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1 1 (June 23, 2008)

handle is hein.crs/crsahjp0001 and id is 1 raw text is: Order Code RS20587 Updated June 23, 2008 Defense Production Act: Purpose and Scope Daniel H. Else Specialist in National Defense Foreign Affairs, Defense, and Trade Division Summary The Defense Production Act (DPA) was created at the outset of the Korean War to ensure the availability of the nation's industrial resources to meet the national security needs of the United States by granting the President powers to ensure the supply and timely delivery of products, materials, and services to military and civilian agencies. The DPA codifies a robust legal authority given the president to force industry to give priority to national security production and is the statutory underpinning of governmental review of foreign investment in U.S. companies. Since its enactment in 1950, the DPA has been time-limited, undergoing periodic amendment and reauthorization. In 2003, Congress reauthorized the DPA through September 30, 2008. Introduction The Defense Production Act of 1950 (50 U.S.C. Appx § 2061 et seq.), as amended, confers upon the President authority to force private industry to give priority to defense and homeland security contracts and to allocate the resources needed. The original act was inspired by a message sent to Congress by President Harry S Truman at the outbreak of war in Korea in mid-1950. In his message, President Truman stated that the United States and the United Nations were responding to a military invasion of the Republic of Korea by forces from north of the 38' parallel, that the nation urgently needed additional military manpower, supplies, and equipment, and that the nation's military and economic preparedness were inseparable. He urged Congress to pass legislation that would guarantee the prompt supply of adequate quantities of needed military and civilian goods, including measures to help compensate for manufacturing demand growth caused by military expansion. A number of factors encouraged President Truman to propose such legislation. Both the armed services and the defense industry supporting the nation's war effort had demobilized at the end of World War II. With the return of peace, the Administration cut back military expenditures significantly. President Truman accentuated these cuts by placing heavy reliance on atomic weapons to provide for the nation's defense. The

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