THE ECONOMIC IMPORTANCE OF THE PRINCIPAL TANNINS TO THE US AND OTHER FREE WORLD COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79S01100A000100020004-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 42
• Document Creation Date: December 21, 2016
• Document Release Date: January 23, 2008
• Sequence Number: 4
• Publication Date: October 31, 1953
• Content Type: IR

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ECONOMIC INTELLIGENCE REPORT
25X1
THE ECONOMIC IMPORTANCE
OF THE PRINCIPAL TANNINS
TO THE US AND OTHER FREE WORLD COUNTRIES
EIC-SR-2
31 October 1953
Not referred to USDA. Waiver applies.
ECONOMIC INTELLIGENCE COMMITTEE
SUBCOMMITTEE ON AGRICULTURE
DOCUMENT NO.
1
NO CHANGE IN CLASS. t
Ki DECLASSIFIED
CLASS. CHANGED TO: TS S C
NEXT REVIEW DATE:
AUTH: HR 70-2
DATE: REVIEWER:
25X1
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This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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DEN1TTk-
25X1
THE ECONOMIC IMPORTANCE OF THE PRINCIPAL TANNINS
TO THE US AND OTHER FREE WORLD COUNTRIES
ECONOMIC INTELLIGENCE COMMITTEE
Subcommittee on Agriculture
T T+~mr.-rte
9Q
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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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FOREWORD
This report was prepared on the basis of contributions from the
Department of Agriculture and CIA. The report has been concurred in
by the ETC Subcommittee on Agriculture, including the intelligence
representatives from CIA, the Foreign Operations Administration
(formerly MSA), and the Departments of Defense, State, the Army, the
Air Force, and Agriculture. The report has been approved for
issuance as a Subcommittee Report by the Economic Intelligence
Committee.
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1. Wattle: Production of Bark and Extract in Specified
Surplus Producing Countries in Africa, Average
1935-39 and 1940-44, Annual 1945-51 . . . . . . 21
2. Quebracho: Production of Extract in Specified Coun-
tries in Latin America, Average 1935-39 and 1940-44,
Annual 1945-51 . . . . . . . . . . . . . . . . . 22
3. Wattle: Extract Equivalent of Total Wattle Exports
from Specified African Countries by,Destination,
Average 1948-49 . . . . . . . . . . . . . . . . . . 23
4. Wattle Extract: Exports from Specified African Coun-
tries by Destination, Average 1948-49 . . . . . . . 25
5. Wattle Bark: Exports from Specified African Coun-
tries by Destination, Average 1948-49 . . . . . . . 27
6. Wattle: Net Exports of Specified Surplus Producing
Countries in Africa, Average 1935-39 and 1940-44,
Annual 1945-51 . . . . . . . . . . . . . . . . . . 29
7. Quebracho Extract: Exports from Specified Latin
American Countries by Destination, Average 1948-50
8. Quebracho: Exports of Extract and Logs from Speci-
fied Countries in Latin America, Average 1935-39
and 1940-44, Annual 1945-51 . . . . . . . . . . . 33
Following Page
Vegetable Tannins, Production and International Trade,
Average 1948-50 . . . . . . . . . . . . . . . . . . . 16
?-C--6NP IDENTIAL-?
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r nm ~ TT1F' NTP T A T ~,~
CONTENTS
1. Introduction . . . . . . . . . . . . . . . . . . . . .
.
3
2. Use, Interchangeability, and Substitutes . . . . . . .
.
4
3. Dependency of Major Consuming Countries on Foreign
Sources of Wattle and,Quebracho . . . . . . . . . . .
.
7
a. US . . . . . . . . . . . . . . . . . . . . . . .
.
7
b. US Allies . . . . . . . . . . . . . . . . . . . .
..
8
c. Other Free World Countries . . . . . . . . . . . .
.
10
4. Production . . . . . . . . . . . . . . . . . . . . . .
.
11
a. Wattle . . ... . . . . . . . . . . . . . . . . . .
.
11
b. Quebracho . . . . . . . . . . . . . . . . . . . . .
.
13
5. Trade . . . . . . . . . . . . . . . . . . . . . . . .
.
.15
a. Wattle . . . . . . . . . . . . . . . . . . . . . .
.
15
b. Quebracho . . . . . . . . . . . . . . . . . . . . .
.
16
6. Conclusions . . . . . . . . . . . . . . . . . . . . . .
.
18
a. Wattle . . . . . . . . . . . . . . . . . . . . . .
.
18
b. Quebracho . . . . . . . . . . . . . . . . . . . .
.
19
Appendix
Sources and Evaluation of Sources . . . . . . . . . . . . .
.
35
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Although tannins are produced in most countries, the production
is not sufficient in large industrial countries, like the US and UK,
to supply their tanning industries. During 1948-50 the US consumed
about 150,000 tons of tannins annually, of which 40 to 50 percent
came from Latin America and another 20 to 25 percent came from
Africa. During the same period the UK used about 74,000 tons annually,
of which about 73 percent came from Africa and an additional 15 to 20
percent from Latin America. With accelerated stockpiling beginning
in 1951, the US substantially increased imports of tannins. The rest
of the Free World, although equally dependent on imports, uses in the
aggregate a small fraction of the world supply of tannins.
Although it is cheaper for the US to import tannins than to be-
come self'-sufficient, domestic production could be expanded, at higher
costs, to supply all uses. On the other hand, the cost of becoming
self-sufficient in tannins would be prohibitive to the UK, and the
loss of its foreign source of supply would seriously jeopardize the
British leather industry. Because of the small amount of tannins used,
other countries in the Free World could replace lost imports through
expanded domestic production of tannins or tannin substitutes without
experiencing prolonged economic hardships.
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EIC-SR-2
THE ECONOMIC IMPORTANCE OF THE PRINCIPALTANNINS
TO THE US AND OTHER FREE WORLD COUNTRIES*
Summary
Quebracho and wattle, two of the most important vegetable tannins
in terms of availability and use in the tanning of hides throughout
the Free World, are important strategic commodities and have been
stockpiled in the US in the form of solid extract of approximately
63 percent tannin content. Together, these two tannins make up the
bulk of the vegetable tannins entering world trade. The primary
sources of wattle and quebracho are, respectively, Africa and Latin
America. Only a small fraction is consumed in the local tanning
industries, the bulk of production being exported to the more indus-
trially advanced countries in the Free World. It is estimated that
during 19+8-50 the combined net exports** of wattle and quebracho
averaged from 300,000 to 350,000 tons*** per year. This amount could
be increased considerably in 8 to 12 years by new plantings of wattle
in Africa and by more efficient use of quebracho in Latin America.
* This report contains information available as of 1 August 1952.
The basic statistics used in this report were provided by the Foreign
Agricultural Service, US Department of Agriculture, as an unclassified
contribution to the section on agriculture in NIE 56. Eval. A-1.
The term net exports as used in this report refers to total ex-
ports of an area minus intra-area exports.
*-- Tonnages throughout this report are given in metric tons.
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It should be noted that, while this report refers largely to
19+8-50, there have been, in general, no radical changes from 1950
through 1952 in the geographical pattern of production and imports.
Quebracho and wattle, two important vegetable tannins from the
point of view of present availability and use have been stockpiled
by the US.in the form of solid extract of approximately 63 percent
tannin content. The stockpile objective is usually the difference
between estimated requirements and supplies for a 5-year emergency.
A tannin is an amorphous, strongly astringent substance of com-
plex structure. In the tanning operation, tannins have properties
that extract blood from tissue, at the same time causing tissue to
contract. Tannins also are capable of combining with proteins to
form rather insoluble substances that render skins unalterable by
those agents that tend to decompose them in their natural state. l/*
Tannins are widely distributed in the vegetable kingdom, being con-
tained in substantial quantities in about 30 percent of the subplant
families. However, there are only a small number of tannin-bearing
plants which have commercial value.
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The US and UK depend upon distant areas for their supplies of que-
bracho and. wattle, the principal vegetable tannins used. These two
tannins account for the bulk of the vegetable tannins in world trade
and are primarily utilized outside the areas where they are produced.*
The importance of these commodities will be examined on the bases of
their uses, of the dependency of Free World nations upon sources of
supply, and of their production and trade.
2. Use, Interchangeability, and Substitutes.
Tannin (tannic acid), either pure or in commercial forms, has
many uses outside of its major utilization in the leather and textile
industries. It is used as a reagent in the analysis and manufacture
of chemicals; in the brewing and manufacture of glass, paint, varnish,
and paper; and in treating wines and potable waters, and other uses.
Tannic acid is an ingredient of ceramic products, dyes, photographic
and metallurgical baths, ink, shoe polish, pharmaceuticals, perfume,
and rubber.
Quebracho is one of the most important of the vegetable tannins.
It is the most widely used of the vegetable tannins and accounts for
about-one-half of the quantity of tannins in world trade. Quebracho
is one of the quickest acting vegetable tans known. It differs from
* See the chart following p. 1
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most other known tannin extracts in that it does not sour or ferment
readily. For best results in making leather, however, it is mixed
with chestnut, oak, and hemlock to obtain the necessary sugars
essential to the most successful tanning. Quebracho extract ranks
foremost in the tanning of heavy leathers such as sole leather and
belting, but it is also a good tannin for lighter leathers when
mixed in the proper proportion with other softer tannins. Other uses
of quebracho, by itself or in combination with other tannins, are to
prevent hard-water scale in boilers (used by railway and shipping
companies), to preserve fish nets, and to facilitate the drilling of
oil wells by conditioning the mud.
Wattle, like quebracho, is an astringent tannin. It is particu-
larly well adapted for tanning light leathers but can also be used
successfully for tanning sole leather. The chief value of wattle
lies in its quick penetration, good color, and capacity to blend
with other tannins. In areas where wattle-producing trees are
adaptable, they grow more quickly and are more economically produced
than quebracho or chestnut. Substitutes for wattle as a source of tannin
probably run into several score, but the most suitable are the woods
of the chestnut and quebracho trees and the barks of the oak, hem-
lock, and mangrove trees.
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Chestnut is a pyrogallol (weak acid) tannin, a type generally*
best adapted for tanning light-weight leathers. Like other tanning
material, chestnut is not used alone but is blended in various con-
centrations with other tannins to obtain the desired results. In the
US, it is used principally for tanning sole, belting, harness, and
other heavy leathers because it gives good quality and weight to the
leather. It is also used on light leathers such as upholstery, auto,
bag, strap, and athletic leathers. Chestnut extract also is used in
making boiler compounds to prevent hard-water scalein boilers.
Chestnut and other tannin extracts are used in the flotation separa-
tion of feldspar from calcite and quartz, in the extraction and recov-
ery of certain gold-bearing chemicals, and as an inhibitor of
oxidation in petroleum hydrocarbons. J Chestnut wood has been the
most important source of tannin in the US, but the diminishing supply
of this domestic product and the high cost of developing the tanbark
resources of the forests in the Far West have made the US more depen-
dent-each year on imported wattle and quebracho.
The dependence of industrial nations on foreignsources of tannins
is related to the ease with which substitutes can be found for tannins
or for materials using tannins. In the US, for example, the Department
of Commerce has found that the percentage of -shoes with leather soles
dropped from 75 percent in 1941-42 to 52 percent in 1950. In view
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of this trend, it is expected that the percentage could easily be
reduced to 40 percent in an emergency. Substitutes for leather soles
have more than offset the increased use of leather occasioned by our
growing population, thereby saving substantial quantities of tanning,
materials. A hide used for sole leather requires about twice as
much tannin as a hide used for upper leather, about 18 tan units as
compared with about 9.
Some hides and skins are vegetable tanned, some are chrome tanned.,
and some are tanned with a combination of vegetable and chrome tannins.
All of the chrome and most of the vegetable tannins are imported.
Synthetic tannins such as orotan and calgon have properties that enable
them to replace many of the vegetable tannins, but present high prices
prevent thejr.use on a large scale.
3. Dependency of Major Consuming Countries on Foreign Sources of
Wattle and Quebracho.
a. US.
The US uses about one-half of the world's output of vegetable
tannins but produces a much smaller fraction. The principal tannins
produced in the US are chestnut, hemlock, oak, sumac, and canaigre,
which is not yet in commercial production. Wattle and quebracho were
first used in this country because of the failure of indigenous tannins
to supply the needs of the US tanning industry and now remain in prom-
inent use because they are ,cheaper than domestic products. The US is
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wholly dependent upon Africa for its supply of wattle (about 28,-000
tons annually during 1948-49) and upon Latin America for its supply
of quebracho (67,000 tons annually during 1948-50). To fulfill
stockpile requirementsin the US, the demand has been increased con-
siderably. A total of 112,700 tons of quebracho went to the US in
1950.
About 70 percent of the tannins consumed in the US during
1948-50 were imported. Quebracho and wattle make up the bulk of these
imports. US dependence on foreign sources of supply of tannins is
at present more contingent upon the costs than upon the lack ofraw
materials. The large potential supply of domestic vegetable tanning
materials -- principally Douglas fir bark, Western hemlock bark,
Florida scrub oak, and canaigre root --- could conceivably fulfill all
requirements, but because the cost of production is not competitive
with imported tannins, they have not been fully exploited and developed.
Orotan, a synthetic tannin, is also in production, but a large expan-
sion of production under peacetime conditions will depend upon the
ability of the manufacturer to reduce costs.
b. US Allies.*
Although much less vegetable tannin is consumed by US allies
than by the US, almost all of the allies obtain vegetable tannins from
ac- In this report, US allies include the 13 NATO countries (UK, Canada,
Iceland, France, Belgium, Luxembourg, the Netherlands, Portugal,
GONF IDENT IAL
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Africa and Latin America. During 1948-49, exports of wattle to the
UK, the NATO countries in Western Europe, and other allies amounted
to an annual average of 88,000 tons, which constitute about 57 percent
of Africa's exportable supply of wattle, extract equivalent,* as
compared with 28,000 tons, or 18 percent, for the US. The UK, the
world's largest user of wattle extract, imported about 35 percent of
Africa's exportable supply of wattle during 1948-49. .Wattle com-
prises 73 percent of the approximately 74,000 tons of vegetable tan-
nins currently consumed in the UK. Other US allies received only
small amounts of African wattle.
During 1948-50, annual exports of quebracho to US allies
amounted to about 42,000 tons, which represented about 20 percent of
Latin America's exports of quebracho. France, the UK, and Germany
were the main importers of this tannin. Except for the UK, the in-
dividual allies do not depend to a great extent on vegetable tannins
from Africa and Latin America. Europe has a number of different
kinds of chestnut trees with good tanning qualities and is also the
Italy, Norway, Denmark, Turkey, and Greece] and Western Germany,
Japan, Australia, and New Zealand.
* Two pounds of wattle bark yield 1 pound of extract.
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source of valonia, which is obtained -from the acorn cups of certain
species of oak. Italy, France, and Switzerland have adapted local
chestnut extracts by treating them chemically for tanning coarse
leather. Through this process, they have obtained a quality similar
to quebracho.
c. Other Free World Countries.*
Some of the other countries in the Free World depend upon
Latin American quebracho. Most import-ant among these are Sweden
and Finland, which import from 3,000 to 6,000 tons annually. Hong
Kong increased its quebracho imports to over 19,000 tons in 1950.
However, there is evidence that a large part of this was transshipped
to Communist China, while only a relatively small amount was consumed
in Hong Kong. In general, however, countries in the Far East do not
rely upon Latin American tannins, since their own resources of tanning
materialsare extensive. Myrtan (the trade name for a tannin produced
in Southwestern Australia from the Eucalyptus Redunca tree) and man-
grove, or cutch (which comas from the swamps of Malaya, the Philippines,
Borneo, Java, and Latin America),are increasing in importance and volume
in the tanning industries of Far Eastern countries and are gaining in
* Other Free World countries include all areas outside the Soviet
Bloc except the US and its allies.
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popularity and use in the Western World. Other Latin American coun-
tries receive considerable amounts of quebracho from Argentina and
Paraguay in addition to other indigenous tannins such as divi-divi,
urundary, and Cebil Colorado.
Other Free World countries in the Near and Middle East import
less than 7,000 tons of African wattle annually, and Western European
countries import slightly more than that amount each year. Hong
Kong receives substantial quantities of wattle, but the amount going
to other Free World areas is nil.
4. Production.
a. Wattle.
Practically the entire supply of wattle entering world trade
is produced in the Union of South Africa, British East Africa, and
Southern Rhodesia (see Table 1).* Prewar production in Africa is not
accurately known. For the Union of South Africa, production during
19+8-49 was 58 percent above the prewar figure. Since the Union is
the predominant producer, this figure reflects with a fairly high
degree of accuracy Africa's increased wattle production. Wattle is
also produced in Brazil, Australia, India, Ceylon, and Indonesia,
but this production has been of little commercial significance in
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world trade. In recent years, more than 40 million wattle-producing
trees have been planted in southern Brazil. So far the yield of
wattle extract from these plantings has been about 5,000 tons annually.
Wattle bark is derived from several species of the acacia
trees, which are native to Australia. The bark is the source of
wattle extract, and itis possible to obtain 1 unit of extract by
weight from 2 units of wattle bark. Experiments in the US have indi-
cated that Arizona, New Mexico (with irrigation), and Florida possess
the climate and soil necessary for wattle culture. Because of its
quick growth relative to other tannin-producing trees and its econom-
ical production, wattle appears to have a good future in subtropical
areas as a cultivated tannin source.
Wattle bark has been grown on a commercial scale in South
Africa for more than-50 years, and some areas have produced their
fifth crop of trees.* The trees are fast-growing but comparatively
short-lived and reach maturity for bark in 8 to 12 years. For com-
parison, "1 acre of wattle trees 7 to 10 years of age, will yield 6
tons of bark, compared to 4 tons of oak bark and 8 tons of hemlock
bark at an age of 80 years."
* After the bark has been stripped. from the tree the tree is removed
and is replaced with new stock.
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The British exercise a fairly high degree of control over the
production and distribution of wattle. Table 1 indicates a substantial
postwar increase in wattle production over prewar. By 1949-50, war-
time plantings had produced their first crop of trees. In recent
years, wattle production appears to have been rather stable within g
range of 130,000 to 160,000 tons per.year. It is possible to obtain
an immediate increase in the amount of wattle. produced by harvesting
bark from trees a year or two before they would normally be cut. This
has the consequence that the supply available a year or two later will
be smaller because of precutting and, unless the trees are replaced,
the supply normally available in the future would be reduced.
b. Quebracho.
Quebracho trees are indigenous to Argentina and Paraguay, which
together account for practically the entire world supply of quebracho
extract (see Table 2).* During the past 10 years, annual production of
quebracho extract by these 2 countries has averaged 230,000 tons, of
which about 180,000 tons were exported to foreign markets. Roughly, 80
percent of the extract originates in Argentina, and 20 percent in
Paraguay.
The quebracho industry in Latin America did not develop until
toward the end of the 19th century. Today quebracho is one of the most
* Table 2 follows on p. 22.
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important and most widely used of the numerous vegetable tanning
materials and accounts for about one-half of the volume of tannins in
world commerce.
Quebracho trees grow very slowly, reaching a commercial stage
for tannin extract in 100 to 150 years. Pure stands of quebracho do
not occur. The trees are widely dispersed among numerous hardwood
varieties. Only the heartwood of the tree is used to obtain extract,
and its tannin content averages 20 to 26 percent by weight. Most of
the existing stands of quebracho trees are in Argentina.
The principal factors determining the probable duration of
these resources include (1) futur-e world demand for quebracho extract;
(2) future rate of utilization as fuel (during the last half century,
50 percent of all quebracho exploited was used for fuel); and (3)
pressure on the land from Argentina's growing population, which makes
it unlikely that land suitable for grazing crops can be devoted to 1
crop of quebracho every 100 to 150 years. On the basis of continued
use at the present estimated rate, Argentina quebracho resources should
last from 50 to 60 years. At the present rate of exploitation, it may
take from 30 to 100 years to exhaust the quebracho supply in Paraguay.
Although complete statistics are not available to support these
widely varying estimates, the supply is declining, and reforestation
of quebracho-producing areas is almost negligible.
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5. Trade.
a. Wattle.
During 1948-49, about 153,000 tons of wattle (extract equiv-
alent), representing almost the entire world production of that tannin,
was exported from the major wattle exporting countries in Africa
(see Table 3).* Almost 98 percent of this amount was exported to
countries in the Free World. Table 4** shows exports of wattle extract
as such, and Table 5*** shows exports of wattle bark by destination.
As indicated in the accompanying chart,**** over 75 percent of Africa's
exportable supply of wattle was imported by the US and its allies.
About 54,000 tons went to the UK, where it made up the bulk of the tan-
nin used by the leather industry in that country. Wattle, although
important for certain types of tanning in the US, is considered a
supplemental tannin. In other countries of the Free World, except the
colony of Hong Kong, wattle is used in very small quantities, supple-
menting indigenous tannins.
Average annual exports of wattle for 1948-49 were about 70 per-
cent larger than the prewar average and 45 percent above the wartime
average. Table 6,***** which shows net exports of wattle, indicates
Table 3 follows
on p.
23.
Table 4 follows
on P.
25.
Table 5 follows
Following p. 16.
on p.
27.
Table 6 follows on p. 29.
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a substantial upward trend in the export of that tannin since the
close of World War II. It .is possible that exports will level off at
slightly less than 150,000 tons per year. Since there is virtually
no tanning industry in Africa, nearly all the wattle produced there
finds its way to foreign markets.
b. Quebracho.
Data for Latin American quebracho exports, especially by des-
tination, for the past few years provide a somewhat distorted picture.
In Table 7,* many of the figures for Argentina are only 2-year averages,
and the figures for Paraguay are for 1950 only. In some recent years,
exports appear to have been larger than production (see Tables 2 and
8**) because exports of quebracho have been determined more by price
than by production. During 1950,-for example, production of quebracho
was reported to be 186,000 tons, while exports were 287,000 tons.
During this same year, 112,700 tons were exported to the US.
The data in Table 7 present a rather consistent pattern of
the movement of quebracho in world trade. For 10 years prior to 1951,
an average of 20 to 25 percent of the quebracho produced in Latin
America was consumed domestically. Except for the shipments of
Table 7 follows on p. 31.
Table 8 follows on P. 33.
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 ARGENTINA TO:
United Saua.--------658
France -------------- 10.3
United Kingdom 75
Netherlands.....-... _6.4
West German9 --- ----5.2
Pol e... -..... -.. _ -5.0
Swn -------------- 4.2
Japan.. 3.7
Finland .------------- 3.6
Belgium ----------- _ 3.3
Crechoslovakia._._ _3.0
Aumania.___._.. -- 2.8
Hungary -------------- 26
Norway __ -_---__ 1.1
Other Latin America _ 14.7
Ocher Far East it,. P""' 9'9
Other W. Europe-__.4.9
Other Soviet Bloc ------ 1.2
Near and Middle East .0.4
Ocher Africa---. --...0.1
Nor specified ----- ....10.8
Total exports-- -- 167.5
OTHER LATIN
PARAGUAY TO:
Argeudn------------ 20.8
Unfired Kingdom_.__.1.2
Sweden...
Unfired Smut _--__-0.6
Norway 0.3
Were Germany ..----- .0.1
Other Latin America .14.2
Total eaporca------- 8.7
VEGETABLE TANNINS'
PRODUCTION AND INTERNATIONAL TRADE
Tinuwnds of meaic tons
COMBINED IMPORTS PRODUCTION
under l 10 50 150 150 50 10
Thousands of mem= tons
INTERNATIONAL TRADE FLOW
PARAGUAY
35.3
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NOTES
All figures are in thousands of metric tons
SOUTHERN
RHODESIA TO:
United States. -.... -.. -0.1
UNred Kingdom........0.1
Other Far East :er Pass.) 0.2
Total c,p-ts_ _0.4
Export figures for African wattle are averages for the period
1948-1949. Export figures for Argentine gaebrecho are averages
for the period 1948-1950, with some averages for two years
kept in mind, but regardless of their incompleteness the over-a11
relotionships of production and international trade in vegetable
tannins remain relict For a more detailed enpknation of the
dxintion of figures one the text
BRITISH
EAST AFRIC
(Tanganyika, Kerl
Uganda, and Zano
UNION bF
SOUTH AFRICA
JTHERN'
OPESIA
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FINLAND.
?Ru Nw'
ITALY' B!ULGARIA
NEAR AND
MIDDLE EAST,
BRITISH EAST
AFRICA TO:
Lobed Kingdom .......5.9
United Stare---- .. ----- 23
Nerherlanda............0.5
West Germany.--.- 0.4
Japan ..................e2
BnIpum .....-------- 0.1
Italy ... -.. -.--_.. _.0.1
Ocher Far Ea,, (B,. Fass.)l36
Near and Middle Easr -2.7
Other W. Europe-.- 0.2
Ocher Africa
Ocher Latin America --- 0.1
Total uports - .. --..26.3
UNION OF SOUTH AFRICA TO:
United Kingdom _....47.8 Poland .__....... _.I.0
United Sarrs__.... 256 Denmark ........__.OE
Aartralia_------- .-.7.4 Crechoaiovakia....._.06
Wes, Germany ------ .49 Htmg.rv -------------- 0.6
Ne,herlands_----- 4.5 Bulgarla_----- --._..0.1
Japan.---......._.38 Other W. Europe ...... 10.8
Italy ---------------- 1.9 Near and Middle East. . 3.9
China-_.... __. .... 1.7 Other Far E- (Br. ram) 3.7
New Zealand...._. 1.5 Other Africa ......... 1.2
France.._......__ _. L4 Ocher Latin Amrr,oa...10
Bel?um .....-.. _.._.1.3 Oh' Soviet Bloc.. ...0.1
Canada - LI Total axpotts------ 127.8
Norway.-..------- . . 1.1
CHINA
1.7
AUSTRALIA
Th. C rent el the Uuaed Sores has wx eeoagnimd the ;wo~pu_
erne an Est-A, late., aid Lahaeee am the Soarer Union: oar duet
it
remgnue as heal the de lean wexem Sea of PtIsh Admiasrenoa a
Gamwav Itk QkrlJe ce Line); rune othe, eFeane hwndmes do
not neoessastr m respond en the huwdores emaniaed by the United
e... Garneat.
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CONFIDENTIAL
quebracho to the US and the UK, the movement of this tannin to the
other countries of the Free World almost parallels the movement of
wattle as shown graphically in the accompanying chart.
Shipments of quebracho to the US in recent years have amounted
to between 40 and 50 percent of Latin America's exportable supply.
During 19+0-4+9 the US imported 70 percent of its tannin. Quebracho
constituted nearly 70 percent of US imports of tannins and made up more
than 50 percent of total US tannin consumption. J Although the UK
has been a consistent user of quebracho, it has used only a small
amount -- less than 10,000 tons annually in recent years.
Exports of quebracho were reduced significantly during World
War II despite the large demand for tanning materials. 1950 exports
were only 30 percent above prewar exports but were 71 percent above
the average wartime exports. Since the close of the war, except in
1948-)49, there has been a gradual upward trend in the exports of que-
bracho from Latin America. The adoption by Argentina of a conservation
program which will outlaw the use of quebracho for fuel would,if en-
forced, increase the output of quebracho extract and at the same time
decrease the annual cutting of quebracho trees. Furthermore, by re-
ducing the half million-ton capacity of the partially used and uneco-
nomically operated plants to an output capacity of 330,000 tons, and
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CONFIDENTIAL
by concentrating this capacity in fewer and more efficiently operated
plants, the Argentine Government plans to increase present output of
quebracho extract at lower unit costs.
6. Conclusions.
-a. Wattle.
On the basis of the data presented in this report, the denial
to the Free World of African wattle, assuming no change in any other
area, would probably have the following results:
(1) Except for the loss of its special tanning character-
istics, the loss of the African supply of wattle would not directly
affect the tanning industry in the US.
(2) The UK's tanning industry, which obtains about 73 per-
cent of its tanning materials (mostly wattle) from.Africa, would
be seriously handicapped. Almost the entire amount of the UK's
tannin requirements coming from Africa would have to be replaced
from other foreign sources, since the UK's potential indigenous
production of vegetable tannins could not replace this loss.
(3) Other US allies and other countries of the Free World
would not be appreciably affected by the loss of African wattle.
Although Western Europe is a net importer of vegetable tannins,
considerable amounts of domestic tannins are exported. Many
countries have, through the use of chemical mixtures, satisfactorily
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 Approved For Release 2008/01/23: CIA-RDP79S01100A000100020004-4
supplemented their indigenous production of vegetable tannins.
Increased cutting and processing of the existing stands of que-
bracho in Latin America in the production of extract would miti-
gate the seriousness of the loss of African wattle.
b. Quebracho.
If the supply of quebracho were denied to the Free World,
assuming no other changes, the following results would probably occur:
(1) The US probably could develop, at increased prices and
with strict rationing, its potential domestic tannin production
sufficiently to offset the loss of quebracho with the aid of
stockpile reserves to cushion the effects of the loss of quebracho.
(2) The UK's tanning industry would be handicapped but not
seriously altered by the loss of quebracho. It would be possible
to obtain an immediate increase in the amount of wattle produced
by harvesting bark from trees a year or two before they normally
would be cut and thus probably mitigate the UK's loss of quebracho.
This would mean that the supply 1 or 2 years hence would be reduced
by the amount of precutting that took place, and these trees would
have to be replaced in order to maintain future supply.
(3) Other nations of the Free World would not be appre-
ciably affected by the loss of quebracho, because the contribution
which quebracho makes to their economy through the tanning industry
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is very small. As the use of leather substitutes increases and
the production of leather goods decreases, minimum tanning require-
ments for the decreased leather production could probably be
maintained.
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 Approved For Release 2008/01/23: CIA-RDP79SO1 1 0OA0001 00020004-4
Wattle: Production of Bark and Extract in Specified Surplus Producing Countries in Africa a
Average 1935-39 and 1940-44, Annual 1945-51
Total Africa J
Period
Wattle
Bark
Wattle
Extract
Total Extrac
E uivalent
Wattle
Bark
Wattle
Extract
Total Extrac
Equivalent
Wattle
Bark
Wattle
Extract
Total Extrac
Equivalent
1935-39
79.0
41.8
81.3
N.A.
N.A.
N.A.
79.0
41.8
81.3
1940-44
55.3
66.5
94.1
N.A.
N.A.
N.A.
55.3
66.5
94.1
1945
43.7
75.0
96.8
27.6
N.A.
13.8
71.3
75.0
llo.6
1946
53.4
75.6
102.3
24.9
N.A.
12.4
78.3
75.6
114.7
1947
53.0
88.0
114.5
N.A.
N.A.
N.A.
53.0
88.0
114.5
1948
61.9
98.0
129.0
37.4
N.A.
18.7
99.3
98.0
147.7
1949
62.6
103.6
134.9
55.6
N.A.
27.8
118.2
103.6
162.7
1950
56.3
93.3
121.4
58.6
N.A.
29.3
114.9
93.3
150.7
1951 J
55.7
94.3
122.1
N.A.
N.A.
N.A.
55.7
94.3
122.1
a. Office of Foreign Agricultural Relations, USSDA.
b. Total African production includes a small amount of Southern Rhodesian wattle bark for which statistics are not
available.
c. Two tons of wattle bark are required to produce one ton of extract.
d. N.A. indicates that information is not available.
e. 1951 - preliminary estimate.
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C ONF IDENT IAL
Quebracho: Production of Extract in Specified Countries
in Latin America a/
Average 1935-39 and. 194o-44, Annual 1945-51
Argentina
Paraguay
Total
1935-39
219
42
261
1940-44
153
43
196
1945
232
30
262
1946
276
45
321
1947
208
26
234
1948
194
35
229
1949
135
40
175
1950
155
31
186
1951 J
200
N.A. J
200
a. Office of Foreign Agricultural Relations, USDA.
b. 1936-39 average.
c. 1951 - preliminary estimate.
d. N.A. indicates that ifformation is not available.
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CONFIDENTIAL
Table 3
Wattle: Extract Equivalent of Total Wattle Exports
From Specified African Countries by Destination b
Average 1948-49
Destination
US and Possessions
Allies
NATO Countries
UK
Netherlands
France
Belgium J
Canada
Italy
Norway
Denmark a
Other NATO e
Total NATO
Australia
Western Germany
Japan
New Zealand
Total Allies
Other Free World
Union of
South Africa
British .
East Africa
Southern
Rhodesia
Total
Africa
25.6
2.3
0.1
28.0
47.8
5.9
0.1
53.8
4.5
0.5
c/
5.0
1.4
J
J
1.4
1.3
0.1
0
1.4
1.1
J
J
1.1
1.9
0.1
0
2.0
1.1
0
0
1.1
0.8
0
0
0.8
3.1
0.2
0
3.3
63.0
6.8
0.1
699
7.4
0
0
7.4
4.9
0.4
0
5.3
3.8
0.2
0
4.0
1.5
0
0
1.5
80.6
7.4
0
88.1
Far East
3.7
13.6
0.2
17.5
Near and Middle East
3.9
2.7
Negligible
6.6
Western Europe e/
7.7
0
0
7.7
Africa
1.2
0.2
0
1.4
Latin America
1.0
0.1
0
1.1
Total Other Free World
13.5
16.6
0.2
34.3
Total Free World
123.7
26.3
0.4
150.5
* Footnotes for Table 3 follow on p. 24.
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CONFIDENTIAL
Wattle: Extract Equivalent J of Total Wattle Exports
From Specified African Countries by Destination b
Average 1948-49
(Continued)
Destination
China
Poland
Hungary
Czechoslovakia
Bulgaria
Other
Total Soviet Bloc
Total Exports
Tatra-Area Exports
Net Exports
Union of
South Africa
British
East Africa
Southern
Rhodesia
Total
Africa
1.7 J
0
0
1.7 f
1.0 f/
0
0
1.0 f
o.6 J
0
0
0.6
o.6
0
0
0.6
0.1
0
0
0.1
0.1
0
0
0.1
4.1
0
0
4`1
127.8
26.3
0.4
154.6
1.2
0.2
0
1.4
126.6
26.1
0.4
153.2
a. Includes extract -equivalent of wattle bark plus extract exported as such.
b. Office of Foreign Agricultural Relations, USDA.
c. Less than 50 tons.
d. Includes Luxembourg.
e. These two items have been.lumped together as "Other Western Europe" in Chart
because "Other NATO" is composed of European countries.
f. 1948 only.
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Table 4
Wattle Extract: Exports from Specified African Countries by Destination J*
Average 1948-49
US and Possessions
Allies
NATO Countries
UK
Netherlands
Belgium J
Canada
Norway
Italy
Other NATO
Total NATO
Australia
New Zealand
Japan
Western Germany
Total Allies
Far East
Near and Middle East
Western Europe
Africa .
Latin America
Total Other Free World
Union of
South Africa
British J
East Africa
Total
Africa
14.6
1.7
16.3
45.9
5.9
51.8
2.6
0.5
3.1
1.3
0.1
1.4
1.1
Negligible
1.1
1.1
Negligible
1.1
1.0
0.1
1.1
1.7
0.2
1.9
54.7
6.8
61.5
6.8
0.0
6.8
1.5
0.0
1.5
1.2
0.2
1.4
o.6
0.4
1.0
64.8
7.4
72.2
3.6
9.4
13.0
3.5
2.7
6.2
3.2
1.0
4.2
1.1
0.2
1.3
1.0
0.1
1.1
12.4
13.4
25.8
91.8
22.5
114.3
Footnotes for Table 4 follow on p. 26.
25 -
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CONFIDENTIAL
Table 4
Wattle Extract: Exports from Specified African Countries by Destination a/
Average 1948-49
(Continued)
China
Poland
Bulgaria
Other
Total Soviet Bloc
Total Exports
Intra-Area Exports
Net Exports
Union of
South Africa
British J
East Africa
Total
Africa
1.4
0.0
1.4
0.5
0.0
0.5
0.1
0.0
0.1
0.1
0.0
0.1
2.1
0.0
2.1
93~.
22.5
116.4
1.1
0.2
1.3
92.8
22.3
115.1
a. Office of Foreign Agricultural Relations, USDA.
b. 1949 only.
c. Includes Luxembourg-
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CONFIDENTIAL
Wattle Bark: Exports From Specified African Countries by Destination a/*
Average 1948-49
Union of British b/ Southern Total
Destination South Africa East Africa Rhodesia Africa
US and Possessions ~21.9 1.6 0.2 23.7
Allies
Far East
0.2
8.4
0.4 b/
9.0
Near and Middle East
0.7
Negligible
Negligible
0.7
Africa
0.1
0.0
0.0
0.1
Western Europe
_
Other Western Europe
1.5
0.0
Negligible c/
1.5
Total Other free World
10.0
8.4
0.4
Total Free World
62.5
10.1
0.8
73.4
NATO Countries
UK
3.8
0.0
0.1
3.9
Netherlands
2.9
0.0
0.1
3.0
France
2.8
0.1
Negligible c/
2.9
Italy
1.7 b/
0.0
0.0
1.7
Denmark
1.6
0.0
0.0
1.6
Other NATO
2.8
0.0
0.0
2.8
15.6
0.1
0.2
15.9
Western Germany
8.6
0.0
0.0
8.6
Japan
5.2
0.0
0.0
5.2
Australia
1.2
0.0
0.0
1.2
New Zealand
Negligible
0.0
0.0
Negligible
0.1
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CONFIDENTIAL
Exports From Specified African Countries by Destination
Average 1948-49
(Conti.aued)
a/
Hungary
Czechoslovakia
Poland
China
Total Soviet Bloc
Total Exports
Intra-Area Exports
Net Exports -
Union of
South Africa
British b/
East Africa
Southern
Rhodesia
Total
Africa
1.2
0.0
0.0
1.2
1.1
0.0
0.0
1.1
1.0,c/
D.0
0.0
1.0
0.5 c/
0.0
0.0
0.5
3.8
0.0
3.8
66.3
0.8
77.2
0.1
66.2
0.8
a. Office of Foreign Agricultural Relations, USDA.
b. 1949 only.
c. 1948 only.
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Wattle: Net Exports J of Specified Surplus Producing Countries in Africa
Average 1935-39 and 1940-44, Annual 1945-51 J
Period
Wattle
Bark
Wattle
Extract
Total Extrac~
Equivalent J
Wattle
Bark
Wattle
Extract
Total Extrac
Equivalent d
Wattle
Bark
Wattle
Extract
Total Extract
Equivalent Extract
Wattle
Bark
Wattle
Extract
total Extra
Equivalent d
1935-39
79.0
36.5
76.0
10.0
6.o
11.0
N.A. J
0
N.A.
89.0
42.5
87.0
1940-44
55.3
62.5
90.2
8.8
8:5
12.9
N.A.
0
N.A.
64.1
71.0
103.1
1945
43.7
67.4
89.2
9.4
8.7
13.4
0.2
0
0.1
53.3
76.1
102.7
1946
53.4
66.7
93.4
8.0
12.1
16.1
0.8
0
0.4
62.2
78.8
109.9
1947
53.0
80.6
107.1
10.4
11.8
17.0
0.5
0
0.2
63.9
92.4
124.3
1948
61.9
92.6
123.5
11.7
12.9
18.8
0.5
0
0.2,
74.1
105.5
142.5
1949
62.6
96.3
127.6
10.1
22.3
27.3
0.7
0
0.4
73.4
118.6
155.3
1950
56.3
86.7
114.9
5.1
24.5
27.1
0.3
0
0.1
61.7
111.2
142.1
1951 J
55.7
87.7
115.5
N.A.
N.A.
N.A.
N.A.
N.A.
N.A.
55.7
87.7
115.5
a. Net exports is equal to total exports of the area minus intra-area exports.
b. Office of Foreign Agricultural Relations, USDA,
c. 1951 - preliminary estimate.
d. Two tons of bark are required to produce one ton of extract.
e. N.A. indicates that information is not available.
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Quebracho Extract: Exports From Specified Latin American Countries by Destination a/*
Average 1948-50
US and Possessions
Allies
NATO Countries
France
UK
Netherlands
Belgium
Norway
Other NATO c/ d/
Western Germany
Japan
Australia c/
Total Allies
Argentina
Other
Far East (British Poss.)
Argentina
Paraguay b/
Total
Latin America
66.8
o.6
67.4
10.3
0.0
10.3
7.5
1.7
9.2
6.4
0.0
6.4
3.3
0.0
3.3
1.1
0.3
1.4
2.1
0.0
2.1
5.2
0.1
5.3
3.7
0.0
3.7
Negligible
0.0
Negligible
39.6
2.1
41.7
0
20.8 e/
20.8 c/
14.7 c/
14.2
28.9 Cl
9.9 c/
0.0
9.9 c/
4.2
1.0
5.2
3.6 c/
0.0
3.6 c/
2.8 c/
0.0
2.8 c/
0.4 c/
0.0
0.4 c/
0.1 c/
0.0
0.1 c/
0.5 c/
0.0
0.5 c/
36.2 c/
36.0
72.2 c/
142.6 c/
38.7
181.3 c/
* Footnotes for Table 7 follow on p. 32.
31 -
Western Europe:
Sweden
Finland
Other d/
Near and Middle East
Africa
Other f/
Total Other Non-Communist
Total Free World
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Quebracho Extract: Exports From Specified Latin American Countries by Destination a/
Average 1948-50
(Continued)
Total
Destination Argentina Paraguay bI Latin America
Poland 5.0 0.0 5.0
Czechoslovakia 3.0 0.0 3.0
Rumania 2.8 0.0 2.8
Hungary 2.6 0.0 2.6
Other 1.2 c/ 0.0 1.2 c/
Total Soviet Bloc 14.6 0.0 14.6
Not Specified f/ 10.3 0.0 10.3
Total Exports 167.5 c/ 38.7 206.2 c/
Intra-Area Exports 14.7 c/ _35.0 e/ 49.7 c/
Net Exports 152.8 c/ 3.7 c/ 156.5
a. Office ofForeign Agricultural Relations, USDA.
b. 1950 only.
c. Less than 3-year average.
d. These two items have been lumped together as "Other Western Europe" in the chart be-
cause "Other NATO" is composed of European countries.
e. Paraguayan quebracho shipped to "Argentina in Transit" frequently loses its identity.
In 1950, 20,756 tons of quebracho were shipped toArgentina in transit.
f. These two items have been lumped together as "Not Specified" in the accompanying
chart.
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CONFIDENTIAL
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CONFIDENTIAL
Table 8
Quebracho: Exports of Extract and Logs from Specified Countries
in Latin America J
Average 1935-39 and 1940-44, Annual 1945-51
Argentina
Paraguay
Period
Extract
Logs c/
Extract
Total Extract
1935-39
183
83
38 d/
221
1940-44
132
8
36 -
168
1945
191
e/
52
243
1946
207
e%
48
255
1947
215
e/
23
238
1948
131
e/
29
160
1949
99
e/
40
139
1950
248
e/
39
287
1951 b/
257
e/
4o
297
a. Office of Foreign Agricultural Relations, USDA.
b. 1951 - preliminary.
c. Logs comprise only the heartwood of the tree and contain
approximately 30.4 percent extract by weight.
d. Average of years 1935, 1936, and 1938.
e. Less than 500 tons.
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loftqTmt-
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