1950, 15 F. R. 6105, 3 CFH, 1950 Supp.; sec. 2, E. O. 10200, Jan. 3, 1951, 16 F. R. 61; Defense Production Administration Certificate dated March 30, 1951.

§ 1 Basis and purpose. This regulation interprets and implements the authority of the Administrator of General Services to purchase tungsten concentrates of domestic origin for the fiscal years 1951-1956 as authorized by the Defense Production Administration on March 30, 1951, and outlines the attendant responsibilities and functions of the Administrator of General Services in purchasing such tungsten concentrates for Government use and resale. In accordance with the Program set forth herein, the Administrator will buy domestically produced tungsten concentrates, at a base price of $63 per short ton unit of contained tungsten trioxide (WO3), less penalties.

$2 Definitions. As used in this regulation:

(a) "Administrator" means the Administrator of General Services.

(b) "Program" means the program as set forth in this Regulation.

(c) "Milling point" means plant where ores are processed into specification grade tungsten concentrates.

(d) "Tungsten concentrates" means tungsten concentrates produced in the United States, its Territories and possessions from ores mined in the United States, its Territories and possessions.

(e) "Short ton unit" means one per cent of 2,000 pounds avoirdupois weight. (f) "Ferberite" means concentrates containing tungsten primarily as FeWO. with not more than 20 per cent of the tungsten as MnWO1.

(g) "Hubnerite" means concentrates containing tungsten primarily as MnWO, with not more than 20 per cent of the tungsten as FeWO1.

(h) “Wolframite" means concentrates containing tungsten as both FeWO, and MnWO, in any proportions from 80 per cent FeWO, and 20 per cent MnWO, to 20 per cent FeWO, and 80 per cent Mn WO4.

(i) "Scheelite" means concentrates containing, in nature, tungsten as CaWO.. (j) "Synthetic Scheelite" means chemically precipitated scheelite produced from any natural type of ore, and shall be chemically precipitated scheelite produced from any original type of ore, further processed so that not over ten per cent of any lot shall pass a 35-mesh Tyler Standard Screen.

§3 Participation in the Program.

(a) Any person may participate in the Program by notice given to the nearest General Services Administration regional office, in the form of a letter, postcard or telegram postmarked or dated by the telegraph office not later than June 30, 1951. Such notice shall state that the writer desires to participate in the Program and will either prospect for or produce tungsten, but the giving of such notice will not permit the participant to deliver material in any form other than that of concentrates meeting minimum specifications. Such notification must be signed and a return address given. Any person participating in the Program will promptly be sent a certificate authorizing him to deliver concentrates meeting minimum specifications f. o. b. carriers conveyance, milling point. Miners holding certificates but who do not operate concentrating facilities may participate in this program to the extent of the ore produced by them, as follows:

(1) By selling such ore to operators of concentrating plants, in which event the resulting concentrates meeting specifications may be sold by such operators to the Administrator under this Program; or

(2) By having such ore treated on a toll basis and selling the resulting concentrates meeting specifications to the Administrator under this Program.

(b) Any operator of a concentrating plant by agreeing to participate in this Program also agrees to purchase or process suitable tungsten contained ores offered to him by independent miners to the limit of the capacity of his plant in excess of that required for his own production and on fair and equitable terms and conditions (including prices). Each operator of a concentrating plant participating in this Program shall promptly establish a schedule setting forth his terms and conditions (including prices) for the purchase and processing of crude tungsten ores. Each such operator shall promptly submit a copy of such schedule to the Administrator, and shall also submit promptly any changes made in such schedule thereafter.

§ 4 Deliveries. Tungsten concentrates purchased under the Program are to be delivered f. o. b. carriers conveyance any milling point designated by the Administrator. Delivery of less than one short ton of concentrates will not be accepted. In the event any delivery is less than the minimum weight required to obtain the lowest transportation rate, the difference between the lowest transportation rate and the rate paid by the Government shall be a charge against the

seller and a proper adjustment therefore shall be made in the minimum base price. Each delivery will be analyzed by the Government after beneficiation at the milling point, and payment will be made in accordance with such analysis. Deliveries not conforming to minimum specifications will be rejected and any expenses in connection therewith will be borne by the seller.

85 Duration of the program. The Program shall terminate and be of no further force or effect when 1,468,750 short-ton units of tungsten have been delivered to and accepted by the Government under this Program, or on July 1, 1956, which ever occurs first.

§ 6 Specifications and penalties.

(a) The specifications for tungsten concentrates and penalties applicable to deliveries of such concentrates appear below:

(1) Percentage of tungsten trioxide (WO1) required with respect to each of the following:

(2) Maximum percentage allowances of the following elements without penalty:

(b) The minimum base price shall be subject to the following adjustments: (1) For each short-ton unit of delivered tungsten trioxide (WO1) the sum of twenty cents ($.20) shall be deducted from the base price for each one per cent of tungsten trioxide (WO) below the standard requirements set forth in subparagraph (a) of this Section. No tungsten concentrates not meeting the minimum requirements set forth in said subparagraph (a) will be accepted.

(2) For each short-ton unit of delivered tungsten trioxide (WO) a deduction of twenty-five cents ($.25) shall be made for each of the following increments in excess of the maximum allowances (subparagraph (a)), as to each of the following elements:

Mr. ENGLE. I commend action. I would rather see you doing something, and making a mistake, than not doing anything.

Mr. GUMBEL. Gentlemen, we do not take quite that long. I would just like to mention one Friday morning in December we were instructed by the Defense Production Administration to become the exclusive purchasers of rubber. By noon that day-the same Friday-we had an agreement with the rubber companies to buy the rubber for us. We were in business, and by that night we had issued the regulation prohibiting anybody from buying rubber.

In connection with the machine-tool program, we received the program and the orders from the National Production Administration, and the next day we had put out approximately $75 million worth of orders.

CONTRACTS AND ACTIONS THROUGH DMA TO DPA AND TO GSA (MAY 11, 1951)

Mr. ENGLE. What I am interested in getting from GSA is a list of the contracts now signed and in existence and which have been executed.

Mr. GUMBEL. I beg your pardon?

Mr. ENGLE. The contracts now signed and in execution. What I mean by that is the contracts that have actually been signed and are now actually in execution.

Mr. GUMBEL. Yes, sir.

Mr. ENGLE. Which will be a different list than the one Dr. Boyd just submitted. He has his list here, but what I am trying to find out is to see some production stacked up here.

Now, some of these contracts have been shifted over from DMA to procedural matter, at the present time, into Public 520, because of the shortage of funds, but it is intended in those instances to pick those up with DPA funds when and if DPA funds are available. Now, those should be listed as DPA production, so when you make your list, when you list those that come through and only for convenient purposes are now being handled temporarily under stockpiling as DPA production, but indicate where they are. Can you do that?

Mr. GUMBEL. Yes, sir, we can do that. I propose to get up for the committee a list of all the contracts that have come over to us, and their present status, whether they have been signed, whether they have not been signed, and if they have not been signed why they have not been signed.

Mr. ENGLE. We would like to have that.

(The information referred to is as follows:)

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