Rod Grams: “this amendment will extend the authorization of the authorities under the Defense Production Act for one year through…”

“this amendment will extend the authorization of the authorities under the Defense Production Act for one year through September 30, 1999. This matter is under the jurisdiction of the Senate Banking Committee, on which I serve as the Subcommittee on International Finance Chairman which handles this issue. Chairman D'Amato and Ranking Member Sarbanes of the Banking Committee, as well as Ranking Member of the International Finance Subcommittee, Senator Moseley-Braun, all have agreed to support this one-year extension as an amendment to the Defense Authorization bill to facilitate this matter in a year when floor time is becoming scarce. The Defense Production Act (DPA) is the primary authority for executive branch activities to ensure the timely availability of resources for national defense and civil emergency preparedness and response. It was first enacted in 1950 to mobilize the nation's productive capacity during the Korean War and ensures the availability of critical materials needed both for national defense and for catastrophic civil disasters. It allows criminal sanctions to prevent hoarding of critical materials. The DPA also authorizes the President to use financial incentives to encourage contractors to establish or expand industrial capacity for defense needs. The ``Exon-Florio'' language which authorizes the President to prohibit foreign investment if such investment threatens national security is also included in this Act.”