Evening star., 1943-11-14
Amazon Rubber Plan Falls Short

- AO~AA - S~AAO AA
that he can acquire for Goodyear his
share Of Brazil's 10000 tons. fabricate it
and sell it on the world market-partly
to the United States-at high prices.
Goodyear of Brazil is said to have in
creased its manufacturing business AZ
times during the past two years.
An important instrumentality in the
whole rubber setup is the Banco de
Credito de Borracha Oiterally, the Bank
of Rubber Credit, which was created
with total capital Of $7,500, 900, provided
so per cent by Brazil and 40 per cent by
the United States On its operations
the bank makes a profit of IL per cent,
the total up to now being about $500 900,
which Is to 60 to the Brazilian and
United States governments. Part of
Camargo's charge is that too little OF
the fixed price of rubber-45 cents q
pound-goes to the actual Taper, and
too much to the Banco de Borracha for
washing the rubber and for other
charges, which are in addition to the II
per cent. According to Camargo the
Taper actually gets only Is cents.
If the price were raised to so cents
then the worker in the jungle would get
enough Of the increase to earn a living.
AS proof OF his charge, Camargo points
out that in areas Of high rubber yield
80 per cent OF the tappers are at work.
This is In the Acre territory, where the
trees occur at more frequent intervals
and are more easily reached. In con-
trast. on the lower Amazon only 20 per
cent OF the trees are being tapped. On
the Acre a man can produce TOO kilos
year, while on the lower Amazon the
average is $50 kilos. Because they can
not live on rubber tapping the workers
on the lower Amazon have gone into
other fields.
Criticism Is Resented.
Criticism is resented here. Boucas, in
talk to newspapermen in Rio, urged
us to write about what was good in the
program. Not long after Camargo last
August predicted a yield for Brazil of
not more than 5000 tons, Boubas, In a
letter published in all the papers Of
Brazil, declared that any one who dis
cussed rubber should 60 to jail AS a
nth columnist. There Is a strict censor
ship here and Camargo took a big risk
in speaking as frankly as he did. Before
the arrival of the American newspaper
men it was plainly intimated to him
that he would be ill-advised to take a
critical tack during our stay.
In the course of two or three talks
he made to us Allen indicated that the
mistakes of the past were being cor
rected and that the whole operation was
being scaled down. This view was con-
tradicted by merchants and others in
the valley. Agesilau de Araujo is head
OF hrm In Manaus with widespread
interests throughout the Amazon. He
owns several million acres of rubber
land. In a statement made to me he
complained particularly against the con-
slant shift Of executives, each one PROM
Using to accept recommendations from
those with long knowledge of local con-
ditions and each one ignoring these
recommendations.
Araujo said that he was criticized as
pessimist when he predicted an in
crease in production for 43 only 80 per
cent over ~. On the basis of figures
available for the first six months he has
revised this downward to 10 per cent.
Araujo was one of the old established
merchants who were to have been ig-
nored in the original rubber project. He
has found it difficult to get many Of the
supplies necessary for the rubber tappers.
But he is in business still throughout
the valley and will be in business long
after the present furor has subsidized,
Cost Set at $15o, 900.
How much it has all cost is matter
for conjecture. It depends on what you
include in the total-how many of the
various projects that are only remotely
related to rubber production. You hear
various figures here in the valley-any-
where up to $4,000 900. II the cost of
various secondary activities is ruled out.
then the final figure may not seem too
large.
Rubber is, of course, only one item
IN the list OF supplies coming from Brazil
for the United Nations war effort. There
are others far more vital to the war. One
OF them is tantalite, large proportion
Of which comes from Brazil. Other In
dispensable items are block mica; beryl
and quartz crystals.
And beyond this Is the cooperation
that Brazil has given in furnishing bases
and now In training and an,,inYin1