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(i) Recommend to the Office of (s) Advise on current military comEmergency Planning measures for over- munications facilities and military recoming potential deficiencies in produc- quirements for communications facilition capacity to produce selected military ties and services in planning for and in supplies and equipment needed to fulfill event of a stepped-up or all-out mobilimobilization requirements, when neces- zation or attack on the United States. sary measures cannot be effected by the (t) Advise on requirements for the Department of Defense.

military use of and the type of control (j) Furnish information and recom- considered necessary for all forms of mendations, when requested by the Of - transportation and transportation facilifice of Emergency Planning, for pur- ties in the event of national emergency. poses of processing applications for ac- (u) Develop plans for the immediate celerated tax amortization certificates or activation, in event of national emersection 302 defense loans.

gency, of the wartime air priorities sys(k) Furnish advice and assistance on

tem developed in coordination with the the utilization of strategic and critical

Department of Commerce, for the effecmaterials in defense production includ

tive control utilization of air transport ing changes that occur from time to

resources. time.

(v) Advise and assist the Office of (1) Analyze problems involved in

Emergency Planning in the development maintaining an adequate mobilization

of stabilization policies and plans suitproduction base in military-product in

able in event of mobilization or attack dustries and take necessary actions with

on the United States. This includes in the limits of the authority and funds available to the Department of Defense.

coordination of policies affecting military

price determinations. (m) Assist the Secretary of Commerce (w) Assist the Office of Emergency with respect to the identification and Planning in preparation of legislative rating of facilities important to defense programs and plans for coordinating mobilization.

government support of mobilization pro(n) Assist the Department of Agricul- grams. ture in the review and analysis of mobi- (x) Develop plans for the utilization lization requirements for food.

of nonindustrial facilities in the event (0) Advise and assist the Office of of mobilization in order to reduce reEmergency Planning in the development quirements for new construction and to and review of standards for the strategic provide facilities in a minimum period location and physical security of indus- of time. tries, services, government and other (y) Advise and assist the Office of activities for which continuing operation Emergency Planning in (1) determining is essential to national security, and ex- what key foreign facilities are important ercise physical security cognizance over to the security of the U.S., particularly

facilities assigned to him for such those producing raw materials, and (2) purpose.

obtaining through appropriate channels (p) Advise and assist the Office of protection against sabotage. Emergency Planning in the development (z) Develop to a state of operational of a damage assessment system and in readiness, plans for the continuity of the preparation of estimates of potential the Department's essential wartime damage from enemy attack.

functions, including emergency reloca(q) Develop a system for rapid and tion and emergency action steps. comprehensive assessment of enemy at- (aa) Develop internal procedural intack damage to industrial facilities pro- structions, organizational arrangements, ducing vital items of military equipment and staffing patterns, needed to execute and supply.

quickly Department of Defense responsi(r) Advise and assist the Office of bilities in each of the above areas in Emergency Planning in the development event of mobilization or attack on the of over-all manpower policies to be in- United States. stituted in the event of mobilization or 3. The program to be undertaken by attack on the United States, including the Department of Defense shall be subthe provision of information relating to mitted to the Director of the Office of the size and composition of the Armed Emergency Planning indicating the priForces.

ority and scope of work to be carried on

in the areas enumerated above. Re- (6) The degree of damage which a
ports of progress shall be submitted in facility could sustain and still remain
accordance with a schedule to be agreed operable.
on by the Secretary of Defense and the (7) The ground environment or nat-
Director, Office of Emergency Planning. ural barriers which might provide added

4. This order is not intended to affect protection to the facility.
any delegation of authority heretofore (8) The economic, operational, and
conferred upon the Secretary of Defense. administrative requirements in carrying
(DMO 1-12, 19 F. R. 6396, Oct. 5, 1954)

out the function for which the facility is
to be provided.

b. While no single distance standard DMO 1-19-DISPERSION AND PRO

and no single set of protective construc

tion specifications against nuclear, chemTECTIVE CONSTRUCTION; POLICY, ical and unconventional weapons are CRITERIA, RESPONSIBILITIES

feasible for all situations, the above By virtue of the authority vested in me

factors will be applied so as to achieve pursuant to the National Security Act of

the most protection practicable for a spe

cific situation. 1947, as amended; Reorganization Plan No. 3, effective June 12, 1953; and the

3. Responsibilities. a. All nents

and agencies of the Executive Branch of Defense Production Act of 1950, as

the Federal Government are responsible amended; the following policy, criteria, and assignment of responsibilities for

for adherence to the policy and criteria

herein set forth with respect to programs Dispersion and Protective Construction

under their control. Without limitation, are promulgated:

specific reference is made to the 1. Policy. It is the policy of the United

following: States to encourage and, when appro

(1) All agencies: (a) Programs for priate, to require that new facilties and

minimizing the vulnerability of the momajor expansions of existing facilities

bilization base, (DMO 1-4, paragraph important to national security be located

17); (b) Consideration of dispersed locain so far as practicable, so as to duce

tion and protective construction in the the risk of damage in the event of attack;

review of application for tax amortizaand to encourage and, when appropriate,

tion (DMO III-1, paragraphs 4 and 5); require the incorporation of protective construction features in new and exist- (c) Application of Dispersion Standards ing facilities to provide resistance to

to Facilities of the Executive Branch, in weapons effects suitable to the locations accordance with policy and standards of said facilities.

issued by Director, Office of Emergency 2. Criteria. a. The distance of a fa- Planning. cility from the probable area of destruc- (2) Department of Defense-Protion is the controlling factor in reducing grams for maximum use of dispersed the risk of attack damage to such fa- plants, and development of standards for cility. In determining the appropriate strategic locations and physical security. distance consideration will be given to

(DMO 1-12, paragraph g, h, and o.) all relevant factors, including:

(3) Department of the Interior-Pro(1) The most likely objects or targets grams for continuity of production of of enemy attack, such as certain military, certain assigned industries. industrial, population, and governmental (4) Department of Agriculture-Proconcentrations.

grams for operation of vital food facili(2) The size of such targets.

ties. (3) The destructive power of a large

(5) Department of Commerce-Proyield weapon or weapons suitable to the grams for dispersion and continuity of particular target.

production. (4) The gradation of pressures and

(6) Federal Civil Defense Administrathermal radiation at various distances tion-Development and coordination of from an assumed point of detonation. plans and programs for the reduction of (5) The characteristics of the pro

urban vulnerability. posed facility, including underground b. The Department of Commerce (Ofand built-in protective construction fea- fice of Area Develpment) is responsible tures, with respect to its resistance to for providing guidance and assistance to nuclear, chemical, and unconventional

departments and agencies of the Federal weapons.

Government, to industry, public and pri

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vate persons and organizations includ- DMO 111-1-POLICY DIRECTIVE GOV. ing local Dispersion Committees, in the

ERNING ISSUANCE OF TAX AMORapplication of the policy and criteria

TIZATION CERTIFICATES UNDER contained herein. (1) By agreement between the De

SECTION 124A 1 OF THE INTERNAL partment of Defense and the Depart- REVENUE CODE, AND DEFINING ment of Commerce, Department of THE EXTENT TO WHICH ACCELERDefense will provide guidance on certain

ATED AMORTIZATION CAN BE ALindustrial and other non-military proj

LOWED AS A COST IN NEGOTIATED ects in which it has a direct and special


(2) The Department of Commerce By virtue of the authority vested in me may make similar arrangements with by Executive Order 10193 ? of December other departments and agencies to pro- 16, 1950 (3 CFR, 1950 Supp.), it is hereby vide guidance on projects in which they ordered as follows: have a direct and special interest, pro- 1. To assure consistency between the vided that reasonable safeguards to as- granting of necessity certificates and the sure consistency and uniformity in the

determination of expansion goals, certifapplication of the policy and standards icates shall be granted only for facilities are maintained.

that are included within expansion goals (3) The Department of Defense is re- determined by the Defense Production sponsible for the application of this Administration to be necessary to meet policy to military projects without con- established requirements. sultation with the Department of Com- 2. Certificates of necessity for tax merce, but with due regard to the loca

amortization shall be based on a pertion of other vital facilities and plans centage that reflects the best available for reduction of urban vulnerability as estimates of post-five-year period usedeveloped by the Federal Civil Defense fulness and additional incentives to the Administration.

minimum amount deemed necessary to C. The Federal Civil Defense Adminis- secure the needed expansion. tration, responsible for the development 3. The determination of amortization and coordination of plans and programs percentages shall be closely related by for the reduction of urban vulnerability, the Defense Production Administration is responsible for integrating at the to the provision of other financial incenmetropolitan target zone level dispersion tives by the Government to encourage actions with all other measures which the construction of facilities, such as dican make urban areas less attractive

rect government loans, guarantees, and targets. It is also responsible for pro- contractual arrangements. The objecmulgating construction standards and

tive shall be to use these incentives sepaspecifications for the protection of per- rately or in combination to secure the sons and property from nuclear and

needed expansion at minimum cost to unconventional weapons effects. The the Treasury. Department of Commerce and all others

4. For purposes of effective adminisconcerned will be governed by such tration the Defense Production Adminisstandards in rendering the guidance and tration may establish percentage cerassistance described in paragraph b, tification patterns for individual indusabove.

tries. These shall provide a basis from 4. Rescissions. This order supersedes which adjustments upward or downward 'the Dispersion Policy Statement of shall be made on account of special facAugust 10, 1951.'

tors such as size of enterprise, extent of (DMO I-19, 21 F.R. 270, Jan. 3, 1956)

1 Section 168, Internal Revenue Code of 1954.

• Superseded by E. O. 10480, 8 CFR, 1953 Supp.

1 Not filed with the Office of the Federal Register.

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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 determi. nation 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]

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, equipment 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 war. time 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.


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:

c. Expansion goals shall give consid- (3 CFR, 1953 Supp), I hereby assign to eration to substitutes; conservation of the Commissioner of the Interstate Comcritical materials; conversion of existing merce Commission who is responsible for facilities; and feasibility of extent of in- the supervision of the Bureau of Service crease in capacity.

of tlie Commission, the Secretary of 5. Special materials expansion goals Commerce, the Secretary of the Army, applicable primarily to the pre-mobiliza- the Secretary of the Treasury, and the tion period:

Secretary of the Interior, within their a. Normally an expansion goal will be respective areas of responsibility desigset in quantitative terms. However, nated in section 201 of Executive Order where general programs are now under 10480 and section 401 of Executive Order way, or are contemplated for explora- 10219 of February 28, 1951 (3 CFR, 1951 tion, development, and mining, research Supp.), responsibility for preparing plans and development, or the development of and programs for the most effective use substitute materials, special expansion of the nation's transportation facilities : goals may be established which properly (a) in preparation for attack conditions, describe and limit the program involved. (b) under attack conditions, and (c) in Goals covering the above need not nec- post-attack rehabilitation. essarily be expressed in quantitative 2. It is the policy of the Office of Emerterms.

gency Planning to develop through the b. In certain cases, notably those designated agencies plans to meet the where imported materials normally pro- problems which would thus be presented vide a significant portion of United with the objective of: States requirements, stockpiling may be a. Developing the greatest possible rea preferable method of meeting wartime sistance within the transportation plan needs. Consequently, where the mini- to attack and achieving the maximum mum stockpile objective is not likely to operating flexibility under attack condibe completed under current conditions tions. within a period of time consistent with b. Assuring the maximum transportathe national security, then the respon

tion performance under attack condisible delegate agency shall recommend tions, by the above and by such control establishment of an expansion goal of measures as may be required to that end. sufficient size to permit completion of c. Directing this performance toward the minimum stockpile objective from the most urgent transportation requiredomestic and/or foreign sources within ments presented at the time. a reasonable period of time.

d. Coordinating transportation with 6. Appropriate delegate agencies shall plans and programs for meeting the probe responsible for proposing establish- duction problems presented by loss and ment, modification, or closing of expan

disorganization of productive capacity. sion goals. The establishment of goals e. Assuring the most rapid restoration or any revision or change in status of a of transportation capacity to the level of goal is the determination of the Director post-attack transportation requirements, of the Office of Emergency Planning who in the priority dictated by those requirewill file notice in the FEDERAL REGISTER

ments, and coordinated with other naof each determination as it relates to

tional post-attack rehabilitation proexpansion goals.

grams. (DMO III-1, Supp. 1, 20 F. R. 7369, Oct. 4,

3. The policy above indicated applies 1955)

specifically in the following, among other

matters: DMO VI-2-POLICY GUIDANCE AND a. Development for each type of DELEGATION OF RESPONSIBILITY transportation of plans for the security

of communications, operating facilities, WITH RESPECT TO TRANSPOR

operating personnel, operating headTATION IN PREPARATION FOR

quarters, and essential operating records. ATTACK CONDITIONS, UNDER AT- b. Development of alternative routes TACK CONDITIONS, AND IN POST- tending to disperse risk, nationwide deATTACK REHABILITATION

1. Under the authority vested in me by 1 The word "transportation" includes ware. Executive Order 10480 of August 14, 1953 housing, storage, and port facilities.

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