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STATEMENT OF
HONORABLE EARRIS EREAIT
DIRECTOR, OFFICE OF EMERGENCY Pumas
BEFORE THE
INDEPENDENT OFFICES SUBCOHHITTEE
SENATE APPROPRIATIONS CMITTEE
JULY 18, 1967
HR. CHAIRMAN AND WERS OF THIS OMITTEE
I am honored to appear before you again to present the Office of
Emergency Plannings Budget Request for Fiscal Year 1968.
The Office of Emergency Planning's responsibilities are many and
varied, international and domestic, and encompass the whole spectrum of
nonmilitary preparedness. Our Budget request reflects the requirements
of the war in Vietnam_ without neglecting readiness to cope with the
effects of other international crises such as the Mideast and those
entailing the possibility of nuclear war. Attention is being given to
establishing and maintaining optimum capability for monitoring
evaluating. and projecting the status of the Nations resources to meet
all types of emergencies.
I believe that our Budget for Fiscal Year 1968 provides a detailed
picture of the Agency's needs. He have furnished you. by my letter of
May 26, detailed justification as to why we need the restoration of the
House cut. Therefore, I shall concentrate on highlighting accomplishments
and significant changes in our programs which affect budget requirements
for the coming year. General OConnell will discuss the Telecommunications
request separately.
GE? is fully aware of the need for restraint in spending; and. other
than Disaster Relief, no supplemental funds were requested for I! 67. we
absorbed the $10k.000 cost of the FY 67 pay raise by a combination of delays
in filling vacancies and more effective utilization of funds and staff.
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Mr. Chairman and Members of this Conudttee It is our firm belief
that the best security we can provide for the American people is a
vigorous and responsible partnership of military and nonmilitary pre-
paredness. We must have a civilian as well as a military capability
to cope with any emergency that could conceivably confront this country.
OEP's plans and programs are designed and administered with this awesome
responsibility always in mind. Our programs are flexible and are
constantly updated to keep pace with the ever-changing political,
economic and military conditions.
I believe that the Budget estimates before you represent both a
just and a minimal proposal to assure the best total nonmilitary
preparedness for the people of this Nation and for discharging the
total responsibilities assigned to me and the Office of Emergency
Planning.
Thank you.
We also plan to absorb the workload and any new requirenents for FY 1968.
Accordingly, as was true last year. this year's budget again does not seek
any increase in staff. but only a small increase in funding of 880.000.
08? IIOIGAIIZKIIOI
To carry out 029'. prescribed responsibilities in the loot effective
manner we have recently inplenented a reorganisation. The new organisation
did not require an increase in our ceiling nor a suhstantial turn-over in
personnel; but it did require seeking new talent in specialized areas.
Hhat we did use to evaluate our responsibilities and objectives. correlate
these results with the expertise uhich no had on board and cone up with
an organisation for the nost effective utilization of talent to fulfill
clearly defined goals.
The national Resources Analysis Center (usac) is the heart of our
new organisation. Hith the assistance of conputers and our extensive
data bank. skilled personnel are tackling najor prohlens in a systenatic
nanner e-ploying the latest scientific nethods.
IIAC is analyzing the impact of current and proposed civilian and
military prograns on the 0.8. resource position and developing alter-
native policies to meet national security require-ants. He will
continue to inprove our role as coordinator of the entire Govern-cut s
nonnilitary preparedness progran. using the latest cost effectiveness
techniques to evaluate our energency preparedness position.
DISASTER REL!!!
In the affairs of major peacetime disaster. OBP continues its active
and. we believe. effectiVe direction of the Federal Disaster Act. PL 81-875.
for the President.
In the past five years. we have acted in 105 major disasters.
involving nearly every State and Territory. assisting them and their
communities in the problems of emergency repair. temporary shelter.
restoration of public facilities and clearance of debris. Although our
States have been subjected to many elements of bad weather during 1967.
only five disaster emergencies to date have required Presidential
declarations and PL 875 assistance. He have taken advantage of this
respite. and with additional direction of Congress under Public law
89-769, we are emphasizing increased preparedness of all Governments
to minimize the effects of major disasters.
CONTINUITY OF GOVERNMENT
OBP is responsible for issuing policy guidance to assure that
Federal, State and local governments can operate effectively under duly
constitutedleadership in any emergency situation, including nuclear
attack.
Preparations to preserve a viable democratic government include
programs which will provide for
l. Adequate depth oi succession to key government officials.
2. Readiness to respond to emergency situations.
3. The movement of key policy officials and other essential personneL
4. The preservation of vital government records.
5. Reliable emergency communications capability.
6. Emergency facilities.
STATE MANAGEMENT OF RESOURCES
The OE? sponsored program for State management of resources continued
to move forward last year with the negotiation of eight additional contracts
with seven states and the District of Columbia to bring the total to 52
jurisdictions under the program. This program prepares the States to manage
their resources in the national interest in a postattack situation. Thru
effective management we returned one-half million dollars. out of a three
million dollar appropriation, to the Treasury. we do not request any
additional funds for this program in FY 1968. This phase of the program
will be completed by December 31 and OEP will continue to work with the
states in an effort to maintain their Emergency Resource Management Plans
in a constant state of readiness.
NATIONAL DEFENSE EXECUTIVE RESERVE
Under OEPs guidance the Nation's National Defense Executive Reserve,
consisting of top level executives from the private sector, increased to
3900. In the event of an emergency these Reservists would fill key positions
in the Federal Government, supplementing the staff of the ten departments
and agencies to which they are assigned. Annual Regional conferences
and, periodically a National Conference, provide training and information
to the reservists concerning possible emergency duties.
Some of these Reservists and the OE? staff would provide the core
of the recently developed Office of Defense Resources (ODR), and others
would help staff the emergency agencies for Economic Stabilization and
wartime Censorship. Economic Stabilization and wartime Censorship
programs have been explained to Executive Reservists in recent conferences
and are to be covered again in some detail in the forthcoming national
conference.
STOCXIILB MANAGEMENT
Under OBP's management, the Nations reserve of strategic materials
in four stockpiles is mowing into a realistic position to reflect projected
emergency needs based on changing military and domestic requirements. The
present stockpiles have a market value of 6.4 billion dollars. In Fiscal
Year 1966 GSA. at OBPs direction and in accord with legislative and
market conditions. sold more than one billion dollars worth of excess
materials at a profit of 129.7 million dollars. These disposals were
more than double the dollar amount for any previous year and nearly equal
the cumulative total for all prior years. In Fiscal Year 1967 disposals
totaled $667 million. Fiscal year 1967 saw 08? revise conventional var
stockpile objectives for seven materials and announce nuclear our
objectives for 77 basic materials comprising the National stockpile.
ORB vorked closely with an ad hoc committee from the National Academy
of Sciences to review stockpile policy. The committee's recommendations
were adopted in establishing conventional stockpile objectives.
ECONOMIC IHFACT
We have completed our first computer runs projecting the Viet Nam
Wat's impact on the domestic economy at various levels of military involve-
ment. The Council of Economic Advisors and other government organizations
are working with us to improve the dataaod methodology. We have therefore
developed a capability for assessing the effect on our economy of war
emergency contingencies at various hypothetical levels. in the coming year,
we anticipate improving this capability so that more sophisticated assess-
ments can be accomplished and appropriate government responses developed.
CURRENT ENERGBKCY ACTIONS
Events sometimes deeand that emergency plans he ectivated. In
addition to the Vietnamese war. the current Middle lest crisis provides
an example.
The closing of the Sues Canal and pipelines to the lediterranean.
the reduced level of Middle East oil production, and the unhergo on
oil shipeents from the Middle East to selected countries of the free
world, threaten the national security interests of the United States.
While v.5. demands on Middle East oil are not large. a failure to main"
tain the flow of oil to Hestern Europe could have serious adverse effects
on our national security.
Last month, I attended a meeting of the NATO Senior Civil Emergency
Plans Committee. during which the harmful effect on certain of our HATO
Allies of continued reduced deliveries of Middle East oil use eade
abundantly clear. The interrelationships between our national security
and that of our NATO Allies is the cornerstone of the organization.
A distinct possibility that a reduced oil flow vill continue nest
assuredly exists. herefore, under the authority of the Defense
Production Act of 1950. the Secretary of the Interior convened the
____,..
Foreign retroleum Supply Committee end requested it to develop a Plan
of Action. Necessary steps included my approval; approvel of the
__
Attorney General to provide immunity from the anti-
trust la :
consultation with the Federal Trade Counission. We coordinated this
action with the Department of Transportation, Budget Bureau, Council of
Economic Advisors, Maritime Administration, and the Labor Department.
The Department of State and the Department of Defense also participated.
It is hoped that any serious adverse effects resulting from a continua-
tion of the Middle East situation can be avoided through this means.
The Office of Emergency Planning will continue to supervise this entire
operation in accordance with the law.
The Plan of Action established an Emergency Petroleum Supply
Committee to evaluate the situation, develop pertinent data and recom-
mend actions to be taken. The Supply and Distribution and Transportation
subcommittees are now meeting in New York. we arranged for other Federal
agency participation at these meetings when necessary.
FEDERAL-STATE RELATIONS
Let me turn briefly to the subject of Federal-State relations and
to my role as "Ambassador to the Governors." The President was aware,
as the members of this Committee were, that there was a need for a more
active partnership between the Federal and State governments. As a
former Governor I take special satisfaction in the development of this
more active partnership.
Last January, at the direction of President Johnson, a team of
high federal officials headed by myself was made available to the States
to study the management of partnership program.
Our principal goal was. and is. to make certain that every governor
knows about each federal program at work in his state; that he has direct
communication with federal officials involved and is managing his end of
the partnership. Since January we have conferred with forty governors
in their capitals.
DELEGATE AGENCIES
Before concluding, I would like to speak for those Agencies and
activities previously included in OEP's budget submission under the
appropriation title of "Civil Defense and Defense Hobilisation innctions
of Federal Agencies". It has been your committee's feeling in the past that
the emergency preparedness functions of these agencies should be included
in their own agency budget requests. This year, with OEP's concurrence,
the Bureau of the Budget instructed the departments and agencies to
request these funds as part of their regular appropriations requests.
As you know. the House Appropriations Committee felt that they could
better review the requests as a single package in the Independent Offices
subcommittee and preferred to continue funding this activity thru the
Office of Emergency Planning.
As a result, we were asked to informally consolidate the emergency
preparedness requests of the agencies into one summary to be heard by
the House. This we did and have given copies of that sumary to this
connittee. At the time that our sumry was prepared, the budget for the
new Department of Transportation had not been submitted to the Congress.
The information for those emergency preparedness transportation functions
preViously performed by the Department of Commerce is now available. We
have revised the summary to include this activity and this revision is
attached to your copy of the opening statement.
I wish to emphasize our full support of these requests and strongly
urge the inclusion of $3,889.000 for these functions. The impact of the
present military operations in Vietnam and other international crises
upon the activities of may of the Federal departments and agencies makes the
proposed House reduction of almost 25 percent disastrous.
The total request for these eight agencies has been reduced from
$4.451 million in FY 66 to sa.o million in FY 67 and to $3.889 million
in FY 68. I should like to point out that a substantial portion of
these funds will be used in direct support of procurement of ammunition
and other military items required for the prosecution of the var in
Viet Nam. The Business and Defense Services Administration of the
Department of Commerce, for example, has had a substantial increase in
the number of requests from defense contractors for special assistance
in obtaining hard-to-get materials in time to meet their delivery schedules.
Other agencies. such as Interior and Labor, have had substantial increases
in their work to support limited war activities.
He have with us representatives from each of the Agencies included in
the iniormsl sununxyu They will be glad to answer any questions pertaining
to their emergency preparedness activity. Their requests were prepared
in consistency with our overall program guidance to the Federal departments
and agencies. He regard them as essential to the continuing participation
and role of these departments and agencies in our total program of civil
emergency preparedness.
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