Evening star., 1943-07-07
Mr.. JONES

Morris Rosenthal, assistant director
of BEW, which was received by us
January 81. 1912, confirming his
verbal recommendation of January
IS.
Notwithstanding the fact that all
RFC stockpile recommendations
were, by Executive Order of the
President, to ccme from WPB and
not from BEW. we started nego-
tiations January IS. and we're ad-
vised January % by the Netherlands
East Indies Trade Commissioner
that there was no quinine available
in Java for prompt delivery. but
we were offered 1000, 900 ounces, fol
shipment, 100000 ounces monthly
March through June. 1912.
We Immediately took the matter
mp with WPB, and were advised
that our quinine supply was COM
Portable. approximately 14,000, ,00(
ounces. or four years requirements
and that further stockpiling was
unnecessary.
More Quinine Ordered.
However, February 16 we received
another letter from Morris Rosen-
thai. recommending the purchase OF
100000 ounces from the Neither
lands East Indies I Immediately
conferred with Donald Nelson, and
on his verbal approval We ordered
the 100000 ounces for March and
April shipment, having been pre-
viously advised that there was no
quinine available for immediate
shipment.
February 26 we were advised by
the State Department that $500, 900
ounces of quinine in the bark could
be bought for prompt shipment from
Batavia. We made the purchase
within the hour and later the same
day bought an additional $685. 900
ounces from another source.
Batavia was occupied by the Japa-
nese 10 days later. and none Of the
quinine covered by this latter pur-
chase was delivered
The Fischer Project.
The project for the planting OF
cinchona trees in Costa Rica was
initiated by the Army through Col
A. F. Fischer. Mr.. Wallace states
that the project was proposed TO
BEW on August "a. 1912. The pro-
posal was known to the BEW at
least a full month before that date.
On April 3, l943. nine months later,
the BEW, after it had finally worked
out its plan of operations. first
asked RFC to establish credit for
the initiation of the Col. Fischer
project. and such credit was prompt
ly established.
This credit would have been estab-
ished many months earlier if the
BEW had acted promptly. The fact
is that BEW did not submit to RFC
even a tentative proposal until Oc-
tober 7. 1912 Our rely of October
10 did not, as Mr.. Wallace asserts
state the matter requires further
consideration" but advised that the
plan will receive prompt considera-
ton" The proposal submitted tc
RFC at that time involved the Or
ganization. under the auspices OF
BEW. of cooperative. nonproft
association. All financing and re-
sponsibility would rest upon RFC
BEW finally abandoned this plan
after the State Department had in
dicated that it could not approve
an arrangement under which the op-
Grafton of the United States Gov
ernment in a Latin American coun-
try would be concealed in an asso-
citation purporting to be a co-opera-
tive organization. Mr.. Wallace S
statement that the BEW's proposal
was objected to because it would not
be profitable is. therefore. false.
Cinchona Bark.
The BEW'S handling OF the pro-
curement of cinchona bark has been
vacillating as to policy and disor-
derly in administration. Despite
prior promptings by the WPB, RFC
and others interested, the BEW
failed to formulate any plans or is
sue a directive under which RFC
could act until June 10, 1912.
Mr.. Wallace implies that BEW
was not responsible for cinchons
bark procurement until February
25. l943, when his order No. S be-
came effective. BEW reiterated tc
us again and again after April l3
1912, that it was responsible for the
procurement of cinchona bark down
to the smallest detail.
r,nlicu Spolly hlicIoI t>1
the BEW directive of June 10, 1912
was abandoned by it in approx.
mately 80 days and a second policy
was established by BEW. During
the next 90-day period third policy
was established by BEW.
Confusion Caused.
The three policies overlapped anc
much confusion resulted. None OF
the plans recognized that the pro.
curement of cinchona bark, par.
ticularly in Latin America where
it was not we'll understood. re.
quires skilled and experienced han.
ding.
Those business firms whose back.
ground best qualified them to NEE
the problem were largely ignored by
BEW, and firms with little expert
ence which were called on by BEW
were not given competent guidanc,
by it. The third policy established
by BEW ignores entirely the posi-
bility of aid through private bust
ness and substitutes direct pur
chases in foreign countries by BEW
employees who are, in the main, in
experienced in this field.
In shifting from policy to policy
BEW has caused confusion and un
certainty among the suppliers O
bark in Latin America, several Latir
American governments and tn,
American importers. A very small
quantity of cinchona bark has beer
produced as a result of BEW's &C
tivities Notwithstanding the tim,
which has elapsed and the none,
which has been spent.
Acted Under WPB Directive.
The principal additional suppl,
of quinine made available to ou
armed forces since the fall - Javi
was procured through the splendit
services of the American Pharma
ceutical Association, financed b,
RFC acting under directive from