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opium from the stockpile will be used to pay all processing and transportation costs. Sales of materials

The General Services Administration's annual report appearing in the appendix, sets forth sales commitments of $466.9 million in fiscal year 1967, well below the record $1.028 billion in fiscal year 1966 but higher than that of any year prior to 1966. Acquisition cost of materials sold in fiscal year 1967 exceeded sales proceeds by $36.9 million.

The volume of sales from the Defense Production Act inventory included in the above sales commitments amounted to $92.3 million in fiscal year 1967 as compared to $198.5 million the previous year.

Major items sold during fiscal year 1967 were aluminum, columbium, copper, lead, nickel, rubber, tin, and tungsten. Materials sold from the Defense Production Act inventory and the national and supplemental stockpiles during the past fiscal year are listed in the appendix, including the dollar amount of each material sold for both Government and industrial use. The eight materials for which the Office of Emergency Planning approved disposal plans during fiscal year 1967 are listed in the appendix and include cobalt from the DPA inventory. Data on materials, electric power, oil, and gas

The Department of the Interior maintains currently, on an annual basis, for strategic and critical materials as well as other important metals, minerals, and solid fuels, data on the location, production, employment, capacity, vulnerability to blast damage and fallout, and other data, concerning every major domestic mine and processing facility.

For electric power, data is maintained covering all electric generating stations with a capacity of 5,000 kilowatts or larger. Data is also maintained covering all transformer substations with a capacity of 10,000 kilovolt-amperes or larger.

Data maintained for petroleum and gas includes major oil fields, petroleum product storage capacity and inventories, petrochemical plants, fuel survival items, military petroleum product tankage, port facilities, natural gas processing plants, processing capacity of oil refineries, crude oil piplines, petroleum product pipelines, natural gas pipelines, and other information. Oil reserves

The Department of the Interior states that the problem of maintaining adequate reserves is a continuing one. While the amount of oil added to reserves during 1966 was slightly greater than the amount produced, it was not enough to maintain the ratio of reserves to production. This ratio is reported to have declined for the eighth successive year, and reserves at the end of 1966 represented 11 times production during the year compared to 12.9 in 1958. Oil, natural gas, and coal consumption

Per capita consumption of oil is increasing, but at a relatively slow rate. It rose from 831 gallons in 1961 to 947 gallons in 1966, or 13.9 percent for the 5-year period. Natural gas consumption rose from 70,900 cubic feet per capita in 1961 to 85,700 cubic feet in 1966, or an increase of 20.9 percent. Per capita consumption of coal in the United


States during the 10 years to 1961 declined from 3.05 tons to a low of 2.04 tons. Per capita consumption has been increasing each year

since 1961 to reach 2.37 tons in 1965. Wage and salary stabilization

The Department of Labor reports that existing interim wage and salary stabilization regulations for use in a general war situation were revised on the basis of suggestions received and a review of problem areas which arose during past stabilization programs, and are awaiting approval at the departmental level. Drafts of


and salary stabilization regulations considered necessary to immediately implement a wage freeze order in a limited war emergency were developed by the Department of Labor, and these draft regulations are being circulated for final approval. Continuity of government

The Office of Emergency Planning reports that 34 State legislatures have ratified constitutional amendments providing the basic authority for continuity of government legislation. Five other States have indicated that they have adequate existing authority and do not need constitutional changes to enact needed legislation. Industry Evaluation Board

The Secretary of Commerce has the responsibility for identifying those products, services, and supporting facilities which are of exceptional importance to industrial mobilization and national survival. This responsibility is carried out within the Business and Defense Services Administration by the Industry Evaluation Board, an interdepartmental organization chaired by an official of the Department of Commerce. There are advisory member representatives from the Departments of Defense; Interior; Agriculture; Health, Education, and Welfare; the Atomic Energy Commission; and the Office of Emergency Planning. Any group

of industrial experts with the Government may be called upon to prepare an analysis. During the fiscal year ending June 30, 1967, analyses were completed for 175 products or classes of products. Other studies reached advanced stages of preparation. Herbicides for Southeast Asia

The Department of Defense reports that the requirements for “Orange” herbicides for the fiscal years 1967, 1968, and 1969 are so great as to require the creation of additional production capacity. Construction of an “in-house” capacity was directed by the Secretary of Defense. Due to the length of time required to build the “in-house” capacity, the Department of Defense indicates that it was necessary to obtain approval from the Department of Commerce and the Office of Emergency Planning to preempt all commercial capacity for 2-4-5T (a principal ingredient of “Orange”) through December 1967. The report of the Department of Defense states that negotiations will continue in the fiscal year 1968 for the percentage of commercial capacity to be allocated beyond December 1967 to the military requirements.

This subject is also covered in the report of the Department of Agriculture, in which it is stated that herbicides 2,4,5-T and 2,4-D are being used by the military in Vietnam for jungle defoliation. The Department of Agriculture states that since April, 100 percent of the domestic 2,4,5-T production has been set aside for this purpose under the priorities and allocations provision of the Defense Production Act. It is further stated that a substantial quantity of 2,4-D also is being taken by the military. Agriculture normally uses about one-half of the domestic production of 2,4,5-T, mainly for controlling brush on rangeland. Agriculture also uses about 60 percent of the domestic production of 2,4-D, principally for controlling weeds in corn, grain, sorghum, wheat, and other small grains. The Department of Agriculture states that farmers and ranchers will bear a large portion of the impact of shortages for civilian use. Reorganizations

The appendix includes the first report submitted by the newly created Department of Transportation. This Department was authorized by Public Law 89–670 on October 15, 1966, and established on April 1, 1967, pursuant to Executive Order 11340 dated March 30, 1967. The operating administrations within the Department of Transportation include the Federal Aviation Administration, the Federal Highway Administration, the Federal Rail Administration, the St. Lawrence Seaway Development Corporation, and the U.S. Coast Guard. The functions of the Department of Transportation were previously carried out by a number of departments and agencies, including the Federal Aviation Agency, the Department of Commerce, the Interstate Commerce Commission, the Department of the Interior, the Treasury Department, and the Department of the Army.

The Office of Emergency Planning completed a reorganization during the past fiscal year which was designed to improve its ability to deal with changing problems. The newly created National Resources Analysis Center is said to be the agency's touchstone to quick Federal response in the event of a national emergency. The National Resource Analysis Center is in charge of a defense economist and includes the computing center formerly known as the National Resource Evaluation Center. The objective is to maintain a complete capability for monitoring, evaluation, and projecting the status of the Nation's resources and economy in order to meet the needs of any national emergency Manpower

The Department of Labor reports that the Vietnam conflict already has resulted in a few shortages of manpower in some occupations and in some geographic areas. As a result, the Department of Labor has oriented its manpower training and utilization programs to meeting the present defense needs and the prospective shortages if the Vietnam conflict continues. The Department of Labor has many programs in being which are designed to inform the department of the occupations which are critical, which are in short supply, the locations geographically and industrially, the number of apprentices in training, the workers needed, where labor surpluses and shortages exist, what training facilities are available, and the ability to transmit this information to any

point necessary: The Maritime Administration reports that during the fiscal year 1967 shipboard requirements increased by more than 4.100 due to additional reactivations of Government-owned ships. The incidence of man

power shortages among the crews of Government-owned ships causing delayed sailings continued with increased severity. It is reported that during the fiscal year 1967, there were 228 delayed sailings, that the minimum delay was 6 hours and that the maximum delay was 334 hours, and that the average delayed sailing was 75.3 hours. A total of 411 short-handed sailings of Government-owned (general agency agreement) ships during the fiscal year 1967, had unfilled jobs. The most severe shortages listed were for engineering officers and deck officers. The program for preparing unlicensed personnel for licensing as third assistant engineers is reported to remain the most productive training program. Shortage of skilled manpower continued to be experienced by most of the private shipyards. Practically all larger shipyards are reported to have apprenticeship schools in operation and shipyards continuously advertise for skilled personnel. The Maritime Administration reports that the critical shortages include pipefitters, welders, shipfitters, machinists, and electricians.

During fiscal year 1967 the Department of Agriculture received a number of reports of problems resulting from the drafting of agricultural workers. The Department provides factual farming information on registrants upon request but does not intercede with respect to the draft classification. The chronic problems of recruiting and retaining qualified regular and year-round skilled farmworkers persisted but the overall situation was not critical.

The Department of Health, Education, and Welfare reported that work is continuing on national plans for the management of health manpower under conditions of limited war and nuclear war. Executive Reserve

The National Defense Executive Reserve was established in 1956 under authority of a 1955 amendment to the Defense Production Act. The Executive Reserve is composed of executives selected from various segments of the civilian economy and Government and trained for service in key positions in the Federal Government for periods of emergency. As of June 30, 1967, the roster was comprised of 3,930 executives, with plans for a total membership of 5,000. The training program for the fiscal year 1967 featured a series of 1-day regional conferences sponsored by the Office of Emergency Planning in addition to the customary unit training sessions held throughout the country. Ten departments and agencies now sponsor 21 units of the Executive Reserve. The Business and Defense Services Administration, Department of Commerce, had the largest unit at the end of the fiscal year, with 1,435 members and 160 being processed against an authorized complement of 2.000 reservists. There was a net increase of 341 reservists during the fiscal year 1967. Detailed reports on the Executive Reserve program are set forth in the appendix. Transportation

The report of the newly created Department of Transportation includes reports of the Federal Aviation Administration, the Federal Highway Administration, the Federal Railroad Administration, the St. Lawrence Seaway Development Corp., and the U.S. Coast Guard.

The Civil Aeronautics Board reports that detailed planning for development of a limited war transportation plan was initiated in August 1966 in coordination with the Office of Emergency Planning, the Office of Emergency Transportation, and other Federal agencies assigned emergency transportation planning responsibilities by Executive orders. On March 8, 1967, the limited war plan was submitted to the Board and approved.

The Civil Aeronautics Board also reports that a report was prepared which predicted the 1967 volume of essential priority traffic which would require air transportation in case of a major emergency. This report covered both passengers and cargo and related the volume of traffic to the estimated capacity of the airlines to accommodate it if the Civil Reserve Air Fleet aircraft were withdrawn. CAB plans to update this study annually in view of the fact that the industry's fleet inventories are constantly changing as are the numbers and types of aircraft allocated to the Civil Reserve Air Fleet. Packaged disaster hospitals and medical supplies

In a hearing on June 16, 1967, the chairman of this committee asked the Director of the Office of Emergency Planning whether thought had been given to the establishment of a strategic drug reserve in order that drugs could move in a pipeline to hospitals and to poverty areas and overseas, and thereby avoid waste. The Director of the Office of Emergency Planning stated that a comprehensive review had been made of the medical stockpile program which started in 1951, and which includes packaged disaster hospitals and backup supplies. He stated that a new approach was undertaken in relating the packaged disaster hospitals to presently existing community hospitals in order to improve the readiness for use of the emergency hospitals and to facilitate the turnover of perishable supplies.

The report of the Office of Emergency Planning states that the Interagency Task Force on Emergency Health Preparedness, which was established in August 1965 to review and recommend improvements in the civilian medical stockpile program, was disbanded in April 1967 after substantially fulfilling its mission. The Public Health Service is implementing a revised program, including prepositioning of packaged disaster hospitals. Information provided by the Public Health Service is reported to provide data which justify the programing of a to of 5,000 packaged disaster hospitals for prepositioning throughout the Nation. Approximately one-half of these would be affiliated with existing community hospitals. The balance would be positioned in federally maintained depots located adjacent to metropolitan areas. Priority is being given to the prepositioning of the maximum number of packaged hospitals in affiliation with community hospitals. An active procurement effort is reported to be underway to provide components for the refurbishment of on-hand packaged disaster hospitals.

In the fiscal year 1967, contracts were signed between the Public Health Service and 180 community hospitals for affiliation with packaged disaster hospitals, or for rotation of a 30-day community hospital backup inventory of critical medical items. A fiscal year 1968 target of approximately 450 200-bed packaged disaster hospital affiliations and approximately 700 200-bed community hospital backup supply agreements is projected. The report of the Public Health Service sets forth the value of the current medical stockpile. This inventory includes 2,583 packaged disaster hospitals on loan to States or temporarily held in storage having a value of $70,025,046.03, materials stored in ware


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