THE WHITE HOUSE Office of the Press Secretary ________________________________________________________________________ For Immediate Release January 27, 1995 GORE ANNOUNCES INITIAL RESTRUCTURING OF FOREIGN AFFAIRS AGENCIES Review Calls for International Affairs Community to Change for Demands of 21st Century As part of the second phase of the National Performance Review, which asks agencies to conduct a fundamental rethinking of what they do and how they do it, Vice President Al Gore today (1/27) instructed four foreign affairs agencies to establish common administrative services, eliminate unnecessary and duplicative practices, and use the private sector and competition to cut costs. It is anticipated the overall review of international affairs programs and agencies will result in savings of at least $5 billion over five yeras and a substantially enhanced capacity to deliver more effective programs overseas and provide value to the American taxpayer. The review concluded that the Arms Control and Disarmament Agency, the Agency for International Development, and the United States Information Agency are essential vehicles for the accomplishment of their missions under the overall foreign policy guidance of the Secretary of State. "Today's decision is a major restructuring and integration of the government's foreign affairs agencies," Vice President Gore said. "It is an initial step in meeting President Clinton's challenge to 'eliminate the remnants of yesterday's government,' and preparing these agencies to meet the demands of the 21st Century.'" Specifically, today's review concluded: - the United States Information Agency will end government funding for radio broadcasting in western Europe and cut staff and reduce costs in its overseas operations. It will close five USIA posts abroad in the next 12 months and consolidate and downsize selected American centers in East Asia. The agency is also reducing costs in book programs, eliminating selected publications and developing new ways to finance overseas student advising and counseling services. USIA will eliminate duplication in its information centers and libraries and in its research activities, and further reduce headquarters layering in its management bureau. - The Agency for International Development will close an additional six missions beyond the 21 closings already announced as part of the first phase of the National Performance Review. It will reduce its project planning cycle from 27 to 6 months; eliminate some of its more than 60 areas of management activity; expand the use of paperless internal systems, cut internal regulations by 50 percent, and complete reengineering of its management systems by October 1, 1995. - The Arms Control and Disarmament Agency and the Department of State will eliminate duplication between their two agencies in the areas of arms control and nonproliferation and take steps to tie together the operations of ACDA and the State Department more effectively. ACDA will also cut back on overseas costs and streamline its operations in Washington. - State and USIA will initiate personnel exchanges so as to encourage more effective liaison and closer policy coordination of public affairs efforts. They will also take steps to consolidate their Inspectors General. - The State Department has initiated a Strategic Management Initiative to accelerate its reinvention efforts. It will close 15 additional overseas posts by the end of Fiscal Year (FY) 1996, for a total of 32 post closings. In Washington, the Department will eliminate at least one bureau and eliminate public affairs, congressional relations, politico-military affairs and policy planning components of bureaus where duplication exists. "The President needs to continue to develop, negotiate and verify effective arms control treaties; to communicate American values such as democracy and free markets overseas; and to respond to humanitarian emergencies and encourage sustainable development in other countries when it is in the interest of the United States," the Vice President said. "The restructuring of these agencies will help to make sure those needs are met in the most efficient, effective way possible." In addition to the changes already listed, the Vice President announced today that he had: - Asked the President's Management Council to review the structure of all government agencies operating overseas to increase the effectiveness of the United States overseas and reduce costs wherever possible. He asked the Council to report to him by April 15, 1995 on specific steps that can be taken to streamline overseas operations, reduce the costs of administrative services, and make better use of information systems and communications technology. - Initiated a broader review of foreign affairs agencies by the National Performance Review to take place over the coming months. "We are asking basic questions about what will be required for effective implementation of US foreign policy for the 21st century." The review will seek ways to strengthen the role of the Secretary of State in coordinating foreign policy and intensify reinvention and streamlining efforts in the foreign affairs agencies. The review will streamline on a fast track programs for arms control, disaster relief and refugees, and public affairs; and by spring, personnel and programs to promote democracy, sustainable development, and trade. "The foreign affairs community needs to change to meet the demands of the 21st Century and give taxpayers value for their money. The community has begun the process of change," the Vice President said. He thanked the Secretary of State Warren Christopher and the heads of the Agency for International Development, the Arms Control and Disarmament Agency and the United States Information Agency for their reinvention initiatives and the impetus that they have given to the second phase of the National Performance Review. Calling for change, Secretary Christopher said "The current structure of the foreign affairs agencies developed in a world much different from today's. It must change to meet the demands of the next century. In an era of growing challenges, but static or declining resources, all of the foreign affairs agencies must streamline operations and match our talents and budget to the highest U.S. priorities." ##