1
Potomac *Ρ<*4€4&ΐίίι£4, ^ LYNNE M. LAMM Atomic energy legislation in Congress linked to power developments in northwest, with trend toward civilian control . . . Export insur- ance act continues govern in ent participation in private business . . . Commerce Department publication, Science and Commerce, proposed T>ORK barrel and public power elements in Congress have discovered a new ally in atomic energy. This is not to put the connection in a sinister light, by any means, since these Congressional enthusi- asts have a legitimate argument, so f^r. It remains to see how far the potentialities of atomic developments may be stretched. Atomic Energy Legislation Meanwhile, during debate on the Rivers and Harbors bill, Congressional advocates of Pacific Northwestern power expansion argued that these publicly financed de- velopments in their territory were closely keyed to the atomic future. A Congressional bloc, and η very influ- ential one, has been actively engaged in seeking to retain in the Pacific coast area the large government-sponsored and fi- nanced aluminum and electrochemical industries launched there during the war, and which in those years absorbed a large proportion of the electric power generated by the huge dams in the Northwest. The Hanford plant, on the Columbia River, in Washington State, it is claimed, has scientifically demonstrated the exist- ence of atomic energy, and is said to be now actually producing atomic energy, aided by the availability of large supplies of pure, cool water, as well as the hydro- electric industries built by the Govern- ment in the area. Also, however, there are said to be other defense projects still in the secret stage, which would be aided by approval of Congress of pending proj- ects in the present Rivers and Harbors bill. Elsewhere in Congress, the trend of atomic energy legislation is toward essen- tially civilian control of its development. This is in line with the more important recommendations made in the Bush re- port. The Senate has approved the McMahon bill, which is primarily a civilian control measure, and unless the May- Johnson version of atomic control is re- vived during House consideration, or is reflected in changes made when the bill reaches the conferee stage, this principle appears permanently fixed. So far, the House has shown a disposi- tion to back civilian control and in ad- vance of actual final votes it appears the House will lean closely toward the Senate version of atomic energy control legislation. In disposing of surplus aluminum plants and certain other government-built prop- erties, the Surplus Property Administra- tion has so far escaped any serious diffi- culty. The Department of Justice was brought in at one stage, but there was little political or public interest in arrangements. Now, the clause in the Act which was written in at the insistence of a former Attorney General, which gives that de- partment a virtual veto over any major surplus sale, is beginning to cause trouble. This clause requires Department of Justice approval of the sale of specified properties, over a certain value, with a view to pre- venting a monopoly, or violation of the antitrust laws. In itself, it was a natural precaution, but in the case of certain properties, of wide publicity value, or involving geographical industrial interests, the War Assets Ad- ministration is caught in the middle. In attempting to sell or lease some of its major surplus properties now, the sale is being held up, after award of bids, because of the intensive pressure for and against the sale. The Department of Justice is a politically minded agency, in some of its activities, and it gives heed to such factors. Regional interests, such as those affecting potential new chemical or electrometal industries in the West or other new terri- tory, also enter the situation. Expart Insurance Act Congress has had before it the past month the Export Insurance Act of 1946, of general interest to all exporting indus- tries. This Act, which would be adminis- tered by the Export-Import Bank, would extend the foreign trade insurance opera- tions of this government subsidiary to smaller exporters, as well as the export business now covered by the bank's activities. The Act establishes within the bank a Foreign Trade Insurance Division, author- ized to engage in export insurance and re- insurance. The division may also cover, in addition to insuring an export sale, re- lated services and charges, such as cost of insurance and freight, installation charges, etc. While the Act requires that the in- sured exporter must retain a substantial interest in completion of the transaction by the buyer—in other words, cannot leave the Government holding the bag— insurance can cover up to 90% of the con- tract price. The support for this legislation advanced in Congress is that it answers those who contend that American business is handi- capped in Latin America or other foreign trade areas, where longer credit terms and other features characterize the trade than are customary in American practice. The Act deserves further interest as a postwar manifestation of the Govern- ment's continuing participation in various phases of private business. In this case, it is still to be determined how much this step means, in the way of paralleling private business functions. The argument for the legislation is that it goes beyond what private banks are willing to do. In an}' case, it is part of the trend to broadening fields of governmental activity, spurred by war powers.* Publication Appropriation Asked by Commerce The Secretar3 r of Commerce has asked for an appropriation for publishing a de- partmental periodical to be called Science and Commerce. The publication would put before interested business the scientific and technical data developed by various government research activities in the De- partment of Commerce, covering new proc- esses, industrial developments, and other such information. The fund also would permit the depart- ment to reproduce any scientific or tech- nical report released by various bureaus for publication, to be sold at cost, where such publication was requested by any public or private organization. It is a passing comment that the Government Printing Office now performs this function, in a general way. Probably nobody con- nected with that old-line agency, however, would be aggressive enough to suggest to the Senate Appropriations Committee that the GPO merely be given sufficient funds and authority to extend its opera- tions to the particular field involved. In this connection, the Department of Commerce has prepared a sample catalog of secret German technical and scientific documents, which is available on request, and shows the information now being col- lated in the Office of the Publication Board. The report is titled "Éibliography of Scientific and Industrial Reports" and will be mailed t& manufacturers on request. Further FTC Complaints The Federal Trade Commission has issued further complaints against toiletry and drug manufacturers, in line with what was said here recently anent an apparent renewal of its campaign against advertise- ments with which it does not concur. VOLUME 2 4, NO. 12 » * » JUNE 2 5, 1946 1625 Publication Appropriation Asked by Commerce

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Page 1: Potomac Postscripts

Potomac *Ρ<*4€4&ΐίίι£4, ^ LYNNE M. LAMM

A t o m i c e n e r g y l e g i s l a t i o n i n C o n g r e s s l i n k e d to p o w e r d e v e l o p m e n t s i n n o r t h w e s t , w i t h t r e n d t o w a r d c i v i l i a n c o n t r o l . . . E x p o r t i n s u r ­a n c e a c t c o n t i n u e s govern in e n t p a r t i c i p a t i o n i n p r i v a t e b u s i n e s s . . . C o m m e r c e D e p a r t m e n t p u b l i c a t i o n , S c i e n c e a n d C o m m e r c e , p r o p o s e d T>ORK barrel and public power elements

in Congress have discovered a new ally in atomic energy. This is not to put the connection in a sinister light, by any means, since these Congressional enthusi­asts have a legitimate argument, so f^r. It remains to see how far the potentialities of atomic developments may be stretched. Atomic Energy Legislation

Meanwhile, during debate on the Rivers and Harbors bill, Congressional advocates of Pacific Northwestern power expansion argued that these publicly financed de­velopments in their territory were closely keyed to the atomic future.

A Congressional bloc, and η very influ­ential one, has been actively engaged in seeking to retain in the Pacific coast area the large government-sponsored and fi­nanced aluminum and electrochemical industries launched there during the war, and which in those years absorbed a large proportion of the electric power generated by the huge dams in the Northwest.

The Hanford plant, on the Columbia River, in Washington State, it is claimed, has scientifically demonstrated the exist­ence of atomic energy, and is said to be now actually producing atomic energy, aided by the availability of large supplies of pure, cool water, as well as the hydro­electric industries built by the Govern­ment in the area. Also, however, there are said to be other defense projects still in the secret stage, which would be aided by approval of Congress of pending proj­ects in the present Rivers and Harbors bill.

Elsewhere in Congress, the trend of atomic energy legislation is toward essen­tially civilian control of its development. This is in line with the more important recommendations made in the Bush re­port. The Senate has approved t h e McMahon bill, which is primarily a civilian control measure, and unless the May-Johnson version of atomic control is re ­vived during House consideration, or is reflected in changes made when the bill reaches the conferee stage, this principle appears permanently fixed.

So far, the House has shown a disposi­tion to back civilian control and in a d ­vance of actual final votes it appears t h e House will lean closely toward the Senate version of atomic energy control legislation.

In disposing of surplus aluminum plants and certain other government-built prop­

erties, the Surplus Property Administra­tion has so far escaped any serious diffi­culty. The Department of Justice was brought in at one stage, but there was little political or public interest in arrangements.

Now, the clause in the Act which was written in at the insistence of a former Attorney General, which gives that de­partment a virtual veto over any major surplus sale, is beginning to cause trouble. This clause requires Department of Justice approval of the sale of specified properties, over a certain value, with a view to pre­venting a monopoly, or violation of the antitrust laws.

In itself, it was a natural precaution, but in the case of certain properties, of wide publicity value, or involving geographical industrial interests, the War Assets Ad­ministration is caught in the middle. In attempting to sell or lease some of its major surplus properties now, the sale is being held up, after award of bids, because of the intensive pressure for and against the sale. The Department of Justice is a politically minded agency, in some of its activities, and it gives heed to such factors. Regional interests, such as those affecting potential new chemical or electrometal industries in the West or other new terri­tory, also enter the situation. Expart Insurance Act

Congress has had before it the past month the Export Insurance Act of 1946, of general interest to all exporting indus­tries. This Act, which would be adminis­tered by the Export-Import Bank, would extend the foreign trade insurance opera­tions of this government subsidiary to smaller exporters, as well as the export business now covered by the bank's activities.

The Act establishes within the bank a Foreign Trade Insurance Division, author­ized to engage in export insurance and re­insurance. The division may also cover, in addition to insuring an export sale, re­lated services and charges, such as cost of insurance and freight, installation charges, etc. While the Act requires that the in­sured exporter must retain a substantial interest in completion of the transaction by the buyer—in other words, cannot leave the Government holding the bag— insurance can cover up to 90% of the con­tract price.

The support for this legislation advanced

in Congress is that it answers those who contend that American business is handi­capped in Latin America or other foreign trade areas, where longer credit terms and other features characterize the trade than are customary in American practice.

The Act deserves further interest as a postwar manifestation of the Govern­ment's continuing participation in various phases of private business. In this case, it is still to be determined how much this step means, in the way of paralleling private business functions.

The argument for the legislation is that it goes beyond what private banks are willing to do. In an}' case, it is part of the trend to broadening fields of governmental activity, spurred by war powers.*

Publication Appropriation Asked by Commerce

The Secretar3r of Commerce has asked for an appropriation for publishing a de­partmental periodical to be called Science and Commerce. The publication would put before interested business the scientific and technical data developed by various government research activities in the De­partment of Commerce, covering new proc­esses, industrial developments, and other such information.

The fund also would permit the depart­ment to reproduce any scientific or tech­nical report released by various bureaus for publication, to be sold at cost, where such publication was requested by any public or private organization. It is a passing comment that the Government Printing Office now performs this function, in a general way. Probably nobody con­nected with that old-line agency, however, would be aggressive enough to suggest to the Senate Appropriations Committee that the GPO merely be given sufficient funds and authority to extend its opera­tions to the particular field involved.

In this connection, the Department of Commerce has prepared a sample catalog of secret German technical and scientific documents, which is available on request, and shows the information now being col­lated in the Office of the Publication Board. The report is titled "Éibliography of Scientific and Industrial Reports" and will be mailed t& manufacturers on request.

Further FTC Complaints

The Federal Trade Commission has issued further complaints against toiletry and drug manufacturers, in line with what was said here recently anent an apparent renewal of its campaign against advertise­ments with which it does not concur.

V O L U M E 2 4, N O . 1 2 » * » J U N E 2 5, 1 9 4 6 1625

Publication Appropriation Asked by Commerce