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(The table referred to follows:)

Estimated use of "advance procurement provision (Bureau of the Budget estimates

based upon a preliminary check with major agencies)


Mr. MERRIAM. May I just say, Mr. Chairman, that is correct; that is the amount which will be obligated and expended in fiscal 1958.

Senator ELLENDER. Mr. Merriam, are there any items here affecting or related to foreign aid?

Mr. MERRIAM. No, sir.
Senator ELLENDER. It is all domestic
Mr. MERRIAM. That is correct; yes.
Chairman HAYDEN. Are there any further questions?

Senator POTTER. Mr. Chairman, I am sorry I had to step out during part of the testimony, but I would like to make this comment:


In Mr. Merriam's statement, he makes reference to the purchase of automobiles and trucks. How many automobiles and trucks would be purchased, and how much would be involved?

Senator ROBERTSON. He just said about $40 million.
Senator POTTER. Was it covered while I was out?
Mr. MERRIAM. Yes, sir.

It would be about $43 million worth. Just to give you an example as to how it would operate, you may have noted it in the press this morning, or received a copy of the Post Office Department release, indicating that they alone are prepared to order in fiscal 1958, if this suggestion is adopted, about $11 million for its own procurement program of automobiles and trucks.

Senator POTTER. Now, are they in a position to go ahead and make the contracts as soon as this legislation is passed?

Mr. Merriam. They have already announced they are going to solicit bids. Of course, their acceptance depends on the enactment of this legislation.

Senator POTTER. Yes. Well, I will not ask you anything further on that.

Chairman HAYDEN. Senator Thye.

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Senator Thys. That will just merely step up the program several months?

Mr. MERRIAM. That is correct.

Senator Thye. But in the total, the same money would be spent at a later time were it not stepped up?

Mr. MERRIAM. That is correct.

Senator BRIDGES. Mr. Chairman, this is wholly aside from this hearing, and I will ask the reporter that this not be on the record.

(Discussion off the record.)
Senator DWORSHAK. On the record.

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Mr. Merriam, in what manner will this accelerated purchase program affect the Atomic Energy Commission?

Mr. MERRIAM. Senator Dworshak, it will have a very small effect on the Atomic Energy Commission because their biggest single item in the procurement area is the uranium purchase, as you know.

Senator DWORSHAK. Will that be accelerated in any way?
Mr. MERRIAM. No, sir; it will not.

Senator DWORSHAK. There is a small obligation of money, though, for the use of the Atomic Energy Commission. How much is it?

Mr. MERRIAM. Well, we figured they would have obligations of around $20 million in fiscal 1958 as a result of this action.

Senator DWORSHAK. What would that be for? Mr. MERRIAM. Various types of miscellaneous items. Senator DWORSHAK. But in no way would it apply to the acquisition of uranium under existing contracts?

Mr. MERRIAM. No, sir; because it is so tied into their whole scheduling program.

Senator DWORSHAK. That would upset their normal program, so you are not including that?

Mr. MERRIAM. That is correct.
Chairman HAYDEN. Senator Young.

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Senator Young. I wanted to ask a question along that same line.
How much money is appropriated now for the purchase of uranium?
Mr. MERRIAM. You mean, for fiscal 1959?
Senator YOUNG. Yes.
Mr. MERRIAM. How much is in the recommendation?
Senator YOUNG. Yes.
Mr. MERRIAM. It is about $640 million requested in fiscal 1959.

Senator Young. How much of that is purchased within the United States, and how much is purchased in foreign countries?

Mr. MERRIAM. I do not have that figure. I can get that for you.
Senator YOUNG. May I have it for the record?
Senator Young. Are we not paying a higher price in foreign coun-
tries than we are here in the United States?

Mr. MERRIAM. I will have to get that for you.
Senator Young. Will you send me a copy of that?

Mr. MERRIAM. I certainly will.
(The following information was submitted:)

The 1959 budget for the Atomic Energy Commission includes $632 million for the procurement of uranium concentrates and $8 million for raw uranium ores. All raw uranium ores are procured from domestic sources. We are advised by the Atomic Energy Commission that the source of and average unit prices paid for uranium concentrates delivered to Commission facilities are as follows:

Percent of Average price total pro

per pound for curement uranium con(in tons) centrate

Foreign (Canada 42 percent, overseas 16 percent).


$9.25 10. 73

The prices shown above are affected by a number of factors, such as differences in grades of ore, transportation costs, and variations in foreign-exchange rates.

Chairman HAYDEN. Are there any further questions?

If not, we thank you, gentlemen. The Chair will entertain a motion to report the bill.

Senator ELLENDER. I so move.
Senator BRIDGES. I second it.

Chairman HAYDEN. It was moved and seconded that the bill be made a favorable report to the Senate.

All in favor, say aye.
Opposed, nay.
It is carried.

(Whereupon, at 3:40 p. m., Tuesday, April 1, 1958, the committee adjourned.)

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