Mr. SAYLOR. Doctor, is it a fair assumption for me to make on your statements that, in view of the information which you have, you are deliberately holding up any firm contracts regarding the production of manganese in this country? Dr. MORGAN. No, sir; I don't believe so. Let me see if manganese is on the list of contracts before us. At the present time before the Defense Production Administration there is only one contract dealing with manganese which has been sent to us by Defense Minerals Administration, and this one is simply a transfer of an already existing contract, whereby the manganese is not to continue to go to the national stockpile but instead be made available for the use of industry. Production is not being delayed by the fact that we have not transferred that contract from the stockpile and the reason we haven't done it yet is that we are awaiting the supplemental appropriation to make more funds available. Since the operation is already covered by stockpile funds, there doesn't appear to be any delay, so we are not holding up any contract on manganese in the DPA. DPA URGED TO SPEED UP MINERALS PROGRAM Mr. REGAN. It is now 4. We had hopes of hearing Mr. Woodside and Mr. Wilde, but time has run against us. We would like very much if Mr. Woodside, Mr. Wilde, and General Farrell would furnish any additional statements they would like for the benefit of the committee at their first convenience, that we could digest between this time and the time at which we may reconvene. At that time we may wish to have you back, Dr. Morgan. We recognize that this is a complex problem. You are buying chrome at $35 and you hesitate in the interest of the taxpayers to put a program on to buy at three times that price, but this Congress is very much interested and concerned. Today, and for the last 4 days, we have been debating the Selective Service Act, in the House, preparing our men for war, which we feel is a No. 1 step, without the necessary metals and minerals. All of this time of debate is going to be of little force and effect so we are very much concerned in expediting these minerals and metals at the earliest possible time and eliminating all possible bottlenecks. If you have any additional statement you would like to make, when we reconvene, if you could at that time say we have got our telephones n, and air conditioning and venetian blinds and stenographers, and all the help; we are ready to go and can get this thing moving in not 3 weeks or 6 days, but we can clear it pronto, I think this committee would be very much in favor of hearing that. One thing I would like to ask further, bearing in mind that these ninerals would cost us some money, but if we don't have them it may ost a lot of lives, and we do have a stockpile, and minerals do not, as potatoes, deteriorate on hand. On this manganese-about which Mr. Saylor is very much conerned, naturally, because he is in the steel-processing area of the counry-I asked in El Paso about 10 days ago and a man from Mexico old me he had some 30,000 tons of manganese available but couldn't get any clearance to get it into the United States. If you could give me any information as to that supply and to how e could get-and he tells me it is not low grade but is above the 44 re quirement-I would like to know how I can answer that man as to how he could get a strategic mineral in the United States in which we are in short sĺpply, and what duty he would have to pay, if any, and what price he might expect, because he said he could give a continuous supply for a considerable quantity of manganese right at our back door instead of across the ocean, and if you will supply those. If Mr. Woodside would find it convenient to remain a moment, I would like to have just a little visit with him. Unless there is something further to come before the committee, I want to thank you, Dr. Morgan, and I think the B. S., and M. S., and Ph. D. have served well, and I believe you can serve our country well by working on this pro gram. Thank you for coming. Mr. ENGLE. May I express that all of those witnesses who have been asked to prepare and file statements in the letter sent to the various agencies by Mr. Murdock, submit their statements in order that we may be going over them between now and the next time that this subcommittee will meet on this same sub matter. Mr. REGAN. The record will show, will reflect, that they are requested to get those statements in at the earliest possible moment. STATEMENT OF BYRON D. WOODSIDE, DIRECTOR, DEFENSE EXPANSION DIVISION, DEFENSE PRODUCTION ADMINISTRATION Mr. Chairman and members of the committee, my name is Byron D. Woodside and I am Director of the Defense Expansion Division. Before assuming these duties, I was with the Securities and Exchange Commission for about 16 years, most recently as Assistant Director of the Division of Corporation Finance. FUNCTIONS, ACTIVITIES, ACCOMPLISHMENTS, AND OBJECTIVES OF DEFENSE EXPANSION DIVISION The functions and activities of the Defense Expansion Division (formerly Business Expansion Office) are principally to review applications and to report thereon to the Deputy Administrator for Resources Expansion, pursuant to Administrative Order No. 3 of the Defense Production Administration (schedule I attached). The applications are filed under sections 302 and 303 of the Defense Production Act for Government loans and guaranties, for purchases of materials for Government use or for resale, for encouragement of exploration, development, and mining of strategic and critical minerals and metals, and for installation of equipment in Government-owned or privately owned plants; also for tax amortization under section 124A of the Internal Revenue Code. In addition, the Defense Expansion Division reviews for the Deputy Administrator and reports to him on problems involving coordination of guarantied loan ac tivities under section 301 of the Defense Production Act. The accomplishments, resulting from these functions and activities appest in the attached schedules, as follows: (1) Schedule II-Loans under section 302, (2) Schedule III-Procurement and other activities under section 303, (3) Schedule IV-Tax amortization necessity certificates, and (4) Schedule VGuarantied loans under section 301. Objectives are the same as those of the Office of Resources Expansion which appear in section 3 of the attached schedule I (administrative order). MAJOR MINING POLICIES AND PROCEDURES The major mining policies and procedures reviewed, reported on, and approved by DPA are the $10 million exploration program, and domestic tungsten ad tin-mining programs. These are set forth in greater detail in the attached schedule VI. HANDLING OF APPLICATIONS Information as to routing and determination made with respect to each type of application or proposal submitted by the Defense Minerals Administration and by other agencies is attached as follows: (1) Schedule VII-Procedures and criteria in section 302 cases, (2) Schedule VIII-Procedures and criteria in section 303 cases, (3) Schedule IX-Procedures and criteria in tax amortization cases, and (4) Schedule X-Procedures and criteria in guaranteed loan cases. Determinations are made, and rules and policies are applied with respect to minerals and metals, pursuant to the above procedures and criteria. DPA ADMINISTRATIVE ORDER NO. 3 SCHEDULE I DEFENSE PRODUCTION ADMINISTRATION DPA MANUAL-ADMINISTRATIVE ORDER NO. 3 Subject: Organization and functions of the Office of Resources Expansion .01 To establish the Office of Resources Expansion within the Defense Production Administration; to prescribe its organization and define its functions. Section 2. Organization .01 The activities of the Office of Resources Expansion are directed by a Deputy Administrator who reports and is responsible to the Administrator. The Office of Resources Expansion includes: (a) A Resources Expansion Committee, composed of representatives of Federal agencies concerned with provision of adequate defense resources. The committee, of which the Deputy Administrator is chairman, advises the Administrator regarding the resources expansion program. (b) A Division of Defense Expansion, under a Director, reporting to the Deputy Administrator. Section 3. Objectives The objectives of the Office of Resources Expansion are: .01 To insure the provisions of adequate physical resources for the defense production program. 02 To assist private enterprise in meeting defense production goals including provision for (1) the use of Government facilities, (2) Government loans and loan guaranties, (3) accelerated tax amortization of facilities, and (4) purchasing, or commitments to purchase, raw materials, minerals, and equipment. .03 To insure early completion of authorized expansion projects. Section 4. Functions Subject to the approval of the Administrator, the Deputy Administrator for Resources Expansion performs the following functions: .01 Directs and coordinates the program for the expansion of defense production resources and capacity. This includes assistance to the program for domestic and foreign supplies and requirements as developed by the Office of Program and Requirements; the facilities program carried on in the Departments of Defense, Commerce, and Interior, the Defense Transportation Administration, and the General Services Administration; and the related utilization of industrial reserve plants and equipment. .02 Establishes basic policies and procedures for the approval of accelerated tax amortization of defense production facilities and issues the necessary certificates. 03 Establishes criteria governing the recommendation of constituent agencies on loans to private business for the expansion of productive capacity (except food); and loans for the development of technological processes on the production of essential materials, to the extent that financial assistance is not otherwise available on reasonable terms. .04 Approves or disapproves the installation of additional equipment, facilities, processes, or improvements in plants, factories, or other industrial facilities owned by the Government and the installation of Government-owned equipment in privately owned plants, factories, or other industrial facilities. 05 Acts as certifying authority for projects designed to encourage the exploration, development, or mining of critical minerals or metals. |