121. “Joint Report . . .,” January 3, 1942. The BEW discussed the work of the undercover businessmen with the “Coordinating Committee” in Lima, which was a group of local businessmen who worked with the embassy carrying out the program of the Coordinator of Inter-American Affairs. The Coordinating Committee assured the BEW its “100% cooperation.” The members of the Coordinating Committee included “W.R. Grace & Company, Cerro de Pasco and the International Petroleum Company” who were among the largest “American business interests in Peru.” See “Joint Report . . .,” January 3, 1942.
122. US Embassy, Lima to US Secretary of State, February 1943, Dispatch No. 203, “Peruvian Foreign Trade in February, 1943”; File 33013; A1/Entry500B; BEW; FEA; RG 169; NACP.
123. “Regulations for the Registration and Reregistration of Pharmaceutical ‘Specialties’,” US Embassy Lima to the Secretary of State, Dispatch No. 7875, September 17, 1943; File 63611; A1/Entry500B; BEW; FEA; RG 169; NACP; US Embassy Lima to Secretary of State, Dispatch No. 183, April 27, 1944; File 102195; A1/Entry500B; BEW; FEA; RG 169; NACP.
124. Dorn, Truman Administration and Bolivia, 61–66.
125. Embassy Lima to Secretary of State, Dispatch No. 436, October 2, 1944; File 129227; A1/Entry500B; BEW; FEA; RG 169; NACP.
126. “Legal Narcotics Control,” Julian Greenup, US Embassy Lima to Secretary of State, October 6, 1944, Dispatch No. 1631; Folder 2, 1942–1944; File 0660, Peru; 71-A-3554; DEA; RG 170; NACP.
127. Herbert Gaston, Assistant Secretary of the Treasury to George A. Molock, Office of Far Eastern Affairs, Secretary of State, June 15, 1944; Folder 2, 1942–1944; File 0660 Peru; 71-A-3554; DEA; RG 170; NACP.
128. “U.S. Industry to Get Technical Drug Data Dug Out of Germany: American Pharmaceutical Industry and Government Joined Forces to Organize Intelligence Teams,” Drug Trade News, September 10, 1945.
129. Leland Harrison, Minister of the US of A in Berne to Sean Lester, Acting Secretary General, League of Nations, February 16, 1944. Folder: “Post-war Drug Control in Territories Which Come under the Jurisdiction of the Authorities of the United Nations”; 12/42326/41702; Box R5031, RG 8, 749; LNA.
130. UN, CND, “Report to the Economic and Social Council on the First Session of the Commission on Narcotic Drugs Held at Lake Success, NY, from 27 November to 13 December 1946” (United Nations: 27 January 1947): E/251, 26.
131. US House, Committee on Appropriations, Treasury Department Appropriations Bill for 1946, Hearings before the Subcommittee of the Committee on Appropriations House of Representatives, 79th Cong., 1st sess., 17 January 1945, 150.
132. United Nations, “Report on the 1st Session,” 79.
133. US House, Committee on Appropriations, Treasury Department Appropriations Bill for 1947, Hearings before the Subcommittee of the Committee on Appropriations House of Representatives, 79th Cong., 2d sess., 12 November, 1945 (Washington, DC: US Government Printing Office, 1946), 94.
134. United Nations, “Report on the 1st Session,” 65–70 [emphasis in the original].
135. The Permanent Central Opium Board was created by the 1925 International Opium Convention, and the Drug Supervisory Body was created by the 1931 Convention for Limiting the Manufacture and Regulating the Distribution of Narcotic Drugs.
136. Kinder and Walker, “Stable Force,” 922. For a similar argument about the war’s role in making the United States “the dominant force behind narcotic control,” see David R. Bewley-Taylor, The United States and International Drug Control, 1909–1997 (New York: Pinter, 1999), 44.
137. UN, CND, “Report to the Economic and Social Council on the First Session of the Commission on Narcotic Drugs Held at Lake Success, NY, From 27 November to 13 December 1946” (United Nations: 27 January 1947): E/251, 11.
138. McNutt, “How Do We Stand on Medical Drugs?” 334–335.
139. United States, Department of Commerce, Office of International Trade, “Overseas Sales of United States Drug Products,” World Trade in Commodities 7, part 3, no. 19 (Washington, DC: US Government Printing Office, January 1949).
2. “RESOURCES FOR FREEDOM”
1. US Military Academy, Department of Social Sciences, Raw Materials in War and Peace (West Point, NY: USMA AG Printing Office, 1947), 129–30.
2. Lizabeth Cohen, A Consumer’s Republic: The Politics of Mass Consumption in Postwar America (New York: Vintage Books, 2004), 124.
3. For more sources on postwar consumer culture, see George Lipsitz, Rainbow at Midnight: Labor and Culture in the 1940s (Chicago: University of Illinois Press, 1994); Elaine Tyler May, Homeward Bound: American Families in the Cold War Era (New York: Basic Books, 1999).
4. Michel Foucault, Discipline and Punish: The Birth of the Prison (New York: Vintage, 1995), 87.
5. A.L. Tennyson to Mr. Wood, Memo, January 11, 1946; “Surplus Narcotics” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
6. Secretary of Commerce to Mr. H.J. Anslinger, Commissioner, Bureau of Narcotics, July 24, 1945; “Surplus Narcotics” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
7. H J Anslinger to Mr. Gaston, Inter-Office Communication, Treasury Department, July 25, 1945; “Surplus Narcotics” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
8. A.L. Tennyson to Mr. Wood, Memo, January 11, 1946; “Surplus Narcotics” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
9. Director, Personal Property Utilization Division to Administrative Officer, FSS, Office Memorandum (draft), August 14, 1953; “Drug Disposal Committee: Procedures File” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
10. Itty Abraham and Willem van Schendel, “Introduction: The Making of Illicitness,” in Illicit Flows and Criminal Things: States, Borders, and the Other Side of Globalization, ed. Willem van Schendel and Itty Abraham (Bloomington: Indiana University Press, 2005), 7.
11. The Clearfield Naval Supply Depot, built in 1942, was the Navy’s largest inland distribution center. The location was chosen because of the large amounts of land available, distance from potential enemy air attacks, and the access to highways and railroads that made it a hub of production for the Pacific fleet.
12. James J. Higgins, District Supervisor to H.J. Anslinger, Commissioner of Narcotics, July 16, 1947; “Surplus Narcotics” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
13. Ibid.
14. Ibid.
15. Ibid.
16. Thomas G. Paterson and Robert J. McMahon, eds., The Origins of the Cold War (Boston: Houghton Mifflin, 1999); John Lewis Gaddis, The United States and the Origins of the Cold War, 1940–1947 (New York: Columbia University Press, 1972); Melvin P. Leffler and David S. Painter, Origins of the Cold War: An International History (New York: Routledge, 1994); Henry Heller, The Cold War and the New Imperialism: A Global History, 1945–2005 (New York: Monthly Review Press, 2006); Odd Arne Westad, The Global Cold War: Third World Intervention (New York: Cambridge University Press, 2007).
17. Thomas McCormick, “‘Every System Needs a Center Sometimes’: An Essay on Hegemony and Modern American Foreign Policy,” in Redefining the Past: Essays in Diplomatic History in Honor of William Appleman Williams, ed. Lloyd C. Gardner (Corvallis: Oregon State University Press, 1986), 205.
18. US Military Academy, Raw Materials, 82, 168.
19. “Key U.S. Agencies Move to Speed Up Mobilization Plans for the Drug Industry,” Drug Trade News, December 25, 1950.
20. Committee on Appropriations, Treasury Department Appropriation Report for 1943, Hearings, 77th Cong., 2d sess., 1943, 160, as cited by John C. McWilliams, The Protectors: Harry J. Anslinger and the Federal Bureau of Narcotics, 1930–1962 (Newark: University of Delaware Press, 1990), 96.
21. See James Willard Hurst, A Legal History of Money in the United States, 1774–1970 (Lincoln: University of Nebraska Press, 1973), for an extended discussion of monetary policy history in the United States.
22. Associated Press, “50 Armored Trains to Carry Federal Gold,” New York Times, August 8, 1
936, 1.
23. Associated Press, “Opium Put in Vaults of Treasury,” Deseret News, March 8, 1940, 2. Some of the stores must have in fact been owned by the government, particularly those seized from the illicit trade, although they did solicit manufacturers at times to purify those stores, under unclear terms of proprietorship.
24. Thomas Wadden Jr., “We Put the Heat on Washington Dope Peddlers,” Saturday Evening Post, October 3, 1953; Joseph Paul, “Theft of Drugs from Treasury Is Revealed,” Washington Post, May 24, 1952, 1–2. The exposé and incident are also discussed in McWilliams, Protectors, 122–23. The Washington Post piece also drew comparison to the “‘missing marijuana’ of the John R. Weatherbee case” of the previous year where local police seized 193 pounds of marijuana but reported it on official records as 94.02 pounds and never explained the discrepancy.
25. Wadden Jr., “Heat on Washington Dope Peddlers.”
26. US House, Committee on Appropriations, Hearings before the Subcommittee on Appropriations for Treasury and Post Office Departments, Treasury Department Appropriations Bill for 1950, 81st Cong., 1st sess., 26–28 January, 1–4, 9 February 1949, 275–76. Since 1937 under revised domestic drug laws marijuana had been included on the list of substances falling under the jurisdiction of the FBN; however, with no recognized medical or scientific uses, there was deemed to be no legitimate market for the drug.
27. H.J. Anslinger, Commissioner of Narcotics to A.J. Walsh, Commissioner Emergency Procurement Service, General Service Administration, September 8, 1952; “Drug Disposal Committee: Procedures File” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
28. US House, Appropriations for 1950, 276.
29. Jenner G. Jones, Colonel, MC, Chief Supply Division, Department of the Army to Commanding Officers, AM, LV & SL Medical Depots, Medical Supply Officers and AT & SY General Depots, April 29, 1952; “Drugs Disposal Committee: Procedures File” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP. After the passage of the 1937 Marijuana Tax Act, cannabis would be included in the narcotic control regime as well within the United States, and at US insistence, would fall under international drug control convention of 1961. See David R. Bewley-Taylor, The United States and International Drug Control, 1909–1997 (New York: Pinter, 1999), 85.
30. H.J. Anslinger, Commissioner of Narcotics to A.J. Walsh, Commissioner Emergency Procurement Service, General Service Administration, September 8, 1952; “Drug Disposal Committee: Procedures File” File 0450–7; Box 62; 170–74–4; DEA; RG 170; NACP.
31. H.J. Anslinger to A.J. Walsh, September 8, 1952.
32. United States, Office of Defense Mobilization, The Story of Defense Mobilization: How the United States Is Building Its Might in Order to Avert a Third World War (Washington, DC: US Government Printing Office, 1951).
33. “The President’s Letter—Jan 22, 1951,” in Resources for Freedom (see following note), June 1952, vol. 1.
34. United States, The President’s Materials Policy Commission, Resources for Freedom: A Report to the President by the President’s Materials Policy Commission (Washington, DC: US Government Printing Office, 1952).
35. Resources for Freedom, vol. 1, 153
36. Resources for Freedom, vol. 1, 1.
37. US, Story of Defense Mobilization, 21 [emphasis in the original].
38. Resources for Freedom, vol. 1, 16.
39. Resources for Freedom, vol. 1, 158.
40. Resources for Freedom, vol. 5, 138.
41. Resources for Freedom, vol. 1, 163.
42. Resources for Freedom, vol. 2, 103.
43. Resources for Freedom, vol. 2, 105.
44. Resources for Freedom, vol. 5, 148.
45. US, Department of Commerce, Office of International Trade, “Overseas Sales of United States Drug Products,” World Trade in Commodities 7, part 3, no. 19 (Washington, DC: US Government Printing Office, January 1949).
46. “U.S. Drug Makers: Overseas in a Big Way,” Business Week, February 5, 1955, 94.
47. “Drugs Stage a Recovery,” Business Week, May 7, 1949, 81. The novelty of the US postwar position seems to have been widely commented upon: “Back in 1939 the U.S. was a minor factor in foreign markets. Germany did about 75% of the business outside the United States The rest was divided largely among French, Swiss and British producers.” “U.S. Drug Makers,” Business Week.
48. Paul A. Kramer, “Power and Connection: Imperial Histories of the United States and the World,” American Historical Review 116, no. 5 (December 2011): 1391, 1375–76.
49. US, Department of Commerce, Office of International Trade, “Cultivating Health Products Manufacturing Opportunity—Abroad,” World Trade in Commodities 7, part 3, no. 76 (Washington, DC: US Government Printing Office, November 1949).
50. For a more detailed managerial analysis of pharmaceutical industry practices and their role in the Third World, see Gary Gereffi, The Pharmaceutical Industry and Dependency in the Third World (Princeton, NJ: Princeton University Press, 1983); Milton Silverman, Mia Lydecker, and Philip Lee, Bad Medicine: The Prescription Drug Industry in the Third World (Stanford, CA: Stanford University Press, 1992); Barbara Freese and Charles Medawar, Drug Diplomacy: Decoding the Conduct of a Multinational Pharmaceutical Company and the Failure of a Western Remedy for the Third World (London: Social Audit, 1982).
51. US, “Overseas Sales of United States Drug Products.”
52. McCormick, “Every System Needs a Center Sometimes,” 205–6.
53. Peter Temin, “Technology, Regulation, and Market Structure in the Modern Pharmaceutical Industry,” Bell Journal of Economics 10, no. 2 (Autumn 1979): 433.
54. The five firms in 1943 in the business of extracting alkaloids from drug raw materials included Merck & Co., Inc., Maywood Chemical Works, Mallincrodt Chemical Works, New York Quinine & Chemical Works, and Hoffman-LaRoche, Inc. These companies were bound to submit quarterly and monthly returns to the FBN accounting for imports, manufacturing output, and dispositions to ensure no production in excess of quotas established under the 1931 Convention and that the subsequent circulation of all drugs legitimately produced was tracked and accounted for. See US Treasury Department, Bureau of Narcotics, Traffic in Opium and Other Dangerous Drugs for the Year ended December 31, 1943 (Washington, DC: US Government Printing Office, 1944), 34.
55. Tom Mahoney, The Merchants of Life: An Account of the American Pharmaceutical Industry (New York: Harper & Brothers, 1959), 191–92.
56. Louis Galambos, Values and Vision: A Merck Century (Rahway, NJ: Merck & Co., c1991), 110–13.
57. Evelyn Schwartztrauber, “New Markets from New Drug Products,” Domestic Commerce, April 1944, 13.
58. Mahoney, Merchants, 197.
59. George W. Merck, “Official Report on Biological Warfare,” Bulletin of the Atomic Scientists 2, nos. 7/8 (October 1, 1946): 18.
60. “Merck,” Fortune 35, June 1947, 107–9; “What the Doctor Ordered,” Time, August 8, 1952, 44.
61. Fabian Bachrach, “George W. Merck Dies at Age 63,” New York Times, November 10, 1957, 86.
62. Galambos, Values and Visions, 87.
63. “Drug Industry Held Prepared for War Task,” Drug Trade News, July 24, 1950. Members of the committee included the pharmaceutical manufacturing houses, Merck, Parke, Davis, Squibb, Sharpe & Dohme, Abbott, Penick, Pfizer, and Mallincrodt.
64. US House, Committee on Appropriations, Hearings before the Subcommittee on Appropriations for Treasury and Post Office Departments, Treasury Department Appropriations Bill for 1952, 82nd Cong., 1st sess., 8, 9, 14–16, 19, 20 February 1951, 281.
65. “Merck,” Fortune, 185.
66. “Drugs Stage a Recovery,” 81. Other drug companies stock value increases provide a comparative context: Parke, Davis stock went from $1.77 to 1.89, by 1948 at 1.98; Abbott went from between 1.05 and 1.3 up to 5.95; Sharpe & Dohme went from .17-.41 up to 4.16; and finally Squibb grew from .65–1.23 up to 2.02.
67. “Growth Stocks and the Investor,” Barron’s 21, no. 50 (D
ecember 15, 1941): 13.
68. US, “Overseas Sales of United States Drug Products.”
69. “Drugs Stage a Recovery,” 81. Interestingly while US Merck had been severed from its German counterpart during WWI, connections persisted between the companies—particularly with regard to partitioning up the global market. This apparently ended during WWII when an agreement Merck had with Merck Darmstadt—to divide up the world and have rights to market products under the Merck name—was cancelled in 1945 (“by a consent decree growing out of an anti-trust suit”).
70. “Merck,” Fortune, 187.
71. Leon Gortler, “Merck in America: The First 70 Years from Fine Chemical to Pharmaceutical Giant,” Bulletin for the History of Chemistry 25, no. 1 (2000): 7.
72. Galambos, Values and Vision, 12, 17, 19, 125.
73. As per the announcement of the pending auction, “The Alien Property Custodian, under the authority of the Trading with the Enemy Act . . . found that the following shares of Maywood Chemical Works were the property of nationals of a designated enemy country (Germany), and vested such shares in himself to be held or sold in the interest and for the benefit of the United States.” And the details of breakdown of stock quantities and categories were as follows: 23.10% common stock, 29.28% participating preferred stock, and 32.85% cumulative preferred stock. See “Statement of Terms and Conditions relating to Public Invitation for Bids for Purchase of [Stock] of Maywood Chemical Works, Maywood, New Jersey,” Office of Alien Property, Department of Justice; “Drugs Beverages 1947–1959” File 0480–9; Box 63; 170–74–4; DEA; RG 170; NACP and “Announcement with Respect To [Stock] of Maywood Chemical Works,” Attorney General of the United States; “Drugs Beverages 1947–1959” File 0480–9; Box 63; 170–74–4; DEA; RG 170; NACP.
74. It was estimated that 42.5 percent of Maywood’s income from sales between 1945 and 1948 was from sales to Coca-Cola. “Statement of Terms and Conditions relating to Public Invitation for Bids for Purchase of [Stock] of Maywood Chemical Works, Maywood, New Jersey,” Office of Alien Property, Department of Justice; “Drugs Beverages 1947–1959” File 0480–9; Box 63; 170–74–4; DEA; RG 170; NACP.
We Sell Drugs: The Alchemy of US Empire Page 33