Public Law 81-774

DEFENSE PRODUCTION ACT OF 1950, 64 STAT. 798

(a) The Congress finds that - (1) the vitality of the industrial and technology base of the United States is a foundation of national security that provides the industrial and technological capabilities employed to meet national defense requirements, in peacetime and in time of national emergency; (2) in peacetime, the health of the industrial and technological base contributes to the technological superiority of United States defense equipment, which is a cornerstone of the national security strategy, and the efficiency with which defense equipment is developed and produced; (3) in times of crisis, a healthy industrial base will be able to effectively provide the graduated response needed to effectively meet the demands of the emergency; (4) in view of continuing international problems, the Nation's demonstrated reliance on imports of materials and components, and the need for measures to reduce defense production lead times and bottlenecks, and in order to provide for the national defense and national security, the United States defense mobilization preparedness effort continues to require the development of - (A) preparedness programs; (B) domestic defense industrial base improvement measures; (C) provisions for a graduated response to any threatening international or military situation; (D) the expansion of domestic productive capacity beyond the levels needed to meet the civilian demand; and (E) some diversion of certain materials and facilities from civilian use to military and related purposes. (5) to meet the requirements referred to in this subsection, this Act [sections 2061 to 2171 of this Appendix] affords to the President an array of authorities to shape defense preparedness programs and to take appropriate steps to maintain and enhance the defense industrial and technological base; (6) the activities referred to in this subsection are needed in order to - (A) improve domestic defense industrial base efficiency and responsiveness; (B) reduce the time required for industrial mobilization in the event of an attack on the United States; or (C) to respond to actions occurring outside of the United

States which could result in the termination or reduction of the availability of strategic and critical materials, including energy, and which could adversely affect the national defense preparedness of the United States; (7) in order to ensure national defense preparedness, which is essential to national security, it is necessary and appropriate to assure the availability of domestic energy supplies for national defense needs;(8) to further assure the adequate maintenance of the defense industrial base, to the maximum extent possible, such supplies should be augmented through reliance on renewable fuels, including solar, geothermal, and wind energy and ethanol and its derivatives, and on energy conservation measures; (9) the domestic defense industrial base is a component part of the core industrial capacity of the Nation (10) much of the industrial capacity which is relied upon by the Federal Government for military production and other defense-related purposes is deeply and directly influenced by (A) the overall competitiveness of the United States industrial economy; and (B) the ability of United States industry, in general, to produce internationally competitive products and operate profitably while maintaining adequate research and development to preserve that competitive edge in the future, with respect to military and civilian production; (11) the domestic defense industrial base is developing a growing dependency on foreign sources for critical components and materials used in manufacturing and assembling major weapons systems for the national defense; (12) such dependence is threatening the capability of many critical industries to respond rapidly to defense production needs in the event of war or other hostilities or diplomatic confrontation; and (13) the inability of United States industry, especially smaller subcontractors and suppliers, to provide vital parts and components and other materials would impair our ability to sustain United States Armed Forces in combat for longer than a short period.

Short Title This Act [sections 2061 to 2171 of this Appendix], divided into titles, may be cited as "the Defense Production Act of 1950".-SOURCE- (Sept. 8, 1950, ch. 932, Sec. 1, 64 Stat. 798.)


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