16. Prepared a list of essential activities covering communications servicestelephone, telegraph, and production of communications equipment, including central switchboard equipment, printing, telegraph equipment, and associated apparatus. The study includes description of each activity and its essentiality. It also includes a treatise on supply-demand situation, manpower difficulties, and governmental actions taken to assist in alleviating problems in this activity. 17. At the request of a manufacturer, obtained facts about a foreign company on the Yugoslavia border which affected their foreign trade. 18. At the request of the Domestic Communications Operating Companies Industry Advisory Committee, prepared an informal organization chart of BDSA and the principal officers of the Department of Commerce, to be used by them in their relationship with governmental offices and divisions. Memorandum To: Mr. George W. Auxier, Executive Secretary. JANUARY 6, 1954. From: C. F. Hughitt, Deputy Director, Consumer Durable Goods Division. Assistance to business which has been rendered by the Consumer Durable Goods Division falls into two general categories, Federal specifications and statistical and marketing information. Five specific instances of business assistance are listed below: FEDERAL SPECIFICATIONS At the request of industry, the Federal specification on venetian blinds is being revised. The Consumer Durable Goods Division has undertaken this job and will give thorough consideration to the views of industry and commercial practices in the revision. At the request of a manufacturer of electrical appliances and the Porcelain Enamel Institute, the Division has interested itself in the revision of a Navy Department specification concerned with packaging and packing of porcelain enameled products and major household appliances. Industry's interest has to do with inclusion in the specification-of-performance tests for packaging generally accepted by industry in lieu of detailed packaging specifications. The Navy Department has indicated that it will incorporate these performance tests in an interim specification and will propose that the interim specification be adopted as a Federal specification. It is contemplated that the Business and Defense Services Administration will advocate the adoption of this interim Navy specifi'cation as a Federal specification. STATISTICAL, ECONOMIC, AND MARKETING INFORMATION (1) The Division will issue its regular annual report covering United States production, imports, and exports of glass and glassware. (2) At the request of the Vitrified China Association, the Division is about to establish a monthly report of United States production of vitrified chinaware. This report will be based on voluntary reports from manufacturers. (3) In numerous instances the Division has provided individual manufacturers or prospective manufacturers with information of a technical, economic, statistical, or marketing nature. Information of industrywide interest has also been made available to industries through trade associations and trade papers. OFFICE MEMORANDUM, UNITED STATES GOVERNMENT UNITED STATES DEPARTMENT OF COMMERCE, BUSINESS AND DEFENSE SERVICES ADMINISTRATION To: George Auxier, Executive Secretary. JANUARY 6, 1954. From: Charles A. Lewis, Director, Containers and Packaging Division. 1. Contribution to annual industry conference programs of the following: October 1953 Packaging Institute, New York City. National Packaging Exposition, Society of Industrial Packaging and Materials Handling Engineers, Boston, Mass. Associated Cooperage Industries of America, New Orleans, La. 2. Legislative: Recommended changes in a proposed bill, S. 1962, to require the marking of the containers of American goods exported with the words "United States of America," and for other purposes. If this bill were enacted as originally written it would have disturbed existing practices of container manufacturers and would have imposed a substantial burden upon this segment of American industry. 3. Containers and Packaging Quarterly Industry Report: Prepared and published the winter issue of this report, parts of which were reproduced and reprinted in all of the leading trade papers and magazines covering the containers and packaging field or closely related to this field. 4. Prepared special articles for the following trade papers: (a) Good Packaging Magazine. (b) Paper Film and Foil Converter. (c) The Glass Packer. (d) Fiber Containers Magazine. 5. Prepared a special publicity statement and material on the establishment of BDSA for the trade papers and associations in the containers and packaging field which was printed in all of the trade papers covering the field and was also run in all of the container-trade association bulletins to members. 6. Providing economic and export data to container firms on specific requests, e. g., export of bottle crowns to Cuba, exploration of export data on sanitary food containers for Latin America, etc. 7. Contributed to a National Security Industrial Association meeting at Fort Eustis, Va., on development of better packaging and materials handling for air cargo. 8. Assisted the slack and tight cooperage industries in bringing to the attention of the Senate Small Business Committee their request for a distress hearing. In doing this, we also prepared for Senator Thye, chairman of the Senate Small Business Committee, an analysis of the downward trends in these two container industries. OFFICE MEMORANDUM, UNITED STATES GOVERNMENT To: Mr. George W. Auxier, Executive Secretary, BDSA. JANUARY 6, 1954. The Electrical Equipment Division has undertaken no projects of service to business since October 1, 1953, but has handled routine correspondence on such matters as production of electric motors in America, requests for data on which to base sales of electrical heating equipment overseas, and similar inquiries. Tied up on defense and mobilization work. OFFICE MEMORANDUM, UNITED STATES GOVERNMENT To: Mr. GEORGE AUXIER, Executive Secretary. JANUARY 6, 1954. From: DONALD S. PARRIS, Acting Director, Electronics Division. The Electronics Division answered in writing 52 business inquiries and provided information by telephone and personal conference on the following general subjects: 1. Potential foreign markets for electronic products. 2. Foreign television developments. 3. Foreign production and availability of electronic components. 4. Nature of competition of foreign electronic products in the United States market. 5. How to secure approval of electronic products for Government procurement. 6. Data to be used in marketing certain electronic products in the United States. These are a few examples of the types of inquiries we have answered for the electronics business community since October 1, 1953. 67271-55-pt. 1—16 FOOD INDUSTRIES DIVISION Specific things done by this Division for industry since October 1, 1953. 1. Issued the following reports at the request of and paid for by industry: (a) Annual confectionery survey: Product sales, sales by channels of distribution, sales by States, based on industry data nowhere else available. (b) Annual fruit-spread survey: Production by main classes and fruit types, use of type, and size of container. Statistical data nowhere else available. (c) Annual salad dressing, mayonnaise, and related products survey: Analysis of industry production, distribution, costs, etc. Data nowhere else avail2. For improving United States trade with Canada we collaborated with the Bureau of Foreign Commerce in recommending to the President more liberal quota on the importation of oats from Canada into the United States. able. 3. For purpose of improving United States and Mexican trade relations, we made recommendations in connection with proposed legislation, after consultation with industry and appropriate Government agency, against imposing a high import duty on shrimp from Mexico. 4. We aided industry in its relations with Government by directing and paving the way for contacts with proper officials in this and other departments, this providing a central responsible place in Government to which business may present its problems and viewpoint. Example: (a) Brewers-yeast industry questioned quantity of imports and wanted information on molasses production in selected countries. We were able to obtain the desired information through the Bureau of the Census and through Foreign Service reports. (b) Dr. Cover, of Maryland University research department, desired information regarding foreign distribution of Maryland tobacco. We were able to direct him to proper officials in the Bureau of the Census and the Department of Agriculture. 5. At the request of the Bureau of Foreign Commerce we made recommendations on changes and proposed changes in tariff rates for the Republic of the Philippines on the following commodities: Desiccated coconut Sugar Canned fish Tobacco 6. For use of the National Confectioners' Association in the agriculture sugar consumption hearings we made an estimate of sugar utilization of confectionery industry, based on industry data. 7. At the request of the National Preservers Association we investigated data used in Federal Trade Commission case involving household unit sales of pectin as a lead to determining volume of household production of preserves and jams during the postwar period. 8. Commodity exchange regulations: We made an analysis of industry requests for modification of regulations regarding futures trading of cottonseed oil, soybean oil, and lard. We presented industry's point of view to the Commodity Exchange Commission. 9. Review of fats and oils statistical program: Comments and suggestions relative to proposed forms and reporting by industry. 10. Furnished statistics of exports, imports, and shipments to and from the Territories each month to trade representatives and the four following trade associations: (a) Distilled Spirits Institute. (b) United States Brewers Foundation. (c) National Association of Alcoholic Beverage Importers. (d) Schenley Industries. 11. Made available information on source material collected throughout the world and the United States from Foreign Service dispatches and domestic sources. Examples: (a) Provided M. & M. (confectionery company) with data on monthly sales of confectionery and raw material use for a period of 10 years as a basis for price-cost correlation to be used in determining advisability of market futures operations in sugar and cocoa beans. (b) Confectionery industry supplied with material on cocoa beans. (c) Sugar industry supplied with material on sugar industries in other countries. (d) Spice industry supplied with estimate on world pepper production. (e) Tea, coffee, and cocoa industries were given material pertaining to each respective trade. (f) Banks and trust companies, trade journals, and other national publications supplied with statistical and food processing information. 12. Furnish on request by Foreign Service officers information on domestic foot products to foreign countries. 13. General correspondence on foods, supplying technical and nontechnical statistical information, and other requested information. 14. Interviews with representatives of business and industry and research organizations. OFFICE MEMORANDUM, United STATES GOVERNMENT JANUARY 6, 1954. To: George W. Auxier, Executive Secretary, BDSA. In response to Mr. Honeywell's request for a few specific examples of service to business by Forest Products Division in recent months, I present the following: (1) Last October the Postmaster General announced an increase in rates on printed matter going to Latin America, effective November 1-an increase so large that it would have eliminated some small publishing operations, wiped out profits of others, and seriously affected all publishers' ability to fulfill their subscription contracts in that area. The Forest Products Division, in cooperation with industry representatives, assembled facts and figures; enlisted the Administrator's support; and within a few days of the announcement had the problem presented officially by the Department of Commerce to the Post Office Departrent. These representations delayed the increase for sober discussion, and the increase, when made effective December 1, amounted to only 33% percent on magazines and newspapers, plus a moderate jump in book rates. These increases did not approach the earlier proposal, and publishers can live with them. (2) Lumber has been historically purchased for the United States Government through the Army engineers, who have built up a system of standards and of inspection, and a group of lumber experts which have been satisfactory to the Government and to industry. Recently the FOA initiated plans to procure lumber and plywood through the GSA instead of through the Army engineers, thus placing two agencies in the lumber purchasing field. The Forest Products Division, at the request of industry, got into the picture and arranged conferences not only with FOA but also with the lumber and plywood associations, the Department of Defense, and the United Nations Korean Reconstruction Administration, and we have every reason to believe that all groups are now united on continuing the purchasing through the Army engineers. (3) Formosa, using FOA funds, began procurement of over a million dollars' worth of lumber. Specifications were too rigid for United States standards, and purchasing and shipping procedures were spotty. At the request of industry the Forest Products Division stepped into the picture and has succeeded in arranging for a revision of specifications and buying procedures, which, according to Mr. Earl Williamson, the lumber expert of the Army engineers, should save FOA around $250,000, as well as create a great deal of satisfaction in the United States lumber industry. (3a) In the past few years a large percentage of the military installations, including Navy, Marine, Army, and Air Force, have operated sawmills within their reservations, to the considerable dissatisfaction of the lumber industry. The Forest Products Division has had innumerable conferences with the Department of Defense and has succeeded in having orders sent to these military installations to cease the practice. (4) The hardwood plywood industry of the United States is in very serious straits because of the ability of Japanese plywood mills, built since World War II, to deliver highest quality plywood into the United States, after paying a 20 percent duty, for profitable sale at less than the average production costs of United States plywood mills. The plywood industry has never had production and sales statistics sufficient to permit them to assay the damage and to consider the best remedy. As soon as the Forest Products Division learned of these difficulties, it succeeded in compiling some pretty complete statistics, not only for the industry in the United States, but for the Japanese industry and the Canadian and Scandinavian industries as well, so that the world picture can be assayed; we have gone further than the collection of these figures for the past several years in sitting in on prolonged conferences with the Bureau of the Census to expand the collection and compilation of these statistics in greater detail for the immediate present and future. It is quite likely that, as a result of their judgment based on figures not previously available to them, the industry will try to have import quotas set. (5) The lumber industry, largely through its own inaction, had seen the purchase of grain bins by the Commodity Credit Corporation go almost entirely to the aluminum and the steel industries. The Forest Products Division, through working with the Commodity Credit Corporation, has determined the procedure necessary for wood grain bins to qualify for Commodity Credit Corporation procurement, and this has been presented to the National Lumber Manufacturers Association for distribution to lumber fabricators. The industry is confident that this will result in substantial purchases of wood grain bins in the current year. (6) It is an interesting fact that hickory is the most suitable wood for strikingtool handles. This had in past years been promoted abroad to the extent that every country in the world made use of this wood, which grows only in the United States. In 1939, the story of hickory for handles was well presented in a tradepromotion booklet (No. 203) issued by the Bureau of Foreign and Domestic Commerce. This has been out of print and accordingly has not been doing a job for the industry. The Forest Products Division persuaded the American Hickory Handle Association, with the approval of the Department of Commerce, to revise, bring up to date, and reprint that bulletin for distribution to the members of the industry, with the expectation that the expansion and revision of the foreignmarkets section will prove of new promotive value to the industry. (7) The pulp and paper industry has indicated its desire to be able to express its viewpoints to various Government departments concerned, in regard to foreign loans and investments for pulp and paper mills. It was brought out that usually such commitments were made before anyone in the industry knew about them, and there should be some way of having industry's ideas presented before proceeding with such commitments. A particular case has been the possibility of the Japanese erecting a lumber and a pulp mill in Alaska. The Department is setting up a procedure whereby industry will be consulted regarding such ventures. This will allow an interchange of ideas between Government and industry, which will not only prevent misunderstandings, but should also result in a more realistic approach. While this has been at the instigation of the pulp and paper industry, the procedure will be available to all business. (8) A special section of the last quarterly pulp, paper, and board industry report, prepared by the Forest Products Division, was devoted to an analysis of shipments of pulp, primary paper, and board, and converted paper and board products to a long list of processing industries and to ultimate consumers. These input-output data, derived from a comprehensive Bureau of Labor Statistics study of the entire United States economy, provide a means of tracing remotedemand relationships from primary producer to ultimate consumer, and are useful tools for marketing research. This approach is particularly important to service industries like pulp, paper, and board because it shows clearly how consumer demand for various products which themselves contain no pulp or paper is ultimately reflected in a considerable requirement for pulp and paper. Industry has received the study with interest, and comments indicate it is being put to immediate practical use. OFFICE MEMORANDUM, UNITED STATES GOVERNMENT JANUARY 8, 1954. To: George W. Auxier, Executive Secretary, BDSA. (1) As a result of the T. A. expansion goal program of the past 3 years, this Division, in cooperation with domestic industry, fostered the expansion of domestic facilities for dissolving wood pulp which is used not alone for such products as |