APPENDIX FOREWORD TO APPENDIX Numerous documents relating to stockpiling or bearing on the welfare of the domestic mining industry and the national security with respect to strategic and critical minerals and metals are presented in the appendix. Many of the documents have had limited distribution only and few of them now are readily available to the public. Administration policies and actions affecting domestic mining industries and our national security with respect to minerals and metals are clearly revealed in these documents as well as in testimony given in subcommittee hearings. Efforts of various committees and individual members of Congress to provide means for stimulating the exploration and development of domestic resources and the mining, production, and conservation (preventing waste) of strategic and critical minerals and metals within the United States are shown by the exhibits. The subcommittee believes this collection of documents will serve as a valuable and highly informative reference. EXHIBIT I [PUBLIC-NO. 117-76TH CONGRESS] [CHAPTER 190-1ST SESSION] [S. 572] AN ACT To provide for the common defense by acquiring stocks of strategic and critical materials essential to the needs of industry for the manufacture of supplies for the armed forces and the civilian population in time of a national emergency, and to encourage, as far as possible, the further development of strategic and critical materials within the United States for common defense. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the natural resources of the United States in certain strategic and critical materials being deficient or insufficiently developed to supply the industrial, military, and naval needs of the country for common defense, it is the policy of Congress and the purpose and intent of this Act to provide for the acquisition of stocks of these materials and to encourage the development of mines and deposits of these materials within the United States, and thereby decrease and prevent wherever possible a dangerous and costly dependence of the United States upon foreign nations for supplies of these materials in times of national emergency. SEC. 2. To effectuate the policy set forth in section 1 hereof the Secretary of War, the Secretary of the Navy, and the Secretary of the Interior, acting jointly though the agency of the Army and Navy Munitions Board, are hereby authorized and directed to determine which materials are strategic and critical under the provisions of this Act and to determine the quality and quantities of such materials which shall be purchased within the amount of the appropriations authorized by this Act. In determining the materials which are strategic and critical and the quality and quantities of same to be purchased 981 7610048--pts. 4 and 5- 9 the Secretaries of State, Treasury, and Commerce shall each designate representatives to cooperate with the Secretary of War, the Secretary of the Navy, and the Secretary of the Interior in carrying out the provisions of this Act. SEC. 3. The Secretary of War and Secretary of the Navy, when they deem such action appropriate because the domestic production or supply of any of the above materials is insufficient to meet the industrial, military, and naval needs of the country, shall direct the Secretary of the Treasury, through the medium of the Procurement Division of his Department and from the funds authorized by the provisions of this Act, to make purchases of such materials in accordance with specifications prepared by the Procurement Division of the Treasury Department and approved by the Secretary of War and the Secretary of the Navy, and to provide for the storage and maintenance, and, where necessary to prevent deterioration, for the rotation of such materials. To accomplish such rotation, the Secretary of the Treasury, with the approval of the Secretary of War and the Secretary of the Navy, is authorized to replace acquired stocks of any such material subject to deterioration by equivalent quantities of the same material in such manner as he deems will best serve the purposes of this Act. The Secretary of the Treasury is empowered to meet, out of the funds authorized in this Act, expenses necessary to accomplish such rotation. The Secretary shall include in his annual report to Congress a detailed statement of expenditures made under this section and the method of rotation employed. The materials so purchased shall be stored by the Procurement Division of the Treasury Department on military and naval reservations or in other locations approved by the Secretary of War and the Secretary of the Navy. SEC. 4. Materials acquired under this Act except for rotation to prevent deterioration shall be used only upon the order of the President in time of war, or when he shall find that a national emergency exists with respect to national defense as a consequence of the threat of war. SEC. 5. Purchases under this Act shall be made in accordance with Title III of the Act of March 3, 1933 (47 Stat. 1520), but a reasonable time (not to exceed one year) shall be allowed for production and delivery from domestic sources and in the case of any such material available in the United States but which has not been developed commercially, the Secretary of War and the Secretary of the Navy may, if they find that the production of such material is economically feasible, direct the purchase of such material without requiring the vendor to give bond. SEC. 6. For the procurement, transportation, maintenance, rotation, and storage of the materials to be acquired under this Act, there is hereby authorized to be apropriated the sum of $100,000,000 out of any money in the Treasury not otherwise appropriated, during the fiscal years June 30, 1939, to and including June 30, 1943, to be expended under the joint direction of the Secretary of War and the Secretary of the Navy. SEC. 7. (a) That the Secretary of the Interior, through the Director of the Bureau of Mines and the Director of the Geological Survey, is hereby authorized and directed to make scientific, technologic, and economic investigations concerning the extent and mode of occurrence, the development, mining, preparation, treatment, and utilization of ores and other mineral substances found in the United States or its Territories or insular possessions, which are esssential to the common defense or the industrial needs of the United States, and the quantities or grades of which are inadequate from known domestic sources, in order to determine and develop domestic sources of supply, to devise new methods for the treatment and utilization of lower grade reserves, and to develop substitutes for such essential ores and mineral products; to explore and develop, on public lands and on privately owned lands, with the consent of the owner, deposits of such minerals including core drilling, trenching, testpitting, shaft sinking, drifting, cross-cutting, sampling, and metallurgical investigations and tests as may be necessary to determine the extent and quality of such deposits, the most suitable methods of mining and beneficiating them, and the cost at which the minerals or metals may be produced. (b) For the purposes of carrying out the provisions of this section there is hereby authorized to be appropriated out of any money in the Treasury not otherwise appropriated, for each of the fiscal years ending June 30, 1940, 1941, 1942, and 1943, the sum of $500,000, of which amount $350,000 shall be appropriated to the Bureau of Mines and $150,000 to the Geological Survey. Approved, June 7, 1939. EXHIBIT 2 TOCKPILING PROVISIONS OF THE SURPLUS PROPERTY ACT OF 1944 [PUBLIC LAW 457-78TH CONGRESS] [CHAPTER 479-2D SESSION] [H. R. 5125] N ACT To aid the reconversion from a war to a peace economy through the distribution of Government surplus property and to establish a Surplus Property Board to effectuate the same, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States America in Congress assembled, That this Act may be cited as the "Surplus roperty Act of 1944". STOCK PILING SEC. 22. (a) All Government-owned accumulations of strategic minerals and etals, including those owned by any Government corporation, shall be transerred by the owning agency, when determined to be surplus pursuant to this Act, to the account of the Treasury Procurement Division and shall be added to he stock pile authorized by the Act of June 7, 1939 (53 Stat. 811), as amended, and shall be subject to its provisions: Provided, That contractor inventory shall e so transferred only when the owning agency has taken possession of and deermined such inventory to be surplus. The minerals and metals may be transerred in any form in which they are held, but the owning agency or the Treasury Procurement Division is authorized either before or after such legal ransfer to cause such minerals or metals to be put into forms best suited for torage and use for the common defense. As used in this section the phrase strategic minerals and metals" means copper, lead, zinc, tin, magnesium, manganese, chromite, nickel, molybdenum, tungsten, mercury, mica, quartz rystals, industrial diamonds, cadmium, fluorspar, cobalt, tantalite, antimony, anadium, platinum, beryl, graphite (and to which may be added aluminum or any other minerals or metals in such quantities or amounts as the Army and Navy Munitions Board may determine to be necessary for the stock pile authorized y the Act of June 7, 1939), and shall include ores, concentrates, alloys, scrap, in dpartially and completely fabricated articles of which the principal comonents by value consist of such minerals and metals, but shall not include such abricated articles as the Army and Navy determine are not suitable for their ase in the form in which fabricated and which may be disposed of commercially at value substantially in excess of the metal market price of the component minerals and metals of such fabricated articles. (b) Pending a determination by the War Production Board that the supplies of the respective strategic minerals and metals available to industry are sufficient to meet the current requirements of industry, the owning agency subject to the regulations prescribed by the Surplus Property Board shall withhold from transfer under this section an amount of such minerals and metals equal to the deficiency, if any, estimated by the War Production Board as likely to exist for the requirements of industry for a period of six months for purposes other than var production; and may dispose of the minerals and metals so withheld to the xtent necessary to meet any such deficiency actually found to exist by the War Production Board, at the market price of the respective minerals and metals. (c) Any Government-owned accumulations of strategic materials shall at the request of the War and Navy Departments be transferred by the owning agency, when determined to be surplus pursuant to this Act, to the account of the Treasury Procurement Division and shall be added to the stock pile authorized by the Act of June 7, 1939 (53 Stat. 811), as amended, and shall be subject to its provisions. The materials may be transferred in any form in which they are held and they shall thereafter be put into forms best suited for storage and ase for the common defense. The term "strategic materials" as used in this subsection means all materials except strategic minerals and metals as defined subsection (a) of this section and includes all materials in group A or in group B of the list of strategic and critical materials determined upon by the Army and Navy Munitions Board on March 6, 1944, as amended from time to time, but shall not include any of such materials which the Army and Navy determine do not meet the specifications suitable for common defense or ar in excess of the needs thereof. The Army and Navy Munitions Board is author ized to direct the removal from the list of any of the materials as defined i this subsection, in which event they shall be disposed of under the provision of this Act. (d) Within three months following the enactment of this Act the Army an Navy Munitions Board shall submit to Congress its recommendations respectin the maximum and minimum amounts of each strategic mineral or metal whic in its opinion should be held in the stock pile authorized by the Act of Jun 7, 1939. After one year from the submission of such recommendations, unles the Congress provides otherwise by law, the Board may authorize the prope disposal agencies to dispose of any Government-owned accumulations of strategi minerals and metals including those owned by any Government corporation whe determined to be surplus pursuant to this Act. LETTER FROM THE ARMY AND NAVY MUNITIONS BOARD TRANSMITTING, PURSUAN TO LAW, A REPORT ON STRATEGIC MATERIALS The Honorable HENRY A. WALLACE, ARMY AND NAVY MUNITIONS BOARD, The President of the Senate. DEAR MR. PRESIDENT: There is transmitted herewith a report on strategic mate rials, which is submitted to the Congress by the Army and Navy Munitions Board, pursuant to section 22, subsection (d), of the Surplus Property Act of 1944. Attention is invited to the fact that tables III and IV of the report are classified as confidential.1 This report is simultaneously being transmitted to the Speaker of the House of Representatives. (Submitted by the Army and Navy Munitions Board, pursuant to sec. 22, subsec. (d), of the Surplus Property Act of 1944) Section 22 (d) of the Surplus Property Act of 1944 (Public Law 457, 78th Cong.), approved October 3, 1944, provides: "Within three months following the enactment of this Act the Army and Navy Munitions Board shall submit to Congress its recommendations respecting the maximum and minimum amounts of each strategic mineral or metal which in its opinion should be held in the stock pile authorized by the Act of 7 June 1939. After one year from the submission of such recommendations, unless the Congress provides otherwise by law, the Board may authorize the proper disposal agencies to dispose of any Government-owned accumulations of strategic minerals and metals including those owned by any Government corporation when determined to be surplus pursuant to this Act." 1 Not printed. Pursuant to this subsection, the Army and Navy Munitions Board herewith bmits to the Congress its recommendations. In addition to minerals and etals, as mentioned in the statute, there are a number of fibers, chemicals, drugs, nd oils, the stock piling of which is as fully necessary for strategic reasons of ational defense as the stock piling of the minerals and metals. Therefore, we re presenting to the Congress the strategic needs of the Nation for raw mateals of all types. The recommendations submitted herein have been derived from several studies ande of the subject of stock piling during the past 25 years, and an analysis of rock-piling experience in the present war. A discussion of the considerations ading to these recommendations follows. For reasons of military security, we are of the opinion that the quantities of aterials involved in our recommendations for stock piling should not be made ublic. Consequently, tables III and IV, attached hereto,' which carry these quanties are classified as confidential. I. NECESSITY FOR STOCK PILING While the United States has a wealth of natural resources, the Nation's exeriences of the past several years have established that it is far from selfcient in having available the variety of raw materials necessary to the conduct í a major war (including the maintenance of essential civilian supply). Furher, the increasing drain upon and consequent depletion of the Nation's reources resulting from the heavy demands of the war program, demonstrate onclusively that the maintenance of stocks of strategic and critical materials is n essential element of national security. The strength of the Axis Powers was erived to a large extent from the stock piles of vital raw materials accumulated n the years preceding the outbreak of hostilities. Likewise, the limited ability of the United States to satisfy its military requirements in the early days of our articipation in this war can be substantially attributed to the small stock piles of trategic and critical materials acquired prior to Pearl Harbor. 1. War shipping One important consideration making it desirable and necessary to import eserve stocks of raw materials is the difficulty of acquiring adequate supplies of such materials upon the outset of an emergency. At the beginning of war, hipping becomes a serious problem, available ships being immediately needed or the distribution of personnel and supplies as required by the armed forces. At the same time, the requirements in raw materials to meet the needs of our war ndustries are greatly expanded. A diversion of shipping in order to import those materials is a net loss to the war effort in those cases where this could have been obviated by stock piling such materials in peacetime. Another compeling reason for stock piling lies in the fact that at the outset of war we are likely, by reason of enemy operations to be denied access to the principal world sources of many strategic materials. This fact is clearly illus*rated by our experience in early 1942 when the Japanese cut our sea communications to the Far East, with consequent loss to us of our principal sources of supply of tin, rubber, manila fiber, and other necessary materials. While the Far Last was completely shut off, other areas became inaccessible in varying degrees as the result of enemy action. Shipping routed to India, the east and west coasts of Africa, and to South America became endangered and the Mediterranean was practically closed to traffic. Consequently, supplies of material had to go by circuitous and hazardous routes, and large shipping tonnages were thus tied up for long periods of time. In an effort to shorten the time lag in transportation from foreign countries to the war plants in the United States, substantial tonnages of certain heavy materials had to be flown from China, Africa, India, and South America. As another example, we note that in the winter of 1942-43 substantial tonnages of bauxite from the Guianas were lost due to submarine sinkings; these losses, in turn threatened to curtail aluminum production, placed an additional burden upon domestic mining facilities, and drew labor from other important war production. In war, as well as in peace, there are many commodities, particularly foods, fats and oils, and fibers, which must be shipped periodically because of perishability or seasonal output. Since the major portion of raw materials essential to the production of munitions, particularly minerals, are not subject to deterioration through storage, acquisition, and stock piling of these materials prior to war will make available larger amounts of shipping space to move such commodities as coffee, sugar, palm oil, cocoa beans, copra, and other important sea1 Not printed. |