Shallow-water color photography provides a sharper delineation of submarine features and more precise mapping than with other techniques. The increased accuracy is important to off-shore test-drilling operations.

The Survey also provides special services to aid in the exploitation of off-shore petroleum deposits. A series of 41 maps of the Louisiana coast has been prepared for the Bureau of Land Management and the State of Louisiana. These maps are used in preparing leases covering off-shore exploration. Survey triangulation surveys permit the more accurate positioning of off-shore drilling rigs. The Survey also helps clarify legal and technical problems connected with Supreme Court decisions and acts of Congress having to do with mineral rights in U.S. tidelands.

Bureau programs and activities in the field of oceanography, including depth sounding, dredging, and core sampling of the ocean bottom and overlying deposits, and deep-sea stereophotographs of the ocean floor, are all of prime importance to future sea-floor mining operations.

(5) The Office of Technical Services collects and distributes reports of U.S. Government-sponsored technical research and translations of foreign technical literature. Of the 30,000 technical documents it is currently collecting each year, over one-third relate to minerals. Very little of the technology has to do with exploration, recovery, and basic processing, but is advanced research aimed at improving products, developing new applications, and deriving new materials from minerals. Such research includes development of new and improved metals, crystals for electronic use, and petrochemicals. Fuel studies extend from the fossil fuels to the AEC work on nuclear fuels, Army-Navy-Air Force research on the fuel cell, and development of exotic fuels for powering rockets. An experimental program of evaluation and pointing up of new commerical applications from promising Government research has also been in progress for the past 2 years. Among the studies to be published are some of interest to mineral-related industries, such as explosive metal forming, a new brake fluid corrosion inhibitor, improved silicone lubricants, cellular metals, ultrasonicassisted grinding, and electron-beam welding.

(6) The proposed civilian industrial technology program is an extension and strengthening of the Department's efforts to promote industiral growth through the encouragement of more effective use of technology by industry. The program will support research in selected industrial fields, for example, machine tools, foundaries and castings, and building and construction having direct bearing on the minerals industry. The program will also seek to develop a more effective and faster system of disseminating technical information in a form in which it can be profitably used.

Foreign producers in the machine tool industry receive similar assistance from their governments as a result of a high rate of application of technological developments arising from university and industrial research. Germany and Great Britain, for instance, together apply a total research effort in terms of man-years equal to ours in the field of metalworking-production engineering research. In relation to their gross national products, Great Britain and Germany are doing research in this field at a rate approximately three times ours. The highly fragmented foundry and castings industry is also facing technological competition, especially in the field of large castings. Foreign suppliers now compete in technical quality, as well as price. The research and development effort in the European countries is more intensive than ours, with the aid of financial and other assistance from those governments.

The civilian industrial technology program will seek to encourage additional research and development in these industries as well as in the building and construction and textiles industries which are important users of minerals and fuels and derived products, and to diffuse the latest technology through the mechanisms of industry associations, industry-university technical extension services, professional groups, and the technical press.

7. The Area Redevelopment Administration program was established 2 years ago to alleviate conditions of substantial and persistent unemployment and underemployment in two classes of "redevelopment areas." The first class consists of areas that show an excessive rate of unemployment currently and that have had excessive unemployment over the past several years. The second consists of other areas, including Indian reservations, that have low family income and that have experienced substantial unemployment or underemployment.

Many mining areas throughout the country have been designated as redevelopment areas. Employment has increased in only a few segments of the

minerals industry in recent years. Total employment in the minerals industry has declined about one-third since 1950. The decline has been exceptionally severe in coal mining. Employment in the anthracite industry, has diminished by about three-fourths since 1950 and in the bituminous coal industry, has dropped by two-thirds (or 300,000 persons for the two industries). Employment in the metal mining sector has declined almost one-third in this period. The Appalachian region, southern Illinois and western Kentucky, which produced 90 percent of the Nation's coal in 1950, have been especially hard hit by employment declines. Employment in iron mining has suffered a sharp and extensive decline in the Lake Superior region and in Alabama. Scattered employment declines have occurred in both the Eastern and Western States in other minerals industries, such as lead and zine mining, and petroleum production.

The area redevelopment programs have provided for several types of assistance to mining areas, as well as to other areas, that have not been able to make sufficient economic adjustment to avoid substantial and persistent unemployment or underemployment. To the maximum extent possible, ARA avoids overlapping with the programs of other Federal agencies, and so far as practicable, uses the services of other agencies.

The ARA program comprises technical assistance to the mineral industry, loans to industries which produce, process or consume mineral products, and assistance in various other ways to the economic development of mining areas. Inasmuch as the Department of the Interior already has a program for aiding minerals exploration, technical assistance by ARA in this field has been limited to spot situations connected with promising possibilities for area redevelopment in which the Department of the Interior could not act effectively under its authorization. Technical assistance funds have been provided for exploration of iron ore deposits in Tennessee and Texas, for broad mineral resource surveys in selected counties in Alabama, Georgia, and Texas, and in several Indian reservations. A project has been sponsored for exploration of a salt deposit in southeastern Ohio that might become the basis for establishment of certain chemicals manufacture.

The ARA also has a number of technical assistance projects on the mining and utilization of minerals. One project, for example, is concerned with experimentation on hydraulic mining of coal in the State of Washington, where the faulted and steeply pitching coal beds are difficult to mine by conventional methods. This process, if successful, might be applicable to other areas with similar problems in both the western and eastern coal-producing areas. Another project is a study that has been approved for the Colville Indian Reservation in Washington on the feasibility of marketing phosphate and other minerals from saline deposits.

ARA has been especially interested in minerals that might be used locally and regionally in the construction industries. In this field, it has approved a project for studying the possibilities of clay products production in Kentucky and for considering cement and lime production in northwest Florida.

In view of the significance of the iron and steel industry to redevelopment areas and to the country as a whole and the problem of declining use of iron ore, a major effort is being made to determine what can be done to strengthen the utilization of iron ore resources through testing various new processes. The main problems center around the low iron content in many deposits, the fineness of the ore and the existence of certain impurities that are troublesome to eliminate by the processes that are now being used. The ARA-financed studies in this field may be applicable to the Lake Superior area, Tennessee, North Carolina, Missouri, Texas, Arizona, Montana, and other States which have iron ore deposits.

ARA loans for investment in mining and utilization of minerals have thus far been confined largely to minerals used in the construction industry. Loans have been approved for lime production facilities in Maine, a synthetic marble and a structural tile plant in Texas, facilities for producing concrete blocks and pipe in Mississippi, two plants for producing tile in Alabama, and a plant for producing high-grade silica sand in Indiana. Loans have also been made for equipping a coal mine in Utah and a pottery plant in Texas. Several loans have been made for metal fabricating plants.

A number of loan applications for facilities to produce, process, and utilize minerals are awaiting the completion of technical assistance or other investigations. These applications pertain especially to iron and steel, coal and nonmetallic construction materials.

ARA has provided extensive assistance to mining areas in programs other than those for direct aid to the minerals industry. A total of 173 projects have been approved for assistance to other industries and public bodies since the Area Redevelopment Act was passed. Of this number, 57 projects have provided for technical assistance, 72 for industrial loans, and 44 for grants or loans for public facilities.

Many mining areas have requested and have received ARA assistance for studying their redevelopment problems. It is expected that most of the studies will result in employment-generating projects that business enterprise or public bodies will undertake later either with or without ARA financial assistance.

ARA has provided loan funds when projects to be undertaken by private enterprise could not be financed by private lenders or other Federal agencies on reasonable terms and when there has been reasonable assurance of repayment. A wide variety of projects have been so financed in mining areas.

Numerous loans and grants have also been made for public facilities in the mining areas. In many cases, the areas have inadequate facilities to attract industry and inadequate financial means for providing the necessary investment. Consequently, ARA has made loans or grants, depending on the financial status of the areas and their repayment capacity, for financing needed public improvements, such as water supply and sewage systems, industrial highways, public buildings, or other public facilities required to enable them to recover economically.

Finally, job retraining programs have been undertaken in many of the mining areas to create new skills and opportunities for the unemployed or underemployed who can no longer expect to find jobs on the basis of their previously acquired skills. So far as possible, this program is geared to the needs of existing industries in the areas and to new industries that are to be developed by private financing or through the ARA redevelopment program.

(b) In the industrial, marketing, and economic areas of Department activities, two agencies, the Business and Defense Services Administration and the Bureau of International Commerce, carry out programs which seek to further the growth of the economy, both domestically and internationally, with resultant benefits to all industries, including the minerals industry.

(1) The Business and Defense Services Administration conducts specific broad-ranged studies of specific industries and reports on the outlook for these industries to provide a better understanding of their problems and point toward their solutions by industry and government. A major portion of these studies is in industries which produce or use metals and minerals.

BDSA, in its contact with the Office of Emergency Planning and other interested agencies, has contributed toward the development of an orderly, nondisruptive program of disposal of excess Government stockpiles to assure the least possible detriment to the mineral and other industries involved. sultation with industry to obtain its advice on such programs has been a prerequisite of the agency.

Con

The maintenance of a mobilization base, that is, adequate industrial facilities to meet both current defense and future mobilization needs, has been a concern of BDSA throughout its existence. In the minerals field, this means adequate plant and equipment for the processing and shaping of metal and mineral products in useful form. The agency also takes an active part in maintaining an effective national defense executive reserve, made up of officials of the metals and minerals industries among others, which stands ready at all times to assist the Government, should an emergency occur, in carrying out such activities as the allocation of materials and the maximization of production.

(2) BDSA and the Bureau of International Commerce conduct export promotion programs for the benefit of industry through increasing direct and indirect trade in the products of the minerals and other industries, and for improvement of the balance-of-payments position of the United States. These operations include the dissemination of specific information on particular export trade opportunities and sales agency opportunities, maintenance and dissemination of extensive information on firms in foreign countries, close contact with commercial officers at foreign posts, the preparation of export potential studies on products and for areas abroad affording market possibilities, the displaying of U.S.-made products at trade fairs and trade centers abroad, and sending trade missions abroad to stimulate sales of U.S. products. These activities are concerned both with the direct sale of U.S.-produced raw materials and

primary metal products and with the sale of manufactured products containing metals and minerals, thus providing indirect export markets for U.S. minerals and metals.

The two agencies participate in international meetings concerned with trade, and negotiate for the removal of foreign trade barriers in order to stimulate sales of American goods abroad. These agencies, among others, will prepare the commodity information needed by the United States in the forthcoming negotiations under the Trade Expansion Act. They will be working closely with minerals and other industries to obtain a full understanding of industry viewpoint and interests.

In addition to discussions on tariffs and related matters, the two agencies participate in a number of other international organizations, including the Organization for Economic Cooperation and Development (OECD) and various United Nations agencies, such as the Economic Commissions for Europe, Asia and the Far East, and Latin America. In the OECD, of which the United States is now a member, Commerce will be taking an increasingly active part in the work of the Iron and Steel Committee and the Nonferrous Metals Committees. These and the international forums provide opportunities not only for the exchange of information and the development of special studies on specific problems, but also afford the means for bringing U.S. influence to bear on policies and practices of foreign governments.

(3) The Bureau of International Commerce, under the Export Control Act of 1949, as amended, exercises control over exports of metals and minerals to the extent necessary (a) to protect the domestic economy from the excessive drain of scarce materials and to reduce the inflationary impact of abnormal foreign demand; (b) to further the foreign policy of the United States and to aid in fulfilling its international responsibilities; and (c) to exercise the necessary vigilance over exports from the standpoint of their significance to the national security of the United States. At present, there are no quantitative restrictions on exports of metals and minerals for reasons of security (as cited in (a) above). Controls are being exercised essentially in the interest of national security, to restrict or prohibit the flow of strategic commodities to the Iron and Bamboo Curtain countries.

Mr. GOLDY. The concern of the Department in the lead and zinc industries stems from its interest in all aspects of our industrial economy. The lead and zinc industries encompass not only mining operations but also the various phases of concentration, processing, fabrication, and consumption.

The principal governmental responsibility with respect to the mining and concentration of ores rests with the Department of the Interior. It is in the area of industries processing these two metals and in the area of other industries consuming these two metals, that the activities of the Commerce Department relate most directly to the lead and zinc industries.

The programs of the Department which may relate to solutions of the problems of the lead and zinc industries are of two main types: (a) those releated to technical and financial assistance for communities in areas of persistent unemployment or underemployment, and (b) those related more generally to industrial, marketing, and economic services for all industries.

First with respect to the Department's assistance programs, there are two such programs that apply to lead and zinc areas that are economically distressed. These are the area redevelopment program and the accelerated public works program, both of which are administered by the Area Redevelopment Administration.

Lead-zinc mining areas are eligible to participate in the area redevelopment program when they meet the designation standards of the act. There are approximately 100 counties in the United States that are now or have been in recent years significant producers of lead or zinc.

Of this number, 32 counties, or almost one-third of the total leadzinc counties, have been designated by ARA as redevelopment areas. As exhibit I, I have a list of the States and counties that have been designated both for purposes of the Area Redevelopment Act and the Accelerated Public Works Act. Their classification is stated on the exhibit and also, as I will explain in a minute, the status of their overall economic development program.

Mr. WHITE. Without objection, exhibit I will be included in the record as this point. Hearing no objection, it is so ordered. (The material referred to follows:)

EXHIBIT I

Lead-zinc mining counties that are designated for both area redevelopment and accelerated public works

The 5(a) areas are those that have experienced substantial and persistent unemployment for an extended period of time and the 5(b) areas are those that have low income and substantial and persistent unemployment or underemployment.

2 Explanation of symbols: A-approved, P-pending, NR-Not yet received by ARA. 3 County has recently been dedesignated as a redevelopment area but is still designated for accelerated public works.

Mr. GOLDY. The area redevelopment program was established under the Area Redevelopment Act, passed on May 1, 1961, a little more than 2 years ago. The prime objective of this act is to provide measures that will bring about permanent improvement in the conditions that account for substantial and persistent unemployment in areas that are determined to be economically distressed.

One

Two types of such areas are distinguished under the act. type is the areas that have shown substantial and persistent unemployment over an extended period of time. These are largely urban areas. They are designated as 5(a) areas on exhibit I.