ECONOMIC IMPORTANCE OF THE NEAR AND MIDDLE EAST

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CIA-RDP79R01012A001700030005-7
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RIFPUB
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S
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33
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December 23, 2016
Document Release Date: 
September 19, 2012
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5
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Publication Date: 
March 14, 1952
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MISC
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Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700036-005-7 6,( of Ir ' G;4, -' (/'% DOCUMENT NO. NO CHANGE IN CLASS. O DECLASSIFIED 'CLASS. CHANGED TO: NEXT REVIEW DATE: RUTH: Ha 10-2 RATE: TS S 1141 SEC INFORMATION 434750 ATT4c 3 -? ?y -rAt3LE CI Hi! A,4% 5 EVIEWER:_009256 FCCETOMIC DEFOICANCE OF THE NEAR AND MIME EAST* ne_mamejulf the Nr eandille East The strategic importance of the Near East to the Free World stems 1am4y ream its petroleum production and the metallurgical ebramite ore of Turkee? The Near East is expected to export 93.9 million tons of oil in 1952 and to supply 10,3 million- tons of bunkers to shire paseing through the area, The total surpaus of 104,1 No minim tons is 17 percent of the expected Free Worle supply in 1952, The Near East is the Worlds most promising region for fsture oil development, Its present production is a small part of its potential production, Since only a minor part of the loss of this area la oil could be offset by increased produetion in the Western Hemispbere which would require largeeeeale inveatmantsp drastic rationing in the United States and Westeen EUrope would be necessary. This rationing would probably be more severe than World War II rationing in the limited States, The resulting loss Would be wevse for seeeral years, Loss of Turkish chromite ore would be serious to the Free World, Tuekiv'gp ore represented about 35% of the Free World's production of metallurgical grade ohromite in 1950 and 44% of US imports in 191, Loss of this ore would weeds, the US ? sitate large withdrawals fn/stockpile,. The development of expanded preductl-e it Southern Rhod aia would require considerable time and investment, Th G lose leculd be serious in 1952p but wauld probably be progressively alleviatee. ever tha enauing years, Other resoureeo of the Near East are of sealer impertance to the Un Sed ? - States and its Allies, Loss of Egypt's long staple cotta mould serious:4e ireonvenience the United Kingdomm and other Western European countries, Ecee of the other sem -edibles exported appear to present problems that would teseleue: hamper tae dermas program of the United States and its Alli000 Sieejzsdane_ILZeoodualOountrie The smantriee of the Near rest which have the greatest strategic impeztano era the four main oil producing countries .ad Turkey? *Inclutee Palltg 'tie% Israeli) jordand'Syria9 Lases% Saudi Arabia, Turk.?r Afghanistano Kuwait, Tatar ard Bahrela0 1/ The total surplus of the areap 1041 trillion motel tannp minus the M talL teas aeailable foe stocks ef the whole Free World is. equal to the 10303 talellees deficit that would bra created in the event of lest; of the Near East? teens*Wiieweriee Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 COFIDENTI MUNN! naromrics While the loss of the Nora East oil region as a whole would be serlcas for tbe Free Wor1d9 the loss of any on of the feur ehief moducers9 Saudi Arabia, Kuunitd Iran and Ire% would? Dot be commensurate with its estimated 1952 production, Production in all the countries is capable of considerable expansion, Thu, In spite of loss of Iranian production far about half of 1954 Near EaSt oil producti4,. was-greater in 1951 than in 19500 AlthTugh loss of Iranian crude can be offsetp theAbadan refinery is important ballause of the current absence of reserve refining capacity? Turkers immtancwrests mainly an its chromite exports, In additivn9 Turkey uxports opa tobaceo and recentlyurbeatv the loss of which would impose some prdblems of substitution ard alternatiie sources? Nent in importance is Egypt, Its chief *Imports are long staple cotton and phosphate rock to Wt e: 'Enropep rice and salt to other Eastern coue:riesp. and minor quantities of manganese to the United States? ireOTIFIDENTIAf Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 01?111?1?111?.?????????????????ala.eit Resource Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Aiviv.rIDENTIAL- Welerl,1400 SECURITY INFORMATION ,RDSOURCES OF MAJOR IWORTANCE fl TM! Imo/. AND MIDDLE CAST '.....10.0161,10.0104.111?114.0.114, ????????,..???tfil.M.11.01.01111?011, ., . . ? . 0 : g NET EXPORTS Or ARBA 3.? g Area Pristarilys . As % of Free As %- of an a Affected 3 Degree V -g Chief. Sources !World Exports World Production By Loss g of Long Cs Remarks Natural Resources Chromite 6 0 . 0 Manganese 0 . Salt o 0 o 0 0 Phosphate Rock . Petroleum 1.41 0. 0 0 a g Near -East Total: a g Turkey g Cyprus Cs ;Near East Total 8 471) t 8 8 Thrk fOr a Egypt? Adan Bent Cs g Near Bast Tota3.g 5,2 g Saudi Arabiag ; Kuwait R;ricultural g Resources g . g Long Staple Cotton a 2 Egypt and Sudan; 22- a g 0 Iran O Xraq .Cs Cs 3 20 2, 1 7 1. non. 22 10 9 6 Cs Cs 3 Cs 3 8 0 3 2 Cs ; Fres World g Free World g India, Japan 3 g Europe Asia z.; Free World CsCs Cs a .) 0 0 Cs0 ;Turkey is especially important as a source of Metallurigical ;grade Cbromite (35% of world production), US stockpile is sizeable g(r erp r s en t Ile somewhat less than 5 years of Turkeyls output) but g only 55% complete. Considerable time would be reouired to expand ;alternate source in Africa, gEgyptian ore is low grade; equivalent to 3% of world metallurgical :grade eupplro Cs ;Alternate sources availablee ;Alternate sources available by or before 1954. ? ;Alternate sources could meet only a small part of the loss. 0 0 0 Cs gUnited Kingdom g C g Substitution of shorter staple cotton not generally possible, In g time other sources of supply (US) and synthetic substitutes could ;largely compensate for loss, US stockpile is about 20% of the g CaPjut4te and represents nearly 30% of annual imports from the Near g Fast The DX stoWcpile is sufficient for from 6 to 12 months g consumption, ? '0' 0 CONkliENI'fig Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-1 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 =MITT INFORMATION RESOURCES OF MAJOR IMPORTANCE IN TM MBAR AND MIDDLE BAST (Cont'd) Resource finT mons OF AREA 1 area Primarily2 $ o co As o I Affected gDegree Zig : Chief Sources gWorld Exports World Produotiong By Loss gof Loss g 0 Recarks Agricultural Resources: Opium . ? :Rear East Total ; Turkey 3 Iran Rice . 0 :Near East Total; g f.gypt 2 Tobacco 6 Turkey Grata* other . 0 :Neat Feet Total; than Rice ? 1 32 28 g to g Negligible 2 ;United States ; 2 gSolith Asia :Fres World ..1.1,01111*???=mmie, D g Alternate sources could be developed and use of substitutes g expanded. ? g Supplies only 10 of imports of India, Ceylon, and Malaya, g Alternate sources could compensate for the lossc Alternate sources can *apply minimum needs, :Western Marv.: E 2 Loss quantitatively amall0 ;Far East a 6 0 * Less than 1 percent? n,a, Not Available 1/ These percentages based on 1950 export and production figures unless otherwise indicated? 3./ The commodities are grouped in the approximate order of their strategic importance by means of the letter ratings A, B, C, Do criteria are not satisfactory in every respect, they could not be rigidly applied in milking ratings, A - Redaction in defense and essential civilian consumption, unavoidable, , B Impact on defense and essential civilian consumption could be avoided only by drastic sacrifice of non-essential civilian withdrawal from stockplleso If any? C Defense And essential civilian consumption could be maintained only by reducing either non-essential civilian consumption D Maintenance of scheduled defense and essential civilian consumption would require moderate rationing4 stockpile reductiono scheduled Increase of stockpile, . E Relatively minor economic adjustments could compensate for the loss, Production figures rather than exports, Major part of production is exports& Lif Data for petroleum is a projection to 19520 V Base4 on estimated alitorage potiwat World production0 -ZIOLZT re011-11DENTIAli Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 and E, Inasmuch as the consumption and. by or stockpiles, if any, or slowing down Declassified and Approved ForRelease2012/09/19 : CIA-RDP79R01012A001700030005-7 JCOliiIDENTIAD1 "4,E.Le-f'71-1t-4:e.Je. a.m. ....Ka ???????? WPC* TM. Security Informntion - Petroleum ,1?WeeiREIMII?mvoc...1retrinry,T., This study is based on the year. 1952 with he assumption that no general war would occur in event of denial of the oil of any one of the specified areas The data is considered adequate for?general conclusions on the petroleum position. of he United ::;tate sh Canada and ,testern 2uro e in event of loss of these areas The loss of the Sear l'ast would have most serious repercussions e The denial of the oil of this area would result in a serious deficit in the petroleum supply of the r emaining non-Communist world. The ilear rust has a surplus of petroleum.in the order of nerIy 94 million. : etric tons. The availability is about 114.4 million tons while the requirement is only about 20?5 million (includini; 10e2 million tone of bunkers). However the actual -f?oteatial availability tat' crude oil is far in excess of the lAanned production during; 19520 In. the ()Vent of loss of the lear? Elat the rest of the non-Communist world would be flood with a heavy deficit of about 10305 million tons which is 16e7 of the total'requ.remalts amountinr to 61:1,7 ni1lIon.? The rerinery capacity is about 50 mdlion. tons?; or lebs than half of the planed crude productime, The capacity for aviation- gasoline, while small in relation to he United States, is hevertheles: important and, ja event of loss ofthe area, the caeacity would have to be replaced. The bunker?requirement of about 10 million metric tone in the .ITear ast largely for merchant shieninz of the ':,estern world with only a /Amor quantity required fee trade with the area, The bunkering requirement is therefore, part ofthe ship-ine reqiirement ? of the non-Col:.wanist world and weld not be eliminated with the loss of the area, For convenience it has been added to the requirement of. the United States, Canada and ,:estern Europem The estimates on crude production visualize some solution to the Iranian oil Problem with the result .hat the crude oil output of Iran and Euwait toretherWould be comparable to their 1950 production, In 1950 Iran produced about 5301 mil)ion metric tons and Kuwait? 1702 mil1iou, iving a total of 5005 million. In 1952 it is estimated that Iranian output will drop to approximately 18.5 million tons while Kuwait's will rise to 35e0 million, resulting in a total for the two countries of 53.5 million The increased production from NUwaitwilienore than offset the decrease of eroduction in 'rano - 1 - CONFTDEATT-fffs , Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 In Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Security Information Part of the could be offset 1.)y extraordinary pr Lie P.: asurbs, but drastic raulon5.1k: would be necessary. ...otOr heati7.-1. oils for -.-?rivate ecnsu.:lersp and bankers uo-dd be the ;..rociuc4s most effected? The rationin,; wo,Aid probably lie i_ore se-fere thane-xporieneed in the United Litate-s durinc ;tir II (about 12). The nee Li Li ity lbr r ati oninc, would apply to. all rermaining.ron-Commanisk. countries? In the event that the oil industry Iran roi.r.ins substantiErly idle ?during 1;)b2s the 'ootcntial of the ion-Co:auni3 orld9 ino1udin7 tho remainin: countries o the re.C.Or .12ast, ?is sufficient to produce the required crude oil, but .1.e rofinirg capac-1 tieuld con.tinue to be pressed? The threat of a siortage 'would remain. s G a 1I1 '11 ? Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 E C R T Ses,urity Information TAB.11. I? Availability. and Civilian Requirements /n the Ilon-Communist'Ver,?-ld /1577-717176Err1Tir777Gcnoral Thousand 1.etrio Tons Crudr, Oil EoutvaIent Countries VIIMIswrifInam.11.0.1.W.IIII.1,10...e ? Crude Oil. Crude Charging Capacity Civilian :I6-,':qulremonss Bunkers Other Products 1/ CS, Canada and 1.estern Europe -ITT arid :ossessions 3790800 30,375 18,352 3n6,579 Canada 7,260 23,620 777 20,758 210545 69 Nerway - 50 200 1,877 1,877 Lark - 31 141 1,94Z 2?081 United 7ingdc.m 60 29,e15 2,979 1.,700 Tetherlands 700 7,375 911 5,255 4,136 Belium-Luteurs - 3,495 320 3,200 ?ranee 190 24,575 10.00 12,188 15,28,53 It&ly 10 10,55 , 733 608 C,842 :ortual 500 250 it f;frxarry 1,300 8,981 1,i90 163 4,946 C,,109 20435 1,959 1,697 50Z55 3ritzer).,nd 200 . 1,331 1,3P, Yulv.usiavia 150 400 - 322 :',22 Total 389,456 03. . 1800T- 71711 7417177,F11, Far East 16,650 11,452 3,336 15,222 18,558 Nbar 17.1pli4t 1.:ehre? 1CO 7,750 646 L"?: ejltj 7t1.a :Iran 180500 2?1.25 .4 2,364 132 Tra,i 12,000 975 10 T90 Iruw-Lit 56?000 1,20 959 48 1.007 Saudi AraOia 42,500 8,000 1,467 152 1 c-i9 Qatar 2,600 ., . 5 6 . ,, ,"..r:.?.-y 50 70 76 690 768 - 40275 104 917 A?021 nzypt 203;50 2,550 1,725 :5,90'5 1A0 Other - 600 82f.., VALLI. 114,4 ' -Trts-IIIW 7r77117i ....1.15;,,z7 2outh A6ia 450nl / ,..,..,.., 1,519 5,710 -- -p-,0 Africa 100 ?b 3,124 6,794 9,918 112,500 80,971 9,179 3a,100 48,279 .C....1moroomm.134.6 Latin Amoria -------- CRAr'.I) T0TAL 6300150 627,900 55,722 9414080 ;=_'4516 602 V For the purposes of comparison in this study the requirements for petrol producs TaXito been converted to crude oil equivalent, it has been,assumod that thoweight of the products available is 87 percent of the weight of .;.he crude oil usod in their Productiim, For comparative purposes the same percentae relationship is assumed. for thehunkerin requirements as well as the requirements for other products. As in, the ease of avail,Ibility the estftmates have been 'based on infermation developed by the -'ctroleum. ;,,dministratien for Jefense with the assitanos of special industry committoes. It is believed that the range of error is betwocn pluz 5 and minus 5 percent, 7.:k n 1/4./ ex4.? ????? - 3 - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 S Security Information 'DOM 11, 2e1a;:tona:iip of Crude Oil Availablity to Total Requirements _ - _ A6suminr: no ubnurai Thousan.ds of Tons -1"Iltit) Oil TLcuivalout - Total Non-',.;ammuoiat :.orld ernde Oil Availability Requirmenta or Defic:t / 93,0'2,3 6 79 21, 4' tr,,t,03 -1.46,3:3. - 408 - 913 ,,279 p 64,,, 7,TOTTE7 " 1110,k'.i8 - (123 urviTlan Bunkers 23,310 3,356 A0,254. 1,519 3,124. .-,..179 -,-.., ,724:; 52e536 380564. 5,336 1,5/9 %124 9,179 -Other Product'3 TeLal ? 603,971 - 15,222, ? 10,28 5,710 39,100 .,,,----- bil4,080 -525,356 463971 3.5,222 5,710 . 6,796 39,100 450 12543l 5e .20,537 7,229 9,91S ,,2.`n .A 15.7?.7.417 3,150 611,691. 33,A,50 .535,6a0 - 1(4558 .., . 7,.22.9 , 9,913 48 3-8-0:0"6-1Mlf 53,:LO 822,723 63,1f0 520,034 33,150 E.81,63 T.IS77-anad-a-and Western alrope ? Far at 'Teta- :ast. - ScuthAsia Africa ' Latin America Total Loas of Far East 380,450 ' 13,850 114,400 450 100 112,500 ? -1367736 . 616,900 ? 3890450 13,850 450 100 :12,500 toas of Hoar East TUTUFHFU4 afir. Western Luropo Par 2ast South Asia Africa Latin America Total Loss of zThuth Asia , Lo of of Africa- 6i15'15 530,5(YO 630,550 518,250 --5-5-,ffi. 54,205 - 52,593 4(4543 m70,--,/ro 535,370 534,28P . 501,980 Lo t7s of Latin Aillerica S i ORE T - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ' Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 S E T ity Information FM111.111.3 112TA.1.13 The Industrie/ output of the Free World would suffer from the loss of the metal and mineral supply of the Near and Vaddle East primarily owing to lose of Turkish chromite and to a minor extent from the loss of certain other products. DxaglIg,,, Turkey was the Free Worldgs second most important source of all types of chromite in 1950 (354 thousand metric tons) and the eloat important source of the metallurgical prade, Turkey supolied the U. 3, with 195,600 metric tons of metallurgical ore in 1950 (32 per cent of U. S. total imports of this grade) and with 240 thousand metric tons. in 1951 (44 per cent), The other most important sources of U. S. eeports of metallurgical chromite in 1950 were Southern Rhodesia, 133 thousand metrio tens; the Philippines, 65 thousand metric tons; and New Caledonia, 59 thousand metric tons. The rest of the Free World draws on these same sources, The supply from Southern Rhodesia could be increased to meet the loss of the Turkish ore if transportation port and port facilities were sufficiently improved. This would involve new equipment and solving political difficulties, With present facilities, exports could be increased only at the expense of other strategic raw materials. The stockpile objective for metallurgical chromite is 3,251 thousand metric tons; the inventory as of December 31, 1951, 1401 thousand retric tone. To some extent chemical grade chromite can be substituted for uetallurgical grade. The Union of South Africa supplied the U? S. with 260 thousand metriei. tons of chemical chromite in 1950. The stockpile objective is 427 thousand metric tons, with 295 thousand metric tons in inventory as of Decentler 31, 1951, The loss of Turkish ore would be serious to thu Free Woria. Consumption requiremene of the United States, in particular, would increase with an all out emergency but could be offset, in part, by conservation measures. The loss of the Turkish ore would necessitate sharing part Of the metallurgical ore we. now draw from other sources with the rest of the Free World, large withdrawals from the stockpile and resolution of the transportation and port difficulties in Africa. Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ?, Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 -2- 3 3 C R T Security information :.aimause ore. Turkey produced about 31,000 metric tons of manrenese ore in 1950. In 1951 (11 months) the United States received about 19,650 ,netric tons, averaging about 46 percent manganese. Egypt (Sinai Peninsula) produced in 1950 about 213,000 metric tons of low-grade (about 28 percent manr!anese) ore; bout? 83,000 tons of this ore was received in the United States, In 1951 (11 months) receipts were 132,000 metric tons. The balance is sold in 2,urope. Though of limited utility, requirinp for the most part blending with hirh-rrade ores, the ,.;gyptian output, reckoned solely on its rota content, is eouivalent to about 1:.:5,000 'env tons o: ;:tallurroal'r-,o? or jossLtr2 3 pecelt of the e 1:,kted Free World Suprly. .cgega. Turkey in 1949-50 produced about 13,000 metric tons of cop:ar annually. By the end of 1952 production is expoeled to reach 25,000 tons, most of which will be available to the free world, This is only a littic more than 1% of the world output, excluding the USSR, but is significant because of the present severe shortage of copper. Salt. Egypt's solar salt output is around 600,000 metric tons, and Aden's about 300,000. Turkey is expandinft production to about 4400000 tons, about 45 percent of this would be exportable. Aden and EFypt have been o)nsistent shippers to India. In recent years they have/ furnished 500,000 tons and more to Japan, Japan is dependent to a considerable extent on imports to Leet its estimated 2 million ton annual needs. Loss of this supply would markedly affect Japan's chemical and food processing industries. Ph2at.a_te Rock. tki;gypt has produced about 400,000 metric tons of phosphate rock annually, most of this has been exported, In 1950, 160,000 tons were shipped to Japan, 30,000 tons to India and about 170,000 tons to Europe By or before 1954 French Morocco should be able to rake up with hirher grade rock any Egyptian loss to Europe. Far Eastorn sources appear unable to reet all Indian and Jaranese needs The deficit could be covered from Morocco (or north Africa) or the United States., SECRET Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Onit-Metri tons Declassified and Approved ForRelease2012/09/19 : CIA-RDP79R01012A001700030005-7 SECRET Security-- Triforriat Ion FJ,YECTS OP R.,;_novAL OF NEAR AND MIDDLE EAST FROM THE FREE WORLD all.P1-11? AND DE',IAND FOR STRATMIC METALS AND MINERALS WuRLD TOTAL NEAR AND MIDDLE EAST TOTAL FREE WORLD LLS 'CAR AND MIDDLE EAST 6, STOCKPILE. Mine Apparent Mine4 Apparerit Vine Apparent PRoDUCTION consimption prodwtinn c:onsumption i;=ev,ductiiai COnsumption Dec 319 1951 cmlonTE 1,822,QQ? , 1,731,000 444834 / 19377166 1;,731g000 2.379chh, mAm_IANE51E, 3p595,-652 3,618,M) 172,169 454 32383 1,66 4:'q) 22369V SECRET Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ? Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 S-E-C-R-E-T SECURITY INF(RMNTION DIE-56 NEAR ANt IIIDDLE EAST km12U1tural Sisgplamakp of Near ard Midd Epst '1,14As' UnitelltatAa5.1JS Allim and "Other Non-CommanIstr- Aree,s Th loss of the Near and Middle East would notc, in the field of a 4 materially reduce the effectiveness of the economya in peace war ilIted States or hilied or other non-Conmundet countries5 though the lcJI af this aret, would creaie some pxobiems? Cceueral_iy spaa-L.ztng these problemsii, L. sricu In kliad and other nan,Communist eountries than in the US, OnLy five commdities5 extra long staple oottona opium5, craIns other than ricei, sad t-baccot ars of sufficient importawe to be considered Indivtdckally,, Detailei stawments and tables with rgar t these five cmmodities am (....,--)ntalned in Appendices 1 thmigh 5 attached? Commditil.es &r.tAL,ralle_orctton - Egypt arA the %den pmduee over -97) perriq (abgat, 230g000 metric tons) of the uorldls supply of oxtra long stapl ott,3n whieh of girerA immrtance fbr eertain textile requirements such ,as h101 peed machi=c sewing thread balloota Byrdv typewriter and aerIviarie eictbt, and fima aware:1,, Damand for these special items is usually stimulated by antarrmt privInms,, tlubstitute fibers are not generally considered suitable for all uses and mrtitalar, syntheti fibers do tJA stand up Itader th hiah temperatams generated in hirh peednrichine sewingThe , ULited States at least after same seasons, 1e auffsio.ient king staple r!otton to fill its OWD requirements, Llen under the cvst, TY bietunditiens, however, United States domestic production could not be inomased to q-,he extert that any significant surplus would be available to supply United States alIles? The US is stockpiling extra long stap1e5, and as of Pebru%ry 145 1.92,?.bad 174687 metric tons in stage, anther 155533 tons due for delivery in August 19'52a against a stook-pit* objective of 90a703 tonsc. Tho United Kingdom imports over 805000 metri tons of extra long staple cottcn each year fr= the Middle East, About )0FIL of the United KinNom textile industry is geared to the use of long staples5 though the peraentace of extra staples in total cotton textile experts is nnoll greater:, Long starle textile machines could not be i2y adaptod to the use of shorter fibers, The loss of the Diddle East - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ...V. smufirry. INFORMATION area wculd seriously inconvenience the United Kingdam and other NATC ailies though it is not believed that the loas. of the extra. a.: es woulA. siguifimntly affect the ability of the United Kingdom to earn dollar exchange,, It is believed that tha United KitigdorimaTally tries.to maintain a supply of extra stavaes sufficient for (.'.) to 12 months operation., .2?. 90= -Turkey. And Iran exported in 1950 about 66. pendent (412 te) of ? the voridls exportable supply of .opium. Thi US in currently' dependent ent.ir4y on tho lisar and Middle East for its supply of opium,? Several Earocan countries also obtain the bulk of their opium .imixrtte frim this arese, India is th. only other important sourte to tha Free World at the present. time,: Tho. opium poppy which thrives-under a wide range of climatic condltinn9; if necassaryv bt grovn in thP United States and in several a1li6d e?ountrIes sufficient quantities to supply minimum needs of opixm in the event of thf: lr:s8 Turkey and. Tramp if sufficient incentives are. provided goera and tareotis eontra obleetns are removed Alsot synthetic; drugs are aNailable Which,in sme can be vised. az 8 substitute for mrpMne and codeinet. the tvx.) most ImpzIrtf.Int aJkIth of opium. There dues na exist sufficient.eviden-e to indicat that ftily satisfactoy synthetac substitute narcotics are available to replace morphine and endeim medical uses at. the present time.. United States is stockpiling opium indepr4ndent1y of synthetic narcotic developments and by DeceMber 31t 1951t the stett:poile objective .of 127 netric tons was 288 percent fulfilled? Grni,tsother tb#n rice. - Dear ilia addle ha$ slcradiqJ and relatively unimpDrtant export saurce of gran (other than r1ce4 chiely bar1ey,7 However, Turkey has been rapidly expanding Lran aereage and has an estimated 7501,000 tons of wheat and barley available for export frtothe 1951 oro-N Indlcations are that Tarkelos atemad-up lcv.el of productim my be maintalmxig, lal perhaps increased? The loss of the Near and Middle .ilat grain surplus areas would aggrevate exchange problems in Allied and other non-Cf;mmunist areas, and would represent a fairly significant loss in quantitative term if Turkish atpectations for oontinued high level grain production are realized., On the other handt Egypt nav imports frm 500i,C00 to 1 illio. tots of grain annually and a loss of the rxtire Near and Middle Dast area would eliminate this drain o Fr(W World grain supplies? S-EX-R-E-1 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 SAMMY WORM= 40 Ittap .-Aloomt 9 pent of the world.11a exportable supply a 4 million tons of rice le Ooduced in the Near and Middle Eat$ chiefly Egypt? The chief importers of. Egyptimn rice have been india9 Ceylon,; and NblayaQ These eauntries howevare have tem importing only about 10 percent of their total We imports frinA te.Dear and Middle Eastc, The 'loss of thi$ area would tend to increase the dependence f')f impttrting countries on dollar sculves of erain ?thus aggravating their exchang problema, Tie gvantity Involved uuuld hotbe difficult to uake supply-mIteN, in the termt ther gralte from such sources as the OS and CrAnada,, No c61:intry outside Vat? :Far East and r:autla A:Au would be. :,-ieriously af6. Lthv Near an4 Middle East rice, 5, Tobaf= - The tobacco surOlus producime nountries of the Near and Middle East of which Turkey ,is 4y far?the m&A importantl, produce about 10 pert of the vor1Ws taporte of tobacco, Distribution of Turkish totaceois :1,ot commntrated in any me lou.itry or geographdo group of eountries? Mgt US is dependent m Turkish ,,toloaeo from the standpoint of its blend qualities and for that reasov it rcTarded as .canast essential bv tobaccowoctuct manufacturer-49Q, There ie no mo y 4ependenca 0244e other countries of the 1T60 World on T,arkieh tobacco eweepti, aa the case. of the US,0 for quality reasonb,i Althouch the lose of the near Dt volAd inerease the depondenae of suCh eatzttries on dollar' soureekt quantitatively, lev.:0;t6, the loss of the TurRish soures.of supply Ilculd be of riwr hnportancoo .? 3 -, Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 * Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 'SECURITY INFORMATION N1E-56 - NEAR AND MIDDLE EAST Appendix 1 - Extra Long Staple Cotton Appendix 2 - Opiam Appendix 3 - Grains Other than Rice Appendix 4 Rice Appendix 5 - Tobacco Washingtono Cc 14 March 1952 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 2' Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 SECRET Security Info tion Appendin 1 THE NEAR AND MIDDLE EAST Extra Long Staple Cotton Although extra lung staple cotton (1 31e and over) constitutes only about 3 pare nt of total world cotton production, it is of great importance for certain textile requirements such as high speed machine sewing thread balloon Byrd, typewriter and aeroplane cloth; and fine apparel, organdy, voiles and laces. with a few borderline exceptions, shorter staples cannot be substituted. Aiso, textile machines designed for the processing of extra long staple varieties cannot readily be adapted to the use of shorter fibers. Extra long staple cotton production is concentrated in five countries, Egypt, the Sudan, Ferns the United States, and the Nest Indies. Egypt produces substantially more than 11 other countries, and together with the Sudan, produces over 90 percent of the total world supply of about 230,000 metric tons. United States D endenoe on the Near and Uiddle East. Extra long staples play only a very minor role in the United States cotton economy. The textile industry in the United States is geared primarily to the use of domestically produced short, medium and long staples. United States production of extra long staples during the last ten years has averaged less than 7,000 metric tons. Imports during the last four years have averaged less than 25,000 tons. The United States is capable of producing its own supply of extra long staples. In Arizona and adjoining areas in Texas and New mimic? there are both the irrigated land and the long growing season necessary for the production of extra long staple varieties. With the necessary price incen? tives the United States requirement of extra long staples couldprobably be met by domestic productien. SECRET Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 SECRET Security Information Appendix 1 - 2 - no United States stockpile objective is 90703 metro tons of extra long staples to be ttained by 30 June, 19540 This is oonsidored mafficient to supply all critical needs until domestic, production can be stimulated sufficiently to supply the minimom needs of the United States? The first acquisition.for'the stockpile was ulnae in February 19510 As of February 14, 1952 there were 17?687 metric tons in storage ? In addition, 15,533 metric tons have been contracted for frmn Egypt and are due for delivery. prior to August 19520 Another 30400 tons will be purchased for the stockpile by the CCC from the'Uo So 1951-52 crop It is estimated, therefore, that a total of 366eo metric tons, or 40 percent of the objective, will be stockpiled 5.3 of Aligust?ls 19326 Allied Dependence on. the Middle East? The United Kingdom imports over 80,000 metric tons of extra long staple cotton each year from the Middle Emste This represents about 40 percent of. the total production, in the reae Other NATO countries together import 25,000 tons? Since neither the United Kingdom or the other NATO countries have areas suitable for the growing of long staple varieties and since much of its textile machinery is adapted to this type and could not readily be utilised for other lengths or other fibers, it follows that the NATO countries, excluding the United States, would be seriously inconvenionoed if the Middle East should be lost to them as a source, of mapplye The United Kingdom would suffer the most if the Middle East source were lost for a long period? It would result in a paralysis of the fine cotton spinn5ng? industry Although the United Kingdom is one of the most stockpile oonscious countries in the world it would be virtually impossible for it to store a supply of extra staples sufficient to meet an emergency? The United Kingdam,s stockpile objective varies, naturally, according to world oonditionsr It is believed, that it normally tries to maintain a supply of extra staples sufficient for 6 to 12 month operations? SECRET Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 SECRET Appendix .1 Security Information' 7,7 61; Although extra staple lengtha conetitute only about 20 percent of the United aingdomes tot 1 cotton conaumptions the percentage which extra eteploo is of total cotton textile exports is certainly much larger. The extra etapies, therefore, are an important source of foreign exchange? Extre staples are most important in the manufacture of high quality cotton goodes The high quality lines are the only ones in which the United Xingdom can compete price-wise on the uorld market. Although much of thie high quality cotton merchandise is sold in Australia and New Zealand, Canada and the United States are important dollar markets for such geode at the present tis e? Although statistical proof is not available, it is not believed that the loss of tile-bre staples would significantly affect the ability of the United Kingdom to earn dollar exchange. Fine woolen goods are more important as dollar earners than are five cotton goods. Other Don-Communist Area p!Rendenee on Middle Easts In this group of countries, India is the only large purchaser of extra long staples from the Middle East. Indian imports average round 514000 tone each year? Although this is about one-fifth of Indiats total cotton imports and is a significant portions it is a much smaller portion of their total cotton coneumption and the loss of the Middle East source might not be a serious handicap to the Indian textile industry? Table I shows the average exports of extra long staples from the Middle East, by destination, during the lest four yours? Conclusion The principal uses of extra long staples are for high speed machine sewing thread and for balloon, Byrd, typewriter and aeroplane cloth. Demand for these special items is usually atimulated by ernament program. Substitute fibers are generally not considered suitables For thread, in particular, synthetic fibers do not Stand up under the high temperatures gezerated in high speed machine slowing The United States apparently would, after some seasons, be capable of producing its own requirements of extra long staples. Even under the most favorable conditions. however, United States domestic= production could not SECRET Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ? Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 SECRET App orAd ir I ? Security information he stimulated to the extent that any Agnificant surplus would bo available to'supply United States! Allioso in order to attain such an objective, production in tho United States would have to be stimulated to heights never heretofore attained,' Poma with price incentives and appeals to patriotimn, production of extra staples in tho United States never exceeded 16,000 teas in apy one yrq It appears* therefore, that since the ddle East ia the only source of u eubstantial supply of extra staples, the loos of this area would seriously inconvenience our NATO allies, particularly the United Kingdom,: After a ? year or so the fine spinning cotton industry would probably be at ti stand- still for luck of further stockpile supplieso SECRET ?ScriMPIRIS9211711.11r. Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 * Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 SECRET Appendix 1 Table 1. -Cotton, EMtra Long Staples EaTerts from the Near and Middle East by Country of Origin and -Area of Destination 1111?0361221:1111019111{.02111SMIERO DESTINATION 74.?biziraiint.--12arawatetimallatal- DUPL. AND THE SUDAN '14:e 2 United States 0 0 0 0 0 0 0 e ? 8 220'727 2 10.0 2 2 United Kingdom. . . . ? ? 0 0 t % 82,955 36.5 2 Other HATO: 2 2 2 6 6 0 4 6 0 0: 14,091 2 6.2 2 Italy . . ? ? ? . ? 4 0 e 0 0 11,591 5.1 2 Total Other NATO. . . . .2 25,682 11.3 2 Other Allies: 2 Japan 0 0 0 ? . ? . ? ? 0 8 2,045 0.9 2 Germany Zji ? ? .0 ?0 0; 7,273 3.2 Other Non-Communist: 2 Svitzerland . ? . .2 5,227 2.3 2 2 India . . ? . . .2 54,091 2 23.8 ?VaRtrosateimentatmeeeemeout, Total Other Non-Cceasunist 59,318 26.1 Soviet Orbit: 2 RUOSiao 0000000000 0: 1.0,455 4.6 Eastern Europe. 0 1,818 0.8 Total Soviet Orbit. .2 12,2 -5.4 : Unspec ified . . . . . . . . . .: 25,227 6.6 : : Torms 6 6 0 0 0 0 5 0 0 0 0 02 227,500 2 100.0 2/ Marketing 'par beginning September 1. 2/ Proportion to Nester:: Germany valknoini. sEPRN`r Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Appendix 2 - PEP= 'Security InformatiOn NE WEAR UM MIDDLE EAST slipalz 7 Total woTld production of mu opt= before World War XX we o1_,%tly , over 1,000'Inetric tons. Of this aMount, the countries of the Near am& Middle East produced about 15 percent. Wormal postwar worIE production appears to have been about 800 tone annually. HOwever, cultivation e the, opium poppy is so Subject to the hazards of nature and so entangled with politica?actersthatwide fluctuations in the volt m of world pro- _ , duction occur from year to year. Xn the face of the added factor of incomplete statistics aa ,opium in all producing countries, it is meanine- less to speak of c7averago annual production" in any country. In 1950 Turkey and Iran exportd. about 412 tons, or 65 percent of the wor/d7s exportable supply of approximately 637 metric tons of opium. Most of these exports want to the United States, with smaller amounts to , . the United Kingdom, BaXgium:and Italy. 2.1112a-?igka-P2Mq2D2P On the 11,9ELIMILIANALIkat, The United States is currently depending entirely on the Fear and Middle East for a necessary up1y Of. opium. Althou8b the United States / / impel-tad a wall amount ::of optun from Algoslavia in each of the three Y.uare 1947-.49, Turkey and Iran were the only United States suppliers la ? 1950. India has not been a United States supplier since 1944. The opium stockpile objective of 127 Metric tons is scheduled to be ? colligated by 30 June 1954. Aloweveri, because of tight supply and the difficUltykin procurement, it is questionable if that deadline can be of met. Fros00 June 1951 to 31 December 1951 the 6.6 Metric ton accuMUlation raieed the percent of stockpile accumulation from 23.6 to 28.8 percent of the total objectiVe.. The amount scheduled for delivery by 31ecember 1951 would have increased inventories to 30.1 percept of the total:Ajeetive had it been ddlivered./,Ohe amount scheduled for delivery 30 June 1952 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 &Og. Appendix 2 will increase stockpile inventories to 31.7 percent of the total objective.. Although etocks plannekfor delivery at various dates between the present time and the target date indicate a 96.4 percent fulfilment, scheduling of deliveries beyond 30 June 1952 has not been completed. This indicates ? that until more deliveries can be scheduled the accumulation of opium_ beyond mid-summer 1952 will remain at 31,7 percent of the totaLobjective. Allied Dependence on Near and Middle East OVour,allies, Belgium of Near East-produced opium. Belgium and Italy obtained all their known imports Italy and Western Germany are important purchasers from this area in 1950. The Netherlands and Denmark also obtained a amen but significant portion of their total imports from. the Near East. Other Non:-Communist Area Dependence on Near and Middle East ' ? Switterland was the only other non-Communist importer of opium. Although Switzerland obtained over 60.percentof its supply from Turkey in 1950 its total ,imports were not more than about 7 metric tons: The attached Table 1 shown the exports of raw opium for the year 7$950 from Turkey, Iran and Afghanistan to the chief importing countries of the world. Conclusion Under' current conditions the United States is depending completely upon Turkey and Iran for its supply of raw opium TO a lesser extent t1 mcetofouralliesinWenternEuropearealso*pendent on the same source. The United Kingdom/, however buys over 90 percent of its opium .from India Since Turkey ,and Iran each supplied about one-half of the United States imports in 1950 it appears that the loss of either or both these countries would result in sharp curtailment in the supply for the United States The seriaasness of the resultant situation would depend to a large extent on the adequacy of the United States stockpile and the - . ? ? ? . rapidity with which alternate sources of supply could be deveaoped. The wide yearly fluctuation in world production of opium suggests th ? , - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - 3 - A/Tendix 2 SECRET . alternate sources of supply could be developed rapidly if growers are offered the proper indmeinente. The wide range of climatic conditions under whiich tka opium poppy thrives suggests that the United States and her aUlee could pro. duce domestically the minimum amourt of opium required for the medioinai neos of the Free World. To attain such a level of prochrztion rapidly, however, would require a comiderablo amount of preliminary planning. Price incentivaa' to growers would be Pecossary. With a reasonable amount of cooperation betwen the Government and the growers, however, the United States and its allios ociARL, by growing their own poppies, be assured of a supply of opium even if Twky an Iran were lost as a souxce of supply. Opium is composed cf about 25 alkaloids of which four are useful in medicine . However, only two alkaloids, mornhine and codeine, are important. Raw gam opium yields about 11 percent of morphine and one pereant of codeine by weight. Morphine has two kv..jor uses. :rst, it is a pain killer ad is used as an analgesia and as an inducer of sleep. Secondly, it is the product from which codeine is methylated, Approx=ately 80 percent of all morphine iv used in the farm of codeine and other narcotic derivatives. Codeine has several uses since it contains 10 to 15 percent morpUna it retains most of the pain-killinr: properties of morphine but It does not hew the sleep inducing efTects. Codeine is used widely in the treatmen'i; of ambulatory patients since it can be self-administered. It is used to treat post-operative cases to prevent coughing. It is also an ingredient in medicines used in the control of cough, and is used in patrol action as a prevertativemeasure aganst coughing, which may disclose one's rosition. Experiments have not as yet produced entirely satisfactory substitutes for morphine and codeine. A.dozen synthetic narcotic drugs are now subject to international control; but only two? methadone and dromoran, are of sig- nificant importance. Dromoran closely resembles morphine In. its p!4nkilhing properties but is highly addicting. This synthetic is available in unlimited Plzkuit Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - 4 - Appandix 31.:C}IFT ? supplyo and has been standardized far use 1r. the armed forces. Although another synthetic called mtharlone (called amadone by the Germans who dovered it dwing World War II) hasmr.rdicinal properties .similer to those of , codeine in Ito effect on the control of cough ttle? medical profession has not found it to be as reliable as cc4eine in the treatment of the various ills ?,for which codeine is so universally effective. Fairly good 'results have been obtained from Owerimental use of these drugs with service personnel; but. is must be remembered that these mi.:Liter's' - personnel do not represerat t fair sample of .the pepuDation of the United States. There does not exist sufficie t evidence to indicate 'Ghat synthetic sub- stitute narcotics erevzttLable to replace morphine and, codeine in medical uses, in the United State: at the present time. .Although much experimental work is being dope to develop satisfactory substitutes, it cannot be e.csumed that substitutes will far the net few years, at leatit-, lessen the need for . raw opium. SEAM Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - 5 - SECRET Appendix 2 Table 1. .Rftu. Opium: ExpaAs from the Near and Middle .Fient L,ountry of Oripin and Area of Destination; 1950 .DESTINATION ? or ion ; 1114/Catet...11fitrallUl ijaaa&10= MOMM*PiMalb...".N".1?010211?MGPON- Un#cd Stater:: . 0 . . EA 4 y t 1644652 : &-Ulazzon- 156 009 : ? 4 : 320,661 United Kingdam. . . . . . t 7,389 7,389 Other NATO: : : . Ftc:-Lnce. 0 0 ES 0, ED 4 0 2 482 482 -Belgium e . 0 0 0 0 a 0 : 7,600 : 16,687 : - : 24,267 10,000 : 3,537 Netherlando . . . . . . : 1,200 Denmark : 145 : : 865 Total Other NATOe 0 : 20,001 : 20,369 7 - : /0,370 Other Allies: : : : Western Gertany fGS G. : 8,996 : 2,117 : - : 11,113 Other Non4oElmunist: : : t : Switzerland, . . . . : 4,793 2 - : - 2 4,793 Soviet Orbit: : UCSOSOR., .) 0 0 0 0.0 : 28,000 : 28,000 Czechoslavakia. 9 9 Unspecified 160 : 160 2 2 ',MAL e . 206,000 178,495 : 28,000 : 4X2,495 2,/ French ad United States Zone. Source: Permanent Central Opium licard. SECRET Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 E0RET SECURITY INFORAATION Appendix 3 , NEAR AND MIDDLE EAST -Grains Other Than Rice Significance of Near andnMiddl East in World Supply. The Near and Middle East has been a somewhat sporadic and relatively unimportant exporter of grain.. In the paot, barley has been the chief export grain of this area, though in some years wheat has been exported in significant quantities. Traq is the main exporter of barley and accounted for, 81 percent. of the 400,000 metric tons of barley exported from the Near East in 1949. However, Iran, Turkey, Syria, Lebanon, Jordan, and Egypt have all' exportedsome, grain in various Years, though none, including Iraq, has been a condistently ? dependable source for sizcable amounts. In 1949, about 63 percent (206,000 metric tons) of Iraq barley exports (for which the destination is known) went to the 'UK and other Western European countries,, and most of the rest went to Japan and India. Probably the most important development in the, Fear and Middle East grain ? situation, however, was the excellent 1951 grain crOp in Turkey. That county( has not exported significant quantities of grain, in recent years, and has, in fact, been on an import basis in several years. But, according to recent Turkish estimates, about 750,000 tons of grain, mostly wheat, will be available for export from the 1951 crops. Substantial quantities have already beta.' sold, chiefly to Syria, France, West Germany, and other Western European countries. Actual exports. have been slow inasmuch as Turkey's transportation and grain handling facilities are not geared to the movement of large quantities of grain, and the high price of Turkish graln has restricted sales somewhat, -However, recent information indicates that some improvement in the grain shipping situation is taking place and that importers are continuing to buy in spite of the price. SeedingG for 195? are very large and condition, reports are favorable thus far. TurkeY is clearly determined to increase its grain acreage and production, is? receiving US aid to that end, and it appears quite possible that Turkey will become an exporting nation of some consequence. United States Dependence on Near and Middle East. The United States,' itaelf an exporter of grain, is not at all dependent on the Near and Middle East source of wheat and barley. Allied DePendance in Near and. Middle East. The. United Kingdom, Denmark, Netherlands, Ytelgium, and. Japan have been among the principal buyers of Iraq's barlt4y. Western European countries are expected to buy thg.i bur, of Turky's grain in 1952, and in the future, if Turkey c.Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 S'.17; CRET 3r/GO:1:Y DboniETION Appendix 1 dontiAm, .1s an oxprter, In recent yearsy ;ailed imports from the near and 14,00,1i, :ant have onounted to only about 1 percent of the total of such importsT with conoid8rab10 va,laticm as botueen differant years, The chief importame of iler:r aid itdcUe Mast grain to cur Allies in the past i-taz been the fact that it could be obtained for exchange other than dollars? If Turkey achieves regular exps e around 1 million tons in I:ht--; near futuToc, It is possible that cur Western DaEopean Allics might expect to Inport neaxly that quantity from the Near end 2,ant area a uthole, This vould be about 5 percent fit thgtr grain inmrts, Slloh a quantity licidtd be inNrtant, arain chiefly trzm the exthance Ttandpoint, If the arca mire l'e)st the grain could (in nost years, at la-lst) be replaed? but largely fron &liars sources, other pzedmrilmaptArce Dutndengv in t4e_neax?: and laddie /32 the past? the dependence of other morpConnanist areas on near and taddlk 2ast Frain has boon almost negligiblo, e%cept that some ccuntrieo in the near and Mldlo at arca depend fa1r1y hezW4y on experts from their neighbors during co tin years ? If Turkey delmlopo as a source this dependence may incleasy, and e.Ycher importing countries such an India nay endeaTFor to build up a larce trade,. Zapt has becono an imgcrtant inglorter in recent yaar (500,000 to 3 million tons annually) and has been depending on a uicks variety of eimL.-cee of suplAies0 coPe2r49113 Er.sed on historical evidence2, the loss of th.c_ near and !addle Eni,..t as a scurce of crain xseuld net be of Ercat imporcet, the chief cf('ect being an incresoing depen&r.ce on the pert of ini,orting countries on dollar SOU=86 oe grain but on a relatively small scale,, The possible encrnnve of Turkey as an ezpottsr of rrain (motly uhsat) in a quantity appreaching 1 million tons an=a1:3;7 uo12.10. alter the siraificanco of the cl'ea greatly() Eoueverg, the nignificance uould till hinge 1Ltrgely on the exchange problem, as the Turkish main eculd iD most no:maI years, be replaced frcm dollar gources, though the quantity if, regularly available? is larEe envugh to be'regarded as impmtant, and night -ands; some cirevastanees represent a nubs1antia :3Less to the Free UcTld asi& fl*xl exchange consi&Yrations. Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved ForRelea-S-e-2-6/0-1-9.:-blA-RDP79R01012A001700030005-7 (yrA pro% gm... SECURITY INFORMATION Appendix Li 1TLAR .AND IiITILLE t12 .6 ' leame of Near and Middle Dist In Wrid's.au'or117 The rice aurplus produoing wuntries of?the Near and /addle East - Egypt, 'rano and Ircq - export 361i,000 trts or about 9 pareent of the worlfrn 7.,Toert- able .supply of 4 million tons of nilJed rim, Of tire exprts from theee thrva countries in 1949g about 227,060 tons or 66 Pemento vent to countries in th2 Far East,. the chief anTOTUTS have to ndiz Ceylon and L'la7ga, ? Egypt is aotually thoay country in the Near East wit-a a significant suppIy af exportable -Hoe, Egypt expc)rted about 343,000 nttrie tons in 1949 .or 95 pertent tf all tht:I rice exported from t7f, Near and Niddlo East? The Near and laddlr, East p.seduee allAon.mitrie tons ar only about proont of the total world ri output of about 150 million metric.; ton a of rfough riee annually) United.:', ;es P9rhndenoe on Near .znd Hidqe Easi, The United. -ltatetl itself an exoorter of Tice on a relatively small scaliic; is not at all dependant on the Nkiar Last source, Anied Darendenoe on Far East, of aur Allies is greaAly dspendent foil the Neat- East as a source of rieeo Other N' -Cornunist flrea Derondence on Near anti Middle East, In th.5s group InJias, Ceylon, and. Nalayct a2'e the printipc1 buyers of Egyptian rioe, These three ootl4ries Look u'Lx.rut:?012,0100 tans or 59'peroentl, of ,,c,?/pt%s exportable supply of roti in 1949c. Thin?, llowverp :if:Anted to only about 10 percent cf:4' the tatal rieo,?impDrts'ef,f the threo i7;euntries, Curipared with th.. -iripart5 of other fmd raths. ule isav3rts-of .int C1 India, Ceylon,and aya frA the &ar East axe 1jeaT1 Barring a Cormunist 'invasionofSQutheast loss of the Near azd Middie Last org. mc.ra rLvtin.larily,. of Egyptr, would probably cause eni7 nominal. hardship in these oeunt-TLes,, the valUe at Near East tatj?lonr, ad Nalava stens winarily fn the foot that it 'is a mrk4olla-xL sly,,,roo ofsulppiy.f, .Thrig as the risre supvlik)zt of pmn/and south_ e4-;:tst :voia rerialls ilabh; to t3142? 11611,411V12/11 Sidi; 115.rid.-5,10 of the Trif-,,s eupply ? (T)f the Bear and 11)deJA) 1k:A donid beNoffsr,t, by impoms of rsia 1!...-another scurces or by sastitution of 1,,thr foodrrainso ? Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 4 - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 F- ONFIDEJ\TTTAL? SFOURITY INCRNITION ith ? Appendix .:Cary:11 1,13 7:kat record di to have .5.raTorted any 1tian 194% she .1,t4s 04, uftrpt best oast-J.2cm in 1950 and 1.951, Thussia rice from Iran althr.rurrh Ilarle ? is recorded ? ir.i 194'3. Ebrilit,, "MPorte4170, q.'nte'Pea into an-agraerzent tc.:: supply 1.t's I. with sone, 40$000 tons of ric-0 in 3.951, !Lae attached Table 1 i3hows the ries cxts in ra frori ET/745 Iran mid Iraqo and totals ?fror the Vicar and Middle Cast to ths equef :npoting areas of the wer:1d, CcI,19:11.PiPre Frrin the stard-roint ar.total-ric sa,ITypli ,s, lo-ss csir the Near?Eaut suppiiia3 1YOUld not SCricuisly affect .my of the ric,.e. iriperting ccruntries as .1.onc, .1.hin1and Cot,hat Aja rerr4111S non.-Corraraist althaug,h wordd requIre noym3. ad' tistrients and iblaya? Attaehrzento 'the programlnr of ricio inpf.xts, particularly in Luliat Ce- ? CONFIDENTIAL Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 at 4 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ? Table 174-1, ta By Countrias ..11 and Are of tinatit)n. CONFii5ENTIAL. '3EctifiriTy' EiFF,R1 L'TION Appendix 35:,atiraidoz. . r e Iraq Thausands Iran Total of raetrit Vatc, e,mntriea (1,, Other A:Ilies OtherNcn.Camunist Etaat , tkar and laddlEr faat StritZeriarld ? Finiand 4 9 41 Austraa 4 0 Ct 1-0,70441aVia 0 9 Other. emntries Total Q airebaneer.....e.? 9 ,9 G ? ? el . 4, o 9 4, 9 9 9.. 9 9 4 0 0 0 0 . 4 4) 9 0 - , 't 2 '7, 0 4 1003 .4 9,6 186 g 6.2 .2. 405 2 ?'; 45 62?7 02 1,,O L2 16?3 2 1.0,5 226,7 9 6,2 4o5 62,7 360te CONFIDENTIAtil Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - ? Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 - SECUTiff-Y rnFo1TIon roT)NFIDENTIATO 11E4T .CPT _ TCB.A.COU Appendix 5 The toboc= surnlus re,aducinc clmntries of the Vet analUddie East Turkey. and Syria - exp:ITt about 23 percent of the worlds experts of tobacco? Turkey is the chief exportinc ocuntry0 aocauntinr for 97 percent of the 820459 mtrie tcns of tebacco exported frau the Near and. Middle Last in 1949. Turkish tobaCco e,n:ers many trr.f.is ehannels and its distribution is not ooncentrated in any on country or Foographio proup of countries, The 190 exports to Germany (200336 retrle tuns) represent the largest expzrt t6 any one country, Since this fze: represents (-ago:tts to aU f Germnyt w-Ithout ihdivating breakdown by zone,:,0 0.:(,:lys. of the inportanceof TurkIsh tobacco to 1.!8sterri Germny alone is not prattical4 and Middle It tobacco exparts nade up 4404 percent of total imports to all of Gerwny in 19490 Of the total e`le.J.,x and Middle East tobacco exwrted in 1949s. 22 rnTeent _ vent to the United Stv.tes0 peroont te or alliesv 1 percent to the non- Conr-mnist countries (Includes '"%5 percent which VILJ exported to Near and Middle azst ecoitntriev)* 25 pi,rrste.nt to Ciermanyz 5,9 percent to soviet Crbit co-antrissi? and 3,,9 pereent to othri.r cc;untries? Near and Middle Ulst tobacco made up 10 percent of all toknece, impz-irted by the United States4 4iies and other non- Corrunist countries, The hear and r.46,die Last eountries produced ln 1949 less than 3 pement of the total world prAvetIr of tAaccos whIch wri.s about 3 nillion metric tons, United f;tetv,,,,ep (iclt., The Tiratej '7tfltc,sr a larre exporter of toWetwIr is dependent the ii.ear and 14..tadI from the standpoint of the blend 7lualities of Turkish tobacco, `; aa,tt amat all NATO cau%tries import some tobaloo frail the Nap and Middle East. Turkish tobaC;oo made up 6 perent of the tobacte imports uf the United Kincdom in. 1949, Imports of Turkia-h tobaeco ace :panted for 14 percent of all other NATO c-cuntries4 tcbaocc: import:6, The pottery) of tobacco distribution front the Near rsatI of our allies trimi t.d.s soramc4 of supp170 exeoptv, as in the ease of the U 'ted States, flavor et rost tal-Acee products appears to have n owner appeal when the proper "Turkish Blend" is added, CONFIDENTIAV Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 tONFAiNTIAL1 aC-RET SEGURITY 10011/ITION Appertdix 5 Other NonXonnunist Area Denendengy on. the Nearjn.nd Riddle East, - Neat and. r11&U Fat tobacco make up? percent of the tobacco vrts of .other non..Conntuarit countries in Western Europe. in 1949 The annunt shipped to south American countries unS less than one percent of their tobacco imports,' -Only in the.:iddle Eas t itself did tobacco from Syria and Turkey .amount to, a- substantial portion0, 35 percent, of the total amount imported? The attached Table. 1 shows tobacco exports in 1949 fromairkey and Syria to the chief importing areas of geographical and political affiliation uith totals and appropriate subtotals Conciusion, Since Near and Middle East tobacco makes up not more than 10 percent of the tobacco consumed in the United States, its Allies, and other non.Communist countries, the lOss of this source would not naterially reduce the available. ? supply of tobacco to these .countries? Except .for the psychological value which It adds to the utilization of tobaCco products, the loss of the Turkish tobacco supPly uould not resrat in a serious tobacco loss to the free world? ?Attachmento bONYMENTTAf " ? Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7 ? t: CONFIDENTIAL -C r szcorrify Table I, DPar and Paddle it Tobaii!co Lxportst 1949, aESTIDArIoN &MOE Turk qyri ? Appeildix 5 T944 ,?. 1 jpiied Stateo ? . . , . . . ,., ?:?,' 16 ? 692 t 1,422 :,, 18j14 , , 41liell ? ',. ; . S,L4,6 ft '4K ? ,,,,,v t 8 g 461 17v522 ., "4? i,875 ? , 2%968 368 263% 26336 2. 2 g 3,241 . a...' t. 4189 .. . . 14.5 ; 5 ; 150 9g 010 21 617 t: 9?627 . ,,, ? 4 lklited. Kinedam , -, 0 0 0 Othe'r VATO Cc,:antrie8 . 0 . Tot5,I Allies 0 ;-. 1 0 ? (t118,,r. Ec.:,,,t;410,020.4.st 0 , , :;. g . . 4 1;:?if2.Stel.'n E;t1r2',?pe. a., :3 C 0 0 , 1. 2 f:;o1.11-a Amrica - ? . .. , F C . 4: 4'? Total Other non.etnnuniet 1 2 : 3oviet Oxioi?L? ?:, ,.? ,,, ,... ? , . ,,, , :-?? Gernapy - , D ?,:. 0 ?F .b fj l) 0 4-5 .',, '.t . 2 (AheY ; 41,83) 20006 A 30 2 200:46 g g g 2 Total Ail :17,,xpor.Z.s :} 4- c' 4' 41 0 '. 795923 Z 2 k 536 t 821-,4(59 Intray,it.ma1 (Midal0 20.St ) .0 1, ,: ,..- ,. ,? 1....._ 54,?,Z..._...._..4. ...?.._., ..,&i. . . ..r...........6J.P9 Tt.iTacportse Na ,r 7\"st 2 C 745;299 s:971 -CONFIDENTIAfi, 76,270 - Declassified and Approved For Release 2012/09/19: CIA-RDP79R01012A001700030005-7