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has come to rely heavily on rela–

tively - until now - inexpeosive

resources located primarily in the

developing countries. Because of

this growing dependence on outside

mineral sources, Interior Secretary

Rogers Morton warns that th e

United States is vulnerable to a

crisis similar to the one the nation

sutfered when the Arab states cut

off its oil. In fact, the whole Western

world is dependent on other coun–

tries for over two dozen important

minerals, such as chromium. baux–

ite. iron ore, tin and zinc.

The abundance of resources had

been a key reason for the sudden

rise to industrial might of the

United States. Inexpensive and

plentiful resources were a cushion

which allowed American firms to

in–

dulge in any number of wasteful

management practices and get away

with it.

Now all this has changed in dra–

matic fashion, and Americans are

finding themselves in the same boat

as Japan and Western Europe. The

United States has less than three

years of known reserves of bauxite.

Two thirds of its aluminum comes

from Jamaica and Surinam. Amer–

ica has almost no chromium, which

is necessary for the manufacture of

s teels.

rt

even imports one third of

its iron ore. The United States has

enough iron ore to meet its needs,

but since much of it is /ow-grade

ore, it would take a great increase in

cost to make it profitable to use.

Japan: the " lsland

M achine" Breaks Down

Nowhere can the effects of the

resource crisis be more graphically

demonstrated than in Japan. This

island nation buys iron ore from

Australia, coa! from the United

States. oil from the Persian Gulf

states and copper from Africa.

Then, it churns out manufactured

items of remarkable diversity and

sells them around the world in order

to pay for its voluminous imports.

Because of her desperate mineral

poverty, the Japanese have had to

scramble all over the world, buying

14

up resources wherever available.

They have already secured copper

holdings in Zambia and negotiated

for iron ore in Brazil.

Many Japanese companies are so

burdened by debt that they have to

expand .constantly just to keep the

bills paid. If a near total resource

embargo should ever hit Japan,

there is no way it could avoid eco–

nomic collapse. Arab oi l restrictions

and startling price hikes have amply

shown Japan's painful dependénce

on foreign sources, energy and raw

materials. With a hyperinfiation of

15 percent annually, the Japanese

can ill atford a shortage-induced

depression.

The "Copper Weapon"

Two crucial fulcrums of economic

power are developing. One is Af–

rica. The other is Latín America.

Latín America is now a recognized

storehouse for the raw materials ur–

gently needed to run an industrial

economy. President Juan Perón of

Argentina has said that Latín Amer–

ica holds the future of the world in

its hands because of its wealth of

raw materials.

Should the world's copper export–

ers form their own cartel , they will

not only be able to increase prices

but a lso to exact political con–

cessions. The big powers may find

they have to increase foreign aid,

extend liberal cred it, and even

change their foreign policies in or–

der to retain the infiow of needed

metals.

Venezuelan President Carlos

Perez has already begun consulta–

tions witb Latín American countries

on getting together to bargain for

better prices for their iron, copper

and tin. With a unified front, Latín

America's new-found economic

power may be able to raise the price

of tin, bauxite or iron as petroleum

producers have raised the price of

oil.

Former U. S. Secretary of Agri–

culture Orville Freeman has asked:

"How many more price rises for im–

ported raw material can the econo–

mies of the industrial world absorb

without collapsing? What about in–

flations at a rate of 15 percent or