(i) Recommend to the Office of Emergency Planning measures for overcoming potential deficiencies in production capacity to produce selected military supplies and equipment needed to fulfill mobilization requirements, when necessary measures cannot be effected by the Department of Defense.

(j) Furnish information and recommendations, when requested by the Office of Emergency Planning, for purposes of processing applications for accelerated tax amortization certificates or section 302 defense loans.

(k) Furnish advice and assistance on the utilization of strategic and critical materials in defense production including changes that occur from time to time.

(1) Analyze problems involved in maintaining an adequate mobilization production base in military-product industries and take necessary actions within the limits of the authority and funds available to the Department of Defense.

(m) Assist the Secretary of Commerce with respect to the identification and rating of facilities important to defense mobilization.

(n) Assist the Department of Agriculture in the review and analysis of mobilization requirements for food.

(0) Advise and assist the Office of Emergency Planning in the development and review of standards for the strategic location and physical security of industries, services, government and other activities for which continuing operation is essential to national security, and exercise physical security cognizance over the facilities assigned to him for such purpose.

(p) Advise and assist the Office of Emergency Planning in the development of a damage assessment system and in the preparation of estimates of potential damage from enemy attack.

(q) Develop a system for rapid and comprehensive assessment of enemy attack damage to industrial facilities producing vital items of military equipment and supply.

(r) Advise and assist the Office of Emergency Planning in the development of over-all manpower policies to be inIstituted in the event of mobilization or attack on the United States, including the provision of information relating to the size and composition of the Armed Forces.

(s) Advise on current military communications facilities and military requirements for communications facilities and services in planning for and in event of a stepped-up or all-out mobilization or attack on the United States.

(t) Advise on requirements for the military use of and the type of control considered necessary for all forms of transportation and transportation facilities in the event of national emergency.

(u) Develop plans for the immediate activation, in event of national emergency, of the wartime air priorities system developed in coordination with the Department of Commerce, for the effective control utilization of air transport resources.

(v) Advise and assist the Office of Emergency Planning in the development of stabilization policies and plans suitable in event of mobilization or attack on the United States. This includes coordination of policies affecting military price determinations.

(w) Assist the Office of Emergency Planning in preparation of legislative programs and plans for coordinating government support of mobilization programs.

(x) Develop plans for the utilization of nonindustrial facilities in the event of mobilization in order to reduce requirements for new construction and to provide facilities in a minimum period of time.

(y) Advise and assist the Office of Emergency Planning in (1) determining what key foreign facilities are important to the security of the U.S., particularly those producing raw materials, and (2) obtaining through appropriate channels protection against sabotage.

(z) Develop to a state of operational readiness, plans for the continuity of the Department's essential wartime functions, including emergency relocation and emergency action steps.

(aa) Develop internal procedural instructions, organizational arrangements, and staffing patterns, needed to execute quickly Department of Defense responsibilities in each of the above areas in event of mobilization or attack on the United States.

3. The program to be undertaken by the Department of Defense shall be submitted to the Director of the Office of Emergency Planning indicating the priority and scope of work to be carried on

in the areas enumerated above. Reports of progress shall be submitted in accordance with a schedule to be agreed on by the Secretary of Defense and the Director, Office of Emergency Planning.

4. This order is not intended to affect any delegation of authority heretofore conferred upon the Secretary of Defense. [DMO I-12, 19 F. R. 6396, Oct. 5, 1954]

DMO I-19-DISPERSION AND PROTECTIVE CONSTRUCTION; POLICY, CRITERIA, RESPONSIBILITIES

By virtue of the authority vested in me pursuant to the National Security Act of 1947, as amended; Reorganization Plan No. 3, effective June 12, 1953; and the Defense Production Act of 1950, as amended; the following policy, criteria, and assignment of responsibilities for Dispersion and Protective Construction are promulgated:

1. Policy. It is the policy of the United States to encourage and, when appropriate, to require that new facilties and major expansions of existing facilities important to national security be located in so far as practicable, so as to reduce the risk of damage in the event of attack; and to encourage and, when appropriate, require the incorporation of protective construction features in new and existing facilities to provide resistance to weapons effects suitable to the locations of said facilities.

2. Criteria. a. The distance of a facility from the probable area of destruction is the controlling factor in reducing the risk of attack damage to such facility. In determining the appropriate distance consideration will be given to all relevant factors, including:

(1) The most likely objects or targets of enemy attack, such as certain military, industrial, population, and governmental concentrations.

(2) The size of such targets.

(3) The destructive power of a large yield weapon or weapons suitable to the particular target.

(4) The gradation of pressures and thermal radiation at various distances from an assumed point of detonation.

(5) The characteristics of the proposed facility, including underground and built-in protective construction features. with respect to its resistance to nuclear, chemical, and unconventional weapons.

(6) The degree of damage which a facility could sustain and still remain operable.

(7) The ground environment or natural barriers which might provide added protection to the facility.

(8) The economic, operational, and administrative requirements in carrying out the function for which the facility is to be provided.

b. While no single distance standard and no single set of protective construction specifications against nuclear, chemical and unconventional weapons are feasible for all situations, the above factors will be applied so as to achieve the most protection practicable for a specific situation.

3. Responsibilities. a. All departments and agencies of the Executive Branch of the Federal Government are responsible for adherence to the policy and criteria herein set forth with respect to programs under their control. Without limitation, specific reference is made to the following:

(1) All agencies: (a) Programs for minimizing the vulnerability of the mobilization base, (DMO I-4, paragraph 17); (b) Consideration of dispersed location and protective construction in the review of application for tax amortization (DMO III-1, paragraphs 4 and 5); (c) Application of Dispersion Standards to Facilities of the Executive Branch, in accordance with policy and standards issued by Director, Office of Emergency Planning.

of (2) Department Defense-Programs for maximum use of dispersed plants, and development of standards for strategic locations and physical security. (DMO I-12, paragraph 2, g, h, and o.)

(3) Department of the Interior-Programs for continuity of production of certain assigned industries.

(4) Department of Agriculture-Programs for operation of vital food facilities.

(5) Department of Commerce-Programs for dispersion and continuity of production.

(6) Federal Civil Defense Administration-Development and coordination of plans and programs for the reduction of urban vulnerability.

b. The Department of Commerce (Office of Area Develpment) is responsible for providing guidance and assistance to departments and agencies of the Federal Government, to industry, public and pri

vate persons and organizations including local Dispersion Committees, in the application of the policy and criteria contained herein.

(1) By agreement between the Department of Defense and the Department of Commerce, Department of Defense will provide guidance on certain industrial and other non-military projects in which it has a direct and special interest.

(2) The Department of Commerce may make similar arrangements with other departments and agencies to provide guidance on projects in which they have a direct and special interest, provided that reasonable safeguards to assure consistency and uniformity in the application of the policy and standards are maintained.

(3) The Department of Defense is responsible for the application of this policy to military projects without consultation with the Department of Commerce, but with due regard to the location of other vital facilities and plans for reduction of urban vulnerability as developed by the Federal Civil Defense Administration.

c. The Federal Civil Defense Administration, responsible for the development and coordination of plans and programs for the reduction of urban vulnerability, is responsible for integrating at the metropolitan target zone level dispersion actions with all other measures which can make urban areas less attractive targets. It is also responsible for promulgating construction standards and specifications for the protection of persons and property from nuclear and unconventional weapons effects. The Department of Commerce and all others concerned will be governed by such standards in rendering the guidance and assistance described in paragraph b, above.

4. Rescissions. This order supersedes the Dispersion Policy Statement of August 10, 1951.1

[DMO I-19, 21 F.R. 270, Jan. 3, 1956]

1 Not filled with the Office of the Federal Register.

DMO III-1-POLICY DIRECTIVE GOVERNING ISSUANCE OF TAX AMORTIZATION CERTIFICATES UNDER SECTION 124A1 OF THE INTERNAL REVENUE CODE, AND DEFINING THE EXTENT TO WHICH ACCELERATED AMORTIZATION CAN BE ALLOWED AS A COST IN NEGOTIATED CONTRACT PRICING

By virtue of the authority vested in me by Executive Order 10193 2 of December 16, 1950 (3 CFR, 1950 Supp.), it is hereby ordered as follows:

1. To assure consistency between the granting of necessity certificates and the determination of expansion goals, certificates shall be granted only for facilities that are included within expansion goals determined by the Defense Production Administration to be necessary to meet established requirements.

2. Certificates of necessity for tax amortization shall be based on a percentage that reflects the best available estimates of post-five-year period usefulness and additional incentives to the minimum amount deemed necessary to secure the needed expansion.

3. The determination of amortization percentages shall be closely related by the Defense Production Administration to the provision of other financial incentives by the Government to encourage the construction of facilities, such as direct government loans, guarantees, and contractual arrangements. The objective shall be to use these incentives separately or in combination to secure the needed expansion at minimum cost to the Treasury.

4. For purposes of effective administration the Defense Production Administration may establish percentage certification patterns for individual industries. These shall provide a basis from which adjustments upward or downward shall be made on account of special factors such as size of enterprise, extent of

integration, promotion of competition, new or improved technology, geographical location, and the relative expansion needed. A major objective of this procedure will be to insure that individual firms will not be unduly benefited or prejudiced, as they would be by the flat application of industry-wide percentages.

5. The Defense Production Administration shall assure that the need for the dispersal of facilities in accord with the new pattern established by the National Security Resources Board and approved by the President is adequately recognized when certificates are granted.

6. For the purpose of cost computations in negotiated contract pricing, true depreciation, which includes any extraordinary obsolescence reasonably assignable to the emergency period, is allowable. Any accelerated amortization of depreciation which is in excess of true depreciation, regardless of whether such excess is included in tax amortization certificates, is not allowable as an element of cost in negotiated contract pricing.

7. It is recognized that cost determination in negotiated contract pricing is a function of the procurement agency concerned. With respect to facilities to be used in the performance of negotiated contracts for which certificates have been or will be issued, the procurement agencies concerned will, to the extent required for the purpose of cost computations in connection with the negotiation of contract prices, have the responsibility for determining true depreciation. The Office of Emergency Planning will, on request, furnish the procurement agency concerned with such information as it has or is readily available to it which is pertinent to the determination of true depreciation. [DMO 11, 16 F. R. 8098, Aug. 15, 1951, as amended by Amdt. 1, 17 F. R. 6657, July 19, 1952; Amdt. 2, 19 F. R. 2898, May 19, 1954. Redesignated at 18 F. R. 6737, Oct. 23, 1953]

DMO III-1, SUPP. 1-POLICY FOR THE ESTABLISHMENT OF EXPANSION GOALS FOR TAX AMORTIZATION

By virtue of the authority vested in me by Executive Order 10480 of August 14, 1953, as amended, the following is hereby ordered in connection with the establishment of expansion goals:

1. Expansion goals are for the purpose of establishing a quantitative limit of expansion which may be covered by certificates of necessity.

2. Expansion goals will be established after review by ODM, where the estimated availability of facilities, equip.ment or materials is inadequate to meet calculated full mobilization requirements. The goal will be stated quantitatively in terms of the total capacity of supply required, and will be specifically related to the needed increase over a stated base period.

3. Where experience has demonstrated that the tax amortization incentive has not resulted in any appreciable progress in the direction of reaching the goal, the goal will be closed for tax amortization purposes and consideration will be given to the possibility of developing other programs designed to meet essential defense needs.

4. The following criteria will be used in all future considerations for expansion goals:

a. Expansion goals shall be established only to fill those gaps in the mobilization base that must be filled for the successful prosecution of a war in the event of general mobilization. Determination of the gaps shall be made by studies of wartime supply and requirements derived in the following manner:

(1) Requirements. (a) Military requirements shall be based on data supplied by the Department of Defense and the Atomic Energy Commission.

(b) War-supporting requirements shall be based on military requirements.

(c) Civilian requirements will be set at the levels necessary to enable the civilian economy to provide adequate support for the mobilization program, including re-establishment of minimum essential services during the first six months following an attack.

(2) Supply. The estimated annual supply shall be that amount obtainable from domestic production, imports which can be counted upon in event of war, secondary recovery, and U. S. Government stockpiles on hand.

b. Expansion goals shall be based upon existing or potential shortages which, in the judgment of the delegate agency and ODM, require government incentives for the elimination of such shortages.

c. Expansion goals shall give consideration to substitutes; conservation of critical materials; conversion of existing facilities; and feasibility of extent of increase in capacity.

5. Special materials expansion goals applicable primarily to the pre-mobilization period:

a. Normally an expansion goal will be set in quantitative terms. However, where general programs are now under way, or are contemplated for exploration, development, and mining, research and development, or the development of substitute materials, special expansion goals may be established which properly describe and limit the program involved. Goals covering the above need not necessarily be expressed in quantitative terms.

b. In certain cases, notably those where imported materials normally provide a significant portion of United States requirements, stockpiling may be a preferable method of meeting wartime needs. Consequently, where the minimum stockpile objective is not likely to be completed under current conditions within a period of time consistent with the national security, then the responsible delegate agency shall recommend establishment of an expansion goal of sufficient size to permit completion of the minimum stockpile objective from domestic and/or foreign sources within a reasonable period of time.

6. Appropriate delegate agencies shall be responsible for proposing establishment, modification, or closing of expansion goals. The establishment of goals or any revision or change in status of a goal is the determination of the Director of the Office of Emergency Planning who will file notice in the FEDERAL REGISTER of each determination as it relates to expansion goals.

[DMO III-1, Supp. 1, 20 F. R. 7369, Oct. 4, 1955]

DMO VI-2-POLICY GUIDANCE AND DELEGATION OF RESPONSIBILITY WITH RESPECT TO TRANSPORTATION IN PREPARATION FOR ATTACK CONDITIONS, UNDER ATTACK CONDITIONS, AND IN POSTATTACK REHABILITATION

1. Under the authority vested in me by Executive Order 10480 of August 14, 1953

(3 CFR, 1953 Supp), I hereby assign to the Commissioner of the Interstate Commerce Commission who is responsible for the supervision of the Bureau of Service of the Commission, the Secretary of Commerce, the Secretary of the Army, the Secretary of the Treasury, and the Secretary of the Interior, within their respective areas of responsibility designated in section 201 of Executive Order 10480 and section 401 of Executive Order 10219 of February 28, 1951 (3 CFR, 1951 Supp.), responsibility for preparing plans and programs for the most effective use of the nation's transportation facilities 1 (a) in preparation for attack conditions, (b) under attack conditions, and (c) in post-attack rehabilitation.

2. It is the policy of the Office of Emergency Planning to develop through the designated agencies plans to meet the problems which would thus be presented with the objective of:

a. Developing the greatest possible resistance within the transportation plan to attack and achieving the maximum operating flexibility under attack conditions.

b. Assuring the maximum transportation performance under attack conditions, by the above and by such control measures as may be required to that end.

c. Directing this performance toward the most urgent transportation requirements presented at the time.

d. Coordinating transportation with plans and programs for meeting the production problems presented by loss and disorganization of productive capacity.

e. Assuring the most rapid restoration of transportation capacity to the level of post-attack transportation requirements, in the priority dictated by those requirements, and coordinated with other national post-attack rehabilitation programs.

3. The policy above indicated applies specifically in the following, among other matters:

a. Development for each type of transportation of plans for the security of communications, operating facilities, operating personnel, operating headquarters, and essential operating records.

b. Development of alternative routes tending to disperse risk, nationwide de

1 The word "transportation” includes warehousing, storage, and port facilities.