7

     (b) The Secretary of Commerce shall prepare the annual report
required by section 309(a) of the Act in consultation with the
Secretaries of Defense, Treasury, Labor, State, the United States Trade
Representative, the Arms Control and Disarmament Agency, the Director of
Central Intelligence, and the heads of other departments and agencies as
required.  The heads of Federal departments and agencies shall provide
the Secretary of Commerce with such information as may be necessary for
the effective performance of this function.

     (c) The offset report shall be subject to the normal interagency
clearance process conducted by the Director, OMB, prior to the report's
submission by the President to Congress.

PART V - VOLUNTARY AGREEMENTS AND ADVISORY COMMITTEES

     Sec. 501.  Appointments.   The authority of the President under
sections 708(c) and (d) of the Act is delegated to the heads of each
Federal department or agency, except that, insofar as that authority
relates to section 101 of the Act, it is delegated only to the heads of
each Federal department or agency assigned functions under section
201(a) of this order.  The authority delegated under this section shall
be exercised pursuant to the provisions of section 708 of the Act, and
copies and the status of the use of such delegations shall be furnished
to the Director, FEMA.

     Sec. 502.  Advisory Committees.  The authority of the President
under section 708(d) of the Act and delegated in section 501 of this
order (relating to establishment of advisory committees) shall be
exercised only after consultation with, and in accordance with,
guidelines and procedures established by the Administrator of General
Services.

          PART VI - EMPLOYMENT OF PERSONNEL

     Sec. 601.  National Defense Executive Reserve.  (a) In accordance
with section 710(e) of the Act, there is established in the Executive
Branch a National Defense Executive Reserve ("NDER") composed of persons
of recognized expertise from various segments of the private sector and
from government (except full-time federal employees) for training for
employment in executive positions in the Federal Government in the event
of an emergency that requires such employment.

     (b) The head of any department or agency may establish a unit of
the NDER in the department or agency and train members of that unit.

     (c) The head of each department or agency with an NDER unit is
authorized to exercise the President's authority to employ civilian
personnel in accordance with section 703(a) of the Act when activating
all or a part of its NDER unit.  The exercise of this authority shall be
subject to the provisions of subsections 601(d) and (e) of this order
and shall not be redelegated.

     (d) The head of a department or agency may activate an NDER unit,
in whole or in part, upon the written determination that an emergency
affecting the national security or defense preparedness of the United
States exists and that the activation of the unit is necessary to carry
out the emergency program functions of the department or agency.