Mr. STEFAN. The table in the justifications shows total shipments from the Western Hemisphere in 15 months would be $158,400,000. Mr. NITZE. It would be $5,500,000 from the United States and the Western Hemisphere would be $66,000,000.

The CHAIRMAN. $66,000,000?

Mr. NITZE. Yes, sir.

The CHAIRMAN. How much from the United States?.

Mr. NITZE. $5,500,000 is what my figures show.

The CHAIRMAN. That shows $15,000,000 in this book here on page 134, and in the other book it shows a total from the Western Hemisphere of $158,000,000; I do not know.

The CHAIRMAN. This is $158,000,000 on page 4 of this thin book. That is physical quantities, yes. $158,000,000 is the copper figure from the Western Hemisphere of which ECA is supposed to finance $39,200,000, is that it?

Mr. NITZE. Yes, sir, $85,000,000.

The CHAIRMAN. $85,600,000.

Mr. STEFAN. $107,800,000 for the 15 months.

The CHAIRMAN. $158,000,000 from the Western Hemisphere, of which ECA would furnish $85,600,000.

Mr. STEFAN. That is $158,400,000. In 12 months for ECA it is $85,600,000 and in 15 months it is $107,800,000.

REQUIREMENTS FOR AUSTRIA

The CHAIRMAN. Now, let us go through the program. You have Austria down for 13,000 tons of imports with 12,100 tons financed by ECA giving them an available supply of 15,000 tons as against 17,000 pre-war. Why do we need to do that?

CATEGORIES OF COPPER IN PROGRAM

Mr. WENDEL. I would like to make a few general remarks, Mr. Chairman, if I may to explain what categories of copper we are dealing with here.

The CHAIRMAN. Yes.

Mr. WENDEL. First of all, we are confining these figures on a tonnage basis to primary copper only, and that does not include secondary or scrap copper, nor such things as copper wire, copper rods and other semi-manufactured and manufactured products. Those items, I believe, will come under other manufactured goods.

So, what we are dealing with here is primary copper, including copper in ores and concentrates which are brought into a country for smelting, blister copper which is brought in for refining, or the refined copper which is ready for fabrication into wire and other manufactured items.

DETERMINATION OF AMOUNT OF COPPER TO BE EXPORTED UNDER PROGRAM

Now, the approach in determining what the European countries might have was to first appraise the United States requirements primarily on the basis of the 1947 imports into this country.

After that was set down the remaining available supply was distributed among the European countries and the other claimants in proportion to their respective requirements.

I believe that the European countries in general were allocated a smaller amount of copper than they originally requested.

Some of the countries require slightly more copper than they did in 1947 because the rehabilitation of their copper industry has been rather rapid, and that is particularly true of France and Italy.

In the case of England I think the amount is just about the same as her consumption in 1947, although she requested something like 25,000 tons more than the figure set down here.

REQUIREMENTS FOR VARIOUS PARTICIPATING COUNTRIES

AUSTRIA

Mr. TABER. You have Austria down for 13,000 tons of imports with 12,100 tons financed by ECA, giving them an available supply of 15,000 tons as against 17,000 prewar. Why do we need to do that? Now, I would like to change this figure on Austria for the reason that we have had subsequent information which indicates that a figure of 13,000 is slightly higher than necessary. This is, I believe, the only figure that requires changing on the basis of later information.

Mr. STEFAN. What are you going to change it to?

Mr. WENDEL. We will change it to 10,000, but the 10,000 will also include 2,000 indicated under domestic production, since that 2,000 tons will be smelted there but not from domestic ores. It will be from imports of ores.

The CHAIRMAN. How much will the 12.1 change be?

Mr. WENDEL. I would judge, and this is a guess, about eight or nine. I would like to explain why the imports predicted for 1948 and 1949 are so much larger than those in 1947. You have probably heard testimony that some of the European countries have up until now been unable to do little in the way of industrial rehabilitation. This is true of Austria and it is hoped that this country will be able to supply its own requirements for copper products under the ECA through fabrication of copper internally. It is possible that it may be necessary for some of the 10,000 tons of imports to consist of copper wire and other manufactures should the industry not rehabilitate as rapidly as it is hoped it will. This would merely mean that the requirement would be shifted from crude copper into copper wire manufacturers.

Mr. ENGEL. But it would take more money?

Mr. WENDEL. Yes, it would take more money. It is preferable to import crude copper since Austria will then use domestic labor and power to fabricate it.

BELGIUM

The CHAIRMAN. You have Belgium with imports of 120,000 tons, about half of their prewar importation, and 45,000 tons available in Belgium as against 129,000 tons prewar. Are we sending them that copper?

Mr. WENDEL. No, this comes from their own colony, the Belgian Congo.

The CHAIRMAN. They get that themselves?

Mr. WENDEL. Yes, sir; they get that themselves, and some of it also comes to us.

The CHAIRMAN. That is not in the program at all?

Mr. WENDEL. No, sir; it is not in category of ECA financed imports.
The CHAIRMAN. All right, we will spend no time on that.
There is nothing in Denmark.

FRANCE

In France there seems to be a small item of 107,000 tons of imports, and 30,500 tons in the ECA set-up. Why do we need to do that?

Mr. WENDEL. Well, France receives some copper from her colonies, but not nearly enough to keep their domestic economy going. Before the war, France used an average of 120,000 tons a year. In 1947 consumption had returned to a rate of over 100,000 tons annually. What we have set down is a figure that will just about sustain the present level of copper consumption.

VACUUM CREATED BY ELIMINATION OF GERMANY AS BASE COPPER FABRICATOR

I might add that it is essential for the industry of European countries to be at a high level since there is a vacuum created by the elimination of Germany as a large copper fabricator.

Germany before the war consumed something like 200,000 or 250,000 tons of copper a year, a substantial amount of which was exported to other countries in the form of manufactures, machinery, copper wire and the like. You will notice when we get to western Germany that we have set down only 30,000 or 40,000 tons for the present German requirement.

The CHAIRMAN. Are they doing business any more?

Mr. WENDEL. They are doing a little bit, but anyway you will have a gap of several hundred thousand tons in Europe. I think the total copper requirement of Europe is much less than it was before the war.

POSSIBILITY OF EXCHANGING COPPER FOR CRITICAL ITEMS

Mr. ENGEL. France owns New Caledonia, and New Caledonia has more of the types of critical items that we need for stock piling than any other place of its size in the world. Why cannot they obtain this copper from us or make some deal so that they can pay us with some of these critical items they have?

I have a statement on New Caledonia showing that they are not manufacturing anywhere near her capacity of nickel.

Mr. WENDEL. I think that is perfectly feasible under another phase of the program; that is, there is substantial provision in the act for the return of strategic materials.

Mr. ENGEL. But if we give them this, then we have to pay dollars for what they return.

Mr. WENDEL. No. I think the manner in which we acquire the strategic materials is open. I believe the act reads it might be in the form of barter, trade, purchases, etc. It is for the Administrator to determine.

There is one material produced in New Caledonia that we are much interested in—that is, chromite. The nickel, unfortunately, is not produced in a form that we can use for stock piling.

Mr. ENGEL. But New Caledonia is not producing anywhere near the amount of nickel her capacity will perimt her to produce, and these are figures I got from the Army.

Mr. BRAMBLE. The director of nickel corporation in New Caledonia was in the United States recently, and I had a chance to talk with him. Their problem down there seems to be trouble in the delivery of coal. They use coal in the preparation of the concentrate that they ship, and they are trying to change their method of production from coal to the utilization of oil, which they think they can get from the Netherlands Indies, but at the present time they are not able to put out as much nickel as they have capacity for.

ITALY

The CHAIRMAN. You have Italy down for 30,000 tons and 72,000 over-all imports against 76,000 prewar and 78,000 in 1946. Why do you need to go as heavy as that in that picture?

Mr. WENDEL. I think the reason is again that we have that vacuum left by the cessation of the German copper industry. It means in place of the copper and the copper items that Italy used to receive from German sources, she must manufacture herself. You notice these total imports are somwehat lower than prewar.

The CHAIRMAN. A little bit. Is there any part of the rest of the 72,000 financed by us except the 30,500?

THE NETHERLANDS

The CHAIRMAN. For the Netherlands, you have an importation of 14 against 10 prewar and 10 in 1946 and none in 1947, with 10%1⁄2 financed by us. Why do we need to finance that?

Mr. WENDEL. First, their customary source of supply was the Western Hemisphere, and again they need some more copper to replace that which they used to import from Germany.

The CHAIRMAN. They did not produce it in Germany, did they? Mr. WENDEL. No. The Germans produced some of their copper, but they also imported many ores which were smelted there.

SWEDEN

The CHAIRMAN. There seem to be no imports in Norway, in Portugal none, and in Sweden 63,000 tons of imports as against 49 prewar, 52 in 1946, and 54 in 1947. Why would that be stepping up?

Mr. WENDEL. Sweden is rapidly industrializing in place of Germany. It indicates a substantial increase in requirements for manufacture of finished products.

The CHAIRMAN. Switzerland seems to show some increase.

Mr. WENDEL. Yes. I think the situation is similar to Sweden. These countries are in better shape to expand than the other countries.

UNITED KINGDOM

The CHAIRMAN. There are no imports for Turkey. For the United Kingdom, there seem to be about the same imports as the last few years and a little more available. We seem to be down for financing 82,300 tons. Why is that?

Mr. WENDEL. I think that is mainly the requirement from Canada.

The CHAIRMAN. And we are financing it?

Mr. WIGGLESWORTH. The requirement from Canada?

Mr. WENDEL. And Chile. I think that is about 50 percent Canadian and 50 percent Chilean.

GERMANY

The CHAIRMAN. Germany seems to be down for an import of 46,000 tons with 13,100 financed by ECA and the rest of it coming, I suppose through the other GARIOA appropriation?

Colonel BLUMENFELD. No, sir-from exports.

The CHAIRMAN. From where would they come?

Colonel BLUMENFELD. That is part of the item they would derive from the exports they sell and derive money which they would in turn use to apply against the needed imports, of which, of course, copper is one.

Mr. ENGEL. Is that the revolving fund they have over there?
Colonel BLUMENFELD. That is the GARIOA fund; yes.

Mr. ENGEL. It is the revolving fund they have over there?

Colonel BLUMENFELD. That is right.

Mr. ENGEL. In which they put the export money and then buy imports?

Colonel BLUMENFELD. That is right. It is the sole source of money they have had for the purchase of GARIOA imports in the past.

TIN

STOCKS, NEW SUPPLY, AND APPARENT CONSUMPTION OF TIN

The CHAIRMAN. The next item is tin, and we will put in the record the page in the table relating to tin.

(The table above referred to is as follows:)

United States stocks, new supply, and apparent consumption of tin (primary and

secondary)
[Long tons]

The CHAIRMAN. You have a proposed export from the United States of 550,000 tons of tin?

Mr. WENDELL. No; there will be negligible exports.
The CHAIRMAN. Well, it says here "exports of tin."