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a. A cont inued national objective to provide Federal assistance to communities whose economic health is threatened by Defense decisions made in the nati onal interest.

b. A goal of obtaining a higher qual ity program than now exists to deliver Federal services and resources to Defense-impacted communities.

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A goal to enhance the Federal ability to eff ectively serve a greater number of Defense-impacted communities and individual s.

d. A goal to provide a transitional program structured to serve as a base for extending Federal assistance on a wider range of Federal impacts (not Defense impacts al one).


A goal to provide all of the foregoing community assistance out of existing Federal resources (no new legislation and no additi onal appropriations).

f. A goal to increase community reliance on the private sector for job creation,

A goal to increase decentralization of program administration in community assistance.

h, A goal to more fully utilize local initiative in organizing, planning and executing a community adjustment program ( maximum emphasis on local control).

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a. An organizational structure for an Economic Adjustment Program (EAP).


The management roles of various Federal organizati ons in the



Methods and procedures for operation of the EAP.

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an inter-agency Economic Adjustment Committee.

b. Above Presidential memorandum formalized on-going informal arrangements of a nine-year old Economic Adjustment Program.


Essential EAP elements:

Focusing Federal resources on community assistance;

Motivating community to organize for economic development;

Developing a recovery strategy in concert with the community;

Helping the community implement the adopted strategy.



High quality of Federal service to impacted community, with accent on generating private-sector employment. (Better than 1:1 ratio of private sector jobs gained to Defensegenerated jobs lost. )

Credible evidence of the efficacy of a total Federal inter-
governmental approach to local problems (a unified
Federal stance rather than competing/ duplicative efforts).

Diversified and economic utilization of former Defense
properties ( community facilities, vocational-technical
schools, industrial parks, civil air facilities, etc.).

Greater number of communities served. (EAC arrangement enabled program to service triple the number of communities served at any one time between 1969 and 1972.)

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Staffing limitations restricted Federal capability to broaden the base for community support. There is a clear-cut need for expanded coordination with State development agencies, public interest groups, private sector, Federal Regional Councils, etc..

b. The nature of current program has not taken full advantage of specialist expertise with the Federal Government. A new functional

need, i.e., current organization is not horizontally and vertically aligned to take full advantage of existing resources,,


Competition for scarce resources in on-going Federal programs caused time-consuming cutting of red tape.

de The present Economic Adjustment Committee management structure in the Federal Government does not include the Domestic Council. In addition, participation of the Office of Management and Budget and the Federal Regional Councils was not adequately defined.


The present organizational structure does not provide a proper base for transition to an enlarged program.

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a. Define roles of major Federal participants in the Economic Adjustment Program.

b. Realign program management structure to upgrade program quality and transitional capability.

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Adopt a more effective staffing pattern for the operating organ



Specify operational methodology for the Program.

The remainder of this proposal outlines the specific actions required to implement the above four recommendations.


Re-emphasize national objective of Federal assistance to communities whose economic health is threatened by Federal decisions made in the national interest.

Direct the strengthening of an inter-agency Economic Adjustment Committee to provide the foregoing assistance.

Appoint the Secretary of Defense as Chairman of the EAC.

Direct all major departments/agencies in the Executive
Branch to cooperate with EAC and provide the needed

( Drafts of letters to accomplish the foregoing are attached. )

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Formulate and coordinate domestic policy recommendations to the President with respect to EAC responsibilities.

Review total EAC Program in order to suggest to the President improvements in EAC policies.

Review inter-agency relationships in order to report to the President on recurring inter-governmental problems affecting EAC performance.


Formulate organizational plan for strengthening economic
adjustment program (for President's approval).

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Arrange for earmarking funds of all relevant programs so as to assist EAC performance,

Advise the Chairman of EAC with respect to improved administrative organization and practice.

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