I am likewise directing the Secretary of Agriculture to initiate action designed to acquire lead and zinc of foreign origin, from the proceeds of foreign sales of surplus agricultural commodities, for the supplemental stockpile authorized by section 104 of the Agricultural Trade Development and Assistance Act of 1954. This supplemental stockpile is intended to be above and beyond the needs of our regular stockpiles under the Stockpiling Act, and the materials in the supplemental stockpile will also be insulated to be released only under stringent statute. In addition, I am directing the Secretary of State to seek recognition by the foreign countries which are principal suppliers of lead and zinc that this increased stockpile buying is designed to help domestic production and that they will not themselves seek to take any unfair advantage of it. It is my belief that the above actions will help bring about the attainment of market prices for lead and zinc that are sufficient to maintain an adequate domestic mobilization base. The outlook for lead and zinc is improved. There have been some increases in prices since early in the year. There are some excess stocks at present, notably in the case of zinc, but it appears that these inventories can be reduced by stockpiling purchases together with a high rate of consumption which is indicated by the general economic outlook. In addition, the volume of imports thus far this year has been considerably lower than the rate during 1953. If the course of action above outlined has not accomplished the objectives we seek, I will be prepared early next year to consider even more far-reaching measures, and to make appropriate recommendations to the Congress. Sincerely, DWIGHT D. EISENHOWER. The following calculation on lead-zinc imports into the United States indicates that were these countries to continue flooding United States markets with imports in 1958 at the 1957 rate, and were 1958 prices to prevail at their current level throughout the year, exchange derived from sale of this large tonnage would decrease by about $30 million. It further indicates that a reduction of 15 percent in deliveries would increase dollar revenue by $26 million over 1957 if such a reduction would result in maintaining prices at the administration's peril points. TABLE L-1.-Unmanufactured lead-United States production, foreign trade, consumption, ratios of net imports to production and consumption, and average market prices, 1938-57 [In short tons of lead content] Imports for consumption Domestic exports 3 Net imports Lead consumption 4 Total 3 1 Represents recoverable metal content of domestic ores, concentrates, and tailings. 2. Represents lead recovered in all forms from old scrap. Represents lead in ores, concentrates, flue dust, and mattes; lead bullion; lead pigs and bars; reclaimed and scrap lead; antimonial lead and type metal; miscellaneous lead alloys. Represents all unmanufactured lead consumed from primary and secondary sources including lead in alloys and lead in ores consumed directly in the manufacture of lead pigments and salts as reported to the U. S. Bureau of Mines. These data do not include withdrawals for the strategic Government stockpile. Average New York price of common lead as reported by E. & M. J. Not available. 7 Estimates. Source: U. 8. Bureau of Mines. U. 8. Department of Commerce. LEAD SUPPLY AND CONSUMPTION IN UNITED STATES AND IN FREE WORLD TABLE L-2.—Lead, in the United States 1 Of this difference industry stocks accounted for approximately 46,695 tons. In the United States supply was in excess of industrial requirements in the 6-year period by 918,839 tons or 18.0 percent. Yearly oversupply was as follows: 1952, 35.9 percent; 1953, 10.0 percent; 1954, 9.2 percent; 1955, 9.7 percent; 1956, 15.9 percent; and 1957, 21.8 percent. TABLE L-3.-Lead, 1954 to mid-1957: Free world mine production, free world consumption primary lead, and free world excess production Excess of supply over industrial requirements varied from 3.7 percent in 1955 to 8.8 percent in 1954 and averaged 6.5 percent for the 3-year period. Source: U. S. Department of the Interior. |