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3/3/1950 - Turkish Coal by Richard D. Robinson

DR Turkish Coel INSTITUTE OF CURRENT WORLD AFFAIRS zveren Sokak No Maltepe Ankara Turkey March Mr Walter S Rogers Institute Current World Affairs Fifth Avenue New York New York Dear Rogers About miles track Karabk Steel Plant Zonguldak field important deposit Middle East We there The field encompasses reserve grade bituminous stretching along Black coast miles inland anywhere This Turkey chief source energy inasmuch water power relatively undeveloped reserves being explored Lignite runner In there nasty rumor about available heating private homes perforce lignite ECA specialist insists bituminous Just prove point specialist using Winter Ankara He enjoy cleaning stove pipes every others However I confess point hrkish could Used worthwhile projects heating To extent these Turkish lignite deposits following interest Drawn Mineral Research Exploration Institute Ankara R Page5 Coal mined century recently systematic prospecting launched Exploratory drilling still progress estimate would place total reserve roughly billion This probably adequate Turkish miners anohe hundred years hatever estimate accepts eserve large enough increasing requirements Turkish Industry private householders support profitable expor trade Append I II summarize Tuklsh production consmptlon figures zatlon Pior there major owners mines about Zonguldak The larges single concession owned French accounted about production Another mines owned various Turkish companies Imcludlng I Bank The balance divided among several smaller operators including certain Italians At there shafts which mettle annually These private concessionaires worked hlckes profitable seams without modern methods equip They seams partially developed state popetles extremely condition The underground layout undul complicated dlsoganlzed sequenly Inefflclen In Turkish Government It legally expropriating entire field former owner Placed control enterprise Etl Bank Turkey State owned development banks reality holdin companies The Eregli KSmrleri Iletmesi The Eregli Coal Exploitation known locally EKI administer enterprise It oganized along lines ordinary corpgration Government Eti Bank stockowner By exploitation fields concen trated apolnt where there exlated shafts operation producln annal metric It hoped EEI offlclala process concentration carried forward point where shafts operation those producing annually metrlc The development Zonguldak field involves estimated ECA financing See Letter Partll money secqnd important ECA Turkey equipment being first The Turkish Government matchln these dollars investment estimated7 S76 interviewihisasoyak DirectotGeneralof theEPeliKmr lletmesi Ereli Coal Exploitation onguldak February Deviopment Coalfield onguldak presented E aiSnd ataShi TurkishMinistry Economy presumably Spring Interview lhsan Soyak refer above Max Thornburg Turkey Economic A Cent Fund NY epo_rt DiOpmB Ht6f oalfio__f Zqr Detailed statistics presented Cemil Salt Bark Director Construction Department EKI Zonguldak 2February RDR Page4 Because Turkish Government possesses engineers technicians sufficiently cognizant modern mlnin methods equipment EKI entered contract Koppers Company Pittsburg assist EKI coordination supervision contracts being carried ECA assistance development coalfields The Paul Wer Company Chl employed frnlsh consulting englneem mining operations Fred Snare Company New York provlde consulting engineers Zonguldak harbor development The construction contract Dutch company Zonguldak harbor construction contracts sometime Summer there least dozen foreign companies working fields various sundry projects Specifications being interested European U S exception those located USSR satellites Bidding anyone The entie project modernize field should completed sometime According General Joseph Mehaffey chief repre sentative Koppers Company Zonguldak The program thought coordinated All projects General havetobeflnlshed about program effective He pointed further There dagglng things Under program construction proceed uneconomic finished T Problems EKI management fields faced three challenge which being licked This unruly triumvirate consisted shortage electric power congested transport limited capacity The constructi kilowatt steam generating plant CatalazY inaugurated response first Of these problems Mention Britlsh built power station Letter Although capacity station exceed 14000 EA financed power Kandilli Istanbul completed thought plant trouble selling kilowatt capacity The station delivers power Zonguldak fields cents kilowatt When plant commences operate capacity price mines should about cents Istanbul cents This month station begun furnlshin power light streets nearby villages Bey Director Energy EKI appeared intrigued possible impact electricity Anatolian rural Long P prepared Turkish State pecial ECA Mission Turkey secured Ministry Mission Ankara September ankly amitted Cecil Sait Bark Refer above Interview Maor General retired Joseph C Mehaffey representatlve Koppers Company Zongdak Februy Supra The major bottleneck getting fields dearth mechanical loading equipment Zonguldak limited amount protected anchorage available As constituted completely north sheltered n0rth It these conditions permit perhapd loading Present loading capacity exceed metric Thanks ECA flnanclng these dlffl cultIss rapidly being solved A protected aptiIclal harbor equipped adequate loading equipment under struotlon Dutch omoen Netherlands Harbor Co Ltd 0peraion based loading agalns present It construction possible sorts weathe simultaneous loading least ships exceeding weight directly docks hourly Admittedly however access harbor extremel hzardous considerable period Refe Figures photographic presentation problem solution The Erell lying miles Or Zonulak likewise coming liftlng operation The Turkish Ministry Public Works undertaken Job along Ith sandad gauge connection between Armhtuk mlnes Coal Kandilll colllery brought point aerial tamway I At other eastern Zonguldak field shlpp_ed interior loading point CatalaEzT About daily dispatched Zonguldak This total probably greatly Increased The third hurdle faced EKI inadequate washerles Those operation ancient extremely inefficient effect Of controlling smount marketable moved mines No operation washeries combined hourly capacity GO metric Since close washed reason content unwashed about washed obviously impossible increase amount marketable without enlarging washing capacity working these asheries hours possible process current daily production metric Finally lSMocan Director Energy EKI CatalagzT Powe Station February The verage price electricity US ultimate residential areas industry In Gazlantep wepald We paylnE Ankara US prices calculated S bstract Un tates Deoartment Commerce Bureau Census See Letter brief dscription Supra pages Sl Ibid pages Ibld Ibld Ibld interview John V repre senting Paul Weir Co Inervlew Zon6uldak Fuat Karayazc Supt Gellk Mine Zonguldak RDR Figure A loading equipment available Thi Zonuldak picture taken point Y indicated Figure below Figure An unfriendly coast fronts Zongul Coal Fields This taken looking eastward directly Zong uldak Harbor position X Figure below The first Zongml Point Figure An artist conception Port Zonguldak constr uction progress completed The breakwater existing shown betwe points A B Present loading equipment located fronting point Y RDR Pag yasheres absence flotation plants there runoff onsequently E fnancng three larger washes combined hourly capacity metic All three these equipped process flotation Once the_se improvements transport washerles oganlzed following manner Coal Asma aydama K transported Zonguldak harbo thence Coal Kirellk Armutuk shafts moved Eregll Coal Karadon shunted interior The three washeles built Zonguldak waterfront Eregl Karadon The probl remains mechanize mining operation greater degre At moment digging working faces largely manually operated shovel There mules still being underground transport poses power Both however gradually being replaced small diesel locomotives conveyors Shipments mining equipment began arriving December The largest single seems portable conveyors underground This equipment remains stacked warehouses above ground because electrical apparatus which power appearance It Zonguldak project involves following important moves I Construction adequate facilities Zonguldak Erel Construction larger modern washerles Underground mechanization With these improvements boost increase washed production recorded between This means upping percentage clean relation estimated Refer Appendix I FiPance The Zonguldak field State subsldized operation inasmuch price below production In EKI balance sheet showed Turkish In EKI official application EGA financial deficit reflect financial situstion Government attempted lower living COmments bmISait Bark Director Construction EKI during Zongulda field February Supra Supra Supra RDR Page In calculated C_Ost_price mined Zonguldak loaded aboard The average salesprice EKI The current price consuming public A I metric According official hopes production expected EKI officials likewise projected increase exports bring profit In relation EKI invested capital profit would represent return Labo_ Here elsewhere Turkish State enterprises labor beneficiary inclusive paternalism In fields workers singly State furnished bachelor barracks Work clothes meals lodging health serviqe movies furnished charge Other cigarettes coffee there little separate worker earnings The majority workers peasants surrounding consequently constitute stable labor force This peasant labor organized Sections A B Section A works without break replaced B during which period A returns villages fields In other words there complete turnover labor every This sounds workers requied return Job continue working mines It average miner village after about Turkish V1 pocket Th stake indlcates daily between G0 TL By adding board lodging health service clothing receives upped least between Miners income which normally consumes about wages workers mines about normal There military labor mines there certain number victs first offenders particularly those convicted crimes passion given option working mines option being given after prison record three years behavior The convicts separate barracks report guard stationed there Otherwise permitted freedom Zonguldak vailing This until their sentences served which receive amount Supa Ot average wholesale price US mettle Calculated figure given Statls_tlca_l Absrac United States He He metric Ibld Supra above Interview lhsan Soyak See Comments Cemll Salt Bark Refer Ibld RDR Page As Xndlcated previous letter critical labor problems faced managemen relate matters transportation rainig housing Housing workers their families largely exlstent Company owned houses labor number I Consequently about labor force permanent This portion includes skilled labor In absence roads vehicular transport between village field impossible Adequate training centers workers organized As mining operation becomes mechanized labor force better trained stabilized Althouh developed these problems steps toward realization theoL The called labor syndicate Zonguldak mines insofar I could philanthropic organization It partakes collective bargaining collective bargaining permitted EKI On syndicate would appear People Party organization which cannot claim represent miners I write Turkish labor organization I dwell greater length aspect Zonglldak scene The following statement seems reveal frankly attitude EKI management labor It these sources labor furnish docile easily managed personnel follow suggestion without thought easily trained Cgmmen The chief published economic commentary Turkey posed Hax Thornburg Jthe Twentieth Century Fund In brief thesis cases Irkish Government would better business industrial enterprise private enterprise preferably American could better There least legitimate doubt Granted __American enter prise might better beside point The issue between private public _TUFkih enterprise Thornburg progress mines Some effort devotedto cleaning under ground workings little progress viding modern hoisting equipment other badly needed facilities surface Unfortunately however money spent elaborate buildings adminis tration employees recreation parks shops garages other accessories which direct relation mentary necessities mining The result seven years state operation production million million judged increased markedly This figure moreove orresponds etter47 P Inervlew Karayazc Rfer Report Develment Coalfield Zonguldak inter6sto0tet stabilized labor force extreme eastern egion Black Sea around Trabzon Fankly admitted Cemll SAlt Bark Refer Supra Thornbur In RDR Page I0 production unwashed which contains large proportion slate other unsalable material StatistiCs actual shipments indicate marketed The emphasis statement particularly condemning Thornburg Turkish Government mines almost immediately isolated warring world It could nature things import mining equipment During period therefore Government admittedly concentrated eff6rts building surface Installations bettering conditions furnishing hosing hospitals recreation facilities drawing plans modernization mines could again access world markets Perhaps there waste lavishness BUt Thornburg claims elationship between administrative buildings employees recreation parks garages elemen necessities mining Others EKIimproved labor conditions alone onideologicalrounds obvious economic If labor conditions bettered there would precious little incentive ncreasing numbers village farmers leave their fields mines Further improved working conditions contribute toward greater efficiency For instance villagers living bache existence consume adequate sustain heavy labor required mines Tuber culosis instance always serious problem region The Government trying something about In human cormiderations before purely financial The antiquated equipment EKI could production asVover years itself remarkable achievement And productlon increased would itself constitute condemning agument Thrkey could import reason In factories operation transport running forced production regardless That Turkish Government compelled subsidize admittedly uneconomic production strange Inreality subsidization still distributin national income equitable fashion Without subsidization Turkey economic class spend exceedingly uncomfor table Winters Turkish miners workin under difficult conditions results would their villages other perform efficiently Coal production Zonguldak mines steadily increase Over period boost production registered Refer Appendix I Furthermore private operation percentage marketable washed compared unwashed In spite growinE inefficiency washeries centage ensuing years government ownership The record would viewed RDR Pag II Thornburg point Production eight shift little under averaged since state operation installed though In Pennsylvania mines Ins similar thickness average about shift times American mines equipped modern machinery considerably hiFer efficiency This statement reference Turkey could modern mining equipment tried TurEish mines under previous privt manage vastly efficient American mines period Th level productivi maintained spite increased production little improvement H eient facilities saying great Thornburg makes further statement Differences accounting nthods fluctuating ratee esgimates dollars uncertain figures whereas under foreign owner uwashed ranged tripled under state ownership between Just I would these figures largely meaningless general price level TRrkey War years Refer Letter other words retained price level actually lowered Q Thornburg daily wages nearly doubled account third increase since wages comprise total The burden comes higher administrative expenses charges additional development which above ground contributes nothing actual production higher costs material named being important What Thornburg apparently misses share rising administrative being poured social service workers decent living quarters meals hospitals recreation In other words penditures facilities Far claim there consisted increase wages waste higher administrative levels unnecessary guest houses administrative buildings automobiles Thornburg analysis shallow condem Ibid EDR Page above ground development contributes nothing production iffiCult tofollow critical bottlenecks holding production found above ground namely inadequate washeries congested transport There further point A State management furnish management decent living quarters order attract notch ability For purposes comparison therefore surface Insltallations privately owned Stateside mines include homes clubs automobiles private mining company officials This comparis Thornburg about price So government subatantial order available Turkish railroads industry Exports which between under private ownership disappeared entirely partly because could compete foreign markets without government subsidy partly because domestic consumption slender though comparison potentialities presses inadequate output In place Government thereby distributing burden entire economy certain segments population would suffered while others would remained relatively unaffected It already explained doubt sweeping asstmption private enterprise could better under circumstances As exports stopped reason Turkey needed herself Even today private consumer drastically rationed Last Winter arguing Turkish people limited If rationing discarded demand would skyrocket The Government reason control price distribution And there amongthose responsible policy cutting private householder distribution gether inadequate supply Under these conditions Thornburg S think something amiss because Turkey exporting I follow reasoning The produced before under private management found foreign markets possibly indicates Turks prices offered allowed Thornburg makes general criticism Whatever excuse management ground __inexperience training mining operations cahnot absolved squandering large funds disposal inflated staff above ground In engineering terms improved performance exploitative foreign owners financial terms worse As matter small quantity flowing country Re_fer Appendix I RDR Page It hOnest opinion statement gross misrepresentation facts arising perhaps Thonbr prejudice favor private enterprise That opinion based talks American engineers working Zonguldak logic It source little amazement EKI little Performance terms production definitely improved Refer Appendix I Performance narrow financial sense necessarily poore A forced increased production aging equipment inefficiency It difficult could otherwise But performance In b2oader financial sense quite passable Financial policy relation mines determined mining operation itself social economic needs country consideration about which I believe ither private Turkish management former foreign owners would worried themselves unduly Thornburg states blunt Eight years state operation mines negligible improvement quantity clean produced costs As Appendix I shows first statement quite frankly untrue unless increase considered insignificant And realizes Turks working vJith washeries getting considerably older private concessionaires ousted little achievement As second statement relating figures Thornburg presents unimpressive reason consideration rapidly rising level general prices On other I certainly claim producing risen logic alone tells under circumstances And important factor state War increase production aging outmoded equipment necessarily absence private enterprise Thornburg another American epert apparently Turkey conceived conviction private enterprise anywhere nature superior State enterprise This prejudice unfortunately through Thornburg Turkish study point makin hiFhly unreliable I tried demonstrate discussion Zonguldak field Apparen little For economist technical effort other analyst blindness perhaps understandable other often analyzed terms social evolution national psycholog lthou Zonguldak rgent against economic State ownership Is difficult sustanf based grounds Thd IbldI RDR PaEe If State stepped Zonguldak fields seems almost evldent labor conditions would lower level thereby bringing about dangerous political unrest perhaps efficiency The sales price would higher present below price reason scarcity production economic level eason productlon stepped Consequently lower class dwellers would without without matter belng Probably there would increase production under EKI management Private companies lacking ccess equipment could afforded rising inefficiency hence hlgjer inherent increase production Thornburg indicates advantages private enteprlse personal responsibility solvency competitive prices financial incentives management lmportant productive process The urkIsh Government other seems Belleve these advantages cases outweighed social national considerations certain industries should subsidized emporarily spread burden bring their products within financial grasp People workers should tlmes working condUCtions higher perhaps merited their production another redistributing nationsl income recognition service nation adequate substitute financial incentive bureaucracy large corporation almos irresponsible government government party sufficient capital available develop Large Industries adequately private Turklsh buslness developed social consciousness point which makes trustworthy manager vitsl national industries On point mention Turky exlst consumers unions Bette Business Bureaus labor unions worth Farmers Grange schools business management dealing primitive society without organized vocal conscience Does Turkey through bithpang founding trUlY liberal economy It question begged Thornburg treatise The Turkish Government tying desperately fence myhlcal mugump other Sincerely yours Richard D Robinson RD Page Apendlx I PRODUCTION OF THE ZONGULDAK C0AL FIELD In metric Total Total Market Exports Mine Coal Total Ssles Bunkers Semi Briqu Year_ unwshed W in_Tur For I I I I 323000 844000 I713000 505001 723528 202i15 14792 875511 i842950 55563 23199 I 54460 I862 46511 076512 34847 560000 W 2660000 660000 00000 660000 I00 910000 720000 2970000 750000 Note References following FD Figures taken Report Deveooment Cealfleid Zonguldak Ot source tables given Zonguldak EKI figure taken Hurrlyet newspaper Januy purports offleal EstlmatS taken E_eoor o_omet Coalfield Zonguld Fiuesfori9 I 36fromIktlsadl Trklye General Directorate Statistics nkaPl6atiNO flgea represent totals figes estates taken Report Deylont Zouldak L1936 figures takefro Bal I00 figures f0mttiSial nnuaof Tkey General Directorate Statistics Ankara Publication Nber figures E R Lingemans Economic Coercial_ Conditions His Mesty StatioH o_flce London I igures Report Development Coalfield Zonguldk fiEuB Iktlsadl timal Tk figures fr0mthe l2lg45 tatIstlc Aual Tkey fiEures Di icart Yilllk Isttistlk General Directorate Statitlcs P estimates fromRepr_oteveopmenotC0alfelo0nida IV6 figures Ikt ltlma Trie I00 figures Statistical Turkey S flguresBsmnEm Sas above RDR Pag Appendix II DIVISION OF COAL CONSUMPTION INSIDE TURKEY P0R AMONG THE VARIOUS CONSUMERS Conss Admiralty Milltary Factoties Stats Railways State Merchant Marln Power Plant Gas Istanbul Gas Beyoglu Power Plant Ankara Industries Financed Sumer Bank Copper Mines Erganl Anedolu Cement Cement Millm Zeytlburny Cement Darlc 81vas Cement Mill Suga actoris Glass Factories State Monopolies SplrltsTobacco Matches Water Company Istanbul Chrome Company Fethly Bunkers Dmestic Consumption Istanbul Domestic Consumption Izmi Domestic Conmnnptlon Mersln Domestic Consumption Ankara Domestic Consiunptlon Eskiehlr Small Concerns Miscellaneou TOTA L Source Report Development Coalfield preente EEC Prls Hd thsCA Washington Turkish Ministr Economy presumably Spring Received New York