Mr. Chairman, the record in Utah is an indicator of similar experience in 20 other States as is shown by the support of this legislation in both the Senate and the House of Representatives.

I have followed with great interest and personal support the various legislative proposals to assist our lead and zinc industry and agree that S. 289 is a practical program based on the current economic position of the industry. It will provide the incentive for the immediate future to keep our people in business. I urge favorable action by this committee and will support approval by the Congress. Senator ANDERSON. Senator Jordan.

STATEMENT OF HON. LEN B. JORDAN, A U.S. SENATOR FROM THE STATE OF IDAHO

Senator JORDAN. Mr. Chairman, I want to speak briefly in support of this legislation. I am cosponsor with you, as I have been through the years, in this important legislation.

My own State of Idaho has been very prominent in the production of lead and zinc. We have to realize that these resources cannot be mined and turned off and on like water in the tap. We have to have a long-range program that will keep this industry healthy. This bill, I believe, will accomplish that objective.

I look forward to perhaps this year getting further with it than we have been able to do in the past. As you remarked to me as we were sitting here, Mr. Chairman, it seems as though when the industry is in distress the Federal Government says, "There is nothing we can do about it." When the industry is affluent and getting along very well, they say "You don't need it.""

Here is a time, we believe, when we can make a good case for this legislation.

I thank you for the opportunity to present my views on this bill. It is intended as a measure to stabilize the domestic lead and zinc industry, to provide a mechanism on the books to prevent the occurence of crisis conditions in the market for U.S. producers, and to give those who are concerned with developing this part of our mining economy further incentives. The lead and zinc industry recently has enjoyed relatively good times, but this was not always true. The industry has gone through periods of severe depression. During one of these periods about 10 years ago, a quota on imports of lead and zinc was established. But this quota has been removed and there are indications that increasing production in the world may cause the same type of imbalance of supply and demand that in the past proved so damaging to the lead and zinc industry, leading then to the belated imposition of a quota system.

Over the past 17 years the domestic lead and zinc industry has proposed many plans which could lead to a mineral policy for this country, but there has not been favorable action by the executive department. Until such a policy is determined, some legislative protection is needed to regulate imports when they threaten the health of the domestic industry.

Legislation was introduced early in 1965 to liberalize the inflexible quota system then in effect. This proposal did not secure passage. Later, that same year, a proclamation was put into effect which canceled the quota system. Today the industry remains unprotected against

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the possibility of excessive, price-depressing imports. S. 289 would remove this danger. It is an exercise in foresight. It is an improvement over the quota program which has been abandoned.

This bill would establish a 5-year term during which the program would be continuously evaluated. Hopefully, this process would contribute to the development of the coherent minerals policy many of us have sought. If during the life of the proposed legislation the lead and/ or zinc stocks of U.S. producers reach levels considered excessive to normal requirements as compared to smelter shipments, quotas would become effective. When such conditions should cease to pertain, again determined by the relative level of producers' metal stocks, the import quotas would be canceled.

This is a plan which is fair to producers, to consumers, and to importers alike. It would be in effect only when necessary. I urge the members of the subcommittee to study this measure carefully with the hope that they will agree to report it favorably without undue delay.

I would like to have a copy of a letter from A. J. Tecke, secretary of the Idaho Mining Association, and a copy of Senate Joint Memorial No. 10 of the Idaho Legislature, both with concern for the need of a minerals policy and for legislation relating to lead and zinc.

(The letter follows:)

IDAHO MINING ASSOCIATION,
Boise, Idaho, March 22, 1967.

Mr. CLARK L. WILSON,
Chairman, Lead-Zinc Producers Committee, Room 714, Association Building,
Washington, D.O.

DEAR CLARK: Herewith enclosed is a copy of the Senate Joint Memorial approved today by the Idaho Legislature, urging the national Congress to establish a national minerals policy embodying the principle of flexible import quotas. This Memorial was introduced in the Idaho Senate on March 14 and was approved by that body on the following day by voice vote, without dissent. This morning it was passed by the Idaho House without a dissenting vote.

I sometimes wonder whether memorials such as this serve any useful purpose in the national Congress, but at least we have the Idaho Legislature on record in behalf of our industry and that can't do any harm.

Best personal regards.
Sincerely,

A. J. TESKE, Secretary.

[Enclosure]

SENATE JOINT MEMORIAL No. 10

A JOINT MEMORIAL

To the Honorable Senate and House of Representatives of the United States in Congress Assembled:

We, your Memorialists, the members of the Senate and House of Representatives of the Legislature of the State of Idaho, assembled in the Thirty-ninth Session thereof, do respectfully represent that:

Whereas, the development and utilization of Idaho's abundant mineral resources has always been and must continue to be one of the major components of the state's economic structure, providing not only a source of employment and income, but also a sound base for tax revenues and a substantial market outlet of agricultural and manufactured products in mining areas, and

Whereas, this basic and essential mining industry has for many years been struggling under adverse economic conditions so severe that many major metal mining enterprises in the state, involving the production of antimony, tungsten,

cobalt and other strategic metals, as well as most of our small lead zinc producers, have been forced out of business, and even our large, nationally-important lead and zinc mines were reduced to the status of marginal operations prior to the 1965-1966 period of improved business conditions, and

Whereas, this serious predicament of our mining industry is directly attributable to policies of the federal government which encourage and stimulate the development and exploitation of foreign mineral resources and through tariff concessions permit the resultant low-cost foreign production relatively free access to U.S. markets.

Whereas, these policies, if continued, will not only threaten the economic survival of Idaho's metal mining industry, but will also impose a serious handicap on our nation's capacity to provide from domestic sources the basic requirements for national defense, and

Whereas, the executive department of the federal government and both major political parties, as well as the Conference of Western Governors, have officially recognized the necessity for maintaining a domestic mining industry that is sufficiently vigorous and proficient to assure a minerals mobilization base adequate to national preparedness and security, and

Whereas, past efforts by the federal government to alleviate the depressed conditions which prevail in various segments of the domestic mining industry by means of short-range programs and temporary expedients, such as stockpiling, subsidies and inflexible quota limitations, have not only proven ineffective and inadequate but have also resulted in the accumulation of substantial government stockpiles of some metals, including lead and zinc, and

Whereas, some of these stockpiles, including lead and zinc, now loom as an additional market threat to producers, because, under revised government stockpile objectives, they have been declared to be excessive and it is the intent and purpose of the responsible executive officials to dispose of the surpluses through market channels to obtain funds for use in balancing the national budget, contrary to all legislative intent, and

Whereas, since the fixed quotas on lead and zinc were abolished by executive order in October 1965, imports of both metals have increased tremendously and last year were more than 30 percent and 65 percent, respectively, above the fixed quota levels.

Now, therefore, be it resolved, by the Thirty-ninth Session of the Legislature of the State of Idaho, now in session, the Senate and the House of Representatives concurring, that we respectfully urge the Congress of the United States and the executive department of the federal government to formulate and put into effect with all deliberate haste a national minerals policy that will assure the preservation of a sound and stable domestic mining industry by reserving to domestic producers a fair and equitable share of domestic metal markets. We recommend that the implementation of this policy include as a minimum: 1. Retention of Congressional control over national stockpiles so as to minimize, if not completely avoid, the adverse market impact of surplus disposal. 2. Provision for adequate limitations on ore and metal imports when required, with import quotas to be applied when metal stocks of domestic producers exceed normal inventories needed to service domestic consumers and to stabilize these inventories at reasonable levels encouraging the maintenance of a strong and healthy mining industry.

3. Provisions for effective enforcement of anti-dumping and countervailing duty rules and regulations.

Be it further resolved, that the Secretary of State of the State of Idaho be, and he hereby is, authorized and directed to forward certified copies of this Memorial to the President and Vice President of the United States, the Speaker of the House of Representatives of the Congress, and to the senators and representatives representing this state in the Congress of the United States.

Senator ANDERSON. Thank you, Senator Jordan, for that fine statement.

Senator Church has another committee assignment, and he will be recognized for his statement.

Senator Church.

STATEMENT OF HON. FRANK CHURCH, A U.S. SENATOR FROM THE STATE OF IDAHO

Senator CHURCH. Thank you very much, Mr. Chairman.

I am supposed to chair another subcommittee hearing in the next room and am already late for that. I appreciate the courtesy, Mr. Chairman, of making this short statement.

I appear before your subcommittee today to urge early and favorable action on S. 289, the lead-zinc bill. I am, as you know, a cosponsor of this proposed legislation which I consider essential to the proper protection of the lead-zinc industry in my State of Idaho and the rest of the Nation.

Between 1958 and 1963 the lead-zinc industry found itself the victim of low prices. Metal stocks were excessive and mine and smelter production dropped. A quota on imports was finally established. For the last 3 years the industry has prospered. Consumption has increased. Our domestic producers have opened old mines and expanded production.

However, the import quota controls were lifted late in 1965, and no replacement has been afforded. Even though the industry is stable at the moment, there is no guarantee that history will not repeat itself. and that a foreign surplus will not depress our domestic markets. Over the years, the industry has suggested numerous plans for a longrange mining policy. None has proved acceptable to the executive departments. This proposal is, admittedly, a short-range, back-up legislation to provide an import control plan that could be implemented when and if it is needed. Its provisions would simply guarantee that an adequate supply of lead and zinc ores and metals would be available from all sources at reasonable cost.

I might say, Mr. Chairman, that it seems to me that the time is now opportune to put such legislation on the statute books. In times past, we have waited until a serious crisis has afflicted the industry and then we have turned to some emergency program or we have rushed to the Tariff Commission, and I think that that kind of action is to be avoided if at all possible.

I think the thrust of this bill is excellently defined in its title; and that is, "To protect the domestic economy, to promote the general welfare, and to assist in the national defense by providing for an adequate supply of lead and zinc for consumption in the United States from domestic and foreign sources."

Mr. Chairman, I hope your subcommittee will place an early stamp of approval on this bill, report it to the full committee, and that we can bring it to the floor of the Senate for prompt and favorable action.

I want to thank you for your courtesy.

Senator ANDERSON. Thank you, Senator Church.

We have received statements from Senators Bible, Metcalf, Dominick, Bennett, Montoya, and Cannon, all of whom are greatly interested in this legislation.

(The statements referred to follow:)

STATEMENT OF HON. ALAN BIBLE, A U.S. SENATOR FROM THE STATE OF NEVADA

Mr. Chairman, in July of 1965, before this same subcommittee, I testified in support of legislation giving a four-year extension to the 1961 Lead and Zinc Stabilization Act. I said then that mining cannot be turned on and off like a water tap and that it was essential that Congress act to guarantee a stable leadzinc industry. Stabilization payments are, at best, short-term insurance. As I said at that time, "This measure merely continues interim support for lead-zinc miners, and its benefits are limited. We must look next to a long-range solution, which I believe we will find with legislation restricting imports."

I wish now to re-emphasize that statement-and that warning. Prompt Congressional action now will head off a crisis in America's lead-zinc industry before it can develop. It is true that lead-zinc producers are still enjoying a prosperous recovery period, but there are growing signs that world production may soon create another surplus situation that could plunge the lead-zinc industry into another period of depression similar to that in the 1950s. We do not want this to happen, and we cannot afford a wait-and-see attitude. The time to provide insurance against such a situation is now.

I consider the flexible quota system proposed in S. 289, the legislation before this committee, to be the fairest and most effective possible solution pending adoption of a sound, longer-range minerals policy. It is a system activated by market conditions, and this activating principle will help avoid any unnecessarily restrictive import regulations. The quotas would not become effective unless stocks of primary lead-zinc producers reach levels considered excessive to normal requirements. Even then, the restrictions on imports are for no more than three years. During that period, a shortage of the metal would cancel the quota. The life of the legislation itself is kept to five years to permit re-evaluation.

Mr. Chairman, a prosperous and stable lead-zinc industry is important to our nation. I urge prompt approval by this Committee of this legislation to maintain that condition.

STATEMENT OF HON. LEE METCALF, A U.S. SENATOR FROM THE STATE OF MONTANA

Mr. Chairman, as a co-sponsor, I appreciate this opportunity to speak for S. 289, to provide for a stable and prosperous lead and zinc industry.

In the words of its title, this bill seeks to "protect the domestic economy, promote the general welfare and assist in the national defense by providing for an adequate supply of lead and zinc."

This legislation would authorize the establishment of quarterly import quotas on lead or zinc metals and ores when and if needed. These quotas would be triggered by the relationship of metal shipments and the supplies held by domestic primary producers. The Secretary of the Interior would also be authorized to establish quarterly import quotas for any manufactured lead or zine article. The lead/zinc quotas would be related to a fixed quota base period for imports of articles manufactured from these metals. The Secretary of the Treasury would administer the quotas.

Increasing consumption of lead and zinc in the United States and abroad during 1964, 1965 and 1966 has resulted in a recovery from the 1958-1963 period of excessive metal stocks, unprofitable price levels and reduced mine and smelter production. The increased consumption has encouraged the domestic industry to reopen mines, develop and produce from new ore resources and expand concentrating and smelting facilities. This process is going on all around the world. But the temporary shortage of metal in 1965 can easily change to a surplus in foreign markets. This surplus can, once again, result in excessive and unneeded imports into the United States.

Montana has long been one of the foremost producers and processors of both lead and zinc in the United States. However, market conditions and other economic factors have continued to keep the mining and treating of both metals far below what are considered to be normal levels and, while output increased in 1962 for the first time since 1956, production was not high enough to support a healthy lead/zinc industry in the State. Metals prices in 1965 were comparable to those of 1956 but the value of lead/zinc produced was only half that of 1956.