amendment. The effect of the amendment would be to make the prior law on copper apply in case any conflict should arise between that law and this bill if enacted into law.

GENERAL STATEMENT

Import duties and taxes on metal scrap were suspended from March 14, 1942, to June 30, 1949, inclusive, under Public Law 497, 77th Congress, and Public Laws 384 and 613, 80th Congress. The impor duties on metal scrap were again suspended from October 1, 1950, ti June 30, 1951, under Public Law 869, 81st Congress. This suspension was extended from June 30, 1951, to the close of June 30, 1952, by Public Law 66, 82d Congress.

Public Law 535, also of the 82d Congress, extended the suspension. to the close of June 30, 1953, with the proviso that the act was no applicable to lead scrap. The rates of duty on the principal types o ferrous and nonferrous metal scrap, the suspension of which would b continued by the bill, are shown in the following table:

TARIFF STATUS OF METAL SCRAP AND OTHER METAL ARTICLES

In the absence of special legislation, such as enactment of H. E 5148, which continues the existing suspension of duties on metal scra except certain zinc scrap, the principal types of metal scrap would b assessed with duties and import taxes under the Tariff Act of 1930, a amended and modified, and section 3425 of the Internal Revenue Codi as indicated in the following table:

NOTE.-The import tax imposed under sec. 3425, IRC, on certain copper-bearing articles, including me scrap containing copper, is also suspended under Public Law 38, 82d Cong., as amended by Public Law 83d Cong. Public Law 38, as amended, expires on June 30, 1954, or earlier if the average market price electrolytic copper (delivered Connecticut Valley) for any 1 calendar month has been below 24 cents! pound. Thus enactment of H. R. 5148 would not affect the suspension of the import tax on copper sai until the provisions of Public Law 38, as amended, are no longer applicable.

The Tariff Commission in a report dated March 4, 1953, states th the most outstanding development with respect to the scrap-met market in the United States since mid-1949 has been the sharp ri in demand for scrap in relation to the supply of scrap from all source According to the Tariff Commission, the ad valorem equivalents the rates of duty shown above, based on import values in 1952 al assuming that the duties had actually been assessed, would have be as follows: Iron and steel scrap, 0.9 percent; aluminum scrap, § percent; copper scrap, 8.0 percent; brass scrap, 8.0 percent; magnesiu scrap, 130.8 percent; nickel and nickel-alloy scrap, 6,8 percent; le

scrap, 7.5 percent; and zinc scrap, 9.8 percent. Imports of relaying and rerolling rails, which are not separately reported, were probably negligible.

In his report to the Ways and Means Committee on H. R. 2740, which was superseded by H. R. 5148, the Secretary of Commerce stated in part as follows:"

Iron, steel, copper, aluminum, and some other scrap metals are currently in short supply and, in addition, are selling at high prices. Accordingly, we recommend enactment of legislation suspending import duties on scrap of such metals. Lead scrap, however, is not presently in short supply, the demand for it has decreased, and the price has dropped. We therefore do not believe, on the basis of the present proposal, that lead scrap should at this time be included in the list of metals on which import duty is suspended.

The acting Judge Advocate General of the Navy, reporting for the Secretary of Defense, in a communication to the Ways and Means Committee dated April 15, 1953, stated in part as follows:

The present and the anticipated demand during the next fiscal year for metal to meet civilian and defense production needs is considered sufficiently great to justify the continued suspension of duties and import taxes on such materials. There exists at the present time definite shortages of certain copper and copper-based alloys and also certain types of steel scrap. In order to encourage the importation of metal scrap, it is considered necessary to continue in effect this measure which tends to make the market for foreign scrap in the United States attractive.

In view of the Bureau of Mines' statistics that only 3,325 tons of zine scrap were imported during 1952, the Finance Committee was of the opinion that permitting duty-free imports of zinc scrap during the 1-year extension would not, if limited to imports under written contracts entered into prior to July 1, 1953, aggravate the present dis-tressed condition of the domestic zinc-mining industry.

The Treasury Department has reported that it anticipates no unusual administrative difficulties with the provisions of this bill.

CONCLUSION

In view of the continuing shortage of scrap metal generally from domestic sources in relation to demand and the continued high level of defense activity, the enactment of this legislation is recommended.

CHANGES IN EXISTING LAW

In compliance with subsection (4) of rule XXX of the Standing Rules of the Senate, changes in existing law made by the bill, as eported, are shown as follows (existing law proposed to be omitted senclosed in black brackets, new matter is printed in italics, existing aw in which no change is proposed is shown in roman):

[PUBLIC LAW 869-81ST CONGRESS]

IN ACT To continue until the close of June 30, 1951, the suspension of duties and import taxes on metal scrap. and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of Imerica in Congress assembled, That the Act of March 13, 1942 (ch. 180, 56 Stat. 71). as amended, is hereby amended to read as follows:

"SEC. 1. (a) No duties or import taxes shall be levied, collected, or payable nder the Tariff Act of 1930, as amended, or under section 3425 of the Internal levenue Code with respect to metal scrap, or relaying and rerolling rails.

"(b) The word 'scrap', as used in this Act, shall mean all ferrous and nonferrous materials and articles, of which ferrous or nonferrous metal is the component material of chief value, which are secondhand or waste or refuse, or are obsolete, defective or damaged, and which are fit only to be remanufactured.

"SEC. 2. Articles of which metal is the component material of chief value, other than ores or concentrates or crude metal, imported to be used in remanu facture by melting shall be accorded entry free of duty and import tax, upon submission of proof, under such regulations and within such time as the Secretary of the Treasury may prescribe, that they have been used in remanufacture by melting: Provided, however, That nothing contained in the provisions of this section shall be construed to limit or restrict the exemption granted by section 1 of this Act."

SEC. 2. The amendment made by this Act shall be effective as to merchandis entered, or withdrawn from warehouse, for consumption on or after the day follow ing the date of the enactment of this Act and before the close of June 30, [1953] 1954: Provided further, That this Act shall not apply to lead scrap or zinc scrap It shall also be effective as to merchandise entered, or withdrawn from warehouse for consumption before the period specified where the liquidation of the entry o withdrawal covering the merchandise, or the exaction or decision relating to the rate of duty applicable to the merchandise, has not become final by reason section 514, Tariff Act of 1930.

830 CONGRESS 1st Session

}

SENATE

{

REPORT No. 637

CONTINUANCE OF VETERANS' ADMINISTRATION OFFICE

IN REPUBLIC OF THE PHILIPPINES

JULY 24 (legislative day, JULY 6), 1953.-Ordered to be printed

Mr. MILLIKIN, from the Committee on Finance, submitted the following

REPORT

[To accompany H. R. 3884]

The Committee on Finance, to whom was referred the bill (H. R. 3884) to extend the authority of the Administrator of Veterans' Affairs to establish and continue offices in the Republic of the Philippines, having considered the same, report favorably thereon without amendment and recommend that the bill do pass.

By virtue of this act the House report is accepted as follows:

EXPLANATION OF THE BILL

The purpose of this bill is to extend the authority of the Veterans' Administration to operate a regional office in the Republic of the Philippines until June 30, 1960. The present authority expires June 30, 1954.

Previously, the Veterans' Administration has received specific authorization to operate this office on three different occasions by the Congress. Public Law 91 of the 80th Congress authorized the operation through June 30, 1948. That was extended by Public Law 474 to June 30, 1950, and Public Law 546 of the 1st Congress extended the authority to June 30, 1954.

There are

approximately 360,000 living veterans with service in and with the United States Armed Forces in the Philippines. It is estimated that a substantial number of these veterans and dependents of approximately 50,000 deceased Veterans are potentiall y eligible for certain benefits administered by the Veterans' Administration.

A total of 22,626 disability claims have been filed through the fiscal year 1952. It is estimated that the number of claims will increase to approximately 29,000 at the end of the fiscal year 1954. For the fiscal year 1952 there were 96,000 running awards to Philippine beneficiaries. This figure, it is estimated, will increase to 118,000 for the fiscal year 1954. Assistant Secretary of State, that "Both for administrative and policy reasons the advised by Mr. John M. Allison, ontinuance of the facilities of the Veterans' Administration in the Philippines is virtually a necessity." Although, as indicated, this authority does not expire it is necessary that legislative action be taken this year with respect to the basic 1954, in view of budgetary considerations and appropriation requirements

authority.

The proposed legislation will merely authorize the Veterans' Administration to continue the present administrative operation of the Philippines, and it is believed that its enactment will involve no additional cost to the Government. The report of the Veterans' Administration follows:

VETERANS' ADMINISTRATION, Washington 25, D. C., March 9, 1953.

Hon. JOSEPH W. MARTIN, Jr.,
Speaker of the House of Representatives,

Washington 25, D. C.

DEAR MR. SPEAKER: There is transmitted herewith a draft of a bill to extend the authority of the Administrator of Veterans' Affairs to establish and continue offices in the Republic of the Philippines, with the request that it be introduced in order that it may be considered for enactment.

The purpose of the proposed legislation is to extend for a period not beyond June 30, 1960, the existing authority of the Administrator of Veterans' Affairs with respect to the establishment and continuance of a regional office and other subordinate offices in the Republic of the Philippines so that the program of benefits authorized by the Congress for certain veterans and their dependents residing in that country may be efficiently and economically administered.

Under section 7 of the World War Veterans Act, 1924 (43 Stat. 609; 38 U. S. C. 430), the Administrator of Veterans Affairs is authorized to establish such regional offices and subregional offices within the territory of the United States and its outlying possessions as may be deemed necessary by him and in the best interests of the work committed to the Veterans' Administration. In supplementation of this authority, section 101 of the Servicemen's Readjustment Act of 1944 (58 Stat. 284; 38 U. S. C. 693a) authorizes the Administrator of Veterans' Affairs to establish necessary regional offices, suboffices, branch offices, contact units, or other subordinate offices in centers of population where there is no Veterans Administration facility, or where such facility is not readily available or accessible Pursuant to the aforementioned provision of the World War Veterans' Act 1924, there was established in Manila prior to World War II a Veterans' Admin istration office for the purpose of receiving and developing claims, investigating doubtful and fraudulent claims, handling guardianship matters, and authorizing hospital and medical care to American veterans residing in the Philippines. Afte the reoccupation of the Philippines by the American forces in World War I this insular office was reopened early in 1945 under authority of the statute herein before mentioned, and in view of the expanding services which it was ap parent would be required to handle the great additional number of claims, particu larly on account of Filipinos who served in the American forces pursuant to th military order of the President of the United States of July 26, 1941, a regiona office was subsequently activated.

In view of the independence of the Philippines on July 4, 1946, and the statu of the Republic as a foreign country after that date, a question arose as to th legality of expending Veterans' Administration appropriated funds for the con tinued maintenance of the regional office. The question was submitted to th Comptroller General of the United States who advised the Administrator Veterans' Affairs that although there was no specific authority of law for th maintenance of a regional office after July 4, 1946, in view of the congression action subsequent to the date of independence appropriating funds for the pur chase and reconditioning of an office building for the Veterans' Administratio in Manila (Third Deficiency Appropriation Act, 1946, Public Law 521, 79t Cong., approved July 23, 1946), he, the Comptroller General, would interpose n objection to the continued maintenance of the office for a reasonable perio not extending beyond June 30, 1947.

The Veterans' Administration thereupon submitted the matter to the Congres and legislation was enacted (Public Law 91, 80th Cong., approved June 14, 1947 authorizing the Administrator of Veterans' Affairs to establish and continu necessary offices in the Republic of the Philippines until June 30, 1948. Durin the 2d session of the 80th Congress, Public Law 474 was enacted continuing th authority to June 30, 1950. This authority was again extended to June 30, 195 by Public Law 546, 81st Congress.

The continued maintenance of Veterans' Administration operations in th Philippines beyond June 30, 1954, is of great importance. There are approx mately 360,000 living veterans of service in and with the United States Arme Forces in the Philippines. In view of the heavy war casualties a substanti number of these veterans and dependents of approximately 50,000 decease veterans are potentially eligible for certain benefits administered by the Veteran