(3) The term "general-purpose synthetic rubber" means a chemical rubber of the butadiene-styrene type generally suitable for use in the manufacture of tires or camelback, as well as any other type of synthetic rubber equally or better suited for use in the manufacture of tires or camelback as determined from time to time by the President;

(4) The term "special-purpose synthetic rubber" means a synthetic rubber of the types now known as butyl, neoprene, or N-types (butadiene-acrylonitrile types) as well as any synthetic rubber of similar or improved quality applicable to similar uses, as determined from time to time by the President;

(5) The term "rubber-producing facilities" means facilities, in whole or in part, for the manufacture of synthetic rubber, and the component materials thereof, including, but not limited to, buildings and land in which or on which such facilities may be located and all machinery and utilities associated therewith;

(6) The term "production capacity" means the actual productive capacity assigned to any rubber-producing facilities based upon operating experience and records as determined from time to time by the President;

(7) The term "component materials" means the material, raw, semifinished, and finished, necessary for the manufacture of synthetic rubber;

(8) The term "stand-by condition" means the condition in which rubberproducing facilities, in whole or in part, are placed when determined to be not needed for current operations, but are maintained so as to be readily available for the production of synthetic rubber or component materials;

(9) The term "person" means any individual, firm, copartnership, business trust, corporation, or any organized group of persons whether incorporated or not, and any Government department, agency, officer, corporation, or instrumentality of the United States; and

(10) The term "United States" includes the several States, the District of Columbia, the Territories of Alaska and Hawaii, and Puerto Rico.

AUTHORIZATION FOR APPROPRIATION

SEC. 19. (a) There are hereby authorized to be appropriated such sums as may be necessary and appropriate to carry out the provisions and purposes of this Act. (b) Until such time as appropriations herein authorized are made, any department or agency may, in order to carry out its functions, powers, and duties under this Act, continue to incur obligations and make expenditures in accordance with laws in effect on March 31, 1948.

EFFECTIVE DATE

SEC. 20. This Act shall become effective on April 1, 1948, and, unless Congress shall otherwise provide, shall remain in effect until June 30, 1950.

[H. R. 5314, 80th Cong., 2d sess., Rept. No. 1409]

[Omit the part in black brackets and insert the part printed in italic]

A BILL To strengthen national security and the common defense by providing for the maintenance of an adequate domestic rubber-producing industry, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Rubber Act of 1948".

DECLARATION OF POLICY

SEC. 2. It is the policy of the United States that there shall be maintained at all times in the interest of the national security and common defense, in addition to stock piles of natural rubber which are to be acquired, rotated, and retained pursuant to the Strategic and Critical Materials Stock Piling Act (Public Law 520, Seventy-ninth Congress, approved July 23, 1946), a technologically advanced and rapidly expandible rubber-producing industry in the United States of sufficient productive capacity to assure the availability in times of national emergency of adequate supplies of chemical rubber to meet the essential civilian, military, and naval needs of the country. It is further declared to be the policy of the Congress that the security interests of the United States represent by far the most important consideration in dealing with the Government-owned rubber-producing facilities. There are no compelling security

reasons why the Government-owned rubber-producing facilities should be sold or leased, except as authorized in section 7 of this Act, to private persons.

In order to make certain that the Government-owned rubber-producing facilities are held in constant readiness against a possible emergency, it is essential, notwithstanding any provisions of this Act or any other provisions of law, that the Government, in the interests of national security, retain its rubber-producing facilities, except as authorized in section 7 of this Act.

AUTHORITY TO EXERCISE CERTAIN CONTROLS OVER NATURAL RUBBER AND
CHEMICAL RUBBER

SEC. 3. To effectuate the policies set forth in section 2 of this Act, the Presi dent is authorized to exercise allocation, specification, and inventory controls of natural rubber and chemical rubber, and products containing natural rubber and chemical rubber, notwithstanding any changes in the supply or estimated supply of natural rubber or chemical rubber; and he shall exercise such controls by issuing such regulations as are required to insure (a) the consumption in the United States of general-purpose chemical rubber in a specified percentage of the combined total estimated annual consumption of natural rubber and general-purpose chemical rubber consumed within the United States, and (b) the consumption in the United States of any or all types of special-purpose chemical rubber in specified percentages of the combined total estimated annual consumption of natural rubber, general-purpose chemical rubber, and special-purpose chemical rubber consumed within the United States. Such percentages shall be established so as to assure the production and consumption of general-purpose chemical rubber and special-purpose chemical rubber in quantities determined by the President to be necessary to carry out the policy of section 2 of this Act, and the provisions of Public Law 520, Seventy-ninth Congress, approved July 23, 1946: Provided, That the minimum percentages established by the President shall result in a total annual tonnage consumption of chemical rubber of at least the amounts specified in section 5 (d) of this Act, and that any mandatory consumption in excess of the quantities specified in section 5 (d) of this Act shall not be more than is deemed by the President to be necessary in the interest of national security and the common defense.

IMPORTATION AND EXPORTATION

SEC. 4. (a) The President may impose such import restrictions on finished and semifinished rubber products as he deems necessary to assure equality with like or similar products produced within the United States in accordance with regulations issued under this Act.

(b) The President may exempt from the regulations of this Act finished and semifinished rubber products manufactured in the United States exclusively for export outside the United States.

DOMESTIC RUBBER-PRODUCING CAPACITY

SEC. 5. (a) There shall be maintained at all times within the United States rubber-producing facilities having a rated production capacity of not less than six hundred thousand long tons per annum of general-purpose chemical rubber and not less than seventy-five thousand long tons per annum of special-purpose chemical rubber.

(h) of the seventy-five-thousand-long-ton rated-production capacity for specialpurpose chemical rubber, specified in section 5 (a) of this Act, at least forty-five thousand long tons shall be of a type suitable for use in pneumatic inner tubes. (c) The facilities specified in section 5 (a) of this Act may include facilities owned in whole or in part by the Government and in whole or in part by private persons.

(d) Facilities in operation by the Government or private persons shall produce annually not less than one-third of the rated production capacities specified in section 5 (a) and (b) of this Act.

(e) The facilities to be maintained in operation by the Government and those to be maintained in adequate stand-by condition shall be determined from time to time by the President.

(f) At least one facility for making butadiene from alcohol shall be maintained in operation or in adequate stand-by condition.

NATIONAL RUBBER POLICY

RESEARCH AND DEVELOPMENT

SEC. 6. (a) To effectuate further the policies set forth in section 2 of this Act with respect to a technologically advanced domestic rubber-producing industry, continuous and extensive research is essential. The powers, functions, duties, and authority of the Government to undertake research and development in rubber and allied fields shall be exercised and performed by such departments, agencies, officers, Government corporations, or instrumentalities of the United States as the President may designate, whether or not existing at the date of enactment of this Act.

(b) The cost of undertaking and maintaining the research and development authorized in section 6 (a) of this Act, may be paid from such sums as the Congress, from time to time, may appropriate to carry out the provisions of this Act.

OPERATION OF RUBBER-PRODUCING FACILITIES BY THE UNITED STATES GOVERNMENT

SEC. 7. (a) The powers, functions, duties, and authority to produce and sell chemical rubber conferred in section 7 (b) of this Act shall be exercised and performed by such department, agency, officer, Government corporation, or instrumentality of the United States as the President may designate, whether or not existing at the date of enactment of this Act.

(b) The department, agency, officer, Government corporation, or instrumentality of the United States designated by the President pursuant to section 7 (a) of this Act, shall have the powers, functions, duties, and authority to produce and sell chemical rubber, including the component materials thereof, in amounts sufficient to assure the production of chemical rubber as required by the President in section 3 of this Act: Provided, That the President may authorize such production of chemical rubber, including the component materials thereof, as may be necessary to satisfy voluntary usage of chemical rubber, including the component materials thereof.

(c) The aforesaid powers, functions, duties, and authority to produce and sell include all power and authority in such department, agency, officer, Government corporation, or instrumentality of the United States to do all things necessary and proper in connection with and related to such production and sale, including but not limited to the power and authority to make repairs, replacements, alterations, improvements, or betterments to the rubber-producing facilities owned by the Government or in connection with the operation thereof and to make capital expenditures as may be necessary for the efficient and proper operation and maintenance of the rubber-producing facilities owned by the Government and performance of said powers, functions, duties, and authority.

(d) Notwithstanding the provisions of section 9 of this Act, the aforesaid powers, functions, duties, and authority to produce and sell include the power and authority in such department, agency, officer, Government corporation, or instrumentality of the United States to (a) lease for operation for Government account all or any part of the Government-owned rubber-producing facilities in connection with the performance of said powers, functions, duties, and authority to produce and sell; (b) lease, for a period not exceeding one year, Government-owned rubber-producing facilities for private purposes if such lease contains adequate provisions for the recapture thereof for the purposes set forth in section 7 (b) of this Act and if such lease prohibits the production in the leased facilities of chemical rubber or component materials for use in the production of chemical rubber for private purposes; (c) grant permanent easements or licenses for private purposes in, on, or over land comprising part of the Government-owned rubber-producing facilities if such grant provides that such easement or license shall not interfere with the use at any time of the rubber-producing facilities involved; and (d) sell or otherwise dispose of obsolete or other property not necessary for the production of the rated capacity of the particular plant to which such property is charged.

STAND-BY FACILITIES

SEC. 8. (a) To effectuate further the policies set forth in section 2 of this Act, the President is authorized to place in adequate stand-by condition such rubberproducing facilities as he shall determine necessary to maintain the continued existence of rubber-producing facilities capable of producing the tonnage of chemical rubber required by section 5 (a) of this Act.

(b) Rubber-producing facilities placed in stand-by condition by the President pursuant to section 8 (a) of this Act may be maintained by such department, agency, officer, Government corporation, or instrumentality of the United States. .whether or not existing on the date of enactment of this Act, as the President may designate: Provided, That nothing contained in section 8 (b) of this Act shall preclude such department, agency, officer, Government corporation, or instrumentality of the United States from entering into contracts with private persons for the maintenance of stand-by facilities: Provided further, That the cost of placing facilities in stand-by condition, maintaining such facilities in adequate stand-by condition, and, when necessary, reactivating such facilities, may be paid from such sums as the Congress, from time to time, may appropriate to carry out the provisions of this Act.

DISPOSAL OF GOVERNMENT-OWNED RUBBER-PRODUCING FACILITIES

SEC. 9. (a) No disposition by sale or lease of any Government-owned chemical rubber-producing facilities shall be made until approved by a concurrent resolution in Congress.

(b) No proposal for the disposition by sale or lease of any Government-owned chemical rubber-producing facility shall be submitted to the Congress for approval by concurrent resolution, unless it shall provide adequate safeguards for national security and consumers of chemical rubber, including, but not limited to, a recommendation by the President, after consultation with the National Security Resources Board, stating that the proposed disposition by sale or lease has been considered by the members of the National Security Resources Board and that a majority of said members have found that the requirements of national security and common defense will be facilitated and advanced by such proposed disposition.

ADMINISTRATION

SEC. 10. (a) The President may issue such rules and regulations as he deems necessary and appropriate to carry out the purposes of this Act.

(b) The President may exercise any or all of the powers, authority, and discre tion conferred upon him by this Act, including but not limited to the powers and authority conferred in section 12 of this Act through such departments, agencies, officers, Government corporations, or instrumentalities of the United States, whether or not existing at the date of the enactment of this Act, as he may direct. (c) The President, whenever practicable, shall consolidate all of the powers. functions, and authority contained in this Act in one department, agency, officer, Government corporation, or instrumentality of the United States, whether or not existing at the date of enactment of this Act.

(d) The President may transfer to the departments, agencies, [offices] officers, Government corporations, or instrumentalities of the United States, or to any of them, which he directs to exercise the powers, authority and discretion conferred upon him by this act, such rubber-producing facilities, personnel, property, and records relating to such powers, authority, and discretion, as he deems necessary; and he may so transfer all appropriations or other funds available for carrying out such powers, authority, and discretion. To the extent deemed necessary for the discharge of the responsibilities under this Act, any personnel authorized to be transferred may be employed and their compensation fixed without regard to the civil-service laws and the Classification Act of 1923, as amended. (e) Each department, agency, officer, Government corporation, or instru mentality of the United States to whom the President may delegate any powers. authority, and discretion conferred by this Act shall make an annual report to the President and to the Congress of operations under this Act.

(f) The President shall report to the Congress within five years from the effective date his recommendations for revisions of this Act, particularly as to any changes in the mandatory annual tonnage consumption, and the rated production capacity of rubber-producing facilities which must be maintained in the United States.

PATENT POOLING AND USE OF TECHNICAL INFORMATION

SEC. 11. (a) To effectuate further the policies of this Act, the President is authorized to take such action as may be appropriate with respect to patent pooling, patent licensing and exchange of information agreements [sponsored by] entered into with the Government as a part of the wartime chemical rubber program, insofar as practicable and consistent with the purposes of this Act, to

(1) Leffectuate cessation of further accumulations of patents or technical information to such pools or under such agreements;] effectuate cessation of further accumulation of technical information or rights to patents under the agreement dated December 19, 1941, as supplemented June 12, 1942, between the Government and others;

(2) for the advancement of the rubber-producing industry, make available to and preserve for the Government, and others, information, and unrestricted, unconditional patent licenses and immunities under the patents, now or hereafter covered by or exchanged under such pools or agreements or developed under operating agreements or arrangements with [or sponsored by the Government; (3) maintain and encourage the competitive development of technology for the advancement of the chemical rubber industry.

(b) No person, corporation, or legal entity shall be liable for the infringement of any patent or for any claim for damages thereunder whether there was failure to disclose the subject matter covered by any claim of said patent as required by any patent_pooling, patent licensing, or exchange of information agreement [sponsored by] with the Government, or where there was unjustifiable or purposeful delay in actual or constructive reduction to practice of the invention set forth in a claim of said patent as contemplated in any such agreement; and any such patent, any claim of which shall be found to fall in one of the above categories on an action for infringement, damages, or declaratory judgment, shall be invalid.

(c) No person, corporation, or legal entity shall be liable for any alleged violation of trust with regard to the use of technical information in the operation of a Government-constructed facility for the production of chemical rubber or its components or the use or sale of the products thereof, where there was failure to disclose the subject matter entrusted as required by any patent pooling, ratent licensing or exchange of information [sponsored by] agreement with the Government.

(d) Any department, agency, [office] officer, Government corporation, or instrumentality of the United States as the President may designate to perform the powers, functions, duties, and authority referred in section 7 (b) of this Act, shall be entitled to the benefits of the Act of June 25, 1910 (36 Stat. 851), as amended July 1, 1918 (40 Stat. 705), or any similar Act.

INFORMATION, REPORTS, SUBPENAS, WITNESSES, AND TESTIMONY

SEC. 12. (a) The President shall be entitled to obtain such information from, require such reports and the keeping of such records by, make such inspection of the books, records, and other writings, premises, or property of, any person and make such investigations, as may be necessary or appropriate, in his discretion, to the enforcement or administration of the provisions of this Act.

(b) For the purpose of obtaining any information, verifying any report required, or making any investigation pursuant to section 12 (a) of this Act, the President may administer oaths and affirmations, and may require by subpena or otherwise the attendance and testimony of witnesses and the production of any books or records or any other documentary or physical evidence which may be relevant to the inquiry. Such attendance and testimony of witnesses and the production of such books, records, or other documentary or physical evidence may be required at any designated place from any State, Territory, or other place subject to the jurisdiction of the United States: Provided, That the production of a person's books, records, or other documentary evidence shall not be required at any place other than the place where such person resides or transacts business, if, prior to the return date specified in the subpena issued with respect thereto, such person furnishes the President with a true copy of such books, records, or other documentary evidence (certified by such person under oath to be a true and correct copy) or enters into a stipulation with the President as to the information contained in such books, records, or other documentary evidence. Witnesses shall be paid the same fees and mileage that are paid witnesses in the courts of the United States. No person shall be excused from attending and testifying or from producing any books, records, or other documentary evidence or certified copies thereof, or physical evidence, in obedience to any such subpena. or in any action or proceeding which may be instituted under this Act on the ground that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture; but no individual shall be subject to prosecution and