(The documents referred to are as follows:) EXECUTIVE OFFICE OF THE PRESIDENT, Hon. FRANKLIN G. FLOETE, OFFICE OF THE DIRECTOR, Washington, D.C. January 5, 1959. Administrator, General Services Administration, DEAR MR. FLOETE: This is in reference to the disposals of strategic materials proposed in letters from Mr. Holtz to Mr. Hughes, dated October 24 and 28, and November 19. The OCDM review of these proposals indicates that, under the latest revised determination of stockpile needs, disposal actions may be initiated pursuant to section 3(e) of the Strategic and Critical Materials Stock Piling Act and to Defense Mobilization Orders V-7 and V-3 for the following materials: Material: Approximate quantity to be included in the disposal plan long tons. Chromite (Butte, Mont., inventory) Quartz crystals (erude crystals designated). 2.050 18,907 _short tons- 2, 180 19,000 6.285 ---pounds _short tons__ ._____do___ 6.000 Calcined alumina (material at Sharonville, Ohio). Zinc oxide pellets (material at Granite City, Ill.)--------pounds__ 165, 273 These materials are all off-grade and in some cases are costly to store or occupy space that could be used advantageously for other purposes. It is not intended that the authorization to dispose of them, however, include any materials that should be counted against strategic stockpile objectives. If there are any problems in this respect, this Office would appreciate your views in order that changes in the instructions for crediting of materials to the strategic stockpile may be considered. Disposal of the above-listed materials that are in the strategic stockpile would be for reasons of obsolescence as defined in the Stock Piling Act inasmuch as the materials have deteriorated, have been displaced by new or better materials. or have no further usefulness for a war period. I shall appreciate your informing this Office and the Departments of State and Commerce of the details of each proposed disposal program and the Department of the Interior of the proposed disposal program for minerals prior to their public announcement. These actions are being authorized because it seems clear that stockpiles of the materials in question will not be needed for an emergency and therefore the prerequisite steps for disposal may be taken at this time. The authorization assumes that disposals will not be carried through to completion, however, if that will cause serious economic disruption or adversely affect U.S. international interests. It is my understanding that some of the material may not have any current or potential salability. Where you make such a determination after a thorough investigation, you are authorized to dispose of the material as you see fit in order to eliminate further storage costs. Please provide me with reports of the progress of the disposal program, noting any problems that arise. I am especially interested in information that should be included in the semiannual stockpile reports to Congress. I am not authorizing disposal of the corundum, acid-grade fluorspar and the grade I columbite-tantalite proposed in Mr. Holtz' letter of November 19. A small Government inventory of corundum may be necessary to bridge the gap which may exist in the initial period of an emergency. The present inventory of the material may be required to maintain optical grinding operations during a period of changeover to other abrasives such as fused aluminum oxide and natural garnet. The acid-grade fluorspar is in surplus supply. I do not believe that the Gorernment should dispose of its material in competition with industry at the same time that is considering measures to provide relief to the industry. In the case of the columbite-tantalite, it is not clear why the inventory is not counted as specification-grade material. This question should be resolved before taking action on disposal. I would appreciate your supplying to this Office information on the quantity and analysis by lots and locations for both the grade I and grade II columbite-tantalite now classified as nonstockpile grade. Cumulative summary of sales and disposals, national stockpile program and Defense Production Act as of Mar. 31, 1962 A concurrent resolution (H. Con. Res. 352) providing for congressional approval of the disposition of six materials from the national stockpile was submitted in the House of Representatives on July 19, 1961. On April 30, 1962, another concurrent resolution (H. Con. Res. 473) providing for congressional approval of the disposition of 14 items from the national stockpile was submitted. Included in the 14 items in House Concurrent Resolution 473 were the 6 items previously listed in House Concurrent Resolution 352. House Concurrent Resolution 473 was reported out of the House Committee on Armed Services on May 15, 1962. It was amended and passed by the House on June 4, 1962. The concurrent resolution as amended was referred to the Committee on Armed Services of the Senate on June 5, 1962. A hearing on the resolution was held by the Subcommittee on the National Stockpile and Naval Petroleum Reserves of the Armed Services Committee on June 11, 1962. The subcommittee reported the resolution without amendment and recommended to the full committee that it be reported favorably on June 14, 1962. On the same day, the full committee reported favorably on the concurrent resolution without amendment and recommended that it be passed by the Senate. The resolution is now awaiting consideration by the Senate. The separate items included in the two resolutions and the citations to the Federal Register of the plans of disposition published by the General Services Administration are as follows: HOUSE CONCURRENT RESOLUTION 352 (a) Approximately 1,450,000 pounds of silk noils (25 F.R. 8114, Aug. 24, 1960). (b) Approximately 96 short tons of 91 per centum nickel in ingot form, approximately 4 short tons of sintered nickel powder in the forms of "cups," and approximately 9 short tons of cobalt in rondelle form averaging 97.9 per centum cobalt (26 F.R. 764, Jan. 25, 1961). (c) Cordage fiber consisting of approximately 7,500,000 pounds of abaca fiber and approximately 10,000,000 pounds of sisal fiber (26 F.R. 803, Jan. 26, 1961). (d) Approximately 3,500 long tons of vegetable tannins (quebracho, chestnut, and wattle extracts) (26 F.R. 2212, Mar. 15, 1961). (e) Approximately 28,816 short tons of celestite (26 F.R. 2239, Mar. 16, 1961). (f) Approximately 4,471 troy ounces of platinum scrap and a quantity of nonferrous scrap consisting of approximately 250 short tons of brass, 74 short tons of silicon bronze and copper, 11 short tons of beryllium copper, and 106 short tons of zinc foil (26 F.R. 6490, July 19, 1961). HOUSE CONCURRENT RESOLUTION 473 (a) Approximately 440,246 pounds of silk noils (25 F.R. 8114, Aug. 24, 1960; 27 F.R. 3643, Apr. 17, 1962). (b) Same. (c) Same. (d) Same. (e) Same. (f) Same. (g) Approximately 50,000 long tons of pig tin (26 F.R. 8425, Sept. 7, 1961). (h) Approximately 155,676,000 pounds of castor oil (26 F.R. 8577, Sept. 13, 1961). (i) Approximately 265,000 pounds of cobalt oxides, and approximately 5,500 pounds of cobalt carbonates (26 F.R. 9059, Sept. 26, 1961). (j) Approximately 1,890 long tons of chromite ore (26 F.R. 9793, Oct. 18, 1961). (k) Approximately 65,447 pounds (gross weight) of ferrovanadium (26 F.R. 10196, Oct. 31, 1961). (1) Approximately 63 short tons of ferromanganese, and approximately 4% short tons of electrolytic manganese metal (26 F.R. 11508, Dec. 5, 1961). (m) Approximately 10,000,000 pounds of contained nickel and cobalt in the form of nickel oxide powder (27 F.R. 2260, Mar. 8, 1962). (n) Approximately 5,000,000 pounds of molybdenum (27 F.R. 4005, Apr. 26. CHRONOLOGY OF DISPOSALS GEM QUALITY DIAMONDS Disposal authorized by OCDM, May 16, 1957. Notice published in Federal Register, August 5, 1958. Legislation proposed: House concurrent resolution. Legislation introduced in House of Representatives April 29, 1959. Legislation referred to Senate Committee on Armed Services, August 4, 1959. Time lapse between authorization and passage by the Senate, 2 years, 3 months, 24 days. Legislation enacted as House Concurrent Resolution 166, 86th Congress. Percent of authorized quantity disposed of: 100. Date of disposition: July 27, 1960. End of 6 months' waiting period: February 5, 1959. PLATINUM GROUP METALS Disposal authorized by OCDM, May 13, 1957. Notice published in Federal Register, August 15, 1958. Legislation proposed: House concurrent resolution. Legislation introduced in House of Representatives, April 29, 1959. Legislation passed by House of Representatives, August 3, 1959. Legislation referred to Senate Committee on Armed Services, August 4, 1959. Legislation passed by Senate, September 9, 1959. Time lapse between authorization and passage by the Senate, 2 years, 3 months 27 days. Legislation enacted as House Concurrent Resolution 166, 86th Congress. Percent of authorized quantity disposed of: 67.6. End of 6 months' waiting period: February 15, 1959. ZIRCON CONCENTRATES Disposal authorized by OCDM, September 30, 1957. Notice published in Federal Register, March 13, 1959. Legislation proposed: House Concurrent Resolution. Legislation introduced in House of Representatives, April 29, 1959. Legislation passed by House of Representatives, August 3, 1959. Legislation referred to Senate Committee on Armed Services, August 4, 1959. Legislation passed by Senate, September 9, 1959. Time lapse between authorization and passage by the Senate, 1 year 11 months 10 days. Legislation enacted as House Concurrent Resolution 166, 86th Congress. Percent of authorized quantity disposed of: 64.2. Date of report of dispositions: December 31, 1961. End of 6 months' waiting period: September 13, 1959. NATURAL RUBBER Disposal authorized by OCDM, March 25, 1959. Notice published in Federal Register, September 15, 1959. Legislation proposed: House concurrent resolution. Legislation introduced in House of Representatives, February 4, 1960. Legislation passed by House of Representatives, March 30, 1960. Legislation referred to Senate Committee on Armed Services, March 31, 1960. Time lapse between authorization and passage by the Senate, 1 year, 1 month, 9 days. Legislation enacted as House Concurrent Resolution 582, 86th Congress. Quantity authorized for disposal: 470,000 long tons. Percent of authorized quantity disposed of: 27.2. End of 6 months waiting period: March 15, 1960. NICKEL-COBALT-COPPER-CALCINES AND MATTE Disposal authorized by OCDM, December 28, 1960. Notice published in Federal Register, January 25, 1961. Legislation proposed: Senate public bill S. 1116, 87th Congress. Legislation passed by Senate, March 16, 1961. Legislation passed by House of Representatives, March 21, 1961. Time lapse between authorization and passage by the Senate, 2 months, 16 days. Legislation approved as Public Law 87-13, March 29, 1961. Quantities authorized for disposals: Calcines, 3,431 short tons. Matte, 87 short tons. Percent of authorized quantities disposed of: 100. End of 6 months waiting period: July 25, 1961. EXTRA LONG STAPLE COTTON Disposal authorized by OCDM, March 13, 1957. Notice in Federal Register, August 30, 1957. Legislation proposed: House public bill, H.R. 10595, 87th Congress. Legislation passed by House of Representatives, May 21, 1962. Legislation referred to Senate, May 22, 1962. Legislation approved as Public Law 87-528, July 30, 1962. Quantity authorized for disposal: 220,000 bales. Percent of authorized quantity transferred to CCC: 100 percent. Date of transfer to CCC: August 1, 1962. End of 6 months waiting period: February 28, 1958. |