Act No. 12,709. - Creation of the General Directorate of Military Manufacturing.

The Senate and Chamber of Deputies of the Argentine Nation, assembled in Congress, etc., strongly sanctioned by Law:

CHAPTER I

Creation. - Denomination. - Object.

Article 1 Artículo See the General Directorate of Military Manufactures that will function as an auto-archic entity, under the dependence of the Ministry of War, with the capacity to act publicly and privately, according to what the general laws of the Nation and the specials that affect its functioning, within the limitations of the present. Art. 2° . They will depend on the General Directorate of Military Manufactures, the military factories and workshops and the installations concurrent to their operation, covered by the purpose of this law, which are currently in place and which are established. Art. 3° . They are powers and functions of the General Directorate of Military Manufacturing:

(a) Conduct studies, research and statistics leading to the knowledge of the country ' s industrial possibilities, related to the production of war materials and elements and to the preparation of the corresponding industrial mobilization;

(b) Develop materials and elements of war;

(c) Perform, in accordance with the provisions of the Mining Code, explorations and exploitations aimed at obtaining: copper, iron, manganese, wolfram, aluminum, beryllium and other materials necessary for the manufacture of war materials;

(d) To build the necessary works for the purposes of this law;

(e) Promote related industries that are interested in compliance with this law.

Art. 4° . Aluminium and beryllium mines are included in the first category. Art. 5° . In addition to the essential mission on the manufacture of war materials and as appropriate within their own organization and for the best technical and economic use of industry, the military factories may develop similar elements for general consumption, when the Ministry of Agriculture is of the opinion that they are not produced by the private industry, or that they are in insufficient quantities for the needs of the country. Art. 6° 6 The General Directorate of Military Manufactures may carry out with the private industry, ad referendum of the executive branch, agreements of an industrial and commercial nature, in order to comply with this law. Art. 7° 7 For the purposes set forth in this Act, the Executive Power may authorize the integration of joint ventures between the General Directorate of Military Manufacturing and private capital under the terms of Law No. 12.161.

When the value of the conventions referred to in Article 6 and the present, exceeds partial or as a whole, within a financial period, the sum of $ 1,000,000 m/n, the Executive Power will previously require the approval of the Congress.

Art. 8° The private companies referred to in articles 6 and 7°, with which the General Directorate of Military Manufacturing may make aid agreements or constitute joint ventures, shall be legal persons established in the country and who do not depend or form part of any company, trust or holding that possesses similar interests abroad in the manufacture of weapons or ammunition.

CHAPTER II

Management and administration

Art. 9° 9 The General Directorate will be administered by a directorate composed of a president and four vowels, appointed by the executive branch with a Senate agreement. Two of the vowels will be civilians. The President will serve as the Director General.

The board members will be native Argentines, last four years in their functions and can be reelected.

The directory will be partially renewed every two years.

Art. 10. The directory will have the following functions and duties:

(a) To conclude contracts on sales, jobs, supplies, acquisition of material, acquisition and location of goods and furniture for use, execution of works, transport, insurance or other related to their purposes, through public tendering and without it, up to $20,000 national currency;

(b) Perform with prior approval of the Executive Common Credit Operations, which shall be met with their own resources;

(c) Manage funds allocated for the enforcement of this law, whether from general income, titles of the Nation or borrowing; and other property belonging to the institution;

(d) Reach and conclude judicial or extrajudicial conventions with the authorization of the Executive;

(e) Carry out the annual general inventory of all share values;

(f) To project annually its overall cost and resource calculation budget;

(g) Name the vowel to replace the general director in the event of a license or impediment;

(h) Appointment of administrative and technical staff;

(i) Establish the scale for their civilian employees, ensuring their stability in the respective regulations.

Art. 11. Where there are urgent reasons, when the required facilities, materials and items are patented or when the purchases are essential to make them abroad, the general direction, with the approval of the executive branch and the intervention of the Ministry of Finance, may be removed from the public tender procedure, provided that the amount of the operations, partial or as a whole, does not exceed the sum of $200,000 national currency. Art. 12. The director-general or the director who replaces him will be the legal and administrative representative of the division and will be able to confer powers for the necessary procedures. Art. 13. Members of the board and administrative and technical staff of the General Directorate may not accumulate any other national, provincial or municipal retribution, except for the teacher. If they enjoy national, provincial or municipal salary or retirement, or military retirement, they shall be entitled only to the maximum remuneration. Art. 14. The members of the board shall be responsible, personally and in solidarity, for the acts of the same one carried out with his intervention, except in record of having voted against the respective resolution. Art. 15. The acquisition of materials will give preference to nationals, on equal terms, quality and price, computing in the latter, regarding foreign materials, the amount of customs duties and expenses. Art. 16. The executive branch shall designate as a staff member of the Directorate, who shall be responsible for the Ministry of Finance. The syndicate may attend all sessions of the directory, have the authority to examine the books and other documents of the Directorate and shall subject the performance of its functions to the regulation issued by the Executive Power with the intervention of the Ministries of Finance and War.

CHAPTER III

Economic-financial regime

Art. 17. As the initial capital of the General Directorate of Military Manufactures, the result of the inventory balance to be carried out at the date of the promulgation of this law with the values assigned by the Executive to the properties, machinery, instruments, funds and other movable property currently affected to the construction of the various military factories and workshops and facilities concurrent to the operation of them.

They shall also include such capital the allocations for the constructions and installations to complete or expand existing works under special laws or general budget of the Nation and those from the headings determined in article 19 of this Act.

Art. 18. The operation and financial-financial regime of the General Directorate of Military Manufacturing shall be developed on the basis of the production of the war material necessary for the total manufacture of each of the respective materials or groups; or partly, with the participation of the private industry. Work programmes will be organized for periods not less than five years:

(a) To replenish annual consumption;

(b) For the progressive formation of the reserve of mobilization.

Art. 19. In addition to the General Directorate of Military Manufactures during the years 1941 to 1945, five peso quotas 10,000.000 m/n., each one, empowering the executive branch to issue, at any time, in sufficient quantity, titles of public debt, able to anticipate these general income funds, for the acquisition of land, construction of works and installations of the factories, for the development of raw materials and of this material war. Art. 20. The annual production of the military factories will be adjusted in the first five years:

(a) To the funds allocated in the preceding article;

(b) To items for purchases or special manufactures;

(c) To the games that assign the War budget for the

provision or acquisition of annual consumption materials.

Art. 21. Separately account shall be made of third-party productions, as well as in cases of mixed exploitations referred to in article 7°, the participation of the Authority; and their financial results shall be established in the same way. Art. 22. The profits made and liquid, after the necessary punishments and amortizations, will be used to comply with this law. Art. 23. The General Directorate will project and submit its budget annually to the Executive Branch, who will consider it and approve it with the intervention of the Ministry of Finance, then raising it to Congress for consideration, applying this budget while Congress has not considered it. Art. 24. The accountability of the General Directorate of Military Manufacturing to the National Account for the purposes set out in article 87 of Act No. 428 shall be a balance of funds; and at the end of each exercise, in a budget balance, a statement of assets and liabilities and a general statement of profits and losses.

The National Account shall intervene in the approval of the accounts for the investment expenses of funds authorized by the general management, with the authority to examine books and documents, designate intervenors and order the arches that it deems appropriate.

Art. 25. The General Directorate of Military Manufacturing and its dependencies shall deposit within forty-eight Hours in the Bank of the Argentine Nation or branch offices, in view of the fact that it will be called the "General Directorate of Military Manufacturings", the production of the sales or receipts, on which funds will not be able to rotate but the general director or the director that replaces it, with the signature of the counter and the tesorero, or in its authorization, Art. 26. The financial periods of the General Directorate of Military Manufacturing shall be closed in accordance with the provisions of article 43 of Act No. 428. The Directorate-General shall promptly raise the annual report for the period ended to the Executive.

CHAPTER IV

General provisions

Art. 27. The installation and operation in the country of weapons and ammunition factories and other materials of an essentially military nature, which are not owned by the State, shall be authorized in each particular case by the Executive Power in General Agreement of Ministers, upon advice from the General Directorate of Military Manufacturing, taking into account the availability of raw materials, their own needs and the total capacity of production. Art. 28. Where the raw materials of national origin, necessary for the manufacture of weapons and ammunition, are of little or of limited production, the Executive Power is empowered to determine, upon advice from the General Directorate of Military Manufacturing, the maximum quantities that each of them will be able to industrialize the private industry annually. In addition, if necessary, it is also entitled to distribute quotas for the development of such national raw materials in proportion to quantities used by industrial establishments in the last five years prior to the year in which the distribution is made.

New enterprises that require the use of national raw materials may only be installed in the country when quotas are available or when the Executive is of the opinion, with the corresponding report of the Directorate-General for Manufacturing

Military, authorization is appropriate for the purposes of national defence or general economy.

Art. 29. The export of the following metals or alloys, their alloys and combinations: iron, steel, copper, aluminum, antimony, zinc, chromium, nickel, bronze and brass; new, used or out of use, as well as in the form of waste, fragments, cuts, wastes or wastes. This prohibition does not apply to industrialized products in the country containing such metals.

When the national production of the above-mentioned metals, except iron, exceeds the widely calculated consumption requirements, the Executive Power, through the advice of the General Directorate of Military Manufacturing, may authorize the export of the surplus. The granting of these export permits may be conditional on the granting by other countries of export permits of materials essential to the national defence or the general economy of the country.

Art. 30. The necessary properties for the establishment of factories, workshops, fields of experimentation, access roads, energy sources and other facilities are declared public and subject to expropriation in accordance with the plans approved by the Executive Branch in each case. Art. 31. The exclusive property establishments of the General Directorate of Military Manufacturing shall be exempt from any tax, with the exception of the rates that respond to municipal services. The raw materials required for their manufactures shall enjoy the same exemption. Art. 32. Amend Article 67 (b) of the Orderly Text of Internal Tax Laws (Act 12.148, Article 30), adding at the end of it: "and for the manufacture of products intended for national defence." Art. 33. The provisions of this law shall not be applicable or affect the functional regime of the establishments that for the construction, manufacture and repair of war materials, be of belonging to the Ministry of Marina, as well as the materials that the Navy acquires, introduces and manufactures, either for its workshops, shipyards, factories, arsenals, etc., as those that were necessary to the private industry for the fulfillment of the contracts that it celebrates. Art. 34. The State has a monopoly on the export of weapons, ammunition and war materials. The executive branch, in agreement of ministers, may exceptionally authorize the export of weapons, ammunition and war materials, for a value not exceeding 500,000 pesos to the same country for one year. In each case, the executive branch will report to the Congress of the authorized operation. When the value of the materials to be exported exceeds that amount, the express authorization of the Congress will be necessary. Art. 35. In the application of the provisions of this chapter, as well as in articles 6 and 7 of this law, the decree of the Executive Power shall be issued with the intervention of the Ministries of War, Finance, Agriculture and Marine.

CHAPTER V

Transitional arrangements

Art. 36. For the purposes of Article 9°, two members of the first directory will be appointed for two years. Art. 37. Until the Congress sanctioned the first budget of the General Directorate of Military Manufacturing, it will govern the one projected by it, with the sole approval of the Executive. Art. 38. The executive branch shall regulate the organization and operation of the General Directorate of Military Manufacturing and its units. Art. 39. Default all provisions of other laws that oppose the present. Art. 40. Contact the Executive.

Given in the meeting room of the Argentine Congress, in Buenos Aires, on the twenty-six days of the month of September of the year a thousand nine hundred and forty-one.

PATRON COSTAS -SR LUIS CANTILO -Gustavo Figueroa L. Zavalla Carbó -

Registered under the No. 12.709-Buenos Aires, October 9, 1941 -102.081. -7867-

By TANTO:

Please note by Law of the Nation, fill in, report, issue in Military Bulletin 1. Part, insert yourself in the National Register and arched. CASTILLO -Juan N: Tonazzi