THE NOMINATION OF JOHN W. EDEN TO BE ASSISTANT 

SECRETARY OF COMMERCE FOR TH E ECONOMIC 

DEVELOPMENT ADMINISTRATION

AUGUST 2, 1976

SERIAL NO. 94-H53

Printed for the use of the Committee on Public Works

77-206

U.S . GOVERNM ENT PRINTING OFFICE

WASHINGTON : 1976
COMMITTEE ON PUBLIC WORKS

JE NN IN GS RA NDO LP H, West Virginia, Chairman

ED MU ND S. MU SK IE, Maine 

JO SE PH M. M ONTOY A, New Mexico 

MIKE GR AV EL, Alaska

LLOY D M. B ENTS EN , Texas 

QU EN TIN N. BURDIC K, North Dak ota 

JOHN C. C UL VE R, Iowa

RO BE RT M ORGA N, North Carolina 

GA RY H ART, Colorado

John W. Yago, Jr., Sta ff Director

Bailey Guard, Minor ity S ta ff Director

Leon G. Bilungs, Richard D. Grundy, and H arold H . Braysian (min ority), Senior Professional

Sta ff Members

JAMES L. BU CK LE Y, New York 

HOWA RD H . BA KE R, J r., Tennessee 

RO BER T T . ST AF FO RD , V ermont 

JAM ES A. M cCLU RE , Idaho

PET E V. DO MEN ICI, New Mexico

Philip T . Cummings, R ichard M. Harris, and Richard E . H erod (minority), Associate Counsels

Professional and research staff: Karl R. Braithw aite, James W. Case (Assista nt Counsel), Paul Chimes, 

T renton Crow, Katherine Y. C udlipp, Paul F. Ebeltoft, Jr., George F. F enton, Jr. , Randolph

G. Flood, Kathaleen R. E. Forcum, J ohn D . F reshman, Ann Garrabrant, Richard T . Gre er, 

Wesley F . H ayden, Veronica A. H olland, Ronald L. Katz, Judy F. P arente, John B. P urinton, 

Jr., James D. Range (As sistant Counsel, mi nority), W. Lee Rawls, Charlene A. Sturbitts, 

E. Stevens Swain, Jr. , Sally W. Walke r, and H aven Whiteside

t i l )
C O N T E N T S

OP EN IN G STATEM ENTS

Page

McClure, Hon. James A., U.S. Senator from the State of Idah o________ 2 Randolph, Hon. Jennings, U.S. Senator from the Sta te of West Virginia.. 1 

WIT NESSE S

Eden, John W., nominee for Assistant Secretary of Commerce for the 

Economic Development Adm inistration; accompanied by William F. Clinger, Chief Counsel__________________________________________

Scott, Hon. Hugh, U.S. Senator from the State of Pen nsylvania________

AD DITIO NA L MA TERIA L

Eden, John W.:

Biographical of______________________________________________

Responses to written questions_________________________________

(ill)

NOM INATION OF JOHN W. EDE N

MONDAY, AUGUST 2, 19 76

U.S. Senat e,

C om mittee on P ub lic W orks,

Washington, D.C.

Th e com mittee met at 9:35 a.m., in room 4200, Di rksen Senate Office 

Building, Hon. Jen nin gs Ra nd olph (chairma n of th e com mittee ) 

pres iding.

Pr es en t: Senators Ra nd olph , Stafford, and McClu re.

OPENING STATEMENT OF HON. JENNINGS RANDOLPH, U.S. SENATOR 

FROM THE STATE OF WEST VIR GIN IA

Se na tor R andolph. Good mornin g. We are privileged to have thi s 

nomi natio n before us thi s mornin g. We welcome all oi you.

We are considering the nomi natio n of J oh n W. Ed en to be our Assistan t Secre tary of Comm erce for the Econom ic Develop me nt Adminis tration. I am s ure th at none of you caught the w ord I used, “O ur 

As sis tan t Secre tary.”

I th in k it is very i m po rtan t th at we realize th at all of these p ositions 

are of an inter est to all people in the wo rking s of th e U.S. G overn me nt.

I have used the word oft en because I do n ot w an t to feel person ally 

or to ha ve a nomin ee feel a de tach men t from the people. People are a 

pa rt of th e job. The job is a par t of the people.

We will be discussing the Econom ic De velop me nt Administration. 

This is a very im po rta nt age ncy of the Federal Go vernm ent. I think 

th at t he nominee realizes the importance of th e work th at he has been 

called on to undertake.

We, as mem bers of the Publi c Works Comm itte e and pa rticularly 

the membership of the Sub comm itte e on Econom ic Develop me nt, have 

been, with ou t partis ans hip , int ensel y inter ested in the mo st effective 

use of the programs and activ ities under the aegis of the Econom ic 

De velop me nt Administration. I believe this has gone on for app roxima tel y a 10-year period.

Those program s, coupled wi th the Appal ach ian pro gra m, and the 

title V commissions continue to be vital to hu nd red s of com munities 

in thi s country . Senator McC lur e and yo ur chair ma n are inter ested 

as are all the mem bers of thi s comm itte e in the ref ine me nt of the develop me nt programs th at com e yearly so th at the age ncy and tho se 

th at head it can more eff ecti vely implement, no t o nly th e law, bu t t he 

in te nt of Congress as well in helpin g people to help themse lves .

As we know, the Senate rece ntly passed the 5-y ear ext ension bill. 

We wa it on the Hou se to ac t in reference to th at measure. Off the 

record.

[Discussion off th e record.]

(1)
2

Senator R and olph. We hav e reason to believe th at the House 

immediately aft er the return of the Me mbers from the recess th at 

begins on the 11th will have thi s under con sideration . I hope they 

will tak e action. I wou ld wan t this mea sure to no t be delayed. We ru n 

int o a very t ight sch edu ling program.

I believe th at bo th the Senat e and the Hou se have a respons ibility, 

to go to a conference as quickly as possible. The program s of the 

Econom ic De velop me nt Ad mi nis tration needs a conti nuity of thi s 

effort. It will be very tra gic if the pro gram were to become disjointed.

Mr. Eden, as we kno w, has been since last October a pa rt of the 

Commerce Dep ar tm en t, servin g as Dep uty Un derse cre tary for Fie ld 

Pro grams and also as an act ing special as sis tant to the Secre tary of 

Commerce for our tit le V regio nal comm issions. He was appointed 

as Acting Ad minist rator of ED A on M ay 11. His presen t duties as 

Assistan t Se cre tary a re accen tua ted by his co ntinuing work as a Special 

Assis tan t for title V commissions.

I think that our nominee has had experience. He ha s th e back gro und, 

knowledge, expertis e, and a feel for those pro grams. He has a life th at 

is full of an ind ica tion of respon sibility and resp ons e to need.

I wa nt very much, Se na tor M cClure, to hav e the nomination moved 

from this com mittee to the floor, if th at is the will of the Members. 

I am certain th at Mr. Ed en, if given the full op po rtu nity thr ough the 

app oin tive process with the advice and conse nt of the Senate will 

resp ond to these c hallenge s.

We welcome the o pp or tunity to discuss with the nominee his feelings 

regarding the pro blems and challenges th at are presen ted while im ­

plementin g pro gra ms of economic dev elopment.

Senator M cClu re. M r. Chairma n, I wonde r if I could inse rt a brief 

opening s tat em ent?

Senator Rand olph. Th e statem en t of our able colleague, Se na tor 

McClure of Id aho will be included in the record at this point.

OPENING STATEMENT OF HON. JAMES A. McCLURE, U.S. SENATOR 

FROM THE STATE OF IDAHO

Mr. Chairma n, I am glad to j oin you today in welcoming Mr. Ed en. 

Th e witn ess has alread y app ear ed before this comm itte e earlier thi s 

ye ar in his c ap acity as Special As sis tan t to the Secre tar y for Reg iona l 

Coord ina tion to testify on legislation exten din g the title V regional 

commissions. Mr. Ed en has serve d in th at office since Dec ember 1975, 

to the present, and h e ha s also serv ed as acting As sis tan t Secretary for 

Eco nom ic De velop me nt since M ay 11. I kno w he has take n a keen 

interest in the de ve lop ment pro gra ms autho riz ed by this comm itte e 

and has gained a sou nd workin g know ledge in a very short period.

Las t mo nth the Se na te passed a 3-y ear extens ion of the Public 

Wo rks and Eco nom ic De velop me nt Ac t rep orted by this com mittee. 

I consider it a very good piece of legislation, conti nuing the basic pu rposes and prog rams.

Fo r n early 10 y ears the E conomic De velop me nt Ad mi nis tration has 

provided long range ass istance to distressed c ommu nities to h elp build 

public facilities necess ary to long-ran ge develop me nt and to encourage 

private enterp rise to expand and cre ate n ew job s. Man y com mu nities 

across the co un try h av e been aided by thi s effo rt.
3

The program is entering a very important period in its existence 

and I look forward to working with Assistant Secretary Eden.

Senator Randolph. It is our privilege to have a letter from Robert 

Roe—he is chairman of the Subcommittee on Economic Develop­ ment in the House. He has indicated to me his approval of the nom­ inee and expresses the feeling that Mr. Eden has demonstrated an ability in this field tha t he has had the opportunity of working with 

him.

That letter will be made a p art of the record.

[The letter follows:]

House of Representa tives,

Washington, D.C., Ju ly 29, 1976.

Hon. J ennings R andolph,

U.S. Senate,

Washington, D.C.

Dear J ennings: It is my und erstanding th at on Monday, August 2, you will consider the nomination of John W. Eden for the position of Assistant Secretary of Commerce for Economic Development. I wan t to express to you my strong support for Mr. Ede n’s nomination and urge an early confirmation by the Senate. As you know, Mr. Eden has served as the Acting Assistant Secretary of Com­ merce for Economic Development since May, 1976. At the time Secretary R ichard­ son named Mr. Eden to his present position he was serving as Deputy Under Secretary of Commerce for Field Programs and Acting Special Assistant to the 

Secretary for Regional Economic Coordination. I have had the opportu nity to work with Mr. Eden on a num ber of issues con­ cerning our regional economic deve lopment program s and have found him to be an extre mely capable and dedicated Acting Administrator. Mr. Eden has clearly dem onstrated his strong leadership in administering the Title V Regional Action Planning Commissions during the past year and his willingness to work with Congress to improve the future role of Federal economic development programs in aiding communities a nd regions throug hou t th e nation. During a recent meeting of S tate and local officials from Arizona, California, New Mexico an d Texas, I was particu larly impressed with Mr. Ed en’s active participation in helping to establish 

the new Mexican Border Title V Regional Commission. I am sure th at your Committe e will agree with me th at Mr. Eden is not only qualified to administer the Economic Development Administration bu t also, th at he brings to this job considerable experience which will be invaluable in carrying 

out the E.D.A. programs.

With warm est personal regards,

Sincerely, R obert A. R oe,

Chairman, Subcommittee on Economic Development.

Senator Randolph. Off the record.

[Discussion off the record.]

Senator Randolph. We will hear from the nominee. We are happy, 

as I have said, to have John W. Eden already on board; but we want 

to make it official. Secretary Eden, I know the schedule of our Senators is tight. 

Senator Scott is here. His presence is appreciated.

STA TEM ENT OP HON. HU GH SCOTT, U.S. SENATOR FROM THE 

STATE OF PEN NSYLVA NIA

Senator Scott. Mr. Chairman, I am sorry to interrupt. Mr. Chairman, Mr. Eden, I came over because I had not heard of the hour until a few minutes ago. I am sorry I am late; but I did want to join 

in the recommendation of Mr. John W. Eden.
4

I have known him a number of years. I know that he is well qualified. 

He has in recent years been with Graham Engineering in York, Pa. 

and came to the Department in October 1975. He has been very much 

a p art of the community since he moved to our State from Michigan 

where he had his own corporation and where he was vice president 

in another company.

But mostly 1 speak because I know Mr. Eden, his family, his wife, 

and his son. He is indeed a thoroughly qualified man to be Assistant 

Secretary of Commerce for Economic Development.

I have no prepared statement. I simply want to say that my recommendation is based not on biography, but on my own long acquaintance with Mr. Eden and with his family. I am certain tha t he is 

highly qualified. I do indeed recommend him strongly for the post.

Thank you, very much.

Senator Randolph. Thank you, very much, Senator Scott.

It was my privilege to be with Mr. Eden as we took part in ceremonies initiating projects in Wood County in the State of West 

Virginia.

It is an area tha t suffers an unemployment problem and has many 

opportunities for development. One such project is the extention of 

the airport runway which would permit a better scheduled airline 

service and development of general aviation. A terminal building is 

needed to take care of the people who are to use the airport facilities. 

There is presently underway the development of Mountainwood Park 

which has a multiple-use purpose.

During tha t day, I was convinced tha t Mr. Eden was not just on 

a visit to West Virginia. He was attempting to understand the people 

and their problems and their needs. This was very important to all 

of us. We are very appreciative of your coming.

Senator McClure, do you have any comment?

Senator McClure. Not at this time. I will reserve our time for 

questions when he has completed his statem ent. I, too, want to 

express my appreciation of the minoritv leader for coming. I think 

it is a real tribute that he is taking time from his business schedule to 

be here.

STATEMENT OF JOHN W. EDEN, NOMINEE FOR ASSISTANT SECRETARY OF COMMERCE FOR THE ECONOMIC DEVELOPMENT ADMINISTRATION, ACCOMPANIED BY WIL LIAM F. CLINGER, CHIEF

COUNSEL

Mr. Eden. Thank you very much, Senator Scott.

Senator Scott. I would like to thank again Senator McClure and 

the chairman.

Senator Randolph. Thank you.

Mr. Eden. Mr. Chairman and members of the committee, I want 

to thank the members of this committee for the invitation to appear 

before you today. I am honored to be here and to have this committee 

consider my nomination for Assistant Secretary of Commerce for 

Economic Development.

My regard for EDA and the staff who implement its programs has 

grown steadily during the 3 months I have served as Acting Assistant 

Secretary. With the confirmation of the Public Works Committee and
5

the Senate, 1 shall continue to perform the duties of the office of 

Assistant Secretary for Economic Development with great enthusiasm. To direct the course of the Economic Development Administration in its mission and to work with this committee in the conduct of the Agency’s programs are opportunities I welcome. The goal of EDA is the creation in distressed areas of private sector, long-term jobs with 

the resources Congress has provided. To a businessman who finds himself offered the reins of EDA, this objective is an exciting and welcome challenge. The focus of my 24 years in industry, probably more than in most businessmen’s careers, 

has been on economic development. Mr. Chairman, I now wish to submit for the record a short biographical sketch for the members’ information.

[The biographical sketch follows:]

Biographical S ketch of J ohn W. Eden

Joh n W. Eden was born in 1927 in Cleveland, Ohio. He was gradua ted from 

YaJe University with a bachelor of arts degree in 1951. Mr. Eden served as vice president of sales and was part owner of Production Die Cast Company of Gran d Rap ids, Michigan, from 1951 to 1955. He took a leave of absence from th is position from 1953 to 1955 to serve as a lieutenant in the 

U.S. Nav y. From 1955 to 1959, Mr. Eden headed the Eden Corporation, Detroit, his own company, which engineered and sold component parts to the automobile industry. In 1959 Mr. Eden became associated with AMF, Inc., in Sta mford, Connecticut, where he served as general manag er of the Friction Welding Division and then as executive vice president of AM F Thermalo ol, Inc., a subsidiary. In 1961, during his associatio n with AMF, Inc., Mr. Eden attend ed the P rogram for Management 

Development at Harvard Business School. In 1968 Mr. Eden joined Graham Engineering Corporation of York, Pennsyl­ vania. There he served first as vice president, then as executive vice president with responsibilities in corporate man agemen t and marketing, and finally as assistant 

to the president. Mr. Ede n came to the Commerce Departme nt in October, 1975, and has served as Deputy Under Secretary of Commerce for Field Prog rams and as Acting Special Assistant to the Secretary for Regional Economic Coordination. He is a member of the Secretary’s Staff, the Commerce Policy Council, and the Consumer 

Policy Council. Mr. Eden twice sought the Republican nomination for Congress from the 19th District of Pennsylvania, in 1972 and 1974. Although unsuccessful in both at ­ tem pts, Mr. Eden finished second of seven candidates in the 1974 primary election. He has served as director of the American Red Cross of York County, Pennsyl­ vania, and as vice chairman of the United Fund, a school-board member and an Episcopal vestryman. Mr. Eden is a former president of the Yale Alumni Association of Central Pennsylvania. Mrs. Eden, the former C aroline Brayton Ballou of Providence, Rhode Island, is a professional arti st. The Edens and the ir four children reside in York, Pennsylvania.

Mr. E den. In rnv first job—with AMF, Inc., as director of commercial development in the research and development division—I was part of an endeavor to take new products and develop business around them. We saw a new welding process, whose technology development I directed, evolve into a million dollar division of the company. Later, at Graham Engineering Corp., in York, Pa., I was a partner in the transformation of a 25-man company into an organization with 1976 sales of approximately $14 million. This kind of development leads directly to new, longterm jobs. One of the challenges of Govern­ ment, it seems to me, is how to encourage more of this. One way the Government can encourage such development is through the activities 

of an agency such as EDA.
6

EDA has its own place in the chain of cause and effect from business 

risk taking to new, long-term jobs. The challenge to any Assistant 

Secretary for Economic Development is to help stimulate accomplishment of this job-creation objective along the routes and with the 

means Congress has provided. With the confirmation of this committee, I shall accept th at challenge with enthusiasm.

Congress first funded EDA in fiscal year 1966. From that time 

until the close of fiscal year 1976, EDA ’s ventures with State and 

local entities and the private sector have produced tens of thousands 

of jobs.

EDA has established this record with a range of programs, each 

flexible in itself; taken together, these programs have provided economic stimulus to communities in all sections of the country.

Titles I, II, III, IV and IX of the Public Works and Economic 

Development Act of 1965 embody the major techniques Congress has 

given EDA to help meet economic development problems.

Title IX is a particularly impo rtant program. Through it, political 

jurisdictions and Indian tribes can obtain grant assistance to address 

problems related to economic dislocation and severe changes in 

economic conditions.

Such entities, in turn, have the flexibility of using title IX grants in 

a variety of ways, including the provision of loan and loan-guarantee 

assistance to private firms. Private sector organizations are also 

eligible to receive direct financial assistance from EDA under the title 

II business development program.

Title III, to my mind, represents a most imaginative legislative 

technique. Its scope of operation permits EDA funding of economic 

development planning by public entities. Under section 304, States 

receive resources which they can use to provide to public and private 

applicants the types of grant and loan assistance authorized under 

titles I, II, and Tv of the Public Works and Economic Development 

Act.

In particular, title III can be the vehicle through which local 

governments consider the concerns of business and labor in addressing 

local economic problems. Under the title II I technical assistance and 

planning g rant programs, EDA serves as a catalyst to bring together 

elements of the private sector and levels of government to counteract 

excessive unemployment and underemployment.

The recent history' of the community of Jamestown, N.Y., is a 

concrete example of a title III success story. Since the inception in 

1972 of a community-wide project to increase productivity and halt 

economic decline, Jamestown has enjoyed remarkable labor-industry 

harmony. Through the efforts of the local labor-management committee, which EDA has helped to support, productivity has been 

increased and time lost due to strikes has been greatly reduced.

The crowning achievement to date was the recent announcement by 

Cummins Engine that it would locate a 1,500-employee engine plant 

in Jamestown. It is the first major new plant to open there in 50 years. 

In Cummins’ words, the reason they chose Jamestown was its progressive community spirit.

EDA can play this kind of synergistic role, bringing together the 

elements of a local community to solve economic problems; and, as 

the Jamestown story demonstrates, EDA can do this job well.
7

When called upon, EDA can also cooperate and work with larger 

departments of the Federal Government such as HUD, DOT, and 

HEW in situations where their missions intersect with economic 

development interests.

EDA is a small agency by Federal standards. But it occupies a 

unique role in the Federal structure for it provides the principal means 

through which the Federal Government can focus on the creation of 

jobs in distressed areas—long-term, productive, private-sector jobs. 

As such, it has the President’s support, for it helps to provide the 

permanent economic structure through which we can help our businesses to grow and flourish.

If approved by this committee, Mr. Chairman, as I have said before, 

I would look forward with keen anticipation to the challenge of carrying out these programs.

That concludes my prepared remarks. I would be pleased to try and 

answer questions th at you might have.

Senator Randolph. Thank you very much, Mr. Eden. It has been 

brought to the committee’s attention that you will be Assistant Secretary and Coordinator for the title V commissions. Do you feel th at you 

can do justice to both of these responsibilities?

Mr. Eden. Yes sir. I very much feel that I can. I have had the 

responsibility of the title V commissions since last December and have 

become familiar with the title V program. I t is in many ways similar to 

EDA ’s. As a matter of fact, the commissions are authorized under 

the EDA legislation, although I see the two programs as distinct and 

separate in their own ways.

The title V staff tha t 1 have had the pleasure of working with is an 

excellent team. I look forward to continuing to work with them and 

feel that we can carry out the title V responsibilities as we have been.

Senator Randolph. Then there is a coordination you feel that is 

there with title V and EDA tha t makes it compatible for you?

Mr. Eden. Yes sir. I feel it is a very comfortable coordination and 

one in which we can possibly do some constructive things.

Senator R andolph. Would you be able to say they complement one 

another in the work that is their responsibility?

Mr. Eden. Yes, I feel very much tha t they do. As a matter of fact, 

a number of our grants are supplemental to one another. The Commission supplements some of the EDA programs, and the reverse is true.

Senator Randolph. The economic adjustment program, what do 

you envisage th at program to be at the present time?

Mr. Eden. The scope of the program at this time has, quite frankly, 

not been as extensive as I might have expected it to be. We have 

extended invitations to those industries—the shoe industry and the 

special steel industry, for example—that have trade problems, and we 

have not had a very heavy response for assistance from firms in this 

particular area.

However, I think tha t as the technical assistance and other trade 

adjustment aid tha t we can provide is bette r known to the companies, 

perhaps we wall have more involvement with them. But our activities 

in this area at this time arc not tha t extensive.

Senator Randolph. As you will recall, Mr. Eden, the President 

requested $225 million for fiscal year 1977 in the EDA program. In 

Congress, we appropriated $360 million. That, of course, is the intent
8

of Congress. Do you anticipate tha t you will be able to do what the 

Congress has requested be done with the appropriation of these funds?

Mr. Eden. I feel th at we have the staffing to carry out these programs very adequately, Mr. Chairman. Our funding in fiscal 1976 

was $360 million, so it does not represent an increase over our past 

activities. We have been carrying out our programs in, I think, an 

efficient manner this past year.

Senator Randolph. Wha t about OMB?

Mr. Eden. The OMB guidelines to us, their admonitions to us, 

arc to do all tha t we can to manage the program as efficiently as 

possible with the people tha t we have available to us at this time.

Senator Randolph. You feel tha t the staff is able to do the job?

Mr. Eden. I feel the staff is there to do the job within the requirements of this legislation.

Senator Randolph. Yes, in the amount of $360 million?

Mr. E den. Yes sir.

Senator Randolph. We are told tha t certain border States, Texas, 

New Mexico, Arizona, and California have been seeking to have a 

regional commission that would run along that part of the Mexican 

border. I am not sure whether you have knowledge of this proposal.

Mr. Eden. Yes sir, I do.

Senator Randolph. What do you think about the proposal and 

what would you recommend Secretary Richardson do if you were 

called on or if you have been called on, even informally?

Mr. Eden. 1 am familiar with that activity, Mr. Chairman. The 

four States held a preliminary meeting in El Paso in May on the 

subject, at which I was fortunate to be present. This was in response 

to Secretary Richardson’s letter to the four Governors of those 

respective States, advising them of the potential for the establishment 

of a border commission.

The four States have joined together in forming a request document 

which we received 2 weeks ago. The staff is evaluating the contents of 

tha t document at this time. 1 think it might be somewhat premature 

for me to indicate what our position might be in response to that 

document, for we have n’t had a chance to review the details of it. 

However, the border States and that region along the border of all 

four States do have some unique economic problems tha t encourage 

us that there might be the basis for a decision on the Secretary’s pa rt 

in favor of such a commission.

Senator Randolph. Thank you very much.

Senator McClure?

Senator McClure. Mr. Chairman, there are a couple of areas that 

I would like to address to Mr. Eden. It seems to me it causes us all a 

little problem on the focus of EDA. I am quite aware and I am sure 

that you are too, Mr. Eden, that the thrust for title V commissions 

has in recent years begun to assume the proportions of making certain 

tha t every area in the United States or its territories have a title V 

commission. The chairman has mentioned the border situation 

between us and Mexico and the application tha t is being made by 

those States tha t are involved.

1 am also aware th at Puerto Rico and the Virgin Islands have asked 

for title V commissions there. As a matter of fact, tha t has been pending for some time. Are you aware of their submission?
9

Mr. E den. Yes sir. We have their request under consideration at this time, along with the border commission request. The request from the Virgin Islands and Puerto Rico preceded the border region 

request by a couple of months.

Senator McClure. 1 put it in the context 1 did because as we are getting to the point of almost universal application of title V com­ missions, so tha t there is no area of the country or its dependencies tha t is not covered by a title V commission. Then we begin to wonder how we fit the direction and thrust of EDA within the scope of a nationwide program. There arc those who will convert EDA into a kind of a general assistance program for all areas without regard to the criteria tha t are set forth in the EDA statu te. As stated in the committee repo rt explaining the need for the 3- year extension of the act, I quote from the committee report:

Nearly 11 years ago, Congress passed the Public Works anti Economic Devel­ opm ent AcL Th e purpose was to assist regions, counties and communities suffering from sub stantial and persistent unemployment which have lagged behind the rest of the Nation. The Federal Governm ent, in cooperation with the States, was to assist these areas to take effective step s in planning and implementing economic development programs based on public works investments.

Do you agree with the committee that there is a continuing need for EDA to serve these areas and should continue to be the focus and 

goal of the Agency and its programs?

Mr. E den. Yes, sir. I believe that it should be the role of EDA to continue to serve economically depressed areas; the areas that we see 

have a need within the country.

Senator McClure. Tha t need is based upon the substantial and persistent unemployment and under the guidelines as set forth both 

in the statu te and the regulations.

Mr. E den. Yes.

Senator McClure. The reason I emphasize tha t is th at we have a lot of areas in the country tha t would like something done. They all have needs. I know of no city anywhere in the United States that doesn’t have some needs or any area tha t doesn’t have some needs. The question then becomes the focus of the program, are we going to be a general assistance program for economic development or a pro­ gram targeted toward those areas that have substantial and persistent unemployment, as in the words of our report. I think we need to keep tha t focus before us. As you know, we had some criticism of grants in the State of New Jersey to organize a corporation under title IX that was money which was that portion of the grant that went to the State and then the State in turn would make the loan. There was substantial criticism that that loan really was not one that was targeted toward an area of substantial and persistent unemployment. Even though it was done by the State, it didn’t make the guidelines for the program. That money, when repaid, then goes back to the State for a revolving fund for economic development purposes; but again, I assume still subject to the same guidelines of trying to target areas of substantial and persistent unemployment, rath er than just someplace that may need a business loan. Would you comment?

Mr. Eden. I agree again, Senator, tha t we should be targeting our effort to those areas that have been the most severely impacted from an economic point of view. To speak to your earlier point with regard
10

to the title V commissions, I think the time has arrived where we 

should make an evaluation of the overall thrust of the title V commissions as to where they are going and what limit, if possible, we 

should pu t on their continued expansion. Because at the rate at which 

we are going, we are going to end up with requests from throughout 

the country.

It might be an appropriate time now to take an in-depth look at 

the role of the commissions, as well as at their structure, as they 

relate to our long-term goals with tha t program.

Senator McClure. Are you referring to the entire EDA program 

when you say that?

Mr. Eden. No. I am speaking of title V.

Senator McClure. W hat is your conception of the title IX economic 

adjustment program? Where do you feel its principal focus could rest?

Mr. Eden. I feel its principal focus should continue to be on those 

areas which have been severely affected by one type of economic 

setback or another, be it a military base closing or some Federal activity or an environmental position th at plays havoc with an industry 

in an area or any other occurrence t hat would hurt a company and be 

outside its control. I think we within the Agency should be particularly 

vigilant and perceptive of the needs for this type of assistance and be 

capable of responding quickly to it with the title IX legislation. It is 

new to us. As I have examined its use over the past year, I have admired the kind of things tha t have been done. I think we need to be 

even more resourceful in the implementation of t hat legislation.

Senator McClure. Chairman Randolph, a few moments ago I 

mentioned the fact tha t we didn’t seem to have as much activity 

under title IX. As I recall, your response was that you weren’t quite 

sure why that was so. Maybe the businesses that were affected had not 

been aware and had not made application.

Mr. Eden. I was referring there, sir, just to the Trade Act section 

of title IX. For overall title IX, our budget last year was $77 million. 

Th at entire portion was utilized.

Senator McClure. Do you feel that the response of the communities 

and local planning entities and the States has been adequate under 

title IX?

Mr. E den. Yes, I feel that it has. I think they have learned the 

program quickly through our economic development representatives 

and our regional offices and have responded well to it.

Senator McClure. Do you think the title V commissions and EDA 

coordinate well at the present time? Are their problems in coordination? Are they doing the same things? Are they overlapping in what 

they are doing or are they complementary to each other? IIow do you 

feel about the way the commissions and EDA mesh?

Mr. E den. They are complementary. They have means of a system 

and means of working effectively together. I am anxious, however, to 

try to stimulate more join t cooperation in this area. But there are 

channels of communication through the staffs of the title V’s and the 

regional directors of EDA on a regular on-going basis as it relates to 

specific projects and specific areas where they could cooperate in 

funding. But I would like to see more creative things undertaken with 

tha t cooperation.
11

Senator McClure. You do think the cooperation is working well, 

if I understand you, but it could be improved? But generally, you think tha t the two administrations are at least complementary to 

each other, not merely duplicative?

Mr. Eden. Yes; 1 agree. The title V’s bring to economic develop­ ment a regional overview and have a regional thru st th at I think is very valuable, as it complements the more district-oriented activities 

of the EDA.

Senator McClure. In one respect, a confirmation hearing such as 

this is a little different than many because you have been on the job. We are not just asking you as an outsider your views of a program. Perhaps because of that it takes some elements of an oversight hearing as well. Let me ask you this question: In the short time you have been at EDA, what do you see as the single most important need or problem 

confronted by EDA?

Mr. E den. I might answer th at from a philosophical point of view. To me, it is to continue to find ways tha t EDA can be as creative as possible in stimulating jobs in the private sector. I think that economic development is a very difficult thing to undertake. How does the Government go about helping businesses to thrive, and therefore provide long-term private sector jobs? I think that the challenge is to do all we can to be as creative and imaginative as possible. Let me also answer your question about E DA’s biggest undertaking from an administrative viewpoint. Our main objectives, I think, should be to be as responsive as we can possibly gear ourselves to be to our constituents, be they States, cities, counties, or the businesses located therein; to be as responsive as we can with our correspondence; and to make our decisions on applications as rapidly as we can.

Senator McClure. There are a couple of old cliches embedded in 

American-political social life that occur to me in this context. One is that, “The rich get richer and the poor get poorer.” The other is 

that, “Them that has, gets.” Is that a problem with you in the sense tha t those communities tha t need the help the least are most competent in being able to apply 

to you for help?

Mr. E den. That is a problem about which we have to be vigilant. However, I would say that I have been very impressed with the economic development representatives tha t EDA has in the field. These are dedicated men and women who have a bent towards the small fellow who needs the help. I think that attitude has been some of the tradition of the Agency. Repeatedly, I find people approaching me when I am out of Washington, in the field, who will comment about how we, the Agency, have come to help a small community or a small 

business, and so forth. I think we have done an effective job there, really, of searching out and communicating with tha t small entity tha t otherwise might be overlooked. I would say we are vigilant about that. We talk about it in our staff meetings quite regularly and try to structure our procedures to be certain tha t it isn’t the large city, the large State, the large municipality t ha t gets the favor over some other locality that might 

not be as capable of bringing its case to us.

Senator McClure. Thank you very much, Mr. Chairman.
12

Senator Randolph. Thank yon very much, Senator McClure. 

Senator Stafford, do you have a comment?

Senator Stafford. Thank you, Mr. Chairman. T have no questions. 

Mv reaction generally is one of approval. I am ready to vote on the 

nomination whenever the chairman wishes.

Senator Randolph. Thank you very much, Senator Stafford. I do 

feel tha t the committee has a responsibility to move the nomination 

to the Senate. With the absence of a quorum it is almost impossible. 

Would there be an objection, Senator McClure, or Senator Stafford, 

to polling the members of the committee in reference to the nominee?

Senator McClure. As you know, Mr. Chairman, that is not a policy 

that I favor as a m atter of policy. But I do realize, too, the constraints 

of time tha t both this committee and the Senate as a whole faces 

between now and the recess. For tha t reason, I not only will raise no 

objection, but I support the objectives of the Chairman in doing it in 

this manner.

Senator Stafford. Mr. Chairman, I agree with Senator McClure.

Senator Randolph. Then without objection, we will follow tha t 

procedure.

One final question. We have agreed tha t the programs of EDA are 

important. They are in the process, oftentimes, of transition in order 

to comply with the law as it is amended necessarily as conditions 

change. In our new Public Works Employment Act we authorized, in 

three titles, funding necessary to carry it into being. I would ask you 

this final question. Contingent upon the amounts that will be voted 

in appropriations, of course, some action has already been taken in 

the House on title I by the subcommittee which is chaired by our 

colleague from West Virginia, Representative Slack. Are you ready to 

organize and to move forward, Mr. Eden, in this program, Public 

Works iob?

Mr. Eden. Yes, sir, Mr. Chairman. I feel we are. We are required 

by the legislation to have rules, regulations, and procedures ready 

within 30 days of the enactment of legislation. We are working very 

diligently on those at this time. They will be published on August 23. 

We have a task force that has been working, as I say, very regularly 

on the legislation. I feel we will be ready when and if funds are apportioned to us.

Senator Randolph. 1 think this is a very positive statement. It is 

very important for the record because undergirding the action in the 

Congress and the overriding of the veto in both bodies—I will not go 

into tha t controversy. Bu t there was a general agreement tha t if this 

program was to be substantial in alleviating unemployment, provided 

projects tha t were substantia l in nature for a lasting benefit, tha t we 

wait not for 6 months or a vear, but that we move boldly, effectivelv.

I think we can do that. This assurance from you t hat you are ready, 

that you are geared to such a program, I think this is very helpful to us.

Mr. Eden. There are difficulties with it. We are encountering some 

problems, which we are working on now. But EDA will be ready.

Senator Randolph. Thank you very much. Without further 

questioning, we will follow the procedure we have agreed on. We hope 

to have that polled today. I think, without objection, we will consider 

that as our procedure in this matter. To you, Mr. Eden, and to your 

associate who we should identify-----
13

Mr. E den . This is Mr. Bill Clinger who is the General Counsel 

of ED A.

Se na tor R andolph. We are apprec iative of y our coo peratio n.

Se na tor M cClu re. Off the reco rd, Mr. Ch airma n.

[Discussion off t he record.]

Mr. E den. Th an k you, M r. Chairma n.

Se na tor R andolph. T ha nk you.

[Mr. Ede n’s responses to writ ten que stions follow:]

U.S. Department of C ommerce, 

Washington, D.C. September 2, 1976.

Hon. Jennings R andolph,

Chairman, Senate Public Works Committee,

U.S. Senate, Washington, D.C.

Dear Mr. Chairm an: In response to your letter of August 13, I am providing the enclosed set of answers for your consideration. I hope that they will provide you with insights into my views with respect to the roles of ED A and the Title V 

Commissions. I also want to take this opportunity to express again my appreciation for your courtesy during my confirmation hearing. As I indicated at that time, I am thoroughly enjoying the challenges offered by ED A and look forward to con­ tinuing to work closely with you and the other members of the Public Works 

Committee. Please do not hesitate to let me know if I can be of further assistance.

Sincerely yours, John W. Eoen,

Ass ista nt Secretary fo r Economic Development.

Question 1. ED A has responsibility for State and local economic development planning. There are some who believe it has done an uneven job in this important area. What is your view of the role and importance of economic development 

planning? Answer. I believe that sound, dynamic planning involving public officials and priva te citizens is crucial to the implementation of successful economic develop­ ment programs at local, district, State, and regional levels. Through such planning, economic potentials and problems can be identified on a continuing basis, and coordinated approaches to exploiting or resolving them can be agreed upon by those in a position to insure that those approaches are carried out. As you are well aware, economic development planning assistance is an integral component of ED A’s approach to stimulating development in economically distressed areas. We provide support to local areas, districts, and States to enable them to develop professional planning capabilities and a comprehensive, ongoing planning process. Although the primary form of this support is funding for staff and other administrative expenses, ED A has also assisted in improving planning through the provision of training for local leadership, relevant research, and 

various types of technical assistance. In the months that I have been associated with EDA, I have become increasingly appreciative of the Agency’s abi lity to provide planning assistance to different levels of government. I have also been convinced of the importance of coordinating the planning activities of the various levels of government in a State or region to insure consistency among plans and cooperation on developmental efforts 

affecting more than one jurisdiction. In short, I view the promotion of coordinated, comprehensive economic devel­ opment planning as a major ED A responsibility, and assure you that I am giving high priority to the Agency’s planning assistance programs.

Question 2. What is your philosophy of the role of economic development in our economy? It has been alleged that you favor larger businesses over small businesses when project grants and loans are made by ED A. How would you 

respond to that charge? Answer. As I have said on numerous occasions since becoming associated with ED A, I view the Agency’s mission as one of using Federal funds to stimulate the creation of permanent jobs in the private sector. In my judgment, this approach to promoting economic development is an appropriate, effective means of improv­ ing the national economy, as well as the economies of distressed areas.
14

EDA has no policy th at is related to the size of applican t firms. In each instance, 

applications for assistance are judged on their merits in terms of what the project 

will do for th e local community, and on the basis of evidence th at there is a reasonable expectation t ha t the loan in question will be fully repaid. In fact, 90 percent 

of our borrowers have fewer than 500 employees.

Question 3. We have seen l ittl e enthusiasm for EDA by the Executive in recent 

years. What is your assessment of th at history and what do you thin k of the 

present and futu re sup port for economic development?

Answer. As you know, the President has requested a three-year extension of 

the EDA legislation, an action th at reflects a positive attitud e toward the goals 

and functions of th e Agency. Even when our c oun try’s economy has been healthy, 

pockets of substan tial unemployment and underemployment have existed. As a 

consequence, there has been a continuing need to address the problems of such 

areas. The President’s requ est for a three-ye ar extension of our author ity is an 

expression of his concern and recognition of the need to provide financial assistance to these economically depressed areas.

Question 4- We have been disappointed in the pas t with the seeming reluctance of 

the Administration to make the business development program a stronger force in 

the EDA mission. What is y our judgm ent abo ut the value of this program and its 

future potential?

Answer. I feel tha t the business development program is one of the most importa nt tools available to EDA for stimulating economic development. Over the years, 

EDA h as had considerable success with this program as a means of creating new 

job opportunities in the private sector. Recen tly, it has also proven extrem ely 

valuable in saving existing jobs by helping to provide financial assistance to companies suffering the severe effects of the recent economic decline. Although there 

has been no dramatic increase in the funding for this program , we have been able to 

increase its effectiveness th rou gh the additional auth ority granted this program in 

December of 1974. Through th e use of the gu ara nty program , we have been able to 

leverage the modest appropriation for this program to generate a substantially 

large r investme nt by the private sector. I see a very definite near- and long-term 

need for this program as a key feature of any effort to stimulate economic 

development.

Question 5. You stated it is tim e to look at the Title V Commissions. Who do you 

suggest should do that? The Depar tment of Commerce has been generally hostile 

to these Commissions.

Answer. In stating tha t it was time to look at the Title V Commissions, I was 

reflecting the fact th at many changes have taken place over the ten years since the 

legislation was enacted in 1965. M any of the Commissions now contain substantial 

urb an areas, in contrast to the predominantly rura l cha rac ter of their initial 

designations. The Congress has also given them new authorities which go beyond 

the original theme of assistance to lagging economies.

Secretary Richardson has recently established a special Task Force within the 

Depar tment to examine the curre nt form and activities of the Title V Commissions, including criteria for designation, and to make recommendations for improvem ent of the program. This action has n ot been taken in a spirit of hostility, 

bu t r athe r with the intention of bett er delineating the s tren gths and virtues of th e 

Commissions so tha t their programs become more productive and effective.

Question 6. I have heard th at there is in terest in forming Regional Commissions 

from Illinois, Indiana and Ohio, as well as New Jersey, New York and Pennsylvania. Have you had contac t with any governors of these states? What is your view 

of new Commissions for these sta tes?

Answer. My staff has received inquiries from represen tatives of the Office of the 

Governor of New7 Jersey, the Office of State Planning and Development of Pennsylvania a nd the State Economic Development Board of New York, all speaking 

in behalf of the Governors rega rding designation of the thr ee- Sta te region. We 

have also had inquiries from staff to the Governor of Ohio concerning a region 

consisting of Ohio, Illinois, Indiana, and Iowa. Rep rese ntatives from these four 

States met recently in Indianapolis to formulate a plan for requ esting designation. 

We have provided information concerning the requirements for designation.

Whether these proposed regions should be designated is, of course, a function of 

their satisfying crite ria of th e law. Deciding th at question is contingent upon an 

analysis of the evidence to be subm itte d by the applicants. Assuming they meet 

the criteria, I believe there is general merit in the proposed groupings. Certainly 

New York, Pennsylvania, and New Jersey have much in common economically. 

The large urban com ponent adds anoth er element to their economic picture. These 

States have indicated th at the ir primary inte rest in regional designation lies in 

benefits derivable from regional planning, research, and analysis.
15

The Ohio, Illinois, Indiana, and Iowa region also seems appropriate. These States app ear to have economic links drawn from the Gre at Lakes ports and waterway s activities, in addition to indications th at the strength of the manu­ facturin g elements in their economies is failing.

Question 7. Public Law 94-188 authorized the Comm onwealth of Puerto Rico and the Virgin Islands to be designated as an economic deve lopm ent region and in mid-March the governors applied to the Secretary for designation. We under­ stand th at the Secretary has not yet made a decision on this application. What role have you played in this ma tte r? Can you explain why it has taken four months for this application to be considered with as yet no decision? What is 

holding it up? Answer. My Office reviewed the Antilian Regional designation request im­ mediately after it was received. While the application was s ubstantively convinc­ ing in its case for designation, at th at time Congress had not yet appropriated funds for FY 1977. Therefore, to have designated and formed the Commission would have required reprogramming monies from allocations already made to existing Commissions from the FY 1976 funds. It soon became clear th at other designation requests would likely be forthcoming with funding implications. As a consequence, Secretary Rich ardson determined th at it was necessary to examine the Title V program in a larger context, including a look at funding requirem ents under currently authorized programs, before designating any new regions. Thus, action on the Antilian request awaits the results of th at Task Force investigation to which I referred earlier.

Question 8. Briefly explain the process of reviewing and approving the com­ prehensive long-range economic development plans required by Section 503 of the Act and give us the current s tatus of each plan. What purpose do you see the plans serving? What instructions or guidelines have been given the Commissions as a basis for developing the ir long-range plans? Are these guidelines mandatin g minim um estim ates of appropriation requests? Answer. The Secretary of Commerce on August 19, 1975, published in the Federal Register proposed regulations covering the basic elements required of long- range plans. Also published were review stan dards for these plans as a prereq­ uisite for the Secretary’s submission of these plans for review by other Federal agencies, and, eventually, to the President. The proposed regulation s were rep ub­ lished and made effective October 15, 1975 (copy attach ed for read y reference). The process of plan review consists broadly of the following steps. (1) The Regional Commission prepares a dra ft plan and subm its it to the Secretary of Commerce for his review and approval. (2) The plan is reviewed both internally within Commerce and also by other Federal agencies constitu ting the Federal Advisory Council for Regional Eco­ nomic Development (FA CR ED ). Normally, 60 days are allowed for this review. 

Written comments are requested. (3) A meeting of the FA CR ED is convened at which the agencies summarize the ir views on the draft. The proceedings and agency writte n comments are 

published. (4) The Regional Commission adju sts and modifies the draft as it sees fit based on the agency reviews and comments. (5) The amended dra ft is the n resubmitted by the Commission in final form 

to the Secretary for approval. (6) The Secretary also tran sm its the Plan to the President, along with a tra nscrip t of the FA CRED meeting.

TI TL E 13—BUSINE SS CR ED IT AND ASSISTANCE 

Chapter V—Regional Action Planning Commissions 

AD MI NIST RA TIVE PR OC ED UR ES 

Part 530—R eview of Commission Plans

Sec.

5.30.1 Au thority and purpose. 5.30.2 Com preh ensive planning. 530.3 Review sta ndard s.

Auth or it y: 42 U.S.C. 3181 et se q.; 42 U.S.C. 32 11; Ex ecu tive Order 11388, dated 

December 28. 1957.

§530.1 Authority and purpose. Section 503(a)(2) of the Act (42 U.S.C. 3183(a)(2) requires each regional commission to develop a comprehensive long-range economic p lan to be approved by the Secretary. Section 503(b) (42 U.S.C. 3183(b)) requires the Secretary to
16

“ present such plans and proposals of the Commissions as ma y be tran smitted and 

recom mended to him (but are n ot authorized by a ny other section of the Act) first 

for revi ew by the Federal agencies prim arily interested in such plans and prog

osals and then, together with the recommendations of such agencies, to the 

resid ent for such action as he m ay deem desirable.” The Sec retary , in cooperation with the Federal Coc hairman , will determine app rop riate procedures for 

obta inin g review of commission plan s by interested departm ents and agencies. 

§530.2 Comprehensive planning.

Commission plan norm ally shou ld be supported by regional programs which 

hav e been endorsed by the commissions; when ful ly develope d these plans will 

ordinarily include the following eleme nts:

(a) Review of prior studies. Th e regional plan should include a review of prior 

studies concerning the region’s econ omy.

(b) Framework for analysis. Th e regional plan should include an estim ate of the 

gaps in research and data needed to cond uct effective developm ent.

(c) Review of the regional economy. The regional plan should include projections 

of population and labor force and employm ent by key indu strial sectors, and an 

inv entory of natur al resources. It should ana lyze the prese nt cap abilit y of the 

infrastr uctu re to support economic growth. It should identify the majo r growth 

centers within the region which are capable of long-term economic growth.

(d) Review of conditions inhibiting growth. The regional plan should include a 

review of the major factors which have caused the region to lag b ehind the Nat ion 

as a whole in economic developm ent.

(e) Review of major plans and pending decisions. The regio nal plan should review 

public and available private plan s for capital expansion and investment, and 

shou ld rela te these other public and private plans to the commission’s regional 

plan.

(f) Establishment of regional goals. The regional plan should include an exp licit 

sta tem ent of the region ’s economic goals, such as reducing unem ploym ent, raising 

personal income, raising educational levels, and so forth.

(g) Determination of a development strategy. The regional plan should set forth 

an exp licit stra tegy for ach ieving the region’s specified develop men t goals. This 

str ateg y should include an analysis of the extent to whi ch public investment 

shou ld be concentrated or dispersed, and what kinds of pub lic investmen ts are 

the most critic al for achieving a higher rate of economic grow th.

(h) Review of existing program adequacy. The regional plan should include a 

review and analysis of the exten t to which existing Federal, State, and local 

programs are adeq uate to sup port the commission’s goals and strategies. It 

should identify the majo r gaps, modification s, or supplements to existing program s 

which will help carry out the comm ission’s deve lopm ent str ate gy.

(i) Criteria for project identification. The regional plan should include an analysis 

of the classes of projects which are consistent with the commission’s goals and 

prog rams and an identification on a regionw ide basis of the locations and typ es 

of projects necessary to carry out the regional plan for economic development.

(j) Consideration of other plann ing in the region. In dev eloping plans and car rying 

out other activities under section 503(a)(2) and (7) of the Ac t (42 U.S .C. 3183(a) 

(2) and (7)), due consideration shall be given to the planning and activities of o ther 

Federal, State, local and sub -St ate planning agencies (including economic develop ­

ment districts) in the region.

§530.3 Review stan dard s.

In reviewing the commission’s regional plans prior to ma kin g recommendations 

to the Presid ent, the Sec retary will consider the following fact ors:

(a) Consistency with national economic trends. The proj ections of economic 

ac tivi ty contained in the plan s will be compared with trends in the nation al economy. Such p rojections of regional grow th should be reasonably consistent with the 

proj ections of national gro wth and other projections of regional growth, particula rly when t he regional projections depend for their success upon growing regional 

exports to national markets.

(b) Interregional consistency. Regional plans developed by the commissions will 

be assessed to determ ine their reasonable cons isten cy with each other, taking into 

accoun t the differing needs and objectives of the various regions.

(c) Transference of employment. Th e regional plans will be assessed to assure th at 

the y do not provide for nor enco urag e ind ustry or business to reloc ate in a region 

is such relocation will result in a transfer of jobs causing unem ploymen t at the 

original location of the ind ustry or business.
17

(d) National benefits. The regional plans should attempt to provide reasonable 

assurance that economic grow th within the region can be sustained, and tha t the identifiable benefits from the proposed regional program justify the estimated 

Federal investment. The cu rrent status of the seven Regional Commission plans is as follows.

(1) Coastal Plains: The P lan approved in 1970 is being revised to reflect regional 

expansion and more recent economic and demographic changes. Current tar ge t 

for submission for review is October-November 1976.

(2) Four Corners: The prio r plan approved in 1972 is being revised to reflect 

regional expansion and to improve the planning process. Cu rrent target for submission for review is Spring 1977.

(3) New England: The plan of 1972 has been revised. FA CR ED review is 

scheduled for October 1976.

(4) Old West: This new Commission’s plan was reviewed at a FA CRED meet­ ing on August 11, 1976. After modification by the Commission, it is expected to 

be subm itte d to the Secretary for approval in September 1976.

(5) Ozarks: The revised Ozarks plan was reviewed in Feb rua ry 1976. It was 

approved by the Secretary of Commerce on June 21, 1976.

(6) Pacific Northwest: The plan is nearing completion. An initial dra ft is being 

revised. FACRED review is projected for Spring 1977.

(7) Upper Great Lakes: The revised plan was reviewed by FA CRED in Jun e 

1976 and the draft is being modified on the basis of FA CR ED comments. A 

final version is expected by December 1976. The plans serve to identify ma jor economic development problem s in the regions, to displa y the development goals an d the proposed means of achieving them, and to estima te the public and private costs involved. By making this inform ation ex­ plicit, the plans induce discussion and consideration by priva te citizens and organizatio ns and public agencies. The plans also provide a basis for budg et justification, since t hey incorporate the best available assembly of data, analysis, 

projections, and regional asset inventories. The published guidelines th at have been issued do not ma ndate minimum esti­ mate s of ap propriation requests. Such requests have been more typically a function of general Dep artm ent bud getary levels in the context of the overall Federal 

budget.

Question 9. The Congress is curren tly considering the Admin istratio n’s legisla­ tion th at would extend a uth ori ty for EDA and the Title V Regional Commissions thro ugh fiscal 1979. Based on y our experiences with the Regional Commissions to date, w hat future pattern of programs and activities do you see for them? Answer. As you know, over the ten years in which the Title V Regional Com­ missions have been functioning, the re have been clear shifts and changes in their purposes and programs. Originally conceived solely as planning agencies oriented toward depressed rura l regional economies, they have more recently both taken and been given responsibilities th at dep art considerably from this earlier, and narrow er, view. M ost Commissions now address full S tate territo ries, which means they have significant urban features. Also, the Congress has rec ently charged th em with duties in such areas as energy im pact, transportati on, a nd health and educa­ tion th at are not exclusively keyed to lagging economic development. Rather, they are direc ted more toward dealing with critical growth impa cts or general socioeconomic needs. For my own part, I accept this evolution as both right and necessary. A main streng th of the Regional Commissions has been the ir successful joining of State and Federal interests. The regional program is one of the rare instances in which Governors have a full and active voice in the determination of Federal program activities. I believe this is a constructive way to proceed. The plans th at have been produced thu s far indicate th at there are significant problem s of regional scale th at mu st be addressed. The Title V Governors have universally indicated their commitmen t to the concept of regional planning and program implementation.

Question 10. For the past several years the Department of Commerce appears 

to desire abolishment or modification of the regional program b y transferring some or all of its functions to another agency. This action by Commerce continues to take place despite the Se cretary’s designation of new Commissions and a resulting expansion of program demand. The Dep artm ent submits minim um budgets with no increase from year to year. Can you explain this procedure on the part of the 

Commerce Department?
18

Answer. The De partm ent has in the p ast proposed the abolition of the Title V 

program. However, I think it is correct to describe our current position as an 

inte rest in modifying the program to better serve the regional problems and needs 

th at have been identified. As I pointed out earlier, Secretary Richardson has 

established a Departmental Task Force to examine the Title V program with the 

objective of identifying its strengths, as well as its weaknesses. The evolution of 

the program during th e past decade and the strong sup port of the Governors have 

been more t han ade qua te evidence of its basic merit and meaning in the difficult 

area of inter-governm ental relations. I recognize this virtue and am concerned 

th at it be protected and preserved. At the same time, I also recognize th at it is 

alleged th at there are cases in which the Commissions may duplicate activities 

th at can more effectively be accomplished by other agencies and that their pro ­

grams and projects have local, r ath er tha n regional, impact. I believe it to eve ryone’s interest t hat the program be reviewed with the ob jective of eliminating any 

evident duplications and inefficiencies in order to give grea ter strength to areas of 

greater promise and p otentia l.

With regard to the matter of minimum budgets, as you know, budg eting is 

always a ma tter of balancing a number of different needs against the financial 

resources available. The Regional Commission bud get requests in the past have 

generally been held to a stable level under the notion th at increasing demands 

should be met by improved use of the funds; by being more careful and selective 

in the programs and projects th at were ac tually funded. It is true, however, th at 

if new Commissions are designated, additional funding demands are likely since the 

aggregate needs will be increasing. In the initial years of a Commission, its pro ­

grams are not sufficiently advanced to warrant funding levels akin to the older 

Commissions. Therefore, only modest increases are immediately implied by new 

designations and, in any event, the authorizing statut e limits annual appro priations for all new Commissions to an aggregate of $5,000,000 or less for the first 

two full years of th eir existence.

Question 11. Prior to your designation as Acting Assistant Secretary you were 

also named Acting Special Assistan t for Regional Economic C oordination and you 

have continued to be the Acting Special Assistant. How much of y our available 

worktime have you devoted to Title V Regional Commission activities? Explain 

how you have been able to fulfill y our regional commission responsibilities, since 

previous to your app oin tment all Special Assistants were full-time employees in 

th at job.

Answer. During the four months th at I have had responsibility for both the 

Regional Commissions an d EDA, I have found it possible through careful sched uling and somewhat extended working hours to devote the amount of time necessary 

to each program. Since the two programs have much in common, I have not 

experienced the totally conflicting demands on my tim e t ha t might occur if I were 

administering two unrela ted programs. In fact, I believe tha t each of the programs 

has benefitted from the insights I have gained in working with the other. Thus, I 

view my dual respo nsibility as an asset, not a liability, to both programs.

[Whereupon, a t 10:25 a.m., Monday, August 2, 1976, the committee 

was recessed, to reconvene subject to the call of the Chair.]

o