oil and petroleum products.
Agreement on densities of crude oil is needed to ensure
an orderly market between buyers and sellers.
The Bureau presented the State of Colorado with a new
set of weights and measures standards. Colorado was the
42nd state to receive new standards under a program to
replace the weights and measures standards of all 50
states, the District of Columbia, Puerto Rico, and the
Virgin Islands.

such diverse products as turbine blades, space-ship
windows, soft drink bottles, and other brittle materials.
It is based on the rate at which cracks grow. Compatible
with production line techniques, the new method makes
possible the proof-testing and lifetime prediction of glass
containers and other products made of brittle materials
with consequent improvement in mechanical durability
and safe use.
Bureau scientists developed a new tool for studying basic
chemical reactions induced in gaseous systems by an
incident laser beam. The chemical reactions are identi­
fied and analyzed by a mass spectrometer. Because of
the interaction of laser light with specific chemical
bonds, these reactions can lead to the production of
novel materials for new scientific and industrial appli­
cations. It also has the potential for the separation of
chemical isotopes.
In a powerful new technique, Bureau scientists em­
ployed the laser in the study of free radicals, electrically
charged fragments of molecules involved in many chem­
ical reactions. Free radicals are very short-lived. Their
identification and behavior must be determined on a
very short time scale, yet the knowledge gained is
essential to pollution studies, fire research, high tem­
perature chemistry, stratospheric chemistry and the
development of new lasers.
Computer Technology

The National Bureau of Standards has the responsibility
for strengthening the Nation’s computer science and
technology and for advancing the effective use of
computers for the public benefit. The Bureau has
charge of developing information processing standards to
help guide the Federal Government to more efficient
utilization of computers. During fiscal 1974, nine such
standards were issued.
The Bureau’s Institute for Computer Sciences and
Technology expanded its work in the area of privacy and
security of data stored in computers. In addition to
hosting two major national conferences on the subject,
the Institute published a handbook for the physical
protection of computerized data and computer in­
stallations. It also published an executive guide for
security planning and developed techniques for con­
trolling access to computer systems that included posi­
tive identification of individuals who are remote users of
computer networks.

The Institute designed, for the President’s Special Action
Office on Drug Abuse Prevention, a computer-based
Materials
footprint identification system. It was an adaptation of
automated fingerprint identification system designed
The Bureau developed a novel method of testing the the
for
the
Federal Bureau of Investigation.
structural integrity and for predicting the lifetime of
53

opportunity to submit evidence relevant to whether or
not a patent should be issued on a particular invention
or whether the form of such patent should be modified.
In response to developing problems in the energy field,
the Office established a new category of cases for
accelerated treatment, supplementing its earlier program
of special treatment of patent applications having
possible environmental impact. Under this program,
applications will (upon request) be taken up for exami­
PATENT OFFICE
nation in advance of their normal order if the inventions
disclosed in such applications are determined to con­
Mission
tribute materially to (1) the discovery or development of
resources or (2) the more efficient utilization and
The Patent Office administers the patent statute energy
conservation
of these resources.
(Title 35 of the United States Code) and the Federal
trademark statute (Title 15, Section 1051 et. seq. of the
Trademark Examining
Code).
Pursuant to the patent laws, the Office examines During the year, 34,193 applications for trademark
applications for patent and issues patents to applicants registration were filed, a decrease of 2,011 applications
whose inventions satisfy the requirements of the law; as compared to corrected fiscal year 1973 receipts. A
publishes and disseminates patent and related scientific record number of 36,540 applications were disposed of,
and technical information; maintains classified search including 27,185 marks registered, and this reduced the
files of U.S. and foreign patents, a scientific library and inventory of pending applications by 2,347.
public search room; supplies copies of patents and During the year, the delay between the filing date of the
technical documents to the public; records assignments average trademark application and its being acted upon
and other documents affecting title to patents; and by an examiner dropped from 9 to 6 months.
performs other duties related to these laws.
September 1973, the international trademark
Similar functions are carried out under the Federal Effective
classification,
in use in more than 60 foreign
trademark laws. The Office examines, registers, and countries, wasalsoadopted
as the primary system of
maintains records related to trademarks, service marks, classification in the Patent
Office. As a transitory
certification marks, and other special kinds of marks measure, however, the prior classification
system will be
which are used in commerce and qualify for registration maintained in filing copies of trademark registrations
in
under the Federal trademark system.
the trademark search room.
The Bureau entered into a contract with the General
Accounting Office to develop guidelines for computer
systems used in vote tallying. After surveying juris­
dictions that have employed computers in conducting
elections, it will recommend guidelines for election
computer systems to assure accuracy, prevent fraud, and
provide effective decision-making information to elec­
tion officials.

Patent Examining

The patent examining corps achieved new records of
quantity performance during fiscal 1974. An all time high
of 116,003 patent applications were disposed of and the
initial examination of 118,710 new applications was
completed. A total of 103,979 new applications were
received. The inventory of new applications awaiting
examination was thus reduced by approximately 12,000.
Two new programs were instituted during fiscal 1974 to
improve the quality of patents issued by the Office.
First, a program was implemented to evaluate the
quality of a selected sample of applications prior to their
issuance. This program includes researching some of the
selected applications and reopening prosecution of appli­
cations where this is determined to be appropriate.
Second, an experimental program was developed under
which applicants may voluntarily expose their patent
applications to public protest proceedings prior to
issuance. The purpose of this program, scheduled to
commence in July 1974, is to provide the public an
54

Legislation and Legal Affairs

A proposed bill providing for a comprehensive revision
of the patent laws was forwarded to the Congress in
September 1973. This proposal was the result of an
intensive effort in which the Departments of Commerce
and Justice participated. Following introduction by
Senator Scott and after review by the staff of the Senate
Subcommittee on Patents, Trademarks, and Copyrights, a
modified form of this bill was reported in May 1974.
The Administration’s views on the committee print of
the proposed revision bill were forwarded to the Senate.
In September 1973, legislation to implement the Patent
Cooperation Treaty was introduced in the Congress.
Shortly thereafter, the Senate forwarded to the Presi­
dent its advice and consent to ratification of this patent
treaty. The implementing legislation was reported out by
the Senate Subcommittee on Patents, Trademarks, and
Copyrights both as a separate bill and as an additional
part of the general patent revision bill.

The Patent Office participated in public discussions
concerning the question of ratification of the Trademark
Registration Treaty, signed by the United States in May
1973, and completed a study of legislation required for
its implementation. Public comments on the question of
ratification and the form of its implementation were also
solicited.
The Strasbourg Agreement concerning the international
patent classification system received the advice and
consent of the Senate, and the United States deposited
instruments of its ratification with the World Intellectual
Property Organization on December 21,1973.
During the fiscal year the Patent Office participated in a
number of programs and international meetings related
to patent system development and the transfer of
technology to developing countries under sponsorship of
the World Intellectual Property Organization, the
Organization of American States, and the United
Nations.

NATIONAL TECHNICAL INFORMATION SERVICE
Mission

The National Technical Information Service serves as a
central source for the public sale of Governmentsponsored research, development, and engineering re­
ports and other analyses prepared by Federal agencies,
their contractors, or grantees. It is also an essential
source for Federally generated machine processable data
files.
The Service ships 11,500 information products daily as
one of the world’s leading processors of specialty
information. It supplies the public with approximately 4
million documents and microforms annually. Its collec­
tion exceeds 800,000 titles. All are available for sale, and
about 100,000 titles are in current shelf stock.
Credit Card Service

Holders of American Express Credit Cards charged
$32,000 for NTIS products and services. This was
comprised of $18,000 for documents and $14,000 for
Information Dissemination
subscriptions. This is the first time the Federal Govern­
The Office released the second and third of a series of ment has recognized a national credit card.
publications designed to expand its services to the U.S.
business and the scientific and engineering communities. New Products and Services
Utilizing patent data, these reports highlight selected
areas of technology related to such areas as coal Die first centralized comprehensive guide to Federal
gasification, shale oil, and solar and nuclear energy. In data resources and software in machine readable form
addition, a system was implemented whereby reports was developed by the Service. Through an inventory
may be tailored to the special needs and interests of survey of over 75 Federal agencies, the “Directory of
government agencies and private industry.
Computerized Data Files and Related Software Available
from Federal Agencies” was developed. It covers 60
A second phase of the Patent Application Locator and percent of the Federal establishment. During fiscal 1974,
Monitoring System was implemented, and more detailed 1,377 directories were sold.
information on the status and location of pending
applications is now monitored from receipt to publi­ An Agreements Program was established to provide
cation or abandonment. This System provides improved Government and non-government organizations with
access to customized products and services as a means of
services to Patent Office units as well as to the public.
fulfilling the Service’s mission. There were 75 ongoing
The final element in the quick query system for and new agreements iii fiscal year 1974, these for
retrieving patent classification information has been $1,541,000.
completed and is operational. This microfilm system In fiscal 1974, a new bulletin was added to the “Weekly
contains computer generated information identifying Government Abstract” series, entitled “Government
patents which are contained in each of the classes and Inventions for Licensing.” This publication announces
subclasses in the U.S. Classification System. The micro­ recently issued Government-owned patents and recently
film is used in the public search room and in the Office filed patent applications that are available for licensing.
of Patent Classification to provide instant subclass lists.
It also is made available for sale to the public through More than 2,500 patents and applications were an­
nounced as available for licensing in the “Weekly Gov­
the National Technical Information Service.
ernment Abstracts,” the “Federal Register,” and Patent
In view of comments received from the public, the Office’s “Official Gazette.” Over 3,000 paper and micro­
Patent Office returned to its pre-1968 practices of fiche copies of Government-owned patent applications
printing representative patent claims in the “Official have been sold to the public.
Gazette,” in lieu of an abstract of the invention. The A pilot program has been implemented which will allow
new format commenced with the October 1,1974, issue
customers to order microfiche copies of reports by
of the “Gazette.”
55

specific descriptors or identifiers. This innovation will
permit them to be more selective in their choice of
microfiche ordering.
A mass mailing to prospective “SRIM” (Selected Re­
search in Microfiche) customers was made in February
1974 with a response that will increase sales approxi­
mately $150,000 annually.

agencies of $730,000. Sales income for paper copy and
microfiche increased 17 percent over fiscal 1973.

Subscription Services Expanded

In carrying out this mission, the Office (1) conducts
research, engineering, and analysis in the general field of
telecommunication science to meet Government needs;
(2) acquires, analyzes, synthesizes, and disseminates in­
formation for the efficient use of the Nation’s tele­
communication resources; (3) performs analysis engi­
neering, and related administrative functions responsive
to the needs of the Office of Telecommunications Policy
(in the Executive Office of the President) in the
performance of its responsibilities for the management
of the radio spectrum; (4) conducts research needed in
the evaluation and development of telecommunication
policy as required by that Office and of other policy as
required by the Department of Commerce; and (5) as­
sists other Government agencies in the use of tele­
communications.

OFFICE OF TELECOMMUNICATIONS
Mission

The mission of the Office of Telecommunications,
established in 1970, is to assist the Department in
Agreements with Information Analysis Centers
fostering, serving, and promoting the Nation’s economic
development
and technological advancement by:
The Service is now performing marketing and other
services for information analysis centers. Also, consid­
• Improving man's comprehension of telecom­
erable effort has been made in getting the Atomic
munication science.
Energy Commission’s information analysis centers under
agreement. Fruition of these agreements will begin
• Assuring the effective use and growth of the
during fiscal 1975.
Nation’s telecommunications resources.
The “Weekly Government Abstract” newsletters are the
basic NTIS announcement product. During fiscal 1974,
11 newsletters were added to the “Weekly Government
Abstract” series: “Agriculture and Food,” “Biomedical
Technology and Engineering,” “Chemistry,” “Civil and
Structural Engineering,” “Communication,” “Electro­
technology,” “Energy,” “Government Inventions for
Licensing,” “Natural Resources,” “Ocean Technology,”
and “Physics.” Subscriptions to the series total over
24,000.
Technology Transfer

For the past l}/i years, the Service has distributed a
quarterly journal in 40 developing nations to promote
awareness and utilization of its resources. The major Telecommunication Science and Engineering
focus has shifted to local promotion by NTIS agents
overseas. During fiscal 1974, the Service concluded During the fiscal year, the Office:
agreements with eight national information organi­
zations within the developing countries. These will
• Performed the first comprehensive review of cable
perform local promotions of NTIS products and services.
television technology. The results have been used
Of the 40 countries covered, all but seven have ordered
by policy-makers and Government decision-makers
reports on new technology. This constitutes steady
in applying this technology both to Government
progress toward meeting the Service’s objective for
and non-Government use.
technology transfer to developing countries.
• Prepared two reports—one on channel-spacing and
another on antenna height tradeoffs—which were
Circulation and Revenue
used by the Federal Communications Commission
in determining channel-spacing restrictions in the
In fiscal 1974, 78,000 titles were announced by the
use of the new 900 megahertz region for land
NTIS. Of this total, 59,000 were added to the data base
mobile radio and in the relaxation of antenna
of 800,000 titles available for distribution. A total paper
heights for citizen-band radios.
copy and microfiche demand of 2.4 million copies
• Developed equipment that utilizes sky-scattered
generated $5.2 million in revenue.
radiowaves from the ocean to determine the height
Total revenue for all products in fiscal 1974 was $8.3
and direction of the seawaves in a 30 killometer by
million, inclusive of reimbursable income to other
30 killometer area from a distance of 1,500 miles.

56

Telecommunications Information

In this sector, the Office’s activities included:
• Publishing two brochures and one report on the
use of telecommunications for energy con­
servation.
• Developing handbooks, reports and short courses
on the use of optics in communications. Those
have been extremely useful to Government and
industry in assisting in evaluating optical communi­
cations systems.
• Performing an optical survey and report on per­
formance requirements for data communications
for the Government as a whole.

• Studied common carrier economics and industry
problems.
• Established the National Information Center for
“911,” a standard unified emergency telephone
number.
• Analyzed national policy on disaster warning
systems.
• Examined the networking aspects of computercommunications.
• Studied existing and potential international
communications markets for U.S. telecom­
munication services.
Working With Other Government Agencies

Managing the Federal Radio Spectrum

The Office provided support to the Interdepartment
Radio Advisory Committee. The Committee is instru­
mental in assigning radio frequencies to Federal depart­
ments. During fiscal 1974, the Office supported the
Committee by:
• Preparing, reproducing, and distributing briefing
papers prior to, and minutes, reports, and other
documentation subsequent to and preceding 141
meetings of the Committee.
• Processing 51,185 applications for frequency
assignments submitted by government agencies and
maintaining the Government’s Master File of
124,557 frequency assignments.
• Assisting in the development of the U.S. position
at the Maritime Mobile World Administrative
Radio Conference held in Geneva.
Numerous research and analysis studies have been
completed involving the overall assessment of the compatability of systems operating and proposed to operate
in frequency bands such as 7250-8400, 2700-3700, and
5000-5250 megahertz.
Supporting the Policy Makers

Telecommunications policy is formulated by the Office
of Telecommunications Policy in the Executive Office of
the President. The Office of Telecommunications has
supported the formulation of these policies as follows:
• Provided analysis and supporting material on land
mobile radio.•
• Studied the various aspects of the cable market and
its development, (e.g., copyright problems, com­
pany profiles, service demand).

57

A major share of the technology programs undertaken in
the Office was directed toward assisting other Federal
agencies. The programs that follow are not all-inclusive,
but represent its support to other agencies during fiscal
1974.
The Office launched a 5-year cooperative Community
Communication Program with the Department of Hous­
ing and Urban Development to address technical and
economic aspects of integrating multi-channel broad­
band systems into an overall urban communications
system which will serve both routine and emergency
needs of a community.
It formalized a cooperative program of research and
experimentation with the Federal Energy Adminis­
tration to bring about increased energy conservation
through the use of telecommunications in lieu of
travel.
It conducted a continuing program for the Federal
Aviation Administration on research into basic fac­
tors affecting the performance of air-ground radar
systems.
The Office provided predictions of high-frequency com­
munication reliability for buoy-to-receiving station com­
munications and expert consulting services in a variety
of technical areas in support of the Department of
Commerce’s National Data Buoy Project.
It designed, built, and tested for the U.S. Air Force, two
instruments, “RSL-1” and “RSL-2,” that accurately
measure and process the signal levels of receivers of a
microwave communications link.
It completed Phase I of a study for the Department of
Transportation on the use of radar activated braking
systems for automobiles.

PATENT OFFICE
SELECTED PATENTS WORKLOAD DATA FOR FISCAL 1970-74
Item
Applications for patents received:
Inventions.............................................................................................................
P lants....................................................................................................................
R eissues...............................................................................................................
T o ta l...............................................................................................................
Application disposals by examiners:
Applications a llo w e d .......................................................................................
Applications abandoned..................................................................................
T o ta l...............................................................................................................
Applications pending, June 30:
Pre-exam ination................................................................................................
Under exam ination............................................................................................
Post ex am ination ..............................................................................................
In issue process...................................................................................................
Total in o ffice..............................................................................................
Patents granted:
In v en tio n s..........................................................................................................
Plants ..................................................................................................................
R eissues...............................................................................................................
T o ta l...............................................................................................................
a Revised.

1970

1971

1972

1973

100,116
11 3
344
100,573

103,733
161
266
104,160

102,663
166
293
103,122

100,900
109
382
101,391

103,479
109
391
103,979

72,298
31,394
103,692

74,403
34,842
109,245

69,890
36,383
106,273

77,093
37,954
1 1 5,047

76,687
39,316
116,003

42,149
145,290
35,632
17,596
240,667

45,101
139,026
32,352
21,703
238,182

30,515
35,020
146,239 137,088
14,601 a 30,583
14,201
22,830
218,690 a 21 2,387

30,551
125,028
24,421
13,959
193,959

66,339
80
31 1
66,730

70,387
77
222
70,686

a 67,552
146
a 274
a 67,972

79,300
211
367
79,878

83,221
170
264
83,655

1974

SELECTED TRADEMARK EXAMINING WORKLOAD DATA FOR FISCAL 1970-74
Item
Applications for trademark filed:
For registration................................................................................................
For re n e w a l......................................................................................................
Disposals by Office:
Maturing to registratio n ...............................................................................
A bandoned........................................................................................................
a Revised.

58

1974

1970

1971

1972

1973

33,807
6,329

32,803
6,189

33,741
5,980

a 36,204
5,614

34,193
5,633

23,752
6,134

23,710
6,974

22,875
7,656

27,863
8,015

27,185
9,352

INCOME FROM FEES, FISCAL 1970-74
(In thousands of dollars)
Patent issue fee, including printing ..................................................
Patent application filing fee, including extra claim s....................
Printed copies, U.S. patents, designs, and trad em a rk s...............
Recording assignments..........................................................................
Trademark application filing fee.........................................................
Reproduction of re c o rd s......................................................................
Appeals, including b rie fs.....................................................................
Making, mounting, correction, and comparison of drawings . .
Trademark renewal filing f e e ..............................................................
Design application filing fe e ................................................................
Filing of affidavits pertaining to use or non-use o f tradem arks3
Special service on orders........................................................................
Certification o f re c o rd s........................................................................
Design issue f e e .......................................................................................
Disclosure documents filed0 ..............................................................
Trademark oppositions and cancellations........................................
Subscription service for copies............................................................
Petition fees..............................................................................................
A ttorney registrations and certificates.............................................
Patent reissue filing fee, including extra claims..............................
Certificates of correction.....................................................................
Patent and trademark disclaimers.......................................................
Other fees^.................................................................................................

1970

1971

1972

1973

1974

$9,000
8,720
2,588
1,801
1,235
1,159
677
138
159
1 15
(b)
144
136
113
23
38
37
32
41
28
15
(b)
79
26,278

$10,490
8,880
2,358
1,71 1
1,229
1,063
636
139
155
123
34
166
124
95
34
40
38
38
29
28
15
(b)
81
27,506

$10,436
8,838
2,467
1,851
1,243
1,065
757
155
150
129
127
122
120
91
60
41
39
37
26
25
19
18
67
27,883

$9,491
8,432
2,145
1,665
1,231
1,253
700
182
137
116
139
110
64
101
83
44
31
40
25
30
21
19
60
26,119

$1 1,058
9,018
2,312
1,669
1,237
1,097
966
214
143
111
142
189
118
114
132
45
33
44
40
38
23
22
57
28,822

** Includes fees first applicable in FY 1971 under P.L. 89-83.
b Less than $15,000.
® Fee was not in effect until May 1969.
“ Approximately 35 types of fees amounting to less than $15,000 for each type.

59

NATIONAL TECHNICAL INFORMATION SERVICE
SELECTED STATISTICS FOR FISCAL 1973-74
1973
New reports processed by source agency:3
Interror .............................................................................................................................................................................
NASA ................................................................................................................................................................................
A EC ..................................................................................................................................................................................
O th e r..................................................................................................................................................................................
T o ta l.............................................................................................................................................................................
Report sales:
Copies:
Paper c o p y .................................................................................................................................................................
M icrofiche...................................................................................................................................................................
Income:
Paper c o p y ................................................................................................................................................................
M icrofiche...................................................................................................................................................................
T o ta l.....................................................................................................................................................................
Total sales income:
Documents (paper and m icro fich e).........................................................................................................................
N T IS earch ........................................................................................................................................................................
Bibliographic data leasing.............................................................................................................................................
S ubscriptions...................................................................................................................................................................
Special tech no lo g y .........................................................................................................................................................
T o tal.............................................................................................................................................................................
Reference inquiries:
Quotations (includes subject searches)....................................................................................................................
Order id en tificatio n .......................................................................................................................................................
T o tal.............................................................................................................................................................................
3 Represents reports announced and/or added to collection.
b Magnetic tape input.
c Reported under “ Documents (paper and m icrofiche).”

1974

18,188
15,522
b 8,123
b 13,727
15,694
71,254

18,521
13,341
7,083
15,200
24,245
78,390

697,000
1,941,000
2,638,000

757,000
1,599,000
2,356,000

$3,368,000
1,087,000
$4,455,000

$4,126,000
1,108,000
$5,234,000

$4,455,000
74,000
18,000
1,051,000
(c)
$5,598,000

$5,234,000
155,000
106,000
1,92 3,000
833,000
$8,251,000

100,494
206,728
307,222

110,353
239,115
349,468

CHAPTER XI

OCEANIC AND ATMOSPHERIC ACTIVITIES

GENERAL
Mission

The National Oceanic and Atmospheric Administration
carries out programs designed to further the Nation’s
safety, welfare, security, and commerce through increas­
ing our knowledge and rational use of the natural
environment. These involve:
• Ensuring continuing abundance of varied fishery
products through promotion of the economic and
safe use of all fishery resources, conserving and
managing resources of interest to the United
States, and increasing U.S. resources.
• Providing the Nation with maps, surveys, and
related information for safe navigation and ac­
curate location, through navigational and aero­
nautical charts and aids, coastal maps, tidal and
Great Lakes data, and national networks of geo­
detic control and related surveys.
• Providing a sound basis for planning and conduct­
ing weather-sensitive activities and protecting life
and property from natural disasters through
(1) weather, river, flood and oceanic forecasts and
warnings, (2) specialized forecasts for aviation,
space, agriculture, and fire control interests, (3) es­
tablishment of practical means to modify hur­
ricanes and severe storms, (4) development of
theoretical and experimental descriptions of the
ocean and atmosphere as a total system, and
(5) data collection and dissemination.
• Fostering balanced development, conservation, and
management of coastal zone and marine resources,
through (1) information on human impact on
environmental ecosystems, (2) protection of ma­
rine mammals and endangered species, (3) creation,
with the states, of a national conservationdevelopment strategy, (4) improvement of global
ocean-process forecasts, (5) identification of new
resources and techniques for efficient marine op­
erations, and (6) provision of advisory services and
specialized marine, educational, and environmental
data.

purpose associate administrators—one for marine re­
sources and one for environmental monitoring and
prediction.
The Administrator

The Administrator represents the Department on a
number of national and international bodies dealing with
the development and application of environmental
science and technology to meet national and social
needs. He is the Permanent Representative of the United
States to the World Meteorological Organization, and the
U.S. Commissioner to the International Whaling Com­
mission. He chairs the Marine Fisheries Advisory Com­
mittee, the Interagency Committee on Marine Science
and Engineering, and the Federal Committee for Mete­
orological Services and Supporting Research, and serves
on seven other advisory and interagency committees. He
is also the U.S. principal in U.S./French Cooperation in
Oceanography and U.S. Chairman of the Joint Com­
mittee for the U.S./U.S.S.R. Cooperation in studies of the
World Ocean.
Associate Administrator for Marine Resources

The Associate Administrator for Marine Resources has
cognizance over, and establishes policy for, the National
Oceanographic and Atmospheric Administration’s ma­
rine resources, mapping, charting, and geodetic pro­
grams. He also plays a key role in coordination of these
programs elsewhere in the Federal Government.
Coordination of Federal ocean programs is conducted
through the Federal Council for Science and Tech­
nology, and the Administration exercises leadership in
marine mapping and charting through the Council. This
work is critical to safety at sea, development of offshore
resources, and efficient use and protection of the marine
areas bordering our shores.
The Administration also coordinates Federal geodetic
and related surveys. National geodetic control networks
and related surveys are essential to mapping, planning,
and construction across the Nation, to protection of
public and natural resources and to national defense. In
fiscal 1974, a revised “Classification, Standards of
Accuracy, and General Specifications of Geodetic Con­
The National Oceanic and Atmospheric Administration trol Surveys,” was prepared and published by the
is headed by an Administrator assisted by two special- Administration-chaired Federal Geodetic Control
61

Committee. This document prescribes the criteria re­
quired to establish national geodetic control networks.
The Administration provides national leadership in
several bilateral, international marine agreements. These
involve cooperation with France, Japan, and the Soviet
Union. In fiscal 1974, the U.S.-French project “FA­
MOUS” (French-American Mid-Ocean Undersea Study)
began operations along the Mid-Atlantic Ridge. Three
submersibles, one American and two French, are diving
to depths of 10,000 feet to study the dynamic processes
which occur in an area where new crust is being
generated and the ocean floor spreading, increasing the
separation between North America and Europe.
The Administration also provides leadership in other
bilateral and international agreements and policy advice
to nine international fisheries commissions. In the
International Commission for the Northwest Atlantic
Fisheries, its efforts culminated in an agreement to
reduce the total fisheries catch quota from 924,000 to
850,000 metric tons, while providing an increase in the
U.S. catch of 16,600 metric tons.
The Associate Administrator also manages the Manned
Undersea Science and Technology Program, which serves
as a focus for civilian manned undersea activities in
coastal waters. Work included:

Associate Administrator for Environmental
Monitoring and Prediction

The Associate Administrator has cognizance over and
establishes policy for meteorological and other programs
which entail monitoring and prediction of the environ­
ment and environmental modification. He is the focal
point for emergency readiness planning against natural
disasters, and provides management and coordination for
the Global Atmospheric Research Program, International
Hydrologic Decade, and the special foreign currency
research program. He also carries out coordination with
Committees of the National Academy of Sciences and
the National Academy of Engineering and discharges
Federal meteorological coordinating functions assigned
to Commerce by the Office of Management and Budget
and by the President for the World Weather Program.
The coordination of Federal meteorological and marine
environmental prediction programs and of preparing and
maintaining related Federal plans is performed by
interdepartmental committees which conduct sys­
tematic, continuous reviews of meteorological and ma­
rine environmental prediction requirements and support­
ing research. Federal plans for the following were
published in fiscal 1974:
•
•
•
•
•
•
•
•
•

Meteorological services and supporting research.
The World Weather Program.
Marine environmental prediction.
Hurricane operations.
East coast winter storms operations.
Severe local storms operations.
Meteorological rocketsonde observations.
National climatic services.
Cooperative backup for severe local storms and
aviation forecasts.
• Rocketsonde support for special events.
• Weather radars.

• Management of the Administration’s safety pro­
gram for research submersibles and scuba diving.
• Provision, by leasing, of underwater platforms for
fisheries management and ocean dumping studies,
and for interagency and international man-in-thesea work.
• Coordination and management of field operations
involving manned underseas science and tech­
nology.
• Cooperation with, and transfer of technology
from, the Navy and NASA to civilian manned
underwater activities.
• Continuing assessment of civilian agency needs for
manned underwater platforms and coordinating
use of available commercial and Navy platforms by
During fiscal 1974 the National Oceanic and Atmos­
civilian agencies.
pheric Administration continued its lead role in coor­
dinating U.S. participation in the International Field
The Associate Administrator also coordinates ocean Year
the Great Lakes, the Atlantic Tropical Experi­
pollution work under the provisions of the Marine ment for
(conducted
the Global Atmospheric Re­
Protection, Research, and Sanctuaries Act of 1972. The search Program), andunder
the
World
Weather Program.
first annual “Report to the Congress on Ocean Dumping
and Other Man-Induced Changes to Ocean Ecosystems” There was continued progress in editing, processing,
was issued in March 1974.
analysing, and archiving of Great Lakes data collected

62

from April 1972 to March 1973. The U.S. archive is
being established at the National Climatic Center at
Asheville, North Carolina. Final U.S.-Canadian scientific
reports are in initial preparation in each of six major
areas: (1) terrestrial water budget, (2) energy balance,
(3) biology and chemistry, (4) boundary layer, (5) lake
meteorology, and (6) water movements. These reports
will be published in the 1975-77 period. Status and
progress on 78 U.S. tasks and a comparable number of
Canadian tasks are published in a joint U.S.-Canadian
Bulletin published quarterly by the Administration. In
April 1974, the Great Lakes project office became a part
of the Great Lakes Environmental Research Labora­
tory within the Administration’s Environmental Re­
search Laboratories.
The Atlantic Tropical Experiment (“GATE”) was con­
ducted between June 15 and September 23, 1974, over a
20-million-square-mile area extending from the eastern
Pacific Ocean, across Latin America, the Atlantic Ocean,
and Africa to the western Indian Ocean. The Experiment
was designed to gather information on the behavior of
the tropical atmosphere and its ultimate effects on
global weather. Sponsored by the World Meteorological
Organization, a U.N. agency, and by the International
Council of Scientific Unions, the 101-day study directly
involved scientists and technicians from 66 nations.
Field operations were directed by an international
control center at Dakar, Senegal. Special instruments
were placed aboard 40 ships, approximately 60 buoys,
12 aircraft, and six satellites. These observed and
recorded meteorological and oceanographic phenomena
through extensive depths of the atmosphere and ocean.
The U.S. contribution included nine ships, eight aircraft,
buoys, and geostationary and polar orbiting satellites.
The Administration coordinated and directed U.S. par­
ticipation, but the Department of Defense, State, and
Transportation, the National Aeronautics and Space
Administration, and the National Science Foundation
also contributed. Each nation that contributed observa­
tion platforms (ships, aircraft, buoys, or satellites) for
the experiment will process and validate the observations
and data collected by instruments on these platforms.
By March 1976, this data will be sent to the two World
Data Centers operated by the United States and the
Soviet Union, where it will be available for scientific
uses.
The World Weather Program consists of two major
components: the World Weather Watch and the Global
Atmospheric Research Program. Senate Concurrent Res­
olution 67 of the 90th Congress urges U.S. participation
in the World Weather Program and requires an annual
report. The fiscal 1975 plan featured the past, present,
and future activities of the Global Atmospheric Research
Program.

The Administration continued its active participation
in providing guidance for implementation of the
United Nations Environment Program. At the request
of the State Department, it took a lead role in
developing the proposed U.S. program for a Global
Environmental Monitoring System. This proposal was
considered, along with others, at an Intergovernmental
Working Group on Monitoring convened by the United
Nations in February 1974, and the recommendations
of that group were in close accord with the framework
for global monitoring proposed by the United States.
The Administrator of the National Oceanic and
Atmospheric Administration was chairman of the U.S.
Delegation to the Intergovernmental Working Group.
At its second session held in March 1974, the U.N.
Environmental Program Governing Council authorized
the implementation of the Global Environmental
Monitoring System, as well as new thrusts in the areas
of fisheries, natural disasters, oceanic monitoring, and
inadvertent climate change.
A national program for continuing environmental moni­
toring for the marine leg of the Trans-Alaska Pipeline
System was prepared at the request of the Federal Task
Force for Alaskan Oil Developments. The program is
designed to assure safe and efficient marine transport of
oil from the Alaskan North Slope.
A comprehensive field survey was conducted to investi­
gate the effectiveness of the Administration’s natural
disaster warning system during the widespread tornado
outbreak of April 34, 1974. As a result of the findings
the report recommended (l)th e expansion of the
Administration’s Weather Radio to provide more direct
dissemination of warnings, (2) the accelerated installa­
tion of local use radars for severe storm detection, and
(3) increased assistance to communities for disaster
preparedness planning.
A supplement is being prepared which will update the
Federal Plan for Natural Disaster Warning and Prepared­
ness. The plan is a joint effort of Federal agencies
involved to present a coordinated response to needed
improvements in the detection, prediction, warning, and
preparation for natural disasters.
Public Law 92-205 requires that all nonfederally spon­
sored weather modification activities in the United
States be reported to the Secretary of Commerce. By
December 1973, 65 reports of project activities covering
rain and snow increase, hail reduction, and fog suppres­
sion had been received. Federal agencies recently have
agreed to report their field operations, thus creating a
central source of information for all weather modifica­
tion activities in the United States. A report summariz­
ing the data received from reports through December
1973 was published.
63

was continued in cooperation with the Administration’s
National Weather Service. During the 1974 season,
improved instruments for this purpose with directional
capability were tested at 19 Service offices in the field.
Based on the encouraging results from these tests, the
Service and the Wave Propagation Laboratory are design­
ing operational instruments for incorporation in the
Service’s severe storm warning system. Other activities in
the Laboratory’s Remote Sensing Program includes
deployment of the dual Doppler radar system in the
National Hail Research Experiment conducted by the
National Center for Atmospheric Research in north­
eastern Colorado. This radar system shows threedimensional wind flow patterns within severe storms for
use in understanding storm dynamics and developing
improved numerical models of these storms. The Labora­
tory is also studying the significance of ultra-low
frequency sound waves emitted by some severe storms,
using three arrays of sensitive microbarographs. The
information is being analyzed to determine the potential
of this approach for storm monitoring. It is also
conducting field tests of an infrared laser Doppler
system to serve as a remote wind velocity sensor for
possible use in the study of severe storms.
During fiscal 1974 the National Weather Service de­
veloped a 2 to 6 hour severe storm probability forecast
to provide additional guidance in preparing warnings.
Research is continuing in an effort to construct an
advanced, operational three-dimensional planetary
boundary model that will be capable of predicting
temperature, humidity, and wind within the lowest 2
kilometers of the atmosphere for a 24-hour period. It is
anticipated that the output from this model will be
experimentally used for severe storm prediction in fiscal
1975.

SEVERE STORMS RESEARCH

Tornado and severe thunderstorm research is centered at
the National Oceanic and Atmospheric Administration’s
National Severe Storms Laboratory in Norman, Okla­
homa. The research emphasizes physics of severe local
storms and the development of methods for early
detection and identification of these storms. Theoretical
work is supported by an observation program including
surface, upper air, radar, satellite, and aircraft observa­
tions. Advanced techniques are developed for probing
the atmosphere and for processing, displaying, and
transmitting severe storms data. Dual Doppler radars
with real time displays of the radial component of the
wind provide observations of storm interiors and a basis
for analysis of internal storm circulations. Used with
chaff (hair-like fibers with a radar reflective coating)
distributed in the clear air near the thunderstorm, air
motion fields both inside and adjacent to storms can be
probed and their interrelationship determined. The
Doppler radar system is complemented by a network of
surface stations recording temperature, pressure, humid­
ity, wind speed and direction, and rainfall. Rawinsonde
stations (which track meteorological balloons) provide
upper air information, which is enhanced by measure­
ments from a 1500 foot instrumented TV tower.
On April 20 and June 8, 1974, tornadic storms passed
through the area of dual-Doppler radars. Tornadic
circulation “signatures” similar to those observed in
1973 were again in evidence. Portions of these cloud
circulations were well photographed. Correlated radar,
surface network, and rawinsonde observations, as well as
the dual Doppler radar information, were obtained as
the circulation moved through the area.
Theoretical models of convective cloud precipitation and
tornado formation are being developed. A model of the
“dry-line” and its role in the initiation of squall lines has
been completed and is now undergoing evaluation as a
forecast tool.
A comprehensive study of the April 29-30, 1970
tornado which passed through Oklahoma City has been
completed. This study brings together observations made
by several laboratories. It details electrical phenomena,
infrasound, ionospheric disturbances, surface, upper air,
and radar observations accompanying the storms, and
provides an explanation of possible factors in tornado
initiation.
The National Severe Storms Laboratory’s surface radar,
rawinsonde network, and instrumented 1500-ft. tele­
vision tower have been part of a NASA Skylab experi­
ment to investigate mesoscale features in the atmos­
pheric environment as they relate to storm development.
In the Remote Sensing Program, conducted by the Wave
Propagation Laboratory, the field study to identify
electromagnetic signals associated with tornadic storms

COASTAL ZONE MANAGEMENT

During the year, the National Oceanic and Atmospheric
Administration’s Office of Coastal Zone Management
began the funding under the Coastal Zone Management
Act of 1972. Funds in the amount of $7.2 million were
appropriated for grants to assist states in preparing
management programs for their coastal areas. By yearend, 31 of the 34 eligible states and territories had
submitted grant proposals, and funds for 28 of these
were awarded. It also granted the State of Oregon
$824,000 to enable it to acquire a portion of Coos Bay
as an estuarine sanctuary for research and educational
purposes.
In addition to providing funding, the Office has assisted
the states in developing their management and sanctuary
programs by:
• Holding workshops and otherwise bringing to the
States’ attention the unique capabilities that exist
64

•
•

•
•
•

within the National Oceanic and Atmospheric
Administration.
Sponsoring a successful second national C onfercnce on Coastal Zone Management in March at
Charleston, South Carolina.
Assisting in the preparation by the Conservation
Foundation of the volume Coastal Ecosys­
tems: Ecological Considerations for the Manage­
ment o f the Coastal Zone, as well as the major,
four-volume document Coastal Ecosystems o f the
United States, a basic reference work for coastal
zone managers.
Holding in November a national conference on the
background, purpose, and direction of the estuarine
and marine sanctuary programs which the Office
administers.
Establishing a regional desk structure to deal
directly with state representatives on a regional
basis.
Initiating coordination with other Federal agencies
to make them aware both of the opportunities
available in assisting States in preparing coastal
zone management programs as well as their re­
sponsibilities for ensuring consistency of Federal
actions with approved State management pro­
grams.
SEA GRANT

Wave attenuation studies at the University of California
at San Diego led to the development of a breakwater
system with the potential for revolutionizing the use of
coastal regions. Rows of submerged spherical buoys are
anchored by cables to the ocean floor. Each tethered
float is propelled by the incoming waves, pushing aside
the slower-moving water around it. When it reaches the
limit of its tether, the float reverses and swings back
against the waves like an inverted pendulum. The float’s
turbulent motion, working against the surrounding
water, dissipates some of the waves’ energy.
Four years ago Sea Grant researchers at the University of
Hawaii located precious coral in the State’s waters,
launching an industry that currently has a retail sales
level of $10 million to $14 million, employs more than
500 persons, and provides the State with $2 million
annual tax revenue. University scientists now are ad­
vising the industry on harvest levels that will best
preserve the coral resource and allow the industry to
thrive in future years.
Salmon culture methods developed by the University of
Rhode Island’s Sea Grant Program form the basis for a
planned commercial fish farming operation. Rhode
Island Aquaculture Inc., will grow salmon from egg stage
to mature, marketable size, a process that requires 2 to 3
years. The company has leased a site for a 6,000-squarefoot building at Narragansett Oceanic Research Indus­
trial Park.
THE NOAA CORPS

The National Sea Grant Program was created by Con­
gress in 1966, to speed development of the Nation’s
marine resources while ensuring that these resources are
wisely managed, conserved, and used. The National
Oceanic and Atmospheric Administration’s Office of Sea
Grant makes grants and contracts to universities, labora­
tories, and other institutions for research, education, and
advisory services that further the Program’s goals. At
least a third of the funds for each Sea Grant program
must come from non-Federal sources.
During fiscal 1974, the National Sea Grant Program
supported work at almost 100 colleges, universities, and
other institutions in 28 states, plus the District of
Columbia and several island territories.
A technical assistance grant awarded through the Uni­
versity of Washington Sea Grant Program helped perfect
a technique for literally exploding barnacles and other
growth from vessel hulls. Using this method, called the
Sequential Sea Mesh System, the hull of a ship can be
cleaned in about 2 hours without damage. The cleaning
operation may take a day or more when conventional
techniques are employed.

The Administration’s officer corps—the “NOAA
Corps”—was leveled off to 335 officers by year’s end,
down from 341 at the beginning of the period and well
within the Congressionally-authorized average strength
of 358 for the fiscal year.
Recruiting of women took a modest, yet dynamic
upturn with the addition of nine female officers over the
previous year. Thus, a whole new chapter has been
opened for the Corps with women being billeted at sea
and ashore on the same basis as male officers of the
Corps. Another changing aspect of the Corps has been
the further increase in the recruitment of officers with
educational backgrounds in the life sciences, particularly
biology, fisheries, and zoology. Approximately onefourth of the officers appointed during the past year
have life science backgrounds. Attendant with this has
been a corresponding increase in officer assignments to
the life science areas.
The officer training program, which uses the facilities of
the Maritime Administration’s Merchant Marine Acad­
emy at Kings Point, New York, has been strengthened

65

by the addition of lectures in Management Science, plus
the significance of Equal Employment Opportunity and
Civil Rights Programs.
A staff study, the first of its kind, has been prepared on
problems of Corps retired officers and widows, with
special reference to difficulties that may relate to
Federal responsibilities. Although area interviews were
taken, the bulk of the data was derived from question­
naires that were mailed to each individual or family. The
results of this research are being issued in a series of
installments appearing in the monthly NOAA Corps
Bulletin.
NATIONAL WEATHE R SERVICE
Mission

The National Weather Service is a major component of
the National Oceanic and Atmospheric Administration.
Through some 400 field facilities, it observes and reports
on atmospheric, river, and ocean conditions of the
United States and its possessions and issues forecasts and
warnings of weather, flood, and sea conditions that
affect the Nation’s safety, welfare, and economy. The
Service also participates in international meteorological,
hydrologic, oceanic, and climatological activities, ex­
changes data and forecasts, and provides forecasts for
domestic and international aviation and for shipping on
the high seas. Through a cooperative international
network of seismic and tide stations, it also observes and
reports on earthquakes and tsunamis.
Severe Weather and Floods

Devastating tornadoes occurred in fiscal 1974, especially
in the Southern and Ohio Valley States. There were at
least 770 tornadoes, causing 382 deaths, thousands of
injuries, and an estimated $650 million property dam­
age. During April 3-4, some 80 tornadoes occurred
within an area extending from the Mississippi to the
Appalachians. These tornadoes caused 328 deaths in 11
states, over 6,000 injuries, and an estimated $540
million in damage. The most concentrated damage was
sustained in the city of Xenia, Ohio. The April 3 death
toll was the highest since March 18, 1925, when a
Tri-State tornado accounted for 689 fatalities.
Fiscal 1974 was the first year since 1962 that a
hurricane did not cross the United States coastline.
However, Tropical Storm Delia did claim five lives and
cause $18 million in damages in Texas and Louisiana.
Record flood levels occurred on many small streams in
Kansas and southeast Nebraska as the result of torrential
rains on October 10-11, 1973. In January 1974 there
was severe flooding along coastal streams in the Pacific
northwest. Spring rains of up to 17 inches fell in

Mississippi over the weekend of April 13-14, with record
flooding in several communities in the Pearl and
Pascagoula river basins. Three thousand people were
safely evacuated as the result of accurate and timely
flood forecasts.
Activities and Achievements

A major new thrust, “AFOS”, was initiated during fiscal
1974. The acronym stands for Automation of Field
Operations and Services. The concept is to develop an
overall integrated system for achieving maximum feasi­
ble automation of the data acquisition, handling, and
communication functions of field stations. The major
goal is to improve services to the public by improving
the timeliness and quality of forecasts and warnings and
by increasing the productivity and effectiveness of
Service personnel through the automation of routine
tasks.
During fiscal 1974, an “AFOS” facility was installed and
began experimental operations at Service Headquarters
in Silver Spring, Maryland. With the complex of hard­
ware and software in this facility, the basic forecast
office can be simulated to verify system design and to
carry out experiments prior to field implementation.
Lessons learned from the experimental facility will be
applied to an eventual network of 52 modernized
Weather Service Forecast Offices, nationwide. These will
be electronically linked with each other and with 12
regional River Forecast Centers, the National Meteoro­
logical Center, the National Severe Storms Forecast
Center, National Hurricane Center, and National Cli­
matic Center. The “AFOS” operational system is sched­
uled for completion by fiscal 1980.
On September 16, 1973, the Service assumed responsi­
bility for the Tsunami Warning System previously
operated by the Environmental Research Laboratories of
the National Oceanic and Atmospheric Administration.
One of its first actions was to provide emergency power
sources for the Honolulu and Adak Observatories.
Community disaster preparedness programs expanded
during fiscal 1974 with the addition of 14 community
preparedness meteorologists at field offices. The value of
community disaster preparedness was repeatedly re­
proven during the year. Outstanding examples involved
the record outbreak of tornadoes in the Salina, Kansas,
area on September 25, 1973, and at Drumright, Okla­
homa, on June 8, 1974.
New steps were taken in fiscal 1974 to expedite the
collection of hydrologic data in order to speed up
warnings of flood events. River and rainfall gauging
facilities at over 100 locations can now be automatically
interrogated whenever a flood threat appears to be

66

The AMOS III (Automatic Meteorological Observing)
system installations are well underway. A total of 65
operational units are on hand; about 20 of them are
installed and the remainder will be installed by fiscal
1976.
Fiscal 1974 saw great activity in the solar radiation
program. Four data recorder/integrators were procured
for evaluation. One preproduction pyranometer was
procured. The pyranometer was officially accepted in
June 1974 and is the basis for future purchases to
upgrade the solar radiation network.
Twenty-one upper air minicomputers were installed at
upper air stations. The minicomputers replaced com­
mercial time-share data reduction at 13 stations. At
eight other stations the minicomputers reduced the
manpower required for manual data reduction from
two to one man. The final coded messages produced
by the minicomputer are more accurate than those
done manually and by commercial time-share com­
puters. Archiving of data will be done by use of
magnetic tape produced by the minicomputer rather
than the manual key punching or paper tape methods
now used at the National Climatic Center. By mid-fiscal
1976, all 99 Service-operated and Service-sponsored
upper air stations will use the minicomputer for data
reduction.
A modern local warning radar was installed at
Lubbock, Texas, to replace the obsolete radar there.
This new C-band equipment is the forerunner of 66
local warning radars to be installed over a 4-year
period. Procurement of the first 27 radars was initiated
in fiscal 1974. Procurement of new modem S-band
radars for network locations at Brookneal, Virginia,
and Longview, Texas, was also begun. Operation of
these radars is scheduled to begin in the fall of 1975.
They will be used to monitor severe thunderstorms,
tornadoes, and hurricanes and will provide a basis for
issuing warnings.
Tire method of Model Output Statistics (“MOS”) was
used to produce automated forecasts of numerous
weather elements including the occurrence, type, and
amount of precipitation, maximum and minimum sur­
face temperatures, surface wind speed and direction,
cloud amount, ceiling, visibility, thunderstorms, and
severe local storms. Plans call for a completely auto­
mated, computer-worded, local weather forecast to be
produced routinely as part of the AFOS program
described above.

developing. Additional flash flood alarms were installed.
Nineteen communities in 14 states can now be warned
by these alarms, substantially reducing the flood threat
to people living and working in the flood plains of
downstream areas. Also, river forecasting centers are in
■ the process of being tied in to the Administration’s large
computer system in Suitland, Maryland. This will add
greatly to computer capability of each of these centers
and improve the timeliness and accuracy of river and
flood warning services.
The World Agricultural Weather Watch was implemented
in February 1974. Monthly temperature and precipita­
tion values and their departure from 30-year normals are
presented in a series of maps covering the major
agricultural areas of the world. The Weekly Weather and
Crop Bulletin and the Foreign Agricultural Service serve
as the vehicles for dissemination.
An Environmental Study Service Center was established
in Auburn, Alabama, to serve the agricultural areas of
Florida, Georgia, and Alabama.
In cooperation with the Federal Aviation Administra­
tion, the Aircraft Owners and Pilots Association and the
Public Broadcasting Service, the Service is participating
in a nationwide Thursday and Friday evening Aviation
Weather television program. This program depicts pilot
weather outlooks for the coming weekend. Over 175
stations participate.
The first edition of “Worldwide Marine Weather Broad­
casts” was issued in February 1974 as a successor to
Weather Service for Merchant Shipping This document
is furnished free to all ships in the U.S. Cooperative Ship
Weather Reporting Program and has been adopted by
the Defense Mapping Agency as a replacement for its
publication, Radio Weather Aids, for use by the U.S.
Navy. Several foreign countries use the document in
their civilian and naval fleet operations.
The Service made an in-depth study of all U.S. marine
weather broadcasts. In close coordination with the Coast
Guard, Navy, and commercial marine broadcast com­
panies, changes are being made to ensure full coverage of
coastal, offshore, and high seas areas without duplica­
tion. The forecasts and warnings disseminated on these
broadcasts are being tailored toward specific user
groups: the mariner, fisherman, offshore driller, and the
recreational boatman. One commercial broadcast com­
pany, which provides marine broadcasts free of charge,
was able to reduce its transmissions by 50 percent
without detriment to the program.
The RAMOS (Remote Automatic Meteorological Ob­
serving) system met its test and evaluation criteria. An
order was placed for 21 units. Plans are for an increased
order which will result in 50 units being available for
installation by fiscal 1976.

A new Subsynoptic Update Model, or (“SUM”), became
operational, replacing the Subsynoptic Advection Model
(“SAM”). The purpose of the new model is to provide
more accurate short-range forecasts of sea-level pressure
and precipitation.
67

The Service has under development prototype seismic and two field parties were engaged in hydrographic
and tide instruments which will telemeter data via operations supporting the nautical charting program.
satellite.
Reorganization of the Lake Survey Center will transfer
chart compilation functions to the Office of Marine
Surveys and Maps effective July 1, 1974.
Interagency Cooperation
12,000 linear miles of metric aerial photography
The Service continued a variety of reimbursable tasks for About
were
flown
by two photographic missions. Field sur­
other agencies. Two of the most significant were support vey units were
assigned to various coastal zone map­
of Skylab flights, largely to aid in scheduling the earth ping jobs; approximately
130 maps were complied
sensing experiments, and of NASA unmanned Earth for the marine charting program
and in support of
Resources Technology Satellite operations to assist in hydrographic operations. Field surveys
for 163 airports
the economical use of that Satellite’s earth sensing were completed for the Federal Aviation
Administra­
equipment.
tion, and obstruction charts were compiled and pub­
The community disaster preparedness program was lished for 144 airports. Approximately 4,300 corrections
enhanced in May 1974 with the passage of the Disaster were applied to 85 nautical charts. Research and
Relief Act Amendments of 1974. These place much development activities support continuing and proposed
more emphasis on preparedness. The Service continued photogrammetric programs. Cooperation with the State
its cooperation with the Federal Disaster Assistance of Florida continued in mapping the Florida coastal
Administration, the Defense Community Preparedness zone, and 33 coastal boundary maps were completed.
Agency, and other Federal and state agencies to assist in Fifteen special flood study reports and map plates were
delivered to the Department of Housing and Urban
implementing the Act.
Development as part of the reimbursable Coastal Inunda­
As part of the continuing reimbursable support to the tion Mapping Program. Photogrammetric compilation of
U.S. Geological Survey, the Service operates an extensive bathymetry on seven maps at Beaufort Inlet, North
network of regular- and strong-motion seismographs in Carolina,
was begun. Ten National Ocean SurveyAlaska.
National Weather Service Storm Evacuation Maps in the
areas of Norfolk, Virginia, and Long Island, New York,
were issued.
NATIONAL OCEAN SURVEY
The 5-year tidal and tidal current survey continued in
Mission
Cook Inlet, Alaska, and a similar 5-year circulatory
The National Oceanic and Atmospheric Administration’s program was begun in Puget Sound. The Deep-Sea Tides
National Ocean Survey conducts land and ocean survey Program was quite successful during the year, with 100
and research operations which (1) promote commerce percent retrieval of equipment on three deployments.
and transportation, (2) provide data for planning the Records were excellent from all three sites. Most
rational use of the environment, and (3) contribute to significant was the observing of tidal fluctuations over a
the understanding and forecasting of hazards due to 6-month period at a depth of 3,800 meters. The Survey
crustal motion as the consequence of either earthquakes participated in an international inter-calibration of deepor subsidence. To accomplish this mission, the Survey sea tide gages at Brest, France. Requests for tidal
conducts continuing programs in physical oceanography,
to be used in litigation have drastically
geodesy, aeronautical and nautical charting, technology, information
increased.
and engineering and scientific research. Data from these
programs are disseminated in the form of maps, charts,
Marine Technology
data reports, and research and technical papers.
The procurement contract for a prototype, operational
Marine Surveys and Maps
deep-ocean meteorological buoy was completed in fiscal
Accomplishments during fiscal 1974 included the is­ 1974. This buoy is the forerunner of a planned array of
suance of one new, three reconstructed, and 467 revised 35 data buoys to be located off the coasts of the United
nautical charts, as well as the compilation of five States and in the Great Lakes. Improvements in the
bathymetric maps. New editions of five Coast Pilots and reliability of experimental buoys resulted in the decision
annual supplements for three other Coast Pilots were to phase them into operational use as providers of
published. The National Ocean Survey contributed meteorological data. Several cooperative programs were
1,428 articles and 50 correction chartlets for publication successfully formulated in support of various national
in the Notice to Mariners. A total of 88 hydrographic and international scientific projects including the
surveys were verified, and 60 were reviewed. Eight ships Global Atmospheric Research Program, the Atlantic

68

Coordination of surveying with other Federal, state, and
local government agencies has been increased. The need
for surveying has been recognized by state and local
governments, many of which have set up control and
land surveying organizations. In June 1974, the Office
inaugurated a new program providing for the assignment
of a geodetic advisor to each state that wished to
participate.
High-precision traverse work continued with 1,174
kilometers observed during the year. Twenty-two
positions were determined from Doppler satellite
observations. Electronic distance base lines are being
measured, and astronomic latitudes, longitudes, and
azimuths are being observed to strengthen the horizon­
tal network.
The monumented reference system of the geodetic
networks is used as the basis for mapping, surveying,
and engineering work as well as planning and environ­
mental studies. The demands for survey control,
especially by state and local agencies and private
surveyors, have increased appreciably in recent years. A
new publication, “Classification, Standards of Accuracy
and Specifications of Geodetic Control Surveys,” was
published this year, and it includes more rigid and
higher accuracies. These more rigid specifications, made
possible by the development of more precise obser­
vational instruments such as electronic distance devices
and self-leveling instruments, are required because of
high land values, construction costs, and environmental
problems.
Work was started at the beginning of the year on a
new horizontal network adjustment. This adjustment,
recommended by an ad hoc committee of the National
Academy of Sciences, is scheduled to be completed in
5 years.

Tropical Experiment, the Arctic Ice Dynamics Joint
Experiment, and the Shelf Dynamics Program.
The Survey expanded inter-laboratory calibrations of
marine sensors with Canada, Denmark, France, and
countries participating in the Atlantic Tropical Experi­
ment. Operations at the Regional Calibration Centers
established last year at Seattle, San Diego, and Bay St.
Louis, Mississippi, have been receiving an increasing
number of requests for oceanographic instrument cali­
brations. The National Oceanographic Instrumentation
Center’s test and evaluation of non-moving part current
meters has had substantial impact on the marine
community.
The Engineering Development Laboratory provided en­
gineering support for the Cook Inlet Circulatory Project
and the Marine Ecosystems Analysis Project in the New
York Bight. For Cook Inlet, a current meter mooring
system capable of operating in currents up to 5.5 knots
was designed and tested, and assistance was provided for
software to process current sensory data. The Labora­
tory provided engineering support of data acquisition,
processing, and procurement under the Marine Ecosys­
tems Analysis Project. It also designed a bottom-resting
current measuring system and camera combination.
Fleet Operations

The Survey’s Office of Fleet Operations managed the op­
eration and utilization of 21 ships in the Fleet of the
National Oceanic and Atmospheric Administration. A
total of 3,257 days at sea were provided. The Office also
made progress in fleet management through imple­
mentation of the Inactive Ship Plan, expansion of field
electronics and marine engineering support, pollution
abatement, and fleet inspection.
Aeronautical Charting and Cartography

NATIONAL MARINE FISHERIES SERVICE
The Survey’s Office of Aeronautical Charting and
Cartography distributed 2,656,940 copies of 92 visual Mission
charts, 21,066,755 copies of 2,885 instrument charts,
The National Oceanic and Atmospheric Administra­
and 2,194,743 copies of 819 nautical charts.
tion’s Marine Fisheries Service provides services and
conducts research for the protection and rational use of
National Geodetic Survey
living marine resources for their economic, aesthetic, and
The Survey’s Office of the National Geodetic Survey recreational value to the Nation. Programs are conducted
determined approximately 4,300 horizontal control sta­ to (1) determine how the living marine resources are
tions, 3,060 vertical control marks, 125 latitude and affected by natural and man-made changes in the
longitude stations, and 44 azimuths during the year. environment, (2) provide information and services to
Resurveys were continued in order to monitor and foster efficient and judicious use of those resources, and
update the networks in areas of tectonic activity, (3) further good national and international practices in
geothermal areas, and other areas where movements of the management, use, and protection of the living
resources of the sea, including marine mammals.
network stations are indicated.

69

sessment of stocks covered by international agreements,
(3) improved management techniques, and (4) identifica­
tion and location of underutilized species. Aquaculture
research covered the culture of Pacific Salmon and
penaeid shrimp. Studies also include the salt-water
pen-rearing of Pacific salmon, and shrimp culture.
Studies on the impact of environmental change were
aimed at development of supporting data in order to
evaluate the impact of man-made and natural alterations
on estuaries and nearshore ecosystems. Marine mammal
research dealt with methods of saving mammals caught
accidentally during fishing operations, assessment of the
stocks of fur seals managed under international conven­
tion, and the life habits of many species fully protected
by law. Recreational fisheries work included research on
the abundance, distribution, life history, and environ­
ment of marine species of importance to recreational
fishing.

Harvest of Aquatic Products

The U.S. commercial harvest of fish, shellfish, and other
aquatic life in calendar year 1973 was 4.7 billion
pounds, worth a record $907.4 million to fishermen and
vessel owners. Compared with 1972, the quantity was up
slightly but the value increased 29 percent. Landings
were up for bonito, Atlantic cod, croaker, Pacific sea
herring, striped bass, pollock, rockfishes, scup, and
whiting. They were down for flounders, Atlantic sea
herring, jack mackerel, tuna, salmon, hard blue crabs,
Dungeness crabs, Gulf shrimp, squid, haddock, Pacific
halibut, menhaden, and oysters.
Marine recreational fishermen in 1973 caught the equiva­
lent of an additional two-thirds of the commercial
harvest. This does not include shellfish. The 1970
Salt-Water Angling Survey published by the Service in
April 1973 showed that 9,392,000 U.S. marine anglers
caught 817 million fish with an estimated weight of 1.47
billion pounds.
Resource Utilization
Imports of fishery products in 1973 were worth a record Accomplishments in the field of resource utilization
$1,579 million, 6 percent higher than in 1972, the last included:
record year. Exports of domestic fishery products came
to $299.2 million, up 89 percent from 1972.
• Initiation of a cooperative effort to increase the
use of underdeveloped or latent fisheries resources
National Fisheries Plan
in New England, with a primary objective of
developing offshore crab, squid, and discarded
The National Advisory Committee on Oceans and
trawl fish resources.
Atmosphere recommended to the President and the
Congress the development of a National Fisheries Plan to
• Collection and dissemination of commercial fish­
rehabilitate the domestic fishing industry. An internal
eries statistics.
policy committee has been formed with representatives
• A pilot recreational fishing survey in the North­
from the Service, other National Oceanic and Atmos­
eastern Coastal States to help develop a compre­
pheric Administration components, and the Department
hensive national recreational fishery statistics pro­
of the Interior’s Bureau of Outdoor Recreation and Fish
gram.
and Wildlife Service. Four goals for the Plan have been
established and approved. These cover the interests of
• Issuance of market news reports in five major
consumers, the commercial fishing industry, and recrea­
market centers covering prices, landings, imports,
tional fishermen, as well as protection of the marine
holdings, and movement of products.
resource itself. To contribute to the achievement of the
goals, five major activities have been identi­
• Issuance of market intelligence reports covering
fied: (1) aquaculture, (2) fisheries development,
market conditions and outlook for food fish,
(3) management and allocation, (4) recreational fishing,
industrial fish, and shellfish.
and (5) habitat protection. The Advisory Committee is
now collecting and analyzing information on the status
• Economic analyses to identify problems and assess
and problems of U.S. fisheries, and developing a master
opportunities in various U.S. fisheries, and to
plan.
evaluate policies and programs with respect to both
commercial and recreational fisheries.
Resource Research
• Research and development focused on the in­
creased use of latent and underutilized fish and
During fiscal 1974, the Service continued research
shellfish resources.
programs in resource assessment, aquaculture, the im­
pact of environmental change, marine mammals, and
recreational fisheries. Resource assessment focused
• Analysis of samples of over 200 species of major
on: (1) further development of the Marine Resources
commercial and sport fish and shellfish for their
Monitoring, Assessment and Prediction program, (2) as­
content of 15 different marine contaminants.
70

• Studies on the mercury content of American
lobsters from inshore and offshore locations, and
on the protective effects of selenium on mercury
toxicity in rats.
• Methods of controlling waste discharge from sea­
food processing operations.
• A new dimension to the Fishery Products Inspec­
tion Program with the development and imple­
mentation of (1) a consultative service for fish
processing plants which cannot meet minimum
sanitation standards and (2) a Sanitarily Inspected
Fish Establishment service for plants which can
meet minimum sanitation requirements.
Financial assistance was provided to industry through
the: (1) the Fisheries Loan Fund Program, (2) the Fish­
ing Vessel Obligation Guarantee Program, which guaran­
tees private loans up to 75 percent of the cost of
constructing, reconstructing, or reconditioning fishing
vessels, (3) the Fishing Vessel Capital Construction Fund
Program, which permits vessel operators to defer pay­
ment of taxes on earnings, and (4) the Fishermen’s
Guarantee Fund Program, which indemnifies the industry
against certain costs and expenses resulting from foreign
seizures based on claims not recognized by the United
States.

course of tuna purse-seining operations, (3) Proposed
final incidental take regulations of marine mammals in
the course of commercial fishing operations. Regarding
the proposed final regulations on incidental take, a draft
environmental impact statement was issued on April 4,
1974. On the proposed rules, an Administrative Law
Judge hearing was held in Seattle on May 15 and 16,
1974.
The Act authorizes the Secretary to grant undue
economic hardship exemptions until October 20, 1973.
Sixty applications for such exemptions were re­
ceived: 24 approved, 21 denied, 13 withdrawn. No
action was taken on the remaining 3 because of
incomplete applications.
The Secretary is also authorized by the Act to issue
permits to take and import marine mammals or marine
mammal products for scientific research and public
display. A total of 105 applications were received:
29 approved, 3 denied, 2 withdrawn, 6 referred to
the appropriate States, and 65 are pending. Public
hearings are held on applications that involve large
numbers of marine mammals or have unique aspects
which require a major policy decision. Five hearings
were held to consider issuance of permits to take
marine mammals for: (1) traveling marine mammal
exhibits, (2) foreign public display facilities, (3) main­
taining a specified inventory of marine mammals, (4)
and the taking of killer whales for public display.

Resource Management

The cooperative fisheries management effort by the
States and the Federal Government continues. Interim
regulations for such species as American lobster, Gulf of
Maine shrimp, and Dungeness crab have been instituted
by the States, as recommended by regional State-Federal
fisheries management councils constituted under this
joint effort. More than $800,000 has been obligated in
contracts for varied purposes, including a coordination
contract with California and a contract with Alaska for
implementation of limited entry legislation.
The grant-in-aid program provided a total of $3.8 million
under the Commercial Fisheries Research and Develop­
ment Act to the 50 States, American Samoa, Guam,
Puerto Rico, and the Virgin Islands for commercial
fisheries research and development projects. Addi­
tionally, $1.5 million was provided for resource disaster
aid. Under the Anadromous Fish Conservation Act, $2
million was made available to coastal and Great Lakes
States for the conservation and enhancement of their
resources.
Regulations implementing the Marine Mammal Protec­
tion Act included: (1) Final regulations governing the
taking and importing of marine mammals, (2) Interim
rules for the incidental taking of marine mammals in the

A report to Congress and the public was prepared on the
current status of all marine mammal species and popu­
lation stocks subject to the provisions of the Act. It
describes those actions taken and those measures be­
lieved necessary, including the issuance of permits to
assure the well-being of marine mammals.
Under the authority of the Fish and Wildlife Coordina­
tion Act and the National Environmental Policy Act, the
Service worked with the Department of Interior’s Fish
and Wildlife Service and the States to respond to about
4,400 Federal requests for assistance on project
licenses and permits. Action taken on these requests
resulted in significant savings of productive estuarine
and marine habitat, such as the saving of 615 acres of
bay clam habitat at Sally’s Bend, Oregon, and the
lessening of impact of logging and related activities on
1,268 miles of Alaska Coastline. The expertise of
Service scientists influences Federal agency decisions so
as to protect and conserve the fishery resources. The
Service has worked closely with the Environmental
Protection Agency in the development of implemen­
tation guidelines.

71

The National Marine Fisheries Service enforces various
U.S. statutes and international agreements on the taking
of fish. It also conducts a surveillance program. This is
carried on in conjunction with the U.S. Coast Guard
which provides aircraft and surface patrol vessels with
the Service’s Special Agents aboard. Increased activity
for fisheries enforcement allowed more patrols in fiscal
1974. This resulted in (1)446 courtesy and official
boardings of U.S. and foreign fishing vessels, (2) seizure
of 472.74 tons of illegally caught fish, including 277.74
tons of tuna, and (3) eight seizures of foreign fishing
vessels for violations of U.S. law or provisions of
international agreements. Fines totaling $1,028,536
were assessed for these and other violations.

mission, the Service operates five data centers: the Na­
tional Climatic Center at Asheville, North Carolina; the
National Geophysical and Solar-Terrestrial Data Center
at Boulder, Colorado; and the National Oceanographic
Data Center, Environmental Science Information Center,
and the Center for Experiment Design and Data Anal­
ysis, located in Washington, D.C.
Accomplishments

International Activities

The Service broadened its programs in fiscal 1974 to
(1) implement international measures to protect both
coastal and distant-water fishery resources of interest to
U.S. fishermen, and (2) make available information
regarding foreign fishing activities. It also continued to
support and participate in bilateral and multilateral
negotiations concerning fishery resources of interest to
U.S. fishermen. The United States is a member of eight
international fishery commissions with responsibilities
under treaty arrangements to manage and conserve such
varied resources as (1) halibut, salmon, and fur seals in
the North Pacific, (2) groundfish, herring, and mackerel
in the Northwest Atlantic, (3) tunas in the tropical
Pacific and in the Atlantic, and (4) whales generally. Of
particular interest was the agreement on an overall
national catch quota program for the entire biomass off
the U.S. North Atlantic coast reached in the Interna­
tional Commission for the Northwest Atlantic Fisheries
in October 1973. The United States is also a party to 12
bilateral fishery agreements adapted to more specialized
management problems in waters off Alaska, the conti­
nental west coast, the Atlantic coast, and Brazil.
ENVIRONMENTAL DATA SERVICE
Mission

The National Oceanic and Atmospheric Administration’s
Environmental Data Service provides data and informa­
tion on the atmosphere, oceans, solid earth, and sun by
disseminating worldwide environmental data and data
products. It provides access to environmental informa­
tion through publications, library services, and auto­
mated referral networks. It also provides data manage­
ment and analysis support for environmental research
products and participates in international environmental
data exchange and management efforts. To carry out this
72

During fiscal 1974, the Service became increasingly
involved in contributing to the solution of problems
related to such pressing national and international
environmental issues as the crises in fuel and global food
supplies, while continuing its efforts to improve tra­
ditional services to the data user community.
In an attempt to quantify the impact of environmental
events on national and global social and economic
problems, the Service organized a new Center for
Climatic and Environmental Assessment. This Center
provides tailored consultant services and products to
other Government agencies concerned with national
socioeconomic programs and policies. It models and
assesses climate and climatic variations, as well as other
natural environmental phenomena and their variations,
and evaluates their probable impact upon such problems
as the energy crisis and world food supplies.
At the request of the Energy Policy Office, Executive
Office of the President, a special team composed of
scientists from the Service and other Administration
components prepared a report on the extent to which
national heating fuel demands in the 1973-74 heating
season would depend on the weather. This report,
“Variability of Seasonal Total Heating Fuel Demand in
the United States,” became a key planning guide for the
Department of the Interior’s subsequent national heating
oil allocation program last winter. The allocation pro­
gram itself was based partly on data and analyses provided
jointly by the National Weather Service and the National
Environmental Data Service.
At the request of the State Department, the Environ­
mental Data Service prepared a report for the U.S.
Coordinator, World Food Conference, on the impact of
weather variability on world food supplies. The report
will be made available to those speaking for the United
States at the World Food Conference in November 1974.
The Service furnished detailed data and statistics on
severe storm, ice, tsunami, and earthquake probabilities
for the Bureau of Land Management’s Outer Continental
Shelf Study for Gas and Oil Exploration o ff the A tlantic
Coast and Gulf o f Alaska. The data were provided for
five areas off the Atlantic Coast and three in the Gulf of
Alaska.

With input from the National Marine Fisheries Service
and the Development of the Interior, the Environmental
Data Service prepared comprehensive environmental
descriptions for the U.S. Atlantic, Gulf, and Pacific
Coasts and the Great Lakes for the Floating Nuclear
Power Plant Study of the President’s Council on
Environmental Quality. Disciplines covered include ma­
rine geology and geophysics, physical and chemical
oceanography, meteorology, seismology, and living re­
sources. In addition, the Environmental Data Service
provided more detailed environmental descriptions for
four selected Atlantic coast areas.
In June 1974, the Service prepared a 135-page report on
“Ocean Data Resources” for the Interagency Committee
on Marine Science and Engineering as part of the
Committee’s response to a request from the National
Ocean Policy Study Committee of the U.S. Senate. The
Study has since been forwarded to the Senate Com­
mittee.
The Service’s National Climatic Center completed the
first series of publications under its Periodic Summariza­
tion of Climate Program. Published data for the 50
States for the new normal period 1941-70 include
monthly normals of temperature, precipitation, and
heating and cooling degree days; monthly averages of
temperature and precipitation for State climatic divi­
sions; and daily normals of temperature and heating and
cooling degree days. These data are used by the Federal
Power Commission and utility companies to determine
the proper rate of capital return and the consumer rate
structure for electricity and gas.
At the request of the Bicentennial Commission, the
Service designed a prototype climatological pamphlet for
the U.S. Bicentennial celebration in 1976. The brochures
will be prepared for 10 Federal Regions and will include
general climatic descriptions, as well as specific tempera­
ture and precipitation data for approximately six repre­
sentative cities within each Region.
NATIONAL ENVIRONMENTAL SATELLITE
SERVICE
Mission

The National Environmental Satellite Service manages
and coordinates all operational satellite programs within
the National Oceanic and Atmospheric Administration.
It operates satellite systems for the acquisition of
environmental data. It conducts research in new applica­
tions and methods of acquiring environmental data
through satellites, and in satellite instrumentation, ob­
servational techniques, data recording and processing
techniques, and other aspects of satellite system en­
gineering. The Service operates satellite Command and
Data Acquisition Stations located in Virginia and Alaska.
73

Satellite Field Services Stations established at San
Francisco, Kansas City, Washington, D.C., and Miami
provide operational satellite data and interpretative
services to weather forecast offices and other environ­
mental activity centers in their respective regions.
Activities

An entirely new system of operational satellites, known
as the Geostationary Operational Environmental Satel­
lites, was inaugurated with launch of the first prototype
spacecraft in late May 1974. One of these satellites,
hovering over a fixed point on the earth, can observe
virtually continuously the clouds and other environ­
mental phenomena over about one-fourth of the earth’s
surface. Pictures taken at half hour intervals throughout
the day and night provide constant surveillance of
rapidly developing destructive weather systems such as
tropical storms, hurricanes, thunderstorms, tornadoes,
and major winter snowstorms. A highly complex
computer-controlled data handling system linking the
central acquisition facilities with the four field service
stations assures rapid distribution of the data to National
Weather Service forecast offices throughout the country.
The satellites also provide three other services: (1) con­
tinuous measurement of environmental conditions in
space including solar X-rays, magnetic fields, and ener­
getic particles, (2) broadcast transmission of satellite
pictures and weather facsimile charts to ships and other
remote stations within radio range, and (3) collecting
and relaying observational data from remotely located
tide and river gages, automatic weather stations, and
buoys and ships at sea.
At the end of June 1974 the first spacecraft under the
Geostationary Operational Environmental Satellite sys­
tem was positioned to view the Atlantic Ocean and
adjacent land areas, specifically to watch over the
hurricane spawning areas and to support the interna­
tional Atlantic Tropical Experiment underway in the
eastern Atlantic from June through September 1974. At
the conclusion of the experiment, the satellite will be
moved to a new position over the western Atlantic to
provide better coverage of North America. A second
satellite to be launched in early 1975 will be positioned
to observe western North America and the eastern
Pacific Ocean.
A new polar-orbiting satellite, the “NOAA-3,” was
launched November 6, 1973 in continuation of the
Improved “TIROS” Operational Satellite series. The
sensor complement of NOAA 3, identical to that of its
predecessor NOAA 2, provides imaging and atmospheric
temperature sounding over the entire globe twice daily,
and very high resolution pictures of North American and
adjacent oceans. A new feature introduced on NOAA 3

quality results that are relevant to national problems and
within the framework of Administration overall environ­
mental sciences mission. To this end, programs of
research are conducted in the fields of oceanography,
meteorology, upper atmosphere, and space physics.
Principal laboratories are located in Boulder, Colorado;
Miami, Florida; Seattle, Washington; Norman, Okla­
homa; Princeton, New Jersey; Silver Spring, Maryland;
Ann Arbor, Michigan; and Stony Brook, New York.

is the capability to broadcast continuously the tempera­
ture sounding data. Properly equipped ground stations
anywhere in the world can now receive real time data
from which local temperature soundings can be com­
puted. Several countries, including France and Norway,
have established or plan to establish stations to receive
these transmissions.
In the area of oceanography and hydrology, high
resolution data from these satellites play a significant
role in determining ice conditions in the Great Lakes and
polar regions. This information is used to assist shipping
through ice infested waters. In addition, these data will
continue to be used extensively in detailed studies of
thermal features of the sea surface which will be an aid
to weather forecasting, marine pollution detection, ship
routing, and determining melt processes in the Great
Lakes. High resolution imagery is used operationally to
make quantitative estimates of snow cover for use in
flood potential forecasting and water resource studies. A
pilot project, designed to develop and apply high
resolution data to Alaskan environmental needs, was
started in fiscal 1974.
Snow mapping of watersheds, using NOAA 2 high
resolution data, was started routinely as an operational
experiment. The percent of snow cover of selected
watersheds of an areal extent exceeding 3000 square
kilometers is reported to the National Weather Service’s
River Forecast Centers for inclusion in numerical river
flow and forecast models. A crude cost comparison of
satellite snow mapping versus aircraft surveys shows a
ratio of 1:200 in favor of satellite mapping.
The “ ITOS” spacecraft has little growth capability for
future operational sensors being developed in NASA’s
research and development program. Advanced sensors,
with improved resolution and accuracy of observation,
are needed to keep pace with improvements in numerical
weather analysis and forecast models. To meet these
requirements, a decision was made to proceed jointly
with NASA to design and develop a third generation
polar-orbiting satellite system known as “TIROS N”.
Instrument definition was virtually completed during
fiscal 1974, with launch of the first prototype spacecraft
targeted for late 1977 or early 1978.

Oceanography

The use of satellites in oceanographic research received
much attention, and close cooperation was developed
between NASA groups and the Atlantic Oceanographic
and Meteorological Laboratories. Data from the Earth
Resources Technology Satellite were used in a global
study of the generation and propagation of oceanic
internal waves. It appears that tidal energy is used to
generate internal waves in many parts of the world. An
Ocean Remote Sensing Laboratory was established to
study oceanographic phenomena using advanced tech­
nology remote sensing techniques. A joint satelliteacoustic sensing cruise examined the distribution of
amplitudes and wavelengths in internal wave fields in the
ocean. Findings show that remote sensing by underwater
sound waves may allow the study of the stirring of
sediments by internal waves and dredging and of below
surface effects of oil spills.
Field work for the Mid-Ocean Dynamics Experiment
was completed in collaboration with numerous other
groups of the oceanographic research community under
the International Decade of Ocean Exploration. Objec­
tives were to define the nature of the energetic
mesoscale eddy motions in the deep ocean and their
effects on the ocean circulation and transport of
materials in the ocean. A series of 13 monthly cruises
in the Caribbean Sea and the Gulf of Mexico was
completed, and these have yielded the most detailed
time series ever obtained of the ocean currents in that
region. Results are contributing substantially to the
environmental assessments required for outer conti­
nental shelf oil and gas leasing. The data are to be used
as input to a predictive model of circulation in the
region for addressing a number of marine environ­
mental problems. Results from an intensive investiga­
tion of the circulation of coastal waters off southeast
Florida will contribute to management decisions re­
garding waste disposal there.
Scientists collaborating on the Administration’s TransAtlantic Geotraverse have discovered the first field
where solid metallic minerals are being deposited by hot,
metal-rich solutions discharging from an active mid­
ocean ridge. The results have important economic
implications for the metallic mineral potential of all

ENVIRONMENTAL RESEARCH LABORATORIES
Mission

The Environmental Research Laboratories of the Na­
tional Oceanic and Atmospheric Administration conduct
an integrated program of research, technology develop­
ment, and services to carry out their primary mission of
providing a basis for improved Administration opera­
tions and services. The Laboratories select research
undertakings in which there is good promise of high
74

Numerical general circulation models, used to study the
seasonal evolution of the South Asian monsoon, have
found that the Tibetan Plateau and Burmese mountain
ranges are essential for the formation of the monsoon
“trough” , and that the vigor of the monsoon over the
Indian subcontinent relates to certain temperature
changes in the western Arabian Sea.
Studies on the development of certain eddies in the
oceans and on the nature of their interaction with
large-scale circulation identified temperature and pres­
sure instabilities that lead to the spontaneous appearance
of eddy motions. Simulation of the equatorial ocean
circulation produced results important for short- and
long-term air-sea interaction.
The Geophysical Monitoring for Climatic Change Pro­
gram, conducted by the Air Resources Laboratories, had
four observatories in full or partial operation measuring
carbon dioxide, solar radiation, ozone, and small par­
ticles. The observational program was augmented at the
South Pole and construction and logistics arrangements
were completed for an American Samoa observatory.
The data continue to show the upward trend of carbon
dioxide, with the increase at Mauna Loa the largest
observed in the 17 years of record.
Mathematical modeling for air pollution was increased to
encompass additional pollutants and a greater variety of
sources, from single rural locations to complex urban
areas. Experiments to verify the models in cities were
performed in Los Angeles and St. Louis. A capability to
calculate air trajectories throughout the Northern Hemi­
sphere was developed and is being applied to the
transport, dispersion, and removal of such materials as
ozone, and fluorocarbons. Atmospheric tracer studies in
irregular terrain were expanded to better cope with the
problem of siting both nuclear and fossil fuel power
plants in mountainous terrain.
A major effort of the National Hurricane Research
Laboratory is the exploration of the feasibility of
beneficial hurricane modification through Project
“STORMFURY”. Data obtained in Hurricane Ellen
verify for the first time that adequate quantities of
supercooled water exist in hurricane clouds, furnishing
the raw material for the hurricane modification experi­
ment. Numerical modeling of hurricanes was advanced
by successful experiments using a moving fine-mesh grid.
This development opens the way for creating more
sophisticated three-dimensional numerical models of
hurricanes on existing computers.
The Experimental Meteorology Laboratory conducted
an observational phase and additional analysis in the
Florida Area Cumulus Experiment, a key research
program to study the effects of cumulus cloud

ocean basins, and regions where oceanic crust is exposed
on islands and continents.
The Marine Ecosystem Analysis Project’s New York
Bight Project Office was established in Stony Brook,
New York. Major field investigations were undertaken in
the Apex of the New York Bight to determine the fate
and effect of pollutants on the New York Bight
ecosystem, with particular emphasis on ocean dumping.
The Project became involved with many Federal, state,
and local government institutions, academic institutions,
and the public at large with respect to the effect of
sewage sludge dumping, its movement, degradation, and
impact on marine fisheries and recreational sports.
Alternative interim dump sites in the New York Bight
were recommended to the Environmental Protection
Agency. Testimony of scientific findings related to
sewage sludge dumping was presented at public hearings
of the Agency and the New York State Assembly.
The Pacific Marine Environmental Laboratory con­
ducted an experiment near the San Juan Islands in which
currents, sea level changes, density, temperature, and
salinity data were obtained and incorporated into a
general model of circulation in the Puget Sound es­
tuarine system. Wind and ocean current measurements
were made off the coasts of Oregon and Africa to
determine the response of the upper ocean to winds in
regions where coastal upwelling is occurring.
The Great Lakes Environmental Research Laboratory
was established at Arm Arbor, Michigan by combining
the Administration’s project office of the International
Field Year of the Great Lakes and the Limnology
Division of the Lake Survey Center of its National Ocean
Survey. Data on the temperature, circulation, chemistry
and biological characteristics of Lake Ontario, obtained
during the International Field Year, were analyzed and
models developed. Most of the data from major observa­
tion systems have been processed to form a provisional
data base in the archives of the National Climatic Center.
A special session of the annual American Geophysical
Union meeting was devoted to International Field Year
results. More than 60 papers were submitted for the
International Association of Great Lakes Research Con­
ference scheduled for August 1974.
Atmospheric Sciences

A data processing and validation system was developed
at the Geophysical Fluid Dynamics Laboratory. To­
gether with a four-dimensional data assimilation scheme,
the system now forms the basis for the creation of global
data sets needed for the Atlantic Tropical Experiment
and the First Global Experiment under the Global
Atmospheric Research Program.
75

modification. During this program the Laboratory
(1) doubled the sample of days to be analyzed for the
detection of a seeding effect, (2) analyzed all experi­
mental days and found evidence for increased rainfall
from seeding, (3) learned that silver iodide seeding is not
an environmental hazard in Florida, (4) designed and
tested an optimum system of rain measurement that
combines radar and rain gage observations, (5) developed
a method to estimate rainfall over remote regions using
satellite imagery; and (6) determined the relative im­
portance of natural rain variability and measurement
errors in the detection of seeding effects.
The Atmospheric Physics and Chemistry Laboratory
initiated a project to study the feasibility and potential
for mitigating the severe weather that accompanies
extratropical storms. Measurements in the Inter-Tropical
Convergence Zone supported earlier observations that a
convective storm in that area is a clear-cut source of
water vapor in the stratosphere, one which considerably
exceeds the water vapor contribution of a supersonic
transport at stratospheric levels. The benchmark net­
work for ice nuclei concentration in the western states
has shown an annual variation of concentration with a
maximum in summer. The natural processes which
generate ice nuclei appear to be at the earth’s surface
during summer, and are inactive in winter over regions
that are snow covered and have a frozen ground surface.
The Wave Propagation Laboratory advanced along sev­
eral avenues in developing new measurement techniques
by means of remote sensing. An acoustic echosounding
system, capable of measuring winds to 500 meters
altitude, was tested successfully at the Denver Airport.
The technique has important application to the safety of
aircraft landing and takeoff during conditions when the
wind speed and direction change rapidly with height. A
system of this type was used for air pollution studies in
Los Angeles.
Upper Atmosphere and Space

The Space Environment Services Center, operated
jointly by the National Oceanic Administration and the
Air Weather Service of the Department of Defense,
provides observations, forecasts, and warnings of solar
disturbances and their effects on man’s activities to
national and many foreign agencies and organizations.

76

Support for SKYLAB astronauts operating the Apollo
Telescope Mount experiment was successfully con­
cluded. During the 10-month period of real-time sup­
port, over 1,000 solar flares, 300 eruptive prominences,
350 X-ray, and 600 radio events were observed and
reported. A significant advance in space services capa­
bility was experienced with the addition of new satellite
space data to the Center’s computer data base.
Space Environment Laboratory scientists prepared 112
scientific papers during the year providing new insight
into a variety of ionospheric and magnetospheric phe­
nomena, including auroral physics, plasma instabilities in
ionospheric-magnetospheric regions, explanations of
trapped energetic electron distribution, and hot-cold
plasma interactions occurring in the magnetosphere.
Space environment monitoring packages, or experiments
were launched on several rockets and satellites. The
laboratory was deeply involved in planning and research
for the International Magnetospheric Study and has been
requested to provide vital data collection and display
services for this program.
The Aeronomy Laboratory, which conducts research on
the upper atmosphere, began construction of a large,
very-high-frequency radar in Colorado capable of meas­
uring atmospheric motions from near the ground to 100
kilometers altitude, with good height and time resolu­
tion. Located in an area of strong mountain lee wave
activity, with frequent destructive surface winds and
clear air turbulence, this radar will be used in the study
of winds, waves, and turbulence in the atmosphere.
Theoretical studies were made of plasma turbulence
produced by high power lasers used to produce a
controlled thermonuclear fusion reaction. The develop­
ment of such a reaction is part of an extensive national
program to develop new energy sources. Theoretical
studies were also conducted to understand how powerful
radio transmitters can make the ionosphere sufficiently
turbulent as to cause a blackout of radio and radar
communications. These studies are significant for na­
tional defense. A sensitive Doppler radar technique has
been developed for warning of the presence of birds
hazardous to aircraft. The radar measures the velocity of
each part of a moving object, such as a bird, so that birds
of different size and flight characteristics can be readily
distinguished.

HYDROGRAPHIC AND OCEANOGRAPHIC INVESTIGATIONS, BY SHIP AND AREA, FISCAL 1974
NOAA ships

Type of survey

Area

DAVIDSON......................
D o ................................
FAIRWEATHER ..........
Do...................................
McA r t h u r ....................
MT. M IT C H E L L ............
Do...................................
PEIR C E ..............................
RAINIER .........................
WHITING............................
RESEA RCHER...............
Do ................................
SURVEYOR ....................
D o ................................
RUDE and H E C K ..........
Do...................................
F E R R E L ...........................
n ifîrn v F R f .r
OCEANOGRAPHER.. .
Do...................................
Do...................................
Do...................................
OREGON I I ......................

H ydrographic...................................
H ydrographic...................................
H ydrographic...................................
H ydrographic...................................
Circulatory (Tides & Currents) . .
H ydrographic...................................
Geological investigations...............
H ydrographic...................................
H ydrographic...................................

ALBATROSS I V .............
Do...................................
DELAWARE I I ...............
DAVID STARR
JO R D A N .........................

Resource surveys & biological
investigations..............................
Biological investigations...............
Resource s u rv e y s............................
Resource surveys & biological
investigations..............................

Prince William Sound
SE Alaska
Strait of Juan de Fuca, Washington
Cook Inlet, SE Alaska
Cook Inlet; Puget Sound , Washington
Georgia, Florida, South Carolina
Baltimore Canyon.....................................
North Carolina
Cook Inlet, Alaska; Strait of Juan de
Fuca, Washington
Georgia coast
North Atlantic
Lake Ontario
Hawaii to Guam .....................................
West Coast; Alaska
Approaches to Gulfport
Chesapeake Bay; Approaches to
Galveston; SE Coast
N.Y. Bight
Washington-British Columbia
West Coast of Africa
Western Atlantic
West Coast of Africa
Caribbean and Gulf o f Mexico;
Western Atlantic
NE Atlantic Coast
Gulf of Maine
NE Atlantic C o a st...................................

H ydrographic...................................
Ocean Investigations ....................
Physical oceanography..................
Cable ro u te ........................................
Wire Drag ..........................................
Wire D ra g ...........................................
C irculatory..............................
Internal wave energy.......................
Internal wave energy.......................
Geophysical traverse.......................
Atlantic Tropical Experiment . . .
Resource surveys & biological
investigations..............................

GEORGE B. KELEZ . . .
JOHN N. COBB............... Resource surveys & fishing
tech no lo g y ...................................
Do................................... Biological investigations...............
OREGON........................... Resource surveys & biological
investigations..............................
GEORGE M. BOWERS . Resource surveys & biological
investigations..............................
MURRE I I ......................... Resource surveys & biological
investigations & supply.............
TOWNSEND
CROM W ELL.................
MILLER FREEMAN . . .
U.S. Geological Survey.
Atlantic Telegraph & Telephone.

Eastern Pacific & Coast of California
& Oregon

Comments

Conducted for USGS

Conducted for AT&T

Laid up Mar. ‘73.

Reactivated May ‘74.

Laid up Mar. ‘73.

Washington, Coast of Oregon
Gulf o f Alaska
Bering Sea and Gulf o f Alaska
SE Atlantic Coast & Gulf of Mexico
SE Alaska
Laid up May ‘73.
Laid up May ‘70.

77

CHAPTER XII

MARITIME AFFAIRS

The Assistant Secretary

The Assistant Secretary for Maritime Affairs is the
principal advisor to the Secretary on the development,
promotion, and operation of the American merchant
marine. He also serves as head of the Maritime
Administration.
Mission of the Maritime Administration

The Maritime Administration is responsible for the
development and maintenance of an efficient American
merchant marine to meet the commercial and defense
needs of the United States. Its programs include:
(1) financial assistance to U.S.-fiag vessel operators and
American shipyards; (2) marketing programs to help
U.S. vessel operators increase their participation in the
carriage of U.S. foreign trade; (3) promotion of the
development of U.S. ports and the efficient use of
advanced intermodal transportation systems; (4) re­
search and development programs to increase the pro­
ductivity of American shipping and shipbuilding indus­
tries; (5) training of skilled officers and crews to man
American ships; (6) participation in international activi­
ties which affect American-flag shipping; and (7) mainte­
nance of the National Defense Reserve Fleet as a source
of emergency shipping for the Nation.
Ship Construction

Continuing the national policy of revitalizing the Ameri­
can merchant marine, under the Merchant Marine Act of
1970, the Maritime Administration awarded construc­
tion-differential subsidy contracts in fiscal 1974 for 12
new vessels for foreign trade service. Of their total
contract price of $756 million, $280.7 million will be
paid by the U.S. Government to offset the cost
difference in building the vessel in the United States
rather than in a lower-cost foreign shipbuilding center.
All 12 vessels are tankers, and three are rated at 390,770
deadweight tons. These mammoth vessels will be the
largest ever built in an American shipyard, and each will
have a cargo capacity of 25 of the standard “T-2”
tankers built during World War II.
The award of these contracts brought the number of
subsidized vessels ordered under the Merchant Marine
Act of 1970 to 59 oceangoing ships with a total contract
78

value exceeding $3 billion. These ships, which aggregate
more than 6.2 million deadweight tons, represent a 45
percent increase in the size of the American-flag fleet.
In addition to subsidized orders, private construction
contracts were placed for 26 ships: six liquefied natural
gas carriers, one roll-on/roll-off vanship, 14 tankers,
three Great Lakes bulk carriers, and two integrated
tugbarges.
As of June 30, 1974, American shipyards had a record
peacetime construction backlog of 96 large merchant
ships valued at $4.2 billion and aggregating 7.9 million
deadweight tons. A year earlier 86 ships of 5.4 million
deadweight tons were under contract.
The urgent demand for oil also led to a record boom in
the construction of offshore drilling rigs. As of mid1974, 42 drilling rigs, valued at nearly $1 billion, were
under construction or on order in American yards.
In addition to awarding construction-differential subsi­
dies, the Administration encourages American ship­
builders to increase their productivity and competitive­
ness in the world shipbuilding market. The 1970 Act
established a declining scale of subsidy rates.
The Government had previously been empowered to
subsidize up to 55 percent of a ship’s cost. The Act
dropped the rate to 45 percent and prescribed further
reductions of 2 percent per year until a 35 percent
ceiling is reached in fiscal 1976. All awards made under
the Act were within or below the prescribed rates. In
addition, six liquid natural gas carriers were ordered for
foreign trade service without subsidy.
Ship Financing Guarantees

During fiscal 1974, the Congress passed legislation
raising the total amount of unpaid principal of privately
financed ship construction and reconstruction projects
that can be guaranteed by the Government from $3
billion to $5 billion. Such guarantees are authorized
under Title XI of the Merchant Marine Act of 1936, as
amended.
Guarantees totalling $1.3 billion encompassing 311
vessels and 50 shipboard lighters were approved dur­
ing fiscal 1974. On June 30, 1974, guarantees with
a total outstanding principal balance of $3.8 billion

had been committed, covering 764 vessels and 2,221
lighters.
The Maritime Administration also had pending applica­
tions for guarantees to aid in the construction or
reconstruction of 466 vessels and 250 lighters with a
total estimated cost of $3.6 billion. If approved, $2.9
billion of this total would be covered by guarantees.
Ship Operations

In fiscal 1974, four new, long-term operating-differential
subsidy agreements between the Maritime Administra­
tion and American-flag operators were executed. The
Maritime Subsidy Board also approved the merger of the
operations of one subsidized operator with those of one
of its subsidized, wholly-owned subsidiaries. Both sub­
sidy agreements continued in force and the parent
company was required to assume all provisions and
obligations of the subsidiary’s contract.
Many shipping firms holding Interim Capital Construc­
tion Fund agreements consolidated them under parent
corporations. These agreements allow operators to set
aside vessel earnings and capital gains for the construc­
tion of new vessels or reconstruction of existing vessels
on a tax-deferred basis. At the end of the year the
Administration had executed 63 individual and consoli­
dated agreements with eligible operators. These agree­
ments will result in a $3 billion capital investment in
new or converted American-flag vessels over the next 10
years.
To further implement the provisions of the U.S./
U.S.S.R. Maritime Agreement signed in October 1972,
an index was developed for determining freight rates for
U.S.-flag vessel carriage of bulk agricultural commodities
to the Soviet Union. The index is based on monthly
voyage charter rates for carriage of heavy grains from the
U.S. Gulf to the Netherlands and Belgium. This index
enabled U.S .-flag operators to receive rates from the
Soviets that ranged from a low of $17.13 per long ton in
August 1973 to a high of $31.54 per long ton in April
1974.
Since the Maritime Agreement was signed, U.S .-flag
vessels have carried 4.65 million metric tons of the 22.1
million metric tons of grain purchased in the United
States by the Soviet Union. Soviet-flag vessels carried 3.8
million metric tons and the balance moved in third-flag
vessels. The U.S. vessels engaged in this trade returned
with over 4.7 million tons of crude oil and petroleum
products. At the close of the year, 49 operators held
short term operating-differential subsidy agreements on
87 ships for the transportation of grain to the Soviet
Union.
The U.S./U.S.S.R. Maritime Agreement stipulates that
the American-flag fleet and Soviet-flag fleet will each
79

have access to one-third of all cargoes moved by sea
between the two countries. However, during calendar
1973, it became evident that most of the liner cargoes
were being carried by Soviet vessels. To meet its
obligations under the Agreement, the Soviet Union in
November 1973 agreed to route all Soviet controlled
general cargo by U.S.-flag liners until the imbalance was
corrected. It was anticipated that parity would be
achieved by December 31, 1974.
As a result of the resumption of trade relations with the
Soviet Union, two American-flag companies instituted
direct liner services between the United States and the
Soviet Union during the year.
During the severe energy shortage between November
1973 and March 1974, the Maritime Administration
assisted the maritime industry in developing conserva­
tion techniques. The Administration also assisted other
Federal agencies in formulating fuel allocation regula­
tions and helped ship operators of all flags locate bunker
supplies for merchant vessels arriving at U.S. ports.
Largely as a result of the Administration’s market
development program, U.S.-flag vessels carried 39.8
million tons of cargo in calendar 1973—a 67 percent gain
over the previous year. Although this was the largest
volume carried since 1957, it still accounted for only 6.4
percent of the Nation’s waterborne foreign trade move­
ment.
Domestic Shipping

During the year the Maritime Administration continued
its efforts to strengthen the domestic maritime industry.
A major study completed for the Administration pro­
jected that U.S. domestic waterborne commerce (inland
waterway, Great Lakes, and domestic ocean carriers) will
rise from 867 million tons in 1970 to 2.7 billion tons by
the year 2000. Also completed was a study to improve
communications between vessels on inland waterways
and their company offices.
To help extend the Great Lakes shipping season, the
Administration successfully tested an advanced naviga­
tion system based on the laser principle. It also awarded
several research contracts in the ice navigation field to
aid the Government and Great Lakes ship operators in
evaluating prospects for an extended shipping season.
Projects included development of a bubbler system to
reduce friction between a vessel’s hull and ice, testing of
various ship bow configurations, and economic analysis
and operational testing of a Great Lakes ore carrier
engaged in winter operations.
Civil Rights

To carry out its responsibility to assure equal em­
ployment opportunity, the Maritime Administration

conducted 277 compliance reviews that monitored the
recruitment and employment practices of the maritime
industry. Where deficiencies were identified, or under­
utilization of minorities and women encountered, the
Administration worked with the industry to correct the
shortcomings.
Minority employment in both the shipping and ship­
building industries rose dramatically in recent years. In
1968 minorities held 17.7 percent of the positions in
U.S. shipyards. As of January 1974 they constituted
27.9 percent of the work force. During the same period
black employment rose from 15.5 to 23.2 percent and
Spanish-surname employment from 1.9 to 4.1 percent.
Until recently, women had been virtually excluded from
blue collar jobs in shipyards. In 1968 women held 158
jobs. By January 1974 they held 2,381 positions, 3
percent of all blue collar jobs.
The increase of minority employment by the major
shipping companies is equally impressive. By 1974
minorities constituted 16.4 percent of the total work­
force of the major companies, as compared with 10
percent in 1969. The utilization of women has also
improved. Traditionally tied to clerical jobs, they are
being hired as managers and professionals for shoreside
jobs and are filling positions aboard ships.
In cooperation with the Department’s Office of Minority
Business Enterprise, the Administration developed a
directory of minority entrepreneurs capable of serving as
vendors and subcontractors to the maritime industry.
Contracts amounting to $2.5 million were awarded to
minority firms by U.S. shipbuilders during the first 6
months of 1974. In addition, the Administration assisted
in the creation of three minority firms, two participating
in the shipping industry and the other building barges.
In January 1974, the U.S. Merchant Marine Academy at
Kings Point, New York, became the only Federal
academy to admit women. The Academy prepares young
men and women for careers in all segments of the
American maritime industry. Of the 348 plebes entering
the Academy in July 1974, 15 were women.
Pollution Abatement

The Maritime Administration has continued its efforts to
find better ways to protect the environment from
marine-generated pollution. Environmental impact state­
ments were issued or were in preparation on bulk
chemical carriers, offshore oil and gas drilling and service
vessels and a shore facility for the treatment and disposal
of ship-generated oily wastes. Extensive programs are
underway to improve navigational safety of tankers and
cargo ships and reduce the incidence of pollution
generated by collisons, strandings, or sewage and oily
water discharges.
80

Research and Development

During the year the Maritime Administration com­
mitted $24.3 million for research and development
contracts. An additional $8.5 million was provided by
various segments of the maritime industry through
cost-sharing.
To establish that competitive merchant ships could be
licensed, and to promote their acceptance, the Adminis­
tration completed conceptual designs for a 400,000 and
a 600,000 deadweight ton nuclear powered tanker.
Environmental impact studies of these vessels were also
initiated.
The technical development of an advanced nuclear
reactor design, capable of producing 120,000 shaft
horsepower, has progressed to the point where com­
mercial construction of nuclear merchant vessels can
begin in the near future. The Administration solicited
expressions of interest in constructing nuclear tankers
from American-flag operators. Five companies have
indicated their intention to file applications for
Government assistance for the construction of nuclear
tankers.
The Administration’s shipbuilding research program,
which is aimed at increasing shipyard productivity, has
generated various improvements through the develop­
ment of labor saving devices and automated processes.
Innovations include a lightweight, portable power sup­
ply, a remote weld wire feeder, and a machine that
simplifies vertical welding. In addition, improved mate­
rial handling equipment, including lift platforms capable
of moving modules of 70 tons and multi-pallet forklifts,
were designed. A computer-aided automated ship design
and production control system (“AUTOKON”) was
adopted by five U.S. shipyards. Computer controlled
frame bending is also under development.
Satellite communications experiments were initiated at
the Maritime Coordination Center at Kings Point, N.Y.,
to test the equipment for operational use for ships at
sea. Satellite communications will be used not only for
ship navigation and control but also for fleet manage­
ment requirements of the shipping industry.
A Shipping Operations Information System Program was
initiated with the participation of 15 shipping com­
panies. It will develop systems for handling such fleet
management problems as cargo handling documentation,
maritime industry reporting, resources management, and
intermodal distribution coordination.
In the area of ship automation, an integrated conning
system (with navigation and collision avoidance
aids), a machinery monitoring system (“VIDEC”),
and an anti-stranding sonar system have been devel­
oped and are undergoing testing and evaluation
aboard U.S. vessels.

Ports

During the year, the Maritime Administration pub­
lished a survey of financing methods of public ports
in the United States. It describes current financing
methods in this and other countries and selected
Federal assistance programs which might be applicable
to U.S. port needs.
A study of port collection and separation facilities for
oily wastes was also completed during the year. It serves
as a guide to individual ports for the development of
facilities to handle the disposal of oily water waste from
vessels.

Also completed was a survey of capital improvements
made by North American ports between 1966 and 1972.
It contains projected expenditures through 1977 and
will assist port entities in planning future expansion
programs.
Ship Sales

An aggregate return to the Government of $28.2 million
in fiscal 1974 was realized from tire sale of 87
Government-owned ships. Since the obsolete ship sales
program was established in 1958, the sale of 2,101 ships
has yielded a return of $156 million.

SELECTED WORKLOAD DATA FOR FISCAL 1970-74
CONSTRUCTION-DIFFERENTIAL SUBSIDIES:
Number of new ships contracted fo r..........................................
Total number under construction .............................................
Total expenditures (in 000's) ....................................................
OPERATING-DIFFERENTIAL SUBSIDIES:
Companies with long-term contracts..........................................
Ships covered....................................................................................
Total subsidy paid (in 000’s).........................................................
Companies in Soviet Grain Program ........................................
Ships covered....................................................................................
Total subsidy paid (in 000’s).........................................................
SHIP FINANCING GUARANTEES:
Vessels covered..................................................................................
Shipboard lighters covered............................................................
Principal covered by guarantees (in 000,000’s)......................
GOVERNMENT-OWNED SHIPS:
National defense reserve fle e t.......................................................
Number under bareboat c h a rte r..................................................
General Agency A g reem en t.........................................................
U.S.-FLAG OCEANBORNE FOREIGN TRADE:3
Long tons carried in U.S.-flag ships (000,000’s ) ....................
Percent of U.S. foreign tr a d e .......................................................
3 On calendar year basis. Data for 1974 not available.

81

1974

1971

1972

1973

5
28
$96,723

12
33
$139,191

21
48
$137,345

17
55
$185,878

12
52
$200,344

13
247
$205,732
0
0
0

12
206
$268,021
0
0
0

16
207
$235,667
0
0
0

21
185
$216,846
52
88
$9,865

23
177
$226,504
49
87
$31,41 5

171
360
$911.5

284
520
$1,154.0

434
1,721
$1,692.0

456
2,171
$2,579.0

764
2,221
$3,762.0

1,027
5
2

860
0
1

673
0
0

541
0
0

487
6
0

25.2
5.3

24.4
5.3

27.6
5.3

39.8
6.4

1970

(a)
(a)

CHAPTER XIII

APPENDIX

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMENDATIONS
Report title and date
Recommendation
Action taken
Limited Success of
Commerce’s Office of Minority Business
Federally Financed
Enterprise should:
Minority Businesses in
Three Cities (November (1) Establish long-range goals in terms of
8, 1973).
numbers of successful minority
businesses to be established by the
Federal minority enterprise effort.

(2) Use its new planning, evaluation, and
information system to evaluate the
effectiveness of local business develop­
ment organizations in terms of num­
bers of successful businesses estab­
lished.
(3) Coordinate its management assistance
activities with those of the Small
Business Administration to provide
maximum benefit to minority business­
men.
Foreign Visitor Travel The Secretary of Commerce should direct
to the United States Can the United States Travel Service to:1
Be Increased (November
12, 1973).
(1) Act as the catalyst for getting foreign
tour operators together with U.S.
travel suppliers (airlines, hotels,
ground transportation, sightseeing
attractions, etc.) to discuss the details
of developing travel programs to the
United States.
82

The Office of Minority Business Enterprise
has already established goals on a fiscal
year basis which include raising the success
rate of assisted businesses and doubling the
number of significant-scale businesses
developed through its program. It is doubt­
ful that quantifiable goals can be accurately
set for a longer time span than the two-year
maximum for which projections are cur­
rently made, since many variables such as
the extent of Congressional appropriations
committed to minority business develop­
ment and the availability of business financ­
ing through conventional channels, influence
the attainment of goals.
The Office has now gathered information in
its planning, evaluation and information
system and is currently in the process of
further refining this data to more effectively
evaluate business development organiza­
tions.
The Office recent decentralization has
placed its staff in close contact with the
Small Business Administration, thereby im­
proving the coordination between the two
agencies.

A new Office of Market Development was
created to (1) stimulate the development
of tour programs by the travel trade, (2)
develop merchandising programs to motivate
foreign retail travel agents to actively sell
VISIT USA travel, and (3) analyze the U.S.
tour product to identify the most salable

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMENDATIONS—Continued
Action taken
Recommendation
Report title and date
features and match them to the travel re­
quirements of specific markets. Additionally,
the Travel Service has initiated development
of a sales intelligence inventory containing
the names, addresses and tour specialties of
U.S. tour operators. It also initiated a uni­
form program in all country markets of
identifying and classifying all retail travel
agencies with a present or potential capa­
bility of selling VISIT USA tours.
The Travel Service has recognized the need
(2) Strengthen its field staffs to provide
for new skills. As vacancies occur abroad,
direct, regular consultation to tour
operators and others interested in de­ employees with travel sales backgrounds are
being hired to call on the trade and help
veloping and promoting travel pro­
grams to the United States. The Service operate the new tour development and mer­
chandizing programs. Also, the Service has
should obtain feedback from tour
operators regarding problems in han­ obtained authority to hire six additional
people, which should enable it to strengthen
dling such tours.
its travel trade liaison function in the field
offices. Additionally, a performance measure­
ment system is being installed which will be
capable of providing management with the
data necessary to evaluate the Service’s im­
pact in each of the six prime markets in
which it is competing.
(3) Devote research effort to meeting in­
formational needs of those elements
of the travel industry interested in de­
veloping travel programs to the United
States and consider furnishing direct
financial and promotional assistance to
the travel industry for such things as
the printing of tour catalogs and bro­
chures; photographs, and promotional
material; joint promotion efforts, in­
cluding advertising; and travel trade
promotional activities and seminars.

83

A Merchandising Test Program, consisting
of three elements (1) “product” familiariza­
tion through tours of U.S. sightseeing attrac­
tions and tourist facilities, (2) sales training,
including seminars and class lessons, and (3)
incentives to reward performance, was im­
plemented to determine the extent to which
the Service could influence foreign retail
travel agents to actively push VISIT USA
package tours. The award aspect of the pro­
gram was curtailed at the end of May 1973
when questions were raised by the Subcom­
mittee on Foreign Commerce and Tourism
of the Senate Committee on Commerce as
to the scope of the authority granted the
Travel Service. At the time of the curtail­
ment, none of the agents participating in the
test had been given an award by the Service.
The Service is studying what action will be
necessary to resume the program on a com­
petitive basis.

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMENDATIONS-Continued
Action taken
Recommendation
Report title and date

(4) Generate to the travel trade a regular

flow of ideas and information on
happenings in the United States around
which U.S. travel programs could be
developed and promoted.

Need for Better Identifi­ The Secretaries of State and Commerce, in
cation and Analysis of consultation with the President’s Special
Trade Representative should:
Nontariff Barriers to
Trade (January 21, 1974).
(1) Increase efforts to identify nontariff
barriers through Embassy, industry,
and other available sources. Embassies
should be kept informed of broad
policy and specific developments in
such barriers to facilitate these efforts.

A new Office of Travel Trade, Business and
Convention Travel Development was estab­
lished to (1) facilitate contact between U.S.
travel suppliers and foreign tour packagers,
(2) “sell” the U.S. travel trade on selling
travel to the United States, (3) encourage
international associations to hold their
congresses in the United States, and (4) assist
domestic groups with convention facilities
to attract international meetings.

The present Commerce programs to develop
a nontariff barrier data base for the multi­
lateral trade negotiations are geared to meet
the informational requirements of U.S.
negotiators. The deficiencies which were
cited in the General Accounting Report
regarding the identification and analysis of
non tariff barriers are either outdated or will
be remedied by these programs.

(2) Identify priority nontariff barriers
and give reporting instructions to the
Embassies, in each case specifying the
reporting time frame, level of detail,
and modes of analysis required.
Embassy input should include informa­
tion on the volume of U.S. exports
affected, the impact of the barriers,
new barriers revealed during these in­
vestigations, foreign government atti­
tudes and policies, and potential for
relief. This input should complement
information obtained from industry
and other sources.

Commerce has moved, in coordination with
other interested agencies, to enlist foreign
service posts in a major new effort to identify
and establish the importance of nontariff
barriers maintained by both our principal
trading partners and the less developed
countries. This effort will regularly inform
Embassies of Washington priorities and will
bring up-to-date our knowledge of foreign
country trade practices.

(3) Improve consultative procedures with
private industry and trade associa­
tions and insure that the information
base is representative of industry
interests.

Commerce commodity specialists have con­
sulted trade associations and individual firms
for their views of the implications of Euro­
pean Community standards. A broad range
of industry representatives were contacted to
ensure that their comments are representative
of the entire industry. In addition, Commerce
is considering ways of obtaining the continu­
ing assistance of private U.S. standards bodies
in following and evaluating European efforts
to harmonize standards.

84

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMENDATIONS—Continued
Action taken
Recommendation
Report title and date
Department of Com­
merce’s Promotional
Efforts in Increasing
Exports of U.S. Con­
sumer Goods (March 8,
1974).

The Secretary of Commerce should:
(1) Institute in Japan, or other promising
developed countries, a pilot program
for increasing consumer goods exports.
Such a program could include reverse­
buying missions and group association
efforts.

The Foreign Buyer Program has been initi­
ated with the purpose of encouraging more
foreign businessmen to visit the United
States, at their own expense, and to provide
them with certain assistance during their
stay. The assistance primarily facilitates con­
tact between the foreign buyer and U.S.
firms best suited to accomplish the visitor’s
business objectives. Much of the efforts of
this program involve attracting foreign
buyers to U.S. domestic trade shows.

(2) Enter into cost-sharing arrangements,
where needed, with new-to-market,
new-to-export companies and trade
associations interested in, and capable
of, exporting consumer goods.

Commerce has had a Joint Export Associa­
tion Program for several years to underwrite
half the initial cost of establishing strong
market programs abroad for 3 or more com­
panies, associations or consortiums. The
Program is still in existence but has had no
funds for new projects since 1972. The con­
tract with the Joint Export Association calls
for full recovery of Commerce’s matching
funds based upon the progress and profits
of the venture. One ongoing Association
project has proven significantly successful
for a consortium of 12 U.S. textile mill pro­
duct manufacturing firms (“ USA-TEX”).
Through Joint Export Association Program
funding, this group has been successful in
establishing a strong marketing program in
Western Europe, and is now extending
marketing activities into Japan. The success
of the group and sales volume has been such
that projections indicate there will be a full
cost recovery of government funds.

(3) Contact companies to identify their
needs for assistance in exporting. Work
with them in providing governmental
assistance needed to increase consumer
goods exports with consideration
toward promoting additional U.S. trade
shows on a more comprehensive basis
and assisting in developing U.S. busi­
ness representation and distribution
abroad.

The Bureau of International Commerce
is engaged in a variety of activities to insure
action on this recommendation. For
example:

85

(a) All U.S. exhibitors at the domestic shows
in which the Bureau participates are con­
tacted well in advance of the show regarding
their intentions or desires to meet with po­
tential foreign buyers at the show, (b) an
integral part of the Foreign Buyer Program
is compiling information on the foreign busi­
nessmen planning to attend a show (names,
company, product and business interests, etc.)

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMENDATIONS—Continued
Report title and date
Recommendation
Action taken
so that a “match-up” can be arranged prior
to or during the show, (c) the Bureau is com­
piling a computerized list of U.S. manufac­
turers of consumer goods that are interested
in international trade, and (d) Commerce is
currently investigating other programs which
can be adapted to promoting U.S. consumer
goods abroad. A senior level task force has
been established for this purpose.
The Secretaries of the Army, Com­
merce, and the Interior should, with
the advice of State wildlife agenices,
establish procedures to be observed
by their agencies in implementing a
coordination process for carrying out
the requirements of the Fish and Wild­
life Coordination Act and the criteria
for determining the justification of the
mitigation or enhancement measures
for water resource developments.

Appropriate Federal agencies have been
informed of Commerce’s intention to partic­
ipate under the Fish and Wildlife Coordi­
nation Act, and of the suggested memoranda
of understanding to facilitate coordination.
Commerce has signed a memorandum of
understanding with the U.S. Forest Service
and is examining the possibility of expanding
the agreement between the Secretary of the
Interior and the Secretary of the Army to
include the Secretary of Commerce. Also,
Commerce is discussing with the Bureau of
Sport Fisheries and Wildlife the possibility
of establishing a broadly constituted task
force to address the technical and policy
questions implicit in the General Accounting
Office’s recommendation. Further, regional
directors have been asked to increase their
efforts with State fish and wildlife personnel
to improve coordination and to minimize
duplication of effort.

(2) The Secretaries of Commerce and the
Interior should seek an agreement on
their wildlife agencies’ respective roles
and responsibilities for the coordinated
review of Federal water resource proj­
ects and permits and initiate efforts
to obtain the funds and personnel
needed to effectively implement the
act.

Commerce and the Bureau of Sport Fisheries
and Wildlife have signed a Declaration of
Policy and both agencies have been issued
instructions to carry out this policy. Also,
Commerce is working closely with the
Bureau in an effort to identify their respec­
tive roles and responsibilities and anticipate
that this will result in more definitive memo­
randa of understanding.

Improved Federal Efforts ( 1)
Needed To Equally Con­
sider Wildlife Conserva­
tion With Other Features
of Water Resource De­
velopments (March 8,
1974).

Emphasis Needed on
Government Efforts to
Standardize Data
Elements and Codes for
Computer Systems (May
16, 1974).

To accelerate development and use of
standard data elements and codes, the
Secretary of Commerce should:
(1) Determine where standards would be In addition to the suggestions for new
most beneficial and establish standardi­ standards subjects provided by Federal
zation priorities.
departments and agencies in response to
Secretary Dent’s letter of November 28,
1973, actions are also being taken in

86

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMENDATIONS-Continued
Action taken
Report title and date
Recommendation
cooperation with the National Archives and
Records Service of the General Services
Administration and the Office of Manage­
ment and Budget to identify those data
elements and representations that are com­
monly collected and interchanged in Federal
reporting and statistical systems. This is
being done to identify problem areas and
determine the frequency and extent of
such interchanges. In this regard, some sub­
jects and programs have already been identifield as primary candidates for standardiza­
tion.
(2) Issue policy delineating accepted
The terms associated with data standards
theory and terminology and provide have been issued as an appendix to the
for preparation of guidelines, method­ Federal Regulation on the standardization
ology, and criteria to be followed by of data elements and representations. Efforts
agencies in their standardization efforts. have been initiated to develop and promul­
gate guidelines containing methodologies and
criteria for the development, maintenance
and implementation of data standards. These
are expected to be approved and published
during fiscal year 1975.
(3) Assign to specific agencies responsibili­ A Letter of Agreement between the National
ties for developing standard data ele­ Bureau of Standards and the Civil Service
ments and codes in specified areas.
Commission has been prepared to provide
policy and procedural guidelines for the de­
velopment of data standards in automated
civilian personnel systems. Discussions have
been held with the Office of Management
and Budget and with the Department of
Transportation on similar assignments for
occupation codes, industry codes, and codes
for data used in freight movement systems.
Arrangements will be made with other de­
partments and agencies for the development
of additional high priority standards.
(4) Monitor implementation of data
Federal reporting requirements, in accord­
standards to insure their uniform adop­ ance with the provisions of Office of
tion and use.
Management and Budget Circular A-40, must
be justified and approved in advance. Arrange­
ments are being made with the Office of
Management and Budget and the National
Archives and Records Service to modify
exisiting procedures to require the use of
approved Federal data standards in such
interchanges and to monitor such use by
Federal departments and agencies. Also, the
87

SUMMARY OF GENERAL ACCOUNTING OFFICE REPORTS ISSUED TO CONGRESS AND ACTION TAKEN
ON SIGNIFICANT RECOMMEND ATIONS-Continued
Report title and date
Recommendation
Action taken
National Bureau of Standards is developing
procedures to provide for useful feedback
from installations and agencies on the use of
standards and any problems associated with
their implementation.

88

Secretaries of Commerce and Labor and
of Commerce

Commerce and Labor.
George B. Cortelyou
Victor H. Metcalf .
Oscar S. Straus . . .
Charles Nagel.........

Tenure
Begun
Feb. 18, 1903
July 1,1904
Dec. 17, 1906
Mar. 6, 1909

Ended
June 30, 1904
Dec. 16, 1906
Mar. 5, 1909
Mar. 4,1913

Mar. 5, 1913
Dec. 16, 1919
Mar. 5,1921
Aug. 22,1928
Mar. 5, 1929
Aug. 8, 1932
Mar. 4, 1933
Dec. 24,1938
Sept. 19,1940
Mar. 2, 1945
Oct. 7, 1946
May 6, 1948
Jan. 21,1953
Nov. 13,1958
Aug. 10, 1959
Jan. 21, 1961
Jan. 18, 1965
June 14,1967
Mar. 6,1968
Jan. 21,1969
Feb. 29,1972
Feb. 2,1973

Oct. 31,1919
Mar. 4, 1921
Aug. 21,1928
Mar. 4, 1929
Aug. 7, 1932
Mar. 3,1933
Dec. 23,1938
Sept. 18, 1940
Mar. 1,1945
Sept. 20,1946
Apr. 22,1948
Jan. 20,1953
Nov. 10,1958
June 30,1959
Jan. 19,1961
Jan. 15,1965
Jan. 31, 1967
Mar. 1, 1968
Jan. 19,1969
Feb. 15,1972
Feb. 1,1973

Commerce-.
William C. Redfield
Joshua W. Alexander
Herbert C. Hoover.........
William F. Whiting.........
Robert P. Lam ont.........
Roy D. Chapin .............
Daniel C. Roper.............
Harry L. Hopkins .........
Jesse H. Jo n e s...............
Henry A. Wallace...........
W. Averell Harriman .. .
Charles S aw yer.............
Sinclair W eeks...............
Lewis L. Strauss* .........
Fredrick H. Mueller . . . .
Luther H. H odges.........
John T. Connor.............
Alexander B. Trowbridge
C. R. S m ith....................
Maurice H. S tans...........
Peter G. Peterson...........
Frederick B. D e n t.........
*Interim Appointee.

INDUSTRY OMBUDSMAN FOR B
PROJECTIONS
BUSINESS INDIO
ECONOMICS TECHNOLOGY INC
TRADE CENTERS MOBILIZATION
STATISTICS NATIONAL INCOME
JOB CREATION NAVIGATION Cl
COASTAL ZONE MANAGEMENT
ENERGY ECONOMIC CENSUSES
EAST-WEST TRADE COMPUTER
AQUICULTURE
GEODETIC SUR'
TRENDS MARINE MAMMALS 1
INFORMATION WEIGHTS AND Ml
ENVIRONMENTAL SPACECRAFT
BUSINESS OUTLOOK PRODUCT
BUILDING CODES AND STANDAF
_________ _

...

.

. .

..

___