SECTION 2. ESTABLISHMENT AND ORGANIZATION

.01 Pursuant to the authority vested in the Secretary of Commerce by Reorganization Plan No. 5 of 1950, there is hereby established as a primary organization unit of the Department of Commerce the Business and Defense Services Administration in furtherance of the Department's statutory responsibility to foster, promote, and develop commerce and industry. The Business and Defense Services Administration shall be under the authority and supervision of the Assistant Secretary for Domestic Affairs and shall be directed by an Administrator who shall be appointed by the Secretary and who shall report and be responsible to the Assistant Secretary.

.02 The Business and Defense Services Administration shall consist of the following organization units:

1. Office of the Administrator, including

(1) Deputy Administrator.

(2) Assistant Administrators.

(3) Assistant Deputy Administrator.
(a) Special services staff.

(b) Administrative staff.

(4) Staff offices, including

(a) Office of Technical Services.
(b) Office of Small Business.

(c) Office of Distribution.

2. Industry divisions, including

(1) Agricultural, Construction, and Mining Equipment.
(2) Aluminum and Magnesium.

(18) Leather, Shoes, and Allied Products.

(19) Metalworking Equipment.

(20) Miscellaneous Metals and Minerals.

(21) Power Equipment.

(22) Scientific, Motion-Picture, and Photographic Products.

(23) Shipbuilding, Railroad, Ordnance, and Aircraft.

(24) Textiles and Clothing.

(25) Water and Sewage Industries and Utilities.

3. Office of Field Services.

SECTION 3. DELEGATION OF AUTHORITY

.01 Subject to such policies and directions as the Secretary of Commerce may prescribe, the Administrator of the Business and Defense Services Administration shall perform the functions and exercise the power and authorities relating to industry and trade of the United States vested in the Secretary of Commerce by the act of February 14, 1903 (32 Stat. 826), as amended, and shall exercise the authority delegated to the Secretary of Commerce under the Defense Production Act of 1950, as amended and extended, except the functions and authorities vested in the Secretary of Commerce with respect to the use of transportation facilities and in connection with the creation of new, agencies within the Department of Commerce. In addition the Administrator shall perform the functions and exercise the authorities vested in the Secretary of Commerce under the Rubber Act of 1948, as amended by Executive Order 9942 of April 1, 1948.

.02 The Administrator of the Business and Defense Services Administration may redelegate any power or authority conferred on him by this order to any officer of the Business and Defense Services Administration and he may authorize such redelegations by such officer as he may deem appropriate.

SECTION 4. GENERAL FUNCTIONS AND OBJECTIVES

The general functions and objectives of the Business and Defense Services Administration, consistent with the scope and authority conferred on the Secretary of Commerce by or pursuant to law, shall be to

1. Assure the achievement of military and atomic energy programs by channeling, where necessary, the materials and products required therefor in accordance with the provisions of the Defense Production Act of 1950, as amended.

2. Insure the development of practical mobilization programs by ascertaining the production potential of the industrial economy as related to materials, products, and facilities, for defense supporting and essential civilian needs, for which the Department of Commerce is the cognizant agency.

3. Provide the framework for the integration of defense production and mobilization programs with industry's long-range plans for maintaining civilian production and employment on a sound basis.

4. Provide a nucleus organization capable of rapid expansion as an operating agency for administration of production and materials controls in the event of a future emergency.

5. Foster the transition from emergency mobilization efforts to the operations of a free-enterprise system;

6. Except as otherwise provided by law or Executive order, establish the Business and Defense Services Administration as the logical point in Government for representation of the domestic interests of business and industry in their relations with other governmental agencies;

7. Provide other departments and agencies of the executive branch and the Congress with required information and judgment concerning the viewpoints and interests of business and industry;

8. Cooperate in assuring consideration of the domestic needs of small business enterprises with the view to strengthening their position in the national economy;

9. Obtain the views and advice of business through the establishment of, and consultation with, industry councils and industry advisory committees; and through cooperation with trade associations;

10. Encourage efficient and effective domestic distribution of goods and services to further the expansion of domestic markets necessary for optimum utilization of the Nation's productive capacity ;

11. Act as a clearinghouse for Government technological information of interest to business and assist industry in the voluntary standardization of products; and

12. Cooperate with other agencies of Government in programs to achieve economic stability and growth and with industry in the development of industrial and business programs having as their purpose a sound, prosperous, and expanding economy.

SECTION 5. FUNCTIONS OF THE OFFICE OF THE ADMINISTRATOR

.01 The Administrator shall determine, develop, and coordinate policies and programs and direct all operations of the Business and Defense Services Administration. To achieve a proper balance between the foreign and domestic responsibilities of the Department of Commerce, the Administrator shall, however, consult and collaborate with the Assistant Secretary for International Affairs. The Administrator shall also assist the Bureau of Foreign Commerce in carrying out its policies and service to business programs for the promotion of United States international trade and investment.

.02 The Deputy Administrator shall be the chief operating aid to the Administrator and assist in the direction of the operations of the Administration and perform other duties assigned by the Administrator.

.03 The Assistant Administrators shall recommend to and advise with the Administrator and the Assistant Secretaries of Commerce on policies and programs and advise on the practical application of such programs and policies to the operation of the Administration. They shall provide the Administration

with the point of view of industry in general and the point of view of specific industries represented by the Industry Divisions in their assigned areas.

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.04 The Assistant Deputy Administrator shall assist the Administrator, Deputy Administrator, and the Assistant Administrators in the performance of staff and administrative functions, and shall perform such other duties as assigned by the Administrator. He shall secure all administrative services for the Administration through the offices reporting to the Assistant Secretary of Commerce for Administration.

SECTION 6. FUNCTIONS OF STAFF OFFICES

.01 The staff offices described below shall cooperate and work in conjunction with Industry Divisions in areas of mutual interest and shall furnish such technical staff service as may be required by individual Industry Divisions to carry out assigned responsibilities.

.02 The Office of Technical Services shall work with and assist State planning and development groups, and regional and local area development agencies in studying the economic problems and potentialities of an area as a whole and in developing programs for making greater use of local resources and expanding the industry and commerce of the area by making the data, skills, and experience of the Department available to such organizations; assist industries to develop and agree upon commercial standards as to quality, testing, and ratings; collect and compile scientific and technical information on technological productivity for dissemination to business enterprises; shall serve as the point of contact with trade associations and other nonprofit trade groups for the purpose of encouraging their cooperation and obtaining recommendations with respect to the domestic commerce programs and activities of the Department; and bring to the attention of American inventors, in cooperation with the National Inventors Council and representatives of the Department of Defense and such other Federal agencies as may wish representation, the technical problems of Government groups.

.03 The Office of Small Business shall act as adviser to the Administrator and other officials of the Department on small-business aspects and interests involved in the programs and operations of the Department. Among other functions it shall participate in mobilization planning carried on by the Business and Defense Services Administration for the purpose of insuring proper consideration of small concerns; and review existing and proposed publications of the Business and Defense Services Administration with respect to their impact on small business. It shall be the focal point in the Department for liaison with the Small Business Administration.

.04 The Office of Distribution shall provide a focal point within the Department of Commerce for the retail, wholesale and service trades, and for all others engaged in the domestic distribution of goods and services; collect, analyze, and disseminate information on domestic market characteristics and potentials by industry and geographical areas; cooperate with other data collection agencies for the development of effective programs for the exchange of marketing information; and advise on policy issues affecting the domestic distribution and service trades, and the impact of current or proposed marketing laws and regulations upon the effective operation of such distribution activities.

SECTION 7. FUNCTIONS OF THE INDUSTRY DIVISIONS

.01 Each Industry Division of the Business and Defense Services Administration is assigned functions and responsibilities with respect to individual or related segments of American domestic industry.

.02 The Industry Divisions shall initiate policy and program proposals affecting their respective areas of operations for submission to and consideration and decision by the Administrator.

.03 The functions of the Industry Divisions relating to defense production and mobilization readiness shall be carried out in accordance with operating functions delegated to the Secretary of Commerce under the Defense Production Act of 1950, as amended, and by the Director of the Office of Defense Mobilization, .04 The Industry Divisions shall cooperate with other organizations of the Department of Commerce, other governmental agencies and business and industry in developing programs of practical value to the business and industrial communities so as to foster a common understanding of the problems of Government and business.

.05 More specifically, the Industry Divisions shall perform the following functions as prescribed by the Administrator:

1. Defense production activities:

(1) Administer the defense materials system and take related actions in support of military and atomic energy programs,

(2) Review and make recommendations to the Office of Defense Mobilization on expansion goals, tax amortization, and domestic loan applications, and

(3) Make recommendations on the stockpiling or the disposal of stockpiled strategic materials and equipment in relation to industrial requirements to avoid any adverse effects on the national economy;

2. Mobilization preparedness activities:

(1) Participate in the development of the Government's mobilization base program for the provision of adequate industrial facilities in the event of national emergency,

(2) Provide the mobilization authorities with basic data for use in the identification and rating of facilities to be protected against the possibilities of enemy damage, and

(3) Provide assistance to the Office of Defense Mobilization in regard to participation with industry in postattack planning; 3. Business Services activities:

(1) In furtherance of economic stability and growth, provide information and recommend to the Administrator and the Assistant Secretary for Domestic Affairs policies designed to promote industrial expansion and business progress for their guidance in the determination of policy and in the presentation of business opinion and advice to the executive and legislative branches,

(2) Collect, analyze, and disseminate information on the condition and levels of business activity in specific industries and trades pertinent to the production and marketing of industrial commodities and resources for governmental purposes and as a service to business and trade groups,

(3) Evaluate policies, plans, activities and orders of the Department of Commerce, as well as existing and proposed legislation affecting business, from the standpoint of the workability of these measures in everyday business and industrial operation and report to the Administrator and the Assistant Secretary for Domestic Affairs,

(4) Assess the impact of Government operations insofar as they impinge on the interests of private business and report such assessments to the Administrator and to the Assistant Secretary for Domestic Affairs, and (5) Assist domestic business in its relations with other departments and agencies of the Government.

SECTION 8. FUNCTIONS OF THE OFFICE OF FIELD SERVICES

The Office of Field Services shall carry out the field programs of the Business and Defense Services Administration. It shall also carry out the field programs of the Bureau of Foreign Commerce and such other bureaus and organizational units of the Department as the Secretary of Commerce may direct. Through departmental field and cooperative offices, the Office of Field Service shall make the Department's services and facilities readily available to the business community, and shall serve to establish and maintain on a local level the Department's relationship to the business community.

SECTION 9. TRANSFER PROVISIONS

.01 There are hereby transferred to the Business and Defense Services Administration the functions and responsibilities of:

1. The Office of Field Service from the Office of the Assistant Secretary of Commerce for Administration;

2. The Office of Technical Services;

3. The Office of Distribution;

4. The Office of Industry and Commerce, which are hereby assigned to the Office of Technical Services; and

5. The Industry Evaluation Board, as continued by Executive Order 10421 of December 31, 1952.

.02 The National Production Authority is hereby abolished.

.03 The Assistant Secretary of Commerce for Administration, acting through appropriate offices of the Department, shall determine and arrange for the proper transfer of personnel, funds, records, and equipment of the units referred to in sections 9.01 and 9.02 above to effectuate the purposes of this order.

SECTION 10. EFFECT ON OTHER ORDERS

.01 This order supersedes the following Department orders:

No. 18 (amended) of June 1, 1950

No. 52 (amended) of October 14, 1949

No. 120 of July 1, 1950

No. 123 (amended) of May 6, 1952, and Supplement 1 of June 29, 1951
No. 129 of January 21, 1953

No. 145 of October 1, 1952, and Amendment 1 of December 9, 1952

.02 This order amends Department orders No. 16 (amended) of June 20, 1952, No. 83 (amended) of August 6, 1951, No. 133 of August 7, 1951, and No. 134 (amended) of May 29, 1953. Any other orders or parts of orders the provisions of which are inconsistent or in conflict with the provisions of this order are hereby amended or superseded accordingly.

.03 Department Orders No. 33 of April 1, 1946, No. 76 (amended) of November 6, 1947, and No. 110 of September 30, 1949, are hereby revoked.

.04 All rules, regulations, orders, certificates, directives, delegations, and other official actions issued by or relating to the National Production Authority, any official thereof, or the units referred to in section 9.01 above shall remain in effect until amended or revoked by proper authority. Any reference in any rule, regulation, order, certificate or other official action to those organizations shall, where required, be deemed to refer to the Business and Defense Services Administration.

SINCLAIR WEEKS, Secretary of Commerce.

Mr. WALDEN. I have obtained the opinion of the General Counsel of the Department of Commerce to which I have referred before and with respect to which the questions I have posed to you gentlemen relate. This is his opinion, and in all fairness the entire opinion should be in the record. The portion I referred to reads:

Recently questions have been raised regarding the employment of persons without compensation (WOC's) by BDSA. Basically, these questions indicate concern over the degree of protection afforded WOC's from the so-called conflictof-interest statutes. A brief review of the subject should demonstrate that there is no real basis for such concern.

We will put the whole letter in the record so the record is clear on the Department's position.

(The document referred to is as follows:)

DECEMBER 8, 1953.

OPINION OF THE GENERAL COUNSEL OF THE DEPARTMENT OF COMMERCE REGARDING EMPLOYMENT BY THE BUSINESS AND DEFENSE SERVICES ADMINISTRATION OF PERSONS WITHOUT COMPENSATION (WOC's)

Recently questions have been raised regarding the employment of persons without compensation (WOC's) by BDSA. Basically, these questions indicate concern over the degree of protection afforded WOC's from the so-called conflict of interest statutes. A brief review of the subject should demonstrate that there is no real basis for such concern.

1. The Defense Production Act, as originally enacted and as it exists today, expressly authorizes, to the extent deemed necessary to carry out the provisions of the act, the employment of persons without compensation. It further authorizes their exemption from certain conflict of interest statutes.

2. Executive orders have been issued which grant specified exemptions to WOC's. The most significant element of protection from the standpoint of the WOC employee and his private employer, consists of the exemption from the prohibition against payment and receipt of compensation from nongovernmental sources for the performance of Government duties.