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 new material disposals and proposed revisions to

current disposal levels of certain National Defense Stockpile

commodities under the Fiscal Year (FY) 1998 Annual Materials Plan

(AMP).

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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 new material disposals for Beryllium Copper Master Alloy,

Chromium (Metal), Columbium (Carbide), Columbium (Minerals), Titanium

Sponge, Tungsten (Ores & Concentrates), Tungsten (Carbide), Tungsten

(Metal Powder), and Tungsten (Ferro) under a revised FY 1998 AMP. In

addition, the revised AMP proposal includes raising the current FY 1998

disposal levels for Palladium, Platinum, and Bauxite (Surinam).

DATES: Comments must be received by September 26, 1997.

ADDRESSES: Written comments 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 Act), 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. The Act (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 Federal Emergency Management Agency and is co-chaired by the

Departments of Commerce and State. The Act 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 is now considering Defense's proposed new National

Defense Stockpile material disposal levels and revisions to current

Stockpile material disposal levels under the FY 1998 AMP. These

materials are currently under Congressional consideration for disposal

in 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.

The new materials list identified below is proposed for inclusion

in the FY 1998 AMP:

Proposed New Material Disposal Authority for FY 1998

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Current FY Revised FY

Material Units 1998 quantity 1998 quantity

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Beryllium Copper Master Alloy.............. ST................................. 0 1,250

Chromium (Metal)........................... ST................................. 0 500

Columbium (Carbide)........................ LBS Cb............................. 0 21,372

Columbium (Minerals)....................... LBS Cb............................. 0 200,000

Titanium Sponge............................ ST................................. 0 4,000

Tungsten (Ores & Concentrates)............. LBS W.............................. 0 2,000,000

Tungsten (Carbide)......................... LBS W.............................. 0 100,000

Tungsten (Metal Powder).................... LBS W.............................. 0 100,000

Tungsten (Ferro)........................... LBS W.............................. 0 100,000

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The following list of materials are presently included in the FY

1998 AMP. However, DNSC proposes to increase the maximum disposal

authority for these materials.

Proposed Revisions to FY 1998 AMP

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Current FY Revised FY

Material Units 1998 quantity 1998 quantity

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Palladium.................................. Tr Oz.............................. 15,000 300,000

Platinum................................... Tr Oz.............................. 10,000 125,000

Bauxite (Surinam).......................... LDT................................ 300,000 800,000

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The proposed FY 1998 disposal quantity for each listed material is

the maximum amount of material that may be sold in a particular fiscal

year. Please note that these quantities are not sales targets. 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 quantity of each material approved for

disposal by the Congress.

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 lists. Although comments in response to this Notice must

be received by September 26, 1997 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

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: August 21, 1997.

Karen A. Swasey,

Director, Economic Analysis Division.

[FR Doc. 97-22708 Filed 8-26-97; 8:45 am]

BILLING CODE 3510-33-P