STATEMENT ON PROPOSED FY 1995 RESCISSION TO
                   NIST'S FUNDING FOR INDUSTRY PROGRAMS


The February 23 action by the House Appropriations Subcommittee on
Commerce, Justice and State to rescind $46.6 million in funding for
programs at the Commerce Department's National Institute of Standards
and Technology would have damaging impacts on the full range of U.S.
industries that depend on NIST for critical technology- based research
and services.  Coming on top of the House-approved rescission of $107
million in FY 1995 funds from NIST's Advanced Technology Program, the
proposed rescission would be a substantial setback in the nation's
efforts to invest in technology for economic growth.  These actions
would be shortsighted in today's climate where rapid technological
change and global competitiveness are challenging many U.S. companies'
very survival.  They would erode the growing spirit of industry-
government technology partnerships to strengthen our economy.

The proposed $19.5 million rescission for NIST's laboratory work would
have a real impact on industry's ability to compete in both emerging and
mature markets.  NIST laboratories develop and deliver measurement
techniques, test methods, standards and other types of infrastructural
technologies and services that provide a common language needed by
industry in all stages of commerce.  These  technologies are beyond the
reach of individual companies for economic, technical or other reasons.
They are widely needed by industry and have demonstrated great returns
for the economy.  The increased funds provided in FY 1995 for these
activities are enabling NIST to support industry-focused efforts in
advanced manufacturing, biotechnology, environmental technologies,
advanced materials and processing, semiconductor metrology,  information
infrastructure, and international standards assistance.  The proposed
cuts would affect thousands of companies -- and ultimately, workers and
taxpayers -- relying on NIST to provide these infrastructural
technologies that underpin our economy.

The proposed $26.5 million rescission for the Manufacturing Extension
Partnership (MEP) would undermine this emerging nationwide network of
extension centers -- co-funded by state and local governments -- that
provide small and medium-sized manufacturers with technical assistance
as they upgrade their operations to boost competitiveness and retain or
create new jobs.  The rescission would reduce funding available for
establishing new centers around the country.  Approximately 10 new
centers could be funded in FY 1995, rather than the planned 36 centers.
This program has shown a rate of return of 7 to 1 for the federal
government's investment, with concrete benefits in increased sales, cost
savings, and jobs for small manufacturers. Reducing the number of new
centers would slow the delivery of MEP services to large regions of the
United States -- and many thousands of small companies.

The proposed rescission of $0.6 million for the Baldrige National
Quality Program  is small in absolute terms but constitutes a
substantial fraction of NIST's $3.4 million quality improvement program.
It would force the cancellation of brand new pilot programs to help the
education and health care sectors take advantage of proven quality
improvement efforts that are making large, positive differences for U.S.
industry. At a time when government and business leaders -- and citizens
-- are fighting to contain costs in both health care and education, it
is foolish to abandon a promising approach for making substantial
improvements in these systems.  After several years of planning that
involved both communities, these programs literally have just been
launched -- and, under the proposed rescission, would have to be
terminated.


2/24/95