Document rpn40daob730ZGk3Nr2LNEqeG

\3F01 ASBESTOS INFORMATION ASSOCIATION NORTH 1660 L Sireet. N W Washington 0 C 20036 , (202) 2234885 12 May 1975 Memorandum For: MEMBERS Subject: Pending legislation concerning sale of chrysotile asbestos from the national stockpile On April 8, Representative Millicent Fenwick (R-NJ) introduced a bill (H.R. 5683) which would authorize the General Services Administration (GSA) to dispose of about 9,900 s.t. of chryso tile asbestos from the national stockpile. This amount is in excess of the nation's current chrysotile stockpile objective of 1,100 s.t. GSA has advised that such disposal, if approved, would be by sealed bidding. The basic justification offered in support of this legislation pertains to the current unemployment situation in the United States which is expected to be further aggravated by the shortage of asbestos available from Canada in 1975. (News & Notes, 4/28/75) A copy of Congresswoman Fenwick's bill and pertinent excerpt from the Congressional Record for 8 April are attached. A detailed inventory of the chrysotile asbestos in the national stockpile that would be affected by this legislation is also attached. H.R. 5683 has been referred to the Sea Power and Critical Mater ial's subcommittee of the House Armed Services Committee, chaired by Rep. Charles E. Bennett (D-Fla). A date for subcommittee con sideration has not yet been announced. As may be noted in the appended copy of Rep. Fenwick's letter of 5 May, the Association has been requested to provide general comment on the pending bill and, specifically, advise as to what affect the current shortage of asbestos will have on members. Members may wish to communicate directly with Congresswoman Fen wick's office. Additionally, members may wish to express their interests in this matter to members of Congress representing those districts where company plants are located for co-sponsorship of the bill, as may be desired. Related to the bill is interest in rebuilding the stockpile from the points of view of. strategic and economic interests should the legislation be passed. FMSI 03103 Page -2- Contact in Representative Fenwick's office for this matter is Canis, 1610 Longworth House Office Building, Washington, D.C. 20515; (202) 225-9546. . Enclosures FMSI 03104 ..'iV.v! / / / 94th CONGRESS 1st Session "jr ti" ilo P ^L# **tr-r IK THE HOUSE OF REPRESENTATIVES Aran. 8,1975 Ms. Fextvtck introduced the following bill; which was referred to the Com- . ; mittee on Aimed Services 5 A BILL To authorize the disposal of asbestos chrysotile from the national v ; stockpile and the supplemental stockpile. 1 Be it enacted by the Senate and House of Bepresenta2 tives of the United Stales of America in Congress assembled, 3 That the Administrator of General Services is hereby 4 authorized to dispose of, by negotiation or otherwise, approxi5 mately nine thousand nine hundred short tons of asbestos 6 chrysotile now held in the national stockpile established 7 pursuant to the Strategic and Critical Materials Stock Tiling 8 Act (50 U.S.C. 93-OSh) and the supplemental stockpile 9 established pursuant to section 104(b) of the Agricultural 10 Trade Development and Assistance Act of 1054 (OS Stat. 11 45G, as amended by TO Stat. COT). Such disposition may bo I FMSI 03105 2 1 made without regard to the requirements of .section of the 2 Strategic and Critical Materials Stock Piling Act: Prodded, 3 That the time and method of disposition shall he fixed with 4 due regard to the protection of the United States against- 5 avoidable loss and the protection of producers, processors, 6 and consumers against avoidable disruption of their usual 7 markets. . # f . ' . 'if ; "1 - ; U. ') ; . ; [>* f. : f $ Jt. c .>.ii u n 8 s) 8 - - ` ' . . ...' . " l ' As >>>> ^ * no.. ,, : ' v` - 8 vd-r;-_.il 't - i If , . i-1>;:' ' U * I:'1; "v: H o 3 ti* 2 | Ea o t g O~ Srt- P.Mi *JV-. o pp S' r. 5 g- 5>* %s 8 S. f.2* * 5 8 uj f** |*=< s a. S <3 SXL ScC >f`: . ,\ r: - 2 UN S3 Sz 2Oa Kuycna>u T* P3 CJ1 a* co co .J. . .!{<} \ .J; . : ` *.h c .sU:*-, : i V...-.2\ r. \d -\ .. - V .^ lit I"'-- . *; .:* ** *< ; f;.; .. ., ."V. ,.; v':*., * ,- . B 5.. */. '* -*; * I ............................. -i .. rt'*- "* FMSI 03106 H 252-1' CONGRESSIONAL RECORD -- HOUSE April S, ll'TJ , g ymy. -jinr.*.- n?. n:r.-roi.u. ns _ASi;r5.Co__ c;:r>.y::'yr:T r nio:i thz national. ti,:oc;^,n.u The. SPi'ARxj; pro u-:npo.-c. Under a previous order of the House, the gentle woman from New Jersey (Mrs. Fzx- \tick) is recognized for 5 minutes. Mrs. FENWICK. Mr. Speaker, the Labor Department announced on April 4 that during March, unemployment In the United States increased substantially. Whereas in January and February of this year 8.2 percent of the labor force was without a Job, during March the figure jumped to 8.7 percent. This means that 8 million Americans have no jobs. Both the President and the Congress recognize the severity of the economic crisis and are searching for programs which will lead to employment without stirring inflation. Consrcs3 has passed,. and the President has- signed, landmark tax legislation to stimulate the economy and the President has proposed an 13- menth extension of unemployment ben efits for jobless workers. . I think we all agree that our goal at ' this time 1s to get people back on the ; job. The unemployed from New Jersey who have visited my office are not look Ing forward to another year or more of . unemployment payments. They want i productive jobs. - j At this time we should do all in our : power to see that these unemployment : lines do not lengthen. One way Congress : can act to save lobs Is to authorize the ' disposal of asbestos chrysotile from the ; ' national stockpile. Disposal of tills j asbestos would prevent the further cro- i lion of lobs and wouid be one Federal ! employment program that would cost the taxpayers nothing. Today I am intro--: duclng disposal legislation because of the i sudden short supply of asbestos chryso- | tile In the United States. j The United States imports 100 percent i , of Its asbestos chrysotile. Over 96 percent comes from Quebec, Canada. The major Canadian asbestos mine--which is the: largest in the free world and is operated by the American-owned Johns-Manville Coip.--suffered a landslide In January 1975. thus effectively eliminating the ma jor U.S. source of this industrial ore. Other supplies of the asbestos ore are not presently available on the world market. In fact, according to the U.S. Bureau of the Mines, there is a world wide shortage o( asbestos mining capac ity and consequently a shortage of the ore. The effects of this sudden Interrup tion in supply are obvious. Many of the two dozen major primary producers of i asbestos products--who manufacture I such articles as textiles, brake linings, , fire-protective clothing. roofing, insula- tlon. and other fire-retardant building materials--will be forced to curb pro duction and lay off personnel. Produc tion cutbacks could affect many of the 142 factories in the asbestos products in dustry throughout the United States. In cluding the Jclms-Manulle plant lo cated in my own congressional district at Manvllle, N.J. which employs 2.100 people. Other States which have asbes tos products firms Include: New Hamp shire, 3: Massachusetts. 5: Connecticut. 2; Neiv York. 13; Now Jersey. 15; I'e.'tn- sylw.nia, 15: Ohio. 3; Indiana, 5; Illi nois, 11; Missouri. 5: Virginia. 2: North Carolina. 4: South Carolina. 2; Georgia. 2; Florida, 2; Kentucky, 2; Tennessee. 1; Alabama, 3: Mississippi. 2; Louisiana. 4; Texas. C: California. 19; and Arizona. 1. The additional unemployment that wlU be created is unnecessary for two reasons. First, the demand for asbestos chrysotile has not declined. Unlike in the automobile Industry, where demand for new cars has dropped substantially, de mand for asbestos products has not slackened with the recession. Second--and most important to us in Congress--the Federal Government maintains a vast stockpile of asbestos chrysotile for national defense needs. It I Is, of course, altogether fitting that the ' Government maintain such a stockpile. Yet, the present 11.030-ton. stockpile li' *;' far in excess of a prudent supply. The defense requirements of asbestos chrysotile are quite limited. The major } military uses of this kind of asbestos are / in the production of certain gaskets foe j tanks and for hoods of jet engines. The / Johns-Manville Corp.--the major de- I fense supplier--estimates that less than ,, 1 percent of its total production is mili tary related. - The General Services Administration has recognized that our defense needs for this natural resource are more than met by the present stockpile.' GSA recently completed a thorough review of our re quirements for asbestos chrysotile. based on the needs of the first 3 years of a war. GSA determined that 1,100 short tons of the asbestos would be adequate and that 9,990 short tens was In excess of stockpile needs. I think my colleagues will agree that the proximity of the Canadian mines and a 1,100 ton stockpile are suffi- clent for our defense preparedness. Mr. Speaker, under present law, our stockpiling system does not provide for disposal when domestic industries are critically in need of short-supply mate rials. This is tbs situation in which we now find ourselves: a major XJJ5. Industry is deprived of its supplies of a raw mate- . rial and consequently faces the prospect of diminished output and unemployment of many of its workers. In the case of asbestos chrysotile, there was no mali cious Canadian embargo, The mice was closed by a landslide. The only available source--until the mine can be reopened later this year--is the U.S. stockpile. The only way the domestic asbestos users can get the asbestos they need is through a congressional grant of authority such as the one I am introducing today. Mr. Speaker. Congress passed similar, legislation in 1970 which authorized the disposal of 2.304 tons of asbestos chrysottle from the national stockpile. The as bestos was sold off through an open bid process. This disposal w.v: completed in 1074. and no further asbestos can be soM u:\ld Ccv.gr.v.i :v.!i!u.'i:.s:-i it. As a concluuing note. 1 would like to point out that asbestos Is used in the pro duction of home insulation. I have joined with many or my colleagues who have urged tax deductions and credits for homeowners who Insulate their homes and who thereby aid our merry con. vatton etfort. UnU\*o our manuS^cV.r have the raw ar*bi'itoj to. worl: with. t'r. v.'ill be no anbe /.or, lor /jar can honicovmcrs lo buy. Mr. Speaker, wo arc all serious ah1 putting people backvto work and keep present employees on the jcb and we k; here an opportunity to aim tlr.s co mitment with prompt and positive ac-.i I ask the support and cooperation of my colleagues In seeing that this lesis tlon is speedily enacted into law. The text pf my bill follows: . i- KJt. 683 A bill to authorize the disposal of ashec chrysotile from the national stockpile : the supplemental stockpile Be it enacted by the Senate and House Representatives of me United States of Arr. ica in Congress csserrb/ctf. That the AcJ.r. Utrator of General Services Is hereby ; thbrlzed to dispose of. b7 cepociattio or o erwlse, approximately nine thousand n hundred short tor.s of asbestos chrysotile r held la the national stockpile establish pursuant to the Strategic r-~d Critical : terlals Slock Piling Act (CO U.SC. 03-9' &ad the supplemental ttocxplie estabiLs.' pursuant to section 104(b) of the A^r;c tural Trade Development and Assistance . or 1954. 68 5tat. 456, as amended br 73 S 697. Such disposition may te made r;ch> regard to the requirements cf section 3 the Strategic sad Critical Materials Filing Act: Provided, That- the tttr.e : method of disposition shall be fixed tviih < regard to the protection of the United Sts against avoidable loss and the protection producers, processors, and consumers s^at avoidable disruption of their usual mark< FMSI03107 CHRYSOTILE ASBESTOS IN THE NATIONAL STOCKPILE AFFECTED BY II. R. 568 3 GRADE C & G-l C & G-l MIR TYPE 4 C 6 G-2 C & G-2 MIR TYPE 4 3K CRUDE 1 CRUDE 1 MIR TYPE 2 CRUDE 2 CRUDE 2 MIR TYPE 2 CRUDE 3 ASBESTOS LAP 1500 GRAIN ASBESTOS ROVING 7 CUT ASBESTOS ROVING 10 CUT o 3K MIR TYPE 2 3K MIR TYPE 4 ? GRADE 2 MIR TYPE 2 GRADE 3 MIR TYPE 2 3T MIR TYPE 2 QUANTITY (SHORT TONS) 1628 761 1258 170 1200 898 71 154.4 550 2 .3 .2 .3 185 1545 429 513 TOTAL 501 9866.2 FNIS1 03108 *MlLLICtN*l I l MWICft 9m District, New Jrntrr - ' 'cdMMtrtrrsi VANNING. CUHRENCY ANO - ,, HOUSING SMALL BUSINESS (Congress of ilje ^liutcb States JHousc of ^.vrprcocidatiucs JOJasIjiit^tim, p.(!l. 20515 May 5, 1975 MAnMiMr.roN oipii r 1IO LONOwnwni Mn.'.r Orrt~* Huiloimo WASHINGTON. U c. 2i5l* TatfMON' . (202) 223-TKJ0 otsrwiCT orncM- . 41 North Omocc Statct SOHknviLLC. Nr.vw Jr^*,cr 01076 TIUMWNC. (201)722-6290 Pott Orw:c Uuhoimc 1 Morris SrwrtT MOHHtTTQWM, NCW jEAtrV O7960 TCLCTHONC, (201) 5J&-7267 Asbestos Information Association of North America 1660 L Street, N.W. Washington, D. C. . Gentlemen: ' On April 8, I introduced a bill to allow for the release of asbestos chrysotile from the national stockpile. A Canadian landslide has wiped out most of our supply of asbestos and the damage cannot be repaired for many months. The unemployment that could result warrants action by Congress as soon as possible. 1 thought that your association might be interested In this legislation and I would like to know your thoughts on the problem--as described in my attached statement--and in the proposed bill. Will a shortage of asbestos affect the firms you represent? I would appreciate any help you can give me on this subject. With all good wishes. Sincerely yours. MF:ck MIJ.LICENT FENWICK Member of Congress mi* STATIONERY PRINTEO ON PAPER MADE WITH RECYCLED FIBERS FMSI 03109