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The original documents are located in Box 21, folder "1975/01/03 HR11796 Canada -
France - Hawaii Telescope Project" of the White House Records Office: Legislation Case
Files at the Gerald R. Ford Presidential Library.
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ACTION
APPROVED75 JAN 3-
Last Day: January 4
THE WHITE HOUSE
WASHINGTON
January 3, 1975
STED 1/4/75
ARCHLUES
1/6/75
MEMORANDUM FOR
THE PRESIDENT
FROM:
KEN COLE
SUBJECT:
H.R. 11796 - Canada-France-Hawaii
Telescope Project
Attached for your consideration is H.R. 11796, sponsored by
Representative Matsunaga and Representative Mink, which
provides for the duty-free entry of a telescope and associated
articles for the use of the Canada-France-Hawaii Telescope
Project at Manua Kea, Hawaii.
OMB recommends approval and provides additional background
information it its enrolled bill report (Tab A).
Max Friedersdorf (Loen) recommends approval. Phil Areeda
and Bill Seidman have no objection to the enrolled bill.
RECOMMENDATION
That you sign H.R. 11796 (Tab B).
SEALTH R. FORD
STATE UNITED OFFICE OF THE PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 3 0 1974
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 11796 - Canada-France-Hawaii
Telescope Project
Sponsor - Rep. Matsunaga (D) Hawaii and Rep. Mink
(D) Hawaii
Last Day for Action
January 4, 1975 - Saturday
Purpose
Provides for the duty-free entry of a telescope and associated
articles for the use of the Canada-France-Hawaii Telescope
Project at Mauna Kea, Hawaii.
Agency Recommendations
Office of Management and Budget
Approval
Department of State
Approval
National Aeronautics and
Space Administration
Approval
Office of the Special Representative
for Trade Negotiations
No objection (Informally)
Department of the Treasury
No objection
Department of Commerce
No objection
Department of Labor
No objection
National Science Foundation
No objection
Discussion
The Canada-France-Hawaii Telescope Project is a cooperative,
not-for-profit undertaking by the Centre National de la
Recherche Scientifique of France, the National Research
BERRLD
2
Council of Canada, and the University of Hawaii to construct
and operate a major telescope facility at Mauna Kea, Hawaii,
which, according to the National Aeronautics and Space Adminis-
tration and the National Science Foundation, may be one of
the best observing sites in the world.
In recognition of the predominant financial contributions
to the Project of the Canadian and French scientific agencies
(100 percent of the initial cost of construction and 85
percent of the maintenance costs thereafter), the agreement
signed by the three parties to the Project provides for the
maximum use of French and Canadian equipment, including the
telescope, its basic instrumentation, its dome and associated
buildings, and other high-technology components. For its
part, the University of Hawaii agreed to seek relief from
customs duties and other charges on all goods imported
specifically for use by the Project.
The enrolled bill would provide for the duty-free importation
of the telescope, and the laboratories, equipment, and instal-
lations required by the Canada-France-Hawaii Telescope Project
to complete the construction and provide for the operation
of the telescope in accordance with the agreement signed
by the three parties to the Project. Such duty-free treat-
ment would apply until June 30, 1980. The bill would also
permit articles entered for use by the Project prior to the
date of enactment to be accorded duty-free treatment if an
appropriate application therefore is filed within 120 days
after the date of enactment.
Although existing law provides procedures for obtaining duty-
free treatment for scientific and educational equipment not
available in the United States, both the House Ways and
Means Committee and the Senate Finance Committee supported
the exception to the general statutes which H.R. 11796
represents because of the unique nature of this joint,
international undertaking, the difficulty, if not the
impossibility, of using the detailed petitioning and approval
procedures for the duty-free entry of such articles under
existing law, and because of the real benefit of this project
to the scientific community in the U.S. and elsewhere.
Welford H Rounnal
Assistant Director for
+
Legislative Reference
GERALD
Enclosures
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 928
Date: December 30, 1974
Time: 10:00 p.m.
FOR ACTION: NSC/S NO oks
CC (for information): Warren Hendriks
Geoff Shepard
Jerry Jones
Max Friedersdorf oh
Jack Marsh
Phil Areeda no obj
Bill Seidman no bbj.
FROM THE STAFF SECRETARY
DUE: Date: Tuesday, December 31
Time: 1:00 p.m.
SUBJECT:
Enrolled Bill H.R. 11796 - Can&da-France-Hawaii
Telescope Project
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Pleaserethurn to Judy Johnston, Ground Floor West Wihgg
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
Roger Porter:
Here is the lost bill. May I please
have your vote as soon as possible
since this needs to go in today.
Thank you.
Judy Johnston X6570
no objection
1-2-75
ws
phoned
9.05.18
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC 3 0
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 11796 - Canada-France-Hawaii
Telescope Project
Sponsor - Rep. Matsunaga (D) Hawaii and Rep. Mink
(D) Hawaii
Last Day for Action
January 4, 1975 - Saturday
Purpose
Provides for the duty-free entry of a telescope and associated
articles for the use of the Canada-France-Hawaii Telescope
Project at Mauna Kea. Hawaii.
Agency Recommendations
Office of Management and Budget
Approval
Department of State
Approval
National Aeronautics and
Space Administration
Approval
Office of the Special Representative
for Trade Negotiations
No objection (Informally)
Department of the Treasury
No objection
Department of Commerce
No objection
Department of Labor
No objection
National Science Foundation
No objection
Discussion
The Canada-France-Hawaii Telescope Project is a cooperative,
not-for-profit undertaking by the Centre National de la
Recherche Scientifique of France, the National Research
THE WHITE HOUSE
WASHINGTON
MEMORANDUM FOR:
WARREN HENDRIKS
FROM: Vern Lien Lan for MAX L. FRIEDERSDORF
SUBJECT:
Action Memorandum - Log No. 928
The Office of Legislative Affairs concurs with the Agencies
that the enrolled bill should be signed.
Attachments
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.: 928
Date: December 30, 1974
Time:
10:00 p.m.
FOR ACTION: NSC/S
CC (for information):
Warren Hendriks
Geoff Shepard
Jerry Jones
Max Friedersdorf
Jack Marsh
Phil Areeda
FROM THE STAFF SECRETARY
DUE: Date: Tuesday, December 31
Time: 1:00 p.m.
SUBJECT:
Enrolled Bill H.R. 11796 - Canada-France-Hawaii
Telescope Project
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Propare Agenda and Brief
Draft Reply
For Your Comments
Draft Remarks
REMARKS:
Please return to Judy Johnston, Ground Floor West Wing
No Objection PAuL
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
It you have any questions or if you anticipate a
dolay in submitting the required material, please
Warren K.
iolenhone the Staff Scoretary immediately.
For the Prodicent
MEMORANDUM
NATIONAL SECURITY COUNCIL
6377
December 31, 1974
MEMORANDUM FOR WARREN K. HENDRIKS
FROM:
Jeanne W. Davis
AND
SUBJECT:
Enrolled Bill H.R. 11796
This is in response to your memorandum of December 30 (Log #928).
The NSC Staff has no objection to approval of Enrolled Bill H.R. 11796 --
Canada-France-Hawaii Telescope Project.
DEPARTMENT OF STATE
Washington, D.C. 20520
December 23, 1974
Honorable Roy L. Ash
Director,
Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Ash:
Referring to Mr. W. H. Rommel's communication of December 23,
1974, requesting Department of State views on H.R. 11796,
"An Act to provide for the duty free entry of a 3.60
meter telescope and associated articles for the use of
the Canada-France-Hawaii Telescope Project at Mauna Kea,
Hawaii" an Enrolled Bill, the Department of State
recommends the enactment of this Bill.
H.R. 11796 authorizes and directs the Secretary of the
Treasury to admit free of duty imported articles required
by the Canada-France-Hawaii Telescope Project to complete
the installation on Mauna Kea, Hawaii of an optical
telescope of 3.60 meters diameter, and the laboratories,
equipment and installations necessary for its operation.
The France-Canada-Hawaii telescope project is a valuable
international cooperative undertaking through which a
major astronomical observatory and facility of real
benefit to United States scientists is being established
in Hawaii through the joint efforts of Canada, France
and Hawaii. Approximately eighty five percent of the
total cost of approximately $20 million will be borne
by the governments of Canada and France. Much of this
cost lies in the value of the telescope and related
equipment to be installed in the observatory. These
items are largely the property of the governments of
Canada and France and must be imported. The remaining
costs are to be provided or absorbed by the State of
Hawaii. No Federal Government funds are committed to
this project.
It is the Department of State's understanding that
Hawaiian labor and material would be employed in con-
structing the facility. A non-profit corporation for
scientific and educational purposes, the Canada-France-
Hawaii Telescope Corporation, has been incorporated in
Hawaii to construct and operate the facility.
- 2 -
The Department of State supports the telescope project,
a unique undertaking in international cooperation and
supports the provisions of H.R. 11796 as enacted.
The success of this project is dependent on the ability
of Canada, France and Hawaii and the Telescope Corporation
to effectively utilize the unique assets contributed by
each; largely the telescope and ancillary equipment by
Canada and France and the site, attendant improvements
and construction by Hawaii, and management and operation
by the Corporation. H.R. 11796 by providing for the duty
free entry, will allow the Corporation to proceed with
the importation of articles and goods necessary to the
project which importation would have been substantially
impeded if not made impossible by duties, resulting in
loss of time and possibly of funds committed or obligated
in Canada and France. This project will ultimately
benefit significantly the scientific community in the US
and elsewhere, and should in the shorter term contribute
to employment and local industries in Hawaii. There are
no Administration proposals related or similar to H.R. 11796.
Sincerely yours,
Limmod Holton
Linwood Holton
Assistant Secretary for
Congressional Relations
AND
SPACE
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
A
WASHINGTON, D.C. 20546
NATIONAL
U.S.A
OFFICE OF THE ADMINISTRATOR
DEC 24 1974
Director
Office of Management and
Budget
Executive Office of the
President
Washington, D.C. 20503
Attention: Assistant Director
for Legislative Reference
Subject: Enrolled Enactment Report on
H.R. 11796, 93rd Congress
This is an Enrolled Enactment report on H.R. 11796, "To
provide for the duty-free entry of a 3.60 meter telescope
and associated articles for the use of the Canada-France-
Hawaii Telescope Project at Mauna Kea, Hawaii." It is
submitted pursuant to Mr. Wilfred H. Rommel's memorandum
of December 23, 1974.
The Enrolled Bill would authorize the Secretary of the
Treasury to admit free of duty imported articles required
by the Canada-France-Hawaii Telescope Project to complete
the installation on Mauna Kea, Hawaii, of an optical
telescope of 3.60 meters diameter, and the laboratories,
equipment, and installation necessary for its operation,
as provided for in a memorandum of understanding, signed
at Ottawa on October 25, 1973, among the Centre National
de la Recherche Scientifique of France, the National
Research Council of Canada, and the University of Hawaii.
It is our understanding that the Canada-France-Hawaii
Telescope Project is a cooperative effort in which Canadian
and French scientific agencies are funding the manufacture
of the instrument, which uses glass purchased in the United
States. In this circumstance, the usual concerns for the
protection of U.S. manufacturers do not appear to apply.
However, the import duties could be so high as to affect
the Project's prospects.
2
The establishment of the Canadian-French-Hawaiian 144-inch
telescope on Mauna Kea would provide the U.S. scientific
community, through the University of Hawaii, with observing
time on another major astronomical facility located at an
excellent observing site. The site may be one of the best
in the world. The establishment of this facility will be
of direct benefit to NASA for two reasons, both resulting
from the fact that a NASA-sponsored 88-inch telescope already
exists on the Mauna Kea site. Some of the University of
Hawaii observing time on the new 144-inch telescope (15% of
the total) will probably be used for programs of interest to
NASA, thus supplementing the capabilities of the smaller
88-inch NASA-Hawaii telescope. Secondly, the presence of
a second major instrument on the Mauna Kea site should result
in economies in the operation of the 88-inch NASA-Hawaii
telescope as many of the site operational costs will be
divided between the two major instruments. Presently, the
NASA-Hawaii telescope has had to carry the full costs of the
operation of the Mauna Kea site.
The National Aeronautics and Space Administration recommends
that the President approve the Enrolled Bill H.R. 11796.
Hele
James C. Fletcher
Administrator
OF
DEPARTMENT THE THE TREASURY
THE GENERAL COUNSEL OF THE TREASURY
WASHINGTON, D.C. 20220
1789
DEC 24 1974
Director, Office of Management and Budget
Executive Office of the President
Washington, D.C. 20503
Attention: Assistant Director for Legislative
Reference
Sir:
Your office has asked for the views of this Department on
the enrolled enactment of H.R. 11796, "To provide for the duty-free
entry of a 3.60 meter telescope and associated articles for the
use of the Canada-France-Hawaii Telescope Project at Mauna Kea,
Hawaii.'
The enrolled enactment would provide for the duty-free entry
of imported articles required by the Canada-France-Hawaii Telescope
Project to complete the installation of an optical telescope of
3.60 meter diameter, and the laboratories, equipment, and installations
necessary for its operation as provided in the memorandum of under-
standing signed by the sponsors of the project on October 25, 1973.
Duty-free entry would be granted to any article certified by the
Executive Director of the Canada-France-Hawaii Telescope Corporation
as being required for the completion of the project in accordance
with the memorandum of understanding. The categories and types of
articles contemplated to be imported are described in the memorandum
of understanding. The enrolled enactment would grant duty-free entry
with respect to articles entered, or withdrawn from warehouse, for
consumption on or before June 30, 1980.
It is our understanding that the articles would be imported
by or on behalf of the Canada-France-Hawaii Telescope Project, which
is a nonprofit corporation incorporated under the laws of Hawaii.
Costs for the project would be shared by Canadian and French scientific
agencies, and the University of Hawaii would provide the site for
the observatory and local support facilities.
The Department would have no objection to a recommendation that
the enrolled enactment be approved by the President.
Sincerely yours,
General Counsel
DEPARTMENT OF COMMERCE
THE UNDER SECRETARY OF COMMERCE
Washington, D.C. 20230
UNITED STATES OF AMERICA
DEC 27 1974
Honorable Roy L. Ash
Director, Office of Management
and Budget
Washington, D. C. 20503
Attention: Assistant Director for Legislative Reference
Dear Mr. Ash:
This is in reply to your request for the views of this Department
concerning H.R. 11796, an enrolled enactment
"To provide for the duty-free entry of a 3. 60 meter
telescope and associated articles for the use of
the Canada-France-Hawaii Telescope Project at
Mauna Kea, Hawaii. "
This Department would have no objection to approval by the President
of H.R. 11796.
Enactment of this legislation will not involve any increase in the
budgetary requirements of this Department.
Sincerely,
John K. Tabor
U.S. DEPARTMENT OF LABOR
OFFICE OF THE SECRETARY
WASHINGTON
DEC 26 1974
Honorable Roy Ash
:
Director, Office of
Management and Budget
Executive Office of the President
Washington, D. C. ; 20503
Dear Mr. Ash:
This is in response to the request of your office for
our views on the enrolled enactment of H.R. 11796, "To
provide for the duty-free entry of a 3.60 meter telescope
and associated articles for the use of the Canada-France-
Hawaii Telescope Project at Mauna Kea, Hawaii." This
Department would have no objection to the President's
approval of this measure.
Sincerely,
Peth JBreanna Secretary of Labor
NATIONAL SCIENCE FOUNDATION
WASHINGTON, D.C. 20550
nsf
OFFICE OF THE
December 26, 1974
DIRECTOR
Mr. Wilfred H. Rommel
Assistant Director for
Legislative Reference
Office of Management and Budget
Washington, D. C. 20503
Dear Mr. Rommel:
This is in reply to your request of December 23, 1974
for the views of the National Science Foundation on
Enrolled Bill H.R. 11796, "To provide for the duty-free
entry of a 3. 60 meter telescope and associated articles
for the use of the Canada-France-Hawaii Telescope
Project at Mauna Kea, Hawaii. "
The Foundation has no objection to approval of this
legislation by the President.
Paige
Acting Director
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
DEC
3
0
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 11796 - Canada-France-Hawaii
Telescope Project
Sponsor - Rep. Matsunaga (D) Hawaii and Rep. Mink
(D) Hawaii
Last Day for Action
January 4, 1975 - Saturday
Purpose
Provides for the duty-free entry of a telescope and associated
articles for the use of the Canada-France-Hawaii Telescope
Project at Mauna Kea, Hawaii.
Agency Recommendations
Office of Management and Budget
Approval
Department of State
Approval
National Aeronautics and
Space Administration
Approval
Office of the Special Representative
for Trade Negotiations
No objection (Informally)
Department of the Treasury
No objection
Department of Commerce
No objection
Department of Labor
No objection
National Science Foundation
No objection
Discussion
The Canada-France-Hawaii Telescope Project is a cooperative,
not-for-profit undertaking by the Centre National de la
Recherche Scientifique of France, the National Research
93D CONGRESS
HOUSE OF REPRESENTATIVES
REPORT
2d Session
No. 93-1213
DUTY-FREE ENTRY OF TELESCOPE AND ASSOCIATED
ARTICLES FOR CANADA-FRANCE-HAWAII TELESCOPE
PROJECT
JULY 24, 1974.-Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. MILLS, from the Committee on Ways and Means,
submitted the following
REPORT
[To accompany H.R. 11796]
The Committee on Ways and Means, to whom was referred the
bill (H.R. 11796) to provide for the free entry of a 3.60-meter tele-
scope for the use of the Canada-France-Hawaii telescope project at
Mauna Kea, Hawaii, having considered the same, reports favorably
thereon with amendments and recommends that the bill as amended
do pass.
The amendments are as follows:
Strike out all after the enacting clause and insert the following:
That (a) the Secretary of the Treasury is authorized and directed to admit free
of duty imported articles required by the Canada-France-Hawaii Telescope Proj-
ect to complete the installation on Mauna Kea, Hawaii, of an optical telescope of
3.60 meters diameter, and the laboratories, equipment, and installations necessary
for its operation, as provided for in a Memorandum of Understanding, signed at
Ottawa on October 25, 1973, among the Centre National de la Recherche Scien-
tifique of France, the National Research Council of Canada, and the University
of Hawaii.
(b) The admission free of duty provided for in subsection (a) shall be ac-
corded to any article imported by or for the account of the Canada-France-Hawaii
Telescope Project if such article is certified by the Executive Director or the
Associate Executive Director of the Canada-France-Hawaii Telescope Corpora-
tion as being required for the completion of the Project in accordance with the
Memorandum of Understanding referred to in subsection (a).
SEC. 2. (a) The provisions of the first section of this Act shall apply with re-
spect to articles entered, or withdrawn from warehouse, for consumption, on or
before June 30, 1980.
(b) Upon appropriate request therefor filed by the Executive Director or the
Associate Executive Director of the Canada-France-Hawaii Telescope Corpora-
tion with the customs officer concerned on or before the one hundred and twentieth
day after the date of the enactment of this Act, the entry or withdrawal of any
article described in the first section of this Act which was made before the date of
the enactment of this Act shall, notwithstanding the provisions of section 514 of
the Tariff Act of 1930 or any other provision of law, be liquidated or reliquidated
in accordance with the provisions of such first section.
38-006
2
3
Amend the title SO as to read:
A bill to provide for the duty-free entry of a 3.60 meter telescope and associated
"governmental authorities to grant, in accordance with applicable
articles for the use of the Canada-France-Hawaii Telescope Project at Mauna
laws, relief from taxes, including but not restricted to, customs duties,
Kea, Hawaii.
excise and sales taxes on all goods imported specifically for use in the
PURPOSE
realization of the project and its continuing operation."
H.R. 11796, as reported by your committee, will provide for the
The purpose of H.R. 11796, as reported, is to permit the duty-free
Juty-free entry of imported articles required by the Canada-France-
entry of a 3.60-meter telescope, and the laboratories, equipment, and
Hawaii telescope project. The duty-free entry is limited to the optical
installations necessary for its operation, in the Canada-France-Hawaii
telescope, and the laboratories, equipment, and installation necessary
telescope project at Mauna Kea, Hawaii.
for its operation, as provided in the memorandum of understanding,
signed at Ottawa on October 25, 1973, among the three agencies.
GENERAL STATEMENT
The committee has amended the bill to provide that duty-free entry
can only be accorded articles if certified by the executive director of
The Canada-France-Hawaii telescope project is a nonprofit interna-
the project (or associate executive director) as being required for the
tional cooperative undertaking by the Centre National de la Recherche
completion of the project in accordance with the memorandum of
Scientifique of France, the National Research Council of Canada, and
understanding.
the University of Hawaii. The memorandum of understanding among
In addition, the committee amended the bill to provide that the
these three agencies provides for the installation and development of
duty-free treatment shall not apply after June 30, 1980. As intended
a major astronomical observatory and facility at Mauna Kea, Hawaii.
by the bill as originally introduced, H.R. 11796, as reported, provides
According to the National Science Foundation, Mauna Kea, Hawaii,
that entries of articles made before the date of enactment may be ac-
"is one of the best optical telescope sites in the United States for sky
corded duty-free treatment upon appropriate request being filed. with
coverage, atmospheric clarity, and low level of interference from
the customs officer concerned.
human activities." The National Aeronautics and Space Administra-
Public Law 89-651 implements the so-called Florence Agreement
tion informed the committee that Mauna Key "may be one of the best
providing for the duty-free exchange of cultural, scientific, and edu-
(observing sites) in the world." In addition to providing astronomers
cational material. Under that law, Congress provided that scientific
in France and Canada with a unique site for an optical telescope, the
instruments imported for use by nonprofit institutions may be afforded
project will also benefit the U.S. scientific community, according to
duty-free entry if it is determined that no instrument of equivalent
both the National Science Foundation and the National Aeronautics
scientific value is available from domestic sources. By establishing
and Space Administration.
public policy and procedures regarding duty-free entry of scientific
Specifically, the memorandum of understanding provides that the
instruments for use by nonprofit institutions, Public Law 89-651 made
total cost of the construction of the project, including the telescope, its
it unnecessary to consider separate relief bills for nonprofit institu-
basic instrumentation, its dome, and associated buildings (approxi-
tions seeking to import free of duty scientific equipment not available
mately $20 million), is to be borne equally by the scientific agencies of
in the United States. In light of this public law, the committee has
France and Canada. The initial contribution of the University of
considered why the provision of Public Law 89-651 should not be
Hawaii will consist of a long-term lease of the site and provision
applied to the Canada-France-Hawaii telescope project.
of certain support services and facilities.
The committee has determined that the favorable consideration of
The memorandum of understanding also provides that once con-
H.R. 11796, as reported, is not a departure from public policy of Pub-
struction has been completed, operating costs will be shared as follows:
lic Law 89-651 due to the unique characteristics of the joint interna-
42.5 percent each for the Centre National de la Recherche Scientifique
tional undertaking involving scientific agencies in Canada and France
of France and the National Research Council of Canada, and 15 per-
and the cooperation, including the provision of the site for the obser-
cent for the University of Hawaii. Likewise, interests in the nonprofit
vatory, of the University of Hawaii. In addition, the size of the proj-
corporation established under the laws of the State of Hawaii to op-
ect and its development over an extended period of time make it most
erate the project are assigned to the three cooperating agencies on the
difficult, if not impossible, to use the detailed petitioning and approval
same proportional basis. A similar distribution of observation time on
procedures for the duty-free treatment of scientific instruments estab-
the telescope is provided.
lished by the Department of Commerce and the U.S. Customs Service
The predominant interests and contributions of the two scientific
under Public Law 89-651.
agencies of France and Canada in the project are also recognized by
The committee has received no objections to the enactment of H.R.
the memorandum of understanding in the special provisions.regarding
11796 from any interested party. Favorable reports were received on
the maximum use of French and Canadian industrial capacity in the
the bill from interested executive branch agencies, and the committee
design and construction of the telescope, its basic instrumentation, its
has amended the bill at the suggestions of the Departments of Treas-
dome, and associated buildings, and in the production of high-tech-
ury and Commerce to more closely conform the provisions of the bill
nology components. Related to this aspect of the project is H.R. 11796
to the intent of Public Law 89-651.
which carries out the commitment of the University of Hawaii to ask
Preliminary estimates furnished the committee relative to articles
to be entered under the provisions of H.R. 11796 indicate an estimated
4
5
value of $7.6 million. A listing of products which will be imported into
the United States for use in the telescope project is included below,
cedures reflect the principles enunciated in paragraph 6 below. Its
immediately following the memorandum of understanding.
decisions will be taken by majority vote, simple or other, as provided
In view of the likelihood that import duties existing under present
in its bylaws, provided that at least one of the diretcors named by
law would add unnecessary costs and complications to the project, the
each agency joins in that majority.
completion of which would be of real benefit to the American scien-
2. (c) That the Scientific Advisory Council shall be composed of
tific community, and in the interest of the international practice of
.4 representatives of CNRS
facilitating international scientific endeavors, your committee has
.4 representatives of NRC
favorably reported H.R. 11796, as amended.
.2 representatives of UH
and up to four others to be named by the Board of Directors.
MEMORANDUM OF UNDERSTANDING AMONG THE CENTRE NATIONAL
This Council is responsible for making recommendations to the
DE LA RECHERCHE SCIENTIFIQUE OF FRANCE, THE NATIONAL RE-
Board of Directors on all scientific and technical matters.
SEARCH COUNCIL OF CANADA AND THE UNIVERSITY OF HAWAII
2. (d) That, for the duration of a construction phase there shall be
a Project Officer and an Associate Project Officer to be named by the
Recognizing the increasing development of astronomical research
Agencies on the recommendation of the Board of Directors. The
and the quality and the quantity of related scientific work carried out
Project Officer and the Associate Project Officer will be jointly respon-
in the universities and specialized research centres of Canada, France,
sibile to the Board of Directors for carrying out the design and con-
and Hawaii.
struction activities. In particular, they must ensure that the equipment
Considering the need for instruments to be available for use by the
provided satisfies the requirements for its intended use and that the
astronomers of Canada, France, and Hawaii;
contractual procedures are consistent with paragraph 6 below.
Considering the desire of the astronomers of Canada, France, and
3. (a) That the CNRS and the NRC will provide work, components
Hawaii to carry on cooperative programmes of research;
and sums necessary for the construction of the telescope, its basic in-
Considering the desirability of developing international coopera-
strumentation, its dome and associated buildings. They will equally
tion in large-scale scientific undertakings;
share the cost and jointly assume responsibility for the design. The
The Centre National de la Recherche Scientifique (CNRS) of
total capital cost, including components and studies already in exist-
France, the National Research Council (NRC) of Canada, and the
ence will be 91 million French francs, as estimated on February 1,
University of Hawaii (UH), hereinafter referred to as the Agencies,
1973, providing the construction commences in 1973 and is completed
having obtained the approval as appropriate of their respective gov-
by 1977. The detailed technical specifications will be the subject of
ernments, that is those of France, of Canada, of the United States of
agreement between the CNRS and the NRC.
America and of the State of Hawaii, agree:
3. (b) That the UH will make available the land, roads and such
ancillary services as may be agreed upon by the three agencies as being
GENERAL PROVISIONS
necessary for the operation of the project, and for which the UH will
be responsible. A description of the facilities and services presently
1. To install on Mauna Kea, Hawaii, a large optical telescope of
contemplated by the UH in this connection is attached as Appendix B.
3.60 meters diameter, and the laboratories, equipment, and installa-
3. (c) That after the completion of the construction phase, the three
tions necessary for its operation, the general technical characteristics
agencies will contribute annually funds up to one million dollars US,
of which are attached as Appendix A.
as estimated on February 1, 1973, with appropriate provision for vari-
2. (a) To ensure the establishment of a non-profit corporation that
ation in the cost of living, in the proportion of CNRS 42.5 percent,
will be known as the Canada-France-Hawai Telescope Corporation,
NRC 42.5 percent, and UH 15 percent. The funds will include neces-
and that will be responsible for the construction and operation. of the
sary expenses for meetings of the Board and the Council, staffing and
telescope, its ancillary installations and apparatus. The Corporation
operating the telescope, and for developing further its instrumenta-
will be directed by a Board of Directors assisted by a Scientific Advi-
sory Council. Intergovernmental arrangements will necessarily pre-
tion. Before the end of the construction phase, some similar costs may
be incurred, and these costs will be shared in the same proportions;
cede the establishment of such a corporation.
2. (b) That the Corporation shall have a Board of Directors com-
however, in consideration of the other operating contributions by the
UH, no cash contributions will be required from the UH before July 1,
posed of
1975. The date on which the construction phase will be considered as
.4 representatives of CNRS
completed will depend on the date set for commencement of the tele-
.4 representatives of NRC
scope's normal operation. This date of completion of the construction
.2 representatives of UH
phase will be determined by the Board of Directors in agreement with
to be named by their respective Agencies.
The Board of Directors will be charged with coordination on tech-
each of the three Agencies.
nical and administrative problems, and, in particular, must ensure
3. (d) That the operating cost for the Project Officer, the Associate
that the design of the telescope and its ancillary installations will
Project Officer and their personnel will be shared equally by the NRC
satisfy the needs of the astronomers, and see that the contractual pro-
and the CNRS, within limits to be determined, until the completion
of the construction phase as defined above.
6
7
4. That in consideration of their respective contributions, the three
Agencies will receive equitable interest in the Corporation as follows:
(c) the interim organization will include the following:
CNRS, 42.5 percent.
(i) an interim Board of Directors composed of
NRC, 42.5 percent.
.4 representatives of CNRS
UH, 15.0 percent.
.4 representatives of NRC
5. That their respective contributions entitle them to averaged ob-
.2 representatives of UH
to be named by their respective agencies.
servation time in the following proportion
The interim Board of Directors will be charged with co-
CNRS, 42.5 percent.
ordination on technical and administrative problems and with
NRC, 42.5 percent.
drafting the necessary interagency arrangements, as well as
UH, 15.0 percent.
the articles of incorporation and bylaws of the corporation.
Its recommendations must receive approval from each of the
SPECIAL PROVISIONS
three agencies. In particular the interim Board of Directors
6. That, in as equal a fashion as possible, maximum use will be made
must ensure that the design of the telescope and its ancillary
of French and Canadian industrial capacity in the design and con-
installations will satisfy the needs of the astronomers and see
struction of the telescope, its basic instrumentation, its dome and
that the contractual procedures reflect the principles enunci-
associated buildings, and in the production of high-technology
ated in paragraph 6 above.
components.
(ii) an interim Scientific Advisory Council composed of
7. That the Agencies will ask their respective governmental author-
.4 representatives of CNRS
ities to grant, in accordance with applicable laws, relief from taxes,
.4 representatives of NRC
including but not restricted to, customs duties, excise and sales taxes
.2 representatives of UH
on all goods imported specifically for use in the realization of the
to be named by their respective agencies.
project and its continuing operation.
This interim Council is responsible for making recom-
8. That the Agencies will request their appropriate governmental
mendations to the interim Board of Directors on all scientific
authorities to facilitate, in accordance with applicable laws, the free
and technical matters.
movement and residence of persons who are participating in the
(iii) A project officer and an associate project officer to be
project, as well as their families and effects.
named by the agencies on the recommendation of the interim
9. That, until July 1, 1975, UH will cover the travel and mainte-
Board of Directors. The project officer and the associate
nance costs of its representatives engaged in activities associated with
project officer will be jointly responsible to the interim Board
the project.
of Directors for carrying out the design and construction
10. That, in order to ensure the availability, should the need arise,
activities. In particular they must ensure that the equipment
of a system for the settlement of disputes concerning the interpreta-
provided satisfies the requirements for its intended use and
tion or application of this Memorandum of Understanding which can
that the contractual procedures are consistent with paragraph
not be resolved by the agencies, such a dispute shall at the request of
6 above. Following the establishment of the corporation the
any agency be submitted to a tribunal of arbitration.
project officer and the associate project officer may be recon-
Such a tribunal shall be constituted for each individual case as
firmed in their posts by the Board of Directors.
follows: each agency shall appoint two members, and these six mem-
bers shall jointly propose another member as their chairman, to be
FINAL PROVISIONS
appointed jointly by CNRS, NRC and UH. Details of the procedure
of arbitration are set out in Appendix C.
12. That, after the completion of construction of the telescope and
the laboratories equipment and installations necessary for its opera-
tion and in any case not more than five years from the date of the
INTERIM PROVISIONS
signature of the Memorandum of Understanding and every five years
11. That an interim phase will be needed in order to commence the
thereafter authorized representatives of the agencies shall meet in
construction of the telescope and its ancillary installations as soon as
Hawaii or such other place as may be mutually agreed upon to ex-
possible and that an interim organization will be created based on the
amine if it would be required to propose modifications to the texts and
provisions of paragraph 2 above and detailed hereunder:
agreements in force.
(a) the interim phase will start when an interim Board of
Signed at Ottawa, on October 25, 1973, in six copies, three in English
Directors has been named and will finish when all the necessary
and three in French, the texts in both languages having equal validity.
agreements have been concluded and the corporation has been
By
,
established.
(For the Centre National de la Recherche Scientifique).
(b) during the interim phase each agency will meet the travel
and maintenance costs of its representatives engaged in activities
By
,
associated with the project.
(For the National Research Council of Canada).
By
,
(For the University of Hawaii).
APPENDIX A
APPENDIX B
TECHNICAL CHARACTERSITICS OF THE PROPOSED TELESCOPE
Optical parameters
FACILITIES AND SERVICES PLANNED BY THE UNIVERSITY OF HAWAII
The telescope will have a primary mirror of CERVIT material of
outside diameter 3.60 metre and will have a focal length correspond-
The following is a brief description of those facilites and services
planned by UH or in existence which are relevant to the operation of
ing to an aperture ratio of approximately 3.8, and the figure of the
the astronomical installation on Mauna Kea.
primary mirror will be parabolic.
The telescope will have several secondary mirrors, the largest of
Land Lease
which will give an effective aperture ratio of approximately 8.0 at the
In order to ensure the integrity of the mountain for astronomical
Cassegrain focus.
use the State of Hawaii granted General Lease No. S4191 to the Uni-
Other secondary mirrors will provide coudé foci and an infra-red
versity of Hawaii for an area of 13,321 acres of an essentially circular
Cassegrain focus. Other Cassegrain mirrors may be added later.
shape of radius 2.5 miles and centered on the summit of Mauna Kea.
Mechanical description
The lease runs from 1 January 1968 and terminates on 31 December
2033. The lease area extends approximately to the 12,000 foot contour.
The mounting will be of the "horse-shoe" type similar to the well-
known Palomar 200" telescope which is of proven design and very
Access Road
suitable to low latitudes. However, modern developments such as
A. Lower Section
upper-end exchanges and computer controlled devices will be included.
In February, 1973 construction began on a paved road of 6.3 miles
Instrumentation
length leading from the Saddle Road, a State highway, to the Hale
Appropriate instrumentation to carry effective astronomical research
Pohaku which is at 9,200 ft. elevation on Mauna Kea. This road,
at the frontier of astronomy will be provided.
costing $2.4 million, will be negotiable to ordinary passenger vehicles.
Completion is scheduled for February, 1974.
Enclosure
The telescope will be enclosed in a dome and supported on a suit-
B. Upper Section
able pillar which will also support the coudé spectrograph. The work-
Design is well advanced on a new access route from Hale Pohaku
shop, laboratories and other necessary facilities required will be in an
to the summit of Mauna Kea. Construction funds, estimated at $3 mil-
underground building near the dome.
lion, are being sought in the 1973 budget request now before the State
Legislature. If this request is approved, construction could be com-
(8)
pleted by early 1975 providing no delays are encountered in letting
the necessary contracts.
Mid-Elevation Support Building
Architectural design began in January, 1973 on a group of buildings
to be erected on a site at 8,000 ft. elevation on Mauna Kea. These
buildings are to provide a supporting facility for activities at the
summit. Included will be one building with office and laboratory space,
a kitchen and a dining room, a reading room, and some storage areas.
A separate structure will accommodate at least 20 people. A set of 5
family dwellings is envisaged as housing for permanent staff. A
maintenance shop is also to be provided for minor upkeep of vehicular,
mechanical and electrical equipment. Funds in the sum of $686,000
are available for this project.
Utilities
A. Electrical Power
The sum of $842,600 has been appropriated for construction of a 750
kw power line to carry main power to the mid-elevation buildings and
(9)
10
to the summit. This power line is under design for projected comple-
tion in 1974.
B. Water
Plans for the mid-elevation buildings call for a feasibility study
for a piped, fresh water supply from a spring higher on the mountain.
APPENDIX C
It is not planned to supply a water line to the summit.
PROCEDURE OF ARBITRATION
C. Telephones
Mauna Kea is directly connected via microwave links to the Hawai-
All members of the tribunal shall be appointed within two months
ian Telephone Company System. Similar connections for the mid-
after any agency has informed the other agencies that it wishes to
elevation buildings are planned.
submit the dispute to a tribunal of arbitration.
If the two month period specified above has not been observed, any
Sea-Level Support Facilities
agency may in the absence of any other relevant agreement invite the
An appropriation of $24,000 made in 1971 allows for design of a
President of the International Court of Justice to make the appoint-
support facility planned for construction on the Hilo Campus. Spe-
ments necessary to fill any positions vacant on the tribunal at the end
cifications for this building are quite open at this time. The University
of that period.
intends to make definite plans during 1973. No construction money is
The tribunal shall determine the place or places where it shall sit, its
available.
own procedures and all other administrative matters. The decision of
Manoa Campus
the tribunal shall be by majority vote.
The new building to house the Institute for Astronomy of the Uni-
The tribunal shall make its decision as promptly as possible
versity of Hawaii is under construction at the University's Manoa
and in any case no later than three months from the date of its
Campus. This facility of 61,500 sq. ft. is to contain offices, data reduc-
establishment.
tion areas, library, shops and laboratories. Completion is scheduled
The tribunal shall transmit a certified copy of its findings including
for mid-1974. The Institute plans to make office space available in the
the decision and the reasons for it to each agency. Each agency shall
building for both short and long-term visitors among whom are ex-
bear the costs for its own members on the tribunal of arbitration and
pected to be colleagues from France and Canada associated with the
of its representatives in the tribunal's proceedings. The costs of the
Mauna Kea 3.60 m Telescope.
chairman and the remaining costs shall be borne in equal parts by the
agencies unless the tribunal otherwise decides. The decision of the
tribunal shall be final and binding.
Canada-France-Hawaii telescope-Estimate of articles to be imported into the
United States
Estimated value
Telescope 2 (including mirrors, drives, control, field monitoring and
automatic guiding systems)
3 $3, 604, 000
Aluminizing tank :
Vacuum equipment
80, 000
Electrical equipment
60,000
Measuring devices
20, 000
Tank
140,000
Total
300, 000
Instrumentation (spectrography and photometers)
1. 700, 000
Building (prefabricated steel structure to be assembled at the site)
4
150, 000
Dome
Steel structure
200, 000
Aluminum sheeting
380, 000
Machinery
570, 000
Total
5 1, 150, 000
(11)
12
13
Canada-France-Hawaii telescope-Estimate of articles to be imported into the
EFFECT ON THE REVENUES OF THE BILL AND VOTE OF THE COMMITTEE
United States-Continued
IN REPORTING THE BILL
Dome-Continued
Handling equipment
6 510, 000
In compliance with clause 7 of rule XIII of the Rules of the House
(a) 30-ton telescope installation crane.
of Representatives, the following statement is made relative to the
(b) 15-ton aluminizing crane in Core Bldg.
(c) 2 1-ton A-frame hoists.
effect on the revenues of this bill Your committee estimates that the
(d) Overhead dome crane; prime focus cage (elevator) ; han-
provisions of this bill will result in a loss of revenue of no more than
dling ring for telescope upper ends.
$1.3 million.
(e) 15-ton mirror carriage (lowest floor).
In compliance with clause 27 (b) of rule XI of the Rules of the
(f) 40-ton mirror carriage (15-ton mirror, 15-ton adjusting
mechanism, 10-ton carriage).
House of Representatives, the following statement is made relative
(g) Cassegrain platform (excluding external controls).
to the vote by the committee in reporting the bill: Your committee
(h) Cherry picker for dome maintenance.
was unanimous in favorably reporting H.R. 11796 as amended.
Shop equipment (metal-working machine tools)
' 200,000
Total
8 7, 614, 000
1 The figures herein are estimates and are subject to modification, e.g. fluctuations can
occur in the value of the foreign currencies involved, in labor costs, and in the value
of components which must be acquired through competitive bidding.
2 An Itemization of telescope parts is attached. (Annex A.)
3 The total estimated cost of the telescope is $3,744,000 less the value of certain motors,
encoders and a minicomputer that will be purchased in the United States at an estimated
cost of $140,000.
Local labor for site erection is estimated at $420,000.
In addition, the CFH telescope project will purchase a data acquisition computer in
the United States at an estimated cost of $250,000.
4 The estimated value of the building excludes such items as the foundation, paint, con-
crete, plumbing, electrical and air conditioning equipment, interior partitions, furniture
and other furnishings all of which will be purchased in the United States at an estimated
cost of $2,850,000.
5 This figure does not include the costs of local labor to be used in building construction
at the site which is estimated at $830,000.
0 This figure does not include costs of local labor to be used for installation of handling
equipment at the site which is estimated at $150,000.
7 This figure does not include the costs of electronic and darkroom equipment which will
be purchased in the United States at an estimated cost of $200,000.
8 In addition to the estimated value of articles to be imported, it is projected that the
CFH telescope project will expend approximately $5,574,000 for domestically manufactured
articles and local labor in the United States.
ANNEX A
Canada-France-Hawaii telescope: Estimate of articles to be imported into the
United States
Primary mirror:
Estimated value
Blank (manufactured in the United States, purchased in 1970)
$634, 000
Polishing (added value)
200,000
Cassegrain mirror and other optics
Blanks (to be purchased in the United States)
100,000
Polishing (added value)
150,000
Telescope mounting
Mounting and accessories
11, 680, 000
Gears
1
240,000
Drive and control
Motors (to be purchased in the United States)
40,000
Encoders (to be purchased in the United States)
40,000
Computer (to be purchased in the United States)
60,000
Commutators
40,000
Console and handsets
100,000
Amplifiers for drive motors
20,000
Multiplexing units
40,000
Guiding heads and closer-circuit TV
400,000
Total
3,744,000
1 These figures do not include assembly and testing in shop, crating and shipping which
are estimated at $860,000, nor erection at the site (U.S. labor) which is estimated at
$420,000.
NOTE.-All costs estimated in French francs are converted into U.S. dollars at the rate
of $1=5F.
Calendar No. 1282
93D CONGRESS
SENATE
REPORT
2d Session
No. 93-1355
DUTY-FREE ENTRY OF TELESCOPE AND ASSOCIATED
ARTICLES FOR CANADA-FRANCE-HAWAIL TELESCOPE
PROJECT
DECEMBER 14, 1974.-Ordered to be printed
Mr. LONG, from the Committee on Finance,
submitted the following
REPORT
[To accompany H.R. 11796]
The Committee on Finance, to which was referred the bill (H.R.
11796) to provide for the duty-free entry of a 3.60 meter telescope and
associated articles for the use of the Canada-France-Hawaii Tele-
scope Project at Mauna Kea, Hawaii, having considered the same,
reports favorably thereon with amendments and recommends that
the bill as amended do pass.
I. SUMMARY
House bill.-The House bill would permit the duty free entry of a
3.60 meter telescope and associated articles for the use of the Canada-
France-Hawaii telescope project at Mauna Kea, Hawaii.
Committee bill.-The committee adopted two amendments. One
committee amendment would suspend until June 30, 1977, the duty on
zinc-bearing ores and certain other zinc bearing materials, including
zinc waste and scrap. The second committee amendment would amend
the gift exemption provisions of the Tariff Schedules to prohibit non-
residents from importing alcoholic beverages and cigarettes duty
free into the United States for gift purposes and would bring U.S.
customs regulations for residents and nonresident into conformity with
the treatment presently accorded U.S. travelers to Canada.
II. GENERAL STATEMENT
A. DUTY-FREE ENTRY OF A TELESCOPE
The purpose of H.R. 11796, as passed by the House, is to permit the
duty-free entry of a 3.60-meter telescope, and the laboratories, equip-
38-010
3
2
The bill provides that duty-free entry can only be accorded articles
if certified by the executive director of the project (or associate direc-
ment, and installations necessary for its operation, in the Canada-
tor) as being required for the completion of the project in accordance
France-Hawaii telescope project at Mauna Kea, Hawaii.
with the memorandum of understanding.
The Canada-France-Hawaii telescope project is a nonprofit interna-
In addition, the bill provides that the duty-free treatment shall not
tional cooperative undertaking by the Centre National de la Recherche
apply after June 30, 1980. As intended by the bill as originally intro-
Scientifique of France, the National Research Council of Canada, and
duced, H.R. 11796, as reported, provides that entries of articles made
the University of Hawaii. The memorandum of understanding among
before the date of enactment may be accorded duty-free treatment
these three agencies provides for the installation and development of
upon appropriate request being filed with the customs officer concerned.
a major astronomical observatory and facility at Mauna Kea, Hawaii.
Public Law 89-651 implements the so-called Florence Agreement
According to the National Science Foundation, Mauna Kea, Hawaii,
providing for the duty-free exchange of cultural, scientific, and edu-
"is one of the best optical telescope sites in the United States for sky
cational material. Under that law, Congress provided that scientific
coverage, atmospheric clarity, and low level of interference from
instruments imported for use by nonprofit institutions may be afforded
human activities." The National Aeronautics and Space Administra-
duty-free entry if it is determined that no instrument of equivalent
tion informed the committee that Mauna Kea "may be one of the best
scientific value is available from domestic sources. By establishing
(observing sites) in the world." In addition to providing astronomers
in France and Canada with a unique site for an optical telescope, the
instruments for use by nonprofit institutions, Public Law 89-651 made
public policy and procedures regarding duty-free entry of scientific
project will also benefit the U.S. scientific community, according to
it unnecessary to consider separate relief bills for nonprofit institu-
both the National Science Foundation and the National Aeronautics
tions seeking to import free of duty scientific equipment not available
and Space Administration.
in the United States. In light of this public law, the committee has
Specifically, the memorandum of understanding provides that the
considered why the provision of Public Law 89-651 should not be
total cost of the construction of the project, including the telescope, its
applied to the Canada-France-Hawaii telescope project.
basic instrumentation, its dome, and associated buildings (approxi-
The committee has determined that the favorable consideration of
mately $20 million), is to be borne equally by the scientific agencies of
H.R. 11796, as reported, is not a departure from public policy of Pub-
France and Canada. The initial contribution of the University of
lic Law 89-651 due to the unique characteristics of the joint interna-
Hawaii will consist of a long-term lease of the site and provision
tional undertaking involving scientific agencies in Canada and France
of certain support services and facilities.
and the cooperation, including the provision of the site for the observ-
The memorandum of understanding also provides that once con-
atory, of the University of Hawaii. In addition, the size of the proj-
struction has been completed, operating costs will be shared as follows:
ect and its development over an extended period of time make it most
42.5 percent each for the Centre National de la Recherche Scientifique
difficult, if not impossible, to use the detailed petitioning and approval
of France and the National Research Council of Canada, and 15 per-
procedures for the duty-free treatment of scientific instruments estab-
cent for the University of Hawaii. Likewise, interests in the nonprofit
lished by the Department of Commerce and the U.S. Customs Service
corporation established under the laws of the State of Hawaii to op-
under Public Law 89-651.
erate the project are assigned to the three cooperating agencies on the
The committee has received no objections to the enactment of H.R.
same proportional basis. A similar distribution of observation time on
11796 from any interested party. Favorable reports were received on
the telescope is provided.
the bill from interested executive branch agencies, and the committee
The predominant interests and contributions of the two scientific
has amended the bill at the suggestions of the Departments of Treas-
agencies of France and Canada in the project are also recognized by
ury and Commerce to more closely conform the provisions of the bill
the memorandum of understanding in the special provisions regarding
to the intent of Public Law 89-651.
the maximum use of French and Canadian industrial capacity in the
Preliminary estimates furnished the committee relative to articles
design and construction of the telescope, its basic instrumentation, its
to be entered under the provisions of H.R. 11796 indicate an estimated
dome, and associated buildings, and in the production of high-tech-
value of $7.6 million. A listing of products which will be imported into
nology components. Related to this aspect of the project is H.R. 11796
the United States for use in the telescope project is included below,
which carries out the commitment of the University of Hawaii to ask
immediately following the memorandum of understanding.
"governmental authorities to grant, in accordance with applicable
In view of the likelihood that import duties existing under present
laws, relief from taxes, including but not restricted to, customs duties,
law would add unnecessary costs and complications to the project, the
excise and sales taxes on all goods imported specifically for use in the
completion of which would be of real benefit to the American scien-
realization of the project and its continuing operation."
tific community, and in the interest of the international practice of
H.R. 11796, as reported by the committee, will provide for the
facilitating international scientific endeavors, the committee has
duty-free entry of imported articles required by the Canada-France-
favorably reported H.R. 11796, as amended.
Hawaii telescope project. The duty-free entry is limited to the optical
telescope, and the laboratories, equipment, and installation necessary
for its operation, as provided in the memorandum of understanding,
signed at Ottawa on October 25, 1973, among the three agencies.
S.R. 1355
S.R. 1355
4
5
B. SUSPENSION OF DUTY ON CERTAIN FORMS OF ZINC
creased 203,000 tons, or 64 percent. Moreover, the committee is further
In the period 1969-1973, the U.S. demand for slab zinc metal in-
advised that had not large quantities of zinc been released from the
creased from 1.4 million tons in 1969 to 1.5 million tons in 1973. During
Government stockpiles in that year, imports of metal probably would
this same period, U.S. production of slab zinc metal declined from 1.1
have exceeded the previous year's imports by more than 140 percent.
million tons in 1969 to 688,000 tons in 1973. The decline in U.S. produc-
The committee is assured that suspension of the duty for the tempo-
tion was caused by the closures of several smelters in the United States.
rary period provided in this bill will not adversely affect domestic
These closures resulted from a number of interrelated factors such as
zinc mines. No unfavorable reports or comments were received by the
high production costs, plant and technology obsolescence, environ-
committee on the bill.
mental control regulations and a lack of zinc ores and concentrates.
Within the last year, certain U.S. firms have announced their inten-
C. DUTY EXEMPTION FOR ALCOHOLIC BEVERAGES AND CIGARETTES BROUGHT
tions to construct large technologically advanced zinc smelters in the
INTO THE UNITED STATES
United States. These plants would smelt both domestic and imported
The purpose of the committee amendment is to equalize the per-
zinc ores and concentrates.
sonal liquor and cigarette duty exemption for returning residents and
Historically, imported zinc ores and concentrates have been used to
nonresidents. The amendment would amend Section 812.25 of the
a significant degree in the production of slab zinc in the United States.
Tariff Schedules of the United States (relating to nonresident exemp-
In 1969, about 54 percent of U.S. production of slab zinc was smelted
tions) to eliminate alcoholic beverages and cigarettes from the cate-
from foreign ores and concentrates compared to only 29 percent in
gory of articles a nonresident can import duty-free under his $100
1973. One of the primary reasons for this decline in the imports of
exemption for bona fide gifts. The items he or she could bring in free
zinc ores and concentrates in relationship to the needs of the existing
of duty for his or her personal consumption would not be affected.
and proposed U.S. zinc smelters is the U.S. tariff on zinc ores and
The amendment would also change Section 813.30 of the Tariff Sched-
concentrates and other zinc-bearing materials. Zinc ores and concen-
ules to limit the number of cigarettes that could accompany a return-
trates are imported duty free into other major zinc metal-producing
ing American resident to 200 (one carton). The amendment would also
countries. Thus, the U.S. tariff places both the existing and proposed
U.S. smelters at a competitive disadvantage in purchasing zinc ores
cut this number of duty free cigarettes a nonresident could enter for
his own use from 300 to 200. Item 813.10 of the Tariff Schedules
and concentrates on the world market.
would be amended to provide that citizens of the United States who
The committee amendment would end this tariff related competitive
are residents of American Samoa, Guam, or the Virgin Islands. shall
disadvantage of domestic smelters for the temporary period provided
in the bill. The Committee amendment would amend the Appendix of
be treated as residents for the purposes of the applying these items of
The Tariff Schedules.
the Tariff Schedules of the United States (TSUS) to suspend until
The changes proposed by the Committee amendment would in effect
the close of June 30, 1977, under rate column numbered 1 (applicable
limit all travellers entering the United States to the duty free pur-
to imports from countries accorded most-favored-nation treatment)
chase of one bottle of liquor and one carton of cigarettes. (The only
the duty on zinc-bearing ores provided for in TSUS item 602.20, zinc
exception would be in the case of residents returning from the Virgin
dross and zinc skimmings provided for in item 603.30, the zinc content
Islands, Guam, or American Samoa, whose one gallon duty free ex-
of other metal-bearing materials provided for in items 603.49, 603.50,
emption would be permitted to continue.)
603.54, and 603.55, and zinc waste and scrap provided for in item
When Congress amended Sections 813.30 and 813.31 of the Tariff
626.10. The rate column numbered 1 duty on the zinc content of zinc-
Schedules in 1965, to reduce the personal exemption for alcoholic bev-
bearing ores and other zinc-bearing materials is currently 0.67c per
erages allowed returning U.S. residents from one gallon to one quart,
pound and on zinc dross and skimmings is 0.75c per pound. On the
it neglected to make a corresponding adjustment in the exemption
basis of 1972 import data, the ad valorem equivalent of these duties
allowed nonresident visitors. Under present law, Section 812.25, a non-
ranges from 6 to 20 percent, depending on the zinc content and, in
resident who intends to remain in the United States for more than 72
turn, the price of the zinc-bearing material. The column numbered 2
hours and has not made a previous visit in the preceding six months,
duties (applicable to imports from Communist countries, except
has a duty-free personal exemption of one quart of alcoholic beverages
Poland and Yugoslavia) would remain unchanged. These duties are
for his personal consumption, and five fifths to be disposed by him
1.67c per pound on zinc-bearing ores and other zinc-bearing materials
as bona fide gifts, as long as the total value of the beverages stays
and 1.5c per pound on zinc dross and skimmings.
within the overall $100 personal exemption he is allowed. Alterna-
The committee believes that its amendment will assist in maintain-
tively, he can bring in up to $100 in cigarettes, duty free, to be disposed
ing and improving the position of U.S. smelters vis-a-vis foreign
of as gifts, or a combination of liquor and cigarettes not to exceed
smelters; thereby reversing the increasing dependence of this country
$100.
on imports of zinc metal as distinguished from ores and concentrates.
Until now, this discrepancy has not threatened to complicate cus-
According to statistics provided by the Department of the Interior,
toms inspection at points of entry. Most non-residents making pur-
imports of zinc in ore and concentrate declined 88,000 tons, or 26 per-
chases at duty-free shops at foreign airports, prior to coming to the
cent, in 1972 from the previous year, while imports of zinc metal in-
U.S., have not taken advantage of the five fifths liquor exemption or
S.R. 1355
S.R. 1355
6
7
the $100 cigarette exemption, either because they are unaware of it
or because of the difficulty in carrying this much liquor or cigarettes
on an air journey with them. Nonresidents arriving by automobile
be incurred in carrying out this bill and the effect on the revenues of
must come from either Canada or Mexico, both countries in which
the bill. The committee estimates that the provisions of this bill deal-
liquor and cigarette prices for the popular brands are as high or higher
ing with the duty free entry. of the telescope will result in a loss of
than in the United States. Since neither country has had duty-free
revenue of no more than $1.3 million. The committee estimates that the
shops on their side of the border, it did not pay for nonresidents to
revenue loss resulting from the duty suspension on zinc-bearing ores
purchase these products before entering the United States by auto.
and certain zinc-bearing materials in the first full year would be
For these reasons, the Customs Service has not felt it necessary to
approximately $3.1 million. The committee estimates that no revenue
physically distinguish residents from nonresidents in making inspec-
loss would arise as a result of proposed changes in the personal ex-
tions for these goods. Oral declarations have been accepted, and no
emption for gifts of alcoholic beverages and cigarettes.
effort has had to be made to police the requirement that liquor and
tobacco imported free of duty by visiting nonresidents must be bona-
IV. VOTE OF COMMITTEE ON REPORTING THE BILL
fide gifts.
This situation is about to change radically. The government of
In compliance with section 133 of the Legislative Reorganization
Canada has recently authorized the establishment of duty-free shops
Act, as amended, the following statement is made relative to the vote
at all highway points on the U.S.-Canadian border, and such stores
of the committee on reporting the bill. This bill was ordered favorably
will begin operating as early as next summer.
reported by the committee without a rollcall vote and without
In Fiscal 1972, almost five million persons and over two million
objection.
V. CHANGES IN EXISTING LAW
vehicles entered the United States at the ten most heavily-used border
points. This traffic was a 70% increase in volume over FY 1960. The
In the opinion of the subcommittee it is necessary, in order to ex-
total number of entrees from all Canadian points last year was in ex-
cess of 65 million.
pedite the business of the Senate, to dispense with the requirements of
subsection 4 of rule XXIX of the Standing Rules of the Senate (re-
Under the current provisions of our tariff law, once such stores
lating to the showing of changes, in existing law made by the bill, as
begin operating, every Canadian citizen or other foreign resident over
21 years of age will have the opportunity to purchase at these stores up
reported).
to six bottles of liquor (one quart for personal use, five fifths for
"gifts") and an unlimited number of cigarettes on their way into the
U.S. These purchases can be made free to U.S. duty and Canadian
excise tax, and thus at approximately 50% of the U.S. prices.
Once such purchases are brought into the U.S., there is nothing to
prevent them from being surreptitiously sold or bartered for mer-
chandise at U.S. stores, in violation of both the tariff law and revenue
laws of the several states. For example at Champlain, New York, the
most frequently used entry point from Quebec, where 1.4 million ve-
hicles and 3.4 million people entered in FY 1972, many Canadian citi-
zens regularly cross the border once a week to do their grocery shop-
ping in nearby Plattsburgh, New York. A Canadian couple bound for
Plattsburgh could, under the present exemption, purchase twelve bot-
tles of scotch at the Quebec duty-free stores for approximately $42.00.
Those same bottles retail in New York State for $84.00, a considerable
profit upon resale or barter. The temptation to abuse the "bona-fide
gifts" requirement would be strong, especially since no effort is now
made to enforce compliance with this requirement except through
brief oral declaration.
No unfavorable comments have been received by the committee on
this amendment.
III. COSTS OF CARRYING OUT THE BILL AND EFFECT ON THE
REVENUES OF THE BILL
In compliance with section 252 (a) of the Legislative Reorganization
Act of 1970, the following statement is made relative to the costs to
S.R. 1355
S.R. 1355
H. R. 11796
SERATE
Ninety-third Congress of the United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday, the twenty-first day of January,
one thousand nine hundred and seventy-four
An Act
To provide for the duty-free entry of a 3.60 meter telescope and associated
articles for the use of the Canada-France-Hawai Telescope Project at Mauna
Kea, Hawaii.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That (a) the Sec-
retary of the Treasury is authorized and directed to admit free of
duty imported articles required by the Canada-France-Hawaii Tele-
scope Project to complete the installation on Mauna Kea, Hawaii, of
an optical telescope of 3.60 meters diameter, and the laboratories,
equipment, and installations necessary for its operation, as provided
for in a memorandum of understanding, signed at Ottawa on Octo-
ber 25, 1973, among the Centre National de la Recherche Scientifique
of France, the National Research Council of Canada, and the Univer-
sity of Hawaii.
(b) The admission free of duty provided for in subsection (a) shall
be accorded to any article imported by or for the account of the
Canada-France-Hawaii Telescope Project if such article is certified
by the Executive Director or the Associate Executive Director of the
Canada-France-Hawaii Telescope Corporation as being required for
the completion of the project in accordance with the memorandum of
understanding referred to in subsection (a).
SEC. 2. (a) The provisions of the first section of this Act shall apply
with respect to articles entered, or withdrawn from warehouse, for
consumption, on or before June 30, 1980.
(b) Upon appropriate request therefore filed by the Executive
Director or the Associate Executive Director of the Canada-France-
Hawaii Telescope Corporation with the customs officer concerned
on or before the one hundred and twentieth day after the date of the
enactment of this Act, the entry or withdrawal of any article described
in the first section of this Act which was made before the date of the
enactment of this Act shall, notwithstanding the provisions of section
514 of the Tariff Act of 1930 or any other provision of law, be liqui-
dated or reliquidated in accordance with the provisions of such first
section.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
December 24, 1974
Dear Mr. Director:
The following bills were received at the White House on December 24th:
S.J. Res. 40
B. 3481
H.R. 8958
H.R. 14600
B.J. Res. 133
S. 3548
M.R. 8981
M.R. 14689
B.J. Res. 252
8. 3934
H.R. 9182
H.R. 14718
S. 251
S. 3943
M.R. 9199
H.R. 15173
S. 356
S. 3976
H.R. 9588
H.R. 15223
S. 521
S. 4073
M.R. 9654
H.R. 15229
B. 544
s. 4206
M.R. 10212
H.R. 15322
S. 663
H.J. Res. 1178
H.R. 10701
M.R. 15977
S. 754
H.J. Res. 1180
H.R. 10710
H.R. 16045
S. 1017
H.R. 421
N.R. 10827
H.R. 16215
S. 1083
H.R. 1715
H.R. 11144
H.R. 16596
vs. 1296
H.R. 1820
H.R. 11273
M.R. 16925
S. 1418
H.R. 2208
H.R. 11796
M.R. 17010
S. 2149
H.R. 2933
H.R. 11802
H.R. 17045
8. 2446
H.R. 3203
H.R. 11847
M.R. 17085
S. 2807
M.R. 3339
H.R. 11897
H.R. 17468
S. 2854
H.R. 5264
H.R. 12044
H.R. 17558
S. 2888
M.R. 5463
H.R. 12113
H.R. 17597
S. 2994
H.R. 5773
H.R. 12427
H.R. 17628
S. 3022
H.R. 7599
H.R. 12884
H.R. 17655
S. 3289
H.R. 7684
H.R. 13022
S. 3358
H.R. 7767
H.R. 13296
B. 3359
H.R. 8214
H.R. 13869
S. 3394
H.R. 8322
H.R. 14449
S. 3433
H.R. 8591
H.R. 14461
Please let the President have reports and recommendations as to the
approval of these bills as soon as possible.
Sincerely,
Robert D. Linder
Chief Executive Clerk
The Honorable Roy L. Ash
Director
Office of Management and Budget
Washington, D. C.
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"ocrText": "The original documents are located in Box 21, folder \"1975/01/03 HR11796 Canada -\nFrance - Hawaii Telescope Project\" of the White House Records Office: Legislation Case\nFiles at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nExact duplicates within this folder were not digitized.\nDigitized from Box 21 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library\nACTION\nAPPROVED75 JAN 3-\nLast Day: January 4\nTHE WHITE HOUSE\nWASHINGTON\nJanuary 3, 1975\nSTED 1/4/75\nARCHLUES\n1/6/75\nMEMORANDUM FOR\nTHE PRESIDENT\nFROM:\nKEN COLE\nSUBJECT:\nH.R. 11796 - Canada-France-Hawaii\nTelescope Project\nAttached for your consideration is H.R. 11796, sponsored by\nRepresentative Matsunaga and Representative Mink, which\nprovides for the duty-free entry of a telescope and associated\narticles for the use of the Canada-France-Hawaii Telescope\nProject at Manua Kea, Hawaii.\nOMB recommends approval and provides additional background\ninformation it its enrolled bill report (Tab A).\nMax Friedersdorf (Loen) recommends approval. Phil Areeda\nand Bill Seidman have no objection to the enrolled bill.\nRECOMMENDATION\nThat you sign H.R. 11796 (Tab B).\nSEALTH R. FORD\nSTATE UNITED OFFICE OF THE PRESIDENT\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 3 0 1974\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 11796 - Canada-France-Hawaii\nTelescope Project\nSponsor - Rep. Matsunaga (D) Hawaii and Rep. Mink\n(D) Hawaii\nLast Day for Action\nJanuary 4, 1975 - Saturday\nPurpose\nProvides for the duty-free entry of a telescope and associated\narticles for the use of the Canada-France-Hawaii Telescope\nProject at Mauna Kea, Hawaii.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of State\nApproval\nNational Aeronautics and\nSpace Administration\nApproval\nOffice of the Special Representative\nfor Trade Negotiations\nNo objection (Informally)\nDepartment of the Treasury\nNo objection\nDepartment of Commerce\nNo objection\nDepartment of Labor\nNo objection\nNational Science Foundation\nNo objection\nDiscussion\nThe Canada-France-Hawaii Telescope Project is a cooperative,\nnot-for-profit undertaking by the Centre National de la\nRecherche Scientifique of France, the National Research\nBERRLD\n2\nCouncil of Canada, and the University of Hawaii to construct\nand operate a major telescope facility at Mauna Kea, Hawaii,\nwhich, according to the National Aeronautics and Space Adminis-\ntration and the National Science Foundation, may be one of\nthe best observing sites in the world.\nIn recognition of the predominant financial contributions\nto the Project of the Canadian and French scientific agencies\n(100 percent of the initial cost of construction and 85\npercent of the maintenance costs thereafter), the agreement\nsigned by the three parties to the Project provides for the\nmaximum use of French and Canadian equipment, including the\ntelescope, its basic instrumentation, its dome and associated\nbuildings, and other high-technology components. For its\npart, the University of Hawaii agreed to seek relief from\ncustoms duties and other charges on all goods imported\nspecifically for use by the Project.\nThe enrolled bill would provide for the duty-free importation\nof the telescope, and the laboratories, equipment, and instal-\nlations required by the Canada-France-Hawaii Telescope Project\nto complete the construction and provide for the operation\nof the telescope in accordance with the agreement signed\nby the three parties to the Project. Such duty-free treat-\nment would apply until June 30, 1980. The bill would also\npermit articles entered for use by the Project prior to the\ndate of enactment to be accorded duty-free treatment if an\nappropriate application therefore is filed within 120 days\nafter the date of enactment.\nAlthough existing law provides procedures for obtaining duty-\nfree treatment for scientific and educational equipment not\navailable in the United States, both the House Ways and\nMeans Committee and the Senate Finance Committee supported\nthe exception to the general statutes which H.R. 11796\nrepresents because of the unique nature of this joint,\ninternational undertaking, the difficulty, if not the\nimpossibility, of using the detailed petitioning and approval\nprocedures for the duty-free entry of such articles under\nexisting law, and because of the real benefit of this project\nto the scientific community in the U.S. and elsewhere.\nWelford H Rounnal\nAssistant Director for\n+\nLegislative Reference\nGERALD\nEnclosures\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 928\nDate: December 30, 1974\nTime: 10:00 p.m.\nFOR ACTION: NSC/S NO oks\nCC (for information): Warren Hendriks\nGeoff Shepard\nJerry Jones\nMax Friedersdorf oh\nJack Marsh\nPhil Areeda no obj\nBill Seidman no bbj.\nFROM THE STAFF SECRETARY\nDUE: Date: Tuesday, December 31\nTime: 1:00 p.m.\nSUBJECT:\nEnrolled Bill H.R. 11796 - Can&da-France-Hawaii\nTelescope Project\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPrepare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nPleaserethurn to Judy Johnston, Ground Floor West Wihgg\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIf you have any questions or if you anticipate a\ndelay in submitting the required material, please\nK. R. COLE, JR.\ntelephone the Staff Secretary immediately.\nFor the President\nRoger Porter:\nHere is the lost bill. May I please\nhave your vote as soon as possible\nsince this needs to go in today.\nThank you.\nJudy Johnston X6570\nno objection\n1-2-75\nws\nphoned\n9.05.18\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC 3 0\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 11796 - Canada-France-Hawaii\nTelescope Project\nSponsor - Rep. Matsunaga (D) Hawaii and Rep. Mink\n(D) Hawaii\nLast Day for Action\nJanuary 4, 1975 - Saturday\nPurpose\nProvides for the duty-free entry of a telescope and associated\narticles for the use of the Canada-France-Hawaii Telescope\nProject at Mauna Kea. Hawaii.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of State\nApproval\nNational Aeronautics and\nSpace Administration\nApproval\nOffice of the Special Representative\nfor Trade Negotiations\nNo objection (Informally)\nDepartment of the Treasury\nNo objection\nDepartment of Commerce\nNo objection\nDepartment of Labor\nNo objection\nNational Science Foundation\nNo objection\nDiscussion\nThe Canada-France-Hawaii Telescope Project is a cooperative,\nnot-for-profit undertaking by the Centre National de la\nRecherche Scientifique of France, the National Research\nTHE WHITE HOUSE\nWASHINGTON\nMEMORANDUM FOR:\nWARREN HENDRIKS\nFROM: Vern Lien Lan for MAX L. FRIEDERSDORF\nSUBJECT:\nAction Memorandum - Log No. 928\nThe Office of Legislative Affairs concurs with the Agencies\nthat the enrolled bill should be signed.\nAttachments\nTHE WHITE HOUSE\nACTION MEMORANDUM\nWASHINGTON\nLOG NO.: 928\nDate: December 30, 1974\nTime:\n10:00 p.m.\nFOR ACTION: NSC/S\nCC (for information):\nWarren Hendriks\nGeoff Shepard\nJerry Jones\nMax Friedersdorf\nJack Marsh\nPhil Areeda\nFROM THE STAFF SECRETARY\nDUE: Date: Tuesday, December 31\nTime: 1:00 p.m.\nSUBJECT:\nEnrolled Bill H.R. 11796 - Canada-France-Hawaii\nTelescope Project\nACTION REQUESTED:\nFor Necessary Action\nFor Your Recommendations\nPropare Agenda and Brief\nDraft Reply\nFor Your Comments\nDraft Remarks\nREMARKS:\nPlease return to Judy Johnston, Ground Floor West Wing\nNo Objection PAuL\nPLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.\nIt you have any questions or if you anticipate a\ndolay in submitting the required material, please\nWarren K.\niolenhone the Staff Scoretary immediately.\nFor the Prodicent\nMEMORANDUM\nNATIONAL SECURITY COUNCIL\n6377\nDecember 31, 1974\nMEMORANDUM FOR WARREN K. HENDRIKS\nFROM:\nJeanne W. Davis\nAND\nSUBJECT:\nEnrolled Bill H.R. 11796\nThis is in response to your memorandum of December 30 (Log #928).\nThe NSC Staff has no objection to approval of Enrolled Bill H.R. 11796 --\nCanada-France-Hawaii Telescope Project.\nDEPARTMENT OF STATE\nWashington, D.C. 20520\nDecember 23, 1974\nHonorable Roy L. Ash\nDirector,\nOffice of Management and Budget\nWashington, D. C. 20503\nDear Mr. Ash:\nReferring to Mr. W. H. Rommel's communication of December 23,\n1974, requesting Department of State views on H.R. 11796,\n\"An Act to provide for the duty free entry of a 3.60\nmeter telescope and associated articles for the use of\nthe Canada-France-Hawaii Telescope Project at Mauna Kea,\nHawaii\" an Enrolled Bill, the Department of State\nrecommends the enactment of this Bill.\nH.R. 11796 authorizes and directs the Secretary of the\nTreasury to admit free of duty imported articles required\nby the Canada-France-Hawaii Telescope Project to complete\nthe installation on Mauna Kea, Hawaii of an optical\ntelescope of 3.60 meters diameter, and the laboratories,\nequipment and installations necessary for its operation.\nThe France-Canada-Hawaii telescope project is a valuable\ninternational cooperative undertaking through which a\nmajor astronomical observatory and facility of real\nbenefit to United States scientists is being established\nin Hawaii through the joint efforts of Canada, France\nand Hawaii. Approximately eighty five percent of the\ntotal cost of approximately $20 million will be borne\nby the governments of Canada and France. Much of this\ncost lies in the value of the telescope and related\nequipment to be installed in the observatory. These\nitems are largely the property of the governments of\nCanada and France and must be imported. The remaining\ncosts are to be provided or absorbed by the State of\nHawaii. No Federal Government funds are committed to\nthis project.\nIt is the Department of State's understanding that\nHawaiian labor and material would be employed in con-\nstructing the facility. A non-profit corporation for\nscientific and educational purposes, the Canada-France-\nHawaii Telescope Corporation, has been incorporated in\nHawaii to construct and operate the facility.\n- 2 -\nThe Department of State supports the telescope project,\na unique undertaking in international cooperation and\nsupports the provisions of H.R. 11796 as enacted.\nThe success of this project is dependent on the ability\nof Canada, France and Hawaii and the Telescope Corporation\nto effectively utilize the unique assets contributed by\neach; largely the telescope and ancillary equipment by\nCanada and France and the site, attendant improvements\nand construction by Hawaii, and management and operation\nby the Corporation. H.R. 11796 by providing for the duty\nfree entry, will allow the Corporation to proceed with\nthe importation of articles and goods necessary to the\nproject which importation would have been substantially\nimpeded if not made impossible by duties, resulting in\nloss of time and possibly of funds committed or obligated\nin Canada and France. This project will ultimately\nbenefit significantly the scientific community in the US\nand elsewhere, and should in the shorter term contribute\nto employment and local industries in Hawaii. There are\nno Administration proposals related or similar to H.R. 11796.\nSincerely yours,\nLimmod Holton\nLinwood Holton\nAssistant Secretary for\nCongressional Relations\nAND\nSPACE\nNATIONAL AERONAUTICS AND SPACE ADMINISTRATION\nA\nWASHINGTON, D.C. 20546\nNATIONAL\nU.S.A\nOFFICE OF THE ADMINISTRATOR\nDEC 24 1974\nDirector\nOffice of Management and\nBudget\nExecutive Office of the\nPresident\nWashington, D.C. 20503\nAttention: Assistant Director\nfor Legislative Reference\nSubject: Enrolled Enactment Report on\nH.R. 11796, 93rd Congress\nThis is an Enrolled Enactment report on H.R. 11796, \"To\nprovide for the duty-free entry of a 3.60 meter telescope\nand associated articles for the use of the Canada-France-\nHawaii Telescope Project at Mauna Kea, Hawaii.\" It is\nsubmitted pursuant to Mr. Wilfred H. Rommel's memorandum\nof December 23, 1974.\nThe Enrolled Bill would authorize the Secretary of the\nTreasury to admit free of duty imported articles required\nby the Canada-France-Hawaii Telescope Project to complete\nthe installation on Mauna Kea, Hawaii, of an optical\ntelescope of 3.60 meters diameter, and the laboratories,\nequipment, and installation necessary for its operation,\nas provided for in a memorandum of understanding, signed\nat Ottawa on October 25, 1973, among the Centre National\nde la Recherche Scientifique of France, the National\nResearch Council of Canada, and the University of Hawaii.\nIt is our understanding that the Canada-France-Hawaii\nTelescope Project is a cooperative effort in which Canadian\nand French scientific agencies are funding the manufacture\nof the instrument, which uses glass purchased in the United\nStates. In this circumstance, the usual concerns for the\nprotection of U.S. manufacturers do not appear to apply.\nHowever, the import duties could be so high as to affect\nthe Project's prospects.\n2\nThe establishment of the Canadian-French-Hawaiian 144-inch\ntelescope on Mauna Kea would provide the U.S. scientific\ncommunity, through the University of Hawaii, with observing\ntime on another major astronomical facility located at an\nexcellent observing site. The site may be one of the best\nin the world. The establishment of this facility will be\nof direct benefit to NASA for two reasons, both resulting\nfrom the fact that a NASA-sponsored 88-inch telescope already\nexists on the Mauna Kea site. Some of the University of\nHawaii observing time on the new 144-inch telescope (15% of\nthe total) will probably be used for programs of interest to\nNASA, thus supplementing the capabilities of the smaller\n88-inch NASA-Hawaii telescope. Secondly, the presence of\na second major instrument on the Mauna Kea site should result\nin economies in the operation of the 88-inch NASA-Hawaii\ntelescope as many of the site operational costs will be\ndivided between the two major instruments. Presently, the\nNASA-Hawaii telescope has had to carry the full costs of the\noperation of the Mauna Kea site.\nThe National Aeronautics and Space Administration recommends\nthat the President approve the Enrolled Bill H.R. 11796.\nHele\nJames C. Fletcher\nAdministrator\nOF\nDEPARTMENT THE THE TREASURY\nTHE GENERAL COUNSEL OF THE TREASURY\nWASHINGTON, D.C. 20220\n1789\nDEC 24 1974\nDirector, Office of Management and Budget\nExecutive Office of the President\nWashington, D.C. 20503\nAttention: Assistant Director for Legislative\nReference\nSir:\nYour office has asked for the views of this Department on\nthe enrolled enactment of H.R. 11796, \"To provide for the duty-free\nentry of a 3.60 meter telescope and associated articles for the\nuse of the Canada-France-Hawaii Telescope Project at Mauna Kea,\nHawaii.'\nThe enrolled enactment would provide for the duty-free entry\nof imported articles required by the Canada-France-Hawaii Telescope\nProject to complete the installation of an optical telescope of\n3.60 meter diameter, and the laboratories, equipment, and installations\nnecessary for its operation as provided in the memorandum of under-\nstanding signed by the sponsors of the project on October 25, 1973.\nDuty-free entry would be granted to any article certified by the\nExecutive Director of the Canada-France-Hawaii Telescope Corporation\nas being required for the completion of the project in accordance\nwith the memorandum of understanding. The categories and types of\narticles contemplated to be imported are described in the memorandum\nof understanding. The enrolled enactment would grant duty-free entry\nwith respect to articles entered, or withdrawn from warehouse, for\nconsumption on or before June 30, 1980.\nIt is our understanding that the articles would be imported\nby or on behalf of the Canada-France-Hawaii Telescope Project, which\nis a nonprofit corporation incorporated under the laws of Hawaii.\nCosts for the project would be shared by Canadian and French scientific\nagencies, and the University of Hawaii would provide the site for\nthe observatory and local support facilities.\nThe Department would have no objection to a recommendation that\nthe enrolled enactment be approved by the President.\nSincerely yours,\nGeneral Counsel\nDEPARTMENT OF COMMERCE\nTHE UNDER SECRETARY OF COMMERCE\nWashington, D.C. 20230\nUNITED STATES OF AMERICA\nDEC 27 1974\nHonorable Roy L. Ash\nDirector, Office of Management\nand Budget\nWashington, D. C. 20503\nAttention: Assistant Director for Legislative Reference\nDear Mr. Ash:\nThis is in reply to your request for the views of this Department\nconcerning H.R. 11796, an enrolled enactment\n\"To provide for the duty-free entry of a 3. 60 meter\ntelescope and associated articles for the use of\nthe Canada-France-Hawaii Telescope Project at\nMauna Kea, Hawaii. \"\nThis Department would have no objection to approval by the President\nof H.R. 11796.\nEnactment of this legislation will not involve any increase in the\nbudgetary requirements of this Department.\nSincerely,\nJohn K. Tabor\nU.S. DEPARTMENT OF LABOR\nOFFICE OF THE SECRETARY\nWASHINGTON\nDEC 26 1974\nHonorable Roy Ash\n:\nDirector, Office of\nManagement and Budget\nExecutive Office of the President\nWashington, D. C. ; 20503\nDear Mr. Ash:\nThis is in response to the request of your office for\nour views on the enrolled enactment of H.R. 11796, \"To\nprovide for the duty-free entry of a 3.60 meter telescope\nand associated articles for the use of the Canada-France-\nHawaii Telescope Project at Mauna Kea, Hawaii.\" This\nDepartment would have no objection to the President's\napproval of this measure.\nSincerely,\nPeth JBreanna Secretary of Labor\nNATIONAL SCIENCE FOUNDATION\nWASHINGTON, D.C. 20550\nnsf\nOFFICE OF THE\nDecember 26, 1974\nDIRECTOR\nMr. Wilfred H. Rommel\nAssistant Director for\nLegislative Reference\nOffice of Management and Budget\nWashington, D. C. 20503\nDear Mr. Rommel:\nThis is in reply to your request of December 23, 1974\nfor the views of the National Science Foundation on\nEnrolled Bill H.R. 11796, \"To provide for the duty-free\nentry of a 3. 60 meter telescope and associated articles\nfor the use of the Canada-France-Hawaii Telescope\nProject at Mauna Kea, Hawaii. \"\nThe Foundation has no objection to approval of this\nlegislation by the President.\nPaige\nActing Director\nEXECUTIVE OFFICE OF THE PRESIDENT\nOFFICE OF MANAGEMENT AND BUDGET\nWASHINGTON, D.C. 20503\nDEC\n3\n0\nMEMORANDUM FOR THE PRESIDENT\nSubject: Enrolled Bill H.R. 11796 - Canada-France-Hawaii\nTelescope Project\nSponsor - Rep. Matsunaga (D) Hawaii and Rep. Mink\n(D) Hawaii\nLast Day for Action\nJanuary 4, 1975 - Saturday\nPurpose\nProvides for the duty-free entry of a telescope and associated\narticles for the use of the Canada-France-Hawaii Telescope\nProject at Mauna Kea, Hawaii.\nAgency Recommendations\nOffice of Management and Budget\nApproval\nDepartment of State\nApproval\nNational Aeronautics and\nSpace Administration\nApproval\nOffice of the Special Representative\nfor Trade Negotiations\nNo objection (Informally)\nDepartment of the Treasury\nNo objection\nDepartment of Commerce\nNo objection\nDepartment of Labor\nNo objection\nNational Science Foundation\nNo objection\nDiscussion\nThe Canada-France-Hawaii Telescope Project is a cooperative,\nnot-for-profit undertaking by the Centre National de la\nRecherche Scientifique of France, the National Research\n93D CONGRESS\nHOUSE OF REPRESENTATIVES\nREPORT\n2d Session\nNo. 93-1213\nDUTY-FREE ENTRY OF TELESCOPE AND ASSOCIATED\nARTICLES FOR CANADA-FRANCE-HAWAII TELESCOPE\nPROJECT\nJULY 24, 1974.-Committed to the Committee of the Whole House on the State\nof the Union and ordered to be printed\nMr. MILLS, from the Committee on Ways and Means,\nsubmitted the following\nREPORT\n[To accompany H.R. 11796]\nThe Committee on Ways and Means, to whom was referred the\nbill (H.R. 11796) to provide for the free entry of a 3.60-meter tele-\nscope for the use of the Canada-France-Hawaii telescope project at\nMauna Kea, Hawaii, having considered the same, reports favorably\nthereon with amendments and recommends that the bill as amended\ndo pass.\nThe amendments are as follows:\nStrike out all after the enacting clause and insert the following:\nThat (a) the Secretary of the Treasury is authorized and directed to admit free\nof duty imported articles required by the Canada-France-Hawaii Telescope Proj-\nect to complete the installation on Mauna Kea, Hawaii, of an optical telescope of\n3.60 meters diameter, and the laboratories, equipment, and installations necessary\nfor its operation, as provided for in a Memorandum of Understanding, signed at\nOttawa on October 25, 1973, among the Centre National de la Recherche Scien-\ntifique of France, the National Research Council of Canada, and the University\nof Hawaii.\n(b) The admission free of duty provided for in subsection (a) shall be ac-\ncorded to any article imported by or for the account of the Canada-France-Hawaii\nTelescope Project if such article is certified by the Executive Director or the\nAssociate Executive Director of the Canada-France-Hawaii Telescope Corpora-\ntion as being required for the completion of the Project in accordance with the\nMemorandum of Understanding referred to in subsection (a).\nSEC. 2. (a) The provisions of the first section of this Act shall apply with re-\nspect to articles entered, or withdrawn from warehouse, for consumption, on or\nbefore June 30, 1980.\n(b) Upon appropriate request therefor filed by the Executive Director or the\nAssociate Executive Director of the Canada-France-Hawaii Telescope Corpora-\ntion with the customs officer concerned on or before the one hundred and twentieth\nday after the date of the enactment of this Act, the entry or withdrawal of any\narticle described in the first section of this Act which was made before the date of\nthe enactment of this Act shall, notwithstanding the provisions of section 514 of\nthe Tariff Act of 1930 or any other provision of law, be liquidated or reliquidated\nin accordance with the provisions of such first section.\n38-006\n2\n3\nAmend the title SO as to read:\nA bill to provide for the duty-free entry of a 3.60 meter telescope and associated\n\"governmental authorities to grant, in accordance with applicable\narticles for the use of the Canada-France-Hawaii Telescope Project at Mauna\nlaws, relief from taxes, including but not restricted to, customs duties,\nKea, Hawaii.\nexcise and sales taxes on all goods imported specifically for use in the\nPURPOSE\nrealization of the project and its continuing operation.\"\nH.R. 11796, as reported by your committee, will provide for the\nThe purpose of H.R. 11796, as reported, is to permit the duty-free\nJuty-free entry of imported articles required by the Canada-France-\nentry of a 3.60-meter telescope, and the laboratories, equipment, and\nHawaii telescope project. The duty-free entry is limited to the optical\ninstallations necessary for its operation, in the Canada-France-Hawaii\ntelescope, and the laboratories, equipment, and installation necessary\ntelescope project at Mauna Kea, Hawaii.\nfor its operation, as provided in the memorandum of understanding,\nsigned at Ottawa on October 25, 1973, among the three agencies.\nGENERAL STATEMENT\nThe committee has amended the bill to provide that duty-free entry\ncan only be accorded articles if certified by the executive director of\nThe Canada-France-Hawaii telescope project is a nonprofit interna-\nthe project (or associate executive director) as being required for the\ntional cooperative undertaking by the Centre National de la Recherche\ncompletion of the project in accordance with the memorandum of\nScientifique of France, the National Research Council of Canada, and\nunderstanding.\nthe University of Hawaii. The memorandum of understanding among\nIn addition, the committee amended the bill to provide that the\nthese three agencies provides for the installation and development of\nduty-free treatment shall not apply after June 30, 1980. As intended\na major astronomical observatory and facility at Mauna Kea, Hawaii.\nby the bill as originally introduced, H.R. 11796, as reported, provides\nAccording to the National Science Foundation, Mauna Kea, Hawaii,\nthat entries of articles made before the date of enactment may be ac-\n\"is one of the best optical telescope sites in the United States for sky\ncorded duty-free treatment upon appropriate request being filed. with\ncoverage, atmospheric clarity, and low level of interference from\nthe customs officer concerned.\nhuman activities.\" The National Aeronautics and Space Administra-\nPublic Law 89-651 implements the so-called Florence Agreement\ntion informed the committee that Mauna Key \"may be one of the best\nproviding for the duty-free exchange of cultural, scientific, and edu-\n(observing sites) in the world.\" In addition to providing astronomers\ncational material. Under that law, Congress provided that scientific\nin France and Canada with a unique site for an optical telescope, the\ninstruments imported for use by nonprofit institutions may be afforded\nproject will also benefit the U.S. scientific community, according to\nduty-free entry if it is determined that no instrument of equivalent\nboth the National Science Foundation and the National Aeronautics\nscientific value is available from domestic sources. By establishing\nand Space Administration.\npublic policy and procedures regarding duty-free entry of scientific\nSpecifically, the memorandum of understanding provides that the\ninstruments for use by nonprofit institutions, Public Law 89-651 made\ntotal cost of the construction of the project, including the telescope, its\nit unnecessary to consider separate relief bills for nonprofit institu-\nbasic instrumentation, its dome, and associated buildings (approxi-\ntions seeking to import free of duty scientific equipment not available\nmately $20 million), is to be borne equally by the scientific agencies of\nin the United States. In light of this public law, the committee has\nFrance and Canada. The initial contribution of the University of\nconsidered why the provision of Public Law 89-651 should not be\nHawaii will consist of a long-term lease of the site and provision\napplied to the Canada-France-Hawaii telescope project.\nof certain support services and facilities.\nThe committee has determined that the favorable consideration of\nThe memorandum of understanding also provides that once con-\nH.R. 11796, as reported, is not a departure from public policy of Pub-\nstruction has been completed, operating costs will be shared as follows:\nlic Law 89-651 due to the unique characteristics of the joint interna-\n42.5 percent each for the Centre National de la Recherche Scientifique\ntional undertaking involving scientific agencies in Canada and France\nof France and the National Research Council of Canada, and 15 per-\nand the cooperation, including the provision of the site for the obser-\ncent for the University of Hawaii. Likewise, interests in the nonprofit\nvatory, of the University of Hawaii. In addition, the size of the proj-\ncorporation established under the laws of the State of Hawaii to op-\nect and its development over an extended period of time make it most\nerate the project are assigned to the three cooperating agencies on the\ndifficult, if not impossible, to use the detailed petitioning and approval\nsame proportional basis. A similar distribution of observation time on\nprocedures for the duty-free treatment of scientific instruments estab-\nthe telescope is provided.\nlished by the Department of Commerce and the U.S. Customs Service\nThe predominant interests and contributions of the two scientific\nunder Public Law 89-651.\nagencies of France and Canada in the project are also recognized by\nThe committee has received no objections to the enactment of H.R.\nthe memorandum of understanding in the special provisions.regarding\n11796 from any interested party. Favorable reports were received on\nthe maximum use of French and Canadian industrial capacity in the\nthe bill from interested executive branch agencies, and the committee\ndesign and construction of the telescope, its basic instrumentation, its\nhas amended the bill at the suggestions of the Departments of Treas-\ndome, and associated buildings, and in the production of high-tech-\nury and Commerce to more closely conform the provisions of the bill\nnology components. Related to this aspect of the project is H.R. 11796\nto the intent of Public Law 89-651.\nwhich carries out the commitment of the University of Hawaii to ask\nPreliminary estimates furnished the committee relative to articles\nto be entered under the provisions of H.R. 11796 indicate an estimated\n4\n5\nvalue of $7.6 million. A listing of products which will be imported into\nthe United States for use in the telescope project is included below,\ncedures reflect the principles enunciated in paragraph 6 below. Its\nimmediately following the memorandum of understanding.\ndecisions will be taken by majority vote, simple or other, as provided\nIn view of the likelihood that import duties existing under present\nin its bylaws, provided that at least one of the diretcors named by\nlaw would add unnecessary costs and complications to the project, the\neach agency joins in that majority.\ncompletion of which would be of real benefit to the American scien-\n2. (c) That the Scientific Advisory Council shall be composed of\ntific community, and in the interest of the international practice of\n.4 representatives of CNRS\nfacilitating international scientific endeavors, your committee has\n.4 representatives of NRC\nfavorably reported H.R. 11796, as amended.\n.2 representatives of UH\nand up to four others to be named by the Board of Directors.\nMEMORANDUM OF UNDERSTANDING AMONG THE CENTRE NATIONAL\nThis Council is responsible for making recommendations to the\nDE LA RECHERCHE SCIENTIFIQUE OF FRANCE, THE NATIONAL RE-\nBoard of Directors on all scientific and technical matters.\nSEARCH COUNCIL OF CANADA AND THE UNIVERSITY OF HAWAII\n2. (d) That, for the duration of a construction phase there shall be\na Project Officer and an Associate Project Officer to be named by the\nRecognizing the increasing development of astronomical research\nAgencies on the recommendation of the Board of Directors. The\nand the quality and the quantity of related scientific work carried out\nProject Officer and the Associate Project Officer will be jointly respon-\nin the universities and specialized research centres of Canada, France,\nsibile to the Board of Directors for carrying out the design and con-\nand Hawaii.\nstruction activities. In particular, they must ensure that the equipment\nConsidering the need for instruments to be available for use by the\nprovided satisfies the requirements for its intended use and that the\nastronomers of Canada, France, and Hawaii;\ncontractual procedures are consistent with paragraph 6 below.\nConsidering the desire of the astronomers of Canada, France, and\n3. (a) That the CNRS and the NRC will provide work, components\nHawaii to carry on cooperative programmes of research;\nand sums necessary for the construction of the telescope, its basic in-\nConsidering the desirability of developing international coopera-\nstrumentation, its dome and associated buildings. They will equally\ntion in large-scale scientific undertakings;\nshare the cost and jointly assume responsibility for the design. The\nThe Centre National de la Recherche Scientifique (CNRS) of\ntotal capital cost, including components and studies already in exist-\nFrance, the National Research Council (NRC) of Canada, and the\nence will be 91 million French francs, as estimated on February 1,\nUniversity of Hawaii (UH), hereinafter referred to as the Agencies,\n1973, providing the construction commences in 1973 and is completed\nhaving obtained the approval as appropriate of their respective gov-\nby 1977. The detailed technical specifications will be the subject of\nernments, that is those of France, of Canada, of the United States of\nagreement between the CNRS and the NRC.\nAmerica and of the State of Hawaii, agree:\n3. (b) That the UH will make available the land, roads and such\nancillary services as may be agreed upon by the three agencies as being\nGENERAL PROVISIONS\nnecessary for the operation of the project, and for which the UH will\nbe responsible. A description of the facilities and services presently\n1. To install on Mauna Kea, Hawaii, a large optical telescope of\ncontemplated by the UH in this connection is attached as Appendix B.\n3.60 meters diameter, and the laboratories, equipment, and installa-\n3. (c) That after the completion of the construction phase, the three\ntions necessary for its operation, the general technical characteristics\nagencies will contribute annually funds up to one million dollars US,\nof which are attached as Appendix A.\nas estimated on February 1, 1973, with appropriate provision for vari-\n2. (a) To ensure the establishment of a non-profit corporation that\nation in the cost of living, in the proportion of CNRS 42.5 percent,\nwill be known as the Canada-France-Hawai Telescope Corporation,\nNRC 42.5 percent, and UH 15 percent. The funds will include neces-\nand that will be responsible for the construction and operation. of the\nsary expenses for meetings of the Board and the Council, staffing and\ntelescope, its ancillary installations and apparatus. The Corporation\noperating the telescope, and for developing further its instrumenta-\nwill be directed by a Board of Directors assisted by a Scientific Advi-\nsory Council. Intergovernmental arrangements will necessarily pre-\ntion. Before the end of the construction phase, some similar costs may\nbe incurred, and these costs will be shared in the same proportions;\ncede the establishment of such a corporation.\n2. (b) That the Corporation shall have a Board of Directors com-\nhowever, in consideration of the other operating contributions by the\nUH, no cash contributions will be required from the UH before July 1,\nposed of\n1975. The date on which the construction phase will be considered as\n.4 representatives of CNRS\ncompleted will depend on the date set for commencement of the tele-\n.4 representatives of NRC\nscope's normal operation. This date of completion of the construction\n.2 representatives of UH\nphase will be determined by the Board of Directors in agreement with\nto be named by their respective Agencies.\nThe Board of Directors will be charged with coordination on tech-\neach of the three Agencies.\nnical and administrative problems, and, in particular, must ensure\n3. (d) That the operating cost for the Project Officer, the Associate\nthat the design of the telescope and its ancillary installations will\nProject Officer and their personnel will be shared equally by the NRC\nsatisfy the needs of the astronomers, and see that the contractual pro-\nand the CNRS, within limits to be determined, until the completion\nof the construction phase as defined above.\n6\n7\n4. That in consideration of their respective contributions, the three\nAgencies will receive equitable interest in the Corporation as follows:\n(c) the interim organization will include the following:\nCNRS, 42.5 percent.\n(i) an interim Board of Directors composed of\nNRC, 42.5 percent.\n.4 representatives of CNRS\nUH, 15.0 percent.\n.4 representatives of NRC\n5. That their respective contributions entitle them to averaged ob-\n.2 representatives of UH\nto be named by their respective agencies.\nservation time in the following proportion\nThe interim Board of Directors will be charged with co-\nCNRS, 42.5 percent.\nordination on technical and administrative problems and with\nNRC, 42.5 percent.\ndrafting the necessary interagency arrangements, as well as\nUH, 15.0 percent.\nthe articles of incorporation and bylaws of the corporation.\nIts recommendations must receive approval from each of the\nSPECIAL PROVISIONS\nthree agencies. In particular the interim Board of Directors\n6. That, in as equal a fashion as possible, maximum use will be made\nmust ensure that the design of the telescope and its ancillary\nof French and Canadian industrial capacity in the design and con-\ninstallations will satisfy the needs of the astronomers and see\nstruction of the telescope, its basic instrumentation, its dome and\nthat the contractual procedures reflect the principles enunci-\nassociated buildings, and in the production of high-technology\nated in paragraph 6 above.\ncomponents.\n(ii) an interim Scientific Advisory Council composed of\n7. That the Agencies will ask their respective governmental author-\n.4 representatives of CNRS\nities to grant, in accordance with applicable laws, relief from taxes,\n.4 representatives of NRC\nincluding but not restricted to, customs duties, excise and sales taxes\n.2 representatives of UH\non all goods imported specifically for use in the realization of the\nto be named by their respective agencies.\nproject and its continuing operation.\nThis interim Council is responsible for making recom-\n8. That the Agencies will request their appropriate governmental\nmendations to the interim Board of Directors on all scientific\nauthorities to facilitate, in accordance with applicable laws, the free\nand technical matters.\nmovement and residence of persons who are participating in the\n(iii) A project officer and an associate project officer to be\nproject, as well as their families and effects.\nnamed by the agencies on the recommendation of the interim\n9. That, until July 1, 1975, UH will cover the travel and mainte-\nBoard of Directors. The project officer and the associate\nnance costs of its representatives engaged in activities associated with\nproject officer will be jointly responsible to the interim Board\nthe project.\nof Directors for carrying out the design and construction\n10. That, in order to ensure the availability, should the need arise,\nactivities. In particular they must ensure that the equipment\nof a system for the settlement of disputes concerning the interpreta-\nprovided satisfies the requirements for its intended use and\ntion or application of this Memorandum of Understanding which can\nthat the contractual procedures are consistent with paragraph\nnot be resolved by the agencies, such a dispute shall at the request of\n6 above. Following the establishment of the corporation the\nany agency be submitted to a tribunal of arbitration.\nproject officer and the associate project officer may be recon-\nSuch a tribunal shall be constituted for each individual case as\nfirmed in their posts by the Board of Directors.\nfollows: each agency shall appoint two members, and these six mem-\nbers shall jointly propose another member as their chairman, to be\nFINAL PROVISIONS\nappointed jointly by CNRS, NRC and UH. Details of the procedure\nof arbitration are set out in Appendix C.\n12. That, after the completion of construction of the telescope and\nthe laboratories equipment and installations necessary for its opera-\ntion and in any case not more than five years from the date of the\nINTERIM PROVISIONS\nsignature of the Memorandum of Understanding and every five years\n11. That an interim phase will be needed in order to commence the\nthereafter authorized representatives of the agencies shall meet in\nconstruction of the telescope and its ancillary installations as soon as\nHawaii or such other place as may be mutually agreed upon to ex-\npossible and that an interim organization will be created based on the\namine if it would be required to propose modifications to the texts and\nprovisions of paragraph 2 above and detailed hereunder:\nagreements in force.\n(a) the interim phase will start when an interim Board of\nSigned at Ottawa, on October 25, 1973, in six copies, three in English\nDirectors has been named and will finish when all the necessary\nand three in French, the texts in both languages having equal validity.\nagreements have been concluded and the corporation has been\nBy\n,\nestablished.\n(For the Centre National de la Recherche Scientifique).\n(b) during the interim phase each agency will meet the travel\nand maintenance costs of its representatives engaged in activities\nBy\n,\nassociated with the project.\n(For the National Research Council of Canada).\nBy\n,\n(For the University of Hawaii).\nAPPENDIX A\nAPPENDIX B\nTECHNICAL CHARACTERSITICS OF THE PROPOSED TELESCOPE\nOptical parameters\nFACILITIES AND SERVICES PLANNED BY THE UNIVERSITY OF HAWAII\nThe telescope will have a primary mirror of CERVIT material of\noutside diameter 3.60 metre and will have a focal length correspond-\nThe following is a brief description of those facilites and services\nplanned by UH or in existence which are relevant to the operation of\ning to an aperture ratio of approximately 3.8, and the figure of the\nthe astronomical installation on Mauna Kea.\nprimary mirror will be parabolic.\nThe telescope will have several secondary mirrors, the largest of\nLand Lease\nwhich will give an effective aperture ratio of approximately 8.0 at the\nIn order to ensure the integrity of the mountain for astronomical\nCassegrain focus.\nuse the State of Hawaii granted General Lease No. S4191 to the Uni-\nOther secondary mirrors will provide coudé foci and an infra-red\nversity of Hawaii for an area of 13,321 acres of an essentially circular\nCassegrain focus. Other Cassegrain mirrors may be added later.\nshape of radius 2.5 miles and centered on the summit of Mauna Kea.\nMechanical description\nThe lease runs from 1 January 1968 and terminates on 31 December\n2033. The lease area extends approximately to the 12,000 foot contour.\nThe mounting will be of the \"horse-shoe\" type similar to the well-\nknown Palomar 200\" telescope which is of proven design and very\nAccess Road\nsuitable to low latitudes. However, modern developments such as\nA. Lower Section\nupper-end exchanges and computer controlled devices will be included.\nIn February, 1973 construction began on a paved road of 6.3 miles\nInstrumentation\nlength leading from the Saddle Road, a State highway, to the Hale\nAppropriate instrumentation to carry effective astronomical research\nPohaku which is at 9,200 ft. elevation on Mauna Kea. This road,\nat the frontier of astronomy will be provided.\ncosting $2.4 million, will be negotiable to ordinary passenger vehicles.\nCompletion is scheduled for February, 1974.\nEnclosure\nThe telescope will be enclosed in a dome and supported on a suit-\nB. Upper Section\nable pillar which will also support the coudé spectrograph. The work-\nDesign is well advanced on a new access route from Hale Pohaku\nshop, laboratories and other necessary facilities required will be in an\nto the summit of Mauna Kea. Construction funds, estimated at $3 mil-\nunderground building near the dome.\nlion, are being sought in the 1973 budget request now before the State\nLegislature. If this request is approved, construction could be com-\n(8)\npleted by early 1975 providing no delays are encountered in letting\nthe necessary contracts.\nMid-Elevation Support Building\nArchitectural design began in January, 1973 on a group of buildings\nto be erected on a site at 8,000 ft. elevation on Mauna Kea. These\nbuildings are to provide a supporting facility for activities at the\nsummit. Included will be one building with office and laboratory space,\na kitchen and a dining room, a reading room, and some storage areas.\nA separate structure will accommodate at least 20 people. A set of 5\nfamily dwellings is envisaged as housing for permanent staff. A\nmaintenance shop is also to be provided for minor upkeep of vehicular,\nmechanical and electrical equipment. Funds in the sum of $686,000\nare available for this project.\nUtilities\nA. Electrical Power\nThe sum of $842,600 has been appropriated for construction of a 750\nkw power line to carry main power to the mid-elevation buildings and\n(9)\n10\nto the summit. This power line is under design for projected comple-\ntion in 1974.\nB. Water\nPlans for the mid-elevation buildings call for a feasibility study\nfor a piped, fresh water supply from a spring higher on the mountain.\nAPPENDIX C\nIt is not planned to supply a water line to the summit.\nPROCEDURE OF ARBITRATION\nC. Telephones\nMauna Kea is directly connected via microwave links to the Hawai-\nAll members of the tribunal shall be appointed within two months\nian Telephone Company System. Similar connections for the mid-\nafter any agency has informed the other agencies that it wishes to\nelevation buildings are planned.\nsubmit the dispute to a tribunal of arbitration.\nIf the two month period specified above has not been observed, any\nSea-Level Support Facilities\nagency may in the absence of any other relevant agreement invite the\nAn appropriation of $24,000 made in 1971 allows for design of a\nPresident of the International Court of Justice to make the appoint-\nsupport facility planned for construction on the Hilo Campus. Spe-\nments necessary to fill any positions vacant on the tribunal at the end\ncifications for this building are quite open at this time. The University\nof that period.\nintends to make definite plans during 1973. No construction money is\nThe tribunal shall determine the place or places where it shall sit, its\navailable.\nown procedures and all other administrative matters. The decision of\nManoa Campus\nthe tribunal shall be by majority vote.\nThe new building to house the Institute for Astronomy of the Uni-\nThe tribunal shall make its decision as promptly as possible\nversity of Hawaii is under construction at the University's Manoa\nand in any case no later than three months from the date of its\nCampus. This facility of 61,500 sq. ft. is to contain offices, data reduc-\nestablishment.\ntion areas, library, shops and laboratories. Completion is scheduled\nThe tribunal shall transmit a certified copy of its findings including\nfor mid-1974. The Institute plans to make office space available in the\nthe decision and the reasons for it to each agency. Each agency shall\nbuilding for both short and long-term visitors among whom are ex-\nbear the costs for its own members on the tribunal of arbitration and\npected to be colleagues from France and Canada associated with the\nof its representatives in the tribunal's proceedings. The costs of the\nMauna Kea 3.60 m Telescope.\nchairman and the remaining costs shall be borne in equal parts by the\nagencies unless the tribunal otherwise decides. The decision of the\ntribunal shall be final and binding.\nCanada-France-Hawaii telescope-Estimate of articles to be imported into the\nUnited States\nEstimated value\nTelescope 2 (including mirrors, drives, control, field monitoring and\nautomatic guiding systems)\n3 $3, 604, 000\nAluminizing tank :\nVacuum equipment\n80, 000\nElectrical equipment\n60,000\nMeasuring devices\n20, 000\nTank\n140,000\nTotal\n300, 000\nInstrumentation (spectrography and photometers)\n1. 700, 000\nBuilding (prefabricated steel structure to be assembled at the site)\n4\n150, 000\nDome\nSteel structure\n200, 000\nAluminum sheeting\n380, 000\nMachinery\n570, 000\nTotal\n5 1, 150, 000\n(11)\n12\n13\nCanada-France-Hawaii telescope-Estimate of articles to be imported into the\nEFFECT ON THE REVENUES OF THE BILL AND VOTE OF THE COMMITTEE\nUnited States-Continued\nIN REPORTING THE BILL\nDome-Continued\nHandling equipment\n6 510, 000\nIn compliance with clause 7 of rule XIII of the Rules of the House\n(a) 30-ton telescope installation crane.\nof Representatives, the following statement is made relative to the\n(b) 15-ton aluminizing crane in Core Bldg.\n(c) 2 1-ton A-frame hoists.\neffect on the revenues of this bill Your committee estimates that the\n(d) Overhead dome crane; prime focus cage (elevator) ; han-\nprovisions of this bill will result in a loss of revenue of no more than\ndling ring for telescope upper ends.\n$1.3 million.\n(e) 15-ton mirror carriage (lowest floor).\nIn compliance with clause 27 (b) of rule XI of the Rules of the\n(f) 40-ton mirror carriage (15-ton mirror, 15-ton adjusting\nmechanism, 10-ton carriage).\nHouse of Representatives, the following statement is made relative\n(g) Cassegrain platform (excluding external controls).\nto the vote by the committee in reporting the bill: Your committee\n(h) Cherry picker for dome maintenance.\nwas unanimous in favorably reporting H.R. 11796 as amended.\nShop equipment (metal-working machine tools)\n' 200,000\nTotal\n8 7, 614, 000\n1 The figures herein are estimates and are subject to modification, e.g. fluctuations can\noccur in the value of the foreign currencies involved, in labor costs, and in the value\nof components which must be acquired through competitive bidding.\n2 An Itemization of telescope parts is attached. (Annex A.)\n3 The total estimated cost of the telescope is $3,744,000 less the value of certain motors,\nencoders and a minicomputer that will be purchased in the United States at an estimated\ncost of $140,000.\nLocal labor for site erection is estimated at $420,000.\nIn addition, the CFH telescope project will purchase a data acquisition computer in\nthe United States at an estimated cost of $250,000.\n4 The estimated value of the building excludes such items as the foundation, paint, con-\ncrete, plumbing, electrical and air conditioning equipment, interior partitions, furniture\nand other furnishings all of which will be purchased in the United States at an estimated\ncost of $2,850,000.\n5 This figure does not include the costs of local labor to be used in building construction\nat the site which is estimated at $830,000.\n0 This figure does not include costs of local labor to be used for installation of handling\nequipment at the site which is estimated at $150,000.\n7 This figure does not include the costs of electronic and darkroom equipment which will\nbe purchased in the United States at an estimated cost of $200,000.\n8 In addition to the estimated value of articles to be imported, it is projected that the\nCFH telescope project will expend approximately $5,574,000 for domestically manufactured\narticles and local labor in the United States.\nANNEX A\nCanada-France-Hawaii telescope: Estimate of articles to be imported into the\nUnited States\nPrimary mirror:\nEstimated value\nBlank (manufactured in the United States, purchased in 1970)\n$634, 000\nPolishing (added value)\n200,000\nCassegrain mirror and other optics\nBlanks (to be purchased in the United States)\n100,000\nPolishing (added value)\n150,000\nTelescope mounting\nMounting and accessories\n11, 680, 000\nGears\n1\n240,000\nDrive and control\nMotors (to be purchased in the United States)\n40,000\nEncoders (to be purchased in the United States)\n40,000\nComputer (to be purchased in the United States)\n60,000\nCommutators\n40,000\nConsole and handsets\n100,000\nAmplifiers for drive motors\n20,000\nMultiplexing units\n40,000\nGuiding heads and closer-circuit TV\n400,000\nTotal\n3,744,000\n1 These figures do not include assembly and testing in shop, crating and shipping which\nare estimated at $860,000, nor erection at the site (U.S. labor) which is estimated at\n$420,000.\nNOTE.-All costs estimated in French francs are converted into U.S. dollars at the rate\nof $1=5F.\nCalendar No. 1282\n93D CONGRESS\nSENATE\nREPORT\n2d Session\nNo. 93-1355\nDUTY-FREE ENTRY OF TELESCOPE AND ASSOCIATED\nARTICLES FOR CANADA-FRANCE-HAWAIL TELESCOPE\nPROJECT\nDECEMBER 14, 1974.-Ordered to be printed\nMr. LONG, from the Committee on Finance,\nsubmitted the following\nREPORT\n[To accompany H.R. 11796]\nThe Committee on Finance, to which was referred the bill (H.R.\n11796) to provide for the duty-free entry of a 3.60 meter telescope and\nassociated articles for the use of the Canada-France-Hawaii Tele-\nscope Project at Mauna Kea, Hawaii, having considered the same,\nreports favorably thereon with amendments and recommends that\nthe bill as amended do pass.\nI. SUMMARY\nHouse bill.-The House bill would permit the duty free entry of a\n3.60 meter telescope and associated articles for the use of the Canada-\nFrance-Hawaii telescope project at Mauna Kea, Hawaii.\nCommittee bill.-The committee adopted two amendments. One\ncommittee amendment would suspend until June 30, 1977, the duty on\nzinc-bearing ores and certain other zinc bearing materials, including\nzinc waste and scrap. The second committee amendment would amend\nthe gift exemption provisions of the Tariff Schedules to prohibit non-\nresidents from importing alcoholic beverages and cigarettes duty\nfree into the United States for gift purposes and would bring U.S.\ncustoms regulations for residents and nonresident into conformity with\nthe treatment presently accorded U.S. travelers to Canada.\nII. GENERAL STATEMENT\nA. DUTY-FREE ENTRY OF A TELESCOPE\nThe purpose of H.R. 11796, as passed by the House, is to permit the\nduty-free entry of a 3.60-meter telescope, and the laboratories, equip-\n38-010\n3\n2\nThe bill provides that duty-free entry can only be accorded articles\nif certified by the executive director of the project (or associate direc-\nment, and installations necessary for its operation, in the Canada-\ntor) as being required for the completion of the project in accordance\nFrance-Hawaii telescope project at Mauna Kea, Hawaii.\nwith the memorandum of understanding.\nThe Canada-France-Hawaii telescope project is a nonprofit interna-\nIn addition, the bill provides that the duty-free treatment shall not\ntional cooperative undertaking by the Centre National de la Recherche\napply after June 30, 1980. As intended by the bill as originally intro-\nScientifique of France, the National Research Council of Canada, and\nduced, H.R. 11796, as reported, provides that entries of articles made\nthe University of Hawaii. The memorandum of understanding among\nbefore the date of enactment may be accorded duty-free treatment\nthese three agencies provides for the installation and development of\nupon appropriate request being filed with the customs officer concerned.\na major astronomical observatory and facility at Mauna Kea, Hawaii.\nPublic Law 89-651 implements the so-called Florence Agreement\nAccording to the National Science Foundation, Mauna Kea, Hawaii,\nproviding for the duty-free exchange of cultural, scientific, and edu-\n\"is one of the best optical telescope sites in the United States for sky\ncational material. Under that law, Congress provided that scientific\ncoverage, atmospheric clarity, and low level of interference from\ninstruments imported for use by nonprofit institutions may be afforded\nhuman activities.\" The National Aeronautics and Space Administra-\nduty-free entry if it is determined that no instrument of equivalent\ntion informed the committee that Mauna Kea \"may be one of the best\nscientific value is available from domestic sources. By establishing\n(observing sites) in the world.\" In addition to providing astronomers\nin France and Canada with a unique site for an optical telescope, the\ninstruments for use by nonprofit institutions, Public Law 89-651 made\npublic policy and procedures regarding duty-free entry of scientific\nproject will also benefit the U.S. scientific community, according to\nit unnecessary to consider separate relief bills for nonprofit institu-\nboth the National Science Foundation and the National Aeronautics\ntions seeking to import free of duty scientific equipment not available\nand Space Administration.\nin the United States. In light of this public law, the committee has\nSpecifically, the memorandum of understanding provides that the\nconsidered why the provision of Public Law 89-651 should not be\ntotal cost of the construction of the project, including the telescope, its\napplied to the Canada-France-Hawaii telescope project.\nbasic instrumentation, its dome, and associated buildings (approxi-\nThe committee has determined that the favorable consideration of\nmately $20 million), is to be borne equally by the scientific agencies of\nH.R. 11796, as reported, is not a departure from public policy of Pub-\nFrance and Canada. The initial contribution of the University of\nlic Law 89-651 due to the unique characteristics of the joint interna-\nHawaii will consist of a long-term lease of the site and provision\ntional undertaking involving scientific agencies in Canada and France\nof certain support services and facilities.\nand the cooperation, including the provision of the site for the observ-\nThe memorandum of understanding also provides that once con-\natory, of the University of Hawaii. In addition, the size of the proj-\nstruction has been completed, operating costs will be shared as follows:\nect and its development over an extended period of time make it most\n42.5 percent each for the Centre National de la Recherche Scientifique\ndifficult, if not impossible, to use the detailed petitioning and approval\nof France and the National Research Council of Canada, and 15 per-\nprocedures for the duty-free treatment of scientific instruments estab-\ncent for the University of Hawaii. Likewise, interests in the nonprofit\nlished by the Department of Commerce and the U.S. Customs Service\ncorporation established under the laws of the State of Hawaii to op-\nunder Public Law 89-651.\nerate the project are assigned to the three cooperating agencies on the\nThe committee has received no objections to the enactment of H.R.\nsame proportional basis. A similar distribution of observation time on\n11796 from any interested party. Favorable reports were received on\nthe telescope is provided.\nthe bill from interested executive branch agencies, and the committee\nThe predominant interests and contributions of the two scientific\nhas amended the bill at the suggestions of the Departments of Treas-\nagencies of France and Canada in the project are also recognized by\nury and Commerce to more closely conform the provisions of the bill\nthe memorandum of understanding in the special provisions regarding\nto the intent of Public Law 89-651.\nthe maximum use of French and Canadian industrial capacity in the\nPreliminary estimates furnished the committee relative to articles\ndesign and construction of the telescope, its basic instrumentation, its\nto be entered under the provisions of H.R. 11796 indicate an estimated\ndome, and associated buildings, and in the production of high-tech-\nvalue of $7.6 million. A listing of products which will be imported into\nnology components. Related to this aspect of the project is H.R. 11796\nthe United States for use in the telescope project is included below,\nwhich carries out the commitment of the University of Hawaii to ask\nimmediately following the memorandum of understanding.\n\"governmental authorities to grant, in accordance with applicable\nIn view of the likelihood that import duties existing under present\nlaws, relief from taxes, including but not restricted to, customs duties,\nlaw would add unnecessary costs and complications to the project, the\nexcise and sales taxes on all goods imported specifically for use in the\ncompletion of which would be of real benefit to the American scien-\nrealization of the project and its continuing operation.\"\ntific community, and in the interest of the international practice of\nH.R. 11796, as reported by the committee, will provide for the\nfacilitating international scientific endeavors, the committee has\nduty-free entry of imported articles required by the Canada-France-\nfavorably reported H.R. 11796, as amended.\nHawaii telescope project. The duty-free entry is limited to the optical\ntelescope, and the laboratories, equipment, and installation necessary\nfor its operation, as provided in the memorandum of understanding,\nsigned at Ottawa on October 25, 1973, among the three agencies.\nS.R. 1355\nS.R. 1355\n4\n5\nB. SUSPENSION OF DUTY ON CERTAIN FORMS OF ZINC\ncreased 203,000 tons, or 64 percent. Moreover, the committee is further\nIn the period 1969-1973, the U.S. demand for slab zinc metal in-\nadvised that had not large quantities of zinc been released from the\ncreased from 1.4 million tons in 1969 to 1.5 million tons in 1973. During\nGovernment stockpiles in that year, imports of metal probably would\nthis same period, U.S. production of slab zinc metal declined from 1.1\nhave exceeded the previous year's imports by more than 140 percent.\nmillion tons in 1969 to 688,000 tons in 1973. The decline in U.S. produc-\nThe committee is assured that suspension of the duty for the tempo-\ntion was caused by the closures of several smelters in the United States.\nrary period provided in this bill will not adversely affect domestic\nThese closures resulted from a number of interrelated factors such as\nzinc mines. No unfavorable reports or comments were received by the\nhigh production costs, plant and technology obsolescence, environ-\ncommittee on the bill.\nmental control regulations and a lack of zinc ores and concentrates.\nWithin the last year, certain U.S. firms have announced their inten-\nC. DUTY EXEMPTION FOR ALCOHOLIC BEVERAGES AND CIGARETTES BROUGHT\ntions to construct large technologically advanced zinc smelters in the\nINTO THE UNITED STATES\nUnited States. These plants would smelt both domestic and imported\nThe purpose of the committee amendment is to equalize the per-\nzinc ores and concentrates.\nsonal liquor and cigarette duty exemption for returning residents and\nHistorically, imported zinc ores and concentrates have been used to\nnonresidents. The amendment would amend Section 812.25 of the\na significant degree in the production of slab zinc in the United States.\nTariff Schedules of the United States (relating to nonresident exemp-\nIn 1969, about 54 percent of U.S. production of slab zinc was smelted\ntions) to eliminate alcoholic beverages and cigarettes from the cate-\nfrom foreign ores and concentrates compared to only 29 percent in\ngory of articles a nonresident can import duty-free under his $100\n1973. One of the primary reasons for this decline in the imports of\nexemption for bona fide gifts. The items he or she could bring in free\nzinc ores and concentrates in relationship to the needs of the existing\nof duty for his or her personal consumption would not be affected.\nand proposed U.S. zinc smelters is the U.S. tariff on zinc ores and\nThe amendment would also change Section 813.30 of the Tariff Sched-\nconcentrates and other zinc-bearing materials. Zinc ores and concen-\nules to limit the number of cigarettes that could accompany a return-\ntrates are imported duty free into other major zinc metal-producing\ning American resident to 200 (one carton). The amendment would also\ncountries. Thus, the U.S. tariff places both the existing and proposed\nU.S. smelters at a competitive disadvantage in purchasing zinc ores\ncut this number of duty free cigarettes a nonresident could enter for\nhis own use from 300 to 200. Item 813.10 of the Tariff Schedules\nand concentrates on the world market.\nwould be amended to provide that citizens of the United States who\nThe committee amendment would end this tariff related competitive\nare residents of American Samoa, Guam, or the Virgin Islands. shall\ndisadvantage of domestic smelters for the temporary period provided\nin the bill. The Committee amendment would amend the Appendix of\nbe treated as residents for the purposes of the applying these items of\nThe Tariff Schedules.\nthe Tariff Schedules of the United States (TSUS) to suspend until\nThe changes proposed by the Committee amendment would in effect\nthe close of June 30, 1977, under rate column numbered 1 (applicable\nlimit all travellers entering the United States to the duty free pur-\nto imports from countries accorded most-favored-nation treatment)\nchase of one bottle of liquor and one carton of cigarettes. (The only\nthe duty on zinc-bearing ores provided for in TSUS item 602.20, zinc\nexception would be in the case of residents returning from the Virgin\ndross and zinc skimmings provided for in item 603.30, the zinc content\nIslands, Guam, or American Samoa, whose one gallon duty free ex-\nof other metal-bearing materials provided for in items 603.49, 603.50,\nemption would be permitted to continue.)\n603.54, and 603.55, and zinc waste and scrap provided for in item\nWhen Congress amended Sections 813.30 and 813.31 of the Tariff\n626.10. The rate column numbered 1 duty on the zinc content of zinc-\nSchedules in 1965, to reduce the personal exemption for alcoholic bev-\nbearing ores and other zinc-bearing materials is currently 0.67c per\nerages allowed returning U.S. residents from one gallon to one quart,\npound and on zinc dross and skimmings is 0.75c per pound. On the\nit neglected to make a corresponding adjustment in the exemption\nbasis of 1972 import data, the ad valorem equivalent of these duties\nallowed nonresident visitors. Under present law, Section 812.25, a non-\nranges from 6 to 20 percent, depending on the zinc content and, in\nresident who intends to remain in the United States for more than 72\nturn, the price of the zinc-bearing material. The column numbered 2\nhours and has not made a previous visit in the preceding six months,\nduties (applicable to imports from Communist countries, except\nhas a duty-free personal exemption of one quart of alcoholic beverages\nPoland and Yugoslavia) would remain unchanged. These duties are\nfor his personal consumption, and five fifths to be disposed by him\n1.67c per pound on zinc-bearing ores and other zinc-bearing materials\nas bona fide gifts, as long as the total value of the beverages stays\nand 1.5c per pound on zinc dross and skimmings.\nwithin the overall $100 personal exemption he is allowed. Alterna-\nThe committee believes that its amendment will assist in maintain-\ntively, he can bring in up to $100 in cigarettes, duty free, to be disposed\ning and improving the position of U.S. smelters vis-a-vis foreign\nof as gifts, or a combination of liquor and cigarettes not to exceed\nsmelters; thereby reversing the increasing dependence of this country\n$100.\non imports of zinc metal as distinguished from ores and concentrates.\nUntil now, this discrepancy has not threatened to complicate cus-\nAccording to statistics provided by the Department of the Interior,\ntoms inspection at points of entry. Most non-residents making pur-\nimports of zinc in ore and concentrate declined 88,000 tons, or 26 per-\nchases at duty-free shops at foreign airports, prior to coming to the\ncent, in 1972 from the previous year, while imports of zinc metal in-\nU.S., have not taken advantage of the five fifths liquor exemption or\nS.R. 1355\nS.R. 1355\n6\n7\nthe $100 cigarette exemption, either because they are unaware of it\nor because of the difficulty in carrying this much liquor or cigarettes\non an air journey with them. Nonresidents arriving by automobile\nbe incurred in carrying out this bill and the effect on the revenues of\nmust come from either Canada or Mexico, both countries in which\nthe bill. The committee estimates that the provisions of this bill deal-\nliquor and cigarette prices for the popular brands are as high or higher\ning with the duty free entry. of the telescope will result in a loss of\nthan in the United States. Since neither country has had duty-free\nrevenue of no more than $1.3 million. The committee estimates that the\nshops on their side of the border, it did not pay for nonresidents to\nrevenue loss resulting from the duty suspension on zinc-bearing ores\npurchase these products before entering the United States by auto.\nand certain zinc-bearing materials in the first full year would be\nFor these reasons, the Customs Service has not felt it necessary to\napproximately $3.1 million. The committee estimates that no revenue\nphysically distinguish residents from nonresidents in making inspec-\nloss would arise as a result of proposed changes in the personal ex-\ntions for these goods. Oral declarations have been accepted, and no\nemption for gifts of alcoholic beverages and cigarettes.\neffort has had to be made to police the requirement that liquor and\ntobacco imported free of duty by visiting nonresidents must be bona-\nIV. VOTE OF COMMITTEE ON REPORTING THE BILL\nfide gifts.\nThis situation is about to change radically. The government of\nIn compliance with section 133 of the Legislative Reorganization\nCanada has recently authorized the establishment of duty-free shops\nAct, as amended, the following statement is made relative to the vote\nat all highway points on the U.S.-Canadian border, and such stores\nof the committee on reporting the bill. This bill was ordered favorably\nwill begin operating as early as next summer.\nreported by the committee without a rollcall vote and without\nIn Fiscal 1972, almost five million persons and over two million\nobjection.\nV. CHANGES IN EXISTING LAW\nvehicles entered the United States at the ten most heavily-used border\npoints. This traffic was a 70% increase in volume over FY 1960. The\nIn the opinion of the subcommittee it is necessary, in order to ex-\ntotal number of entrees from all Canadian points last year was in ex-\ncess of 65 million.\npedite the business of the Senate, to dispense with the requirements of\nsubsection 4 of rule XXIX of the Standing Rules of the Senate (re-\nUnder the current provisions of our tariff law, once such stores\nlating to the showing of changes, in existing law made by the bill, as\nbegin operating, every Canadian citizen or other foreign resident over\n21 years of age will have the opportunity to purchase at these stores up\nreported).\nto six bottles of liquor (one quart for personal use, five fifths for\n\"gifts\") and an unlimited number of cigarettes on their way into the\nU.S. These purchases can be made free to U.S. duty and Canadian\nexcise tax, and thus at approximately 50% of the U.S. prices.\nOnce such purchases are brought into the U.S., there is nothing to\nprevent them from being surreptitiously sold or bartered for mer-\nchandise at U.S. stores, in violation of both the tariff law and revenue\nlaws of the several states. For example at Champlain, New York, the\nmost frequently used entry point from Quebec, where 1.4 million ve-\nhicles and 3.4 million people entered in FY 1972, many Canadian citi-\nzens regularly cross the border once a week to do their grocery shop-\nping in nearby Plattsburgh, New York. A Canadian couple bound for\nPlattsburgh could, under the present exemption, purchase twelve bot-\ntles of scotch at the Quebec duty-free stores for approximately $42.00.\nThose same bottles retail in New York State for $84.00, a considerable\nprofit upon resale or barter. The temptation to abuse the \"bona-fide\ngifts\" requirement would be strong, especially since no effort is now\nmade to enforce compliance with this requirement except through\nbrief oral declaration.\nNo unfavorable comments have been received by the committee on\nthis amendment.\nIII. COSTS OF CARRYING OUT THE BILL AND EFFECT ON THE\nREVENUES OF THE BILL\nIn compliance with section 252 (a) of the Legislative Reorganization\nAct of 1970, the following statement is made relative to the costs to\nS.R. 1355\nS.R. 1355\nH. R. 11796\nSERATE\nNinety-third Congress of the United States of America\nAT THE SECOND SESSION\nBegun and held at the City of Washington on Monday, the twenty-first day of January,\none thousand nine hundred and seventy-four\nAn Act\nTo provide for the duty-free entry of a 3.60 meter telescope and associated\narticles for the use of the Canada-France-Hawai Telescope Project at Mauna\nKea, Hawaii.\nBe it enacted by the Senate and House of Representatives of the\nUnited States of America in Congress assembled, That (a) the Sec-\nretary of the Treasury is authorized and directed to admit free of\nduty imported articles required by the Canada-France-Hawaii Tele-\nscope Project to complete the installation on Mauna Kea, Hawaii, of\nan optical telescope of 3.60 meters diameter, and the laboratories,\nequipment, and installations necessary for its operation, as provided\nfor in a memorandum of understanding, signed at Ottawa on Octo-\nber 25, 1973, among the Centre National de la Recherche Scientifique\nof France, the National Research Council of Canada, and the Univer-\nsity of Hawaii.\n(b) The admission free of duty provided for in subsection (a) shall\nbe accorded to any article imported by or for the account of the\nCanada-France-Hawaii Telescope Project if such article is certified\nby the Executive Director or the Associate Executive Director of the\nCanada-France-Hawaii Telescope Corporation as being required for\nthe completion of the project in accordance with the memorandum of\nunderstanding referred to in subsection (a).\nSEC. 2. (a) The provisions of the first section of this Act shall apply\nwith respect to articles entered, or withdrawn from warehouse, for\nconsumption, on or before June 30, 1980.\n(b) Upon appropriate request therefore filed by the Executive\nDirector or the Associate Executive Director of the Canada-France-\nHawaii Telescope Corporation with the customs officer concerned\non or before the one hundred and twentieth day after the date of the\nenactment of this Act, the entry or withdrawal of any article described\nin the first section of this Act which was made before the date of the\nenactment of this Act shall, notwithstanding the provisions of section\n514 of the Tariff Act of 1930 or any other provision of law, be liqui-\ndated or reliquidated in accordance with the provisions of such first\nsection.\nSpeaker of the House of Representatives.\nVice President of the United States and\nPresident of the Senate.\nDecember 24, 1974\nDear Mr. Director:\nThe following bills were received at the White House on December 24th:\nS.J. Res. 40\nB. 3481\nH.R. 8958\nH.R. 14600\nB.J. Res. 133\nS. 3548\nM.R. 8981\nM.R. 14689\nB.J. Res. 252\n8. 3934\nH.R. 9182\nH.R. 14718\nS. 251\nS. 3943\nM.R. 9199\nH.R. 15173\nS. 356\nS. 3976\nH.R. 9588\nH.R. 15223\nS. 521\nS. 4073\nM.R. 9654\nH.R. 15229\nB. 544\ns. 4206\nM.R. 10212\nH.R. 15322\nS. 663\nH.J. Res. 1178\nH.R. 10701\nM.R. 15977\nS. 754\nH.J. Res. 1180\nH.R. 10710\nH.R. 16045\nS. 1017\nH.R. 421\nN.R. 10827\nH.R. 16215\nS. 1083\nH.R. 1715\nH.R. 11144\nH.R. 16596\nvs. 1296\nH.R. 1820\nH.R. 11273\nM.R. 16925\nS. 1418\nH.R. 2208\nH.R. 11796\nM.R. 17010\nS. 2149\nH.R. 2933\nH.R. 11802\nH.R. 17045\n8. 2446\nH.R. 3203\nH.R. 11847\nM.R. 17085\nS. 2807\nM.R. 3339\nH.R. 11897\nH.R. 17468\nS. 2854\nH.R. 5264\nH.R. 12044\nH.R. 17558\nS. 2888\nM.R. 5463\nH.R. 12113\nH.R. 17597\nS. 2994\nH.R. 5773\nH.R. 12427\nH.R. 17628\nS. 3022\nH.R. 7599\nH.R. 12884\nH.R. 17655\nS. 3289\nH.R. 7684\nH.R. 13022\nS. 3358\nH.R. 7767\nH.R. 13296\nB. 3359\nH.R. 8214\nH.R. 13869\nS. 3394\nH.R. 8322\nH.R. 14449\nS. 3433\nH.R. 8591\nH.R. 14461\nPlease let the President have reports and recommendations as to the\napproval of these bills as soon as possible.\nSincerely,\nRobert D. Linder\nChief Executive Clerk\nThe Honorable Roy L. Ash\nDirector\nOffice of Management and Budget\nWashington, D. C."
}