ores and in the event it identifies as Rhodesian it would be impounded, of course.

As far as I know, no Rhodesian chrome ore comes into the United States.

However, as I understand it, there are other nations whose private sectors are quite willing to purchase high grade Rhodesian chrome ore at attractive prices and, consequently, since the ore is not in Rhodesia, and is consumed, presumably it isn't just stockpiled at the prices you pay for chrome ore, I just have to conclude that other ferroalloy producers, aside from the United States and Great Britain, do indeed consume it.

As I said in the formal testimony, I would have equal confidence that stainless steel coming into the United States as well as the competing ferrochromes do contain Rhodesian chrome ore. I would like to have the same privilege, Senator.

(Chart follows:)

PRICE OF RHODESIAN CHROME ORE

Senator AIKEN. I believe one of your charts shows the price of Rhodesian chrome ore at $30 a ton.

Mr. BLISS. The only prices we have on Rhodesian chrome ore were presanctions because we have no knowledge as to what they charge for Rhodesian chrome ore today.

Senator AIKEN. I notice the prices in the various countries $30 in Rhodesia, and $72 for what we buy from Russia.

Mr. BLISS. Yes, that is correct. We used to pay ourselves, sir, since it was a captive mine, in the neighborhood of $30 a ton presanctions for Rhodesian chrome ore. We are currently paying Russia $72 a

ton.

Senator AIKEN. The price in Rhodesia would be, you estimate $30. Mr. BLISS. No, I would judge

Senator AIKEN. More than that now?

Mr. BLISS. I would judge, Senator, that the Rhodesian chrome ore is selling at somewhat higher prices today.

Senator AIKEN. It is.

Mr. BLISS. I would be highly surprised, however, if the Rhodesian selling agency could command prices equal to the Russian prices.

You must look at it this way, that the United States is one of the biggest consuming markets and we cannot buy that ore, Rhodesian ore. Thus we are obliged to purchase Turkish and Russian ore, and the sellers knowing that and knowing it has no competition from Rhodesia in our marketplace naturally will get what the market will bear for the ores we must buy. Whereas those who are willing to buy the Rhodesian chrome ore, and I rather envy them naturally, are not going to pay as much as they would for ores that are not sanctioned. Senator AIKEN. France, Germany, England, and I think you mentioned Norway, Japan, are the large purchasers of Russian chrome.

Mr. BLISS. In the case of Japan quite surprisingly they used to be a substantial purchaser of Russian chrome ore, but lately they have not been despite the fact that their stainless steel production has riser sharply. That is a statement that might lead one to a conclusion, but I am unable to conclude

Senator AIKEN. That would be a mystery, wouldn't it?

Mr. BLISS. To one in the business it is not so mysterious but you see I am not in a position to comment. I think CIA and the State Department, people like this, might conclude better or know more. But surprisingly enough yesterday the State Department testified they only know what they read in the papers, and this related to, I believe, the talks going on between Heath and Smith. So maybe they just know what I know, what they read in the papers.

NO OTHER COUNTRIES EMBARGOED

Senator AIKEN. What other countries have been embargoed? Mr. BLISS. I believe Union Carbide has been mandated but I believe they would have to speak for themselves, Senator.

Senator AIKEN. I didn't say companies, I said countries.

Mr. BLISS. I beg your pardon.

Senator MCGEE. He said countries.

Senator AIKEN. What countries have been mandated against?

Senator MCGEE. We had testimony yesterday from the State Departmnet representative that there had been none.

Mr. BLISS. None that I know of. I think Rhodesia stands alone and uniquely in this respect.

RUSSIA IS BENEFICIARY OF EMBARGO

Senator AIKEN. So Russia is the big beneficiary?

Mr. BLISS. Oh, yes, and I am not critical when I say this. I think someone has said rather facetiously or maybe not so that they are more capitalistic than us imperialists in their attitude toward the pricing of goods.

Senator MCGEE. I also said yesterday during the testimony with tongue in cheek, that we might just as well use up Russia's chrome if it is so important.

Senator AIKEN. I don't think Russia is particularly noted for its consideration of minority groups, if I remember correctly, is that right?

Mr. BLISS. Well, I understand someone said that about 215,000 people ruled something over 300 million.

But apropos of your comment, Mr. Chairman, would you permit me when you said let's use up Russian chrome, even though they have this small percentage of the world reserves, this would be a lengthy process, and I would like to again call your attention to the Soviet export strategy which I believe, you may have in the record. This is from Ordnance magazine and it happens to be by A. C. Sutton, and this, I think, was a translation of A. N. Lagovkij's "Strategy and Economics." It is known as the "weak-link commodity" theory.

Senator MCGEE. Perhaps we can have a copy made for the files for the staff.

Mr. BLISS. Yes, sir, and I would just like to call your attention to the fact that the U.S. Department of Commerce in its Export Control, 85th Quarterly Report, page 19 shows that exports from Russia to the United States included the following items: chrome ore; diamonds, cut but unset; platinum, palladium, rhodium, nickel, titanium, and the total dollar value was $29,501,000, and the total imports from the U.S.S.R. to the United States were only $35 million, so that one could conclude that there may be some substance to the weak-link commodity theory.

(The information follows:)

A Reprint from ORDNANCE

Soviet Export Strategy

Has the United States-for economic and political reasons-become unwisely dependent upon the Soviet Union for critical materials?

A. C. Sutton

Reprinted from the November-December 1969 issue of

ORDNANCE

Copyrighted 1969

The Journal of the American Ordnance Association

Transportation Building, Washington, D.C.

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