Eisenhower Library, White House Central files, Confidential file
Memorandum by the President to the Director of the Office of Defense Mobilization (Flemming)
confidential
[Washington,] April 14, 1954.
- Subject:
- Establishment of “Long-Term” Mineral Stockpile Objectives
In view of the discussion at the Cabinet meeting on March 12, 1954,1 of the “long-term” mineral stockpile objective concept, I hereby direct that you proceed immediately to establish officially the “long-term” objectives for metals and minerals and to devise appropriate programs for their accomplishment.
[Page 1146]- 1.
- The “long-term” mineral stockpile objectives should be calculated to
reflect the following:
- a.
- No wartime reliance on sources of minerals located outside of the United States, Canada, Mexico, and comparably accessible nearby areas as defined by the National Security Council. Within the defined accessible area specific supply discounts may be applied when competent interagency advice indicates that such action is desirable.
- b.
- No conservation measures that will jeopardize essential war-supporting activities.
- c.
- Possible destruction of key metal and mineral producing facilities in the U.S.A. and in strategically accessible sources.
- d.
- Reduction of the large wartime tonnages of ocean shipping required by large-bulk items.
- e.
- Stockpiling all or a portion of a material in an upgraded form in which it will be more readily utilizable in the wartime economy.
- 2.
- Policies now in effect covering speedy acquisition of materials to meet present minimum stockpile objectives should be continued. Acquisition of materials to meet the increment between the minimum and “long-term” objectives should go forward under comprehensive acquisition plans developed by you which provide for (a) purchases at advantageous prices (normally lower than the individual price trends, with due regard for changes in the value of the dollar) when such purchases will also serve to maintain essential elements of the mobilization base; (b) obtaining strategic and critical metals and minerals in exchange for surplus agricultural commodities; or (c) transferring to the stockpile surplus metals and minerals obtained under the Defense Production Act, the Federal Property Act, and other legislation. The acquisition plans should provide that, in making purchases, preference be given to newly-mined metals and minerals of domestic origin. Wherever possible these purchases should be spread out over a considerable period of time so that operations of domestic producers that are essential elements of the mobilization base can be appropriately maintained or reactivated. In addition, upgrading stockpile materials should normally be done when it can be accomplished at favorable prices and in periods of lowered economic activity. Thus, distressed conditions in connection with domestic mineral industries that are an important element of the Nation’s mobilization base can be alleviated.
- 3.
- All materials acquired should be held under the safeguards provided by the present Stockpile Act.2
- 4.
- In acquiring metals and minerals for the “long-term” stockpile objectives, care should be exercised to minimize interference with [Page 1147] the normal producer-consumer relationships of regular trade in the United States and in friendly foreign countries. Where more than one agency of the Government is involved in these transactions, your Office is directed to perform a coordinating function.