For mines of the State of Idaho, where lead and zinc are also important, an early solution to this problem is essential. Also, copper, tungsten, and mercury are important to the economy of that State.

So far as Washington is concerned, lead, zinc, and uranium are problems of importance faced by Governor Rossellini.

In Oregon the sad situation in the gold industry, the problems of mercury, and the early termination of the chrome program add to unemployment.

In California, the closed gold mines of the mother lode, the closed lead-zinc mines in the southeastern part of the State, the problems of low-priced copper, the mercury problem, and the termination of chrome mining are of utmost importance, as, for many decades, California's prosperity was based upon the mining industry.

In Arizona, the slowdown in copper production, due to excessive imports, is having a very serious effect upon the State's economy, and the not too distant termination of the manganese program and the uncertainties facing asbestos are of increasing concern to Governor McFarland.

Governor Mechem, of New Mexico, also has the problem of slowdowns in the copper industry and difficulties and uncertainties in the uranium program.

The State of Colorado is concerned with almost every metal I have mentioned, and to those must also be added fluorspar.

In Utah, the situation in the copper and lead-zinc industries is having a very serious effect upon that State's economy.

Governor Simpson, of Wyoming, is concerned with excess imports of oil, lack of facilities for uranium processing, and other problems related to the mineral industry of his State.

The governors of all of the Western States are facing serious unemployment problems. This, plus the inability of the Western States to purchase manufactured and other products from various sections of the country, due to the depressed condition of the mining industry, is affecting the general economy of the Nation.

I am submitting, for the record, copy of a resolution adopted by the western governors at their conference in Reno, Nev., on April 26-27, 1957, and the recommendations of their mining advisory council, referred to therein. And, also, resolution by the western governors at their conference in Colorado Springs, February 23-26, 1958, relating to metal and mineral mining, which I would like to read before this committee, if it is permissible.

Senator BIBLE. Yes; you may read the resolutions. This is the resolution of April of last year?

Governor RUSSELL. That is true. And I wish to file with the committee a copy of the resolutions that were adopted in 1957.

Senator BIBLE. The resolution of 1957 of the western governors will be incorporated in full in the record.

(The 1957 resolution referred to follows:)

RESOLUTION BY THE WESTERN GOVERNORS RECOMMENDING A NATIONAL POLICY FOR MINERALS

Whereas, the western governors' conference met in Reno, Nev., on April 26 and 27, 1957, and accepted the recommendations of its mining advisory council for further study; and

Whereas, two World Wars and the Korean episode have clearly shown that in times of emergency, when more than normal amounts of metals are needed, metal supplies from foreign sources decrease; and

Whereas in times of future emergency, Russia's tremendous submarine fleet would effectively eliminate the possibility of metal importation from overseas; and

Whereas the United States Government has definitely stated the necessity for a "healthy domestic mining industry"; and

Whereas one of the three principal sources of tax income which maintains the governments of three-fourths of the Western States is the mining of minerals and solid fuels; and

Whereas much of the money available to the citizens of those same States for the purchase of the manufactured goods of the East is derived from the minerals industry; and

Whereas because of decreased tariffs over the last 20 years and the multiplication of this effect by domestic inflation, mining developments have become unattractive in the Western States and more attractive in foreign countries; and Whereas it is evident that unless the United States producer is assured of a fair share of the domestic market, he cannot justify continued operation; and Whereas such a program, if adopted by the Congress and the various agencies affected, would

(a) Decrease the tax burden on the people of the United States;

(b) Increase the revenue to the Government;

(c) Decrease the number of Federal employees;

(d) Increase the security of the country in time of future emergency; and (e) Maintain the economic stability of the Western States.

Now, therefore, be it

Resolved, That Congress rectify the errors in past tariff reductions by the imposition of import control, so that the ratio of domestic production to domestic consumption shall not fall; and be it further

Resolved, That the following actions are recommended:

1. As to cobalt, copper, lead, zinc, tungsten, mercury, and fluorspar, that excise taxes be imposed on foreign imports above the present tariff levels but, in most cases, less than the ad valorem rates of 1939; and

2. As to antimony, asbestos, chrome, and manganese, that very small excise taxes be imposed on foreign imports, the proceeds of which should be used to maintain a healthy nucleus of domestic production in these strategic metals; and 3. As to coal, that the Government give equal consideration to all available energy resources before deciding which is to be used in generating power in any given area; that the Leasing Act be amended to permit greater single ownership of Federal coal lands; and that the quota limitation on oil imports be diligently reviewed; and

4. As to columbium and tantalum, that adequate stockpile appropriations (considerably less than a million dollars per year) be enacted to maintain a market for domestic production of these crucially high temperature metals; and

5. As to gold, that the errors of expediency which have closed the industry in the Western States be corrected; and

6. As to potash, that the antidumping laws be made effective; and

7. As to phosphate, that the inequities in present laws regarding limitations of acreage because of State lines be removed; and

8. As to rare earths and tin, that the United States Geological Survey and the United States Bureau of Mines continue and expand metallurgical and "use" research on the former, and geological studies in Alaska on the latter; and

9. As to thorium, that the Atomic Energy Commission either set up a program similar to uranium for its acquisition, or free it from Government control as to purchase and utilization; and

10. As to all metals, that the “Buy American” legislation be observed and that no contract be granted to foreign producers more favorable than terms offered domestic producers; and be it further

Resolved, That the recommendations of the Western Governors Mining Advisory Council be attached to this resolution and that the detailed information contained therein be available as a basis on which legislation may be developed; and be it further

Resolved, That copies of this resolution be forwarded to the Congress of the United States, and to such branches of the executive department as may be directly concerned.

In witness whereof, the members of the western governors' conference have approved and adopted this resolution on the dates hereinafter set forth opposite their respective signatures.

Governor RUSSELL. This is a copy of the Western Governors Mining Advisory Council recommendations that were made in 1957. Later I would like to read into the record the resolutions then that were passed at the recent governors' conference in Colorado Springs.

Senator BIBLE. The recommendations which were made by the Western Governors Mining Advisory Council, at Reno, Nev., on April 24-25, 1957, will likewise be incorporated in the record.

(The material referred to follows:)

WESTERN GOVERNORS MINING ADVISORY COUNCIL, RENO, NEV., APRIL 24-25, 1957

INTRODUCTION

The Western States are heavily dependent upon the extraction of minerals and fuels for their basic economies. That interdependence is increasing through industrial development and growing markets. To whatever extent each of the States produces minerals and metals, such production represents new wealth— wealth which is spent widely for the products of other Western States. When mineral production is curtailed, the economic effect is felt both in the immediate area and in areas from which purchases are made. A recent study in one western State indicated that 40 percent of its tax revenue came directly from its mining industry and, further, that 70 percent of the exports from that State were either mineral or metal raw materials, or manufactured products made from its mineral raw materials. Those exports financed, for the citizens of the State, the purchase of numberless commodities not produced in the State, thereby providing trade and employment for those areas producing the purchased commodities.

Domestic mining, particularly those segments producing materials in competition with similar products from foreign sources, has, in varying degrees, been affected by discriminatory duty reductions of raw materials under the trade agreements program and by the application by Government of short range, expedient policies in lieu of a long range mineral program containing basic import control measures. As a result, the objectives of a "healthy domestic mining industry" and "strong mobilization base" endorsed by the Cabinet Minerals Policy Committee, and by the President, have fallen far short of achievement.

Government mineral policy has consisted of pleas for increased production during war and national emergencies, and of indifference to the industry when adequate supplies again became available.

Causes contributing to the present plight of the domestic mining industry are numerous and complex, including:

(1) Increased labor, supply, transportation, and utility costs without compensating increases in price.

(2) Government loans, grants, and floor price contracts granted to foreign producers on the erroneous basis of "have not" appraisal of domestic mineral productive potentialities.

(3) Drastic reduction of the effectiveness of rates of duty on imported minerals and metals. Because of price increases and tariff cuts negotiated under the Trade Agreements Act, the fixed duties on minerals and metals have declined from an average of about 40 percent of the market price in 1939 to less than 10 percent at present-a reduction greater than that experienced by any other major domestic industry. Duties on most metals and minerals are considerably below a level necessary to protect the American workingman and investor from similar materials produced abroad under conditions intolerable to the American workingman and often prohibitive to free enterprise investments.

(4) Failure to gain needed relief from harm caused in negotiated trade agreements under the escape clause, peril point, and national security provisions of the Trade Agreements Act. The council, therefore, urges the Congress of the United States to resume its constitutional responsibility to regulate foreign trade.

(5) A tax structure unfavorable to investment of venture capital in the longrange activities of mineral exploration, development, and research, resulting in an inadequate testing of domestic mineral potentialities and a loss in ultimate tax

revenue.

(6) Threats of rights of location and patenting of mineral rights under existing statutes and excessively high withdrawals of public domain for questionable need.

(7) Prolonged extensions of the stockpiling program and recent introduction of the barter program in lieu of basic import controls, as the primary basis for aid to the domestic mining industry. Such programs have been recognized by the industry, by the administration, and by many Senators and Congressmen as being short-range solutions, serving only to afford relief to the industry until a longrange mineral program, providing a permanent basis of encouragement for development of a healthy domestic mining industry could be prepared and adopted.

The Congress, in recent actions regarding appropriations for both specific and general stockpiling programs, has exhibited impatience with temporizing, costly policies, forecasting termination of phases of, if not all, mineral stockpiling programs.

Congress recognized the lack of justice in the unfair competition furnished by excessive imports when it amended the Trade Agreements Act to aid the escape clause, the peril point and the national security provisions. However, those protective devices have failed even when the mining industry presented adequate proof of damage.

The State Department is still disposed to further reduce tariffs on metals and minerals, all raw materials in fact, to improve its bargaining position with others, irrespective of the effect on the domestic economy or on the capacity of the industry for continued production.

So long as these two conflicting policies continue, mining suffers in the vacuum of inaction created. If the President's desires are to be attained, they can only be realized by assuring to the domestic mining industry their fair share of the domestic market. By whatever means that fair share is assured, it can only be preserved by excluding from the domestic market any foreign supplies in excess of need.

It is historically true that, when world metal shortages exist, the United States falls far short of obtaining needed supplies, but when surpluses exist, the full free world supply floods our market, causing depressed prices and domestic mine closures.

Regardless of their views on the issue of import controls or import freedom, there are few who will dispute the claim that mining has been seriously harmed by the extent of import freedom established through trade agreements since the 1934 act was passed. The differences arise in the form of relief needed.

In requesting equitable import controls, the domestic mining industry asks basically for only such protection as is necessary to insure continuity of enterprises whose costs of producing raw materials are consistent with the level of our domestic economy. Those costs involve consideration of comparative wages, taxes, supply cost, transportation to market, and average grade of the source material.

Tariff forms, at present, vary through ad valorem, fixed rate, distribution of tariff receipts to domestic producers, and an excise tax on imports applicable only when domestic price falls below a stipulated level. Tariffs on manufactured goods are usually on an ad valorem rate, while fixed rates are prevalent on raw materials-a condition which has served to effectively reduce the measure of protection as prices increased in the inflation of the past 15 years. No one type of tariff may be practical for application across the board to all segments of the mining industry, but in the following recommendations, tariff needs are presented and preferences stated by qualified representatives of the numerous segments of the industry attending the conference.

Recommendations are hereinafter presented on the numerous problems outlined above, for the earnest consideration of the western governors. The recommendations made, in the carefully considered opinion of the delegates to the conference, form the framework of a national mineral policy on which can be established a healthy domestic mining industry, capable of providing an adequate mobilization base and serving its true function in our domestic economy.

ANTIMONY

Less than a decade ago, domestic mines supplied 42 percent of domestic primary consumption, while today they supply less than 5 percent. In wartime, requirements for antimony are at least 4 times the peacetime rate. (These figures do not take into account the amount of antimony in antimonial lead, which is not available for primary antimony uses.)

Domestic antimony mines are unable to compete with low-cost Imports. Accordingly, domestic antimony mining, milling, and smelting plants have been shut down and dismantled.

The council recommends that

(1) Minimum tariff or excise rates be established

(a) on antimony ore and concentrates at not less than 15 cents per pound of contained antimony; and

(b) on antimony smelter products at not less than 30 cents per pound of contained antimony.

(2) If it is not possible to obtain such tariffs or excises, then a tariff or excise of 6 cents per pound on contained antimony in imported antimony metal, oxide, ores, or concentrates should be established. The proceeds of this tariff must be distributed to the producers of primary antimony, produced and sold within the United States, in proportion to their production.

ASBESTOS

Arizona is the sole domestic producer of strategic grade asbestos. Lack of congressional appropriation for the Government buying program has caused most mines to shut down and places in jeopardy Arizona's progress toward establishment of self-sustaining milling and sales facilities adequate to handle all grades of fiber.

Since 1938, United States production of asbestos has varied from 1 to 8 percent of domestic consumption. The predominating interest of domestic consumers and the domination of the market by Canada make relief by tariff politically difficult.

The council recommends that

(1) Congress be requested to appropriate funds to carry out its expressed obligations to purchase asbestos.

(2) The life of the asbestos program be extended until the stockpile goal for long-fiber asbestos has been met.

(3) The present standards of quality be retained.

(4) An excise tax be imposed upon imported low-iron asbestos, the proceeds to be used to preserve a domestic asbestos industry.

CHROME

Consumption of chrome in the United States in 1956 was 9 times greater than 30 years ago, 21⁄2 times greater than 10 years ago, and 17 percent higher than in 1955. Despite the increasing demand for chrome, domestic production is negligible because it cannot compete with imports of ore mined by low-cost labor abroad.

A chrome mining industry to supply the West's expanding steel and electroprocess industries could be established if an excise tax were placed on imports of chrome and the resulting receipts distributed among domestic producers.

A program in line with the existing national policy of import tariffs on processed chrome products is necessary in order that the domestic chrome mining industry continues as an important part of the industrial economy of the West.

Accordingly, the council recommends that

(1) An excise tax equal to five-eighths cent per pound on contained chromium metal in imported chromite ore be established.

(2) Proceeds of this tax to be allocated, pro rata, to the producers for chrome mined and sold in the United States.

(3) The amount of the allocation to be the difference between the Atlantic seaboard price of chrome on the day of the sale and the equivalent of the 1956 GSA purchase price extended to include all grades of chrome, and adjusted annually to the United States Bureau of Labor statistical indexes.

(5) Expense to the Government attendant to collecting the tax and making the allocation to be borne by the excise tax.

COAL

Coal production in Colorado, New Mexico, Utah, Washington, Montana, and Wyoming has suffered a sharp decline during the past 10 years. The greater