The Honorable John H. Gibbons, Director

Office of Science and Technology Policy

before the

Subcommittee on Veterans' Administration,

HUD, and Independent Agencies

Committee on Appropriations

United States Senate

March 17, 1994

Ma dam Chair, Members of the Committee, I am pleased to appear before you todayto discuss OSTP's budget request for Fiscal Year 1995. I will also provide abrief overview of the Clinton Administration's science and technology strategy,in which OSTP played a key development role and continues to play a leadershiprole.

The Clinton Administration treats science and technology as high-leverageinvestments in America's present and future. Investments in S&T contributeto: a growing economy with more high-skill, high-wage jobs for Americanworkers; a cleaner environment where energy efficiency, information technology,and advanced science and engineering help increase profits and reducepollution; greater access to high quality health care; nati onal security; astronger, more competitive private sector able to maintain U.S. leadership incritical world markets; an educational system where every student ischallenged; and an inspired scientific and technological research communityfocused on ensu ring not only our national security but quality of life forourselves and our children. The most important measure of success will be ourability to make a difference in the lives of the American people, to harnessscience and technology to improve the q uality of life and the economic vitalityof our nation.

The Office of Science and Technology Policy (OSTP) supports these objectivesby: providing authoritative scientific and technological information,analysis, advice, and recommendations for t he President, for the ExecutiveBranch, and for Congress; participating in the formulation, coordination, andimplementation of national and international policies and programs that involvescience and technology; maintaining and promoting the health and vitality ofthe U.S. science and technology infrastructure; and coordinating research anddevelopment efforts of the Federal government to maximize the return on thepublic's investment in science and technology and to ensure that resources areused effic iently and appropriately.


President Clinton and Vice President Gore recognize science and technology asfoundations of our Nation's future. To help ensure the health and welfare o fU.S. citizens, the Administration has adopted a 6-point strategy for scienceand technology.

First, we are maintaining R&D funding as a priorityinvestment. We are fighting hard to protect the federal investment inR&D by a dvocating the importance of investing in our future even as wecontinue our very serious commitment to cut the deficit.

We believe, though, that our R&D investment portfolio must adapt tochanging times. Defense build up and focus on Cold War scenarios must yield toa new force structure and defense technology base reflecting changed worldconditions. Our emphasis must now shift to civilian programs that can alsooperate as critical elements of a defense technology base. Historical federal agency missions and assets must yield to evolving national goals.

In the President's budget request for Fiscal Year 1995, the commitment toR&D is evident. Total R&D spending will increase by 3%. Keep in mindthat these increases appe ar in a budget that, overall, represents not a zerosum game but a negative sum game -- in which discretionary spendingdeclines. These numbers reflect true commitment within the Administration-- a willingness to experience pain elsewhere in order t o support research anddevelopment.

The civilian share of R&D, with dual use spending included, comes in at47%. We will continue to make progress toward our goal of at least equalizingcivilian and defense demands on the R&D investment b y 1998.

Next, we are focusing on key national goals. For example, wepropose to increase spending on health research by 4%, on environmentaltechnologies by 11%, and on energy efficiency R&D by 42%. The Departmentof Commerce, which through the National Institute for Standards and Technology(NIST) runs many of our programs of technology partnerships with industry, isslated for a 31% increase in its budget.

This Administration is placing an extremely high priority on t echnologybecause of its linkage to economic growth, good job opportunities, quality oflife, and the environment in which we live. One of the innovations in our newtechnology policy is that it explicitly recognizes the crucial role the federalgovernme nt can play in working with the private sector to develop andtransition innovative ideas and technologies to the commercial marketplace andfor government use.

Point 3, we are ensuring this Nation's leadership in fundamentalresearch. The force pushing industrial commercialization and theleading edge of research closer together -- the drive for internationalcompetitiveness -- reinforces the conviction, within government and industry,that we must maintain a strong base in fundame ntal science and engineeringresearch and sustain its role in producing a world class science and technologyworkforce. But this does not mean that fundamental research escapes therequirement of reform. We've run up against limits on resources even as m anyfundamental research projects grow bigger and more expensive.

Fourth, we are improving strategic coordination of S&Tprograms. You see in the FY '95 budget that we have set new fundingpriorities. But long-term success in a ffecting funding priorities requires apresidential mandate and close cooperation between the Administration and theCongress, as well as between the public and private sectors. President Clintonhas established two new institutions of governance, the Na tional Science andTechnology Council -- NSTC -- and a broadened President's Committee of Advisorson Science and Technology -- PCAST -- to improve our ability to access thepower of science and technology.

The President chairs the NSTC, which inc ludes the Vice President, CabinetSecretaries, agency heads, and key White House officials, and which isresponsible for coordinating overall science and technology strategies andpolicies. One of the most critical tasks the NSTC is undertaking isprepar ation of an integrated overview of federal investment in research anddevelopment. The Council will prepare coordinated, strategic priorities foraccomplishing national objectives in conjunction with agency missions. In thisway, the NSTC will act as a "virtual" science and technology agency, utilizingto the fullest the diverse assets and expertise that exists throughout thegovernment and its contractors.

We have established R&D Coordinating Committees designed to enable us toproduce, for the first time in the Federal Government's history, an R&Dbudget request that fully integrates the missions of the agencies and theoverarching science and technology requirements of the Nation. NSTC Committeesworking on the FY '96 budget request i nclude:

Health, Safety, and Food R&D

Fundamental Science Research

Information and Communication R&D

Environment and Natural Resources Research

National Security R&D

Civilian Industrial Technology R&D

Educati on and Training R&D

Transportation R&D

International Science, Engineering, and Technology R&D

Each committee operates with a Department Chair (or co-chairs), a White HouseCo-Chair, and a Department Vice-Chair. In the course of developing budgetrequests, the Committees will assist the NSTC in establishing priorities forresearch and development, in generating criteria for evaluating progress towardnational goals for science and technology, and in refining those goals asscien ce and technology evolve. NSTC's role in crafting R&D budgets thatcapitalize on agency strengths and eliminate waste and duplication in thesestringent budget years is critical to the success of this Administration and tocontinued government suppor t for research.

Despite the intense focus on the budget, the need for an NSTC has also beenevinced in several general policy areas. For instance:

Fundamental Science. The Committee on Fundamental Science Researchcosponsored, on J anuary 31 and February 1, a forum on Science in theNational Interest to help articulate the: 1) benefits of our nationalinvestment in fundamental science; 2) principles and practices influencing theconduct of basic research; 3) challenges and op portunities facing U.S. effortsin fundamental science; and 4) goals for a 21st century science policy. Worldleadership in science, mathematics, and engineering is an explicit goal of thisAdministration, and this NSTC effort is an essential step toward realizing thatgoal. Your contribution to this event made a tremendous impact on theparticipants, Madam Chair, and I hope we can continue to work together on thisessential task.

Biotechnology. Biotechnology can play a critical role in our nation'sfuture technological strength and economic growth, in preservation andrestoration of the environment and biodiversity, and the health and quality oflife of all people. The revolution in life science research that has vastlyincreased our u nderstanding of the living world offers expanding opportunitiesto use this knowledge for the welfare of the Earth and humankind. TheBiotechnology Research Subcommittee (of the Fundamental Science ResearchCommittee) of the NSTC will provide government- wide coordination and focus forbiotechnology research in the various Federal departments and agencies. Weexpect to emphasize the following areas: environmental biotechnology;bioprocessing and bioconversion; agricultural biotechnology; marinebiotechn ology; and the social and economic dimensions of biotechnology.

U.S. Global Change Research Program. Under NSTC's direction, thisprogram's mandate has been broadened to make it more policy relevant. Severalkey areas are now being augmen ted: socio-economic impacts; ecologicalresearch; and integrated assessment. OSTP will work in the months ahead withother members of the NSTC on the long-term strategy for budget, technology,R&D, regulatory, and economic policies that could impact greenhouse gasemission levels beyond the year 2000.

Environmental Technologies. Numerous departments and agenciescontribute to research, development, and commercialization of environmentaltechnologies, an area of great, potential econo mic growth for the UnitedStates. Through the NSTC, the Administration is working to develop acomprehensive strategy to ensure these programs are effectively coordinated anddirected toward national needs.

Education and Training. Advance d learning technologies represent animportant growth opportunity for many emerging businesses. Under the NSTC, wehave initiated a program designed to apply the results of Defense Departmentresearch in advanced training technologies to the requirements of education andtraining identified in other agencies.

Bioethics. Views throughout the Nation -- in the private sector,legislative branch, and executive branch -- have converged on the need forhigh-level attention to bioethical issues. As a result, NSTC is considering,in consultation with the Congress, creation of a Bioethics Policy Committee andan advisory committee to inform the workings of the interagency group.Programs and policies of multiple Federal agencies have direct bioet hicalimplications, and NSTC could serve as a forum for interagency policydevelopment for critical research issues.

A fifth point in the strategy -- and an adjunct to point 4 -- we areexpanding our partnerships with the private sector< /b>. As I mentioned,NIST has a central mission responsibility to work with industry in promotingeconomic growth and in creating jobs. Other agencies share thisresponsibility. For instance, the Technology Reinvestment Project, acenterpiece of the Pr esident's defense conversion program, is chaired by ARPA,within the Defense Department, but operated jointly by six agencies. LikeNIST, it has been remarkably successful in creating partnerships with industry,universities, and State and local agencies for the development of newtechnologies and deployment existing best-practice technologies. Thesepartnerships are chosen purely by merit, co-funded by industry participants andgovernment, and are carried out with strict milestones, performance evaluat ion,and time limits.

The great increase in cost-shared Cooperative Research and DevelopmentAgreements (CRADAs) between industry and our government laboratories is alsotestament to our commitment to U.S. competitiveness and economic growth. Mor ethan 2000 CRADAs have already been signed, and we expect hundreds more to beconcluded this year. Again, these are conditioned on merit and joint fundingwith industry.

As I mentioned before, the President has also established a new PCAST toen sure private sector advice to the NSTC. Involvement of distinguishedindividuals from industry, education, and research institutions with the NSTCwill be essential to developing successful science and technology policies thathelp American businesses ac hieve sustainable growth and create high qualityjobs, as well as to maintaining our academic and research institutions' worldleadership in science, engineering, and mathematics. One goal for PCAST is tohelp create public/private partnerships and make them work successfully.

With these new institutions, I believe the Administration can improve theoverall effectiveness of federal science and technology for national and globalobjectives. The NSTC provides a structure in which to prioritize the manylegitimate demands on the public's R&D dollar. It can sensitize agenciesto the advantages of symbiosis over isolated pursuit of narrow objectives.Within this framework, we can illuminate the myriad roles for science andtechnology and weave their tremendous power throughout the complex tapestry ofnational and international affairs.

Even without our new institutions fully in place, we are beginning in theUnited States to overcome the inertia of the situation we inherited just over a year ago. For example, the Administration has:

forged the clean car initiative, a historic alliance with the nation's bigthree automakers to develop a new generation of cars and trucks that meet theperformance expectations of consumers and are affordable and virtuallypollution free. Government and industry research organizations have jointlyaccepted a set of ambitious technical objectives that are critical for ensuringcontinued competitiveness of a critical national industry.

launched the Technology Reinvestment Project (TRP) to stimulate a public andprivate sector transition from defense-specific technologies to dual usetechnologies that have both military and civilian applications.

expanded threefold the funding for the Advance d Technology Project to promoteindustry's development of high-risk, high payoff commercial technologies. ATPexplicitly abandons the outdated emphasis on spinoffs and focuses directly onthe objective of economic growth.

initiated a network of manufa cturing extension centers across the nation towork with State governments to assist small and medium-sized manufacturers,many of whom are still using 1950's technologies. These centers disseminate tomanufacturers information on new technologies and bes t practices.

developed an action plan for the National Information Infrastructure. Thisinfrastructure -- computers, computer data banks, fax machines, telephones,video displays -- has as its lifeline a high-speed fiber-optic network capableof tra nsmitting billions of bits of information in a second. The technology isimproving at an unprecedented rate, expanding both our imaginations for its useand its effectiveness.

reinvigorated the technology programs within the National Aeronautics and Space Administration, putting more emphasis on industry technology programs,targeted technology investments, and aeronautics R&D.

While Federal technology programs are important, they cannot succeed withoutchange in other government policies . Many existing fiscal, trade, andregulatory policies stymie rather than encourage investment in new technologiesand new products. The Administration intends to change that. Already, withthe help of the Congress:

We've obtained a 3-year exte nsion of the Research and Experimentation(R&E) tax credit, and we're still working to make it permanent. We've alsosecured a reduced capital gains tax for investments in small businesses.

We've liberalized export controls on computers, telecomm unications, and othertechnologically sophisticated equipment that will free up 35 billion dollars inhigh-tech exports.

We have aggressively pursued bilateral and multilateral trade agreements suchas NAFTA, U.S.-Japan, and the Uruguay Round of GATT that will expand access toforeign markets for America's high-tech companies. New inroads with the Pacificeconomies also hold great promise.

Finally, I will move to the sixth point in our S&T strategy: we arecreating opportunities for international cooperation. The squeeze onresources, combined with the inherent nature of some science and technologyprojects that drives up their cost and complexity, also impels us towardgreater internationalization of science and technology projects -- particularly"Big Science," but all of science to some extent. It grows harder and harderfor any single nation to justify projects such as mapping the human genome,developing fusion power, exploring space, or rooting out the mysteries ofp article physics and the Big Bang. At the same time, financial and politicalbarriers limit any one nation's ability to deal with global-scale problems forwhich science and technology offer important understanding, such as globalclimate change or human population growth.

In the space arena, our efforts to expand international cooperation to includeRussia as a partner offers an opportunity to increase the capability of thespace station and to advance the schedule for on-orbit operations. Worki ngwith Japan, Canada, Europe, and Russia, we will be able to accomplish whatwould be difficult if not impossible for one country to do alone.

Overall, we require better mechanisms for multinational planning andcooperative decision-making and ac tion. Building on the ongoing work of theMegascience Forum at the Organization for Economic Cooperation and Development,we intend to explore efforts in joint planning and implementation forone-of-a-kind research facilities, creation of more formal in ternationalnetworks and consortia in selected fields -- capable of negotiating agreeddivisions of labor -- and development of more multinational researchinstitutions.

Internationalizing scientific endeavors simultaneously benefits andcomplicat es things. The personal relationships built by scientists andengineers contribute greatly to international understanding. Cooperativeefforts often yield larger results than the sum of individual efforts.Internationalizing science holds great promise for decreasing the huge economicdisparities that exist among Nations. Yet issues of who pays, whoparticipates, and location, among others, can be so difficult to resolve thatthe ill will threatens accords outside the S&T arena. There is an inhere nttension between scientific cooperation and economic competition as sciencegrows ever closer to economic performance. Improving our ability to managesuch complexities, including the ability to make decade-length commitments ofresources, will be an i mportant focus of the National Science and TechnologyCouncil.

OSTP FY '93 Accomplishments

During FY 1993, OSTP reorganized to incorporate President Clinton's mandateto: 1) redirect the Federal effort in science and technology t oward nationalgoals; and 2) streamline White House operations. A Senate-confirmed AssociateDirector heads each of OSTP's four divisions. The Technology Divisionalso includes an Assistant Director for Technology and provides theadministrative base for an Assistant Director for Aeronautics and Space whodraws upon the resources of each Division to help fulfill his responsibilities.The Science Division includes an Assistant Director for Health and LifeSciences, an Assistant Director for Physical Sciences and Engineering, and anAssistant Director for Social and Behavioral Sciences. The EnvironmentDivision has an Assistant Director for Environment, and the NationalSecurity and International Affairs Division has an Assist ant Director forInternational Affairs and an Assistant Director for National Security. Eachdivision has a small, multidisciplinary staff, and cross-cutting issues aremanaged in matrix fashion.

OSTP's Director testified before Congress over twi ce a month in 1993. TheDirector and staff also played key roles in screening, recruiting, andinterviewing candidates for subcabinet posts in Departments and Agencies withresponsibilities for science and technology programs.

During its first m onths in action, the "new" OSTP led White House efforts onseveral issues of critical national and international concern, including:

Implementing the Technology Initiatives

OSTP, working closely with the National Economic Council, pr oduced, for thePresident and the Vice President, one of the seminal documents of the ClintonAdministration: Technology for America's Economic Growth: A New Directionto Build Economic Strength. This document heralds a new era of cooperationbe tween the public and private sectors in achieving national goals and clearlyevinces our intention to use the Federal investment in science and technologyto further those goals. We have established interagency efforts to addressissues of major concern, such as: defense reinvestment and conversion;patient capital and technology financing; Federal support for manufacturingresearch; technology for education and training; government infrastructure;space and aeronautics; partnerships between the Nationa l Laboratories andindustry; and basic sciences.

One early success story in the technology plan is the InformationInfrastructure Task Force (IITF), which is charged with forging theAdministration's policy on telecommunications and information. The task forcedeveloped an integrated federal policy framework to support a plan for anational information infrastructure. This plan will promote private researchand investment in a system capable of vastly improving the way information iscommunicate d, stored, and processed in the United States. In 1993, the planled to improvements in: 1) management of the radio frequency spectrum; 2) theframework for protecting intellectual property; 3) access to governmentinformation; and 4) coordination of Fed eral, State, and local regulatoryactivities.

OSTP, working closely with the Department of Commerce and other agencies, hasspearheaded an effort to establish a new cooperative relationship with theautomobile industry. Specifically, a major init iative was undertaken early inthe Administration's tenure to develop an understanding with car manufacturersand related businesses that would enable joint pursuit of long-term researchand development programs leading to a "clean car" -- one that would provide theamenities we enjoy, such as comfort, safety, and performance, and producelittle or no pollution. In September 1993, the President signed an agreementwith the CEO's of the Big 3 automakers to jointly pursue a research agenda fora car 3-time s as fuel efficient as today's that can help eliminate pollutionand ease dependence on foreign oil imports while capturing markets forenvironmentally sound technologies here and abroad.

Defense Conversion

OSTP helped launch the Tec hnology Reinvestment Project (TRP) to stimulate thepublic and private sector transition from defense to dual use technologies thathave both military and civilian applications. The TRP is an integrated effortby 6 government agencies. The Federal Gove rnment received TRP proposals fromteams representing more than 12,000 companies, universities and localgovernments. Significantly, proposals totaling over $8.5 billion in matchingprivate funds were received in competition for a relatively modest feder alinvestment of $470 million.

Coordinating Administration Space and Aeronautics Policy

OSTP plays a lead role in coordinating aeronautics and space policy within theAdministration. In the aeronautics area, we are working with the NEC todevelop a clear set of national goals and priorities to guide theAdministration's investments in research, development, and manufacturingtechnologies. Throughout this process, we have worked closely with industry tofull understand the needs and challenges the U.S. aerospace industry facesthrough this decade and beyond.

During 1993, OSTP assumed the functions and responsibilities of the NationalSpace Council, and the agency continues to be the focal point for policyguidance and coordi nation in the White House on major programs and issuesimportant to NASA. Chief among these are a continued emphasis on successfulimplementation of the space station program, a strong commitment to advancingthe Mission to Planet Earth program, sustaine d support for a balanced scienceprogram, development of a national space launch investment strategy, andsupport for needed management and organizational reforms within NASA.

Integrating Science and Technology with Environmental Policy

< p> OSTP has made significant scientific and technical inputs to a number of keyenvironmental actions. These include the President's Earth Day speech on thestabilization of greenhouse gas emissions; the development of the U.S. NationalAction Plan for greenhouse gas emissions; and the Northwest forest action plan.In addition, OSTP is playing a leadership role in the development of the 1994World Meteorological Organization/United Nations Environment Program (WMO/UNEP)international ozone assessment, t he 1994 WMO/UNEP Intergovernmental Panel onClimate Change (IPCC) assessments, and the 1994 UNEP Global Biodiversityassessment.

OSTP has also established a senior-level interagency committee to provide anintegrated science-technology-economics-p olicy interface. The committee isco-chaired by OSTP, the Office of Environmental Policy, and the Council ofEconomic Advisors and will function as a bridge between science and policy bydeveloping integrated assessments of key environmental issues.

< p> OSTP is committed to providing the leadership needed to revitalize the spaceprograms essential to global climate change research. OSTP established aninterface to NASA's Earth Observing System Data Information System (EOSDIS) andalso provided suppo rt toward organization of a National Academy of Sciencepanel on EOSDIS and assisted in writing the charge to Academy members andsuggested that a Blue Ribbon panel be appointed to emphasize the importance ofthis issue.

The devastating floods al ong the Mississippi River and its tributariesgenerated a major effort by OSTP to insert environmental science and technologyinto post-flood plans to reclaim the flooded lands and reestablish the floodcontrol systems. OSTP worked closely with OMB, the Office of EnvironmentalPolicy, and many Executive Branch agencies to ensure the Federal Government'srapid, compassionate responses did not unnecessarily foreclose any long-termoptions for wise management of the damaged areas. An interagency Scientific Assessment and Strategy Team was established to examine the scientific issuesassociated with short- and long-term flood recovery and to develop criteria forpolicy and funding priorities.

OSTP worked with other federal agencies to establish the Electric and MagneticFields Interagency Committee which was mandated by the Comprehensive NationalEnergy Policy Act of 1992. After review of the legislation OSTP worked withthe appropriate agencies to assign representatives and outline the committee program and products. Co-chairs from the Department of Energy and the NationalInstitute of Environmental Health and Safety were subsequently selected tocarry out the mandated program as charged.

Enhancing National Security

OSTP ha s contributed significantly to an examination of policies toward theFormer Soviet Union where science and technology play a critical role. It hasassessed the technical aspects of dismantlement of nuclear forces and testingof nuclear warheads, reviewed evolving technology transfer policies, assessednonproliferation goals and strategies, and evaluated the Russian technicalbrain drain.

OSTP has taken a leading role in addressing the critical problem of theworldwide accumulation of excess pluto nium. Our initial focus has been onreducing the danger that some of the plutonium being released by thedismantlement of surplus FSU warheads--and also still being separated atRussia's three reprocessing plants--might be diverted to the black market. Wehave worked with the interagency Nunn-Lugar program to launch a new, moreeffective program to help strengthen Russia's controls over its stocks ofweapons-useable fissile materials. We have also worked with the VicePresident's office and the Departm ent of Energy to launch the program announcedyesterday by the Secretary of Energy to shut down the remaining three operatingRussian military plutonium-production reactors by helping to providealternative sources of heat and electricity to the neighbori ng populations.

My office also helped develop the basis for the agreements reached at theClinton-Yeltsin January summit, at which the two Presidents agreed to establishworking groups on placing Russian and U.S. civilian and surplus weaponsfissi le-materials under IAEA Safeguards, make Russian and U.S.warhead-reduction activities more transparent and irreversible, prevent theaccumulation of excess stocks of civilian plutonium, and study the long-termdisposition of plutonium. We are now workin g through the interagency processto develop a follow-through strategy for these agreements.

Promoting International Cooperation in Science and Technology

OSTP leads the White House effort to coordinate Federal support -- from theD epartment of State and a cluster of 20 technical agencies -- for internationalcooperation in science and technology. As part of this effort, OSTP hasdeveloped bilateral science and technology agreements. OSTP has activelyparticipated in recent negoti ations with Canada, Australia, the EuropeanCommunity and many of its members states, including Germany, France, and Italy.It successfully led the U.S. effort to conclude negotiations with Japan torenew for five years the key U.S.-Japan Science and Tech nology Agreement.Under OSTP leadership, model annexes on intellectual property rights weredeveloped for S&T agreements, since adequate protection of such rightsremain the most visible obstacles to concluding S&T agreements with ourmajor partne rs.

OSTP led successful negotiations for a new Science and Technology Agreementwith Russia to promote bilateral S&T cooperation and support Russian reformprocess. Vice President Gore and Russian Prime Minister Chernomyrdin signedthe new US -Russia S&T Agreement during their December meeting in Moscow,providing a new framework for S&T cooperation in the two countries. Theagreement defines overall responsibility and procedures under which cooperativeS&T activities will be supp orted, and provides for the full protection ofany intellectual property that results from cooperative programs. The finalagreement on the treatment of intellectual property represents an importantadvance in the bilateral relationship between the Unit ed States and Russia, andpaves the way for cooperative activities not only in the areas of science andtechnology, but in virtually all fields of cooperation.

During the December meeting with Prime Minister Chernomyrdin, the VicePresident propos ed a joint study on strategies for shutting down the tworemaining Russian military plutonium-production reactors still operating atTomsk. These two reactors and a third near Krasnoyarsk are still operating --nominally because they provide heat and ele ctric power to the nearbypopulations. OSTP is coordinating White House response and providing technicalanalysis for the study.

OSTP led U.S. efforts to promote international collaboration in large scienceprograms through the OECD Megascience Fo rum. The OECD Megascience Forum in1993 addressed issues in international collaboration, including means ofimproving coordination among nations, in the areas of astronomy, oceanic andcontinental deep drilling, global change research and oceanography. The U.S.hosted the experts meeting on global change research, and was a leader indiscussions on deep drilling and oceanography. OSTP led the U.S. delegation toeach of the Forum meetings.

Also within the OECD, OSTP led U.S. efforts in drafting a report by the Groupof National Experts on Biotechnology Safety (GNE) on biofertilizers, plants,and food safety. GNE activities are the primary forum for internationalharmonization of biotechnology regulations. In the area of trade, OSTP hasprovide d significant input to policy discussions concerning R&D subsidiesand GATT negotiations.

OSTP implemented a review of U.S. Policy Toward Fusion Energy and theInternational Thermonuclear Experimental Reactor (ITER). The review includedexami nation of the status of fusion technology, the site selection process forITER, and the economic viability of fusion energy. This effort initiated theprocess of developing a recommendation for the President on the future of for internation al fusion energy research programs.

Sustaining World Leadership in the Sciences

OSTP co-sponsored a forum in January 1994 to consider the future of science inthe national interest. The purpose of the meeting was to address theAdmi nistration's goal of maintaining world leadership in basic science,mathematics, and engineering. The forum was co-sponsored by 15 otherorganizations including NIH, NSF, and other governmental agencies, the AAAS andother professional societies, the Nat ional Academy of Sciences, andfoundations. It is our intent to use the ideas that were discussed during theforum to guide the development of a national strategy for science and scienceeducation.

During 1993, OSTP worked with the scientific com munity and the governmentscience agencies on a number of issues of national importance, including theB-factory, support of the Tevatron, the Advanced Nuclear Source, and otherphysical sciences initiatives. OSTP has also coordinated an interagencyappr oach to merit-based support of research in universities located in stateswith small per capita federal funding of R&D. This has been predominantlythrough the Experimental Programs to Stimulate Competitive Research An OSTPreport on the issue has been influential in developing this response to thesense of regional inequity that contributes to the problem of earmarkingresearch funds.

OSTP Budget Request

OSTP's budget request of $5 million for FY 1995 will enable the agen cy tofulfill its responsibilities in a White House committed to using science andtechnology to enhance economic, environmental, and national security. TheDirector, the 4 Associate Directors, and a staff of 41 highly trained andexperienced professiona ls (including 6 detailees) will continue to carry outthe merged staff functions of OSTP, the National Space Council, and theNational Critical Materials Council. In addition, OSTP will support theactivities of the new National Science and Technology Co uncil and thePresident's Committee of Advisors on Science and Technology. Growth inpersonnel and travel costs primarily account for the requested budgetincrease.

Mr. Chairman, OSTP has an essential role to play in enabling the Americanpeople to use science and technology to create and sustain the kind of futurethey yearn to secure for themselves and for their children. Citizens of thisNation want a growing economy with more high-skill, high-wage jobs; a cleanerenvironment where energy eff iciency and innovative industrial processes enabledby technological ingenuity increase profits, conserve the natural resourcebase, and reduce pollution; a stronger, more competitive private sector ableto maintain leadership in critical world markets; an educational system whereevery student is challenged to reach his or her full potential; nationalsecurity reflecting a world that has been made safe for diversity; and aninspired scientific and technological research community focused on ensuringnot just our national security but on increasing our intellectual capital andimproving our quality of life. Science and technology are absolutely key toreaching those goals.

I ask for your support for OSTP's Fiscal Year 1995 budget request. I woul