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namely, unavailability of the Suez Canal and limited crude oil supply from Nigeria, the Emergency Petroleum Supply Committee recommends to the administrator that the committee and subcommittees remain in "standby” status, retaining headquarters in New York City, and that activities be confined to surveillances pending further developments.

2. Prior to termination of the plan of action and discharge of the committee and subcommittees, it would appear desirable and useful that a report to the administrator be prepared reviewing findings, analyzing methods used, data needs, and highlighting any outmoded contingency plans, if evident. Respectfully submitted.

JOHN RICCA, Chairman, Emergency Petroleum Supply Committee.

NON-U.S.-FLAG TANKER AVAILABILITY 4TH QUARTER 1967–1ST QUARTER 1968

(10,000 d.w.t. and over)

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Base tanker fleet 2.
Less:
Government owned not in

commercial trades.. Eastern bloc not in free world

trades..
Grain service.
Ore service.
Specialty services

Laid up and idle.
Plus:

New deliveries 3
Reduction overhaul time.
Loadline changes.
Net availability for

petroleum service
Average availability..
Adjustments:
U.S. flag in non-U.S.-flag

trades.
Non-U.S.-flag in coastal
trades

Net availability.

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1 T-2 definition: 16,600 d.w.t., speed 14.5 knots, port time 4 days, 345 operating days per year.
2 Includes Eastern bloc flag and allows for some obsolescence.
3 Includes Eastern bloc and ore/oil carriers.
4 4th quarter.
5 1st quarter.

DEPARTMENT OF THE INTERIOR,

OFFICE OF THE SECRETARY,

Washington, D.C., October 6, 1967. Mr. John RICCA, Chairman, Emergency Petroleum Supply Committee, U.S.

Department of the Interior, Washington, D.C. DEAR MR. RICCA: Thank you very much for your report of October 6, 1967, providing me with a detailed analysis and appraisal of the petroleum supply and transportation situation for the fourth quarter of 1967 and a general assessment of the first quarter of 1968.

The conclusions reached by the Emergency Petroleum Supply Committee appear to be sound, and I hereby accept its two recommendations: (1) that the Emergency Petroleum Supply Committee and its subcommittees remains in “standby" status, retaining headquarters in New York City, with activities confined to surveillance pending further developments; and (2) that prior to termination of the plan of action and discharge of the committee and subcommittees a report to the administrator be prepared reviewing findings, analyzing methods used, data needs, and highlighting any outmoded contingency plans, if evident.

I have taken careful note of the committee's findings that a relatively "tight” but manageable tanker position continues as the result of the unavailability of the Suez Canal and limited crude oil supply from Nigeria. I am mindful also of the fact that, as the committee report indicated, this situation could worsen appreciably with colder-than-normal weather during the peak demand winter season.

Moreover, we all must recognize that a peaceful solution is yet to be found for Middle East differences, and until we can see some signs of peace and stability, it behooves us to stay alert and prepared to deal with any new oil supply problems that may arise.

Accordingly, please take whatever steps may be necessary
to comply with the actions hereby authorized, keeping the
administrator and director of the voluntary agreement, and
interested governmental agencies, fully informed. I would
like to urge in particular that all committee members maintain
close contact with the chairman of the Emergency Petroleum
Supply Committee and report immediately any significant
developments in their respective spheres of overseas
operations.

Secretary Udall and I are highly gratified with committee,
subcommittee, and company performance during this
emergency. We are convinced that prompt, positive, and fully
disclosed joint Government industry action provided bene-
ficial effects both at home and abroad. Our compliments and
appreciation are extended to all.
Sincerely yours,

J. CORDELL MOORE,
Administrator, Voluntary Agreement Relating to For-

eign Petroleum Supply of May 1, 1963, as amended.

TOTAL GOVERNMENT INVENTORIES

Government stocks of strategic and critical materials are held in four inventories: The national stockpile, the Defense Production Act inventory, the supplemental stockpile, and the Commodity Credit Corporation inventory.

In addition to the Defense Production Act of 1950, as amended, purchases of materials have been authorized under the Strategic and Critical Materials Stock Piling Act of 1946 (Public Law 520, 79th Cong.); the Domestic Minerals Program Extension Act of 1953 (Public Law 206, 83d Cong.); the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480, 83d Cong); the Domestic Tungsten, Asbestos, Fluorspar, and Columbium-Tantalum Production and Purchase Act of 1956 (Public Law 733, 84th Cong.); and the Agricultural Act of 1956 (Public Law 540, 84th Cong.).

During the 12 months ended June 30, 1967, the net decrease at cost for strategic and critical materials in Government inventories totaled $584,174,400 and was made up of a decrease of $449,691,700 in the national stockpile, a decrease of $151,555,400 in the Defense Production Act inventory, a decrease of $10,781,600 in the Commodity Credit Corporation inventory, and an increase of $27,854,300 in the supplemental stockpile. The total acquisition cost of materials held in the four inventories on June 30, 1967, was $6,936,320,700.

The market value of all Government stocks of strategic and critical materials held on June 30, 1967, was $6,522,812,600, down $563,987,700 from a year earlier.

Materials on order on June 30, 1967, included $803,800 for the national stockpile and $25,592,800 for the Commodity Credit Corporation inventory. There were no materials on order for the Defense Production Act inventory and the supplemental stockpile.

The General Services Administration's summary of Government inventories for the last fiscal year follows:

SUMMARY OF GOVERNMENT INVENTORIES--DEFENSE MATERIALS, JUNE 30, 1967

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The General Services Administration reports that during the fiscal year 1967, sales from the Defense Production Act inventory amounted to $92,272,035. This compares with sales commitments of $198,498,578 during the previous fiscal year.

The principal objective of the Defense Production Act, as related to materials, has been to increase the supplies available. This has been accomplished by providing for incentive programs such as loans, guaranteed loans, and the authority to enter into purchase contracts. The expansion of supply served to increase the quantity of materials available for defense purposes, the stockpile, and the civilian economy. The DPA inventory is a byproduct of this endeavor. The broad purposes of the Defense Production Act of 1950 were set forth in the following declaration of policy:

Sec. 2. It is the policy of the United States to oppose acts of aggression and to promote peace by insuring respect for world law and the peaceful settlement of differences among nations. To that end this Government is pledged to support

collective action through the United Nations and through regional arrangements for mutual defense in conformity with the Charter of the United Nations. The United States is determined to develop and maintain whatever military and economic strength is found to be necessary to carry out this purpose. Under present circumstances, this task requires diversion of certain materials and facilities from civilian use to military and related purposes. It requires expansion of productive facilities beyond the levels needed to meet the civilian demand. In order that this diversion and expansion may proceed at once, and that the national economy may be maintained with the maximum effectiveness and the least hardship, normal civilian production and purchases must be curtailed and redirected.

It is the objective of this Act to provide the President with authority to accomplish these adjustments in the operation of the economy. It is the intention of the Congress that the President shall use the powers conferred by this Act to promote the national defense, by meeting, promptly and effectively, the requirements of military programs in support of our national security and foreign policy objectives, and by preventing undue strains and dislocations upon wages, prices, and production or distribution of materials for civilian use, within the framework, as far as practicable, of the American system of

competitive enterprise. From the inception of the Defense Production Act expansion programs through June 30, 1967, minerals and metals delivered to the DPA inventory amounted to $2,696,741,108.62. Materials having a cost value of $1,657,816,655.17 were sold from the inventory to the national stockpile or to private contractors. Receipts from the sale of these materials amounted to $1,500,183,668.41. Materials remaining in the DPA inventory on June 30, 1967, cost the Government $1,029,729,696.27 and had a market value of $612,824,000.

Disposal commitments for materials in the DPA inventory during the

year ended June 30, 1967, were as follows:

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A recapitulation of the DPA inventory from December 1950 through the end of fiscal year 1967, prepared by the General Services Administration, follows:

DEFENSE PRODUCTION ACT INVENTORY-SCHEDULE OF SALES AND COST OF METALS AND MINERALS SOLD AND OTHER DISPOSAL, DEC. 29, 1950, TO JUNE 30, 1967

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$234,912, 254.34

0
1,733, 118. 36
18, 167,964. 20

0

0
32,059, 829. 15
42, 106, 843. 72
40, 855, 960.19
1,167, 318.70

353, 646. 85
1, 394, 452.72

0
0

0
167, 866, 182.43

0
41, 305, 337.95

0

0
15, 419, 126. 81

0

0
168, 125, 516.72
264, 262, 144. 13

0

$401, 834, 853.08
5, 036, 339. 50

72, 385.54
7,085, 435. 32
1, 147, 735. 72

91,600.75
4, 136, 581.13
12, 188, 813. 29
22, 007, 305. 89
151, 666, 772. 54

8,830, 520.38
10, 278, 689. 32

28,637.24
13, 239, 811.13
110,860, 261. 85
31,721, 120.11
6, 826, 241, 11
3,988, 199. 44
38, 457, 047.90
178, 747, 481.24
220, 165, 718. 66

426, 312. 89
175, 024, 671.37

7, 181, 576. 17 67, 470, 664. 12 21,668, 892.72

$412, 619, 320.58
4,783, 156. 24

369, 424. 43
7, 136, 405. 66
2,018, 445.96

52, 361. 89
6,525, 311.32
14, 505, 567.04
37, 444, 759. 99
132, 583, 605.91
15, 000, 017. 49
13, 567, 642.92

177,545.00
15, 145, 972.00
122, 754,518.01
58, 387, 041.05

6, 802, 842. 87
11,945, 767. 69
39, 889, 847.74
146, 817, 753. 47
287, 867,851. 33

532,904.48
176, 592, 885.97

16,050, 557. 14
100, 527, 117.36

27, 718, 031.63
1,657, 816,655. 17

($10,784, 467.50)

253, 183. 26
(297, 038. 89)
(50,970. 34)
(870, 710.24)

39, 238. 86
(2,388, 730. 19)
(2,316, 753.75)
(15, 437, 454. 10)
19,083, 166. 63
(6, 169, 497. 11)
(3, 288, 953. 60)

(148, 907.76)
(1,906, 160. 87)
(11,894, 256. 16)
(26,665, 920.94)

23, 398. 24
(7,957,568.25)
(1,432, 799. 84)
31, 929, 727.77
(67, 702, 132. 67)

(106, 591.59)
(1,568, 214.60)
(8,868, 980.97)
(33, 056, 453. 24)

(6,049, 138.91)
(157, 632, 986.76)

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2,814, 275. 45

0
49, 129,000

0
19, 341,000

0

0
14, 290,000

0

0
50, 460,000
171,665, 000

0

2, 482, 837. 82

Total purchases

Inventory at cost

Aluminum (pig)
Aluminum (sheet).
Asbestos.
Bauxita
Beryl
Bismuth.
Chrome
Cobait.
Columbium tantalum.
Copper.
Cryolite
Fluorspar
Graphite
Lead.
Magnesium
Manganese.
Mercury
Mica
Molybdenum
Nickel--nicaro.
Nickel-other
Scrap (nonferrous).
Tin.
Titanium
Tungsten
Zinc.

$647, 549, 089.48

4,783, 156.24
2, 102, 542.79
25, 304, 369. 86
2,018, 445.96

52, 361. 89
38, 585, 140.47
56, 660, 357.92
79,687, 825. 47
136, 196, 001.51
15, 353, 664. 34
14, 962,095.64

177, 545.00
15, 145, 972.00
122, 754,518.01
226, 253, 223.48

6, 802, 842. 87
53, 251, 105. 64
39, 889, 847.74
146,817, 753.47
306, 101, 253. 59

532,904.48
176,592, 885.97
184, 176, 073. 86
367, 272, 099, 31
27,718, 031. 63

Total.

2,696, 741, 108.62

1,029, 729, 696.27

1,500, 183, 668. 41

9, 194,757. 18

612, 824,000

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