Cotton: Spot prices at weekly intervals on specified world markets
[Calculated in United States cents a pound]

Cotton: Spot prices at weekly intervals on specified world markets-Continued

Cotton: Spot prices on specified world markets, averages 1936-37 and 1937-38, monthly intervals January 1945 through June 1947

Mr. HOPE. Mr. White, I understood you to say there had been no dismantling of cotton mills in any part of non-Russian Germany. Mr. WHITE. So far as I am aware.

Mr. HOPE. The reason I am asking that question particularly is that there have been charges made-I have no information at all as to whether they are well founded or not-that in the British zone the British have dismantled plants, or at least have prevented plants from coming into production again, which are competitive with British industry. I just wondered if you had any information on that point as to the textile industry.

Mr. WHITE. I do not have any specific information, Congressman Hope. I do understand that there have been in recent months, with the upsurge of textile activity in the bizonal area, exports to the United Kingdom of unfinished goods for finishing in the United Kingdom, for use or for re-export. In that way there would be some benefit gained, perhaps, by reactivating the textile industry in bizonia.

The program of spinning activity is coming up very fast, both in the bizonal area and in Austria, since the initiation of the ECA program, by making more freely available raw materials necessary. So far as I am aware, at least, there is no concerted effort on the part of any occupying government for purposely retarding the rehabilitation of the cotton spinning industry in bizonia.

Mr. HOPE. Getting back to the consumption of cotton in the prewar period, was there any extensive shift of the textile industry in the United Kingdom to rayon during that period?

Mr. WHITE. During the prewar period?

Mr. HOPE. During the prewar period. You spoke awhile ago about the shift that took place in the Fascist countries during the period they were trying to become self-sufficient. Did a comparable shift take place in the United Kingdom during that time?

Mr. WHITE. No; nothing nearly so comparable; nothing like it at all. But there was in the United Kingdom and in France a substantial increase in consumption of synthetic fibers, the same as there was in the United States during that period. The leading countries, prewar, in the production and consumption of synthetic fibers were the United States, United Kingdom, France, Germany, Italy, and Japan. In the last three countries, the shift to the use of synthetic fibers was much more rapid.

I might give you an example, speaking in general terms for Germany. Prior to 1933, the cotton consumption in Germany was at the rate of about 1,000,000 to 14 million bales per year, varying from one year to the other in about that amount. By 1942 the consumption of cotton was practically nil, because it could not be obtained through imports, and the consumption of synthetic fibers approximated the equivalent of 14 million bales of cotton. There was almost a 100percent conversion during that 10-year period. Nothing like that was true in the United Kingdom or in the United States.

Mr. HOPE. Is the shift that was taking place before the war still going on over there?

Mr. WHITE. It is; the same as it is here today.

Mr. HOPE. That is, an increase in the consumption of synthetics? Mr. WHITE. Yes, sir. Speaking now from memory, I believe the consumption by spinning mills of synthetic fibers in Europe today is

equal to or greater than prewar. In this country, it is much greater than prewar, as everyone generally knows.

Mr. HOPE. In the United Kingdom, I presume most of the material for synthetic fibers, like wood pulp, is imported; is it not? They do not have that material?

Mr. WHITE. Yes, sir; that is correct.

Now, if I may, I would like to proceed more generally on the world cotton situation.

Mr. ABERNETHY. Before you go to that, a moment ago you stated that for the year 1948-49, up to now, they had purchased about 6,000,000 bales of cotton and that 21⁄2 million bales of that was American cotton and 3%1⁄2 million bales was cotton purchased from other sources; that those 31⁄2 million bales were purchased with other credits which they had and some free dollars. Now, what portion of the 21⁄2 million bales of American cotton, if any, was purchased with free dollars? How much of their free credit did they use?

Mr. WHITE. We do not have that information.

Mr. ABERNETHY. Did they purchase any American cotton with free dollars?

Mr. WHITE. The 6,000,000 bales consumption you refer to is the program for the year 1948-49, beginning on July 1, 1948. That is the program of consumption. Against that and within it are approximately 21⁄2 million bales to be procured in the United States, the most of which are to be financed by ECA. Now, Belgium is not using any ECA funds for the purchase of cotton.

Mr. ABERNETHY. Are they purchasing any American cotton?

Mr. WHITE. They are purchasing some American cotton with free dollars; but we do not have at this time the information.

Mr. ABERNETHY. You say there has been some American cotton purchased with other than ECA funds?

Mr. WHITE. Definitely.

Mr. ABERNETHY. Has there been any appreciable amount purchased here?

Mr. WHITE. We do not have any information on it at this time. We are in the midst of the year, and the several countries are continually adjusting their programs and revising their procurement operations in the light of their existing availabilities of foreign exchange. And the only evidence we have is the information available through the Bureau of the Census, Department of Commerce, of the exports from the United States to specific countries. That I can give you to the extent it is available, if you would like to have it.

Mr. ABERNETHY. I would certainly like to know, because it would indicate, I think, their attitude as to future purchases when ECA funds come to an end, if they do come to an end, as I hope they will one of these days. I would like to have that information when it is available.

Mr. PACE. Suppose you supply it for the record, Mr. White, rather than take the time to work it out now, and file a copy of it with the committee.

Mr. WHITE. I will be glad to do that. (The information requested follows:)