Escalation clause and other basic terms

Contract (base) rmt prices ($0) 92 and $1 02) are subject to increase or decrease, based on changes reflected in 2 Government publications From the publiest.on Hours and Earnings Industrial Report, the factor to be used will be based on Monthly average burly earnes cents metal mining," and from the publication Indet Numbers of Wolesale Prices of Groups and subgroups of ( nagodities, the factor to be used will be based on the average of the Index numbers of iron and steel prices ani bu #ing materials prices" Both of the publicata ras referred to are published by the U-8, Department oof Labor

Contract (base) unit price ($1.50 per long ton unit) is subject to increase or decrease based on changes reflected in the report 15 lex Narobers of Wholesale Prices of ade Catti Bodies pubished by the U is Department of Lalax Prodicum by Manganese, Inc, un ier ou traci 08-00P-JIS (NOM Manganese, lue, is the benediate approĝimately 297,998 jotg tons of dovernment owned Tagaose which a atskled at or near the Three K. Is Mines at. 1 is of a quality that does not, due to its perserit chemi cal analysis, couif en in quality with re fements of national stockpile specification P Ju The 29, 19

cts under the Defense Production Act. Only two of the above contracts, one with sets Act of 1950,

and we asked them how much material had been stockpile, and they gave me the figure. It developed down into three categories, as follows: On hand, co earmarked. When I asked them for a breakdown o between on hand, contracted for, and earmarked, ti that was classified information that they could give 1. tive session.

I notice here that you claim that you have processed from page 2 at the bottom of your statement-proc procurement contracts.

Dr. BOYD. Yes.

Mr. ENGLE. The term "processed" doesn't mean t contract?

Dr. BOYD. No, sir; it does not.

Mr. ENGLE. In other words, what you were saying ment is that you have done your job on that many?

Dr. BOYD. Yes, sir.

Mr. ENGLE. But that doesn't clear them all over the they face on the other side of the building?

Dr. Boyn. That is correct.

Mr. ENGLE. And then these figures that you have set based upon the assumption that all the processed cont put into execution; isn't that right?

Dr. BOYD. Yes, sir. I have no reason to assume that t be approved. There is no reason to.

Mr. ENGLE. Wait a minute. I am not so sure about you have done at the top of page 3 of your statement, Dr. indicate the anticipated results of contracts not yet made have only been processed by your agency; isn't that right Dr. BOYD. Yes.

Mr. ENGLE. In other words, so far as these figures are they are fully unrealistic, are they not? They have not tionship to the present facts at all; isn't that right!

Dr. BOYD. I can't answer that just now.

Mr. ENGLE. Maybe that is putting it a little too strong don't represent firm contracts of this material, much less 11 hand.

Dr. BoyD. Not all of them. Some of them do, but most don't; that is correct.

Mr. ENGLE, We have a statement here from the Generai Administration which indicates that you have about four out. Is that right? Would you say that this compilation by General Services is correct?

(The statement referred to is as follows:)

Hon. JOHN R. MURDOCK,

GENERAL SERVICES ADMINISTRA
Washington 25, D. C., April

House of Representatives, Washington 25, D. C.

DEAR MR. MURDOCK: Receipt is acknowledged of your request of 1951. for information concerning contracts let as a result of certificatby the Defense Production Administrator or the National Security E Board based on recommendations of the Secretary of the Interior or 11 istrator of Defense Minerals Administration, for the purpose of encou exploration, development, and mining of strategic and critical materiais ̧ to the Defense Production Act of 1950.

There is enclosed a tabulation giving the information requested.

As a matter of expediency, the contracts with the Climax Molybdenum Corp. and Manganese, Inc., were executed in advance of certification under the Defense Production Act, and at present they are in effect stockpiling contracts. Certificates under the Defense Production Act, covering these cases, have been requested from the Defense Production Administrator. If and when such certificates are issued, the contracts will be continued in whole or in part under the authority of the Defense Production Act.

In addition to the contracts listed on the tabulation, the Secretary of the Interior or the Administrator of Defense Minerals Administration has requested certifications from the Defense Production Administrator in the following cases, as indicated by copies of letters received by this Administration.

I trust the information given herein will be of assistance to the committee.

Sincerely yours,

JESS LARSON, Administrator.