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reduced to about 2,800 flasks. The 1948 production is not expected to exceed 29,000 flasks. Monte Amiata and Siele have decreased their respective outputs but these companies are still forced to keep a larger number of workers than are necessary. The two small Italian firms, S. A. Mineraria Argus and Soc. Italiana An. Mercurio, have been hard hit by this crisis. Argus has shut down and dismissed its workers, while the output of SIAM has been severely curtailed. Conferences of industrialists, workers and exporters have been held to determine how the situation can be improved. The Italian Government has assured the industry that it will endeavor to include mercury in future trade agreements in an attempt to reduce stocks. The mercury producers are endeavoring to obtain credit from the government, a reduction in taxes and transport fees, and the right to reduce their labor forces at will. The government is believed to have approved a fifty percent reduction in the labor force and a reduc- tion in output to about 2,200 flasks a month. (Detailed descriptions of Italian mines are given in Charts Nos. XII and XIII.) MEXICO The mine output of mercury increased from 7,376 flasks in 1939 to a peak of 32,443 flasks in 1942. Initial stimulation was the high price being offered by the Japanese. The UK and US were the chief recipients of exports before the war, with small quantities going to South American countries. Japan offered a higher price than the US in 1940 and 1941 and received large quantities. An agreement reached in July 1941 between the US and Mexico provided that the former would obtain the surplus produc- tion of certain strategic commodities, including mercury, then placed under export control by the Mexican Government. The US obligated itself to acquire surpluses of metal over and above that sold through regular channels to nations in the Western Hemisphere having export limitations in effect similar to those in Mexico. Toward the end of 1943 demand for mercury eased and prices began to decline, as did mine output. By 1947 production had fallen to about 9,700 flasks with a further drop expected in 1948. At the present low price Mexican producers are finding competition more difficult than in prewar years. Costs and taxes are higher than ever, and it is difficult to continue operating. Mercury deposits are widely distributed in Mexico. Occurrences have been reported in more than 200 localities scattered through two-thirds of the States of Mexico. There are six major districts: Nuevo Mercurio, Zacatecas; Sain Alto, Zacatecas; Canoas, Zaca- tecas; Cuarenta, Durango; Huitzuco, Guerrero; and Huahuaxtla, Guerrero. The Nuevo Mercurio district is in the desert country of northern Zacatecas and was discovered in 1940. It was the largest producer during the war, accounting for more than 7,000 flasks annually in peak years. The district is made up of a few low limestone hills in a wide expanse of sand flats. Water has to be shipped forty miles by rail and fifteen miles by truck. Mineralization is largely found at intersections of faults in anticlines. There were sixteen principal mines and fifty smaller mines operating at Nuevo Mer- curio during the war with over 200 prospects. Over 900 retort tubes were in opera- tion in Mexico in the early years of the war, but by early 1943 these had been replaced by the newly developed Manfrino and by Herreschoff furnaces. 16

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    "ocrText": "reduced to about 2,800 flasks. The 1948 production is not expected to exceed 29,000\nflasks. Monte Amiata and Siele have decreased their respective outputs but these\ncompanies are still forced to keep a larger number of workers than are necessary.\nThe two small Italian firms, S. A. Mineraria Argus and Soc. Italiana An. Mercurio,\nhave been hard hit by this crisis. Argus has shut down and dismissed its workers,\nwhile the output of SIAM has been severely curtailed. Conferences of industrialists,\nworkers and exporters have been held to determine how the situation can be improved.\nThe Italian Government has assured the industry that it will endeavor to include\nmercury in future trade agreements in an attempt to reduce stocks. The mercury\nproducers are endeavoring to obtain credit from the government, a reduction in taxes\nand transport fees, and the right to reduce their labor forces at will. The government\nis believed to have approved a fifty percent reduction in the labor force and a reduc-\ntion in output to about 2,200 flasks a month.\n(Detailed descriptions of Italian mines are given in Charts Nos. XII and XIII.)\nMEXICO\nThe mine output of mercury increased from 7,376 flasks in 1939 to a peak of 32,443\nflasks in 1942. Initial stimulation was the high price being offered by the Japanese.\nThe UK and US were the chief recipients of exports before the war, with small quantities\ngoing to South American countries. Japan offered a higher price than the US in\n1940 and 1941 and received large quantities. An agreement reached in July 1941\nbetween the US and Mexico provided that the former would obtain the surplus produc-\ntion of certain strategic commodities, including mercury, then placed under export\ncontrol by the Mexican Government. The US obligated itself to acquire surpluses of\nmetal over and above that sold through regular channels to nations in the Western\nHemisphere having export limitations in effect similar to those in Mexico. Toward\nthe end of 1943 demand for mercury eased and prices began to decline, as did mine\noutput. By 1947 production had fallen to about 9,700 flasks with a further drop\nexpected in 1948. At the present low price Mexican producers are finding competition\nmore difficult than in prewar years. Costs and taxes are higher than ever, and it is\ndifficult to continue operating.\nMercury deposits are widely distributed in Mexico. Occurrences have been reported\nin more than 200 localities scattered through two-thirds of the States of Mexico. There\nare six major districts: Nuevo Mercurio, Zacatecas; Sain Alto, Zacatecas; Canoas, Zaca-\ntecas; Cuarenta, Durango; Huitzuco, Guerrero; and Huahuaxtla, Guerrero. The Nuevo\nMercurio district is in the desert country of northern Zacatecas and was discovered in\n1940. It was the largest producer during the war, accounting for more than 7,000\nflasks annually in peak years. The district is made up of a few low limestone hills in\na wide expanse of sand flats. Water has to be shipped forty miles by rail and fifteen\nmiles by truck. Mineralization is largely found at intersections of faults in anticlines.\nThere were sixteen principal mines and fifty smaller mines operating at Nuevo Mer-\ncurio during the war with over 200 prospects. Over 900 retort tubes were in opera-\ntion in Mexico in the early years of the war, but by early 1943 these had been replaced\nby the newly developed Manfrino and by Herreschoff furnaces.\n16"
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