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JGR/Asbestos Legislation (2 of 3)
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JGR/Asbestos Legislation (2 of 3)
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John Roberts' Subject Files
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Roberts, John G.: Files Folder Title: JGR/Asbestos Legislation (2) Box: 4 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ 33 Box 4 - JGR/Asbestos Legislation (2) - Roberts, John G.: Files SERIES I: Subject File DATE 1946 MARIDUE COMMISSION- CONFIDENTIAL PULICY DOCUMENTATION ] THE NAVAL AND MARITIME SHIPBUILDING PROGRAMS Log No. (Prepared by the Policy Analysis and Records Branch, Office of the Executive Secretary, War Production Board, July 18, Class 1944) No. 033, 3 shiphmal Naval Program July 1940 to December 1941. The Naval construction program started earlier than any other major phase of our defense effort. From 1934 to 1940 almost 600,000 tons of combatant ships had been added to the Navy. By July 1, 1940, the United States Navy had a total of 1,300,000 tons of major combatant ships in service. Making up this total were 15 battleships, of which 3 were overage; 6 aircraft carriers; 18 heavy. cruisers; 19 light cruisers, of which 2 were overage; 225 destroyers; and 101 submarines. 151 destroyers and 68 submarines were overage. The combatant ships in service and the planned additions in the spring of 1940 constituted a sizeable sea force. Had not the world picture changed rapidly at that time, it would not, perhaps, have seemed too inadequate for the task of safeguarding American interests. For with a friendly British fleet protecting the Atlantic approaches to the United States, a one-ocean Navy, largely concentrated in the Pacific, appeared to be adequate for this nation's defensive purposes. The isolation of Great Britain in 1940 by the Nazi invasion of Norway, the Low Countries, and France, together with the simultaneous Japanese aggression in the Pacific, foreshadowed the possibility of simultaneous naval action in two or more oceans. The one-ocean Navy which had seemed adequate a few years. before was now entirely inadequate. As a result, in June 1940 the legislative basis for a two-ocean Navy was laid. In less than two months Congress approved three separate additions to the Navy. When completed, these planned additions of 2,172,000 tons of major combat ships were to triple the size of the fleet as it existed in the summer of 1940. After Congress had acted, the Navy speedily contracted for the new additions. By October 1, 1940, 336 major or combat ships totaling 2,172,000 tons were under construction or on order. In addition, con- tracts for 17 auxiliary ships, 31 patrol vessels, and 132 district craft had been let. 3/ As planned in 1940, this new addition to the fleet was to be of a classical type, preponderantly strong in battleships and WPB, "Defense Progress", No. 1, August 8, 1940. WPB, "Defense Progress", No. 9, October 4, 1940; Memorandum, Rear Admiral E. S. Land to W. S. Knudsen, July 16, 1940. WPB, "Defense Progress", No. 9, October 4, 1940. FURNIES CONFIDENTIAL DECLASSIFIED Authority NND 130022 BY ERC KLES; Bria 5-19-83 CONFIDENTIAL - 2. - cruisers, and relatively weak in aircraft carriers. It was to consist of 17 battleships, 12 carriers, 6 large or battle cruisers, 8 heavy cruisers, 40 light cruisers, 171 destroyers, and 82 submarines. The following planned completion dates underscored the pre-eminent position of battleships às against carriers: Battleships Carriers Battleships Carriers 1941 2 0 1944 3 4 1942 1 1 1945 5 3 1943 4 0 1946 2 4 The 1940 Naval program had one other striking characteristic. The pro- gram concentrated heavily upon large combatant ships. Relatively little emphasis was placed upon small escort and anti-submarine vessels. Obviously, the history of the 1917-18 submarine warfare had either been forgotten or disregarded. Once established, the two-ocean Navy program remained largely unchanged in quantity until Pearl Harbor. However, as the course of the war in Europe and events in Asia became increasingly ominous for the United States, accelerations of scheduled deliveries were made. In December 1940, by authorization of the President, the goal for destroyers was changed from 101 to 149 by the end of 1943. 5/ This acceleration was undoubtedly prompted in part by our transfer of 50 overage destroyers to Great Britain in return for bases in the near Atlantic. A second advance in schedules was made in August 1941, at which time 116,000 tons were added to the scheduled deliveries for 1942. 6/. The two-ocean Navy program launched in the spring and summer of 1940 involved more than just the construction of ships. Because of the size of the program, new shipyards had to be built, and new ways con- structed. Thus, the December 1940 acceleration of destroyers had to be preceded by the laying out of six new shipyards. Moreover, great expansion of facilities for the production of critical components had to be made before completion of the program was assured. Up until December 31, 1941, the total funds appropriated for Naval ships amounted to $9,605,000,000. of that amount, only about 50 percent was allocated for actual construction. The rest of the sum was needed for facilities, armor, armament, and equipment. 4/ Shipbuilding Division, WPB, "United States Naval Shipbuilding Program, Combatant Vessels", August 1, 1941; WPB, "Defense Progress" No. 9, October 4, 1940. Letter, W. S. Knudsen to Rear Admiral S. M. Robinson, December 2, 1940. WPB, "Defense Progress", No. 55, September 12, 1941. 7/ Letter, W. S. Knudsen to Rear Admiral S. M. Robinson, December 2, 1940. 8 NDAC Press Release 293, December 6, 1940; WPB, "Financial Analysis War Program, United States", February 10, 1941 (WPB Document 17). CONFIDENTIAL CONT IDENTIAL - 3 - Merchant Shipbuilding Program, July 1940 to December 1941. - When the war started in September 1939, the United States had the second largest merchant fleet in the world. The United States merchant fleet at that time amounted to about 1,150 ocean-going vessels of 3,000 dead- weight tons or over in size, aggregating approximately 10,500,000 dead- weight tons. Even so, this fleet was entirely inadequate to carry essential seaborne commerce of this country. In 1940 a total of 26,000,000 long tons of dry carge was imported into the United States, of which only 9,300,000 tons or 36.8 percent was carried by American flagships. In 1941 it was estimated that if the United States fleet were forced to carry by itself all the critical war and other essential materials needed by this country there would be an estimated annual shortage of 3,400,000 to 5,700,000 tons of shipping. 9/ There was also one other great deficiency in the-United States merchant fleet as it existed in September 1939. That was in the character of the individual ships making up the fleet. Most of them had been built during or immediately after the World War. Consequently the ships were, for a large part, overage, slow, and unsuited for many purposes required by modern warfare. Some concrete steps had been taken before the outbreak of the war to improve the condition of the United States merchant marine. With the passage of the Merchant Marine act of 1936, a ten year program of construction had been started. This program called for the building of about 50 high-speed standard merchant ships a year so that over a ten year period most of the obsolete vessels would have been replaced. But deliveries under this program had scarcely gotten started when the war broke out and the need for far greater completions of merchant shipping was apparent. From September 1939 through November 1941 the size of the United States merchant fleet was actually shrinking. This was due to our sale or transfer of ships to Great Britain and Panama to aid the British and to circumvent the law barring the use of United States flagships in belligerent waters. By June 1941, one estimate placed the size of the merchant fleet under the United States flag at 6,900,000 tons. 10/ In July 1940, however, a greatly increased program for the construction of standard merchant ships was scheduled. This program called for the con- struction of 10,000,000 tons of standard cargo shipping by early in 1944. But as the course of the war increasingly threatened the security of the United States, even this program appeared to be greatly inadequate 9/ WPB, "Defense Progress" No, 42, May 31, 1941. 10/ WPB, "Defense Progress" No. 49, July 25, 1941. 60MF IDENTIAL CONFIDENTIAL - 4 - to the assumed future needs. The hard fact was that enemy submarines were sinking ships faster than the United States and Great Britain could build ships during 1940 and 1941, From the start of the war until the middle of 1941 submarine sinkings had averaged about 425,000 tons a month. American production of ocean-going ships reached 100,000 tons a month in July 1941 and the peak production of 450,000 tons a month was not scheduled under the new ship program until a year later. 11/ Obviously what was nseded was a ship which could be mass- produced in the shortest possible time, and the construction of which would not interfere with the great naval construction program then under way. The standard cargo ship then being constructed did not fit that bill of particulars. It was expensive to construct in both man- hours and materials, and its main propulsive engines were of the type needed by the naval program. In December of 1941 the Maritime Commission recommended to the President that the so-called "Ugly Duckling" be mass-produced to answer the need for a greatly increased ship production in the shortest possible time. The design for the "Ugly Duckling", since called the Liberty ship, was adapted from a British tramp-steamer type. The new Liberty ship was of 8,600 or more cargo deadweight tons and had a speed of 11 knots. It was powered by a reciprocating engine, the procurement of which would not encroach on the turbine and diesel requirements for combat craft. From the start it was understood that there were to be few changes made on the Liberty ship, to facilitate the use of assembly-line methods and the extensive prefabrication of parts. One other innovation in the con- struction of the ship is noteworthy. It was to be largely electrically welded instead of riveted. 12/ With the design for the new emergency ship approved, plans for its construction were rapidly made. In December 1940 the President allocated to the Maritime Commission $36,000,000 to start preliminary work on a new shipbuilding program. On February 6, 1941, Congress, by Joint Resolution, authorized the construction of the new emergency type. 13/ Thereafter, additional increases were made to the emergency ship program in April, July, October, and December. In the summer of 1941 this country was producing about 100,000 tons of merchant shipping a month. By the December 1941 schedule, the construction of over 500,000 tons a month was planned for 1942. 14/ 11/ WPB, "Defense Progress" No. 49, July 25, 1941. 12/ Memorandum, Rear Admiral E. S. Land to the President, December (?), 1940; Letter, W. S. Knudsen to the President, November 19, 1940; United States Senate, 78th Cong., 2nd Sess., Special Committee Investigating the National Defense Program, Report No. 10, Pt. 18, June 23, 1944. 13/ Memorandum, Harold D. Smith to William S. Knudsen, December 31, 1940; The President to Rear Admiral E. S. Land, April 14, 1941. 14/ Planning Committee, WPB, "Report on Maritime Shipbuilding Program", July 20, 1943 (Planning Committee Document 133). CONFIDENTIAL - 5 - Facilities, Components, and Materials, Before a good start could be made on either the Naval or Maritime construction programs the shipyards and the new ways needed to build the ships had to be planned and constructed. Since the increased Naval program had been planned and under way many months before 1941, the problem of ways did not seriously interfere with the construction of the larger com- batant ships. But from its start, the Maritime program was limited by the number of ways available. In 1936 there were only 10 ship- yards and 46 ways in this country capable of producing ocean-going vessels of 400 feet longer. A handful of new ways had been con- structed between that time and 1940. But in 1941, seven new ship- yards with 50 new ways had to be constructed before the delivery of 200 new merchant ships could be assured during the next two years. 17 6 Every increase to the merchant ship program after that date meant additional shipyards and-new- ways. When the peak Maritime Program 96 300w of 20,000,000 tons had been worked out for 1943 it was to require the utilization of 81 shipyards and over 300 ways. 15/ Throughout the entire period previous to Pearl Harbor, the Maritime Commission encountered especial difficulties in obtaining the materials and components needed for the enlarged merchant ship program. This was not only because of the greatly increased Mar1= time need for these items but also because of the severe competi- tion afforded by the Navy for many of these same items and the facilities making them. And in the competition between the Navy and the Maritime Commission the odds were all with the Navy. For one thing, the expanded Navy program had started much earlier than the merchant ship program and thus the Navy got the jump on the Maritime Commission as far as selection of facilities were concerned. For a second thing, combatant ships seemed more closely connected with the defense effort than merchant ships, and manufacturers tended to react more favorably to the appeals of the Navy. Seemingly, only in priori- ties did the Maritime Commission fare as well as the Navy Department. But this happy state of affairs lasted only until November 7, 1941. When the Maritime Commission contacted manufacturing companies with proposals to build reciprocating engines the Commission was told in practically all cases that any promises to the Maritime Commission would have to await until their commitments to the Navy had been worked out in full. 16/ Substantially the same story was repeated in the quest for turbines, valves, and gears. of the needed materials, steel was by far the most important and by far the most critical. 15 Memorandum, Rear Admiral E. S. Land to Frank Knox et al., February 4, 1941; United States Senate, 78th Cong., 2nd Sess., Special Committee Investigating the National Defense Program, Report No. 10, Pt. 18, June 23, 1944. 16/ Letter, Rear Admiral E. S. Land to W. S. Knudsen, March 19, 1941. CONF IDENTIAL CONFIDENTIAL - 6 - Throughout 1941, reports were made repeatedly of ships being held up for the lack of steel. At one time, a Kaiser yard reported that all work had been stopped on three vessels because of the need for steel. 17/ However, both the Navy and the Maritime programs were in need of steel. At the same time that the Maritime Commission was reporting a shortage of steel, the starting of two destroyers was held up at the Charleston Navy Yard for the want of steel. 18/ Production Progress to December 31, 1941. The time lapse between the start of a ship program and the actual production of ships is great, especially when yards and ways have to be constructed before work can start. After facilities have been completed, the actual con- struction time of larger ships amounts to many months and in case of the larger combatant ships, years. Obviously then, much of the neces- sary preparatory shipbuilding work done in 1940 and 1941 did not show up in Naval and Maritime completions during that time. Still, the deliveries during these years were not negligible. From July 1, 1941, to December 31, 1941, 2,228 Navy ships of all classes were completed, with a total tonnage of 1,354,000 tons. 49 of these were combatant ships, a figure which included two 35,000 ton battleships, one 19,800 ton carrier, one 6,000 ton light cruiser, and sixteen submarines of 1,526 displacement tons. The rest of the Naval tonnage was made up of landing craft, patrol vessels, and auriliaries. 19 Maritime deliveries for the period from July 1, 1940, to December 31, 1941, amounted to 135 shipa of 1,551,000 tons, Making up this total were 77 standard high-speed cargo vessels and 37 standard tankers. The Liberty ship program, the design for which had been selected in December 1940, produced seven ships during the last half of 1941, a figure which well illustrates the length of time needed to get a mass-production ship program under way. 20/ Naval Program, January 1942 to June 1943. Prior to Pearl Harbor a good start had been made on the program to change the United States Navy from a one- to a two-ocean Navy. With the entrance of this nation into the global struggle and with the enormous damage done to our &fleet on December 7, 1941, this two-ocean Navy program appeared to be entirely inadequate to meet the existing situation. Within three months after Pearl Harbor the funds appropriated for Navy ships had been increased from $9,600,000,000 to $15,400,000,000. And by September 1942 complete 17/ Letter, Henry J. Kaiser to Benjamin F. Fairless, June 30, 1941. 18/ Memorandum, W. H. Harrison to J. D. Biggers, April 24, 1941. 19/ WPB, "Official Munitions Production of The United States", July 1, 1942, June 1, 1944. 20/ WPB, "Official Munitions Production of The United States", July 1, 1942, June 1, 1944. IDENTIAL CONFIDENTIAL - 7 - plans had been made for a "Five Ocean Navy", which contemplated quad- rupling the size of the existing fleet to bring the total combat tonnage to about 8,000,000 tons. In addition to these great increases, the entire Naval program was accelerated by months. Ships which were previously scheduled for the late months of 1942 were now scheduled for March and April of 1942. And many major units scheduled for completion in 1943 were now brought into 1942 schedules. This "Five Ocean Navy" program, with certain important alterations, has remained in its larger outlines the basic Havy ship program until the present. Paralleling it, of course, was another huge program for Naval facilities, including dry docks and other facilities. 21/ Following the naval engagement in the Coral Sea and the one off Midway Island in May and June of 1942 a major change was made in the heavy combatant ship program. In those two sea battles, 23 ships were sunk by naval air action without the opposing fleets getting in gun range of each other. This fact, together with the experience at Pearl Harbor, convinced the Navy of the tremendous striking power of the carrier compared to that of the battleship. In June 1942, the construc- tion of five battleships and four heavy battle cruisers was indefinitely postponed to make way for the construction of more carriers. 22/ At the start of 1942 the United States Navy had seven carriers, of which four were sunk during that year. Moreover, as of February 1942, only one regular carrier was scheduled for completion in 1942 and twelve more in 1943, 1944, and 1945. After the battle of Midway this lack of balance was hastily corrected. By September 1942 the Navy had scheduled 30 regular carriers and 9 small carriers to be converted from 10,000 tom cruisers. During 1943, six 27,000 ton carriers and all nine of the converted carriers were delivered, thus relieving a critical deficiency in American seapower. 23/ of particular interest during 1942 and 1943 was the Navy's destroyer escort and aircraft carrier escort programs. From the start of war until December 1942, German submarines had sunk an average of about 450,000 tons of Allied merchant shipping & month.- After Pearl Harbor this rate took a decided upturn with the inception of total submarine warfare in the Nes- tern Atlantic. During 1942, the United Nations lost an average of about 21/ WPB, "Financial Analysis War Program United States", February 10, 1942 (WPB Document 17); WPB, "War Progress", No. 108, October 9, 1942; Memorandum, W. H. Harrison to Donald Nelson, February 2, 1942. 22/ WPB, "War Munitions Progress Report", June 16, 1942 (WPB Document 96). 23/ WPB, "Official Munitions Production Of The United States", April 1, 1942, July 1944; Navy, Bureau of Ships, "Combatant Vessels Under Con- struction", February 1, 1942. CONFIDENTIAL - 8 - 750,000 tons of shipping a month, and by September 1942 the total ton- nage of merchant ships available to the United Nations was about 10,000,000 tons less than the total available in 1939. 24/ Obviously, the United Nation's war effort was seriously curtailed if not imperiled by this wholesale destruction of merchant shipping. At the time of Pearl Harbor, and for months thereafter, this nation had to rely almost entirely on the destroyer to protect its merchant convoys. But the United States had entirely too few destroyers for the task, and the destroyers available were often needed elsewhere. As pointed out before, during 1940 and 1941 the Navy had concentrated on large combat ships and had neglected smaller craft. During that period anti-submarine type crafts had comprised only about six percent of the total naval deliveries. In the face of steadily mounting losses, this was raised to about 22 percent in 1942 and about 40 percent in 1943. 25/ Relying on British experience, the United States Navy started the construction of two special types of vessels to control the submarine menace. The first of these was the aircraft carrier escart, a converted merchantman carrying planes, and the second, the destroyer escort. Two more or less experimental carrier escorts were constructed in 1941, and 13 were delivered in 1943, 5 of which were sent to the British. During 1943, 50 carrier escorts were constructed, 31 by the Navy and 19 by the Maritime Commission. 40 more escort carriers were scheduled for 1944. As predicted by its advocates, the carrier escort has been signally successful in combating the submarine. 26/ As its main anti-submarine craft, however, the Navy devised the destroyer escort. This was a 1,500 ton craft, about two-thirds the size of the large destroyer and twice the size of the largest submarine chaser. The first destroyer-escort contracts were let in January 1942. Their construction was hampered, however, by interference from the landing craft program, and the first destroyer escort was not completed until January 1943, thirteen months after the United States had entered the war. Reflecting the spiralling rate of sinkings by submarines, the destroyer- escort program was repeatedly raised during 1942 until 750 of them had been scheduled for delivery before 1945. "Meanwhile, the Navy, because of its lagging anti-submarine craft program, had to convert hundreds of pleasure and commercial vessels into coast guard and escort work. 27/ 24 WPB, "War Progress", No. 163, October 1943. 25/ WPB, "War Progress", No. 125, February 5, 1943. 26/ WPB, "War Progress", No. 119, December 25, 1943; WPB, "Official Munitions Production Of The United States", June 1, 1944. 27/ WPB, "War Progress", No. 102, August 28, 1942; Progress Division, WPB, "Report to the War Production Board", August 1942 (WPB Document 130). CONF IDENTIAL CONFIDENTIAL - 9 - The submarine war became so serious in 1942 and the production of destroyer escorts lagged 80 badly that the destroyer-escort program was raised at the end of the year to a position of the highest urgency on the President's "Must Programs M 28 At the same time, the WPB made available to the program its special expediting service that had been BO successful in the first landing craft program. Rated as an AA-1 pro- gram, the production of destroyer escorts first exceeded the current schedule plus past deficits in October 1943. But for the year 1943, 306 such ships were produced as against a schedule of 260. The ultimate result of these production figures was reflected in the sharply declin- ing rate of ship sinkings. By September of 1943 the destroyer-escort program was being cut back. 29/ of pre-eminent importance to strategical developments abroad was the Navy's landing craft program. Measured by either tonnage or cost figures, the landing craft program was the largest small vessel program scheduled by the Navy. Starting with a few tank lighters of assorted shapes and sizes in 1937, the landing craft program by 1944 included thousands of vessels ranging in size from small rubber raiding boats of a few pounds to ocean-going vessels of 4,500 tons and over. Among the most important types of landing craft which have been developed for amphibious warfare are the LVT's (Landing Vehicle, Tracked) which are able to operate on both land and water and which, when armored, are really seagoing tanks; the ISM's (Landing Ship, Medium) of 490 tons, which are designed to carry men and equipment through very shallow waters; the LST's (Landing Ship, Tank) ocean-going ships of 1,490 tons which carry tanks and other heavy equipment items to a beach and disgorge them through their open bow; and the ISD's (Landing Ship, Dock), which transport other landing craft and which act as repair ships for other landing craft. Landing craft schedules have naturally reflected future amphibious operations. The first great landing craft program was started in April 1942 when the Navy was ordered to provide craft for the North African and Pacific operations scheduled to start in the fall of that year. When the final requirements for these indispensable vessels were totalled in September 1942 the long-time program was tremendous in size. By that time landing craft requirements totalled 9,598 vessels of varying size to be 1 delivered by the end of 1946. 30/ 28 Letter, Rear Admiral E. S. Land to W. Francis Gibbs, January 21, 1943. 29 Progress Division, WPB, "Monthly Report to the War Production Board", January 1944 (WPB Document 270). 30/ Progress Division, WPB, "Monthly Report to the War Production Board", October 1942 (WPB Document 142). CONFIDENTIAL CONFIDENTIAL - 10 - Since most of the regular shipbuilding yards were busy with other types of Navy vessels, landing craft orders had to be given to small boat yards, bridge construction companies, and other manufac- turing concerns. By June 30, 1942, contracts for landing craft had been let to 5 Navy yards, 22 major private yards, 11 minor private yards, 12 small boat yards, and 29 manufacturing companies, some of which had never built ocean-going boats before. of the total number of landing craft yards, 21 were located in the Mississippi River- Great Lakes water sheds. 31/ Both of the great landing craft campaigns have been character- ized by the extreme shortness of time between the date on which the military planners ordered the craft and the date by which they were to be completed. By August 1942, landing craft deliveries were 50 far behind the impossible schedules which had been set in April that a special program to expedite them was organized. Landing craft were put in the most urgent category of vessels wanted by the Navy and all landing craft were given an AA-1 priority rating. Thereafter a spec- ial WPB organisation was created to work with the Navy to expedite the delivery of landing craft materials and components. With this special aid, landing craft deliveries, which had been running 50 per- cent or more behind schedules in September, met the schedule in full by December 1942. And by February 1943, production was so great that the program was leveled off thereafter to about half the rate of that month's production. From July 1940 to December 1941 the Navy had pro- duced 8,328 tons of landing craft; 230,000 tons were produced in 1942, and 793,000 tons in 1943. 32/ The second great landing craft program was started after strategic plans had been made for the invasion of Western Europe. To make the second front possible, schedules for landing craft were in- creased sharply in September, October and November 1943. 33/ As in the first program, the time between the planning of the program and the expected delivery dates was desperately short. It was not until December 1, 1943, that a final decision was made on the exact amounts of landing craft needed for the invasion of France. Between that date and the deadline date of May 31, 1944, the schedules called for the delivery of about 675,000 tons of landing craft. This figure repre- sented the absolute maximum which the Navy thought it possible to produce. 31/ WPB, "War Progress", No. 117, December 11, 1942. 32/ WPB, "Official Munitions Production of The United States", July 1, 1944. 33/ Bureau of Ships, "Landing Craft Progress Report", September, October, November, December 1943. CONFIDENTIAL - 11 - On December 1, 1943, the delivery of these requirements looked like an almost impossible task. And up until April 1944 deliveries for each month lagged badly behind the published schedule. But in April and May 1944 production shot up under the impetus of a great campaign. By May 31 total deliveries for the six months came within 12,000 tons of meeting the schedules. Undoubtedly this was one of the most suc- cessful high-speed jobs of war production accomplished by this nation. 34/ The WPB played an important part in this second landing craft program. Three months before the final decisions were made on the quantities of craft needed, the WPB was advocating increases on the grounds that the existing schedules were inadequate to meet future requirements. 35/ While on a trip to England in September, Donald Nelson conferred with high military authorities there and found that they considered the existing schedules for landing craft to be inade- quate. He immediately cabled Gharles E. Wilson asking him to do every- thing possible to increase the production of landing craft. 36/ Within two days after landing craft requirements were finally set, an organization within the WPB was created to help expedite materials and components for the program. Within the next five months this organisation handled well over 2,000 requests from the Navy for special priority assistance. In answer to these requests the WPB granted over 2,200 directives on materials and components for landing craft valued at $41,452,451.00. 37/ That the work of this WPB organi- zation was effective was evident in the Navy statement that "sufficient quantities of materials and components" were being supplied to assure landing craft production on schedule. 38/ Total Navy Production, January 1, 1943 to May 31, 1944,-On June 30, 1940, the total tonnage of the United States Navy amounted to 1,875,000 tons; on December 31, 1941, the total tonnage was 2,636,000 tons; by May 31, 1944, that figure had been increased to 7,142,000 tons. In other words, in two-and-a-half years approximately 4,500,000 tons of ships had been added to the Navy. Included in that total tonnage were 7 battleships, 4 heavy cruisers, 19 light cruisers, 19 aircraft carriers, 34/ Minutes, War Production Board, Meeting LXXIIII, June 13, 1944. 35/ Progress Division, WPB, "Monthly Report to the War Production Board", July 1943 (WPB Document 242). 36/ Cablegram (State Department paraphrase), Donald M. Nelson to Charles E. Wilson, (Through Ambassador Winant and Secretary of State) September 27, 1943. 37/ Special Rating Branch, WPB, "History of the Accelerated Landing Craft Program", no date. 38/ Memorandum, "Statement of the Navy Department Before the War Pro- duction Board on Landing Craft Production", April 4, 1944 (WPB Document 291). GONF IDENTIAL CONE - 12 - 191 destroyers, 121 submarines, 129 destroyer escorts, and 49 aircraft escort carriers. 39/ In addition to these major combat ships, 34,850 landing craft of 1,600,000 total tons had been produced along with hundreds of auxiliary vessels and other types of smaller craft. 40/ Maritime Shipbuilding Program January 1, 1942 to June 1944.- After Pearl Harbor this nation's merchant shipbuilding program began a fateful race with the German submarine. As submarine sinkings skyrocketed during 1942, merchant shipbuilding schedules followed. About 3,100,000 tons of United Nation's shipping had been destroyed by submarines in 1940, and another 3,100,000 tons had been destroyed in 1941. During 1942 the comparable figure was. 9,200,000 tons. This great increase in sinkings resulted in part because the United States Navy was not prepared to perform an adequate job of convoying. During the first World War the ratio of escort vessels to merchantmen had been about one to three. In 1942 that ratio, because of the lack of escorts, varied between one to five and one to ten. Beyond the paucity of escort vessels the submarine had the advantages in the second war of more accessible bases, a far greater operational range, much greater speed, and a significant increase in numbers. In January 1943 Germany had about 400 submarines in service; the mumber during the First World War was never greater than 140. 47/ These things added together meant wholesale destruction of United Nations shipping and an herculean job for the United States Maritime Commission. In the words of the WPB Planning Committee, the Commission's really "impossible job" was to build merchant ships faster than an "unmolested enemy" could sink them. 42/ As sinkings rose during 1942, the shipbuilding schedules for deliveries advanced rapidly. Four separate increases took place by June 1942. At that time the schedules called for the construction of 8,300,000 tons of shipping in 1942 and 19,900,000 during 1943. 43/ This goal of about 27,000,000 tons of shipping in two years remained with some downward alterations as the shipbuilding objective by January 1, 1944. There were many obstacles in the way of achieving this tremendous merchant shipbuilding program. Much of the program had to wait on the construction of new shipyards and new ways. Once built, the new yards 39/ WPB, "War Progress", No. 158, September 25, 1943. 40 WPB, "Official Munitions Production Of The United States", June 1, 1944. 47 WPB, "Merchant Ship Sinkings and the Submarine Mar" (WPB Document 188). 42/ Planning Committee, WPB, "Maritime Shipbuilding Program", Recommen- dation No. 5, May 16, 1942. 43/ Planning Committee, WPB, "Report on Maritime Shipbuilding Program", July 20, 1942 (Planning Committee Document 133). CONT IDENTIAL - 13 - required time to learn the "know-how" of mass production shipbuilding. Moreover, shipyards were constantly plagued with manpower and materials problems. To some extent the wage stabilization plan for shipyards worked out with WPB assistance prevented acute labor trouble, but at the end of 1942 it was estimated that the shipbuilding industry would need 900,000 additional workers to maintain peak production at all yards. 44 More serious than the actual mumber of workers involved were the problems of labor turnover and the need for training the available labor in the particular skills wanted. In March 1942 the California Shipbuilding Company had a total of 22,000 workers, but only 700 of those employees had any previous shipbuilding experience. At that time training was being given or had been given to 14,000 employees. 45/ The turnover of labor continued to be a problem through 1943. In May 1943 the average turnover of labor for all shipyards was 11.2 percent of the personnel. Only 2 per- cent of this was attributable to selective service. After that date, how- ever, the War Manpower Commission's restrictive orders proved to be of substantial help in reducing labor turnover. 46/ Throughout 1942 and 1943 the merchant shipbuilding program was held up from time to time by the shortage of gears, turbines, diesel engines, valves, and steel. Of all these items, the most serious shortage was the one existing in steel plates and shapes. At one time in 1942 the lack of steel was reported to be holding up production in most of the Pacific Coast Yards. 47/ During this period of the war the total supply of steel was far below the total requirements and so all claimants suffered. But the Maritime Commission, because of its unfavorable priority position as compared to the Army and Navy, was hurt much more than either of these Services. Throughout 1942 the Navy aggravated the Maritime Commission's steel problems by diverting steel from the merchant ship program by means of its higher priorities. 48/ Up until December 1941 the Army-Navy Munitions Board had granted T merchant vessels an equal priority with Naval construction. After December 17, 1941, however, this was no longer true and the merchant-ship program thereafter was given an inferior priority rating. The Maritime Commission received almost daily notifications of delays due to this priority disparity. Appealing to the Army-Navy Munitions Board for equal status, Rear Admiral Vickery estimated that it would delay the program by as much as five months and would be particularly harmful to the production of tankers. 149/ But no relief was given to the Commission despite the judgment of the Commander of 44/ Minutes, War Production Board, Meeting VI, February 24, 1942. 45/ WPB Press Release 442, March 6, 1942. 46/ WPB Press Release 3415, May 4, 1943. 47/ Minutes, War Production Board, Meeting XXII, June 30, 1942. 48/ Minutes, War Production Board, Meeting XXII, June 30, 1942. 49 Letter, Rear Admiral H. L. Vickery to Army-Navy Munitions Board, January 22, 1942. CONFIDENTIAL - 14 - the United States Fleet that there was little use in producing all the materials of war unless we could transport them abroad. 50/ Instead, this unequal priority treatment was carried to the point where aircraft escort carriers being constructed by the Maritime Commission carried a lower priority than similar Navy construction. 51/ When the entire priority system was revised in May 1942, the priority granted to the merchant-ship program by the Army-Navy Munitions Board was still inferior to the priorities granted to the Naval program. This was done in spite of the fact that the submarine campaign had reached a peak of destructiveness and the entire war effort of the United Nations was being threatened by the deficiency of shipping and the tremendous loss of cargo on the high seas. Whereas an AA-1 priority was granted at that time to all Navy vessels that could be completed before March 31, 1943, a similar rating was given to only 50 percent of the Maritime program that was to be completed before January 1, 1943. 52/ Even then there had been little conceded to the Maritime Commission for a WPB analysis of the shipbuilding program revealed that 50 percent of the 1942 program was to be completed by August 1942. Since the materials for these ships had to be delivered in May 1942 to insure delivery by August, the analysis concluded, "no materials are listed for the Maritime Commission in the AA-1 category." 53/ But, despite protests by the WPB Planning Committee, the inequality in priorities was continued. 54/ One of the chief reasons contributing to this inequality in priorities was the lack of proper Maritime representation on the Army- Navy Munitions Board. The Maritime Commission had representatives to this Board that determined priorities for all munitions, but they were in a subsidiary position, and on a numerical basis alone could be outvoted by the representatives of the Army and Navy. Some of the inequalities resul- ting from priorities might have been alleyiated had the WPB Shipbuilding Division been more energetic in aiding the Maritime program. But appar- ently this division lacked either the disposition or the energy to act strongly in behalf of the Maritime program. In the summer of 1942 the Navy, by means of its superior priorities, was placing orders in plants booked solidly with Maritime orders, thus setting back the delivery of needed components for merchant ships. Commenting on these delays, the WPB Planning Committee observed that "with the exception of scheduling main propulsion equipment, especially turbines and gears and electro-drive mechanism, the Shipbuilding Branch of W.P.B. is paying little attention to this problem. "55/ 50/ Memorandum, Commander-in-Chief United States Fleet to The Secretary of the Navy, February 20, 1943 (WPB Document 32). 51/ Minutes, War Production Board, Meeting VI, February 24, 1942. 52/ Letter, Army and Navy Munitions Board to Donald M. Nelson, May 20, 1942. 53/ Memorandum, Bertram Fox to Stacy May, June 2, 1942. 54/ Planning Committee, WPB, "Report on Maritime Shipbuilding Program, July 20, 1943 (Planning Committee Document 133). 55/ Planning Committee, WPB, "Report on Maritime Shipbuilding Pregram", July 20, 1942 (Planning Committee Document 133). CONFIDENTIAL CONFIDENTIAL - 15 - Perhaps it is not out of place to observe here that both the Maritime Commission and the WPB Shipbuilding Division were headed by retired Navy personnel. Because of this fact it may have been that the needs of the merchant shipbuilding program may not have been pre- sented strongly enough when they ran counter to the needs of the Navy program. At least it may be questioned whether, as a matter of good administration, it is advisable to staff a vital wartime agency with personnel attached in their loyalties in any way to another agency, when those agencies are likely to be in competition for scarce materials, components, and facilities. Merchant Shipbuilding Production: January 1942 to May 1944.- The first eight months of 1942 were a critical time in this nation's merchant shipping program. For during this time deliveries were lag- ging badly. On the other hand, the rate of sinkings by submarines was ascending. In only one month out of the eight, July, did new construc- tion in this country exceed in tonnage the amount of losses at sea. Consequently, the size of the United States merchant fleet and that of the United Nations was rapidly approaching the danger point. In March 1942 it was noted that the shipbuilding program probably pre- sented "the most serious aspect of the munitions program." 56/ From September 1942 on, however, the merchant shipping situation rapidly grew better. For one thing, the mass production of merchant ships began to result in mass deliveries. During the last quarter of 1942 the Maritime program delivered a total of 286 ships as compared with 68 in the first quarter. 57/ In conjunction with that fact, sub- marine sinkings began to decline slightly. Deliveries were so good during the last quarter of 1942 that the President's goal of 8,000,000 tons for the year was exceeded by 9,000 tons. This rapidly accelerating pace continued, with the construction during 1943 of 18,300,000 tons of shipping. Moreover, in 1943 the submarine menace was gradually brought 6 under control. With construction outstripping sinkings in virtually every month in 1943, the decline in the size of the United Nation's mer- chant fleet was stopped, and relative increases made. By October 1943 the size of that fleet was back to what it had been in June 1940. From that time on, submarine sinkings dropped steadily while monthly construc- tion figures mounted. By May 1944 the United Nation's merchant fleet rose to 67,000,000. deadweight tons as against the low point of 43,000,000 tons, and about 55,000,000 tons at the start of the war. In May 1944 new construction in the United States totalled 1,600,000 tons; sinkings of all United Nations vessels amounted to 35,000 tons. From July 1, 1940, to May 31, 1944, Maritime yards had delivered about 36,000,000 deadweight 56/ WPB, "War Progress", No. 77, March 6, 1942, No. 102, August 28, 1942. 57/ WPB, "Official Munitions Production Of The United States", March 1943. CONFIDENTIAL CONFIDENTIAL - 16 - tons of ships. American aptitude for construction had vanquished German power of destruction. 58 In making the above deliveries the American shipyards participating in the program broke all established shipbuilding records. In 1941 the average time consumed in the construction of a Liberty ship from keel lay- ing to delivery was 235 days. By the end of 1942 the average for all yards had been reduced to 56 days. Particularly brilliant in 1942 was the record set by the Oregon Shipbuilding Corporation in completing a ship in 14 days. 59/ The overall tonnage record set by the Maritime program would have been impressive if it had included nothing but merchant shipping. But from 1942 on, the Maritime Commission built an increasing number of vessels for critical Navy programs. Maritime yards constructed 19 military-type vessels in 1942, 167 in 1943, and were scheduled for over 250 such vessels in 1944. By types, these military vessels ranged from aircraft escort vessels, landing ships, tanks, and corvettes to troop transports. In 1943, for example, 31 of the 50 vessels converted to the escort carriers were constructed by the Maritime Commission. 60/ In the same year, 60 IST's were constructed in Maritime yards. After the German submarine had been appar- ently brought under control, the Maritime Commission was asked by the Navy to construct appreciable numbers of special troop transports and attack transports. 229 transport-attack and cargo-attack vessels and 47 troop- ships were scheduled for 1944. 61/ As each one of these types of military vessels was of special design and required a large amount of special out- fitting, they interrupted the cycle of production for merchant ships. For every ton of special military vessels constructed, the Maritime Commission lost an equivalent four or five tons of merchant shipping. Another great change was made in the Maritime program when submarine sinkings declined sharply. That was the gradual substitution of the Victory 6 ship for the Liberty ship. The Liberty ship, or the "Ugly Duckling" as it had first been known, was strictly an emergency ship. It was a slow ship, an ungraceful ship, and none too large as standard cargo vessels go. It had been constructed because it had been capable of fast mass production and because it used relatively few of the more critical components needed in urgent combat vessels. However, these same features useful in an emer- gency would militate against its usefulness in peacetime. In ordinary 58 WPB, "War Progress", No. 195, June 10, 1944; WPB, "Official Munitions Production Of The United States", June 1, 1944. 59/ WPB, "War Progress", No. 94, July 3, 1942, No. 112, December 11, 1942. 60/ WPB, "War Progress", No. 172, January 1, 1944. 61 WPB, "War Progress", No. 179, February 19, 1944. CONFIDENTIAL - 17 - times, it was feared, the competition of more powerful, larger, and faster cargo vessels of foreign nations would drive it from the seas. Proposals were therefore made in the middle of 1943 to substitute the construction of a new ship, the so-called Victory ship for the Liberty ship. The new Victory ship was to be longer and wider than the Liberty ship, more elaborately fitted, and with considerable more power and speed. Whereas the top speed of the Liberty type was 11 knots, the speed of the new Victory ship was to be 15 knots. It was estimated that the new Victory ship would cost $238 per ton as against $170 for the Liberty and that it would require double the time to construct. 62/ Previous to 1943 there had been some support for constructing faster merchant ships on the grounds that their greater speed would better protect them from submarine attack. But each time the proposal was made it was defeated on the score that a faster ship would take. longer to construct and that it would require main propulsion units that were critically needed for combat ships. Raising the same objec- tions in 1943, Charles E. Wilson refused to authorize materials and components for the new Victory ship until its construction had been approved by the Combined Shipbuilding Committee and the Combined Chiefs of Staff. 63/ The Combined Shipbuilding Committee had been created to standard- ize the design of all ships in this nation's shipbuilding program. 64/ W. F. Gibbs, WPB Controller of Shipbuilding, was its chairman. Gibbs, who had attempted without too much success to standardize Navy designs had had better luck on the Maritime program. Acting as WPB Controller of Shipbuilding and as Chairman of the Combined Shipbuilding Committee, W. F. Gibbs had been instrumental in reducing the number of types of geared turbines used by the Maritime program from 27 to 9, the number of types of turbo-generator sets from 77 to 17, and the number of types of tugs constructed from 23 to 7. 65/ 62 Minutes, WPB, Meeting LVIX, May 25, 1943; WPB, "War Progress", No. 176, January 29, 1944. 63, Letter, c: E. Wilson to Ralph Cordiner, March 24, 1943. 64/ As one illustration, Gibbs had pointed out early in 1943 that the Navy was constructing five different types of destroyer escorts and corvettes and that each type had a different main propulsion unit. His argument, however, that standardization would mean a great sav- ing in manpower, materials, and time was overruled by the Navy on the grounds that they were too far committed to the existing programs to effect a change. Letter, W. F. Gibbs to J. V. Forrestal, January 19, 1943. 65/ WPB Press Release 4089, August 22, 1943. COMP - 18 - The Combined Shipbuilding Committee approved the construction of Victory ships after a simplified type of geared turbine had been substituted for the Lenz engines in the original design. 66/ After this decision the first few Victory ships were scheduled and the first delivery was made in February 1944. 67/ In January 1944, when it was obvious that the submarine menace was being substantially controlled, sharp cuts were made in Liberty ships, and increased numbers of Victory ships were added to the 1944 schedules. As of June 1, 1944, 741 Liberty ships and 129 Victory ships were scheduled for production in 1944. For 1945, 104 Liberty ships and 278 Victory ships were scheduled. 68/ 1 66, Memorandum, Charles E. Wilson to Ralph Cordiner, May 13, 1943. 67/ WPB, "Official Munitions Production Of The United States," June 1, 1944. - 68 WPB, "Official Munitions Production Of The United States", June 1, 1944. CONFIDENTIAL MARITIME COMMIS July 1, 1940 t Total Maritime Standard Cargo Deliveries Vessels CONFIDENTIAL Biosissar Punishable Under Espissage 10 DWT DWT Tons Tons No. (000) No. (000) 1940 Second Half 31 357 18 185 1941 First Half 46 538 32 323 Second Half 58 628 27 242 1942 January 16 199 3 26 February 25 280 4 33 0 March 26 292 2 17 April 36 401 1 11 May 57 620 2 19 June 66 732 2 19 E ( July 71 792 4 35 August 58 752 3 28 September 93 1,016 7 63 October 81 890 7 64 y 84 2 $ November 893 17 December 121 1,197 11 100 1 Total 1942 746 8,090 49 444 1943 January 102 1,008 4 39 February 130 1,236 14 139 March 145 1,513 19 181 April 154 1,603 15 140 May 173 1,785 12 121 June 161 1 677 18 172 SION DELIVERIES 0 May 31, 1944 Liberty Victory All Ships Ships Tankers DWT DWT DWT Tons Tons Tons No. (000) No. (000) No. (000) 9 134 11 185 7 72 17 248 6 62 7 111 16 171 4 66 20 213 It 62 32 341 3 49 52 555 3 46 58 622 5 81 50 642 5 96 59 635 4 62 74 794 7 109 68 732 4 68 70 754 5 85 82 885 10 155 597 a 6,402 a 62 999 79 852 5 85 81 874 9 152 103 1,112 12 193 110 1,187 13 219 120 1,295 15 245 115 1.241 " JRZ August 172 1,706 15 140 110 1,187 15 272 September 165 1,662 7 81 106 1,144 22 320 October 167 1,681 7 61 98 1,058 35 474 November 169 1,698 12 120 89 961 36 507 December 219 2,059 17 170 118 1,274 35 513 Total 1943 1,949 19,296 156 1,519 1,238 13,361 214 3,410 44 January 131 1,211 9 89 73 788 15 223 February 148 1,382 18 178 78 842 1 11 19 312 March 163 1,549 16 156 83 896 4 43 22 356 April 161 1,600 20 192 79 853 10 109 18 338 May 162 1,545 14 138 67 724 16 174 23 390 a. Revised CONFIDENTIAL Source: WPB, "O fficial Munitions Production of The United States" Disclasure Parisbable United Esplenage Ad .... NOT OCUTAIN CONFINENTIAL COMPANY DATA submitted DECLASSIFIED NNP CAS 740023 IC NARS. Date 6-13-83 NAVY DEPARTMENT BUREAU OF SHIPS WASHINGTON, D.C. Ss C-FS/L9-3 (SAX) EN28/A2-11 CONFIDENTIAL 1 February 1941 From: Bureau of Ships. To : All Comman dants of Naval Districts less Sixteenth Naval District. All Supervisors of Shipbuilding, USN. Subject: Ship Conversion, Repair and Overhaul Work at Private Shipyards. References: (a) Naval District Manual - 1927. (b) Opnav ltr. Op-23M-VS (SC) A16/ND12 Serial 5898 of Apr. 25, 1939, to Comdts. of all Naval Districts. (c) Contracts with private yards - alteration and repair. (d) Buships ltr. FS/L9-3 (MA) of Aug. 26, 1940, to Comatron, Comdesatron, Combasefor, Cominbatfor, Comairscofor, Comsubron 2. (e) Opnav ltr. Op-23-MY (SC) A16/ND Serial 0104923 of Nov. 28, 1940 to Comdts. of all Naval Districts and Comdts. of all NYds. (f) Buships ltr. YY/L9-3 (MPC) of Oct. 8, 1940 to Comdts. 3, 4, 5, 6, 10, 11, 12, 13, 14, 15, 16 N.D., Comdt. Guantanamo and Gov. Guam. (g) CNO ltr. Serial 140230 of July 1, 1940 to Comdts. 3,5,8,12 N. D., Info. Comdts. 1,4,6,7,9,11,13 N.D. and Cincus. (h) Buships ltr. QS1-(9) (SAX) EN28/A?-11 of Dec. 21, 1940, to Comdts. 1,3,5,6,7,8,11,12,13,14,15,16 N.D. - (1) Buships ltr. LE (MA) of July 26, 1940 to Comdts. 1, 3,4,5,6,11,12 N. D. (j) Buships ltr. FS/L9-3 (MMM-MMH) EN28/A2-11 of Oct. 25, 1940 to Comdts. of all Naval Districts. Enclosures: (herewith - to Supervisors of Shipbuilding only) (A) Copy of reference (b). (B) Copy of reference (c). Ss FS/L9-3 (SAX) EN28/A2-11 Enclosures: (cont'd) (G) Copy of reference (d). (D) Copy of reference (e). (E) Copy of reference (g) (F) Copy of reference (h). 1. The references outline the procedure to be followed in handling matters pertaining to the accom- plishment of repair, conversion and overhaul work by Purpose the Naval Districts. The Burcau desires to follow during the present emergency the procedure which would become effective during war, as far as practicable, in the interest of developing an organization and per- sonnel capable of performing these functions of the Naval Districts during war. 2. References (a), (b) and (c) recuire the District Commandant to inspect, supervise and coordi- nate the work of repair, conversion and overhaul within his District. Reference (a) provides that the Comman- dant shall work through the District Material Officer to accomplish the above. Reference (b) provides for the organization of the District Material Officer and emphasizes that for vessels under cognizance of that Summary of officer "readiness on the date sct is the paramount the consideration. II This reference recuires inspectors References at private shipyards to supervise the execution of con- version and repair work in accordance with work lists prepared by the District Material Officer and to make technical decisions on the spot in accordance with policy laid down by the District Material Officer. Reference (c) provides that the Naval Inspector dc- termine the "cstimated fixed price" and perform other duties of his office. Reference (j) authorizes Naval Inspectors to approve job orders on the spot for over- haul and repair work, regardless of amount, providing the project allotment is not exceeded. Reference (d) sets forth the procedure for overhaul work at private yards and provides that the Commanding Officer of the ship shall be the Naval Inspector for such overhaul and repair work. For the purpose of decentralizing authority for initiating and releasing assigned pro- Jects, reference (e) gives the District Commandant authority for: (a) The assignment of ships to Navy Yards for conversion or repair, subject to the approval and designation of priority by the Chief of Naval Operation FS/L9-3 (SAX) Ss EN28/A2-11 (b) The assignment of ships to private yards under contract. (c) The preparation and approval of detailed con- version and repair specifications and conversion plans, when required, for ships made available by himself. (d) The inspection and follow up supervision to insure prompt completion. Summary Reference (e) also gives the Office of Shore Establish- of the ments Division of the Navy Department authority to direct Referen- the transfer of civilian personnel between the Navy Yards ces (or other available sources) and the District Material Offices, as needed, when recommended by the District Com- mandant, and authorizes the Commandant to call upon any Navy Yard within the District for cortain technical assistance, such as, proparation of plans and specifica- tions for conversion and repair work being done at private yards. Reference (f) outlines the procedure for maintc- nance of District Craft. Reference (g) announces the in- tention of executing alteration and repair contracts with commercial yards and enjoins the District Commandents to develop District personnel for these activities, and directs that the Bureau of Ships communicate the details of arrangements for this work. Reference (i), also in regard to conversion and repair, emphasizos the authority of the District Commandant to authorize changes and out- lines the Bureau's recuirements regarding completion data. 3. Under present conditions the following covers the procedure employed in accuiring merchant vessels and Procedure in handling repair, overhaul and conversion work on mer- chant vessels and existing Naval vesscls assigned to Naval Districts for accomplishment: Secretary (a) The Sccretary of the Navy directs the Chief of of the Naval Operations to sclect by name a vessel suitable for Navy conversion to a specific type. (b) The Chief of Naval Operations, after invostigat- Chief ing all matters relative to the types of vessels available, of Naval selects the vessel by name, determines the principal con- Opera- version features to be embodied in the vessel to be con- tions verted and, whenever practicable, indicates a date on which the completion of conversion work is desired. FS/L9-3 (SAX) EN28/A2-11 Ss (c) The Burcau of Ships conducts negotiations, with the assistance of the Maritime Commission, cither directly or through the District Commandants, leading up to the acquisition of the vessel selected. In any case, the final negotiations and execution of the con- Buships tract must be completed by the Department upon the Accuires approval of the Sccretary of the Navy in accordance Vessel with the requirements of law. This legal requirement does not permit execution of contracts by field agencies although such agencies may conduct, upon request of the Bureau, the necessary proliminary negotiations and provide sufficient information to enable the Department to complete the contracts with- out the presence of the owners. Buships (d) The Bureau designates the Naval District Designates in which the delivery and conversion work will be Naval Dist. undertaken. (c) After obtaining information as to the con- Buships version yard in which the District Commandent desires Arranges the conversion work to be accomplished, the Buroau Delivery arranges for delivery of the vessel nt that conversion yard, or clsewhere as desired by the Commandant. Buships (f) The Burcau furnishes the District Commandant Furnishes or his designated representative with the general con- Conversion version directive, arrangement plans and other infor- Directive mation as are available. Principles 4. After acquisition and delivery of the Now Apply vesscl, in accordance with the procedure outlined above, the following basic principles relative to the accomplishment of repair, overhaul and conversion work obtain: Condt. (a) The District Commmient is responsible for Charged all conversion, repair and overhaul work assigned to with Con- the District, subject to the limitations imposed by version paragraph 3(a) (1) of reference (c). Comdt. (b) The Commandant of the District effects the Effects Work work of repair, overhaul and conversion. (c) Where overhaul, repair or conversion work is Supship undertaken in any one private shipyard concurrently Handles with new construction, such overhaul, repair and con- Conversions version work at that plant should be handled, wherever in Yards practicable, by the Supervisor of Shipbuilding nt the with New plant. This procedure is considered to be in the Construction interest of coordination and simplification of rcla- tionships with the Yard. FS/L9-3 (SAX) Ss EN28/A2-11 Comdt. or his (d) The Commandant or his designated repre- Representative sentative determines the items of work to be accom- Determines plished in accordance with the General Conversion Work Specifications, the plans and other specifications furnished by the Bureau. Commanding (e) The Bureau expects that the services of Officer Repre- Commanding Officers, prospective Commanding sentative of Officers, and other ships' officers will be Commandant utilized in overhaul, repair and conversion work, wherever practicable, for inspection purposes or as otherwisc best suited to meet conditions. (f) The Commandant or his designated repre- sentative is authorized to depart from the General Conversion Specifications, the plans and the con- Comdt. or his version directive at his discretion, having duc Representative regard for those items affecting time of final con- Authorizes version, stability, water tight integrity, the Changes military characteristics of the vesscl, and work which would result in exceeding the funds made available for the conversion work. (g) The Burcau will designate the machinery and other material to be furnished by the Burcaus, The contractor will purchase all other material. The Bureau may initiate investigations of sources Buships of supply and possible delivery dates of machinory Investigates and material to be purchased by the contractor, the Procurement procurement of which might dclay final conversion, and in such instances will advise the Commandant or his reprosentative. (h) Request for changes in plans and speci- Comdt. Decides fications originating with prospective Commanding Changes Rc- Officers or others should be referred to the Com- ouested by C.O. mandant or his representative for the necessary action. (1) The Commandant or his designated repre- sentative will, after investigation of the work required in connection with the repair, overhaul Comdt. Nofity and conversion of vessels assigned to the District Buships Re- for accomplishment in accordance with the above, garding Comple- inform the Bureau at the carliest practicable date tion the estimated cost of the work and the estimated time of completion of the conversion work. Where a directive is issued indicating a date on which the vessel is to bc completed, the District Com- mandant will inform the Burcau if It is not possible to complete all of the work covered by the directive within that limiting date, and if not the items which must be omitted to comnly with the FS/L9-31 (SAX) So EN28/A2-11 assigned date for final conversion and what extension of time is necessary to complete all of the work of conversion. 5. By special arrangement with the Maritime Commission Marine Surveyors have been provided in accordance with reference (1) for work in connection with ships being recommissioned and ships undergoing Marine overhaul at private yards. Similrly Marine Surveyors Surveyors have been provided in some instances in connection Report to with conversion work at private yards. Reference (1) DMO indicates that the Marine Surveyors report to the Commanding Officers for duty. The Bureau intends that all Marine Surveyors report to the District Material Officer for such duty as he may assign. S. M. ROBINSON Chief of Burcau Copy to: NYBOS NYCHARL NYMI NYNYK NYNOR NYPEARL NYPHIL NYPORT FEB 6 1941 NYPS NYWASH Bureau M. & S. U.S. Maritime Commission SECNAV (ICB) File No. 19-3/A2-11/EN28 TVISNHUTANO- JAG OPNAV (9) (416200)5c) BUORD BUNAV BUSANDA BUAER BUMED SOSED MGC, USMC DECLASSIFIED Authority COMMERCE GUIDANCE 2/7/83 BY LOT NARA, Date 8/9/05 RAW MATERIALS DATA SHEET Prepared for the ANALYSIS AND REPORTS DIVISION, OFFICE OF IMPORTS BOARD OF ECONOMIC WARFARE by the BUREAU OF FOREIGN AND DOMESTIC COMMERCE. IIA DEPARTMENT OF COMMERCE CONFIDENTIAL COMMODITY Unit: Short ton information Indicated by Asterish * Asbestos (Crude) Conversion Factor: Canadian and African Critical Grades 1. DESCRIPTION, GRADES: Description: "Asbestos" is a commercial term applied to fibrous varieties of several minerals differ- ing widely in composition, the fibre being diverse in strength, flexibility, and consequent usefulness. The three varieties of asbestos in greatest use commercially are: (a) Chrysotile, a highly fibrous material en- ployed in the manufacture of asbestos textiles, compressed sheet packings, asbestos-cement materials, and other asbestos products; (b) Amosite, a coarse, long, resilient fibre used principally for insulations; (o) Crocidolite (Blue), a fibre with high tensile strength used mainly in asbestos-cement pipe and also, be- cause of its acid-resistant qualities, in certain packings. Chrysotile comprises the major portion of the world production and consumption of both long and short fibres. The United States produces only about 21 percent of its present required supplies of asbestos. Domes- tic production is chiefly chrysotile, mined principally in Vermont and Arizona. The Vermont fibre is short and is comparable to short Canadian fibres. Arizona production includes some long fibres. which can be sub- stituted for low iron imported types. Canada accounted for about 85 percent of all asbestos imported in 1942. Importe from Canada are chrysotile and now average 8 percent crudes and spinning or textile fibres, the remainder being shorter, nonspinnable fibres. The supplies of these short fibres are adequate. The ma- jor source of imports other than Canada is South Africa, which produces blue, amosite, and the bulk of the critical grudes of low iron chrysotile. Critical Grades: African fibres (chrysotile Grades C & 01, 2, 3, and 41 amosite B-1, B-3, or D-3, 3/DM-1 and M-1; and blue asbestos) are essential for direct and indirect wilitary use and cannot be replaced to any great extent by the spinning grades of Canadian fibre, the supply of which also is limited. African chrysotile grades, chiefly from Rhodesia, have relatively low iron content and are required to meet Navy specifications for essential types of electrical insulation. Amosite, found only in the Union of South Africa, is essential for the manufacture of certain types of insulation for the Navy and the U. 8. Maritime Commission. Blue asbestos is produced principally in the Union of South Africa, although some of inferior quality is found in the Transvaal. The blue 1s used because of its high tensile strength in asbestos-cement pipes and also, owing to its acid-resistant qualities, in packings, filter cloths, etc. Canadian spinning fibres represent the three highest groups of Canadian chrysotile, and are used principally in the manufac- ture of asbestos textiles. 2. BASIC STATISTICS: 1942 U. S. SITUATION* CANADIAN AND AFRICAN PRODUCTION, 1942* Consumption4 Supplies & of Country Amount total Military Stocks 1/1/42 23,475 Civilian 52,345 U. 8. prod Nons South Africa 31,000 25.4 Exports Imports 54,038 Southern Rhodesia" 56,000 46.9 African 26,401 Canada" Total req 52,345 35,000 28.7 Canadian 27,637 Total 122,000 100.0 Total sup 77,513 "Estimated. Gov't stockpile: Industry stocks: Represents production of critical grades of crude of a 1/1/43 692 1/1/43 25,311 total production of 397,978 toss of crude of all grades. Objective None a Military and Civilias requirements for crade asbestos are negligible. Require- mests are for masufactured products for which a breakdows is not available. Consumption of African grade vas 25,610; Casadian grade 26,725. U. 8. IMPORTS* U. S. EXPORTS, 1942* 1937-39 $ of Source 1942 % of average total total Exports of Canadian and African grades of aebestos are not shown separately. Africa" 8,820 40.1 26,401 48.9 Canada 12,880 59.9 27,637 51.1 U. S. PRODUCTION AND CONSUMPTION Total 21,500 100.0 54,038 100.0 1937-39 4 Schedule A Nos: 5500.0; 5500.1: 5501.0. 1941 1942' average Rhodesia and Usice of Soath Africa. Production None None None Consumption n.a. n.a. 62,345 2-11161 (Continued on other side) April 22, 1943 Asbestos (Crude), Canadian and African Critical Grades-Continued 3. USES, SUBSTITUTES, RESTRICTIONS: Uses: The white, highly fibrous, chrysotile from Canada and Southern Rhodesia is used in the pro- duction of textiles (including brake linings and clutch facings) and certain grades of building materials. The brownish gray coarse fibred amosite from the Union of South Africa is used in the production of fireproof board, high temperature insulation, pipe covering, blankets for insulating turbines on combat ships. The blue crocidolite from the Union of South Africa is used in the production of acid packings, fil ter cloth, asbestos cement and pipe, because of its resistance to acids. Substitutes: There is no generally acceptable substitute for asbestos in specific applications where resistance to heat, electricity, acid erosion are prime considerations. Mineral wool, glass wool and the shorter fibres have been utilized for insulation in some instances in lieu of the critical grades. Asbestos is, however, being used in the war program as a substitute for other materials, e. 8., asbestos pipe is being used in some applications in lieu of cast iron and steel pipe. Short fibre in some instances is being used as a substitute for critical grades of long fibre. Restrictions: Conservation Order M-79, as amended June 18, 1942, restricts the use of fibre from South Africa to priority rated orders and confines certain grades and types to specific uses. Asbestos from the Union of South Africa and Rhodesia was placed under General Imports Order M-63, January 13, 1942. Conservation Order M-123, as amended December 14, 1942, prohibits the use or delivery of asbestos tex- tiles for certain nonessential uses. Conservation Order N-283 provides for the allocation of asbestos textiles. 4. PRICES AND STOWAGE: Prices (March 18, 1943): Canadian grades: Crude No. 1 $650-$750 Crude No. 2 and sundry crudes.. $165-$385 Spinning fibres $124-$233 Per ton, f.o.b. Quebec Mines, tax and bags included (Quotations in U. S. funds): African grades: Crocidolite crudes $105-$138 Amoxite orudes $100-$122 Rhodesian chrysotile $ 75-$285 Per ton, f.o.b. African port: Stowage: Crude asbestos is packed in cloth bags with no inner liner; gross weight 101 pounds, tare one pound. Cubic measurement, 1.6 cubic feet; stowage factor 34. Some grades occupy 3.4 cubic feet per bag of 99 pounds gross weight and have stowage factor of 78. Stowage factors for crude asbestos from Africa vary from 78 to 90 depending upon the degree of fibre concentration from crude rock. 5. SPECIAL PROBLEMS: Since only African varieties of asbestos satisfy certain critical military requirements, the essential problem is that of maintaining uninterrupted imports from Rhodesia and Union of South Africa. Further references: "Asbestos-Critical Grades" in "Commodity Chart Book." W.P.B. Statistics Division, Materials Branch. U. S. Tariff Commission has studies on Asbestos. 2-11181 POLICY DOCUMENTATION COPT February 25, 1941 04 NO. 3047 TO: Mr. George M. Moffett 195. NO. B FROM: C. K. Leith SUBJECT: General Review of Procurement of Strategic, Critical and Essential Mineral Raw Materials as of February 1, 1941. From time to time detailed and statistical reports have been made on the progress of mineral procurement. The present review presents only the over-all picture in general terms without detailed documentation. As & result of the acute difficulties of the Great War, aditation for the accumulation of Government stockpiles of strategic minerals began immediately at the close of the war, and increased in tempo during the last decade. The Army and Navy and many organizations and individuals interested in the subject participated in this effort. Aside from a small expenditure by the Army and Navy from their own funds, it resulted in nothing concrete until June 7, 1939, when a law became effective authoris- ing the expenditure of $100,000,000 in four years. Small proportions of the funds under this bill were made available in 1939, but the major part of the total of $70,000,000 actually appropriated was not made available until the spring of 1940. Additional funds were made available by RFC during the summer of 1940. When the Defense Commission began its work about June 1, 1940, only a very few purchases had been made. The mineral specialists of the Industrial Materials Branch of the Defense Commission began a study of the materials needed by reviewing a series of reports by seventeen subcommittees of the Mineral Advisory Committee to the Army and Navy Munitions Board prepared during the preceding two years under the general chairmanship of O. K. Leith. The subcommittees were made up of representatives of the Munitions Board, the U. S. Geological Survey, the Bureau of Mines, and special- ists from the industries. With this background, conferences were held by the Defense Commission specialists with the trade to bring figures and conclusions up to date. From time to time special recommendations for purchase were made during this period, but it was not until October 18 that the full program was approved by the Defense Commission and transmitted to the buying agencies; namely, the Procurement Division of the Treasury, and the Metals Reserve Company, a subsidiary of the RFC. The delay was due to the requirement that all such recommendations had to have the approval of the Munitions Board before going forward to the Defense Commission itself. This approval was long delayed and some of the items were not approved by the Munitions Board. In spite of this lack of complete approval the program is now being substantially followed by the purchasing agencies. The recommendations of the Defense Commission of October 18, 1940, for the purchase of strategic minerals are summarised in the following table: Antimony 18,000 short tons $ 5,040,000 Asbestos 20,000 M M 3,000,000 Chromite 870,000 long tons 31,290,000 Graphite 2,000 short tons 160,000 Industrial diamonds 6,000,000 Manganese ore 1,600,000 long tons 60,453,000 Mercury 10,000 flasks 1,600,000 Mica 4,700 short tons 5,489,000 Quarts Crystals 106,900 pounds 730,000 Tin 159,400 long tons 178,775,000 Tungsten 13,000 short tons 14,3000000 $306,845,000 DECLASSIFIED Authority NND730022 & (Table Continued) Total $306,845,000 Contingencies, administrations storage, etc 24,283,000 $331,128,000 Costs are only estimates based either on past average acquisition costs or current markets. The totals are considerably higher than Munitions Board figures, partly because of our higher estimates of requirements and partly because of the fact that the Munitions Board figures were adjusted to limited funds available at the time the estimates were made. Events have already shown that even our figures have been in some cases too conservative, The original program drawn up by the specialists of the Defense Commission, like the original program of the Army and Navy Munitions Board itself, was based on the assumption of a three-year emergency. This was out to two years to bring it into accord with new plans of the Army and Navy Munitions Board. We still think that supplies should be acquired for a three-year emergency, but this question is more or less academic for the time being because we are so far short of meeting the two-year program. Later the Defense Commission recommended the purchase of 200,000 tons of copper from Chile and of 6,000 diamond dies from the British Purchasing Commission. It has been active also in efforts to increase sinc smelting capacity. The statistical position of the stockpile procurement of each of the minerals is susmarized in the accompanying diagram. Present Status. As of February 1st the general averages of the percentages of the various stockpiles then delivered was 17 percent. Considering industry and Government stocks as a unit, there is no immediate shortage of strategic minerals which cannot be adjusted by voluntary re-distribution within the industries or by the application of priorities. On the other hand, deliveries on the whole are not running much shead of consumption and in some cases, notably in tungsten, are running behind. With the shipping situation getting steadily worse and industries' requirements growing, it is clear that the stockpile program is not likely to be realised before the emergency is upon us, and that for some minerals, like tungsten, consumption will have made inroads on the limited supplies now at hand. The stockpile program was started too late, for prompt realization, On the whole, the situation requires continuously more pressure on imports, domestic developments, conservation, and substitution. A considerable part of the domestic mining developments in strategic minerals which are now being encouraged will be unsconomic in normal times and will have to be written off when the emergency is over. Also our very limited reserves of such minerals as mersury and high-grade chromite will ha 8 been sadly depleted. On the other hand, DECLASSIFIED NND730022 these developments make it possible to test a considerable variety of new processes of extraction, concentration, and use of minerals which may make it possible, even in peace-time, to use certain of our off-grade supplies existing in large quantities, This will be & permanent gain to the nation. The new tin melter now planned will also probably be unsconomic in normal times but provision is being made in connection with this melter for a thorough test of certain new processes which, if successful, may make it possible to maintain a permanent tin smelting industry in the United States. Present status of procurement of each mineral is summarised below: Antimony. The actual stockpile is about 34% of the amount required. An additional 18 percent is under order, including about 3,000 tons of domestic production which has been purchased for delivery over one year. The domestic production is smelted from Mexican ores. Additional large tonnages have been contracted for with the Chinese Government in repayment of loans made to them. The present possition is satisfactory with industry stocks well above normal, and arrivals of ore from South America in good volume. Asbestos. No purchases of asbestos have yet been made by the Government, but negotiations are under way for the purchase of three special varieties from South Africa and Rhodesia. The question of the need of this material has been recently reviewed with the industry and the need confirmed, Chromite. The actual stockpile is 11 percent of the amount required. Contracts have been made for an additional 32 percent of the amount planned. This situation requires maximum pressure both on domestic developments and on the securing of supplies from abroad. Projects are under way for domestic developments which we hope will help relieve the situation, although at best there will be a delay of a year or more before substantial production begins. Government and industry stockpiles together will supply industry at the present rate of consumption for about 14.5 months. Copper. The shortage of copper was not antiopated until the fall of 1940 when the magni- tude of the defense program began to appear. Arrangements were then made to purchase 100,000 tons from Chile through Metals Reserve, and later the purchase of mother 100,000 tons was authorized by the same organisation. The shipments on the first 100,000 tons have begun to arrive in New York, but will not be completed until May or June. In the meantime industry stocks are very low and shortages are being net by individual producer assistance. Diamond Dies. Industrial dismonds are bored to make diamond dies for the drawing of wires. The dies of the small sizes have heretofore been manufactured exclusively in occupied terristory of Belgium and Germany. Supplies are now very short in this country. A small amount has been purchased from the British Purchasing Commission which will be pro-rated in the industry by the Priorities Division. Also arrangements are being made to encourage the manufacturing of such dies in the United States. Graphite. The actual stockpile is 23 percent of the amount required. No additional amounts have yet been ordared. The only source of graphite of the best grade needed is Madagascar, which is now under British blockade. A recent review of the need of this particular grade of graphite has been made in conference with the industry with the result that the need has been confirmed. Accordingly we have asked the State DECLASSIFIED Authority NND730022 7-2-83 F.R.C & rtment to re-open the question with the British of passing a cargo through the kade, and we are informed that this request has now been made to the British by State Department. In the meantime a mall amount of graphite is being purchased rylon by the trade which can be used as a not-very-satisfactory substitute for indagascar graphite. masnt and industry stocks combined will last the industry at the present rate of aption about 10 months. trial Diamonds. As yet no industrial dismonds have been secured for Government pile. Negotiations for purchase have been under way for many months. There has been fartunate delay in setting up the machinery for purchase by the Procurement Division . Treasury. Arrangements are now being rapidly perfected by which it is hoped the purchase will be begun at an early date. An additional supply will be bought by $ Reserve, but this purchase will not be started until the program handled by rement Division 1a well under way. stal amount of industrial diamonds hald by the industry and by brokers and by is individuals is supposed to be large, but specialists report that it is impessible : figures because so many of the stocks have been smuggled in. Bearings. Jewel bearings for watches made of sapphire and synthetic corundum have fore been made almost exclusively in Switzerland. The Defense Commission recommended urchase of a Government stockpile of 50,000,000 jewal bearings, but it now appears diectuation of this program may not be: feasible, and that efforts of the Government I be concentrated in landing all possible assistance in assuring continued importa- of bearings from Swd. tserland to industry. Arrangements are DOW being made to en- B the manufacturing of such jewels in the United States. ese, The actual stockpile is now 9 percent of the amount planned. Contracts have ade for an additional 124 percent of the amount planned; in other words, for an which would overrun our objective by about 600,000 tons. This over-buying has been eliberately to allow for failure to realise all the domestic production contracted sent and industry stockpiles will supply the industry at the present rate of consump- or about 16 months, and probable domestic aproduction plus Cuban deliveries will industry nearly through 1943, even if all imports other than Cuba are out off. to The actual stockpile is about 10 percent of the amount required. An additional rent is now contracted for. In response to exceedingly high prices obtaining during it year, domestic output has risen to record amounts which have considerably sur- needs for domestic consumption and exports. In recognition of the fact that relative. ge supplies of Mexican mercury continue to go to Japan, plus the recent increase thase in the United States by England, plus the fact that domestic reserves may ly a few years at the present rate of consumption, recommendation has been made to curement Division that the remainder of the stockpile be purchased from Mexican The Procurement Division is now out of the market awaiting quieting down of fferings as a result of an ill-advised press release from Maxico City concerning ons of the United States government to buy supplies from Mexico. ant and industry stocks combined will last industry about 7 months at the current tion rate. DECLASSIFIED Authority NND730022 7-2-83 -5- The actual stockpile is about 3 percent of the amount required. An additional roant is now under order. Long negotiations with the British Government were at t not productive of much mica but recently larger amounts have been offered. ilian sources have Just been investigated by a representative of the Materials Branch, it appears that a sisable percentage of block mica required night be obtained from source. A smaller amount of Madagascar mica is also needed as soon as it can be ped. Production of amber nica in Canada for use in airplane spark plugs has recently investigated by Canadian authorities who report that 50 percent increases in output be made in 1941. asive investigations have been made by the Ocological Survey and the Bureau of E of mica deposits in New England and North Carolina, and industry is conducting riments on sizable samples taken from these areas for specific uses. ment and industry stocks combined will last industry about 16 months, based on the imption rate as of January 1, 1941. 11. An apparent shortage has recently appeared. Customer demand places thisshortage out 4,000,000 pounds per month but the actual shortage is probably considerably less. 'igures are being checked. The International Nickel Company now controls the entire I supply and for some weeks past has found it necessary to prorate supplies to the 1. The problem is now under intensive study by the Priorities and Production Divisions. nt supplies of the industry are very low. $ Crystal. The actual stockpile is 26 persent of the amount required. An additional reant in now under order. The shipments BO far have shown a high proportion of off- material which has been rejected. It will be nedessary eithor to purchase more or ange specifications to allow of the use of the rejected material. This is now under The actual- stockpile is 17 percent of the amount required. An additional 22 percent - under order. Additional large tormages have recently been contracted for with in partial payment of leans made to their Government. In preparation for the contin- that sources in the Far East may be out off, 18,000 tons per year for 5 years of ian tin (in form of concentrates) have been contracted for, but delivery has not tarted. Plans for a tin smelter are still being considered by Metals Reserve. Pro- on at best cannot begin for over a year and assuming that we will get, in emergency, of the Bolivian output, it will meet only about one-half of our requirement. Recovery a from scrap and substitutions are being studied but are not yet being put into to ament and industry stocks combined will last industry at the pres nt rate of aption about 12 months. ten. The actual stockpile is about 51 percent of the amount recommended. An ional 151 percent is under order, large parts of which represent contracts with the ISS Government for repayment of loans. Even larger tonnages have been contracted ust recently with China also in repayment of loans over a period of a number of 1. The specific quantity involved in the Chinese loans is indeterminate because it vary with the market price as of arrival. (an the basis of the present market, the go amounts to about 45,000 short tons, 60% wo, basis). DECLASSIFIED NND730022 Authority car 2-2-83 -6- La a result of enormous defense requirements, the present position is very tight and an order has been issued by the President authorising the release of are, as required by defense, from stockpile. No release will be requested until such action becomes imperative. The domestic production is being increased to the point where it can easily take care of peace-time needs but not emergency needs. Every effort 18 being made to bring out additional supplies from China over the Burma Road (200 tons are now afloat from Rangoon) and also additional supplies from Bolivia and other sources. Zinc. Rapid enlargement of the defense program and increased British needs have developed & shortage of sino smelting capacity, which is being largely remedied by current rehabil- itation and expansion of existing plants. So far this expansion has been privately financed, in several cases with income-tax relief through accelerated amortization, but it is likely that further plant construction will require more direct Government aid. Meanwhile the immediate shortages of slab zinc are being met by partial allocation of the supply through the Priorities Division. The domostic supply of sinc concentrates is not adequate to this enlarged smelting capacity, but can be sufficiently supplemented from Canada, Newfoundland, Mexico and South American, though supplies from the last- named source are dependant on bottoms at reasonable rates, C. K. Leith DECLASSIFIED Authority NND730022 2-2-83 ERC WAR MONDS WASHINGTON 25, D.C. STATES 527,27144 CLASS. IN REPLY REFER TO: June 20, 1044 C IIC MEMORANDUM TC: WPS Regional Directors and Froduction Urgency Committees in Areas where Asbestos Textile Plants are located. FROM: Fred B. Sinclair, Chief Sinclaly Analysis, Reports, and Services Branch Procurenent Policy Division SUBJECT: Manpower for Asbestos Textile Industry We have been advised by the Cork, Asbestos & Fibrous Glass Division, WPB, that the production of asbestos textiles has become a critical bottleneck in direct military programs. Until recently, pro- duction has been limited by the amount of asbestos spinning fibre available. The limitation at present, however, is manpower. Facilities and fibre are available for the production of from 200 to 300 tons more asbestos textiles than manpower permits. Asbestos textiles are a non-substitutable component in all combat vessels from battleships to Army ducks, as well as in the 22-ton truck program, the rubber program, the rayon program, and the plane program; in fact they cut across the entire mechanized field, military and industrial. The largest single claimant is the U. S. Navy. In the face of this production decline, the Navy has entered requirements for a 20% increase in roving for Navy cable, and an additional 100,000 yards of asbestos cloth. Planned expansion of the copper wire program will be measured in terms of our ability to produce as- bestos roving. This critical condition in asbestos textiles has been recognized by PEC and cooperation of the Army, Navy, and ARCO has been obtained through regular channels for assistance ut local and Area levels in recruiting manpower. Advice has gone out from these respective Services to the field requesting full cooporation. In addition, a Program Determination has been granted to give asbestos textile machinery a green light where such additional machinery will aid production without increasing manpower. In spitc of the importance of asbestos textiles as a component, the Industry is not a large one. The firms involved and their locations are as follows: Asbestos Manufacturing Co. Huntington, Indiana Asbestos Textile Company North Brookfield, Mass. Asten-Hill Mfg. Company Scott's Lane, Philadelphia, Pa. DECLASSIFIED NND130022 MARS. Date B 647482 By J. Franklin Burke & Co., Inc. Northfield, Vermont- Carolina Ashestos Co. Davidson, North Carolina Ferodo & Asbustos Co. P. C. Box 111, New Brunswick, N. J. Fibre & Metal Products Co. 206 Downoy Ave., Downey, Cal. The Garlock Packing Co. 402 Main St., Palmyra, N. Y. General Asbestos & Rubber Div. North Charleston, South Carolina Raybestos-Manhattan, Inc. Greene, Tweed & Co. North Wales, Pennsylvania Johns-Manville Corporation Hanville, New Jersey Keasbey & Muttison Co. Ambler, Pennsylvania Philadelphia Asbestos Co. 2010 N. 10th St., Philadelphia, Pa. Rockbestos Products Corp. New Haven, Connecticut Southern Asbestos Company Charlotte, North Carolina Union Asbestos & Rubber Co. Cicero, Illinois U. S. Asbestos Division Manheim, Pennsylvania Raybestos-Manhattan, Inc. U. S. Rubber Company Hogansville, Georgia The Industry Division has requested that we make these facts known to the Production Urgency Committees so their cooperation may be secured in obtaining the necessary manpower through priority ratings for labor which will reflect the importance of the asbestos textile program. The shall be glad to furnish any additional information regarding this matter. asbectos 2 ethiles B 647483 DECLASSIFIED NND130022 NARS. Date By 570 1 PROFIT 3718 NOTIVINEWS.COM III A 801 OR No. ass No. February 18, 1943 MEMORANDUM TO: Mr. Irving Swerdlow, Acting Chief, Public Welfare & Facilities Division FROM: C. Henri Rush, Chief, Building Materials Section SUBJECT: Meeting of Asbestos Industry Advisory Committee, Febru- ary 16, 1943 in the Social Security Building The object of the meeting was that of hearing a report by the Metals Reserve Company - a government agency charged with buying various types and amounts of asbestos products for the country - on its recent mission to England. Instead of leaving the purchase and importation of asbestos, which is largely a foreign product, to private concerns, the govern- ment has adopted the policy of buying and importing from England asbestos fiber mined in South Africa and needed by the USA, and selling it to the domestic processors as and when required by them. The contracts entered into by the USA and Great Britain pro- vide for the shipment by England of certain amounts of specific types of asbestos fiber needed in this country after approval of samples submitted to our processors by England. Base prices de- manded by England at present are practically the same us those of last year. The U.S. Government notifies the asbestos processors of current shipments and upon their arrival sells the amounts -0- manded by processors at or below cost, that is, after marel/ adding to the base price the freight plus overhead charges, war risk in- surance and handling costs. The OPA determines the final sale price for both the raw and the finished products. Quantities contracted for in excess of current and future requirements are intended to offset expected sinking losses, and/or to provide for a future stockpile. In case the goods happen to be damaged in transit, the government 1s to be informed by the recipient companies. : c con- tract contains a provision for future adjustments as to prices and additional quantities that may be desired. DECLASSIFIED Anthorite NAME - = - 2 - The procedure adopted in the distribution of imported asbostos fibers is the following. The government informs the Cork-Asbestos Division of shipments under way. The latter agency in turn notifies immediately the various companies interested of the same fact 80 that the latter will be able to place their demand for specific types and quantities desired at the time the goods arrive, and receive them without delay. Surplus stocks are to be stored in available warehouses, that is, either in those of the asbestos processors themselves or of other companies. Asbestos is not yet allocated, but the Covernment will offer processors as much as is available. Payments for asbestos fibers sold to processors are to be inade to the Government through the Commercial National 3ank by means of sight drafts. The Industry representatives were unanimous in their ap reciation of the new method devised by the Government of securing and distri- buting the country's asbestos requirements. sheurer:irk DECLASSIFIED Authority NND730022 SY. ERC STAT W.Dec. 2.82 FEDERAL REGISTER, Saturday, August 30, 10:1 IV B2. $0.50 akum, $0.85; Young, $0.83; Za- officers shall report to the Governor fcr pata, $0.83; and Zavala, $0.80. (b) "Defense Order" means duty at State Headquerters. Wisconsin: Adams, $0.08: Ashland, b. In emergencies, State medical offi- (1) Any contract or order for material $1.09; Barron, $1.20; Bayfield, $1.10; cers may either assist examining phy- or equipment to be delivered to, or for the Brown, $1.32; Buffalo, $1.33; Burnett, sicians in conducting physical examina- account of: $1.09; Calumet, $1.42; Chippewa, $1.22; tions of registrants or may themselves (j) The Army or Navy of the United Clark, $1.25; Columbia, $1.27; Crawford, perform such examinations in place of States, the United States Maritime Com- $1.33; Dane, $1.37; Dodge, $1.50; Door, the examining physicians; in the latter mission, the Panama Canal, the Coast $1.13; Douglas, $1.22; Dunn, $1.25; Eau event, the State medical officers shall and Geodetic Survey, the Coast Guard, Claire, $1.26; Florence, $1.03; Fond Du sign the Reports of Physical Examina- the Civil Aeronautics Authority. the Na- Lac, $1.42; Forest, $1.13; Grant, $1.41; tion (Form 200). tional Advisory Commission for Acronau- Green. $1.40; Green Lake, $1.32; Iowa, $1.36; Iron, $1.13; Jackson, $1.21; Jeffer- LEWIS B. HERSHEY, tics, the Office of Scientific Research and son, $1.46; Juneau, $1.13; Kenosha, $1.41; Director. Development; Kewaunce, $1.25; La Crosse. $1.30; La- AUGUST 28, 1941. (ii) The government of any of the fol- fayette, $1.36; Langlade, $1.20; Lincoln, lowing countries: The United Kingdom, [F. R. Doc. 41-6491: Flled, August 28, 1941; $1.14; Manitowoc, $1.43; Marathon, Canada and other Dominions, Crown 4:17 p. m.) $1.18; Marinette, $1.08; Marquette, $1.04; Colonics and Protectorates of the British Milwaukee, $1.46; Monroe, $1.31; Oconto, Empire, Eelgium, China, Grecce, The $1.14; Oneida, $1.05; Outagamic, $1.35; Kingdom of the Netherlands, Norway, [No. 27] Ozaukee, $1.45; Pepin, $1.30; Pierce, Poland, Russia and Yugeslavia. ORDER PRESCRIBING FORMS $1.32; Polk, $1.23; Portage, $1.03; Price, (2) Any contract or order placed by $1.14; Racine, $1.48; Richland, $1.33; By virtue of the Selective Training and any agency of the United States Govern- Rock, $1.36: Rusk, $1.24; St. Croix, $1.30; Service Act of 1940 (54 Stat. 885) and the ment for material or equipment to be Sauk, $1.26; Sawyer, $1.11; Shawano, authority vested in me by the rules and delivered to, or for the account of, the $1.25; Sheboygan. $1.44; Taylor, $1.23; regulations prescribed by the President government of any country listed above, Trempealeau, $1.27; Vernon, $1.33; Vilas, thereunder, and more particularly the or any other country, including those in $1.04: Walworth. $1.40; Washburn, $1.09; provisions of Paragraph 163 and Appen- the Western Hemisphere, pursuant to Washington, $1.47; Waukesha, $1.43; dix A to Volume One' of the Selective the Act of March 11, 1941, entitled "An Waupaca, $1.29; Waushara, $1.02; Win- Service Regulations, I hereby prescribe Act to Promote the Defense of the United nebago, $1.38; and Wood, $1.15. the following changes in DSS forms: States," (Lend-Lease Act). Wyoming: Campbell, $0.61; Converse, Revision of DSS Form 21, entitled (3) Any other contract or order to $0.61; Crook, $0.77: Goshen. $0.74; John- "Oath of Office," by combining it with which the Director of Priorities assigns son. $0.86; Laramie, $0.56; Niobara, and eliminating DSS Form 257, entitled a preference rating of A-10 or higher. $0.55; Platte, $0.73; Sheridan, $0.93; and "Waiver of Pay." effective fifteen (15) (4) Any contract or order for material Weston, $0.79. days after the filing hereof with the DI- or equipment required by the Person placing the same to fulfill his contracts Done at Washington, D. C., this 28th vision of the Federal Register. The sup- day of August. 1941. Witness my hand ply of original DSS Form 21 and DES or orders on hand, provided such mate- and the seal of the Department of Ag- Form 257 on hand will be used until rial or equipment is to be physically in- riculture. exhausted. corporated in material or equipment to be delivered under contracts or orders [SEAL] CLAUDE R. WICHARD, The foregoing revision shall, effective included under (1), (2) or (3) above. Sccretary of Agriculture. fifteen (15) days after the filing hercof with the Division of the Federal Register, (c) "Material" means any commodity, [F. R. Doc. 41-6514: Filed, August 29, 1041; become a part of Appendix A to Volume equipment, accessories, parts, assemblies 11:18 a. m.] One, Selective Service Regulations. or products of any kind." LEWIS B. HERSHEY, *$§ 944.1 to 044.21. inclusive, Issued under the authority contained in O.P.M. Regulation Director. 3. March 7. 1941. G F.R. 159G; E.O. 8620, Janu- TITLE 32-NATIONAL DEFENSE AUGUST 27, 1941. ary 7. 1011, 0 F.R. 101; SCC. 2 (n). Public No. G71. 76th Congress. Third Session. as ainended CHAPTER VI-SELECTIVE SERVICE (F. R. Doc. 41-6402: Filed, August 28, 1941; by Public No. 80. 77th Congress, First Session: SYSTEM 4:17 p. m.] M'C. 9. Public No. 763, 76th Congress, Third Session. [Ainendment No. 109) § 944.2 Acceptance of defense orders. AN AMENDMENT To AUTHORIZE STATE CHAPTER IX-OFFICE OF PRODUC- Defense Orders for any Material, whether MEDICAL OFFICERS To CONDUCT PHYSI- TION MANAGEMENT or not accompanied by a Preference Rat- CAL EXAMINATIONS IN EMERGENCIES ing Certificate, must be accepted and By virtue of the Selective Training and SUBCHAPTER B-PRIORITIES DIVISION fuifilled in preference to any other con- Service Act of 1940 (54 Stat. 885) and [Priorities Regulation No. 1] tracts or purchase orders for such Ma- the authority vested in me by the rules terial, subject to the following provisions: PART 944-REGULATIONS APPLICABLE TO THE and regulations prescribed by the Presi- OPERATION OF THE PRIORITIES SYSTEM (a) Defense Orders must be accepted dent thereunder, I hereby amend, effcc- Establishing Provisions and' Definitions even if acceptance will render impossible, tive fifteen (15) days after the filing or result in deferment of: hereof with the Division of. the Federal Applicable to the Operation of the Pri- Register. the Selective Service Regula- orities System (1) Deliveries under non-defense or- tions. Volume One,' Section 1V, by strik- ders previously accepted. or The following Regulation Is issued by ing out the present Paragraph 123 and the Director of Priorities to promote the (2) Deliveries under Defense Orders substituting therefor the following: defense of the United States and for the previously accepted bearin lower prefer- 123. State medical officers. a. In each purpose of Improving and facilitating the ence ratings. unless rejection Is spc- State. one or more medical officers of the operation of the Priorities System. cifically permitted by the Director of Priorities; Army, Navy. National Guard. Naval Rc- $ 044.1 Definitions. (a) "Person" serves, or Organized Reserves shall be means any individual, partnership. asso- (b) Defense Orders need not be assigned by the President, upon recom- claticn. corporation or other form of accepted: mendation of the Governor. Medical enterprise. (1) Delivery on schedule thereunder would be imposible reason of the 15 F.R. 3770. F.R. 3770. requirements of Defense Orders previ- Certificate nas been 15- rating." Horlties: sucd. Deliveries bearing no preference' 944.12 Intra-co deliveries. (2) If the Person seeking to place the rating or lower preference ratings shall When any Order of the Director of Pri- De Order is unwilling or unable to be deferred to the extent necessary to oritics prohibits or restricts deliveries of meet regularly established prices and assure those deliveries bearing higher any Material by any Person, such pro- terms of sale or payment, but there shall preference ratings. even though such de- hibition or restriction shall, in the ab- be no discrimination against Defense forment may cause defaults under other sence of a contrary direction, apply not Orders in establishing such prices or contracts or purchase orders. Each Per- only to deliveries to other Persons, in- terms; son who has Defense Orders on hand cluding affiliates and subsidiaries, but also (3) If the Material ordered is not of must so schedule his production and de- to deliveries from one branch, division or the kind usually produced or capable of liveries that deliveries under Defense Or- section of a single enterprise to another being produced by the Person to whom ders will be made on the dates required, branch, division or scction of the same or the Defense Order is offered; giving precedence, in case of unavoidable any other enterprise owned or controlled (4) If such Defense Orders specify delay, to deliveries bearing the higher by the same Person." veries within fifteen days, and if com- preference ratings. $ 994.13 Effect of order: damages. pliance with such delivery dates would (b) The sequence of deliveries bearing When any Order of the Director of Pri- require the termination before comple- the same preference rating shall be deter- orities prohibits or restricts deliveries of tion of a specific production schedule mined by the delivery dates specified in any Material, such prohibition or restric- already commenced.* their respective Preference Rating Cer- tion shall, in the absence of a contrary $ 944.3 Rejected orders. When a De- tificates, or if the ratings were assigned direction, apply to all deliveries made fense Order for any Material has been by Order or direction of the Director of after the effective date of the Order, in- rejected in violation of this Regulation, Priorities, but no Certificates were issued, cluding deliveries under contracts or the Person seeking to place such Order then by the dates specified in the con- purchase orders accepted either prior or may file with the Division of Priorities tracts or purchase orders. In any case subsequent to the effective date of the a verified report in form to be prescribed, where both preference ratings and deliv- Order. No Person shall be held liable setting forth the facts in connection with ery dates are the same, and it is impossible for damages or penalties for any default the alleged rejection. When the facts to make all deliveries on schedule, the under any contract or purchase order set forth justify such action, the Director matter is to be referred to the Division of which shall result directly or indirectly of Priorities will thereupon direct the Priorities for instructions as to scquence.* from his compliance with any rule. regu- Person against whom complaint is made § 944.8 Delivery schedules. No earlier lation or Order issued by the Director of to submit a sworn statement setting forth delivery date shall be specified in any Priorities.* the circumstances concerning the alleged Defense Order than required by the pro- § 944.14 Inventory restriction. Un- rejection. Thereafter, such action will duction or delivery schedules of the less specifically authorized by the Direc- be taken by the Director of Priorities as Person placing the Defense Order. No tor of Priorities, no Person shall. after he deems appropriate.* preference rating will be assigned to any the effective date of this Regulation, $ 944.4 Assignment of preference rat- contract or purchase order specifying de- knowingly make delivery of any Material ings. Preference ratings may be as- livery dates earlier than required by the whatever, and no Person shall accept de- signed to contracts, purchase orders or production or delivery schedules of the livery thereof, in an amount, quantity deliveries by means of Preference Rating Person placing the contract or purchase or number which will increase for any Certificates issued by authority of the order.* current month the inventory of such Director of Priorities, or by regulations 944.9 Deferred deliveries. When Material of the Person accepting deliv- or Orders issued by the Director of Pri- deliveries under Defense Orders have ery, in the same or other forms. in ex- orities assigning ratings to particular de- been unreasonably or improperly de- cess of the amount. quantity or number liveries or to specified classes of deliveries. ferred. the Person entitled to delivery necessary to meet required deliveries of Such ratings may be assigned to deliver- may file with the Division of Priorities a the products of the Person accepting de- ics under accepted contracts or purchase verified report in form to be prescribed, livery, on the basis of his current method orders. and also, in the case of Defense setting forth the facts in connection with and rate of operation. This provision Orders. to purchase orders which have the alleged deferment: When the facts shall not prohibit or restrict: not been placed or accepted at the time set forth justify such action. the Director the rating is applied for. The Director of Priorities will thereupon direct the Par- (a) Deliveries for direct export out of of Priorities may also issue specific direc- son against whom complaint is made to the United States, provided that such ex- tions as to particular deliveries, without submit a sworn statement, setting forth pcrts shall have been licensed by the assigning ratings thereto.* the circumstances concerning the al- Administrator of Export Control; leged deferment of deliveries. There- (b) Deliveries of imported Material to $ 944.5 Sequence of preference rat- after, such action will be taken by the any Person importing the same, either ings. Preference Ratings, in order of directly or through an agent.* precedence, are: AA, A-1-a, A-1-b, Director of Priorities as he deems appro- etc., A-1-j: A-2, A-3, etc., priate." § 944.15 Records. All Persons affected A-10: BB, B-1, B-2, etc., B-8, AA $ 944.10 Allocations. When specific by any Order of the Director of Priorities being the highest rating presently as- allocations of a Material are made by shall keep and preserve for a period of signed." the Director of Prioritics, such allocations not less than two years accurate and $ 944.6 Doubt/ul cases. Whenever may. in the discretion of the Director, be complete records of their inventories of there is doubt as to the preference rating made without regard to any preference the Material covered by such Order, and applicable to any delivery, or as to ratings which have been assigned to de- of the details of all transactions in the whether a-particular order is a Defense liveries under particular contracts or Material covered by such Order. Such Order. the matter is to be referred lo the purchase orders.* records shall include the dates of all Division of Priorities for determination, 944.11 Use of material obtained contracts or purchase orders accepted, with a statement of all pertinent facts." under allocation 01' preference rating. the delivery dates specified in such con- § 944.7 Sequence of deliveries. (a) Any Person who obtains a delivery of tracts or purchase orders, and in any Every delivery under a Defense Order any Material under an Order or specific Herence Rating Certificates accom- shall be made in preference to deliveries direction of the Director of Priorities. or perving them. the dates of actual deliv- under all other contracts or orders when- a delivery of Material bearing a profer- CHCS thereunder. description of the ever. and to the extent, necessary to ful- ence rating. must use such Material. or Material covered by such contracts or fill the delivery schedule provided in the an equivalent amount thereof. for the purchase orders. description of deliveries FEDERAL REGISTER, Saturday, August 30, 1911 4491 by classes, types. quantities. weights and after regulate and govern all matters cin- wholly from silk, nor shall anything values, the partics involved in each trans- braced herein, except where inconsistent herein contained be construed to pre- action, the preference ratings, if any, with the specific provisions of any exist- vent any producer of rayon yarn from assigned to deliveries under such con- Ing or future Order or direction of the selling yarn not covered by this section tracts or purchase orders, details of all Director of Priorities. All existing Or- to any manufacturer. Defense Orders either accepted or offered ders, directions and actions of the Direc- and rejected, and other pertinent infor- tor of Prioritics are hereby ratified and Section 1337.2 is hereby amended by confirmed and shall remain in full force adding at the end thereof the following: mation.* $ 944.16 Audit and inspection. All and effect until they expire by their $ 1337.2 Disposal of yarn allocated records required to be kcpt by this Regu- terms or are specifically revoked or but not purchased. Provided, lation or by any Order of the Director of amended.* however, That if on the last day of August Priorities shall, upon request, be sub- any of the amounts of rayon yarn re- Issued August 27th, 1941, effective mitted to audit and inspection by duly immediately. quired to bc set aside during the month authorized representatives of the Office of August have not been purchased by of Production Management.* E. R. STETTINIUS, Jr., persons permitted to make purchases un- 944.17 Reports. All Persons af- Director of Priorities. der Section 1337.1, such yarn shall not be fected by any Order of the Director of Approved: disposed of by the producer thereof but Prioritics shall execute and file with the WILLIAM S. KNUDSEN, shall continue to be held by the producer Office of Production Management such Director General. thereof for disposition in accordance reports and questionnaires as said Office SIDNEY HILLMAN, with the terms of this program. shall from time to time request. No re- Associate Director General. Issued this 28th day of August 1941. ports or questionnaires are to be filed [F. R. Doc. 41-6490; Filed, August 28, 1941; LEON HENDERSON, by any Person until forms therefor are 1:40 p. m.] Administrator. prescribed by the Office of Production Management." [F. R. Doc. 41-6512: Filed. August 29, 1941; 11:15 a. m.] 944.18 False staiements. Any Pcr- son who wilfully falsifies any records CHAPTER XI-OFFICE OF PRICE which he is required to kecp by the Direc- ADMINISTRATION AND CIVILIAN SUPPLY [Schedule No. 25] tor of Priorities, or who otherwise wil- fully furnishes false information to the PART 1343-FATS AND OILS AND THEIR PART 1337-RAYON' Director of Priorities or to the Office of PRODUCTS Production Management, and any Person AMENDMENT OF CIVILIAN ALLOCATION ELIMINATION OF SPECULATIVE AND INFLA- who obtains a delivery, an allocation of PROGRAM FOR RAYON YARN TIONARY PRICE PRACTICES WITH RESPECT Material or a preference rating by means It is hereby directed that the amend- TO FATS AND OILS AND THEIR PRODUCTS of a material and wilful misstatement, ment to S 1337.1 which was issued August The Office of Price Administration and may be prohibited by the Director of Pri- 15, 1941, be amended by deleting the orities from making or obtaining further Civilian Supply is charged with the main- expiration date "August 31, 1941", and deliveries of Material under allocation tenance of price stability and civilian sup- substituting in lieu thereof the expiration and may be deprived of further priorities ply. Present stocks and production of date "September 30, 1941." assistance. The Director of Priorities fats and oils and their products are It is further directed that the amend- may also take any other action deemed ample. However, during the past few ment to $ 1337.1 which was issued August appropriate, including the making of a months, speculation in and hoarding of 10, 1941, be amended by deleting the ex- recommendation for prosccution under fats and oils and their products has cre- piration date "August 31, 1941", and sub- section 35A of the Criminal Code (18 ated the impression of a shortage and has stiluting in Heu thereof the expiration U. S. C. 80).* imposed an artificial influence upon date "September 30, 1941", and IL is 9.14.19 Appeal. Any Person affected prices detrimental to the public interest further directed that such amendment and national defense. The exhaustive by any Regulation or Order of the Direc- be amended by deleting the figure "95%" tor of Priorities who considers that com- investigation by this Office, and the in- and substituting in lieu thereof the figure formation and counsel furnished this Of- pliance therewith would work an excep- "100%.". tional and unreasonable hardship upon fice by the trade, have established the him, may appeal to the Division of Pri- Section 1337.1, as amended, Is also necessity for, and the willingness of the orities by addressing a letter to the Divi- hereby further amended by adding at trade to coopcrate in, the elimination of sion of Priorities. Office of Production the end thereof the following: certain of these speculative and inflation- Management. Social Security Building, 1337.1 Allocation of materials. ary price practices. Washington, D. C., setting forth the per- Therefore, under the authority vested Provided further, That the tinent facts and the reasons such Person rayon yarn expressly required by this in me by Executive Order No. 8734, it is considers that he is entitled to relief. program to be made available to hosicry hereby directed that: The Director of Priorities may thereupon manufacturers and to other former users § 1343.1 Elimination of speculative take such action as he deems appropri- of silk shall be used only to replace silk, resales. No person shall buy or offer to ate.* and the amount thereof shall therefore buy, and no person shall sell or offer to $944.20 Notification of customers. be computed apart from the quantities of sell, fats or olls or their products for the Any Person who is prohibited from, or rayon yarn which will, in the reduced purpose of reselling them at a profit restricted in, making deliveries of any amounts available by reason of this pro- without either (a) further processing Material by the provisions of any Order grain. be supplied to persons who prior them or (b) performing some other rec- of the Director of Priorities shall, as soon to August 1, 1041 were purchasers of ognized function in the distribution or ns practicable. notify each of his regular rayon yarn, and Provided also, That manufacture thereof. customers of the requirements of such nothing herein contained shall be taken Any purchase or sale of a futures con- Order. but the failure to give such notice to be any representation on the part of tract made on an erganized commodity shall not excuse any customer from the the Government as to the suitability of exchange to hedge a position, or any pur- obligation of complying with the terms any process of manufacture of rayon yarn chase or sale made to fill an order on of such Order.* for the manufacture of hosicry or other hand. to avoid transportation expenses. 944.21 Effect of regulation; ratifi- products formerly made largely or cr to facilitate any other recognized cation of prior acts. This regulation shall take effect at once, and shall here- F.I. 3922, 4115, 4214. F.IL. 1917. No. 170-2 979 requirement CROSS /HEF. 1 proj December 4, 1942 2 3 To: sesistang Chief in Charge of Planning And ********** office of Programent and Material, Mary Department From: Staty Kay, Director Statistics Division Subject: Asbectos Requirements of Bureau of This and Turnan of Turds and Decks The Dark and Asbector Division of the WE has requested this office to obtain the mest recent estimates of the Therents of Ships sad the Durenz of Turds and Docks for ashests in terms of the grean weight of artestos procusts rather than the net veight of the asbestee restained in shone products as heretofore reported. The acceptly for reporting gress instead of net weight afison free the fact that bettlenesks exist is the facilities for fubricating certain nebratos products, such as amosits insulating blocks, unite syart from the searuity or abundance of the Fav asbestos contained in those products. The nabasies reducts to be covered should be the trme as these shown on previous asbestos reports and include the fel- leving Items: Products using Chrysetile - Bureau of Thips: 855 Nagasais Pipe Gevering $57 Magnesia Cansut *9% Magnesia Blecks High Temp. Asb. Pipe Cevering High Temp. Asb. Commit Assay Asbectos Marine theathing Asbestos Millboard Restric Cable Filler Asbectos Cloth - 80% Asb. Fire Fighting Suits "age, Twine Yara 30, Asbector Filtens High Ass. Seguental Bleaks Facking Molded Blocks PY Carropated abouts Gersenl Aubestos Tape Missellanesus OKM-80 Dec. 4,1942 2a: Asst. thisf in Charge + November 25, 1942 of Flamming and Statistics Products value Amesite - Bureau of Ships: Pipe Govering Veras Asbectes Falt Eigh Temp. hab. Nagatal Blocks Asbestos Helded Blecks Corrugated Asbestes Corssal Asbestee Tape Burner of Lards and Deckgr Corrugated thests Asbestos Shingies Asb. Insulating Board 89% Magnesia Pipe Covering 555 Engnesia Blocks Amesite 10b. ripe Covering Amoxite Asb. Wlecks Verez Asbestes Falt Nigh Tesp. sub. Pipe Cov. (Paperx) High Temp. ask. Turbine Gevering (Bleck or Loose) There Asbectos Achestes Tape Brake Linings Gaskets the period to be severed by the report is the calondar year 1943, w quarters. Since a major parties of the requested information should be readily available in the work sheets used by the Bureaus in prepar- ing recent estimates of requirements for contained asbertos, it is expected that you will be able to supply the with the needed data by December 10, 1942. Year prompt cooperation will be appresisted. 13/ Story may BF Stacy May RUSherman, Jr:fal +) NAVY DEPARTMENT OFFICE OF PROCUREMENT AND MATERIAL 162240 21 5 CURRENT STATUS OF CRITICAL MATERIALS ( DECLASSIFIED > Authority DOD DIRECTIVE 5200.3 3/21/83 VOLUME No. s BY LIONES , NARA, Date 8/9/05 1 OCTOBER 1944 L EXHIBIT NUMBER 101 COMPIDENTIAL FOREWORD This report presents the supply demand relationship of most of the materials important to Navy production programs and Includes all these materials which were incorporated is Volume No. 1, dated 1 April 1964, in addition to these which have been discussed in supplements Insued nines. Cartain materials are not regarded sufficiently critical to warrent a detailed statement and are simply Nated for reference. h will be noted that since the publication of Volume No. & the Not of materials no langer regurded as critical has expanded considerably. The general easing of mest materials appears Mholy to continue and, when the termination of the European war results in substantial outbacks is military programs, the supply of meet materials should be adequate for military programs necessary to presseute the war in the Pasific. M must be smphosized that certain strategie and critical materials (mently imported, such as tim, miss, manila Sher, sincl, and natural crude rubber) will reunnin critical after the defent of Germany. Certain chemicals and text Hes will also remain is this entagory. Manpower is atill regarded as the most difficult factor indivencing the production of new materials, compenents and and products. When Germany is defeated, however, the labor situation may be alleviated. It will be noted that principal Navy - have been summarized at the beginning of the report on each material with a Slow exceptions where the - are obviews. This practice is Intended primarily to assist Nevy fluid mangower repre- mentatives in relating materials to and Items of munitions. Attention in again invited to the necemity of obtaining recommendations conserning increased - of critical ma- from the segnisant Divisions of this Office, the Materials Division, PM 230, and the Conservation Division, PM mode. Instructions If I i R to planned to issue frequent supplements to this report, as changes cosur in material situations. a M. Recember 8 COMPINENTIAL INDEX OF MATERIALS 1 1 Peal OIL (see Funis) 5 Asstone 3 Asstylene 7 Funis = Alsohol, Normal Butyl , Gas, manufactured (see Feels) z Alsohol, Allyl = Cas, natural (ass Funia) % Alsohol, Ethyl 7 Gassilne, Aviation (nee Fush) = Alsohole, Coconut off (estyl, normal deayl, lawryl, 7 Couphite-Amorphous Lamp n Graphite Electrodes (see Electrodus) us normal cetyl, steary!) Alloy Steel (see Controlled Materials) 14 Hardwood (now Lumber) = Aluminum (see Centrolled Materials) 14 Heltum 1 Amyl Alcohol H Hisles, Cattle 20 Antimalarials a Mydroducrie Acid, Ankydrows 2 Antimony 3 Bridium (nee Platinem-group Metals) $ 8 Jowel Bearings-AN Types 20 Asbestos sad Asbestos TextSes Atabrine (see Antimalerials) 8 Kapek 30 Aviation Gasoline, 160-Octane (ase Fush) 31 Lastrie Acid Bales (see Lumber) 81 Lanolta (me Degree) M Beasaldshyde 9 Load (Including Antimental) = Bensol 9 Liquefied Petroleum Game (see Funis) x Beryllium = Lithham Compounds and Lithken и Directh H Lithium, Oree and Metal z Butane (see Fuels, Liquelled Petroloum Gases) 94 Lumber = Cadmium 10 Magnesham X Calcite, Optical 3 Mahogany (me Lumber) = Calefum Carbide H Malete Ankydride 1 Carbon Electrodes (see Electrodes) 3 Manganess 1 Carbon Tetrachloride 11 Manda The (abaca) (see Fibera) 18 Castor on 1 Maroury s Chrome Chemicals 18 Mothyl Amines, Mone and DI = Chromium 18 Methyl Promide и Coal (see Fuels) = Methyl Ethy! Kotone z Cobalt 3 Misa, Amber Blook Columbium 14 Miss, Bookform Muscrite Spittings = Controlled Materials 14 Miss, Mussovite Block, all qualities and slees a Copper (see Controlled Materials) 14 Melybdonum I Corundum (Natural Primary Grain) 16 Monal z Cetton Textiles 17 Monosthanolamize z Cresol and Creaylie Acid (see Orreol, Meta Para) 17 Monomethylamine (ase Methyl Amines) = Cresol-Metz Para 17 Naphthenic Acid 2 Ouprous Oxide 17 Niskal = Degres 14. Mylon = 12 Diamonds, Industrial H Otticies ON Dishiorodifiveromethane (see Freen-12) 20 Ownlum (see Platimum Group Metals) $ 18 Palindium M DDT Dimothylamine (see Methyl Amines) 31 Paper and Paperheard (see Weedpulp) 18 Pare Phonyl Phone 84 Electrodes, Dipentene Carbon and Graphite H I N Bibyl Collulose (thermoplastic plastic) H Pentacrythettel (altration grade) 5 Ethylone Giysel Monobutyl (buty) collensive) 18 Penteerythritol (tocknical grade) 84 10 Fibres Pupper 5 Fibrous Class Textiles 3 Purchiorothylene and Trichlorothyisms 04 Flr, Douglas (see Lumber) = Perchiscio Acid и Fluerspar-Asid Grade 91 Phonel-Formaldskyde Resine (thermontting plas- 84 and cornamic grades z tie) Freen-12 20 Phospheres 34 5 CONFIDENTIAL 1 Phinelis Ankydride Plas (me Lumber) (Fibers) Pine on Biokromate (non Chrome Chemicals) Platinum Group Metain Bedium-Motalle Ptywood (see Lumber) Pulydishierestyvene (thermoplastic realn) ON (crude basin) (thermaplactic realn) (nos Controlled Materials) Polystyrene, Shrees or "PolyShes" (therms- Organis Detengents plastic reals) Block Polyviari Butyeel (see Benine) Polyviayl Becime realns) Load Potenshum Purchiorate Privicy Chieride (m Polyvingt Becime) PolyvinyMens Chieride (see Priyving Reales) Propare (see Funis, Liquified Petroloum Game) Pyrothrum ON Orystals (A) (Moh Inver oil) Hydrochloride (see Antimalarials) Valoanized Fiber Tubing (plactic) (see Antimalaria) Miero Orystalline (specification grades) Impressed ON Baren (Stigh Tenacity) Weel Grease ( Dagree) Medium (see Platinum Group Motals) Subber Dust Buthorism Onlds, Lead-Proe (Stab) Gel CONFIDENTIAL 1 ACETYLENE BLACK Uses Military Dry Batteries (Including dry cell batteries for Navy Communication and Ordnance Programs) R. R. Lanters Batteries Rubber Compounding Acetylene black to produced by only one company which b located in Canada. Several attempts have been made by companies in the United States to produce M acceptable grade of this material but none have been sommercially successful. A pliot plant is new being built that seems premising. During the Gret quarter of 1048 the expacity of the Canadian plant will be increased sufficiently to allow the importation of acetylene black in - of countial require- meats. The Army and Navy have requested that a stockpile equivalent to a siz months demand be established for security reasons. At the end of August the stock pile totalied 2,805,000 pounds including 1,886,000 pounds hald by Defense Supplies Corporation. (998 pounds) let Our. Qtr. Otr. One. Total Oir. 1944 1944 Not. 1944 20t. 1944 Inc. 1944 But. This New Supply-Total 2,271 1,900 1,900 1,900 8,000 2,000 д,000 Imports 2,271 1,900 1,900 1,900 8,000 2,000 2,000 Demand-Total 1,348 1,807 $2,075 2,158 7,000 2,127 2,130 Indirect Military (Batteries) 1,170 1,000 1,300 1,875 6,387 1,875 1,578 Indirect Military (Rubber Compounding) ITS 197 BYS 200 988 NO 200 *Astual ALCOHOL, NORMAL BUTYL Uses Butyl Asstate Inseet Repollents Dibutyl Phikalate (smokeless powder) HydrauMs Fluid Butyl Collossive ON Additives Laequer Selvents New facilities for the production of butyrie sold from ethyl alcohol to be completed by the Best quarier of 1948 will decrease requirements for normal butyl alsohol by 2,800,000 lis. per quarter. It is estimated that this will being supply and requirements into balance. Buty: alsohol is under allesation. On 1 October 1944 inventories equalied 1,800,000 pounds. (1,000 No.) Qtr. our Our. Our. 3 Not. 1944 Not. 1945 New Supply-Total 88,800 80,700 80,700 80,790 Prim. Production 87,200 88,000 88,000 88,000 Becond. & Berap TOO 790 700 700 38,006 41,244 28,000 20,000 Direct Military. I 2 1 3 Indirect Military & Resent. Civilian 88,790 34,000 $4,000 Import 6,886 8,804 8,004 8,000 ALCOHOL, BTHYL Mass Explaives, selvents, antifrees, ordnance (terpodees), synthetic rubber AM military and consential civilian requirements are being met in full under present controls. The sverall supply and demand is uncertain due to present requirements for butylenes for aviation gaseline. Dustriance are used in produc- ties of butadiss. At present othy! alcohol b earrying the full lead of butadions production for agrathetic rubber. M butylenes are returned to butadiens production the demand for sthyl alcohol will sase considerably. ALCOHOLE. COCONUT ON. (HORMAL OCTTL, NORMAL BECTL. LAURYL, CUTTL. STRARTL) You Manufacture of Smid, foaming agents for to fighting, Mary antimaption, all additives; synthetic rubber modifiers These matorials continue to be in short supply because of Image requirements for rubber modifiers. One-half of the geaduation of them alsohols b obtained through the redium reduction process, requiring the use of metalls sedium. At present, due to the shortage of andium, very Name b being allowed the the manufacture of these faity aleahols. AN military requirements and most assemital sivilina requirements are being met under present controls. 8 CONFIDENTIAL ANTIMALARIALS Blues Quinine, Totaquine, and Quinacrine Hydrochloride (atabrine) The government stockpile of quinine and quimine salts M of 1 September 1944 was 5,238,230 cancer, an increase of 445,713 custome over the actual steekpile of 4,863,546 - as of 1 January 1944. 530,000 cumees of quinime and quinine make, which has been added to the stockpile from 1 January to 1 Suptember 1944, is material that has been realized from processed sinehons bark. 104,375 cusess has been released from the government stockpile during the period of 1 January to 1 Suptember 1944. The military requirements for quinine and quinine salts have been greatly reduced in favor of Increased - of quinaerine hydrochloride (stabrine). Consequently, the Foreign Economic Administration has made dractic out-backs in their South and Central American development and procurement plans. Only einchona bark - taining over 3% total erystallizable alkaloids will be procured M compared to the procurements of all back in the past. Under the present Foreign Economic Administration plans for the salendar year 1945, it is estimated that approximately 18,000,000 pounds of einshons bark will be imported. Through M agreement with the United States, Great Britch is to receive approximately 3,080,000 pounds of einehone bark annually. It is anticipated that about 2,330,000 sumees of quinine will be realised by the United States during the calender year 1945 from the einehone hark imported and prosessed. At the present rate of consumption of quicine by the claimant agencies H is astimated that total requirements of quinine and quinine salts for the calendar year 1945 will be approximately 1,280,600 curres. The production of quinacrine hydrochloride (stabrine) is now is 020020 of requirements. Consequently, n b son- templated that the allocation order controlling the distribution of this synthetic antimalarial will be reveked by 1 Jane- ary 1945. All imported einehons bark containing less than 3% total crystallizable alkaloids is being processed into totaquine. The demand for this antimalarial, to date, has not been large. It is estimated that the inventory as of 1 Jenuary 1945 will be approximately 1,865,000 ouness. AM of these materials are at present under complete aboeation. ASSESTOS AND ASSESTOS TEXTILES USES (see table below) The requirements for the higher types of asbestos textiles (med for legging over plpe coverings and for Havy eable, etc.) have not been met in full, for the industry has not had the manpower and facilities to provide them. The use of Canadian Crude 1 and , and IF through ST, employed for these higher types, has been Menited by the Industry's espacity to consume, but by means of a combination asbestos and abrous glass cloth, together with on expansion is pro- duetive capacity of the industry which is now m process, it should be possible to meet the most Important requirements from new on. The tight supply situation OR packing, gaskets, and oil seals, due to insufficient manufacturing facilities continues. Asbertos-Critical Grades (Shert Tena) Actual Stocks 1944 Commung- Grade and Source 9/1/44 1944 Supply time Chrysotile-Rhodesian C & G/1 876 #1, *1,000 1,778 C & G/2 2,404 96,000 % 8,100 c & G/S 11,039 039 2 $2,446 4,706 Chrysotile-Canadian Crude 1 and 1 BB2 1,911 1,379 SF 200 ⑉ E IX 565 2,814 2,386 IR 2,763 11,200 12, 12,118 ST ⑉ 1,087 1,700 Dependent upon skipments to last quarter from South Africa. C8G137 Phocksin or Arizona CONFIDENTIAL 1 1944 Consumption of Asbectes by Red Use + (a) Asbertes Compressed Sheet Packing (Canadion $2, ST, and is) Compressed asbestos sheet packing is used by the Navy, the Maritime Commission and for other direct and certain indirect military requirements. 1 (b) Melded America Insulation Used by the Mary, the Maritime Commission, and for direct and indirest military purposes. + (a) Worm America Fall Invidation Used by the Mary and the Maritime Commission. 60 Firegrouf Marine Type Invulating Board (Amesite) Used on Proproof divisional bulk'hoads on Meritime Commission versols. (a) Sprayed Asberies Insulation (Amoolle and C & 6/8) Used by the Navy and Maritime Commission for ship insulation. + 6) u persond Magnesia and Other High Temperature Insulations (Amerite and Consdion as) H persent of the as persont magnesia and other high temperature molded insulations are required in insulation of Naval and Maritime versels; the remaining 45 persont to used for indirect military and amential sivilies purposes for high temperature insulations. (g) Asbecias Coment Pipe (0 & G/S, c s 0/4, and Blue) Used as a substitute for each from and steel water plane. M persent will be employed for water supply to military establishments; the balance will P for direct military sad emential civilles requirements. + (b) Missellaneous Date (Conodian ss) B Asbertos Tuntiles African 0 & G/1 and C & G/2 are principally senfined to Navy sable construction. Canadian Crudes and Canadian Grades IF and SK are used only for the higher types of asbectos textiles. INSALDENTE Uses Protective - claiment Delousing spray Benealdehyde became critical during September 1944 due to large military requirements for protective - sintment and delousing spray. It is expected that by March 1045 requirements and supply will be brought into balance through increased production and anticipated decreased requirements. BENSOL Does Manufacture of sumone (aviation gasoline) Manufacture of styrene (Buse 5) Manufacture of nylon, phonol, aniline, etc. Bensol continues to be critical due to large aviation gasoline and synthetic rubber requirements. AM excential military and excential civilian requirements are being met under present controls. As of 1 September 1944 Government stocks totalled 23,500,000 gallons. Industrial stocks are negligible, (800 Gals.) 1st Qur." 2nd Qtr.° 3rd Ou. 4th Qtr. Total Ext. lot Qtr. 1944 1944 Est. 1944 Est. 1944 1944 list. 1065 New Supply-Total 88, 58,147 88,310 61,810 61,000 61, 244,207 61,800 a Prim. Production 88,574 $8,500 $4,000 48,000 108,874 66,998 Becond. & Berap 18,278 21,810 81,810 18,000 80,400 18,000 Imports 0 8,800 6,000 2,600 12,000 2,990 Allocations-Toini 84,617 28,176 $56,838 61,000 61, 206,201 61,000 Direct Military 345 1,100 1,188 1,040 1,000 1,200 Indirect Military } 54,372 DT,000 57,000 88,500 200,300 68,313 Civilian