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You have just given us a statement here that the amount shipped in the last few years has been more than for much longer periods before.

Mr. McCoy. That is true. But is that significant or not? We don't know.

DESTINATION OF SCRAP EXPORTS

Senator ELLENDER. Where does it go to?

Mr McCoy. Principally exports are shipped to the iron and steel countries of Europe, Great Britain, and Japan.

Senator THYE. When was your last survey? Have you ever had one?

Mr. McCoy. We have never had one.
Senator Thys. You have never had such a survey?
Mr. McCoy. Not this kind of a survey, no, sir,

Senator THYE. You have no information unless you proceeded with such a survey?

Mr. McCoy. Senator Thye, the only figures we have are some rough calculations that have been made in Government and out, which would give some broad picture of the potential availability. But we have no idea, for example, if it is 800 or 900 million or a billion tons potentially available and how much actually is and can be made available now and in the future.

Senator THYE. Thank you, Mr. Chairman.

CONFERENCE REPORT MANDATE

Senator HOLLAND. Mr. Chairman, I think that Senator Thye should be advised, because he came in after the statement was made, that this survey is being made under a direct mandate contained in the conference report in the extension of the Export Control Act. The agency is simply carrying out the mandate given to it by the Congress.

Senator SMITH. Mr. Chairman, may I ask whether it was the House proposal or the Department proposal?

Senator HOLLAND. Not having sat on that conference committee, Senator Smith, I do not know.

Senator ROBERTSON. I was on the conference committee.
What was the question?

SOURCE OF NEW PROVISION

Senator HOLLAND. The question was: From what source did this new provision directing this survey and also allowing the employment of an outside organization to make it come?

Senator ROBERTSON. It was in the House bill. The Senate bill wanted the survey made by the Bureau of Mines. We received a very convincing letter of 2 single pages, from the Department of Commerce, saying that they were already engaged in that survey and they had the exclusive jurisdiction of export licenses; it was very essential that the 2 be kept together. The reason the Banking and Currency Committee provided in the Senate bill that the survey be made by the Bureau of Mines, we were afraid that WOC men who had steel connections would get in there and rig this survey in the interest of steel companies who want cheap priced scrap, and many of the dealers who wanted scrap to sell, wanted an impartial survey and they thought it could be best obtained through the Bureau of Mines. But we put in an amendment in which we receded and concurred that only the fulltime members of the Department of Commerce could make this survey and that put the WOC's out.

With that amendment we agreed that the two surveys should go together and all the steel companies say it is very essential to the future of this country to know how much scrap will be produced over a period of time, how much steel has been produced and what will go into scrap and will be available, what will be the needs of our steel companies, especially for this high type steel which has to have the best type of scrap—that is what the Europeans are trying to getthat goes into structural steel.

There is no doubt that it is a vital survey. We agreed it should be made by the Department of Commerce and naturally it should be finished.

Senator Smith. Mr. Chairman, I understand Mr. McCoy to say that no survey like this had been made before, although I thought the Senator from Virginia said a letter from the Department of Commerce referred to an earlier study.

Senator Robertson. They were already engaged in it.

Mr. McCoy. We have been, for the past year, engaged in preparing two parts of this survey. One is on prompt industrial scrap, which we are going to do by questionnaire to those who generate scrap. The other, which we have prepared in consultation with the steel industry and scrap industry is a comprehensive outline of this obsolete scrap, the survey we are now talking about.

Our letter said we have expended a lot of time and effort during the past year in getting ready to do this. We are ready to proceed on both parts of the project. We are asking for funds here to make the contract and we can make the contract for this study within the next 2 weeks.

Senator Smith. What funds have been used to do what you have done already?

Mr. McCoy. Our regular funds. It has been mostly me engaged in working with representatives of the steel and scrap industry.

Senator Smith. You have never had a direct appropriation for this purpose?

Mr. McCoy. No.
Senator Smith. Does industry do anything of this kind at all?
Mr. McCoy. To my knowledge they do not.

Senator Smith. Do you have a record of the amount of exports: and the countries they go to that could be supplied for the record?'

Mr. McCoy. I would be glad to supply that to you.

Senator Smith. And the percentage that would be of our overall. estimated amount of scrap?

Mr. McCoy. I would hesitate to put a figure on the export quantity in relationship to our total because that is one of the things we want to find out here. I can give information in terms of the domestic consumption of scrap against the export volume.

(The information referred to follows:)

Exports and the consumption of scrap since quantitative control of exports ended 1

(Net tons, in thousands)

[blocks in formation]

1 Scrap exports were removed from quantitative control in October 1953.

* Total scrap is composed of: (a) ome scrap, which is generated in the operations of steel mills and forindries; and (6) parchased scrap, which is secured from the scrap market.

: Purchased scrap (see above) consists of industrial and obsolete scrap supplied by scrap brokers and dealers.

SURVEY OF MINING INDUSTRY

Senator DWORSHAK. Was not the Department of Commerce authorized a few years ago to undertake a survey and study of the mining industry which conceivably might have included this kind of study? Has any report been made on that?

Mr. McCoy. No, sir; I don't recall.

Senator DWORSHAK. Were you not given funds to make that kind of survey?

Mr. Nielson. I do not recall, Senator, that the Department of Commerce ever made a survey of the mining industry, except the Census of Minerals Industries.

Senator DWORSHAK. You had one for business. I thought you had about three different surveys. Maybe I am behind time in checking up.

Mr. Nielson. We would be very happy to check this for you and supply something for the record.

Senator DWORSHAK. If I am correct in my recalling that, then presumably you have already filed reports on those surveys. I would like to have copies if you have them.

Mr. Nielson. If we have filed a report and such survey has been made, we would be very happy to furnish you a copy.

(The information referred to follows:) A Census of Mineral Industries was authorized in the Supplemental Appropriaz tion Act of 1955. The census has been completed and preliminary releases are being issued. The final publication will be in two volumes and will be available in calendar 1957.

STUDY BY PRIVATE RESEARCH ORGANIZATION

Senator HOLLAND. Mr. Chairman, I have one more question. If I understand the situation, you are empowered by the conference bill now enacted by both Houses to make this survey through contractual arrangements with an outside organization. But you are also required that the analysis and the conclusions and recommendations must be handled by one of your own top-level full-time professional men in your Department?

Mr. McCoy. That is correct. Up to this time I may add that not any of our WOC's—those on loan to us without compensation—have been involved in this survey.

Senator Smith. You have the money for that, or will this money take care of that professional man?

Mr. McCoy. The additional $75,000 asked for here is primarily to finance this study by a private research organization.

Senator Smith. Do you have personnel in the Department to take care of it without additional people?

Mr. McCoy. We have other personnel to be used for the work we are to do ourselves.

Senator Chavez. How much money has the Department outside of this $75,000 now being requested?

Mr. McCoy. We have no appropriations for this purpose.
Senator CHAVEZ. None for this purpose?
Mr. McCoy. That is right.

Senator CHAVEZ. For business or any other segment that you might have authority to survey, how much money have you?

Mr. McCoy. Congress appropriated for fiscal 1957 a total of $6,900,000 to the Business and Defense Services Administration. That is an increase of $50,000 for the Inventors Council and $250,000 for area development activities. For other activities we have precisely the same amount of money, $6,600,000 for fiscal 1957, as we have for the current fiscal year.

BUREAU OF FOREIGN COMMERCE

EXPORT CONTROL

STATEMENTS OF GEORGE T. MOORE, ASSISTANT SECRETARY FOR

ADMINISTRATION; MARSHALL M. SMITH, DEPUTY ASSISTANT SECRETARY FOR INTERNATIONAL AFFAIRS; OSCAR H. NIELSON, DEPARTMENTAL BUDGET OFFICER; LORING K. MACY, DIRECTOR, BUREAU OF FOREIGN COMMERCE; JOHN C. BORTON, DIRECTOR, OFFICE OF EXPORT SUPPLY; REX A. ANDERSON, EXECUTIVE OFFICER; AND F. B. GATCHELL, BUDGET OFFICER, BUREAU OF CUSTOMS, TREASURY DEPARTMENT

LANGUAGE REQUEST

Senator HOLLAND. If there are no other questions, the next item, Mr. Chairman, is a request in the amount of $3 million for "Export control, Bureau of Foreign Commerce.” The proposed language includes authorization for the advance of $950,000 to the Bureau of Customs for enforcement and $88,000 to be advanced to "Salaries and expenses, general administration.” The amount requested is $164,000 over the $2,836,000 appropriated for fiscal year 1956.

JUSTIFICATIONS

I ask that there be placed in the record at this point pages 8 and 26 to 29 of the justifications.

(The justifications referred to follow:)

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