.03 Each of said officers may, in accordance with prescribed Department regulations, issue such regulations as he may deem necessary to perform the functions and exercise the authority conferred upon him by this order. Section 3. Effect on Other Orders: .01 Any other orders or parts of orders the provisions of which are inconsistent or in conflict with the provisions of this order are hereby superseded or amended! accordingly. Section 4. Effective Date: 01 This order is effective June 7, 1951. D. W. RENTZEL, Under Secretary of Commerce for Transportation. MANUAL OF ORDERS PART 1 Department Order No. 128 (amended) (Supplement 4, revised). Date of issuance: September 21, 1951. Effective date: August 3, 1951. Subject: Redelegations of Authority Under CMP Regulation No. 6. Section 1. Purpose and Authority: The purpose of this order is to redelegate to certain officers of the Department of Commerce those functions of the Secretary of Commerce with respect to author-izing construction schedules of prime contractors in accordance with the provisions of CMP Regulation No. 6 and other authorities described in paragraph 1 of NPA Delegation No. 14, as amended August 3, 1951, which were delegated by the Secretary of Commerce to the Under Secretary of Commerce for Trans-portation by Department Order No. 128 (Amended), Amendment 1, of August 3, 1951 (issued 9/21/51). Section 2. Delegations of Authority: .01 The functions, powers, authorities, and discretion of the Secretary of Commerce with respect to authorizing construction schedules of prime contractors in accordance with the provisions of CMP Regulation No. 6 and other authorities described in paragraph 1 of NPA Delegation No. 14, as amended August 3, 1951, and delegated by the Secretary of Commerce to the Under Secretary of Commerce for Transportation by Department Order No. 128 (Amended), Amendment 1 of August 3, 1951, are hereby delegated to each of the officers hereinafter named, but subject to all provisions and limitations of such authority contained in said® Delegation: Commissioner, Bureau of Public Roads: Bureau of Public Roads programs for highway construction and maintenance of all rural and urban highways, streets, highway equipment repair shops, bridges, tunnels, toll road facilities and appurtenant installations, regardless of financing. Administrator, Civil Aeronautics Administration: Air navigation facilities, civil airports. Administrator, Maritime Administration: Shipyards. .02 Each of the officers delegated authority by this order may redelegate such authority or responsibilities thereunder to such persons or agencies as he may deem appropriate, provided that no such redelegation of authority may be made to persons or agencies outside his organization without the approval of the Secretary of Commerce. .03 Each of said officers may, in accordance with prescribed Department regulations, issue such regulations as he may deem necessary to perform the functions and exercise the authority conferred upon him by this order. Section 3. Effect on Other Orders: This order revokes Department Order No. 128 (Supplement No. 3) of June 7, 1951, and supersedes Supplement No. 4 of July 11, 1951. Any other orders or parts of orders the provisions of which are inconsistent or in conflict with the provisions of this order are hereby amended or superseded accordingly; provided, however, that all orders, regulations, rulings, certificates, directives, and other actions hitherto issued or taken under the aforesaid Supplements shall remain in effect until amended or revoked under proper authority. Date of issuance: May 11, 1950. Subject: Policies Applicable to Meetings With Groups of Industry Representatives. Section 1. Purpose: .01. The purpose of this order is to state the policies applicable to meetings of industry representatives authorized by the Department of Commerce and its constituent units. Section 2. Purpose and Functions of Industry Advisory Committees: .01 Industry advisory committees are established by the Department of Commerce in order to secure the benefit of a true cross section of industry opinion for the Department's advice in the development and administration of Department programs. Industry advisory committees are important official instruments for maintaining contact between the Department and industry. The establishment of committees by the Department does not, however, preclude obtaining advice from industry in other ways, for example, by the use of experts and consultants, or by consultation with individual businessmen. The formation of an industry advisory committee is not intended to prevent individual businessmen or trade associations from giving advice freely to the Department. .02 The functions of an industry advisory committee formed by the Department are to furnish information, to give advice, and to make recommendations to the Department, at committee meetings, on problems affecting the industry or the Department in connection with any existing or contemplated function or program of the Department. Industry advisory committees are not authorized or established by the Department to determine policies for the industry, to reach any agreements on behalf of the industry, to compel or coerce any person to comply with any request or order made by the Department or any official of the Department, or to take any action on behalf of the industry or the Department except to the extent involved in furnishing information, rendering advice and making recommendations to the Government at committee meetings. Industry advisory committees and their members are not authorized under this order to hold meetings other than those called by the Department. No activities of industry advisory committees or their members, other than the foregoing, are sponsored or authorized by the Department under this order. Section 3. Establishing and Using Industry Advisory Committees: .01 Considerations for formulation of industry advisory committees.-Industry advisory committees may be established to advise the Department or its constituent units on problems affecting an entire industry or segment thereof, and in every case shall be composed of representative groups from the industry. The fundamental consideration in the selection of committee members shall be the specific needs of the Department; however, it is appropriate that other departments or agencies of Government having responsibilities in related fields be permitted to seek advice and information from such committees. This practice will tend to provide uniform information and advice in planning the Government's business, avoid duplication of committees, and save time and efforts of representatives of business and industry. .02 Proposal for establishment of committees.-Any bureau or office head may propose the establishment of an industry advisory committee. In proposing such committees the following requirements should be met: 1 The problem on which industry advice is sought will be of such importance as to warrant the Department's use of the time of businessmen for committee operations; 2 The needs of the Department requiring advice from the industry group will be of a continuing nature and not merely on a temporary basis; 3 The industry representatives proposed will represent a cross-section of the industry with due consideration given to large, medium, and small business, geographic distribution, degrees of integration, differing production classification and trade association membership; 4 Adequate and clear terms of reference describing the purpose of the committee and its functions will be established in each case; 5 The proposed membership will represent responsible leaders in business or industry in order that the best advice may be secured for the Department; and 6 Wherever possible, the principle will be followed that one industry advisory committee be appointed for any given industry with subcommittees where appropriate and necessary. This practice will avoid any tendency toward duplication of committees within the Department in the same business or industrial field. .03 Approval of committee.—The establishment of all industry advisory committees and appointment of membership requires prior clearance with and approval by the Secretary. The Secretary may direct changes in proposed membership if he finds it inadequate or inappropriate. .04 Calling of meetings.-Meetings with industry advisory committees are for the purpose of bringing the Department the best information and advice available and shall be held when it is necessary for the Department to obtain such advice before reaching a position on a problem. Meetings may be initiated either by appropriate Department officials or at the suggestion of committee members. Committee meetings shall not be used for the purpose of obtaining support for a predetermined position. Written invitations, with agendas and other pertinent information, shall be issued sufficiently in advance to enable industry representatives to make arrangements to attend and permit time for prior consideration of the issues involved. Prior notification to the Secretary is required of all industry advisory committee meetings. Meetings shall not be held outside metropolitan Washington without the approval of the Secretary. .05 Conduct of meetings.-No industry advisory committee meetings shall be held without a Department official present. Government presiding officers shall be used to the maximum extent practicable. Presiding officers should be selected on the basis of knowledge of the subject matter and ability to conduct meetings. Every effort shall be made to conduct meetings in an efficient and businesslike manner with strict attention to disposal of items on the agenda and elimination of extraneous matter. Items of business not provided for on the agenda should be introduced only under unusual circumstances which are fully explained to the committee. Recommendations of the committee shall be given the fullest consideration and all members informed of the action taken thereon. .06 Publicity. It is the policy of the Department to provide the public with fullest information on deliberations with industry advisory committees, consistent with regulations governing national security. Therefore press releases should be issued promptly following industry advisory committee meetings and press conferences held where necessary. Since affected industries have a special interest in the deliberations of such committees, particular attention shall be given to adequate coverage of the trade press. .07 Maintaining adequate membership.—Industry advisory committees shall be kept activated with full membership. Where invitations to serve are refused, other appropriate members shall be promptly invited. Vacancies should be filled promptly and additional members added when the nature of the advice sought by the Department so requires. New members should always be selected in a manner to maintain adequate representation to the industry concerned. .08 Disbanding industry advisory committees.-When the purpose for which an industry advisory committee was established has been served, and future use of the industry group is not apparent, prompt consideration should be given to disbanding the committee. Committees should not be left dormant, as this practice leaves the committee in doubt as to its status and is not conducive to good industry relations. When a committee is disbanded, formal notice shall be sent each member including a note of appreciation for the services rendered the Department. Section 4. Other Department-Sponsored Meetings with Industry Groups: .01 Since industry advisory committees are to be formally constituted only when the Department needs the industry group on a continuing basis over a substantial period of time, it may be necessary and desirable on occasion for the bureaus and offices to obtain information and advice from industry through the use of temporary committees and conferences. Under these conditions, no formal industry advisory committee need be named. However, the policies set forth in Section 2 and Section 3.05 of this order must be followed and, to the extent practicable, the provisions of Section 3.02 should be observed. Where the nature of the meeting warrants, the provisions of Section 3.06 shall be applied. Advance notification of the calling of meetings with such groups shall be given to the Secretary. However, clearance of the membership of such temporary and informal groups by the Secretary is not required. Section 5. Designee: .01 The Secretary will designate a responsible official in his immediate office to represent and act for him on the industry advisory committee matters covered by this order. This representative shall provide the heads of bureaus and offices with such additional information and instructions as may be necessary. Section 6. Compensation and Expenses: .01 The Department does not ordinarily pay any compensation to, or the expenses of, members of industry advisory committees. Any exception to this policy requires the approval of the Secretary. Section 7. Exceptions: .01 There shall be no exceptions from this order without the prior written approval of the Secretary. Section 8. Effect on Other Orders: .01 Any other orders, or parts of orders, the provisions of which are inconsistent or in conflict with the provisions of this order are hereby amended or superseded accordingly. Section 9. Effective Date: .01 This order is effective May 5, 1950. CHARLES SAWYER, V-LOAN GUARANTEE PROGRAM (Numbers correspond to those of committee inquiry) 1. Program.-Guarantee of loans made to defense contractors. 2. Authority.-Section 301 of Defense Production Act, and sections 301 and 302 of Executive Order 10161. 3. Factual summary of program. This program includes the guarantee of loans to defense contractors made by private banks, in cases wherein this Department has the dollar preponderance of all defense contracts of the borrower; furnishing of certificates of eligibility to other agencies in cases wherein this Department has some contracts but the other agencies have the dollar preponderance of contracts, and also maintaining of continuous liaison with the Federal Reserve Board. To date, this Department has guaranteed in part (90 percent) one loan for $500,000. 4. Effectiveness of program.-One loan application has been received, processed, and the loan has been made. Department Orders have been issued, providing for effective mechanism for handling any further V-loans. 5. There are no advisory committees used in this program, but the NPA Office of Small Business is consulted, pursuant to the Department order setting up the procedure to be followed in guaranteeing such loans, on any loan applications or other aspects of the program. 6. The program is coordinated through the office of the Solicitor and no additional personnel has been employed; all matters involving the program are handled by existing personnel as part of their duties. NATIONAL PRODUCTION AUTHORITY DEPARTMENT OF COMMERCE NATIONAL PRODUCTION AUTHORITY REPORT TO THE JOINT COMMITTEE ON DEFENSE PRODUCTION (OCTOBER 1950–October 1951) AUTHORITY AND RESPONSIBILITIES The basic authority under which the programs of the National Production Authority are carried out stems from the provisions of the Defense Production Act of 1950. Pursuant to this act, the President by Executive Order 10161 (dated September 9, 1950) delegated certain authority, under titles I, II, and III of the act, to the Secretary of Commerce who, in turn, by Department of Commerce Order 123 (dated September 11, 1950), created the National Production Authority to discharge most of his responsibilities under Executive Order 10161. Because of their relation to the defense program, the new agency was also charged with the Secretary's responsibilities under the Rubber Act of 1948, as amended. Subsequently, on January 3, 1951, certain of the Authority's programing functions were transferred to the newly created Defense Production Administration through Executive Order 10200. As of October 1, 1951, the authority under which the National Production Authority performs its functions was derived from the following: Defense Production Act of 1950, as amended (Public Law 774, 81st Cong.; Public Law 96, 82d Cong.); Executive Order 10161 (15 F. R. 6105); Executive Order 10200 (16 F. R. 61); Defense Production Administration Delegation No. 1, as amended (16 F. R. 738; 16 F. R. 4594); Department of Commerce Order 123, as amended (15 F. R. 6726; 16 F. R. 1129); Rubber Act of 1948, as amended (26 Stat. 101, 50 U. S. C. App. Supp. 1921); Executive Order 9942 (13 F. R. 1823); and, Defense Production Administration Order 1 (16 F. R. 4913). Briefly, the National Production Authority (NPA) is responsible for (1) assuring that rearmament requirements for production materials and facilities are met on schedule; (2) developing and promoting measures for the expansion of productive capacity and of production and supply of materials and facilities necessary for the national defense and for the maintenance of a strong economy; and (3) assuring that, after defense needs are met, the remaining supply of materials and products is distributed equitably for nondefense uses. The Authority began operations with a nucleus of personnel transferred from the Bureau of Foreign and Domestic Commerce of the Department of Commerce. Around this initial group an effective organization was developed with additional staff from other Government agencies and from private industry. As of October 1, 1951, employment, which leveled off in September, was as follows: Classified employees - Without compensation personnel. Total__ 4, 707 88 5, 019 The 105 offices of the Department of Commerce field service act as the regional representatives of the NPA. Priorities MAJOR PROGRAMS The agency's first formal action was the promulgation of NPA Regulation 1, limiting inventories of materials in short supply to a practicable working minimum. This was followed by NPA Regulation 2, which established a broad system of priorities to assure the right-of-way for defense orders with a minimum disruption of production schedules and civilian supply. Three other regulations have been issued, relating to (1) an integrated United States-Canadian priorities program; (2) materials for maintenance, repair, and operations; and (3) procedures for appeals. To supplement and implement the basic priorities regulations, NPA has issued 84 material (M) orders which specify rules for placing, accepting, and scheduling defense orders, and which limit the amount of critical materials to be used for nondefense production. The M orders vary in emphasis with respect to such matters as allocation, limitations on use, and inventories, control of purchases, delivery, acceptance and processing, and substitution requirements. They apply to basic materials, products and services such as: |