3- But the most spectacular change of all has been in Japan which drew its 1950 supplies largely from Malaya and the Philippines. By 1962 imports were up 1500% and by 1970 are scheduled to be at 32 times the 1950 rate. Today Japan is our best customer from our mine in Peru and it draws ore from Chile, Canada, the U. S., India, Korea, South Africa, as well as increased quantities from its traditional sources. In the next decade Australia will become a major supplier, and four of us in this room are associated with competing enterprises attempting to enter this market with mines in Australia. In developing foreign sources of iron ore the U, S. industry has largely followed a different course than have Japan or Europe, The U. S. steel companies invested their own funds in overseas mining developments while the Japanese and the Europeans for the most part have provided independent mines with contractual commitments against which they could arrange financing. As the U. S. captive mines came into operation they not only largely displaced independent merchant producers in the U. S. market, but in some cases went into competition with them in the European or Japanese markets. This left the independent little choice but to seek aggressively to sell his product where he could. This reaching far afield for iron ore supplies has been made possible by the revolution in ocean transportation - the development of the large specialized ore or ore-and-oil carrier - which has cut transportation costs tremendously. When we started in Peru 10 years ago, we recognized that we had to get control of our ocean transportation