I am not familiar with the entire legislation, as I have not yet had an opportunity to study it. But I am familiar with the basic purpose of it. I simply want to concur with what they said, lend my support to it, and ask permission of this committee to tender a statement at some subsequent date. That is the only statement I care to make at this time, Mr. Chairman.

The CHAIRMAN. Thank you very much.
Senator MALONE. May I ask a question°
The CHAIRMAN. Senator Malone.

Senator MALONE. I appreciate your coming here because there should be closer cooperation, in my opinion, on these very important questions between the House and the Senate. I, too, have said I am in favor of Mr. Seaton's program as an interim plan, until such time as Congress can make up its mind what it is going to do in the division. of the markets of the United States with the nations of the world. But this will not work, simply because it is not on any principle.

But this is the reason I favor it. Because Secretary Seaton is the first man in 24 years that has been able to break through that Iron Curtain or sound barrier, whatever it is, at the White House under ? Presidents, and get the White House to admit that it must have, that any industry in this country must have, a fixed price, enough above the world price to make the difference between the wages, taxes, and cost of doing business here and in that chief competing nation, or must have a duty or tariff to do that.

As long as they have admitted that they must have that price, then it is a matter of discussion as to who should do that job and on what principle. I still believe the Tariff Commission, the agent of Congress, should do it; that it is the job of Congress under article I, section 8, and the principle should be on the basis of favor and reasonable competition, letting a tariff, duty, or whatever you want to call it, represent that difference in the average cost, not the high cost of each nation but the fair cost, and it is flexible under the 1930 Tariff Act, as you know.

Under their own motion, or the request of anybody, when they have reason to believe that the situation has changed, they can reexamine it and just keep it on that principle. As long as Congress has that principle, then private money will go into investments in the Nation. When the President can trade a part or all of any industry at any time. as testified by Secretary Dulles, when he thinks it will further his foreign policy, then no private money can go into any industry, obviously.

Or as long as Geneva, under the General Agreement on Tariffs and Trade, any multilateral agreement that they may make, and I know you are aware of this fact, the GATT regulations say that they do not have to keep their part of the agreement as long as they can show they are short of a dollar balance, which they can always show until our capital and markets are equally divided among all 36 nations.

Another thing I would say and you have a terrific responsibility over there this week, as we will have if you send it over here, which I hope you do not do-is when you are voting on it, I would like to call your attention to this one thing. The Constitution of the United States appointedly separates the regulation of the national economy, the regulation of foreign trade, and the fixing of duties, imports, and

excises, what we call tariffs, when it separates that job from the fixing of foreign policy.

The fixing of foreign policy was put in the executive department in article II, section 2. The regulation of foreign trade was put in the hands of Congress through article I, section 8.

Those old hedgehogs have been pushed around by experts, kings, queens, and dictators, that had both in their hands, the fixing of foreign policy and also trade.

So Washington, Jefferson, Franklin, and others were adamant that that should not happen. But it did happen in 1934 when the Congress of the United States, for fear of their lives, I think, the political lives, transferred the regulation of foreign trade to the Executive, contrary to the Constitution of the United States.

Ten times since then, the same kind of a Congress has kept it there under threats of the White House, and that is what it is doing today--under threat of the White House.

It would be just as reasonable, I would say to you, Mr. Congressman, if we passed a bill in Congress to transfer the fixing of foreign policy to the legislative branch. Everybody would be up in arms. It would be just as bad, or worse, I think, to transfer the regulation of foreign trade and the adjustment of duties and excises, which we call tariffs, to do that job, to the Executive, when, as a matter of fact, all they have to do is just sit still, and go back to an act which is flexible.

It will do exactly what your people in North Carolina need. We sent a bill over there four times on tungsten, with the money from the Senate to carry on tungsten and other minerals.

Your House turned it down. The Malone-Aspinall deal, which is a good deal like the act that the Secretary of the Interior is advocating, is still good until 1959, but it is no good without money. The only thing to do is just sit still over there this week, and you will go right back to the Tariff Commission, being an act of Congress of basis of fair and reasonable competition, and you are in the tungsten business. The CHAIRMAN. Thank you very much, Congressman, for your

statement.

The next witness will be Mr. William M. Weaver, Jr., president of the Tungsten Institute, and president, Tungsten Mining Corp., Vance County, N. C.

STATEMENT OF WILLIAM M. WEAVER, JR., PRESIDENT OF THE TUNGSTEN INSTITUTE AND PRESIDENT OF THE TUNGSTEN MINING CORP., VANCE COUNTY, N. C.

Mr. WEAVER. I am William Weaver, president of the Tungsten Mining Corp., which company has been operating in North Carolina continuously for the past 15 years.

The CHAIRMAN. You are president of the Tungsten Institute?

Mr. WEAVER. Yes. That is a nonprofit organization financed by certain domestic producers which has been sponsoring research at Stanford Research Institute.

Senator BIBLE. For the record, who are the present members of the Tungsten Institute, Mr. Weaver?

Mr. WEAVER. There are 13 of them.

Senator BIBLE. I think that might be furnished for the record. You can furnish it later. I will not interrupt your testimony now.

I think it will be helpful to us as we might be asked.

(Mr. Weaver subsequently submitted the following:)

MEMBERS OF THE TUNGSTEN INSTITUTE (DURING THE PERIOD SEPTEMBER 1, 1956, TO JUNE 1, 1958)

Boulder County Mining Association, 420 Pine Street, Boulder, Colo. Class A member. George Cowdery, president.

Climax Molybdenum Co., 500 Fifth Avenue, New York, N. Y. Class B. member. Arthur H. Bunker, president.

Consolidated Uranium Mines, Inc., Post Office Box 2578, Salt Lake City, Utah. Class B member. Edward Frawley, president.

Engel, Rene, Post Office Box 96, Wofford Heights, Calif. Class A member. Getchell Mine, Inc.,1 Post Office Box 2520, Reno, Nev. Class B member. Hardy, vice president.

Idaho Maryland Mines Corp., 983 Mills Building, San Francisco, Calif. member. Bert C. Austin, president.

Roy A.

Class B

Minerals Engineering Co., Post Office Box 1951, Grand Junction, Colo. Class B member. Blair Burwell, president.

Nevada-Massachusetts Co.,1 Post Office Box 996, Sonora, Calif. Class B member Clarles H. Segerstrom, Jr., president.

New Idria Mining & Chemical Co., Strawberry tungsten division, 1950 Tyler Street, Fresno, Calif. Class B member. M. C. Richardson, manager.

Surcease Mining Co.,' 214 30th Street, Sacramento, Calif. Class B member. John W. Hoefling, president.

The Wolfram Co.,1 Lovelock, Nev. Class B member. John M. Heizer, president. Tungsten Mining Corp.,1 headquarters: 500 Fifth Avenue, New York, N. Y. Class B member. William M. Weaver, Jr., president.

Wah Chang Mining Corp.,' Woolworth Building, New York, N. Y. Class B member. K. C. Li, president.

Mr. WEAVER. As of the 27th of this month, the mine in North Carolina is being shut down. I understand that as of the 1st of July, out of 206 tungsten mines operating in the United States 2 years ago, there will be only 1 left operating.

Senator BIBLE. The one mine will be left after North Carolina is what mine?

Mr. WEAVER. Union Carbide.

Senator MALONE. Union Carbide is interested somewhat in foreign nation production, too; are they not?

Mr. WEAVER. I don't believe they have any interest in tungsten production.

Senator MALONE. I mean general production.

Mr. WEAVER. Yes; in certain other metals.

Senator MALONE. Do they have any interest in high grade steel or tool steel of any kind in this country, in the manufacture?

Mr. WEAVER. Yes.

Senator MALONE. Tungsten carbide?

Mr. WEAVER. That is one of the largest manufacturers of tungsten carbide in the United States.

Senator MALONE. Tungsten, then, enters into the production of the ferroalloys?

Mr. WEAVER. Ferrotungsten, tungsten metal powder, and tungsten carbide; yes, sir.

1 Charter member.

Senator MALONE. That is all.

Mr. WEAVER. The reason we are shutting down the mine, of course, is because we cannot compete with the imports of tungsten from overseas, and because our domestic producers are being hurt by the imports of tungsten metal products.

The closing down of the mine is bad enough in itself, but it will also mean that the research program that the Tungsten Institute has been sponsoring the past 22 years will probably come to an end because the tungsten producers will not be earning any income to keep this research going.

Senator MALONE. Is that Mr. Thielemann, of Stanford Research Institute, who is leading this research?

Mr. WEAVER. That is correct.

Senator MALONE. Has there been any significant advances made in the use of tungsten?

Mr. WEAVER. Mr. Thielemann has developed an alloy called WI-52, which has been quite successful.

Senator MALONE. In what?

Mr. WEAVER. In use in jet engine alloys.

Senator MALONE. It is heat resistant?

Mr. WEAVER. Yes.

Senator MALONE. Technically can you testify to the heat resistant qualities of this new alloy?

Mr. WEAVER. I wouldn't say I am qualified as a metallurgist.
Senator MALONE. Do you cover it in your statement?

Mr. WEAVER. I will provide it for the record.

(The following exhibit was subsequently received :)

Composition and properties of WI-52 alloy

The CHAIRMAN. Do you have a prepared statement ?
Mr. WEAVER. No, sir; I do not.

The CHAIRMAN. You may proceed and give testimony you wish. Mr. WEAVER. As you know, tungsten has the highest melting point of any metal, approximately 6,100° F. We feel that anything that the Government can do to help keep the domestic tungsten industry alive would help this country, national-securitywise, in the long run. For that reason, we are in favor of the proposals on which you are now holding hearings. That is about all I have to say, Mr. Chairman. The CHAIRMAN. Have you any questions, Senator Malone? Senator MALONE. You were present when I questioned the representative of the brass industry. Did you understand our questioning? Mr. WEAVER. Yes, sir, it was very interesting.

Senator MALONE. And the answers?

Mr. WEAVER. Yes, sir."

Senator MALONE. Would you be in favor of Congress just allowing this regulation of foreign trade to revert to the Constitution, which says Congress shall regulate it?

Mr. WEAVER. I would like to see it come back to Congress.

Senator MALONE. Under the conditions of article I, section 8 of the Constitution, Congress shall regulate, shall adjust it, the duties, impose its excises, what we call tariffs, and shall regulate foreign trade. And under the 1930 Tariff Act, of course, the Tariff Commission had long been an agent of Congress, but there the agent of Congress, created by Congress, shall adjust the duties, impose itself and excises on that basis of fair and reasonable competition, which would be the difference between the cost of production here, not the high or low cost, or the high or low cost of the chief competing country, but a reasonable cost, and recommend that as a tariff which would be flexible, and which would be lowered or raised in accordance with the difference between the wage and living standard and cost of doing business here and in any chief competing country. You understand that?

Mr. WEAVER. Yes, sir. I am 100 percent in favor of flexible tariffs. It would be the best we could get.

Senator MALONE. Do you read in the eastern papers consistently that you are a high tariff advocate? That is, anyone who wants to make that difference is a high tariff advocate.

Mr. WEAVER. That is the impression I get.

Senator MALONE. That is all I see in the papers. I have never been for a high tariff or a low tariff and I have never heard of anyone who favors the principle that is. But it is one that is facing the Congress. You know this week it is to be voted on in the House; do you not? Mr. WEAVER. Yes.

Senator MALONE. I think the newspapers could do a very great service to this country to tell exactly what would happen in the event they send that bill back to committee, where, of course, it should go. Have you seen any explanation of what happens following June 30, in the newspapers?

Mr. WEAVER. I haven't seen anything spelled out at all.

Senator MALONE. It is in the record here now and available to a good many of them, but it has been here for 12 years. I have been here for 12 years now. But I am a high tariff advocate, when you