NOTICES

DEPARTMENT OF COMMERCE

International Trade Administration

[C-122-815]

Preliminary Affirmative Countervailing Duty Determination: Pure and Alloy

Magnesium From Canada

Friday, December 6, 1991

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AGENCY: Import Administration, International Trade Administration, Department of
Commerce.

EFFECTIVE DATE: December 6, 1991.

FOR FURTHER INFORMATION CONTACT: Rick Herring or Magd Zalok, Office of
Countervailing Investigations, Import Administration, U.S. Department of
Commerce, room B099, 14th Street and Constitution Avenue, NW., Washington, DC
20230; telephone (202) 377-3530 or 377-4162, respectively.

Preliminary Determination

Case History

 Since the publication of the notice of initiation in the Federal Register (56
FR 49747, October 1, 1991), the following events have occurred.  On October 4,
1991, we issued a questionnaire to the Government of Canada in Washington, DC,
concerning petitioner's allegations.  At the Government of Canada's request, 


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the due date for the questionnaire was extended until November 12, 1991.  On
October 21, 1991, the United States International Trade Commission (ITC) issued
its preliminary determination that imports of pure and alloy magnesium
(magnesium) from Canada materially injure a U.S. industry.

 On November 12, 1991, we received responses from the Government of Canada, the
Government of Quebec, and two companies: Norsk Hydro Canada Inc. (Norsk Hydro),
and Timminco Limited Inc. (Timminco).  On November 18, 1991, we presented the
Government of Canada, the Government of Quebec, and both companies with
supplemental/deficiency questionnaires.  We received responses to those
questionnaires on November 25, 1991.

 On November 19, 1991, the Government of Canada, the Government of Quebec, Norsk
Hydro, and Timminco challenged petitioner's standing to file the petition and
requested that the Department dismiss the petition and terminate this
investigation.  Because we have received no opposition from any member of the
domestic industry to the petition we have preliminarily determined that the
petition was filed on behalf of the U.S. industry.

 On November 1, 1991, petitioner amended the petition to include magnesium sold
in a granulated form within the scope of the investigation.  On November 18,
1991, two U.S. companies, ESM II, Inc., and Hart Metals, Inc., which grind
magnesium into granules objected to the inclusion of granular magnesium in the
scope of investigation.  On November 19, 1991, Timminco requested that we
determine magnesium and granular magnesium to be separate classes or kinds of
merchandise.  On November 19, 1991, Norsk Hydro requested that alloy magnesium
billet used for extrusion purposes be excluded from the scope of investigation. 
On November 22, 1991, the Government of Canada objected to petitioner's
amendment to include granular magnesium within the scope of investigation and
stated that granular magnesium is distinct from magnesium ingots and slabs.

Scope of Investigation

 The products covered by this investigation are pure and alloy magnesium from
Canada.  Pure unwrought magnesium contains at least 99.8 percent magnesium by
weight and is sold in various slab and ingot forms and sizes.  Magnesium alloys
contain less than 99.8 percent magnesium by weight, with magnesium being the
largest metallic element in the alloy by weight.  Pure and alloy magnesium are
currently provided for in subheadings 8104.11.0000 and 8104.19.0000,
respectively, of the Harmonized Tariff Schedule (HTS).  Excluded from the scope
of investigation is secondary magnesium and magnesium alloys which contain 70
percent or less of magnesium by weight.  Although the HTS subheadings are
provided for convenience and customs purposes, our written description of the
scope of this proceeding is dispositive.

 As mentioned in the Case History section of this notice, several questions have
been raised with respect to the proper scope of this investigation.  We have not
had a sufficient amount of time to solicit and evaluate information regarding
these questions.  All the scope issues will be addressed in the final
determination.

Analysis of Programs

 Consistent with our practice in preliminary determinations, when a response to
an allegation denies the existence of a program, receipt of benefits under a
program, or eligibility of a company or industry under a program, and the
Department has not persuasive evidence showing that the response is incorrect,
we accept the response for purposes of the preliminary determination.  However,
all such responses are subject to verification.  If the response cannot be
supported at verification, and the program is otherwise countervailable, the
program will be considered a subsidy in the final determination.

 During the review period, Norsk Hydro made sales of magnesium produced by its
parent company (Norsk Hydro a.s) in Norway.  In order to measure the subsidy
conferred upon Norsk Hydro, we deducted the value of the Norwegian merchandise
from Norsk Hydro's total sales value.  Since the subsidies provided to Norsk
Hydro confer benefits on the production of merchandise, we allocated the
subsidies only over the value of merchandise manufactured in Canada.

 For purposes of this preliminary determination, the period for which we are
measuring subsidies (the period of investigation) is calendar year 1990, which
corresponds to the fiscal year of both respondents.

 Because there is a significant differential in the estimated net subsidy
calculated for both companies, we have preliminarily assigned individual company
rates for Norsk Hydro and Timminco pursuant to 19 CFR 355.15(a)(2)(ii)(1991). 
Based upon our analysis of the petition and the responses to our questionnaires,
we preliminarily determine the following:

A. Programs Preliminarily Determined To Be Countervailable

 We preliminarily determine that subsidies are being provided to manufacturers,
producers, or exporters in Canada of magnesium under the following programs:

The Canada-Quebec Subsidiary Agreement on Industrial Development. Under this
Subsidiary Agreement, the Governments of Canada and Quebec established a program
to provide financial assistance to companies to cover the cost of feasibility
studies related to major industrial projects.  This Subsidiary Agreement was
implemented under the 1984 Canada-Quebec Economic and Regional Development
Agreement (ERDA).  ERDAs provide the legal basis for various departments of the
federal and provincial governments to cooperate in the establishment of economic
development programs. Subsidiary agreements, like the Subsidiary Agreement on
Industrial Development, establish programs, delineate administrative procedures
and set up the relative funding commitments of the federal and provincial
governments.


 To qualify for funding under this program, the project to be studied must
involve the establishment, expansion or modernization of a manufacturing or
advanced processing facility.  Maximum funding is 75 percent of the actual cost
of the study.  This Subsidiary Agreement was signed by both governments on
January 23, 1985 and will terminate on March 31, 1992.  The last date for
authorizing a project under this Agreement was March 31, 1990.

 Under this program, a grant was provided to Norsk Hydro a.s, the parent company
of Norsk Hydro Canada.  The purpose of this grant was to permit Norsk Hydro a.s
to undertake a feasibility study.  The total amount of the funding provided
under this program was split equally between the Governments of Canada and
Quebec.  A condition of the grant was that it was to be repaid if the company
commenced operations in Quebec.

 We preliminarily determine that the funds provided by the Government of Canada
under this Subsidiary Agreement are countervailable because assistance under
this Agreement is limited to companies located in a particular region of Canada
(i.e., the Province of Quebec).  We also preliminarily determine that the funds
provided by the Government of Quebec are countervailable because a
disproportionate share of the funds 


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under this Subsidiary Agreement was provided to one company, Norsk Hydro.

 Since the repayment of this grant was contingent on the commencement of
business operations in Quebec, and since Norsk Hydro did so, we are treating the
grant as an interest-free, short-term loan which can be rolled over year- to-year.  To calculate the benefit provided to Norsk Hydro under this program, we
calculated the amount of interest which should have been paid based on the
number of days this "loan" was outstanding during the period of investigation.
We used the national average short-term interest rate for 1990, as provided by
the Government of Canada, to calculate the amount of interest that would have
been paid had this grant been in the form of a short-term commercial loan.  We
then divided this amount by Norsk Hydro's total sales of Canadian-produced
merchandise for the review period and calculated an estimated net subsidy of
0.10 percent ad valorem for the company.  Timminco did not receive any benefits
from this program.

 2. Government funding of the Institute of Magnesium Technology (IMT) under the
Canada-Quebec Subsidiary Agreement on Scientific and Technological Development.
The IMT was incorporated in 1989, as a private, non-profit company.  The
creation of the IMT was a joint effort by the Governments of Canada and Quebec
and the magnesium industry, but the establishment of a magnesium plant in Quebec
by Norsk Hydro was the driving force which led to the creation of the Institute. 
Its purpose is both to promote the development of the magnesium processing
industry in Quebec and Canada, and to promote the growth of world markets for
magnesium products.  According to the response, the IMT provides magnesium
processors with the expertise and equipment necessary for development work, as
well as for the improvement of products and processes.  The IMT also offers
development of prototypes and pre-production trials.

 The IMT aims to be self-sustaining by 1995, through membership fees and
research contracts, but initial funding was provided by the Governments of
Canada and Quebec under the Canada-Quebec Subsidiary Agreement on Scientific and
Technological Development.  Under this Subsidiary Agreement, both governments
provided funds for the construction of a research laboratory and the purchase of
equipment for the IMT. In addition, both governments provided funds to the IMT
to help it launch its research program.

 The IMT provides two types of research to its members and non-members,
precompetitive and contract projects.  There are currently eleven precompetitive
research projects being undertaken by the IMT. According to the response, the
results of this type of research are presented in scientific papers and
disseminated publicly at scientific meetings or through scientific and technical
publications.  The results of contract research are kept confidential and are
only provided to the company which contracted for the research.

 We preliminarily determine that funding provided by the Government of Canada to
the IMT under the Subsidiary Agreement on Scientific and Technological
Development is specific because assistance under this Subsidiary Agreement is
limited to companies located in a particular region of Canada (i.e., the
Province of Quebec).  In addition, we preliminarily determine that the funding
provided by the Government of Quebec to the IMT is specific because its
assistance under this Subsidiary Agreement was provided to only three
recipients, and was, therefore, limited to a group of enterprises or industries.

 Notwithstanding our determination that the assistance provided by the
Government of Canada and the Government of Quebec is limited, we determine
preliminarily that the funding for the precompetitive research is not
countervailable because the research results are made publicly available. (See,
e.g., Final Affirmation Countervailing Duty Determination; Fresh and Chilled
Atlantic Salmon from Norway, 56 FR 7678, February 25, 1991.)  However, because
the results of the contract research are not made publicly available, we
preliminarily determine that this aspect of the program provides a
countervailable benefit.

 To calculate the benefit, we first prorated the amount of the government
funding used for the construction of the research laboratory and the purchase of
equipment over the number of years from the year the funds were received until
1995. (The funds were prorated in this manner since the IMT is to be self-supporting by 1995.)  The amount prorated to the period of review was then
allocated to each of the respondent's based on the percentage of IMT's contract
research budget represented by contracts with Norsk Hydro and Timminco.  We then
divided that amount by each company's total sales of Canadian-manufactured
products for the review period and calculated an estimated net subsidy of 0.20
percent ad valorem for Norsk Hydro and 0.04 percent ad valorem for Timminco.


3. Preferential electric rates under the Risk and Profit Sharing Program. The
Risk and Profit Sharing Program is administered by the provincially-owned power
company, Hydro-Quebec.  Under this program, long-term contracts are signed
between Hydro-Quebec and its industrial customers for the provision of
electricity.  A portion of the rate to be charged under these contracts is based
either on the price of the customer's products or the company's profit.
Therefore, the rate of electricity varies from year-to-year because of
fluctuations in a company's prices or profits.  According to the response of the
Government of Quebec, the contracts are negotiated with the expectation that
over the term of the contract Hydro-Quebec will earn the full projected revenue
that would have been generated had the standard industrial rate, Rate L, been
applied to the customer's electricity purchases.

 According to Hydro-Quebec's Development Plan, the main objective of the Risk
and Profit Sharing Program is to strengthen and develop Quebec's industrial
sector.  Industrial customers which meet the following criteria are eligible to
participate in the program:

 - A capital intensive firm;

 - A firm requiring a major power demand;

 - A firm where energy costs represent a major factor in production costs; and

 - A firm for which energy rates and availability of electricity in the long
term constitute a major factor in the choice of location (in Quebec or elsewhere
in the world).

 The first contract with features of Risk and Profit Sharing as signed in 1984,
although the program was not formalized until 1985. All the remaining contracts
were negotiated between 1985 and 1989. A moratorium was placed on this program
in 1990 so that a wide-ranging assessment of the program could be undertaken.
There were 14 contracts under this program during the period of review. One of
the contracts was with Norsk Hydro.  Timminco had a contract with Hydro Quebec
under this program for a plant producing ferro-silicon, however, the contract
was terminated with the closing of the plant in April 1991.

 To determine whether the variable-rate contracts under the Risk and Profit
Sharing Program are countervailable, we compared the number of companies with
contracts under the program to the number of industrial users of electricity in
Quebec.  During the review period, there were 294 companies in Quebec paying
Rate L, the standard industrial rate for electricity.  The weighted*63930 -
average electricity rate of companies using Rate L was 3.51 Canadian cents per
kilowatt hour.

 We preliminarily determine the Risk and Profit Sharing Program to be
countervailable since benefits under this program are limited to a specific
enterprise or industry, or a group of enterprises or industries.  We base this
preliminary determination on the fact that there are only 14 companies with
contracts under this program, while there are over 300 industrial users of
electricity in Quebec.

 To calculate the benefit under this program, we took the difference between the
rate paid by Norsk Hydro for electricity under its Risk and Profit Sharing
contract during the review period and the weighted-average rate paid by other
industrial companies during the review period.  We then multiplied that
difference by the number of kilowatt hours used by Norsk Hydro during the review
period to calculate the savings to the company under the program. We then
divided the savings by Norsk Hydro's total sales of Canadian-manufactured
products during the review period and calculated an estimated net subsidy of
24.81 percent ad valorem. Timminco did not use this program with respect to its
production of magnesium, therefore, it received no benefits under this program.


4. Exemption from payment of water bills. Under an agreement signed between
Norsk Hydro and the provincially-owned water company, the company is exempt from
paying its water bills.  We preliminarily determine this program to be
countervailable since benefits are limited to a specific enterprise or industry,
or a group of enterprises or industries.

 To calculate the benefit under this program, we divided the sum of the unpaid
water bills for the review period by Norsk Hydro's total sales of Canadian-
manufactured products for the review period.  On this basis, we calculated an
estimated subsidy of 1.46 percent ad valorem for Norsk Hydro.  Timminco did not
receive any benefits from this program.

5. Article 7 grants from the Quebec Industrial Development Corporation. The
Industrial Development Corporation (Societe de Developpement Industriel du
Quebec) (SDI), is a crown corporation which acts as an investment corporation
and administers development programs on behalf of the Government of Quebec.
Established in 1971 under the Quebec Industrial Development Act, the program has
been amended several times.  Funding for SDI is obtained through the National
Assembly, participation in financial markets through the sale of notes, bonds
and other securities, and by an endowment established by the Government of
Quebec at the time of SDI's formation.

 According to the response, assistance under article 7 is not restricted to any
specific enterprise or industry.  However, grants that exceed 2.5 million
dollars require the approval of the Council of Ministers.  To be approved for a
grant of this size, the Council of Ministers must determine that the project to
be financed is of special economic importance and value to the province.  Norsk
Hydro received a grant under this program which was approved by the Council of
Ministers.

 To determine whether the program is countervailable, we reviewed the number of
recipients which received benefits of a similar nature as that received by Norsk
Hydro under article 7 of SDI. Based on this review, certain companies, including
Norsk Hydro, received a disproportionate share of assistance under the program. 
Therefore, we preliminarily determine the program, with respect to the
assistance provided to Norsk Hydro, to be countervailable because the benefits
are limited to a group of enterprises or industries.

 Our policy with respect to grants is to (1) expense recurring benefits to the
year of receipt, and (2) allocate nonrecurring benefits over the average useful
life of assets in the industry, unless the sum of grants provided under a
particular program is less than 0.5 percent of a firm's total or export sales
(depending on whether the program is a domestic or export subsidy). (See, e.g.,
Final Affirmation Countervailing Duty Determination; Fresh and Chilled Atlantic
Salmon from Norway, 56 FR 7678, February 25, 1991.)  We have preliminarily
determined that grants provided under this program are nonrecurring because a
firm does not receive grants under this program year-after-year.

 We calculated the benefit from the grant received by Norsk Hydro using the
company's cost for long-term, fixed rate debt as a discount rate and our
declining balance methodology as described in the Subsidies Appendix attached to
the notice of Cold-Rolled Carbon Steel Flat-Rolled Products from Argentina:
Final Affirmative Countervailing Duty Determination and Countervailing Duty
Order (49 FR 18006, April 26, 1984), and used in prior investigations (see,
e.g., Final Affirmative Countervailing Duty Determination; Oil Country Tubular
Good From Canada, 51 FR 15037, April 22, 1986).  The average useful life of
assets in the magnesium industry is 14 years.  Since the amount of the SDI grant
was greater than 0.5 percent of Norsk Hydro's total sales, we allocated the
grant over the 14-year period using our declining balance methodology.  We then
divided that portion of the grant's benefit allocated to the review period by
Norsk Hydro's total sales of Canadian-manufactured products and calculated an
estimated net subsidy of 6.28 percent ad valorem for the company.  Timminco did
not receive any benefits from this program.

B. Program Determined Not To Be Countervailable

 We preliminarily determine that subsidies are not being provided to
manufacturers, producers, or exporters in Canada of magnesium under the
following program:

6.  Manpower Training Program

 This program is administered by the Quebec Ministry for Manpower and Income
Security.  The Province of Quebec offers this program to individuals for
manpower training and retraining.  To be eligible for training under this
program, an individual has to be more than 16 years old, either employed or on
the job market, knowledgeable of the area in which training was chosen, and
either employed or seeking employment directly related to the training.
According to the response of the Government of Quebec, there are no limitations
of any kind pertaining to the enterprise or industrial sector of an employee or
potential employee.  During the review period, Norsk Hydro received payments
under this program for teaching materials and teacher services used in the
training of employees and non-employees of the company.

 Since the program is offered to all individuals employed or seeking employment
within any industrial sector in Quebec, we preliminarily determine that this
program is not countervailable.

C. Programs Preliminarily Determined Not To Be Used

 We preliminarily determine that producers or exporters in Canada of the subject
merchandise did not use, or receive benefits under the following programs during
the review period:

 1. St. Lawrence River Environmental Technology Development Program (ETDP). This
federal program was established under the authority of section 5.1 of the
Department of Regional Industrial Expansion Act. The program is administered by
the Department of Industry, Science and Technology.  The ETDP is a five-year
program. Its purpose is to reduce 


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industrial pollution of the St. Lawrence River and to develop and improve
pollution abatement technologies applicable to other Canadian or international
waters.  The ETDP provides contributions of up to 50 percent, to a maximum
amount of two million dollars, of the eligible costs of a qualifying project.

2. Program for Export Market Development (PEMD). This federal program was
created in 1971 and restructured in 1987 to include the former Promotional
Projects Program.  Support provided under PEMD is either industry-initiated or
government-initiated.  Under the industry-initiated component of the program,
interest-free loans are provided to companies requesting assistance in export
market development.  Under the government-initiated component, the Government of
Canada organizes and sponsors trade fairs and missions.

 The interest-free PEMD loans are repaid over a period of years from revenues
earned on sales to the export market that was the object of the promotional
activities sponsored by PEMD. If no sales or only insufficient sales are made to
the export market in question, then the outstanding loan will be forgiven.

3. The Export Development Corporation (EDC). This federal program was listed as
the "Export Development Program" in our initiation notice (56 FR 49747, October
1, 1991).  The EDC was created to facilitate and develop Canada's export trade
under the Canadian Export Development Act. The EDC pursues its purpose by
providing insurance, loan guarantees, and financing.  The EDC provides export
financing to foreign buyers of Canadian goods and services. Funds are then
disbursed directly by the EDC to the Canadian exporter on behalf of the foreign
buyer.

4. Canada-Quebec Subsidiary Agreement on the economic development of the Regions
of Quebec. We listed this program as the "Quebec Resource Regions (Outside the
Central Regions)" in our initiation notice (56 FR 49747, October 1, 1991).  This
Subsidiary Agreement was signed by the Governments of Canada and Quebec in 1988. 
This Subsidiary Agreement divided Quebec into five "Resource Regions" and eleven
"Central Regions".  Assistance under this Subsidiary Agreement is funded jointly
by both governments and is centered on five major areas of activity within the
Resource Regions.  These areas cover business development, research and
technological development, natural resource development, economic infrastructure
reinforcement, and human resource development.

5. Major Opportunities to Stimulate Technology Programs. This program and the
remaining programs listed in this section are administered and funded by the
Government of Quebec.  Under this program, the Government of Quebec offers
research and development funding through the Technology Development Fund.
Financial benefits are available covering up to 70 percent of the recipient's
expenditures and may be obtained through a combination of a grant, tax savings
on non-research and development expenditures, and special tax credits on
research and development expenditures.

 6. Development Assistance Program. This program is administered by SDI. Under
this program, the SDI provides financial assistance in the form of venture
capital for up to 90 percent of eligible expenditures, repayable through
royalties on sales or minority interest in the capital stock of the company.
This assistance is offered for the development of innovative projects prior to
their production and commercialization.

7. Industrial Feasibility Study Assistance Program. This program is administered
by the Quebec Ministry of Industry, Trade and Technology (MICT). Under this
program, MICT provides financial assistance to cover up to 50 percent of
eligible expenditures for feasibility studies of industrial projects to be
carried out in the province of Quebec.

 8. Export Promotion Assistance Program. Under this program, Aide a la Promotion
des Exportations (APEX), the Government of Quebec shares certain costs related
to the penetration of new foreign markets.  A company's project must increase
exports with at least 60 percent Quebec content to be eligible for assistance
under this program.  Assistance can be provided for: (1) Individual missions to
develop new markets or the negotiation of industrial agreements; (2)
participation in trade fairs or exhibits outside of Canada; (3) adapting
products to new export markets; (4) preparation of bids with the assistance of
consultants; (5) preparation of marketing studies and strategies to penetrate
foreign markets; and (6) hiring of an expert in international marketing to
develop the firm's exports.

9. Creation of Scientific Jobs in Industries. This program is administered by
the Quebec Ministry of Industry, Trade and Technology.  The purpose of this
program is to encourage companies to create new scientific and technical staff
positions in the fields of industrial research and development, quality control,
production engineering, and technology transfer.  For each new job created, the
company will receive a grant equal to 60 percent of the employee's base salary
for the first year and 20 percent in the second year.

10. Business Investment Assistance Program. This program is administered by the
SDI. Under this program, the Government of Quebec offers financial assistance in
the form of unsecured capital venture loans for up to ten years and for up to 35
percent of the eligible expenditures in machinery and equipment.  In addition,
certain projects may have the interest costs absorbed by the SDI for part of the
term of the loan, depending on the economic priorities of the province.  The
assistance is offered to manufacturing firms active in data processing, private
research, and recycling that wish to carry out projects using high technology to
increase productivity.  In addition, to qualify for assistance under this
program, there must be markets outside of Quebec for the goods produced.

11. Business Financing Program. This program is administered by the SDI. Under
this program, the Government of Quebec offers loan guarantees for a maximum of
15 years, covering the repayment of losses incurred by the lender up to a
maximum of 80 percent of the initial amount of the loan.  The assistance is
offered to manufacturing firms active in data processing, private research, and
recycling that have projects whose profitability outlook is above average but
cannot obtain the required financing from financial institutions.

12. Research and Innovation Activities Program. This program is administered by
the SDI. Under this program, the Government of Quebec offers financial
assistance in the form of a venture capital loans for a period not exceeding
eight years.  In addition, certain projects may have the interest costs absorbed
by the SDI for part of the term of the loan, depending on the economic
priorities of the province.

13. Export Assistance Program. This program is administered by the SDI. Under
this program, the Government of Quebec offers financial assistance to promote
the export of Quebec products.  This program offers loans for up to 50 percent
of the eligible expenses for the opening of new export markets or the
introduction of new products abroad; export financing; and venture capital for
the creation of marketing consortiums outside Quebec for the products or
services of Quebec industries.

--- page 63932 --

14. Energy Technologies Development Program.  This program is administered by
the Quebec Ministry of Energy Resources.  This programs grants financial
assistance to specialists wanting to carry out research, development, and
demonstration projects centered on the use and conservation of energy resources.

15. Financial Assistance Program for Research, Formation and for the Improvement
of the Recycling Industry. This program is administered by the Quebec Ministry
of Environment.  The program provides for the payment of grants to help the
recycling industry in Quebec.  It includes a development component, a research
component, and a demonstration component.

16. Transportation Research and Development Assistance Program. This program is
administered by the Quebec Ministry of Transport. The purpose of this program is
to increase the efficiency and performance of transportation systems; develop
transportation knowledge; make Quebec an exporter of transportation know-how and
equipment; and to support research and development in the fields of
transportation management and operations.  Under the program, the Government of
Quebec provides grants to cover the costs of research and development programs
in the transportation field.

Verification

 In accordance with section 776(b) of the Act, we will verify the information
used in making our final determination.

Suspension of Liquidation

 In accordance with section 703(d) of the Act, we are directing the U.S. Customs
Service to suspend liquidation of all entries of pure and alloy magnesium from
Canada which are entered, or withdrawn from warehouse, for consumption, on after
the date of publication of this notice in the Federal Register and to require a
cash deposit or bond for all entries of this merchandise equal to 32.85 percent
ad valorem for magnesium produced and exported by Norsk Hydro and all other
manufacturers, producers and exporters in Canada of pure and alloy magnesium,
except for Timminco which, because its estimated net subsidy is de minimis, is
exempt from the suspension of liquidation.  This suspension will remain in
effect until further notice.

ITC Notification

 In accordance with section 703(f) of the Act, we will notify the ITC of our
determination.  In addition, we are making available to the ITC all
nonprivileged and nonproprietary information relating to this investigation. We
will allow the ITC access to all privileged and business proprietary information
in our files provided the ITC confirms that it will not disclose such
information, either publicly or under an administrative protective order,
without the written consent of the Deputy Assistant Secretary for
Investigations, Import Administration.

 Our final determination is scheduled for February 12, 1992.  If our final
determination is affirmative, the ITC will make its final determination within
45 days after the Department's final determination.

Public Comment

 In accordance with 19 CFR 355.38, we will hold a public hearing, to afford
interested parties an opportunity to comment on this preliminary determination
on January 17, 1992 at 10 a.m. at the U.S. Department of Commerce, room 3708,
14th Street and Constitution Avenue, NW., Washington, DC. Individuals who wish
to request a hearing must submit such a request within ten days of the
publication of this notice in the Federal Register to the Assistant Secretary
for Import Administration, U.S. Department of Commerce, room B099, 14th Street
and Constitution Avenue, NW., Washington, DC 20230.  Parties should confirm by
telephone the time, date, and place of the hearing 48 hours before the scheduled
time.

 Requests should contain: (1) The party's name, address, and telephone number; 
(2) the number of participants; (3) the reason for attending; and (4) a list of
the issues to be discussed.  In addition, ten copies of the business proprietary
version and five copies of the nonproprietary version of the case briefs must be
submitted to the Assistant Secretary no later than January 10, 1992.  Ten copies
of the business proprietary version and five copies of the nonproprietary
version of the rebuttal briefs must be submitted to the Assistant Secretary no
later than January 15, 1992.  If the case brief and rebuttal brief contain only
nonproprietary information, then ten copies of each respective brief must be
submitted to the Department.  An interested party may make an affirmative
presentation only on arguments included in that party's case or rebuttal briefs. 
Written arguments should be submitted in accordance with s 355.38 of the
Commerce Department's regulations and will be considered if received within the
time limits specified above.

 This determination is published pursuant to section 703(f) of the Act (19
U.S.C. 1671b(f)) and 19 CFR 355.15.

 Dated: November 29, 1991.

Francis J. Sailer,
Acting Assistant Secretary for Import Administration.
[FR Doc. 91-29273 Filed 12-5-91; 8:45 am]

BILLING CODE 3510-DS-M