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 comment 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 National Defense

Stockpile Market Impact Committee seeks public comment on the potential

market impact of Department of Defense proposed new material disposal

of zirconium ore, from the Stockpile under the Fiscal Year 1999 Annual

Materials Plan (AMP). The Committee also seeks public comment on the

Department of Defense plan to increase its current disposal levels for

Vegetable Tannin Extract (Quebracho) and Thorium Nitrate under the AMP.

DATES: Comments must be received by June 18, 1999.

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, NW, Washington, D.C.

20230; FAX (202) 501-0657.

FOR FURTHER INFORMATION CONTACT: Richard V. Meyers, Office of Strategic

Industries and Economic Security, U.S.

[[Page 27234]]

Department of Commerce, (202) 482-3634; or Stephen H. Muller, Office of

International Energy and Commodity Policy, U.S. Department of State,

(202) 647-3423; 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. In making disposals and

acquisitions of Stockpile materials, Defense is required by law to

refrain from causing undue market disruption, while at the same time

protecting the government against avoidable loss.

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 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 Committee is now considering Defense's proposed new Stockpile

material disposal level and revisions to current Stockpile material

disposal levels under the FY 1999 AMP. The new Stockpile material

listed in bold in Attachment 1 cannot be sold until Congress has

approved its disposal. It is expected that Congress will soon grant

disposal authority.

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.'' In order for the

Committee to obtain sufficient information to prepare its

recommendations to Defense, the Committee hereby requests that

interested parties provide comment on the potential market impact of

the commodities identified in Attachment 1.

The attached AMP listing includes the proposed maximum disposal

quantity for each material. These quantities are not sales target

disposal quantities. 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

as well as on the quantity of material approved for disposal by

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 these

commodities. Although comments in response to this Notice must be

received by June 18, 1999 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 these

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. Information 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

6883, U.S. Department of Commerce, 14th Street and Constitution Avenue,

NW, Washington, DC 20230, telephone (202) 482-0109. 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 Henry Gaston, the Bureau of Export

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

and telephone number.

Dated: May 14, 1999.

Brad I. Botwin,

Acting Director, Strategic Industries and Economic Security.

Attachment 1

Proposed Revisions to Current FY 1999 AMP

[The material in bold and italic is under congressional consideration]

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Current FY Revised FY

Units 1999 1999

quantity quantity

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Thorium Nitrate.............. Lb............. 1,000,000 7,091,891

VTE, Quebracho............... LT............. 10,000 16,000

Zirconium ore (baddeleyite).. SDT............ 0 17,383

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[FR Doc. 99-12612 Filed 5-18-99; 8:45 am]

BILLING CODE 3510-33-P