(d) “Primary lead" means lead in the form of pigs, ingots, or other shapes made from ores, concentrates, or bullion, even though other lead-bearing material is mixed with such oes, concentrates, or bullion, provided such other material accounts for 50 percent or less of the lead content thereof;

(e) "Slab zinc" means zinc in the form of standard producer's slabs produced from ores, concentrates, or other zinc bearing materials (including scrap); (f) "You" means any person in the United States, its Territories or Possessions.

SEC. 5. Record-keeping requirements. (a) If you sell foreign slab zinc or foreign primary lead, you must keep for inspection by the Director of Price Stabilization, for a period of two years, records showing:

(1) The quantity of each kind, grade, shape or form of foreign slab zinc or foreign primary lead produced or purchased by you, broken down on the basis of country of origin;

(2) With respect to each sale of foreign slab zinc or foreign primary lead: the name and address of the purchaser; the date of sale; the quantity of each kind or grade sold; the price charged for each such kind or grade; the country in which the material was produced; and the disposition of transportation charges.

(b) If you purchase or receive any foreign slab zinc, foreign primary lead, or slab zinc or primary lead processed by another person from foreign raw materials owned by you, you must keep for inspection by the Director of Price Stabilization, for a period of two years, records of each such purchase or receipt showing the date theeof; the name and address of the seller or processor; the country of origin of the material purchased or received; the price paid; the point of shipment and the point of delivery; the name and address of any agent or other intermediary engaged by you to assist in the purchase; and all expenses, as described in section 3 (b) of this regulation, incurred by you in connection with such purchase or receipt.

SEO. 6. Incorporation of GCPR provision. Any person subject to this supplementary regulation is also subject to all provisions of the General Ceiling Price Regulation not inconsistent with the provisions of this regulation.

Effective date. This supplemetary regulation shall become effective October 2, 1951.

NOTE: All record-keeping and reporting requirements of this regulation have been approved by the Bureau of the Budget in accordance with the Federal Reports Act of 1942. MICHAEL V. DISALLE, Director of Price Stabilization.

OCTOBER 2, 1951.

[F. R. Doc. 51-12018; Filed, Oct. 2, 1951; 3:58 p. m.]

EXHIBIT No. 25

INTERNATIONAL MATERIALS CONFERENCE

CONFERENCE INTERNATIONALE SUR LES MATIERES PREMIERES CONFERENCIA INTERNACIONAL SOBRE MATERIAS PRIMAS

Press Release No. 31, July 6, 1951

For release at 7: 30 p. m., e. d. t., Sunday, July 8, 1951, for publication in Monday morning papers, not to be previously published, quoted from, or used in any way

DISTRIBUTION OF TUNGSTEN AND MOLYBDENUM FOR THIRD CALENDAR QUARTER OF 1951

The International Materials Conference announced today that the member countries participating in the Tungsten-Molybdenum Committee have accepted the Committee's conclusion that an interim plan of distribution of tungsten and molybdenum for the third calendar quarter of 1951 should be put into operation at once. These allocations will be in the nature of a stopgap, and should not be regarded as establishing a permanent pattern for future allocations. The plan

includes an agreement on maximum and minimum prices for tungsten to apply during this period. While the distribution features of the plan were accepted unanimously, one member expressed a reservation with respect to the question of prices.

Eleven member countries are represented on the Tungsten-Molybdenum Committee. They are: Australia, Bolivia, Brazil, Chile, France, the Federal Republic of Germany, Portugal, Spain, Sweden, the United Kingdom, and the United States.

This plan has been forwarded to all affected governments for implementation. The Committee's recommendations, which the participating governments have now accepted, deal primarily with the distribution of ores and concentrates of these two metals, which in both cases are in extremely short supply. The distribution of primary products (i. e., ferro-tungsten, tungsten powder, tungstic acid, and tungsten salts, and ferro-molybdenum, molybdic acid, and molybdenum salts, including calcium-molybdate and molybdic oxide) has been made the subject of a further recommendation by the Committee to the governments. The paragraphs below should be read as applying only to ores and concentrates of tungsten and molybdenum.

The plan of distribution recommended by the Committee and accepted by the governments is set forth in Appendix I attached hereto. The amounts shown for each country includes both the quantities obtained from their own production (if any) and from imports.

These tables are to be understood as follows:

1. The figures of quantities are the maximum share of total production in the free world which the consuming country named in the table may retain: (a) out of its own domestic production, and/or (b) out of imports

in the third calendar quarter of 1951, i. e., from July 1 to September 30, 1951, both dates, inclusive.

2. For this purpose any quantity exported (i. e. shipped from ports or across national borders) by an exporting country in the period July 1 to September 30, 1951, both dates inclusive, shall be regarded as an import for that period into the consuming country to which the shipment is immediately consigned, unless clear reconsignment instructions accompany the particular shipment. In the latter event, the country to which the shipment is reconsigned shall be regarded as the importing country.

There will be a monthly review of the operation of the plan of distribution by the Committee. In the course of this review, any maladjustments or omissions will be brought to light. Maladjustments in previous allocations will be rectified in the ensuing six months period following the end of the quarter under review, i. e., any maladjustments up to September 30, 1951, should be adjusted in the period October 1, 1951, to March 31, 1952. If the actual out-turn of production either of tungsten or molybdenum for the third calendar quarter of 1951 proves to be either more or less than the estimates, upon which the plan of distribution has been based, the excess or deficiency would be distributed among the consuming countries at the same percentage rates as are set forth in Appendix I.

Appendix II attached hereto shows the export and import quotas of tungsten and molybdenum ores and concentrates for the third calendar quarter of 1951 resulting from the plan of distribution now adopted.

Consuming countries' governments will be prepared, if necessary, to buy any part of their quotas which their private importers do not purchase, and producing countries' governments will endeavor to ensure, to the best of their ability, that estimates of production are realized, thus enabling the agreed quotas to be fulfilled and the pattern of distribution to be followed.

The Committee also emphasizes the importance of full control of exports and imports of these two metals during the present emergency. To assist in ensuring that allocations are implemented, full particulars of export licenses granted and actual exports by destination (including re-exports and exports of primary products) will be furnished by all governments to the IMC Secretariat; these particulars will be furnished monthly, within one month after the close of each month. Importing governments will similarly give particulars of imports; returns of imports will be furnished quarterly within one month after the close of each quarter.

Countries also are being asked to furnish monthly figures of production and consumption within one month of the period to which they relate.

In carrying out the arrangements above described, existing contracts will be respected so far as possible. If, however, such contracts provide for the supply of tungsten or molybdenum to any one importing country in excess of the amounts recommended, it is suggested that the importing country should sell shipments to other importing countries which have not yet filled their import quotas so far as possible without upsetting the original contractual arrangements.

The plan for distribution has already been notified to interested governments not represented on the Committee, and they also are being requested to cooperate in the plan. Upon the request of any interested government, the latter may be heard by the Committee to give further explanation of its interest.

All member governments, with the exception of Brazil, agreed to accept certain recommendations with regard to the price of tungsten for the third calendar quarter of 1951. The Government of Brazil reserved its position on the question of prices. The agreement reached was that, as a special measure, applicable to the third quarter, any spot transactions should take place under the following conditions:

Producers will not demand a price higher than $65 per short ton unit of WO, standard grade f. o. b. shipping port (or border, in case of over-land shipments), and importers will purchase at prices not less than $55 per short ton unit of WO, standard grade f. o. b. shipping port (or border, in case of over-land shipments).

These proposals apply exclusively to spot purchases and will effect no change in any long-term arrangements that may exist or may be negotiated between sellers and purchasers.

The question of longer term contracts is of great importance and is being considered urgently.

With regard to molybdenum, it is agreed that prices will, for the third calendar quarter, be in line with those now prevailing in the United States. Appendices I and II follow:

APPENDIX I

Plan of distribution of ores and concentrates for the third calendar quarter of

1 Divided as follows: Australia, 15; Canada, 26; Spain, 13; Yugoslavia, 16. This is a reserve.

3,420

77.8

515

11.7

195

4.4

125

2.8

100

2.3

45

1.0

4.400

100.0

APPENDIX II

Schedule of export and import quotas of tungsten and molybdenum for third calendar quarter of 1951

CORRESPONDENCE BETWEEN THE COMPTROLLER GENERAL OF THE UNITED STATES AND SENATOR KNOWLAND RE "PROSECUTION OF SUIT AGAINST FALLBROOK PUBLIC UTILITY DISTRICT," CONGRESSIONAL RECORD, FEBRUARY 4, 1953, PAGES 848-854

PROSECUTION OF SUIT AGAINST FALLBROOK PUBLIC UTILITY

DISTRICT

Mr. KNOWLAND. Mr. President, I ask unanimous consent to have printed in the body of the Record some correspondence I have had with the Comptroller General of the United States, relative to the action of the former administration, particularly of the Department of Justice and the Navy Department, relative to their ignoring the mandate of Congress and the law in the so-called Santa Margarita controversy. The correspondence I now submit includes a letter from the Comptroller General of the United States to the Congress, a memorandum, a resolution adopted by the Senate and the Assembly of the State of California, and correspondence relative to this matter with the Comptroller General, which I had over a period of several months.

There being no objection, the correspondence and attached matters were ordered to be printed in the Record, as follows:

Hon. WILLIAM F. KNOWLAND,

United States Senate.

JANUARY 30, 1953.

MY DEAR SENATOR KNOWLAND: I am enclosing for your information a copy of the Comptroller General's report to the Congress of today, with enclosures therein referred to, relative to the legality of expenditures by the Department of the

Navy in connection with the prosecution of the suit entitled "United States of America v. Fallbrook Public Utility District et al.," which was the subject of prior communication between you and this office.

Sincerely yours,

The Congress:

FRANK L. YATES,

Acting Comptroller General of the United States.

COMPTROLLER GENERAL OF THE UNITED STATES,
Washington, January 30, 1953.

Pursuant to the provisions of section 312 of the Budget and Accounting Act, 1921 (42 Stat. 26), directing the Comptroller General to specifically report to the Congress every expenditure made by any department in any year in violation of law, the following report is submitted relative to payments deliberately made, and apparently being made, by the Department of the Navy in direct contravention of law after being authoritatively informed that such a course of action would be a violation of law.

Section 208 (d) of the Department of Justice Appropriation Act, 1953 (66 Stat. 560), provides as follows:

"None of the funds appropriated by this title may be used in the preparation or prosecution of the suit in the United States District Court for the Southern District of California, Southern Division, by the United States of America against Fallbrook Public Utility District, a public service corporation of the State of California, and others."

The lawsuit referred to in the section was instituted by the Department of Justice at the request of the Navy Department. By reason of the prohibition against the use of Department of Justice appropriations for the fiscal year 1953 in the preparation or prosecution of the said suit, the former Secretary of the Navy requested in letter dated August 18, 1952, that the Comptroller General render a decision as to whether the appropriations available to that Department are affected in any way by the provisions of the above-quoted section. By decision of August 29, 1952, B-110945, the Secretary of the Navy was informed that the employment or retention and payment from the funds available to the Navy Department of counsel directly to represent the United States in the preparation, prosecution, or defense of the lawsuit would be in direct contravention of law and was not authorized.

The decisions of the Comptroller General respecting the availability and use of public funds appropriated by the Congress are by statute made final and conclusive upon the executive branch of the Government. Section 8 of the act of July 31, 1894 (28 Stat. 208), as amended by section 304 of the act of June 10, 1921 (42 Stat. 24, 31 U. S. C. 74). (See 5 Comp. Gen. 822, 824; 14 id. 648, 650; 33 Op. Atty. Gen. 265; 26 id. 609; 23 id. 468; 22 id. 581.) Thus, upon the rendition of the decision of August 29, 1952, it was the plain duty of the Secretary of the Navy under the law to accept as final, and properly apply, such decision. Nevertheless, the Secretary deliberately chose to violate the law and the Department of the Navy continued and apparently is continuing the unlawful payment of salaries and other expenses incident to the prosecution of the Fallbrook suit. This was not a passive or inactive disregard of the law; it was an active violation with full knowledge thereof. In an impossible effort to support such action the former Secretary of the Navy contended that he is required to protect the interests of the United States and that his legal advisers informed him that the actions taken in the matter are lawful.

When the Secretary of the Navy requested and obtained a decision of the Comptroller General it was not left to the Secretary's legal advisers to inform him one way or the other on the subject matter. The decision of the Comptroller General concluded the matter-it was final upon the executive branch. That is the simple truth of the matter and that was well known by the Secretary's legal advisers.

Furthermore, it was not left to the Secretary of the Navy to decide whether prosecution of the suit was necessary to protect the interests of the United States. That matter was decided by the Congress through enactment of the provision under discussion. It is fundamental in our Government that it is for the Congress to say how and on what conditions the public moneys shall be spent ; and it is not the province of the executive or accounting officers to question