CORK PRODUCTION AND TRADE WITH PARTICULAR EMPHASIS ON THE SOVIET BLOC (RR IM-36

Created: 11/26/1951

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central intelligence agency

intelligence memorandum

(CIA/RR

CORK PRODUCTION AND TRADE WITH PARTICULAR EMPHASIS ON THE SOVIET BLOC

CIA HISTORICAL REVIEW PROGRAM RELEASE AS9

1

TABLE OF CONTENTS

Page

World Production and Trade

Soviet Bloc

Experimental Cork Production in the USSR

Appendix.

Tablerea of Cork Oak Forests in the Principal

Producing 7

Tableroduction and Exports of Cork by theProducing. 8

Tableotal Imports of Cork into Selected 9

Tableoviet Bloc Imports of Cork from theProducing 10

Tableesults of Experimental Studies on theof Cork Oaks in the USSR 11

CORK PRODUCTION AND TRADE WITH PARTICULAR EMPHASIS ON THE SOVIET

Summary

Cork is produced in commercial quantities in very limited areas of the world. Because of its unique qualities, corkarge number ofindustrial uses andtrategic commodity In time of war. World production and exports of cork1 are at the highest levels in historyesult of tho heavy demand from all sources. The Soviet Blocsupon Imports to meet its cork requirements, since long-Eerm efforts to produce an appreciable amount of cork in the USSR thus far have beenThe increased imports into the Soviet Bloc0rowing need for cork and possibly for stockpiling.

Cork, which Is obtained from the bark of the cork oak,trategic commodity in time of war because of its many military and nonmilitary uses for which satisfactory substitutes in some instances may be either limited or not available. Such characteristics of cork as its natural compressibility, resilience, lightness, insulating value, resistance to moisture and liquid pene tration, and frlctional quality account for the large number of Its specialized uses.

In terms of end use, cork usually is divided into two grades, corkwood and grinding cork. Corkwood, the highest grade, is used mainly In stoppers, discs, squares, life preservers, and floats. Grinding cork, the lower grade, is used In cork composition products (such as beverage crowns, gaskets, oil immersion friction drives, friction clutches, carburetor floats, shoe fillers, grinding and polishing wheels, washers, seals, grease retainers, and textilen corkboard for insulating and acoustical purposes, and In linoleum. There are no completely satisfactory substitutes for the principal Industrial cork products, particularly gaskets, oil immersion friction drives, friction

ITasicYeport on cork entitled Cork Requirements and Supplies, datedhich deals largely with supplies, consumption, and uses of cork in the US, has been published by the Forest Products Committee of the Munitions Board.

Soviet Bloc as herein referred to includes the USSR, Albania,Czechoslovakia, Hungary, Poland, Rumania, and East Germany.

clutches, carburetor floats, washers, grease retainers, textile cots,and polishing wheels, and certain types of Insulation.

The climatic conditions necessary for the growth of the cork oak restrict commercial production to relatively small areas in southern Europe,ortugal, Spain, France, and Italy and in North Africa. Relativelyquantities (less than one-halfercent of the world total) arein the eastern Mediterranean basin, the US, the USSR, Japan, China, Korea, and Manchuria. In time of war the problem of obtaining adequateof cork, as in the case of such critical materials as industrial diamonds, becomes increasingly important in the nonproduclng countries.

orld Production and Trade.

Approximatelyercent of the world's cork-producing area is located in Portugal;ercent in Spain, France, and Italy; and then North Africa. Approximately half of tho North African cork-producing area is in Algeria, one-third in French Morocco, and the remaining one-sixth in Tunisia and Spanish Morocco. (The area of cork oak forest in the principal producing countries Is given in

The total annual world harvest of cork bark normally averagesetric tons, with Portugal, the largest producer, accounting for aboutercent; North Africa,ercent; and Spain, France, and Italy,ortugal also accounts for over one-half of the total world exportable suppfy.ummary of the average production and exports of cork of the major producing countries during the prewar, war, and postwar periods is given in

esult of the strong world demand for cork, caused to some extent by fear of another world war, production and exports in the calendar0 reached record levels ofetric tons producedons exported. These tonnages represent increases ofndercent,oververages.

1. As indicatedomparison of the production figures and the producing area percentages, there is wide variation in the amount of cork producediven acreage, depending on locality. In Portugal, yields are relatively high; In North Africa, very low.

In all of the major producing countries, plans wero being made toproduction to the maximum1 in order to meet the greatlydemand. Purchase contracts were being let in many countriesthe bark was stripped from the trees. This large demand for cork hasharp reduction In the normal yearly carry-over stocks, which, along with the premature stripping of greenn some areas, may resulthortage of high-quality cork within the next few years.

The US, the UK, West Germany, and the USSR were the four leadingof corkhe US normally Imports overercent of the world's cork export, and the UK, West Germany, and tho USSR import aboutercent.ummary of the average imports of cork and cork products by these four countrios during the prewar, war, and postwar periods is given inest Germany and the USSR showed the largest increases in importsest Germany's imports increasedercent and those of the USSRercent over tho respectiveear averages.

Soviet Bloc Imports.

The USSR maintains its own cork manufacturing industry, normallyraw cork directly from the producing countries. Only about Iof that country's known Imports arc manufactured cork products.

In the Soviet Bloc the USSR has long been the foremost user of corkwood, and Portugal has been the chief supplier of this grade of cork. Sovietof grinding cork originate principally in Algeria and French Morocco, which arc second and third in order of importance to the Soviets as cork suppliers.

The European Satellite countries import all of their cork requirements,onsiderable amount of cork products. Czechoslovakia is the major Satellite importer, and Portugal and North Africa are the principal exporters to the Satellites. Relatively small quantities of cork are exported from Spain to the Satellite countrios.

igh-quality bark requiresoears of growth. Any earlier stripping results in an inferior bark with limited uses.

Payment for cork imports by the USSR usually is made in dollars. Since World War n, attempts have been made by thc Soviets to arrange for barter transactions, but in most cases these have fulled to materialize. With respect to the Satellites, transactions usually are madearter basis and through regular trade agreements, occasionally in exchange for high-prioritysuch as wheat, chemicals, and industrial goods. The principal firms shipping cork from Portugal to the USSR and the European Satellites are Wlcander,hipping to Poland and East Germany through Bremen; E. Brito and Irmao, shipping to Czechoslovakia; and J. Barreira and Irmao, shipping to Odessa and Libau.

Total cork imports Into the USSR0 represented an lncreasoercent oververage.ummary of cork Importsnto the Soviet Bloc from thc major producing countries for the prewar, war, andperiods is given inotal Soviet Bloc importsn increaseercent oververage. Those figures take into consideration only those imports received directly from thecountries. There is some evidence that the USSR and the Satellites are augmenting their supplies of cork by transshipments through other Europeanountries, particularly West Germany. Tho substantial increase in raw cork exports to West Germany0 may be an indication of this (seehe large increase in cork imports0 probably results from increased Industrial activity in the Soviet Bloc, particularly in the shipbuilding, stopper, and linoleum industries. The possibility that some of this cork is beinghowever, cannot be overlooked.

Soviet Bloc requirements for cork cannot be ascertained, because of the many and varied industrial uses of cork as well as the possible utilization of

substitutes.

The extent to which the Soviet Bloc has been successful in finding cork substitutes is not known. Attempts by the Soviets8 to substitutefor cork composition gaskets, washers, and seal retainers provedbecause of the inability of cardboard lo wilhstand the permeating action of oil.

he statistics presented on the Soviet Blocummary of all available material.

The outlook In the Soviet Blocased on statistics through1 on importsew producing countries, givesontinued high rate of cork purchasing which may surpass the0 level. The fact that in many instances the USSR is bidding on the best grades of cork, with apparent disregard of price, supports this assumption.

4. Experimental Cork Production in the USSR.

The USSR has been experimenting forentury with the culture of the cork oak in the Crimea and Southern Caucasus regions in an attempt to attain self-sufficiency In cork production. First plantings of the cork oak were made in the Crimean Sukhumi and Gagrynd ln Kutaisit about the turn of thelan was developed which visualized the planting0 hectaresf cork oak treeslthough plantings had spread to Adzharia, Abkhazia, West Georgia, and Azerbaydzhan, cork oaks were being grownotal ofectares.dditional plans were formulated for the systematic plantingectares each yearensity ofeedlings to the hectare so that at the end ofotal0 .hectares would be attained, an area which the Soviets thought sufficient to supply all of their domestic cork requirements. Thewere to be made inegions of the USSR, principally in the Crimea and around the Black and Caspian seacoasts of the Caucasus.abular summary, listing the principal regions, dates, areas of plantings, problems encountered, and prospects for future developments, is given in

Young cork oaks are highly susceptible to damage from many causes, and the Soviet producing regions are not well-suited to the needs of this plant.esult, hundreds of hectares of trees have been destroyed throughout the years by frost, winds, soil conditions, mice,maggots, crickets, wild andanimals, and various diseases.ork trees were being grown on onlyectares In the USSR, and many of the trees were in very poor condition. The USSRillion rubles7 in making additional plantings and conducting further experimental studies.owever, cork oak plantings had dwindled toectares,ensity varying fromrees per hectare.

I. One hectare7 acres.

Thus, after moreentury of efforts to produce cork on ascale in regions around the Black and Caspian seas, relatively little progress has been made by the Soviets toward overcoming unfavorablefactors. Even if experimental work on cork oak production is continued and intensified, it seems unlikely that the USSR can producequantities of cork within the next few decades and hence will have to continue to depend on imports for the major source of supply.

XAEUS

labia 1

Area of Cork Oak Forests in tho Principal Produclne Coontrle*

Percorteg

Country ifiai.'i-li

Portugal

Spain

France b/

Italr c/

AlEort.

French Korocco

Tunisia

Spanish Korocco

Total

hectare7 ncro;.

Corsica.

Sardinia and Sicily.

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