European Stars and Stripes (Newspaper) - June 23, 1977, Darmstadt, Hesse Page 20 the stars and stripes thursday. June 23, 1977 it Bland a Pinch of spice by David a. new York times or Irun deeds of years Fra Grant crops of cloves Nutmeg Vanilla and copra have Bee produced in the moluccan is lands once known More descriptively to the West As the spice islands. Some of the world s rarest and most sought after commodities grow there for there arc few soils and climates anywhere combining the rare conditions that bring Forth the fragrance and bouquet of these spices. Commodity funds Buffer stocks and Price stabilization plans have never mad much difference. Mal hocs Tuhy Latu of passo who is 73 years old has always sold his crop to a chinese middleman in Ambon the commercial and political Capi Tal of the moluccan islands some 30 Miles away through the Jungles. That is the Way it has been done for generations. Lately the rising world demand Tor these rare spices has made him a Rich Man by moluccan standards. But the spice Trade in the moluccan islands is an intricate and politically volatile business one that the indonesian government the islands Are part of in Donesia is particularly sensitive about. It involves for instance the whole ques Tion of separatism and Independence for these Rich islands Many of whose Resi dents see their Homeland being plundered for the Sake of wealthy entrepreneurs from Indonesia s principal Island of Java. It is just such an Issue that is at the Core of the protests of the moluccan separatists who held hostages for three weeks in the Netherlands which used to control these is is too the entire Well connected economic network that for generations has plundered Indonesia s outer islands of the spice Trade in the moluccan islands is an intricate and politically volatile business. Their wealth and particularly the Molus cans of their spices. It is a network con trolled at the highest Levels the brother in Law of president Suharto is reputedly a Kingpin of the nation s Clove Trade. Recently the entire Industry was plunged into disrepute when a Large ship ment of fragrant oils certified by the indo Nesia government arrived in new York City and was found to be nothing More than brackish water. There Are huge profits to be made from spices and Many indonesians Are getting Rich from them. Until recently Tuhy Latu understood All of this Only vaguely. He knew for instance that us spices followed a Long and circuitous route once they left us Hillside spice farm through the warehouses of the chinese Export in in Ambon by ship to surabaya the commercial Center in Eastern Java where the spices Are dried processed and pressed at time into Fra Grant oils finally reaching the markets abroad. Two years ago he decided to pay his first visit to surabaya to have a look at the plants where his spices were processed and talk to the merchants who were buying and Selling them through the Ambon Chi Nese businessmen. He discovered a 100 per cent markup on each kilo of Nutmeg cloves and , the traditional Market forces of inflation growing world demand and shrinking production because a few bad seasons of weather in some of the Prin Cipal spice growing regions have combined to Force spice prices to Ever higher level. Five years ago cloves were etch ing about Rupiahs $2.50 a kilo. Last year they were 5,500 to 6, 000 Rupiahs per kilo and climbing. The 5,000 Clove Trees and about the same number of Nutmeg Trees scattered across the Hillside overlooking passo on the Blue South China sea netted Tuhy Latu and his family $7.300 for cloves last year and about $3,600 for hired hands who carefully pick the matured fruit hours before they Blossom when they Are at their Peak a skilled task by local standards earned less than $400 for All of last year. Tuhy Lalu lives in a Small peach Colore Concrete House the Lawn impeccably manicured on the Edge of his spice farm close enough so that when he rises he can smell the fragrance wafting across the Back his guest he serves a simple but delectable snack hot Tea laced with his own Vanilla and homemade dutch bread sprinkled with Nutmeg. He has invested his Money in a Fleet of buses that ply the single main Highway of Ambon Island and in houses in Jakarta that Are rented for very Large sums to for eign Oil men and he still worries about prices. Every year the government promises us they will stabilize prices Tuhy Latu said. And they have helped us. They give us fertilizer at government rates very cheap and that cuts expenses. And they set a floor Price on cloves. But the chinese they buy from us not the government so they set the the prices go up and Down All the Lime he continued. All we really want it some Way to smooth it out a new York Tim moluccan Farmer Tuhy Latu who gets most of the spice profits
