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100114 1 (1976-11-24)

handle is hein.gao/gaobadxsj0001 and id is 1 raw text is: 


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                                                                LM100114




                United States General Accounting Office
                        Washington, D. C. 20548
 0                                              FOR RELEASE ON DELIVERY
                                                Expected 10:00 A.M. EST
                                                Wednesday, November 24, 1976

                              Statement of

                              Elmer B. Staats

                  Comptroller General of the United States

                               before the

                   Joint Committee on Defense Production

                                   on

                    Comments on the National Stockpile

      Mr. Chairman and Members of the Committee:

           You asked for our views on the recently announced policy

      changes for the Strategic and Critical Materials Stockpile.

      My comments deal with the stockpile policy change in the

      context of overall U.S. materials policy questions. I will

      convey our general observations on materials problems; briefly

      discuss the current and previous changes in stockpile

      assumptions and--present our observations on the new

      policy change.

           In 1973-74, the United States was beset with increased

     -ene-cgy costs, materials shortages, rising inflation, and

     increasing dependency on foreign sources for materials

     needs. The Government resorted to imposing export

     controls to protect the domestic economy against shortages

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