Then, do I understand this letter, Mr. Wickes, that by this letter a request was made of ODM to dispose of the 5,330 tons of nonspecification aluminum in the DPA inventory? Mr. WICKES. Yes, sir. Mr. COBURN. Just that, correct? Mr. WICKES. No. In addition, this quantity, 2,250 short tons of strategic and critical material inventory, the two lots mentioned. Mr. COBURN. As I read the letter-maybe I am in error-it provided the request was made to dispose now of the DPA material and the stockpile material was to follow later? Mr. WICKES. No. I think what was meant is that in the strategic and critical materials stockpile there was some additional nonspecification material specified as grade H, which totaled 5,232 tons. We were not requesting that until after we had disposed of almost the same quantity from the DPA. Mr. COBURN. All right, I see. So you are requesting here disposal of approximately 5,000 tons of nonspecification aluminum from the DPA and about 2,000 nonspecification tons from the stockpile? Mr. WICKES. That is right, sir. This is the same quantity, with a little change, that was originally requested. Mr. COBURN. Now, Mr. Chairman, I offer for the record a letter dated October 13, 1960, to Mr. Holtz from Mr. Hughes. Senator SYMINGTON. Without objection. Mr. COBURN. And I would like to read it, it being short. Mr. HAROLD F. HOLTZ, Commissioner, Defense Materials Service, General Services Administration, Washington, D.C. OCTOBER 13, 1960. DEAR MR. HOLTZ: Reply to your letter of September 2 recommending disposal of certain small batches of subspecification aluminum has been delayed pending several studies pertaining to disposals generally and aluminum in particular. When discussions of the several considerations under review have been completed we shall write you with respect to your recommendations. Sincerely, RUSSELL H. HUGHES, Deputy Assistant Director. Now, Mr. Chairman, I offer for the record another letter dated August 16, 1961, to Mr. Russell H. Hughes from Maurice J. Connell, Commissioner. I offer for the record this letter. Senator SYMINGTON. Will you read it? Mr. COBURN. By the way, let us identify Mr. Connell. Who is he? Mr. WICKES. Mr. Connell is the present Commissioner of Defense Materials Service of GSA. Mr. COBURN. And may I read the letter, Mr. Chairman? Senator SYMINGTON. Yes. Mr. COBURN. It reads as follows: Mr. RUSSELL H. HUGHES, Deputy Assistant Director for Production and Materials, AUGUST 16, 1961. DEAR MR. HUGHES: Since the exchange of correspondence last year when GSA first recommended disposal of nonspecification DPA aluminum pigs (Mr. Holtz' letter dated September 2, 1960, and your reply October 13, 1960) we have been watching the development of two trends. (1) Competitive factors have driven the producers to higher purity grades of aluminum, and the consuming industry is increasingly becoming geared to high purity metal, (2) The primary production level is good and demand continues to rise. Since the stockpile objective is exceeded with metal of 99.65 percent aluminum content, and the DPA material does not conform to the minimum stockpile specifications of 99.3 percent aluminum, we believe that disposal is in order and that the impact upon producers of the modern quality furnaced metal will be negligible. Considering the time that it will take to develop a disposal plan and to obtain the approval of all the interested governmental agencies concerned, it is requested that you again give consideration to our recommendation to initiate disposals from the DPA inventory of approximately 5,330 short tons of nonspecification grade H pig aluminum. Sincerely yours, MAURICE J. CONNELL, Commissioner. You are familiar with that letter, are you, Mr. Witness? Mr. WICKES. Yes, sir. Mr. COBURN. Have you ever received a reply from Mr. Hughes? Mr. COBURN. That was written on August 16, 1961. You are still awaiting a reply? Mr. WICKES. Yes, sir. Mr. COBURN. So, as I get it, this nonspecification, small lot of aluminium was never disposed of at all? Mr. WICKES. No, sir. Mr. COBURN. And still remains in the stockpile or the DPA inventory? Mr. WICKES. Yes, sir. Mr. COBURN. Actually this was such a small lot that GSA was trying to get rid of this to do a little housecleaning, was it not? Mr. WICKES. Yes, sir. Mr. COBURN. These odd lots of nonspecification material are simply a trouble to store, are they not, and to look after? Mr. WICKES. Yes, sir. Mr. COBURN. And you try to get rid of those nonspecification items and small, odd-lot items like that as quickly as you can? Mr. WICKES. Yes, sir. Mr. COBURN. And you were trying to do that in this case? Mr. WICKES. Yes, sir. Mr. COBURN. Now, Mr. Witness, if you will proceed further with the chart that you have provided us with Senator CANNON. Mr. Chairman, if I may make an observation, it would seem to me that they might well be considerably concerned if it takes over 10 months and 2 days to get an answer to a letter, I can see why they would be concerned that it might take quite a little while to develop a disposal plan. Mr. COBURN. I think that is a very good observation, Senator. Senator SYMINGTON. Senator Beall? Senator BEALL. No. Senator SYMINGTON. Senator Thurmond? Senator THURMOND. Not at this time. Senator SYMINGTON. Senator Bush? Senator BUSH. No, sir. Senator SYMINGTON. Will you proceed, Mr. Counsel? Mr. COBURN. Now, Mr. Witness, if you will return to the chart, if you come down to the item chromium metal, which is on the first page, there is a notation there, "authorization withdrawn by OEP," on the 15th of June 1961. Can you tell us under what circumstances that authorization was withdrawn? Mr. WICKES. These 17 tons of chromium metal are in the supplemental stockpile. Mr. COBURN. Are in the supplemental stockpile, you say? Mr. WICKES. Are in the supplemental stockpile, and for that reason were withdrawn. Mr. COBURN. Do I understand you, then, that a request was made by GSA to dispose of this material, and then OEP turned down the request because of the opinion of its counsel that material in the supplemental stockpile could not be disposed of? Mr. WICKES. That is correct, sir. Mr. COBURN. I notice that we have a good deal of chromium in the stockpile. What grade is this, can you tell me? Mr. WICKES. This is subspecification alumino-thermic chromium metal. Mr. COBURN. This is subspecification grade? Mr. WICKES. Yes, sir. Mr. COBURN. This is of chemical grade or metallurgical, would you say? Mr. WICKES. Metallurgical. Mr. COBURN. I notice, Mr. Chairman, that with reference to chromite, metallurgical grade, we have all together in our inventories 5,229,000 short tons, and our maximum objective is 2,700,000 tons, so that we have an excess of 2,529,000 tons of this material. And you say this was not even specification material? Mr. WICKES. No, sir. Mr. COBURN. Mr. Witness, if you go down the list here, do you find there is columbium bearing tin slag? Oh, I beg your pardon, you got authority to dispose of that, did you not? Mr. WICKES. Yes, sir. Mr. COBURN. All right. Then, if you will turn over to the second page of your chartSenator SYMINGTON. To be sure we understand each other, there was never any authority given for final disposal because there was no agreement among the other agencies, on columbium tin? Mr. WICKES. No, sir. Mr. COBURN. As I understand that, Mr. Chairman, columbium tin on this list here was a DPA item, and, therefore, did not require any authorization. Senator SYMINGTON. I see. Mr. COBURN. And it is found over here in the final column that a notice to the public was published in the disposal of that columbium. I made a mistake in asking the witness to refer to that. All right, now, Mr. Witness, if you will turn to corundum, nonspecification grade, do I understand you that you have not obtained an authorization after request by GSA to dispose of this corundum? Mr. WICKES. Yes, sir. Mr. COBURN. Would you tell us the circumstances under which an effort was made by GSA to obtain authority to dispose of this? Mr. WICKES. Corundum appeared on one of the early lists or requests for disposals that we made of ODM in late 1958. We started on the basis of materials that were nonspecification or nonobjective or were on a list known as group 2 material, which was a watch list that had no objectives. All of the materials that we asked for in those early days were taken from these lists, which appear in the stockpile reports to the Congress, the semiannual report which lists the nonobjective, the nonspecification materials. Corundum was one of them. Corundum was on this list, a watch list, that had no objective at the time. Mr. COBURN. Speak loudly, now. I am afraid we cannot hear you very well, Mr. Witness. Mr. WICKES. It was a watch list that had no objectives at the time. Mr. COBURN. You mean at the time of your request to dispose of it? Mr. WICKES. At the time of our request to dispose of it. It was nonspecification material, so to us it was a prime candidate for disposal. After the authorization was refused, and we received a letter from the ODM at the time stating that they were refusing the authorization, the material was taken off group 2 and an objective established for it. Mr. COBURN. Let me see if I understand that. At the time that the request was made by GSA to dispose of this small, this rather small amount of corundum, it was not then regarded as a strategic and critical material, is that right? Mr. WICKES. That is correct, sir. Mr. COBURN. It was not on the strategic and critical list? Mr. WICKES. No, sir. Mr. COBURN. But, in order to avoid disposing of it, OEP then put it on the critical and strategic list when you tried to get rid of it, is that right? Mr. WICKES. I would not say that; no, sir. Mr. COBURN. Well, all right, I do not want to overstate the thing or put words in your mouth, but it is a fact, is it, that you made a request to dispose of this material when it was not listed as strategic and critical? Mr. WICKES. That is correct, sir. Mr. COBURN. And you got back word from OEP or ODM, then, I think, denying your request? Mr. WICKES. Yes, sir. 83502-62-pt. 4- -3 Mr. COBURN. Shortly after that was corundum for the first time put on the strategic and critical list? Mr. WICKES. Yes, sir. Mr. COBURN. And there it appears now, 2,008 short tons of corundum on our big chart, is that correct? Mr. WICKES. Yes, sir. Mr. COBURN. Mr. Witness, if you will go down now to the next item where no authorization was granted, fluorspar, I believe, on page 2 of the table? Mr. WICKES. Yes, sir. Mr. COBURN. And do I understand you there that this fluorspar was nonspecification grade? Mr. WICKES. Yes, sir. Mr. COBURN. And was in the national stockpile? Mr. WICKES. Yes, sir. Mr. COBURN. And that GSA made a request of ODM to sell 2,404 short tons? Mr. WICKES. Yes, sir. Mr. COBURN. Was your request granted? Mr. WICKES. No, sir. Mr. COBURN. There are two kinds of fluorspar in the stockpile, acid grade and metallurgical grade. Was this acid grade or metallurgical grade? Mr. WICKES. This is acid grade. Mr. COBURN. Mr. Chairman, I notice that as to fluorspar, acid grade, we at the present time have 1,100,000 short tons in the inventories, and our maximum objective is 280,000 short tons, so that we have a surplus of 820,000 short tons. Will you tell us the circumstances under which this request was refused? Mr. WICKES. We received a letter that stated: The acid grade fluorspar is in surplus supply. I do not believe that the Gorernment should dispose of this material in competition with industry at the same time that it is considering measures to provide relief to the industry. (The complete letter is printed on p. 1052.) Senator SYMINGTON. Who signed the letter? Mr. WICKES. Mr. Hoegh. Mr. COBURN. Who was Mr. Hoegh? Mr. WICKES. He was the Director of OCDM. Mr. COBURN. Then, as I understand it, the request was denied because it might interfere with the markets in fluorspar at a time when we had an enormous amount of fluorspar in the inventory? Mr. WICKES. Yes, sir. Mr. COBURN. And this was only 2,404 short tons? Mr. WICKES. Yes, sir. Senator BEALL. Counsel, when was that letter written? Mr. COBURN. What is the date of that letter, Mr. Witness? Mr. WICKES. January 5, 1959. Mr. COBURN. And this fluorspar that was offered, I mean that you tried to dispose of, was not even up to the specification of the stock |