.06 Acts on recommendations by the Deputy Administrator for Staff Service regarding programs to purchase metals, minerals, or other raw materials (except food) for Government use or resale under section 303 of the Defense Production Act of 1950 (Public Law 774, 81st Cong.). .07 Advises and assists the Office of Procurement Policy in developing policies which bear upon the financial aspects of procurement contracts, including loan guaranties and the use of monetary advances or progress payments. .08 Through the General Counsel consults with officials of the Department of Justice regarding the application of the antitrust provisions of section 708 (e) of the Defense Production Act of 1950. .09 Maintains adequate records to reflect the activities outlined above and furnishes reports required by the Administrator. Section 5. Effective date .01 The effective date of this order is March 16, 1951. .02 All orders or instructions or parts thereof issued prior to that date which are inconsistent with this order are hereby amended or superseded accordingly. W. H. HARRISON, Administrator. STATUS OF LOAN APPLICATIONS IN DPA (MAR. 26, 1951) SCHEDULE II (1) Defense Expansion Division, DPA-Status of sec. 302 loan applications returned to Defense Expansion Division, DPA (as of Mar. 26, 1951) 1 Does not include one application denied on Feb. 27 and later approved on Mar. 2, 1951, for $15,000. REPORT ON LOAN APPLICATIONS BY DELEGATE AGENCIES (MAR. 23, 1951) SCHEDULE II (2) Defense Expansion Division, DPA-Report on sec. 302 loan applications, by delegate agencies (as of Mar. 23, 1951) 1 Does not include 41 applications for $263,644,876 withdrawn, transferred, or where other Government financing was obtained. 2 Made by RFC under sec. 4A, RFC authority. PROCUREMENT PROJECTS APPROVED BY DPA (APRIL 1951) SCHEDULE III Sec. 303 procurement projects approved Rubber: Revolving fund to purchase natural rubber and to resell to private industry and to the stock pile. The fund is necessary to afford interim financing between the time the rubber is first purchased and the time it is ultimately disposed of to the stock pile or to the domestic market____ Castor beans: Underwriting of possible losses to Commodity Exploration development: Domestic exploration, development, and Aluminum sheet: Procurement of end product required by the military, and in short supply, where cut-back in civilian consumption threatened a shut-down of plant--- Oxygen-free copper: Procurement (same as aluminum sheet)____ Tungsten: Revolving fund to purchase tungsten in world markets and resell to private industry and to stockpile_. Machine-tool program: Pool orders placed by GSA on NPA direction to channelize machine tool production by providing guaranteed market_. Aluminum expansion contracts_. Total $150, 000, 000 10, 000, 000 60, 000, 000 10, 000, 000 5, 700, 000 1,300, 000 14, 000, 000 100, 000, 000 240, 000, 000 591, 000, 000 REPORT ON TAX AMORTIZATION NECESSITY CERTIFICATES (MAR. 22, 1951) SCHEDULE IV. SPECIAL TABULATION OF NSRB FORMS 140 FOR DPA, BUSINESS EXPANSION OFFICE TABLE A.-Weekly report on certificate of necessity, as of C. O. B., Mar. 22, 1951 [In thousands of dollars] Total not yet referred, 1,402. Grand total, 5,983. Source: Department of Commerce, Bureau of the Census, Business Division. 1 Preliminary statistics. NOTE. The difference between guaranteed loans authorized and sum of loans outstanding and additional amounts available to borrowers under guaranty agreements outstanding represents amount repaid, gizaranties available but not completed, and authorizations expires or withdrawn. A total of 302 applications have been filed. Virtually all guaranties under section 301 have been made by the Department of Defense; that is, by the Departments of the Army, Navy, and Air Force. The Department of Defense has adopted a policy of confining its section 301 guaranty activity to working capital loans. One loan has been guaranteed by General Services Administration in the amount of $300,000. Four loans have been guaranteed by the Department of Commerce totaling $337,000. These loans have also been for working capital. In addition to guaranties of private financing institutions, the Department of the Air Force has guaranteed one working capital loan made by the Reconstruction Finance Corporation. DPA REPORT ON PROGRAMS AND PROJECTS APPROVED AND BEING CONSIDERED (APRIL 1951) SCHEDULE VI Exploration program-On February 28, 1951, DPA approved a $10 million program for the encouragement exploration of critical and strategic minerals and metals by way of contributing funds to match investment by private capital. Under the program, the Secretary of the Interior receives applications and the scope and physical extent of each project are investigated and defined by the United States Geological Survey and the Bureau of Mines for the Defense Minerals Administration. If necessary, the matching principle may be departed from. The contribution is to be repaid on a royalty basic from net proceeds. Tungsten program-On March 30, 1951, DPA approved a 5-year program under which the Government will buy all domestic tungsten offered and delivered before June 30, 1956, at $63 per unit, in order to encourage the exploration and development of domestic tungsten. DPA has also approved a contract with the Tungsten Mining Corp to buy 600,000 units of tungsten over a 7-year period at a floor price of $43 per unit. Aluminum program—DPA has approved the aluminum expansion program which quarantees the purchase of 446,000 tons of aluminum annually for a 5-year period at producers regular published prices. Tin contract-On March 16, 1951, DPA approved a contract to procure all tin mined in Alaska by the United States Tin Corp. for 31⁄2 years at the corporation's ceiling price fixed by the Office of Price Stabilization. Projects not yet approved by DPA-DPA now has under consideration private domestic procurement agreements with the San Manuel Copper Co, two molybdenum companies, a cobalt company, and is also considering a chrome project program. DPA PROCEDURES USED FOR COORDINATING ACTION ON LOAN APPLICATIONS SCHEDULE VII (1) NSRB Doc. 131 NOVEMBER 8, 1950. EXECUTIVE OFFICE OF THE PRESIDENT NATIONAL SECURITY RESOURCES BOARD Board Secretariat Subject: Defense production loans. Contents: Procedure for loans under section 302 of title III of the Defense Production Act of 1950, as prescribed by the Chairman of the National Security Resources Board. Reference: For further information contact Business Expansion Office, National Security Resources Board. Pursuant to Executive Order 10161, the following procedure is established for Coordinated action under section 302 of the Defense Production Act of 1950: 1. Applications will be submitted in quadruplicate, and will be considered filed when docketed by a delegate agency which will acknowledge receipt and inform applicant of docket number. When an application cuts across the responsibilities of two or more delegate agencies, the application should be filed with the agency having the predominant interest in it. However, where there is doubt as to which delegate agency has the predominant interest, the applica tion should be received by any interested delegate agency. Working arrange ments for investigation and processing should be made with the other interested agency or agencies. 2. In instances in which a prospective loan applicant has his primary contact with a nondelegate agency, such agency may receive the application and forward it to the appropriate delegate agency. If this nondelegate agency has a substantial interest in the application, it will retain one copy and forward immediately the rest of the filing to the delegate agency, with a form notation of the fact that one copy has been retained and will be forwarded at a later date with appropriate information and comments or recommendation. This procedure will enable respective agencies to carry out their responsibilities concurrently. 3. Each loan application will be investigated and evaluated by the delegate agency, with the assistance of other agencies as needed. It is essential that other Government agencies act promptly in response to requests for assistance by a delegate agency. 4. Athough agencies may use their field offices for such other purposes as may be helpful, field offices may not make direct submissions to the Resources Board. 5. Investigation of the credit standing of the applicant and of the availability of financial assistance from other sources on reasonable terms will be made by Reconstruction Finance Corporaation for the delegate agency. One copy of the application will be sent to the Reconstruction Finance Corporation for such purpose, and Reconstruction Finance Corporation's finding on such financial matters will be reported to the delegate agency. Such report will include suggested terms and conditions of loan. In some instances, it may be most efficient for the Re construction Finance Corporation investigation to be carried out concurrently with the delegate agency's investigation and analysis and in other instances the delegate agency may decide to reach a tentative decision regarding the other merits of the application prior to requesting the Reconstruction Finance Corporation investigation and report. Arrangements should be made between the delegate agency and the Reconstruction Finance Corporation to pool information and avoid duplication in the investigation process. 6. On the basis of all the necessary investigations and analyses, the delegate agencies will prepare their recommendations as to appropriate action on the applications. Applications, which the delegate agency concludes meet the criteria for favorable action, will be sent by the delegate agency to the Resources Board with a "proposal for certification." This proposal will be specific as to amount, terms, and conditions of the loan. 7. In evaluating the merits of an application, agencies with substantial interest therein may have conflicting views. In such event, the following is the procedure: (a) When a nondelegate agency's position on an application differs from that of the delegate agency, an informal attempt should be made to reach an agreement as to the disposition of the application. (b) If such agreement is not forthcoming, the delegate agency should ac company its approval recommendations to the Resources Board with such dissenting recommendations as the nondelegate agencies have presented. (c) If an agreement is not forthcoming when a delegate agency makes a determination that denial of the application is appropriate, the case is acted upon by delegate agency without bringing the Resources Board into the ac tion unless the dissenting nondelegate agency makes a formal request to the delegate agency to have the Resources Board give consideration to its position in the case. (d) If such formal requeset is made, the degelate agency will not take action on the application until both parties have had opportunity to present their views to the Resources Board. The procedure outlined in this paragraph applies also in instances in which a responsible delegate agency dissents with the position of another interested delegate agency. 8. Delegate agency's proposal for certification, with attendant documents, will be docketed, reviewed, and analyzed by the Resources Board. 9. Decision of the Chairman of the Resources Board will be transmitted to the delegate agency. 10. In those cases in which the decision calls for certification of a loan, ar rangements will be made by the Resources Board with the Bureau of the Budget for the necessary transfer of funds to the Reconstruction Finance Corporation |