Evening star., 1947-06-29
Rubber Prices
Worry Malaga
Substantial Increase
Needed to Assure
Jobs for All
By Harris Jackson
Bv Harris Jockson


more the worlds chief producer OF
natural rubber and a leading con-
tributor to Britain's dollar pool, Is
gaining a new place as a political
and strategic center of the British
Empire in the Far East, but the
country's revival rests on a pre-
carious foundation.
The little peninsula - 475 miles
long and 210 miles wide--is produc-
ing more than $4,000 tons of rubber
a month. The tin industry, the
second major exporter,
has been slower to recover, with
monthly production a little more
than 1000 tons. In 1940 it was
1000.
Though prices are high - due
chiefly to an acute rice shortage
and black market buying-trade is
booming. Monthly exports now
total about $60,OOo0OO Omitted
States and imports s54,000,000. In
1941 exports averaged 100000 a
month and imports $36,000,000, but
that comparison is not accurate due
to present inflated values.
Synthetics Blamed
The widespread uncertainty and
dismay which followed the recent
fall in the price of rubber illus
trated, however, how dependent is
Malaya's economy on what can be
tapped from the trees.
Rubber during May dropped from
20 cents Omitted States to 1875
cents in two WeekS-before it made
partial recovery. Local rubber
circles said if the price didn't rise
substantially, many plantations
would close down. A cut in wages
for Chinese labor was instituted on
some estates.
Most quarters attributed the price
decline to the unexpectedly rapid
recovery of Malayan production,
coupled with United States Govern
ment regulations requiring the use
of large percentages of synthetic
rubber in tires and other manu-
factures.
The Wall Street Journal pointed
out that during 1947 total produc-
ton of both natural and synthetic
rubber would be between 100000
and 100000 tons. The United
States Rubber Manufacturers Asso-
citation and trade sources in New
York indicated most of this might
be absorbed, but estimated United
States consumption would level off
at $4,000 tons annually, with less
being used by other countries.
Replanting Necessary
The rubber price probably could
go even lower than it did recently,
and at least half of Malayas pro-
duction still would be forthcoming
at profit. That comes from native
tappers, chiefly Malays, working
on their own holdings of less than
100 acres. Their production costs
are negligible, since tapping is a
family activity and there are no
labor costs.
But with wages at their present
high levels most circles believe the
only plantations that could operate
proftably with rubber at, say, Is
cents pound. are those planted in
high-yielding trees-producing 1000
pounds per acre. Such paintings
total 100000 acres, II per cent OF
the approximately 100000 acres OF
large estate holdings.
The large estates are the back
bone of Malayan prosperity. Any
widespread plantation closure would
mean serious unemployment among
Chinese and Indian labor and
would have major repercussions in
trade and financial circles.
Rubber men agree that replanting
Of the plantations in yielding
rubber is necessary If the industry
is to survive.
Labor is the other major local
headache The rising cost Of hv-
ing resulting from higher prices on
rice and all other commodities has
spawned a host of demands for in
creased wages. Labor, lethargic be-
fore 1895, has been quick to join a
wide variety Of unions. Strikes are
frequent and sometimes last for
months,
Distributed by the Associates Press..