Text: S.1191 — 101st Congress (1989-1990)All Information (Except Text)

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Reported to Senate

 
 
Calendar No. 286
101st CONGRESS
1st Session
S. 1191
[Report No. 101-159]
A BILL
To authorize appropriations for the Department of Commerce's Technology
Administration, to speed the development and application of economically
strategic technologies, and for other purposes.
October 3 (legislative day, SEPTEMBER 18), 1989
Reported with an amendment
S 1191 RS
Calendar No. 286
101st CONGRESS
1st Session
S. 1191
[Report No. 101-159]
To authorize appropriations for the Department of Commerce's Technology
Administration, to speed the development and application of economically
strategic technologies, and for other purposes.
IN THE SENATE OF THE UNITED STATES
June 15 (legislative day, JANUARY 3), 1989
Mr. HOLLINGS (for himself, Mr. BENTSEN, Mr. BRYAN, Mr. ROCKEFELLER,
Mr. BINGAMAN, Mr. INOUYE, Mr. LOTT, and Mr. GORE) introduced the following
bill; which was read twice and referred to the Committee on Commerce, Science,
and Transportation
October 3 (legislative day, SEPTEMBER 18), 1989
Reported by Mr. HOLLINGS, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
A BILL
To authorize appropriations for the Department of Commerce's Technology
Administration, to speed the development and application of economically
strategic technologies, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United States
  of America in Congress assembled,  [Struck out->] That this Act may be cited
  as the `Technology Administration Authorization Act of 1989'. [] STATEMENT OF POLICY []   SEC. 2. Congress finds that in order to help United States
 industries to speed the development of new products and processes and in
 order to maintain the economic competitiveness of the Nation, targeted
 increases are required in the programs and activities of the Department of
 Commerce's Technology Administration (hereafter in this Act referred to as
 the `Administration') and its National Institute of Standards and Technology
 (hereafter in this Act referred to as the `Institute'). [] TECHNOLOGY ADMINISTRATION []   SEC. 3. There is authorized to be appropriated to
 the Secretary of Commerce (hereafter in this Act referred to as the
 `Secretary'), to carry out executive and analytical activities performed
 by the administration, $4,675,000 for fiscal year 1990, which shall be
 available for the following line items: []   (1) Executive Direction, $1,013,000. []   (2) Technology Policy and Commercial Affairs,
 $2,662,000. []   (3) Japanese Technical Literature, $1,000,000. [] NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY []   SEC. 4. (a) FINDING- Congress finds that the Institute can
 assist United States industry in three ways to speed the commercialization
 of new products and processes: through the Institute's internal research
 and service programs, which provide industry with precise measurement
 and quality assurance techniques and with new generic manufacturing and
 process technologies; through its technology extension activities, which
 disseminate technical information and advanced manufacturing techniques
 to a wide range of companies; and through its Advanced Technology Program,
 which can promote and assist industry's own efforts to develop new generic
 technologies. []   (b) INTERNAL RESEARCH AND SERVICES- There is authorized
 to be appropriated to the Secretary, to carry out the internal science and
 technology research and services activities of the Institute, $193,360,000
 for fiscal year 1990, which shall be available for the following line items:
 []   (1) Measurement Research and Standards, $50,185,000, of
 which $3,200,000 shall be available for chemical measurements and quality
 assurance and $2,500,000 for research on the automatic-level performance
 of electrical and optical systems. []   (2) Materials Science and Engineering, $27,084,000,
 of which $3,600,000 shall be available to develop improved processing
 procedures for high-performance composites, and $2,000,000 for steel
 technology. []   (3) Engineering Measurements and Standards, $69,428,000
 of which $7,500,000 shall be available to develop measurement and quality
 assurance techniques for applications in advanced imaging electronics,
 including advanced television, $7,800,000 for research in superconductivity,
 $7,500,000 for lightwave and optoelectronic technology, $2,500,000 for a
 new initiative in advanced semiconductors, $2,500,000 for a new initiative
 in automation research, $3,650,000 for the development of measurement and
 quality assurance techniques for bioprocess engineering, and $9,912,000
 for fire and building research. []   (4) Computer Science and Technology, $15,088,000, of
 which $7,500,000 shall be available for computer security activities
 pursuant to the Computer Security Act of 1987 (Public Law 100-235; 100
 Stat. 1724). []   (5) Research Support Activities, $34,575,000,
 of which $6,000,000 shall be available for improvements in computer
 support and $6,500,000 shall be available for the Cold Neutron Research
 Facility. []   (c) INDUSTRIAL TECHNOLOGY EXTENSION ACTIVITIES- In addition
 to the sums already authorized by statute to be appropriated for fiscal year
 1990 for Research Centers for the Transfer of Manufacturing Technology and
 for assistance to State technology extension services, there is authorized
 to be appropriated to the Secretary to carry out the industrial technology
 extension activities of the Institute for fiscal year 1990, $4,000,000, of
 which $2,000,000 shall be available for the Technology Evaluation Program
 and $2,000,000 shall be available for the Institute's management of its
 industrial technology extension activities. []   (d) TRANSFERS- (1) Funds may be transferred among the line
 items listed in subsection (b), so long as-- []   (A) the net funds transferred to or from any line item
 do not exceed 10 per centum of the amount authorized for that line item in
 such subsection; and []   (B) the Committee on Commerce, Science, and Transportation of
 the Senate and the Committee on Science, Space, and Technology of the House of
 Representatives are notified in advance of any such transfer. []   (2) The Secretary may propose transfers to or from any line
 item exceeding 10 per centum of the amount authorized for the line item in
 subsection (b), but such proposed transfer may not be made-- []   (A) unless a full explanation of any such proposed transfer
 and the reasons therefor are transmitted in writing to the Speaker of the
 House of Representatives, and the President of the Senate, and the appropriate
 authorizing committees of the House of Representatives and the Senate; and
 []   (B) until the expiration of the thirty-day period following
 the transmission of such written explanation. []   (e) OFFICE OF INDUSTRIAL TECHNOLOGY SERVICES- Section 26
 of the Act of March 3, 1901 (15 U.S.C. 278l), is amended by adding at the
 end the following new subsection: []   `(c) There is established within the Institute an Office of
 Industrial Technology Services, which shall supervise the Centers program,
 the Institute's assistance to State technology programs, and such other
 activities or programs as the Secretary, Under Secretary, or Director may
 specify.'. [] ADVANCED TECHNOLOGY PROGRAM []   SEC. 5. (a) FINDINGS AND STATEMENT OF POLICY- Congress
 finds and declares the following: []   (1) It is in the national interest for the Federal Government
 to encourage and, in selected cases, provide limited financial assistance
 to industry-led private sector efforts to increase research and development
 in economically critical areas of technology. Further, both joint research
 and development ventures (hereafter in this section referred to as `joint
 ventures') and selected research assistance to small firms are established
 and effective ways to create economically valuable new technology. Joint
 ventures are a particularly effective and appropriate way to pool resources
 to conduct research that no one company is likely to undertake but which
 will create new generic technologies that will benefit an entire industry
 and the welfare of the Nation. []   (2) In accordance with existing national policy, both the
 technology developed by any joint venture supported by the Department of
 Commerce as well as the resulting products should be made available, on a
 license and royalty basis and subject to the terms and conditions listed
 in this section, to nonparticipants. []   (3) When a joint venture receives financial assistance
 from the Department of Commerce, the technology resulting from the joint
 venture should be licensed in such a way that the technology promotes the
 domestic manufacture of resulting products and components. []   (b) ADVANCED ELECTRONICS, INCLUDING ADVANCED TELEVISION-
 In addition to any sums otherwise authorized by this Act, appropriations
 to the Secretary and loan guarantees by the Secretary, pursuant to section
 28 of the Act of March 3, 1901 (15 U.S.C. 278n), as amended by section 6
 of this Act, and subject to the terms specified in subsections (d) and (e)
 of this section, are authorized at the following levels to assist one or
 more industry-led joint ventures in advanced electronics, including advanced
 television, to create and test the generic enabling technologies necessary
 to develop a United States industry to produce advanced electronic products,
 including advanced televisions: []   (1) for fiscal year 1990, appropriations of $30,000,000
 and, in addition, commitments to guarantee 90 per centum of the payment
 of the outstanding principal and interest on $50,000,000 in private loans;
 []   (2) for fiscal year 1991, commitments to guarantee 90
 per centum of the payment of the outstanding principal and interest on an
 additional $75,000,000 in private loans; and []   (3) for fiscal year 1992, commitments to guarantee 90
 per centum of the payment of the outstanding principal and interest on an
 additional $100,000,000 in private loans. []   (c) OTHER INDUSTRY-LED RESEARCH PROJECTS- In addition to
 the sums authorized under subsection (b) of this section and any other sums
 otherwise authorized by this Act, there is authorized to be appropriated to
 the Secretary, to carry out through the Director of the Institute further
 activities under section 28 of the Act of March 3, 1901 (15 U.S.C. 278n),
 $70,000,000 for fiscal year 1990, which shall be available for the following
 line items: []   (1) Assistance to additional industry-led joint ventures,
 $58,000,000, which shall be available for the following categories:
 []   (A) Applications of high-temperature superconducting
 materials, $15,000,000. []   (B) Advanced manufacturing, $18,000,000. []   (C) Semiconductor production equipment, specifically a
 synchrotron radiation project to assist the United States semiconductor
 industry to develop X-ray lithography as a method of producing semiconductor
 chips, $25,000,000. []   (2) Assistance to United States small businesses which have
 held Small Business Innovation Research Program Phase I awards from other
 Federal agencies and which the Institute judges to have promising technologies
 in economically important technical fields, $10,000,000. []   (3) Program management, analyses, and workshops,
 $2,000,000. []   (d) GENERAL TERMS AND CONDITIONS FOR AID TO JOINT VENTURES-
 Subsequent to any appropriation made pursuant to the authorizations
 in subsection (b) and subsection (c)(1) of this section, the Secretary
 shall invite requests for financial assistance from existing or proposed
 joint ventures in the designated technical areas. If requests are made,
 the Secretary, after an appropriate review of the technical and economic
 merits of each request, shall judge which individual requests or combination
 thereof, if any, merit assistance and shall decide what type and level of
 assistance each such meritorious proposal shall receive, except that in
 addition to the terms and conditions set forth in section 28 of the Act of
 March 3, 1901, as amended by section 6 of this Act, the Secretary shall
 make no award of any funds appropriated, or any loan guarantee, pursuant
 to an authorization contained in subsection (b) or subsection (c)(1) of
 this section unless and until-- []   (1) the joint venture is led by at least one North American
 company which operates in more than one State or region of the Nation;
 []   (2) the joint venture demonstrates that it has raised, or
 has firm commitments for, private funds which exceed the level of Federal
 funds that the joint venture has requested from the Secretary and the fair
 market value of any loan guarantee commitments so requested; []   (3) the joint venture has developed and submitted to
 the Secretary a business plan which, in the judgment of the Secretary,
 adequately-- []   (A) states a clear and focused research and development
 agenda, including the prototype products and production processes to be
 created and how that agenda complements a related research project or projects
 already being funded by Federal departments or agencies; []   (B) provides assurance that the joint venture will have
 a sound management team; []   (C) demonstrates that a party to the joint venture, acting on
 the joint venture's behalf, has filed a written notification with the Attorney
 General and the Federal Trade Commission, as required under section 6 of
 the National Cooperative Research Act of 1984 (15 U.S.C. 4305); []   (D) provides, as appropriate, for participation in the joint
 venture by small businesses owned by United States citizens; []   (E) considers metrology needs, and as appropriate, draws upon
 the technology, expertise, and facilities in the Institute's laboratories;
 []   (F) sets forth provisions regarding the disposition of
 intellectual property resulting from the joint venture, including the rapid
 transfer of that intellectual property to members of the joint venture;
 the licensing, as appropriate, of the intellectual property to other
 North American companies and to foreign companies, in accordance with the
 provisions set forth in subsection (e) of this section; and, as appropriate,
 requirements for royalties which will return funds to the investors in the
 joint venture, including the United States Government; and []   (G) sets forth reporting and auditing procedures; and
 []   (4) the Secretary, after an appropriate review of the
 business plan, judges that the proposed research and development agenda
 and the proposed management team have high technical merit. []   (e) PARTICIPATION AND LICENSING BY FOREIGN COMPANIES AND
 NON-MEMBERS OF A JOINT VENTURE- (1) In addition to the terms and conditions
 set forth in section 28 of the Act of March 3, 1901 (15 U.S.C. 278n),
 and subsection (d) of this section, the terms and conditions set forth
 in paragraphs (2) and (3) of this subsection also shall apply to any
 joint venture which receives any financial assistance from the Secretary
 pursuant to the authorizations provided in subsections (b) and (c)(1)
 of this section. []   (2) No joint venture which contains a foreign company or
 a subsidiary thereof shall be eligible to receive financial assistance from
 the Secretary, and no foreign company shall participate in any joint venture
 which has received financial assistance from the Secretary. []   (3) A joint venture which receives financial assistance from
 the Secretary may grant licenses to companies, including foreign companies,
 that are not members of the joint venture, for the use of intellectual
 property which the joint venture has developed, only if-- []   (A) licensing fees for the intellectual property are based
 on-- []   (i) the amount of research and development, product design,
 and manufacturing of products using the intellectual property that the
 company performs within the United States and Canada; []   (ii) the percentage of domestically manufactured components,
 including electronic components, used in products which incorporate the
 intellectual property; and []   (iii) in the case of a foreign company, the amount of
 reciprocal access North American companies have to that company's home
 market, as determined by the Secretary; and []   (B) in the case of a foreign company, that company, in
 the judgment of the Secretary, has not within the past five years engaged
 in dumping practices within the United States or engaged in practices,
 either in the United States or abroad, which have the effect of infringing
 on or otherwise damaging the intellectual property rights of North American
 companies. []   (4) The Secretary shall prescribe such rules and collect
 such information as may be necessary to monitor and enforce any requirements
 set forth in paragraphs (2) and (3) of this subsection. []   (f) DEFINITIONS- As used in this section, the term--
 []   (1) `foreign company' means a company or other business
 entity in which majority ownership or control is held by individuals who
 are not citizens of the United States or Canada. []   (2) `North American company' means a company or
 other business entity in which majority ownership or control is held by
 individuals who are citizens of the United States, or citizens of Canada,
 or a combination of United States and Canadian citizens, except that such
 term includes a company owned or controlled by Canadian citizens only if,
 in the judgment of the Secretary, the company is not acting, with respect to
 the joint venture concerned, as an agent or intermediary for a third-country
 company or foreign government. []   (g) COORDINATION- (1) When reviewing private sector
 requests for Department of Commerce assistance to proposed joint ventures,
 and when monitoring the progress of assisted joint ventures, the Secretary
 shall, as appropriate, coordinate with the Secretary of Defense and other
 senior Federal officials to ensure cooperation and coordination in Federal
 technology programs and to avoid unnecessary duplication of effort. The
 Secretary is authorized to work with the Secretary of Defense and other
 appropriate Federal officials to form interagency working groups or special
 project offices to coordinate Federal technology activities. []   (2) As appropriate, the Secretary shall coordinate Advanced
 Technology Program policies and activities with the economic, trade, and
 security policies of the Department of Commerce so as to promote the economic
 competitiveness of United States industries and shall, when so instructed
 by the President, coordinate these policies with the science, technology,
 economic, trade, and security policies of other Federal departments and
 agencies. []   (h) ADVICE AND REVIEW- In order to analyze the need for
 and value of joint ventures in specific technical fields, to evaluate any
 joint ventures for which North American companies request the Secretary's
 assistance, or to monitor the progress of any joint venture which receives
 Federal funds or loan guarantees pursuant to the authorizations contained in
 this section, the Secretary, the Under Secretary of Commerce for Technology,
 and the Director of the Institute may-- []   (1) organize and seek advice from such industry advisory
 committees as they consider useful and appropriate; []   (2) organize an Advanced Electronics Advisory Board for
 the purpose of developing a plan for research and development in advanced
 electronics, including advanced television; and []   (3) commission studies or reviews by the National Research
 Council. [] AMENDMENTS TO ADVANCED TECHNOLOGY PROGRAM PROVISIONS
 []   SEC. 6. (a) Subparagraph (B) of section 28(b)(1) of the
 Act of March 3, 1901 (15 U.S.C. 278n(b)(1)), is amended to read as follows:
 []   `(B) participation in such joint ventures, if the Secretary,
 acting through the Director, determines participation to be appropriate,
 which may include (i) partial start-up funding, (ii) provision of a
 minority share of the cost of such joint ventures for up to five years,
 (iii) guarantees, and commitments to guarantee, for up to 90 per centum
 of the interest and unpaid principal of private loans to fund a minority
 share of such joint ventures for up to five years, and (iv) making available
 equipment, facilities, and personnel,'. []   (b) Section 28 of the Act of March 3, 1901 (15 U.S.C. 278n),
 is further amended-- []   (1) by redesignating subsection (e) as subsection (h);
 and []   (2) by inserting immediately after subsection (d) the
 following new subsections: []   `(e) The Secretary may provide no financial assistance,
 including loan guarantees, under subsection (b)(1) of this section except to
 the extent authorized by law and provided for in advance in appropriations
 Acts. []   `(f) Any loan guarantees made by the Secretary pursuant to
 subsection (b)(1)(B) of this section shall, in addition to the requirements
 set forth in subsection (e) of this section, be subject to the following
 conditions: []   `(1) Each loan guarantee shall be on such terms and
 conditions as the Secretary determines, except that a guarantee shall be
 made only if-- []   `(A) the loan bears interest at a rate not to exceed such
 annual percentage on the principal obligation outstanding as the head of
 the designated agency determines to be reasonable, taking into account the
 range of interest rates prevailing in the private sector for similar loans
 and risks by the United States; []   `(B) the terms of the loan require full repayment over
 a period not to exceed thirty years, or the useful life of any physical
 asset to be financed by such loan, whichever is less (as determined by the
 Secretary); []   `(C) in the judgment of the Secretary, the amount of the loan
 (when combined with amounts available to the qualified borrower from other
 sources) will be sufficient to carry out the joint venture; and []   `(D) in the judgment of the Secretary, there is reasonable
 assurance of repayment of the loan by the qualified borrower of the guaranteed
 indebtedness. []   `(2) A loan guarantee shall not be terminated, canceled,
 or otherwise revoked, except in accordance with the terms thereof, and
 shall be conclusive evidence-- []   `(A) of the full compliance of that guarantee with the
 provisions of this Act; and []   `(B) of the approval and legality of the principal amount,
 interest rate, and all other terms of the securities, obligations, or loans
 and of the guarantee. []   `(3) The Terms and conditions of a loan guarantee shall
 provide that, if the Secretary makes a payment of principal or interest upon
 default by a borrower, the Secretary shall be subrogated to the rights of
 the recipient of such payment (and such subrogation shall be expressly set
 forth in the loan guarantee or related agreements). []   `(g)(1) The Secretary may, for the purposes of managing the
 Program, employ at the Institute such technical and professional personnel
 and fix their compensation without regard to the provisions of title 5,
 United States Code, as the Secretary may deem necessary for the discharge
 of responsibilities under this section. []   `(2) The Secretary may, under the authority provided
 by paragraph (1) of this subsection, appoint for a limited term or on a
 temporary basis, scientists, engineers, and other technical and professional
 personnel on leave of absence from industrial, academic, research, or State
 institutions to work for the Program. []   `(3) The Secretary may pay, to the extent authorized for
 certain other Federal employees by section 5723 of title 5, United States
 Code, travel expenses for any individual appointed for a limited term or
 on a termporary basis and transportation expenses of his or her immediate
 family and his or her household goods and personal effects from that
 individual's residence at the time of selection or assignment to his or her
 duty station. The Secretary may pay such travel expenses and transportation
 expenses to the same extent for such an individual's return to the former
 place of residence from his or her duty station, upon separation from the
 Federal service following an agreed period of service. The Secretary may also
 pay a per diem allowance at a rate not to exceed the daily amounts prescribed
 under section 5702 of title 5, United States Code, to such an individual,
 in lieu of and when less than transportation expenses of the immediate
 family and household goods and personal effects, for the period of his or
 her employment with the Program. Notwithstanding any other provision of law,
 the employer's contribution to any retirement, life insurance, or health
 benefit plan for an individual appointed for a term of one year or less,
 which could be extended for no more than one additional year, may be made
 or reimbursed from appropriations available to the Secretary.'. [] SALARY ADJUSTMENTS []   SEC. 7. In addition to any sums otherwise authorized by
 this Act, there are authorized to be appropriated to the Secretary for
 fiscal year 1990 such additional sums as may be necessary to make any
 adjustments in salary, pay, retirement, and other employee benefits which
 may be provided for by law. [] AVAILABILITY OF APPROPRIATIONS []   SEC. 8. Appropriations made under the authority provided
 in this act shall remain available for obligation, for expenditure, or for
 obligation and expenditure for periods specified in the Acts making such
 appropriations. [] ANNUAL INDUSTRIAL TECHNOLOGY REPORT []   SEC. 9. Section 5 of the Stevenson-Wydler Technology
 Innovation Act of 1980 (15 U.S.C. 3704) is amended by adding at the end
 the following new subsection: []   `(f) ANNUAL INDUSTRIAL TECHNOLOGY REPORT- (1) By February
 15 of each year following the date of enactment of this subsection, the
 Secretary, through the Under Secretary, shall submit to Congress a report
 on the state of United States industrial technology. Each such report shall
 include, but not be limited to-- []   `(A) a list of what the Secretary and Department of Commerce
 technical experts consider to be the most economically important technologies
 and the estimated current and future size of domestic and international
 markets for products derived from these technologies; []   `(B) a list of the technologies and markets targeted by
 major trading partners for development or capture; []   `(C) an assessment of the current state of United States
 product technology, process technology, and manufacturing capability in
 the fields of technology and the markets identified under subparagraph (A),
 as compared with the current levels of such technologies and manufacturing
 capability achieved, or future levels likely to be achieved, by major
 trading partners; []   `(D) an identification of the types of research and
 development needed to close any significant gaps or deficiencies in the
 technology base of the United States, as compared with the technology bases
 of major trading partners; []   `(E) an analysis of private and public investments in the
 United States in research and development, including Federal research and
 development investments, by department and agency, in the specific fields
 of technology and the markets identified under subparagraph (A); a summary
 of Federal policies, including research policies, to promote United States
 industrial competitiveness in those fields of technology and markets; and
 an analysis of what additional private and Federal actions are needed to
 close gaps between the civilian technology base of the United States and
 the technology bases of major trading partners, including what steps are
 necessary to ensure that the Institute can provide North American companies
 with the support technologies needed to remain competitive in those fields
 of technology and markets; []   `(F) an evaluation of flows of industrial technology between
 the United States and major trading partners, including flows of technology
 through licenses and patent sharing or cross-licensing, corporate investments
 and acquisitions, investments in unversities and government laboratories,
 technical literature, and personnel exchanges, and a summary and analysis
 of annual foreign investments in, and acquisitions of, high-technology
 firms or organizations within the United States; and []   `(G) a statement concerning any policies, regulatory
 obstacles, or other institutional problems which, in the judgment of
 the Secretary, adversely affect the creation and use of industrial
 technology in the United States or limit the contribution that Federal
 research and development makes to United States leadership in industrial
 technology. []   `(2) The Secretary may, to the extent permitted by other
 Acts, collect such information as may be necessary to prepare the annual
 report required by this subsection. []   `(3) The Directors of the Office of Science and Technology
 Policy, the Office of Management and Budget, and the National Science
 Foundation, as well as the heads of other Federal departments and agencies,
 shall provide such information and assistance in the preparation of the
 annual report as the Secretary may request.'. [] REPORTS ON MANUFACTURING []   SEC. 10. By December 1, 1989, the Secretary shall submit
 to Congress the following two reports: []   (1) A report on the feasibility and advisability of
 establishing, in affiliation with the Institute, a Quality Institute and a
 privately funded foundation to support that Quality Institute, the purpose
 of which would be-- []   (A) to conduct workshops and company tours to share
 with managers, engineers, and production employees in the United States
 advanced techniques for improving manufacturing organization, quality,
 and productivity, including team-oriented organizational approaches to
 managing production technology and corporate research and development; and
 []   (B) to help develop and disseminate model curriculums in
 advanced manufacturing which might be used by technical colleges and other
 educational institutions to provide training to students and manufacturing
 company employees. []   (2) A report analyzing the advantages and disadvantages
 of small manufacturing firms in the United States participating in new
 multicompany manufacturing centers, either on a local or regional scale,
 and what steps, if any, in the judgment of the Secretary, the Federal
 Government can and should take to encourage the development of such new
 organizations for manufacturing. [
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