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Show March 5, 1 943 The Western Mineral Survey, Salt Lake City, Utah 18 World Trade In Phosphate Rock Greatly Changed (Prepared by Bertrand L. Johnson, Associate Mineral Economist, under the supervision of Oliver Bowles, Chief, Nonnetal Division, Economics and Statistics Service.) Before the onset of World War Economics ' . II international trade in phosphate rock was well established in certain definite channels, this commodity moving largely from three major producing centers North Africa, the United States,' and Oceania to three principal consuming areas Europe, Japan, and Australia and New Zealand. Two of the producing areas North Africa and Oceania exported practically all of their production; that from North Africa going principally to Europe. but some to. Japan, and that from Oceania being split between Japan and the British colonies . of Australia and New Zealand. The other- important producing area, the United States, shipped only its surplus (about a. third of its to production). This went chieflyvarOf and the. Japan. Europe ' ious consuming areas Europe was almost entirely . dependent upon imports, 'as was also Australia and New Zealand. Japan was largely dependent upon foreign sources, whereas the United States alone was entirely independent in respect to external supplies. These normal world trade relations in phosphate rock have been almost completely upset by the wars developments. Eafli of the major developments has reacted on international trade in this commodity. The outbreak of the war between the Allied Nations of England and France and the German Reich on Sep. 3, 1939, with the consequent British blockade of Germany brought to a complete stop all exports of 'American and North African rock to Germany and the territory it controlled in central Europe Austria, Czechoslovakia, Danzig, and Poland except those which may have entered through the neutral Mediterranean countries in southeastern Europe. With the invasion of Norway by Germany in April 1940, phosphate rock shipments to the Scandinavian countries from the United States ceased; and in May 1940, the German invasions of Holland and Belgium ended all possibility of further shipments to those countries The defeat of France, in June 1940, had many repercussions in world phosphate rock trade. It stopped the movement to Britain and the Union of South Africa from the North African deposits, normally the principal, source of supply for this material, with the result that Great Britain turned to the United States for supplies, and exports of American rock to Great Britain in 1940 exceeded even the large amount sent from the United States to Japan in that year. Large shipments were also made in 1940 from the United States to the Union of South Africa, which normally, obtained its reRecquirements from Morocco. Canord shipments went also to ada from the United States, and American rock was sent to Portugal for the first time in many years. As a result of these new' demands exports from America were maintained at about 70 per cent of the prewar volume. The entrance of Italy into the war as an Axis partner, following the collapse of France, stopped the shipments of American phosphate rock not only to Italy but also to those countries, such as Switzerland and Hungary, which had been receiving American phosphates through Italian ports. The defeat of France and the entry of Italy into the war also had a very adverse effect on the phosphate industry of the French possessions in North Africa Al. geria, Morocco, ' and Tunisia countries which normally ' produce about four million tons of rock a year and .export about 34 million tons to Europe. .Shipments from French North Africa in 1940 and exports to Europe in that year are stated to have teen only about 50 per cent of those of 1939. Shipments were chiefly to France, Italy, and Spain. North African shipments moved to Germany, through Italian ports. Exports from Tunisia in the last half of the year and through most of 1941 went entirely to Germany and Italy. Owing principally to the stoppage of Italian commerce through the Suez Canal by the British and to a great dr jp in shipments to Japan, phosphate exports from Egypt, which in 1938 and 1939 had amounted to over 400,000 metric tons a year, decreased to only 77,009 tens in . -- - self-contain- 1940. On Sept 20, 1940, Japan invaded and seven days later, Sept 27, 1940, joined the Berlin-Rom-e Axis, resulting in the cutting off of shipments of phosphate rock to Japan by Britain from Egypt Nauru and Ocean Islands, and Christmas Island. In 1941 two further major interferences in world trade in phosphate rock occurred. The first was the German attack on Indo-Chin- in the Hawaiian Islands on Dec. 7, 1941, bringing the United States into the war on the side of Britain, and. resulting in the 'cessation of shipments from the United States to Japan. Early In 1942 Japan conquered most of the phosphate producing islands of Oceania (Nauru, Ocean, and Christmas Islands), making in this herself and compensatfully commodity ing herself for her loss of im- ' ports from the United States, Egypt, and French possessions. This move by Japan also largely cut off the supplies to the Brit, ish colonies of Australia and New Zealand, which had come principally from Nauru and Ocean Islands. The world phosphate trade picture changed again in November 1942, with the United Nations occupation of the phosphate-bearin- g areas of French North Africa in Algeria, Morocco, and Tunisia, and the German occupation of the former unoccupied" portion of France. These events stopped the supplies of North African phosphates going to France, Italy, and Germany, and cut off the entire continental European market except the neutral coastal countries of Spain and Fortugal, thus throwing the entire North African production on the remaining vastly restricted world markets - . a, in Allied and neutral countries in direct competition with American ' phosphate rock, and also raising the possibility of an Invasion of the. American domestic market by the French North African phosphate., The British Isles can now again get their supplies from French North Africa, releasing Space on ships traveling from the United States to Britain, and possibly, eliminating much of the American export trade in this material. Australia and New Zealand, long cut off from their former sources of supply in Nauru' and Ocean Islands, can now be supplied from North African sources, as can also the Union of South Africa. Thus, at the beginning of 1943, Japan alone of the Axis powers in phos- -' stands phate rock, whereas the European members have been cut off from the U. S. S. R. and ail sources of supply and are limited to small controlled European deposits apparently inadequate for their economy. The Allied nations, on the other hand, have at their disposal the great phosphate resources and industries of the United States and French Norih Africa, a supply far in excess of the needs of both allied and neutral n a1 ions of the world. . self-sufficie- nt extra-Europe- - . Soviet Russia in June 1941, there- by cutting off imports of Russian apatite into Germany, and initiating a movement of the Kola Peninsula apatite from the port of Murmansk to Britain and the United States. The second was the surprise attack on Pearl Harbor , . PHOTO BLUE CO. Mammoth Photo-- . Enlargements Written. Printed or Drawn Subjects Created Reduced, Duplicated or Enlarged OFFSET PHOTOSTAT AND BLUE PRINTING ENGINEERING SUPPLIES NESS BLDG. PHONE Sail Lake City, Utah Investment Securities Corporation Bonds Government Bonds Local Securities Municipal. Bonds of Utah, Idaho, Nevada, Arizona, Wyoming, BLACK & DEASON Assayers and Chemists Phone Montana ( Specializing in Sugar Stocks, Utah Power Bank Stocks, Utah Light, Z. C. M. I. Oil Refining & 63 165 So. West Tempe Salt Lake City Edward L. Burton & Co. Established 1899 an |