Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-01-02
Impact of Strike

kS@S@ W @@s I'M
I have read with great in
terest and sympathetic I'M
derstanding your news dis
patch from New York on De-
cember 26, dealing with dam
ages being caused to perish
able products as a result Of
the longshoremen's strike.
1t is not my intention or
desire to 60 into the argu-
ments in pro and in con Of
the strike. That Is a prob
lem that concerns the Amer
lean people. However. I do
believe that 1t should be
brought to the attention Of
this country, including the
attention Of the longshore-
men, the Ill and devastating
effects that the strike is hav-
ing on the economies of small
countries like Ecuador which
depend, to an overwhelming
degree, on the export of per-
ishable commodities like ba-
nanas. Our monthly exports
of this fruit run on the av-
erage of IS million. And the
American consumer takes
over half of those exports.
Every refrigerated ship leav-
ing Ecuadorean ports and
unloading bananas at Amer
lean ports brings in around
20 to rs thousand stems Of
bananas. And since bananas
are an agricultural commodi-
ty produced in Ecuador by
thousands of small farmers,
it is our small farmer who
stands to lose the most from
the interruption of exports
to American markets.
At present, when the prices
of cocoa and coffee have
touched the lowest levels in
the last 10 years, our exports
Of bananas have become cru
cial. both from the point Of
view of the income OF the
small farmer and from the
point of view of government
tai revenues and the balance
of payments. Ecuador exports
about 40 million stems of ba-
nanas. Banana production
gives employment to over
$4,000 farmers, most of them
settled In new lands that Ec-
uador has been able to open
to production with the build
ing Of new roads financed
from loans from the United
States. These loans must be
served in dollars which in
turn must be earned through
exports. Our balance Of pay
ments is still In a very weak
position, following the Ill ef-
fects of the devaluation Of
the sucre, which took place
In July, 1861. Anything which
interferes with normal flow
of exports of bananas, at this
particularly crucial moment,
will have the gravest conse-
quences on the economy Of
Ecuador and specially on the
ability of Ecuador to service
its foreign debt.
Every refrigerated boat
loaded with $4,000 stems of
bananas represents the work
Of 100000 man-days, as ii
takes about 10 man-days for
every stem Of bananas to be
produced UP TO the moment
the bananas are placed
alongside the refrigerated
boats taking them TO world
markets. And for a country
like Ecuador, with a popula-
ton growth OF over 3 per cent
per year, the waste Of 100000
man-days for every shipload
OF bananas that cannot be
unloaded or cannot be
brought 10 markets because
Of the strike. represents a
colossal loss which no
amount Of financial aid.
from the United States or
from any other source. can
make good In as short a
time as II takes TO be de-
stroyed, because Of the in
ability Of the country 10 ex-
port It's bananas.
The expectation OF bana-
mas represents about so per
cent Of total exports from
Ecuador And, 8 per cent OF
our export earnings must be
set aside TO service our for
eign debt. The losses which
our small farmers incur, be-
cause OF the inability 10 ex-
port their bananas, can new
er be made good because. as
a small country. we have no
system Of crop insurance.
The small farmers Of Ecua-
dor win be all The worse off
as the longshoremens strike
goes on,
GustavO POlit.
Minister Counselor for Eco
nomic Affairs,
Embassy OF Ecuador