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Additional information submitted for the record by—Continued
Columbia River Packers Association, Inc., letter from James H.
Cellars, public relations officer ----
change under new legislation in valuation provisions of the
Statement showing Budget Bureau recommendation and final
appropriation for statistical services item --
dent, transmitting statement.-
letters and information...
Holton, Frank, & Co., letter from Elliott Kehl, executive vice
International Chamber of Commerce, Inc., letter from Thomas J.
Watson, Jr., transmitting statement of United States Council.-
Letter and statement from Hon. James P. Mitchell, Secretary,
with respect to H. R. 5550, January 25, 1955.
on behalf of American photographic manufacturing industry--
National Creameries Association, statement of Otie M. Reed, Wash-
Metz, chairman, import committee
Office of Defense Mobilization: Formal requests for investigation
under sec. 7, Public Law 86, table-
Additional information submitted for the record by-Continued
Rubber Manufacturers Association, Inc., letter from C. P. McFadden,
chairman, footwear division, transmitting statement-
Wilson, secretary, transmitting statement.--
Andersen, executive vice president, laboratory apparatus and optical
Tompkins, president, American Viscose Corp-
Tungsten Institute, letter from James A. White, executive secretary,
transmitting statement of W. Lunsford Long, president -
United States Austrian Chamber of Commerce, Inc., letter from
Paul A. Goldschmidt, executive secretary, transmitting statement.
Wildlife Management Institute, letter from Daniel A. Poole, editor,
Outdoor News Bulletin, transmitting statement.
ADMINISTRATION AND OPERATION OF CUSTOMS AND TARIFF LAWS AND THE TRADE AGREEMENTS PROGRAM
TUESDAY, OCTOBER 2, 1956
HOUSE OF REPRESENTATIVES,
Washington, D. C. The subcommittee met at 10 a. m., pursuant to recess, in the committee room of the House Committee on Ways and Means, Hon. Burr Harrison (acting chairman) presiding.
Mr. HARRISON. The committee will please come to order. first witness this morning, we are happy to have with us Dr. Arthur S. Flemming, Director of the Office of Defense Mobilization.
Good morning, Doctor. I wish you would please identify for the record your associates.
Mr. FLEMMING. Thomas R. Baldwin, Deputy General Counsel, Office of Defense Mobilization, and Harold Gresham, Special Assistant to the Director on Foreign Trade.
Mr. HARRISON. You may proceed in your own way, Doctor.
STATEMENT OF ARTHUR S. FLEMMING, DIRECTOR, OFFICE OF
DEFENSE MOBILIZATION, ACCOMPANIED BY HAROLD GRESHAM, SPECIAL ASSISTANT TO THE DIRECTOR ON FOREIGN TRADE, AND THOMAS R. BALDWIN, DEPUTY GENERAL COUNSEL, OFFICE OF DEFENSE MOBILIZATION
Dr. FLEMMING. Mr. Chairman and members of the committee, I am glad to appear before this subcommittee in connection with its broad study of our customs and tariff laws and the trade-agreements program. I understand that you desire a description of the duties and responsibilities of the Office of Defense Mobilization which might contribute to such a study and the procedures followed by us in discharging our responsibilities.
As you know, the Director of the Office of Defense Mobilization has been charged with the responsibility for the coordination of all mobilization activities of the Government and for the direction and control of operations under certain mobilization statutes. That responsibility includes the determination of a mobilization base adequate and adaptable to varieties of emergency conditions ranging from mobilization without an attack on continental United States to mobilization accompanied by damaging attacks on the continental United States. When we refer to the mobilization base, we refer to
that combination of people, materials, facilities, and equipment that would be available to deal with an emergency situation.
It is clear, of course, that mobilization base requirements for an emergency that involved an attack on continental United States would be drastically different from those for an emergency that did not involve such an attack. We are authorized to use various forms of Government assistance to encourage private industry to install additional capacity necessary to complete and to maintain the mobilization base.
While it can hardly be questioned that the development and maintenance of a well rounded and flexible mobilization base is an important national objective, no one would seriously argue that efforts to achieve any single national objective can be made without due regard for the requirements of other basic national programs. That mobilization programs should be considered in the light of other executive programs was recognized by the President in the Executive order outlining the responsibilities of the Director of the Office of Defense Mobilization. This order created a Defense Mobilization Board to advise the Director consisting of the heads of the Departments of State, Treasury, Defense, Interior, Agriculture, Commerce, and Labor, the Federal Reserve Board, and the Federal Civil Defense Administration. All mobilization programs having national impact are discussed and reviewed by that Board, assisted, when appropriate, by heads of other affected agencies. As with other national considerations the effect of mobilization programs on our foreign economic policies has always been carefully considered in this forum.
Because foreign trade policies and practices strongly affect our total national security position and have a bearing on the development and maintenance of our mobilization base, ODM engages in a number of activities in which this subcommittee may be interested. These arise generally from our efforts to maintain the mobilization base or from defense responsibilities that have been placed upon the executive branch by a foreign trade law.
In our efforts to increase productive capacity and supply we have a variety of activities that affect foreign trade in one way or another. For example, we have built a stockpile of strategic and critical materials to avoid dependence on foreign sources of supply in time of war. Many of these materials are purchased from foreign sources and are brought into the United States duty-free in accordance with an express provision of law. We have found it appropriate from time to time to sponsor or support legislation to suspend duties on imports of materials which were scarce in the United States because of defense requirements. The President has assigned to us the job of advising the Department of Agriculture in connection with the barter of surplus agricultural commodities for strategic and critical materials under the Agricultural Trade Development and Assistance Act. This advice is given after receiving recommendations from appropriate interagency groups.
Ordinarily we become involved in issues regarding imports of commodities because of the relationship of those issues to the maintenance of the mobilization base.
Under the Buy American Act we have been directed by the President to provide advice to procuring agencies upon their request whenever they propose to reject a foreign bid in order to protect essential