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in these 35 cases have been gratifying: against a loss of 79,000 Defense jobs as a result of cutbacks, almost 81, 000 new non-Defense jobs have been created as replacements. In addition to the job creation accomplishments, former Defense property in these communities now have such improvements as new vocational and technical schools, recreational facilities, hospitals and health centers and transportation facilities all assets that aid a community in its efforts to grow and achieve a balanced economy.

The EAC response to the Defense impacts triggered by the April announcement has been substantial. Of the 274 separate actions announced by the Secretary of Defense, 28 have produced requests for EAC assistance. All are now being assisted. The calendar of the Office of Economic Adjustment shows that between April 17 and June 20, 1973, staff members of the Office conducted: 33 briefing sessions for individual Congressmen and Congressional delegations; 17 initial visits to the affected communities to meet with State and community leaders for organizational purposes; 15 reconnaissance team visits to affected communities to explore in depth their problems and potentials; three full Federal team surveys (on-site) of the affected communities for comprehensive data-gathering; and 37 additional meetings with community officials on matters preliminary to team visits and on followup for recovery strategies. The foregoing activity has been supplemented by: on-site surveys performed by the Office of the Assistant Secretary of Defense (Manpower and Reserve Affairs) to deal with personnel matters; internal DoD meetings dealing with the disposition of the affected properties; meetings with Federal officials in other Departments and agencies of government concerned with the welfare of the impacted communities. The total thrust of these efforts is to turn around the adverse community situations as quickly as possible for the benefit of displaced workers, affected businesses and other community . interests.

In the months preceding the April 17th announcement, the Department of Defense and the Office of Management and Budget reviewed the EAC program as a step toward strengthening the Committee so that it could deal more effectively with community impacts.

One result of this review was the reaffirmation by the President of the EAC role in community adjustment and a mandate to strengthen the Committee's efforts and expand its membership. These changes

were outlined on April 16, 1973 in a letter to the Secretary of Defense and in a memorandum to the heads of 17 Departments and agencies of the government. Some results of these Presidential instructions follow:

• The Committee has expanded its membership with the addition

of the Departments of Justice, the Arms Control and Disarmament Agency, the Civil Service Commission, and the Domestic Council.

Departmental representation to the EAC Committee has been
elevated to the Under Secretary level.

The Defense Office of Economic Adjustment, which serves as the permanent staff for the Committee, has been reorganized and enlarged from 13 to 33 persons.

Coordination of community programs is being decentralized by stationing Assistant Directors of the Office of Economic Adjustment in four regions of the country to coordinate the Committee's affairs with the Federal Regional Councils, the State Governors and the community leadership.

• Assistance to displaced Defense workers has been improved by

imposing a Defense-wide freeze on permanent appointments
from outside Defense in order to stockpile vacancies for dis -
placed DoD career employees and by applying a uniform set
of placement priorities and precedents within DoD in the re-
ferral and placement of displaced employees.

DoD and GSA property disposal procedures are being streamlined in order to convert Defense properties to civilian use as quickly as possible. (The Department of Defense Directive 5410.12 of April 21, 1973 ((Appendix 2 )restates procedures for handling both real and personal property in Defense impact situations.

Pre-impact planning and coordination has been strengthened.
(DoD Directive 5410.12 deals extensively with this subject. )

being handled on a planned basis.

A second result of the above mentioned joint OMB/DoD reviev EAC program was the completion of a plan in January 1973 upgrad the Committee's efforts by more definitively structuring the policy ing and managerial roles of all participants. (See Appendix 5.) TH has since been substantially implemented.

The Economic Adjustment Process


Several common denominators characterize communities that : assistance from the President's Economic Adjustment Committee. Virtually every community has a long history of imbalance in its ec Generally, this imbalance is attributable to an inordinate reliance o Defense expenditures and a weakness in private business and indust: These communities are understandably very sensitive to the ebb and of government dollars. Yet, local planning rarely reflects serious efforts to bring greater economic stability through diversification. I industry, in recent years, has been investing more than $30 billion ide Recone. annually in new plants and equipment, but most Defense-impacted cort ities are not seriously attempting to solicit new industry. The EAC! primary task is to persuade community leaders to undertake a vigor effort to diversify the community's economy by prudent and quick uti rea EAC

Officials tion of any surplus military property in a manner that enhances the or . development effort of the entire area. Valuable former military pro properly converted, can attract expanding private business and indus so as to generate new jobs in the community. Some communities wil face up to this task. The leadership often is willing but lacks experie and resources to meet the challenge. The EAC endeavors to provide professional, technical and financial assistance needed to develop an action program that will help the community achieve its objective. T the role of the EAC is to ''help the community help itself."

The EAC assists only those communities that request assistance. Upon receipt of a request, and verification of need, the EAC represen tives visit the community (in most cases, several times) in order to carry out a sequence of actions that have proven successful through th years. The approach is flexible enough to meet the unique needs of ea community. (A typical event network in the economic adjustment proce is shown on the opposite page.

Each community has its own personality and its individual needs. Frequently a person from outside the community, someone with a fresh

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