(G) BAUXITE

Mr. ENGLE. What about bauxite?

Dr. BOYD, At the moment there is no justification for an incentive program on bauxite. There, again, we have the stockpile approximately filled, and the companies, due to this expansion program, are providing a market for bauxite where they take almost all they can get from almost anywhere.

Mr. ENGLE. Where do they temporarily get it, from South America? Dr. BOYD. Some from South America.

(H) COBALT

Mr. ENGLE. What about cobalt?

Dr. BOYD. Cobalt-there is one contract under consideration at the moment. There is only one deposit we can negotiate on at the moment, domestic. There are some foreign things we have to work on.

CONTRACTS OR ACTIONS NEGOTIATED BY DMA AND REFERRALS TO DPA

(MAY 10, 1951)

Mr. ENGLE. Now, can General Services give us a list of the contracts which are now signed and in execution?

Mr. GUMBEL. Do you mean the stockpile, and contracts under the Defense Production Act? Mr. Engle, we can provide you with it, but how many would you say there would be, Max?

Mr. MEDLEY. Well, if we recover all of the stockpile activities, Mr. Congressman, it would run into a little work-it would take us 2 or 3 days to get that up.

Mr. ENGLE. Why would it take 2 or 3 days?

Mr. GUMBEL. There are several hundred of them.

Mr. ENGLE. Do you understand what I am asking for?

Mr. MEDLEY. We would have to analyze all our obligations, sir, under the stockpile program. I am not sure whether I understand

you.

Mr. ENGLE. I am asking for the contracts which have been issued under the Defense Production Administration.

Mr. GUMBEL. Oh. I understood you to say stockpile.

Mr. ENGLE. No.

Mr. GUMBEL. I think we can give you a list.

Mr. REGAN. I believe Mr. Medley has quite a little information, but, Mr. Medley, before you answer the question, would you give the reporter your name and your position?

Mr. MEDLEY. My name is Max Medley, Comptroller of General Services Administration.

Mr. ENGLE. What we had, Mr. Medley, when these hearings started several weeks ago, was a tabulation showing just what had been done. There were only four contracts on it. One involved Spain, which had been canceled. I think there were two manganese-one manganese and two tin, I believe.

Dr. BOYD. I think that needs an explanation, however, Mr. Chairman. Because of the funds situation, the availability of stockpiling funds, we have been working with General Services Administration getting these contracts out. Many of them are domestic contracts. So we have been going ahead with the minerals program under the stockpiling funds, not waiting for the funds necessarily from the Defense Production Administration, so it does not tell the whole story.

Mr. ENGLE. What I want to do is get a progress report here.

Dr. Boyd. You asked me yesterday for a compilation of the contracts we have now completed and sent to DPA. I have that. There are 23 of those. They are in various stages of approval, or have been recommended to stockpile if funds were not available for it.

Mr. ENGLE. What are they doing in Dr. Morgan's office?

Dr. BOYD. This tabulation gives an answer to it there under each

contract.

Mr. ENGLE. I would like to have that, and have it made a part of the record, Mr. Chairman, if there is no objection.

Dr. BOYD. I was just given it this morning, so I have to make a pencil correction, if I may, because the people who gave it to me did not understand the situation.

Mr. REGAN. There is no objection.

Dr. BOYD. Fifteen contracts are being negotiated, and they are being typed into contract form.

The information referred to is as follows:)

Actions negotiated and in final stages (within DMA, Production Expansion

Mr. ENGLE. They are subject to negotiation?

Dr. BOYD. They have been negotiated.

Mr. ENGLE. They have been negotiated, and they are being written up?

Dr. BoYD. That is right.

Mr. ENGLE. In other words, the terms have been agreed on, and it is a matter of completing them?

Dr. BOYD. That is right.

Mr. ENGLE. Except when they got over to Dr. Morgan, he sent them back?

Dr. MORGAN. That is an outside possibility, sir, but it is not our intention. We intend, wherever possible, within the limit of the funds available, or with the help of the stockpile authorities if we do not have funds presently available, to take any worthwhile contract and get the project going.

Mr. ENGLE. What I am trying to get or what I am trying to find out is just how many contracts have been issued. That is the job for Mr. Medley.

Mr. MEDLEY. Mr. Congressman, I have a tabulation here which might be helpful. It shows exactly what has been financed today, all programs, under the Defense Production Act.

Mr. ENGLE. That is what I am interested in. I am not interested in the stockpiling program at this moment, for this reason, that the objectives of the stockpile are very different than the principal objective of the Defense Production Administration, and in some respects you might even say that they are in conflict with each other because one is a procurement program over a long period, for stockpiling, whereas the other is a procurement for the immediate needs to meet the emergency.

Now, they are consistent with each other, but sometimes you have to let loose of a stockpiling program to meet the current needs. To that extent they have to be integrated.

What I am trying to find out, though, is what Defense Production Administration has done since they came in here with four little contracts. In other words, I want to be able to put the two reports, side by side and say, now, over this number of weeks we made this much progress. Then you can see how this thing is moving.

Mr. MEDLEY. Before I read you these figures, I think Mr. Gumbel would have some remarks to make with respect to this balance between the Defense Production program and the stockpiling.

DUTIES OF GENERAL SERVICES ADMINISTRATION UNDER DEFENSE

PRODUCTION ACT

Mr. GUMBEL. Mr. Chairman, if I could have a few minutes, I might be able to throw some light on this whole question which is disturbing the committee-the delays and the bottlenecks in carrying out the program-and also this very serious problem of money to finance. Mr. REGAN. Do you include in that this freezing of these funds way beyond the possible requirement?

Mr. GUMBEL. Yes, sir; I would like very much to take that up. The first thing is the cooperation of the General Services in this whole program. I think everybody that knows Mr. Lawson realizes that one of his chief interests is in rapid, economical, and efficient

transaction of Government business. The Congress set up the General Services Administration chiefly for that purpose, to introduce a businesslike process and efficiency in the procurement for the Government, and also for the Government housekeeping, and that is the thing that we have been trying to do.

At yesterday's hearing Mr. Elliott explained to the committee the way we try to cooperate with the other Government agencies. As he remarked, we are a purely administerial organization, and we take our instructions from the other Government agencies. All we look to is to find out whether we have the funds and legal authority. Once that has been determined we go ahead and do as we are told. We endeavor to work with the other agencies before the thing comes up where it is formally presented to us so there will not be any delay at all. Mr. Elliott spoke of the agreement we had with the Secretary of the Interior covering that, and with the Chair's permission I would like to introduce that agreement. It sets forth the way we and Dr. Boyd's shop handle these projects.

Mr. REGAN. No objection.

(The information referred to is as follows:)

AGREEMENT BETWEEN GENERAL SERVICES ADMINISTRATION AND THE DEPARTMENT OF THE INTERIOR FOR THE PURPOSE OF PROVIDING COOPERATIVE OPERATING PROCEDURES UNDER THE DEFENSE PRODUCTION ACT

For the purpose of carrying out their respective functions and responsibilities for the expansion of productive capacity and supply of metals and minerals, under the provisions of title III of the Defense Production Act of 1950 (Public Law 774, 81st Cong.), Executive Order 10161 (15 F. R. 6105), and Executive Order 10200, it is agreed between General Services Administration and the Department of the Interior, as follows:

1. This agreement is designed to provide cooperative operating procedures between the two agencies, it does not directly affect the public, and it is not to be published in the Federal Register. It shall remain in effect until terminated by either party by notice in writing to the other. It shall be construed broadly with the view toward expediting the consummation of transaction with industry under the act and order. Except as to documents and instruments in their final form, approvals and consents may be informal, oral, and by telephone.

2. GSA and Interior shall each appoint proper officers for liaison with the other and with power to take all actions required for carrying out this agreement (not including the final action of executing, on behalf of the Government or of the agency, the instruments and documents necessary to carry out their respective functions and responsibilities under the act and order, which is reserved in each case to the Administrator of GSA and the Secretary of the Interior, respectively, or to their specially authorized representatives). Until GSA is otherwise notified by Interior, Interior's officers for the purposes of this agreement are: James Boyd, Administrator, Defense Minerals Administrations; C. O. Mittendorf, Director, Production Expansion Division, DMA; and J. L. Hofflund, general counsel, DMA. Until Interior is otherwise notified by GSA, GSA's officers for purposes of this agreement are: A. J. Walsh, Acting Commissioner, Emergency Procurement Service; Irving Gumbel, special assistant to the Administrator; Maxwell H. Elliott, general counsel; and Byron E. Harding, assistant general counsel.

3. Interior, acting through its Production Expansion Division, DMA, is the contact agency for industry, and as such shall, with the aid, advice and participtaion of GSA hereafter indicated, have primary responsibility for undertaking negotiations for the expansion of productive capacity and supply of metals and minerals, under the act and the executive orders aforesaid.

4. GSA will assign to DMA's PED an adequate number of competent attorneys, purchasing officers and related clerical personnel for the purposes of this agreement, such attorneys, purchasing officers and related clerical personnel to be located physically in the offices of DMA's PED, but to remain on GSA's payroll. Such attorneys and purchasing officers so assigned shall be free to report to, advise, and consult with GSA's officers and representatives. Such