Senator SPARKMAN. All right, sir.

What do you expect will be the amount taken in, by the way of sales or otherwise, in fiscal 1963?

Colonel CHAMBERS. Mr. Chairman, the answer to that question will depend on the amendments to the law we get here and our ability to dispose of these surpluses.

It is rather unpredictable at the moment. We are moving ahead very vigorously in certain areas of disposals. We are also completing at the present time an overall study of the disposal program to try to do a more orderly job and a quicker job, but it will depend on the changes in the law as to how much we will be able to sell.

Senator CAPEHART. Mr. Chairman, might I ask a question here? Senator SPARKMAN. All right, Senator Capehart.

Senator CAPEHART. You have been, you say, able to dispose of part of the stockpile, of the inventory, that you feel you do not need. Is that right?

Colonel CHAMBERS. That is correct, sir.

Senator CAPEHART. At what price have you been offering that? Is it the market price, or is it for whatever you can get for it? Colonel CHAMBERS. Senator Capehart, on the DPA materials it must be the U.S. domestic price.

Senator CAPEHART. It must be what?

Colonel CHAMBERS. The U.S. domestic price.

Certain of the disposals that we have made and some more that are going forward have utilized surpluses in Government programs, both military and other types of programs. We feel that this is a very fruitful field and one which we are pushing forward very actively. Senator CAPEHART. Could you give us a few of the kinds of materials that you have disposed of or offered for sale?

Colonel CHAMBERS. Taking, first of all, the type of materials that we are speaking about working off through other Government programs, we have been working off certain copper. Where the Navy is using brass, they are able to take the type of copper that we have in the stockpile and actually utilize it almost in the same state as it is in the stockpile.

General Services Administration have been selling off, after getting congressional approval, certain materials. Feathers is one they have been trying to work off, and other excess materials.

Senator CAPEHART. The law permits you to dispose of any materials that you feel you do not need, does it not, at the moment?

Colonel CHAMBERS. The law is very strict, sir, as to how it is to be done. As to the materials that come out of the national stockpile, the surpluses, we must come to the Congress and get authority to dispose of them or publish them in the Federal Register-a notification-and let it run for 6 months and then dispose of them.

So we do have a problem, which is one of the things we are studying at the moment, as to the type of legislation we should have to make our disposal program more easy.

That applies to the so-called national stockpile and, of course, to the supplemental stockpile.

Senator CAPEHART. You are talking about all three stockpiles now? Colonel CHAMBERS. No; I am trying to speak of them in separate terms, because different laws govern them. The supplemental stockpile and the strategic and critical stockpile, which is also perhaps loosely

Senator CAPEHART. In other words, you do have now the right to dispose of the surpluses. But you feel the method you must use under the law is too cumbersome and too slow?

Colonel CHAMBERS. That is correct.

Senator CAPEHART. The price at which you can dispose of them at the moment is the domestic market price?

Colonel CHAMBERS. Insofar as the DPA material is concerned, it is the domestic price.

Mr. Kendall, on the question of the sales that we can make from the stockpile itself, after getting the necessary authority from the Congress, are we limited to the domestic price on that?

Mr. KENDALL. No, we are not, sir.

Senator CAPEHART. What was that?

Mr. KENDALL. We are not limited to the domestic price. The requirement of the Stockpile Act is that we avoid unnecessary loss to the Government.

Senator CAPEHART. But you can dispose of the surpluses under the present act at any price you care to, can you not?

Mr. KENDALL. Any price that would not involve undue loss to the Government; yes, sir.

Senator CAPEHART. You have been making an effort to dispose of materials under that formula?

Mr. KENDALL. Yes, sir. A very substantial rubber disposal program has been going on over the last several years.

Senator CAPEHART. How much in terms of dollars and cents have you disposed of in the last 12 months?

Mr. KENDALL. Mr. Brooks?

Mr. BROOKS. I would like to ask Mr. George Casto, Director of the Contract Administration Division, Defense Materials Service, to come forward. He has some figures on disposals.

Senator SPARKMAN. All right, Mr. Casto.

Mr. CASTO. In the current fiscal year we have disposed of materials in the amount of $68,680,000.

(The following was supplied for the record :)

Cumulative summary of sales and disposals, national stockpile program and Defense Production Act, as of Mar. 31, 1962