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The chief source of aluminium is bauxite ore.

Aluminium alloys form vital components of aircraft



Mr. De MOHRENSCHILDT. So I hope that this unpleasantness will be somehow repaired by Mr. Timmons. And I think that just a communication from him to the foreign office there might help. I am not persona non grata at the Embassy. He doesn't have to swear I am this or that, or that I am a good friend of his. But just that I am not persona non grata would be sufficient, I think. Because this job I have there in Haiti is a result of many years of work, preparation, and it is important for me. It involves a considerable amount of money, $285,000, and further development, mining and oil development, which goes with it--and preparation of this job started already in 1947, when I first came to Haiti, and went several times subsequently and worked there. It is a long-term approach that I have started, because I like the country, and I think it has excellent oil possibilities, and I finally got that contract about in March last year.

Mr. De MOHRENSCHILDT. Yes, sir; this was followed, of course, by many other letters and correspondence with our prospective investors and people who might be interested in a mining development of Haiti.

I am negotiating right now with an aluminum company for the development of bauxite, and with oil companies in regard to development of oil possibilities.



Pawley continued to be involved in various business projects. He was a close friend of President Rafael Trujillo and together with George Smathers, had invested in the bauxite industry in the Dominican Republic.



Bauxite became the primary ore from which aluminum was extracted. This earthy compound exists in great abundance in Arkansas, Haiti, and Jamaica. Alcoa and Reynolds Metal Company own most of these reserves.




"If America loses this war," said Secretary of the Interior

(Harold) Ickes, June 26, 1941, "it can thank the Aluminum Corporation of

America." "By its cartel agreement with I.G. Farben, controlled by

Hitler,"writes Seldes, "Alcoa sabotaged the aluminum program of the U.S.

air force. The Truman Committee (on National Defense, chaired by then-

Senator Harry S. Truman in 1942) heard testimony that Alcoa's

representative, A.H. Bunker, head of the aluminum section of O.P.M.,

prevented work on our $600,000,000 aluminum expansion program."

Last month, Paul O'Neill, CEO of Alcoa, joined the occupation

government in Washington D.C. as Secretary of the Treasury.



I.G. Farben was critical in the development of the German economy and war machine leading up to WWII. During this time I.G. Farben's international holdings along with its international business contracts with companies like Standard Oil, DuPont, Alcoa, and Dow Chemical were crucial in supplying the Nazi regime with the materials needed for war as well as financial support.



In 1939 under the Alted agreement, the American Aluminum Company (ALCOA), then the worlds largest producer of sodium fluoride, and the Dow Chemical Company transferred its technology to Germany.



How the Cartels Curtailed US Production

A. Restricting the Number of Producers. The primary method is to exclude any independent companies from entering the field or to rigidly limit the number of producers and the quantities they may produce.

This was the device used by the Aluminum Company of America to restrict American production of the vital war metal, magnesium, to one-twentieth of German production. ALCOA’s agreement with IG Farben provided that only one American company, Dow Chemical, could produce magnesium and that it could sell the metal only to companies designated by ALCOA.

The present acute shortage of aluminum resulted from the deliberate efforts of ALCOA. For two years prior to American entry into the war ALCOA repeatedly assured the government that no new plants were needed. The Office of Production Management accepted these assurances and passed them on to the public:

“For months the Defense Advisory Commission and the OPM had said that talk about a shortage in aluminum was misleading and that it was unpatriotic to talk about the possibility of such a shortage ... The OPM had apparently completely relied on ALCOA as a source of information as to the availability of aluminum and had discouraged anyone else from going into the business of producing aluminum. ALCOA had long followed a policy of maintaining high prices and building new capacity only when certain that it could sell at its fixed prices all that would be produced.” (Truman Committee Report, June 1941.)

When ALCOA did finally permit the erection of new plants – at government expense – it received the lion’s share of the contracts. These new plants will not reach full production until 1943 or thereafter, and will still fail to produce sufficient aluminum for the country’s civilian and military needs. This is a calculated scarcity, enabling ALCOA to maintain its monopoly prices and conform to its cartel obligations.


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