of Lading, or in lieu thereof, two copies of carrier's certificate; and, two (2) copies of Consular's or Commercial Invoice. 4. Other documents as requested by specific shipping instructions. C. When Custom Entry is made through the Port of New York, mail or deliver to General Services Administration, Federal Supply Service, Storage and Transportation Branch, 250 Hudson Street, New York 13, New York, for each shipment. 1. One (1) original Ocean Bill of Lading or in lieu thereof a carrier's certificate. 2. Two (2) copies Consular or Commercial Invoice. 3. Three (3) copies of certified weight certificates when required by the contract. Note: Compliance with section C reduces the requirements of section B-1 and B-2 from two (2) copies to one (1) copy of the documents. D. To be mailed to the storage depot indicated in the shipping instructions issued by the Storage and Transportation Division. 1. When certified weight certificates are required by the terms of the contract, such certificates must be obtained as quickly as possible and one (1) copy mailed in sufficient time to be received at the storage depot before the arrival of the shipment. E. To be mailed to Chief, Inspection, Standards Branch, Emergency Procurement Service, General Services Administration, 7th and D Streets SW., Washington 25, D. C. Four (4) copies of test and/or analysis certificates. Senator MALONE. What price? Mr. WALSH. That is the average price at Port Colborne as published. Senator MALONE. Average over what period? Mr. WALSH. For every month, the monthly average. Senator MALONE. You did not advance any money to the International Nickel Co. ? Mr. WALSH. No. Senator MALONE. On that one contract, is it the same amount each year or is there a different amount each year to be delivered? Mr. WALSH. It is on an average yearly production. Right now they are delivering at the rate of 250 tons per month. Senator MALONE. Go ahead. Mr. WALSH. The other contract is with Sherritt Gordon Mines, Ltd., also of Canada. That is a new production of nickel, on which I think they are building a smelter as well, are they not? Mr. GUMBEL. Yes. Mr. WALSH. Which will give another smelter to the Western Hemisphere. There they are required to deliver 25,000 tons for the period beginning January 1, 1954, completed December 31, 1958. Senator MALONE. What price? Mr. WALSH. Again, that is the average market price, monthly market price. Senator MALONE. Did you advance any money? Mr. WALSH. No, sir, no money has been advanced. Senator MALONE. You pay for the nickel as it is received? Mr. WALSH. Yes, sir. Senator MALONE. Is that a new company? Mr. WALSH. Yes, sir, that is a new company. Senator MALONE. That completes the nickel contracts? Mr. WALSH. That completes the nickel contracts for the stockpile, yes, sir. Senator MALONE. We already completed the nickel and copper contracts otherwise informed? Mr. WALSH. In Canada? Lator MALONE. In Canada; yes. r. WALSH. Yes. OPPER CONTRACTS WITH FOREIGN NATIONS OTHER THAN CANADA- 1. Ator MALONE. Now let us move to other foreign countries. -tart in and give us the copper first. Does this pattern cone! Are there certain contracts for the stockpile and certain rets for delivery to private sources? r. WALSH. Speaking on the stockpile, sir, there are no contracts opper with any foreign companies other than the Canadian comAll the others are with domestic companies. rator MALONE. Do you have the contracts that are made for very to the users, or domestic companies? Ir. WALSH, No, sir. This is purely stockpile. ator MALONE. You have no hand in such contracts? Ir. WAISH. No, sir. I will have now. I did not have prior to the et part of August. rator MALONE. What about you, Mr. Ford? Ir. FORD. We have a group of domestic copper contracts. tator MALONE. Do you have any other foreign copper contracts? Ir. FORD. The only foreign copper contracts that we have any wledge of are some that, as Mr. Fredell explained, were made er the auspices of the Mutual Security Administration and with funds. That is correct. Ir. FREDELL. We have one that is a copper power contract. Ir. FRYDEL Rhodesia Congo Border Power Corp. Senator MALONE. Can someone describe that contract? fr. FREDELL. That is a contract to build a powerplant to furnish tional power to the four big copper producing companies in that desia Congo copper belt. There was an Export-Import Bank m of $12 million. Senator MALONE. We have a list here of $22,400,000. fr. ADLERMAN. Northern Rhodesia Power Corp. of Northern odesia. Senator MALONE. Do you know anything about that? Mr. FREDELL. I think that is the total value of the project. Senator MALONE. It is listed under a loan. The amount of the n is $22,400,000, to the Northern Rhodesia Power Corp. in NorthRhodesia. It gives no other address. It is for copper. The approved is June 17, 1953. Is this amount in addition to your $12,000,000? Mr. FREDELL. It is twenty-two million four. That is correct. It -hown on this tabulation as 12. Senator MALONE. Then it develops that the money advanced or ned to the Northern Rhodesia Power Corp. of Northern Rhodesia ~22,400,000. Mr. FREDELL. That is right. Senator MALONE. That already has been loaned and transferred this company! Mr. FREDELL. An Export-Import Bank loan. Senator MALONE. It is an Export-Import Bank loan? Senator MALONE. What interest does that loan draw? Senator MALONE. What are they supposed to do? Mr. FREDELL. They are supposed to build a powerplant to provide additional power for the four big copper companies. Senator MALONE. What are the four big copper companies? Mr. FREDELL. N'Changa, Mufilira, Roan Antelope, and Rhokana. Senator MALONE. Who are these companies? Are they subsidiaries of some other company or are they independent companies? Explain for the record about these companies. Give us what you know about them. Mr. FREDELL. They are largely British capital, I believe. Senator MALONE. What do you mean "largely"? I would say it was largely American capital from the looks of it. Mr. FREDELL. This particular loan is. Senator MALONE. How much money is going to be put in this power company? Mr. FREDELL. I do not have that figure. Senator MALONE. They can build a fair-sized powerplant for $22,400,000. Mr. FREDELL. It is to cover that whole Rhodesia-Congo Copper Belt. Senator MALONE. What is it? Mr. FREDELL. The project? Senator MALONE. Yes. Mr. FREDELL. It is a water power dam. Senator MALONE. To build a dam and install a power project? Mr. FREDELL. That is right. Senator MALONE. For how many horsepower or kilowatts? Mr. FREDELL. I do not know that offhand. Senator MALONE. Does your organization which loans money know? Mr. FREDELL. Our contract information shows that. Senator MALONE. Where is the contract? Mr. FREDELL. In our office here. We have a copy of it here. Senator MALONE. Can you give it to us approximately, and then substitute? Mr. FREDELL. I prefer not to give any production figure. Senator MALONE. Do you know what we are supposed to get for this loan? Mr. FREDELL. Yes. We are supposed to get such copper to repay this loan, plus interest. Senator MALONE. Such copper to repay the loan. At what price? Mr. FREDELL. The contract as originally negotiated was the same price as paid by the British Government. Senator MALONE. Where. Mr. FREDELL. In England. Senator MALONE. About what price do you suppose we would be paying for the copper? Mr. FREDELL. Approximately the same price as the United States market price, with allowance for freight. Senator MALONE. In other words, you assume that they would take whatever the market would bear, and that would be the market here for the copper? Mr. FREDELL. That is the way the prices would run. At the time this contract was made, the British Government had controls on copper prices―― Senator MALONE. The British Government controlled the copper prices where? Mr. FREDELL. Within the United Kingdom there was a fixed price. When copper was decontrolled, it went on the world market price. Negotiations are now under way to amend this contract to set the price up at the E. and M. J. market quotation. That is, the Engineering and Mining Journal. Senator MALONE. What does the Engineering and Mining Journal do except publish the price? Mr. FREDELL. They publish the quotation, publish it in the Engineering and Mining Journal. Senator MALONE. Where do they get the quotation? Mr. FREDELL. A compilation of the current market price. Senator MALONE. In America? Mr. FREDELL. In America; yes, sir. Senator MALONE. We pay whatever our market price is at the moment of delivery for this copper? Mr. FREDELL. That would be the main basis of payment. Senator MALONE. What do you mean by the "main basis of payment"? Mr. FREDELL. The basis of payment. Senator MALONE. It would be the basis of payment? Mr. FREDELL. Yes. Senator MALONE. Did we put up any money for any other operation over there? Mr. FREDELL. On copper? Senator MALONE. On this operation. If I understand you, we are to get copper from these companies to be delivered by the companies that you named. Now do we under any other conditions put up money for the same general operation say through MSA or the point 4 program? Mr. FREDELL. A contract has been made using counterpart funds. Senator MALONE. What is a counterpart fund? Mr. FREDELL. Part of this money was under the Marshall plan. Senator MALONE. We are through with the Marshall plan now and have moved on to ECA, and now to MSA. What is the plan and what are we doing? Mr. FREDELL. Of the money that was granted to these foreign countries, 5 percent was set up to be used for administrative purposes in administering the aid plan, and in order to get some part of it back for the acquisition of strategic materials for the stockpile. Senator MALONE. Five percent of the mutual security funds. That is about six and a half billion dollars this year, is it not? Mr. WALSH. I believe it was 5 percent of the counterpart funds. Senator MALONE. What is the counterpart fund, for the record? 39888-54-pt. 2-20 Mr. WALSH. I will try my best. I am not sure I will be correct on the thing. Senator MALONE. Somebody ought to know. Mr. WALSH. The requirement was that when funds were made available through this act Senator MALONE. Through the Mutual Security Act? Mr. WALSH. Mutual Security and ECA Act. The participating countries had to collect for that material internally and had to deposit the money so collected for the purpose of improving conditions within the country. That was considered as counterpart. Senator MALONE. This 5 percent of the mutual security funds? Mr. WALSH. No, sir. They had to collect 100 percent, but 5 percent of that amount so collected Senator MALONE. What do you mean, "they collected"? Whom did they collect from? Mr. WALSH. They collected from the people who got the merchandise. Mr. ADLERMAN. You took an illustration of our sending a truck over there. Mr. WALSH. If a truck went over there Senator MALONE. Worth $20,000. Mr. WALSH. Okay, sir; $20,000 for a truck. The money was put up by ECA-MSA, whichever organization was in operation. That truck was shipped to the country. That truck was sold in the country in the currency of that country. The currency of that country was then placed on deposit with that government. Senator MALONE. We are dealing, I think, with England. That is the belief of the gentleman who was testifying a minute ago. We will say it was sold for pounds at $2.80. Mr. WALSH. Yes. Senator MALONE. Let us just work out a problem here. You would arrive at something like 700 pounds, approximately, which you would get for the truck. Is that about right? Mr. GUMBEL. Seven thousand, if you were talking about $20,000. Senator MALONE. Yes; 7,000 pounds. What do you do with that 7,000 pounds? Mr. WALSH. That 7,000 pounds then would be deposited Senator MALONE. Where? Mr. WALSH. In the treasury of the United Kingdom. Senator MALONE. Go ahead. Mr. WALSH. The utilization of that 7,000 pounds or the expenditure of it was a joint action between the United States Government representatives and the British Government. Senator MALONE. The entire 7,000 pounds? Mr. WALSH. Except 5 percent. The 5 percent of that 7,000 pounds was to be earmarked for administrative expenses or for use in acquiring materials in which this country might be deficient, not necessarily stockpile. It read that any material which the United States is deficient in. Senator MALONE. The remainder of it, England keeps? Mr. WALSH. Yes, sir. Senator MALONE. Ninety-five percent to England. She is not accountable to anybody for that? |