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AGENDA REGIONAL MEETING OF THE MCA BOARD OF DIRECTORS 11:00 a. m. (EDT), Tuesday, October 21, 1969 Cleveland Athletic Club, Parlors A, B and C (8th floor) Cleveland, Ohio OPENING REMARKS. MINUTES OF SEPTEMBER 9, 1969, MEETING- REPORT OF THE SECRETARY-TREASURER. (a) Financial Report for Four Months Ending September 30, 1969 (b) Status of Membership Fee Collections, BOARD OF DIRECTORS. (a) Proposed Amendment to Rules of Organization and Procedure of the Air Quality Committee. (b) Proposal for a Joint Study of the Reactive Metals Industry by MCA and the National Air Pollution Control Administration (NAPCA). (c) Proposed Principals for Air Pollution Control. (d) Appointment of Chemical Industry Representative to the Office of Emergency Preparedness (OEP). (e) 19th Semiannual Meeting - November 25, 1969. (f) Regional Directors' Meeting - March 9-12, 1970, San Francisco Pebble Beach, California. (g) Policy Study Committee Report. COMMITTEE APPOINTMENTS. STAFF REPORT. COMMITTEE REPORT. Food, Drug, and Cosmetic Chemicals Committee W. E. McCormick, Chairman ADJOURNMENT. (Enclosure) (Enclosure) (Enclosure) (Enclosure) (Enclosure) xt Meeting of the Board of Directors will be held at 4:00 p. m. (EST), Monday, member 24, 1969, in the Board Room of the American Iron and Steel Institute, ^ East 42nd Street (38th floor), New York City. CMA 042078 1228 MINUTES of the one hundred eighty-ninth meeting of the Directors of the Manufacturing Chemists' Association, Inc. , held at the Cleveland Athletic Club, Cleveland, Ohio, Tuesday, October 21, 1969, at 11:00 a. m. There were present: F. Leonard Bryant, Chairman L. G. Bliss Leonard Hynes Edward J. Bock Earl T. McBee David H. Dawson W. Kenneth Menke George H. Decker Max A. Minnig William J. Driver Joseph A. Neubauer Clifton C. Garvin, Jr. L. J. Polite, Jr. Carl A. Gerstacker C. W. Smith Roger W. Gunder Harold E. Thayer Kenneth H. Hannan Robert J. Whitesell T. G. Hughes James R. Carnes Alternates: Stanley H. Anonsen (for Harold E. Thayer) J. E. Burrell (for Joseph A. Neubauer) John W. Clinton (for W. Kenneth Menke) E. Philip Comer (for L. G. Bliss) J. P. Cunningham (for Jack B. St. Clair) Irb H. Fooshee (for John T. Connor) John L. Gillis (for Edward J. Bock) James A. Hughes (for Raymond F. Evans) James E. Magoffin (for Harry D. McNeeley) Thomas B. Nantz (for Harry B. Warner) Donald O. Swan (for Clifton C. Garvin, Jr. ) Alfred N. Wohlwend (for George S. Dillon) General Counsel: Lloyd Symington Present by invitation: C. A. Cash, Diamond Shamrock Corporation M. Roger Clapp, The Lubrizol Corporation Jack H. Dollinger, Ferro Chemical, Division of Ferro Corporation M. Saul Hoffman, Basic Chemicals, A Division of Basic Incorporated James M. Howard, Greater Cleveland Growth Association Gordon Kiddoo, Yistron Corporation, Subsidiary of The Standard Oil Company (Ohio) Robert A. Lucht, The Harshaw Chemical Company, Division of Kewanee Oil Company W. E. McCormick, The B. F. Goodrich Company M. M. McGrew, The Lubrizol Corporation H. T. Marks, Ferro Corporation CMA 042079 1229 G. G. Pirrone, Diamond Shamrock Chemical Company M. B. Powers, The Brush Beryllium Company Earl C. Ray, The Harshaw Chemical Company, Division of Kewanee Oil Corporation George M. Rose, Vistron Corporation, Subsidiary of The Standard Oil Company (Ohio) H. William Strong, Jr. , Basic Chemicals, Division of Basic Incorporated A. B. Tillman, Diamond Shamrock Corporation Philip J. Weaver, B. F. Goodrich Chemical Company Robert E. Workman, The Goodyear Tire & Rubber Company, Chemical Division I. OPENING REMARKS. In opening the meeting, Chairman Bryant read the list of member companies in the Cleveland area who were hosts for this Regional Meeting, ex pressed appreciation for their hospitality and welcomed their senior represen tatives who were attending the Director s' Meeting by invitation. II. MINUTES OF SEPTEMBER 9, 1969, MEETING. The Minutes of the September 9 meeting of the Board of Directors were duly approved as submitted to the members. HI. REPORT OF THE SECRETARY-TREASURER. (a) Financial Report for Four Months Ending September 30, 1969. The financial report for the four months ending September 30, 1969, was summarized by the Secretary-Treasurer. ON MOTION, duly made and seconded, it was, VOTED: That the report be accepted and placed on file. (b) Status of Membership Fee Collections. The Secretary-Treasurer reported that all membership fees due as of the beginning of the current fiscal year had been paid in full. IV. BOARD OF DIRECTORS. (a) Proposed Amendment to Rules of Organization and Procedure of the Air Quality Committee. Chairman Bryant reported that, at its meeting earlier in the day, the Executive Committee had referred the proposed amend ment to the Rules of Organization and Procedure of the Air Quality Committee back to that committee for further study and possible amendment with the ex pectation that they will be considered at a future meeting of the Board of Directors. CMA 042080 1230 (b) Proposal for a Joint Study of the Reactive Metals Industry by MCA and the National Air Pollution Control Administration. Forwarded to the Directors in advance of the meeting and summarized by Chairman Bryant was a proposal for a joint study of the reactive metals industry by MCA and the National Air Pollution Control Administration. The proposal had been con sidered and endorsed by the Executive Committee subject to deletion of a pro hibition against including in the report of the study recommendations as to types of pollution control equipment appropriate to the reactive metals industry. ON MOTION, duly made and seconded, it was, VOTED: That the proposal be approved as amended by the Executive Committee, copy attached as Exhibit A. (c) Proposed Principles for Air Pollution Control. Forwarded to Directors in advance and summarized by Chairman Bryant were proposed Principles for Air Pollution Control recommended by the Air Quality Committee for adoption by the Board of Directors. ON MOTION, duly made and seconded, it was, VOTED: That the Principles for Air Pollution Control as set forth in Ex hibit B be approved. (d) Appointment of Chemical Industry Representative to the Office of Emergency Preparedness. Chairman Bryant reported that, due to the retire ment of E. Edgar Fogle as Executive Reservist-Consultant for the chemical industry with the Office of Emergency Preparedness, nominations for a suc cessor had been solicited from Directors with the result that Dr. Wayne T. Barrett of Foote Mineral Company and Alexander Cochran of Celanese Corpo ration had been recommended. The Executive Committee had considered both nominees and recommended that their names be submitted to the Office of Emergency Preparedness for selection of one as the chemical industry Execu tive Reservist-Consultant. ON MOTION, duly made and seconded, it was, VOTED: That the names of Dr. Barrett and Mr. Cochran be submitted to the Office of Emergency Preparedness with the recommendation that one be appointed as Executive Reservist-Consultant for the chemical industry. CMA 042081 (e) 19th Semiannual Meeting -- November 25, 1969. Mr. Carnes reported that plans for the 19th Semiannual Meeting were practically completed, 1231 that the Honorable Gerald R. Ford, the House Minority Leader, has agreed to be the banquet speaker, that with the exception of one place being held open pending a response from Senator Harrison Williams of New Jersey the roster of all dis cussion panels is complete, and that publicity flyers and registration blanks were mailed to member company representatives on October 2. Directors were re quested to expedite submission of registration forms for their firms. (f) Regional Directors1 Meeting -- March 9-12, 1970, San Francisco and Pebble Beach, California. On behalf of the West Coast Arrange ments Committee, Mr. Hughes reported that the Committee had met and de cided that the format for the 1970 meeting would follow that of previous years, beginning with a dinner given by Stauffer Chemical Company in San Francisco on the evening of Monday, March 9, with departure for Pebble Beach the following morning via aircraft of West Coast member companies. The schedule in Pebble Beach will include a program of receptions, golf and other entertainment with the Regional Meeting of the Board scheduled for Wednesday. Mr. Hughes expressed the hope that all Directors and their wives would attend. (g) Policy Study Committee Progress Report. After assuring the Directors that their views would be welcomed and referred to the Committee for consideration, Mr. Hannan summarized the proposed Policy Study Committee report which had been sent to Directors for study. He noted that the current study had reaffirmed the Association objectives developed by the McCurdy Committee in 1962 except to propose that the public affairs objective of the McCurdy report be divided into two parts, one dealing more precisely with government relations objectives and the other with public relations objectives. The report also pro poses that four committees be appointed from the Board of Directors, in place of the present individual Liaison Directors, to act in an advisory capacity both to the Board and to the technical and functional committees under their cognizance. For use in determining the validity of future proposed increases in membership fees, the report also sets forth the trend of Association budgets in recent years. Following discussion, including a question as to the desirability of eliminating the Liaison Director practice, Chairman Bryant announced that the report would be placed on the agenda for further discussion at a future meeting of the Board. (h) Request for Authorization and Funds to Oppose Proposed In creases in Tank Truck Freight Rates before the Interstate Commerce Commission. General Decker reported that the Transportation and Distribution Committee had recommended that MCA oppose a request by the Bulk Carriers' Conference before the ICC for increases of 4-5 1/2% in freight rates on dry and liquid chemicals transported by tank trucks. The increases, which would become effective Novem ber 17, would result in estimated additional annual freight charges of $7 million to chemical shippers. Unless the Bulk Carriers' Conference withdraws its request as the result of protests filed by shippers, prosecution of MCA's protest to conclusion would cost $25-$40, 000 for necessary studies and legal fees. The Executive Committee had considered the recommendation of the Transportation and Distribution Committee and recommended that the Board of Directors author ize a protest of the proposed freight rate increases to the ICC and revise the budget for the current fiscal year to authorize expenditure of up to $40, 000 in prosecution of the protest if necessary. CMA 042082 1232 ON MOTION, duly made and seconded, it was, VOTED; That authority be granted to file a protest of the proposed freight rate increases as recommended by the Transportation and Distribution Committee and that the budget for the current fiscal year be increased in the amount of $40, 000 to authorize the necessary expenditures. (i) MCA Centennial Celebration. Chairman Bryant reported that in view of the approach of the 100th Anniversary of the Association in 1972, the Executive Committee had considered the appointment of a committee to plan an appropriate commemoration. At the suggestion of the Executive Committee, Dr. David H. Dawson had consented to act as Chairman of the committee and, although Dr. Dawson has not yet chosen the members of his committee, Chair man Bryant recommended that the planning of a centennial celebration and the appointment of Dr. Dawson as Chairman of the Centennial Committee be ap proved. ON MOTION, duly made and seconded, it was, VOTED: That an appropriate MCA Centennial Celebration be held in 1972 and that Dr. Dawson be appointed as Chairman of a committee to make appropriate plans therefor. V. COMMITTEE APPOINTMENTS. The following committee appointments were approved: (a) Air Quality Committee. William L. Mann, National Lead Company (b) Education Activities Committee. Frank A. J. Moss, Stauffer Chemical Company (c) Food, Drug, and Cosmetic Chemicals Committee. Taylor W. Hanavan, E. I. du Pont de Nemours & Company -As Vice Chairman Jack R. Mennis, Merck & Co. , Inc. (d) Industrial Relations Advisory Committee. John A. Sage, Allied Chemical Corporation CMA 042083 (e) Insurance Committee. George Moore, Wyandotte Chemicals Corporation (f) Labels and Precautionary Information Committee. Robert E. Rutherford, Gulf Oil Corporation 1233 (g) Mechanical Technical Committee. G. F. Ours, Union Carbide Corporation -- As Chairman F, J. Heller, Phillips Petroleum Company - As Vice Chairman (h) Nuclear Committee. Nathan W. Bass, The Brush Beryllium Company -- As Chairman F. T, Barr, Jersey Nuclear Company - As Vice Chairman (i) Plastics Committee. Harry C. Wechsler, Borden Inc/Chemical Division D. C. Williams, Eastman Chemical Products, Inc. (j) Public Relations Committee. A. Robert Garofalo, GAF Corporation John J. McDonnell, Enjay Chemical Company (k) Transportation and Distribution Committee. Roland A. Blais, Rexene Polymers Company C. H. Vescelius, Olin Corporation C. E. Webb, Pennwalt Corporation VI. STAFF REPORT. General Decker reported upon developments in the Association's program of projects and activities since the last meeting, copy of his report appended as Exhibit C. VII. COMMITTEE REPORT. Chairman W. E. McCormick of the Food, Drug and Cosmetic Chemicals Committee reported upon the projects and activities of that commit tee, copy of his report appended as Exhibit D. There being no further business to come before the meeting, it was unanimously resolved to adjourn. EXHIBIT A PROPOSAL FOR A JOINT STUDY OF THE REACTIVE METALS INDUSTRY ^ mCA AND THE NATIONAL AIR POLLUTION CONTROL ADMINISTRATION (NAPCA) ^pjse: To collect, develop, and publish technological and economic information on air pollution control in this industry, and to develop information from which research needs can be identified and priorities can be established. The Reactive Metals Subcommittee to the Air Quality Commi. se ; piAPCA have jointly proposed a study of air pollution control in the "^active metals industry. The administration and supervision of the ~ * .jdy, which would closely parallel that of present studies, would De -^trolled by a Memorandum of Understanding to be negotiated between ;APCA and MCA. No MCA budget authorization would be required. Past and presently authorized studies under the joint spon sorship of MCA and NAPCA have been largely limited to a study of irrent industrial practice in air pollution control and the perform ance of devices now in general use under normal plant operating con ditions. The proposed study would extend to the collection of cost information on control devices and the evaluation of air pollution control problems during process upsets and operating transients, and .vould seek to identify needed areas of research or control equipment development. Data would be secured by questionnaire and by plant sampling, with all plant participation on a voluntary basis. All cost and othei sensitive data would be submitted through MCA, which would protect such data from plant or corporate identification both among the Work Cr.it and Steering Committee members and in the published reports. The reports developed by this proposed study would be infor mational, presenting technological and economic data useful to in dustrial managers and control agencies in developing abatement programs, and in selecting research goals and priorities. The recommendation of specif ic/^y-pee- -or/makes of control equipment or suggestion of levels rf expenditures for pollution control appropriate to the industry would "either be made in the reports nor discussed by the Work Units or Steering Committee. This proposal was endorsed by the Reactive Metals Group at its meeting of November 25, 1968 and by the Air Quality Committee on September 24, 1969. The Air Quality Committee, however, specificallrestricted its recommendations on the broadened scope to this studv nly, maintaining its opposition to the inclusion of cost data ir fher current studies. Board approval of this proposal is recommended. CMA 042085 MCA-iO/21/69 *(NOTE: The Executive Committee amendment deleted "types or") EXHIBIT B PRINCIPLES FOR AIR POLLUTION CONTROL Air pollution occurs when the atmosphere is burdened with con taminants to the extent that undesirable effects are produced. While natural phenomena can and do contribute to air pollution, that which gives greatest concern arises as a by-product of man's activities in fulfillment of growing biological, economic, and esthetic needs without adequate environmental controls. The chemical industry, like other industries, frequently en counters air pollution control problems in the course of manufactur ing its many products essential to man's health, welfare and physical comforts. The early and effective solution of such problems is a goal to which the industry has shown a long and growing dedication. Through constant research not only does it seek new and better ways to control its own emissions, but it also provides an expanding source of control technology for appli cation in other industries. In the conduct of its operations and the management of its air conservation programs,the following principles govern: 1. Prevention is better than treatment. Minimizing the generation of pollutants should be an explicit goal at all stages of process development, from the earliest phases of research through the design of production facilities. Process control that eliminates or reduces emissions is generally more desirable than treatment of potential pollutants after they are formed. 2. Waste disposal practices should protect the total environ ment . Control techniques that merely shift wastes from one medium, the air, to another, such as the soil or water, are acceptable only when the alternate medium has the appropriate capacity to accept and assimilate the discharges. 3. Conservation of process materials minimizes pollution. Collection and salvage of recoverable materials from plant discharges conserves natural resources and protects the environment. Pre vention of process losses is good management as well as good indus trial citizenship. 4 - Good air management practices are dictated by responsibility to the community as well as to stockholders. A good corporate neighbor respects the attitudes and desires of the community; in CMA 042086 contributions to community dialogue# it presents the facts required for the growth of informed public opinion. 5. Technical and scientific information on air pollution control, generated within the chemical industry, should be shared. Such in formation exchange should be fostered by encouraging qualified employees to participate in activities of professional societies, trade associations, and governmental agencies serving this field. 6. Good industrial citizenship involves active participation in the political decision-making processes. The technical expertise and economic competence of the chemical industry should be applied constructively to the development of ambient air quality standards, emission control regulations, and administrative and enforcement procedures that will provide the community with the best environ ment at the least total cost to society. 7. Responsible industry seeks to be law-abiding. Monitoring programs and established lines of supervision assure management of positive knowledge that applicable standards are being met. In the event of excessive emissions resulting from accident or process upset, control agencies are promptly furnished information that is as frank, factual, and as complete as possible. The objective is full compliance with both the spirit and the letter of pollution control regulations. Approved by the Air Quality Committee April 23, 1969 MCA-10/21/69 CMA 042087 EXHIBIT C STAFF REPORT October 21, 1969 Presented by General G. H. Decker The tempo of MCA staff and committee activity has been steadily in creasing on all fronts daring the six weeks since we last met. On September 29, George Dillion of Airco testified on the Association's behalf at the Senate Finance Committee Tax Reform Act hearings. He made a strong plea for a corporate rate reduction to offset the burden of repeal of the investment tax credit and other "reform" measures contained in the proposed bill. After five weeks of hearings on the measure, Committee Chairman Russell B. Long (D-La. ) has predicted that it will be ordered reported by the end of October. George L. Gorbel of Monsanto was MCA's principal witness October 9 on occupational safety and health bills pending before the House Select Subcom mittee on Labor. Mr. Gorbell indicated that the approach embodied in the Administration's proposal is much more acceptable than that offered in other bills. ft#####:};# Senator Russell B. Long (D-La, ) and Senator Philip A. Hart (D-Mich. ) have introduced bills (S. 2156 and S. 2631) prohibiting tax deductions for twothirds of treble damage payments made in settlement of antitrust actions. MCA opposed this approach in an October 6 statement to Senator Long, based on a position paper approved by our Executive Committee in May 1968. Although the Senate Finance Committee has not announced hearings on specific treble damage legislation, Chairman Long has asked the American Bar Association to present its views on this subject during the Tax Reform Act hearings. Also, during the past week, he introduced a treble damages amendment to the pend ing tax reform bill which the Finance Committee adopted on October 15. How ever, the committee changed the effective date of the amendment from Decem ber 31, 1967, to December 31, 1969. :{s # 5!( # CMA 042088 We have learned that the Administration's Trade Bill, cleared by Cabinet agencies and now awaiting Presidential approval, contains a provision which would repeal the American Selling Price method of customs valuation. According to our informants, the President has not yet reached a final decision on the ASP question, but is expected to send the legislation to Congress within a few days. 2- - <* Internal divisions developed within the Administration and within certain of the Cabinet agencies themselves on the ASP issue. Some officials argued that it should be retained as a basis for future negotiations, but the free traders won out. Their contention: The United States should lead the way towards further trade liberalization by acting first with abolishment of the American Selling Price. The only hope of getting the ASP deleted from the final draft of the Trade Bill lies in firm protests on the part of our membership. My office has sent a confidential advisory to appropriate member company executives suggesting that they wire the President, the Secretary of Commerce, and con tact their Congressmen, urging deletion of the ASP provisions; members of the MCA Washington Advisory Committee have been alerted. MCA's monthly Chemical Forum series continues to provide an effective platform for newsmakers. Front pages throughout the country carried reports on this month's luncheon address by Assistant Secretary of the Treasury Murray L. Weidenbaum who selected the occasion for a major declaration of the Admin istration's economic policies. The next Forum luncheon on November 3 in The Madison Hotel will feature Under Secretary of Labor James D. Hodgson. He will discuss pending Administration proposals on occupational safety and health legislation. If you or your associates are in Washington on that date, we urge you to attend. T `TJU4 s'IV' O# 'I' 'OI'f VOf 'OI'f In a letter to Senator Long, Chairman of the Senate Finance Committee, MCA has presented its case against the inclusion of enviornmental policy mat ters in the Tax Reform Bill, H. R. 12370. The Association urged that section 704 of that bill, relating to rapid amortization of pollution control facilities, be deleted and separately considered at another time by Congressional com mittees responsible for national environmental protection policies. In its present form, the measure would drastically alter current Congressional policies; it would provide for establishment of federally promulgated emission and equipment performance standards for pollution control facilities certifi able for favored tax treatment. A flood of requests has been received from member companies for help in preparation of technical testimony and policy position statements for local, state and regional hearings on standards and abatement programs. Consequently, the Air Quality Committee and Water Resources Committee is organizing a Joint Subcommittee on Air and Water Pollution Legislation and Regulations. This subcommittee will permit participation by an increased number of attorneys from our member companies, and will enable them to have both technical and legal representation in the total committee structure CMA 042089 -3- devoted to air and water resource management, A meeting to organize the subcommittee is scheduled for October 28, and the hope is to have an effective program under way shortly thereafter. A task group has been formed of representatives of the Safety and Fire Protection Committee, Transportation and Distribution Committee, Transpor tation Equipment Committee, and Public Relations Committee to carry out a feasibility study on the establishment of a chemical transportation emergency information center. This study was prompted by expressions of interest shown jointly by the Departments of Transportation and Health, Education and Welfare and the American Chemical Society as a means of dealing with chemical trans portation emergencies. The first meeting will be held October 22; the task group has been requested to submit its report not later than February 1970. -i- -tib- *Jr*j -lbi* I.V nJSf 'iti*' -r* The Safety and Fire Protection Committee will sponsor a meeting of manufacturers of vinyl chloride at MCA offices on October 23. This follows the recent tank car accident in Mississippi when about 30, 000 people were evacuated from their homes because of the inaccurate belief that the smoke cloud from the burning vinyl chloride contained dangerous concentrations of phosgene. lb %ft# 'I- 'f* fp The Nuclear Committee is concerned about recent public demonstrations directed against installation of nuclear facilities. Even the peaceful utilization of the atom, including power generation, has been opposed. Disregarding the lunatic fringe, the demonstrators include those with real concern about thermal pollution and about unforeseen accidental radiation exposures. The committee believes this opposition can be countered only through a carefully thought-out public information program, executed in cooperation with other concerned organizations such as the Atomic Industrial Forum. The Nuclear Committee also is concerned about the tendency of the Atomic Energy Commission to overlook the availability of private nuclear facilities. The recent example of marketing and production by the Government of the new element, californium, is being brought to the Commission's atten tion. To avoid similar future occurrences, MCA is urging incorporation of an amendment to legislative proposals recently submitted by the Commission to the Joint Congressional Committee on Atomic Energy. Such amendment would require private sector consideration in awarding of contracts. TO# Tlb i*ji*r T TJ/ T* 'Pif# I'if# CMA 042090 -4- The Insurance Committee has distributed copies of the report on its survey of fire and explosion losses experienced by member companies in 1968 Property damage losses reported by 90 participating member companies totaled more than $27 million compared to losses of $16 million in 1967. Copies of the second printing of the Laboratory Waste Disposal Manual are now on hand and MCA is filling a backlog of orders totaling more than 200Q copies. ,,, T* sh,J' J*T# s'Tt#' '*.I<' Slj fcIl* About 150 persons attended the September 23 symposium in New York City on fire loss prevention, sponsored by the Insurance Committee and the Safety and Fire Protection Committee. The growing problem of purchasing adequate insurance was stressed and speakers described means by which com panies may carry out safety analyses of chemical plants. #>!<>}; # sjs >}: The first advanced seminar for training of engineers in water pollution control in the chemical industry, was held September 29-October 3, at Morris town, New Jersey, and was most successful. Among the 21 registrants in cluded those who had completed the basic seminar or who had five or more years1 experience in the field. Instructors presented a problem-centered program featuring many problems offered by the registrants. Urf O-vr*f s'Ti#* si# nfi <T' -p. 4rOk# The Occupational Health Committee will hold a workshop on Occupa tional Health in New Orleans on November 5, 1969, with the Louisiana Chem ical Association as cosponsor. %l# #Wp Urjkl k^L kb kb kb The Environmental Health Program is being accorded good coverage by the press. On September 29 at MCA's first Water Pollution Control Seminar in the current series, a press briefing by W. Wesley Eckenfelder, seminar director ,, resulted in numerous stories about the industry's efforts in the pollution abatement field. Distribution by the Environmental Health Information staff of "Clear inghouse, " a series of briefs featuring the industry's pollution control activi ties, has been well received by the wire services including the AP and UPI. ^ * * * ^5 :;= CMA 042091 -5- A recent six-day visitation to West Coast Chemical Industry Councils by MCA's Community Relations Manager has helped to stimulate their pro grams and to keep the Association aware of their interests and needs. TJ* T *s1i'/ TsJ*j si# 'JI*/ The Consumer Information Program is becoming increasingly active. Many Executive Contacts attended the October 10 luncheon meeting of the Program Subcommittee's fall meeting in Pittsburgh. A slide presentation on the program's background, development and work by the Manager of Consumer Information was among the features. An interview with her led to a special article in the Pittsburgh Press. # Dr. Sheldon Moline, Project Scientist, Union Carbide Corporation, represented MCA at the U. S. Department of Agriculture's Southern Nutrition Conference in New Orleans. Copies of his talk, "Food Additives, Facts and Fantasy, " were mailed to 250 food editors and are now being sent to all state nutritionists. Dr. Moline was interviewed by the local press and on television. k/jbk h/|Ik* ifJU* k*|bk. k/fbt Jif*/ rJf*t krfb* Two more "Good Living" radio shows, with an estimated audience of seven million, have been taped, one on agricultural chemicals and the other on transportation of hazardous chemicals. MCA's Chemistry in Action" exhibit is being presented October 21-22 in Philadelphia at the Annual Meeting of the Extension Home Economists, attended by 1, 000 people. Items distributed include MCA materials, a list ing of CIC contacts, and a questionnaire to determine attendants' and con sumers' interests in the chemical industry and its products. Plans call for completion next month of the first slide program telling the "chemistry is everywhere" story in generic terms, Union Carbide's film strip, "Would You Believe Tomorrow" is being converted into slides and 1,000 sets will be available for distribution. $$$$$$$$ CMA 042092 EXHIBIT D REPORT OF THE CHAIRMAN OF THE FOOD, DRUG, AND COSMETIC CHEMICALS COMMITTEE TO THE MCA BOARD OF DIRECTORS OCTOBER 21, 1969 The Food, Drug and Cosmetic Chemicals Committee was established by the Board of Directors in 1950. Its purpose at the time of establishment -- and this is still true -- was to develop and recommend policies and positions on legislation and regulations affecting chemicals in food, drugs, and cosmetics, and to formulate principles and encourage technical developments pertinent to the use of such chemicals.. During the 50's, much of its effort was devoted co MCA's position and activities with respect to the Federal legislation; then, in development, such as the 1958 amendments to the Food, Drug, and Cosmetic Act, and the legislation relating to economic poisons. The committee played a prominent role in the development of MSA's publications on food additives in the early 60's. Currently, 21 companies have representation on the committee. This membership consists of attorneys, toxicologists, chemists, food scientists, etc. Current Activities During the past year, the committee has been active in assessing proposed legislation and regulations in both the domestic and inter national fields. The latter has received a major emphasis because of the general activity in international food regulations and because of the import of such regulations to MCA member companies. A brief discussion of these specific areas follows: 1. Domestic Regulations and Legislation The committee has developed MCA's position with respect to the U.S. Food and Drug Administration's protocols for safety evaluation. It has also formulated MCA's position on FDA's "Good Manufacturing Practice Regulations for the Food Industry". Currently, there is much activity at the federal and state levels on restrictive legislation for all materials influencing human ecology. This particularly includes food chemicals, pesticides, and cosmetics. We are attempting to keep abreast of these efforts and to have MCA assume an appropriate position. However, we believe the employment of extra-committee talent may be necessary and are reauesting stand-by funds for this purpose. cma 042093 At the request of your Public Relations Department, our committee is currently reviewing the MCA publication "Food Additives", 2/ produced in the early 1960's for semi-popular use, to determine the advisability of updating and reissuing. 2. International Regulations and Legislation During the past several years, we have observed an increased tempo in the efforts of countries, other than the United States, to develop more restrictive regulations with respect to chemicals entering foods, drugs, and cosmetics. The problem becomes insurmountable when ail of the individual vagaries of different countries are involved. ' ^ as a result, there has been an attempt to coordinate the efforts of all countries on an international basis through the Codex Alimentarius ~ Commission. This Commission has a number of functioning committees,' * such as Food Additives, Pesticide Residues, Food Hygiene, etc. The Commission itself, and its committees, is composed of governmental representatives, who, in turn, have industry advisors. During the past year, MCA was asked to nominate an Industry advisor to the Commission and Dr. Howard C. Spencer of the Dow Chemical Company was designated. Mr. Morgan M. Hoover of the MCA staff, and Secretary of the Food, Drug, and Cosmetic Chemicals Committee, is currently serving as an industry advisor to the United States delegate to the Codex Committee on Food Additives. He has just attended the meeting of this committee in Arnhem, Holland. Mr. Robert Ruark of the Corn Products Company has been quite active for several years in the same capacity. One of the Codex Alimentarius Commission's immediate interests is to establish permissible levels of many food additives in foods. Toxicological data is lacking on a great number of thepe. Through the July MCA General Bulletin, our committee advised all member companies having an interest in this important area to provide any such data to the secretary of our committee, Mr. Morgan Hoover, for appropriate transmission. 3. Future Activities We envision increased activity in regulations, both domestically and internationally. We believe it is important that MCA member companies be kept abreast of these developments and your FDCC Committee will endeavor to do so. During the past year, MCA appropriated $2,400 to cover the travel expenses of industry advisors to the Codex Alimentarius Commission and its Food Additives Committee. We believe this provision should be continued. We are particularly concerned about the Congressional attitude with respect to the Chemical Industry's role in human ecology. As I mentioned earlier, we foresee that a major effort may be needed within the coming year to counteract adverse publicity and legislation, and CMA 042094 H ed o ring ten : all is )f /ing :his :s s e. ide -3- chat this may require the employment of legal talent and of experts for Congressional Committee testimony. We are therefore requesting that the following approximate amounts be budgeted for our committee for the coming fiscal year: Travel for Industry Advisors ......................................$ 2,000 Contingency Fund for expert and legal needs...$20,000 $22,000 We believe the Food, Drug, and Cosmetic Chemicals Committee has served a useful role to the MCA membership. We foresee that this role will become even more important in the future and the committee stands ready at all times to provide to the Board and to the member ship the best of its abilities in fulfilling its responsibilities. Thank you very much. MCA-10/6/69 W. E. McCormick