Evening star., 1943-07-06

Most of these materials Mr.. Wal
lace mentions were, on May 20,
1912, more than 13 months ago,
transferred by BEW to the Depart
ment of Agriculture. so that RFC
has had no responsibility concern
ing them since that time.
Mr.. Willace's charges concern
only 10 of these materials, although
RFC has dealt in "a sl1h commodi-
ties.
Mr. Wallace's statement about
quinine and cinchona bark. from
which quinine is produced, and
about the so-called Fischer project
is full of distortions, omissions and
inaccuracies.
Here are the facts:
QUININE.
August. l941. we bought 100000
ounces of quinine as recommended
by OPM. The next recommendation
to buy quinine came in letter from
Morris Rosenthal, assistant director
of BEW. which was received by us
January 81. 1912. We took
the matter up with WPB and were
advised that our quinine supply was
comfortable, pproximately 14,O00.-
ments, and that further stock piline
was unnecessary.
However. February l6 We received
another letter from Morris Rosen-
fho1 dino tho rlIrPbo 0f
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 2,5O0,OO0
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 665, 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 9. 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 tentative proposal until Oc-
tober 7, 1912 The proposal
submitted to RFC at that time in
volved the organization, under the
auspices of BEW. of a cooperative.
nonprofit association All financing
and responsibility 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 co-opera-
tive organization. Mr.. Wallaces 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 cinchona
bark procurement until February
Is, 1943. when his order No. 5 be-
came effective. BEW reiterated to
us again and again after April l3
1912, that it was responsible for the
| procurement of cinchona bark down
to the smallest detail
1 The policy finally established by