Latin-American forestry and forest products commission
Third international poplar congress
New program of technical assistance
The first session of the Latin-American Forestry and Forest Products Commission was held at Rio de Janeiro from 23 to 30 May 1949. The meeting was attended by delegates from Brazil, Colombia, France, Paraguay, Peru, Uruguay, the United States of America, and Venezuela, and by representatives from the United Nations Economic Commission for Latin America (ECLA), the International Labour Organisation (ILO), the International Refugee Organization (IRO), and FAO's Technical Committee on Unexploited Forests. Mr. Sebastian Anibal Romero, Forestry Director, Ministry of Agriculture, Venezuela, was elected Chairman of the session, and Mr. Julio Cesar Lafitte, Chief, Forestry Division, National Administration, Uruguay, was chosen as Vice-Chairman. The Chief of the Forest Products Branch of the Division of Forestry and Forest Products Mr. Egon Glesinger, represented FAO's Director-General, and the Secretariat was furnished by the FAO Latin American Forestry and Forest Products Working Group.
The discussions at this first session were conducted on a high technical level much important work was achieved, and the delegates were unanimous in asking for an early second session, if possible before the end of 1949.
The main item on the agenda was a report prepared by FAO on the Utilization of the Forest Resources of Latin America and on Equipment Requirements. After a thorough consideration of this report, the Commission recommended that it be submitted to the second session of ECLA, which was meeting concurrently in Havana. (The ECLA resolution on the report appears at the end of this article.)
The creation of a central Latin-American Research and Training Institute was recommended by the 1948 Teresopolis Conference. The Commission studied the possibilities of this idea in detail and agreed that this Institute and five regional stations serving particular areas of Latin America should be established within a period of three years. FAO will immediately draft a budget for the establishment, construction, and functioning of the Institute in the light of various official offers made to the Commission in respect to sites, facilities, and financial support.
Other points considered at length by the Commission and dealt with in the Report of the session were measures to be adopted to improve the compilation of forestry and forest products statistics procedure to be followed in the standardization of the nomenclature of commercial timber and in initiating studies into the standardization of grades and sizes of softwood and hardwood timber in international trade; participation of Latin-American countries in the Conference on soil conservation and utilization in tropical and subtropical countries, now being organized by FAO for 1950; and the means of rapidly filling the need for qualified technical personnel in Latin-American countries, particularly through the employment of displaced persons from Europe.
The Commission recognized that the program of work required for Latin America placed an almost impossible load on FAO's Forestry and Forest Products office for Latin America, thus making it necessary either for FAO to increase its staff or for governments to depute technicians to collaborate with the existing staff for specified periods of time.
The first session of the Commission concluded with a vote of thanks to the Brazilian government for its generous hospitality in Rio de Janeiro. The report on the Utilization of Latin-American Forest Resources was then transmitted to Havana. Owing to its special significance, the speech with which this report was presented to ECLA is reproduced here in full.
PRESENTATION OF REPORT TO ECLA
The spokesman for the Commission pointed out to the ECLA delegates that some 42 percent of Latin America's land surface is covered with forests - more than twice the area occupied by farmland including pastures. These 850 million hectares represent almost one-quarter of the world's forest area and give Latin America a higher percentage of forest land than any other continent.
"These figures would lead to the expectation that Latin America was one of the larger producers of forest products. This is not the ease.
"Annual cut is estimated at about 170 million cubic meters but 93 percent of this is fuelwood. The present annual output of industrial wood is barely 15 million cubic meters, in other words, approximately the annual production of metropolitan France. Consumption of industrial wood annually is estimated at 80 kilograms per person, compared to 1,300 for North America and 300 for Europe. Even to meet these exceptionally low requirements, Latin America as a whole is a heavy importer of woodpulp and softwood lumber, and must be classified at present as a region with a net trade deficit in forest products.
"There are many technical and economic reasons for this paradoxical situation, but none of them provides any justification for its continuance. Through the application of modern techniques, it should be possible within the next generation to make Latin America one of the large suppliers of forest products to the rest of the world, raise consumption standards to the level of other regions, and create forest industries which would be a major source of wealth and employment to most countries of this region.
"In this connection it is important to dispel a frequent misunderstanding. It is often said that nothing is lost by leaving
Latin-American forests untouched, because they constitute a valuable reserve for future generations. A virgin forest is not a gainful asset, because each year as much wood is destroyed as is added by new growth. Properly managed, a forest is capable of producing from 1 to 5 tons of raw material per hectare, and even 20 tons under especially favorable conditions, such as are found in parts of Chile and Brazil. The opening up of forests by cutting virgin stands and regenerating new forests is particularly important in Latin America because such management would result in improving the composition of the growing stock and adapting the timber to the requirements of modern forest industries. Early development on a large scale does not destroy a valuable reserve but transforms valueless areas of land into important economic assets.
"It is the program of FAO to assist governments in carrying out this development. To that end a Forestry and Forest Products Conference was held last year at Teresopolis; last February a Latin-American office for Forestry and Forest Products was installed in Rio de Janeiro, and two weeks ago the Latin-American Forestry and Forest Products Commission held its first session and adopted a report on capital and equipment needs for the development of Latin American forests.
"The original objective of this report was the determination of the needs of Latin-American countries for forestry equipment, especially as a corollary to a similar report on agricultural requisites since frequently the same tractors, for instance, can be used in forestry and farming. Our Latin-American office has been in touch with all countries and has received from several of them a list of requirements. But in making this investigation, it was found that equipment was not the real bottleneck, because before it is needed there must be an industry capable of using modern equipment. To date, such an industry can be found only in isolated instances and - compared to the importance of the region - on a relatively small scale.
"The report has therefore attempted to estimate capital needs likely to arise from the systematic development of modern forest industries in the various countries. The figures given both for the short- and the long-term needs must be regarded as very tentative and incomplete it will be FAO's task to improve them. Yet this first attempt to get to grips with Latin America's forest problem and the discussions during and after the first session of FAO's Latin-American Commission have produced a number of interesting conclusions.
"From a practical standpoint it is necessary to distinguish between two categories of forests, each of which offers widely different possibilities for industrial development.
"Temperate and Subtropical Softwoods. This is the wood which supplies 90 percent of the world's industrial needs. While very abundant in the Northern Hemisphere, it is relatively scarce among the natural forests south of the equator. However, in Brazil particularly a fairly large area of Paraná pine is found.
"This area of native softwoods is supplemented by large pine plantations, especially in Chile and Mexico, and since these forests mature in Latin America in 20 to 40 years, plantations could easily be extended.
"An industry already exists in the Paraná pine area. The present output of lumber and pulp is very small compared to the potential yield of the forests, even when potential yield is calculated on conservative estimates of growth capacity. The recently established pulpmills and plywood factories are modern, but lumber is produced in large numbers of small factories which, on the whole, produce low quality material with extremely high waste and thus also high cost.
"Here it should be possible to build in a short time an important forest industry. The attractiveness of this short-term proposition is not to be denied, even though it applies only to less than 10 percent of Latin America's total forest resources.
"Tropical Woods. By far the larger part of Latin-American forest resources is tropical and subtropical. This heterogeneous mixture of all kinds of woods has hitherto largely resisted industrial use. Mahogany, cedar, greenheart, and other precious woods have been extracted from tropical countries for centuries, but by taking only two or three trees per hectare and not bothering about the rest the forest has deteriorated and production costs have remained exorbitant.
"The problem is to convert to appropriate uses all the various kinds of timber occurring in tropical forests. On a laboratory scale this appears possible, and in West Africa plants are under construction or even in successful operation. But research and tests must precede the establishment of forest industries in the Amazon valley and other tropical forest areas of this continent.
"It is therefore proposed to set up as soon as possible one or two so-called 'forestry combinates' in tropical areas. Such a combinate is based on the principles of full utilization and systematic management of a fairly large forest area.
This is achieved by setting up a variety of mutually complementary industries such as a pulpmill, a sawmill, a plywood mill, and possibly plants manufacturing a variety of chemical products. In this way the waste from one operation becomes raw material for the others, and yields, which in isolated industries are as low as 20 percent of the wood volume cut, can be raised to 60 or 80 percent.
"If this approach is successful, it will supply the key to open up one of the world's largest storehouses of renewable wealth, capable of supplying almost any kind of product, both for the domestic needs of Latin America's people and for export.
"These, then, are the technical possibilities. But to make them come true, more is needed, in particular: markets, capital, and industrial leadership and knowledge.
"There is no simple answer to these issues. But let us register a few important facts:
"1. There should be little concern about adequate markets even for a greatly expanded forest industry. All FAO estimates show a continued world shorttage of lumber, particularly in Europe and the Far East. Unless the U.S.S.R. steps in very soon to fill the gap, some countries will have to curtail substantially their wood consumption, and lumber shortages may retard their economic development."The quantities of lumber likely to become available from an early development of Latin-American softwood resources are in the order of 100,000 to 200,000 standards a year. Since the European deficit after 1952 is estimated at around one million standards and a substantial although somewhat small figure looms in the Par East, there should be no trouble in selling all the additional output, provided it meets quality and price requirements.
"It should be remembered that outside Latin America there exist only two important sources for additional softwood lumber supplies: U.S.S.R., which is most uncertain, and North America, which means dollars. Added supplies from Latin America would therefore be most welcome in importing countries.
"2. Woodpulp is the most significant complement to rational lumber manufacture. The Preparatory Conference on World Pulp Problems, held in Montreal recently, brought out some very striking conclusions. In particular, estimates for 1955 indicate that Europe, which used to supply the pulp needs of all other regions except North America, will produce just enough to cover its own Deeds. Latin America might have to buy its pulp for dollars. But why import wood pulp, when all the factors to make it are at hand?
"3. Both for lumber and pulp, it seems well to anticipate a substantial rise in Latin-American consumption. At what rate that rise will come is open to argument. But with export markets available for lumber and pulp, there should not be much risk. And the same is true for other forest products, for which there are great needs in Latin America and most inadequate production.
"4. Substantial foreign capital might be needed to equip a modern forest industry. But it appears that lumber exports could easily pay for that.
"Assuming annual exports of 200,000 standards, the f.o.b. value would be around 35 million dollars annually, which could buy in five years more forestry equipment than even a rapidly expanding industry would use.
"5. A difficulty lies undoubtedly with industrial leadership and knowledge. Forest industries are not more difficult than others, but they require a certain industrial structure and considerable technical experience.
"Development corporations exist in most countries but only in a few have they given attention to forest industries. The example of Chile, where a modern industry is about, to be initiated through the Corporación de Fomento and with the help of the International Bank, is encouraging. If similar attention were given in other countries, we might get somewhere.
"And as for technical knowledge, the United Nations technical assistance program could help. Moreover, there exists today an unusual opportunity. Many specialists in forest management and industries are ready and anxious to leave Europe. They could do for forest industries in Latin America what the Huguenots did for German trade and industry 300 years ago.
"The problems I have touched upon are all of concern to FAO, for just as the Organization's interest lies in all aspects of agriculture production, trade, and consumption; so with forestry and forest products, its interest is in forest industries and trade as well as in forest management.
"Forestry and agriculture cannot be separated. The development of virgin forests is as important to the agriculturist as to the forester; it is, in reality, a proposition that can frequently be classified as 'land settlement.'
"But these problems do not concern FAO alone. The development of forest industries also needs to be fitted into the broader framework of general economic development. The movement of capital that will result from the establishment of modern forest industries, the credits needed in that connection - both national and international - and the effect of forest products exports on Latin-American trade balances are clearly problems which can only be considered in connection with the broader problems entrusted to the Economic Commission for Latin America.
"These were the reasons that prompted the Latin-American Forestry and Forest Products Commission to urge FAO's Director-General to submit the report on the utilization of Latin-American forest resources to your present session, despite its preliminary character. In that connection, it was also anxious to draw your special attention to the following guiding principles:
"1. The report is to be considered as a preliminary document only which is to be amended and completed by the secretariat and by governmental agencies before coming up for review at the second session of the Commission. In particular, it is to be supplemented by a study of equipment needs for reforestation and for the conservation of forests and soils. On the other hand, it should constitute a basis for the encouragement of the preparation of five- and ten-year plans for the development of forest resources and industries."2. In addition to these general qualifications, the Commission wishes to draw ECLA's attention to the following three basic principles:
"(a) The objective sought is not simply an increase in production but a modernization and diversification of forest industries. In particular, the aim must be to develop the manufacture of pulp and paper, fiberboards, and other products which at present have to be imported into Latin America."(b) In selecting sources for the procurement of equipment, the following order of priority is recommended: Latin America, soft currency countries, the dollar area.
"(c) The development of forest production should be accompanied by efforts toward the improvement of the quality of the products and of marketing methods, especially with regard to exports. This last action should be undertaken in co-operation with the FAO/ECE Timber Committee.
"3. The Commission decided to place on the agenda of its second session the problem of timber exports. It will endeavor to arrive at qualitative estimates regarding the possible exports of timber to other regions, in particular to Europe and the Far East, during 1950-51. It is desirable that delegates should arrive at the second session with information on these points.
"The report then is preliminary-but it shows that forest resources and industries are sufficiently important to Latin America's economy and development that they should not be overlooked. Their development is both a corollary to agricultural expansion and an important step on the path of industrialization.
"A second consideration worth remembering might be the close inter-relationship between various aspects' of forest development and the general economic problems which are ECLA's concern. A similar situation has led to the organization of a most satisfactory working relationship between the Economic Commission for Europe and FAO. Problems in Latin America are different and call for somewhat different solutions. Yet cooperation is urgently needed.
"Finally, in order to go beyond generalities and administration aspects, there are two projects which seem ripe for immediate exploration.
"The first is the development of lumber exports to Europe and the establishment of industries for that purpose. Conversations with Brazil have already been initiated. Discussions with the International Bank and with ECE are planned. This might be pursued together, or at least ECLA should be kept informed.
"The second project, the establishment of forestry combinates, raises at least two urgent questions: Where should they be located? How should they be financed? This matter also calls for joint attention and should be explored without delay."
ECLA RESOLUTION
After general debate on the subject, the following resolution was passed by the assembly:
THE ECONOMIC COMMISSION FOR LATIN AMERICA
CONSIDERING that although Latin America's forests represent one fourth of the world is forest resources, their present contribution to the economics of the region and the world is negligible:
CONSIDERING further that the development of such resources based on modern industrial techniques and on the application of scientific forest management and systematic reforestation could substantially contribute to the welfare of the Latin American nations, facilitate the rationalization and expansion of agricultural production and constitute an important step toward the settlement of new lands and the creation of industrial employment in rural areas;
TAKES NOTE of the establishment by FAO of a Latin American Commission for Forestry and Forest Products serviced by a regional office with headquarters at Rio de Janeiro; and,
(1) RECOMMENDS that governments include in their economic programs the development of forest industries and the conservation of forest resources;(2) INVITES the Executive Secretary (a) to make arrangements with the Director-General of FAO in order to promote the development of the forest industries of Latin America through the combined efforts of both organizations; and, (b) to explore, through the studies on international trade which he is to undertake, practical measures for developing and fostering exports of forest products of Latin America to other parts of the world.
(3) URGES the international organizations concerned to carry out studies for the determination of suitable sites for the establishment of modern forest industries. Such studies should have the prior approval of the governments concerned and should take into consideration the domestic and foreign possibilities for financing.
THE Third International Poplar Congress, organized to run concurrently with the third session of the International Poplar Commission, took place in Belgium and the Netherlands, between 18 and 28 April 1949, at the invitation of the Ministers of Agriculture and the National FAO Committee Chairmen of these two countries.
Representatives from Belgium, France, Italy, Hungary, Luxembourg, the Netherlands, Sweden, Switzerland, and the United Kingdom took part in the Congress. FAO and the International Union of Forest Research Organizations were also represented. The Congress and the meeting of the Commission were presided over by Mr. Ph. Guinier, the French delegate, who is Honorary Director of the National School of Waters and Forests. The vice-chairman was the Netherlands delegate Dr. Houtzagers, who is Professor at the Agronomic Institute of Waegeningen.
Apart from official receptions given by the Ministers of Agriculture of Belgium and the Netherlands, the Congress consisted of a study tour and group discussions. The study tour took place in the poplar regions of these two countries, mainly in the Belgian provinces of the northeastern Ardennes and in the southern and central provinces of the Netherlands. The members of the Congress visited nurseries, natural regeneration centers, industrial plantations, agricultural estates, research institutes, match factories, clog factories, paper factories, and sawmills. The meetings took place at the Palais des Academies in Brussels, and at Eindhoven, in Holland. The questions discussed were the diseases and insect pests of the poplar, methods of culture, genetics, and wood tests.
The meetings of the International Poplar Commission itself were devoted to the work being carried out in different countries on genetics, to the poplar identification index, the index of wood tests, and to nomenclature of poplars.
This Congress, which was attended by senior members of forest administrations: as well as by representatives of producers, scientists and technicians, and industrialists, was particularly successful, due to the excellent organization achieved by the Dutch and Belgian National Poplar Commissions. It was also, from an international point of view, a successful example of what FAO has always advocated-collaboration between producers, technicians, and consumers.
AT its June meeting in Paris the FAO Council closely studied proposals for increased technical assistance to underdeveloped countries, a subject which has attracted a great deal of attention since President Truman's inaugural address emphasizing the world's great need for a spread of technical knowledge.
The Council had before it a comprehensive report on Technical Assistance, an Expanded Cooperative Programme, prepared for the United Nations Economic and Social Council by the Secretary-General of the United Nations in association with the Directors-General of the United Nations specialized agencies.
Particular attention was given to that part of the report containing proposals made by FAO in its field of work. Some 57 types of projects in agriculture, forestry, fisheries, nutrition, rural welfare, and agricultural economics and statistics could be undertaken very soon, FAO proposed, should the technical assistance program go into effect.
Both the actual program and its costs would depend upon the degree of participation by beneficiary countries, which would themselves bear a considerable part of the cost.
Later, in August, the Economic and Social Council, meeting at Geneva, approved for submission to the General Assembly a comprehensive resolution on the organizational machinery, financial arrangements, and principles to be applied in launching the combined United Nations-specialized agencies program.
If approved by the General Assembly, a technical assistance conference will be called to determine the amount of contributions available for participating governments for execution of the program during its first year, and to give final consent to the proportionate shares of the total amount of contributions to be allotted to the various participating organizations.
The recommended plan provides two categories of disbursements from the special account to the participating organizations. The first 10 million dollars and 70 percent of the second 10 million dollars received would be automatically available for distribution to the organizations. The remaining 30 percent of the second 10 million dollars and all contributions above 20 million would be retained for subsequent allocations. FAO's proportion of the funds available automatically would be 29 percent.
