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DPA and DMA testimony (in part) before a subcommittee of the House
Committee on Appropriations, March 7, 8, and 9, 1951 (exhibit 111)__
Statement of W. H. Harrison, Administrator, Defense Production
Administration, March 7, 1951_-

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THE DEFENSE MINERALS PRODUCTION PROGRAM

WEDNESDAY, APRIL 4, 1951

HOUSE OF REPRESENTATIVES,

COMMITTEE ON INTERIOR AND INSULAR AFFAIRS,

SUBCOMMITTEE ON MINES AND MINING,

Washington, D. C.

The subcommittee met in room 1324, New House Office Building at 10 a. m., Hon. Ken Regan, chairman of the subcommittee, presiding. Mr. REGAN. The committee will come to order.

STATEMENT OF THE CHAIRMAN

The Defense Production Act of 1950, which was enacted into law approximately 7 months ago, provides broad authority "for the encouragement of exploration, development, and mining of critical and strategic minerals and metals" from domestic sources by various means, including loans, purchases or commitments to purchase, abovemarket prices to marginal producers, and participation in the cost of exploration projects.

Since the signing of the Defense Production Act on September 8, 1950, much appears to have been accomplished toward increasing our Armed Forces and providing for the expansion of billions of dollars' worth of manufacturing facilities for the production of war matériel. On the other hand, very little appears to have been accomplished under the act toward obtaining production from thousands of idle mines and mineral deposits in the United States.

Serious shortages of many critical and strategic minerals and metals have developed in the past 8 months. These shortages, which can be expected to become more drastic over the next few years, have resulted in a steadily growing list of orders and regulations restricting and controlling the use of minerals and metals in short supply. Practically every segment of industry and the economy of the United States is experiencing the unfortunate dislocations and inflation resulting from the shortages of minerals and metals.

Given adequate incentives, thousands of small and marginal mines. and deposits throughout the United States could be placed in production. An all-out program with this objective would materially lessen if not completely eliminate the shortages of a number of minerals and metals.

It is the object of these hearings to determine, among other things (a) The authority and responsibilities of each administrative unit of the Government having any jurisdiction over various phases of the defense minerals production program;

(b) The policies formulated and decisions rendered by each unit, of the Government in reference to such programs;

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