National Defense Stockpile Market Impact Committee Request for Public Comments

DEPARTMENT OF COMMERCE

National Defense Stockpile Market Impact Committee Request for

Public Comments

AGENCY: Office of Strategic Industries and Economic Security, Bureau of

Export Administration, U.S. Department of Commerce.

ACTION: Notice of request for public comment on the market impact of:

(1) proposed disposals of excess commodities currently held in the

National Defense Stockpile under the Fiscal Year 1996 Annual Materials

Plan, and (2) revisions to commodities proposed for disposal under the

fiscal Year 1995 Annual Materials Plan.

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SUMMARY: This notice is to advise the public that the National Defense

Stockpile Market Impact Committee (co-chaired by the Departments of

Commerce and State) is seeking public comment on the market impact of

proposed disposals of excess materials currently held in the National

Defense Stockpile.

DATE: Comments must be received not later than November 16, 1994.

ADDRESSES: Written comments (10 copies) should be addressed to Richard

V. Meyers, Co-Chair, Stockpile Market Impact Committee, Office of

Strategic Industries and Economic Security, Room 3878, U.S. Department

of Commerce, 14th Street and Constitution Avenue, N.W., Washington,

D.C. 20230.

FOR FURTHER INFORMATION CONTACT:

Richard V. Meyers, Office of Strategic Industries and Economic

Security, U.S. Department of Commerce, (202) 482-3634 or Stephen G.

Brundage, Office of International Commodities, U.S. Department of

State, (202) 647-2871 (co-chairs of the National Defense Stockpile

Market Impact Committee).

SUPPLEMENTARY INFORMATION: The Strategic and Critical Materials Stock

Piling Act of 1979, as amended, (50 U.S.C. 98 et seq.) authorizes the

maintenance of strategic and critical materials in the National Defense

Stockpile ``to decrease and to preclude, when possible, a dangerous and

costly dependence by the United States upon foreign sources of supplies

of such materials in times of national emergency.'' The Department of

Defense, as National Defense Stockpile Manager, may dispose of

materials in the stockpile that have previously been authorized for

disposal by law and have been determined to be excess to national

security requirements. In managing the stockpile, Defense must protect

the United States against avoidable loss while at the same time

``efforts shall be made * * * to avoid undue disruption of the usual

markets of producers, processors, and consumers of such materials.''

Section 3314 of the Fiscal Year (FY) 1993 National Defense

Authorization Act (NDAA) (50 U.S.C. 98h-1) formally established a

Market Impact Committee (the Committee) to ``advise the National

Defense Stockpile Manager on the projected domestic and foreign

economic effects of all acquisitions and disposals of materials from

the stockpile * * *.'' the Committee includes representatives from the

Departments of Commerce, State, Agriculture, Defense, Energy, Interior,

Treasury and the Federal Emergency Management Agency and is co-chaired

by the Departments of Commerce and State. The NDAA for Fiscal Year 1993

directs the Committee to ``consult from time to time with

representatives of producers, processors and consumers of the types of

materials stored in the stockpile.''

It is Defense's intent that the National Defense Stockpile be a

dependable, long term source of material. The material will be sold as

close to market prices as the conditions of sale permit (e.g.,

consideration will be given for the certifiable quality of the

materials being sold, and any appropriate transportation differential).

In order to protect the United States against avoidable loss, Defense

intends to exercise restraint regarding the quantities and timing of

any offers of excess materials for sale.

The Committee will soon begin its consideration of Defense's FY

1996 annual Materials Plan (AMP) of proposed disposals and acquisitions

of stockpile materials and will also consider revisions to the FY 1995

AMP. The following, with exceptions noted, are the materials for which

Defense has been granted disposal authority by Congress, and which

therefore may be included in the FY 1996 AMP.

Commodities which May be Included in FY 1996 AMP.

Aluminum Oxide, Abrasive

Aluminum Oxide, Fused Crude

Analgesics

Asbestos (all types)

Antimony

Bauxite, Metallurgical (Jamaican)

Bauxite, Metallurgical (Surinam)

Bauxite, Refractory

Beryl Ore

Bismuth

Cadmium

Celestite

Chromite, Chemical

Chromite, Metallurgical

Chromite, Refractory

Chromium, Ferro Alloys\1\

Cobalt

Diamond Bort

Diamond Stone

Fluorspar, Acid

Fluorspar, Metallurgical

Graphite, Natural Malagasy

Graphite, Natural Other

Iodine

Lead

Manganese, Battery Grade Natural

Manganese, Chemical Grade

Manganese, Electrolytic

Manganese, Ferro Alloys\1\

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\1\Commodities have not received Congressional approval for

disposal.

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Manganese, Metallurgical Grade

Mercury

Mica, Muscovite Block

Mica, Muscovite Film

Mica, Muscovite Splittings

Mica, Phlogopite Splittings

Nickel

Quinidine

Quinine

Quartz Crystals, Natural

Sapphire & Ruby

Sebacic Acid

Silicon Carbide

Silver (for coinage)

Talc

Tin

Thorium Nitrate

Vegetable Tannin Extract, Chestnut

Vegetable Tannin Extract, Quebracho

Vegetable Tannin Extract, Wattle

Zinc

Listed below are the materials in the FY 1995 AMP for which

Defense proposes disposal revisions:

Aluminum Oxide, Abrasive

Antimony

Cadmium

Chromite, Refractory

Diamond Bort

Fluorspar, Acid

Fluorspar, Metallurgical

Jewel Bearings

Kyanite

Lead

Manganese, Metallurgical

Mercury

Mica, Muscovite Film

Rutile

Sapphire & Ruby

Talc

Vegetable Tannin Extract, Wattle

Zinc

In order for the Committee to obtain sufficient information to

prepare its recommendations to Defense, the Committee hereby requests

that interested parties provide comments on the potential market impact

of stockpile disposals of the materials which have been identified

above as possible candidates for sales in FY 1996 as well as the

materials in the FY 1995 AMP for which Defense proposes to revise

disposals.

Although comments, in response to this notice must be received by

________, ______, 1994 (30 days after publication) for the Committee to

consider them in its evaluation of the FY 1996 AMP and the proposed

revisions to the FY 1995 AMP, the Committee would welcome further

comments as the sales proceed. Interested parties are invited to submit

written comments, opinions, data, information, or any advice that would

be useful to the Committee in reviewing proposed schedules and

quantities of Stockpile sales. All materials should be submitted with

10 copies.

Public information will be made available at the Department of

Commerce for public inspection and copying. Material that is national

security classified or business confidential information will be

exempted from public disclosure. Anyone submitting business

confidential information should clearly identify the business

confidential portion of the submission and also provide a non-

confidential submission that can be placed in the public file.

Communications from agencies of the United States Government will not

be made available for public inspection.

The public record concerning this notice will be maintained in the

Bureau of Export Administration's Records Inspection Facility, Room

4525, U.S. Department of Commerce, 14th Street and Constitution Avenue,

NW, Washington, DC 20230, telephone (202) 482-5653. The records in this

facility may be inspected and copied in accordance with the regulations

published in Part 4 of Title 15 of the Code of Federal Regulations (15

CFR 4.1 et seq.).

Information about the inspection and copying of records at the

facility may be obtained from Ms. Margaret Cornejo, the Bureau of

Export Administration's Freedom of Information Officer, at the above

address and telephone number.

Dated: October 11, 1994.

John A. Richards,

Deputy Assistant Secretary for Strategic Industries and Economic

Security.

[FR Doc. 94-25540 Filed 10-14-94; 8:45 am]

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