B-148206 March 20, 1962

B-148206 March 20, 1962

Honorable H.R. Gross House of Representatives

Dear Mr. Gross:

This is in response to your letters of February 15 and 16, 1962, concerning possible violations of section 509 of Public Law 87-125, approved August 3, 1961, 75 Stat. 268, 283, which provides that:

"No part of any appropriation contained in this or any other Act, or of the funds available for expenditure by any individual, corporation, or agency included in this or any other Act, shall be used for publicity or propaganda purposes designed to support or defeat legislation pending before the Congress."

Your letter of February 15 suggests that radio and television announcements in support of the President's foreign trade legislation with reference being made to the "new 'E' banner" and listeners being invited to write to the Department of Commerce for more information constitutes a violation of section 509. Your letter of February 16, refers, as another violation of section 509, to newspaper accounts of a speech by Assistant Secretary of State W. Averall Harriman at the 55th Annual dinner meeting of the Traffic Club at Washington in which he urged those in attendance to back President Kennedy's foreign trade legislation.

Our investigation of the matter pursuant to your request disclosed that the radio and television spot announcements which were distributed to broadcasters by the Department of Commerce and its field offices during January 1962 were designed to publicize the President's "E-For-Export" award program and to invite persons interested in the program to request further information from the Department of Commerce. Inquirers are sent a package containing (1) a statement by the President, (2) Executive Order No. 10978 establishing awards for the program, (3) a press release by the Secretary of Commerce, (4) instructions for submitting nominations for the President's "E" award, together with nomination forms, and (5) two articles concerning the program which appear in the December 18 and 25, 1961 issues, respectively, of the "Foreign Commerce Weekly." Copies of this material and the announcements are enclosed.

The President's "E-For-Export" award program is a part of the over-all "export Expansion Program," to stimulate interest and activity on the part of manufacturers and others in the development of foreign markets by giving special recognition to those who make significant contributions toward the expansion of exports. Awards are made to companies who demonstrate a substantial increase in export sales on a sustained basis, successfully introduce a new product into the United States export trade, develop a market abroad for an existing product not previously exported, effect a breakthrough in a foreign market where competitive conditions are extremely difficult, or open a new trade area previously closed to American competition. Awards are also given to nonexporting individuals, firms, and organizations, such as banks and trade associations, for novel and successful solutions to foreign trade problems, and contributions to the expansion of exports through superior marketing, promotion, or other efforts. The radio and television announcements in question and the material being distributed to inquirers to not appear to contain any information relative to the President's foreign trade legislation, H.R. 9900 and S. 2840, now pending before the Congress.

We are advised that there is no text of Assistant Secretary Harriman's speech, referred to in your letter of February 16; however, a review of the Department of State press release covering the speech discloses that it was concerned with the President's proposed trade expansion legislation. The press release quotes the Assistant Secretary as having concluded his speech by saying, "I urge you here tonight to study the President's new Trade Expansion program. To understand it thoroughly and give it your active support." A copy of the press release is also enclosed.

It would not appear that section 509 could reasonably be construed as precluding high administrative officials from either explaining or urging support of the President's program in their speeches before civic organizations or from issuing statements to the press in which they state the administration's position concerning pending legislative matters. To so construe the section would bring it in direct conflict with the legitimate interest and responsibility of a Governmental agency in keeping the public informed as to its various programs. Section 509, in precluding the use of appropriated funds for publicity or propaganda purposes designed to support or defeat legislation pending before the Congress, would appear to be directed toward precluding activities and expenditures of an extraordinary nature not related to the normal operating functions of a Governmental agency. Admittedly, the line separating legitimate activity in this regard and activity which would require the conclusion that a proscribed lobbying campaign was, in fact involved is a finely drawn one. However, we do not believe that the normally expected statements, such as here involved of Government officials supporting legislation proposed by the administration constitute publicity or propaganda within the meaning of the section.

We trust that this letter constitutes a satisfactory reply to your inquiry.

Sincerely yours,

Joseph Campbell Comptroller General of the United States