Secretary of Agriculture has assigned the operating functions within his Department to the Production and Marketing Administration. Insofar as transportation is concerned, such matters are handled by the Defense Transport Administration.

The Secretary of Commerce is responsible for all other materials. In order to discharge this responsibility he has established in the Department of Commerce the National Production Authority which has within it an Industry Operations Bureau with industry divisions. Applications for adjustment in individual hardship cases are handled initially by the particular industry divisions within the Industry Operations Bureau. You will notice that the various orders of NPA contain a statement to the effect that any person affected by the order may file an application for an adjustment or exception on the ground of extreme hardship, or that enforcement of the order against him would not be in the interest of the national-defense program. To aid in meeting the problems of small business a Small Business Office has been established in NPA.

In the procurement field the responsibility of the Office of Defense Mobilization relates to general policies and coordination among the procurement agencies so that, among other things, the demand for raw materials may be channeled, the maximum use of tools and machines attained, and definitive supply and require ments estimates procured. Although the Office of Defense Mobilization and the Defense Production Administration are directly concerned with procurement policies and programs, the actual contracting is done by the Defense Depart ment and the procurement agencies of the Government. For the present any problems of this type should be taken up with the appropriate procurement agency.

The Economic Stabilization Agency handles price control and wage stabilization. When such controls are imposed there may be individual instances re quiring adjustment. As the Agency is establishing procedures to handle these matters, any problems concerning them should be referred there.

The Congress, in the Defense Production Act of 1950, has expressed its concern over the difficulties that may face small business in the mobilization effort In section 701 it has specifically stated that "It is the sense of the Congress that small business enterprises be encouraged to make the greatest possible contr bution toward achieving the objectives of this Act." In order to carry out this policy it has provided that information concerning the activities of the various agencies under the act shall be made available to small-business enterprises It has also provided for representation by small- and medium-sized businesses on industry advisory committees; for the establishment of procedures so that small business may receive such exemptions from the act as may be feasible: and for the expeditious handling of all requests, applications, or appeals from small business.

You may be sure that we are making every effort to carry out this legislative intent. Through arrangements with the Secretary of Commerce any citizen can procure from any one of more than 5,000 offices throughout the country e operating with the Department of Commerce and the Government purchasing agencies information regarding Government procurement. These offices compris local chambers of commerce and civic groups. The purpose of this wide dissemination is to give small business every opportunity to participate in the defens effort. Specifically it includes a daily report of practically all proposed Gorernment purchasing through competitive bids. With respect to negotiated cotracts these agencies have available a weekly report showing the prime unclassified contracts awarded. The report, which lists the items, quantities, and contractors, is disseminated so that the small-business man may solicit subcor tracts for components. In this connection the information office also advises him of the facts he should supply a prime contractor when seeking a subcontract I believe that small business must be given every opportunity to participate in the defense program. True some small-business enterprises may not be able to underbid large firms or in some instances only a large manufacturer may be able to supply the needed quantities. In such situations, however, the price contractor is being encouraged to subcontract. The Secretary of Defense is of the same view and has issued a statement of policy to the effect that in pro curement the military departments should pay particular attention to

(d) The fullest possible use of small business concerns.

(e) The utilization in negotiation of competitive and multiple awards, whenever possible.

(f) The aggressive encouragement or requirement of subcontracting by prime contractors.

I heartily agree with these principles and propose to see them carried out to the fullest extent possible.

With respect to the advisory committees I plan to assign the Defense Production Administration the responsibility of coordinating the utilization of such committees by the various agencies so that there will no longer be overlapping committees from particular industries. I shall also request the Administrator to prepare, insofar as possible, uniform procedures for representation on and use of advisory committees. In this request I shall specifically ask him to consult with the Attorney General and the Chairman of the Federal Trade Commission concerning those problems.

Provision has also been made for exemption for hardship cases and some of the metals orders contrain specifiic exemptions for small business. There is no doubt that special provision should be made for expeditious handling of all requests, applications and the like whether they be from small business or any other segment of the public.

One of the main problems concerning small business is integration into the mobilization effort. In my opinion we can accomplish this in several ways, Among these is the direct loan program through which we can assist and encourage small business to convert to defense production and, if necessary, expand productive facilities. In undertaking such a program we must, of course, see to it that small business receives its fair share of prime contracts. In those instances where this may not be possible, we must continually encourage subcontracting to smaller enterprises. Then, too, efforts can be made toward pooling of manufacturing resources by smaller manufacturers in order to handle prime contracts. Although this is not specifically mentioned in the law, I believe that within the scope of section 708 of the Defense Production Act governmental agencies may under appropriate conditions enter into voluntary agreements for so-called production pools.

These then are but a few of the efforts which should be made to carry out the legislative intent of the Congress concerning the contribution of small business toward accomplishing the purposes of the act. In order to insure the implementation of this policy, I am directing the Administrator of the Defense Production Administration to lend encouragement and support to small business through the Small Business Office of the National Production Authority. It will be their duty to determine methods and set up procedures by which small business enterprises can be integrated into the defense effort. In this connection all the agencies having operating functions in the mobilization program would be requested to adhere to these principles in the issuance of orders curtailing production or use of materials by business enterprises with a view to insuring that small business concerns will not be disproportionately affected by such orders. Moreover, I believe that the other small-business programs such as direct loans for small business, assurance of equitable treatment in the issuance of prime contracts, and the encouragement of subcontracting can be appropriately centered in this official.

Undoubtedly the steps which have been taken so far with regard to this prob lem are in the right direction. There are many advantages in centering this activity in one office. Not only does it allow for realistic study and programing but it also gives the small-business man a central office to which he can appeal for expeditious action.

President Truman, in his state of the Union message, pointed out that our program calls for increased "capacity to produce and to keep our economy strong for the long pull." This phase of the program is essential to meet the threat of Communist aggression. As a part of this program we must have vigorous small business enterprises capable of participating in a united effort for defense. The more effective and energetic these enterprises are the stronger our economy will be.

I appreciate that once a business disbands it is practically impossible to recreate it. The engineering skills, the labor force and the management are soon dissipated. Such losses are detrimental to our economy and steps must be taken to avoid them. In the administration of the mobilization effort we shall make every effort to keep such casualties to a minimum.

EXHIBIT 24

DPA PRESS RELEASE ANNOUNCING PROCUREMENT POLICIES ADOPTED TO HELP SMALL BUSINESS

Caution-Hold for release until 12 noon E. S. T. Monday, April 23, 1951

DPA-27

SMALL BUSINESS

DEFENSE PRODUCTION ADMINISTRATION

Defense Production Administrator William H. Harrison today announced adoption of a new four-point procurement policy to increase participation of small business in defense production.

The policy, Mr. Harrison said, has been accepted by all Government agencies concerned with defense procurement and production. The policy was developed by the OPA Production Executive Committee, jointly with the DPA Small Business Executive Committee composed of representatives of defense agencies concerned. Mr. Harrison said the policy was the result of many weeks of study and discussion by Government officials, including consultation with officials of both large and small firms throughout the country. The four points of the policy were outlined by the DPA Administrator as follows:

1. To bring into the defense effort on a prime contract, subcontract, or purchase part basis every qualified producer who can be used so that orders can be spread across as wide a base as possible.

2. To find and put to use the productive facilities of small firms.

3. To give small manufacturers all necessary information concerning Government needs and the steps they should follow in obtaining subcontracts as well as prime contracts.

4. To develop and install procurement procedures which will encourage prime contractors to subcontract to small firms the maximum amount of business possible.

To carry out the procurement policy, Mr. Harrison said, the two DPA committees have recommended the following eight specific steps:

1. Contracting officers should require contractors to state in bid or negotiation whether or not additional facilities, either buldings or equipment, will de necessary to accomplish the work. If the contractor requires a Certificate of Necessity or priorities assistance, it is to be submitted to NPA for clearance prior to further negotiation with the contractor, with the understanding that no commitments are to be made to the contractor pending such NPA approval. The intent of this recommendation, the Committee said, is to assure that business is channeled to existing facilities before expansion of facilities is considered. 2. Each service should review its requirements and designate specific items suited for distribution among a number of contractors. Such items, whenever possible, should be procured by competitive bidding, or if this method fails, by negotiation. To fully encourage competition in negotiation, lists similar to bidder lists are to be used in choosing sources of supply. Advance notice must be given of intent to negotiate, and adequate time is to be allowed prospective suppliers to prepare proposals. The purchase information will be included in the daily procurement synopsis issued by the National Production Authority. Procurement is to be broken into two or more lots, and multiple awards made wherever appropriate and feasible.

3. Contracting officers should obtain agreement with suppliers that subcontracting will be used wherever possible.

4. Prime contractors should be provided with incentives to subcontract to the maximum degree possible. The Committee pointed out that attempts to hold down profits which may be earned on subcontract work to a level below that which normally obtains in a commercial practice nullifies the objective of spreading the contracts. Current cost analysis practices, the Committee explained, tend to discourage subcontracting by allowing less administrative costs, overbead costs and profits on subcontracted portions of prime contracts on the theory that it is less costly to the prime contractor to administer subcontracts than to do the work in his own plant. The Committee concluded this tends to encourage

prime contractors to build as much as possible of the completed product within their own plants.

5. The Department of Defense should authorize payment of justifiable price differentials to accomplish the objective of keeping intact the facilities of small business. This should include such steps as utilization of marginal producers and the payment of transportation penalties where necessary.

6. The Department of Defense should review its "M-Day Production Allocation Program" with a view to broadening, wherever possible, the number of eligible contractors. This is a list of producers known and inspected by the Defense Department as capable of supplying military items. It is used as an aid by the contracting officers in locating sources of supply.

7. Defense Production Administration, National Production Authority, the Department of Defense and all production and procurement agencies should continue existing programs of technical aids, production services, and contracting and subcontracting assistance to small business.

8. These agencies should undertake a coordinated program of information concerning the basic objectives of small business participation in defense production and the means by which this can be accomplished. This should include these steps:

(a) Widely publicize the methods of Federal procurement so that small concerns will know where to go for assistance in obtaining contracts.

(b) Encourage all businesses similarly to publicize their need for subcontractors and the methods of their subcontracting activities.

(c) Institute a program of educational forums and exhibits to expedite the location of additional suppliers.

In order to measure the effectiveness of the policy, Mr. Harrison said periodic reports are to be submitted to DPA by the agencies concerned. Summaries will be made public from time to time, reporting the progress of small business participation in Federal procurement, he said.

The Small Business Executive Committee consists of John C. Pritchard, Deputy Administrator for Small Business, Defense Production Administration, chairman; the General Manager of the Atomic Energy Commission; and representatives from the Department of Defense, the Munitions Board, the General Services Administration, and the Defense Transport Administration.

EXHIBIT 25

INTERIOR DEPARTMENT PRESS RELEASE OF AUGUST 19, 1951-SECRETARY CHAPMAN URGES MOBILIZATION OF NATION'S MINERAL RESOURCES

DEPARTMENT OF THE INTERIOR

Information Service

BUREAU OF MINES

For release

Sunday, August 19, 1951

CHAPMAN URGES MOBILIZATION OF MINERAL RESOURCES

Secretary of the Interior Oscar L. Chapman today called for intensified exploration of mineral deposits and expanded mining of known reserves as the answer to an alarming decline in this Nation's level of self-sufficiency in many strategic and critical minerals and metals.

This country's trend toward greater dependence on foreign sources for some of our most essential metals and nonmetallics must be reversed, said Secretary Chapman.

While he pointed out that the domestic minerals industries have been doing a good job to supply the ever-increasing demands of the civilian and military economy, further expansion of sound projects is possible under the Government assistance programs authorized by the amended Defense Production Act.

Secretary Chapman said he was convinced that, within this framework, the American minerals industry can meet demand with respect to several important 82354-52-47

raw materials. He said, however, the industry must plan not only for the present defense emergencies, but also for the long pull in the years to come when domest supplies of certain minerals may become more scarce.

Accelerated exploration and development of additional ore reserves, improve ment in present mining and metallurgical practices, utilization of margina deposits, elimination of all possible waste, and the development of alternate materials, particularly those from more abundant sources, are some of the remedies proposed by the Secretary.

A chart prepared by the Bureau of Mines reveals that in the 6 years since the end of World War II, the ratio of domestic mine production to consumption of primary material in 38 important industrial minerals has been decreasing Estimates for 1951, compared with figures for the 1940-44 period, show that the United States has a lowered self-sufficiency in 25 commodities, including suct metals as copper, lead, zinc, and iron ore; an improved position in only 7; abd an unchanged situation in 6.

Comparing 1951 estimates with the prewar period of 1935-39, the Bureau & Mines reports that there is a lowered self-sufficiency in 21 commodities, improv ing self-sufficiency in 12 commodities, and an unchanged situation in 5.

These estimates, the Bureau of Mines pointed out, illustrate that while there has been a general lowering of the self-sufficiency for a generation or more, the most noticeable drop occurred after World War II. This war itself exacted a tremendous toll in mineral resources, but the ever-expanding demands of the postwar years are claiming an even greater stock of our irreplaceable natural

resources.

The chart entitled "United States Self-Sufficiency in Principal Industria Minerals," which contains the data of the Bureau's survey, covers 38 minerals and mineral fuels. Three periods are shown-the prewar era of 1935-39, the World War II period of 1940-44, and current 1951. Self-sufficiency is shown as a percentage, representing the ratio of domestic mine production to United States consumption of primary materials. For instance, in 1951 the Burat estimates that United States mines will produce 65 percent of the country's re quirements of primary copper and import most of the remaining 35 percent. Thus the copper self-sufficiency is described as 65 percent. Similar percentages afe given for all of the 38 commodities.

Bureau estimates for 1951 reveal that there are only nine commodities wheth the United States will produce this year in sufficient quantities to meet or excem consumption demands for primary materials. They are sulfur, molybdenum anthracite, bituminous coal and lignite, phosphate rock, salt, natural gas, helium, and magnesium.

In the 90-100-percent self-sufficiency range this year are nitrates, iron ore, an petroleum. Ilmenite and potash are in the 80-90-percent bracket, while the self-sufficiency range is 60-80 percent for copper, zinc, rutile, and fluorspar

There are seven strategic commodities for which this Nation is virtually dean pendent upon foreign sources this year. They are industrial diamonds, quarts crystals, tin, chromite, nickel, strategic mica, and long-fiber asbestos. The Unite States will produce a minute percentage of its tantalum requirements this year 8 percent of the manganese needed in making steel; 9 percent of its mercury; 10 percent of its cobalt; 20 percent of flake graphite; 38 percent of bauxite: 55 per cent of lead; and 26 percent of its antimony needs. The difference in this mite production and consumption of primary materials has to be filled in from other sources, largely by imports and some by the recovery of scrap materials.

In evaluating the mineral position of 1951 with that of the World War II period, the Bureau's estimates reveal the following:

Declining self-sufficiency in 25 commodities: Nitrates, iron ore, petroleum potash, zinc, copper, fluorspar, bismuth, lead, tungsten, cadmium, arsenic, baux.te flake graphite, mercury, manganese, platinum metals, tantalum, long-fiber asbestos, strategic mica, chromite, molybdenum, phosphate rock, megnesium, and nickel.

Improved self-sufficiency : Sulfur, anthracite, bituminous coal and lignite, salt, ilmenite, rutile, and antimony.

Situation unchanged: Natural gas, helium, cobalt, tin, quartz crystals, and industrial diamonds. (Note that three of these, tin, quartz and diamonds, repre sent a continued virtual dependence on foreign sources.)