Year: 1961. Residual fuel oil imports under the oil import control program Barrels 162, 789, 000 187, 940, 000 205, 556, 000 EMERGENCY RESOURCES MANAGEMENT Mr. CHAMBERS. A key element of our program for mobilizing the Nation's economy in time of emergency is the development and maintenance of an overall system for managing resources. Resource management is concerned with the allocation and use of scarce resources for the most essential activities, yet the history of the last two World Wars shows that it has taken as much as several years to bring this system back to a peak of efficiency. Future emergencies are not likely to afford us the period of gradual buildup and organizational experimentation characteristic of conventional war. Even if we could create overnight the best system attained at the peak of World War II, it could not meet the massive demands placed upon it by a nuclear war. Resources would be much scarcer, demands would be far more urgent, and considerably less time would be available for decision. The decisions themselves would be far more critical for they would have to balance the competing claims of the military, of civilian consumption, of capital investment and production, and of aid to our allies. DEVELOPMENT OF ORGANIZATION AND PROCEDURES In order to meet this problem, we are developing the organizational system and procedures for the emergency management of resources under various emergency situations. An important part of the work has now been completed for a nuclear-type situation. It provides for a central resource management agency, which we have tentatively called the Office of Defense Resources. In addition we have, during the past year, issued specific guidance to the agencies on a system for claiming resources and guidance on the priority use of resources. During the next year we hope to achieve a more concrete state of readiness. This includes the recruitment and training of more executive reservists to fill key jobs in the system, guidance to the Federal agencies so that they can develop their plans within an approved and integrated framework, and the development of detailed procedures for converting the Government's current statistical and informationgathering services in support resources management in an emergency. The resource management system we are developing for a nuclear war will differ from prior systems in that it will enable the President to maintain a more direct control over resource-allocation decisions and provides for the rapid flow of information and data to support such decisionmaking. Previous resource management systems relied, to a great extent, upon interagency committees and other ad hoc arrangements to settle conflicts between competing claimants, and while it worked reasonably well in World War II, it would no doubt break down under today's conditions of warfare. NATIONAL RESOURCES EVALUATION CENTER If a nuclear war resource management system is to be effective, we must also place heavy reliance on the use of computers and other advanced managerial techniques. To that end we have established a computer facility with which you are familiar, known as the National Resource Evaluation Center (NREC) at a dispersed and protected location. This Center, which serves all agencies, has data on over 800,000 essential resources as well as other information vital to economic recovery. We are currently developing programs for the computer which, when operational, will be able to simulate a postattack economy, compare available supplies and demands, and predict production bottlenecks and shortages before they occur. SUGAR PRODUCTION IN UNITED STATES Senator YOUNG of North Dakota. Mr. Chairman-has there been any change in the policy with regard to production of sugar in the United States since Cuba is now under the Communists, and that supply would naturally be cut off from us in the event of war? Mr. CHAMBERS. Senator Young, you are getting me into an area that perhaps we do not know too much about; if my memory serves me correctly, there has been an increase allowed to the domestic proproducers of beet sugar. But I am sorry, sir, I am not an expert in this field. Senator YOUNG of North Dakota. I wonder if there is any policy on the national level with regard to necessary commodities that we need in time of war. Mr. CHAMBERS. Sir, the Department of Agriculture will be carrying the load on this. We have not, to my knowledge, had any discussions at all on sugar. Senator YOUNG of North Dakota. I would think that would be one of the materials that would be needed very seriously in the event of another war. Senator ALLOTT. I want to joint Senator Young in that. Sugar consumption goes up in every war. I think we are going to need far more sugar than we have available now. Senator YOUNG of North Dakota. Would you be able to supply any information on this subject for the record? Mr. CHAMBERS. I would think, sir, that the Department of Agriculture would be the logical place to get this information. The whole food planning job is in the hands of the Department of Agriculture. Senator MONRONEY. You do not have anything except the hard goods and the minerals and things of that kind? Mr. CHAMBERS. Basically. We do have in the stockpile some soft items such as sisal and abaca. Senator MONRONEY. Edibles are in the Department of Agriculture. Mr. CHAMBERS. That is correct. And the funds asked for the Department of Agriculture contemplate they will plan for the emergency use of all foods. OFFICE OF MINERALS AND SOLID FUELS Senator ALLOTT. Mr. Chairman, before we get too far away from this last year, in consultation with Mr. McDermott, this committee, upon request, put in a provision in our report earmarking $25,000 of the recommended increases for the Office of Minerals and Solid Fuels to carry on its function. What I want to ask you is this-are we bothered with this split function or a split financing of the Office of Minerals and Solid Fuels this year? Mr. MCLEAN. The entire Office of Minerals and Solid Fuels is supported in the delegate agency budget. Senator ALLOTT. The entire thing is in that budget now. Mr. McLEAN. Yes, sir. Senator ALLOTT. So we do not have to worry about this particular thing, in report language or otherwise, this year. Mr. McLEAN. That is correct. Their entire requirements are covered in the delegate agency budget. PRESENT USE OF NATIONAL RESOURCE EVALUATION CENTER Mr. CHAMBERS. Our research budget for fiscal year 1965 includes $425,000 to complete this important task. I should mention that NREC's unique informational and analytical capacity is being used today to provide prompt, accurate, and consistent information with respect to the damage in Alaska and measures being taken to effect recovery. Some of the informational and analytical capacity of the Center will prove useful to other agencies concerned with general economic problems such as the Bureau of the Budget and the Council of Economic Advisers. COORDINATION OF FEDERAL AGENCIES Mr. CHAMBERS. In recognition of the suddenness with which a war emergency could confront this Nation, the President has, as you know, assigned civil defense and defense mobilization functions to 30 Federal departments and agencies under the overall coordination of OEP. Authority for these assignments stems from the National Security Act, the Defense Production Act, and the Federal Civil Defense Act, all of which specifically provide for or imply that existing Federal departments and agencies must bear the burden of developing emergency preparedness measures in their areas of competency. All of these departments and agencies have been directed to take whatever preparedness actions are necessary to carry out their emergency assignments should the need arise. The Office of Emergency Planning, as stated, coordinates this entire program on behalf of the President and provides day-to-day guidance, direction, and surveillance. We have tightened the management of these programs to assure that the agencies' efforts are directed to the most important tasks. A reporting system has been set up under which each agency establishes its long-term and short-term objectives and provides periodic reports measuring progress against objectives. ANNUAL REVIEW OF AGENCY PROGRAMS We also conduct an annual review of the agencies' programs to identify the strong and weak points and as a basis for our reports to the President. These procedures have made our guidance to the Federal agencies more tangible and specific than ever before, and I might add, the cooperation we have received has increased accordingly. During the past several years, most of the preparedness measures developed by the various agencies were directed to the headquarters level. We are gradually shifting the emphasis of the Federal agency programs to meet the critical gap existing at the field level. Many agencies have already begun to extend their readiness program to the field and are also helping State and local governments in their area of responsibility. EXAMPLE OF AGENCY ACTIVITY For example, the Department of Agriculture has established emergency defense boards to manage food resources in 50 States and 3,000 counties; the Department of the Interior has divided the United States into 19 power districts for the purpose of managing electric power resources in an emergency and has appointed the officials who would manage each district; the Interstate Commerce Commission has established State motor transport boards composed of Federal, State, and industry representatives in 48 States. The Department of Labor will have established approximately 725 preassigned manpower teams for postattack survival operations and 33 cadres of construction workers; the Department of the Treasury secured the participation of 2,495 savings and loan institutions and 2,007 commercial banks in the emergency preparedness program for the banking industry. EMERGENCY PREPAREDNESS FUNCTIONS OF FEDERAL AGENCIES We are requesting $6,500,000 to continue these and other Federal agency programs in 1965 and to accelerate the building of an emergency capability in the field. The breakdown by agency is carried out in the following table: Senator MONRONEY. Mr. Chambers-this 725 preassigned manpower teams would this be for the establishment of transportation in the country-highways, railroads? Mr. CHAMBERS. As I understand these manpower teams, they are balanced teams, sir, that can move into an area and supply skilled labor for all of the various points. Senator MONRONEY. It is skilled labor, or skilled engineering and planning? Mr. CHAMBERS. No, sir; these will actually be working teams. They have been developed in conjunction with management, so that the people going in will include foremen and keymen. Senator MONRONEY. A utility would probably have the team assigned, railroads and various other essential services would be included in those 725 preassigned manpower teams? Mrs. CHAMBERS. That is correct. And as you know, sir, in the Department of Commerce they have the Office of Emergency Transportation, which is planning for the coordinated use of remaining transportation in time of emergency. They work closely with the Department of Labor in setting up the manpower requirements for transportation. Mr. COSGROVE. I might add that the preassigned manpower teams look to the whole spectrum of needs. They are under the aegis of the Bureau of Employment Security and the State employment services. METHOD OF ARRIVING AT REQUEST Senator SALTONSTALL. Mr. Chambers, how is that $6,500,000 arrived at? Mr. CHAMBERS. The agencies submitted their requests, Senator, and we held detailed budget hearings with each. We trimmed their requests back considerably, and what we finally recommended was further trimmed in the Bureau of the Budget. Senator SALTONSTALL. How much was it trimmed in the Bureau of the Budget? Mr. CHAMBERS. $2,500,000. Senator SALTONSTALL. So this figure of $6,500,000 is an estimate, really, of what you may need to go forward with these plans you suggest here. I mean it is not based on any experience. HOUSE ORIGINATOR OF PLANS Mr. CHAMBERS. No, Senator, that is not correct. We have felt that the agencies actually should request their own funds in their own budgets. I think that possibly this committee has shared that belief. However, the other House of Congress has gone the other way and have said "Let's pull out all of this money and put it into the OEP budget, and let ÕEP distribute it to the agencies." Senator SALTONSTALL. Congressman Albert Thomas-that is his idea; is it not? Mr. CHAMBERS. Certainly, he is one of the stanch advocates of it, sir. But he seems to have considerable support in his committee. For the last several years, therefore, this has been done. This does not reflect just an ordinary estimate. This reflects the actual programs that are either underway or that are planned to be |