National Defense Stockpile Market Impact Committee Request for Public Comments

DEPARTMENT OF COMMERCE

Bureau of Export Administration

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 comments on the potential market

impact of proposed disposals of excess commodities currently held in

the National Defense Stockpile.

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SUMMARY: This notice is to advise the public that the interagency

National Defense Stockpile Market Impact Committee is seeking public

comment on the potential market impact of Department of Defense

proposed material disposals from the National Defense Stockpile under

the Fiscal Year (FY) 1998 Annual Materials Plan (AMP) and revisions to

the FY 1997 AMP.

DATES: Comments must be received by November 1, 1996.

ADDRESSES: Written comments (10 copies) should be sent to Richard V.

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

Strategic Industries and Economic Security, Room 3876, 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 Richard Watkins, International Commodities Division, U.S.

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

Stockpile Market Impact Committee.

SUPPLEMENTARY INFORMATION: Under the authority of the Strategic and

Critical Materials Stock Piling Act of 1979, as amended, (50 U.S.C. 98

et seq.), the Department of Defense (as National Defense Stockpile

Manager) maintains a stockpile of strategic and critical materials to

supply the military, industrial, and essential civilian needs of the

United States for national defense. 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 must also

balance market impact concerns with the statutory requirement to

protect the Government against avoidable loss.

The Committee is comprised of representatives from the Departments

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

and the

[[Page 51404]]

Federal Emergency Management Agency and is co-chaired by the

Departments of Commerce and State. The FY 1993 NDAA 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.''

The Committee will soon begin its consideration of Defenses

proposed material disposals from the National Defense Stockpile under

the FY 1998 Annual Materials Plan (AMP) and revisions to the FY 1997

AMP. In order for the Committee to obtain sufficient information to

prepare its recommendations to Defense, the Committee requests that

interested parties provide comment on the potential market impact of

disposals of the commodities identified below.

The proposed maximum disposal quantity for each listed material is

included. Please note that these quantities are not sales targets. They

are only a statement of the proposed maximum disposal quantity of each

material that may be sold in a particular fiscal year. The quantity of

each material that will actually be offered for sale will depend on the

market for the material at the time of the offering. It will also

depend on the maximum disposal quantity of each material approved for

disposal by the Congress.

Proposed Fiscal Year 1998 AMP

------------------------------------------------------------------------

Current FY

1997 Proposed FY

Material Units (Effective 1998

10-1-96) Quantity

Quantity

------------------------------------------------------------------------

Aluminum Oxide, Abrasive....... ST 6,000 6,000

Aluminum Oxide, Fused Crude.... ST 30,000 30,000

Analgesics..................... AMALB 2,500 2,500

Antimony....................... ST 3,000 3,000

Asbestos (all types)........... ST 20,000 20,000

Bauxite, Metallurgical LDT 600,000 600,000

(Jamaican).

Bauxite, Metallurgical LDT 300,000 300,000

(Surinam).

Bauxite, Refractory............ LCT 80,000 80,000

Beryl Ore...................... ST 2,000 2,000

Bismuth........................ LB 300,000 300,000

Cadmium........................ LB 1,200,000 1,200,000

Celestite...................... SDT 3,600 3,600

Chromite, Chemical............. SDT 100,000 100,000

Chromite, Metallurgical........ SDT 250,000 250,000

Chromite, Refractory........... SDT 100,000 100,000

Chromium, Ferro................ ST 25,000 50,000

Diamond, Bort.................. CT 1,000,000 1,000,000

Diamond Dies, Small PCS........ PC ........... 25,473

Diamond Stone.................. CT 2,000,000 2,000,000

Fluorspar, Acid................ SDT 100,000 180,000

Fluorspar, Metallurgical....... SDT 150,000 50,000

Graphite, Natural Malagasy..... ST 1,220 1,220

Iodine......................... LB 450,000 450,000

Jewel Bearings................. PC 31,000,000 31,000,000

Kyanite........................ SDT 1,200 1,200

Lead........................... ST 60,000 60,000

Manganese, Battery Grade SDT 60,000 20,000

Natural.

Manganese, Battery Grade SDT 3,011 3,011

Synthetic.

Manganese, Chemical Grade...... SDT 40,000 40,000

Manganese, Ferro Alloys........ ST 50,000 50,000

Manganese, Metal Electrolytic.. ST 2,000 2,000

Manganese, Metallurgical Grade. SDT 400,000 250,000

Mercury........................ FL 20,000 20,000

Mica (All Types)............... 2,260,000 2,260,000

Mica, Muscovite Block.......... LB

Mica, Muscovite Film........... LB

Mica, Muscovite Splittings..... LB

Mica, Phlogopite Splittings.... LB

Nickel......................... ST 10,000 10,000

Quinidine...................... Av Oz 200,000 750,000

Quinine........................ Av Oz 200,000 750,000

Sebacic Acid................... LB 1,000,000 1,000,000

Silicon Carbide................ ST 4,500 9,000

Silver (for coinage)........... Tr Oz 9,000,000 9,000,000

Talc........................... ST 1,000 1,000

Thorium Nitrate................ LB 1,000,000 1,000,000

Tin............................ MT 12,000 12,000

Vanadium Pentoxide............. ST V 200 200

Vegetable Tannin Extract, LT 5,000 7,500

Chestnut.

Vegetable Tannin Extract, LT 5,000 10,000

Quebrac..

Vegetable Tannin Extract, LT 5,000 10,000

Wattle.

Zinc........................... ST 50,000 50,000

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[[Page 51405]]

Proposed Revisions to Fiscal Year 1997 AMP

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Material Units Quantity

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Chromium, Ferro........................ SDT 35,000

Diamond Dies, Small PCs................ CT 25,473

Fluorspar, Acid Grade.................. SDT 180,000

Fluorspar, Metallurgical............... SDT 50,000

Quinidine.............................. Av Oz 750,000

Quinine................................ Av Oz 750,000

Silicone Carbide....................... ST 9,000

Vegetable Tannin Extract, Chestnut..... LT 7,500

Vegetable Tannin Extract, Quebrac...... LT 10,000

Vegetable Tannin Extract, Wattle....... LT 10,000

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The following list of new materials is presently under

consideration by the Congress for disposal authority in both FY 1997

and FY 1998. The Committee is seeking public comment on the potential

market impact of the sale of these materials in the event that Congress

does grant such disposal authority.

Proposed New Material Disposal Authority for FY 1997 and FY 1998

------------------------------------------------------------------------

FY 1997 FY 1998

Material Units Quantity Quantity

------------------------------------------------------------------------

Aluminum........................ ST 62,881 62,881

Cobalt.......................... LBCO 6,000,000 6,000,000

Columbium, Ferro................ LBCB 60,000 100,000

Germanium....................... KG 4,000 4,000

Indium.......................... TROZ 35,000 35,000

Palladium....................... TROZ 15,000 15,000

Platinum........................ TROZ 10,000 10,000

Rubber.......................... LT 125,000 125,000

Tantalum Carbide Powder......... LBTA 2,000 2,000

Tantalum Minerals............... LBTA 100,000 100,000

Tantalum Oxide.................. LBTA 20,000 20,000

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The Committee requests that interested parties provide written

comments, supporting data and documentation, and any other relevant

information on the potential market impact of the sale of any commodity

in the above three lists. Although comments in response to this Notice

must be received by November 1, 1996 to ensure full consideration by

the Committee, interested parties are encouraged to submit additional

comments and supporting information at any time thereafter to keep the

Committee informed as to the market impact of the sale of the AMP

commodities. Public comment is an important element of the Committee's

market impact review process.

Public comments received will be made available at the Department

of Commerce for public inspection and copying. Material that is

national security classified or business confidential 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: September 26, 1996.

John A. Richards,

Deputy Assistant Secretary for Strategic Industries and Economic

Security.

[FR Doc. 96-25156 Filed 10-1-96; 8:45 am]

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