pening thereof, the terms and conditions of said paragraph "b" shall not become operative with respect thereto. 18. Disputes. Except as otherwise specifically provided in this contract, all questions of fact involved in disputes arising under the contract shall be decided by the Contracting officer, subject to written appeal by the Contractor within thirty (30) days, to the Administrator of General Services Administration or his duly authorized representative. In the meantime, the Contractor shall diligently proceed with performance. Nothing in this clause, however, shall be deemed to preclude the Contractor from any and all rights that it may have at law in the event that it cannot agree with the decision of the Administrator of General Services Administration or his duly authorized representative upon any question of law or fact. 19. Examination of records.-A. The Contractor agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment under this contract, have access to and the right to examine any directly pertinent books, documents, papers, and records of the Contractor involving transactions related to this contract. B. The Contractor further agrees to include the following provisions, with appropriate insertions, in all his subcontracts hereunder. "(Name of Subcontractor) agrees that the Comptroller General of the United States or any of his duly authorized representatives shall, until the expiration of three years after final payment under prime contract GSOOP-3906 (SCM) between the United States of America and the Granby Consolidated Mining, Smelting and Power Company, Limited, have access to and the right to examine any directly pertinent books, documents, papers and records of (Name of Subcontractor) involving transactions related to this contract." 20. Notices.-All notices and communications required in connection with the contract shall either be in writing or by telegraph, and if intended for the Government shall be sent to it at 7th and D Streets, SW., Washington, D. C., and if intended for the Contractor shall be sent to it at Vancouver, British Columbia, Canada, or to such other address as either party may hereafter specify to the other in writing. 21. Certification of invoices. Each invoice shall have printed, stamped or typed thereon the following certification, to be signed by the Contractor's duly authorized representative, with his title indicated: "I certify that the above bill is correct and just; that payment therefor has not been received." 22. Distribution of documents.-Documents shall be distributed in accordance with the attached form headed "Distribution of Documents" which is made a part hereof. DISTRIBUTION OF DOCUMENTS ON MATERIALS (Other than of Mexican and Canadian origin) The Contractor shall furnish documents in the quantities specified, and make distribution as follows: A. To be mailed to Examination Branch, Accounts and Reports Division, General Services Administration, Seventh and D Streets SW., Washington 25, D. C. 1. Original and two (2) copies of properly certified invoice. 2. Two (2) certified copies of weight certificates when required by this contract. In the event weighing is done by another contractor at the expense of the U. S. Government, furnish two (2) additional certified copies. 3. Other documents as required by this contract or otherwise requested by specific shipping instructions. B. To be mailed to Director, Storage and Transportation Division, Emergency Procurement Service, General Services Administration, 7th and D Streets SW., Washington 25, D. C. 1. Application for shipping instructions on forms to be supplied by the Government. 2. One (1) certified copy of weight certificates. 3. When delivery terms are F. O. B. Vessel, or F. A. S. a foreign port; C. I. F., F. O. B. dock or cars, a United States Port, two (2) Ocean Bills 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? Senator MALONE. In Canada; yes. Mr. WALSH. Yes. COPPER CONTRACTS WITH FOREIGN NATIONS OTHER THAN CANADA— ECA-MSA COUNTERPART FUNDS Senator MALONE. Now let us move to other foreign countries. Just start in and give us the copper first. Does this pattern continue? Are there certain contracts for the stockpile and certain contracts for delivery to private sources? Mr. WALSH. Speaking on the stockpile, sir, there are no contracts for copper with any foreign companies other than the Canadian companies. All the others are with domestic companies. Senator MALONE. Do you have the contracts that are made for delivery to the users, or domestic companies? Mr. WALSH. No, sir. This is purely stockpile. Senator MALONE. You have no hand in such contracts? Mr. WALSH. No, sir. I will have now. I did not have prior to the latter part of August. Senator MALONE. What about you, Mr. Ford? Mr. FORD. We have a group of domestic copper contracts. Senator MALONE. Do you have any other foreign copper contracts? Mr. FORD. The only foreign copper contracts that we have any knowledge of are some that, as Mr. Fredell explained, were made under the auspices of the Mutual Security Administration and with its funds. That is correct. Mr. FREDELL. We have one that is a copper power contract. Mr. FREDELL. Rhodesia-Congo Border Power Corp. Senator MALONE. Can someone describe that contract? Mr. FREDELL. That is a contract to build a powerplant to furnish additional power to the four big copper producing companies in that Rhodesia-Congo copper belt. There was an Export-Import Bank loan of $12 million. Senator MALONE. We have a list here of $22,400,000. Mr. ADLERMAN. Northern Rhodesia Power Corp. of Northern Rhodesia. 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 loan is $22,400,000, to the Northern Rhodesia Power Corp. in Northern Rhodesia. It gives no other address. It is for copper. The date 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 is shown on this tabulation as 12. Senator MALONE. Then it develops that the money advanced or loaned to the Northern Rhodesia Power Corp. of Northern Rhodesia is $22,400,000. Mr. FREDELL. That is right. Senator MALONE. That already has been loaned and transferred to 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. Mr. FREDELL. Not in Europe. 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 |