Industry Evaluation Board Activities Executive Order 10421 delegates to the Secretary of Commerce the responsibility for the identification of those products and services and supporting facilities which are of exceptional importance to national security. The Industry Evaluation Board, an interagency committee whose chairman is a member of the BDSA mobilization staff, has been designated in this connection to advise and assist the Secretary. Detailed studies concerning those industries and facilities vital to the national security are made under the supervision of the Board chairman, and provide significant data concerning production capacities and availabilities for decision making. National Defense Executive Reserve Essential to a system of expanded industrial activity to meet emergency needs under war conditions is the requirement of a corps of trained executives who stand ready to perform the emergency responsibilities assigned to BDSA. Under a program authorized by the Congress, we have recruited over 1400 industry execu tives of the 2,000 we believe necessary to staff the production unit of the National Defense Executive Reserve. These Reservists are given training both in Washington and in the field through work conferences conducted by members of the BDSA staff to prepare Reservists to carry out their assigned emergency functions. Office of Emergency Readiness The Regional Emergency Planning Coordinators (REPCOS) of the Department of Commerce are the Secretary's representatives at the regional and field levels on all matters relating to the emergency preparedness plans, programs, and activities of the Department and its bureaus and offices; and provide liaison between the Office of Emergency Planning and the Department of Commerce offices concerning major or natural disaster assistance involving field activities. In the event of a national emergency, if communications with the Department's National Headquarters are cut off, the REPCOS, on behalf of the Secretary, are responsible for and will temporarily direct Commerce programs in their respective Regions until communications are restored. Bureau of the Census The Bureau of the Census provides basic statistical services for defense mobilization. Such services consist of collecting and compiling data, new surveys, special tabulations, and analyses of data. The Bureau collects and tabulates special data for the National Resource Evaluation Center in addition to statistical information provided in the course of its regular work. The technical staff of the Bureau acts in an advisory capacity assisting NREC in the full use of Census data and facilities. EFFECT OF THE HOUSE ACTION Mr. Chairman, at this time I would like to address my remarks to the tentative allowance made to Commerce by the Office of Emergency Planning as a result of the effect of the House action. Te Department of Commerce requested $1,958,000 for FY 1968 as follows: Office of Emergency Readiness__ Total $1,715, 000 88,000 155, 000 1,958, 000 As a result of the House action we have sustained a reduction of $125,000 below our present base level. Reductions in BDSA BDSA will be forced to reduce the Industry Evaluation Board studies totaling $15,000. Each of these IEB studies provide basic information for priorities and allocations and other activities under the Defense Materials System and furnish industrial information for emergency planning being done by the National Resources Evaluation Center for the National Security Council, the Air Forces Directorate for Plans, the Army Strategic Plans Group, and other sensitive agencies. Reductions in OER Our Regional Emergency Planning Coordinators (REPCOs), who are administratively assigned to the OER in the Office of the Secretary, function as the Department's representatives at the regional and field levels on all elements of our assigned mobilization and emergency preparedness responsibilities, and provide liaison between the OEP and the Agencies within Commerce concerning major and natural disaster assistance. A reduction in the availability of funds for this vital function forced us to close four of our eight REPCO offices during fiscal year 1967. Two Regions were assigned to each of the four coordinators as follows: Regions 1 and 2, Harvard, Massachusetts This has required the four REPCO's, as participants in resource management planning at the State level, to cover the increased number of assigned States. The Department cannot meet its commitments in the field without the services of our four remaining coordinators. Although we are severely handicapped without the services of the eight full time REPCOs, the four remaining in FY 67 performed vital functions in coordinating the Department's mobilization and emergency readiness activities in the field by providing the necessary guidance to and liaison with the States and the business community on production and related problems in connection with the current limited war effort. For example, the coordinators are called upon to check on individual companies' operations under the priorities system, to assist in the conduct of priority briefing sessions with industry, and the recruitment and training of Executive Reservists. The $155,000 requested for FY 1968 will provide for the service of our four remaining coordinators with full time secretarial assistance and limited necessary travel funds. Our important day to day defense readiness effort in the field would be abolished if we are forced to operate at the presently reduced figure. Mr. Chairman, this concludes my prepared statement. I would be happy to provide any further information the Committee may desire and I am prepared to answer any questions. DEPARTMENT OF AGRICULTURE Mr. OLSON. Mr. Chairman, I think it is absolutely incumbent that I correct some information that we discussed earlier. I certainly should not have been in error in allowing you to have misinformation about it. I can only say that perhaps it is my newness to my job that I could blame this to, but having served 4 years in the other body, gentlemen, I can only plead complete incompetence for allowing this to happen. SENATE AMENDMENT OF APPROPRIATION BILL Senator Holland, in the Agriculture budget that has been approved in the Senate, the funds were increased for the ASCS agencies in the amount of $230,000. The item is discussed on page 42 of the Senate report on the Agriculture appropriations. I am sorry, but, I am glad that I had the presence of mind to check and make up for not having read the report. Senator HOLLAND. You need not apologize. These things are so complex that none of us can quite be sure we have them all at our fingertips. Do I understand from your present statement that the inadequacy of the amount allowed by the other body was taken care of in the Agriculture appropriations bill that has now been passed by the Senate? Mr. OLSON. Yes, sir. HOUSE INCLUSION OF FUNDS IN PRESENT BILL Senator HOLLAND. We don't have to consider that particular agency, as I understand it, at this time? Mr. OLSON. Sir, it is rather complicated for me to follow since I have never served on the Appropriations Committee and I knew that this precluded me from a great experience. I am learning some of these intricacies now that I have to deal a bit with these matters. We are in a limbo, if you will pardon that expression, in my office, as to determining exactly how we might proceed. We are proceeding with all due caution to do that which we have been appointed specifically to do, and we of course, will await the determination by the distinguished body here and on the other side of the Hill, as to how this is resolved. The present status is that the House of Representatives has included the $230,000 request in the budget for the independent offices. It has been passed out of the House in that appropriation, and conversely, on this side, the Senate has passed the Agriculture appropriation bill with the $230,000. Senator ALLOTT. It looks like Agriculture hit the jackpot. Senator CASE. The chairman of that committee is one of the finest, most able chairmen it ever had. Senator HOLLAND. We knew we had an Irishman from New Jersey. Now this demonstrates it positively. Mr. Chairman, I don't think Mr. Olson should apologize because the chairman of the subcommittee who handled this matter did not remember the matter clearly. Here it is on page 42 of the Senate report of the Agriculture Subcommittee. May I read it into the record so that it will be clear. The committee recommends an appropriation and transfer from corporate funds totaling $202,894,000 for this item. This is a net increase of $230,000 over the amounts in the appropriation and by the transfer as recommended by the House Bill. The net increase of $230,000 over the House bill is recommended to pay the expenses for the direction of emergency programs. So that the whole matter, so far as the particular agency of aid, is in good shape now. Governor BRYANT. Mr. Olson's assumption that the full $230,000 is included in the $3 million recommended by the House is a little premature. The $3 million must be divided among all the agencies. Senator HOLLAND. So far as the Senate action on the Agriculture appropriation bill, it seems clearly to have included the $230,000. So I would suggest when they make allowances, I hope they shall for the amounts in the other agencies. We shall make it very clear we are not doing so for the Agriculture Department because the item has been fully cared for in the Senate action. PROBLEM RESOLUTION Senator ALLOTT. May I make the suggestion, Senator Holland, that we might discuss this with the chairman. Perhaps we could plan on some uniformity in this thing to take care of it either in one place or the other, which I think would be preferable. I might say for the sake of the record, I am informed by Mr. Cooper, the clerk, that as far as he is aware, this is the only agency in which the defense functions have been incorporated into the regular appropriation of that agency. Mr. RICE. In no case was this done in the House. None of the subcommittee appropriated Senator ALLOTT. You are informed on this. Do you corroborate Mr. Cooper's statement? Mr. RICE. Yes. I did not even realize the Agriculture Subcommittee had in the Senate. I am sure none of the others have. Senator HOLLAND. This showing, in the case of the Agriculture Subcommittee would indicate that it is unduly generous. At any rate, we have taken care of that situation, and Mr. Chairman, I think your suggestion is good. I shall certainly discuss it with Senator Magnuson as well as with the Senator from Colorado to make sure that it is included in the conference report on the Senate Agriculture appropriation bill, that that information is given, so it need not be included here, and, if it is not included, it is not supported; then it may be included here. Governor BRYANT. If it is not presumptuous, I will submit to you. a memorandum, Senator, that will be helpful. Senator HOLLAND. Glad to have it. Senator ALLOTT. Now, I think it is clear that you wanted some indication on the basis of expenditures for the last 2 years showing the amount of disasters and you said you would supply the amount spent on disasters for the record. COMMUNICATIONS WITH THE STATES In our State there has been a growing tendency in the last few years-the last 2 or 3 years-for direct communication between the executive branch and the Governors, and I think this would be helpful but also, I have it called to my own attention, not in my State but in other States, this has resulted in leaving the Members of Congress out in Limbo. I would hope that in being national ambassador to the Governors, that you would keep this in mind and that it can result sometimes in great embarrassment to individual Members of Congress and especially when it is the Congress who has to finally bear the brunt of the decisions that are made. Governor BRYANT. Mr. Chairman, I am keenly aware of this. We do try. We are trying to straighten out, particularly with the Governors, those administrative arrangements which fall outside of the normal sphere of activity of the Senate. NATIONAL DEFENSE EXECUTIVE RESERVE Senator ALLOTT. Now, about your national defense executive reserve, which you covered on page 4 also, does this have a widespread geographic area? Governor BRYANT. Yes, sir. All 50 States. Mr. RICE. It is deliberate. Senator ALLOTT. Well, I hope it is deliberate. Sometimes we get the idea in the West, that there is a concept that everything ends at the Appalachian Ridge, and I just wanted to inquire about that. Do you have a comment on that? Governor BRYANT. I have just held, for instance, a meeting in each of the regions and here is the attendance in the eight region: In New York, N. Y., 165 reservists. In Cleveland, Ohio, 181 reservists. I think that corroborates your suggestion that is be of nationwide scope. Senator ALLOTT. This is, of course, for the purpose of what the title says. It is to provide a political, economic reserve in the same way we provide military reserves? Governor BRYANT. Yes, sir. OIL RESERVES Senator ALLOTT. In the case of a national emergency. You spoke of the Suez crisis at some length, and have you ever, or have any members of your staff, taken an interest in the development of the oil shale reserves in the three States of Colorado, Wyoming, and Utah? Governor BRYANT. We do. Mr. TRUPPNER. We have several memorandums on the subject, and this is one of the long-term possibilities which is included in case of emergency. Senator ALLOTT. Well, as you may or may not be aware, I made a study of this ever since I came to the Senate, and there are signs that we are making great progress in this area and when we talk about the 800 billion barrels of oil reserves in one relatively small area, that is what it amounts to conservatively-it would be conservative in high grade reserves—we are talking about an amount which possibly is 10 times as much as we discovered and used in liquid petroleum in this country to date. I only want to say this to you as one who has been interested in this; sponsored legislation; worked on it for many years; that when you get into this area, there are a great many complicated, very complicated problems to be resolved. Some of them are economic; some of them are political and I want to offer to you the facilities of my office because I think we have a higher amount of data, a greater amount of data collected on this there, probably, than any other office, at least in the Senate. SUPPORT OF DEFENSE PROCUREMENT At page 9, Governor, in the middle of the page, you say: I should like to point out that a substantial portion of these funds will be used in direct support of procurement of ammunition and other military item required for the prosecution of the war in Vietnam. Governor BRYANT. Yes, sir. Senator ALLOTT. How could you procure ammunition? Governor BRYANT. No, sir. There is funded through these agencies, particular BDSA |