FOREWORD

The chemical industry of the world during 1937 continued the progress made in the preceding years; there was considerable improvement in the financial condition of the chemical industry which in many countries recorded the most prosperous year since 1929. Strong nationalistic and rearmament programs encouraged the rapid progress of manufacture of chemical products, especially in European countries, notwithstanding that sometimes these new industries were uneconomic. This industry on a few occasions for short periods was hampered by interruption of raw material supplies by conditions existing in supplying country, but at no time was the condition serious. Foreign chemical trade considerably exceeded preceding years and was the largest since 1929; the loss or reduction of purchases in certain regions was more than offset by increased purchases in other

countries.

This, the fifth edition of World Chemical Developments, reviews the principal developments in the important chemical-producing countries, as well as many of the major and some of the minor chemicalconsuming markets. Several countries-Bulgaria, Latvia, Lithuania, Rumania, Dominican Republic, Honduras, El Salvador, Bolivia, and Ceylon-which were not treated previously are included in the 1937 report.

It would be impossible to make an exhaustive study of every country, hence the selection in this bulletin is based on the significance of the industry within the country, the importance of the country as a market for American chemicals, or the advent of chemical manufacturing.

This bulletin has been prepared from reports submitted by the foreign offices of the Department of Commerce and of the Department of State, and from official data and statistics supplied to the Department by the various foreign countries. Additional information on practically every country is available to accredited American firms upon application to the Chemical Division of this Bureau.

MAY 1938.

VI

ALEXANDER V. DYE, Director, Bureau of Foreign and Domestic Commerce.

WORLD CHEMICAL DEVELOPMENTS IN 1937

HIGHLIGHTS IN CHEMICAL DEVELOPMENTS

The many political and hostile disturbances, the intensified rearmament programs, increased nationalism, and a more efficient utilization of all resources in many foreign countries directly affected the world's chemical industry in 1937. In fact, only a relatively few countries had a comparatively normal year. Stocking of supplies for emergencies, expansion of production, erection of new plants, inauguration of new industries, extension of industrial and Government research, and stricter governmental control of chemical manufacture and trade were rather general throughout the world.

In South America, the chemical market was influenced less by these events than elsewhere, although competition from certain European countries was keener and the almost world-wide self-sufficiency movement was somewhat accentuated, especially in Argentina, Brazil,

and Peru.

The accelerated rearmament programs continued in almost all European countries and brought about increased production and demand for many chemical products. The peak at which iron and steel industries operated was reflected by greater demand for some chemicals and larger output of chemical coproducts. The continued civil war in Spain reduced chemical exports of the European suppliers to that country and caused them to seek markets elsewhere, as well as to look for new sources of supply for a few chemicals, particularly pyrites. A world survey by Societa Montecatini (Italy) nevertheless showed that deliveries of pyrites in 1937 were 6,205,000 metric tons compared with 5,246,300 in 1936, of which Spanish deliveries were 2,292,800 in 1937 and 1,958,000 in 1936. The withdrawal of Spanish potash from world markets was automatically taken care of by the International Potash Cartel arrangements.

Italy once more participated in world chemical trade, and again imported and exported certain chemicals. One of the outstanding effects so far as the United States is concerned, was the resumption of Italian sulphur shipments to markets that were supplied with American sulphur in 1936.

In the Far East, the Sino-Japanese struggle dislocated trade in that region during the last 5 months of the year. Much of the import and export trade of China was carried on through transshipment ports, especially through Hong Kong. Tung oil, one of the leading exports from China to the United States, was shipped throughout the year and the total for 1937 was the largest on record.

TRADE REGULATIONS

Numerous difficulties continued to hamper the chemical trade, among which were: Strict enforcement of financial regulations, lack of foreign exchange, use of artificial measures of trade such as aski marks, quota restrictions, barter transactions, high duties, and import and export embargoes. Only a few of the major chemical-consuming markets may now be considered "free."

There was almost complete control of foreign trade in one way or another in most of the European countries and in Japan, but usually the necessary raw materials had the customary exemptions. Generally speaking, so-called luxury goods, including toilet preparations, encountered difficulties of importation; in Bolivia, for example, imports of perfumes and toilet articles were considered as dispensable and importation was forbidden.

This subject, however, is too complicated and changes are too frequent to be treated here. Such changes are published weekly in Commerce Reports, issued by the Bureau of Foreign and Domestic Commerce, and often republished elsewhere. Any one interested should write to the Bureau for the most recent information on any specific phase of the subject. Only a few examples of the type of regulations affecting the foreign trade of various chemicals are cited here.

For the purpose of stimulating or protecting the domestic chemicalmanufacturing industry in the countries specified, the following commodities were among those either subjected to duties for the first time or on which the duties were greatly increased: In Brazil, on chlorine, chloride of lime, and caustic soda; in Mexico, on chlorine derivatives; and in Chile, on calcium carbide.

In contrast to these, however, regulations were sometimes modified as, for example, in Australia, the regulation which forbade imports of some toilet preparations, including face and talcum powder, from certain non-British countries except under special licenses effective May 1936, was removed in December 1937, and in the future licenses will be granted irrespective of the country of origin. In Netherlands Guiana the import duty on quinine hydrobromide was removed.

Among the items on which import duties were reduced or removed entirely were: Pine-oil imports into Chile; carbon dioxide gas into Panama; insecticides and fungicides for agricultural purposes, if intended exclusively for agricultural purposes, into French West Africa; veterinary raw materials into Uruguay; and carbon tetrachloride into Venezuela. In Netherlands Indies, ferrous sulphate imports were exempt from quota restrictions, and a few other industrial chemicals were exempt from import duty when imported for certain industrial purposes.

Relatively little change was made in the export regulations. In Netherlands Indies, copal and damar-gum exports were placed under Government control, and export permits were required for citronella and other essential oils.

Among the various measures adopted to partially offset competition from other commodities or manufacturers, were: The plan of the Peruvian Government to acquaint foreigners with the various uses in which cubé root may be employed and to organize the cultivation of the root under the direction of the Industrial Technical Insti