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§ 2071. Priority in contract and orders; allocation of materials and facilities. The President is authorized (1) to require that performance under contracts of orders (other than contracts of employment) which he deems necessary or appropriate to promote the national defense shall take priority over performance under any other contract or order, and, for the purpose of assuring such priority, to require acceptance and performance of such contracts or orders in preference to other contracts or orders by any person he finds to be capable of their performance, and (2) to allocate materials and facilities in such manner, upon such conditions, and to such extent as he shall deem necessary or appropriate to promote the national defense. (Sept. 8, 1950, ch. 932, Title I, § 101, 64 Stat. 799.)

Cross references.-Discrimination against orders or contracts affected by priorities or allocations prohibited, see section 2157 of this Appendix.

Establishment and functions of National Production Authority.-The Secretary of Commerce by F. R. Doc. 50–8068, filed Sept. 13, 1950, 15 F. R. 6182 provided as follows:

"Section 1. Purpose.-The purpose of this notice is to establish the organization necessary to carry out the functions assigned to the Secretary of Commerce by Executive Order 10161, 'Delegating Certain Functions of the President Under the Defense Production Act [set out as a note under this section]', and is issued pursuant to the authority vested in the Secretary by such order and by Reorganization Plan No. 5 of 1950 [set out as a note under section 133z-15 of Title 5].

"Section 2. Establishment of National Production Authority.-There is hereby established in the Department of Commerce a National Production Authority which shall be headed by an Administrator appointed by the Secretary. The National Production Administrator shall report and be responsible to the Secretary.

"The National Production Authority shall perform the functions and exercise the powers vested in the Secretary of Commerce by Executive Order No. 10161, 'Delegating Certain Functions of the President Under the Defense Production Act of 1950 [set out as a note under this section].' These functions shall include but not be limited to: (1) Determination of the requirements for materials and commodities needed for defense, civilian, foreign, and all other purposes; and (2) formulation and execution of the policies and programs necessary for the fulfillment of such requirements.

"Section 3. Establishment and functions of the Advisory Committee on Priorities Administration.—There is hereby established an Advisory Committee on Priorities Administration consisting of the Adminstrator as Chairman and representatives from the following agencies and such other agencies as the Secretary may designate from time to time: (1) Department of Defense; (2) Department of the Interior; (3) Department of Agriculture (4) Department of State; (5) Department of Labor; (6) Department of the Treasury; (7) Office of International Trade (Department of Commerce); (8) Economic Cooperation Administration; (9) Atomic Energy Commission; and (10 Housing and Home Finance Agency.

The National Security Resources Board shall be invited to designate an observer to attend all meetings of the Advisory Committee on Priorities Administration.

"The Advisory Committee on Priorities Administration shall serve in an advisory capacity with respect to policy and program matters affecting the interests of the represented agencies. More specifically, the Committee shall: (1) Consider all factors relevant to the determination of the direct and indirect military, civilian, and foreign requirements for essential and critical raw materials and industrial products; (2) recommend programs for the production and allocation of such materials and products; and (3) review proposed orders and regulations and perform such other functions as the Chairman may assign.

The Administrator, as Chairman, is authorized to: (1) Establish such subcommittees and working groups subsidiary to the Committee as he may determine

to be necessary; and (2) establish rules and regulations governing the procedures and operations of the Committee and its subgroups.

"Section 4. Organizational adjustments. The following industry divisions of the Office of Industry and Commerce of the Bureau of Foreign and Domestic Commerce, together with their personnel, are transferred to the National Production Authority: Iron and Steel; Metals and Minerals; Rubber; Textiles and Leather; Chemicals; Forest Products; Construction; Machinery and Equipment; General Products; Motion Pictures; Food; Petroleum; Fuels and Energy. "The Division of Small Business and the Marketing Division of the Office of Industry and Commerce are transferred to the National Production Authority, together with related personnel.

Section 5. Administrative and Field Services.-Pending further development of the organization and facilities of the National Production Authority and until otherwise directed, the central personnel, accounting, information, and other administrative service facilities of the Office of the Secretary shall provide administrative and other services to the National Production Authority. "In addition, any necessary field services will be provided by the Department Field Service pending development of a sufficient volume of field work to justify separate field offices for the National Production Authority.

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Section 6. Reemployment rights.-All permanent employees of the Office of Industry and Commerce who are transferred by the terms of this order to the National Production Authority and who remain with that organization and perform satisfactory service shall be entitled to reemployment rights in an appropriate position of at least the same grade held on the effective date of this order, when the transferred functions are returned to that office. Other permanent employees of the Department who are transferred individually to the National Production Authority shall be entitled to reemployment rights under the same terms in the bureau or office from which transferred when their services are no longer needed in the National Production Authority.

Section 7. Internal organization. The temporary internal organization of the National Production Authority shall consist of the following: (1) Administrator; (2) Deputy Administrator; (3) General Counsel; (4) Executive Officer; (5) Director of Public Information; (6) Office of Civilian Requirements; (7) Office of Labor Production; (8) Office of Manpower Requirements; (9) Office of Small Business; (10) Assistant Administrator for Program Determination; and (11) Assistant Administrator for Industry Operations.

"Section 8. Status in the Department.-The National Production Authority shall operate as a primary organization unit of the Department of Commerce and shall be administered in conformance with established Departmental policies, regulations and procedures as set forth in the Department of Commerce 'Manual of Orders.'

"Section 9. Records transfer.-All records remaining in the custody of the Department of Commerce relating to the War Production Board and its predecessor and successor agencies and transferred to the Department by Executive Order 9841 of April 23, 1947, are transferred to the custody and use of the National Production Authority."

EXECUTIVE ORDER NO. 10161

Sept. 9, 1950, 15 F. R. 6105

DELEGATION OF PRESIDENT'S FUNCTIONS

By virtue of the authority vested in me by the Constitution and statutes, including the Defense Production Act of 1950 [sections 2061-2166 of this Appendix] and as President of the United States and Commander in Chief of the armed forces, it is hereby ordered as follows:

PART I-PRIORITIES AND ALLOCATIONS

Section 101.-The functions conferred upon the President by Title I of the Defense Production Act of 1950 [sections 2071-2973 of this Appendix] are hereby delegated as follows:

(a) To the Secretary of the Interior with respect to petroleum, gas, solid fuels, and electric power.

(b) To the Secretary of Agriculture with respect to food, and with respect to the domestic distribution of farm equipment and commercial fertilizer.

(c) To that commissioner of the Interstate Commerce Commission who is responsible for the supervision of the Bureau of Service of the Commission, with

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respect to domestic transportation, storage, and port facilities, or the use thereof, but excluding air transport, coastwise, intercoastal, and overseas shipping.

(d) To the Secretary of Commerce with respect to all materials and facilities except as provided in paragraphs (a), (b), and (c) of this section 101. Sec. 102.-Each delegate referred to in section 101 of this Executive order shall, in connection with carrying out the priorities and allocations functions delegated to him by such section, (a) receive from appropriate agencies of the Government information relating to the direct and indirect military, other governmental, civilian, and foreign requirements for materials and facilities, (b) review and evaluate such requirements in the light of available materials and facilities, and (c) exercise his priorities and allocations powers in such manner as will in his judgment promote adequate supplies and their proper distribution. Sec. 103. (a) Each delegate referred to in section 101 of this Executive order shall be a claimant before the other such delegates, respective, in the case of materials and additional facilities deemed by the claimant delegate to be necessary for the provision of an adequate supply of the materials and facilities with respect to which delegation is made to the claimant delegate by the said section 101.

(b) Each delegate under section 101 of this Executive order may, with the approval of the Chairman of the National Security Resources Board, designate agencies and officers of the Government, additional to the claimants referred to in section 103 (a) of this Executive order, to be claimants before such delegate with respect to stated materials and facilities.

PART II-REQUISITIONING

Sec. 201. (a) Except as provided in section 201 (b) of this Executive order, the functions conferred upon the President by Title II of the Defense Production Act of 1950 [section 2081 of this Appendix] are hereby delegated to the officers to whom functions are delegated by section 101 of this Executive order, respectively, according to the designations of materials and facilities set forth in paragraphs (a), (b), (c), and (d) of the said section 101.

(b) The functions conferred upon the President by sections 201 (b) and 201 (c) of the Defense Production Act of 1950 [section 2081 (b), (c) of this Appendix] exclusive of determinations with respect to the termination of the need for the national defense of any property requisitioned under Title II of the said Act [section 2081 of this Appendix] are hereby delegated to the Administrator of General Services.

PART III—EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY Sec. 301.-The Department of the Army, the Department of the Navy, the Department of the Air Force, the Department of Commerce, the Department of the Interior, the Department of Agriculture, and the General Services Administration, in this Part referred to as guaranteeing agencies, and each delegate under section 101 of this Executive order shall develop and promote measures for the expansion of productive capacity and of production and supply of materials and facilities necessary for the national defense.

Sec. 302.-(a) Each guaranteeing agency is hereby authorized, in accordance with section 301 of the Defense Production Act of 1950 [section 2091 of this Appendix] subject to the provisions of this section, in order to expedite production and deliveries or services under Government contracts, and without regard to provisions of law relating to the making, performance, amendment, or modification of contracts, to guarantee in whole or in part any public or private financing institution (including any Federal Reserve Bank), by commitment to purchase, agreement to share losses, or otherwise, against loss of principal or interest on any loan, discount, or advance, or on any commitment in connection therewith, which may be made by such financing institution for the purpose of financing any contractor, subcontractor, or other person in connection with the performance, or in connection with or in contemplation of the termination, of any contract or other operation deemed by the guaranteeing agency to be necessary to expedite production and deliveries or services under Government contracts for the procurement of materials or the performance of services for the national defense.

(b) Each Federal Reserve Bank is hereby designated and authorized to act, on behalf of any guaranteeing agency, as fiscal agent of the United States in the making of such contracts of guarantee and in otherwise carrying out the

purposes of the said section 301 [section 2091 of this Appendix], in respect of private financing institutions.

(c) All actions and operations of Federal Reserve Banks, under authority of or pursuant to the said section 301 of the Defense Production Act of 1950 [section 2091 of this Appendix], shall be subject to the supervision of the Board of Governors of the Federal Reserve System. Said Board is hereby authorized, after consultation with the heads of the guaranteeing agencies, (1) to prescribe such regulations governing the actions and operations of fiscal agents hereunder as it may deem necessary, (2) to prescribe, either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with loans, discounts, advances, or commitments guaranteed by the guaranteeing agencies through such fiscal agents, and (3) to prescribe regulations governing the forms and to procedures (which shall be uniform to the extent practicable) to be utilized in connection with such guarantees.

Sec. 303.-Within such amounts of funds as the President shall have made available, and upon the certificate by the Secretary of the Interior in respect of metals and minerals (except as to paragraph (c) of this section), or by the Secretary of Agriculture in respect of lumber, or by the appropriate delegate referred to in section 101 of this Executive order in respect of other materials and facilities, or by such other officer or officers of the Government as the President may designate, as to the necessity for loans, purchases, or commitments, as the case may be:

(a) The Reconstruction Finance Corporation is hereby authorized and directed to make loans (including participations in, or guarantees of, loans) to private business enterprises (including research corporations not organized for profit) for the expansion of capacity, the development of technological processes, and the production of essential materials, including the exploration, development, and mining of strategic and critical metals and minerals, as authorized by and subject to section 302 of the Defense Production Act of 1950 [section 2092 of this Appendix].

(b) The Administrator of General Services is hereby authorized and directed to purchase and make commitments to purchase metals, minerals, and other raw materials, including liquid fuels, for Government use or resale, as authorized by and subject to section 303 of the said Act [section 2093 of this Appendix]: Provided, That the Secretary of Agriculture is also authorized to exercise the functions under section 303 [section 2093 of this Appendix] with respect to agricultural commodities.

(c) The Secretary of the Interior is hereby authorized and directed to encourage the exploration, development, and mining of critical and strategic minerals and metals, as authorized by and subject to the provisions of the said section 303 [section 2093 of this Appendix].

Sec. 304. The functions conferred upon the President by section 303 (d) of the Defense Production Act of 1950 [section 2092 (d) of this Appendix] with respect to the installation of additional equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the United States Government, and with respect to the installation of Governmentowned equipment in plants, factories, and other industrial facilities owned by private persons, are hereby delegated to the Administrator of General Services.

PART IV-ECONOMIC STABILIZATION

Sec. 401.-(a) There is hereby created a new and independent agency to be known as the Economic Stabilization Agency, hereafter in this Part referred to as the Agency. There shall be at the head of the Agency an Economic Stabilization Administrator, hereafter in this Part referred to as the Administrator, who shall be appointed by the President by and with the advice and consent of the Senate.

(b) The Administrator shall seek to preserve and maintain the stabilization of the economy. To this end he shall:

(1) Plan and develop both short and long-range price and wage stabilization policies and measures and create the necessary organization for their administration.

(2) Inform the public, agriculture, industry and labor concerning the need for stabilization and encourage and promote voluntary action to this end.

(3) Consult and advise with the Government officials responsible for procurement, production, manpower, and rent control, and for fiscal, credit and mone

tary policies, concerning measures within their jurisdiction which will assist stabilization.

(4) Establish price ceilings and stabilize wages and salaries where necessary. (e) The functions conferred upon the President by Title IV of the Defense Production Act of 1950 [sections 2101-2110 of this Appendix] are hereby delegated to the Administrator.

Sec. 402.-There shall be in the Agency a Director of Price Stabilization, who shall be appointed by the President by and with the advice and consent of the Senate, and who shall perform such functions with respect to price stabilization as may be determined by the Administrator.

Sec. 403.-(a) There shall be in the Agency a Wage Stabilization Board composed of nine members who shall be appointed by the President. Three of the members so appointed shall be representative of the public, three shall be representative of labor, and three shall be representative of business and industry. One of the members representing the public, to be designated by the President, shall be chairman of the Board.

(b) The Wage Stabilization Board shall make recommendations to the Administrator regarding the planning and development of wage stabilization policies and shall perform such further functions with respect to wage stabilization as may be determined by the Administrator after consultation with the Board. Sec. 404.-The Administrator is hereby designated to initiate such consultations and conferences with management, labor, and representatives of the Government and public as he deems appropriate and to advise the President of such action as may be called for in carrying out the provisions of Title V of the Defense Production Act of 1950 [sections 2121-2123 of this Appendix].

PART V.-REAL ESTATE CREDIT

Sec. 501.-(a) Subject to the provisions of section 501 (b) of this Executive order, the functions conferred upon the President by section 602 of the Defense Production Act of 1950 [section 2131 of this Appendix] are hereby delegated to the Board of Governors of the Federal Reserve System.

(b) The said Board shall obtain the concurrence of the Housing and Home Finance Administrator with respect to provisions relating to real estate construction credit involving residential property before prescribing changing, or suspending any real estate construction credit regulation pursuant to the authority of section 602 of the Defense Production Act of 1950 [section 2131 of this Appendix].

Sec. 502.-(a) The functions conferred upon the President by section 605 of the Defense Production Act of 1950 [section 2135 of this Appendix] to the extent that such functions relate to loans on real estate involving residential property, are hereby delegated to the Housing and Home Finance Administrator.

(b) In carrying out the functions delegated by section 502 (a) of this Executive order, and under the authority so delegated or under authority vested in him by any applicable law, the Administrator shall from time to time issue such regulations and take such other action as may be necessary to insure (1) that the restrictions imposed on real estate construction credit by the provisions of the regulations issued from time to time by the Board of Governors of the Federal Reserve System (with the concurrence of the Housing and Home Finance Administrator in the provisions of such regulations relating to credit involving residential property) under the authority delegated by section 501 of this Executive order shall be applicable to the fullest extent practicable with respect to loans on real estate (of the types referred to in section 605 of the Defense Production Act of 1950 [section 2135 of this Appendix]) involving residential property, and (2) that the relative credit preferences accorded to veterans under existing law are preserved in accordance with the provisions of section 605 of the Defense Production Act of 1950 [section 2135 of this Appendix].

PART VI-LABOR SUPPLY

Sec. 601.-The Secretary of Labor shall utilize the functions vested in him so as to meet most effectively the labor needs of defense industry and essential civilian employment, and to this end he shall:

(a) Assemble and analyze information on labor requirements for defense and other activities and on the supply of workers.

(b) Consult with and advise each delegate referred to in section 101 of this Executive order and each official exercising guarantee or loan functions under Part III of this Executive order concerning (1) the effect of contemplated actions

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