tion, expansion, or improvement of any industrial facilities, and in the procurement of goods and services, under this or any other Act, each department and agency of the Executive Branch shall apply, under the coordination of the Office of Defense Mobilization, when practicable and consistent with existing law and the desirability for maintaining a sound economy, the principle of the geographical dispersal of such facilities in the interest of national defense. Nothing contained in this paragraph shall preclude the use of existing industrial facilities. (Sept. 8, 1950, ch. 932, § 2, 64 Stat. 798; June 30, 1953, ch. 171, § 2, 67 Stat. 129; Aug. 9, 1955, ch. 655, § 2, 69 Stat. 580; June 29, 1956, ch. 474, § 4, 70 Stat. 408.) REFERENCES IN TEXT This Act, referred to in the text, means the Defense Production Act of 1950, which is classified to sections 2061. 2062, 2071-2073, 2091-2094, 2151-2163 and 2164-2168 of this Appendix. AMENDMENTS 1956 Act June 29, 1956 inserted paragraph relating to encouragement of the geographical dispersal of the industrial facilities of the United States. 1955-Act Aug. 9, 1955 provided that the mobilization effort requires the development of preparedness programs and the expansion of productive capacity and supply in order to reduce the time required for full mobilization. 1953-Act June 30, 1953, amended section generally to make it conform to the more limited scope of sections 2061, 2062, 2071-2073, 2091-2094, 2151-2163 and 21642168 of this Appendix. EFFECTIVE DATE OF 1955 AMENDMENT Section 11 of act Aug. 9, 1955, provided that the amendments made by act Aug. 9, 1955, to sections 2062, 2093 (g), 2151 (c), (d), 2158 (b), (d), (e), 2160 (b), (e-g), 2162 (c), (e), and 2166 (a) of this Appendix shall take effect as of the close of July 31, 1955. SHORT TITLE OF 1955 AMENDMENT Section 1 of act Aug. 9, 1955, provided that act Aug. 9, 1955, which enacted amendments to this section and sections 2093(g), 2151 (c), (d), 2158 (b), (d), (e), 2160 (b), (eg). 2162 (c), (e), and 2166(a) of this Appendix, should be popularly known as the "Defense Production Act Amendments of 1955". SHORT TITLE OF 1953 AMENDMENT Section 1 of act June 30, 1953, provided that act June 30, 1953, which enacted amendments to this section and sections 2071, 2091(a), 2093 (b), (f), 2151(c), 2152(d), 2155(e), former section 2163a, and section 2166(a) of this Appendix, should be popularly known as the "Defense Production Act Amendments of 1953." TRANSFER OF FUNCTIONS The Office of Defense Mobilization was consolidated with the Federal Civil Defense Administration to form a new agency in the Executive Office of the President to be known as the Office of Emergency Preparedness by 1958 Reorg. Plan No. 1, eff. July 1, 1958, 23 F.R. 4991, 72 Stat. 1799, as amended, set out as a note under section 2271 of this Appendix. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2061, 2072, 2093, 2151 to 2163, 2164 to 2166, 2182, 2183 of this Appendix. TITLE I-PRIORITIES AND ALLOCATIONS § 2071. Priority in contracts and orders. The President is authorized (1) to require that performance under contracts or 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. (b) Critical and strategic materials. The powers granted in this section shall not be used to control the general distribution of any material in the civilian market unless the President finds (1) that such material is a scarce and critical material essential to the national defense, and (2) that the requirements of the national defense for such material cannot otherwise be met without creating a significant dislocation of the normal distribution of such material in the civilian market to such a degree as to create appreciable hardship. (Sept. 8, 1950, ch. 932, title I, § 101, 64 Stat. 799; July 31, 1951, ch. 275, title I, § 101(a), 65 Stat. 132; June 30, 1952, ch. 530, title I, §§ 101, 102, 66 Stat. 296; June 30, 1953, ch. 171, § 3, 67 Stat. 129.) AMENDMENTS 1953-Subsec. (a). Act June 30, 1953 eliminated the provisions which related to the slaughtering of livestock and allocation of meat and meat products. Subsec. (b). Act June 30, 1953, retained priorities and allocation authority for defense production but generally to discontinue such authority with respect to the civilian market except in respect to the civilian market except in the special cases where, because of shortages and demands of the defense effort, there otherwise would be a significant dislocation in the civilian market resulting in appreciable hardship. 1952-Act June 30, 1952, redesignated former section subsec. (a) and added provisions relating to meat and meat products, and added subsec. (b). 1951-Act July 31, 1951, added provision relating to slaughtering of livestock. SHORT TITLE Section 1 of act June 30, 1952, provided that act June 30, 1952, which amended the Defense Production Act of 1950, generally, should be popularly known as the "Defense Production Act Amendments of 1952". For distribution of act June 30, 1952, see Tables Volume. Section 1 of act July 31, 1951, provided that act July 31, 1951, which enacted amendments of sections 1884, 1892-1896, 1898, 1899, 2071, 2072, 2074, 2081, 2093, 2094, 2102, 2103, 2105, 2109, 2122, 2123, 2131, 2133, 2135, 2151, 2153-2156, 2160, and 2163a-2166 of this Appendix and repealing section 694f of Title 38, Pensions, Bonuses, and Veterans' Relief, should be known as the "Defense Production Act Amendments of 1951." TERMINATION DATE Termination of this section on June 30, 1972, see section 2166 (a) of this Appendix. CROSS REFERENCES Discrimination against orders or contracts affected by priorities or allocations prohibited, see section 2157 of this Appendix. Ex. ORD. No. 10161 Ex. Ord. No. 10161, Sept. 9, 1950, 15 F. R. 6105, as amended by Ex. Ord. No. 10200, Jan. 3, 1951, 16 F. R. 61; Ex. Ord. No. 10233, Apr. 23, 1951, 16 F. R. 3503; Ex. Ord. No. 10281, Aug. 28, 1951, 16 F. R. 8789; Ex. Ord. No. 10301, Nov. 5, 1951, 16 F. R. 11257; Ex. Ord. No. 10324, Feb. 6, 1952, 17 F. R. 1171; Ex. Ord. No. 10359, June 9, 1952, 17 F. R. 5269; Ex. Ord. No. 10373, July 15, 1952, 17 F. R. 6425; Ex. Ord. No. 10377, July 28, 1952, 17 F. R. 6891; Ex. Ord. No. 10390, Sept. 2, 1952, 17 F. R. 7995; and Ex. Ord. No. 10433, Feb. 4, 1953, 18 F.R. 761, which related to delegation of President's functions, was revoked by Ex. Ord. No. 10480, Aug. 18, 1953, 18 F.R. 4939 set out as a note under section 2153 of this Appendix. ESTABLISHMENT AND FUNCTIONS OF NATIONAL PRODUCTION AUTHORITY 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 [see 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 in the Appendix to 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 10161, 'Delegating Certain Functions of the President Under the Defense Production Act of 1950 [see 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 Administrator 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 materals 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 sub-groups. "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 Induɛtry 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. "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." SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2061, 2072, 2073, 2093, 2151 to 2163, 2164 to 2166, 2182, 2183 of this Appendix. § 2072. Hoarding of designated scarce materials. In order to prevent hoarding, no person shall accumulate (1) in excess of the reasonable demands of business, personal, or home consumption, or (2) for the purpose of resale at prices in excess of prevailing market prices, materials which have been designated by the President as scarce materials or materials the supply of which would be threatened by such accumulation. The President shall order published in the Federal Register, and in such other manner as he may deem appropriate, every designation of materials the accumulation of which is unlawful and any withdrawal of such designation. In making such designations the President may prescribe such conditions with respect to the accumulation of materials in excess of the reasonable demands of business, personal, or home consumption as he deems necessary to carry out the objectives of this Act [sections 2061, 2062, 2071 to 2073, 2091 to 2094, 2151 to 2163 and 2164 to 2168 of this Appendix]. This section shall not be construed to limit the authority contained in sections 101 and 704 of this Act [sections 2071 and 2154 of this Appendix]. (Sept. 8, 1950, ch. 932, title I, § 102, 64 Stat. 799; July 31, 1951, ch. 275, title I, § 101 (b), 65 Stat. 132.) AMENDMENTS 1951-Act July 31, 1951, authorized the President to prescribe conditions and exceptions allowing the maintenance of substantial inventories of critical materials in certain cases. TERMINATION DATE Termination of this section on June 30, 1972, see section 2166(a) of this Appendix. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2061, 2073, 2093, 2151 to 2163, 2164 to 2166, 2182, 2183 of this Appendix. § 2073. Penalties. Any person who willfully performs any act prohibited, or willfully fails to perform any act required, by the provisions of this title [sections 2071 to 2073 of this Appendix] or any rule, regulation, or order thereunder, shall, upon conviction, be fined not more than $10,000 or imprisoned for not more than one year, or both. (Sept. 8, 1950, ch. 932, title I, § 103, 64 Stat. 799.) TERMINATION DATE Termination of this section on June 30, 1972, see section 2166(a) of this Appendix. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2061, 2072, 2093, 2151 to 2163, 2164 to 2166, 2182, 2183 of this Appendix. § 2074. Limitation on import of fats and oils; termination date; exercise of authority. CODIFICATION Section, act Sept. 8, 1950, ch. 932, title I, § 104, as added July 31, 1951, ch. 275, title I, § 101 (c), 65 Stat. 132, and amended June 30, 1952, ch. 530, § 103, 66 Stat. 297, terminated on June 30, 1953 by the terms of section 2166 (a) of this Appendix, and has been omitted from the Code. TITLE II-AUTHORITY TO REQUISITION AND CONDEMN AMENDMENTS 1951-Act July 31, 1951, ch. 275, title I, § 102 (a), 65 Stat. 132, in heading added "And Condemn". § 2081. Requisition of property needed for national defense. CODIFICATION Section, acts Sept. 8, 1950, ch. 932, title II, § 201, 64 Stat. 799; July 31, 1951, ch. 275, title I, § 102 (b), 65 Stat. 132, terminated on June 30, 1953, by the terms of section 2166 (a) of this Appendix, and has been omitted from the Code. TITLE III-EXPANSION OF PRODUCTIVE § 2091. Loan guarantees. (a) Purpose of loans; guaranteeing agencies. In order to expedite production and deliveries or services under Government contracts, the President may authorize, subject to such regulations as he may prescribe, the Department of the Army, the Department of the Navy, the Department of the Air Force, the Department of Commerce, and such other agencies of the United States engaged in procurement for the national defense as he may designate (hereinafter referred to as "guaranteeing agencies"), 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 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, or for the purpose of financing any contractor, subcontractor, or other person in connection with or in contemplation of the termination, in the interest of the United States, of any contract made for the national defense; but no small-business concern (as defined in section 714 (a) (1) of this Act) shall be held ineligible for the issuance of such a guaranty by reason of alternative sources of supply. (b) Fiscal agents; accountability; reimbursement. Any Federal agency or any Federal Reserve bank, when designated by the President, is 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 this section. All such funds as may be necessary to enable any such fiscal agent to carry out any guarantee made by it on behalf of any guaranteeing agency shall be supplied and disbursed by or under authority from such guaranteeing agency. No such fiscal agent shall have any responsibility or accountability except as agent in taking any action pursuant to or under authority of the provisions of this section. Each such fiscal agent shall be reimbursed by each guaranteeing agency for all expenses and losses incurred by such fiscal agent in acting as agent on behalf of such guaranteeing agency, including among such expenses, notwithstanding any other provision of law, attorneys' fees and expenses of litigation. (c) Supervision; interest, fees, procedures. All actions and operations of such fiscal agents under authority of or pursuant to this section shall be subject to the supervision of the President, and to such regulations as he may prescribe; and the President is authorized 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 to prescribe regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be utilized in connection with such guarantees. (d) Funds available for guarantees. Each guaranteeing agency is authorized to use for the purposes of this section any funds which have heretofore been appropriated or allocated or which hereafter may be appropriated or allocated to it, or which are or may become available to it, for such purposes or for the purpose of meeting the necessities of the national defense. (e) Maximum obligation; prevention of personal financial insolvency or bankruptcy. (1) Except with the approval of the Congress, the maximum obligation of any guaranteeing agency under any loan, discount, advance, or commitment in connection therewith, entered into under this section shall not exceed $20,000,000. (2) The authority conferred by this section shall not be used primarily to prevent the financial insolvency or bankruptcy of any person, unless (A) the President certifies that the insolvency or bankruptcy would have a direct and substantially adverse effect upon defense production; and (B) a copy of such certification, together with a detailed justification thereof, is tra mitted to the Congress and to the Committees on Banking and Currency of the respective Houses at least ten days prior to the exercise of that authority for such use. (Sept. 8, 1950, ch. 932, title III, § 301, 64 Stat. 800; June 30, 1953, ch. 171, § 4, 67 Stat. 129; Aug. 15, 1970, Pub. L. 91-379, title I, § 104, 84 Stat. 799.) REFERENCES IN TEXT Section "714(a)(1) of this Act", referred to in subser (a), was section 714(a) (1) of act Sept. 8, 1950, as added by act July 31, 1951, ch. 275, title I. § 110(a), 65 Stat. 139. Section 714 was formerly classified to section 2163a of this title, having since been omitted from the code as it terminated on July 31, 1953 by the terms of section 2166(a) of this Appendix. See Codification note under former section 2163a. The particular provisions in subsec. (a) (1) thereof, which subsection was not amended by subsequent acts previous to its termination and omission defined a small-business concern as follows: "For the purposes of this section [former section 2163a], a small-business concern shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation. The Administration [Small Defense Plants Administration created by former section 2163a], in making a detailed definition, may use these criteria, among others: independency of ownership and operation, number of employees, dollar volume of business, and nondominance in its field." AMENDMENTS 1970 Subsec. (e). Pub. L. 91-379 added subsec. (e). 1953-Subsec. (a). Act June 30, 1953, made it clear that Government guaranties of credit may be made under this section in connection with the termination of Government contracts, and to provide that no small-business concern shall be denied a guaranty merely because an alternative source of supply exists for the item to be procured on the Government contract involved. TERMINATION DATE Termination of this section on June 30, 1972, see section 2166(a) of this Appendix. EXECUTIVE ORDER NO. 10223 Ex. Ord. No. 10223, Mar. 12, 1951, 16 F.R. 2247, providing for the performance of certain functions under act Sept. 8, 1950, was revoked by section 404 of Ex. Ord. No. 10281, Aug. 28, 1951, 16 F.R. 8789. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2061, 2072, 2093, 2151 to 2163, 2164 to 2166, 2182, 2183 of this Appendix. § 2092. Loans to private business enterprises. To expedite production and deliveries or services to aid in carrying out Government contracts for the procurement of materials or the performance of services for the national defense, the President may make provision for 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, or the production of essential materials, including the exploration, development, and mining of strategic and critical metals and minerals, and manufacture of newsprint. Such loans may be made without regard to the limitations of existing law and on such terms and conditions as the President deems necessary, except that financial assistance may be extended only to the extent that it is not otherwise available on reasonable terms. (Sept. 8, 1950, ch. 932, title III, § 302, 64 Stat. 801; June 30, 1952, ch. 530, title I, § 104, 66 Stat. 298.) AMENDMENTS 1952-Act June 30, 1952 brought the manufacture of newsprint within its provisions. TERMINATION DATE Termination of this section on June 30, 1972, see section 2166(a) of this Appendix. EXECUTIVE ORDER NO. 10634. LOANS FOR FACILITIES Ex. Ord. No. 10634, Aug. 31, 1955, 20 F.R. 6433, as amended by Ex. Ord. No. 10773, July 1, 1958, 23 F.R. 5061; Ex Ord. No. 10782, Sept. 6, 1958, 23 F.R. 6971, provided: By virtue of the authority vested in me by the Defense Production Act of 1950, as amended [sections 2061, 2062, 2071-2073, 2091-2094, 2151-2163 and 2164-2168 of this Appendix], and as President of the United States, it is hereby ordered as follows: Whenever financial assistance is not otherwise available on reasonable terms, provision may be made for loans (including participations in, or guarantees of, loans) under section 302 of the Defense Production Act of 1950, as amended [this section], to aid in carrying out the reconstruction, rehabilitation, or replacement of facilities which are destroyed or damaged by major disaster as defined and determined under the provisions of the Act entitled, "An Act to authorize Federal assistance to States or local Governments in major disasters, and for other purposes" (64 Stat. 1109) [Chapter 15 of Title 42], whenever such facilities are required for national defense as determined by the Director of the Office of Emergency Planning. DWIGHT D. EISENHOWER SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 2061, 2072, 2093, 2094, 2151 to 2163, 2164 to 2168, 2182, 2183 of this Appendix. § 2093. Purchase of raw materials and installation of equipment. (a) Purchases for use or resale; development of strategic minerals and metals; agricultural commodities; termination date. To assist in carrying out the objectives of this Act [sections 2061, 2062, 2071 to 2073, 2091 to 2094, 2151 to 2163 and 2164 to 2168 of this Appendix], the President may make provision (1) for purchases of or commitments to purchase metals, minerals, and other materials, for Government use or resale; and (2) for the encouragement of exploration, development, and mining of critical and strategic minerals and metals: Provided, however, That purchases for resale under this subsection shall not include that part of the supply of an agricultural commodity which is domestically produced except insofar as such domestically produced supply may be purchased for resale for industrial uses or stockpiling, and no commodity purchased under this subsection shall be sold at less than the established ceiling price for such commodity (except that minerals and metals shall not be sold at less than the established ceiling price, or the current domestic market price, whichever is lower), or, if no ceiling price has been established, the higher of the following: (i) the current domestic market price for such commodity, or (ii) the minimum sale price established for agricultural commodities owned or controlled by the Commodity Credit Corporation as provided in section 407 of Public Law 439, Eighty-first Congress [section 1427 of Title 71: Provided further, however, That no purchase or commitment to purchase any imported agricultural commodity shall be made calling for delivery more than one year after the expiration of this Act [June 30, 1952]. (b) Terms and conditions of purchase. Subject to the limitations in subsection (a) of this section, purchases and commitments to purchase and sales under such subsection may be made without regard to the limitations of existing law, for such quantities, and on such terms and conditions, including advance payments, and for such periods, but not extending beyond June 30, 1975, as the President deems necessary, except that purchases or commitments to purchase involving higher than established ceiling prices (or if there be no established ceiling prices, currently prevailing market prices) or anticipated loss on resale shall not be made unless it is determined that supply of the materials could not be effectively increased at lower prices or on terms more favorable to the Government or that such purchases are necessary to assure the availability to the United States of overseas supplies. (c) Subsidy payments on domestically produced materials; exclusion of agricultural products. If the President finds (1) that under generally fair and equitable ceiling prices for any raw or nonprocessed material, there will result a decrease in supplies from highcosts sources of such material, and that the continuation of such supplies is necessary to carry out the objectives of the Act [sections 2061, 2062, 2071 to 2073, 2091 to 2094, 2151 to 2163 and 2164 to 2168 of this Appendix]; or (2) that an increase in cost of transportation is temporary in character and threatens to impair maximum production or supply in any area at stable prices of any materials; he may make provision for subsidy payments on any such domestically produced material other than an agricultural commodity in such amounts and in such manner (including purchases of such material and its resale at a loss without regard to the limitations of existing law), and on such terms and conditions, as he determines to be necessary to insure that supplies from such high-cost sources are continued, or that maximum production or supply in such area at stable prices of such materials is maintained, as the case may be. (d) Transportation, storage, and processing. The procurement power granted to the President by this section shall include the power to transport and store and have processed and refined, any materials procured under this section. (e) Installation of equipment in industrial facilities. When in his judgment it will aid the national defense, the President is authorized to install additional equipment, facilities, processes or improve ments to plants, factories, and other industrial facilities owned by the United States Government, and to install government-owned equipment in plants, factories, and other industrial facilities owned by private persons. (f) Transfer of excess materials to national stockpile. Notwithstanding any other provision of law to the contrary, metals, minerals, and materials acquired pursuant to the provisions of this section which, in the judgment of the President, are excess to the needs of programs under this Act [sections 2061, 2062, 2071 to 2073, 2091 to 2094, 2151 to 2163 and 2164 to 2168 of this Appendix], shall be transferred to the national stockpile established pursuant to the Act of June 7, 1939, as amended [sections 98-98h of Title 501, when the President deems such action to be in the public interest. Transfers made pursuant to this subsection shall be made without charge against or reimbursement from funds available under such Act of June 7, 1939 [sections 98 to 98h of Title 501, as amended, except that costs incident to such transfer other than acquisition costs shall be paid or reimbursed from such funds, and the acquisition costs of such metals, minerals, and materials transferred shall be deemed to be net losses incurred by the transferring agency and the notes payable issued to the Secretary of the Treasury representing the amounts thereof shall be canceled. Upon the cancellation of any such notes the aggregate amount of borrowing which may be outstanding at any one time under section 304 (b) of this Act, as amended [section 2094 (b) of this Appendix], shall be reduced in an amount equal to the amount of any notes so canceled. (g) Development of substitutes for strategic and critical materials. When in his judgment it will aid the national defense, and upon a certification by the Secretary of Agriculture or the Secretary of the Interior that a particular strategic and critical material is likely to be in short supply in time of war or other national emergency, the President may make provision for the development of substitutes for such strategic and critical materials. (Sept. 8, 1950, ch. 932, title III, § 303, 64 Stat. 801; July 31, 1951, ch. 275, title I, § 103 (a), 65 Stat. 133; June 30, 1953, ch. 171, §§ 5, 6, 67 Stat. 130; Aug. 9, 1955, ch. 655, § 3, 69 Stat. 580; June 29, 1956, ch. 474, § 2, 70 Stat. 408; June 30, 1964, Pub. L. 88-343, § 2, 78 Stat. 235.) AMENDMENTS 1964 Subsec. (b). Pub. L. 88-343 substituted "June 30, 1975" for "June 30, 1965." 1956-Subsec. (b). Act June 29, 1956 substituted "June 30, 1965" for "June 30, 1963". 1955 Subsec. (g). Act Aug. 9, 1955 added subsec. (g). 1953-Subsec. (b). Act June 30, 1953, § 5, substituted "1963" for "1962". Subsec. (f). Act June 30, 1953, § 6 added subsec. (f). 1951-Act July 31, 1951, amended section generally to broaden the authority under this section to include materials generally, to continue the prohibition against resale of domestic agricultural commodities except for industrial uses or stockpiling but eliminated it as to imported agricultural commodities, to provide that minerals and metals purchased under subsec. (a) may be sold at less than the established ceiling price, but not less than the current domestic market price, to limit the provision barring contracts calling for delivery more than one year after the expiration of this section to imported |