ASP compromise worries SOCMA - C&EN Global Enterprise (ACS

Nov 6, 2010 - Monsanto vice president James D. Mahoney, new president of the Synthetic Organic Chemical Manufacturers Association, has voiced concern ...
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DOD's Themis attracts colleges The Department of Defense is receiving preliminary proposals from universities wishing to share in project Themis' $20.5 million. Themis marks the beginning of a long-range program to coordinate defense-oriented research with the development of new "centers of excellence" among the less favored science and engineering schools. DOD's deadline for receipt of proposals is Feb. 15. Themis is unaffiliated with the University Science Development Program, sometimes referred to as the centers of excellence program. The National Science Foundation has supported that program since May 1965 with $75.1 million. The D O D program is an outgrowth of President Johnson's 1965 request to all federal agencies engaged in research and development. "Our policies and attitudes in regard to science cannot satisfactorily be related solely to achievement of goals and ends we set for our research. We must," the President said, "devote ourselves purposefully to developing and diffusing— throughout the nation—a strong and solid scientific capability, especially in our many centers of advanced education." In response to the President's request, Defense formulated its Themis program, carrying a $20.5 million budget for fiscal 1967. Approved by Congress last year (C&EN, Nov. 7, 1966, page 61), the money will be awarded by September to no more than 50 universities during the first year. Each program director will be a senior faculty member, appointed by the university administration. He will be responsible to the university for developing a research program with sound educational value. However,

Department of Defense specifies problems of mutual interest to universities Detection of small targets Underwater acoustic detection Laser technology Automatic aircraft control Advanced explosives High-energy propellants Computer networks Deep-sea engineering High-velocity penetration Survival of man at sea Infectious and communicable diseases Environmental medicine 14 C&EN JAN. 23, 1967

he will also be responsible to D O D for effectively relating the research to defense needs. The success of each program will be evaluated regularly by D O D to determine if the work is contributing to defense needs. If not, the school will be phased out of the program during the following two years. If the school satisfies DOD, it will continue to receive funds, advanced for the following three years. Full operating costs would be given for the first year, two thirds for the second year, and one third for the third year. DOD wishes to support only those programs that contribute to the longrange educational goals of the universities; it also wishes to explore fields where mutual interests lie. In doing so, Director of Defense Research and Engineering John S. Foster, Jr., believes project Themis will become part of a growing national program of research that will strengthen and mature the capabilities of the schools.

ASP compromise worries SOCMA Monsanto vice president James D. Mahoney, new president of the Synthetic Organic Chemical Manufacturers Association, has voiced concern that U.S. tariff negotiators in Geneva will accept a compromise that will jeopardize the chemical industry's international trade surplus. At a press briefing in New York City, Mr. Mahoney, who heads Monsanto's textile division, said that despite a massive export effort by the U.S. chemical industry, the trade balance in chemicals shows signs of eroding. Imports last year were increasing at a rate more than twice as fast as exports, he said. "It is important to keep in mind that this surplus is a vital ingredient in our country's struggle to lick its continuing balance of payments problem. Yet, even the most optimistic experts doubt our chemical exports can be increased sufficiently in 1967 to offset the anticipated rise in chemical imports, which are expected to total substantially above $1 billion in the coming year," he said. According to Commerce Department forecasts, Mr. Mahoney's fears seem to be well founded. Chemical imports in 1966 totaled $970 million, a 25% gain over 1965. The Commerce Department expects a similar increase in 1967, to $1.2 billion. Exports, on the other hand, came to about $2.64 billion in 1966—a 10% gain over the 1965 total. This year, Commerce officials expect a similar gain in exports, to $2.85 billion. Mr. Mahoney's particular concern is that the American Selling Price system of setting duties on certain organic

SOCMA's Mahoney Trade surplus, 30,000 jobs at stake chemicals (benzenoids) may be scrapped. The ASP controversy has threatened to cause the collapse of the trade talks. Even now, as the talks near their end, it is not clear what the outcome will be. Again, Commerce Department figures illustrate Mr. Mahoney's point. In 1966, benzenoid imports amounted to $66.7 million, 6.9% of total chemical imports and 20% greater than the 1965 level. This year imports will probably jump 10% to $73 million and account for 6 . 1 % of total chemical imports. Exports, meanwhile, are dropping. From their peak of $156.5 million in 1965, benzenoid exports slipped to $155 million in 1966 (5.9% of total chemical exports). Commerce expects a 3 % drop in 1967 to $150 million, 5.3% of total chemical exports. Thus, benzenoid imports have been rising and exports falling. "Visualize what imports will be," said Mr. Mahoney, "if the protection on most benzenoids is sharply reduced through elimination of ASP." SOCMA claims that elimination of ASP will threaten the jobs of 30,000 employees of benzenoid producing companies. This point of view is widely supported by Congress and labor. The negotiators in Geneva are now trying to reach a settlement on a separate ASP package. Such an agreement would have to be approved by Congress and would not interfere with negotiations on other chemicals and industrial goods. Whether Congress would agree to scrapping ASP would depend on what the U.S. got in return (C&EN, Dec. 26, 1966, page 2 6 ) . Congress probably would be most amenable to a quid pro quo that involved chemical concession for chemical concession. But trading ASP for concessions in unrelated fields cannot be barred as a possibility.