A SUPPLEMENT TO International Commerce THE UNIVERSITY UBRAW TRADE MISSION REPORT A U.S. DEPARTMENT OF COMMERCE PUBLICATION A SUPPLEMENT TO International Commerce ... the weekly news magazine for world traders published by the Bureau of International Commerce and sold by the Superintendent of Documents, U.S. Government Printing Office, Washing- ton, D.C. 20402, and by Department of Commerce Field Offices for $16 a year. Report of the 1964 Trade Mission to VENEZUELA A U DEPARTMENT OF COMMERCE PU U.S. DEPARTMENT OF COMMERCE Luther H. Hodges Secretary Franklin D. Roosevelt, Jr. Under Secretary Jack N. Behrman Assistant Secretary for Domestic and International Business Thomas G. Wyman Deputy Assistant Secretary for Domestic and International Business BUREAU OF INTERNATIONAL COMMERCE Eugene M. Braderman Director For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C., 20402 Price 25 cents. Members of U.S. Trade Mission to Venezuela ANDREW B. WARDLAW, Mission Director Deputy Director, American Republics Division Bureau of International Commerce, U.S. Department of Commerce THOMAS T. MURPHY Dean, College of Business Administration University of Notre Dame, Indiana FLOYD B. CASE President, Haley's Foods, Inc. Hillsboro, Oregon RALPH H. ROTH President, Machinery Products Corp. St. Louis, Missouri JOHN J. DEMPSEY President, Armor Products, Inc. New York, New York FRED D. WRIGHT President, Fred D. Wright Co., Inc. Nashville, Tennessee CHARLES K. LUDEWIG, Trade Development Officer Trade Missions Division, Bureau of International Commerce, U.S. Depart- ment of Commerce Reports by Mission members are reprinted from the April 27, 19*4 issue of INTERNATIONAL COMMERCE. Specific trade and investment opportunities are reprinted from issues of April 6— April 27. Photographs and other illustrative materials appearing in this supplement to INTERNATIONAL COMMERCE were furnished by the Creole Petroleum Corpo- ration, the Venezuelan Embassy, and the World Bank. NEW, MODERN FACTORY AT VALENCIA: Protinal, manufacturers of animal feeds, recently opened this plant in north central coastal orea. Venezuela industrializes On threshold of vigorous economic expansion, country offers capital goods market By ANDREW B. WARDLAW Mission Director Today Venezuela stands on the thres- hold of what promises to be a period of vigorous economic expansion, and busi- ness leaders are convinced that circum- stances are favorable for this economic growth. Venezuelans everywhere seem confi- dent of the political stability of the coun- try. The belief is widespread in Vene- zuela that exports of petroleum and other products will continue to earn the foreign exchange needed for economic expan- sion. It is generally accepted by Vene- zuelan businessmen that their Govern- ment has placed the country's fiscal system on a sound basis after the exces- sive spending of the Perez Jimenez regime. Ciovernment and business leaders point to the country's vast mineral wealth, its present and developing elec- tric power facilities, and its internal transportation system as affording a firm physical basis for economic expansion. The future which Venezuelan business foresees is not only one of expansion, but also one of industrialization, for the Government and the business community are committed to a policy of urgent pro- motion of manufacture within the coun- try of consumer goods and simpler me- chanical equipment. Should this view of the economic pros- pects for Venezuela over the next few years be well founded, and the U.S. Trade Mission believes that it is, there are three obvious conclusions about the future of American business in Venezuela: l) The country's large foreign ex- change earnings and rising demand for goods of all kinds insures that Venezuela will continue to offer an attractive mar- ket for U.S. exporters. ty The drive toward industrialization means that the character of the coun- try's imports will continue to change, with the market being closed more and more to foreign light manufactured prod- ucts, but with the demand for foreign capital goods and raw materials rising sharply. ^ The U.S. investor, able to offer sound technology and good management practices, should find rewarding oppor- tunities for licensing and investment in Venezuela. Business confidence in the political stability of any country is essential to the country's economic progress, and Vene- zuelan businessmen speak with assur- ance about the outlook for the political stability of Venezuela. This confidence was greatly bolstered by the peaceful character of the Presidential and Con- gressional election on December 1, 1963, and by the peaceful inauguration of the new President on March 11, 1964. Another essential to the economic ex- pansion of Venezuela is continuation of her large foreign exchange earnings. These earnings, which amounted to some $2.6 billion in 1962, come about 93% from petroleum and 5% from iron ore. The Venezuelan Government has not in recent years awarded new concessions for petroleum development and so ex- penditures by the companies on explor- ation and new development are much lower than they were some years ago. Output from existing operations con- tinues, however, and in 1962 Venezuelan petroleum exports amounted to $2.4 billion. It is anticipated that these ex- ports will increase about 4% annually. There are no signs of Venezuelan de- velopments which threaten iron ore ex- ports although world market conditions have caused them to drop some 36% in the last 2 years. As the ore constitutes only 5% of exports, the drop amounted to less than 2% of export earnings. Therefore, Venezuela can be expected to continue its high foreign exchange earnings. Fiscal policy sound Also contributing to the encouraging economic outlook of Venezuela is the Government's sound fiscal policy and the strength of the bolivar. The Vene- zuelan Treasury ran a surplus in 1963 of 612 million bolivares ($134.6 million) of which 585 million bolivares ($128.7 million) were used to reduce the public debt and 27 million ($5.9 million) to in- crease Treasury reserves. On December 31, 1963, the national debt was only 2.23 billion bolivares ($490.6 million); the equivalent of less than one-third of the national budget. In January 1964 the na- tion's international monetary reserves amounted to $796 million and the bolivar has an almost complete gold coverage. The country offers some of the more essential physical facilities for economic development. Venezuela possesses a good road system connecting the major cen- ters of the country, and the internal flow of its commerce is largely by highway. Highway development has progressed significantly in recent years and further road construction is planned. The mag- nificent super-highway from La Guaira to Caracas would be an outstanding link in any country's highway system. The country also makes use of coastwise ship- ping and of the rail lines from Caracas to Valencia and from Puerto Cabella to Barquisimeto. Venezuela places much of its hopes for its future on electric power. The country's U.S. Trade Mission to Venezuela A U.S. Industrial Expansion Trade Mission to Venezuela visited Caracas, Maracaibo, Maracay, and Barcelona February 22 — March 22, developing over 180 trade and in- vestment opportunities for U.S. companies. The Mission held individual in- terviews with over 200 Venezuelan firms. Of the 310 Business Proposals of U.S. firms presented by the Mis- sion, 171 were of interest to 262 Venezuelan businessmen. Charles Ludewig, of the Com- merce Department's Trade Missions Division, was the group's Trade Development Officer. installed power grew annually about 19% in the decade up to 1960. It has more than doubled in the last 3 years and the Government is now building the first stage of the enormous Guri power dam on the Caroni River which, when completed in 1968, will have a capacity of 350,000 kilowatts. When the whole project is completed it should have a capacity of 6 million kilowatts. In 1963 the country produced an estimated 6.6 billion kilowatt-hours. Adequacy of the power supply at present varies somewhat from area to area, but plans are advanc- ing for improved power distribution throughout the country. New industries in urban areas Enthusiasm for economic development and industrialization is evident every- where. Caracas is growing rapidly and its industry is expanding, in spite of the widespread feeling that the city, which accounts for some 70% of the country's industrial production, already has too many manufacturing plants. New indus- tries are springing up in most other urban areas of the country, and each city the Mission visited has a well developed in- dustrial zone, to which it was working energetically to attract new industries. Valencia has been particularly success- ful in this. Maracaibo, Maracay, Bar- quisimeto, La Victoria, Cagua are com- peting strongly for new industries as are various other Venezuelan cities. Outstanding among the developing areas is the Government sponsored Santo Tome de Guayana in eastern Venezuela, centering in the juncture of the Caroni and Orinoco Rivers. Until the end of the Second World War this area was remote from all economic development; how- ever, two American companies began large iron-mining operations there in the late 1940's. This was followed by completion in 1959 of a large dam (300,- 000 kilowatt installed capacity) at the mouth of the Caroni River, and of a Government-owned steel mill. Numerous secondary industries are now springing up around these major operations and workers are reportedly flowing into the area at the rate of 1,000 each month. With completion of the first stage of the Guri dam in 1968 the area's supply of cheap power will be vastly increased and industrial installa- tions in the area can be expected to mul- tiply rapidly. A calculated policy The general industrial expansion in Venezuela reflects not only these favor- able economic conditions but also a cal- culated Venezuelan policy. This policy is one of placing high tariffs on most consumer goods and light industrial prod- ucts which the Government believes can be produced in the country or of with- holding licenses for their importation. It also sometimes involves the granting of credit and other facilities for local manufacturers of these goods. Although 17.7% of Venezuela's im- ports in 1959 were consumer goods, by 1962 that figure had dropped to 13.7%, and each month additional imports are subjected to restrictions. For example, import licenses are denied for assembled automobiles, and the Government re- quires that each year the automobile as- semblers purchase locally components ac- counting for an additional proportion of the weight of the finished automobile. These measures are giving impetus to creation of new industries; and the for- eign manufacturer of consumer goods and light, simple machinery is more and more faced with the choice of partici- pating in manufacturing in Venezuela or of being cut out of this market. This Governmental program results in a sharp increase in the retail price of many of the locally manufactured goods. Never- theless, the country is committed to it. Furthermore, Venezuelan business gen- erally has the capital for investment in industry, and its general need from out- side is technology, not money. Any American businessman thinking of entering the Venezuelan market, either through exporting from the United States or through manufacturing in SYMBOL OF MODERN CARACAS: The twin-towered building in upper right is 'Centro Bolivar'. It provides office space for 7000 people and parks 1600 cars. It stands at the end of an expressway linking the capital city with suburban area 10 miles away. Caracas monopolizes the export-import district trade. Venezuela will wish to know something about the size of that market. Venezuela has a population of about 8.3 million to- day, but this population is increasing at a rate of 3.5% annually. Thus, the busi- nessmen will be working in a country which, while not large among the na- tions of the world, is growing rapidly. This population explosion does not create as serious problems in Venezuela as it does in many other countries, be- cause in the foreseeable future, Vene- zuela, with its large petroleum income, has good prospects of maintaining a rate of economic growth which will enable it to raise standards of living despite the population growth. Thus, the Venezuelan market is indeed an expanding one. Market varies with product When we speak of the size of the Vene- zuelan market, however, we must think in terms of effective purchasing power, and when we do this, we find ourselves dealing with figures much lower than the 8.3 million mentioned above. The actual size of the market will vary with the product, since, for example, everyone must eat something but not everyone must eat caviar. It is said that in Vene- zuela 10% of the families receive 50% of the nation's private income, the next 40% receives 40% of the private in- come, and the lowest 50% receives only 10%. These estimates may not be absolutely accurate, but they make it clear that the effective market for most manufactured goods is relatively small. On the other hand, it is obvious that there is a rapidly rising middle class in Venezuela whose purchasing power and demands are moving upward. The drive toward industrialization seems to be an important force in producing this rise in the size and purchasing power of the middle class. Thus, again, there is sound reason for a belief that the market will continue to expand at a strong rate. A total of 279,905 automobiles and 113,817 trucks were registered in Vene- zuela in 1962. In the major cities about 82% of the homes have radios. Tele- vision sets are installed in 57% of the homes in the metropolitan areas reached by television broadcasts. In thinking of the Venezuelan market for manufactured goods, whether im- ported or manufactured domestically, one must think of the cities and the im- mediately adjoining areas, for it is there that purchasing power b concentrated. The lowest wage earners tend to be in agriculture and there is a constant move- ment of agricultural workers to the cities. This concentration of purchasing power in the cities is shown striking!;, by the estimate that in 1961 Caracas alone had 19% of the country's population, and 45% of its disposable income. Venezuela's peculiar economic posi- tion makes it in many ways the most at- tractive market in Latin America. In 1962 its per capita imports were $135, the highest in the whole region. This com- pared with $63 for Argentina, $31 for Mexico, and $20 for Brazil. Another important characteristic of the Venezuelan market is its freedom from exchange controls. This is most im- portant to the U.S. exporter or investor. There is an unfortunate tendency in the United States for businessmen to lump all of the Latin American countries together and assume that because there are ram- pant inflation and severe restrictions on payments in some countries, these con- ditions prevail everywhere in the area. The U.S. businessman should be aware that there are firm areas as well as soft ones in Latin America, and that Vene- zuela in many ways is the firmest. The exporter should not give credit blindly in Venezuela, but on the other hand he should not blindly refuse it. If U.S. business will act upon the pos- sibilities which Venezuela offers for ex- porting and investment, it will increase its own profits and contribute to the eco- nomic growth of our greatest Latin Amer- ica trading partner. Government representation Venezuela maintains an Embassy in Washington, D.C. and Consulates in Baltimore, Md. (801 Keyser Bldg.); Canal Zone^(Apartado 406, Colon, Republica de Panama); Chi- cago, III. (664 First National Bank Bldg.); Houston, Tex. (405 Main St.); Miami, Fla. (904-6 Ingraham Bldg.); Mobile, Ala. (118 North Royal Mil- ner Bldg.); New Orleans, La. (1107 Queen and Crescent Bldg.); New York, N.Y. (600 Fifth Ave.); Philadelphia, Pa. (401 Liberty Trust Bldg.); Portland, Oreg. (Build- ers Exchange Bldg.); San Juan, Puerto Rico (P.O. Box 1364); San Francisco, Calif. (821 Market St.),- Savannah, Ga. (140 Bull St.). The United States maintains an Embassy with consular services in Caracas, and Consulates in Mara- caibo and Puerto la Cruz. Variety of equipment needed as heavy industry in Venezuela begins to flex its muscles Industrial centers humming, foundries mechanizing, power supply increasing, construction on the move; contact with U.S. market by sea and air is rapid By RALPH H. ROTH President, Machinery Products Corp. St. Louis, Mo. Venezuela is a stimulating country — big, confident, possessed of great natural wealth, and inhabited by a proud people with a desire to get things done. From the awakening giant represented by the newly created Guayana region in the east, bustling Caracas, Maracay, Cagua, La Victoria, and Valencia in the central area, to the black gold of Mara- caibo, Venezuela stands on the "verge of an economic boom. In the Guayana' region a complete industrial complex is in the making. The Macagua power dam is operating and the Guri power project is well on its way. Iron ore operations are a masterpiece of efficiency and good management. Steel mill operation is to play an important part in development of this area. The re- gion has a tremendous potential for the future. Supporting industries are now op- erating and others are under construction. The industrial centers Caracas, La Vic- toria, Maracay, Cagua, and Valencia in the center of the country are humming with activity. Maracaibo and the whole State of Zulia, with the advantage of a plentiful supply of natural gas, too, is advancing industrially. Oil keeps the economy primed, and the mountain of iron ore and other minerals is making its presence felt in the na- tion's business. Power dam installations will soon supply vast quantities of plenti- ful low cost electric power. Transporta- tion by water and the constantly expand- ing highway system is adequate and con- nection with the U.S. market by air and sea is rapid. Industrialization in many fields is ad- vancing at a fast pace — principally in automotive assembly, consumer goods, building materials, paper, textiles and metal fabrications. Flexes muscles In Venezuelan heavy industry, just be- ginning to flex its muscles, we find many trade possibilities. A completely new basic industry, still in the making, provides the nucleus for the many supporting industries that need equipment to roll, form, forge, shape, fabricate, and machine steel. Powerplant and transmission equip- ment, switch gear, transformers, and related miscellaneous equipment will be purchased largely from outside sources. Steel, iron, brass, and aluminum found- ries are beginning to mechanize their operations and will be a continuing source of sales for modern, mechanical equipment and supplies. Good quality coke, sands, and compounds are in great demand and all are imported. Forging equipment for agricultural im- plements, automotive parts, oil industry equipment, pipe fittings, flanges, and re- pair parts has a big sales potential and will grow as industry expands. In the oil industry locations, a number of machine shops have been set up to provide maintenance service. These shops are growing in size and are adding ca- pacity and heavier machine tools. Sugar mill replacement parts are being produced and recently one established firm expanded its plant facilities to pro- duce rolls, journals, and journal boxes. This operation requires heavy equipment for manufacturing as well as heavy struc- tural and hoisting equipment. Production of steel plate, sheet, coil stocks, and shapes is contemplated in the near future. Equipment for such opera- tions is being priced and orders should be placed as the industrial pace quickens. Truck body plants are expanding in size and scope of operations. Trailers and vans of all types are being produced and as practically all transportation is by trucks over a good net of highways, the need is increasing for larger fleets. Fabri- cation equipment of all types will find a reaily market. The construction industry is again on the move and will need replacement equipment and maintenance parts. Shops to service such equipment are small and not too well equipped. Expansion of fa- cilities will provide another market for machine tools and related accessories. Industrial expansion and the related requirements for factory building presents a favorable market for ventilation and industrial air conditioners, cooling towers, radiators, heat exchangers, and other in- dustrial items. Material handling equipment is now in great demand. Simple conveyors are be- ing produced by a number of small manu- facturers but there are many fields of sales in the heavier and more sophisti- cated lines. Marine equipment will be needed for many uses. Barges, lighters, tugs, fishing and work boats, and all related marine and maintenance equipment present a good and expanding market. Basic machine tools of all types are ' being sold in a staggering volume. The bulk of this trade is now European. Our personal observation is that a much larger percentage of sales could be made by U.S. manufacturers if their proposals emphasized the superior quality of U.S. equipment. Much European equipment, especially in machine tools, is of lighter construction than that normally purchased by the U.S. buyer. To compete in this market, U.S. manufacturers can olTer machine tools similar to those purchased by the small contract shops in the United States. Joint venture, licensing There are many fertile fields for joint venture and licensing in machinery. The U.S. trade mark is highly respected as a standard of quality, a prestige item for the local manufacturer, and a successful sales factor. Interviews with many businessmen in Venezuela aroused their immediate inter- est in the proposals tendered by the mis- sion from U.S. manufacturers seeking joint ventures and licensing. A goodly number of requests in other fields for joint ventures and licensing leads one to consider the possibilities in heavy industry. At present, U.S. heavy industry is not established in Venezuela except in oil and iron ore operations. Mission observations indicate that the timing is right to explore business possi- bilities in Venezuela. A promising field is that of basic, simple, and fundamental machine tools such as metalworking equipment, presses, shares, press brakes, and related metal forming and welding equipment. Opportunities seem to exist for manufacture of simple machine tools, for Venezuela has few such manufac- turers. In visits to machine tool supply houses in Caracas, the mission found some U.S. tools and many European tools on dis- play. One supplier reported selling 200 engines of Western German origin in 1963. Another dealer reported substantial sales in overhead crane and hoist assem- blies, also of German origin. The crane Venezuelan imports: Supplier patterns shift 1948 1954 1957 1960 1962 Total imports, in $ millions 839 917 1,833 1,066 984 Country of origin: Percent of total United States 77.9 61 .6 63.5 51 .7 52.5 United Kingdom 6.5 7.8 6.4 6.0 6.1 Canada 2.0 4.0 2.4 3.7 4.5 Germany, Fed. Republic 0.3 6.8 9.4 8.8 8.7 Italy 1.6 2.5 4.4 6.3 5.3 France 1.0 3.5 2.7 2.3 3.0 Belgium-Luxembourg 0.9 1.7 1.9 2.9 2.5 Netherlands 0.7 2.2 1 .8 2.5 2.3 Japan neg. 1.3 1 .6 3.6 4.1 Other countries 9.1 8.6 5.9 12.2 11.0 Source: Direccion General de Estadistica y Censos Nacionales, Estadistica Mercantil y Maritima, 1947-55, Direccion General de Estadistica, Boletin Mensual de Estadistica, 1956 58, and Boletin de Comercio Exterior, 1959-62. manufacturer in dcrnian) has prepared a "Building Block" program of standard assemblies alorjg with engineered plans for construction of overhead, gantr>. gib, and wall mounted cranes. Structural as- semblies are built locally or on site from the plans and then assembled with the selected components. I his is one of the finest do-it-yourself industrial kits ever seen by this observer. A line of manually operated metal shears partially built in neighboring Co- lombia and assembled and completed by the supply house in Caracas also were seen. U.S. manufacturers of machine tools can adopt similar joint programs, and carry through ultimately into full scale manufacturing operations in Venezuela In joint venture operations, foundry, forging (pipe flange and fittings), mate- rial handling, mining, and powerplant equipment were discussed by business- men already established in their respec- tive fields of endeavor but who are look- ing toward the United States for that well known trademark and who arc reads . willing, and eager to join hands in gain- ing this competitive advantage over the European suppliers. Direct sales, joint venture, licensing — all are here and waiting for action b\ Mr. U.S. Manufacturer. Sales pointers One month in Venezuela does not make a mission member an expert in the field of sales, but it does give him a chance to receive many helpful sugges- tions from successful and respected indi- viduals and firms with long careers in Venezuela. Sales policy must be at the highest level of integrity and must engender respect. Hit and run tactics will not do. Sales engineers well trained and respected as experts can do a good job. Venezuela's industry has many capable engineers. Sales personnel of equal train- ing will be warmly received and listened to. but Venezuela is trying to get there over night so promptness in response to quotations, proposals, and inquiry should be a cardinal rule for anyone seeking to do business there. Availability of spare parts is a big factor favoring selection of U.S. equip- ment over European equipment. The United States is just a few hours awaij by air but the mission heard complaints that in many instances it is still possible to get spares from European sources in less time than some U.S. firms take to acknowledge the order. Generally, however, businessmen were complimentary in their remarks about U.S. manufacturers who are doing busi- ness in this market and who have estab- lished parts and supply warehouses in our Southern ports for fast and, in some instances, over night emergency service. Service can be a strong selling point and if the sales engineer can also double as a service man, he can attain favorable and continuing results. To do a good job in this markeit and to insure continuing success, transactions should be handled in Spanish. Catalogs, brochures, price lists, spare parts, and in- struction manuals should be prepared in Spanish. The European supplier has done a good job in Venezuela by recognizing indus- try's basic needs, has also priced his products attractively, and aided his sales with liberal credit terms. Observations indicate that the U.S. supplier also can do a good job if he will take time to ac- quaint himself with the U.S. Government- organized credit and risk insurance pro- grams and use these programs in selling to this market. Used equipment To round out these personal observa- tions, another point should be mentioned: This is not a used machinery market. Only one request was made for a used machine tool during the many interviews and plant visits. There is a market, however, for com- plete plants of used equipment, including tooling for manufacture of a product. A number of requests were received, espe- cially those dealing with joint ventures and licensing, for contacts with U.S. manufacturers who have used product lines and manufacturing equipment — in- cluding tooling — available for transfer to Venezuela. This would generally involve installations for relatively small volume production. Such equipment should be reconditioned and ready to roll, and tool- ing should be in first class condition. In tooling, Venezuela has a weak link: Facilities for making toolings are ex- tremely limited, offering a big field for the "tool engineer." Contract tool shops, pattern shops, heat treat facilities and other related fields provide a good sales market for equipment and services. Mission opinion is that Venezuela is on the way. U.S. business can participate in this market. SOUTH AMERICA'S FINEST HARBOR: La Guaira, reported to be one of the finest artificial harbors on South American continent, is 7 miles north of Caracas, and a major port for exports and imports. Changing import patterns in Venezuela spark strong capital goods market European machinery manufacturers offer competition; although U.S. share has dropped, suppliers are in strong position By JOHN J. DEMPSEY President, Armor Products, Inc. New York, N.Y. The foundation of a new industrial na- tion is being laid in Venezuela. Within a basically sound economy, supported by petroleum and iron ore exports, a spirit of progress is everywhere evident. Pur- chasing power has increased, confidence has been restored, and Venezuela, whose total trade with the United States is greater than that of any other country in Latin America, is entering a new era. The rapid increase in manufacturing in the country means that Venezuela now makes many products it formerly im- ported. This trend appears certain to con- tinue. The program of industrialization is being carried forward in the favorable climate of business confidence, recent political stability, and large foreign ex- change earnings, and under the forced draft of restrictions on imports of con- sumer goods and light manufactures. It is also promoted by direct Government assistance to many new industries. The massive effect of this drive toward industrialization on Venezuela's import pattern is shown in the accompanying table of imports in 1961, and 1962, and projected through 1966. While total im- ports are projected as generally increas- ing over this period, the increase will be heavy in capital goods. On the other hand, imports of agricultural products and "other manufactured goods" will fall sharply. The composition of Venezuelan im- ports in 1962, as published by the Vene- zuelan Direccion General de Estadistica in its Boletin del Comercio Exterior in December 1962, was (in % of total): Raw materials, 31.4; machinery and Venezuela plans steady growth in capital goods imports Actual Projected 1961 1968 1963 1964 1965 1966 Total imports, in $ millions' 1138 1117 1251 1363 1358 1281 Import categories: Agricultural products. . 62 56 43 41 39 39 Capital goods 165 239 362 482 520 531 Other manufactured goods 796 71 1 721 704 665 582 Other products 115 111 125 136 134 129 Percent of total imports Agricultural products 5.5 5.0 3.4 3.0 2.9 3.1 Capital goods 14.5 21.4 29.0 35.4 38.2 41.5 Other manufactured goods. 70.0 63.6 57.6 51.6 48.9 45.4 Other products 10.0 10.0 10.0 10.0 10.0 10.0 Average annual change 1963-66 + 3.5 - 8.6 + 22.1 - 4.9 + 3.5 3.1 36.1 50.8 10.0 1 Converted to dollars from 1960 bolivares at the rate of $0.2985 per bolivar. Source: Oficina Central de Coordinacion y Planificacion, Plan de La Nacion, 1963-66, Caracas, May 1963. tailed information about individual firms, their organization, representations, and reputation. It offers other special serv- ices. Depends on sales effort As in the United States, however, the seller's success will depend on the effort he puts into the sale. Venezuela offers an attractive market and good economic climate in which to operate, but products still must be sold there. There is a strong tendency not only to manufacture as many products as pos- sible in Venezuela, but also to purchase imported products from local sources rather than direct from the foreign sup- plier. Development of a distributor in Venezuela requires understanding and co- operation by the U.S. exporter with his representative in Venezuela. Capital goods are sold in Venezuela by the distributor on long terms and the distributor needs terms from the U.S. supplier. Also, if a distributor carries stocks of spare parts and other products, he needs terms to help him finance his inventory. Many U.S. exporters miss sales in Venezuela because they are un- willing to grant terms local conditions would seem to justify. accessories, 20.5; transportation equip- ment, 11.9; construction machinery, 5.7; foodstuffs, 7.7; beverages, 0.4; consumer luxury goods, 6; and consumer nonlux- ury goods, 16.4. The United States retains a strong posi- tion in the Venezuelan market, with our products accounting for 52.6% of Vene- zuela's imports in 1962. The U.S. share of this market is dropping, in fact has declined from 68.1% in 1950. West Ger- many and Japan have made the principal gains among our competitors, although most of the major trading countries, with the exception of the United Kingdom, in- creased their share in the Venezuelan market over this 12-year period. Our competitors were particularly successful in increasing their sales of machinery and transportation equipment. Built-in position The United States has a built-in posi- tion of strength in the machinery field in Venezuela, as U.S. private investment there amounts to $3.5 billion. Thus, a large group of companies is predisposed toward the United States as a source of supply. Our position is also greatly strengthened by the high reputation of U.S. machinery and by our years as the largest supplier of the Venezuelan mar- ket. On the other hand, many Venezuelan firms have long-established preferences for European machinery. This prefer- ence is strengthened by the many Euro- pean technicians and businessmen who have made Venezuela their home and who determine their companys' buying practices. Study the market Selling in Venezuela begins in the United States with a study of the Vene- zuelan market. If a study of the market shows sufficient potential for a U.S. prod- uct, the exporter should begin his sales efforts by sending to Venezuela a person with authority, fully familiar with the product. Knowledge of Spanish is valu- able but knowledge of the product or operation is more important. Such a visit may be for the direct sale of a large item. or it may have as its purpose appoint- ment of either an agent to sell to many dealers or a large distributor to act on an exclusive basis. The exporter must be prepared to support the local sales office with advertising, sales promotional ma- terial, and samples, if practical. The Department of Commerce offers, at low cost, Trade Lists showing prin- cipal importers, exporters, and manufac- turers in all important lines, and World Trade Directory reports which give de- Advice for newcomer Doing business in Venezuela is nec- essarily different from in the United States and the foreign businessman must be aware of local rules and practices, but experienced men find fewer difficulties there than in many other countries over- seas. Any serious attempt by a U.S. manufac- turer or exporter to enter the Venezuelan market requires understanding of certain basic procedures. These are well known to the U.S. firms established in the Vene- zuelan market. The following bits of ad- vice should be of benefit to the newcomer to the Venezuelan market: ► Advertising, technical manuals, and correspondence should be in Spanish. ► Correspondence should be answered promptly and acknowledgement of orders should give an estimated shipping date. ► Terms of payment should be clear and mutually agreed upon. Time of pay- ment should take into consideration the nature of the product. If the product is capital equipment or is for the inventory of a distributor, the terms should be longer than for products that are to be sold quickly. The U.S. manufacturer should inform himself carefully on the assistance rendered by the U.S. Govern- ment when longer terms and credit in- surance are necessary. MARACAY INDUSTRY: General view of new factory area in Venezuela; textile and lady's fashion plants in background, warehouses in foreground. ► Size and character of the order should be reviewed and if the order is too large or if the specifications or pat- terns are not practical the customer should be advised. ► Packing should be adequate — heavy enough for protection but light enough for economy. Bulky packing should be avoided where practical, since most Venezuelan duties are computed on gross weight. ► Required documents should receive careful attention and a freight forwarder should be used if the manufacturer does not have adequate experience in export- ing to Venezuela. The question of the designation of the consignee is important, since under Venezuelan law, the con- signee can withdraw goods from Cus- toms without presentation of documents. ► Exporters should bear in mind that the metric system is standard in Vene- zuela. ► Electric current is 50 cycles in the Caracas area and 60 elsewhere. A serious shortage of houses for workers exists in Venezuela, but most building materials are manufactured lo- cally. Cement is available locally in large quantities; steel is available and metal windows and doors also are manufac- tured domestically. Virtually the only products for this use that can be imported are locks and hinges. Burgeoning growth, import curbs spur Venezuela's light industries U.S. machinery well regarded by Venezuelan businessmen; Mission told of sloppy business practices by some U.S. firms By FRED D. WRIGHT President, Fred D. Wright Company Nashville, Tennessee As the U.S. businessman travels through Venezuela, he sees and hears a nation rapidly developing industrially: in the frontier area of Santo Tome de Guayana, with its great resources of iron ore, its steel mill and its tremen- dous hydro-electric potential; in Cara- cas, the center of Governmental and business activity; in the rapidly grow- ing manufacturing area of the Central Zone; and in oil-rich Maracaibo. This expansion offers attractive market possibilities to the U.S. businessman, es- pecially in the light metalworking sector where demand for modern production and assembly machinery and equipment is particularly strong. It has also created growing demands for modern machine tools in the medium-size and price range to equip the many small support and service industries which are springing up everywhere. Local governments, working closely with the Chambers of Commerce and other industrial associations, have en- couraged this industrialization by es- tablishing industrial zones with well equipped utilities to attract new indus- tries in their areas. They have also granted tax advantages to new indus- tries. Government policy The continued Venezuelan Govern- ment policy of reducing the number of items which can be imported has been the driving force behind this develop- ment in the metalworking industry. Dras- 10 Market profile-Venezuela Area: 352,141 square miles, about one and one-third the size of Texas. Population: 8.3 million. Growth rate of 3.5% a year is one of the highest in the world. Principal cities: Caracas, 1.1 million, or 15% of total population in metropoli- tan area; Maracaibo, 421,166; Barquisimeto, 199,691; Valencia, 163,601. Currency: Bolivar (1 bolivar about US$0.22). Gross national product: $78.8 billion in 1963; growing at annual rate of about 5%. Petroleum accounts for about 30%; iron ore and other mining, 1.3%; agriculture, 6.9%; manufacturing, 11.2%; commerce, 14.5%; services, 15.6%; and other, 20.5%. Per capita income: About $580 annually in U.S. purchasing power; highest per capita income in Latin America, but unevenly distributed. Electricity production: 4.9 billion kilowatt-hours. Installed capacity 1.6 million kilowatts. Principal manufacturing industries: Food processing, beverages, petroleum refining, textiles, chemicals, and metal fabricating. Mining: Petroleum accounts for about 30% of GNP, about 55% of Government revenues, and 93% of foreign exchange earnings. Iron ore, diamonds, gold, asbestos, coal, and salt mined on commercial scale. Foreign trade (1962): Total exports, $2.6 billion; total imports, $1 billion. Ranked 10th in world, 2d in Latin America as market for U.S. products. Principal exports, 1962: Petroleum and derivatives, 92.7% of all export earn- ings; iron ore, 4.7%; coffee 0.7%; cacao, 0.4%. Principal imports, 1962: Machinery and material for transport, 35.0% of all imports; manufactured goods, 34.5%; foodstuffs, 11.5%; chemical prod- ucts, 11.2%; raw materials, except combustible 4.0%; other, 3.8%. Official gold and foreign exchange reserves, February 1964: $725 million. U.S. private direct investment: Estimated at about $2.8 billion, of which about 80% is in petroleum. Exceeded only by U.S. investments in Canada and United Kingdom. tically reduced imports of consumer goods such as automobiles, refrigerators, gas ranges, and other household appli- ances, are opening the way for the estab- lishment of numerous new industries. A recent survey of Venezuela's indus- trial potential lists the following new items which the light metalworking in- dustry might produce in Venezuela: high- way signs; truck, bus, and trailer bodies; insect screen and other screening; picnic chests; picnic stoves; marine hardware; fasteners; office accessories; oil cans; labels; spun kitchen utensils; cast kitchen utensils; food grinders; and powered hand tools. This list by no means exhausts the industrial possibilities of Venezuela nor does it include the equally attractive area of goods already produced in the coun- try on too small a scale to meet the demands of the market. Automobile production is having a far-reaching effect on the metal indus- try of the country. One large assembler in Venezuela is turning out approximately 60 to 70 units per day, made up of some 10 different automobiles or trucks whose primary parts are manufactured in the U.S., Canada, the United Kingdom, and West Germany. This is certainly a wide variety of vehicles to produce economi- cally, but it reflects what can be done when competition from foreign imports is eliminated. Certain other automobile assemblers turn out less than a half dozen cars each day. Automobile assemblers are required to use more domestically produced com- ponents each year, and are encouraged to purchase them from other Venezuelan manufacturers rather than produce them themselves. This has spurred all auto- mobile assembly plants to seek new sources of supply in Venezuela and even to encourage small repair shops to go into small scale production of automo- tive parts. They even lend technical as- sistance to the manufacturers until they have mastered the problems of meeting exacting standards. In the area of stampings and ma- chined parts for the manufacture of automobile components, there is oppor- tunity for the export of U.S. equipment and machine tools in the medium price range. There are many U.S. machines which are suitable for low quantity pro- duction and at the same time will give the required accuracy. I here is a great need tor well equipped machine shops in Venezuela. Additional machine shops are badly needed for re- pairs and for small lot production and maintenance. Many large operations are maintaining expensively equipped shops for their own use because there are no local machine shops working on a job basis. Furthermore, those job shops now in operation generally need much more and better equipment than they now have. While there are some tool and die plants in Caracas, there is business for many more. Mission members visited plants which had not only been equipped with production presses from the U.S. but had imported them with complete tooling for specific products. The U.S. businessman can fit into this picture of industrialization in two basic ways. He can sell machinery needed for the country's new and growing manu- facturing plants, and he can attempt to have his product manufactured in Vene- zuela. For the more advanced machinery, he would have to continue exporting his product; for the simpler he would prob- ably have to arrange for local manufac- ture. In the in-between areas he will have to make his decisions after careful study of each industry and product. Selling light machinery The U.S. machinery exporter can en- ter the Venezuelan market with a strong initial advantage, since Venezuelan busi- nessmen tend to regard American ma- chinery highly. The petroleum industry has depended largely on U.S. equipment for its shops and field operations, and this has contributed greatly to the repu- tation of U.S. machinery in Venezuela. For quality, there seems to be accep- tance of U.S. machinery as the standard of the world, and Venezuelans generally know and want quality. The major machinery market in Vene- zuela is with the small manufacturing companies already established or pro- jected for the future, whose need is for equipment of medium range, size, and price. The need for this type of equip- ment results from the size of the market. In general Venezuela is a market for less expensive and lower rate of produc- tion equipment, but there is also a justi- fication in some areas for the highly sophisticated production machinery and equipment which the U.S. has supplied for many years. In many industries such as oil production, tobacco, textile and food processing, there are requirements for highly automated machinery and equipment. Many Western European countries are successfully selling this type of equipment. 11 NEW EXPRESSWAY: Running from Maracay to Valencia, this newly completed highway links Iwo of the state capitals in the northern region. ■'" ££: r ■ i " Despite their initial advantage, the U.S. machinery exporters are facing rougher competition from Europe. First, there is the question of purchase price. European equipment is generally priced lower than U.S. equipment. Some U.S. exporters are overcoming this disad- vantage by basing their sales efforts upon the quality and lower operating costs of U.S. equipment. Unfortunately, in many cases the U.S. exporter quotes his price but does not make a proper effort to explain his product's quality. Mission members also received com- plaints that some U.S. firms seem com- pletely indifferent to export sales. Vene- zuelans frequently spoke of the difficulty of working with English language cata- logs and service manuals sent by U.S. manufacturers. Also U.S. firms some- times do not answer letters written to them by local firms. Of course, Vene- zuelan managers had high praise for the attentiveness of many other U.S. ex- porters, but the Mission heard a suffi- cient number of complaints to make it clear that some of our manufacturers were at best halfhearted in their pursuit of Venezuelan business. Won't give credit Another complaint which Venezuelan businessmen frequently voiced was the unwillingness of many U.S. firms to ex- tend credit in any form. Apparently many firms insist on letters of credit regardless of the soundness of the Venezuelan pur- chaser. Instances were reported of Vene- zuelan firms willing to pay 30% to 40% more for U.S. equipment than for Euro- pean if sold on some form of credit. When the U.S. firm decides that it should have its product manufactured in Venezuela, it must decide whether to es- tablish a fully-owned subsidiary, enter into a joint venture or license a local manufacturer. The first of these courses is widely used although some U.S. firms find it desirable to have partners familiar with the local scene or to grant simple licenses. Should the U.S. firm decide to enter a joint venture or licensing arrangement, there are 4 groups of prospective entries into the growing manufacturing area with which U.S. firms might establish rela- tions. First, there is the already established manufacturing firm, which wishes to ex- 12 pand its line of products, either through the addition of more products in their present fields or through entry into com- pletely new lines of products. Many of these desire only technical assistance from U.S. firms. These would be recep- tive to licensing arrangements requir- ing the U.S. firms to furnish the techni- cal know-how, the processes, and the American brand name. For this group there would most generally be an agreed royalty payment. Second, there is the small shop which has been established as a service indus- try; for example, the repair of radiators. It is a natural development from repair of radiators to their manufacture. This would take place in gradual steps. Mis- sion members observed many examples of this type of business evolution. Sometimes an operation was begun as a joint venture between a small service industry and a U.S. manufacturer, with the Venezuelan company assembling parts shipped from the U.S. firm. As the proficiency of the Venezuelan firm in- creased and as impediments were im- posed on imports of components, the less complicated parts would be manufac- tured locally. This process of eliminating foreign-made parts and substituting lo- cally-made parts would continue until the item was wholly made in Venezuela. Third, there are many distributors who have represented U.S. firms in Venezuela for many years. Now, as a result of im- port restrictions, they are faced with the loss of their source of supply. There- fore, many desire to establish manufac- turing plants under license or in joint ventures for the production of the brands which they have already imported, ad- vertised, and built up customer accep- tance. Many of these firms are quite capable in financing and distribution, but would require technical know-how for the production of consumer and indus- trial products. Fourth, there are many persons who want to get into some type of manufac- turing. While lacking in any know-how, they have the financial ability and have been attracted to the industrial scene by the opportunities being created at this time. The U.S. firm looking for a Vene- zuelan partner or licensee should not refuse to consider relations with these individuals merely because they lack manufacturing experience. Whatever the decision as to sale or local manufacture, the U.S. firm will find possibilities in Venezuela. Venezuelan drive for industrial self-sufficiency creates varied openings for U.S. investments Only Canada, U.K. have attracted more U.S. venture capital; imports of "priority" capital goods should step up By THOMAS T. MURPHY Dean, School of Business Administration Notre Dame University Venezuela beckons foreign capital to participate in its industrial development. Traditionally dependent upon foreign sources for its manufactured goods, since 1959 Venezuela has been embarked upon a plan for industrialization designed to make the Venezuelan state virtually self- sufficient in those manufacturing areas for which raw material^ are domestically available, or can be easily imported. This opens up numerous joint ven- ture and licensing possibilities to the U.S. businessman. Except for Canada and the U.K. more U.S. venture capital has migrated to Venezuela than to any other country. Over 30% of all U.S. direct investment in Latin America has gone to Venezuela. While Venezuela has a population of only 8,250,000, the rapid growth of its economy, its rich natural reserves of petroleum, iron ore, and other minerals, and high per capita income create wide investment possibilities. Direct U.S. in- vestments in Venezuela (96% ) far ex- ceed security investments (4%) and are likely to continue in this proportion. Pro- tection of their Venezuelan markets by U.S. firms, in light of changing Venezue- lan Government policies, has led to in- creased interest by both large and small U.S. corporations in Venezuelan invest- ments. There is reason to believe that the opportunities for U.S. export of all kinds of machinery to Venezuela will grow. The Venezuelan Government is assign- ing high priority to purchases of ma- chinery and raw materials from abroad. A "prior import license" is now re- quired for a fast-expanding list of goods not considered contributory to Vene- zuela's balanced economic development and import statistics show clearly the changing pattern of goods bought by Venezuelans in world markets. Priorities for desired capital goods will accentuate machinery and raw material imports and decrease the importation of luxury goods. Prior import licenses are required for a long list of goods including passenger cars, television sets weighing over 50 kilograms, radios weighing over 10 kilo- grams, fiber board, spark plugs, sewing machines with wooden cabinets, and re- frigerators. Where a domestic industry is not in a position to supply all the demand, the Ministries may issue import licenses to fill the gap. Requests for licenses are not likely to be approved when domestic industry is capable of meeting demand. Obviously, the changes in composition of allowed imports will affect the deci- sions of Venezuelan businessmen and their foreign counterparts whether to make or to buy. Faced with a choice of losing a market or manufacturing products in Venezuela, the U.S. business- man will probably seek the investment or licensing route. With repatriation of profits and investment reasonably as- sured, together with a favorable profit possibility, the choice is often an easy one for the U.S. businessman. Encourages production The Venezuelan Government is strongly encouraging the national manu- facture of goods of all kinds. Numerous U.S. companies have already entered agreements whereby goods, under U.S. trade names, are wholly or partially as- sembled or produced on Venezuelan soil with the nearly exclusive use of Vene- zuelan labor. Present law requires that 75% of the work force be Venezuelan. It is impossible to summarize licensing procedures, as they differ widely among corporations. U.S. manufacturers must analyze the "Four Year Plan" for clues as to ihc Government's attitude lOWW I import versus home manufacture I he contemplated growth rate in the manufacturing area is 13.5% as com- pared with a projected annual growth rate of 8% for the gross domestic prod- uct (GDP ) I he incentive for manufac- turing to grow more than 5098 Lister than the GDP is furnished in a number of ways. Prominent among these, we find capital and technical assistance by Corporacion Venezolana de Fomcnto (CVF) and the various types of adminis- trative import restriction. Governmental attitudes sine the aJ- vent of the development plan indicate that the manufacture of almost any product for which the principal raw materials are available in Venezuela is likely to be en- couraged by some form of Governmental action. Protection will be afforded the developing industry to the ultimate near- exclusion of competition from abroad. Skilled labor shortage The decision to enter a joint venture or licensing agreement, or a combina- tion of the two, must be recognized as complex. Not least among the complexi- ties is the labor factor. The U.S. business- man is cautioned to look carefully into labor rates, social costs (fringe benefits), productivity levels, and training costs. He should be aware of the shortage of skilled labor in Venezuela. The potential investor is also cau- tioned to assess objectively the income projections of his Venezuelan partner and to look carefully into capital sources to meet his venture's needs. By U.S. standards, working capital loans come high in Venezuela. With fees, high qual- ity loans range from 9-11%. Interme- diate loans are difficult to obtain: short term with continued extensions are com- mon in financing intermedite capital needs. Despite some major differences in business methods, profit potentials, again by U.S. standards, may be high. Such profits must be measured against loss of exports to Venezuela, as well as against the problems of operation far from the firm's U.S. headquarters. Some capital is available in Venezuela at lower rates than those mentioned above. CVF makes loans, guarantees, and equity capital available to both Vene- zuelan firms and joint ventures, although it expects joint ventures to be at least 51% Venezuelan to qualify for loans or guarantees. C. A. Venezolana de Desar- rollo is a new corporation for capital as- sistance to private industrial interprises. It underwrites security issues to mobilize private funds for investment. There is also Creole Investment Corporation 13 MARACAIBO LAKE OIL WELLS: 75 miles wide and 100 miles long, this mountain-ringed lake is in the center of one of the world's richest oil fields. which provides minority equity financing to private enterprises. Joint venture opportunities abound in Venezuela as in other fast developing nations. Venezuelan Governmental plan- ning for a more balanced future eco- nomic growth, with a much lower share of the national product furnished by petroleum, makes consideration of both licensing and joint venture opportunities in Venezuela doubly important. Businessmen should acquaint them- selves with AID investment guarantees against losses from inconvertibility, ex- propriation and war risks. Over 300 U.S. corporations are al- ready established in all types of activities in Venezuela and the number is grow- ing fast. The 4-year plan includes re- newed interest in foreign private capital. Venezuelan law does not afford the degree of protection to minority stock- holders that business has come to expect in the U.S. Prior to any venture which involves less than a 50% U.S. interest, the U.S. businessman should have his attorneys provide protective devices in the contract. Because of the concentration of its product line, the small business can often test its potential markets overseas rather quickly, accurately and inexpensively. Compactness of the enterprise com- bined with relatively small overhead, can mean a business volume for the small business that would not be attractive to the larger business. Venezuela is a small country (population around 8.25 mil- lion) with an effective market of less than half that figure, and the market potential may be better adapted to the thinking of the small U.S. enterprise. Venezuelan manufacturers in many industrial and commercial lines are re- ported frequently to recover their capital investment in a matter of 2 to 4 years. The opportunity for market expansion is highly favorable due to the country's in- dustrialization. Venezuela offers a sound opportunity for the small as well as the large U.S. company. Licensing Licensing does not tie up capital, and it transfers to the foreign base such oper- ating problems as credit management, working capital management, and sales and distribution control. It does not, how- ever, give the U.S. firm the long-term position or the participation in profits to be derived from capital investment. Licensing agreements need not be tied to joint ventures. Many times it is de- sirable to employ a licensee with ex- tensive sales experience in the manufac- turer's product line. This might involve assignment of venture capital to assure the success of the new operation. The U.S. manufacturer must also be prepared to assign technical assistance in plant construction and operation, and to retain technical assistants in the Vene- zuelan operation at least until the plant is fully operational. Due to the lack of a skilled labor mar- ket, the operational phase must incor- porate extensive worker training. This is typical in all developing countries. De- spite the high national unemployment figures (in excess of 13%), it must not be assumed that skilled personnel are available. There is likely to be more interest in straight licensing in Venezuela than in most other Latin American countries, because relatively speaking, capital is more readily available in Venezuela than in other countries in the area. Mission members were impressed by the number of Venezuelan businessmen who ex- pressed a need for technological assist- ance but who had the capital needed for their projects. Industrial zones The development of industrial zones is proving a popular and valuable way to attract industry. The most successful so far is Valencia's industrial complex, which has attracted over 25 major com- panies including various U.S. firms. The attractions include good facilities (elec- tricity, gas, streets, water, drainage), ade- quate if untrained workers, and local tax advantages. Maracaibo, Puerto Or- daz, Maracay, Cagua, have more re- cently established industrial zones and are vying with Valencia to attract new ventures. Foreign production by U.S. companies is often limited to the largest corpora- 14 tions. This should not necessarily he true in Venezuela in 1964. The existence in a U.S. firm of an organized export de- partment with trained personnel and hroad experience of many years admit- tedly can facilitate its establishment of foreign operations. However, the same combination of business factors deter- mines 'success in all sizes of business enterprises: labor, land and capital, and management skills. Actually, the smaller U.S. firm ma*y be better able to think in terms of operations in the relatively small Venezuelan market. The market in Venezuela is relatively small when one considers income distribu- tion in the present stage of economic development. It is estimated that 70% of the total families have incomes of less than $1,760 per year and 10% of the families have incomes of over $3,300 per year. The development of industry, however, is rapidly changing income distribution. This market potential means that new industrial opportunities are most likely to bz found in products that can be made efficiently in relatively small factories. Possibilities include food processing and packaging, appliances, parts manufac- turing for various kinds of machinery, hardware items, small tools or hand too's, simple agricultural implements, and small electrical items. Very large production is not possible in most lines in Venezuela, but the quest for broad industrialization can be de- pended upon to provide governmental protection of production for Venezuelan consumption. Cost factors would forbid the location of plants which would de- pend upon export possibility in Vene- zuela. Commercial banking facilities are numerous in the leading cities. Both domestic and foreign banks have offices and are prepared to provide short-term financing. Rates, by U.S. standards, are very high although relatively low in com- parison to some other Latin American countries. There is little development of a financial intermediary system in the country, although it is beginning in some sectors of the economy. Communications Both telephone and telegraph commu- nications are generally poor and cable and radio are employed in overseas communi- cations. The domestic telephone system is poor and unreliable to the point of frustration. Most businesses with coun- try-wide operations depend on their own OIL FIELD WORKERS' HOME: An oil lank farm, in Maracaibo oil fields, it ringed by homes of oil company workers who live and buy in the most modern sense, providing a market for U.S. goods. expensive radio equipment to communi- cate effectively. A good road system con- nects principal cities but there is no railroad network in the country. Domestic mail service is slow, but international service is good. Consumer services are undeveloped in many areas. Drycleaning establishments are non-existent outside of large popu- lation centers and are scarce even in cities other than Caracas. Laundry coin- operated facilities are beginning to appear. There are thousands of small shops and relatively few supermarket and large department store operations and there is a chain of Government owned first class hotels along with some other excellent hotels. Some cities have very poor hotel facilities. For example, Valencia, a city of 165,000 has no first-class hotel, where- as Maracay, a city of 135,000 has a luxurious hotel with over 150 rooms. There are no U.S. type motels in the country, although virtually all surface travel is by road. Commercially, oppor- tunities abound in Venezuela for venture capital investments in a number of areas. Education for business, as organized in the U.S., is virtually non-existent. Busi- ness training is generally done in the enterprise, although all universities offer degrees in economics and in some busi- ness subjects. However, education for management does not exist at the post- graduate level. Formal training in busi- ness management needs much further development. Pertinent points for U.S. businessmen interested in Venezuelan investments to remember: ▲ Business opportunities are open to small and medium-sized as well as large U.S. companies. A Joint ventures are available in many fields with good opportunities for long- term, profitable operations. A Licensing should be considered by U.S. business interests that do not wish to tie up capital abroad. A Labor costs are high in relation to other developing countries and are high in relation to U.S. when productivity is included. A Interest rates are high and terms are short compared with the U.S. A There is a shortage of skilled labor in the country and worker training at all levels is required. A Venezuelan efforts to promote do- mestic production will cause U.S. export- ers to lose markets they have developed in Venezuela. U.S. businessmen must watch these trends and be prepared to adjust quickly to them. A Future imports will remain closely controlled and. in all probability, the im- port of raw materials and capital goods will increase while luxury imports will decline. A There are no indications that re- strictions will be imposed on profit and capital repatriation. A The rate of exchange should remain relatively stable. ' • ice the U.S. businessman decides lo invest in Venezuela, he should avail himself of the services and ad\ ice of the Bureau of International Commerce of the U.S. Department of Commerce, cither in Washington or in one of the Depart- ment's field offices. 15 Venezuelans buy less prepared food from abroad; U.S. equipment could aid in processing domestic products Many firms seek joint venture, licensing tieups with U.S.; several industries could also use refrigeration equipment By FLOYD B. CASE President, Haley's Foods, Inc. Portland, Oregon Under the squeeze of import restric- tions, the formerly excellent Venezuelan market for U.S. prepared food products is fast drying up. The Venezuelan Gov- ernment is closing Venezuela's doors to prepared foods, is more and more limit- ing imports to unprocessed raw materials, and is encouraging the greater use of domestically grown food-stuffs. The U.S. cannot expect to continue selling Venezuela large quantities of pre- pared food products on a regular basis, so the nature of our exports will change to semi-finished and bulk commodities. At the same time, the market for U.S. food processing machinery should greatly expand, as should the possibilities for U.S. licensing and investment in Vene- zuelan food preparation. U.S. items now being sold in Vene- zuela can be produced locally under joint- venture or licensing arrangements when their names command prestige. The lim- ited size of the Venezuelan market and the over-capacities now existing in certain food lines, have caused Venezuelan pack- ers to start looking for opportunities to diversify or to manufacture under pri- vate label. There is also a possibility for the sale of much U.S. refrigeration equipment in Venezuela. The need for this is being recognized by meat slaughterers and dis- tributors, fishing boat operators and packers, and super-market operators. In the long run most of this equipment will be manufactured in Venezuela, but U.S. business should be alert to the pos- sibility of participating in this manufac- ture. There is also a market here for U.S. cattle-breeding stock. By 1962, Venezuela's domestic econ- omy was supplying 62% of the total consumption of goods. About 92% of the total consumption of meat, 51% of the fish, 38% of the milk, cheese and eggs, 97% of the fats and oils, and 97% of the sugar and confectionery products are supplied by local industry. Nearly half of the writer's business interviews in Venezuela were with local interests seeking U.S. partners in joint ventures. These included slaughter houses, meat processing and canning, fish and shrimp canning and freezing and vegetable and fruit dehydrating. There was also much interest in food distri- bution. The need for technical assistance rather than capital was the basic reason for most of their desire for joint ventures, although in some cases they expressed a need for additional capital. The wish to use a well established brand name was also behind some of the approaches to the writer. Need diversification The Venezuelan food processors recog- nize a strong need for product diversi- fication. They are producing for the 3 to 4 million people in the country who are the principal purchasers of prepared foods, and they need several lines of food products to obtain a sizeable production. Furthermore, although food plants gen- erally appear to be operating profitably in Venezuela, persons active in food pro- duction informed the Mission that the industry was operating at 60-70% of capacity. This unused capacity stimulates the search for additional lines as a means of getting more use out of existing fa- cilities. However, almost all processors, whe- ther they have excess capacity or not, want to take on new lines. The sales engineer has a real opportun- ity to provide packers with ideas for new items and equipment to handle the new lines. Most of the medium to large operations in Venezuela are quite well mechanized and much of their equipment is of U.S. manufacture. There is a need for much food packag- ing equipment. There are plastic and carton manufacturers who can supply a variety of packaging materials. As mentioned elsewhere, U.S. firms are in- volved in the production of cans in Ven- ezuela for a great many types of food products. Packaging is one type of operation certain to progress in Venezuela. In addition to severely limiting imports of foodstuffs, in many cases the Vene- zuelan Government gives financial and technical assistance to the local growth of food products which can be brought to market fresh or processed, and to the production of finished foods from im- ported raw materials. Every food prod- uct now imported, which could rea- sonably be produced or processed in Venezuela can be considered a possible candidate for the Government's list of items whose importation is restricted. Canning of fruits and vegetables is steadily increasing in Venezuela. The vegetables are for the most part those commonly canned in the U.S. Although there are considerable quantities of trop- ical fruits canned in Venezuela, many tons of them are not picked because they are in excess supply. The frozen food industry has been developing slowly, largely because it has been held back by the lack of storage freezers in the markets and in the homes. Frozen food sales should develop in direct proportion to storage facilities. Frozen fruits and vegetables are now imported, but the local industry will surely develop on a considerable scale. While Venezuela is shifting from im- portation to the local preparation of foods, the fact remains that she is still importing many food items. The follow- ing figures show the trend in food im- ports : Thousands Year of dollars 1959 $125,177 1960 115,102 1961 106,477 1962 95,577 The Venezuelan dairy and meat indus- tries are growing rapidly and offer inter- esting possibilities for U.S. exports. There are possibilities for the sale of breed stock for both dairy and meat purposes, and for various types of U.S. meat han- dling and storage equipment. Dairymen and beef producers are in- terested in upgrading their cattle. These native cattle were brought to Venezuela by the early Spanish settlers, and over the 16 years have developed considerable resist- ance to many tropical diseases and to the hot climate. Some registered stock is being im- ported from the U.S. regularly for herd improvement and, with the emphasis which Venezuelan cattle raisers are putting on the expansion of herds and im- provement of their quality, Venezuela offers a good and improving market for U.S. registered stock. Not enough milk Even though milk production has dou- bled in the last decade, it does not meet the country's needs. The Government pays a subsidy on the production of pas- teurized milk. Therefore, powdered milk and cheese are two of the country's major imports. Powdered milk imports are lim- ited to a percentage of domestically pro- duced powdered milk. Butter production has grown more slowly than powdered milk, due to but- ter's relatively high cost in Venezuela in relation to locally produced oleomar- garine. Some modern cheese processing plants exist in Venezuela, and one is affiliated with a leading U.S. cheese company. The Venezuelan subsidy on pasteurized milk production has diverted much domestic raw material away from cheese produc- tion. There are 2 modern ice-cream plants located at Chacao, near Caracas, and additional plants operate in the other large Venezuelan cities. Per capita meat consumption in Vene- zuela is increasing at a good rate, and meat production increased from 15,400 tons in 1951 to 25,800 in 1961. There is no end in sight in the local demand for meat products. Beef generally reaches the Venezuelan consumer in a rather roundabout manner. The farmer sells his cattle to a buyer, who has it slaughtered in a contract slaughter house. The purchaser then sells the meat to a distributor who in turn sells and delivers it to the retailer. Slaughter houses are usually located very close to the market. Most of them are under municipal or other govern- ment control. The government is working towards closing the smaller, unsanitary plants, placing slaughtering operations nearer the cattle areas and equipping them with modern sanitary and refrigera- tion facilities. No chilling equipment Many small retail markets have little or no refrigeration facilities, and there are no holding coolers in killing plants anywhere in the country. Killed animals must be moved out the same day. Even Machinery, transport equipment lead U.S. exports to Venezuela TOTAL $504.3 1963 (in million! of dollars) Miic. manufactured article. W* Other $16.3 S Food, the most modern killing operations — and there are some which have the latest equipment and utilize all by-products ex- cept blood — hang cattle in the open until they are loaded in trucks for distribu- tion. Efforts are being made to improve the distribution of meat. Several ranchers airlift their meat to the population cen- ters. Som; of these ranchers own their slaughtering plants, and at least one slaughterer is making an attempt to buy from the farmer, do his own killing, and sell to the retailer. This slaughterer is also trying to add a complete line of sausage products to his other production, to round out his line and reduce his overhead. There appears to be a market for more U.S. equipment in the modernization of killing and packing plants and especially insulation and refrigeration equipment. There is also room for more sausage manufacturing, and U.S. sausage equip- ment manufacturers could come into Venezuela with their equipment and tech- nical knowledge. Venezuela has a potentially important fishing industry, as certain areas along its coasts abound in fish. Nevertheless, she has not achieved this potential be- cause present laws prohibit using some of the more efficient types of nets and equipment within specified distances of the shore. If the laws arc changed to permit use of fishing techniques, (he in- dustry would undoubtedly be placed on an efficient basis and U.S. investors might become interested. However, there arc opportunities, even now to sell refrigera- tion equipment to existing operators and boats can be supplied to the existing in- dustry cither on a sale or lease basis. Surface fishing supplies the sardine industry, but this is also under-developed because Venezuelan law limits the meth- ods of catch to beach seining. There are seven sardine canning plants in Vene- zuela which pack annually a total of about 1 ,000,000 cases, 800,000 of which are consumed domestically and 200,000 exported. Venezuela possesses considerable re- sources of excellent shrimp, which are partially exploited by a number of small- scale processors. Refrigerated processing plants are not very modern, and refrig- erated boats to supply these plants are lacking. Fishermen in small craft now bring in catches of from 100 to 500 pounds. The domestic market for fish meal is largely supplied by imports from Peru and Chile. There are reduction plants in Venezuela having combined capacities of about 33,000 tons of meal annually, but their supply of inedible fish for re- duction is limited. The Mission was told the protein value of local meal is lower than the imported product because local reduction materials contain greater quan- tities of bone. Retail outlets Distribution of food in Venezuela is very expensive. The primary retail food outlets are some 30,000 small stores throughout the country, many not larger than 300 to 500 square feet of floor space. These stores are doing approxi- mately 75% of the country's total retail food business. Because of their limited volume, costs and markups are high. Supermarkets are growing rapidly. There are 4 chains with about 50 stores of more or less the supermarket type in Venezuela. They account for the 25% of total sales not made by the small stores. The supermarkets carry an average of 60 to 65% domestically produced items. Those which the writer visited compare favorably with some of the modern supers in the U.S. For example, one had 17,000 square feet of floor space and 12 check-out stands. One side of the market was devoted to fresh fruits and vegetables displayed in the finest U.S. equipment and to dairy cases and delicatessen counters. The frozen food department was small since frozen foods are not yet sold in 17 great quantities in Venezuela. The dis- play space for fresh vegetables and fruits was so generous because they are, with seasonal variations, in year-around sup- ply. The meat departments often contain self-service cases across the full back of the stores, with a service case for fish. A supermarket may be a single store by itself or in a Plaza type arrangement with various department stores, restau- rants, and bowling alleys. Many manufacturers rely on distribu- tors to get their lines into the market place. These distributors range from one- truck operators who buy and sell as in- dividuals, to companies with fleets of trucks. Under this system several dis- tributors call on each retail outlet, and this is expensive. Many manufacturers express concern over distribution costs. Some are distributing, in addition to their own products, lists of other producers' items, thereby reducing their distribution costs. As the supermarket industry develops, central warehousing systems in major cities will probably develop, to help the small store remain competitive. The continued expansion of supermar- kets and central warehousing promise an attractive market for U.S. display and food handling equipment. This market will shift from imported finished food products to equipment for display and processing, and finally to domestically produced equipment; but the market should continued to grow. The flexible U.S. manufacturer should be able to ad- just to the changing market. LABOR FORCE Of the estimated 2,570,000 workers in the Venezuelan labor force, 34 percent are in the agricultural sector, 2 percent in petroleum, 1 1 percent in" manufactur- ing, 10 percent in commerce, 21 percent in services, and 22 percent in other activi- ties. High-flying Venezuelan economy sails thru buoyant 1st quarter Incoming President Leoni pledges "Government of action/ foreign investors promised just treatment and guarantees The extraordinary wave of optimism which followed Venezuela's successful December elections persisted through the first quarter. Business is excellent, the stock market has been strong, and plans for a number of substantial new industrial investments are moving forward. At the same time the real estate market has been more ac- tive than at any time since the previous boom subsided in 1959. Unemployment has decreased, although it is still over 10% of the work force. Financially, the Government has ob- tained a substantial treasury balance of $16.5 million, a greatly improved debt structure with short term external debt virtually extinguished, and gold and for- eign exchange reserves of some $750 mil- lion. While there is no imminent danger of inflation the continuing buoyant atmos- phere could lead to an upward trend in prices if sustained. 'Government of action' President Leoni pledged an intensified continuation of existing policies in a "government of action." He stated that the Government would not interfere or compete with private enterprise save where the State has staked out the limits of its lines of action (national steel mill, petrochemical plant, and similar enter- prises). Foreign investment was promised just treatment and the necessary guarantees, provided it was prepared to contribute to the expansion of the national produc- tion on conditions of equality with na- tional business and within the orientation indicated by the Government. Coverage of the social security pro- gram is slated to be expanded, and low cost housing and agrarian reform acceler- ated. On petroleum, President Leoni reiter- ated existing policies, pledged that the private industry which extracts Venezue- lan hydrocarbons and minerals would continue to enjoy the same rights and that it could participate in the future develop- ment of Venezuelan petroleum areas if it adapts itself to the new conditions es- tablished by the State. President Leoni said his Government would accelerate the development of "as- signments" by the Corporacion Vene- zolana de Petroleo as a substitute for the "irrevocably discontinued" system of con- cessions. Celanese Venezolana S.A. has an- nounced that it will manufacture nylon six from imported nylon flake at a plant in Valencia beginning in June. It also announced plans for a plant to manufac- ture polyester fiber from imported chips. Envases Venezolanas del Zulia CA. inaugurated its $2.2 million plant at Maracaibo on February 15. The plant is equipped with U.S. machinery to produce about 6,000 lithographed key-opening cans per hour in sizes from Vi lb. to 5 lb. American Motors announced that Venezuelan production of Kelvinator and Leonard refrigerators by Stockis Vene- zolana C.A., a subsidiary of Stockis and Zonen, of Rotterdam, Holland, was sched- uled to begin in March. On February 24, representatives of 160 Venezuelan companies signed a doc- ument establishing the Voluntary Divi- dend for the Community (DIVIDEND). Each company promised to contribute from 2% to 5% of its net profits to charitable organizations approved by DIVIDEND for distribution by that or- ganization. The Ministry of Public Works and the Orinoco Bridge Consortium early in March signed the contract for construc- tion of the longest suspension bridge in South America and the ninth longest in the world. The bridge will be the first to cross the Orinoco River and will link the vast State, of Bolivar, including the newly developing industrial area around Puerto Ordaz, with the rest of the country. Petroleum production for the first 2 months of 1964 averaged 3.38 million barrels per day, an increase of 40,000 barrels over the same period of 1963. Texaco announced the purchase of the shares of the Superior Oil Company of Venezuela for about $125 million. The company is now called Texaco Mara- caibo. 18 BACKGROUND: CAPITAL GOODS MARKET DEVELOPS Manufacturing and construction stressed in Venezuelan planning Process of industrialization swells prospects for sales, investment, and joint ventures in certain product lines Future imports into Venezuela will be mainly in the form of machinery, raw materials, and technology, reflecting a shift toward diversification of the econ- omy. Venezuela historically has been one of the best U.S. markets for cQnsumer as well as capital goods. As a harbinger of things to come, total U.S. exports to Venezuela increased by 8 percent in the period 1962-63, from $466 million to $504 million with machinery and trans- portation equipment sales increasing twice as fast, from almost $200 million to $231 million. The country's changing economic structure is creating a steady market for industry-oriented products — parts for as- sembly, technical equipment, control de- vices, semifinished goods, components for the building trades, and industrial and intermediate chemicals, to name a few. National expansion hinges on a turn in emphasis from heavy dependence on petroleum production towards a more variegated economic structure. The country has established much of the infrastructure necessary for a modern economy and has embarked upon an ex- pansion of other sectors, particularly manufacturing, construction, agriculture, and services. Capital goods needed Venezuela's Four- Year Development Plan (1963-66) contemplates an annual growth rate of 8 percent in gross domes- tic product, based on petroleum growth at 4 percent annually. Higher growth rates are to be achieved in other sectors of the economy. Manufacturing is ac- corded high priority and is to grow at an annual rate of 13.5 percent. The construction industry, a large employer of labor, is to grow at 14.9 percent, and electricity, gas, and water production are also accorded priority. The 8-percent annual growth projected for agriculture calls for self-sufficiency in the production of rice, corn, beans, potatoes, sesame, peanuts, tomatoes, beef, pork, eggs, and fish. Contemplated overall economic growth is at the same 8-pcrccnt rate as in the 1951-59 period, but with a much smaller growth in the petroleum sector (4 per- cent annually as compared to 6.4 percent annually during 1951-1955). With a population growth estimated at 3 percent annually, per capita income is expected to grow at 4.9 % per year. The plan contemplates that Venezu- ela's serious unemployment problem (14 percent of -labor force) will be reduced substantially (to about 7 percent) by the end of the 4-year period by the creation of about 112,000 new jobs each year. The reduction of unemployment is SUPERHIGHWAY LINK. New bridge spans road connecting Cache, Caracas suburb, with Tejerias. 19 viewed as a principal means of improv- ing income distribution. Construction of low cost housing and sanitary and educa- tional facilities are other important goals of the plan. New plants proposed The Plan calls for production of a million tons of steel annually, including production of wire and sheet, by the end of 1966. An aluminum reduction plant with an initial capacity of 12,000 metric tons, a ferro-manganese plant, and a sponge iron plant with a capacity of about 200,000 metric tons are planned for the Guayana region. The Venezuelan Petrochemical Industry (IVP) plans to produce 150,000 metric tons of fertilizer, 10,000 metric tons of chlorine, and 1 1 ,000 metric tons of soda at its facilities in Moron. New plants producing 25,500 metric tons of explosives, 20,000 metric tons of synthetic rubber, 21,250 tons of plastics, and 10,000 tons of detergents are expected to be in operation by 1966. Assembly of motor vehicles and manu- facture of automotive parts will be en- couraged. The textile, paper, food, fish- ing, and forestry industries are consid- ered to have especially good prospects for development and will receive partic- ular attention. Aluminum production is also programed. Farm mechanization a goal Imports of tobacco, fruits, and forest products should decline with increased local production, but wheat purchases are expected to rise. The area under irrigation is td'be expanded from 35,000 to 330,000 hectares, and mechanization of agriculture is to be accelerated. The number of families settled under the Agrarian Reform Program will exceed 200,000 by 1966. Crop production is expected to rise by 60 percent and live- stock by 54 percent by the end of 1966 over the 1960 level. 20 Trade lists available Trade lists of importers and dealers in Venezuela classified by commodity, and similarly classified lists of manufacturers and ex- porters, are available for $1 per commodity list from the Commer- cial Intelligence Division, Bureau of International Commerce, U.S. Department of Commerce, Wash- ington, D.C., 20230, or from Field Offices of the Department. World Trade Directory Reports on individual firms are available from the same sources for $1 each. All of the commercial banks in Venezuela furnish credit informa- tion free of charge, on a recipro- cal basis, to banking and credit entities. Individuals should make inquiries through their commercial banks. In addition, Dun & Brad- street, Inc., maintains an office in Caracas, where current credit re- ports on Venezuelan firms are made available for distribution through its U.S. offices. Modern industrial state in the making Good potential seen for growth in eastern zone of Venezuela Rich mineral deposits, abundant hydro- electric potential, and cheap water trans- port make the Guayana region of Vene- zuela (Bolivar State) an ideal locale for the development of a modern industrial complex. Iron ore, gold, diamonds, and various other mineral resources are pres- ent in this area of the eastern zone, and the Orinoco River provides convenient access to the Atlantic Ocean. Already a modern integrated steel plant is in operation. Tne huge Guri Dam and its hydroelectric facilities are under construction, and plans are well advanced for the establishment of an aluminum reduction plant, a ferromanga- nese and sponge iron plants, and metal fabricating facilities. Expansion charted in Venezuelan four-year plan augurs well for imports from the United States Opportunities for increasing U.S. participation in trre Venezuelan market above the present 52% level lie in the area of capital goods, machinery, and equipment Since the boom year of 1957, the out- look for U.S. exports to Venezuela never has been more favorable. Early this year, exchange reserves of the Central Bank were at their highest level since 1957 ($725 million on February 29), far above reserves of any other country in Latin America. The country's capacity to import is expected to grow at the rate of 4 percent annually, fed by exchange reserves de- rived from expanding petroleum pro- duction and exports. Accelerated eco- nomic growth charted in the Four- Year Development Plan should generate a 3.5- percent annual increase in overall im- ports. In 1962, Venezuela imported from the United States products valued at $465.8 million and ranked as its second most important customer in Latin America and tenth most important on a worldwide basis. Sales potential high Exports to Venezuela from the United States registered an 8-percent increase to $504.3 million in 1963, and there is every opportunity for further expansion in sales in the current year. The success of U.S. suppliers in the developing Venezuelan market hinges on their ability to meet the challenge of competitive sources and on their readi- ness to grasp the opportunities unfolding with the economic changeover. This transition is characterized by an upsurge in productive capacity by domestic in- dustry, which by 1962 was supplying about 92 percent of the country's meat requirements, 51 percent of the fish, 38 percent of the milk, cheese, and eggs, 97 percent of the fats and oils, and 97 percent of the sugar and confectionery products. Almost all of the demand for beverages, cigarettes, wearing apparel, and furniture were met by local sources. About 32 percent of the consumer durable goods market is being satisfied by local suppliers, compared with 27 percent in 1959, and domestic produc- tion is beginning to take care of local requirements for automobiles, refrigera- tors, stoves, radios, television, and other household appliances. Industry needs take over The other side of the coin is the emer- gence of a different crop of export cate- gories worthy of promotion. With the decline of the consumer goods market a steady demand is foreseen for raw ma- terials and machinery to supply the in- dustries of a manufacturing economy. Imports of capital goods are expected to increase in the next few years at an average annual rate of 22 percent, com- pared with a 3.5-percent rise for total imports while other manufactured goods and agricultural products register de- clines. Chemicals and crude materials have been showing a consistent upward trend in their relative share of total imports, and machinery and transportation equip- ment made a recovery in 1962 from a low point reached in 1960-61 and are expected to register strong improvement for 1963. U.S. metalworking equipment sales to Venezuela have made substantial gains in recent years, increasing from $1.4 million in 1960 to $2.9 million in 1962 and an estimated $3.3 in 1963. In the same 1960-63 period welding tool ex- ports increased from $1.1 million to $1.5 million; power driven hand tools from $479,000 to $600,000: cutting tools from $158,000 to $490,000; industrial heating equipment from $516,000 to $1,100,000; rolling mill equipment from $164,000 to $1,296,000; and abrasive products from $287,000 to $360,000. Buyers require credit terms However, in terms of overall partici- pation, U.S. suppliers have been losing 21 ground in the Venezuelan market to West Germany, Canada, Italy, France, and Japan. Their relative share still represents more than 50 percent of the total, but positive measures are needed to reverse the trend. Competitive pricing and credit availability are high on the list of factors that result in successful trading. Exporters should actively assist the prospective buyer in obtaining financing, particularly in the case of machinery or other goods being sold under medium or long-term credit. They would be well ad- vised to keep abreast of changes in the cost and availability of money, and to modify their terms in accordance with these conditions. They can be especially helpful in cases requiring financing from the Export-Import Bank, the Inter-Amer- ican Development Bank, or other bank- ing institutions abroad. Through the Ex- port Credit Insurance Association, U.S. exporters have available credit facilities fully comparable to those offered by other exporting countries. Farm mechanization in Venezuela sparks wide variety of export opportunities Growing demand is foreseen for farm tractors and machinery; food processing plant and equipment; irrigation systems; and know-how Promise for U.S. traders is seen in the Venezuelan agricultural supplies market. The country's 4-year economic program gives priority to the expansion of agri- cultural production, including livestock, fishing, and forestry. Total land under irrigation is to be in- creased tenfold — from 35,000 to 330,000 hectares; mechanization is to be acceler- ated; and lumbering is scheduled to ex- pand at the rate of 17 percent annually. Livestock production is making substan- tial gains owing largely to the importa- tion of improved breeds, and fish pro- duction and processing, whose growth is Venezuelan Imports of Selected Products, by Country of Origin, 1960-62 (thousands of L). S. dollars) I960 1961 1962 Metal working machinery and equipment Total imports $10,790 $13,975 $12,136 United States 2,374 4,440 6,528 Italy 6,799 7,885 2,762 West Germany 752 575 1,196 Canada 181 323 427 Spain 121 218 272 United Kingdom 109 177 151 Food processing and packaging machinery Total imports 6,686 4,340 8,104 United States 4454 2,107 3,738 Italy 937 938 1,145 West Germany 480 297 892 United Kingdom 236 412 491 Switzerland 143 143 437 Hand tools for use in small industries Total imports 1,343 1,256 1,256 United States 853 919 915 West Germany 288 205 178 United Kingdom 52 110 62 Agricultural, land clearing and highway construction and mainte- nance equipment Total imports 24,071 15,403 25,61 1 United. States 18,614 12,471 18,625 United Kingdom 2,786 1,727 3,898 France 418 103 1,257 Italy 482 483 784 West Germany 1,016 390 535 Agricultural chemicals (fertilizers) Total imports 3,183 3,818 4,010 United States 1,043 858 1,335 West Germany 956 1,670 1,275 Italy — 138 573 Netherlands 427 494 404 Belgium 458 332 300 Source: Boletins de Comercio Exterior, Ministerio de Fomento, Caracas. projected at 7 percent annually, is ex- pected to develop into an earner of foreign exchange. All kinds of implements, equipment, chemicals, and technical knowrhow will be needed to carry out these objectives. The requirements will be met by imports to a large degree. Very few agricultural machines, tractors, or tools are produced domestically, and the inventory accumu- lation is almost completely absorbed. Purchases of these products from foreign sources are well on the way upward, but the relative share of U.S. suppliers is lagging owing to price and credit fac- tors, according to the trade. More pesticides used Prospects for expanding U.S. sales of pesticides are optimistic, although West German and U.K. competition is strong in certain product classes. The United States has been the major supplier of in- secticides, fungicides, copper sulfate, and various other formulations in recent years, and opportunities are growing for even wider participation. Venezuela itself produces no technical material for pesticides. More than 200 companies are registered as importers of pesticides, some in finished form ready for use and some for formulating or packaging. Considerable quantities, of household and agricultural pesticides are already in common use, and the agricul- tural reform program is expected to stim- ulate even greater consumption. Through this program, large tracts of land pre- viously not under cultivation are being distributed to small farmers. Another important factor that could result in considerably increased use of pesticides is a campaign being conducted by Government agencies to educate farmers on the benefits of crop protec- tion programs. The United States continues as an important supplier of agricultural prod- ucts to Venezuela. Wheat is the principal export, totaling $12.0 million in 1962; dairy products are second, $9.3 million. The Four-Year Plan anticipates rising wheat imports, but it calls for self-suffi- ciency in a list of products including 22 pork, eggs, and beans, which the United States now supplies in substantial quan- tities. Fish production encouraged Government efforts to promote com- mercial _ fishing and fish processing through loans to producers, research, and technical studies suggest extraordinary prospects for U.S. sales of a wide gamut of products, from boats and bait to proc- essing and canning equipment. The waters of Venezuela are rich in fish resources. By far most important are the coastal waters of eastern Vene- zuela extending from the British Guiana border to Cabo Unare. This area ac- counts for about 73 percent of the total catch. So far, the fishing industry is relatively primitive except for shrimp and sardine production, which has made good prog- ress in some cases. Many of the boats arc not large enough for maximum effi- ciency, and the equipment is not modern. Presumably owing to these factors, most of the fishing is done within a few miles of shore. In spite of the fact that fish production has doubled in the past decade, Vene- zuela is still a net importer of fish and fish products. Imports in 1961 totaled $2.4 million, of which codfish comprised 36.3 percent; canned salmon, 9.1, per- cent; anchovies and anchovy paste, 7.1 percent; and mollusks, 8.2 percent. The United States supplied about 9.3 percent of the total, mainly codfish and salmon. In view of growing Government protec- tion of the local industry, the outlook for sustained importation of these products is not favorable. Venezuela: Production of Fish, 1952- 62 dn metric lend Y.or Frelh Soiled Conned 1952 31.861 10.202 7.497 1953 32.761 10.191 7.823 1954 27.816 7.985 4.844 1955 . ,, 40.251 9.262 9.329 1956 . 39.140 7.291 6,507 1957 . . . 57.649 6.676 15,706 1958 . 59,092 6.040 15.4 89 1959 . . 63.773 5.616 16.158 1960 ... 67.314 6.176 14.352 1961 64.669 6.397 11,011 1962 . 65.346 ' 5,976 ' 19.930 1962 data ore bated on Irode eitimolei Source: Minitterio do Fomcnto. 1 ole ,n Meniuof de Eiradnr co. No. 1 2 for 1952-1961 doto. WAIST HIGH IN SARDINES. Growing fishing and canning industries will need boats and gear, refrigeration equipment, and processing plant. 23 BY AIR FROM MIAMI Overnight air service from Miami makes factory technicians quickly accessible to Venezuela and permits prompt replace- ment of parts so the buyer can do with- out large inventories. Also, air shipments have an additional advantage in being exempt from the Venezuelan 3.5% ad valorem consular fee. Of Venezuela's estimated 181 airports, only Maiquetia (Caracas airport), Mara- caibo, Barcelona, and Maturin are equipped to handle international traffic. Publications on Venezuela A number of U.S. Deportment of Commerce publications provide addi- tional information about Venezuela. Copies of these can be ordered from any Commerce Field Office or from the Superintendent of Documents, GPO, Washington, D.C., 20402. Basic Data on the Economy, of Vene- zuela. OBR 63-132. October 1963. 20 pp. 15 cents. Economic Developments in Venezeula. OBR 63-73. March 1963. 5 pp. 15 cents. Licensing and Exchange Controls of Venezuela. OBR 63-80. March 1963. 7 pp. 15 cents. Living Conditions in Venezuela. WTIS, Part 2, No. 62-23. May 1962. 18 pp. 10 cents. Import Tariff System of Venezuela. WTIS, Part 2, No. 61-18. March 1961. 2 pp. 10 cents. Pointers for exporters to Venezuela Industrialization is the clue to new markets — Finished consumer goods are giving way to parts for assembly, semifinished goods, and raw materials. More technical equipment, control de- vices, and machinery will be needed. Specialty products will continue to be imported — These include components, spare parts, installations whose produc- tion is highly complicated. To name a few: Carburetors, instruments, generators, starter motors, and gear boxes in motor vehicle parts; fuse boxes, switches, relays, meters, and transformers in building trades installa- tions; industrial and intermediate chemicals; precision, scientific, meas- uring, and electronic devices. Per capita income is high — Disposable income is the highest in Latin Amer- ica, and much of it is spent on the comforts of life. Well-to-do Vene- zuelans want quality merchandise, and the U.S. label means just that. Even though local and foreign competition are affecting U.S. sales, this quality factor plus cultivation of the changing market will be rewarding. Licensing and investment opportunities are worth exploring — Proposals for joint ventures and licenses from U.S. producers are sought in the fields of construction; materials-handling equip- ment, fruit juice concentrates, ice- making and oxygen plants; men's ap- parel, and automobile parts. The right weapons can overcome compe- tition — Stress strong points: Bettsr service, availability of replacement parts, fast delivery, guarantees. Have on-the-spot agent or representa- tive able to sell in Spanish, using technical and promotional literature written in Spanish. Be prepared to modify the product to meet local conditions — electrical current, units of weight and meas- urements, climate, customs. TECHNICIANS OF TOMORROW. Graduates of Creole Instrument Technical School are rapidly absorbed into Venezuela's skilled labor force in support of industry's scientific and professional personnel. U.S. Exports to Venezuela, 1960 Category 1960 1961 Total $548,414,828 $513,308,888 Food and live animals 86,167,144 78,437,486 Beverages and tobacco 3,737,974 1,846,037 Crude materials, inedible, except fuels . 10,522,996 16,735,304 Mineral fuels, lubricants, and related materials 6,653,067 4,617,037 Animal and vegetable oils and fats . . . 2,497,663 4,563,300 Chemicals 52,040,213 54,786,335 Manufactured goods classified chiefly by material 100,980,443 99,391,708 Machinery and transport equipment 240,080,369 211,274,819 Miscellaneous manufactured goods 38,977,679 35,730,336 Commodities not classified by kind 6,748,275 5,926,531 1 Preliminary. Source: U.S. Bureau of the Census. -63 1962 1963' 465,797,057 $504,314,000 56,349,393 55,385,000 1,339,479 223,000 16,363,611 17733,000 3,790,624 2,903,000 3,933,126 4,281,000 52,186,742 47,624,000 94,022,083 105,271,000 199,871,380 230,803,000 31,516,451 31,171,000 6,424,168 8,920,000 MONEY IN PETROLEUM U.S. direct investments in Venezuela totaled $2.8 billion in 1962, of which 80% is in petroleum. U.S. investments in Venezuela are exceeded only by in- vestments in Canada ($12.1 billion) and in the United Kingdom ($3.8 billion). INVESTMENT MARKET The United States is the major foreign investor in Venezuela, accounting for 64% of total foreign investments, fol- lowed by the United Kingdom, 34.9%. STABLE INTEREST RATES Interest rates charged by commercial banks in Venezuela have been rather stable and range from 7.5 to 10% an- nually, averaging about 8% in 1962. 24 Overseas traders, listed below, want to do business with American firms. Commodities they wish to buy or sell are identified by description and by Standard Industrial Classification (SIC) Manual number. Other symbols used: * — Additional information on the trade opportunity may be obtained by writing Commodity Export Promotion Staff, BDSA-111, Department of Commerce, Washington, D.C., 20230. NCIA — No commercial information available on the overseas firm. WTD — World Trade Directory report available. WTD reports give a de- scription of the firm, its sales territory, size of business, sales volume, trade and financial reputation and other data. Copies can be bought for $1 each from the Commercial Intelligence Division, Bureau of Inter- national Commerce, U.S. Department of Commerce, Washington, D.C., 20230. Numbers following the WTD symbol show the date the report was issued. I.R. — Interview Report, identified by following number, is available on the trader. These reports are compiled by the Trade Mission. Copies can be obtained from Trade Mission Division, Bureau of International Commerce, U.S. Department of Commerce, Washington, D.C., 20230. 289 Chemical Products Importer wants to l»e< nine agent lor I 5 chemical auxiliaries used in textile industry. Meller & Essnik Represents lonen. Edit. Man. urn 114, Calle Real Saliana Grande, Caracas. WTO 12/61. I.K. 16. 291 Petroleum Refining Manufacturer interested principally in brake fluids of high quality military -|.i c ifi< at ions. Also interested in transmission and spring fluids. Industria Venezolana Plasticos I nun nosis, C A., Calle Progreso, Las Aca< ia-. Caracas. NCIA. I.R. 3. 307 Plastics Products Manufacturer seeks high density plastic shipping cases made of polyethylene, Bebidas Caseosas El Polo, Calle 5 de Julio Sur No. 8 La Victoria (Vicinity of Maracay), Caragua. NCIA. I.R. 139. 322 Glass, Glassware Leads for Exporters 019 Commercial Farms Firm seeks to import oriental birds, flow- ers, gold fish, pheasants; food for animals. Adica, Edif. Seguros Venezuela, ler. Piso Va- lencia. NCIA. I.R. 134. 200 Food Wholesaler wants to represent lines of canned foods, also condiments. Commercial "Qorinda", Calle Vargas Norte 30, Maracay. NCIA. I.R. 149. 204 Grain Milk Products Importer and owner of rice mill seeking to import other ingredients to produce balanced dairy and poultry feeds. Considering soya flour. Becoblohn C.A. Ed. Beco, Esq. Puente Yanes, Caracas. I.R. 9. 206 Sugar Businessman desires quotation for 100 tons of glucose. Asodeti (Associacon de Estudios Tec. — Industr. de Venezuela) Aptdo. 6922, Caracas. NCIA. I.R. 21-A. 208 Beverage Industries Wholesaler seeks bourbon and scotch for distribution in central Venezuela. Luis E. Diaz, Mayor de Licores, Aptdo. 27, Maracay. NCIA. I.R. 144. Manufacturer interested in importing orange and grape base for drinks low in solids for reduced costs. Low calorie is of interest. Ven- ezuela Trading Co., C.A., 40 Transversal Monte Cristo, Das Caminos, Caracas. I.R. 1. 209 Food Preparations Manufacturer desires agent relationship with U.S. firms in food staples. Belgica C.A., Mar- ron a Dr. Paul, Planta Baja, Edificio Coro- nado, Caracas. NCIA. I.R. 23. 220 Textile Mill Products Manufacturer wishes to become agent for textiles. Belgica C.A., Marron a Dr. Taul, Planta Baja, Edificio Coronado, Caracas. NCIA. I.R. 23. 230 Apparel Pre-cut material for nurses' and doctors' uniforms. Eloise de Lacayo, A v. 6 (Colon) No. 95-54, Maracaibo. NCIA. IR. 73. 275 Commercial Printing Manufacturer seeks lithograph copies of old masters. Frente a Zulia Motors, Avenida 4, Maracaibo. NCIA. I.R. 86. Manufacturer seeking source of embossing masters. El Turista, Edif. Republica, Plaza de la Republica, Maracaibo. NCIA. IR 76. 281 Industrial Chemicals Businessman wishes price quotations for 3 to 4 tons of ammonium sulphate to be de- livered every 6 months; 30 tons ammonium sulphide.. Asodeti (Asociacion de Estudios Tec. -Industr. de Venezuela) Aptdo. 6922, Caracas NCIA. IR. 21-A. 284 Soaps, Detergents, Cleaning Preparations, Perfumes, Cosmetics Businessman wishes In buy rosin liquid de- tergent for cleaning silk. Desires quantities in 55 gallon drums. Asodeti (Associacion de Estudios Tec. -Industr. de Venezuela). Aptdo. 6922 Caracas. NCIA. IR. 21-A. 14-oz. bottles for soft drinks. Bebidas Case- osas El Polo, Calle 5 de Julio Sur No. 8 La Victoria (Vicinity of Maracay), Caragua. NCIA. I.R. 139. Glassware for bars, restaurants, soda foun- tains, cafeterias. L. Urdaneta & Co. S.A., Edif. Urdaneta, La Ciega, Ave. 2 (El Milagrot, Maracaibo. NCIA. I.R. 69. 341 Metal Cans Containers for oxygen and acetylene. Oxi- geno Carabobo, C.A., Calle Michelena 92-C- 152, Maracay. NCIA. I.R. 140. 342 Cutlery, Hand Tools, General Hardware Representation for hobby craft and hand tools. El Turista, Edif. Republica, Plaza de la Republica, Maracaibo. NCIA. I.R. 76. Hardware items: screws, wrenches, pincers, hammers. Ferreteria El Control, Calle Comer- cio 101-9. Valencia. NCIA. I.R. 137. Distributorship for hardware. Salvaiore So- larno (Carpinteria Venecia), 4" Ave. No. 62- Barrio Sta. Rosa. Maracay. NCIA. I.R. 146. Importer wishes to act as distributor for hardware, associated products, especially locks. Possibly later licensing agreement. Ferreteria Caroni S.A., Av. Frco. de Miranda No. Ill, Chacao, Caracas. NCIA. I.R. 19. 349 Fabricated Metal Products Tableware and utensils for cooking, sening. eating. L. Urdaneta & Co. S.A. Edif. Urdaneta, La Ciega, Ave. 2 ( El Milagro > t No. 97-7 5 ' . Maracaibo. NCIA. I.R. 69. 351 Engines, Turbines Outboard motors. Ferreteria F.I Control, Calle Comercio 101-9, Valencia. NCI \ I R 137. 25 352 Farm Machinery Farm machinery, supplies for animal hus- bandry. La Casa Agricola Ave. 101 (Diaz Moreno) , No. 97-47, Valencia. NCIA. I.R. 104. 353 Construction Equipment Back hoes, scrapers, heavy construction equipment; used, rebuilt tractors size D-8 or D-9. Obras Y Caminos, Galeria Bolivar, Primer Piso, Od. No. 3, Caracas. NCIA. I.R. 184. Manufacturer wishes to import additional lines of materials handling equipment. Gleason & Cia. S.A., Edif. Internacional, Planta Baja, Esq. Urapal, Caracas. WTD 10/21/63. I.R. 31.* 354 Metcilworking Machinery Machinery to produce expanded metal wider and heavier gauge than 2% meters by 5 mm. ' Continuous roll galvanizing equip- ment; steel strips. Fanamec, C. A. Ave. Gon- zalez Rincones No 175 — La Trinidad, Baruta Caracas. NCIA. I.R. 29. Importer wants to represent manufacturers of equipment used in steel-making operations specifically in steel sheets, plates, laminations. Wants exclusive representation. Also needs complete plant for making cast iron centrif- ugal pipe. S.A.V.E.R. Guinand, Reducto a Glorieta 77-2, Caracas. WTD 11/29/63. I.R. 12. Businessmen seeking obsolete tooling, equip- ment to manufacture cutlery, household items. Sr. Pictro Marchese, Polaris, S.A., Ave. Francisco De Miranda-Edif. Palmira of. F., Chacao, Caracas. NCIA. I.R. 30. Manufacturer wishes to purchase extruding and coating equipment for operations in all areas of flexible packing. Polyplastic De Ven- ezuela, C.A., 1 Martillo a Palo Grande, Ca- racas. WTD 9/21/62. I.R. 6. 355 Special Industry Machinery Used or rebuilt machinery to print daily tabloid size newspaper, rotary press, two colors. Production 5-6,000 copies per day, 6-8 sheets. El Imparcial C.A. Editora "El Impar- cial", Ave. 10 de Diciembre, No. 48, Maracay. NCIA. I.R. 148. Sealer for plastic sheet materials and ma- chine for plastic processing. "Wonder" Prod- uctos En Cuero y Plastico, Av. Los Cedros No. 70, Maracay. NCIA. IR 147. Hydro-type bottle washer with brushes, capacity 120 bottles per minute. Bebidas Gaseosas El Polo, Calle 5 de Julio Sur No 8 La Victoria Caraguay. NCIA I.R. 139. Copying lathe for wood for furniture; pneu- matic press for plywood. Art-Italica, C.A., Ave. Bolivar, Este 27, Maracay. WTD 311/ 64. I.R. 138. Distributorship for woodworking machin- ery. Salvatore Solarno (Carpinteria Venecia), 4° Ave. No. 62 — Barrio Sta. Rosa, Maracay. NCIA. I.R. 146. Tube mills on 48 to 60 month credit terms. C.A. Conduven, Urbankacion Soco — La Vic- toria— Estado Aragua. NCIA.~I.R. 164. Cutting and wrapping supplies for beef pro- cessing, Molano & cia., Granja San Francisco, El Limon, Maracay. NCIA. I.R. 153. Plastics machinery, molds, patterns for pro- duction of general household plastic items. Need technical assistance. Dr. M. R. Rabin- ovich K. and Dr. Joaquim Fernandez, Edificio Gilcon Avda. Bella Vista — Esquina 65, Mara- caibo. NCIA. I.R. 55. New and used cardboard making machinery. Tejidos De Punto Tip-Top, C.A., Tejidos de Punto Tip Top C.A., Urbj Industrial San Martin, Caracas. WTD 2/6/64. I.R. 5. Machinery for rebuilding gas and diesel engines, general machine shop work, pump repair. Talleres Go-Ha-CA., Ave. 96, No. 17 C-82, Maracaibo. WTD 3/5/64. I.R. 203. Machinery to produce corn oil, 4 tons per 24 hours. Obras Y Caminos, Galeria Bolivar, Primer Piso Of. No. 3, Caracas. NCIA. I.R. 167. Machinery to produce 2-pc. paper cups. In- dustria Cartonera Venezolana, Calle Paez No. 90-72, Valencia. NCIA. I.R. 101. Machinery for making asbestos cement pipe 3 to 8" outside dia. Concretera "San Jose", Navas Spinola No. 95-75 Valencia. NCIA. I.R. 129. Solvent extraction plant for edible oils. Compania Anonima Facegra, Calle 107 (Navas Spinola) No. 96-108 Valencia. I.R. 128. Canning equipment: heat exchanger for liquids, double vacuum closing machine for speeds of 1250 per hour with change parts for various can sizes; filling machines for liquids; vacuum dehydrator. Confrut De Venezuela, Inc., Edificio Tarbes 19, Aptdo. 135, Valencia. NCIA. I.R. 124. Machinery for manufacturing modified starch for food industry. Central Yuquero El Pao C.A., POB. 124 Valencia. NCIA. I.R. 111. Two roasters for coffee plant; packaging equipment, coffee can manufacturing equip- ment, bag manufacturing equipment for ^ and 1-lb. bags. S. A. Cafe Imperial, Box 174, Aptdo. 174, Maracaibo. I.R. 85. 356 General Industrial Machinery Representation for pumps for hot water circulation in commercial bldgs. Georges Roche S.A., Sta. Teresa a Cipreses 69, Caracas. I.R. 193. Manufacturer needs porcelain enameling equipment for small scale operation. Cocinas Modernas (J. Sabal & Cia.) Edif. Philco, Ave. Voltaire, Los Chaguaramos. NCIA. I.R. 40. 357 Office, Computing, Accounting Machines Assembly, distribution of office equipment. Empo-Carabobo, Ave. Marino 97-22, Edificio Toledo, Valencia. WTD 3/5/64. I.R. 107. 358 Service Industry Machines Commercial refrigeration equipment. Ferre- teria El Control, Calle Comercio 101-9, Valen- cia. NCIA. I.R. 137. Refrigeration equipment, insulation for meat processing. Molano & Cia. Granja San Fran- cisco. El Limon, Maracay. NCIA. I.R. 153. 360 Electrical Machinery, Equipment, Supplies Representation for electric motors, genera- tors, transformers, power line construction ma- terials, pole hardware, insulators, radio trans- mitters UHF & VHF, radio receivers UHF & VHF, electric panel boards, mobile transmit- ters, high voltage electric switches. Ecyt C.A. O Cycomca (Construcciones Y Comunica- ciones C.A.), (Ingenieria Electrica, Civil Y Telecomunicaciones) , Aptdo. 8335, Caracas, Aptdo. 6343, Caracas. NCIA. I.R. 180.* 363 Household Appliances Sale, service of home sewing machines. Dis- tribuidora Von Wahlert De Valencia, S.A., Calle Colombia No. 97-14 (POB No. 302, Va- lencia). NCIA. I.R. 109. Washers and room air conditioners, both domestic and commercial; also refrigerators, dryers. C.A. Comercial ABC. (Pablo Espinal, hijo), Calle Colombia 97-12, Valencia. NCIA. I.R. 103. 365 Radio, Television Receiving Sets Importer desires to purchase a knock-down or unitized TV receiver. Expects to import 3,000 knock-down sets. Equipos TV. & In- dustria Nacional Electrofonica, S.A., Av, Norte, Esq. 2a Transversal Maripere. WTD 7/31/61. I.R. 35. 373 Ship Building, Repairing Manufacturer interested in assembly fibre- glass and aluminum boats, all price ranges; also manufacture of windshields, other parts. El Pez Vela, S.A., Calle Los Laboratories, Los Ruices, Caracas. NCIA. I.R. 2. 375 Motorcycles, Bicycles, Parts Representation of motor scooters, motor bikes, motorcycles. Manuel Alvarez Castro, C.A., Calle 100 (Colombia) No. 91-76, Va- lencia. NCIA. I.R. 135. 396 Costume Jewelry, Novelties, Buttons, Notions Manufacturer desires agency for novelty goods. Belgica C. A., Marron a Dr. Paul, Planta Baja, Edificio Coronado, Caracas. NCIA. I.R. 23. 399 Manufacturing Industries Importer interested in becoming agent, pref- erably on exclusive basis for pharmaceuticals, foodstuffs, cosmetics, feeds, chemical and bulk oemponents in these product areas. NCIA. R.I. 17. Building materials, affiliated products. Rep- resentaciones Roche C.A., Sta. Teresa a Ci- preses 69, Caracas. I.R. 194. Bee hive manufacturing tools. Manuel Al- varez Castro, C.A., Calle 100 (Colombia) No. 91-76, Valencia. NCIA. I.R. 115. 26 Leads for Importers 200 Food Powdered duck eggs, carp fish, bananas, honey in the comb, unshelled cashew nuts, guava fruit, ADICA, Edit. Seguroa Venezuela - -ler. Piso, Valencia. NCIA. I.K. 133. 203 Canning, Preserving Foods Brokers and distributors for pineapple vine- gar; sliced or diced pineapple; guava; papaya packed in 55 gallon drums, 10 tins or 16 oz. or 32 oz. tins; canned or frozen shrimp. Ormaechea Hnos. C.A., Ave. Algodonal, Edif. La Torre de Oro, Antimano-Caracas. I.R. 195. Canned tropical fruits: papaw, pineapple and oranges; also pineapple, banana, papaw, mango fruit cocktail in heavy syrup. Confrut de Venezuela C.A., Edificio Tarbes 19 Aptdo. 135, Valencia. I.R. 118. Brokers and distributors for bananas. In- vestment Counseling Service, Aptdo. 8006, Caracas. I.R. 171.* Fruit and vegetables. Produceiones y Expor- taciones Criollas (Pecrica) Aptdo. 12767, Ca- racas. I.R. 181.* Cue cmiit and guava jellies in 16. 24, 32, 64 oz. jars and 24 oz. tins. "I. a Criolla" (.r.inj.i el Aeiieduc to, Calli •'!! 14A-48, Maracaibo. NCIA. I.R. 70. Manufacturer and wholesaler wishes to ex- port surplus of 1.000 fifty-gallon barrels of oranges and 500 fifty-gallon barrels of passion fruit and both 58 Brix frozen. All barrels are poly lined. Venezuela Trading Company C.A., 40 Transversal Monte CrietO, Dos Caminos, Caracas. WTD I.R. 1. 207 Confectionery Seeking broker or distributor in U.S. for guava cookie bars similar to fig bars. La Suiza Maracaibo, C.A., No. 58-A — 127 Ave. 4, Aptdo. 289, Maracaibo. WTD 4/5/63. I.R. 67. 234 Women's and Children's Outerwear Manufacturer seeks relatively small U.S. penetration of brassieres and underwear lines. Would prefer agent to work on orders from sample line but would also consider an exclu- sive commission agent. Bclgica, C. A. Marron a Dr. Paul Edif. Coronado, Planta Baja — Caracas. WTD I.R. 32* 249 Wood Products Wood carvings. El Turista, Edif. Republica, Plaza de la Republica, Maracaibo. NCIA. I.R. 76. Hare WOOd picture fi.iifi'-- Mil' v., i Frente a Zulis Motor*, Maracaibo. VI \. II! 86. 328 Cut Stone, Stone Products Manufacturer desires to ship Venezuelan Marble to U.S. Marmicolar, 5, V, '.harallave, Estado Miranda. WTD I.R. 11 329 Abrasive, Asbestos, Nonmetallic Mineral Products Venetian < r > - 1 a I art objei i» f (ir exclusive small market. Cri-lal \eneeiano de Maracaibo C.A., Km. 1 Carretera a Perija, Maracaibo. NCIA. I.K. 81. 399 Manufacturing Industries Plaster casts of religious statuary. Mara- eotecnica, Ave. 4, Frente a Zulia Motor*, Maracaibo. NCIA. I.R. 86. 891 Engineering, Architectural Services Representation for engineering or architec- tural firms in Venezuela. Pedro L. Koe-Krom- pecher (Architect), Aptdo. 40. Maracay. NCIA. I.R. 141. Investment Opportunities 1511 Building Construction Long established construction firm in Car- acas, with land, layouts, plans, specifica- tions, proposes joint venture or equity in- vestment to develop major building pro- gram for homes, apartment buildings, su- permarkets. Annual return in excess of 10% and recovery of invested capital within 5 years forecast. Write to Ing. Miguel Ben- mergui B., President, Metropolitana de Con- strucciones C.A., Avenida El Rosario No. 5, Los Chorros, Caracas. (IR 37). 201 1 Meat Packing, Canning 2033 Canned Vegetables, Fruit Firm of packers in Caracas interested in joint venture to provide additional working capital; permit more efficient plant opera- tions. Four plants involved, two rented on 8 and 12 year leases from Venezuelan gov- ernment. Killing capacity at these plants is 100 cattle, 120 hogs per hr. Another killing plant is privately-owned as is modern canning facility. Canning plant claims to be profitable operation, processing over 30 dif- ferent kinds of fruits, meats, vegetables, juices. Potential also exists for sausage manufacturing operation. Company anxious to break present practice of custom killing but claims underfinancing is impediment. A 50% interest in firm would require invest- ment of approx. $1.8 million. Further infor- mation regarding this opportunity can be obtained by writing Pablo Henning, Direc- tor, TAF Productora de Enlatados C.A., Avenida Abraham Lincoln, Edificio Union of N° 32, Caracas. (IR 202). 2013 Canning Maracaibo manufacturer of spaghetti, macaroni, similar products is looking for joint venture with U.S. firm experienced in canning, packaging, marketing to expand line through development of canning opera- tion. Expansion contemplated would include canned meat balls, ravioli. It is reported that firm would be able to finance increased in- ventory, accounts receivable if U.S. partner's contribution to venture bought new produc- tion equipment, supplied necessary technical assistance. Firm claims a net worth of ap- prox. $330,000. For additional details write to: Pastas Alimenticias S.A. "Anita" (Pastas Anita) Callc 89 B N° 10-189. Maracaibo. (IR 71). 2032 Dietetic, Baby Foods Manufacturer of food products interested in joint venture to produce diabetic, dietetic food products, baby foods. Firm would con- sider organizing separate company if neces- sary, using $110,000 of its money to match U.S. capital. For additional information write: Difraca C.A., Edif. Rojas Bravo. Urb. Michelena, Valencia. (IR 110.) 2033 Food Processing German-born citizen of Colombia resid- ing in Venezuela, with capital. 10 acre in- dustrial tract with all utilities, wishes to enter into joint venture with U.S. food proc- essing firm to establish business in that field. Requires only technical assistance, processes. F.ugenio Gebauer, Apartado 953, Caracas. (IR 170). 2037 Frozen Juice Company engaged in packing oranges pro- poses joint venture with U.S. firm for con- centration, freezing of orange juice in Vene- zuela. Extraction of oil from orange peelings, manufacture of fruit jellies, concentration of juices of other fruits are possibilities for expansion. Company, which owns land valued at around $100,000 as well as $55,000 plant (against which is present balance — $28,000 — of original $99,000 loan e x tended by Venezuelan Development Corp.) would ac- cept reconditioned used machinery, as IS participant's contribution to joint venture. For further information, write: Salvador Castellanos. Director. Fmp iquetadora de Naranias San Dieco. Fstancta San Onofre. San Diego. Valencia. tIR 127). 27 2041 Flour Firm in Valencia proposes to establish mill for production of flour from vegetables, fruits as well as manufacture of cereals; in- terested in joint venture with up to 50% participation. Inquiries should be addressed to Productos Agricolas Industrializados Venezolanos, C.A., Apartado 546, Valencia. (IR 126). 2046 Edible, Industrial Starches Caracas starch manufacturer interested in joint venture with U.S. firm to retire short- term loans, provide working capital. Total investment required is around $100,000, with technical assistance also needed. Inter- ested potential investors should write: Dis- tribuidora Americana S.A., Apartado Nueva Granada: 7640, Caracas. (IR 166). 2052 Crackers, Cookies Established Maracaibo manufacturer of candy, cookies and crackers seeks to expand cracker, cookie production through licensing arrangement or joint venture, with well- known U.S. firm. If licensing or joint ven- ture arrangement permitting production of American-branded products in Venezuela cannot be arranged, firm willing to contract for required technical assistance in produc- tion. Neither equipment nor outside capital is needed. Firm had 1963 sales of around $1.7 million, operates 80 trucks, sells to 64 distributors. For further information write: Ramon Muchacho Armas, La Suiza de Maracaibo, C.A., N° 58-A— 127 Av. 4 (Apartado 289) Maracaibo. (IR 66). 2087 Fruit Juices Local bottler of fruit juices seeks to enter into licensing arrangement with U.S. firm producing fruit concentrates. Welcomes technical assistance. Write to Mr. Jorge Un- gar, Selecta de Venezuela, Edificio Los Andes, Oficinas Ent. "A" Sab. Grande, Caracas. (IR 12-A). Vice President of local brewery and two other Venezuelan businessmen have or- ganized company to process, freeze, can tropical-fruit pulp. They seek to enter into joint venture with U.S. firm with know-how and able to provide required machinery, equipment for plant having a capacity of 4 or 5 tons of fruit pulp an hour. The com- pany is prepared to match U.S. capital in- vested. Growing domestic market for tropi- cal-fruit pulp seen as result of restrictions against imports of fruit concentrates and export potential appears promising. Dr. Jorge Perez Amado, President, Industrias Montesa, C. A., Zona Industrial de Mara- caibo, Ave. 60 No. E-4, Maracaibo. (IR-56). 2097 Ice 2813 Oxygen Businessman with property in Venezuela and propane-gas distributing business in Colombia, plans to set up ice-making plant (to supply community of 150,000 persons) and oxygen plant (25 to 30 cu. m. capacity per hour) in Venezuela. U.S. participation on joint venture basis in order to purchase required machinery, equipment sought. Write to Mr. R. J. Ortega, President, Sol Gas, Avenida 5 de Julio No. 3h-84, Mara- caibo. (I.R. 53). 2210 Cotton Textiles Textile manufacturer in Caracas inter- ested in joint venture with U.S. firm to provide' working capital for expansion. It is reported that the firm owns plant build- ing, sufficient land for contemplated ex- pansion. Current employment is 115; plant is well-equipped to produce special textiles, but is presently operating at only 30% of capacity as it lacks the working capital to finance operations. Company president plans to visit U.S. in near future. Inter- ested U.S. firms desiring further information and an opportunity to discuss the proposal in more detail should write promptly to Mr. Yamil K. Mazri, President Telares Miranda, C.A., 4 Transversal Boleita, Caracas. (IR 209). 2299 Textiles Established textile manufacturing firm proposes joint venture with U.S. firm with view to modernizing plant, expanding pro- duction. Firm, which employs some 400 workers, does annual volume of business exceeding the equivalent of $1 million, now has 180 textile machines (80 French-made) installed in factory, plans to purchase 60 additional ones. Firm offers 40% interest in company for approx. $450,000 which it would re-invest in company. For further in- formation, write: Jose Luis Navarrete V., Executive Mgr., Manufacturas Karam C.A., Apartado N° 12, Valencia. (IR 119). 2311 Suits, Men's, Boys' Small clothing factory in Maracaibo cur- rently engaged in production of men's slacks seeks U.S. investment of some $45,- 000 in order to expand operations to include manufacture of men's and boys' suits, shirts, sportswear. Managerial know-how, technical assistance also solicited. Write to Mr. Rafael Rodriguez, Confecciones Maracaibo, C.A., Avenida 13, No. 90-46, Maracaibo. (I.R. 57). 2514 Chrome Furniture Small metal-furniture maker employing 12 workers proposes joint venture with U.S. firm for manufacture of chrome furniture, mainly kitchen, dinette furniture. Requires designs, technical assistance. Current market estimated at equivalent of $450,000 a year with growth potential foreseen. At present time, only one firm in area manufactures chrome furniture. For further information, write: Nestor De Fex, La Competidora-Fabrica de Alumi- nio, De Fex & Cia., Ave. Maitin N° 96-54, Valencia. (IR 136). 2646 Paper-mache Articles Local manufacturer of paper products (boxes, labels, tickets, bobbins, business forms) plans to expand operations to make paper-mache articles such as egg-boxes and continuous business forms; proposes joint venture or direct investment in order to purchase required machinery, equipment. Write to Robert A. Arias, Vice President, Artelito, S.A., Edificio Artelito, 2° Ave., Los Palos Grandes, Caracas. (I.R. 4). 2821 Polypropylene, Polystyrene, Polyvinyl Resins Venezuelan firm, engaged in extrusion of polyethylene from raw resin desires to ex- pand operations to include extrusion of polypropylene, polyvinyl chloride, poly- styrene. U.S. licensor with technical know- how sought. Firm sees good market in flex- ible packaging materials. Write to Mr. Imre Frisch, Polyplastic de Venezuela, C.A., Martillo a Palo Grande, Caracas. (IR 7). 2834 Pharmaceuticals Well-established pharmaceutical firm in Valencia seeks approximate 50-50 joint ven- ture with U.S. pharmaceutical company. Venezuelan firm has 71 employees, com- plete distribution of full line of pharmaceu- ticals, is capable of compounding drugs locally. It handles injections, sprays, serums, antibiotics, vitamins. Senior company offi- cial prepared to visit U.S. if negotiations with potential investor appear promising. Write: Laboratories "Rojas Bravo S.A.", Edificio Rojas Bravo, Urb. Michelena, Va- lencia. (IR 106). Firm engaged since 1950 in manufacture of fairlv wide range of pharmaceutical prod- ucts wishes to enter into licensing arrange- ments with U.S. firms for manufacture of veterinary products; insecticides; mineral, vegetable, or animal base chemicals; cos- metics; alimentary specialties. Write: Dr. Jaime Isern, Mgr., Laboratories Ergos, Apartado 4120 del Este, Caracas. (IR 187). Insect Repellents Roofing Materials 2842 2952 Maracaibo firm experienced in importa- tion, distribution of U.S. roofing materials, insect repellent coatings interested in manu- facturing these products under license. Joint venture acceptable, although local financing of project can be arranged. Further informa- tion is available by writing: Commercial Distribuidora, C.A., Avenida 5 de Julio, No. 3G-65, Maracaibo. (IR 97). 2842 Disinfectants 2992 Lubricants Manufacturer of lubricants, disinfectants seeks joint venture and/or licensing arrange- ment with U.S. firm to produce additional products in the field of lubricants, disinfec- tants, fungicides, pesticides, household prod- ucts. Interested firms should write: C. A. Nacional De Grasas Lubricantes, Carretera Los Guayos, Valencia. (IR 105). 2844 Cosmetics Local businessman in cosmetics line inter- ested in undertaking manufacture of cos- metics, related products either under license of U.S. producer or on joint venture basis. For further information, write: Charles H. Winkel, Avenida Branger, Apartado 645, Valencia. (IR 131). Long-established Caracas manufacturer of cosmetics seeks joint venture for expansion. This small firm lacks capital to acquire mod- ern machinery and is willing to consider any type of joint venture arrangement pro- posed by potential U.S. investor. Firm cur- rently has five employees and imports raw materials. Interested firms can obtain addi- tional information by writing Proderma Cosmeticos, 2nd Avenida Las Delicias de Sabana Grande, Edificio Ozanam Caracas. (IR 208). 3420 Hardware 3561 Compressors 3571 Electronic Equipment 3582 Laundry Equipment Long-established importer and wholesale distributor of hardware, air compressors, 28 electronic equipment, laundry equipment de- sires to enter into joint venture with US manufacturer! for production of any w ;iM of these items in Venezuela. Write to Mr. Stein Halvorssen, President, Elcclro-Indus- trial Halven — O. L. Halvorssen, S.A., Edi- ficio Halven, Esq. Monroy, Caracas. (IR 15). 3443 Boilers Joint venture for manufacture of tube- type waterboilers in 5 to 50 hp. range pro- posed by local boiler-maker who has patented completely-automatic boiler ("Venevapor"). In addition to 3,000 sq. meter factory building, local manufacturer, who started business in 1945 as contractor, would invest land valued at nearly $70,000 as well as his patent in venture. U.S. participant would be expected to in- vest equivalent of around $45,000 with which required machinery, equipment would be purchased. Current volume of business reportedly exceeds the equivalent of $200,- 000 a year. For further information, write: Carmelo Federici, Industrial Federici C.A., Calle Santana-Boleita, Caracas. (IR 189). 3461 Metal Pails License to manufacture metal pails (5 gal. capacity) for packaging paint, grease sought by sheet metal fabricating firm in Venezuela. Current demand estimated at 100,000 five-gal. pails a year. For further information, write: Miguel Ferstadt, Meta- lurgica Emiliana C.A., Apartado 4353 Chacao, Caracas. (IR 173). 3461 Automobile Parts 3561 Pumps for Fluid Power Systems Joint venture to manufacture under U.S. license auto parts (wheel drums, pump and wheel cylinders for hydraulic brakes, auto- motive water pumps, carburetor bases), pumps for fluid power systems proposed by Venezuelan industrial firm presently manu- facturing galvanized pipe and steel tubing. Currently operating at capacity of 20,000 tons of galvanized tubing a year, the firm plans to double the capacity by mid- 1964 through installation of another tube mill and galvanizing line. The new investment in which firm desires to interest U.S. manufacturers involves in- stallation in the firm's steel mill of plant to produce from 100 to 150 tons of cast machined parts a day. The U.S. firm would be invited to contribute 49% of required capital as well as technical assistance, re- lated licenses. The firm's industrial plant is located 30 miles east of Maracaibo at Punta Gorda, in the center of Venezuela's largest petroleum area. For further information, interested U.S. firms are invited to write to Sr. Angel Prieto, President, Siderurgica Occidental c.a. (SIDEROGA), No. 85-160 Ave. 4 (Apartado 1000) Maracaibo. ( IR 84). 3537 Materials Handling Equipment Established importer, agent for various kinds of industrial equipment and small- scale manufacturer of materials handling equipment desires to enter into licensing arrangement or joint venture with U.S. man- ufacturer with view to expanding present line of materials handling equipment. Write to Mr. Aurelio C'oncheso, Gleason & ( ia, S.A., Kdifiiio International, Planta Baja, Esq. Urapal, Caracas, (IR 31). 3561 Hydraulic Pumps 3621 Electric Motors Caracas firm, which manufactures metal partitions and operates as importer, sales agent for electric industrial and home appli- ances, interested in joint venture to manu- facture under license electric motors, hy- draulic pumps. Firm has been in business for 25 years, presently has 50 employees. For further details interested potential in- vestors should write Mr. Jose Sosa Rodri- guez, C. A. La Commercial Prosperi, Bar- cenas a Rio, Edificio Sadia, Caracas. (IR 206). 3564 Ventilation Equipment Well-established Caracas machine shop seeks joint venture with U.S. firm to manu- facture industrial ventilation equipment. Firm claims it has manufactured large variety of products including steel tanks, door-frames, piping, ductwork systems up to complete steel framework for buildings. It solicits manufacture under license of any products similar to these. For additional in- formation interested firms should write: Talieres Galpor C.A., Fste 10, N° 87 (Sucre a Bermudez), Caracas. (IR 204). 3585 Air Conditioning Group of importers interested in forming new company as joint venture with U.S. firm to manufacture window air conditioners. Group would furnish land, building; would require capital, technical assistance from U.S. firm. Initially, plant would be used only as assembly operation with most components coming from U.S. firm. For additional in- formation write: Mayer Abbo, Apartado N" 9, Maracaibo. (IR 176). 3585 Refrigerators, Ranges, Air Conditioners Firm manufacturing refrigeration systems under license wants to enter into joint ven- ture with U.S. firm to manufacture domestic refrigerators, ranges, domestic and commer- cial air conditioning units. Firm is part of substantial industrial group which controls 10 companies in various fields. Its plant, which occupies 50,000 sq. ft., is located on 660,000 sq. ft. lot in industrial zone afford- ing room for expansion. For further informa- tion, write: Francisco L. Ezquerra, Vene- zolana de Refrigeration C.A., Apartado 12, Valencia. (IR 158). 3621 Electric Condensers 3651 Television Receivers 3679 Output and Power Transformers Caracas firm of importers founded in 1957 and reorganized in January of this year, which provides maintenance service for marine communications equipment, I V X-ray and other medical equipment, seeks expansion of activities through joint ven- ture or licensing arrangement with I S company experienced in that industry. Hrm is operated by two sons of the founder who control the major stock interest. Employees currently number 121. Expansion contem- plated into assembly of such electronic equipment as television sets and marine communications equipment as well as local manufacture of electronic components in- cluding paper condensers and I.K, output, power transformers. Firms interested in following up this opportunity should write Mr. Armando Bchrens D.. President, Beh- rens Electonica, S.A. (Apartado 5771), Avcnida Los Manolos. Ouinta Coro-Claret, La Florida, Caracas. (IR 207). 3630 Electric Household Appliances 3650 Radio, Television Sets Firm in Maracay seeks joint venture or licensing arrangement to manufacture TV sets, radios, electric household appliances. Initial operations would be based on assem- bly of parts furnished by U.S. partner, with gradual introduction of parts manufactured in Venezuela. Firm reported to have sub- stantial capital available, interested pri- marily in negotiating with experienced U.S. manufacturer of above products, able to contribute technical assistance. For further details write: Commercial "SAMY", Aven- ida Miranda No. 1. Edificio Banco Italo- Venezolano. Maracay. (IR 160). 3693 Carbon Arcs Joint venture sought by small manufac- turer of plastics, commercial lamps to pro- duce carbon arcs for movie projectors. Firm estimates demand at 400,000 carbons monthly. Required participation by a U.S. investor would be 50% or approx. $60,000. Interested firms should write: Corporacion Electronica Zuliana, Calle 67 No. 9B-89, Maracaibo. (IR 72). 3732 Motor Pleasure and Fishing Boats Small firm at La Guaira established in 1957. manufactures pleasure craft and fish- ing boats of aluminum or wood ranging from 21 to 80 feet in length. It is inter- ested in joint venture with U.S. firm ex- perienced in industry for expansion. Firm needs working capital, is open to suggestions from potential investors. Current produc- tion is approximately one 45 ft. craft with two 180 hp. diesel engines in about five months. Further details may be secured from Mr. Hermanos Michic, Arecife, Apar- tado 8. La Guaira. Departamento Vargas. (IR 205). 5091 Tubing Manufacture of 3" pipe fittings and opera- tor of only galvanizing plant in Venezuela, proposes joint venture with U.S. compan\ to manufacture in Venezuela gajvanized tubing, fittings for water supply-lines from 4" to 8" in dia. In addition to $50,000 capital investment for required machinery, equip- ment, technical know-how welcome. Write: Luis Ruiz-Aguirre, Tuberias Carabobo. C. A. Valencia, Manrique 98-21. Valencia. (IR 155). 29 Publication for International Traders This checklist is issued semi-annually— in June and December— by the Bureau of International Commerce. A single copy will be mailed without charge upon request. Use the coupon below. Ondeti PUBLICATIONS DIVISION, BIC U.S. DEPARTMENT OF COMMERCE WASHINGTON, D.C., 20230 Gentlemen: Please put my name on your mailing list to receive the Checklist of International Business Publications when it is issued. Typing must be confined to length indicated according to style of typewriters used. Start Elite Pica Exec. Firm Person's name Street address City, state, zip code U. S. DEPARTMENT OF COMMERCE FIELD OFFICES PROVIDE READY ACCESS TO COMMERCE SERVICES • The Department of Commerce maintains Field Offices in the cities listed below for the purpo providing ready access to the reports, publications, and services of the Business and Defense Services Administration, Bureau of International Commerce, Office of Technical Services, Office of Business Economics, and the Bureau of the Census. Information on activities of the National Bureau of Stand- ards, Patent Office, and the Area Redevelopment Administration are also available. • Experienced personnel will gladly assist in the solution of specific problems, explain the scope and meaning of regulations administered by the Department, and provide practical assistance in the broad field of domestic and foreign commerce. Field offices act as official sales agents of the Superintendent of Documents and stock a wide range of official Government publications relating to business. Each of- fice maintains an extensive business reference library containing periodicals, directories, publications, and reports from official as well as private sources. • Approximately 550 Chambers of Commerce, Manufacturers Associations, and similar business groups are official Cooperative Offices of the Department where many of the basic publications and re- ports of the Department are on file and available for consultation. If specific information is not on hand in the Cooperative Office, your problem will be referred to the nearest Department field office. • These facilities have been established to assist you. You are invited to use them. DOMESTIC TRADE Population Count and Characteristics; Housing Statistics; Detailed Agricultural Data on County Basis; Retail, Wholesale and Service Business; Estimates on Population Movements; National Income Statistics; Regional Trends in United States Economy; Biennial Volume on Business Statistics; Current Releases and Business Indicators; Research Sources on Market Potentials; Development and Maintenance of Markets; Reports on Governmental and Private Technical Research; Regional and Community Development Techniques; Information on Government Procurement, Sales and Contracts. FOREIGN TRADE Tariff Rates of Foreign Countries on Specific American Prod- ucts; Regulations Bearing on the Control of Exchange Abroad; Administration of Regulations Imposing Import Quotas and the Details of Import Licensing Procedures in Overseas Markets; Facts on Economic and Trade Conditions; Business Information on Foreign Firms; Documentation of Export and Import Shipments, Both Here and Abroad; Statistical Data on Both Imported and Exported Products; Assistance on Export Regulations and Problems, Including Prompt Special Service in Emergency Situations; Trade Investment and Licensing Opportunities; Foreign Lists of Buyers and Suppliers. Department Field Offices Albuquerque, N. Mex., 87101, U.S. Courthouse. 247-0311. Anchorage, Alaska, 99501, Room 306, Loussac- Sogn Building. Phone: BR 2-9611. Atlanta, Ga.. 30303, 75 Forsyth St., N.W. JAckson 2-4121. Birmingham, Ala., 35203, Title Bldg., 2030 Third Ave., North. Phone: 323-8011. Boston, Mass., 02110, Room 230, 80 Federal Street. CAp- itol 3-2312. Buffalo, N.Y., 14203, 504 Federal Building. 117 Ellicott St. TL 3-4216. Charleston, S. C„ 29401, No. 4, North Atlantic Wharf. Phone: 722-6551. Charleston, W. Va., 25301, 3002 New Federal Office Building, 500 Quarrier Street. Phone: 343-6196. Cheyenne, Wyo., 82001, 207 Majestic Bldg., 16th & Cap- itol Ave. Phone: 634-2731. Chicago, 111., 60606, Room 1302, 226 West Jackson Blvd. 828-4400. Cincinnati. Ohio, 45202, 8028 Federal Office Building, 550 Main Street. Phone: 381-2200. Cleveland, Ohio, 44101. 4th Floor, Federal Reserve Bank Bldg., East 6th St. & Superior Ave. 241-7900. Dallas, Tex., 75202, Room 1200, 1114 Commerce Street. Riverside 9-3287. Denver, Colo., 80202, 142 New Custom House, 19th & Stout Street. 534-4151. Detroit, Mich., 48226, 445 Federal Bldg. 226-6088. Greensboro, N. C, 27402. Room 407, U. S. Post Office Bldg. 273-8234. Hartford, Conn., 06103, 18 Asylum St. Phone: 244-3530. Honolulu, Hawaii, 96813, 202 International Savings Bldg., 1022 Bethel St. 588874. Houston, Tex., 77002. 5102 Federal Bldg., 515 Rusk Ave CA 8-0611. Jacksonville, Fia., 32202, 512 Greenleaf Building. 204 Laura Street. ELgin 4-7111. Kansas City, Mo., 64106, Room 2011, 911 Walnut Street. BAltimore 1-7000. Los Angeles, Calif., 90015, Room 450, Western Pacific Bldg., 1031 S. Broadway. 688-2830. Memphis, Tenn., 38103, 345 Federal Office Building. 167 N. Main Street. Phone: 534-3214. Miami, Fla., 33132. 408 Ainsley Bldg., 14 N. E. First Ave. FRanklin 7-2581. Milwaukee, Wis., 53203. Straus Bldg., 238 W.Wisconsin Ave. Phone: BR 2-8600. Minneapolis, Minn., 55401. Room 304, Federal Bldg.. 110 South Fourth Street. Phone: 334-2133. New Orleans, La., 70130, 1508 Masonic Temple Bldg.. 333 St. Charles Avenue. Phone: 527-6546. New York. N. Y., 10001, 61st Fl.. Empire State Bldg. . 350 Fifth Ave. LOngacre 3-3377. Philadelphia. Pa., 19107, Jefferson Building, 1015 Chest- nut Street. WAlnut 3-2400. Phoenix, Ariz., 85025, New Federal Bldg.. 230 N. First Avenue. Phone: 261-3285. Pittsburgh. Pa.. 15222, 1030 Park Bldg.. 355 Fifth Ave- nue. 471-0800. Portland. Oreg., 97204. 217 Old U. S. Courthouse. 520 S. W. Morrison Street. 226-3361. Reno.Nev., 89502. 1479 Wells Avenue. Phone: FA 2-7133. Richmond, Va.. 23240, 2105 Federal Building. 400 North 8th Street. Phone: 649-3611. St. Louis. Mo.. 63103. 2511 Federal Building, 1520 Mar- ket Street. MAin 2-4243. Salt Lake City, Utah. 84111.3235 Federal Building. 12S South State Street. 524-5116. San Francisco. Calif.. 94102, Federal Building. 450 Golden Gate Avenue. Phone: 536-5864. Santurce. Puerto Rico. 00907. Room 628. 605 Condado Avenue. Phone: 723-4640. Savannah, Ga., 31402. 235 U. S. Courthouse and Post Office Bldg.. 125-29 Bull Street. ADams 2-4755. Seattle. Wash., 98104. 809 Federal Office Bldg.. 909 First Avenue. MUtual 2-3300. Get on the right track! Sales opportunities by the hundreds are reported each week in the news magazine, INTERNATIONAL COMMERCE. Business by the trainload— the results of completed foreign sales negotiations — moves through our ports each week to customers abroad. Are your shipments among them? SUBSCRIBE NOW TO INTERNATIONAL COMMERCE Subscription Form Pleat* enter my subscription to International Commerce. D Annual subscription, $16.00 D Via domestic airmail, $25.00 additional G Foreign mailing, $5 additional NAME ADDRESS CITY STATE. Mail to Sales Promotion Staff, Office of Publications, U.S. Depart- ment of Commerce, Washington, D.C. 20230. Enclose check or money order payable to the Superintendent of Documents. U.S. TRADE MISSIONS PROGRAM PENN STATE UNIVERSITY LIBRARIES ADDDD71EfififiTS I I THE BASIC TOOLS for making money overseas are simple and relatively inexpensive, as basic tools should be. The Department of Commerce is ready to help you with international product displays, market surveys, and tariff and customs regu- lations. Call on us or one of our Regional Field Offices. U.S. DEPARTMENT OF COMMERCE Bureau of International Commerc