ATOMIC ENERGY COMMISSION

Hon. WRIGHT PATMAN,

ATOMIC ENERGY COMMISSION, Washington, D.C., September 15, 1967.

Chairman, Joint Committee on Defense Production,
Old Senate Office Building, Washington, D.C.

DEAR MR. PATMAN: As requested by your letter of July 19, 1967, to Chairman Seaborg, we are pleased to provide your Committee with the enclosed summary of Atomic Energy Commission operations under the Defense Production Act for the past fiscal year.

Sincerely yours,

R. E. HOLLINGSWORTH,
General Manager.

DEFENSE MATERIALS SYSTEM AND PRIORITIES

(Under Title I-Priorities and Allocations)

The defense materials system and priorities have been important factors in keeping deliveries from industry to the Atomic Energy Commission (AEC) on schedule during the past year. Activities and workload related to the administration and operation of the defense materials system and priorities in AEC continued at a high level due to competing military requirements and shortages of certain materials.

AEC continued its participation in the Business and Defense Services Administration (BDSA) series of nationwide meetings held to brief industry on the purposes, objectives, authority, and operations of the defense materials system and priorities. AEC contractors were encouraged to send representatives to these meetings.

Steps were taken to improve the accuracy of requirements forecasts for controlled materials for AEC programs.

RELATED ACTIVITIES

AEC estimated program levels in dollars and requirements for controlled materials for 3 years of a conventional war. These estimates, prepared to meet assumptions of the Office of Emergency Planning (OEP), were included in OEP's supply-requirements study for conventional war.

AEC also provided data to OEP for the recovery and reconstruction period after a hypothetical nuclear attack. These data supplemented data previously provided for the immediate postattack period and became part of the OEP supply-requirements study for nuclear war.

AEC supplied estimated procurement requirements for calendar year 1967 for 56 critical materials, at the request of the General Services Administration (GSA). Arrangements were negotiated with GSA for AEC to utilize surplus materials from the national stockpile to meet AEC needs for some of these materials.

Participation was continued in the activities of BDSA's Industry Evaluation Board. Studies prepared for Board action were reviewed in draft form and suggested revisions presented as appropriate.

SMALL BUSINESS

During the past year, the Commission and its cost-type contractors participated in numerous business opportunity/Federal procurement conferences with industry held throughout the country, by providing representatives and contractors' exhibits on subcontracting opportunities. Small business participation in the

Commission prime contracts and subcontracts continued to receive emphasis by the Commission's operations offices and cost-type contractors.

V-LOAN PROGRAM

The AEC did not receive any requests for guaranteed loans for the past fiscal year. There are no outstanding V-loan guarantees from prior fiscal years.

EMERGENCY PREPAREDNESS AND CIVIL DEFENSE PROGRAMS

AEC considers a strong emergency preparedness program essential to meeting its obligations under the Defense Production Act in a national emergency. Full participation and cooperation with OEP and the Office of Civil Defense continued at national and regional levels in emergency preparedness and civil defense programs.

CIVIL AERONAUTICS BOARD

Hon. WRIGHT PATMAN,

CIVIL AERONAUTICS BOARD, Washington, D.C., September 11, 1967.

Chairman, Joint Committee on Defense Production,

House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: The enclosed report for fiscal year 1967 is submitted in reply to your letter of July 19, 1967, requesting a summary of CAB mobilization activities for inclusion in the 17th annual report of the Joint Committee on Defense Production to the Congress.

As requested, your committee staff was advised of the person designated to compile the report. Any additional questions may be directed to Mr. J. C. Constantz, Defense Coordinator, code 128, extension 3763.

Sincerely yours,

CHARLES S. MURPHY,

Chairman.

1. Mobilization programs conducted by the CAB

The Civil Aeronautics Board prepares national emergency plans and develops preparedness programs covering establishment, administration, and control of the war air service program (WASP). This program is designed to provide for the maintenance of essential civil air routes and services and to provide for the distribution and redistribution of air carrier aircraft among civil air transport carriers after withdrawal of aircraft allocated to the civil reserve air fleet (CRAF).

The CAB also plans for the continuity of Government operation to protect its capability to administer and control its vital tasks necessary for the continuing function of the Federal Government and for management of civil air transportation resources under all conditions of a national emergency, including attack upon the United States.

2. Authority for such programs

The CAB is authorized to develop emergency preparedness plans and programs pursuant to and in accordance with Executive Order 11090 dated February 26, 1963 (28 F.R. 1841), the Federal Aviation Act of 1958, as amended, and appropriate orders and instructions issued by the Office of Emergency Planning and by the Office of Emergency Transportation, Department of Transportation. All references below by section and subsection numbers and letters relate to Executive Order 11090.

3. Summary of each program

Distribution of aircraft (sec 3 (a))

The CRAF concept incorporates three stages of activation which may not simultaneously trigger the activation of the WASP.

To compensate for any imbalances to the air transportation system which may occur as a result of partial or full activation of the CRAF absent CAB authority to distribute aircraft under the WASP, the Board issued part 290 of its economic regulations to authorize the civil air carriers which have furnished aircraft to the CRAF to lease an equal number of replacement aircraft from other air carriers without prior Board approval. This regulation is based on the Board's present exemption powers and operates on the theory that granting the carriers the necessary authority will enable them voluntarily to enter arrangements for lease of aircraft among themselves to meet airlift shortages.

In addition, a draft emergency regulation EDR-98 was adopted contemporaneously with part 290 to govern the distribution and redistribution of aircraft

among the civil air carriers under the WASP. This regulation would come into effect upon the issuance of an order by the President or his designee to activate the WASP and conferring appropriate authority upon the Board as contemplated in Executive Order 11090, to direct the distribution and redistribution of aircraft among air carriers.

The Board has not prescribed the financial provisions which should apply to the distribution and redistribution but contemplates the attachment of such provisions in a subsequent regulation.

Economic regulation (sec. 3 (b))

The CAB economic regulatory functions will continue as appropriate under emergency conditions. The first delegation to the airlines has been made as Air Transport Mobilization Order ATM-1, to provide flexibility in certificated route operation deviations during emergency conditions. Other emergency economic orders pertinent to rates and fares charged the public, mail rates and subsidy have been drafted. These will be submitted to the Board for approval upon completion of staff coordination.

Priorities (sec. 3 (c))

A prerequisite to the WASP is to determine the priority traffic for which air transportation must be assured the order of importance of the traffic, its urgency, the places between which it should move and the scheduled capacity required.

The CAB has approved and issued the WASP Air Priorities Manual, setting forth in detail the plan, organization and procedures for domestic and international passenger, mail and cargo priorities during an emergency. The flow of priority traffic will be the primary guide to all WASP activities.

We are now working with representatives of the airline industry to establish, on a standby basis, plans for the location and staffing of the air priorities field organization, the Regional Air Priorities Control Offices (RAPCO).

To provide for an instantaneous response in implementing air priorities, we are now developing an interim system of air priorities which will be wholly controlled and administered by the air carriers. The more comprehensive system outlined in the air priorities manual may not be capable of activation as quickly as needed and until such times as the formal system is needed and can effectively function the interim air priorities system will be in effect.

Discussions are being held with representatives of the Office of Emergency Transportation, Office of Emergency Planning, Office of Civil Defense and the Federal Aviation Administration on the problems involved on the development of the interim system.

Investigation (sec. 3(d))

The investigation of violations of CAB economic regulations is a normal function of the CAB which will continue during emergency conditions. The responsibility to maintain the capability to investigate major accidents involving civil air carrier aircraft has been deleted from our planning program. This function was transferred from the_CAB_to the National Transportation Safety Board by the statute creating the Department of Transportation.

Claimancy (Sec. 3(e)), salvage and rehabilitation (sec. 3(h)), damage assessment (sec. 3 (i)), requirements (sec. 3 (g))

In claimancy and salvage and rehabilitation, we are to assist the FAA. In damage assessment, we are to assist both the FAA and DOD. These projects are of a lower priority for the CAB since other agencies have primary responsibility. However, we are prepared to assist the FAA and DOD in the performance of these functions.

Two requirements reports have been prepared in the past. One prepared in 1963 "Fuel Consumption and Manpower Survey, United States Commercial Air Transportation System, Quarter Ended June 30, 1962," was submitted to the Office of Emergency Transportation in connection with a request from that agency. The other report "Commercial Air Transport Manpower Resources at December 15, 1958" was prepared and submitted to the FAA during January 1964 for inclusion in a report to the Department of Labor in connection with a manpower survey being made by that agency for the Office of Emergency Planning. Under Executive Order 11090, we are to coordinate with the FAA the estimate of requirements essential to WASP operations. We do not contemplate compiling requirements data during the current fiscal year.

Resources (sec. 3(f))

A report entitled "Assessment of WASP Airlift Capacity and Essential Air Traffic Requirements in a Major Emergency, Calendar Year 1967" was prepared by the CAB and distributed to interested Federal agencies and to the certificated air carriers. The report predicts the 1967 volume of essential priority traffic (passengers and cargo) which would require air transportation in case of a major emergency and relates this volume to the estimated capacity of the commercial airlines to accommodate it if the CRAF aircraft were withdrawn. We plan to update this study annually in view of the fact that the industry's fleet inventories are constantly changing as are the numbers and types of aircraft allocated to the CRAF.

We assisted the Office of Emergency Transportation and the FAA in developing data to be included in the National Resource Analysis Center (NRAC) data bank for the FAA's major airports program.

Professional liaison (sec. 3 (j))

We are currently working with the Air Transport Association (ATA) to provide for the standby staffing of the 22 Regional Air Priorities Control Offices (RAPCO's) that will be required to administer the CAB-WASP Air Priorities System. Personnel to staff the RAPCO's will consist mainly of airline traffic personnel who are familiar with traffic generation within their assigned RAPCO

area.

The Chairman, CAB extended the term of the CAB Industry Advisory Committee on Aviation Mobilization to June 30, 1968. The committee advises the CAB on development of emergency plans and programs in support of the WASP. The last meeting of the committee was held on February 1, 1967, to discuss factors involved in identifying essential civil air routes.

Financial aid (sec. 3(k))

During emergency conditions, the CAB's subsidy authorities will continue and qualifications for payment will be modified to provide for essential operations caused by and as a result of the emergency situation.

Contracting (sec. 3(1))

To distribute and redistribute aircraft for the WASP the CAB must be prepared to act as contracting agency if necessary. This is considered to be a matter of organization and is to be provided for in the CAB emergency organization as a stand-by function if needed to be performed.

Research (sec. 4)

Research is conducted as necessary for the functions assigned by Executive Order 11090.

During the past year the CAB has assisted the Office of Emergency Transportation in compiling data and identifying actions taken by the CAB during interruptions and curtailment of air transportation service as a result of certain national disasters and strike situations.

Interagency cooperation (sec. 5(a))

During the past fiscal year the CAB continued to work and cooperate closely with other Federal agencies in developing Federal and State emergency plans and programs. These agencies include the Departments of Defense, Transportation, Commerce, and State. The CAB continues to be represented in the Interagency Emergency Planning Committee and the Interagency Civil Defense Committee.

Emergency planning (sec. 5(c))

The CAB Emergency Operations Plan provides a reference document to the CAB organization for the development of CAB staff plans and procedures to insure that the CAB will have the capability to carry out its vital tasks and to continue its essential functions under any emergency situation. Planning for the assignment and performance of specific emergency functions by the CAB staff components needs to be accomplished and we plan to complete this during fiscal 1968.

We are also working on improving our relocation site capabilities and we are actively investigating this part of our program in cooperation with the FAA and the Office of Emergency Transportation.

Our essential records program is a continuing function. The essential records files positioned at our relocation sites are periodically updated and reviewed.