18 PROVIDE A COMPREHENSIVE PROGRAM IN OCEANOGRAPHY 



The President in his letter to the Speaker of the House dated March 

 29, 1961, outlined an extensive national program in oceanography 

 including the construction of ships, shore facilities, and data centers; 

 conduct of basic and applied oceanographic research; training of 

 oceanographers; and surveys of the oceans. The letter stated that 

 the program would require the coml^ined efforts of our institutions, 

 both public and priv^ate, and the coordinated efforts of many Federal 

 agencies. However, the letter did not recommend a new govern- 

 mental organization such as would be established by the bill, but 

 envisaged that the program would be executed by the agencies con- 

 cerned under present organizational arrangements. 



In the circumstances, the Department would be opposed to the 

 enactment of the bill. 



The Department has been advised by the Bureau of the Budget 

 that there is no objection from the standpoint of the administration's 

 program to the submission of this report to your committee. 

 Very truly yours, 



Robert H. Knight, 

 Acting Secretary oj the Treasury. 



Comptroller General of the United States, 



Washington, March 28, 1961. 

 Hon. Herbert C. Bonner, 



Chairman, Committee on Merchant Marine and Fisheries, 

 House oj Representatives. 



Dear Mr. Chairman: Your letter of February 15, 1961, requests 

 our comments on H.R. 4276. The purpose of the bill is to expand 

 and develop the aquatic resources of the United States and the bill 

 would establish a National Oceanographic Council. 



We have no special information concerning the subject matter of 

 the bill and, therefore, we make no recommendation with respect to its 

 enactment. However, concerning section 10 of the bill, under existing 

 law (31 U.S.C. 67 and 72) we have the authority to initially audit all 

 expenditures from the Treasury except where otherwise specifically 

 provided by law. Also, under existing law we have the right to 

 examine the books and records of certain Government contractors. 

 See, for example, PubHc Law 245, 82d Congress, 65 Stat. 700. The 

 provisions of section 10 would appear to have the effect of restricting 

 this existing authority in the case of expenditures of $50,000 or more. 

 We do not feel our existing authority should be so restricted. Further, 

 in view of the increase in grant programs over the last several years 

 we feel that in order to determine whether grant funds have been 

 expended for the purpose which the grant was made the grantee 

 should be required to keep records which would fully disclose the 

 disposition of such funds. We also feel that the agency making the 

 grant as well as the General Accounting Office should be permitted 

 to have access to the grantee's records for the purpose of audit and 

 examination. Consistent with the foregoing, we suggest that section 

 10 be changed to read as follows: 



''(a) Each recipient of assistance under section 9(a)(3) of this Act 

 shall keep such records as the Secretary of the Smithsonian Institution 

 shall prescribe, including records which fully disclose the amount and 

 the disposition by such recipient of the proceeds of such assistance, the 



