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Harrigan, Anthony H., president, U.S. Business and Industrial Council

Norment, Richard B., executive director, American Gear Manufacturers Association.

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ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD

International Association of Machinists and Aerospace Workers, letter dated
June 12, 1989, to Chairwoman Oakar from William W. Winpisinger
International Union, United Automobile, Aerospace & Agricultural Imple-
ment Workers of America:

Letter dated June 7, 1989, to Chairwoman Oakar from Owen Bieber............
Letter dated May 25, 1989, to Chairwoman Oakar from Dick Warden......
"The Defense Production Act of 1950", Federal Emergency Management
Agency, Office of Mobilization Preparedness, Washington, DC....

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1

29

59

97

126

267

338

385

129

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127

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170

WITNESSES

THURSDAY, MAY 18, 1989

Bernhardt, Kenneth R., former president, Hamilton Technology, Inc., Lancaster, PA......

30

Coffey, Matthew B., president, National Tooling and Machining Association,
Fort Washington, MD...

33

Moorer, Admiral Thomas H., USN (retired), former chairman, Joint Chiefs of
Staff

36

APPENDIX

Prepared statements:

Bernhardt, Kenneth R.

270

Coffey, Matthew B.....

Moorer, Admiral Thomas H.
Oakar, Hon. Mary Rose....

ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD

Coffey, Matthew B.:

Addendum to testimony, Committee on Finance, U.S. Senate, May 10, 1989

National Tooling & Machining Association, True Cost Information Kit. Submitted article, "Manufacturing Offshore Is Bad Business", by Constantinos C. Markides and Norman Berg

Moorer, Admiral Thomas H., submitted article, The Nation's Defense Industry: Now Too Risky To Be In?, by Sanford N. McDonnell

WITNESSES

WEDNESDAY, May 24, 1989

Bywater, William, president, International Union of Electronic, Electrical,
Salaried, Machine and Furniture Workers (IUE), AFL-CIO..
Phillips, William G., president, National Council for Industrial Defense
Winpisinger, William W., international president, International Association
of Machinists and Aerospace Workers, AFL-CIO...

Wylie, Scott F., Raychem Corp., on behalf of the Proprietary Industries Asso-
ciation..

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315

322

268

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327

65

78

60

82

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Phillips, William G., submitted article, Industrial Base: The Supplier Bottleneck, by Larry Grossman

WITNESSES

TUESDAY, JUNE 20, 1989

Donnelly, Richard E., Assistant Deputy Under Secretary for Manufacturing
and Industrial Programs.......

McEntee, Joan, Deputy Under Secretary, Department of Commerce.
Woloshyn, George, associate director, National Preparedness Directorate, Fed-
eral Emergency Management Agency

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Information in regards to how the U.S. has done in the worldwide de-
fense trade area

Information in regards to major problems with title II of H.R. 486
Information in regards to program managers identifying foreign-sourced

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339

357

340

378

373

100

102

98

399

389

386

416

614

546

Information in regards to the procedure for designating defense items for

domestic procurement

Participating companies in the IMIP (as of June 1989)..

Federal Emergency Management Agency:

Biographical Sketch, George Woloshyn

Comments on the capability of the U.S. industrial base to respond to a

national emergency, along with material from the Federal Register, "Graduated Mobilization Response", George Woloshyn Defense Production Act: An Overview.

Defense Production Act of 1950, as Amended

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613

609

447

541

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448

Watson, George, Acting General Counsel, a draft legislation “To amend the Defense Production Act of 1950 to support mobilization of the defense industrial base of the United States", with letters sent to Hon. Danforth Quayle and Hon. James Wright, Jr., May 24, 1989........

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DEFENSE PRODUCTION ACT AMENDMENTS OF

1989

Wednesday, May 17, 1989

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON ECONOMIC STABILIZATION,
COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS,

Washington, DC. The subcommittee met, pursuant to call, at 10 a.m., in room 2220, Rayburn House Office Building, Hon. Mary Rose Oakar (chair of the subcommittee) presiding.

Present: Chair Oakar, Representative Neal of Massachusetts.
Chair OAKAR. The subcommittee will come to order.

Today's hearing is a continuation of a journey which this subcommittee launched on July 8, 1987. It was at that time we began an in-depth examination of the problems of the U.S. defense industrial base, something that we feel strongly about in this committee and which we are charged to have responsibility for.

Since then the subcommittee has conducted 15 hearings and heard from 48 witnesses representing Government, labor, industry, and public interest groups. The testimony identified these key problem areas:

One, an eroding defense industrial base;

Two, a growing dependency on foreign suppliers for vital parts and components to our weapons system;

Three, the outflow of sensitive technologies; and,

Four, the potential loss of critical job skills, in short, an increasing vulnerability to our national security.

Last year after carefully analyzing the dangers, we tried to write a straightforward bill-H.R. 4037-to remedy those problems, and it was received with wide support from industry and labor. The administration, while conceding initially the validity of the industrial base problems, took a negative view and proposed no alternative legislative solutions.

Believe me, there is nothing partisan in that statement. Administration after administration over more than the past 20 years has put this dilemma on the back burner. Well, we are moving it to the front burner where it belongs.

This year the bill is H.R. 486 and will be tied in with the reauthorization of the Defense Production Act, which will expire September 30 unless re-extended. It consists of two titles, Amendments to title I are essentially the same as H.R. 4037 of last year. Title II focuses on a new area on economic adjustment to assist industries, workers and communities in helping to overcome the adverse ef

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