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B-125187 1 (1973-05-31)

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           Aecoun in g Office excopt on the batis of specifi 4P stj~~
           by the Office of C ngressjon.Pokt
  01,LER 0                                 .
           7do the
                   COMPTROLLER GENERAL OF THE UNITED STATES
                            WASHINGTON, D.C. 20548
      ~RELLEA1SED -


    B-125187                                             1       r   j
                                                   MAY 3 1 IR73    :





   The Honorable George H. Mahon
C   Chairman, Committee on Appropriations
   House of Representatives

   Dear Mr. Chairman:

        Your March 5, 1973, letter requested us to study the
   National Industrial Equipment Reserveestablished under the
   National JnutllRsreAct of 1948, (Public Law 883,
   80th Cong.). We agreed with a member of your staff that we
   would obtain information that is readily available from the
   agencies concerning the value of all industrial plant equip-
   ment ow ej by, the Depart en d'(DOD)'           ha     and
   type of equipment assigned to the national reserve, and the
   distinction, if any, between the national reserve and DOD's
   general reserve. We also agreed to furnish information on
   the use of national reserve equipment during the Vietnam
   buildup andin the school loan program.

        Because of the short time we had to comply with your
   request, we agreed with a member of your staff to provide this
   information without conclusions or recommendations as to the
   need for maintaining a separate national reserve and a general
   reserve.

   BACKGROUND

        The act established a reof machiQ.e.tools .andjindus-
   triaki-,-manufac turinng,..equipment for-imme-diate--use to supply,, the
   n ed,.es .Qf..the Armed ,,Force-sin, a_ time of.. national emergency.
   The act authorizes the Secretary of Defense to determine which
   excess industrial properties should become part of the reserve
   and which should be disposed of. The Secretary was also au-
   thorized to lend property to nonprofit educational institu-
   tions or training schools when he determined that the programs
   proposed by these organizations would contribute to national
   defense and the equipment would be properly maintained and re-
   turned, if required, without expense to the Government.



                            [9 00- , O~6S3

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