Well, going up, there is chromium, hafnium, columbium, molybdenum, tantalum, and carbon.

I will just give one illustration of the effect of the present law. Consider rhenium, this is a very high melting temperature material; the present law says, this is section 6 of Public Law 85-931, the CCC should barter for materials of which the United States does not domestically produce its requirements does not domestically produce its requirements.

(The chart has been submitted and may be found in the files of the Committee.)

Our Committee pointed out that we ought to look 5 or 10 or more years into the future. If today we went to the Government and we said, "Do we today produce our requirements of rhenium?" The answer is, "Yes, we do today." In fact there may be a pound or two of it at $680 a pound that can't even be sold. So there is an overproduction.

If we are going to make the high-temperature alloys that require rhenium, and to make the rockets and missile generations of the future, rhenium is one of the things likely to be the scarcest.

If we can take some of the billions of dollars of agriculture surpluses and trade them off for the things high up in this temperature category, I think this committee would be serving the national interest bodily conceived.

Lastly, Mr. Chairman, I would like to make one personal comment on economic warfare. We might better discuss it in executive session. But briefly, I am very concerned by what has come out in these hearings where people say, "Oh, well, if they don't sell the stuff here, they are going to sell it somewhere else," talking about the Communists. Well now, they are not just selling this stuff for the fun of it. They want to get into Germany, and Belgium and France and Holland and those countries, not just to sell the gricultural commodities, but to get important machinery and chemicals and supplies for their own defense and war machines. The only way they have of paying for the things that they want is to pay for them with agricultural com

modities.

We do not permit any trade with Red China in this country. You cannot buy their postage stamps; you cannot buy their antiques; you cannot send them any money, but when we do not use our barter devices and economic warfare tool and we say, "Oh, well, maybe the Chinese will sell here and maybe they will sell there and maybe the Russians will sell here," what we are doing is opening up all of the rest of the industrialized nations of Europe to the Communists for the very things that they want to get. I think the barter device could be effectively used to cut them out of these things if we want to do it. Mr. Chairman, I appreciate very much the opportunity of being here, and will try to answer any questions.

(Tables 1 and 2 follow :)

TABLE 1.-U.S. metal and mineral imports

Strategic and critical materials for stockpile purposes are defined as follows pursuant to section 2a of Public Law 520, 79th Congress:

"Strategic and critical materials are those raw or semiprocessed materials that are required for essential uses in a war emergency, and whose procurement in adequate quantities, quality, or time is sufficiently uncertain for any reason to require prior provision for their supply." The strategic and critical mineral materials listed by ODM on September 12, 1957, are given below, together with notes as to the adequacy of domestic supply to meet peacetime (1957) consumption. Wartime require nents in general exceed peacetime needs, hut under the changing strategic concepts (possibility of brief nuclear war), war uses may be reduced except for a few materials with high temperature and special property characteristics. Materials italicized are in the most deficient supply position.

Submitted by the Director of the U.S. Geological Survey in hearings by the House on the supplemental appropriations bill for fiscal year 1959, June 26, 1958.

In addition to the stockpiled minerals and metals, others are essential to our peacetime economy and vital for present military uses, and still others promise to become vital for the future technology of high temperature and special purpose materials.

TABLE 2-A.—Melting points of all elements above iron (and selected ones below)

TABLE 2-B.-Melting points of certain refractory compounds

Hafnium carbide _

Tantalum carbide.

Zirconium carbide.
Columbium carbide__
Fused thoria (ThO2).
Titanium carbide.
Zirconium boride.
Boron nitride..
Titanium boride.
Tungsten carbide.

Vanadium carbide.
Fused zirconia_

Molybdenum carbide.

Fused magnesia_

Beryllia

The CHAIRMAN. Dr. Morgan, we thank you very much for your very fine statement. I congratulate you on the presentation of the

statement.

Are there any questions?

Mr. HOEVEN. You recommend that the present restrictive wording of section 6 of Public Law 85-931 be changed. Who would make the finding or decision as to the need of critical materials?

Dr. MORGAN. I trust the President to do it if he had the wording and I suggest the wording "any element in usable form where known domestic supplies are inadequate now or in the foreseeable future.” Mr. HOEVEN. It should be spelled out as to who is to make the finding?

Dr. MORGAN. Yes, sir.

The CHAIRMAN. For the materials?

Mr. HOEVEN. It says supplies "are likely to be inadequate for defense or industrial needs at any time in the foreseeable future." Somebody will have to make the finding.

The CHAIRMAN. Under the law, we authorized the President to fix the strategic material list, listing the articles that you can use in barter.

Dr. MORGAN. That is right. He does get himself into a little bit of a corner though by that wording-it has to be a material where we do not now produce our requirements. It ought to be one where we not only do not produce it now, but where in the foreseeable future, we might not produce it.

Mr. HOEVEN. This is simply broadening the field of materials from which he could choose.

Dr. MORGAN. Yes.

Mr. TEAGUE of California. Do I understand, Mr. Morgan, that you are here strictly as a private citizen?

Dr. MORGAN. That is right.

Mr. TEAGUE of California. Not directly or indirectly in any way representative of the metal importing firms?

Dr. MORGAN. I have indicated in my statement, sir, and I repeat, that in my consulting practice, I do advise various U.S. Metal and mineral firms, but I am appearing this morning as a private citizen. Mr. TEAGUE of California. Thank you.

The CHAIRMAN. Thank you very much.

Mr. COAD. I would like to make one statement in reference to your statement in support of the Government assuring that there will be readily available edible food supplies for our own people and our allies. This is directly in line with the bill that I have offered on which I have received some support from the OCDM, and I believe that it makes little sense to pour billions and billions of dollars into the hardware of warfare if we have nothing with which we can sustain ourselves in case of an attack, which is vitally true right now in regard to our food supply. We have all kinds of guns, nuclear weapons and military applications of machinery, but we do not have any kind of an adequate place prepared to store a supply of food. I think you have touched on a very, very important piece of information here, and an idea, and I would recommend that our committee go further into this proposal and this recommendation which you have made, Dr. Morgan. I appreciate it very, very much.

Dr. MORGAN. Thank you very much.

The CHAIRMAN. Thank you very much.

Our next witness is Dr. George A. Casto, Director of the Projects Administrative Division, Defense Materials Service, GSA.

STATEMENT OF GEORGE K. CASTO, DIRECTOR, PROJECTS ADMINISTRATION DIVISION, DEFENSE MATERIALS SERVICE, GSA; ACCOMPANIED BY W. M. B. FREEMAN

Mr. CASTO. Mr. Chairman, I am George Casto and this is W. M. B. Freeman of the General Services Administration. We do not have a prepared statement, but insofar as the Agriculture Trade Development Assistance Act is concerned, the General Services Administration acts as custodian of the supplemental stockpile. We furnish advice to the Department of Agriculture insofar as the material and of barter transactions are concerned and we inspect, ship, and store those materials.

The CHAIRMAN. Mr. Casto, I want to thank you and your associate for appearing here. I want to direct your attention to one or two pertinent things.

The first is that I have said several times that all the programs in Public Law 480 have been administered in such a way as to be remarkably free from criticism. This committee has, during all these days and weeks that we have been holding hearings been asking for criticism, trying to find out what is wrong, if anything, with this program, and the authority under which it is operated and the manner in which it is operated.

Just a few days ago, a witness came before the committee that charged the administration with having bypassed normal trade channels and American businessmen and another charge was that our Government had been buying metals and materials at a price which was too high.

Now, either one of those charges are serious and grave in my opinion. It, of course, certainly was not the intention of Congress to bypass normal trade channels, nor was it our intention that minerals should be bought at exorbitantly high prices.

Now, I wish you would explain to us just what does take place in the field of pricing metals and materials that are acquired by our Govern

ment.