Evening star., 1947-09-14
Copra Exports
Help Filipinos
Islands War Ravaged
Economy on Road
to Recovery
Ru Gkunx4 iIlicn
By Stuart LiIIico

By Stuart LiIlieo
Americas increased supply of soap
In the past year has been an index
of the recovery of Philippine econo-
my since the islands liberation early
in 1S45. Soap is made from coconut
oil, for which the United States Is
dependent on the Philip
pines Soap sales here mean a sup.
ply of dollars for the Filipinos.
The Agriculture Department re.
Gently reported that Philippine ex-
ports of copra (the dried coconut
meat from which oil is later presseO
in the year ending June 30, 1947,
totaled 1,050,000 short tons. This
constituted q record for any l2-
month period in the islands his
tory.
At the same time copra prices
are the highest they have ever been.
In the producing areas growers are
getting from $94 to $l13 ton. Pre-
war prices ranged from $s5 to $50
a ton.
u. S. Gets 81 Per Cent
Under normal circumstances the
United States consumes about 80
per cent of the Philippine coconut
oil and copra output. Under inter-
national agreements now in effect,
however, we take only 81 per cent.
The rsst goes to meet Europe's food
needs.
In prewar years the United States
developed a wide range of uses for
coconut oil. 1t was, for instance,
an important ingredient in all types
of soap and many plastics, lubri-
cants, synthetic resins and rubber
AS by-products of soap
manufacture, industrialists obtained
glycerine and its many derivatives
protective coatings and
plasticizers among them.
Copra Is vital to Philippine econo-
my, since 1t normally is the repub-
lies largest cash crop. The returns
extend down to almost every farm
er. Any one can cultivate. a few
coconut trees, harvesting and drying
the meat in his off hours.
War toppled this entire copra
economy. The Japanese, who had
little need for coconut oil, en-
the Filipinos to turn to
food crops. BY the time the Amer
leans returned 10 the islands, pro-
duction had practically ceased.
Industries Pressed
Meanwhile, this country had been
hard hit by the loss of its Philippine
copra supply. Receipts were about
rs per cent of normal, coming prin-
cipally from Ceylon, with small ad-
ditional amounts from French and
British islands in the South Pacific.
The most obvious evidence of this
shortage was the reduction In our
soap supply during the war. Many
other industries were hard pressed,
as we'll.
When liberation of the Philippines
was planned the Foreign Economic
Administration was given the task
Of reviving the copra trade. The
object was twofold: To increase the
supply of coconut oil to American
industry as rapidly as possible and
10 put United States dollars back
INTO circulation in the Philippines.
No other product would spread the
cash returns to such "a large num-
Der of Filipinos.
FEA delegated the actual opera
lion to the United States CONNER
,ial Co., which in turn organized
;he Corpa Export Management Co.,
L Delaware corporation. The firm
vas actually a joint undertaking Of
he five most important American
Arms in the prewar corpa field:
Spencer Kellogg & Sons, Inc, of
New York; El Dorado Oil Works of
LOS Angeles, Philippine Refining Co.
If New York, Proctor g. Gamble
Trading Co. of Cincinatti and At
tins, Kroll & Co. of San Francisco.
Secretary of the Copra Export
Co. was John B. Cor
Ion Of Washington.
Lacked Facilities
The task faced by the traders
vas formidable. Practically none of
he prewar facilities for copra pro-
was left in the islands.
There was no overland transporta-
,ion and almost no interisland ship
ping. Tugs and lighters had dis
Warehouses had been
destroyed or converted TO military
use. communications we're prtmi-
tive.
Not only were there no sacks in
which the copra could be carried to
market, but there were no needles
Or twine with which to sew up the
sacks. Virtually the entire industry
mad to be organized all over again,
from the coconut tree forward.
Despite their preoccupation with
the war, the United States Army
and Navy both co-operated with
'CEMCO" in many ways. Trucks,
ships and other equipment were
supplied in emergencies, and the
operation of the firms agents in
he field was expedited.
The equipment that poured into
he islands in 1945 to speed the re-
'ival Of the copra trade made an
list. Most Of 1t had TO
'e shipped from the United States
for the copra project