hundred to one hundred fifty thousand tons per year would be required immediately. We are only started on that program. Du Pont and the Titanium Corp. have been in the business for about 3 years but have not whipped it yet. The Crane Co. in Chicago has been awarded a contract. They are looking around for a place to operate because of a power shortage. The power shortage is acute where the Titanium Corp. is located.

With respect to manganese and rutile and other things, it is a little silly to become dependent on foreign nations. Therefore, this committee is going to try in each case to determine how self-sufficient we can become under a proper set of principles adopted by the Congress of the United States. With the proper treatment the resources of other Western Hemisphere nations can be counted on in reaching this goal. Most of the people I have discussed this matter with are of the opinion that we will not have any trouble defending the Western Hemisphere.

Naturally, we will have some ship losses in the Carribean area, but either land, or coastal transportation, can be utilized which is more easily defended than long lines of communications from the Eastern Hemisphere.

Mr. FLEMMING. I would certainly be very much interested in the information you develop.

Senator MALONE. I know you will. If you get any information, we will be interested in it.

Mr. FLEMMING. I would be very happy to supply it.

Senator MALONE. They tell me that the mineral, some rutile, but mostly ilminite, rank about fourth or fifth in the supply of metallic minerals in the earth's surface.

There is no question about it, there is plenty of raw material. The problem is licking the technical difficulties. Titanium metal is twice as strong as aluminum and stands more heat and has other qualities that are confidential. These special qualities make it imperative that military planes be built out of it.

There are planes on the drawing board now that are to be made of half titanium, but they do not dare take them off. Bombers which are also on the board, can make a drop at any place in the world and get back, require this material. It might make a considerable difference in our national defense setup.

URANIUM

Now, you get into the field of nuclear energy. There again pretty near all engineers are obsolete or will be in about 10 years. We now get a lot of this raw material from the Belgian Congo and way points. In 1944 an industrial report of the 11 Western States was published. I was a director of it. It weighs about the same as Webster's Dictionary and still is the reference work for the area. In that report we pointed out the availability of the raw materials for this nuclear energy in Colorado and other States.

This committee early this year had referred to it a bill to iron out certain relations between oil and gas leases. So we, after careful study, reported a bill out and they say it is working pretty good out there. It is the intention of this committee to hold a hearing, in

Salt Lake or Denver, but I am about persuaded to go to Grand Junction where the mining is taking place.

Many people believe, and I think it is beyond a prospector's dreams, that we may be self-sufficient in the production of the raw materials for nuclear energy for the bombs and commercial use. It is certainly true, in the Western Hemisphere; and it may be found to be so in the United States.

It looks like we are undertaking quite a job when you go into 77 minerals like this, but that democratic horse in Pennsylvania spoiled my vacation anyway, so I intend to stay with it until Congress convenes. We want to work with you.

Mr. FLEMMING. Thank you. We will certainly look forward to working with you.

Senator MALONE. I knew this would be interesting to you.
Mr. FLEMMING. It is, very much so.

Senator MALONE. The committee will be interested in any information you dig up on this thing and then your recommendations as to what Congress should do in adopting a principle for establishing an incentive to develop a new set of miners and watchmakers and people we have lost in the last 20 years.

Mr. FLEMMING. I think if the committee to which I refer is set up, it will be possible for the agencies to get together and to cooperate with you also.

Senator MALONE. Thank you very much, Mr. Flemming.

(Whereupon, at 4:30 p. m., the hearing in the foregoing matter was recessed to reconvene on October 16, 1953.)

STOCKPILE AND ACCESSIBILITY OF STRATEGIC AND CRITICAL MATERIALS TO THE UNITED STATES IN TIME OF WAR

FRIDAY, OCTOBER 16, 1953

UNITED STATES SENATE,

SUBCOMMITTEE ON MINERALS,

MATERIALS, AND FUELS ECONOMICS, OF THE

COMMITTEE ON INTERIOR AND INSULAR AFFAIRS,

Washington, D. C.

The subcommittee met, pursuant to recess, at 10:30 a. m., in the committee room, 224 Senate Office Building, Washington, D. C., Senator George W. Malone, Nevada, chairman of the subcommittee, presiding.

Present: Senator George W. Malone, Nevada (chairman of the subcommittee).

Also present: Jerome S. Adlerman, counsel to the subcommittee; Thomas F. Flynn, subcommittee assistant counsel; George B. Holderer, subcommittee staff engineer; and Richard G. Sinclair, subcommittee accountant.

Senator MALONE. The committee will be in order.

The meeting originally set for 9:30 was postponed until 10:30 because I had forgotten an appointment I had with Secretary of Commerce Weeks.

Mr. Walsh, we were discussing yesterday the matter of importing materials for use of the Government without the payment of duties, imposts, or excises, as the Constitution refers to them, commonly known as tariffs and import fees. Could you give us the story in regard to that matter at the beginning as to just what materials have been brought in without such payments, and the basic law upon which the Executive order was based, when the law was passed, and when the order was issued?

127

STATEMENTS OF A. J. WALSH, COMMISSIONER; IRVING GUMBEL, DIRECTOR, MATERIALS DIVISION; CHARLES W. GASQUE, JR., ASSISTANT GENERAL COUNSEL; ALBERT H. GREENE, ASSISTANT GENERAL COUNSEL; CLARENCE FREDELL, ACTING CHIEF, EXPANSION BRANCH; JOHN FORD, ACTING CHIEF, CONTRACT ADMINISTRATION BRANCH, MATERIALS DIVISION, EMERGENCY PROCUREMENT SERVICES, GENERAL SERVICES ADMINISTRATION; AND MAXWELL H. ELLIOTT, GENERAL COUNSEL; MAX K. MEDLEY, COMPTROLLER; R. J. LIPPOLT, DIRECTOR, DEFENSE ACCOUNTS DIVISION; VICTOR ERICKSON, FINANCIAL ANALYST, OFFICE OF THE COMPTROLLER; JOHNSTON RUSSELL, DEPUTY DIRECTOR, CREDIT AND FINANCE DIVISION, OFFICE OF THE COMPTROLLER; JOHN CROSTON, PROGRAM BRANCH, MATERIALS DIVISION, EMERGENCY PROCUREMENT SERVICE; H. G. HYMER, INSPECTOR, FEDERAL SUPPLY SERVICE, GSA; ROGER WAUGH, EXPANSION BRANCH, MATERIALS DIVISION, EMERGENCY PROCUREMENT SERVICES

Mr. WALSH. There was an Executive Order 9177, signed June 3, 1942. Section 3 pertained to the importation of materials duty free. Senator MALONE. What are these materials that you can bring in duty free under Executive Order No. 9177?

Mr. WALSH. I do not have a copy of the order with me.
unable to get that, so I cannot give you that information.
Senator MALONE. Please insert that in the record at this point.
Mr. WALSH. Yes, sir.

(The information is as follows:)

DUTY-FREE STOCKPILE PURCHASES

EXECUTIVE ORDER 9177

I was

DEFINING ADDITIONAL FUNCTIONS, DUTIES, AND POWERS OF THE SECRETARy of Wab, THE SECRETARY OF THE NAVY, THE SECRETARY OF THE TREASURY, THE SECRE TARY OF AGRICULTURE, AND THE RECONSTRUCTION FINANCE CORPORATION

By virtue of the authority vested in me by the Constitution and laws of the United States, and particularly by title I of the First War Powers Act, 1941, approved December 18, 1941 (Public Law 354, 77th Cong.), as President of the United States and Commander in Chief of the Army and Navy of the United States, it is hereby ordered as follows:

1. The Secretary of War, the Secretary of the Navy, the Secretary of the Treasury, the Secretary of Agriculture, and the Reconstruction Finance Corporation are each authorized to exercise the functions, powers, and duties heretofore vested in the Secretary of the Navy by that provision of an act approved June 30, 1914 (38 Stat. 399; 34 U. S. C. 568) which reads as follows:

"Provided, That hereafter the Secretary of the Navy is hereby authorized to make emergency purchases of war material abroad: And provided further, That when such purchases are made abroad, this material shall be admitted free of duty."

2. The Commissioner of Customs, with the approval of the Secretary of the Treasury, shall issue regulations governing the entry and admission free of duty of articles as to which an officer or the agency designated in section 1 of this order shall make a certificate to him in the following form:

"The procurement of this material constituted an emergency purchase of war material abroad and it is accordingly requested that such material be admitted free of duty pursuant to the act of June 30, 1914 (34 U. S. C. 568) and Executive Order No. 9177."