USIS Washington 

30 December 1998


(Clinton sent it to the Congress December 30) (1140)

(The following Fact Sheet on Foreign Affairs Reorganization was issued
by the White House on December 30, 1998)

(begin White House Fact Sheet)


Office of the Press Secretary

December 30, 1998


Foreign Affairs Reorganization

Today President Clinton sent to the Congress a plan and report on
reorganization of the foreign affairs agencies, pursuant to the
Foreign Affairs Reform and Restructuring Act of 1998. The Act provides
authority to reorganize the foreign affairs agencies and is based on
the plan announced by the President on April 18, 1997.

Reorganization of the foreign affairs agencies will sustain and
strengthen U.S. leadership for a new century that will pose new
threats and opportunities.

The reorganization plan puts arms control and nonproliferation, public
diplomacy, and sustainable development where they belong, at the heart
of our foreign policy in a reinvented Department of State. The plan
preserves the special missions of the foreign affairs agencies, takes
full advantage of their talented personnel, and lends greater
coherence and effectiveness to our international affairs activities.
Over time, integration will yield operating efficiencies as well as
improve the quality of our activities.

The Reorganization

The United States Arms Control and Disarmament Agency (ACDA) will be
integrated into the State Department on March 28, 1999. The missions
of arms control, nonproliferation, and political-military affairs will
be under the policy oversight of the Under Secretary of State for Arms
Control and International Security, who will also serve as Senior
Adviser to the President and the Secretary of State on Arms Control,
Nonproliferation, and Disarmament. In the capacity of Senior Adviser,
the Under Secretary will be able to communicate with the President
through the Secretary and will participate in meetings of the National
Security Council on arms control, nonproliferation and disarmament.
Five bureaus in ACDA and State will be reduced to three -- the Bureaus
of Arms Control, Nonproliferation, and Political Military Affairs --
for which the Under Secretary will exercise policy oversight. A
Special Adviser reporting directly to the Under Secretary will focus
on verification and compliance issues. The Department of State will
have a leadership role in the interagency process on nonproliferation
policy, and an enhanced role in the interagency process on arms
control policy. An advisory board will be established to make
recommendations to the Secretary through the Under Secretary on arms
control, nonproliferation, and disarmament.

The United States Information Agency (USIA) will be integrated into
State on October 1, 1999. The missions of public diplomacy -- to
understand, inform, and influence foreign audiences and broaden the
dialogue between American citizens and institutions and their
counterparts abroad -- will be under the policy direction of a new
Under Secretary for Public Diplomacy and Public Affairs. Two bureaus
in USIA will be streamlined into one at State -- the Bureau of
International Information and Exchange Programs. The Bureau will be
responsible for academic and professional exchanges and educational
and cultural affairs and will produce information programs and
services to advocate U.S. policy positions with foreign audiences.
Information activities will focus on foreign audiences in recognition
of the long-standing intent of the Congress to separate overseas
public diplomacy efforts from those which inform the press and the
American public. State's Bureau of Public Affairs will incorporate the
Foreign Press Centers now operated by USIA. USIA's area offices will
join respective regional bureaus at State, and public diplomacy staffs
will be added as appropriate to State functional bureaus. USIA's
Research office will integrate with State's Bureau of Intelligence and
Research, and public diplomacy activities abroad will be carried out
as an integrated part of the State component of our overseas missions.

The Broadcasting Board of Governors (BBG), now part of USIA, will
become a separate federal entity. Consistent with the Act, the BBG and
the Secretary of State shall respect the professional independence and
integrity of U.S. international broadcasting, which includes the Voice
of America and surrogate broadcasting. U.S. broadcasting will also
remain an essential instrument of American foreign policy. The
Secretary will provide information and guidance on foreign policy
issues to the BBG, and the Secretary will have a seat on the BBG
replacing the USIA Director. State, USIA, and the BBG have worked out
arrangements for transferring to the BBG funds, resources, and
personnel commensurate with the administrative and other support they
now receive from USIA and sufficient for the BBG to operate as an
independent entity.

The United States Agency for International Development (USAID) will
remain a separate agency. On April 1, 1999, however, the USAID
Administrator will report to and be under the direct authority and
foreign policy guidance of the Secretary of State. To maximize
consistency with overall U.S. international affairs priorities, the
Secretary will coordinate development and other economic assistance,
except export promotion and international financial assistance, which
will be coordinated by the Secretaries of Commerce and Treasury,
respectively. The Secretary of State will review USAID's strategic and
performance plans, budget submissions and appeals, and allocations and
significant reprogrammings, and delegate or redelegate to USAID the
functions and authorities it needs to carry out its mission.

The Department of State's reinvention efforts will be bolstered by
greater integration of the foreign affairs agencies. State has already
taken some important steps and integration offers new opportunities
for further reinvention. The Under Secretaries comprise a new
Corporate Board chaired by the Deputy Secretary to address major
cross-cutting issues and strategic planning. Assistant Secretaries
have more autonomy in resource management. State will further its
performance planning efforts to improve the link between strategic
goals and resources. State has created a new Bureau of Western
Hemisphere Affairs, moving Canadian affairs into the former Bureau of
Inter-American Affairs, to emphasize the importance of NAFTA and
economic and political integration in this hemisphere. State is also
creating a Bureau of East European and Eurasian Affairs to streamline
policy direction and implementation in the newly independent states of
the former Soviet Union. Within two years State will review all bureau

Bipartisanship and International Affairs Resources

Reorganization is a bipartisan initiative, and the Administration will
work cooperatively with the Congress on its implementation. Increased
efficiency is important to ensuring U.S. leadership for democracy,
opportunity and prosperity around the world. But it is also necessary
that we ensure there are sufficient resources for our foreign policy
to succeed. The international financial crisis, instability in the
Middle East, Kosovo, and Russia, continued acts of terrorism
(including the embassy bombings in East Africa), and risks that
nuclear, biological, and chemical weapons will proliferate show that
there remain many threats to U.S. interests. We need both effective
organization and sufficient resources to ensure a strong foreign
policy that serves the interests of the American people.

(end White House Fact Sheet)