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PRESERVATION OF THE DOMESTIC FLUORSPAR
TUESDAY, APRIL 7, 1959
MINERALS, MATERIALS, AND FUELS SUBCOMMITTEE
OF THE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS,
The subcommittee met at 10 a.m., pursuant to call, in room 3110, Senate Office Building, Hon. James E. Murray (chairman) presiding. Present: Senators Murray, Carroll, Moss, Martin, and Allott. Also present: Robert W. Redwine, professional staff member. The CHAIRMAN. The committee will be in order.
This hearing has been called for the consideration of S. 1285, of which I am happy to be a cosponsor.
(S. 1285 is as follows:)
[S. 1285, 86th Cong., 1st sess.]
A BILL To provide for the preservation and development of the domestic fluorspar industry
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Domestic Fluorspar Production Act of 1959".
DECLARATION OF POLICY
SEC. 2. The preservation and continued development of domestic fluorspar industry is essential to meet the domestic demand for various grades of fluorspar so that the United States will not be dependent upon the importation of such products. To that end, it is necessary in the interests of national security that limitations be placed which will maintain a reasonable balance between domestic production and importation.
SEC. 3. For the purposes of this Act
(a) The term "person" means an individual, partnership, corporation, or association.
(b) The term "quota", depending upon the context, means (1) that quantity of fluorspar which may be brought or imported into the United States, for consumption therein, during any calendar year, from any foreign country or group of foreign countries; or (2) that quantity of fluorspar produced in the United States, which, during any calendar year, may be shipped, transported, or marketed, or consumed by producers thereof, in interstate commerce or in competition with fluorspar shipped, transported, or marketed in interstate or foreign
(c) The term "Secretary" means the Secretary of the Interior.
(d) The term "United States" means the several States, Territories, and possessions of the United States.
ANNUAL ESTIMATE OF CONSUMPTION IN UNITED STATES
SEC. 4. The Secretary shall determine for each calendar year, beginning with the calendar year 1959, the amount of fluorspar needed to meet the requirements
of consumers in the United States. Such determinations shall be made on or before December 1 in each year for the succeeding calendar year and at such other times during such calendar year as the Secretary may deem necessary to meet such requirements. In making such determinations the Secretary shall use as a basis the quantity of fluorspar distributed for consumption as indicated by official statistics of the Department of Commerce, during the twelve-month period ending October 31 next preceding the calendar year for which the determination is being made, and shall make allowances for a deficiency or surplus in inventories of fluorspar, and for changes in consumption because of changes in demand conditions, as computed from statistics published by agencies of the Federal Government. In the case of the calendar year 1959 such determination shall be made within thirty days after the date of enactment of this Act.
PRORATION OF QUOTAS
SEC. 5. Whenever a determination is made, pursuant to section 4, of the amount of fluorspar needed to meet the requirements of consumers, the Secre tary shall establish quotas, or revise existing quotas as follows:
(a) For the United States, in the amount of two hundred thousand tons of fluorspar containing more than 97 per centum of calcium fluoride, and in the amount of one hundred and twenty-five thousand tons of fluorspar containing not more than 97 per centum of calcium fluoride, to which amounts there shall be added an amount in each case equal to 25 per centum of any excess over the initial determination of the Secretary under section 4 until such time as imports of fluorspar have equaled the average rate for the years 1956, 1957, and 1958, and thereafter 40 per centum of such increase.
(b) For foreign countries in an amount equal to the difference between the quotas determined under subsection (a) and the amount of the Secretary's determination of requirements of consumers in the United States under section 4, for the respective grades, to which amounts there shall be added an amount in each case equal to 75 per centum of any excess over the initial determination of the Secretary until such time as imports have equaled the average rate for the years 1956, 1957, and 1958, and thereafter 60 per centum of such increase.
(c) Eighty per centum of the quota for foreign countries shall be prorated among such countries producing fluorspar and exporting it to the United States during the years 1956, 1957, and 1958 on the basis of the average amount imported from each country for such years, and 20 per centum shall be held for sixty days after the beginning of the calendar year for proration to countries not producing fluorspar and not exporting it to the United States during the years 1956, 1957, and 1958, on such basis as the Secretary determines. Any part of such amount not prorated during such sixty days shall be prorated as above provided to countries producing fluorspar and exporting it to the United States during 1956, 1957, and 1958. If during any year a foreign country is unable, as determined by the Secretary, to produce and export to the United States the tonnage of fluorspar permitted by its proration, the Secretary may prorate such tonnage among the other foreign countries in such manner as he sees fit.
(d) If in any calendar year prevailing domestic prices for fluorspar exceed the following, subject to annual adjustments as determined by increases or de creases in the Bureau of Labor Statistics Nonferrous Metals Index, the Secre tary may increase for the balance of the year the quotas for foreign countries to such extent as he deems advisable to prevent unwarranted price increases: Fluorspar containing more than 97 per centum calcium fluoride, free on board cars or barges, $55.
Fluorspar containing not more than 97 per centum calcium fluoride, free on board cars or barges:
Ceramic grade fluorspar containing not more than 96 per centum calcium fluoride, $48.
60 per centum effective metallurgical grade fluorspar, $34.50.
70 per centum effective metallurgical grade fluorspar, $38.50. 722 per centum effective metallurgical grade fluorspar, $39.50. The Secretary shall increase the quota only for the grades of fluorspar on which the above prices have been exceeded.
(e) Imports of fluorine or fluorine compounds from any country receiving a proration under the provisions of section 5 (c) shall count as acid grade fluorspar and shall be deducted from the permissible imports of acid grade fluorspar from that country in such manner as the Secretary of the Interior shall determine. Imports of fluorine or fluorine compounds from countries other than those receiving prorations under section 5(c) shall count as imports of acid grade