(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP91-00682R000300020013-6
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: August 11, 2000
• Sequence Number: 13
• Content Type: REPORT

ENCLOSURE NO. 2
Foreign Mineral Economics AO 000
? ? ?0?000000.0 ? ? ? ? o ? 000?0?k.-, - -
4
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Before the war the governmentis information and economic serviceslel-eign
mineral activities were grossly inadequate a:3 a result of which, thoro was a
serious lack- of first-hand data on onomy mineral potentials and the availability
of foreign materials to moot the tremendously increased domestic demand for
minerals in the defense and war programs. Procurement was delayed, and there
was .a rush to obtain tho needed basic data with which such purchasing as well as
preclusive buying and. the "Good Neighbor" programs could be planned and exocute(1.
Staffs of technical experts wore quickly recruited in the various war agencies
resnitnsible for these avtivitics and sent abroad to centers of production of
strategic and, critical minerals. The effort was extremely costly and inefficient,
an inescapable consequence of the lack of preparedness in this field.
.The governmentts.permancnt facilities for obtaining and analyzing foreign
mineral information must be expanded not only to prevent a recurrence of the
experience of the past few years, but to meet the needs for the future. AS
applied to this budget item, and in particular to its relationship to national
security, tho modest increase in funds requested is amply justified in HOUSO
Report No. 2734 of December 17, 1946, on the system currently employed in the
collection, evaluation and dissemination of intelligence affecting the war
potential of the United States, prepared by the Cormittec on Military Affairs,
House of Representatives.. Tho United States is now and has been the most self-
sufficient nation of the world in minerals, yet it has always had important
deficiencies. Manganese, Chromite, tin, and nickel, for example, are indis-
pensable to the industrial economy of this country and domestic requirements
for decades have boonmot principally by imports. Dependence of the United
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Hie
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States on foreign sources .for supplies of many important minerals, including
copper, load, and zinc, will increase in the future. Conscoucntiny in the years
to come and particularly in the reconversion period, minerals will occupy an
even more significant place in international affairs than in the past. This
and other factors such as the need for markets for those minorals which we con
produce for export, the mineral policy considerations relating to national de-
fense, conservation of domostio resources, tariff progrsms and future internation?
al 000poration in solving problems of an economic character, all r,s'quire com-
plete and current knowledge of mineral developments on a world-wide basis. 'It
is therefore imperative that the Bureau of Mines, staff of international mineral,
specialists be increased to analyze and interpret foreign mineral information
for the benefit of industry, the public, and the agencies of the Federal Govern-
ment responsible for the formulation of economic foreign-policy and national
security. It is also imperative that this Govornmont maintain at certain
embassies abroad technical observers compotont to secure information that will
be needed in Washington, and to advise diplomatic officers on local problems
relating to minerals. ft is especially important that this expansion.be made
at this time so that the knowledge gained during the war at tremendous costs may
be retained for the permanent benefit of the Government and particularly, to moot
the needs of the next fJa years..
The need for an improved foreign reporting service for minerals has boon
recognized for many years but not until 1935 was any constructive action takoni
In that year one of the exports of the Bureau of Mines was, sent to Europe to '
report on the mineral situation in that area. In 1939, with war imminent, ho-
was transferred to South America where he continued his investiations of foreign.
mineral activitios. Shortly. thoroafter, Forein Einoral Speeialists wore
assigned to the Embassies at Rio de Janeiro, Buenos Aires, Santiago, Lima, La
Paz, and Mexico City. In July 1942 this Foreign Mineral Service of the 7.1ureau
of Minos, with the approval of the Budget Bureau, was transferred to the Dopnrt-
mcnt of State where it was estahlishod as a yin orals Attache Sorvico under the
Foreign Service Aurxiliary, created by Congress as--a uar measure. This was felle,:1-
ed by an agreement between the Secretary of State and the Secretary of the
Interior under which the Bureau of Minos. "assumed responsibility for the re-
cruitment of technically qualificd IDGrsonnol for the Foreign Service Auxiliary,
the preparation and revision of instructions for the guidance of such personnel,
the appraisal on the basis of periodic program reports and otherwise of the
service of such personnel, the maintenance of adequate files and records per*
taming to foreign mineral rosourcs and such subjects which will servo as basic
reference material for the commodity specialists of the Bureau of Mines and for
other interested government agencies." Th relationship of the Department of the
Interior to the Minerals AttacheService- thus became the same as that of the
Department of Agriculture to the Agricultural Attache Service, and the Department
of Comore? to the Commerical Attache Service. Subeenently, the foreign mineral
staff of the temporary war agencies was greatly the Minerals Attache
Service remained essentially in status quo., With the torminatiOn of aar activities
this temporary wartime arrangement with the Department of State has been super-
seded by Public Law 72)4, 79th Co/jEress, effective November 13, 1946, which
authorizes the Secretary of State to assign for special duty abroad for noncon-
secutive periods not exceeding four years and at the ox7onse of the Department
of State, qualified exports in other agencies of the Government. The act requires
the loaning agency to reinstate employees on such assignments following completion
of the:Lir touro i-f-dut= abroad.
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' To meet postwar floods a substantial oxpansion of tho Mdnorals Attach() Sorvice,
which now includes ropresontativos only in Fru, Brazil, and the Union of South.
Africa, is,plannod. The Dopartmunt of Sao has roquosted tho Durau-of lanos to
assumo rosponsibility for mineral roporting specialists that aro requirod in
olovon aroas of tho world (Poru, Bolivia, Brazil, Yoxico, Cono, Union.
of South.Africa, China, India, Ragland, -storn. Europe ,(Paris), Central-SoutJorn
Europo (Borlin)), and na:y bc anpointod as Roservo Officers- undor Soctions,5?2 and
528,. Part C, of Pu'clic Law 724,. offoctivo last 'Tovo,lbor.
To ,Tivo industry, tho -public, and the Govornmont tho tynoof factual informa-
tion and analysis roquired in tho futuro, tho Burcau of Minos rroposos to onlarge
is of regional and intornational commodity s7,ocialists to provide adoo,uato
facilities for mooting tho groatcr rosponsibilitios of tho yoars ahead. W.e can-
not plan our intornational program and national doftuso without adoquate curront
data and mon qualified to intrprot thom from a baci7ground of first-hand oxpor-
ionoo. This profcssional staff must bo provided with adoquato statistical
and clerical servicos and travel :.unds- so thatit may be fully informed at all
. .
/timos. The inCroasoireUestod for fiscal ycar 1948 is designod to initiate the/
//broad program outlined above and to provide a Tart of the necossarytochnical
A/ ? staff noeded to discharge properly- tho new duties and rosponsibilitios-plapod
upon the Bureau of Minos by Public Law 520, 79th Congress, approved July 23,
1946. This act authorizes tho Socrotary of interior and tho Socr:Aarios of
War and tho Navy to dotormine the quantity and quality of tho matorials to bo
stockpiled. To carry out this function the Buroau of Mines must bo-propamd'
to provid6 cOmprohensiVe data on foroign minorals for tho Use of this committoori
the Army and Navy-Munitions Board, cond the procurement agoncies. Curront informa?
tion on the availability of foroign minerals of accoptablo grade for stocktiling
must bo colloctod and preparod for. considcration in administoring tho stockpilo
program. .All of. the usual probloms of foreignprocuromnt aro involvCid and the
program differs fran tho wartimo work only in tho?mattor of timing. The esti-
matod cost of initiating tho improved sorvicu on an arnual basis is shown Ooloww
- Substantial incroascs in this appropriation -will bo noodod in future y6avs to
complete fully the above program.
PER01AL SEIVICES, DEPARTZ,LHAL
2 Forein Mnoral specialists (Rox.ional), P-6 at :4,102 ,20j,
1 Foroipm minoral spocialist (Roional), P-5 at r:5,905 5,905
3 international commodity spocialists, P-6 at 7,102. s 21,306
...
1 Intornational commodity specialist, P75 at :5,905 . 5,905
. .
1 Economic (Analyst, CAF-7 at ,.4,1100144# .3097
1 statisticql cic)rk, au-5 at.,645 .41,i owl,* ... 2,65
5 Clerks, CAF-4 at 2,39/4. 4 ' -4,4-4,4..4s.44.1p 11,970
5 Clorks,, CAF-3 at )2,168 : 4+*,.-4, 10,8/0
8 Clerks, CAF-2 at i1,95.4_ 4, ?414 irtri.4 ? 15,652
?
Total permanent, departmcrotal
Loss lapsed snlories
91 Porsonal Sorvicos (net)
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OTHER OELIGATIONS
02
Trawl ? ? ? ? ? 000000000
?
0
? ? ? 0
0 ? ? OOOOO * OOOOOO OOOOOOOOOO
4,000
04
ommuni ca-ol on s
0800
)u
06
Supplios v2nd matorials
OOO . OO Offii000
1,055
09
Equipnont.
?
1,J00
Total othor obliL;ations O 6,555
Total inor,,as-
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