LIBYA a market for U. S. products a=Jb.U. UNITED STATES DEPARTMENT OF COMMERCE Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/libyamarketforusOOdunc LIBYA a market for U.S. products By Stephen Duncan-Peters Bureau of International Commerce 1962 U.S. DEPARTMENT OF COMMERCE Luther H. Hodges, Secretqry Jqck N. Behrmpn Eugene M. Braderman Assistant Secretary Director, Bureau of for Domestic and International Business International Commerce Contents Page Foreword iii CHAPTERS I. Basic Data on the Libyan Market 1 Area 1 Climate - 1 Population . . . 2 Per Capita Income; Average Wages 3 Significance of Foreign Trade 4 II. Libya asa Marketfor Imports.... 7 Size of Market 7 Developments Affecting Imports 7 Composition of Imports 9 U.S. Share of Market 11 A Price Market 12 Credit Terms 13 III. Market Analysis by Commodity Group 15 Foodstuffs, Beverages, and Tobacco Products 15 Crude Materials, Inedible, Except Fuels 18 Fuels, Lubricants, and Related Products 19 Fats and Oils 20 Chemicals and Related Products 21 Machinery, Apparatus, and Accessories 23 Transport Machinery, Materials, and Accessories 29 Manufactured Products 33 Textiles — Wearing Apparel — Leather and Leather Manufactures — Rubber and Rubber Manufactures — Manufactures of Wood — Paper Pulp and other Paper Manufactures— Metallurgical Products (Excluding Ma- chinery and Apparatus) — Nonmetallic Minerals and their Manufactures — Furniture and Fixtures — Prefabricated Buildings — Precious Metals and their Manufactures — Miscellaneous Manufactured Articles. IV. Distribution Facilities and Services 51 Marketing Channels 51 Government Purchasing 53 Aids to Marketing Market Research — Advertising Media — Warehousing Facilities — Credit Information — Trade Promotion — Trade Associations. Transportation Facilities 56 Maritime Shipping — Airlines — Railroads — Highways. V. Government Regulations Affecting Imports. 59 Import Licenses and Exchange Procedures 59 Shipping Documents 59 Customs Duties 59 Commercial Agreements 60 Free Port 60 VI. Trade Practices and Government Representation 61 APPENDIXES Page A. Notes for Business Travelers 63 B. American Firms with Offices in the United Kingdom of Libya 65 TABLES 1. Libyan Population by Categories (Estimated), 1961 2 2. Libyan Per Capita Income, Selected Years 4 3. Libyan Exports by Principal Commodities, 1955-60 5 4. Libyan Exports and Imports, 1952-60 5 5. Libyan Exports by Principal Counties of Destination, 1958-60 7 6. Total Imports and Imports From the United States, 1952-60 9 7. Libyan Imports by Major Commodity Category and Percent of Imports From the United States, 1955-60 10 8. Libyan Imports by Principal Countries of Origin as a Percent of Total Libyan Imports, 1954-60 12 9. Libyan Imports by Principal Countries of Origin, 1958-60 13 10. Total Imports and Imports From the United States of Food Products, 1955-60. . 16 11. Principal Imports of Food Products. Total and Imports From the United States, 1960 16 12. Libyan Imports of Beverages, Total and Imports From the United States, I960-- 17 13. Libyan Imports of Tobacco Products, Total and Imports From the United States, 1960 18 14. Total Imports and Imports From the United States of Crude Materials, 1955-60— 19 15. Principal Imports of Crude Materials, Total and Imports From the United States, 1960 19 16. Libyan Imports of Fuels, Lubricants, and Related Products, Total and Imports From the United States, 1960 20 17. Total Imports and Imports From the United States of Fats and Oils, 1955-60-- 20 18. Principal Imports of Chemicals and Related Products, Total and Imports From the United States, 1960 - 21 19. Libyan Imports of Explosives, Total and Imports From the United States, 1955-60 22 20. Libyan Imports of Machinery, Apparatus, and Accessories, Total and Imports From the United States, 1960 25 21. Libyan Imports of Transport Machinery, Materials, and Accessories, Total and Imports From the United States, 1960 29 22. Number of Vehicles in Circulation, as of December 31, 1956-60 29 23. Number of Libyan Commercial Vehicle Imports, 1955-60 30 24. Number of Libyan Automobile Imports, 1955-60 30 25. Libyan Imports of Textiles, Total and Imports From the United States, 1955-60- _ 33 26. Principal Imports of Textiles, Total and Imports From the United States, I960-. 34 27. Libyan Imports of Wearing Apparel, Total and Imports From the United States, 1955-60 35 28. Total Imports and Imports From the United States of All Types of Wearing Apparel, 1960 35 29. Total Imports and Imports From the United States of Leather and Leather Manufactures (Wearing Apparel Excepted), 1960 37 30. Libyan Imports of Rubber and Rubber Manufactures (Wearing Apparel Ex- cluded), Total and Imports From the United States, 1955-60 37 31. Total Imports and Imports From the United States of Rubber and Rubber Manufactures (Wearing Apparel Excluded), 1960 37 32. Libyan Imports of Manufactures of Wood, Total and Imports From the United States, 1955-60 38 33. Total Imports and Imports From the United States of Manufactures of Wood, 1960 38 VI fAdt 34. Libyan Imports of Paper Pulp and Other Paper Manufactures, Totals and Im- ports From the United States, 1955-60 Mi 35. Total Imports and Imports From the United States of Paper Pulp and Othl r Paper Manufactures, i960 80 36. Libyan Imports of Metallurgical Products (Machinery and Apparatus Excluded), Totals and Imports From the United States, 1955-60. .19 37. Principal Imports of Metallurgical Products (Excluding Machinery and Appara- tus), Total and Imports From the United States, 1960 40 38. Libyan Imports of Nonmetallic Minerals and their Manufactures, Totals and Imports From the United States, 1955-60 42 39. Total Imports and Imports From the United States of Nonmetallic Minerals and Their Manufactures, 1960 42 40. Libyan Imports of Furniture and Fixtures, Totals and Imports From the United States, 1955-60 43 41. Total Imports and Imports From the United States of Furniture and Fixtures, 1960 - --- 43 42. Libyan Imports of Prefabricated Buildings, Totals and Imports From the United States, 1958-60 44 43. Libyan Imports of Precious Metals and Their Manufactures, Totals and Imports From the United States, 1955-60 44 44. Total Imports and Imports From the United States of Precious Metals and Their Manufactures, 1960 45 45. Libyan Imports of Miscellaneous Manufactured Articles, Totals and Imports From the United States, 1955-60 45 46. Principal Imports of Miscellaneous Manufactured Articles, Totals and Imports From the United States, 1960 46 CHARTS 1. Libyan Exports by Principal Commodities, 1960 4 2. Libyan Exports by Principal Countries of Destination, 1960 5 3. Libyan Imports by Principal Commodities, 1960 10 4. Total Imports and Imports from the United States, 1951-60 11 5. Libyan Imports by Principal Countries of Origin, 1960 12 6. Total Imports and Imports from the United States of Beverages, 1955-60 17 7. Total Imports and Imports from the United States of Tobacco Products, 1955-60. 18 8. Total Imports and Imports from the United States of Fuels, Lubricants, and Related Products, 1955-60 20 9. Total Imports and Imports from the United States of Chemicals and Related Products, 1955-60 . 21 10. Total Imports and Imports from the United States of Machinery, Apparatus, and Accessories, 1955-60 24 11. Total Imports and Imports from the United States of Transport Machinery, Materials, and Accessories, 1955-60 29 12. Total Imports and Imports from the United States of Manufactured Products (Machinery and Transport Excepted), 1955-60 33 MAPS General map of Libya ix VI! Page PHOTOGRAPHS 1. Tripoli — entrance to the Old City 3 2. Aerial view of Oasis Oil Company's W 11 B-4 6 3. A modern processing plant 8 4. Laying of pipeline 24 5. Drilling operations 25 6. New Tripoli office building 27 7. Microwave troposcatter communications tower at Misurata 28 8. Geophysical exploration vehicle 29 9. Tripoli boulevard 30 10. A Tripoli landmark— the Clock Tower 31 11. Welding class at Marsa el Brega 40 12. Skilled Libyan technician 47 13. New Tripoli electric power plant _ 49 14. Tripoli International Fair grounds 54 15. Scenes from the American Exhibit at Tripoli's 1962 International Trade Fair 55 16. Entrance to the port of Tripoli 56 17. Building a road across the desert 57 18. Port of Marsa el Brega 57 19. Tripoli's Post Office Square 58 20. Pipeline crossing the desert 58 21. Sunset in the Libyan desert 60 22. Tripoli scene — a street in the Old City 64 VIII £ ft P I ro < C_> *> fl nac /0 Sand — <. < a Sea <5 -$5 REN (BAR -J « > 5 t§ 1 "53. £ -1-° ro r- =j£j N ij QJ CD OJ < a D IJ &3 - o > V' ,2° N. to Chad and Sudan at latitude 20° N., a total area of about 330,000 square miles. Despite Libya's vast expanses, however, only some relatively narrow coastal plains, a few ad- joining plateaus, and some isolated desert oases, comprising only 17,230 square miles in all, or only 2.5 percent of the country's total area, are suit- able in parts for cereal crop or other cultivation, in addition to the above, some 68,000 square miles of plateau lands may be available for grazing periodically, when precipitation is favorable in both coastal Provinces — but under the best of local climatic conditions no more than 10 percent of Libya's total area can be utilized productively under contemporary conditions. CLIMATE Libya is sometimes referred to as the "Desert Kingdom" and this term eloquently describes u- climatic environment. Except for two relatively narrow coastal strips, one in Tripolitania between Zuara and Misurata and the other in Cyrenaica between Benghazi and Derna, and their respective hinterlands up to a maximum penetration of 50 miles, the remainder of the country has a tropical desert climate. The climatic conditions prevailing in the coastal strips defy satisfactory classification as they do not. conform to any dependable pattern. One year they may warrant description as belonging to the Mediterranean climate belt while during the next one, two, or even three years they can, with equal exactitude, be defined as being part of the subtropical steppe zone. Consequently, the amount and distribution of rainfall vary greatly from year to year. The average annual rainfall for Tripoli, for example, is about 13.5 inches but although statistics may indicate a general aver- age rainfall in a given area they fail to reveal whether the total rainfall occurred over one season or within a few days. Severe droughts are com- monplace, and two or more years of successive drought are frequently encountered. The hot, dry season in both coastal Provinces lasts from May until October. Maximum temper- atures in summer along the coastal strip are rarely over 100° F. Humidity frequently exceeds 60 percent in the summer, and days and nights are oppressive at times. In winter, the diurnal tem- perature may change from a near-freezing night to a warm afternoon, and humidity is sometimes over 70 percent. Fezzan and the vast desert hinterlands of the coastal Provinces have a tropical desert climate with annual and diurnal temperatures that vary greatly. Midsummer temperatures average be- tween 85° and 95° F. and midday readings of 105° to 110° are common in this season. Winter temperatures average between 60° and 70°, drop- ping frequently to 40° at night. Rainfall aver- ages from 0.27 to 0.39 inches in the depressions where most oases are found and is so unusual and irregular that no rainy season, as such, can be said to exist. The effects of these climatic factors on the economy of the desert areas can best be under- stood when one examines the agricultural capacity of Fezzan. Of its approximately 213,000 square miles only 4,000 are arable at best, while the area actually under cultivation, exclusive of palm groves, is believed not to exceed 6,700 acres. POPULATION The population of Libya at mid-1961 was esti- mated at 1.21 million which ranks Libya as one of the least populated countries in Africa. Out of that continent's 33 sovereign states, circa 1961, only three, Togo, Mauritania, and the Republic of Congo (Brazzaville), are believed to contain less inhabitants. In recent years, the annual rate of growth has been about 1.5 percent. According to the 1954 census, the population distribution and density, in parentheses per square mile, were as follows: Tripolitania, 738,338 (6.0); Cyrenaica, 291,236 (0.9) ; and Fezzan, 59,315 (0.2). One-fourth of the settled population, or 18 per- cent of the whole, was concentrated in the. two main cities of Tripoli (130,000) and Benghazi (70,000). Since 1954, however, there has been a significant migration of rural and nomadic ele- ments into the urban centers. By October 1961 Tripoli's population numbered well over 190,000 while Benghazi's had increased to about 76,000 (circa June 1961) and the two centers contained almost 22 percent of the entire country's popula- tion. On the other hand, the comparatively lim- ited extent of the Libyan market is further restrict- ed by the large percentage of nomadic elements which comprise about a third of the total popula- tion as indicated in table 1. Table 1 . — Libyan Population by Categories (Estimated), 7967 Population category Tripoli- tania Cyre- naica Fezzan Total Percent Urban 245, 000 340, 000 195, 000 35, 000 130, 000 70, 000 7,000 30, 000 17, 000 1,000 382, 000 440, 000 212, 000 175, 000 31.6 Rural (settled) Seminomadie 36.3 17.5 Nomadic 140, 000 14.6 Total 815, 000 340, 000 55, 000 1, 210, 000 100.0 Source: United States Embassy, Tripoli, June 1961. About 94.5 percent of the population is Libyan, of predominantly Arabic origin but with some Berber and Turkish admixtures in the coastal area and some intermingling with Tuareg, Tebbu, and former slaves from central Africa in the desert hinterland. The Libyan Arabs practically with- out exception follow Sunni Muslim rites, one of the two major sects of Islam. Arabic is the only officially recognized language of Libya. However, many business firms, both Libyan and foreign owned, conduct correspond- ence abroad in English and/or Italian. The most important of the minorities in Libya is the Italian, which in mid-1961 was estimated at about 35,000. The Italians retain their own language, religion, culture, and schools. Most live in the urban centers of Tripolitania and constitute the majority of the professional class, skilled workers and artisans, and the core of the mer- Tripoli — entrance to the Old City. chant class. The remaining minorities are nu- merically insignificant, consisting mainly of a .Jewish community (perhaps 7,000) and small settlements of Maltese (about 1,600), Greeks (about 800), and British and Germans (about 700 each). These groups generally congregate in the more cosmopolitan centers and are principally en- gaged in commerce and shipping. Illiteracy is high, perhaps up to 90 percent of the adult population. It must be recalled, how- ever, that Libya has only been a sovereign state since 1951. Since then, the Libyan Government has availed itself of large-scale technical and financial assistance from the I'nited States, the United Kingdom, and the United Nations and by mid-1961 over 111,500 children were attending elementary schools, while almost 6,000 students were enrolled in secondary schools. The overwhelming majority of the population is dependent upon agriculture or the raising of livestock. Industries employ about 85,000 — equivalent to 7 percent of the total population— of whom 15,000 to 20,000 are believed to be engaged, either directly or through associate in- dustries, in petroleum exploration or production activities. PER CAPITA INCOME; AVERAGE WAGES Accurate statistical data on Libya is limited to' foreign trade, transportation, and banking figures only. The annual per capita income for the country as a whole was estimated by United States Operations Mission (USOM) Libya ar $162 for I960. It should be stressed, however, that this average is affected by a widespread and very uneven distribution of income. Some elements, comprising a limited number of Libyan and resi- dent foreign merchants, supplemented by several thousand families of American and European petroleum company personnel, possess very ade- quate personal incomes. These groups are more than counterbalanced, however, by the agrarian elements, who account for about a third of the total population and whose income, being depend- ent upon climatic conditions, fluctuates widely from year to year and in some instances may well be nil during several consecutive seasons. Fur- thermore, roughly another third of the population is nomadic or seminomadie and has little reason to interest itself in furnishings or the usual pat- tern of trade goods. Chart 1. — Libyan Exports by Principal Commodities, 1960 (Thousands of dollars) Total Exports $8,708,615 At first impression the foregoing account does not present a promising market but it should be emphasized that the economy of Libya is under- going a metamorphosis. The development of its recently discovered extensive petroleum deposits will provide the country as a whole with very sub- stantial oil royalty revenues from 1962 on. In the interim, large-scale petroleum exploration activities have already effected a tangible and very significant economic transformation, as exempli- fied in the estimates shown in table 2. Table 2. — Libyan Per Capita Income, Selected Years [In U.S. dollars] Calendar year Per capita income 1950 39 1954 64 1957 1958 1959 100 107 135 1960 _-_ _ 162 Source: United States Operations Mission/Libya, December 1961. The absence of reliable employment and wage data precludes any satisfactory analysis of aver- age incomes in Libya. Minimum wage legislation assures the equivalent of about $1.20 a day but organized labor usually receives much higher wages, particularly when the incumbents possess skilled or semiskilled technical or clerical quali- fications. Since the country's urban centers are in the midst of an oil boom, the actual wages offered by the petroleum companies or subsidiary firms are frequently multiples of the minimum wage scale, particularly where trained or poten- tially skillful personnel is concerned. SIGNIFICANCE OF FOREIGN TRADE Libya is highly dependent upon foreign trade. The 1960 statistics, the latest available detailed Libyan data, reveal that imports account for about 49 percent and exports for approximately 2.5 per- cent of the country's total available resources. Viewed from another perspective, customs duties levied on imports have provided the bulk of the Libyan domestic revenue in recent years: 1957- 58, $10.9 out of a total of $11.4 million or 87.8 percent of the whole ; 1958-59, $13.6 out of $15.2 million or 89.5 percent; 1959-60, $16.2 out of $18.2 million or 88.9 percent, Libya has consistently shown a large and ever- increasing import surplus in its foreign trade ac- count, This situation is made possible, however, by substantial invisible earnings accrued through the local expenditures of the petroleum explora- tion companies, equally substantial grants received annually from the United States and the United Kingdom, supplemented by relatively significant local expenditures by the United States and Brit- ish military forces stationed in Libya. The extent of the petroleum company invest- ments in Libya was estimated at almost $300 mil- lion by the end of 1960. Large capital inflows continued through 1961 as two major pipelines, complete with port installations and storage facil- ities, were being constructed for American oil companies. Libya also derives very substantial financial benefits from the presence of the petro- leum companies, 18 of which (11 of them Amer- ican) hold 89 concessions (66 American). The expenditures of these firms on exploration and other activities in Libya have been estimated at $160 million for 1960 alone. Thirty-five percent of this sum, i.e. $56 million, was believed to have Table 3. — Libyan Exports by Principal Commodities, J 955-60 [Quantity as indicated; value In thousands of Libyan pounds ') 1955 1986 1987 » 1988 1969 1960 Commodity Quantity Value Quantity Value Value Quantity Value Quantity Value Quantity ValuH Peanuts metric tons.. 0,080 633 7,919 818 848 io. 589 1.020 8,168 766 8, B08 Castor seed do — 2,626 114 2, 183 138 215 6,022 205 4. 555 241 3.371 211 Olive and sansa oil do 2.360 613 380 61 1.317 2,697 470 1.450 870 - Esparto Krass do 3f>, 849 632 27, 248 403 348 20. 400 272 9,611 109 1 1. 880 144 319 120 91 49 65 071 206 156 53 472 139 3, 701 107 2,841 88 51 2.939 74 2. 605 64 8, 808 • Potatoes do 428 8 1.261 30 77 1. 143 32 1, 180 30 531 10 Dates, dried do (>) m 164 4 3 286 6 1, 148 23 3*7 20 Camels number.. 8.043 101 0. 184 146 273 9,900 367 10, 112 604 298 Cattle do — 107, 330 363 9, r i, ;sKr, 807 71 42. 974 171 95,768 308 18.288 71 9,837 241 11.472 224 128 10.9*9 253 11.309 216 3,412 64 Ooats do 16,948 38 19. 964 42 9 4,025 10 11.772 37 1.522 6 Tildes and skins. .metric tons.. 1, 167 237 I, 130 225 222 1,215 219 1,374 277 1,708 377 Wool and hair do 1,364 320 1, 040 241 218 527 113 1.189 203 708 129 Sponges do — 70 282 SO 188 131 28 134 16 36 37 191 719 110 913 164 152 982 190 766 148 575 106 Scrap metal do m 410 (*) 479 439 7.034 155 11.700 151 10,017 178 Salt do.... (•) (') ( s ) ( 3 ) (•) (») (») 31.065 19 11,200 8 Other exports and reexports 800 641 641 1.182 747 984 Total 4.696 1. 154 4,184 5.075 4,300 4.030 1 One Libyan pound equals US$2.80. 1 Quantities for 1957 are not available. 8 Data are not available. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. been expended in Libya for services, rents, sup- plies, and so forth. Although the Libyan foreign trade scene is dominated by the petroleum com- pany imports, considerable amounts are being expended at an ever-increasing rate on manu- factured producer and consumer goods for the local market. At this stage of Libya's develop- ment, exports are limited almost exclusively to agricultural products, livestock, and livestock products (see table 3). The extremely favorable petroleum exploration omens, however, augur well for Libya's future. The first crude oil exports were effected in late 1961, well in advance of most predictions. There is ample evidence to support optimistic forecasts of relatively large-scale Libyan petroleum exports in the years to come as the industry's initial ex- ploration, production, and marketing stages ap- pear to have been attained. In the interim, however, Libyan exports to the United States have been and will apparently re- Table 4. — Libyan Exports and Imports, J 952-60 [In thousands of dollars] Year Imports Exports Year Imports Exports 1952.. 34,723 30, 963 31, 736 40, 338 46, 483 12. 743 9, 352 10, 270 11,942 10, 664 1957 78, 617 96, 003 113.588 lO'.i.osy 13, 308 12. 076 in, 210 8 709 1953 1959 1960 1954 1965.. 1986 main small because many of the Libyan products, e.g. citrus fruits, peanuts, potatoes, tobacco, and sponges are in competition with American domestic production. Chart 2. — Libyan Exports By Principal Countries of Destination, 1960 (Thousands of dollars) Total Exports $8,709,000 Source: Based on data from the Control Statistics Office, Ministry of National Economy, Tripoli, June 1961. United States $20 0.2* '■a^5» Courtesy Ohio Oil Company Aerial view of Oasis Oil Company's Well B-4, Concession 59 in Cyrenaica. Out of 500 wells completed in Libya by July 1, 1962, a total of 213 proved productive. CHAPTER II Libya as a Market for Imports SIZE OF MARKET DEVELOPMENTS AFFECTING IMPORTS As a market for U.S. products, Libya ranked third among African countries and territories in 19(50 — after the Union of South Africa and the United Arab Republic (in 1959 it ranked fourth and was fifth in 1958). Imports have been increasing at such a high rate and the economy of the country is expanding at such a rapid pace, that this market presents one of the most promising opportunities for U.S. exporters in Africa. Total imports in 1960 (see table 5) reached a level of $169 million and there is every reason to believe they will continue to increase as Libya's oil production expands. Libya has not been confronted with any balance-of-pay- ments problems during its first decade of inde- pendence and now that substantial oil royalties begin accruing no monetary exchange difficulties are anticipated. Table 5. — Lib/an Exports by Principal Countries of Destination, 1958-60 [F.o.b. value in thousands of dollars] Country of destination Italy _. X'nited Arab Republic (Egypt! United Kingdom Netherlands Federal Republic of Germany Greece Malta Union of Soviet Socialist Re- publics United States All others Total ,.... 12,070 1958 Value 4, 469 2,022 1,828 504 916 437 672 202 .3 1,025.7 Per- cent- age of total 37.0 16.7 15.1 4.2 7.6 3.6 5.6 1.7 8.5 1959 Value 3, 200 3,489 1, 053 622 473 52 353 448 .6 549.4 100. 10, 240 Per- cent- age of total 31.2 34.0 10.3 6.1 4.6 .5 3.4 4.5 "5." 4 1960 Value 3,205 1,162 801 756 736 518 442 412 20.4 656. 6 100.0 8,709 Per- cent- age of total 36.4 13.4 9.2 8.7 8.5 5.9 5.1 4.7 .2 7.9 100, Source: Based on data from the Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Libya's economy is prosperous and the outlook for imports in its market is highly favorable. Detailed national income data arc not available but information compiled from United States, United Nations, and Libyan official agencies pro- vide some material that permits a reasonably ac- curate analysis. Libya's gross national product (GNP) was estimated at $172 million in 1960, an increase of 28 percent in one year (1959 GXP estimate equals $134 million). "When Libya first achieved independence on December 24, 1951, its GNP was estimated at no more than $40 million. Many experts had serious reservations about the country's future as its prospects of achieving eco- nomic viability appeared dismal at best. Many politicoeconomic factors were instrumental in the subsequent development of Libya's economy but the greatest impetus was contributed by the pe- troleum industry. Petroleum exploration began in 1957 and its impact on the economy is reflected in the ensuing upward spiral of the GNP which rose by over 61 percent from that year's estimated level of $113 million. Although the normal pattern of foreign trade is one of constant imbalance, with exports actually declining since 1957 while imports have multiplied fivefold since 1954, Libya's exchange reserves reached an unprecedented level of $88.9 million in August 1961 — 1 month before the first commer- cial shipment of Libyan crude oil readied market. It would be premature to estimate Libya's poten- tial oil royalty dividends when the estimates of the oilfield's productive capacities are being re- vised upward monthly and the marketing pattern is as yet undetermined. Nevertheless, on the basis 047157 0—62- of preliminary evaluations it is apparent that the royalties will be very substantial and Libya's prospects for greatly expanded foreign exchange earnings are excellent. The Libyan Federal Government has taken steps to expand the development of the nation's agricultural, ground water, maritime, and other resources. A new Development Council was created in April 1960. In accordance with the provisions of the Libyan Petroleum Royalties Law (No. 79 of 1958), and subsequent supple- mentary legislation, 56 percent of the oil royalties will be reserved for the Council for allocation on public works and other development projects. In the meantime, increasing emphasis was given to the Development Council's future role in the for- mulation and execution of a Five Year Plan for 1962-66 and a tentative Ten Year Plan to follow. Until such time as petroleum royalties reach desired levels the Five Year Plan will apparently be financed by the Federal Government from ex- isting resources (e.g., United States and United Kingdom aid grants). The first annual budget for the Development Council, that of 1961-62, en- compassed a $6.1-million allocation from the Fed- eral budget while the total contemplated for the Five Year Plan, as announced in January 1961, was $68.8 million. The primary objectives of the Development Council will be the restoration of the country's agricultural potential and the development of heretofore relatively neglected industrial or mari- time resources. Efforts will be made to broaden the country's economic base by engaging in some secondary manufacturing either by the Libyan official Federal or Provincial governmental agen- cies directly concerned or by selected firms operat- ing under the Council's auspices. Although United States or other foreign private investment capital in the nonpetroleum industrial sector would apparently be welcome, little effort has been made to provide a favorable investment environ- ment (Libya does not have an Investment Guaranty Agreement with the United States) . In any event, the implementation of the Develop- ment Council's program is expected to create do- mestic needs for unusually large quantities of construction and agricultural equipment, electrical or automotive machinery, building supplies, and a wide variety of other manufactured goods dur- ing the next 5 to 15 years. Present industrialization is limited in scope and concentrated in the two urban centers of the coun- try, with about two-thirds of them located in or about Tripoli, and possibly 25 percent of the total in Benghazi. Most of the industrial enterprises are small and the majority of them are devoted to the provision of services or the processing of local agricultural products (olive oil presses and refine- ries, castor oil presses, date-packing plants, tan- neries, soap factories, flour mills, macaroni factories, soft-drink bottling plants, etc.) One of the many modern processing plants recently constructed in Libya. "engineering" (workshops for motor vehicles, elec- trical repair, foundaries and forges), or the manufacture of handicrafts (leatherwork, jewelry, woven products, carpets, etc.). The complexion of the indust rial sector is chang- ing, however, as the financial resources of the Libyan Government increases. Federal Minis- tries are now contemplating the construction of cement factories, fruit-packing plants, abattoirs, refrigerated warehouses, and other industrial in- stallations. Libyan private enterprise has also been active in recent years as more individuals are abandoning the traditional mercantile activities in favor of novel, for Libya, industrial enterprises, such as tomato-processing plants, wheat mills, ho- tels, etc. Other new factories are contemplated and as these installations materialize certain con- sumer products now being imported will be man- ufactured locally. Considering the relative insufficiency of private capital and scarcity of technological knowledge and managerial talent, however, it is apparent that most types of manu- factured products will continue to be imported for many years. Moreover, the development of new industries in itself is providing a market for ma- chinery and equipment which has not previously existed. COMPOSITION OF IMPORTS The volume of Libyan imports (see table 6) has been expanding annually at a very substantial rate but in the interim their composition has changed even more markedly. Consumer goods imports are declining in relative importance while the proportions of imports of raw materials and capi- tal goods are increasing. It must be stressed, however, that the overall increase of Libyan im- ports since 1955 has been extensive enough to negate some of the criteria normally utilized in statistical analyses. Percentagewise the propor- tion of consumer goods vis-a-vis total imports has been drastically reduced between 1955 and 1960, yet closer examination reveals that their monetary value and tonnages actually increased very sub- stantially. Since the discovery of oil, Libya has been under- going a fairly rapid transformation as local pri- vate enterprise created new industries, including Table 6. — Total Imports and Imports From the United States, 1952-60 [VttOI In thousands of dollaia] year Total imiwrly tmporti from 1 nil. -i Btatai t'.S. In. of total 1052 34,723 36,063 81,73d 40,338 46,483 78,617 98,603 113,588 160, 080 1.112 1,880 717 1,677 12,016 20, 802 23,584 X,, 224 3 2 1063 3 7 1084 2 :t 1068 1 7 1086 3 6 1057 16 4 1058 21 4 1050 20 8 1960 20 8 Source: Bused on data from the Central Statistics Office, Ministry of National Economy, Trltjoli, June 1901. some plants designed to process domestic agricul- tural products or other natural resources. The Government's policies are designed to protect these new industries by restricting the issuance of im- port licenses where competitive commodities are concerned. At this stage of Libya's industrializa- tion only a few products have been affected, the most noteworthy being preserved tomato imports, which fell from $967,440 in 1959 to only $43,960 in in 1960. The anticipated construction of one or more cement plants is also expected to have a drastic effect on the relatively substantial cement imports ($2.4 million in 1960). The contem- plated construction of a new detergent powder plant will probably reduce the volume of soap im- ports ($891,416 in 1960). The most important change is predicted in the petroleum fuel and lu- bricant imports, which exceeded $13.5 million in 1960 (including $2.2 million of U.S. origin), as one of the American oil-producing companies in Libya has already scheduled the construction of a refinery capable of satisfying the country's for- seeable domestic needs. In the meantime, the pattern of imports (see table 7) has been reshaped by the impact of extensive petroleum exploration programs being conducted by 18 American or European conces- sion-holding oil companies. In the short run. de- mand for drilling equipment and related machinery, explosives, commercial vehicles, diesel engines, etc. will probably continue at or near the present high levels. If petroleum exploration continues to prove successful, however, the em- phasis will undoubtedly be turned to production Chart 3. — Libyan Imports by Principal Commodities, 1960 (Millions of dollars) Total Imports $169,089,000 needs, e.g., pipeline equipment, storage tanks, petroleum- or gas-processing equipment and machinery, etc. Another factor apt to affect the composition of imports in the long run will be the accrual of substantial petroleum royalties. Although their maximum extent cannot be predicted with any certainty at this stage, both official and industry projections visualize an assured income for Libya of approximately $100 million by 1965. If the Development Council adheres to its pronounce- ments, the major emphasis will be placed upon the development of Libya's agricultural resources. Large-scale agricultural development plans are necessarily projected over long periods as af- forestation, land settlement, stock and crop im- provements, and farm mechanization require time to be effective. In any event, the implementation of these essential agricultural projects will create a need for relatively large quantities of agricul- tural machinery, construction equipment and fer- tilizers over an extended period. A great percentage of Libya's current imports are now destined for its petroleum industry but Table 7. — Libyan Imports by Aid/or Commodity Category and Percent of Imports From the United States, 1955-60 [In millions of dollars] 1955 1956 1957 1958 1959 1960 Commodity category Total imports Imports from United States (percent of total) Total imports Imports from United States (percent of total) Total imports Imports from United States (percent of total) Total imports Imports from United States (percent of total) Total imports Imports from United States (percent of total) Total imports Imports from United States (percent of total) Total 40.3 12.2 1.0 4.0 .7 2.0 ( 2 ) 3.6 1.0 .6 .4 3.9 1.9 4.1 2.6 1.6 1.7 .1 .8 2.2 .6 ( 2 ) ( 2 ) .6 .7 7.5 7.2 2.3 2.1 46.5 13.0 .6 1.4 3.0 1.3 2.7 ( 2 ) 3.8 1.2 .9 .4 5.3 2.3 6.0 2.7 1.9 3.6 .3 5.1 .8 26.0 ( 2 ) 1.2 .6 .3 4.5 .6 8.0 7.5 1.8 3.4 78.6 15.4 1.1 1.6 5.4 .8 3.9 1.1 5.1 3.0 1.0 1.0 7.6 2.8 7.0 14.1 3.9 3.8 16.4 3.1 5.9 ( 2 ) 11.0 ( 2 ) 4.3 65.6 1.1 10.5 1.4 22.0 9.8 86.2 24.5 31.9 1.4 20.5 96.6 13.9 1.0 1.5 4.6 .4 4.8 2.7 5.6 3.6 1.4 1.2 9.3 7.3 11.8 17.2 4.2 6.1 21.4 2.9 7.6 1.7 19.6 .7 4.0 50.8 .7 20.8 6.5 24.6 8.8 71.2 48.4 31.3 2.2 24.0 113.6 16.2 1.3 2.0 5.9 .9 5.7 3.5 11.5 4.1 1.6 1.6 5.2 13.2 11.1 16.6 4.6 8.6 20.8 2.9 11.0 3.5 17.7 ( 2 ) 6.3 10.4 ( 2 ) 11.4 2.0 6.4 21.7 68.8 42.7 23.2 2.6 35.5 169.1 18.5 1.5 2.9 9.2 1.2 8.4 4.7 5.9 14.3 2.4 2.6 13.3 19.8 22.7 25.5 6.0 10.2 20.8 Foodstuffs '... 4.2 Beverages and tobacco _ Crude materials, inedible (ex- cept fuels) 22.2 4.3 Fuel and lubricants 26.0 Fats and oils ._ .. ( 2 ) Chemicals and similar prod- ucts 8.7 Explosives 15.0 Textiles... .5 Pig iron and sponge iron Cement.. _ Rubber tires and tubes Other manufactured goods Oil well drilling machinery Motor vehicles 8.5 .5 9.8 9.9 58.4 26.6 Other machinery and trans- portation equipment Wearing apparel. 27.5 3.2 Miscellaneous products 31.9 1 United States gift wheat is not included. ! Negligible. Source: Based on data from the Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 10 their composition will change as the country's latent resources are developed and put into pro ductive use. U.S. SHARE OF MARKET Imports from the United States have been rising in value at a very rapid pace since 1955 but it would be unfortunate if this favorable develop- ment were permitted to lull the United States into complacency. A more careful scrutiny reveals that the relative share of the United States to total imports also rose between 1955 and 1959 but in- creasing competition from European and Asiatic suppliers arrested the proportionate rate of prog- ress by 1960. Table 8 clearly indicates the continuous com- petition that United States exporters face in the Libyan market from its traditional suppliers, the United Kingdom and Italy, as well as growing competition from the Federal Republic of Ger- many and the Netherlands. An analysis of Libyan imports uncovers a tre- mendous expansion of over 433 percent between 1954 and 1960, when imports rose from under $32 million to over $169 million. This expansion tends to distort the picture because the value of imports effected by Libya's suppliers rose in almost every instance, but every increase in value was not auto- matically matched by a corresponding propor- tional increase. This becomes evident in fable 9 where it can be observed that while imports from the United States rose by over 70 percent between 1958 and 1960, the relative share of the United States to total imports actually declined from 21.4 to 20.8 percent during the same period. This phenomenon is duplicated in the statistics pertain- ing to imports from the United Kingdom, Italy, France, Ceylon, and others. On the other hand, the constantly improving competitive positions of the Federal Republic of Germany, the Nether- lands, Japan, Belgium, and Tunisia are reflected in both arithmetical and proportionate increases dur- ing the 3-year period under review. The presently high volume of imports from the United States js primarily attributable to the operations of the American petroleum exploration companies now active in Libya. Although their presence gives American exporters a temporary advantage, due cognizance must be granted to the fad that this may represent a relatively limited opportunity rather than a permanent entry into the Libyan market. lie that as it may. the needs of the oil companies provided an invaluable entree to American exporters of commercial and industrial trucks, nonelectric machines and appli- ances, refrigerators, other electrical appliate ■ air-conditioning units, diesel engines, prefabri- cated buildings, scientific instruments, iron pipes, explosives, chemical compounds, rubber tires, auto- mobiles, and preserved food products. Many of these products were introduced into Libya for the. first time and, as they become familiar, there is ample reason to expect they will be accepted and utilized by domestic industrial, commercial, or household users. In the great majority of cases American prod- ucts are confronted with intense competition. Often, the prices offered by foreign competitors have been from 25 to 40 percent lower than I'.S. prices for more or less similar products. The successful marketing of U.S. products, therefore, must depend upon a variety of factors. Some of these factors warrant elucidation even at the risk of belaboring the obvious. Much depends upon the reliability of the product, its reputation for Chart 4. — Total Imports, and Imports From the United States, 1951-60 Millions of Dollars 160 120 80 ■40 1951 52 11 Table 8. — Libyan Imports by Principal Countries of Origin as a Percent of Total Libyan Imports, 1954-60 [All figures in percentages except final total] Country United Kingdom United States Italy Federal Republic of Germany. France Netherlands.. Ceylon U.A.R. (Egypt) Japan _ Belgium Tunisia Austria.. Turkey U.S.S.R All others Total Total imports, in millions of dollars. 1954 22.0 2.4 33.0 5.0 2.7 5.4 6.3 4.0 « 2.7 (') (') (') 16.5 100.0 31.7 1955 25.1 1.7 26.7 10.2 5.6 4.8 5.3 5.9 1.3 1.5 (') .6 .4 10.9 100.0 40.3 1956 22.1 3.6 29.9 10.4 6.0 5.0 4.0 5.9 .4 2.3 1.3 .5 ( 2 ) 100.0 46.5 1957 21.0 12.4 27.4 8.0 5.3 3.4 3.4 3.3 .5 .7 .7 .4 .2 ( 2 ) 9.3 100.0 78.6 1958 22.1 21.4 22.3 8.0 7.8 3.8 2.4 2.2 .2 .2 6.3 100.0 1959 21.7 20.8 21.5 9.7 7.8 3.4 2.5 .9 1.2 1.5 .9 .7 .2 .5 6.7 100.0 113.6 1960 21.2 20.8 18.8 11.8 7.7 5.3 1.7 1.4 1.3 1.2 1.2 .7 .7 .5 5.7 100.0 169.1 1 Not available. 2 Negligible. Source: Based on data from the Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. durability and availability — or absence — of ade- quate maintenance or repair facilities. Another important prerequisite is representation by a reputable and capable (the two are not necessarily synonymous) agent. Advertising also plays a major role in some instances, particularly when material is provided in Arabic. Chart 5. — Libyan Imports By Principal Countries of Origin, 1960 (Millions of dollars) Total Imports $169,089,000 The foregoing factors have tended to offset advantages available to most foreign competitors, such as price differentials, credits, services, freight rates, and insurance. In the case of British and Italian competition, however, American exporters are confronted with some additional handicaps. The most important of these are the Libyan tradi- tion of trade with these countries and the resulting creation of efficient outlets within the domestic market which have endowed them with the bene- fits of familiarization and habit-forming accept- ance of their products. With the exception of the somewhat unique positions held by the United Kingdom and Italian exporters, the most signifi- cant factors determining the market from which the Libyan importer will purchase are prices and credit. Table 9 shows Libyan imports by princi- pal countries of origin from 1958 through 1960. A PRICE MARKET The Libyan import market has been exception- ally price-conscious and continues to remain so despite the remarkable increase in purchasing power attending the three-fold rise in per capita income between the 1950 level of $39 per annum and the 1960 estimate of $162. The overwhelm- ing mass of Libyan consumers has a closely cir- cumscribed income at best and this entails careful discrimination in its disposition. 12 The purchase of a suit, for example, may in- volve the equivalent of several weeks' salaries. The suit is, therefore, a valuable piece of property which requires considerable forethought and, pos- sibly, sacrifice. The Libyan consumer will devote much time debating and selecting from the mer- chandise available, often returning a second or even third time to compare further and assure him- self that he is obtaining the best value before com- mitting his purchase money irrevocably. American products generally rate very high where quality considerations are concerned but, right or wrong, there is a widely held opinion that prices of U.S. goods are at times disproportion- ately high for the Libyan market. The U.S. prod- uct is usually somewhat better constructed, has more attachments, and is more attractively de- signed or packaged than competing manufactures, but the latter are serviceable and the attending price differential often justifies the purchase of the cheaper product. Generally, U.S. products are primarily designed for the American market, which tends to feature luxury standards and where demands for gadgets and novelties are high. This, however, does not necessarily enhance the product's value in foreign markets, where more simple designs are apt to find a good reception. In the first place, the simpler mechanisms are easier for relatively untrained workers to operate or main- tain, and, of even greater importance, the price will be more attractive. Table 9. — Libyan Imports by Principal Countries of Origin, 1958-60 [C.i.f. value in thousands of dollars] 1958 1959 I960 Country of origin Value Per- cent- age of total Value Per- cent- age of total Value Per- cent- age of total United Kingdom 21,370 20,692 21,529 7. 680 7,333 3,704 2,304 2,086 890 876 714 728 227 157 6,313 22.1 21.4 22.3 8.0 7.8 3.8 2.4 2.2 .9 .9 .7 .8 .2 .2 6.3 24, 604 23,584 24, 433 11,011 8,915 3.899 2,794 1,100 1,358 1,697 1,075 854 277 622 7,365 21.7 20.8 21.5 9.7 7.8 3.4 2.5 .9 1.2 1.5 .9 .7 .2 .5 6.7 35, 865 35,224 31, 844 19,886 13,079 8,904 2,884 2.282 2. 131 2,027 1,981 1,280 1,249 879 9,574 21.2 United States 20.8 Italy... 18.8 Federal Republicof Germany. France 11.8 7.7 5.3 Ceylon 1.7 U.A.R. (Egypt) 1.4 1.3 Belgium 1.2 Tunisia 1.2 Austria .7 Turkey .7 U.S.S.R .5 All others 5.7 Total 96,603 100.0 113,588 inn. o 169,089 100.0 Source: Based on data from the Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. CREDIT TERMS Since Libyan importers have A worldwide, choice of supply markets from which to select imports, the question of credit facilities assumes major im- portance in determining their option. The use of medium- or long-term credit facilities does much more than merely provide a convenient service to the Libyan importer because local capita] is scarce and commercial credit is generally limited to a short-term basis. Furthermore, the banking in- stitutions have only limited capital available so rates of interest can range from the 6 to 9 percent charged by the commercial banks all the way to 15 percent, or even higher, imposed by private financing interests. Consequently, the availability of favorable credit terms abroad influences the se- lection of the market when all other factors are more or less balanced. The Libyan importer is, in many cases, un- familiar with the sources and the procedures for applying for credit abroad. American exporters can thus be of considerable assistance to the im- porter if they are familiar with the lending poli- cies of the Export-Import Bank of Washington, the Development Loan Fund, and other public and private lending institutions in the U/nited States. The fact that considerable financial assistance can be made available to Libyan official agencies or individual importers by U.S. public lending insti- tutions, should help to promote the sale of U.S. products to the Libyan market. The success of U.S. exporters will, to a large extent, depend upon their ability to meet the price and credit terms offered by competitors in this market. At this point it may be pertinent to stress, however, that success will not be assured if other services and courtesies are neglected. For- eign Service personnel at our diplomatic missions in Libya have reported that the most notable ex- pansion of sales by U.S. or foreign firms in that country's market were achieved by the companies which provided prompt and courteous services. These enterprising firms devoted thoughtful at- tention to all inquiries, were especially careful in their selection of a capable local agent, provided advertising in Arabic and Italian, assisted in pro- motional activities, and supplemented their normal activities by offering periodic visits by qualified sales or technical representative to encourage ami assist, their chosen agent. 13 a growing market exists for The Economic Section of the U.S. Embassy in Tripoli reported that the following products offers the best opportunities for increasing American exports to Libya. ■ Agricultural equipment and implements ■ Agricultural insecticides I Automobiles ■ Canned meat products I Clothing (all types) ■ Dairy products (evaporated milk, nonfat dry milk, butter, cheese) ■ Diesel engines ■ Edible oil products ■ Electrical machines and appliances ■ Fabrics (all types) ■ Fertilizers (nitrogenous) ■ Footwear (all types) ■ Lumber and plywood ■ Medical, hospital, and laboratory equipment and supplies ■ Paints and varnishes ■ Pharmaceuticals I Plumbing and sanitary fixtures ■ Radio sets and supplies ■ Refined sugar ■ Rice ■ Rubber tires and tubes ■ Soaps and toilet supplies I Trucks and chassis for trucks and buses ■ Wheat and wheat flour 14 CHAPTER III Market Analysis by Commodity Group THIS chapter discusses the market for the var- ious major categories of imports following the somewhat abbreviated sequence of classification utilized by the Libyan Ministry of National Economy in its annual publication of the external trade statistics. That publication is prepared ac- cording to the Standard International Trade Clas- sification (S.I.T.C.) but its utilization in Libya is, unfortunately, restricted to major category defini- tions only. As a newly organized and developing country Libya has not as yet been in a position to provide detailed tariff or foreign trade data, con- sequently this analysis will, of necessity, be con- fined to the limited information made available by the Libyan Government. Further information that will permit a broader evaluation of the market in Libya may be found in the U.S. Department of Commerce publica- tions Basic Data on the Economy of Libya, and Establishing a Business in Libya referred to earlier in this report. Where information on any specific product is required, the Department of Commerce can initiate a market study through the facilities of the Foreign Service of the United States and make it available upon request. FOODSTUFFS, BEVERAGES, AND TOBACCO PRODUCTS Foodstuffs, comprise the beverages, and tobacco products third most important category of imports to Libya in 1960, totaling $20.1 million and accounting for 12 percent of the total imports. Foodstuffs Libya's agriculture suffers from the vagaries of an unpredictable climate so its crop production or the number of livestock available for slaughter vary greatly from season to season. This situa- tion causes trade in some food commodities to fluctuate erratically from an export surplus one year to critical domestic shortages and a need to import the same commodity during the following year. Under these circumstances Libya's foreign trade figures in cereals, meats, fruits, and other agricultural food staples do not always provide any useful criterion or permit normal projections of future trends. Expenditures for food are by far the biggest single item in the budget of a typical Libyan household, whether urban, rural, or nomadic. Be- cause of low purchasing power, however, expendi- tures of such families for imported food products are confined to the more essential and lower priced goods. "With few notable exceptions the nomadic and seminomadic groups, who comprise one-third of the total population, limit their purchases of imported food products to tea, sugar, spices, and some coffee or rice. Obliged to lead a peregrinat - ing existence they are reduced to basic essentials only in order to maintain mobility. The settled population does provide a market for a greater variety of imported foodstuffs and this is particularly true of the small but growing well-to-do class of Libyan businessmen, the resi- dent foreigners (mostly engaged in commerce or professional services), and a rising middle class composed of government officials or oil company employees. United States products account for only 4.6 percent of the total imports in this category and, since they are divisible into 50 different com modifies, they do not play a significant role in the overall market. At present, American products are primarily limited to the petroleum industry community and other resident foreigners. The present U.S. share of the total Libyan food- 15 647157 0—62- stuff, beverage, and tobacco product imports, re- corded on table 10, may not appear impressive but it is becoming increasingly important. In recent years wheat flour has been the prin- cipal import, amounting to just over $5 million in 1960, or 25 percent of total imports in this cate- gory. The Federal Republic of Germany sup- plied 56 percent of the wheat flour followed by Italy, 25 percent, and France, 12 percent. Six other countries contributed the balance, the United States share being the smallest and amounting to only $1,468, or an insignificant fraction of 1 percent. Table 10. — Total Imports and Imports From the United States of Food Products, 1955-60 [Value In Libyan pounds '] Year Total imports Imports from the United States U.S. per- centage of total 1955 4, 342, 434 4, 651, 467 5, 841, 135 4, 968, 966 5, 784, 431 6, 623, 149 5,806 14, 337 183, 629 144, 319 167, 120 277, 919 0.1 1956 . .3 1957 3.2 1958 2.9 1959 2.9 I960— 4.2 1 One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Imports of tea ($3.3 million in 1960) and of re- fined sugar ($1.8 million) are the next major im- ports. Ceylon has long supplied the bulk of the tea, accounting for over 87 percent of the total in 1960, while the United Kingdom generally pro- vides most of the sugar. Rice imports, which ranked fourth ($1 million) were supplied mainly by Egypt and Italy. The U.S. share of these im- ports amounted to only $4,836, but this represents a new entry into the market because Libya had not imported any rice from the United States prior to 1957. It is also interesting to record that sales of American rice are increasing despite a con- siderable price differential favoring competing imports ; this is directly attributable to its higher quality and more attractive packaging. Other major imports in 1960 were evaporated, condensed, or dried milk, 87 percent originating in the Netherlands; wheat, over 70 percent sup- plied by the Soviet Union; cheese, mostly from Italy ; bakery products, mainly from Denmark and Italy; apples, and sugar confectionery, both pri- marily of Italian origin ; and canned meats from Denmark, the Netherlands, the United States, and Italy. Libya's commercial imports of foodstuffs were supplemented during the past 5 years by substan- tial shipments of U.S. gift wheat and other cereal grains or fodders, effected under the provisions of Public Law 480. The cumulative value of these gift grains was estimated at over $25 million by the end of 1960. In the case of essential and basic food products such as wheat, barley, and olive oil, the Govern- ment regulates domestic prices by denying import licenses when local production is high and by imposing strict price controls. Sugar, tea, and salt (produced locally) are handled by State monopolies under the Provincial Governments. Table 1 1 . — Principal Imports a of Food Products, Total and Imports From the United States, 7960 [Value in Libyan pounds 2 ] S.I.T.C. code 011-01. 012-01 _ 013-02. 022.... 023-01 024-01 032-01 041-01 042 046-01 048-02 048-04 051-04 051-05 and 06. 051-06.2 051-07 053-01 053-03 053-04 054-01.1 054-09.1 055-01 055-02.0 055-02.2 061-02. 062-01. 071-01 071-02 073-01 074-01 075-01 and 02. 081-01 091-01 091-02 099-09.1 Item Beef, fresh, chilled or frozen Bacon, ham, and salted pork Meat and meat products in airtight containers. Milk and cream; evaporated, con- densed, or dried. Butter Cheese and curd Canned fish and fish products Wheats Rice Wheat flour Malt and malt extracts... Bakery products Apples Other fresh fruits, n.e.s Olives, fresh Edible nuts Preserved fruits Jams, marmalades, and jellies Fruit juices Potatoes Onions Vegetables, dehydrated Preparation for soups Preserved vegetables (tomato prod- ucts excepted). Sugar, refined Sugar confectionery (chocolate ex- cepted). Coffee, unroasted Coffee, roasted... Chocolate and chocolate products... Tea Spices Fodder preparations, n.e.s ■- Margarine Shortening and lard Yeasts Total value of principal im- ports. Total value of all imports in this category. Principal imports as percent of total foodstuff imports. Total imports 25. 749 42, 872 109, 690 262, 251 63, 399 202, 824 25,090 237, 780 365,059 1, 787, 589 20, 456 145, 080 122, 336 39,950 21,071 33,309 65, 984 20, 006 83, 775 49, 054 65, 589 70, 767 19, 755 76,334 650, 287 120, 611 80, 955 36,468 49, 145 1, 178, 537 86, 361 69, 862 81, 833 62, 381 40, 333 6,412,042 6, 623, 149 Imports from the United States 4,165 13, 139 3,590 2,328 3,799 55,100 1,727 567 6,028 61 256 28, 410 1,751 35, 631 9,295 20, 273 16, 820 15, 996 3,011 360 1,823 1,154 3,815 15 235, 902 277, 919 84.5 i Includes all items in which imports totaled L£20,000 ($56,000). 2 One Libyan pound equals U.S. $2.80. 3 U.S. gift wheat is not included. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 16 The so-called luxury food imports (those not for mass consumption) are subject •<> relatively high tariffs. In spile of these high duties ii small hut expanding market for a wide assortment of food products is available (see table 11). Beverages The bulk of the beverages consumed are domes- tically produced as Tripoli is the site of a large beer brewery and a bottling plant providing mineral waters. The main coastal urban centers have a number of wineries which process locally grown grapes, producing red or white wines and anisette-type liqueurs, while small bottling plants manufacture a variety of soft drinks. In addit ion to local brands, Pepsi-Cola and Coca-Cola are also bottled in Libya under license. The Libyan Government endeavors to protect these local industries by levying heavy tariffs on imported beverages, ranging all the way up to 200 percent ad valorem for all types of wines. The currently high customs duties were introduced in 1958 but the level of beverage imports has not been materially affected (see chart. 6). Table 12. — Libyan Imports of Beverages, Total and Imports From the United Sfafes, J 960 [Value In Libyan pounds '] Chart 6. Total Imports and Imports From the United States Of Beverages, 1955-60 S.I.T.C. code Item Total imports Imports from the United States 111-01 Nonalcohol ic be vcraees 8,238 19,413 3,068 123,212 73,888 750 112-01.1.. Wine, including grape must... 112-01.2 Sparkling wine 3 112-03 Beer 20,601 112-04 Distilled alcoholic beverages 6,787 Total 227,819 28,141 i One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Of total beverage imports, 49.8 percent consist of imports of beer, 36.8 percent of spirits or liquors (mostly Scotch whisky), 9.8 percent of wines, and 3.6 percent of nonalcoholic beverages (primarily soda or tonic water) . The Netherlands is the principal supplier of beer, accounting for 35.8 percent of the total in 1960. The most important secondary sources of supply that year were Denmark with 18.4 percent, the United States, 16.8 percent, and Italy, 15.5 1955 1 U S totol wos ml 2 U S totol wos only $2,881 1956 2 1957 1958 1959 1960 percent. Beer imports from the United States have increased very substantially over the past 5 years, rising as follows : 1956, $664 ; 1957, $3,223 ; 1958, $11,119 ; 1959, $19,701 ; 1960, $57,683. Both canned and bottled beers are marketed in Libya. The United Kingdom is the primary source of distilled alcoholic beverages, accounting for 52.9 percent of the total in 1960. The principal sec- ondary sources that year were France, 17.3 per- cent, Italy, 12.3 percent, and the United States, 8.7 percent. Imports from the United States have multiplied as follows: 1955, nil; 1956, $2,218; 1957, $3,824; 1958, $4,962; 1959, $13,297; 1960, $19,004. The very satisfactory increase recorded may not, however, represent a permanent entry into the Libyan market because local sales were limited almost entirely to the American petroleum company community. Italy, and, to a lesser degree, France, monopo- lized the wine and nonalcoholic beverage imports of Libya. The foreign resident community in Libya is primarily European and unfamiliar with American wines. The United States supplied soft drinks worth $2,100 in 1960. In the 1957-59 period sales of these American products averaged 17 over $8,650 annually but the local manufacturers of U.S. -brand soft drinks, begun in 1959, reduced direct imports to their present level. Exporters of alcoholic beverages would be well advised to disregard the overall population sta- tistics in estimating the potential of the Libyan market because the overwhelming mass of the indigenous population is devoutly Moslem and abstains from alcoholic drinking. Tobacco Products Libya produces a variety of tobacco leafs some of which are processed locally and manufactured into cigarettes. All imports, manufacturing, and distribution to local retail outlets are conducted by monopoly organizations owned by the Prov- inces. Excess tobacco leaf production is exported periodically. Table 13. — Libyan Imports of Tobacco Products, Total and Imports From the United States, 7960 Chart 7. — Total Imports and Imports From the United States Of Tobacco Products, 1955-60 [Value in Libyan pounds '] S.I.T.C. code Item Total imports Imports from the United States 121-01 Tobacco, unmanufactured ... 26, 010 287, 575 1 122-01 Cigarettes 91,848 Total 313, 585 91, 849 i One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli June 1961. Imports of unmanufactured tobacco are gen- erally limited to purchases of tobacco leaf used for blending purposes in the manufacture of Libyan-brand cigarettes. In 1960, 48 metric tons of unmanufactured tobacco were imported, the bulk of which, 38 metric tons, was supplied by Turkey. These imports do not follow any specific pattern, however, as current price differentials apparently determine the source of origin. In 1959, for example, India was the primary source supplying 489 metric tons of unmanufactured tobacco worth $194,681, while in 1958 Italy pro- vided practically all the tobacco, shipping 41 tons worth $68,335. U.S. sales of unmanufactured to- bacco were insignificant, totaling only $655 for the entire 1955-60 period. 1955 U. 5. total was nil 1956 1957 1958 Imports From U.S. 1959 1960 Cigarette imports are much more substantial. The United Kingdom has been the predominant source of supply, providing 50 percent of the total 1960 imports, while the United States has been the principal secondary source, accounting for almost 32 percent in 1960. Imports of cigarettes from the United States have multiplied over the past 6 years, increasing as follows : 1955, nil ; 1956, $24,660; 1957, $43,117; 1958, $48,782; 1959, $106,364; 1960, $257,174. CRUDE MATERIALS, INEDIBLE, EXCEPT FUELS Crude materials, as defined by the Libyan Ministry of National Economy, comprise a variety of raw material products — lumber, cotton, build- ing stone, and so on. Since the United States supplies only a minor fraction of the total trade in this group, a comparative chart would not serve any useful purpose so a substitute summary, table 14, was prepared to indicate recent trends in the volume of these imports. A detailed breakdown of the principal components has been listed ac- cording to Libyan sequence in table 15. 18 The most important commodity in I his category is lumber, which accounts for over 58 percent of the total of all Libyan imports in this classifica- tion. Austria and Italy have been the traditional sources of supply and generally provide the bulk of these imports. Lumber shipments from the United States are small but rose from the 1055 level of only $420 to $10,!) L3 in L960. Practically all of the unworked building stone and the natural asphalt imports originate in Italy. Lower shipping cost and the existence of rela- tively important Italian-owned contracting firms in Tripoli favor the continuation of Italian domi- nance in the trade of these commodities. Crude minerals, mostly fertilizers, are generally obtained from the United States, the Federal Republic of Germany, Algeria, and Italy. In 1960, 5,231 metric tons were imported of which Algeria provided 2,501 tons, followed by the Fed- eral Republic of Germany with 541 tons, and the United States with 400 tons, valued at $50,691. The United States first entered this trade in 1957 with imports valued at only $546. Table 14. — Total Imports and Imports From the United States of Crude Materials, 1 1955-60 [Value in Libyan pounds 2 ] Table 15. — Principal Imports ' of Crude Materials, Total and Imports From the United States, I960 (Value In Libyan pounds ') Year Total imports Imports from the United States U.S. per- centage of total 1955 1956 1957 365, 094 493, 903 579, 973 547, 705 732, 953 1,017,813 2,650 3,912 1,641 9,411 25. 906 43, 680 0.8 .8 ( 3 ) 1958... 1.7 1959 3.5 1960... 4.3 ' Crude materials as listed do not include fuels. > One Libyan pound equals US$2.80. 3 Negligible. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Imports of natural gums, resins, and lacs, which were valued at $159,653 in 1960, are obtained from many markets but Greece and Iran usually supply the largest individual shares. In 1960, Greece con- tributed 18.1 percent of the total and Iran, 15.2 percent. Shipments from the United States were effected in only 2 years, 1958 and 1960, and totaled $8,131 and $13,354, the latter representing 8.4 percent of the total for that year. Cotton imports assumed local importance for the first time jn 1960 when they attained a volume of 1,875 metric tons valued at $161,090 (1959, 1 S.I.T.C. code Ill-IM •|..i ,l Imports Import* from tin -UN- • 242 Lumber M7.KW 112 :•■- 104. B74 B7.019 15,203 203 < lOttOD 272-01 Natural asphalt I) 272-08 Buildlnntone. unworked I) 272-19 292-02 Minerals, crude, n.c.s Natural gums, resins, and lac* IS. 104 292-04 I'lants and flowers 191 Total value of principal Imports. Total value of imports In this category 1.017. HI.) 91 2 ■vi. .,;., 90 2 Principal Imports as percent of total 1 Includes all items in which imports exceeded L L'20,000 I $50,000) . 2 Crude materials, as denned above, do not Include fuels. a One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Econo my . Tripoli June 1961. ton, worth $129). The U.A.R. (Egypt) supplied 1,275 tons, which represented 71.2 percent of the total value. Shipments from the United States were valued at $3,545 in 1960 (nil in 1959) . Since local handicraft industries are now using cotton to a much greater degree than previously, cotton imports are expected to increase considerably. FUELS, LUBRICANTS, AND RELATED PRODUCTS Although Libya is now known to possess exten- sive deposits of petroleum and natural gas, pro- duction, in the form of crude oil exports, did not begin until the end of 1961. Petroleum refining is contemplated but in the interim imports of fuels, lubricants, and related products are expected to continue rising as consumption has been increas- ing. Imports of coal and coke are expected to remain relatively unchanged for the next few years as the bulk of the coal is utilized by electric power utility installations in Tripoli. In 1960, Libya imported 33,307 metric tons, of which 20,723. valued at $396,452 and equivalent to 62.4 percent of the total, originated in the United States. The United Kingdom supplied most of the remainder. France has been die principal source of motor gasoline, kerosene, and gas oils imports, providing 70 percent of the total. Italy accounted for I8.fi percent while the United States ranked third, con- tributing 12 percent. 19 Chart 8. — Total imports and Imports From the United States Of Fuels, Lubricants, and Related Products, 1955-60 Millions of Dollars 1955 1956 1957 1958 1959 1960 that period the United States replaced the United Kingdom as the primary source. United States sales in 1960 totaled $442,501 or 39.1 percent of the total. Italy, owing to its proximity and the presence of Italian nationals in Libya engaged in contract- ing or operating servicing firms, dominates the markets for pitch and petroleum asphalt as well as that of natural gas (bottled methane used for cooking), supplying over 96 percent of the total imports in these categories. The total value of all petroleum product im- ports from the United States multiplied by over 3,800 percent between 1957, when the combined total was only $46,424, and 1960, when it reached $1,819,757. This trend will probably be reversed, however, as Standard Oil of New Jersey has an- nounced plans to construct a refinery in Libya which will make domestic gasoline and other re- lated products available locally. FATS AND OILS Imports of diesel oils have expanded greatly in recent years, their volume rising from the 1958 level of 3,794 metric tons to 44,359 tons in 1960. The U.S. share of these imports rose in an even more spectacular fashion increasing in value as follows : 1958, $22 ; 1959, $50,126 ; 1960, $693,406, or 57 percent of that year's total diesel oils purchases. Imports of lubricating oils and greases have doubled in volume between 1958 and 1960, increas- ing from 3,485 metric tons to 7,081 tons. During Table 16. — Libyan Imports of Fuels, Lubricants, and Related Products, Total and Imports From the United States, 1960 [Value in Libyan pounds '] 311 313-01.. 313-02. . 313-03. 1 313-03. 2 313-04.. 313-09.. 314-01.. Coal and coke Motor gasoline Kerosene Gas oils. Diesel oils Lubricating oils and greases. Pitch and petroleum asphalt Natural gas Total 229, 875 , 055, 044 19. r ,, 007 776, 232 434, 759 403, 650 105, 299 71, 523 3,271, 141, 590 144, 440 4,463 94, 615 247, 645 158,036 790, 789 i One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. This classification, as defined by the Libyan Ministry of National Economy, normally includes two commodities "olive oil" and "oils from seeds, nuts, and kernels, n.e.s." Olive oil imports vary greatly from year to year, being dependent upon the availability of locally produced olive oil. In 1960 they totaled only $67 (1959, $22,294). The Netherlands and Malta provide over 80 percent of the total imports of the other fats and oils. The U.S. share in this trade remains insignificant (see table 17) . Local sources attributed this condition to an apparent lack of interest on the part of American exporters. Table 17. — Total Imports and Imports From the United States of Fats and Oils, 1 1955-60 [Value in Libyan pounds 2 ] Year Total imports Imports from the United States U.S. per- centage of total 1955 231, 589 444, 719 280, 803 140, 490 323, 194 484, 684 25 232 1,386 619 985 1956. 1957 ( 3 ) ( 3 ) 1958 .9 1959 .2 1960 .2 ■Fats and oils, as defined above, do not include petroleum derivates, essen- tial oils, and butter. 2 One Libyan pound equals US$2.80. 3 Negligible. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 20 CHEMICALS AND RELATED PRODUCTS Imports of chemicals and related products have increased at an exceptionally steep rate, multi- plying by over 550 percent between 1955 and 1960. The United Kingdom is the principal sup- plier accounting for 81.1 percent of nil imports in 19G0. The Federal Republic of Germany was in the second supplier position with 19.8 percent of all imports, followed by Italy with 18.3 percent, and the United States with 11.0 percent of all imports. An examination of the U.S. share, see chart 9, reveals that American products composed an in- significant fraction of the total prior to 1957. The substantial increase recorded since that year presents a satisfactory image but it is unduly weighted by an abnormal increase in a single com- modity — explosives. Explosives accounted for 81.9 percent of all U.S. imports in this category in 1957, and for 65.4 percent of the combined 1958- 60 totals. The chemicals category consists of 21 commodi- ties, the most important of which are listed in table 18. Commodities of significant current or potential importance are discussed separately. Chart 9. — Total Imports and Imports From the United States Of Chemicals and Related Products, 1955-60 Table 18. — Principal Imports of Chemicals and Related Products, Total and Imports From the United States, 7 960 (Value in Libyan pounds ') 8.I.T.O. code 511-09 533-03 541-09 511 552-01 552-02.1... . 552-02.2... 552-02.3.... 552-03 661-09 591-01 599-02 llcin Inorganic compound! and Gbem, ele- ment , n.ej. Paints, enamels, etc Medicinal and pharmaceutical prod- ucts, n.c.s. Essential oils and perfume material... Perfumery Soap, excluding toilet soap Toilet soap. Toilet preparations Waxes, polishes and pastes Fertilizers, n.c.s Explosives Insecticides Total value of principal imports Total value of imports In this category. Principal imports as percent of total. •|.,i .1 Imports 1, 370.213 U6 01 : 624.200 38.296 28 m 226. 520 91.843 78, 022 33. 578 208 680 - 100.493 l.00'.» 171 4,099,333 n i Imports from the United Itatss 211,172 11.619 19.097 18, iv, 491 2.295 1,718 l 107 1.005 282 644 1,950 lie et 618,264 99.8 1 Includes all commodities in which Imports totaled or exceeded L£ 20,000 ($56,000). • One Libyan pound equals CS$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 1955 ' 1956 ' 1957 1958 1959 1960 ' Imports from the United States totaled only $9,934 or 5 percent of total annuol imports ' Imports from the United States totaled only $30,302 or 1 1 percent ol total onnuol imports Chemicals The domestic chemical industry is presently limited to a few soap manufacturing plants. Al- though some small sulfur and natron salt de- posits are being exploited and provide export shipments in crude form, no chemicals are pro- duced domestically at this time. Libya relies upon imports to provide whatever chemicals or related products are needed. Imports of inorganic compounds and chemical elements have increased in value by 954 percent between 195,") and I960, reaching a total value of $3,836,596 in I960. Unfortunately, Libyan statis- tical data do not specify the composition of these imports thus precluding any examination of in- dividual chemicals. It is known, however, that petroleum exploration companies account for a substantial portion of these imports since they ut ilize large quantities of drilling muds, acids, etc. The United Kingdom provided 24.3 percent of the total imports in this category. The principal sec- ondary sources we're Italy, 20.6 percent : the United States, 15.5 percent: and the Federal Republic of Germany, 11.3 percent. 21 Medicinal and Pharmaceutical Products Fertilizers Libya has been importing ever-increasing quantities of medicinal, pharmaceutical, and bacteriological products. The import outlook is favorable as there are no laboratories manufactur- ing pharmaceutical products in Libya and the Federal and Provincial Governments are provid- ing larger annual budgetary allocations to health and medical agencies. Italy, which long has been the primary source of origin for these products, provided 59.3 percent of the total in 1960. The United Kingdom was the second supplier with 17.5 percent followed by the Federal Republic of Germany, 6.6 percent, and Switzerland, with 6.3 percent of the total. The United States sales totaled $56,000, equivalent to less than 3.2 percent of the total imports. Local commercial sources contend that many factors inhibit the sale of American drugs to Libya, the most significant of which are reported to be the absence of American doctors (almost all practic- ing physicians are European, mostly Italians and Greeks), the scarcity of medical literature origi- nating in the United States, and the relatively high prices charged for American drug products. The last factor may well be the most important as a local importer indicated that equivalent or adequate substitute drugs are available in Europe for "a fraction of the American prices." Soaps Libya has a few small soap manufacturing plants, most of which process locally produced sansa oil. A relatively large detergent soap powder factory, scheduled for construction under governmental auspices with financial and technical assistance from the Federal Republic of Germany, may be in operation by 1963. Until then, however, soap imports should maintain their present levels. In 1960, total soap imports (including toilet soap) amounted to 2,711 metric tons in volume (1,879 tons in 1959) with the United Kingdom supplying the bulk of the imports in both years and accounting for 83 percent of the total import value in 1960. Although soap imports from the United States rose from the 1959 levels of 8 metric tons, worth $2,542, to 28 tons valued at $11,222 in 1960, the latter figure represented only 1.3 percent of the total value of that year's soap imports. Although Libya is believed to possess potassium deposits as well as extensive and well-publicized petroleum reserves, it has not as yet been possible to utilize these resources in the preparation of fertilizers. Consequently, imports of fertilizers are being effected on a relatively large scale, as 9,529 metric tons, worth $584,220, were obtained in 1960 (1959—9,154 tons, valued at $535,749). Italy provided 4,461 tons and accounted for 42.1 percent of the total import value in 1960. The Netherlands ranked second with 2,649 tons, worth 35.6 percent of the total value. In the 1955-60 period, total Libyan imports of fertilizers ex- ceeded $3.5 million in value — of which only $59 worth originated in the United States. The increasing emphasis now being placed upon the development of Libya's agricultural resources assures a steady and probably expanding market for fertilizers in the years to come. American Embassy and Agency for International Develop- ment (AID) officials in Libya feel that the market warrants some serious study by American firms. Explosives The large-scale exploration activities of Ameri- can, British, French, and German petroleum geo- physical firms in Libya have resulted in a great demand for explosives. Since explosives ac- counted for 2.8 percent of all Libyan imports in 1960 and were valued at well over $4.7 million some statistics devoted exclusively to this trade appear warranted. Table 1 9. — Libyan Imports of Explosives, Total and Imports From the United States, 1955-60 [Value in Libyan pounds '] Year Total imports Imports from United States U.S. imports as per- Tonnage Value Tonnage Value centage of total 1955 ( 2 ) 4 ( a ) 5.2S3 6,001 13, 549 20 1,544 403, 370 96«, 678 1, 251, 535 1, 682, 542 ( 3 ) 2,662 787 5,599 20 264, 420 492, 203 130, 556 252, 644 100.0 1956 1957 1958 — 65.6 50.8 1959 10.4 1960 15.0 i One Libyan pound equals US$2.80. 2 Negligible. • Not available. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 22 The preeminent position attained by (he United Stales as Libya's principal supplier of explosives in 1957 was soon eroded by the aggressive sales tactics of more enterprising competitors. The Federal Republic of Germany raised its exports of explosives to Libya from their 1957 value of only $389 to $1,756,096 in I960, equivalent to 37.8 percent of the total import value. The United Kingdom, which ranked second in 1957, was able to remain in that posit ion only by raising its share from $262,898, in 1957, to $1,374,044 in I960, ac- counting for 29.1 percent of the latter year's total. On the other hand, imports from the United States actually declined from $740,376 to $687,403 in that period and the U.S. share of the market fell from 65.6 percent, in 1957 to only 15 in 1960. Petroleum company officials in Libya have felt that the American manufacturers of explosives were not well represented (circa 1959) and did not show the diligence or efficiency revealed by the agents of German and British manufacturers. British and German companies send officials at frequent intervals to check operations and inter- view oil company procurement personnel. Alerted by the U.S. Department of Commerce, the American manufacturers concerned effected some necessary revisions in their export procedures and local representation. These energetic steps reversed the unfavorable trade trend and the 1960 statistics reflected the improvements made. As noted earlier, the explosives imports are used by geophysical companies searching for petroleum deposits. The geological survey of Libya, begun in earnest in 1957, is by no means complete but the more accessible areas have been tested. It is reasonable to assume that the present pace of ex- ploration will not be continued indefinitely, and imports of explosives will probably be reduced to more normal levels within the next few years. Other Chemical Products In addition to the chemical products described in the foregoing sections, Libya imports other re- lated commodities, paints and enamels; essential oils and perfume products; perfumes; toilet prep- arations; waxes, polishes, and pastes; and insecti- cides. With the exception of the perfume im- ports, which ure dominated by French produ the United Kingdom lend- m all the remaining imports by a wide margin. Paints and enamels con8l itute the mo-t valuable import commodities in this category. The United Kingdom provided 53.5 percent of these imports in I960 while the United Slate- contributed only G.2 percent of the. total. Paints and enamel- from the United States were valued at $32,533 but this I960 figure compares favorably with previous Bales which amounted to Si 1 ,f54<> in 1959, and only $4,598 in 1958. American-made paints already have met with a good recept ion. and -ale- could Ik* increased further in the Libyan market. Local distributors explained that insecticides made in the United States were generally more expensive than competitive British or European products and attributed (he declining level of American sales to this factor. Insecticide im- ports from the United States were valued at $11,074 in 1958, $G,748 in 1959. and only $5,477 in 19G0, while total Libyan imports of insecticides increased in value by 45.6 percent during that period. On the other hand, quality rather than price con- siderations prevail where imports of essential oils and perfume materials are concerned. Despite generally higher sales prices, imports of these products from the United States increased sub- stantially during the past :\ years. The U.S. share of this market increased from 9.2 percent (worth S5,2(>7) of the total in 1958 to 36.0 percent (valued at $37,761) by 19G0. MACHINERY, APPARATUS, AND ACCESSORIES Imports of machinery, apparatus, and acces- sories comprise the second most important cate- gory of imports in Libya, amounting to $34.5 mil- lion in 1960, or about 2t'. 4 percent of total im- ports. Oil-well-drilling rigs accounted for 57.3 percent of all imports in this category ami this factor must be taken into consideration before analyzing the 1955-60 trends pictured in chart 10i Although there may be some academic reasons against the inclusion of the oil-drilling rigs in this group they do represent actual imports. In any 23 Courtesy Esso Standard (Libya), Inc. Libya continues to offer a promising market for steel and petroleum equipment imports as additional pipelines are being planned. case, oil-drilling rigs alone do not define the extent of oil company imports in this category, and a very great percentage of the increases in imports effected between 1957 and 1960 must oe attributed to petroleum company requirements. Production of machinery and apparatus is negli- gible, and Libya is almost entirely dependent upon imports to meet its needs. Table 20 lists all the products included in this category and gives both total imports and imports from the United States, for 1960. The United States was the principal supplier, accounting for $15.7 million or 45.5 percent of all imports in this category. It must be emphasized, however, that oil-well-drilling rigs accounted for $11.5 million or 73.5 percent of the United States total. The United Kingdom and Italy were in second and third positions, supplying 18.0 percent and 9.4 percent respectively. Chart 10. — Total Imports and Imports From the United States Of Machinery, Materials and Accessories, 1955-60 Millions of Dollars 35 r 30 20 15 10 1955 1956 1957 1958 1959 1960 24 Table 20. — Libyan Imports of Machinery, Appara- tus, and Accessories, Total and Imports From the United States, 1 960 (Value in Libyan poondi ') t.I.T.O. dull- 711-06. 712.... 714-01. 714-02. 71(1 (II 7 in m 716-11. 716-12. 716-13. 716-15. 721-03... 721-04.1.. 721-04.2.. 721-05... 721-12.1. 721-12.2. 721-13... 721-19... Ili'in Diesel engines Agricultural machinery and Imple- ment!. Typewriters Accounting, calculating and other office machines Including cash regis- ters. Pumps for liquids Oil-well-drilling rigs Sewing machines Alr-condltloning and refrigerating equipment. Nonelectric machinery and appli- ances, n.o.s. Nonelectric machine parts and acces- sories. Electric light bulbs Radio sets Radio components and parts Telegraph and telephone apparatus... F.lectrlc fans Washing machines, electric Electric wires and cables Electrical machinery, apparatus and appliances, n.e.s. Total Total Imports 336, 106 104,114 53, 277 43, 737 202, 6S5 7,003, Ml < 78, 705 202, 855 1,849,997 118,396 37,312 245, 492 205, 4H9 127,064 16, 922 18, 023 86, 927 1,354.850 12, 325, 789 Imports from the United State IV I 111 'J 27, 099 687 1,880 76,504 4, 124, 509 1,209 109,270 629, 508 82,128 1,929 15,465 60, 491 19, 786 1,084 2,877 3,299 401,929 6, 609, 053 ' One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Oil-Well-Drilling Rigs, Parts, and Accessories As of January 1962, there were 36 drilling rigs in operation in Libya. This figure represents an increase of only one rig since December 1960 and indicates that the petroleum exploration activities in Libya apparently have attained their maximum extent. Imports of spare parts and accessories are expected to continue on a relatively large scale for several years at least, and possibly longer if prospecting in the remote hinterland areas proves promising. Imports of rigs, parts, and accessories first ap- peared in the Libyan external trade statistics in 1957. Since that year these imports and the U.S. share in them rose as follows: 1957, $2,891,624 (U.S. share, $2,493,417) ; 1958, $7,342,009 ($5,224,- 890) ; 1959, $13,185,284 ($9,074,688) ; 1960, $19,- 778,662 ($11,548,025). The United States has dominated this trade since its inception in 1957. The United Kingdom and the Netherlands were the main secondary source of supply in 1960, ac- counting for $2.5 million and $2.2 million, re- spectively. (fourteen Ooeis Oil Company, Lihd Drilling operations continue unabated as new strikes are reported monthly. 25 Nonelectric Machinery and Appliances In recent years Italy supplied the bulk of these imports while the United Kingdom was the main secondary source of supply. In 1960, however, the United States became the primary supplier, providing imports worth $1,762,612 or 34.0 per- cent of the total value while Italy accounted for 20.8 percent and the United Kingdom 19.9 percent. Imports in these products followed the normal Libyan trend of rapid expansion increasing in value by over 343 percent between 1955 ($1,167,- 958) and 1960 ($5,179,992). The U.S. share of this market is expected to remain at its 1960 level since much of the present high demand is due to oil company needs. The local nonpetroleum mar- ket also seems to have become increasingly recep- tive to American machinery. percent reaching a total value of $941,097 in 1960. The United Kingdom continued to dominate this trade and accounted for 38.4 percent of the total 1960 imports. The Federal Eepublic of Germany ranked second, providing 20 percent of the total while imports from the United States rose to $168,053, equivalent to 17.8 percent of that year's total. The creation of new industries and the manifold requirements of the petroleum exploration com- panies assure a steady, if not expanding, market for diesel engines in Libya. Although electric power facilities in the urban centers are growing, many of the oil companies' activities take place in remote areas where power is unavailable and diesel engines are the only adequate substitute. Radio Sets, Radio Components and Parts Electrical Machinery, Apparatus, and Appliances, n. e. s. As noted in table 20, this catchall category of electrical machinery, apparatus, and appliances does not include radio sets, electric fans, refrig- erators, office machinery, or air-conditioning units. The United Kingdom usually provided the bulk of imports in this category but the United States displaced it in 1960, accounting for 29.7 percent of these imports, or $1,125,401 out of a total value of $3,793,580. Italy took over second place in 1960 providing 26.6 percent while the United Kingdom supplied 22.1 percent of the total. Oil company requirements are believed to have provided the major demand for the U.S. share of these imports. The local industrial and home markets generally utilized Italian, British, or other European electrical products as the Libyan contractors and business community are more familiar with their makes. Diesel Engines Imports of diesel engines were first recorded in Libyan external trade statistics in 1957 when they were valued at $290,170. In that year the United Kingdom provided 53.4 percent of the total while imports from the United States amounted to only $14,146, or 4.8 percent of the total. Since 1957, imports of diesel engines increased by over 224 The Libyan external trade statistics do not pro- vide any data on the number of radios imported prior to 1958 but in that year 9,129 sets were pur- chased abroad. By 1960, the number of sets im- ported rose to 21,517 and from all indications this trade will continue to increase although its rate of expansion will probably level off. The value of the 1960 radio set imports was equivalent to $687,378. The Netherlands supplied the largest share of these imports, selling 7,462 sets or just over 30 percent of the total number imported in 1960. The Federal Republic of Germany and Japan ranked second and third providing 5,556 and 4,270 sets, respectively. Although the United States was in only the sixth place, sales of Ameri- can radio sets have multiplied, rising as follows : 1958, 72 sets, value $8,184; 1959, 351 sets, value $35,955 ; 1960, 454 sets, value $43,302. The predominance of Dutch and German prod- ucts is attributable to the efficiency of the Dutch agents in Tripoli and the reputation of mechanical superiority achieved by the German models avail- able. The Japanese sales are mostly in less expen- sive transistor sets. No local agents supply effi- cient repair services and an American manufac- turer able to assure such services might be able to secure a much greater share of the local market for U.S. products. Imports of radio components and parts reached a total value of $474,369 in 1960 of which $141,375, or 24.6 percent, originated in the United States. The United Kingdom was the major supplier of 26 these imports, accounting for 60.5 percent of the total value. The preponderance of United King- dom sales of components and parts may appear paradoxical when it is compared with the relative position of British sales of radio sets in Libya which only ranked fourth in 1960. The explana- tion may be the existence of a relatively efficient agency firm representing United Kingdom elec- trical product supply houses in Libya. Air-Conditioning and Refrigerating Equipment It is unfortunate that the Libyan statistical data do not differentiate between air-conditioning and refrigerating units. In any event, the number of these units imported in 1960 was 3,601 (1959, 2,473) . The United States has been the principal source of origin since 1957 and the value of these imports from the United States has risen from that year's total of $73,962 to $305,956 in 1960. Observations in Libya indicate that the United States supplies the bulk of all imported air- conditioning units while Italy and the United Kingdom provides most of the refrigeration units. The total value of imports in this category in 1960 was $567, 994. The United States accounted for 53.8 percent of the total value, followed by Italy with 25.7 percent, and the United Kingdom with 10.2 percent. Agricultural Machinery, Implements and Pumps Most of the pumps imported into Libya are used for agricultural irrigation purposes so they have been included with the agricultural ma- chinery and implement imports in this analysis. In 1960, the combined value of these imports was $1,362,037. The United Kingdom has been the primary supplier and in 1960 it provided 35.5 per- cent of the total, followed by the United States with 21.3 percent, and Italy with 19 percent. The increasing emphasis being placed upon the development of Libya's agricultural resources is reflected in the expansion of these imports. In 1955, for example they were valued at only $268,117. New Tripoli office building. Demand for air conditioning and other construction equipment continues high as urban centers feature building boom. Since the Libyan Development Council has announced that it will allocate a major portion of its revenue to agricultural development projects, the prospects are favorable for substantial in- creases in imports of all types of agricultural ma- chinery, implements, and equipment. Imports from the United States have doubled between 1955, when they were valued at $140,470 and 1960 when they attained a level of $290,888. Nonelectric Machinery, Parts, and Accessories, n. e. s. Imports of nonelectric machinery, parts, and accessories have been increasing in importance. U.S. products almost monopolized this trade in 1960, accounting for $229,758 out of the total im- port value of $331,509 or 69/2 percent of the total. These imports were relatively unimportant a few years ago as their total value in L957 was only $67,724. Increasing industrial needs of Libya, however, are expected to provide a steadily ex- panding market for them. 27 647157 O— G2- tram , Zfff0' :f Microwave troposcatter communications lower at Misurata, part of a 32-channel link connecting Tripoli-Benghazi. U.S. AID pro|ect completed in 1961. Telegraph and Telephone Apparatus Imports of telegraph and telephone apparatus were relatively high for Libya during the 1958- 60 period, averaging $346,563 annually. The im- plementation of some locally important telecom- munications projects being constructed with United States foreign aid funds probably ac- counted for the unusually high level of imports during these years, since the 1957 imports were valued at only $19,211. It is unlikely, however, that imports of these items will continue at the present high levels because most of the telecom- munications projects were completed during the course of 1961. Other Imports of Machinery, Apparatus, and Accessories The remaining imports listed under this cate- gory in table 20 are of relatively minor signifi- cance where U.S. exports to Libya are concerned. In the case of office machinery (typewriters, cal- culating machines, cash registers, etc.), Italy dominated the market providing 55 percent of the total imports in 1960. The United Kingdom, the secondary source, accounted for 13.3 percent of the total. Both of these countries are favored by well-established agency representation in Libya, and it appears unlikely that American or other competitors will be able to expand materially their own sales of these products in the near future. Although Libyan imports of sewing machines have been increasing, rising from 2,730 machines in 1958 to 4,102 in 1960, sales of American ma- chines, mostly Singer models, have been negligi- ble, totaling nil in 1958, 4 in 1959, and 9 in 1960. Local commercial sources have reported that American sewing machines are only imported on special order, as there is little demand for them in Libya. The cheaper Japanese models are ex- pected to dominate that portion of the trade, while British and Italian models, are regarded by Libyan importers as technically superior to American makes. American officials question the validity of the alleged European technical superiority. Libyan electric light bulb imports were generally obtained from the Federal Republic of Germany, the Netherlands, and the United Kingdom. Ac- cording to Libyan commercial sources most of the American light bulbs imported by them were of especially large size or specially designed. So far as normal-size bulbs were concerned, the Dutch or British seemed to be preferred. British bulbs designed for 120 volts last much longer than Amer- ican bulbs, 110 volts, which burn out frequently and cannot stand up to the wide power fluctuations commonly encountered in the Libyan electric power system. During 1960 Libya imported 2,859 electric fans, mostly from the Netherlands, Japan, the German Federal Republic, and the United Kingdom. The United States provided only 44 fans, apparently of commercial rather than household size since they were valued at $3,035. A total of 788 washing machines, worth $50,464, were imported by Libya in 1960. The United Kingdom supplied 540 machines, or almost 70 per- cent of the total. The United States, which ranked fourth, trailing Italy and France, sold 51 machines valued at $8,084. This compares with previous sales of American-manufactured wash- ing machines which, in 1958, totaled 25 valued at $4,292 and, in 1959, 70 machines worth $14,284. American washing machines are generally retailed at considerably higher prices than competing im- ports and this may account for their limited suc- cess in the Libyan market. 28 TRANSPORT MACHINERY, MATERIALS, AND ACCESSORIES Imports of transport machinery, materials, and accessories comprise the third most important cate- gory of imports into Libya, amounting to $33.6 million in 1960 or about 18.5 percent of total im- ports. These imports have expanded at an almost phenomenal rate (see chart 11), multiplying by over 1,050 percent between 1955 and 1960. The groups comprising this category, together with their value and the value of imports from the United States in 1960, are shown in table 21. The spectacular increase in this import category is pri- marily accounted for by the great expansion in automotive imports. Table 21. — Libyan Imports of Transport Machinery, Materials, and Accessories, Total and Imports From the United States, 7960 [Value Id Libyan pounds ■) 8.I.T.C. code 716-02.. 731-07.. 732-01 . . 732-02. . 732-03. . 732-06. . 732-07.. 733 01 733-02.. 733-09.1 733-09.2 734 735-01.. 735-02.. Kami Industrial trucks Parts of railway cars Passenger cars Motorcycles Buses and trucks, all types Automotive chassis and parts. Motorcycle parts Bicycles Bicycle parts Tral lers, com mcrclal Klreflghting equipment > Aircraft and parts Boats and other pleasure craft. Ships and parts Total 11,989,123 Total Imports 803, 788 8.444 128,183 M -'Ji 277,463 959, 183 13.485 79. 572 32.678 892,938 8,112 574. 549 34,738 240 Ml Import! from the I nlfl BtatM 405. 451 193,216 n l 188,798 747,021 174 3 182.338 1.035 92.958 1 38B 116 3.182.411 ' One Llbvan pound equals US$2.80. 1 As described In Libyan external trade statistics. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Chart 11. — Total Imports and Imports From the United States Of Transport Machinery, Materials and Accessories, 1955-60 Millions of Dollars 35 30 25 20 15 10 1955 1956 1957 1958 1959 I960 Motor transportation has increased in Libya in recent years and this trend is expected to continue. The number of trucks and private care in circula- tion has grown markedly and the number of taxis and buses to a smaller but relatively important extent, as revealed by the Libyan registration data shown in table 22. Table 22. — Number of Vehicles in Circulation, as of December 31, 1956-60 Type 1956 1957 1958 1959 1960 Private cars. 7,837 198 190 3,701 9,516 218 235 4,590 11,476 230 279 5,972 13,919 335 310 7,072 17,154 Taxis 371 Buses 320 Trucks 9.099 Total-- 11,927 14. 559 17,957 21,636 26,950 Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Courtesy Ohio Oil Company Geophysical exploration vehicles traverse Libya's desert areas playing a major role in the development of the country's petroleum resources. 29 Libya's expanding economy is reflected by its constantly increasing automotive imports. Industrial Trucks, Commercial Trucks, and Buses The number of buses in circulation in Libya increased by only 136 between 1956 and 1960, an average of 27 buses annually. In view of the fore- going, the summary of commercial vehicle imports given in table 23 can be regarded as pertaining primarily to truck imports. Table 23. — Number of Libyan Commercial Vehicle 1 imports, 1955-60 Total number imported Principal countries of origin Year United Kingdom Federal Republic of Germany Italy United States France 1955 400 455 278 303 35 36 34 41 18 18 35 1956 51 1957 a 1958 1,356 1,174 1,956 728 477 734 120 137 384 152 210 366 207 288 358 84 1959 27 1960 75 The total value of the commercial vehicle im- ports in 1960 was $16,144,622. By value, the United States has been the leading exporter of trucks to Libya since 1959. In 1960, the United States accounted for $5,494,124, or 33.9 percent of total imports. The United Kingdom ranked sec- ond, providing 21.8 percent of the total value, fol- lowed by Italy and the Federal Eepublic of Ger- many accounting for 18.3 percent and 17.6 percent, respectively. Table 24. — Number of Libyan Automobile Imports, 1955-60 Total number imported Principal countries of origin Year United Kingdom Federal Republic of Ger- many Italy France United States 1955 986 981 641 501 209 226 189 153 46 43 38 1956 65 1957 » 1958 2,657 2,708 3,499 1,566 1,326 1,281 691 904 1,388 253 228 404 50 100 210 128 1959... 122 1960 121 1 Includes imports of industrial trucks, buses, and all types of commercial trucks. 1 Data for 1957 are not available. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 1 Data for 1957 are not available. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. The petroleum exploration companies have been responsible, either directly or indirectly, for the bulk of the truck imports. The increase in the number of trucks imported from the United States has been attributed to the fact that American trucks compare very favorably with their Euro- pean competitive models, being well constructed and requiring relatively little servicing despite heavy-duty service in exceptionally rugged terrain. The number of trucks now operating in Libya appears to be adequate for existing requirements so the upward trend of commercial vehicle imports will probably level off to some extent. The wear and tear imposed by the difficult terrain shortens the "life" of the trucks, however, so replacements will be required thus assuring a fairly steady mar- ket as long as petroleum exploration activities continue on a large scale. 30 Courtesy Tripolitanian Tourism Office A Tripoli landmark — the Clock Tower. Libya offers a growing market for bicycles and motor scooters. Passenger Motor Vehicles Libya offers an expanding market for automo- biles as indicated in its import statistics given in table 24. In 1960, the total value of all passenger car im- ports was equivalent to $6,513,172 and the United Kingdom accounted for over 40.2 percent of the total value. The German Federal Republic re- mained in second place, a position it has occupied since 1955, and provided for 34 percent of the total value imported in 1960. Italy, with 9.8 per- cent, and the United States, with 8.3 percent, followed. Local business sources have advised that im- ports and sales of American automobiles suffered because they required servicing frequently and the cost of their repairs was disproportionately expen- sive. Also, that American cars frequently arrived in poor operating condition and required much preliminary servicing. Both right-hand and left-hand-drive cars are permitted in Libya. Although small British or European-make automobiles predominate, larger foreign or American cars, i.e., the standard I'.S. cars, arc also utilized in fairly large numbers. Installment credit is commonly used for sales of automobiles. Commercial Trailers In 19(10, Libya imported a total of 603 commer- cial trailers valued at $2,500,266 (1959, L88 trail- ers, worth $876,50,')). Although Italy provided 31 the largest number, 174 trailers, the German Fed- eral Republic, which sold 137, accounted for 41.9 percent of the total value of these imports as com- pared with Italy's share of 16 percent of the total value. The United States, which sold 95 trailers in 1960, was actually second in the value of trailer imports as its sales totaled $510,546, equal to 20.4 of the total value. Previous U.S. exports of trail- ers to Libya fluctuated widely and showed no defi- nite pattern, ranging as follows : 1959, 29 trailers, value at $385,221 ; 1958, 80 trailers, worth $753,642. Automotive Chassis and Parts The United States has provided the greater por- tion of the Libyan imports of automotive chassis and parts since 1958. In 1960, the total imports were valued at $5,485,712 of which $1,808,859, or 38.1 percent, originated in the United States. The United Kingdom was in second place with 30.2 percent of the total, followed by the Federal Republic of Germany and Italy which accounted for 12.4 percent and 11.5 percent, respectively. Surfaced roads in Libya are estimated at no more than 2,200 miles in extent (circa July 1961) . Consequently, many vehicles are operated over unsurf aced roads or tracks. This results in exces- sive wear and tear on vehicles and creates an ab- normally high demand for automotive parts. Previous imports of parts and chassis from the United States were as follows: 1959, $992,650; 1958, $1,137,100 ; 1957, $429,461. Other Automotive Imports Italy and the United Kingdom have been the principal suppliers of Libya's bicycle and motor- cycle imports. In 1960, Libyans purchased 9,564 bicycles of which 5,983, or 62.6 percent, originated in Italy and 3,083, or 32.3 percent in the United Kingdom. In the same year, 447 motorcycles were imported of which 214 were of Italian origin and 212 of British manufacture. The United States supplied 14 bicycles and 1 motorcycle. In previ- ous years the U.S. share has been either negligible or nil. This may have been due to the unfavor- able price differentials vis-a-vis the Italian and British cycles. Other Transport Imports Imports of aircraft parts have expanded greatly since the advent of the petroleum exploration companies as the latter either charter or utilize their own aircraft to supply the isolated geophysi- cal and drilling crews operating in the Libyan hinterland. In 1955, these imports were valued at $164,178 but by 1960 they had increased to $1,608,737. The United Kingdom has been the primary source since 1955 and in 1960 it accounted for 55.9 percent of the total imports. Belgium, which provides a locally important charter service operated by Sabena, was second, supplying 22.7 percent. The United States ranked third with imports valued at $260,282 or 16.1 percent of the total. Prospects for a continued expansion of aircraft parts imports, and possibly of aircraft as well, ap- pear favorable. The Libyan Government has shown considerable interest in the possibility of creating a national-flag airline. Imports of railway equipment and parts are limited in scope as Libya's antiquated small-gage railways no longer play any important role in the local economy. Except for the purchase of main- tenance parts no major expenditures for equip- ment are envisioned. Despite a long coastline of over 1,000 miles Libyans have given little attention to the sea, and fishing is of minor importance. The volume of imports of ships and parts in 1960 was unique, this being the first time this item warranted sepa- rate listing in the Libyan external trade statistics. It would be premature to make any predictions about future ships and ship's parts imports. On the other hand, there has been increasing interest in the acquisition of small pleasure boats, particu- larly by resident foreigners. In 1960, a total of 45 boats valued at $97,266 were imported (1959, 14 boats, worth $6,499) . The United States sup- plied 3 boats in 1959 (worth $1,898) and 6 in 1960 (worth $9,198). Although this trade is not of major importance it may be in the interests of American manufacturers of pleasure craft to in- vestigate the Libyan market, for local yacht clubs in both Tripoli and Benghazi are growing in membership. 32 MANUFACTURED PRODUCTS The Libyan external trade statistics list :ill manufactured goods, machinery and transport equipment excepted, under two separate hut rat her ill-defined major categories entitled "Manufac- tured Goods Classified Chiefly by Material" and "Miscellaneous Manufactured Articles." This classification confuses the identity of Libyan im- ports as the terms of reference employed to dis- tinguish its components between these two large categories are difficult to differentiate. A total of 153 commodities are listed under these two cate- gories and, since many of them are related, the two groupings have been combined and then sub- divided into 12 groups, as listed below, each of which will be examined separately. 1. Textiles. 2. Wearing Apparel. 3. Leather and Leather Manufactures. 4. Rubber and Rubber Manufacturers. 5. Manufactures of Wood. 6. Paper Pulp and other Paper Manufac- tures. 7. Metallurgical Products (Excluding Ma- chinery and Apparatus). 8. Nonmetallic Minerals and their Manufac- tures. 9. Furniture and Fixtures. 10. Prefabricated Buildings. 11. Precious Metals and their Manufactures. 12. Miscellaneous Manufactured Articles. Textiles (Excluding Wearing Apparel) Libya has to rely upon imports to satisfy most of its textile needs as there are no textile mills in Libya and with the exception of wool practically no fibers or yarns are produced locally. Despite this handicap, however, a large number of small handicraft shops, devoted to the manufacture of native dress (barracans, etc.) exist in the urban centei's. In addition to the above, many small shops retail fabrics, yarns, and threads, which are woven or transformed into clothing by Libyan families in their own homes. I uiports of text ilcs i weaving apparel excluded I have been relatively important since L956, as in- dicated in table 25. They have increased in value by 87.4 percent reaching almost $7.4 million in I960. The [T.S. contribution has been insignifi- cant throughout this period amounting to only $70,24:'. i n I960, Or less than 1 percent of the total value. Table 25. — Libyan Imports of Textiles, Total and Imports From the United States, 1955-60 [Value in Libyan pounds '] Year Total imports Imports from the I'nited States U.S. Im- ports as percent- ape of total 1955 1, 407, 508 1,495,844 2,116,363 2. 524, 937 2,342,179 2,639,185 768 9.543 23,735 25, 652 37,399 25,151 (i) 1956 6 1957... 1 l 1958 1 1959 1 1 1960 1.0 ' One Libyan pound equals US$2.80. > Negligible. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Chart 12. — Total Imports and Imports From the United States Of Manufactured Products (Machinery and Transport Excepted), 1955-60 1955 1956 ' 1957 1958 1959 > Imports from the United States totaled $120,000 ot 9 percent ol total J Imports from the United States totaled J185.0OO or 1 percent ol total 1960 33 Table 26 shows the principal imports of textile products, representing 96.9 percent of the value of total imports in this category. Since this cate- gory consists of a relatively wide range of import commodities its main components will be analyzed separately. Table 26. — Principal Imports 1 of Textiles, Total and Imports From the United States, 1960 [Value In Libyan pounds 2 ] S.I.T.C. code Items Total imports Imports from the United States 651-01 Silk yarn and thread 28, 606 120, 638 43, 221 110,716 49, 630 759, 297 237, 076 632, 145 37, 219 28, 793 100, 859 22, 656 27, 308 107, 638 56, 190 65, 702 37, 334 86, 964 2,551,992 2, 639, 185 96.5 651-02 Yarn of wool and hair 651-04.1 651-04.2 651-06 652 Cotton thread in reels .... __ . Cotton thread or yarn (twisted cabled, etc.) Yarn and thread of synthetic fibers Cotton fabrics 195 653-02 - 1 653-05 Fabrics of synthetic fibers 8,750 654-03 655-05 Nonelastic ribbon, trimmings, etc Elastic fabrics 734 11 655-06.1 . Cabling cordage and twine 2,445 655-09 656-01 Special products of textile materials, n.e.s. Bags and sacks for packing 148 1,488 656-02 Tents and other canvas goods .... 3,341 656-03 656-04 657-01 Blankets Bed linen, table linen, etc. . _ . Carpets and carpeting of wool 4,409 1,196 657-02 Carpets and carpeting of textile fibers, other than wool. Total value of principal imports- Total value of imports in this category. Principal imports as percent of total. 1,642 24, 360 25, 151 97.5 i Includes all items in which imports totaled or exceeded L £10,000 ($28,000) . 2 One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Yarns and threads. — Total imports of yarns and threads in 1960 were valued at $987,871. The most important components were cotton threads or yarns, worth $431,024 and yarns of wool and hair, worth $337,786. Italy and India were the principal suppliers of cotton threads and yarns imports, accounting for 44.7 percent and 41.6 per- cent of the total, respectively. The United King- dom, which has been the traditional source of origin for wool yarns, provided 61.5 percent of their total imports, followed by Italy which ac- counted for 34.5 percent. Italy also supplied the bulk of the synthetic fiber imports, selling 55.1 percent of their total value. As noted in table 25 the U.S. share in these imports was negligible. Fabrics. — Fabrics comprised the most signifi- cant textiles imports, constituting 66.8 percent of all textile imports. In 1960, fabrics imports were valued at $4,344,684. The most valuable compo- nents were cotton fibers, worth $2,126,032, syn- thetic fibers, $1,770,006, and woolen or worsted fabrics valued at $663,813. The total quantity of cotton fabrics imported in 1960 was listed at 10.8 million meters. Twenty-nine countries contrib- uted to these imports with the Netherlands and Italy providing the largest individual shares, equivalent to 17.1 percent and 15.2 percent, respectively. Japan dominated the import trade of synthetic fibers, supplying 62.1 percent of their total value. Eighteen other countries, led by Italy, which pro- vided 23 percent of the total, accounted for the balance. This was the only commodity in which the United States made any noteworthy contribu- tion, supplying synthetic fibers valued at $8,750, equivalent to about 1.4 percent of the total value. As usual in Libyan external trade statistics, the United Kingdom was the primary source of origin for woolen and worsted fabrics providing 69.3 percent of the total 1960 imports in this category. Italy was the main secondary supplier, accounting for 22.9 percent of the total. No quantity figures for synthetic or woolen fabrics imports were available. Price differentials and other factors apparently inhibit any substantial expansion of textile sales by American manufacturers in the Libyan market. Price considerations aside, American competition is confronted by well-established agency firms representing Italian, British, and Dutch manu- facturers. Cabling cordage and twine. — Portugal con- tinued to monopolize this trade providing 611 metric tons out of a total of 762 imported during 1960 ( 1959, 492 tons) . The total of value of these imports was $282,405 (1959, $183,120). The Portuguese accounted for 71.4 percent of the total value of these imports. The U.S. share of 9 metric tons was valued at an equivalent of $6,846. Tents. — Imports of tents and other canvas goods in 1960 were valued at $301,386 (1959, $364,000). The United Kingdom, which has long dominated this trade, provided 70 percent of the total imports in 1960. Imports from the United States were valued at only $9,355, or 3.1 percent of the total. 34 This figure was only u fraction of the 1959 total when the United States sold $49,950 or L8.8 per- cent of that year's total. No explanation for this decline has been made available to date. Carpets and carpeting. — Libyan imports of car- pets and carpeting imports in 19(50 were valued at $348,016 (1959, $265,630). The total import quantities for 1960 were 10,955 square meters of wool carpets and 102,564 square meters of carpet- ing of textile fibers. Eighteen countries sold carpeting to Libya with Belgium and Italy the principal sources of origin, accounting for 35.1 percent and 19.4 percent of the total value, respec- tively. The United States sold 322 square meters of wool carpets, worth $3,349 and 917 square meters of textile fiber carpeting, worth $4,598 — a substantial improvement over the 1959 imports whose total value was only $2,187. Other textile imports. — The balance of the tex- tile products imported by Libya in 1960 were valued at $725,337. Linen products accounted for $183,965 of the above and blankets for $157,332. .Italy provided 58.8 percent of the total bed and table linen imports. The U.S. sales of linen were valued at $12,345 ( 1959, $3,693) . Tunisia, Italy, and the United Kingdom pro- vided the bulk of the blanket imports accounting for 35.3 percent, 32 percent, and 20.1 percent of the total value, respectively. No imports of blankets from the United States were recorded in Libyan external trade data in 1960 (1959, $874) . Wearing Apparel Local craftsmen and handicraft workers pro- duce Libyan national-styled clothing (barracans), soft leather shoes, and many ornamental feminine dress items. Libya, however, like most other developing countries has been changing its tra- ditional style of dress in favor of western-type clothing, particularly where the male sex is con- cerned. This factor, supplemented by the rising per capita income, accounts for the increase of over 136 percent recorded in imports of wearing apparel between H'"'"» and i!t<;] Vear Total imports Imports from the 1 ni ted States I'.S. im- ports as percent- age of total 1955 win. 79(i 1,100.833 2,093, 171 2,671,287 3, 149. 832 7,317,315 6.203 6.381 3.T.. 701 498, 575 601,603 823, 477 0. 7 1956 1957 17 (1 1958. .. 18.7 1959 19. 1 1960 11.3 1 One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry Of National Economy, Tripoli, lime 1961. In 1960, imports of metallurgical products were valued at $20.5 million ( 1959, $6.8 million) . Table 37 shows the principal imports, representing 9 s .'-' percent of the value of total imports in this cate- gory. The more important commodities will be analyzed separately. Pig iron and sponge iron. — Pig iron and sponge iron accounted for almost 70 percent of the total of all imports of metallurgical products in 1960 (46.4 percent in 1959) . As noted above, iron pipes, mostly for use by the petroleum companies and, to a lesser degree, for agricultural irrigation pur- poses, have comprised the bulk of these imports since 1957. The cost of the Esso Libya pipeline linking the Zelten oilfield with the Marsa Brega terminus on the Gulf of Sirte has been estimated at $16 million. While this sum includes payments for many services and materials, pipes probably account for the largest single expenditure. 39 The influx of new products creates the need for skilled labor. A welder conducts a class at Marsa el Brega. Courtesy Esso Standard (Libya), Inc. Table 37. — Principal Imports 1 of Metallurgical Products (Excluding Machinery and Apparatus), Total and Imports From the United States, 1960 [Value In Libyan pounds 2 ] S.I.T.C. code Items Total imports Imports from the United States 681 5,113,343 54, 941 21, 361 155, 122 97, 629 16, 550 88, 384 13,214 36, 316 205, 848 34, 491 1, 412, 106 434, 187 684 691-03 Aluminum.. . ... 80 699-12 699-13 699-14 699-17.1. Handtools, including agricultural Household utensils of iron and steel. .. Household utensils of aluminum 29, 709 4,139 2,643 229 699-17.2 Pocket or folding knives 143 699-18 Hardware of metal, n.e.s 78 699-21 699-22 Metal containers (including empty tin cans). 35, 235 4,009 699-29 . Manufactures of metals, n.e.s. 312, 734 Total value of principal imports- Total value of imports in this category. Principal imports as percent of total. 7, 249, 305 7,317,315 98.9 823, 186 823, 477 99.9 i Includes all items in which imports totaled or exceeded L£10,000 ($28,000). 2 One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. In. any event, the volume of these imports has increased as follows: 1956, 7,527 metric tons; 1957, not available; 1958, 14,921 tons; 1959, 19,707 tons ; 1960, 52,080 tons. In 1960, the United King- dom supplied the bulk of these imports providing 31,875 metric tons valued at 45 percent of that year's total monetary value. Italy and the Federal Republic of Germany ranked second and third, accounting for 17.8 percent and 13.9 percent of the total value. The United States was fourth, pro- viding 5,160 metric tons worth $1,115,724 (1959, 1,282 tons, worth $464,864; 1958, 1,304 tons, worth $729,140). Prospects for continued high volume imports of pipe are very favorable as the Oasis Group and Esso Syrte-Liamco are building a pipeline in Trip- olitanian Syrtica and the construction of addi- tional pipelines by other American and European oil companies is contemplated. 40 Aluminum. Aluminum imports 1 1:1 \ r ci become increasingly important as revealed by the follow- ing import tonnage figures: 1958, 185 metric tons; l!). r )i), 125 tons; L960, 208 tons. The value of these imports in I960 was $153,885 (1959, $81,722). Italy and the United Kingdom were the princi- pal suppliers, account ing for , r )!).l percent and 20.8 percent of the total I960 value, respectively. Aluminum imports from the United States were valued at only $224 in 1960 (nil in 1959 and 1958). Other common metals. — Although those imports are still relatively unimportant in comparison witli other commodities they have been increasing in volume and value. The 1900 totals, reproduced for the information of any interested American exporters, were as follows: Copper, 52 metric tons, worth $28,137; lead, 10 tons ($2,965) ; zinc, 76 tons ($17,315) ; tin, 10 tons ($13,210). Projectiles and ammunition. — Imports of projec- tiles and ammunition, as recorded in this category, do not include ammunition imported for sporting purposes. It is assumed that most of these im- ports are used by local firms engaged in mine- clearing operations in behalf of the petroleum ex- ploration companies. Italy supplied the major share of these imports, accounting for 62.3 percent of their total value in 1960. The total value of these imports during that year was $59,811. No purchases of projectiles and ammunition from American manufacturers have ever been recorded in the Libyan external trade statistics. Handtools, including agricultural tools. — The emphasis being placed upon the development of Libya's agriculture, the construction boon in its urban centers, and the needs of its small but ex- panding industrial structure have all contributed to a substantial increase in the imports of all types of handtools. In 1960, these imports were valued at $434,352 ( 1959, $383,661 ; 1958, $255,772) . The Federal Republic of Germany has long served as the primary source of origin and in 1960 it pro- vided 35.6 percent of the total imports in this category. The United States, Italy, and the United Kingdom were the main secondary sources, accounting for 19.2 percent, 16.9 percent, and 16.1 percent of the total value, respectively. Imports from the United States in recent years have ranged as follows: 1958, $27,194; 1959, $114,050; 1960, $83,185. Imports of handtools are expected to continue their current rate of annual increase, particularly where agricultural tools are concerned. Household utensils (both of iron and alumi- num). — Libya depends upon import-, to -:iti-fv most of its household utensil need- :i- then- i- little local production in these commodities. Import- have remained relatively steady in recenl yean, their value varying little between 1958 ($8 and I960 ) Year Total Imports Imports from the Inltcd States U.S. Im- port* at percent- age, of total 1958 62.184 109, 078 147,906 243, 330 430, 558 793, 389 3,303 11,215 35. 702 34. 334 69,823 1966 3 19S7 7.6 1958 14.7 1959 7.9 1960 7.8 ' One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Local production is limited to a few small cabinet- making or metalworking shops producing odd pieces of wooden furniture or metal beds, thus compelling the country to rely upon imports to meet its needs. The influx of the petroleum com- panies and their staffs created a relatively exten- sive demand for office and household furniture that could only be satisfied through purchases from abroad. As a result, total imports of furni- ture and fixtures reached $2.2 million in I960 (1959, $1.2 million). The three commodities comprising this category, see table 41, will be evaluated separately. The present rate of increase is expected to level off, but prospects for a continued high volume of imports in this category are favorable. Table 41. — Total Imports and Imports From the United States of Furniture and Fixtures, I960 [Value In Libyan pounds •] S.I.T.C. code Items Total import* I m port* from the United States 821-01 Wood furniture and fixtures 546. 212 172,886 74. 212 26.025 821-02 Metal furniture and fixtures 27, *M\ 821-09 Total 6.362 793.389 59.823 1 One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 43 Wood furniture and fixtures. — Twenty-four countries participated in this trade, which was valued at $1,529,394 in 1960 (1959, $808,758; 1958, $479,298). Italy continued to dominate the mar- ket in 1960, providing almost 50 percent of the total. The Federal Republic of Germany jumped from fifth place in 1959 to second in 1960, account- ing for 29.7 percent of the latter year's total im- ports. The United Kingdom, the United States, and Denmark trailed the leaders in that order supplying 5.4 percent, 4.8 percent, and 4 percent of the total, respectively. Imports from the United States have been as follows: 1957, $14,524; 1958, $82,426; 1959, $43,800 ; 1960, $72,870. Metal furniture and fixtures. — Practically all of the Libyan imports of metal furniture and fixtures are for office or industry use. In 1960, they at- tained a total value of $484,302 (1959, $223,208; 1958, $147,162). The United Kingdom has long been the primary supplier and in 1960 it provided 49.6 percent of the total value. Italy and the United States remained in second and third place, accounting for 28.9 percent and 15.9 percent, respectively. Imports from the United States have been in- creasing in value annually, rising as follows: 1957, $8,554; 1958, $15,235; 1959, $33,090; 1960, $76,821. Furniture and fixtures, n.e.s. — Imports of miscel- laneous furniture and fixtures reflected the rising volume of all imports in this category, reaching a total value of $207,794 in 1960 (1959, $173,597; 1958, $54,872). Italy and the United Kingdom remained the principal suppliers, providing 29.1 percent and 23.8 percent of the total value, respectively. Imports from the United States have been as follows: 1957, $59; 1958, $2,304; 1959, $19,244; 1960, $17,814. Prefabricated Buildings Prefabricated buildings imports were either negligible or nonexistant prior to 1958. The sub- sequent development of this trade has been due mainly to the rapid growth of local industrial and servicing enterprises, most of them catering to the petroleum companies which required storage or servicing facilities without delay. It has also been observed that the Libyan Government has purchased relatively large numbers of prefabri- cated buildings (mostly of the Niessen-hut type) for use in its Beida development project in Cryenaica, where an administrative center is being constructed for the Libyan Federal Government. Table 42. — Libyan Imports of Prefabricated Build- ings, Totals and Imports From the United States, 1958-60 [Value in Libyan pounds '] Year Total imports Imports from the United States 1958 383, 451 877, 654 599, 562 142, 003 1959 563, 702 1960 217, 107 1 One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. Table 42 reveals the extent of this trade which was valued at $1.7 million in 1960 (1959, $2.5 million; 1958, $1.1 million). Imports from the United States in 1960 were valued at $607,900 (38.8 percent of the total value) as compared with 1959, $1,578,366 (64.3 percent of that year's total) and 1958, $399,608 (37.1 percent). The United Kingdom and the Netherlands have been the most important secondary suppliers, accounting for 24.8 percent and 17.6 percent of the total in 1960. Precious Metals and their Manufactures Imports of precious metals and their manufac- tures, see table 43, expanded by 161 percent be- tween 1955 and 1960, reflecting the rising per capita income of the local population. The total Value of these imports in 1960 was equivalent to $956,108. The more important of the commodities composing this import category, see table 44, will be analyzed separately. Table 43. — Libyan Imports of Precious Metals and Their Manufactures, Totals and Imports From the United States, 1 955-60 [Value in Libyan pounds '] Imports Year Total from the imports United States 1955 131,311 405 1956 299, 708 190 1957. 252, 217 55 1958 317, 664 212 1959 240, 867 350 1960 341, 467 1,011 i One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. 44 Silver and platinum.- These imports were valued at $429,472 in L960 ( 1959, $888,880; 15)58, $58:5,158). Franceand the United Kingdom have long dominated this trade and, in 1900, they ac- counted for 57.5 percent and '.'>'.).H percent of its total value, respectively. No imports of silver or platinum bullion origi- nating from the United States have ever been recorded in the Libyan trade statistics. Table 44. — Total Imports and Imports From the United States of Precious Metals and Their Man- ufactures, 7 960 [Value In Libyan pounds '] S.I.T.C. code Items Total Imports Imports from the United States 671 Silver and platinum 153,383 2,911 138. 188 46. 985 672.. 673-01. 673-02 Precious and semiprecious stones and pearls. Jewelry of gold, silver, and platinum.. Imitation jewelry 6 754 251 Total if 11, 1117 1,011 ' One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961 Jewelry of gold, silver, and platinum. — Imports of gold, silver, and platinum jewelry attained their highest level in 19G0 when they were valued at $386,926 (1959, $199,755; 1958, $113,100). Italy continued to be the primary source of origin, pro- viding 62.4 percent of the total 1960 value. Imports from the United States have been in- creasing but were still relatively unimportant : 1960, $2,093 ; 1959, $342 ; 1958, $210. Imitation jewelry. — Imitation jewelry imports have fluctuated considerably and actually declined in value between 1960 ($131,558) and 1959 ($132,695) . In 1958 they were valued at $89,804. The Federal Republic of Germany, which has been the principal supplier in recent years, provided 31.5 percent of the total 1960 imports, followed by Italy, 20.3 percent, and the United Kingdom, 18.8 percent. Imports from the United States remained of only minor importance despite some slight in- creases : 1960, $703 ; 1959, $538 ; 1958, $384. Miscellaneous Manufactured Articles Libyan imports of miscellaneous manufactured articles (scientific instruments, photographic ap- paratus, books, film, etc.) totaled almost $5.9 mil- lion in I960. They have, increased in value by more than 816 percenl between 1955 : 1 1 1 • I I960. The extent of this very substantial expansion be conies even more apparent when imports in this category from the United State-, are analyzed, Bee table I.). [mporte from the United States multi- plied by more t ban 5,500 percent during I he 6 \ ear period recorded. In I960, they exceeded the total value of all Libyan imports in thifl category e fleeted during 1955 and 1956. Table 45. — Libyan Imports of Miscellaneous Manu- factured Articles, Totals and Imports From the United States, J 955-60 [Value in Libyan pounds ') Year Total imports Imports from the I'nitcd States U.S. Im- porU as peromt- age ot total 1955 1956 1957... 504. 877 559, 534 1, 184. 161 1,451,027 1,694,710 2, 103, 173 11.513 19.541 'JM.'J't iu;j.vv r , 499. 552 680,357 2.3 3.5 22.3 1958... i • 1 'J.V.I 29.3 1UIKI 32.3 ' One Libyan pound equals US$2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. There is no question but that petroleum ex- ploration company activities contributed greatly to this somewhat spectacular increase, as imports of measuring instruments, accounting for 20.5 percent of all 1960 imports in this category, were utilized almost exclusively by the oil com- panies themselves. A major portion of the photo- graphic film, photographic apparatus, and maps also were imported for the account of the oil companies. Table 46 lists the principal imports of miscel- laneous manufactured articles. These imports account for 96.7 percent of the total imports under this category. The more significant of these will be analyzed separately. Photographic and cinematographic apparatus and appliances. — Imports of photographic and cinematographic apparatus and appliances were valued at $286,801 in 1960 (1959, $183,330; 1958, $244,574). In 1960, the United States accounted for 36.9 percent of the total value and became the principal source of origin, displacing the Federal Republic of Germany, which fell to second place providing 26.5 percent of the total. The United Kingdom was third with 21.1 percent. 45 Table 46. — Principal Imports 1 of Miscellaneous Manufactured Articles, Totals and Imports From the United States, 7960 [Value in Libyan pounds 2 ] Imports S.I.T.C. Items Total from the code imports United States 861-01 Optical instruments and parts 16, 662 1,110 861-02 Photographic and cinematographic apparatus and appliances. 102, 429 37, 449 861-03 Surgical and dental instruments, etc. 52, 130 3,227 861-09 Measurmg and other scientific instru- ments, n.e.s. 434, 890 237, 624 862-01 Photographic films, paper, etc. 148, 322 61, 843 863-01 Cinematographic films, exposed 143, 267 46, 602 864-01.1 Pocket watches with gold, silver, or platinum cases. 40, 442 51 864-01.2 Other pocket watches. 62, 361 677 891-01 Phonographs, including record players. 14, 676 1,021 891-02 Phonograph records 20, 863 3,951 891-09 10, 105 110, 384 655 892-01.1 Books, printed 7,142 892-01.2 Maps. 18, 412 16, 365 892-02 Newspapers and periodicals 39, 422 404 892-09 Printed matter on paper or cardboard. 70, 107 16, 460 899-02 Matches.. _ 20, 316 169 899-07 Table articles of plastic 43, 458 4,230 899-13 Brooms and brushes . __ . 32, 386 446 899-14 Sports goods (ammunition and arms excluded). 17, 267 1,127 899-15.1 Toys 70, 996 1,539 899-16 Pens and pencils. 38, 799 4,181 899-17 Office supplies (paper excluded) 25, 317 3,884 899-99.1 20, 829 478 899-99.9 — 480, 546 221, 101 Total value of principal imports. _ 2, 033, 386 671, 736 Total value of imports in this 2, 103, 173 680, 357 category. Principal imports as percent of 96.7 98.5 total. 1 Includes all items in which imports totaled or exceeded L£ 10,000 ($28,000). 2 One Libyan pound equals US $2.80. Source: Central Statistics Office, Ministry of National Economy, Tripoli, June 1961. As a result of oil company needs for photo- graphic apparatus, imports from the United States expanded as follows: 1958, $45,195; 1959, $23,148; 1960, $105,857. Surgical and dental instruments. — Italy has long dominated the surgical and dental instruments import trade as most of the resident doctors were Italian (circa 1960) . In 1960, these imports were valued at $145,964. Italy provided 64.8 percent and the United Kingdom 20.1 percent of the total. The United States remained in third place, ac- counting for 6.2 percent. Imports from the United States have been as follows: 1958, $3,620; 1959, $11,777; 1960, $9,036. Measuring and other scientific instruments, n.e.s. — As noted earlier all or practically all of the Libyan imports of measuring and other scien- tific instruments were for the account of the pe- troleum exploration companies. In 1960, this trade was valued at $1,217,692 (1959, $997,209; 1958, $486,483), making them the most important commodity in this category of imports. The vol- ume of imports from the United States reflected the relative importance of the American oil com- panies in Libya as they were valued at $665,347, accounting for 54.6 percent of 1960's total imports in this commodity. France and Italy were in sec- ond and third position with 10.9 percent and 10.3 percent, respectively. Previous imports from the United States were as follows: 1958, $355,972; 1959, $637,137. From all present indications prospects for fu- ture imports of scientific instruments are very encouraging. Photographic films, paper, etc. — This commodity classification includes film, paper, plates, and other supplies used for photographic purposes. Imports in 1960 reached the highest levels recorded in Libya for these items, a total of $415,302 (1959, $249,910 ; 1958, $172,038) . The United States, the principal source of origin since 1959, supplied 41.8 percent of the total value imported in 1960. The United Kingdom and the Federal Republic of Germany were the main secondary suppliers, ac- counting for 22.7 percent and 17.9 percent of the 1960 total value. Imports of photographic films, etc. from the United States increased substantially in recent years, rising as follows: 1958, $50,849; 1959, $69,- 639 ; 1960, $173,160. The volume of these imports is expected to remain at its present high level for the duration of the current search for oil. Cinematographic films, exposed. — Libyan im- ports of exposed cinematographic films have fluc- tuated greatly from year to year. In 1960, they were valued at $401,148 (1959, $530,356; 1958, $131,160). Italy was the principal supplier in 1960, accounting for 39.8 percent of the total value. The United States and the United Arab Republic (Egypt) were in the second and third position with 32.6 percent and 22.3 percent of the total, respectively. Recent imports from the United States were as follows: 1958, $2,461; 1959, $252,211; 1960, $130,486. It is difficult to predict future trends because new legislation, promulgated on September 22, 1960, and known as the "Law Regulating the Showing of (cinema) Films in Arabic," required that all foreign films shown in the country after March 31, 1961, have Arabic dubbing or simul- 46 taneous written translation. The absence of cur- rent Libyan trade data precludes any evaluation of this law's effect at this time. Watches, all types. — Switzerland practically monopolizes trade in watches, providing between 70 and 80 percent of all watch imports annually. The value of these imports has expanded by over 65 percent between 1958 ($174,272) and 1960 ($287,648) . A total of 6,870 watches with cases of precious metal and 30,949 other pocket watehes were imported in 1960. Watch imports from the United States were first effected in 1960, when 15 watches with cases of precious metal, valued at $143, and 53 other watches, valued at $1,896, entered the country. Phonographs, including record players. — A total of 1,132 phonographs or record players were im- ported in 1960 (1959, 1,875). The Federal Re- public of Germany, the United Kingdom, and the Netherlands, all of whom are well represented by appliance dealers in Libya, provided the bulk of these imports, which were valued at $41,099 (1959, $59,170; 1958, $55,081). The above countries ac- counted for 25.8 percent, 23.1 percent, and 19.4 percent of the total 1960 value, respectively. . Imports of phonographs from the United States have increased in number but not in value, being as follows: 1958, $288 (2 machines) ; 1959, $7,255 (138); 1960, $2,859 (318). Phonograph records. — Imports of phonograph records have remained relatively stable, averaging $67,000 annually during the 1958-60 period. It is evident that most of the sales were made to the resident foreign population as imports of records from Arabic countries were negligible. Italy was the principal supplier, accounting for 34.5 per- cent of the total import value in 1960. The United States ranked second, providing 18.3 percent, valued at $11,063 (1959, $2,245; 1958, $3,494). Books. — A total of 589,008 books were imported in 1960 (1959, 503,791). The value of these im- ports was $309,075 (1959, $299,214). The over- whelming majority came from other Arabic countries, which provided 519,690 or 88.2 percent of the total number obtained in 1960. The United Arab Republic (Egypt) continued to be the prin- cipal source of origin, accounting for 72.4 percent of the total value (487,797 books). Imports from the United States were as follows : 1958, $7,591 (1,839 books) ; 1959, $16,887 (11,737) ; 1960, $19,998 (7,309). Courttxij Ohio Oil Company Skilled Libyan technician assists oil exploration activities. Most of the books imported from the United States were paperbacks and, with few exceptions, were sold to the resident Anglo-American oil com- munity. Local sources advised that there would be a relatively substantial market for books from the United States if adequate and inexpensive translations in Arabic were available. Maps. — As noted earlier most of the maps im- ported were for the use of the petroleum explora- tion companies, and this is reflected by the fact that the United States provided 88.9 percent of the total or $45,822 out of the total import value of $51,554. Newspapers and periodicals. — Considering the composition of the Libyan population and its rel- ative economic resources it is not surprising that Italy and the United Arab Republic (Egypt) pro- vided the bulk of these imports, accounting for 53.6 percent and 19.6 percent of the 1960 total, re- spectively. The value of these imports in 1960 was equivalent to $110,382 (1959, $84,176). Quantity figures were not available. Where English-language editions were con- cerned the ability of the British to provide news- 47 papers and periodicals quickly, usually within 1 day of publication, placed them at an advantage- ous competitive position. This is revealed by the differences in the value of these imports which totaled $21,260 (1959, $7,798) as compared with the United States which provided only $1,131 (1959, $1,221). Printed matter on paper or cardboard. — In 1960, these imports were valued at $196,300 (1959, $225,890) . The United Kingdom continued to be the principal supplier, providing 33.1 percent of the total value in 1960. Italy and the United States ranked second and third, accounting for 24.0 percent and 23.8 percent, respectively. Imports from the United States were as fol- lows: 1958, $104,157; 1959, $42,176; 1960, $46,088. Table articles of plastic manufacture. — Imports of plastic articles for use in restaurants, hotels, and homes have shown considerable variation from year to year. In 1960, they were valued at $121,682 (1959, $110,191; 1958, $161,123). Italy was the main supplier in 1960, accounting for 35.4 percent of the value. The United Kingdom and the Federal Republic of Germany were in second and third place, providing 25.8 percent and 16.3 percent, respectively. The United States ranked fourth, providing 9.8 percent. Imports from the United States ex- panded considerably in 1960. The trade pattern was as follows: 1958, $4,914; 1959, $3,167; 1960, $11,844. Brooms and brushes. — Libya does not produce any refined type of brooms or brushes and must depend upon imports to meet its needs. These imports have risen in value annually, totaling $90,681 in 1960 (1959, $76,409; 1958, $59,105). Italy and the Netherlands have long been the prin- cipal suppliers, accounting for 31.3 percent and 25 percent of the total value in 1960. Imports from the United States have been neg- ligible, ranging as follows: 1958, $221; 1959, $1,842; 1960, $1,169. Toys. — Italy has long dominated the import trade in toys, providing 47.9 percent of the total value in 1960. Imports have been rising, attain- ing a total value of $198,779 in 1960 (1959, $189,- 016; 1958, $152,443). The United Kingdom and the Federal Republic of Germany were the main secondary suppliers, accounting for 17.6 percent and 17.2 percent of the 1960 total, respectively. Imports from the United States were as fol- lows : 1958, $4,178 ; 1959, $5,373 ; 1960, $4,309. Pens and pencils, all types. — Libya has been im- porting ever increasing numbers of pens and pen- cils, purchasing well over 1.5 million in 1960. These imports were valued at $108,627 in 1960 (1959, $89,118; 1958, $79,906). The Federal Re- public of Germany and Italy were the principal suppliers, providing 14.4 percent and 12.7 percent of the total, respectively. Imports from the United States showed con- siderable variation, ranging as follows: 1958, $13,073; 1959, $25,592; 1960, $11,707. Office supplies (paper excluded). — Imports of sundry office supplies, paper excluded, have aver- aged $77,000 during the 1958-60 period. The United Kingdom, the Federal Republic of Ger- many, and Italy were the principal suppliers sharing, more or less equally, 77.6 percent of the total value in 1960. Imports from the United States were as follows : 1958, $10,480; 1959, $6,684; 1960, $10,875. Manufactured articles, n.e.s. — This somewhat amorphous category includes a wide conglomera- tion of manufactured articles defying definite classification. In the absence of any clarification, this report can only observe that the value of these imports doubled during the last year : 1960, $1,345,529; 1959, $656,488. The United States provided imports valued at $619,083 in 1960 which were equivalent to 46.1 percent of the total. The United Kingdom and Italy were the principal secondary suppliers, ac- counting for 16 percent and 15.2 percent, respec- tively. Previous imports from the United States were as follows: 1959, $224,627; 1958, $186,542. 48 New Tripoli electric power plant. The fast-growing oil industry opens up prospects for new refineries and processing plants. 49 some tips for firms interested in sales to Libya Know the market. Obtain information from all available sources. Visit the market and spend sufficient time to make careful assessment of market possibilities. Select your agent carefully. Keep in close touch with your agent and have company representatives and technicians, knowledgeable in Arabic or Italian if possible, make frequent visits to assist him. Adapt your product to the market. It is a price conscious market and a simple but effective product usually has wide acceptance. Offer favorable credit terms and tailor your terms to the credit rating of the customer. On sales of capital equipment consider possibility of offering deferred terms. Quote c.i.f . whenever possible. Answer correspondence promptly and, if possible, in Arabic. Lack of promptness may lose sales. Prepare advertisements in Arabic and Italian to reach potential buyers in the most effective way. Know and avail yourself of the services offered by the Department of Commerce Field Offices in your region and by the Commercial Attache in the United States Embassy in Tripoli. ®S8gSSS8S8S8S8SSSSgSSSSSS8SSSSSSSSSSSSSS8S8gS8gSSSSS8SSS®S88SSS®SSSSSSSSS®SSSSSS8S« 50 CHAPTER IV Distribution Facilities and Services MARKETING CHANNELS Libya is divided geographically by the Syrtica desert which splits the country longitudinally into the Province of Cyrenaica to the east and the Provinces of Tripolitania and Fezzan to the west. Fezzaiij which consists of little more than a group of widely scattered oases, plays an insignificant role in commercial affairs and can be dismissed from further consideration at this time. Tripoli is the sole distribution center for the western half of Libya. The largest (population 190,541) and most cosmopolitan city in the coun- try, it is Libya's commercial and financial center. Most of the petroleum companies, banks, import houses, shipping linns, and other business enter- prises have established their head offices in Tripoli proper. Many Tripolitanian firms have branches or agents in Cyrenaica but Provincial rivalries are intense and there may well be instances where ex- porters will find it advisable to select separate agents or other representation in the two coastal Provinces, preferably in their respective capitals and principal urban centers — Tripoli and Ben- ghazi. The other urban centers are either too small or too isolated from any market to warrant consideration under normal circumstances. In any event, Tripoli is by far the most important port of entry, accounting for 74.9 percent of all imports (by volume) entering Libya in 1960. Any study of the Libyan import channels must be prefaced by some explanations regarding the Commercial Agencies Law. Promulgated in July 1959 and supplemented by subsequent regula- tions it has begun what may well be a complete metamorphosis of the existing import and trading institutions. In essence, the law has limited the number of agencies held by any single linn to only 10 per firm, with effect From September 15. 1901. This limitation is equally applicable to commis- sion agencies, import houses, and branch houses. The consequences of this legislation have not OS yet been fully evaluated but they are bound to handicap any exporter seeking to establish trade outlets in Libya. It is particularly unfortunate that the older, well-established import houses, which possess the best distribution and servicing facilities, are generally unable to undertake new commitments. Most of them already have their full legal quota of 10 agencies. In view of the foregoing, the only Libyan firms able to conduct import trading without major difficulties are the subsidiaries of the petroleum companies, which import for their own account, other direct importers, newly organized commis- sion agencies, and, possibly, branch houses of the exporter. The larger oil company subsidiaries are pro- vided with procurement offices authorized to effect local purchases directly but major import pur- chases are generally referred to their respective home offices, either in the United States or in Europe, for final approval. I'.S. linns desiring to sell equipment, supplies, or services to the petro- leum exploration companies must be prepared to overcome the obvious disadvantages inherent in the existing arrangements. They may find them- selves obliged to initiate their sale in Libya by interesting the company officials on the spot before they can consummate the sale in New York. Houston, or elsewhere, through the exploration company's home office. 51 TRADE LISTS PROVIDE NAMES OF FIRMS IN LIBYA Names and addresses of principal importers, producers, processors, wholesalers, and distrib- utors in Libya, grouped by individual commod- ities and industries, are provided in the Trade List available on Libya from the Department of Com- merce. Information about size and type of oper- ations and the sales territory covered also is included. TRADE LISTS may be purchased from the Commercial Intelligence Division, Bureau of International Commerce, U.S. Department of Commerce, Washington 25, D.C., or from the Department's Field Offices for $1 per list. Direct importers in Libya (oil companies ex- cepted) are relatively limited in number. Being subject to the restrictions imposed by the Com- mercial Agencies Law, it is unlikely that they will be in a position to expand by accepting new agen- cies. Consequently, interested exporters will probably have little choice but to seek the services of a commission agent. According to local banking and commercial sources the most effective type of representation in this field is generally provided by the agent who specializes in a small group of similar but noncompetitive products. The agent is usually paid a commission ranging from 2.5 to 15 percent, depending on the product line. The advantage of this arrangement is that as a specialist he possesses intimate knowledge of the product (particularly important where relatively complex technical equipment is concerned). Furthermore, the ex- porter retains control of the product and can en- courage vigorous representation. A disadvantage of this arrangement is that the financial risk for the exporter will be greater. In some cases, how- ever, agents are sometimes willing to assume or share the credit risk. Selecting a satisfactory agent may not prove an easy task as most of the well-established commis- sion agents already have their full legal quota of 10 agencies. The exporter will probably have to establish relations with one of the many newly created commission agencies. Since the imple- mentation of the Commercial Agencies Law, a large number of new and almost invariably small firms have been created. At this stage most of them are anxious to accept consignments of prac- tically any type of goods from any available market. Unfortunately, however, their receptivity is not necessarily commensurate with their capability. Exporters will often be confronted with the question of whether or not to undertake a training program and undergo the cost and trouble of pro- viding their selected commission agent with tech- nical guidance and advice on selling method- ologies. It was observed that enterprising European exporters had already initiated meas- ures to assist carefully chosen Libyan agents in the above-mentioned techniques. These experi- enced European exporters were apparently con- vinced that the potential of the Libyan market warranted some additional initial investments on their part in the form of training and on-the-spot professional advice to their respective commission agents. Another method of representation is through the establishment of a local branch. Obviously this method provides the greatest guarantee that the exporter will obtain efficient and aggressive promotion of his product, and permits him to re- tain control over the product. This method, how- ever, involves a considerable investment and can only be justified on the basis of sales volume or of the need for local servicing facilities or inventor- ies. It must be emphasized, moreover, that the establishment of a branch office (or, for that mat- ter, any other type of foreign-owned business en- terprise) in Libya is no simple undertaking. The required formalities are unduly complex and their completion often protracted. Careful selection of representation is an im- portant factor to successful selling in the Libyan markets. Not only is it important to select the type of distribution system most suitable for the needs of the exporting firm and the product, but it is equally and perhaps more essential to select a representative with character, aggressiveness, financial solvency, and experience. Discretion must be exercised,,f or many of the available com- mission agency firms in Libya have neither the resources nor the capabilities to provide effective representation. In any event, a clear understand- 52 ing of the rights and obligations of the contracting parties is essential and this can best be done by a carefully executed contract between the two parties. In the case of Libya, periodic visits by a quali- fied representative of the company (preferably one with good knowledge of Arabic or Italian) for the purpose of providing assistance to the agent and for evaluating the market should be regarded as essential. GOVERNMENT PURCHASING Small purchases are made direct without public tenders, but many supplies, equipment needs, and services are obtained by contract after public ten der. Preference is given local companies forth items which can be supplied locally, but most goods are imported based on contracts awarded on the most advantageous conditions. All major construction projects supposedly are conducted under a tender system. AIDS TO MARKETING Market Research Libya has no central procurement agency for Government purchases. The various Ministries of the Federal Government and the Nazirates (De- partments) of the respective Provincial Govern- ments generally purchase their own requirements. A number of other Governmental agencies also import direct: The Agricultural Bank of Libya; the National Esparto Development Corporation of Tripolitania ; and the Controller of Monopolies, Department of Finance, Administration of Tripolitania. WTD REPORTS HELP IN SELECTING REPRESENTATIVES AND TRADING PARTNERS Information on private firms in Libya is avail- able to U.S. businessmen through World Trade Directory (WTD) reports. WTD reports include such information as type of organization, sales territory, lines of goods handled, operation methods, size of business, capital, sales volume, trade and financial repu- tation, and other business information. These reports are available to qualified U.S. firms or will be prepared on request through the Commercial Intelligence Division, Bureau of In- ternational Commerce, U.S. Department of Com- merce, Washington 25, D.C., for $1 each. The reports also may be obtained through the Depart- ment's Field Offices. No market research facilities, as understood in the United States, are available in Libya. Mar- keting data are lacking, and companies generally base their plans on past sales and on agent's esti- mates. Most local commercial enterprises con- sider market studies and even sales promotion as superfluous, being content to let the customers beat a path to their doors. Advertising Media One of the basic problems in advertising in Libya is how to attract the attention of the local population. The literacy rate is not high. The presence of a relatively important Italian com- munity in Tripolitania may make it desirable to advertise in Italian as well as in Arabic. Newspapers are the most frequently used media of advertisement. The principal daily newspap- ers are the Tarablus el Charb (Arabic language) and the II Giornale di Tripoli (Italian language). Weekly newspapers include two English-language publications, the Sunday Ghibli and the Tripoli Mirror as well as two Arabic-language publica- tion, The Al-Raaid and the AJ-Taliiah. All of these are in Tripoli. Benghazi has one thrice-weekly newspaper the Iiarqah al-Jadiidah, while a weekly, The Fezzan. is published in Sebha. Both of these are Arabic- language newspapers. No reliable circulation figures are available. The radio system is Government-owned and does not accept advertising. No Libyan television sta- tions exist at this time. There are no locally produced popular maga- zines. The only trade journal enjoying some cir- 53 n "f« Entrance to the Tripoli International Fair grounds. The United States will participate in the 1963 annual trade fair. culation in the business community is a monthly bulletin published by the Tripolitanian Chamber of Commerce. Other advertising media are screen advertising in motion-picture theaters, billboards, posters, let- ters, circulars, and neon signs. Latest estimates (circa 1960) show 32 motion-picture theaters, mostly in Tripoli and Benghazi, with a seating capacity of about 19,550. Advertising should of course be prepared in Arabic and, depending on the product, perhaps in Italian as well. There is only one advertising agency, Stile, located in Tripoli. It limits its ac- tivities to Tripolitania and can provide services in the Arabic, Italian, and English languages. An annual international trade fair is to be held in Tripoli, February 20 to March 20. The first fair began in 1962 and was reported to have been very successful, attracting both local and foreign visitors (see Foreign Commerce Weekly, Febru- ary 26, 1962, page 331) . Warehousing Facilities Warehousing facilities in Libya are very lim- ited. Small refrigerated and other storage facili- ties are available in Tripoli and Benghazi but space is often dependent upon the volume of ship traffic. The larger importers provide their own facilities. Customs authorities regard their warehouses as facilities for temporary storage, so storage charges are set on a progressively rising scale, depending on the length of time goods are stored. (See Preparing Shipments to Libya, World Trade Information Service, part 2, No. 61-43, July 1961.) The Tripoli Free Zone, occupying an area of 58,000 square meters, is scheduled for completion in 1962 but, as yet, no sheltered warehouse space is available. Packing for goods destined for Libya should be sturdy enough to withstand exposure. Credit Information All of the commercial banks furnish credit in- formation on an exchange basis and free of charge to banking entities abroad. Inquiries by individ- uals should be made through their local banks. (See U.S. Department of Commerce, Bureau of International Commerce, Sources of Credit Infor- mation on Foreign Firms, Washington 25, D.C., 1958, 84 pp. 30 cents.) Trade Promotion A recent publication of the U.S. Department of Commerce lists the principal governmental and private organizations in Libya, as well as other countries, actively engaged in promoting and fa- cilitating trade and investment. The businessman will find this a helpful aid in studying the Libyan market, (See U.S. Department of Commerce, Bureau of International Commerce, Director of 54 55 Entrance to the port of Tripoli, which handled 696,431 metric tons of cargo in 1961 and 838,594 tons in 1960. Foreign Organizations for Trade and Investment Promotion, Washington 25, D.C., 1961, 108 pp. 35 cents.) Trade Associations The principal trade associations in Libya are: Chamber of Commerce, Industry and Agriculture, 5 Sciara Teheran, Tripoli; Cyrenaican Chamber of Commerce, Industry and Agriculture, Ben- ghazi; and the Consorzia Agrario Delia Tripoli- tania, 52 Ciaddat Omar El Muktar, Tripoli. There is no American chamber of commerce in Libya. TRANSPORTATION FACILITIES Maritime Shipping and Ports Maritime shipping carries all but a minute frac- tion of Libya's foreign trade. In terms of ton- nage, maritime foreign trade represented almost 99.2 percent of the total foreign trade transported. No Libyan-flag ships were equipped to carry cargoes. Eegular scheduled calls by the principal lines servicing Tripoli, together with numerous un- scheduled visits, provide shipping services, di- rectly or indirectly, to all major U.S. ports as well as European and Mediterranean harbors. The American Export Lines, Inc., Lykes Bros. Steamship Co. Inc., and Isbrandtsen Company provide scheduled service between Tripoli and U.S. ports on the Atlantic or Gulf coasts. The port of Tripoli is the best equipped and most important port in Libya. However, in re- cent years port facilities have been somewhat congested. By far the greater part of Libya's imports enter through Tripoli — 74.9 percent by volume in 1960. Data for Libya's 1960 export trade is incomplete but in 1959 the bulk of the Libyan exports were shipped from Tripoli — 80.5 percent by volume. The balance of the foreign trade maritime ship- ments were effected through the ports of Cyre- naica. In 1959, Benghazi accounted for about 70 percent of all the Cyrenaican maritime com- merce, Tobruk roughly 25 percent, and Derna about 5 percent. As noted earlier, the port of Benghazi has been undergoing reconstruction since the autumn of 1960. Airlines Air transport services have played an ever- increasing role in Libya's transportation system. Libya has three international airports — Idris, near Tripoli; Benina, near Benghazi; and a smaller field at Sebha in the Fezzan. Idris and Benina have terminal and operating facilities and can accommodate all but the largest modern aircraft. Frequent scheduled flights connect Tripoli with Eome, Tunis, Malta, London, Kano, Beirut, Dakar, Bastia, and Geneva and through them in- directly with the rest of the world. Tripoli is also linked with Benghazi 6 days a week and with Sebha twice weekly. Benghazi has direct com- munications with Athens and Cairo and indirect with the rest of Europe, the Middle East, and other parts of the world. 56 The mosl prominent airlines with scheduled flights are British Overseas Airways Corp. (BOAC), Royal Dutch Airlines (KLM), Sabena Belgian World Airlines, British European Air- ways (BEA), Alitalia, Union Aeromaritime de Transport (HAT), and Air Liban. There is no Libyan-flag airline. A number of air charter companies, serving I he petroleum exploration companies, provide rela- tively extensive nonscheduled services within Libya. Railways Libya has only one small-gage railway system centered on Benghazi, but it does not play any role in Foreign commerce as it is of only marginal utility in domest ic trade. Highways The principal highway in Libya is the I oa I load (about 1,1 h» miles in length) that runs from the Tunisian to the Egyptian bordero, This road is bitumined and generally maintained in good condition. Other relatively important paved roads cover about 2,400 miles, mostly in the coastal areas. A major road project which may even- tually link the Coastal Road with Sebha in the Fezzan has been under construction for several years. Paved roads replace camel tracks in desert as petroleum companies link wells with oil ports. Courtesy Esso Standard (Libya), Inc. Oil port rises on Libyan sands. Constructed by Esso Standard (Libya) Inc., the port of Marsa el Brega provides an outlet for Esso's Zelten oilfield. Courtesy of Standard Oil Company (A'.J.i Tripoli's Post Office Square. This attractive city provides an oasis for prospecting teams returning from the desert. "'-'■■ ---- ■- t®t*H ■ :V •* > '-'^5?''"jk£* ; •-■* +~- Courtesy Esso Standard (Libya), Inc. Pipelines cross desolate desert where temperatures are high, sand storms blow, and forage is scanty even for hardy camels. CHAPTER V Government Regulations Affecting Imports IMPORT LICENSES AND EXCHANGE PROCEDURES Most imports may be imported without restric- tions under open general license. Commodities subject to individual import license include: Proc- essed foodstuffs, motion-picture films, ice cream, transport vehicles, and items manufactured locally. .Imports of a few goods from all countries, and all imports from Israel, are prohibited. Exchange permits required for authorized imports are readily granted by the authorized banks, provided there is a firm contract and any necessary import license has been obtained. The basic unit of currency is the Libyan pound which is maintained at par (L£l equals US$2.83 at par value) . SHIPPING DOCUMENTS The documents normally required on shipments to Libya are the commercial invoice, the ordinary bill-of-lading (airway bill for air cargo), the cer- tificate of origin, and, in some cases, phytosanitary certificates. The certificate of origin must be au- thenticated by the local chamber of commerce, and then by any Arab country consulate. Where no Arab consulate exists, or where such consulates refuse authentication, a statement by the exporter noting this fact on the certificate will satisfy Libyan requirements. The U.S. Government re- quires a shipper's export declaration and a des- tination control statement. (Full particulars concerning the documents required are contained in Department of Commerce publication entitled Preparing Shijrments to Libya, World Trade In- formation Service, part 2, No. 61^3, July 1961.) CUSTOMS DUTIES Nearly all imports entering Libya are subject to import duties. The metric system of weights and measures is used in customs transactions. Where duties are imposed according to a specified quan- tity, the dutiable weight is the gross weight of the goods. Customs officials may require that the weight of the goods as invoiced be verified by cus- toms approved sales. When duties are levied on an ad valorem basis, the dutiable value is the value of goods purchased from abroad and delivered at the place of import after freight, insurance, commission, landing charges, and all other incidental expenses have been paid (c.i.f. value). A surcharge of 5 percent of the regular payable duty is levied on most imports for support of the children's Welfare Fund. All import duties are payable in Libyan cur- rency. Foreign currencies are converted at the official exchange rate. Customs duties on goods that are domestically produced are generally high for protective reasons. They are also high on so-called "luxury" goods whether domestically produced or not, ranging between 33% percent ad valorem (e.g., fabrics of synthetic fibers) to 200 percent (e.g., all types of wines) . 59 Some goods imported for use by the petroleum companies and their contractors (e.g., drilling rigs) are exempted from the import tariffs. Information on duties applicable to particular products is available upon request by writing the Africa Division, Bureau of International Com- merce, Washington 25, D.C. More details concerning the structure of the Libyan import tariff system may be found in the Department of Commerce publication entitled Import Tariff System of Libya, World Trade Di- rectory Service, part 2, No. 62-1, January 1962. COMMERCIAL AGREEMENTS There are no trade or investment agreements or treaties relating to commerce between Libya and the United States. FREE PORT A free port area is now under construction in the Tripoli harbor area. Legislation pertaining to its operations has not as yet been promulgated but it is assumed that it will enjoy typical "free port status." Sunset in the Libyan desert. 60 CHAPTER VI Trade Practices and Government Representation AS noted in Chapter V, import, licenses are re- quired in all instances. All transactions involving the importation of merchandise must be made either by letter of credit or for cash against documents. It is advisable that collections on firms in Libya should he sent through a bank for presentation. Quotations and offers should always be made c.i.f. terms based normally on shipments to Tropoli. The metric system of weights and meas- ures is in use and all quotations should, of course, be based on that system. Letters of credit normally are valid for 3 months and may be extended without difficulty provided the extensions do not exceed the validity period of the corresponding import license. Im- port licenses are normally valid for 12 months and must be obtained before merchandise is ordered from abroad. Goods must arrive within the validity period of the import license, but exten- sion may be granted on production of proof that the goods were shipped before the expiration of the license. Shipments should on no account ex- ceed in value the amount shown on the import license, which is the total value of the goods c.i.f. The Libyan market is highly sensitive to price, particularly on items of mass consumption. Fre- quently, an importer will prefer a lower priced product even though it is of inferior quality. Needless to relate, this factor does not apply to petroleum company imports whore the reverse is generally the rule. The usual hours of business in Tripoli and Benghazi are from 8 a.m. until noon and from 4 p.m. to 8 p.m., with general closing varying be- tween Friday, Saturday, or Sunday, depending upon the religion of the shop owner. Banks are closed all day Fridays and open for only half a day on Sunday. All Government offices are closed on Fridays. Arabic is the language of Libya. Many busi- nessmen in Tripoli have a very good knowledge of Italian and an increasing number of businessmen and Government officials are learning English. Naturally, however, they prefer to use their own native tongue. Business correspondence can still be conducted in English or Italian but the use of Arabic is being stressed by local officials and the press. Translation facilities, particularly in Tripoli, are generally adequate but care should be exercised to insure full and detailed provisions in contracts or agreements to avoid costly mistakes and hard feelings. Cablegrams and other corre- spondence in English should be clear and should avoid uncommon abbreviations or colloquialisms. Exporters planning to enter the Libyan market should register their trade names and trademarks. GOVERNMENT REPRESENTATION The Government of Libya is represented in the United States by the Embassy of the United King- dom of Libya, 2129 Lerov Place NW., Washington !), D.C. The United States has Embassy offices at Tripoli and Benghazi with economic, consular, and other officers stationed at both posts. Com- mercial travelers visit ing Libya are invited to visit the office of the U.S. Commercial Attache in Tripoli who can frequently be of considerable assistance. 61 PUBLICATIONS ON LIBYA Department of Commerce Publications World Trade Information Service (WTIS) re- ports on Libya include the following : Economic Reports . . . Basic Data on the Economy of Libya, part 1, No. 61-10, 14 pp. March 1961. 15 cents. Establishing a Business in Libya, part 1, No. 59- 55, 11 pp. June 1959. 10 cents. Investment Law of Libya, part 1, No. 58-64, 3 pp. August 1958. 10 cents. Operations Reports . . . Import Tariff System of Libya, part 2, No. 62-1, 1 page. January 1962. 10 cents. Preparing Shipments to Libya, part 2, No. 61- 43, 4 pp. July 1961. 10 cents. Licensing and Exchange Controls, Libya, part 2, No. 56-83, 2 pp. September 1956. 10 cents. Living Costs and Conditions in Libya, part 2, No. 57-19, 4 pp. February 1957. 10 cents. Travelers' Baggage Regulations of Libya, part 2, No. 57-73, 2 pp. July 1957. 10 cents. These publications may be ordered from De- partment of Commerce Field Offices or from the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. Make re- mittance payable to the Superintendent of Docu- ments. WTIS reports issued before 1960 are available only from the U.S. Department of Com- merce and its Field Offices. Other Publications The Economic Development of Libya. Eeport of a mission organized by the International Bank for Eeconstruction and Development at the re- quest of the Government of Libya. Published by the Johns Hopkins Press, Baltimore. 1960. $7.50. The Economic and Social Development oj Libya. By Benjamin Higgins. United Nations Publications (Sales Number: 1953. II. H.8). $1.75. Report on the Agriculture of Libya. By O. J. Wheatley. FAO/51/8/1840., Eeport No. 13, Borne. December 1951. The Agricultural Economy of Libya. By Hilda M. Ganady. FAS-M-1. Department of Agriculture, Division of Publications, Washing- ton 25, D.C. Libya — Economic and Commercial Conditions in Libya. By H. H. Thomas. Her Majesty's Stationery Office, 45 Eockefeller Plaza, New York 20, N.Y. December 1955. Libya — Building a Desert Economy. By Agnese N. Lockwood. Columbia University Press, 2960 Broadway, New York 27, N.Y. March 1957. Libya — The New Arab Kingdom in North Africa. By Henry S. Villard. Cornell Univer- sity Press, Ithaca, N.Y. 1956. 62 APPENDIX A Notes for Business Travelers GENERAL COUNTRY INFORMATION HOTEL ACCOMMODATIONS The United Kingdom of Libya, consisting of three Provinces, has been an independent country since December 24, 1951. Libya is a constitutional, hereditary monarchy, with a federal system of government. The three Provinces — Tripolitania, Cyrenaica, and Fezzan — enjoy considerable autonomy and share powers with the Libyan Federal Government in a fashion similar to that followed in the United States. Certain powers are given to King Idris I under the constitution. He appoints the Cabinet on the recommendation of the Prime Minister. The Parliament consists of a Senate and a House of Representatives. Half of the senators are ap- pointed by the King; the other half are chosen by the Provincial legislatures. The House of Rep- resentatives is elected on the basis of 1 deputy for every 20,000 inhabitants. HEALTH CONDITIONS Health conditions vary greatly throughout Libya. In the coastal areas the climatic condi- tions are typical of the Mediterranean region. The major towns have water supplies safe for con- sumption. Conditions in the desert oases, Sebha excepted, can be difficult, particularly during the summer months. It is recommended that persons going to Libya be immunized for typhoid, smallpox, diphtheria, typhus, and tetanus. Medical facilities generally are adequate in the two urban centers, Tripoli and Benghazi. Tripoli has a number of hotels, some of them new, which provide reasonably comfortable fa- cilities although they are not comparable with those in the United States. Charges are reason- able. Hotel reservations should be made well in advance of arrival. There are no boardinghouses of equivalent facilities available in Libya. Benghazi has limited hotel facilities, some of which are not always satisfactory. Hotel accom- modations exist in other towns but they are in- ferior to those obtainable in Tripoli or Benghazi. FOOD AND CLOTHING Tripoli has several acceptable eating places but care should be exercised elsewhere in the country. During the summer light clothing can be used exclusively. It seldom rains between April and October. Laundry services are provided by the hotels. During the winter months nights can be quite cool and rains can be expected so the traveler should be dressed accordinglv. TAXIS Taxis are freely available in both Tripoli and Benghazi although charges can be heavy unless the traveler is adept in bargaining. 63 PASSPORTS AND VISAS In addition to passports, all persons must have visas to enter Libya. Visas are generally issued for 30 days only but they may be renewed in Libya. Visas are obtainable from the Libyan Embassy in Washington. Upon arrival in Libya all persons must obtain a residence permit if they desire to remain in the country after the expiration of their visa. Businessmen or other travelers desiring more detailed information can find much useful data in the Department of Commerce publication entitled Living Costs and Conditions in Libya, World Trade Information Service, part 2, No. 57-19. Tripoli scene — a street in the Old City. Courtesy Tripolitaniaw Tourism Office 64 APPENDIX B American Firms with Offices in the United Kingdom of Libya PETROLEUM EXPLORATION COMPANIES American Overseas Petroleum Co., Ltd. (AMOSEAS) California Asiatic Oil Co. Texas Overseas Petroleum Co. Esso Standard (Libya), Inc. Gulf Oil Company of Libya Libyan-American Oil Company Libyan Atlantic Company Mobil Oil of Canada, Ltd. Nelson Bunker Hunt Oil Company Oasis Oil Company of Libya Amerada Petroleum Co. of Libya Continental Oil Company of Libya Obio Oil Company Pan American Libya Oil Company PETROLEUM INDUSTRY SERVICING COMPANIES Aero Services Corporation Air Jordan Company, Ltd. Burden Drilling and Pipeline Contractors G. B., Ltd. Delta Drilling Co. Fairchild Aerial Surveys, Inc. Geofisica Rogers, C.A. Geophoto Libya Geophysical Service International. S.A. Halliburton Oil Well Cementing Co. Intercontinent Engineering Co. International Drilling Company, X.Y. International Exploration Inc. Loffland Brothers de Venezuela. C.A. MeCullum Exploration Co. Namco International Robert II. Ray Geophysics, Inc. Santa Fe Drilling Co. Seismograph Service Corporation of Libya Harold T. Smith International, S.A. United Geophysical Company, S.A. Western Geophysical Company of America 1 A more Inclusive and more comprehensive list is available through the U.S. Department of Commerce or its local Fiei.i Offices in a trade list entitled Business Firms — Libya. 65 US GOVERNMENT PRINTING OFFICE I9<2 — M71S7