Mr. MACK. I heard some of it, sir. Mr. BURTON. You probably heard them voice their great concern for not upsetting our delicate balance with friendly countries. Mr. MACK. I have heard them state that many times, sir. Mr. BURTON. I think the record is indebted to you and the acting chairman of the subcommittee for pointing out that they had to go back to some archaic treaty date, mentioned by the chairman to justify their actions. Mr. WHITE. 1881, Serbia. Mr. MACK. And Serbia, of course, doesn't even exist today. Mr. BURTON. If there is any justification for perpetuating this import influx that we have from countries like Canada and Mexico, I suggest to you that there certainly is no justification for putting up with imports from a bunch of Titoists. Mr. MACK. We certainly share that view. We cannot understand why our Government would want to hold out to the free countries of the world a position, in effect, which says "Look, you go to Khrushchev, get all you can, and then you come back to us and we will give you the same most-favored-nation treatment as we do the free countries of the world." About this 1882 treaty with Serbia, that is no basis whatsoever for not invoking section 231 of the Trade Expansion Act. First, it does not apply to Poland at all, and if it applies to Yugoslavia at all, and it is very debatable if it does, the most it could do would be to require a 1-year notice. If the President contends that a 1-year notice is required, if he had given that notice back in October when he signed the bill and made it a law, we would be well on the way to having the year run by now. Back in 1951, in section 5 of the Trade Act, then the same language was used as is used in section 231 of the present Trade Expansion Act. It said, "As soon as practicable, the President shall," and then it concluded by saying, “Any country or government which is a part of the world Communist movement." As you know, the State Department has said Yugoslavia and Poland are independent Communist countries and not part of the world Communist movement. But the words "As soon as practicable" were also used in 1951. At that time, President Truman was able to complete all the necessary procedures and withdraw most-favored-nation treatment from 13 Communist countries in less than 2 months. Now, under the new act, the only difference in the language is a substitution of the words "dominated or controlled by communism" for the words "world Communist movement." Other than that it is the same. There are only two countries involved, and yet the President has not taken action. He has had since October, and furthermore, he does not even seem to have started. Mr. BURTON. I would like to say that I agree with everything you have said, Mr. Mack, and I thank the gentleman from California for yielding. Mr. WHITE. Does the gentleman from California have any further questions? Mr. MARTIN. I have no further questions, Mr. Chairman. Mr. WHITE. Thank you very much, Mr. Mack, for your testimony. I believe the record should be kept open. I ask unanimous consent that the record be kept open until June 24 for the receipt of statements for inclusion in the record, subject to concurrence by the chairman of the subcommittee and the ranking minority member in compliance with the committee's rules. Is there objection? Hearing no objection it is so ordered. (The statements are as follows:) STATEMENT SUBMITTED BY GROUP OF MANUFACTURERS OF LEAD PRODUCTS In connection with the hearings conducted by your subcommittee on June 13 and 14, as part of the committee's responsibility for legislative oversight of mining interests generally, the following producers of approximately 80 percent of all the lead products manufactured in the United States would like the record to reflect their support of H.R. 6269, 6371, and other identical bills. Without going into detail, manufactured lead products include lead pipe, sheet, shot, traps, and bends, and other fabricated products made by casting, rolling, or extruding. The aforementioned lead products are 100 percent or almost 100 percent lead. Manufactured lead products also include the lead chemical products such as a litharge, read lead, white lead, and silicates. These lead chemical products contain approximately 90 percent primary lead and are generally manufactured by the simple process of furnacing lead metal. The manufacturers of lead products have been conversant with the problems of the domestic lead mining industry. As you undoubtedly know, this group supporting the domestic lead industry appeared before the Tariff Commission or several occasions. In each of our appearances before the Tariff Commission our group tried to illustrate to the Commission that restrictive measures for lead in the hope of stimulating domestic production can be thwarted or entirely nullified by increased imports of manufactured articles containing large amounts of lead. Recently the Mexicans have increased their exportations into the United States of litharge, a chemical lead product which can only be produced from virgin metal, to the extent that the exportations are circumventing and nullifying the lead quotas which were established by the U.S. Government and have been in effect since 1958. The producers of lead-manufactured products are pleased to see that in H.R. 6269, 6371, and other identical bills, there are provisions made for a quota for each manufactured lead article based on the average yearly amount of such article imported into the United States during the calender years 1953 through 1957. Submitted June 19, 1963. Alpha Metals, Inc.; Bunker Hill Co.; the Eagle-Picher Co.; Evans STATEMENT OF MR. TOM KISER, PRESIDENT, TRI-STATE LEAD & ZINC ORE PRODUCERS ASSOCIATION Mr. Chairman and subcommittee members, I am indeed very sorry that I was not present for your hearings concerning the conditions of the domestic lead and zinc industries today which were held by your subcommittee June 13 and 14. However, my absence was unavoidable, as my notice of the hearings was mailed to the wrong address. It is my understanding that your committee conducted these hearings to get an overall picture of the industry, and that your conclusions would be used in supporting H.R. 6269, H.R. 6371, and companion bills before the House Ways and Means Committee. We of the Tri-State Zinc-Lead Ore Producers Association realize that the witnesses, statements, and facts are repetition of the many hearings you have so courageously heard in the past and want to go on record by supporting your committee in every way possible to obtain this legislation. The Stabilization Act of October 3, 1961, has been of great help to our small miners in the Tri-State district; it has also provided work for the larger companies who process our ores and service the small mines. There were at last count 23 participants operating in our district, sharing in the overall pumping cost and providing crude ore for the larger companies' treatment plants. This additional tonnage of crude ore from the small producers makes it possible for one of the larger producers (who does not participate in the small producers bill) to operate three of their better mines. Even though the small producers bill has been of great help to our small producers and some indirect assistance to our larger companies of the Tri-State, we fully realize and acknowledge that it is not the complete solution to the problems of the domestic lead-zinc industry. We are also aware that the small producers bill was designed as a stopgap program that will phase out soon, and that our industry will phase out, or die, with the small producers bill. With these very plain and real facts facing us today, let me say again, Mr. Chairman and members of the subcommittee, we of the Tri-State Zinc-Lead Ore Producers Association want to join you in your efforts and support you in every way possible on this legislation. I also ask unanimous consent that the summary of the lead-zinc legislative and Government experience since 1955 that was submitted by Mr. Wilson be included in the record after his statement yesterday. Is there objection? Hearing no objection, it is so ordered. (The material referred to is on p. 25.) The Subcommittee on Mines and Mining stands adjourned subject to the call of the Chair. (Whereupon at 3:40 p.m., the subcommittee recessed, subject to call of the Chair.) LEAD-ZINC MONDAY, JULY 8, 1963 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON MINES AND MINING OF THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS. Washington, D.C. The subcommittee met, pursuant to notice, in executive session at 10:30 a.m. in room 1324, Longworth House Office Building, Hon. Ed Edmondson (subcommittee chairman) presiding. Mr. EDMONDSON. The subcommittee will come to order in executive session and I assume the gentlemen with you, Mr. McDermott, are from your office? Mr. MCDERMOTT. Yes, Mr. Chairman. I have with me Mr. Belsley and Mr. Lawrence and Mr. Durkin, all members of my staff. Mr. EDMONDSON. And the gentleman with you, Mr. O'Leary? Mr. O'LEARY. I have with me Mr. Don Moulds, of the Office of Minerals and Solid Fuels. Mr. EDMONDSON. This is secret material being discussed and I assume everyone is cleared for secret material? 1 Mr. MCDERMOTT. That is correct as to members of my staff. Mr. EDMONDSON. Our first witness is the very able Director of the Office of Emergency Planning, Mr. Edward McDermott. Mr. McDermott, we are very pleased to have you before the committee and appreciate very much your response to our inquiries in this matter. There has been, as you know, considerable speculative material in the trade and in the press, particularly about new stockpile levels being established and about possible detrimental effects of this upon the market. We are very keenly interested in hearing from you both upon the subject of your new stockpile levels and your plans for going forward with finalizing those estimates and also your plans for publicity on the subject. STATEMENT OF EDWARD A. MCDERMOTT, DIRECTOR, OFFICE OF EMERGENCY PLANNING; ACCOMPANIED BY G. LYLE BELSLEY, DIRECTOR OF ECONOMIC AFFAIRS, W. N. LAWRENCE, AND JAMES DURKIN Mr. MCDERMOTT. I am pleased to be here, Mr. Chairman, and with your permission and the permission of members of the committee I have a rather brief prepared statement that I would like The transcript has been edited by the Office of Emergency Planning and the Department of the Interior and all classified material withheld from publication. to read that summarizes some of the points to which you have addressed yourself and in which this committee is interested, and following that I shall endeavor to supply any additional material the committee may desire. I am pleased to accept your invitation to appear at this executive session of the committee and to describe briefly the administration's plans with regard to the current surpluses of Government-owned lead and zinc. It might be reassuring at this time to reiterate a part of the letter which I addressed to Congressman Aspinall on June 28, 1963, viz: at the present time the Office of Emergency Planning does not have any program for the disposal of surplus lead and zinc in regular commercial markets. We are, however, considering a proposal for the direct Government use of limited quantities of these materials. I will refer to this in more detail at a later point. I would now like to review briefly some of the executive branch considerations and decisions recently made in the area of the lead and zinc stockpile. The Executive Stockpile Committee, which the President appointed in 1962 * to make a detailed review of our stockpiling policies, programs, and goals, in the light of changed defense strategy and improved technology submitted a report to the President on January 16, 1963, on the subject of "Disposing of Excess Stockpile Materials." The President approved all of the recommendations in the report, one of which was that since present stockpile objectives were obsolete and based on estimates and military assumptions which were several years old, they should be reviewed and updated to reflect current military, industrial, and other essential requirements. The committee also noted that only stopgap measures had been adopted with regard to meeting the essential requirements of a nuclear war including rehabilitation. The committee recommended that measures be taken to provide data on which to base judgments as to the amounts of strategic and critical materials that would be needed folowing a nuclear attack on the United States. As a result of the President's approval of the recommendations of the Executive Stockpile Committee, the Office of Emergency Planning undertook the updating of all stockpile objectives to meet conventional war requirements. It also put special emphasis on a program to develop nuclear war requirements that would have to be met through stockpiling. At the present time supply-requirements studies are underway or scheduled with regard to all stockpile materials for the purpose of updating present objectives to meet conventional war requirements. As of this time new objectives have been established for aluminum, copper, lead, and zinc. These objectives were calculated on the basis of the joint efforts and with the advice and assistance of the Departments of State, Commerce, Defense, Agriculture, Labor, and the Interior, and the Agency for International Development, the Bureau of the Budget, and the General Services Administration. In making our revised calculations we determined that there should be only one stockpile objective for each material instead of two as in the past. Heretofore, there was a "basic objective" and a "maximum objective" for each material. The basic objective assumed some con |