This was always my prediction rather than a draft, that the military would 
fill their ranks from the swelling prison population before they would ever 
reinstate a draft that might reignite the campuses or impact middle class 
suburban whites. Now it's coming out in documents. It's starting with 
"civilian" labor camps on military bases, but you can bet that once the 
military has "cherry-picked" the prisons of "manageable" inmate-workers, 
they will institute a program to transit some of those prisoners under 
their control directly into the armed forces in return for sentence reductions:

Date: Sat, 4 Mar 2006 16:31:50 -0500
Subject: Prison Labor For the Military!

I thought this should be of concern to Black folks since we make up
a large proportion of the prison population.
Olushola
http://www.urbansurvival.com/week.htm
Its Real: Prison Labor for the Military
We received an interesting news tip yesterday - and one that we find
quite interesting. It has to do with official plans of the US Army
to enact something called the "Civilian Inmate Labor Program." The
general idea is that with troop manpower running low, and local
demand for prisoner housing running high, the US Army can pick up
some cheap labor from the Federal Bureau of Prisons and perhaps
State prisons.
As you may recall, we reported a few weeks back that we've heard
that troops are in such short supply in Iraq that ordinary seamen
off Navy Trident subs are being given quickie training as sentries,
rather than serving on strategic missile platforms, and off they go
to Iraq. Now, with the receipt of the Army plans to use federal
prisoners for labor, we have to ask what kind of picture this paints
of the military's state of readiness?
Specifics of the program, outlined in official Army Regulation
210-35 at http://www.army.mil/usapa/epubs/pdf/r210_35.pdf include
some of the following:
a.. The newest set of changes quietly went into effect 14 February
2005.
b.. The unclassified regulations describe their purpose as follows:
"This regulation provides Army policy and guidance for establishing
civilian inmate labor programs and civilian prison camps on Army
installations. Sources of civilian inmate labor are limited to on-
and off-post Federal corrections facilities, State and/or local
corrections facilities operating from on-post prison camps pursuant
to leases under Section 2667, Title 10, United States Code (10 USC
2667), and off-post State corrections facilities participating in
the demonstration project authorized under Section 1065, Public Law
(PL) 103-337. Otherwise, State and/or local inmate labor from
off-post corrections facilities is currently excluded from this
program."
c.. "(2) Under no circumstances will the following types of inmates
be permitted in the Civilian Inmate Labor Program: (a) A person in
whom there is a significant public interest as determined by the
corrections facility superintendent in coordination with the
installation commander. (b) A person who has been a significant
management problem in their current corrections facility or in
another facility. (c) A principal organized crime figure. (d) An
inmate convicted of a sex offense or whose criminal history includes
such conduct. (e) An inmate convicted of a violent crime or whose
criminal history includes such conduct. (f) An inmate convicted of
the sale or intent to distribute illegal drugs who held a leadership
position in any drug conspiracy, or has been involved with drugs
within the last 3 years while in prison. (g) An escape risk. (h) An
inmate who poses a threat to the general public as determined by the
corrections facility superintendent in coordination with the
installation commander. (i) An inmate declared or found insane or
mentally incompetent by a court, administrative proceeding, or
physician, or under treatment for a mental disease or disorder. (j)
An inmate convicted of arson. (k) A Federal inmate convicted while
on active duty, presently serving a sentence for that conviction.
In short, this seems to be a low key program, perhaps driven in part
by state facilities that are trying to find "creative ways" to
offload minimum security inmates because of the huge number of
prisoners in US prisons today. Nevertheless, some of the wording is
troubling:
Chapter 3 Establishing Civilian Inmate Prison Camps on Army
Installations 3-1.
Policy statement It is not Army policy to solicit offers from
correctional systems to establish civilian inmate prison camps on
Army installations. Nevertheless, the Army recognizes that these
correctional systems may approach installations to lease land on
which to build corrections facilities, or to lease unoccupied
facilities. The Army will evaluate requests to establish civilian
inmate prison camps on Army installations on a case by case basis.
These prison camps will house minimum and low security inmates, as
determined by the correctional systems. However, the Army's primary
purpose for allowing establishment of prison camps on Army
installations is to use the resident nonviolent civilian inmate
labor pool to work on the leased portions of the installation.

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