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Machine-read from the scan, so expect some errors. Lines that couldn’t be read are left out.
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THE BRUSH BERYLLIUM COMPANY General Delmar T. Crowson Director, Division of Military Application Dear General Crowson WITHOUT EMCUATTAUlMairS About a year ago we became concerned about indications we had that Oak Ridge was engaging in beryllium development work in Competition with private industry* We and others in the industry wrote to the AEG in protest and a committee •headed up by Mr. C. C. Ohlke was appointed by the General Manager to look into the Since that time we have been informally told by the Oak Ridge Operations Offiea and Union Carbide people that Oak Ridge has no intention of competing with Industry by in-house activities. By letter of November 16, 1965, Mr* Ohlke confirmed this Information and further stated the AEG Intent to continue procuring its beryllium requirements from industry to the maximum extent pos* At the same time that we received this letter we were being informed by DowRocky Flats and the Albuquerque Operations Office that Dow had developed a process for making part of their beryllium requirements in-house using the AEG inventory of scrap and were working on the extentlon of this in-house effort to all their beryllium requirements. Since Dow is the largest AEG customer of the beryllium Industry and one of the largest of all custesters, . this proposed course of action would be severely damaging to an already de We have been told this decision is not dictated by any technological advantages in the application but is based entirely on the assumed cost savings to be realized. Further, we have been told that these figures are based on the use of incremental costing of direct material and labor, on the assumption the fixed overhead of existing facilities is being Incurred anyway and need not therefore be Included. Attached is a copy of our reply to Mr. Ohlke*s letter pointing out to him the inconsistency of the policies described by him with the course of action proposed by Dow and Albuquerque. In view of the past commitments of the AEG to the beryllium Industry, the announced policies of the Federal Government and the AEG against unfairly cosh petlng with private Industry and the damaging effects of this course of action on an Industry essential to missile, aerospace, nuclear and other vital defense
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General Delmar T. Croveon - 2 December 20, 1965 programs, we respectfully request you to reverse the decision of Dow to provide Its beryllium requirements in-house, and to allow Industry to continue to furnish these parts by competitive bidding as In the past. If there Is any question about the necessity or urgency of this request, we will be happy to discuss the matter with you personally. THE BRUSH BERYLLIUM COMPANY