The Acting Secretary of
State to the Embassy in Cuba
CONFIDENTIAL
WASHINGTON,
February 3, 1953.
Subject:
Review of United States
Interagency Discussions on Kenaf.
A‑268. Reference Embassy's Telegram No. 342,
January 16, 1953.' The following is a review of recent United States
interagency discussions on kenaf:
(1) In late
November 1952 the Munitions Board Interdepartmental Fibers Committee reviewed
the kenaf fiber purchase program for 1952 and considered the question of
whether the program should be continued in the future. The following
recommendations were adopted unanimously and subsequently accepted by the
Munitions Board:
(a) That the MB request the Department of
Agriculture to continue, perhaps in modified form, a kenaf fiber production
program. The Committee recognizes that in the present circumstances the fiber
purchase goal need not be as large as the 1952 goal of 15 million pounds;
perhaps a reduction of one fourth to one half may be feasible. Suitable
modifications in the price schedule also appear desirable.
(b) That the Committee also recommends the
establishment, under the Defense Production Act,[2] of a research and
development project to study and develop kenaf fiber‑preparation
processes (mechanical decortication, chemical extraction, water‑retting,
or other means).
(2) However, the Defense Production Administration
(the agency which has responsibility for certifying the essentiality of the
kenaf fiber purchase program) concurred in recommendation (a) only on the
condition that the Committee adopt a resolution along the lines of (b). The DPA
representatives noted that CCC's 1951 and 1952 seed and fiber purchase programs
offered proof of the fact that kenaf can be grown successfully in a number of
western hemisphere countries. On the other hand, they believed that
comparatively little progress had been made toward the successful mechanization
of kenaf cultivation and fiber extraction. With jute again in a surplus
position, and likely to continue to be in ample supply in the foreseeable future,
the prospects of the western hemisphere's kenaf production becoming competitive
with jute are greatly reduced. The DPA representatives questioned that
continuation of a fiber purchase program for another year would contribute to
the solution of the problem of achieving economical production and extraction
methods. In their opinion much more could be accomplished by concentrating
resources on a machinery research and development project. Other agencies,
including State, agreed with the DPA officials as to the desirability of
establishing such a project and welcomed their proposal to sponsor the
undertaking. (In previous discussions the Committee had been given to
understand that the legislative authority for DPA to finance such an
undertaking was lacking.) On the other hand, they considered that one year's
operation did not offer a fair test of the value of the fiber purchase program.
They feared that by withdrawing at this time both the Government and the
growers might lose the benefit of the substantial investment which has been
made in kenaf and the knowledge which has been gained. Furthermore, they
considered that an extension of the fiber purchase program could contribute to
the solution of the problem by encouraging the utilization of existing facilities,
which are comparatively untried. They believed that by reducing the scale of
the program and by appropriate adjustments in prices, the cost of the fiber
program would be modest in comparison with the benefits which might be derived.
The DPA representatives then modified their position and assented to
continuation of a fiber purchase program in 1953 on the condition mentioned
above.
(3) Unfortunately when DPA began its plans for the
implementation of recommendation (b) it was found their legal authority to
finance this kind of a project was questionable. Consequently, they withdrew
their previous offer, and requested the Munitions Board to reopen the subject.
This development took place just before the time the Official Cuban Government
Commission on Kenaf visited Washington. (A copy of a memorandum of
conversation' on a meeting held with the Cuban Commission is being forwarded to
the Embassy.)
(4) In the past week two lines of action have been
started with a view to resolving this matter at the earliest possible date.
(i) Consultations are under way with the Technical
Cooperation Administration to see whether that agency can help finance 'a long
term project to develop improved bast fiber production processes. Since the
purpose of TCA is to assist governments through providing technical rather than
financial assistance, the major financing of such an undertaking would by
necessity have to come principally from the interested foreign governments.
(ii) An interdepartmental working group is
developing data on soft fiber supply and requirements based on full
mobilization. Justification for the continuation of a fiber purchase program in
1953 will largely depend on the results of this study. In this connection, it
should be noted that while kenaf may offer some promise as a bagging fiber for
western hemisphere countries which have soft‑fiber weaving facilities,
this consideration does not apply in respect to the United States. There is
practically no burlap‑weaving machinery in this country, and little
prospect that private interests will invest in such facilities. Government
financing of burlap‑weaving facilities is considered extremely unlikely.
Therefore, so far as U.S. strategic considerations are concerned, the need for
kenaf would depend in main on the position in soft fibers. There is some
possibility that kenaf may be of strategic value as an extender for hard fibers
but this is still conjectural.
(5) As matters now stand it seems very unlikely that
final action with respect to a kenaf fiber purchase program will be taken
before another 4 to 6 weeks.
The above is for the information of the Embassy
only. It is suggested that in replying to any inquiries on the status of the
United States Government kenaf development activities the Embassy may at its
discretion make use of the following information:
(i) Cuba's cooperation in fostering kenaf
cultivation has been very gratifying. It is considered that great progress has
been made from the agronomic standpoint. Although the disease problem has not
been entirely overcome, prospects for developing disease resistant strains
appear favorable.
(ii) Progress toward economical methods of
mechanization has been disappointing particularly in view of the considerable
sums of private capital which have been invested. Research and development in
kenaf harvesting and fiber extraction and processing machinery is needed. The
Technical Cooperation Administration has expressed the expectation of
continuing the Cooptrative Fiber Commission at about the present level. In
addition it is exploring the possibility of establishing a long term project to
develop improved bast fiber production processes.
(iii) The annual review of the strategic
significance of kenaf is under way, and should be completed in another 4 to 6
weeks. There is as yet no basis for predicting whether this review will provide
the necessary justification for the use of United States Government funds for
subsidizing kenaf fiber purchases in 1953. Consequently, assurances of
continuation of the fiber purchase program cannot be given at this time.
The Department will notify the Embassy as soon as
action on the kenaf fiber purchase program is finalized.
[1] Not printed (837.232/7‑1653).
[2] Reference is to Public Law 774, approved Sept.
8, 1950; for text, see 64 Stat. 799.
[3] Not printed.