[Public Papers of the Presidents of the United States: George H. W. Bush (1992-1993, Book II)]
[October 28, 1992]
[Pages 2062-2063]
[From the U.S. Government Publishing Office www.gpo.gov]



Statement on Signing the Defense Production Act Amendments of 1992
October 28, 1992

    Today I have signed into law S. 347, the ``Defense Production Act 
Amendments of 1992.''
    The Defense Production Act (DPA) provides the President with 
extraordinary authority to establish production and material allocation 
priorities when the national defense so requires. The DPA expired on 
March 1, 1992. Enactment of S. 347 restores that authority through 
September 30, 1995. The availability of these authorities to the 
President, in the event of unexpected national defense crises, enables 
him to ensure that the Nation will have the equipment and supplies it 
needs under all circumstances.
    I must, however, note several reservations that I have regarding 
sections 124, 135, and 163. Section 124 requires the Secretary of 
Commerce to report to specified congressional committees on the impact 
of offset agreements between importers and exporters of American-made 
weapons systems. These agreements stipulate, as a precondition of a 
sale, that the exporter will partially compensate the importer--through 
either co-production, countertrade, or barter arrangements--for the 
purchase. The report is to include alternative findings or 
recommendations on offsets offered by heads of other departments and 
agencies to the Secretary. I sign this bill with the understanding that 
this provision does not detract from my constitutional authority to 
protect the executive branch deliberative process.
    Section 135 requires the Government to keep a new data base on 
America's businesses. Under section 705 of the DPA, the Government is 
permitted, for the purpose of collecting information for the data base, 
to issue subpoenas to America's businesses, issue administrative search 
warrants to inspect the premises of America's businesses,

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and require America's businesses to keep records and make reports to the 
Government. Failure to comply with those Government requirements is 
punishable by a fine or up to 1 year in jail.
    Collecting industrial base data from America's companies through the 
means provided in section 705 would intrude inappropriately in peacetime 
into the lives of Americans who own and work in the Nation's businesses. 
Such intrusion is neither necessary to meet U.S. national defense needs 
nor would be consistent with the liberties of those who own and work in 
America's businesses. Accordingly, I direct the affected heads of 
executive departments and agencies not to use subpoena, search warrant, 
or other intrusive techniques under the authority of section 705 of the 
Defense Production Act in implementing section 722 of the Act without 
the specific approval of the President. They will proceed instead to 
seek information from America's businesses on a voluntary basis. 
However, the provisions of section 705 may be used to support other 
programs and other provisions of the Defense Production Act, in 
accordance with current delegations of authority under section 705.
    Section 163 requires a study on foreign investment in the United 
States and the possible motives of foreign investors. While this 
Administration will prepare such a study, I note again that I remain 
committed to the historic, open investment policy that I reaffirmed in 
my statement of December 26, 1991.

                                                             George Bush

The White House,
October 28, 1992.

                    Note: S. 347, approved October 28, was assigned 
                        Public Law No. 102-558. This statement was 
                        released by the Office of the Press Secretary on 
                        October 29.