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TABLES

1. OEP financial summary.

2. President's disaster relief fund..

3. National defense executive reserve enrollment-By unit..

4. Status of continuity of government legislation in State governments.

5. Summary of Government inventories of strategic and critical materials.

6. Disposal activities, 1963-67.

7. Allocation and use of funds authorized under the Defense Production Act.

8. Emergency assignments of Federal departments and agencies..

9. Summary of OEP disaster aid.

10. Status of the President's disaster relief fund.

11. Major disaster declarations and allocations of funds..

1. OEP organization chart.

2. Map, OEP regional offices.

ILLUSTRATIONS

3. National defense executive reserve 1963-67.

4. National defense executive reserve, category of employment.

5. Status of stockpile objectives..

6. Disposal sales and commitments..

7. Cumulative sales and commitments...

8. Reprint of Federal Register, January 24, 1967.

9. Reprint of letter, Governor Farris Bryant to Secretary Stewart L. Udall-June 13, 1967. 10. Major disaster declarations, fiscal year 1967..

11. Disaster declarations by State, fiscal years 1963-67

12. Major disaster declarations by type and region..

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PART I. INTRODUCTION

Substantial progress was made across the entire spectrum of civil emergency preparedness, with relatively greater emphasis being given during the past year to developing a capability to meet situations short of nuclear war. The need for a strong emergency planning program became increasingingly evident as the Nation continued to meet the challenge of Vietnam while further strengthening its ability to insure continuing economic growth and prosperty.

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Hon. Farris Bryant, Director of the Office of Emergency Planning, Addressing an NDER Regional Training Conference in Los Angeles on April 20, 1967.

HIGHLIGHTS

Stockpile Objectives for Nuclear War

In January 1967, OEP announced nuclear war stockpile objectives for all strategic and critical materials included in the national stockpile. The nuclear war objectives for the basic materials are less than or identical to existing conventional war stockpile objectives, with the exception of opium where the nuclear objective is higher. The stockpile objectives established for conventional war, therefore, are controlling, except in the case of opium.

Middle East Petroleum Crisis

When the Arab-Israeli conflict threatened in early July 1967 to interrupt the flow of petroleum from the Middle East, the Office of Emergency Planning took immediate steps to protect the national security interests of the United States. A plan of action, to allow selected petroleum companies to work together to insure that essential needs of the free world could be met at reasonable prices with minimum adverse effects on the Nation's balance-of-payments position, was developed under the authority of the Defense Production Act of 1950, as amended. National Defense Executive Reserve Regional Conferences

The first series of regional training conferences of the national defense executive reserve was held during the year. These conferences implement a new policy of organized training for reservists at the local, regional, and national levels, supplementing their home study in the program.

In the general war context, the new READY system, which provides an improved and flexible vehicle for damage assessment and resource evalution, became operational.

Computer Capability Expanded

A modern high-speed, large-scale computer was delivered in May 1967 to replace the system used by OEP since 1957. The new Univac 1108 system is a time-sharing machine with remote terminal capabilities which increases OEP's ability to extend computational support to other elements of the Executive Office which do not maintain computer facilities.

Hazard 65

During fiscal year 1967, a major new study, Hazard 65, was completed. Based on the spectrum of conceivable nuclear attacks, the study provides estimates of the hazards at many thousands of places in the United States and Canada. The study also summarizes the likely effects of nuclear attack on various classes of resources.

Analytical Capabilities Improved

Considerable progress has been made in improving the national economic Strength model (Strength) which was developed to support limited war planning. Strength is an input-output economic model designed to estimate the impacts of alternative combinations of Government programs upon various industries. Encouraging progress was also made on the SPIM research project. Under this project, OEP is attempting to develop an econometric model for applying, in combination, both input-output and regression techniques to the problem of predicting the impact on relative prices of major shifts in national objectives.

Economic impact studies

During fiscal year 1967, OEP initiated a series of studies designed to measure the impact on the economy of various levels of defense expenditures. Using the national economic strength model, the studies calculate the impact on specific industries of alternative levels of economic activity related to a stepup of the Vietnam conflict or a return to peace.

Stockpile disposal sales commitments

Sales commitments for fiscal year 1967 amounted to $466.9 million, far below the record $1 billion for fiscal year 1966. As of June 30, 1967, cumulative sales commitments of surplus materials negotiated by the General Services Administration totaled approximately $2.7 billion at sales value, of which $2 billion were from the national and supplemental stockpiles and approximately $680.7 million from the Defense Production Act inventory.

Asphalt investigation

As part of the surveillance of the oil import control program, a national security investigation of imports of asphalt and asphalt produced from imported oils was announced by the Director of OEP on April 17, 1967. This announcement followed a review within Government which led to the conclusion that national security would not be impaired by a liberalization of controls on the importation of finished asphalt.

Resource mobilization

The "Resource Mobilization Plan for Limited War" was completed with the exception of a section on transportation. The plan consists of a general section which states the overall policies and procedures to be considered in any limited war emergency up to and including full mobilization short of nuclear war, develops the necessary organizational structure (an Office of Defense Resources), and states the relationships between ODR and the delegate agencies. The actions which the Director, ODR, would consider are specified in an annex A, and the actions which the delegate agencies would consider are listed in an annex B. State resources management plans

Substantial progress was made during fiscal year 1967 on the development of State plans for the emergency management of resources. A total of 52 jurisdictions are participating in the program. At the end of the reported period, OEP had approved 33 final State plans for publication, with an additional nine undergoing review and evaluation. The remaining 10 will be completed by December 30, 1967.

Federal disaster assistance

Fiscal year 1967 was a relatively quiet year with respect to both the number and the severity of natural disasters. The President made a total of eight "major disaster" declarations compared with 18 for the preceding year. OEP took advantage of the reduced activity to devote increased attention to a review and evaluation of its disaster assistance plans, programs, and organizational structure. A significant development was enactment of the Disaster Relief Act of 1966, Public Law 89-769, which liberalized existing Federal disaster assistance programs. As directed by the Congress in Public Law 89-769, OEP completed an investigation of forest and grass fires and made an interim evaluation of the effectiveness of Federal, State, and local plans and procedures for coping with disaster.

Reorganization

During the year, OEP continued to place relatively greater emphasis on programs which have a current utility and relatively less emphasis on nuclear war preparedness. In the latter half of fiscal year 1967, the Director realined the internal structure of the agency to reflect this change in emphasis.

Emergency operating facilities

PROBLEM AREAS

OEP has continued its efforts to overcome deficiencies in the protected emergency facilities of the Federal agencies. Considerable progress has been made in improving the operational readiness of existing facilities, but many of the Federal agency emergency operating facilities do not have sufficient protection against the effects of nuclear weapons. Development of alternative sites or substantial improvement to existing facilities has been retarded, primarily due to funding.

Stockpile-copper

Continuing shortages, intensified by rising defense needs, made increased setasides of domestic production necessary. Stockpile releases helped ease the situation. Increased domestic production through use of special incentives will not be available before 1969. Work stoppages beginning at the end of fiscal year 1967 further aggravated the supply outlook.

Stockpile-nickel

Nickel was in critically short supply throughout the year. Through March 1967, stockpile disposals substantially met the shortages; since that month no surpluses were available for sale and it was necessary to increase the industry set-asides of primary nickel for defense purposes from 121⁄2 percent to 25 percent. Latest available data indicate that demand will exceed supply by more than 50 million pounds in calendar year 1967.

Systems evaluation

There is a continuing requirement for further extending existing lines of analysis to fill the gaps in planning requirements still faced by OEP. A means is needed for assessing the current economic implications of changes in the existing or projected stockpiles of materials. Adequate development of the analytical procedures required for these problem areas will permit the development of systems analytic studies of relative effectiveness among alternative programs. Economic impact projections

An economic model which can be adjusted regularly to take into account technological and other changes in interindustry relationships and sociological factors of consumers, both income and production oriented, is necessary to the projection of short-term economic trends. Work toward the development of such a model is now underway.

Long-range objectives

OBJECTIVES AND RESPONSIBILITIES

To achieve and maintain national preparedness to support various degrees of mobilization as may be required to deal with a full range of international or war situations.

To insure maximum effectiveness and efficiency of emergency preparedness measures within national security and economic policies, recognizing the interdependence of our national security and economic growth.

Goals for fiscal year 1968

Among OEP's principal goals for fiscal year 1968 are:

Complete the supply-requirements studies of strategic materials for a conventional war situation, and revise stockpile objectives as necessary. Identify the critical economic analysis factors of concern in such matters as production, facilities, manpower, and prices. Develop projections of the impact of changing military or international situations, and provide factors for consideration in the development of economic control alternatives.

Develop the analytic capability to test the effects of various combinations of economic controls on supply, consumption, production, capital formation and investment, prices, and similar factors.

Obtain resolution of jurisdictional and policy problems which arose during efforts to complete Executive order assignments to Federal agencies, including modifications to existing Executive orders. Complete assignments relating to water, education, and transportation.

Complete the Office of Defense Resources Plans for nuclear war and achieve maintenance level of standby organization.

Coordinate recruitment and designation of additional national defense executive reservists and upgrade their training.

Identify critical factors of natural resources, skills, and investment for consideration in decisions relating to stockpile, training, trade, fiscal, and similarly related policies affecting the national security.

Coordinate for the President the U.S. participation in a NATO-sponsored civil logistics preparedness test and exercise.

Responsibilities

The responsibilities of the Office of Emergency Planning are covered in Executive Order 11051 and fall into three broad categories:

General coordinating responsibilities.

Special emergency planning responsibilities.
Current management responsibilities.

General coordinating responsibilities

OEP assists the President in the determination and the coordination of the necessary plans and preparedness activities to meet all conditions of a national emergency, including attack on the United States. Resultant responsibilities are designed to

Provide for the coordination of Federal agency emergency assignments. Develop and periodically evaluate estimated military, foreign, and civilian resource requirements.

Develop an over all emergency system for reaching central program decisions for the utilization of resources.

Develop policies and procedures for the coordinated application of resource control and distribution systems.

Develop and maintain a central program system designed to consolidate, correlate, and evaluate the resources and requirements information and estimates submitted by the Federal agencies.

Advise the President concerning the strategic relocation of industries, services, Government and economic activities, the operations of which are essential to the Nation's security; and review all measures taken by Federal agencies with respect to the physical security and protection of facilities. Advise and assist the President with respect to: (a) determining policy for, directing, and coordinating the total civil defense programs; (b) stockpiling various items essential to the survival of the Nation; and (c) strengthening the mobilization base.

Provide the central source of evaluated information regarding the status of the overall emergency preparedness program.

Represent the President in working with State Governors to stimulate State and local participation in emergency resource management preparedness measures. Also, advise and guide the States with regard to preparation for continuity of State and local governments.

Special emergency planning responsibilities

Responsibilities resulting from these assignments are to:

Develop and maintain planning assumptions and broad nonmilitary emergency preparedness objectives; develop emergency planning of currently unassigned matters; plan for the emergency mobilization of telecommunications resources; and develop nonmilitary policies and programs for use in event of enemy attack in order to restore defense potential and insure the restoration of a viable economy.

Plan the nonmilitary emergency organization for the functioning of the Federal Government, including the central direction of all emergency mobilization activities and creation of such emergency agencies as may be required.

Provide for prompt exercise of emergency authority through the advance preparation of such proposed legislation, Executive orders, rules, regulations, and directives as may be necessary to effect appropriate operating programs.

Develop policies and plans to assure continuity of essential Federal Government activities, including lines of succession to leadership, safekeeping of records, survivable communications, and alternate sites for use in time of emergency.

Develop policies and plans for an executive reserve of personnel capable of filling executive positions in Government in times of emergency.

Develop plans, policies, and programs designed to provide rapid restoration, after attack, of a national capability to support a strong national defense effort.

Represent the United States in those NATO activities leading to the development of international agreements and machinery for the wartime management of resources available to the member nations of the Alliance. Coordinate, as required, U.S. participation in the activities of international organizations so as to strengthen the nonmilitary defense emergency capabilities of both allied and friendly foreign nations.

Current Management Responsibilities

These include the responsibility to direct and control the performance of all functions assigned to OEP by statute or by the President, and to insure that the current and planned defense mobilization activities of the Federal agencies make maximum contribution to the development and maintenance of the mobilization base. Functions deriving from this responsibility are to:

Control the programs authorized by the Defense Production Act of 1950, as amended.

Ascertain which materials are strategic and critical, and determine the quality and quantity of those materials which will be stockpiled; direct the procurement, rotation, upgrading, beneficiation, disposal, storage, security, and maintenance of those materials.

Recommend the strategic and critical materials to be procured by purchase, barter, or payment in kind for the national and supplemental stockpiles.

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