- 2k - 



Separate statistics on exports of cigar tobacco from Brazil are not 

 available but total exports of tobacco, a large share of which consists of 

 Bahia cigar leaf, are substantial, ranging from 62 to 69 million pounds in 

 1955-59* In i960, exports totaled 68 million pounds. Leading markets for 

 Brazilian tobacco are Spain, the Netherlands, Germany, Denmark, France, 

 Switzerland, Uruguay, Algeria, and Belgium. 



Paraguay 



Until 1961, only a negligible quantity of cigar tobacco from Paraguay 

 entered U. S. consumption; but in the first half of 1961, 139,000 pounds of 

 unstemmed filler (average value excluding duty, 15 cents a pound) and 46,000 

 pounds of scrap (average value excluding duty, 29 cents a pound) were imported 

 for consumption . Total arrivals of unstemmed cigar filler from Paraguay in 

 i960 amounted to about 370,000 pounds. In the first half of 1961, total 

 arrivals of unstemmed filler jumped to 1.1 million pounds, and 2^0,000 pounds 

 of scrap also arrived from Paraguay. 



The greater portion of Paraguay's tobacco production consists of light 

 or "flojo" type leaf, and the remainder, dark or "fuerte" leaf, usable as cigar 

 tobacco. Production of "fuerte" leaf in the 1950-59 period averaged a little 

 under h million pounds, ranging from about 2 to 5 million. Output in i960 is 

 estimated at about 5 - lA million pounds. 



Available statistics on exports of Paraguayan tobacco do not separate 

 leaf and manufactured tobacco. Combined exports in 1959 totaled a little over 

 5 million pounds, of which Belgium and the Netherlands each took roughly a 

 third. Exports jumped to Ik million pounds in i960 — the largest in any recent 

 year. Paraguay reportedly has the potential to increase tobacco production, 

 and it is possible that exports may expand further. 



Peru 



In 1959> U. S. imports for consumption of scrap from Peru were 60,000 

 pounds. In i960, such imports soared to over 1-1/2 million pounds (average 

 value excluding duty, 33 cents a pound) but in the first half of 1961 the 

 quantity entering consumption dropped to 286,000 pounds. 



Imports of Peruvian scrap for consumption derive from almost 6 million 

 pounds of unstemmed cigar filler that arrived in the United States in 1959 and 

 entered bonded storage. As this unstemmed filler is processed into scrap and 

 withdrawn from storage into consumption channels, it appears in statistics on 

 "imports for consumption" as "scrap." Judging from the quantity of scrap 

 already reported in "imports for consumption," approximately 2-3 A million 

 pounds, scrap equivalent, remain of the original importation from Peru. 



Recent reliable statistics on Peru's tobacco production and utilization 

 are scanty. The most recent production figure relates to 1957> when some 

 10-1/2 million pounds were harvested. This compares with less than 2 million 

 pounds prewar. The bulk of production in Peru is dark air-cured, cigar- type 

 tobacco, some of which is crossed with Cuban and Sumatran varieties. Exports 

 of unmanufactured tobacco in 1959 (the latest year available) totaled 6 million 



