H.R. 2782 A BILL IN THE HOUSE OF REPRESENTATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86B00338R000300430014-9
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 74
• Document Creation Date: December 21, 2016
• Document Release Date: October 21, 2008
• Sequence Number: 14
• Publication Date: April 27, 1983
• Content Type: OPEN SOURCE

Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
9 JUN 193
5ff
Union Calendar No. 81~~3A
_.
98TH CONGRESS
1ST SESSION
H. R. 2782
[Report No. 98-110, Parts I and II]
To amend the Defense Production Act of 1950 to revitalize the defense industrial
base of the United States.
IN THE HOUSE OF REPRESENTATIVES
APRIL 27, 1983
Mr. LAFALCE (for himself, Mr. MCKINNEY, Mr. ST GERMAIN, Mr. LUNDINE, Mr.
VENTO, Mr. D'AMOURS, Ms. OAKAR, Mr. MINISH, Mr. FAUNTROY, Mr.
SCHUMER, Mr. COYNE, Mr. MORRISON Of Connecticut, Ms. KAPTUR, Mr.
LEVIN of Michigan, Mr. TORRES, Mr. WORTLEY, Mr. GARCIA, Mr. FRANK,
and Mr. ANNUNZIO) introduced the following bill; which was referred jointly
to the Committees on Banking, Finance and Urban Affairs and Education
and Labor
MAY 12, 1983
Reported from the Committee on Banking, Finance and Urban Affairs with an
amendment
[Strike out all after the enacting clause and insert the part printed in bold face italic]
MAY 16, 1983
Reported from the Committee on Education and Labor with amendments, commit-
ted to the Committee of the Whole House on the State of the Union, and
ordered to be printed
[Omit the part struck through in brackets and insert the part printed in italic]
A BILL
To amend the Defense Production Act of 1950 to revitalize the
defense industrial base of the United States.
C~ A-,,. i 5'PJ
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
2
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3 SHORT E
4 N 4- This A4 fi~my be eited ae the "Defense In-
5 dustrial Base ReviWizatieii "6 AND
7 STRATEGIC AND MATERIAL
8 fie. 4$1. ale I of the Defense Ffeduetie-fl A4 of
9 49A0 (CA U.S.C. . 2091 et set.} is atnended by inserfiing
10 after section 9" the following-
11 it FiNDINe AND PURPOSE
12 "SHe. 803A The Congress hereby ? fe-
that
13 speet to section 303B,
14 40 the national defense and economic health of
15 the Unite States depenffpoff the eentintietts fflainte
16 naneeof strong an4 modern industrial bftsen the
17 unintefftip" access to these eritieal arrta-
18 teeials needed to sapply such base;
19 424 in recent years, several important indttstfies,
20 a signifieafft portion of etff Nation's
21 seeend nod thifd tier defense industfial base, have
22 either- virtually slrt. down of have s4stantially fe-
23 cloned their pfedttetiefi eapaeity;
24 n major factor infihe decline of thin poet of
25 ettf ienal defense indttstfial base leas been the inabil
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9 I
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
3
1 ity of Small and medium sized businesses to a ain
2 aeeess to sew capital to remain competitive in the
3 ?aee of increasing foreign eempetition;
4 44 as a result, important segments of the United
5 states defense industrial base are new characterized by
6 deelining , aging facilities and
7 and a high degree of import penetfatieffit, and
8 at the same time, the United states leas also
9 found itself and dangerously dependent
10 upon foreign sources far critical and strategic materials
11 necessary to eur defense capability.
12 1t ie the purpose of section 308B to Str-efigthen the
13 capability and capacity of the Nation's defense ink base
14 by assisting in the process of capital investment in certain
15 small and mewed businesses vital to et w defense pie-
16 paredness, and by the of domestic
17 prod'netion, preeessi g, and eensefwati of strategic and
18 critical
19 *ND
20 eHiTie*LM
21 "SEe. 803B. (a)(}} The President, utilizing the types of
22 financial assistance specified in se and 303,
23 and any outer authority contained in this A-et-, shall take ink-
24 mediate action to assist in the ,
25 and expansion of productive capacity of industries in the
HR 2782 RH
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
4
1 Unite mates which are necessary is the mefittfaettty-e of
2 supply of fifftional defense s which aie feqttifed ?ew
3 the national security of afe likely to be f equifed in a time of
4 emergency Of Wftf.
5 42 Such assistance ski he pfe-vide enly to smal
6 aed as defined by the Secretary of
7 Com'" " e, mess the President dam s that the i ts
8 of national defense re a an emeeptieft to this limitettio
9
`E~} The ? eial wee pfovided ewer this s
b
10
u
see
to the greatest extent possible, he ffia4e ftvftileble
11 to ffifta44 endent
l
owned
t
d
d pi
,
y
opera
e
ft*
es
12
"(b)(1) of Defense, is eeitstiltfttieft
13 the
eefetewy of Commerce, shall
14
4A3 d
t
i
i
e
efm
fte
mmedia, ely, a
15
r~, these ides Lek shett!
be gig pri-
16
efi~yisthe$wafdingof ?inane~-A.-sis-i
e undef -
17
section (4}
18
"(B)detef the type sad extent of finaneie,!
19
arnee Lek shett! he ewe avetilable to each such
20
iiidustr-y; aRd
21
ith
w
respect to the industries speeified ptw-
22
surant to sttbpafagfaph (AAA; indieette e pfoposals, re-
2 3
eelned (d whieh should be gee
24
preference in the ezwofdi g of fiffeneial assistftnee ttttdef
25
even (a) based en a deter-minft that such pfe-
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
5
1 is e??" the greatest prospect ?er improving predtte-
2 tip flftd quality, at4 ?er pfevi4i}g materials whieh
3 will reduce the Nation's reliance off imperts.
4 < < E ash proposal shall include a fififtfteiftl Pk* -whi0h
&peei?ies hew the fteei-staftee offered under this section shall
6 he used to insure that the eempany inv, by r+eeei rg
7 such finafleW assistance will become more eel
8 gable in the r?
9 the President shall extend assistance under see-
10 4efia 804-, 802- ftffd 80&,- and any other authority eentezine
11 in this A-et-, to persons engaged in the a pansion of the do-
12 mcstie capability and capacity to pr-edttee of pr-eeess eritiea}
13 and strategic trtetals, mineral acrd including
14 "(A) the conservation, and reeyeling
15 of such metals, minerals, and ftfid
16 the dewlepine of processes,
17 fret designs and material selection mss; which
18 lessee of Obviate the need ?er streh critical and strati
19 gin metals a erals; offtater-i
20 The President shad exercise the authority granted
21 under this subsection in epee with the Secretary of
22 Defense, the Secretary of the I*terior, thew ry of Com-
23 meree, ftftd the Director of the Federal Manage
24 t Agency:
HR 2782 RH
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
6
1 "(} The
,
2 s e e t i s a ( s etetl stteh~ staoee on the basis
3 of pFOPOS"a sow in response to a series of publie sahei
4 taboos the first of whieh l be issued by to President
5 withiii i4fie y ea4efidftf days f Ong the date of the enaet
6 meat of this section
7 eo for 4ftftft~ iu rsrsvance whieh is
8 a~ or (e nod whieh utilizes ?inae-
9 einl aR~ through speeded in see-
10 tied a" shall provide that the President has the right to
11ftse delivery of the items specified in such coon t and to
of
ed
in
.
t _ _?
?
on amount equal to the amount by
13 whiek the wee for such items, as specified in the eentra t
14 4W-O~, exeeede the market price, as deter by the
15 Secretary of Commerce, for such items en the delivery date
16 specified in stteh ??~,-t
17 424 Fixes assistance order s. i er shall
18 not be e? to assist establishments relocating from one
19 area to another Of to assist persons whose purpose is to
20 divest or _ ese eeeoeoftie success is divest-
21 ing,Oth," perso of contracts theretofore ettstomar4y pef!-
22 ?ormed by thefn, except that such limitation shall not be eon-
23 stated to pfehib4 such f way Lance for the expansion
24 of an existing bu4ne-s-ff y thr-ettgh the establishment of a
25 new brace}, ftffiliate_ Of ffub4diafy of sttelr business entity if
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
7
1 the P dent finds that the establishmefft of sunk braneh,
2 affiliate, of subsidiary will net result i t am inerease in unesft
3 ployfftent in the area of original leeation of in arty ether area
4 where sueh entity effitduets busif3ess operations unless the
5 Pesident hoe reason to believe that sunk Lek, a??iiate, of
6 subsidiary is being established with the intention of elesing
7 down the operations of the existing business entity in the
8 area of its original location Of in any ether area where it
9 eenduets sueh ep
10 EAR} There are authorized to be atqffopriat to
11 Barry nut the prevens of sttbseetions, ( ( nod (3 not to
12 exceed
13 "4i) $400, 000 ?er ?iseal year 4984;
14 $600,000,000 ?er ?iseal year 1985; and
15 " ... 48W,000, ow ?er ?iseal year 1986.
16 4134 Such sums 4+84 remain available until expended
17 In the use of lean gttftf ,
18 and direct leans as Federal financial incentives to e*eefnplif~h
19 the objectives of this seetion, the Preset flifty utilise the
20 borrowing authority of the Treasury to the extent that the
21 e-stimate4 &hifna neteeeto?etteh incentives to the Govern-
22 event does not exceed the total of a"fopriati tide by the
23 Congress to Barry nut the p liens of sub3eetions (a}
24 and (e}: Such estimates shall be based upon the past exper-
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
8
1 eneeof the a eestsof Feder- iffee- eunder-
2 " A-4 a f elated expenses.
3 "(B) The ese of la~ , price gttetr-ettiteesT aod
4 direct leans ewer- this seetion ftffd the ttse of the borrowing
5 any of the Treasury undef bseetion s be e??ee-
6 time fef soy fiscal yeftf e* to such extent of in
sunk
7 amen its ss size pr-evid in wee
8 TITLE TT DEFENSE 1 ET AT1ET SKILL TRAINING
9 AND EDUCATIO
10 Sn 204, Title 14 of the Defense Production Aet of
11 4W~e U.S.C. 2094etse }isafHended by insefting
12 after section 303B, as ftdded by title I of this Ant, the follow
13 leg
14 99FINDiNA $
15 "SH 303C. )TheCongresshereby ?i re-
16 speet to seetions 303D sod that
17 444 there is a seers shortage of trained wof"
18 ?ef mftfty critical defense related aeettpatiefts4,
19 42} in ffiftfly such eeettpatietis-, this later shortage
20 wiI4 worsen asthepr-esendefense buildup undef
21 w*31t
22 48} this labor shortage boo the petential of seri-
23 errs jeopftr-diziftg the
HR 2782 RH
Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
 Approved For Release 2008/10/21: CIA-RDP86B00338R000300430014-9
9
1