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Stucco over cardboard siding

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Hi Folks:
 
Have any of you ever come across residential structures with  exterior wall material consisting of 1/8" stucco over what appears to be 1/8" layered paper product resembling card board?  The cardboard is only 1/8" thick and the walls are badly deteriorated from water intrusion.  I don't have a clue of what this stuff is nor how it was ever approved as an exterior wall covering.  The residence is a one story wood framed structure in Cathedral City and it is an insurance claim for water damage.
I think it was built in the early 70's.
I'll bet Dennis Wish knows something about this.
 
Thanks in advance for any info y'all might have on this
 
Ray Shreenan  SE