(The information requested is as follows:) AGENCIES OF THE FEDERAL GOVERNMENT THAT HAVE A SIGNIFICANT INTEREST IN STRATEGIC AND CRITICAL METALS AND MINERALS [*Indicates temporary agencies implementing the Defense Production Act of 1950. Indentation indicates subordinate agencies within a major agency] NOTE.-Mineral expansion programs and contracts under the defense production program do not have to be cleared with all of the agencies listed, since many of these agencies are concerned with only certain specific aspects of minerals policies and programs. The President: Executive Office of the President: The White House Office: Advises the President on legislation, organization, and other problems. Office of the Special Assistant to the President: Advises on foreign *Office of Defense Mobilization (ODM): Establishes general mobiliza- National Security Council (NSC): Advises as to the imminence of war (Central Intelligence Agency (CIA): Provides information on foreign sources of metals and minerals.) National Security Resources Board (NSRB): Advises the President concerning the coordination of mobilization, including reserves of strategic and critical materials. Council of Economic Advisers (CEA): Advises on broad economic policies. Materials Policy Commission: Recommends long-range national mineral policies. *Defense Production Administration (DPA): Establishes broad expansion programs, and secures the necessary funds therefor under the Defense Production Act. Department of the Interior: Responsible with the Munitions Board for stockpiling under Public Law 520, Seventy-ninth Congress. National Minerals Advisory Council: Advises on mineral policies. *Defense Minerals Administration (DMA): Prepares and recommends both foreign and domestic mineral programs necessary to the defense production effort. Negotiates mineral development contracts. Assists the mineral industry in obtaining necessary machinery, supplies, and personnel. Controls distribution of ores. United States Bureau of Mines (USBM): Maintains industry statistics. Does extensive research and development in the field of mining and metallurgy. Administers mine safety laws. United States Geological Survey (USGS): Does geologic work of all types. *Defense Electric Power Administration (DEPA): Assists in providing electric power. Department of Defense: Joint Chiefs of Staff (JCS): Advises as to accessibility in time of emergency to foreign sources of strategic and critical materials. Munitions Board (MB): Establishes stockpile programs under Public Law 520, Seventy-ninth Congress. Also determines military requirements for strategic and critical materials. Research and Development Board (RDB): Reduces requirements for strategic materials in very short supply through conservation, substitution or redesign. Department of the Army: Aids in the determination of stockpile programs under Public Law 520, Seventy-ninth Congress, and determines military requirements for strategic and critical materials. Department of the Navy: As above. Department of the Air Force: As above. Department of Commerce: Business Advisory Council: Advises on broad business policies. Office of International Trade (OIT): Exercises export control powers. *National Shipping Authority (NSA): Provides shipping for strategic and critical materials. General Services Administration (GSA): Purchases materials for Government use or resale. *Emergency Procurement Service (EPS): Purchases, inspects, and stores strategic and critical materials for the national stockpile, and purchases other materials. Reconstruction Finance Corporation (RFC): Purchases and resells tin, operates the Government tin smelter, and makes loans to stimulate industrial production. Department of State: Advises concerning metals and minerals development programs in foreign countries. Assists in establishing United States stockpile programs. Economic Cooperation Administration (ECA): Expands metals and minerals production in participating nations and their territories. Export-Import Bank of Washington (Ex-ImBank): Provides necessary financing to facilitate mineral development programs in foreign countries. Tariff Commission: Evaluates the effects of tariffs on the mineral industry. * Economic Stabilization Agency (ESA): Establishes general price and wage stabilization policies. *Office of Price Administration (OPS): Establishes price ceilings for metals and minerals. Department of Labor: *Defense Manpower Administration: Assists in obtaining the necessary labor force. Treasury Department: Establishes and implements tax programs affecting mineral properties. Department of Justice: Enforces antitrust laws involving segments of the mineral industry. Department of Agriculture: Assists in establishing United States stockpile programs. Commodity Credit Corporation (CCC): Exchange when possible surplus agricultural commodities for strategic and critical metals and minerals. *Defense Transport Administration: Assists in providing transportation for metals and minerals. National Academy of Sciences: Metallurgical Advisory Board: Advises on technical problems in the metallurgical field. Atomic Energy Commission (AEC): Controls and procures fissionable and source materials. National Science Foundation: Now being organized. General Accounting Office: Reviews and audits all Government contracts. MAJOR UNITED STATES GOVERNMENT COMMITTEES CONCERNED WITH METALS AND MINERALS ODM Foreign Supplies and Requirements Committee: Representatives of State, DPA Resources Expansion Committee: Representatives of Agriculture, AEC, Appropriations Armed Services: Stockpile Subcommittee SENATE COMMITTEES Preparedness Subcommittee Interior and Insular Affairs HOUSE COMMITTEES Appropriations Armed Services: Stockpile Subcommittee Interior and Insular Affairs: Subcommittee on Mines and Mining JOINT COMMITTEES Joint Committee on Defense Production Joint Committee on Atomic Energy MAJOR INTERNATIONAL GROUPS CONCERNED WITH METALS AND MINERALS International Materials Conference (IMC) (the purpose of these committees is to consider and recommend to governments the specific action which should be taken, in the case of each commodity, in order to expand production, increase availability, conserve supplies, and assure the most effective distribution and utilization of supplies among consuming countries): Central Group (IMC): Representatives of United States (Chairman E. T. Manganese-Nickel-Cobalt Committee (IMC): Representatives of United Sulfur Committee (IMC): Representatives of United States, Belgium, Australia, Brazil, Canada, France, Italy, New Zealand, Switzerland, South Africa, and United Kingdom. Tungsten-Molybdenum Committee (IMC): Representatives of United States, Australia, Bolivia, France, Germany, Portugal, Spain, Sweden, United Kingdom, Brazil, and Chile. North Atlantic Treaty Organization (NATO): Development of combined plans including those affecting metals and minerals to implement the North Atlantic Treaty. Organization of American States (OAS) Organization for European Economic Cooperation (OEEC) Mr. MARTIN of Iowa. May I ask a question? Mr. REGAN. Mr. Martin. Mr. MARTIN of Iowa. The interdepartmental stockpile committee does have 13, as I understand it. Do you have more than that? Dr. MORGAN. That is about right, sir. I do not recall offhand. That is about right. Mr. ENGLE. I am not talking about the interdepartmental stockpiling committee, because we are not dealing specifically with the stockpiling program, which is a long-range program and which has objectives which are quite different than those of the Defense Production Administration. What I am trying to find out, Dr. Morgan, is what can we do, from a mechanical standpoint, to get a direct line of authority and responsibility from one man who has the job of getting copper, lead, zinc, tungsten, and all other minerals and metals into the defense and the emergency machinery? If you will give me that list I can send it down to Wilson and President Truman and say "How about merging some of these, or at least getting one man on top of the whole business so you don't have people trying to do the same job who have what amounts to equal authority? Mr. REGAN. Will you yield to Mr. Bennett? COPPER REQUIREMENTS NECESSITATE PRICE INCENTIVE FOR MARGINAL MINE PRODUCTION Mr. BENNETT of Michigan. Mr. Chairman, I would like to ask Dr. Morgan whether you have your objectives on copper figures? Dr. MORGAN. Yes, sir. The Defense Production Administration gave certain requirements figures to the Defense Minerals Administration. Defense Minerals calculated present supplies plus supplies that might be brought out at current market prices plus additional supplies that might be brought out at higher than current market prices. They presented a complete copper program to the Defense Production Administration on the basis of that calculation. This copper program was approved by the Defense Production Administration, and now Dr. Boyd is in the process of certifying to us the individual contracts necessary to carry out the general program. Mr. BENNETT of Michigan. What is the program? Dr. MORGAN. Sir, I cannot say in open session, due to the requirements data in it. Mr. BENNETT of Michigan. It is of a secret nature? Dr. MORGAN. Yes, sir; because it contains the requirements of the military program, the current program, as well as what the requirements would be in case of an all-out war. We usually compare the requirements on two levels-what the current civilian economy is, plus the current defense program requirements, or what the requirements for total war would be. Mr. BENNETT of Michigan. Now, you need copper for stockpiling, we all know that. Dr. MORGAN. Yes, sir. Mr. BENNETT of Michigan. We need it for the current national defense program. You need it for nonwar production purposes, for those three things. You have a certain amount of copper produced, and that is supplemented by what you get through imports. Dr. MORGAN. Yes, sir. Mr. BENNETT of Michigan. And the difference is what you will need in new production for this country, is that right? Dr. MORGAN. That is right, sir. Dr. BOYD. This country, or abroad. Mr. BENNETT of Michigan. Pardon? Dr. BOYD. If we can't do it here, we will have to go abroad. This country and abroad. Mr. BENNETT of Michigan. Are you carrying out the copper projects? Dr. BOYD. Yes, sir, all of these cases, we will have to go abroad in some cases. Dr. MORGAN. We look to the Defense Minerals Administration not only in regard to the domestic minerals, but also the minerals produced in the foreign countries, if that is necessary. Mr. D'EWART. Will the gentleman yield to me a minute? Mr. D'EWART. We have already reached a low in production of copper in relation to need. From now on, it will probably be less, somewhat less, and then level off, and the only hopes we have of ever meeting our copper requirements in this world from now on is by learning to use substitutes for part of our copper needs, according to this study. There were no hopes that we would ever in this world produce enough copper to equal the needs of the world again unless we increase the substitutes. Mr. BENNETT of Michigan. What I am trying to find out, I think what the committee wants to find out, at least a lot of us who are interested in this program are interested in finding out is, is to fair to say copper is still in critical short supply? Dr. BOYD. Oh, definitely, and it will always remain that way, as long as these programs will remain the same as they are today. Mr. BENNETT of Michigan. Is it your purpose to get as much additional copper as you can by stimulating and making contracts with domestic copper-mining industry? Dr. BOYD. Yes, sir. We are negotiating most of them right now. Mr. BENNETT of Michigan. Is the domestic mining industry given first consideration in this expansion program, as against any foreign commitments? Dr. BOYD. Definitely, yes, sir. Mr. BENNETT of Michigan. As I understand you, Dr. Boyd, one of the tests you used in determining whether a project should receive Government assistance, either by way of loan or procurement contract, that it must be economical. What is the yardstick you used! Dr. BOYD. I don't think that is quite true. Mr. BENNETT of Michigan. To determine whether a project is economical. Dr. BOYD. The answer to your question would be, that we would offer a contract whereby the company could get its mining operations into operation and remain in a competitive market. Under the Defense Production Act, and the necessity of this emergency, we will have to go to a support in some of these mines, they would not be normally economic. Mr. BENNETT of Michigan. That is right. In order to expand production, in 99 percent of the cases, you are going to have to pay over the market prices to get more copper, is that right? Dr. BOYD. Not 99 percent. Mr. BENNETT of Michigan. What percent? Dr. BOYD. It is considerably smaller than that. I can't put a percentage on it, but it would be in the ratio of 262 at market price, or lower, to 58 at above market price. Mr. BENNETT of Michigan. In other words, 152 to 58? Dr. BOYD. No-262 to 58. Mr. BENNETT of Michigan. That is the project and the application you are now considering. Dr. BOYD. That is the production from the projects we are considering. There are about the same number of mines involved in each group, but the higher cost ones are not as productive as the lower cost ones. Mr. BENNETT of Michigan. Do you consider payment over the mar ket price to be an economic project? |