According to wikipedia they used a "greased cloth surround"...
"At the time, most speaker drivers were manufactured using paper cones and foam surrounds. Another revolutionary feature that the HPM-100 speakers had was carbon-fiber blended tweeters, mid-ranges, and woofers; all with greased cloth surrounds. Carbon fiber, a technology which has an unparalleled strength to weight ratio exceeding titanium and is used in the construction of military aircraft, is lighter, more rigid, and does not rot away over time like paper and foam do. The weight of the carbon fiber, combined with cloth surrounds, allows the drivers to move and vibrate more easily, replicating sound much clearer. Compared to the usual cheap, stamped steel baskets most speakers incorporated at the time, the three drivers also have solid aluminum die cast frames, intended to eliminate resonance and unwanted rattling and noise. These features have contributed to the endurance, reliability, and longevity of the drivers."