THE ECONOMIC IMPORTANCE OF THE RESOURCES OF SELECTED AREAS TO THE US AND OTHER FREE WORLD COUNTRIES

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• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000300020018-4
• Release Decision: RIFPUB
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• Document Page Count: 30
• Document Creation Date: December 9, 2016
• Document Release Date: August 23, 2000
• Sequence Number: 18
• Publication Date: September 30, 1953
• Content Type: IR

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SECRET
SECURITY INFORMATION
ECONOMIC INTELLIGENCE REPORT
THE ECONOMIC IMPORTANCE OF THE
RESOURCES OF SELECTED AREAS TO THE US
AND OTHER FREE WORLD COUNTRIES
EIC-R-5
30 September 1953
Prepared Jointly by US Intelligence Agencies
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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THE ECONOMIC IMPORTANCE
OF THE RESOURCES OF SELECTED AREAS
TO THE US AND OTHER FREE WORLD COUNTRIES
Prepared Jointly by US Intelligence Agencies
ECONOMIC INTELLIGENCE COMMITTEE
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Reproduction of this document in whole or in part is
prohibited except with permission of the issuing office.
This security information is released under the condition that a
record be kept by the recipient of all individuals who are afforded
access to the information contained in the document, and that this
record be made available to the Department of Defense if requested.
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Economic Intelligence Committee members from CIA, the Joint
Chiefs of Staff, and the Departments of State, Defense, the Army,
the Navy, the Air Force, Interior, and Agriculture have reviewed and
concurred in this report. It is cautioned, however, that this re-
port must be read with due consideration to its original purpose as
outlined below.
In the last quarter of 1951 the Army Intelligence Member of the
IAC proposed that a series of National Intelligence Estimates dealing
with the loss of important economic resources in five selected areas
be undertaken. In November 1951 the Board of National Estimates
prepared terms of reference for NIE-56: "Likelihood of Loss of Im-
portant Economic Resources in Selected Foreign Areas." Responsibility
for preparing the economic contributions to the estimate was assigned
to the Economic Intelligence Committee.
On 24 April 1952 the EIC contribution covering the first three
areas, Near and Middle East, South Asia, and the Far East, was
transmitted to ONE from the EIC with the notation that EIC had con-
curred in these contributions,. though only for the purpose of sup-
porting the proposed National Estimate.
In the last quarter of 1952, Army Intelligence reviewed its
original request for these National Intelligence Estimates and
recommended to the IAC that NIE-56 be canceled provided that the
EIC contributions would be published as completed studies. This
report is therefore issued as a summary of the EIC contributions to
the economic phase in lieu of the canceled NIE.
This report provides information.about the important commodities
of each of the five areas and indicates by rough order of magnitude
the importance of each area's commodities to the rest of the Free
World and to the US. The data for the report have been drawn from
the EIC contribution and are considered worthy of preservation for
possible use in other studies. No attempt has been made to make the
indication-of-importance estimates more current than the data in the
original contributions would permit. The original contribution, which
had been oriented in another direction, did not contain several of
the figures now listed under the heading "Percent of US Supply Coming
from This Area" in the tables. As many figures as were available
have therefore been added to complete this phase of the report.
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An additional number of individual sector papers were prepared
as contributions to this summary report. These sector papers are
working drafts which have never received the complete concurrence of
all members of the EIC Working Group and are therefore not being
issued as part of this report. However, several complete sets of the
sector papers are available in the EIC Secretariat and will be made
available upon request (Code 14+3, Extension 8632). These sector
papers include the following:
1. Economic Importance of Near and Middle East.
2. Statistical Tables for Agricultural Commodities of the
Near and Middle East.
3. Economic Importance of Far East.
4. Economic Importance of South Asia.
5. Statistical Tables for Agricultural Commodities of the
Far East and South Asia.
6. Economic Importance of Africa.
7. Statistical Tables for Agricultural Commodities of Africa.
8. Economic Importance of Latin America.
9. Statistical Tables for Agricultural Commodities of Latin
America.
10. Statistical Tables for Selected Minerals of the Free World.
Users of these working papers should bear in mind that stockpile
data, while useful as basic information, are now outdated and that
the apparent consumption figures for minerals (which do not take into
consideration stock changes) are only useful measures of the order of
magnitude of consumption of these minerals.
An analysis of uranium, its location in the world, and its im-
portance to the Free World and the US was not undertaken in the
original study, because of the security problem which such an
analysis presented.
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CONTENTS
I. Economic Importance of the Resources of the Five
Geographic Areas . . . . . . . . . . . ? ? ?
II. Resources of the Five Geographic Areas
A. Near and Middle East . . . . . . . . . . . . . . . . 1
1. Petroleum . . . . . . . . . . . . . . . . . . . 3
2. Chromite . . . . . . . . . . . . . . . . . . . . 3
3. Extra Long-Staple Cotton . . . . . . . . . . . 4
B. Far East . . . . . . . . ? ? ? ? ? ? ? ? 4
1. Tin . . . . . . . . . . . . . . . . . . . . . . . 4
2. Tungsten . . . . . . . . . . . . . . . . . . . . 7
3. Refractory Grade Chromite . , . . . . . . . . . . 8
4. Rut i le . . . . . . . . . . . . . . . . . . . 8
5. Nickel . . . . . . . . . . . . . . . . . . . . . 8
6, Rubber . . . . . . . . . . . . . . . . . . 8
7. Abaca . . . . . . . . . . . . . . . . . . . . . 9
8. Apparel-Wool . . . . . . . . . . . . . . . . 9
9. Copra and Coconut Oil . . . . . . . . . . . . . . 9
C.. South Asia . . . . . . . . . . . ... . . . . . . . . 10
1. Graphite . . . . . . . . . . . . . . . . . 10
2. Mica . . . . . . . . . . . . . . . . . . . . 10
3. Manganese Ore . . . . . . . . . . . . . . . . . . 12
4. Shellac . . . . . . . . . . . . . . . 12
5. Jute . . . . . . . . . . . . . . . . . . . . . . 12
D. Africa. . . . . . . . . . . . . . . . . . . . . . 13
1. Asbestos . . . . . . . . . . . . . . . . 13
2. Beryl . . . . . . . . . . . . . . . . . . . . 13
3- Chromite . . . . . . . . . . . . . . . . . . . . 16
4. Cobalt . . . . . . . . . . . . . . . . . 16
5. Columbium and Tantalum . . . . . . . . . . . 16
6. Industrial. Dianuonds . . . . . . . . . . . . . . . 17
7. Manganese Ore . . . . . . . . . . . . . . . . . . 17
8. Sisal . . . . . . . .. . . . . . . . . .. . . . . . 17
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E. Latin America . . . . . . . . . . . . . . . . . . . . 17
1. Petroleum . . . . . . . . . . . . . . . . . . . . 18
2. Bauxite . . . . . . . . . . . . . . . . . . . . . 18
3. Beryl . . . . . . . . . . . . . . . . . . . . . . 18
4. Copper . . . . . . . . . . . . . . . . . . . . 21
5. Manganese Ore . . . . . . . . . . . . . . . . 2.1
6. Tin . . . . . . . . . . . . . . . . . . . . . . . 21
7. Tungsten . . . . . . . . . . . . . . . . . . 21
8. Hard Fibers . . . . . . . . . . . . . . . . . . . 22
1. Important Resources in the Near and Middle East . . . . . 2
2. Important Resources in the Far East . . . . . . . . . . . 5
3. Important Resources in South Asia . . . . . . . . . . . . 11
4. Important Resources in Africa . . . . . . . . . . . . . . 14
5. Important Resources in Latin America . . . . . . . . 19
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THE ECONOMIC IMPORTANCE OF THE RESOURCES OF SELECTED AREAS
TO THE US AND OTHER FREE WORLD COUNTRIES*
I. Economic Importance of the Resources of the Five Geographic
Areas.
The five geographic areas discussed in this report -- Near and
Middle East, Far East, South Asia, Africa, and Latin America -- can
be characterized as agrarian rather than industrial regions. Although
a degree of industrialization has developed in several of the nations
within these areas, their primary economic importance stems from
their supplies of raw materials. The most vital raw materials found
in these areas are primarily mineral resources, and, secondarily, a
number of important agricultural commodities.
Tables 1, 2, 3, 4, and 5 indicate, for each area, the important
commodities, their chief sources, a measure of the importance of the
area to the rest of the Free World, and a measure of the importance
of the area to the US. Almost all of the commodities listed for
these areas are on the Munitions Board Stockpile List and are there-
fore considered to be important strategic materials.
II. Resources of the Five Geographic Areas.
A. Near and Middle East.**
The economic importance of the Near and Middle East to the
Free World rests largely on its petroleum production and the metal-
lurgical grade chromite of Turkey. In addition, Egypt's extra long-
staple cotton is important to the UK and other NATO countries, though
it is not indispensable. Other resources of the area which are of
lesser importance to the Free World are manganese, copper, salt,
phosphate rock, opium, rice and other grains, and tobacco. Table 1***
shows the important resources, chief sources, and exports of the area,
and the percent of US supply coming from the Near and Middle East.
* This report contains information available as of 1 August 1952.
** Including Egypt, Iraq, Israel, Jordan, Syria, Lebanon, Saudi
Arabia, Iran, Turkey, Afghanistan, Kuwait, Qatar, Bahrein, Cyprus,
and Aden.
*** Table 1 follows on p. 2.
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Table 1
Important Resources in the Near and Middle East a/
Net Exports of the
Percent of
Area as Percent of
US Supply
Free World
Coming from
Resources b/
Chief Sources
Production l/
/
this Area d/
Petroleum
Saudi Arabia
17 e/
Negligible
Kuwait
Iran
Iraq
Chromite, Metallur-
Turkey
21
20
gical Grade
Cyprus
f/
Negligible
Manganese
Turkey
Egypt
Copper
Turkey
Negligible
Agricultural Resources
Long-Staple Cotton
Egypt
90
g/
Sudan
Opium
Turkey
65
100
Iran
a. Including Egypt, Iraq, Israel, Jordan, Syria, Lebanon, Saudi
Arabia, Iran, Turkey, Afghanistan, Kuwait, Qatar, Bahrein, Cyprus,
and Aden.
b. All commodities in this column, except petroleum, are on the
Munitions Board Stockpile List.
c. The purpose of this column is to indicate, by rough order of
magnitude only, the importance of this area to the rest of the world
for each of the commodities listed. Ideally, this measure would re-
late net exports of the area to net supply of the Free World (exclud-
ing this area) or to consumption of the Free World (excluding this
area). Actually, Free World production figures are used because
(1) they are more readily available, (2) they do not involve spur-
ious computations as in apparent consumption figures, and (3) for
the purposes of order of magnitude in this table, the production
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Table 1
(Continued)
figures are about as useful as the consumption figures. Unless
otherwise noted, the figures relate to 1950.
d. The purpose of this column is also to indicate, by rough order
of magnitude only, the importance of this area to the US supply for
each of the commodities listed.
e. This percent is based on the estimated exports plus bunker fuel
and estimated output for 1952 as given in?the original EIC
contribution.
f. The figure is not available from the original EIC contribution,
but it is probably small.
g. To the extent that the US imports long-staple cotton, Egypt is
probably the major supplier. However, long staples are relatively
unimportant in the US cotton economy.
It was estimated that the Near East would export
93.9 million metric tons of oil and would supply 10.3 million metric
tons of bunkers to ships in 1952. This is 17 percent of the esti-
mated Free World total output for 1952 but is a small part of the
Near East's potential production. The percentage figure assumes
greater importance when it is realized that the Western Hemisphere,
which is the only other large Free World source of petroleum, could
increase output only slightly.
Turkey, which exported 354,000 metric tons of all types
of chromite in 1950, was the Free World's second most important
source as well as the most important source of the metallurgical grade
of chromite. Turkish ore represented about 35 percent of the Free
World's production of metallurgical grade chromite and 32 percent of
the US imports of this grade in 1950. In 1951, Turkey provided
44 percent of the US imports of this grade.
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Extra Long-Staple Cotton.
Although this type of cotton constitutes only about
3 percent of total world cotton production, it is important for a
few specialized uses, such as airplane cloth and high-speed machine
sewing thread. Substitute fibers are not suitable for all uses.
However, the US could produce, at least after some seasons, suf-
ficient long-staple cotton tb meet its own requirements.
B. Far East.*
The Far East, including Oceania, is a major Free World source
of supply for a number of important commodities including tin, tung-
sten, refractory grade chromite, rutile, rubber, abaca, apparel-wool,
copra and coconut oil, cinchona bark, and silk. The most important
of these to the US and the rest of the Free World are tin, refactory
grade chromite, and apparel-wool. Far Eastern nickel, although
quantitatively small, was important because of the severe shortage
of this commodity at the time that the EIC contribution was written.
The UK depends quite heavily on the Far East for supplies of dairy
products and meat. Other materials usually exported from the Far
East include bauxite, metallurgical grade chromite, cadmium, lead,
zinc, shellac, rice, wheat, pepper, tea, palm oil, and sugar.
This group of materials is of lesser importance to the Free World.
Table 2** shows the important resources, chief sources, and exports
of the area, and the percent of US supply coming from the Far
East.
The Far East furnishes more than 100,000 metric tons
annually, or over 60 percent of the Free World supply of new tin.
Other sources, chiefly Bolivia, Belgian Congo, and Nigeria, produced
about 54,000 metric tons in 1951, but little increase can be ex-
pected from these countries through 1954. The largest single use
for tin is in tinplate, which in turn is largely consumed in food-
packing. For example, between 30 and 40 percent of the tin consumed
in the US goes into tinplate. In an emergency, alternative pack-
aging, in part, could be adopted, although it would be somewhat more
* Including Japan, South Korea, Taiwan, the Philippines, mainland
Southeast Asia, Indonesia, Australia, and New Zealand.
F* Table 2 follows on p. 5?
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Important Resources in the Far East a/*
Resources
Chief Sources
Net Exports of the
Area as Percent of
Free World
Production c/
Percent of
US, Supply
Coming from
this Area d/
Natural Resources
Malaya
Indonesia
Thailand
South Korea
37 f/
Burma
Thailand
Nickel
Australia
New Caledonia
3
Negligible
Bauxite
Indonesia
7
15 g/
Chromite, Metal-
New Caledonia
12
20 h/
lur
ical Grade
Phili
ines
g
Chromite, Refrac-
pp
Philippines
40-45
50-65 g/
tor
Grade
y
Lead
Australia
10
i/
Zinc
Australia
9
i/
Rutile
Japan
Australia
63
85 j/
Beryl
Australia
-Negligible
0
Cadmium
Australia
7
i/
Rubber
Japan
Malaya
67 k/
e/
Shellac
Indonesia
Thailand
Thailand
e/
34
Industrial Resources
Indo-China
Machinery
Japan
Negligible
Negligible
Australia
Footnotes for. Table 2 follow on p. 6.
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Table 2
(Continued)
Net Exports of the
Area as Percent of
Percent
US Supply
Resources L/
Chief Sources
Free World
Production E/
Coming from
this Area d/
Agricultural Resources
Abaca
Philippines
85 1/
67
Apparel-Wool
Australia
43 m/
41
Copra and Coconut
New Zealand
Philippines
55-60
100
Oil
Cinchona Bark
Malaya
Indonesia
Indonesia
60-65
75
(Quinine,
Quinadine)
Silk, Raw
Japan
31 n/
-
85
Palm Oil
Indonesia
i/
3
Malaya
a. Including Japan, South Korea, Taiwan, the Philippines, mainland
Southeast Asia, Indonesia, Australia, and New Zealand.
b. All commodities in this column except.rutile, machinery, and
apparel-wool, are on the Munitions Board Stockpile List.
c. The purpose of this column is to indicate, by rough order of
magnitude only, the importance of this area to the rest of the world
for each of the commodities listed. Ideally, this measure would re-
late net exports of the area to new supply of the Free World (ex-
cluding this area) or to consumption of the Free World (excluding
this area). Actually, Free World production figures are used be-
cause (1) they are more readily available, (2) they do not involve
spurious computations as in apparent consumption figures, and (3)
for the purposes of order of magnitude in this table, the production
figures are about as useful as the consumption figures. Unless
otherwise noted, the figures relate to 1950.
d. The purpose of this column is also to indicate, by rough order
of magnitude only, the importance of this area to the US supply for
each of the commodities listed.
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Table 2
(Continued)
e. The figure is not available in the original EIC contribution,
but is probably large.
f. This figure is for 1951.
g. 1949-51 average figure.
h. 1949-50 average figure.
i. The figure is not available in the original EIC contribution,
but it is probably small.
j. This is based on 1950 Australian exports and average US consump-
tion 1948-50.
k. This percentage is based on estimated 1950 natural rubber exports
and estimated 1950 new rubber supplies in the Free World (including
synthetic rubber).
1. 1948-50 average figure.
in. Taking average'annual net exports of the area in recent years
as 340,000 metric tons.
n. Based on estimate of data for recent years. Raw silk is impor-
tant to the US primarily because it is a source of silk waste, which
is important in the manufacture of gun powder bags.
expensive. Other important uses for tin are in solders and bearing
metals. Conservation measures can reduce somewhat the amounts of
tin in these alloys, but they are widely used throughout industry and
few substitutes exist.
2. Tungsten.
In 1950 the Far East produced about one-quarter of the
Free World's new supply of tungsten. The most important single
source in the area is South Korea. Most tungsten is used in high-
speed and tool steels for hardening and in tungsten carbide for
cutting tools. Lesser quantities are used in lamp filaments, con-
tact points, and bronze powders. Substitutes are not satisfactory
for all applications, but molybdenum is being used widely for high-
speed steels. The loss of the large Communist Chinese supplies and
the requirements for rearmament have led to high prices, with the
result that marginal mines. are being opened and producing mines are
expanding output.
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3. Refractory Grade Chromite.
The Philippine Republic is a major producer of refractory
grade chromite, which is used for furnace linings. The Republic's
share is not clearly determinable statistically, but in 1950 it prob-
ably amounted to about 40 to 45 percent of the Free World production
of about 430,000 metric tons. The Philippine ore is considered to be
of a superior quality for some applications and therefore is more
important than the percentage would indicate. Adequate supplies
could be obtained from other sources with some difficulty, but the
quality would be less satisfactory.
In 1950, Australia produced almost 19,000 metric tons of
rutile, which represented all of the Far East's and about 70 percent
of the world's total production. The US has received about 60
percent of this quantity since 1947. This form of titanium is
customarily used for welding rod coatings, though recently it has
been in demand for conversion into metal. Other higher-cost sources
can be developed, and synthetic titania can replace rutile in some
uses. Because of greatly expanded requirements brought on by the
mobilization program, adequate supplies from usual sources are
difficult to procure.
5. Nickel.
Present production of nickel in the Far East is confined
to New Caledonia, where mine.output in 1950 amounted to only about
6,300 metric tons (equivalent to about 5 percent of world production)
This rather small figure assumes importance, however, because of the
extreme shortage of nickel for urgent defense purposes. Its most
strategic use is in alloys to produce heat-resistant and acid-resis-
tant metals. Substitutes are also in short supply. Cuba and Canada
are both expected to contribute substantial increases in nickel
production in 1953 and 1954.
6. Rubber.
The Free World received about 66 percent of its new rubber
supplies and about 90 percent of its natural rubber from the Far East
in 1950. With the increase of synthetic supplies, this dependence
is expected to decline to about 60 percent of total supplies for 1952.
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Reclaimed rubber is also usable for some types of rubber goods. The
Free World, excluding the Far East, could produce enough natural and
synthetic rubber, which, when added to government stock accumulations
(mainly in the US), would enable it to maintain the 1950 level of
consumption for about two years. To extend this rate for a longer
period would require that synthetic capacity be increased substan-
tially with the attendant high costs in time and money.
7. Abaca.
About 85 percent of the Free World supply of abaca comes
from the Philippines. Its main uses include marine cordage and nets,
drilling cable, rope, and others. Substitute materials can be em-
ployed for many, though riot all, uses but often at a sacrifice in
quality. Further plantings of abaca in Latin American, which would
require US investment, without assurance of entirely satisfactory
results, could probably increase production to a level adequate for
US needs.
8. Apparel-Wool.
Australia and New Zealand produce about one-half of the
apparel-wool produced in the world. The minimum industrial and
military needs of the Free World, in both type and quantity, can only
be supplied adequately with apparel-wool from this area. The US is
in-a better position than some allied countries because of domestic
production and the availability of substitute fibers such as cotton,
re-used wool, and various synthetic fibers.
9. Copra and Coconut Oil.
The Far East exported about 75 percent of the world's
supply of copra and coconut oil in 1950. Coconut oil is used widely
for soaps, as a source of lauryl and octyl alcohols, and as food.
Other fats and oils can be used interchangeably with coconut oil for
many purposes, though not for all. The fact that the US is now a
major net exporter of fats and oils, together with a good stock.
position, reduces drastically US dependence on the Far East sources
of copra and coconut oil.
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C. South Asia.*
South Asia is a major Free World source of supply for
important commodities including amorphous lump graphite, mica,
manganese, shellac, and jute and jute products. Except for jute
and jute products, these are basic raw materials for many industrial
and military uses and present problems of substitution which have
not yet been successfully overcome for some applications. Satis-
factory substitute materials are available for jute and jute products,
though at greater real economic costs. In the case of manganese,
large alternative sources of supply are available for exploitation.
This area is important for the other three commodities because sub-
sititutes are not presently available for certain strategic uses
and alternate sources are either nonexistent or difficult to develop.
Other commodities normally exported from the area are beryl, opium,
iron ore, chromite, kyanite, tea, and black pepper. These materials
are of lesser importance to the Free World. Table 3** shows the
important resources, chief sources, and exports of the area, and
the percent of US supply coming from South Asia.
1. Graphite.
The grade of graphite known as 97 to 98 percent amorphous
lump is found only in Ceylon. Its most strategic use, for which
there is no satisfactory substitute material known, is in electric
brushes for high-altitude aircraft engines. It is also desirable as
a lubricant, but other materials can be substituted for it. So far
as is now known, there are no important alternate sources of supply.
India is the world's largest producer of muscovite mica.
Mica is valued because of its unique insulating properties and high
dialectric strength. Reasonably satisfactory substitutes can be
found for some uses, and technological developments encourage hope
that better ones can be found. Effective results, however, cannot
be anticipated for several years. Alternate sources of supply are
difficult to develop and are quantitatively small as compared with
Indian supply. Furthermore, a highly skilled labor force trained in
splitting mica exists in India and is difficult to replace.
* Including India, Pakistan, and Ceylon.
* Table 3 follows on p. 11.
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Table 3
Important Resources in South Asia a
Net Exports of the
Percent of
Area as Percent of
US Supply
Free World
Coming from
Resources
Chief Sources
Production I/
This Area a/
Manganese
India
20
35
Mica, Muscovite
India
65-70.e/
70
Block Sheet, and
Splittings
Kyanite
India
70 e/
66 f/
Graphite, Amorphous
Ceylon
100
100
Lump, 97-98 Percent
Carbon
Rare Earths
India
0
0
Beryl
India
1-10 e/
0 e/
Shellac, Unbleached
India
70-75 g/
65
Agricultural Resources
Jute and Jute
India
99
100
Products,
Pakistan
Opium
India
35
1
a. Including India, Pakistan, and Ceylon.
b. All commodities in this column, except jute and jute products,
are on the Munitions Board Stockpile List.
c. The purpose of this column is to indicate, by rough order of
magnitude only, the importance of this area to the rest of the world
for each of the commodities listed. Ideally, this measure would re-
late net exports of the area to new supply of the Free World (ex-
cluding this area) or to consumption of the Free World (excluding
this area). Actually, Free World production figures are used because
(1) they are more readily available, (2) they do not involve spurious
computations as in apparent consumption figures, and (3) for the
purposes of order of magnitude in.this table, the production figures
are about as useful as the consumption figures. Unless otherwise
noted, the figures relate to 1950.
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Table 3
(Continued)
d. The purpose of this column is also to indicate, by rough order
of magnitude only, the importance of this area to the US supply for
each of the commodities listed.
e. Estimated.
f. Consumption of imported kyanite.
g. This figure includes a large amount of Thai shellac which is
processed in India.
3. Manganese Ore.
India now produces about 25 percent of the Free World's
annual manganese production. The superior quality of this ore makes
it more important in the production of steel than the percentage
might indicate. Alternate sources of manganese are available and are
being developed, but it will require several years to complete the
necessary mining installations, transport facilities, and handling
facilities.
4. Shellac.
India produces nearly 75 percent of the Free World's
unbleached shellac. The raw material for this product is crude lac
of which about two-thirds of the world's output comes from India.
There is no universal substitute for shellac, and for a few highly-
specialized uses there is doubt whether a satisfactory substitute can
be found. For most uses, however, comprising at least half of total
shellac consumption, other materials have already been developed
which can be used satisfactorily. Production in Southeast Asia,
particularly in Thailand, has been increasing since the close of
World War II.
India and Pakistan produce almost all of the world's jute
and process a large proportion of it. The bulk of the jute is used
in bagging. For this purpose, cotton and paper may be substituted,
and for a number of uses bagging may be eliminated. The Free World
might be able to adjust to the loss of South Asian jute through the
use of substitute materials, but programs to utilize these substitutes
would require far-reaching adjustments.
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Africa is the most important source of strategic minerals
in the Free World and is a significant supplier of a few agricultural
commodities. Africa'sresources are especially vital to the US, since
many of them are critical raw materials for the industrial strength
of this nation. The most important of these materials are asbestos,
beryl, chromite, cobalt, columbite and tantalite,. industrial diamonds,
manganese ore, and sisal. All of these commodities can be character-
ized not only by important end uses but also by the fact that sub-
stitute materials are generally either poor or nonexistent and that
alternate sources are either not available or are available at high
costs in time, money, and effort. Antimony, copper, and phosphate
rock are important because Africa's share in world supply.is sub-
stantial, although alternate sources are available. Other minerals
which are normally exported from the area include bauxite, cadmium,
corundum, crucible grade graphite, lead, platinum and platinum
group metals, tin, and zinc. Other agricultural commodities which
are normally exported from the area include vegetable oils, wattle,
cacao beans, wool, and sugar. Table 4** shows the important resources,
chief sources, and exports of the area, and the percent of US supply
coming from Africa.
Southern Rhodesia produced about 95 percent of the Free
World supply of low-iron chrysotile of strategic grade (used by
the US Navy for covering electric cables) in 1950. Fiber glass can
be substituted for some uses of this grade, and there is some hope
that the iron can be removed from Canadian.chrysotile. There are
no other major developed sources for the low-iron grade. The Union
of South Africa produced 100 percent-of Free World supply of amosite
(used for thermal insulation) in 1950. There are no satisfactory
substitutes for amosite, but in an emergency Canadian chrysotile is
a possible subsitute at a high cost in efficiency of military items.
2. Beryl.
Africa produced about 50 percent of the Free World's
output of beryl. in 1950. Beryl products are used in the manufacture
of beryllium-copper alloys and for atomic applications. The most
* Includes all of Continental Africa except Egypt.
** Table 4 follows on p. 14.
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Important Resources in Africa a/*
Net Exports of the
Area as Percent of
Percent of
US Supply
Resources b/
Chief Sources
Free World
Production S/
Coming from
This. Area d/
.Antimony
U of S Africa
30
e/
Asbestos, Low-Iron
S Rhodesia
95-100
100
Chrysotile and
Amosite
Bauxite
U of S Africa
Gold Coast
2
0
Beryl
U of S Africa
50 f/
g/
SW Africa
SW Africa
18 f/
e/
B
l
i
C
e
g
an
ongo
U of S Africa
41
h/
C obalt
S Rhodesia
Belgian Congo
90 f/
g/
Columbium and
Nigeria
97
g/
Tantalum
Copper
Belgian Congo
N Rhodesia
23 f/
, e/
Corundum
U of S Africa
g/
g/
Graphite,
Crucible,
Madagascar
100
e/
Strategic
Industrial
Grade
Diamonds
Belgian Congo
98
g/
Lead
French Morocco
8 f/
Manganese
SW Africa
Gold Coast
50
43
U of S Africa
Phosphate Rock
French Morocco
French Morocco
34 f/
0
Platinum and
U of S Africa
32 f/
0
Platinum Group
Metals
Footnotes for Table 4 follow on p. 15.
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Table 4
(Continued)
Net Exports of the
Percent of
Resources
Chief Sources
Area as Percent of
Free World
Production c/
US Supply
Coming from
This Area d/
Natural Resources
Continued
Belgian Congo
14 f/
Nigeria
Belgian Congo
7 J
Agricultural Resources
Palm Oil
Nigeria
g/
83
Wattle
Belgian Congo
U of S Africa
100
100
Sisal
British East
68
40
Africa
a. Including all of Continental Africa except Egypt.
b. All commodities-in this column, except phosphate rock, are on the
Munitions Board Stockpile List.
c. The purpose of this column is to indicate, by rough order of mag-
nitude only, the importance of this area to the rest of the world for
each of the commodities listed. Ideally, this measure would relate.
net exports of the area to new supply of the Free World (excluding
this area) or to consumption of the Free World (excluding this area).
Actually, Free World production figures are used because (1) they
are more readily available, (2) they do not involve spurious compu-
tations as in apparent consumption figures, and (3) for the purposes
of order of magnitude in this table, the production figures are about
as useful as the consumption figures. Unless otherwise noted, the
figures relate to 1950.
d. The purpose of this column is also to indicate, by rough order of
magnitude only, the importance of this area to the US supply for each.
of the commodities listed.
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Table 4
(Continued)
e. The figure is not available from the original EIC contribution,
but it is probably small.
f. Output (which is probably about equal to net exports) of the
area as a percent of Free World production.
g. The figure is not available from the original EIC contribution,
but it is probably large.
h. US imports from Africa in 1950 were 100 percent of chemical ore,
30 percent of metallurgical ore, and l!. percent of refractory grade.
important alternate source for beryl is Brazil, which accounts for
about 40 percent of Free World supply. Output from alternate sources
could not be expanded very much, except after a long period of time
and at a high cost.
3. Chromite.
Africa produced 795,000 metric tons of chromite in 1950,
or 44 percent of total Free World production. The US received all
of its chemical grade chromite, 3C1 percent of its metallurgical grade,
and 14 percent of its refractory grade from Africa in 1950. It is
doubtful if alternate sources could be developed to provide either
the quantity or the quality of chemical grade chromite, which is
produced in Africa.
4. Cobalt.
In 1950, about 90 percent of the Free World supply of new
cobalt was produced in Africa, primarily in the Belgian Congo. Cobalt
is important as an alloying element in high-temperature alloys, high-
speed cutting tools, and high-performance magnetic alloys. Alternate
sources of cobalt cannot be counted on for any substantial increase
in output.
5. Columbium and Tantalum.
These two metals are produced from the minerals columbite
and tantalite and are recovered from tin slag. Columbium is an essen-
tial component of high-temperature alloys required in jet engines and
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gas turbines, and tantalum is critically important for manufacture
of capacitator parts and electronic tubes. Both metals are also
used in atomic developments. In 1950, Africa produced about 97 per-
cent of the Free World supply of columbite. Also, the Belgian Congo
is presently the only Free World area whose tin slags are utilized
for columbium-tantalum production. Other sources of the minerals
and the tin slags might replace Africa, but only after several years.
6. Industrial Diamonds.
The Free World supply of industrial diamonds comes mainly
from Africa, which supplied about 98 percent of the 13 million carats
of industrial diamonds of all types produced in the world in 1950.
Substitutes for both industrial stones (used mainly in drawing dies
and large rock drill bits) and crushing bort (used mainly in grinding
wheels and rock drill bits) are difficult to obtain.
7. Manganese Ore.
In 1950, Africa produced about 54 percent of the total
Free World production of manganese ore. Alternate sources are India
and Brazil, but substantial expansion of their production would be
difficult and would require considerable time. There is also a pos-
sibility of increasing production in the US through beneficiation of
low-grade ore or by recovery from slag, but both of these involve
considerable time and money.
8. Sisal.
Africa, the world's most important source of sisal, pro-
duced about three-quarters of the average world production of sisal
during 1948-50. Latin America could increase production of sisal,
but at least several years would be required for new plantings to
yield fiber. Henequen can be used as a substitute material in
many instances, and the output of this fiber could be increased in
Mexico, although 5 to 7 years would be required from planting to
harvest.
E. Latin America.*
The Free World is vitally dependent on Latin America for
supplies of strategic minerals. This area is especially important
to the US, and any evaluation of the area must give weight to its
* Including Central and South American and Caribbean area.
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future position in current programs rather than its historical supply
performance. This continent ranks second only to Africa as a;source
of strategic minerals for the Free World, the most important of which
are petroleum, bauxite, beryl, copper, manganese, tin, and tungsten.
In addition, various fibers (sisal, henequen, and abaca) are stra-
tegically important. All of these commodities offer little, if any,
opportunity for substitute materials and can be obtained from
alternate sources only at an expense in time, quality, and money.
Latin America normally exports many other mineral and agricultural
commodities. Table 5* shows the important resources, chief sourcesp
and exports of the area, and the percent of US supply coming from
Latin America.
1. Petroleum.
Latin America, led by Venezuela, is second only to the
Near East in terms of the amount of oil which is available for export.
It was estimated that Latin America would export 64+.2 million metric
tons of oil and would supply 9.2 million metric tons of bunkers to
ships in 1952. This is equivalent to about 12 percent of the esti-
mated Free World total output for 1952. The refining capacity of
Latin America is substantial and vital and would require several
years to supplant.
Latin America, principally Surinam and British Guiana,
provides about half of the Free World's bauxite supply. Almost all
of this output is exported to the US and Canada. Alternate sources
of bauxite equal in quantity and quality to that found in Latin
America are not available. Jamaica has vast reserves of bauxite ore
which are of a different character than the South American ores.
3. Beryl.
In 1950, Brazil produced about 4+0 percent of the Free
World supply of beryl and exported most of it to the US. Principal
alternative sources are Africa and India. The Indian Government has
limited exports from that country, and Africa can probably expand out-
put relatively little. There is no effective substitute for this
vital mineral which is used in the manufacture of beryllium-copper
alloys and for atomic developments.
* Table 5 follows on p. 19.
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Table 5
Important Resources in Latin America a/*
Resources b/
Net Exports of the
Area as Percent of
Free World
Production 2/
Percent of
US Supply
Coming from
This Area a/
Natural Resources
Petroleum
Venezuela
12 e/
f/
Antimony
Mexico
Bolivia
20
g/
Bauxite
Peru
Surinam
51
g/
Beryl
British Guiana
Brazil
40
56
Bismuth
Mexico
15-25
g/
Copper
Peru
Chile
20 h/
25 h/
Iron Ore
Brazil
2
Lead
Chile
Venezuela'
Peru
f/
Manganese
Brazil
0
Platinum and
Columbia
5
7
Plantinum Group
Metals
Quartz Crystals
Brazil
100
95
Rare Earths
Brazil
g/
48
Tantalum
Brazil
g/
f/
Tin
Bolivia
20
20
Tungsten
Bolivia
21
f/
Zinc
Peru
18 i/
f/
Agricultural Resources
Argentina
Paraguay
Footnotes for Table 5 follow on p. 20.
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Table 5
(Continued)
Net Exports of the Percent of
Area as Percent of US Supply
Free World Coming from
Resources Chief Sources Production 1/ This Area d/
Agricultural Resources
7Continued
Sisal
Brazil
Haiti
20
60
Henequen
Mexico
100
100
Castor Oil
Brazil
g/
90
Abaca
Costa Rica
Guatemala
Panama
15
25
a. Including Central and South America and Caribbean Area.
b. All commodities in this column., except petroleum, iron ore, and
henequen, are on the Munitions Board Stockpile List.
c. The purpose of this column is to indicate, by rough order of
magnitude only, the importance of this area to the rest of the world
for each of the commodities listed. Ideally, this measure would re-
late net. exports of the area to new supply of the Free World (ex-
cluding this area) or to consumption of the Free World (excluding
this area). Actually, Free World production figures are used because
(1) they are more readily available, (2) they do not involve spurious
computations as in apparent consumption figures, and (3) for the
purposes of order of magnitude in this table, the production figures
are about as useful as the consumption figures. Unless otherwise
noted, the figures relate to 1950.
d. The purpose of this column is also to indicate, by rough order of
magnitude only, the importance of this area to the US supply for each
of the commodities listed.
e. This percent is based on the estimated exports plus bunker fuel
and estimated output for 1952 as given in the original EIC contribu-
tion .
f. The figure is not available in the original EIC contribution, but
it is probably small.
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Table 5
(Continued)
g. The figure is not available in the original EIC contribution,
but it probably large.
h. Estimate.
i. Output as a percent of world output.
4+. Copper..
Latin American countries, primarily Chile, mine about
20 percent of the Free World's copper. It is possible to substitute
steel and aluminum for some uses of copper, although this also would
require using strategic metals. Africa and Canada are both important
alternative sources of copper but could not expand output enough
to equal that of Chilean copper
5. Manganese Ore.
In 1950, more than 93 percent of US requirements for
manganese ore were imported, principally from India, Africa, and
Latin America. With the loss of the USSR as an important source of
supply, efforts have been directed for the past several years toward
the development of the vast reserves of Brazil which should raise
that country to a position of major importance as a world producer
of manganese by 1956. Although Brazil's production of manganese ore
in 1950 was equivalent to only about 5 percent of world production,
the presently planned operational potential is about a million tons
annually, which is equal to about one-half of US consumption in 1950.
Latin America is the only important source of tin in the
Western Hemisphere. In 1950, Bolivia produced about 20 percent of
the Free World primary tin output. About half of this was shipped to
the US.
The loss of China's great tungsten resources has emphasized
Free World dependence on South America, which in 1951 furnished about
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18 percent of Free World supplies of tungsten. The Far East, Western
Europe (mainly Spain and Portugal), and the US are the other important
world producers of tungsten. These sources possible could increase
production above current levels, though at higher costs. Molybdenum
can be substituted for tungsten in certain applications, such as
high-speed tool steel, but this substitution would be limited when
molybdenum is in short supply.
8. Hard Fibers.
Latin America produces about one-fourth of the world pro-
duction of sisal, virtually all of the world's henequen, and about
15 percent of the world supply of abaca. Sisal and henequen are
similar in nature and in uses, although, of the two, sisal is
preferred. Abaca is generally superior to both of the others but is
more expensive and in much smaller supply. There are some substitute
materials for these fibers, but their use entails higher economic
costs. Alternative areas can increase production only after several
years.
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