The University library THE PENNSYLVANIA STATE UNiVERG. UNIVERSITY PARK, PENNSYLVAf KUWAIT a market for U. S. products UNITED STATES DEPARTMENT OF COMMERCE Digitized by the Internet Archive in 2012 with funding from LYRASIS Members and Sloan Foundation http://archive.org/details/kuwaitmarketforuOOabdo KUWAIT a market for U. S. products By Albert N. Abdo Bureau of International Commerce November 1962 U.S. DEPARTMENT OF COMMERCE Luther H. Hodges, Secretary Jack N. Behrman Eugene M. Braderman Assistant Secretary Director, Bureau of (or Domestic and International Business International Commerce For sale by the Superintendent of Documents, U.S. Government Printing Office Washington 25, D.C. - Price 25 cents Foreword THE Kuwait market is important because of the State's purchasing power and its liberal trade policy. Its oil-based economy has brought rapid devel- opment and a potential for continuing growth. This study introduces the American businessman to Kuwait by presenting practical marketing information about the State and suggesting exporting opportunities. The report is presented by the Department of Commerce as a part of its continuing effort to help U.S. businessmen increase their profits through exports. Eugene M. Bkadekman Director Bureau, of International Commerce in Contents Page Foreword iii CHAPTERS I. Character of the Kuwait Market 1 Pattern of Trade 1 Impact of Economic Development 4 II. Market Analysis, by Commodity Groups 7 Foodstuffs and Tobacco 7 Motor Vehicles and Related Products 10 Metal Manufactures 10 Machinery 11 Chemicals . 11 III. Marketing Facilities and Procedures 13 Channels of Distribution 13 Regulations and Practices Affecting Imports 13 Licensing and Exchange — Shipping Documents and Packing — Payment Arrangements — Banking and Insurance Transportation and Communications 16 Aids to Marketing 17 Advertising — Chamber of Commerce — Services by U.S. Agencies — Government Representation Business Customs in Kuwait 17 IV. Guidelines for U.S. Businessmen 19 V. Information for Visitors 21 TABLES 1. U.S. Exports to Kuwait, 1957-61 4 2. Kuwait Imports, by Principal Country of Origin, 1958-60 5 3. U.S. Exports to Kuwait, 1936-62 5 4. U.S. Exports to Kuwait of Foodstuffs and Tobacco, 1961 7 Page 5. Motor Vehicles in Use in Kuwait as of May 1962 10 6. U.S. Exports to Kuwait of Motor Vehicles and Related Products, 1961 10 7. U.S. Exports to Kuwait of Metals and Metal Manufactures, 1961 10 8. U.S. Exports to Kuwait of Machinery, 1961 11 9. U.S. Exports to Kuwait of Chemicals and Related Products, 1961 11 CHARTS 1. Countries of Origin of Kuwait's Imports, 1958-60 5 2. U.S. Exports to Kuwait, 1960-01 19 MAP OF KUWAIT vH PHOTOGRAPHS 1. A broad avenue lined with multistory buildings 2 2. Air view' of new port at Shuwaikh 2 3. Sea water distillation plant at Shuwaikh 3 4. A tranquil garden 3 5. Education for everyone 8 6. Receiving medical care 8 7. Enjoying a game of football 9 8. Learning a trade 9 9. Drilling 14 10. Operating "well-head manifold assembly" 14 11. Shipping 15 12. Refining 15 VI VH VIII CHAPTER I Character of the Kuwait Market U£ EXPORTS to Kuwait soared from $3.2 .0. minion in 1950 to $56.4 million in 1961, and a strong potential exists for even greater growth in the future. Behind this striking market development is the wealth that is accruing to Kuwait from the dis- covery and exploitation of vast oil resources. The state has become the largest oil producer in the Middle East and one of the world's top-ranking- oil exporters. It is apparent to the visitor that the wealth de- rived from oil royalties of over $100 million a year has had a profound effect on the state. The mud and coral structures of earlier days have given way to multistoried modern buildings, comforta- ble homes, and paved streets. Adequate supplies of electricity and water — from the world's largest sea water distillation plant — have revolutionized the mode of life. Air conditioners, television re- ceivers, and motor vehicles — unattainable a few years ago — are visibly in widespread use. Extensive sales distribution facilities have been developed. The old Kuwait of narrow winding streets and open bazaars is disappearing. Mod- ern retail stores and showrooms are now common- place. Progress is so rapid that it is difficult to recognize the area after a 2- or 3-year absence. PATTERN OF TRADE Kuwait's status as an attractive, prosperous market is amply evident from the variety of for- eign goods on display on merchants' shelves. Al- most all fabricated goods and foodstuffs must be imported. Although they are expanding, domes- tic manufacturing facilities are still inadequate, and the predominantly barren terrain discourages agriculture. Most of the American exports to Kuwait ai*e in three general categories (table 1) : Foodstuffs (mostly grains and preparations, and canned goods and juices). Motor vehicles and related products. Machinery and metal products (mostly re- lated to oilfield operations and construction activies). This pattern reflects Kuwait's requirements for its building program, its dependence on oil opera- tions, and its lack of domestic supplies of food- stuffs. The country's drive to modernization is indicated by a strong appetite for U.S. -made auto- mobiles, and air-conditioning and refrigeration equipment, Although Kuwait trades with about SO countries, more than 50 percent of its imports are accounted for by only -1 countries — the United Kingdom, the United States, TVest Germany, and Japan, in that order (table 2). Trade with the Soviet bloc is minor, amounting to less than 3 percent of total imports. Kuwait's exports, excluding petroleum, consist primarily of reexports of foodstuffs, automobiles, and ciga- rettes to neiehborino- countries. 663084 — 63- 1 Kuwait today: a modern, progressive Courtesy Kuwait Oil Co. A broad avenue lined with multistory buildings. Air view of new port at Shuwaikh. More than a million tons of cargo are unloaded at Kuwait port yearly. Courtesy Kuwait Oil Co ndustrious community Courtesy Kuwait Oil Co. Seawater distillation plant at Shuwaikh — the largest such installation in the world. A tranquil garden. Table 3 shows the value of U.S. exports to Kuwait over the past 25 years. The United States in recent years has supplied about 20 per- cent of the Kuwait market, challenging the traditional position of the United Kingdom as Table 1. — U.S. Exports to Kuwait, 1957-61 [In thousands of dollars] Table 1. — U.S. Exports to Kuwait, 1957-61 — Con. [In thousands of dollars] Exports from U.S., includ- ing reexports, total Exports from U.S. of U.S. merchandise, total Meat and meat products Grains and preparations Milled rice Wheat flour Vegetables and preparations Canned vegetables including juices Fruits and preparations Canned and frozen fruit juices.--- Chewing gum Rubber manufactures Pneumatic tires and tire casings except aircraft. _. Inner tubes, new or used, except aircraft Cigarettes Cotton wearing apparel Wool rags and used civilian clothing Manmade fibers and manufac- tures Broad woven fabrics, syn- thetic Wearing apparel, synthetic. Lubricating oils, except hy- draulic Iron and steel mill products, rolled or finished Pipes, tubes and, tubing Metal manufactures Tools, all metal Storage tanks, unlined Structural shapes, steel fab- ricated Machinery, total Electrical machinery Power generating and distribution appara- tus Household refrigerators- Electronic equipment and parts __ Starting, lighting, and ignition equipment in- cluding spark plugs... Industrial machinery Engines, turbines, and parts, power generat- ing machinery Construction, excavat- ing, mining, and re- lated machinery Construction and maintenance equip- ment and parts... Rotary drill rigs, per- cussion type drilling machines and parts Petroleum field production equip- ment, n.e.c Other industrial ma- chines and parts Air-conditioning and refrigerating equip- ment Pumps and parts Pipe valves, includ- ing automatic, and parts Water treatment and sewage dis- posal equipment.. 4 38, 786 38, 772 76 971 608 333 346 258 165 115 112 898 625 1,745 548 467 158 272 491 2,945 2.933 2, 375 111 894 116 13,682 2,378 1.081 236 174 352 11.272 763 5, 151 1,299 1. 074 515 5,332 1,616 491 909 1,550 42, 550 42. 544 149 1,134 558 563 267 190 164 113 367 246 24 2,186 665 171 349 102 203 764 1,426 1,159 2,495 169 175 12, 744 2,174 592 242 202 368 10,527 890 3,646 2,002 793 477 5,673 2,652 1,253 559 182 46, 544 46, 525 166 1,390 756 589 458 358 271 194 149 598 446 50 2,744 711 310 452 204 213 932 326 235 816 151 43 29 12,508 2, 033 271 363 292 489 9, 861 2,091 3,631 1,523 1,712 289 4,071 2,226 450 263 I960 40, 835 40. 820 184 1,243 233 685 436 266 276 218 219 1,044 643 60 3,775 336 366 103 220 807 1,199 1,169 3,156 121 791 11, 971 1,816 235 358 222 9,848 726 3,180 1,094 1,386 599 5,874 3,027 384 321 103 1961 56, 400 56, 389 279 1,831 900 740 413 328 176 198 718 504 37 4, 039 798 223 292 76 159 1,148 1,024 911 6, 650 138 12 5,255 20, 480 3, 968 458 527 1,084 247 15,963 1,215 5,128 1,579 2,476 1,007 9,560 3,542 898 405 157 Tractors, parts, and accessories. Tracklaying tractors, new__. Parts for tractors Automobiles, parts, and acces- sories Motor trucks and truck chassis, new Passenger cars, new, non- military Parts for replacement, in- cluding engines and bodies. Chemical specialties. Flavors and flavoring ex- tracts Ready-mixed paints, stains, enamels, and varnishes... Chemical specialty com- pounds (n.e.c.) Medicinal and pharmaceutical preparations Photographic and projection goods Scientific and professional ap- paratus Fountain pens Paper, related products, and manufactures Cigarette paper books and book covers 1957 1958 1959 1960 413 273 67 386 187 199 536 237 299 270 127 133 10, 143 13, 506 18,587 8,554 3,884 4,593 9,484 2,418 3,863 5,807 4,659 3,767 1,639 321 2,359 602 3,523 729 1,892 554 71 134 199 135 139 127 268 467 154 351 362 255 37 34 44 72 109 133 100 117 50 373 63 534 55 847 73 826 119 284 275 290 91 217 189 146 1961 494 274 220 11, 272 3,278 5,583 2,054 770 143 299 333 114 200 116 828 222 95 Source: U.S. Bureau of the Census. Kuwait's prime supplier. Minor suppliers are Belgium-Luxembourg, Italy, India, the Nether- lands, France, and Switzerland. The composition of trade is determined largely by free demand, since there are few government controls and the tariff is only 4 percent. Imports cover a wide range of items, but major categories are motor vehicles, grains and flour, industrial and electrical machinery, building materials, and metal manufactures. Before World War II, the volume of trade was limited. Basic commodities were the main items of import, and the area subsisted chiefly as an entrepot under the aegis of a treaty relation with the United Kingdom. With the beginning of oil production in 1946, the trade pattern expanded and diversified. From about $1 or $2 million before World War II, imports increased to $80 million by 1950, and after a decade of steady growth totaled more than $240 million in I960." IMPACT OF ECONOMIC DEVELOPMENT Kuwait's historic trade pattern is identified with the growing production and export of oil and a corresponding increase in imports. Further expansion is foreseen as the demand for consumer o-oods and the fluctuating needs of the construe- tion and oil industries are satisfied. In particular, imports of foodstuffs, tobacco products, quality consumer items, and light industrial and electrical machinery are expected to increase. In building sales to this expanding market, American exporters have the benefit of the good will and reliability that the "made in U.S.A." label has built up in Kuwait. U.S. products are generally favored for their quality and prestige. On the other hand, many Kuwait merchants feel that the frequently higher cost of American goods may prevent many consumers from exer- cising this preference. The Government's drive for development and modernization provides a strong stimulus to economic activity. Government contracts are responsible for about 50 percent of all imports. Kuwait does not maintain purchasing missions abroad; goods needed by the Government are bought through Kuwait nationals. Far-reaching Government projects for modernization and development will undoubtedly continue to exert a strong influence on the import trade. Graph 1. — Countries of Origin of Kuwait's Imports, 1958-60 FOUR COUNTRIES ACCOUNT FOR TWO-THIRDS OF THE TOTAL VALUE OF KUWAIT'S IMPORTS Table 2. — Kuwait Imports, by Principal Country of Origin, 1958-60 [Millions of U.S. dollars] Country Total United States United Kingdom West Germany Japan _ Belgium-Luxembourg Italy India Netherlands France Switzerland 1958 190.0 42.6 60. 5 16.5 14.3 5.9 7.0 8.3 4.5 4.3 3.4 1959 200. 46.6 51.3 22.9 29.5 6.4 6.6 8.2 6.8 4.9 3.6 1911(1 243. 5 43.6 50.0 23.1 21.4 11.5 11.2 8.4 7.4 5.4 5.0 Source: For 1958-59, IMF-IBRD, Statistical Papers, "Direction of Inter- national Trade," Scries T, vol. XI, No. 9. For I960, official Kuwait trade data. These figures should be used as a general guide and are not necessarily exact. KuAvait Government plans include a variety of construction projects providing schools, hospitals, housing, Government buildings, a sewer and water system, roads, and port and airport improvements. These plans suggest opportunities to Americans not only for the sale of products but also for con- tracting and engineering services. Foreign contractors are required to work through a Kuwait agent or to establish a Kuwait Source: IMF -IBRD, Statistical paper, "Direction of International Trade," Series T, Volume XI, No. 9; and Official Kuwait trade statistics. branch whose ownership must be at least 51 percent by Kuwaitis. Interested parties are urged to con- sult International Commerce for announcements of invitations to bid. Table 3. — U.S. Exports to Kuwait, 1936-62 [Millions of dollars] Year Value 1936-38 average 1 $2. 2 1946 2 5 1947 -__. 11.8 1948— 33.3 1949 22. 5 1950 3.2 1951. _ 6.3 1952 12.5 1953__ _ 15.8 1954 14.5 1955 15.6 1956.... 30. 6 1957 38.8 1958 - 42.6 1959.... 46.6 1960 40.6 1961 56. 4 1962 (January-June) 29.0 1 Includes Saudi Arabia and other Arabian Peninsula States. Source: Bureau of the Census, U.S. Department of Commerce. KUWAIT— MARKET PROFILE AREA: 6,000 square miles in Kuwait proper, and an undivided one-half interest in a 2,000-square- mile neutral zone (about the size of New Jersey!. POPULATION: 320,000, abouf half concentrated in Kuwait town, the capital. PRINCIPAL INDUSTRY: Oil production, bringing income of $400 million annually. CURRENCY: Kuwaiti dinar, on a par with the British pound sterling 11 £ equals US$2.80); fhe dinar comprises 1,000 fits, and 50 fi/s equal 1 dirham. MOTOR VEHICLE REGISTRATION: 45,000, of which 22,000 are private passenger cars. TELEVISION SETS IN USE: 8,000. TOTAL IMPORTS: $243.5 million (19601. PRINCIPAL SUPPLIER COUNTRIES: The United Kingdom, United States, West German/, and Japan provide more than 50 percent of all imports. PRINCIPAL IMPORTS: Quality food products, tobacco products, motor vehicles, industrial and elec- trical machinery, building materials, and metal manufactures. CHAPTER II Market Analysis, by Commodity Groups The following is a review of the potential for U.S. exports of various classes of commodities: Foodstuffs and Tobacco According to U.S. statistics, the value of Amer- ican exports of foodstuffs to Kuwait in 1961 was about $3.25 million (table 4) . About half of this amount represented grains and preparations, the other half being accounted for by meat and prod- ucts, and canned and frozen vegetables and fruits. It is interesting that U.S. exports of cigarettes totaled $4 million, substantially more than the value of all foodstuffs furnished. Most of the cigarettes are thought to find their way into sur- rounding countries. Almost all quality products — especially frozen meats — are in demand in Kuwait. Except to a small group of consumers, brand-name merchan- dising is not important. Emphasis should be on competitive pricing, and not on superfluous ornate packaging or branding. Islamic laws prohibit the consumption of pork and pork products and alcoholic beverages; such foods are bought only by the foreign community. Nonalcoholic beverages, such as fruit juices, are widely consumed. Kuwait taste favors a heavily sweetened flavor. The influx of immigrants and workers from other countries and the general improvement of food-handling and refrigeration techniques have affected Kuwait food tastes and consumption pat- tern. Although much of the food requirements are still of basic commodities, more and more canned, frozen, and "fancy" groceries are appear- ing in merchants' showcases and on shelves. The United States holds an estimated 20-30 percent of the present canned foods market. Japan also is becoming a major supplier of canned goods, most- ly fish and fruit juices. The typical outlet is a small store carrying a variety of grocery products. Display and refrig- eration techniques are adequate in most cases and are consistently improving. A trend to larger outlets is becoming more apparent. Official Kuwait data show that foodstuffs im- ports totaled 208,950 metric tons in 1961, a 7-per- cent increase over 1960 levels. They were ( in metric tons) : Barley, 14,219 ; sugar, 87,176 ; flour, 31,992 ; rice, 22,945 ; spices, 640 ;" coffee, 565 ; tea, 2,949 ; vegetable oil, 2,979 ; and miscellaneous foods, 45,604. The U.S. share by weight, 11 per- cent, was exceeded only by Rumania, 17 percent, entirely sugar. Table 4. — U.S. Exports to Kuwait of Foodstuffs and Tobacco, 1967 Product Foodstuffs, total __ Animals and edible products, total Meat and meat products ___ Chickens, broilers and fryers.. ._. Dairy products _ Fish and fish products.. _ Vegetable products, edible, total Grains and preparations Milled rice Wheat flour-.- Vegetables and preparations '_ Canned tomato juice -_ Fruits and preparations 2 Sugar and related products Chewing gum Beverages - Flavors and coloring syrups ior beverages Tobacco and manufacturers, total Cigarettes -- - Cigars and cheroots Smoking tobacco in packages __ ..- i Mostly canned vegetables. - Mostly canned fruits and juices. Source: U.S. Bureau of the Census. Value $3,251,569 345. 889 277. 975 189. 422 45, 651 13, 931 2. 905, 680 1,830.541 898. 556 739, 523 413, 267 62. 209 176, 394 306. 121 198, 368 60. 849 52. 314 4. 069. 085 4, 039, 374 27.341 2. 370 The people of Kuwait reap the benefit Courtesy Kuwait Oil Co. Education for everyone: Large school and surrounding facilities in Kuwait. Receiving medical care. Courtesy Kuwait Oil Co. f industrial and cultural development Courtesy Kuwait Oil Co. Enjoying a game of football. Learning a trade: A trainee in the Magwa training school receives instruction in metal turning. Courtesy Kuwait Oil Co. By weight, the United States in 1961 supplied 28 percent of the barley imports (Australia 35 percent) ; 38 percent of the flour (Australia 39 percent) ; 25 percent of the rice (Pakistan 75 per- cent) ; and 10 percent of the miscellaneous foods. In the suburbs of Kuwait town, a Government experimental farm begun in 1954 is attempting to determine whether certain crops and animals can be raised commercially. However, hopes of suc- cess are slight on account of the extreme barren- ness of the terrain, and most observers feel that the state will continue to depend heavily on im- ports for most of its rising food requirements. Motor Vehicles and Related Products U.S. manufactures have captured an estimated 50 percent of the motor vehicle market. In 1961 motor vehicles and related products comprised about 25 percent of total U.S. exports to Kuwait. In the early days of the country's economic growth, passenger cars on the streets of Kuwait were predominantly of the luxury class, but more recently demand has spread to the medium- and low-price field primarily because of the growing proportion of consumers in the low-income class. Therefore, the U.S. automobile will probably meet increasing competition from lower priced Europe- an "economy" automobiles. Table 5. — Motor Vehicles in Use in Kuwait as of May 1962 Type Number Total 44, 867 Private sedans 21, 820 Taxi sedans. _______ __ ___ 4,264 178 Private station wagons.. _ 2,117 Private jeeps 1,244 Private trucks. 2.320 Public trucks. _. __ 2.059 Private dump t-acks 7,729 Public dump trucks __ _ 425 Public pickups. ._ 1 920 Private buses. 288 Public buses __ _ 186 Motorcycles 124 109 Water scooters. 72 Gas scooters. 12 Source: Official Kuwait statistics. Another factor favoring the smaller auto is in- creasing traffic congestion. Along with paved streets and traffic circles, the state now boasts rush-hour traffic jams. According to figures is- sued by the Kuwait Government, there are 44,867 automobiles of all types operating in Kuwait (table 5). This is a substantial number of vehi- cles, in view of the relatively small size of the populated area. Of 9,046 motor vehicles imported in 1961, the United States supplied 4,203. Other major sup- pliers were West Germany, 1,099 ; Italy, 961 ; and United Kingdom, 942. Inasmuch as motor trans- port is the only mode of internal transport in Ku- wait, the current rate of demand for all types of vehicles and accessories will probably be main- tained, if not surpassed. U.S. exports to Kuwait of motor vehicles and related products totaled more than $14 million in 1961 (table 6). Table 6. — U.S. Exports to Kuwait of Motor Vehicles and Related Products, 7967 Type Total Motor vehicles and parts, total Trucks, commercial, gasoline, 6,000 lbs. g.v.w.i and under Trucks, commercial, gasoline, 6,000-10,000 lbs. g.v.w Trucks, commercial, gasoline, 10,000-14,000 lbs. g.v.w Trucks, commercial, gasoline, 14,001-16,000 lbs. g.v.w Trucks, commercial, gasoline, 16,001-19,500 lbs. g.v.w Trucks, commercial, gasoline, over 19,500 lbs. g.v.w Trucks, commercial, diesel, over 19,500 lbs. g.v.w Buses, gasoline, commercial Passenger cars and chassis, new Replacement parts, including engines and bodies Motorcycles and parts Watercraft _ __ Barges Tractors, parts, and accessories Tracklaying tractors Parts for tracklaying tractors Pneumatic tires and casings, except aircraft Tires and casings, truck and bus. Tires and casings, passenger car Tires and casings, other Inner tubes, except aircraft Automobile lubricating oils Automotive engine oil Automotive gear oil _. _ Value $14, 393, 756 11.288,221 677, 344 785, 871 113, 695 174. 964 1,302,890 140.210 83, 378 81, 178 5, 583, 436 2, 054, 979 16,331 989, 837 750,000 493, 920 274, 080 219, 840 504, 197 211,878 140, 916 151, 403 38, 532 1,079,049 1,041,924 37, 125 1 g.v.w. = Gross vehicle weight. Source: U.S. Bureau of Census. Metal Manufactures American exports of metal manufactures to Kuwait went primarily to two economic sectors — petroleum operations and construction activity. Of $7.8 million of metal manufactures shipped in 1961, about 85 percent were tubes, pipes, and struc- Table 7. — U.S. Exports to Kuwait of Metals and Metal Manufactures, 7967 Type Total Iron and steel mill products, rolled and finished, total Seamless standard pipe, steel, black Seamless oil country pipe, carbon steel Metal manufactures, total Steel pipe fittings Steel structural shapes, fabricated.. Other Value $7. 762, 558 1,023,178 320, 009 258, 325 6, 649, 033 302, 325 5, 255, 294 90, 347 Source: U.S. Bureau of the Census. 10 tural shapes (table 7). Major competitors of the United States are Belgium, the United Kingdom, West Germany, and the Netherlands. There are presently no major steel-consuming manufacturing industries, and none are projected. There are some small metalworking shops making wrought iron furniture, fences, grilhvork, etc., but the bulk of Kuwait's requirements of metal manu- factures are imported. According to Kuwait iron and steel import data, purchases dropped sharply in 1961 from 1960, to 45,800 from 115,000 metric tons. The drop is believed to reflect a respite of activity in the const ruction indust ry . Machinery Machinery is the largest category of U.S. exports to Kuwait, being valued at about $20 mil- lion in 1961 (table 8). These were mostly indus- trial machinery and parts, much of which was Table 8. — U.S. Exports to Kuwait of Machinery, 7967 Type Value Total_ $19 985 924 Electrical machinery and appliances _ ._. Household refrigerators . ... 3. 967. 988 527 263 Television receiving sets_ __ _. _. 512, 234 Communication and signal 'wire and cable. __ 407, 458 Power generating machinery 1. 214. 577 Fire-tube power boilers Internal combustion engine pa'''.s and accessories Construction, excavating, and mining machinery. . 424. 304 572. 974 5, 128, 167 Loaders, new, wheeled or crawler. _ _ Graders, self-propelled 466, 725 235. 799 Rotary drill rips, 250 horsepower and over . 487, 415 Rotary rock drill bits, containing tungsten carbide.. 507, 167 Petroleum field equipment, miscellaneous . ... Industrial machinery and parts _. . _. 1. 007. 320 9. 559. 976 Centrifugal refrigerating units Self-contained commercial refrigerators and freezers _ .. Self-contained air-conditioners: Under 2 ton 509, 275 434. 491 1 565 837 Over 2 ton 98, 097 Centrifugal pumps, power driven 484. 702 Heat exchanges and parts, miscellaneous 1,250, 560 Industrial separators and collectors, and parts, miscellane- ous -. _ ... 2. 026, 399 Office, accounting, and computing machines ... Other 52, 225 62 991 Source: U.S. Bureau of the Census. air-conditioning and refrigeration equipment, $9.6 million ; construction, excavating, and mining machinery, largely for the petroleum industry, $5.1 million ; electrical machinery, $4.0 million ; power generating equipment, $1.2 million. As might be expected, much of the imports comprise air-conditioning and refrigeration equip- ment, and equipment for the oil industry. Tele- vision receivers valued at $512,000 were imported in 1961. Kuwait's fledgling television system should provide opportunity for additional sales, but U.S. sets will require modifications to receive the European CCIE transmitting system. As of March 31, 1962, there were approximately 8,000 television sets in Kuwait. In the field of household appliances, the United States supplied about 85 percent of the air- conditioners and 50 percent of the refrigerators imported. Demand for other appliances is still limited; however, the next few years should see growth in consumers' appetites for other articles of convenience. Price will be an important com- petitive factor. Office machine, sales are small, but a market may develop if adequate servicing is assured. Kuwait is interested in furthering industrial- ization, an attitude which points toward oppor- tunity for continued and expanded exports of machinery and light shop equipment. Proposals from purveyors of "turnkey" operations would probably receive the attention and interest of many Kuwait entrepreneurs. The heaviest com- petition in the field of machinery is expected to come from the United Kingdom and West Germany. Chemicals There is as yet no large demand for chemicals in Kuwait. The import emphasis is on chemical- derived products, such as paints and medicinals. In 1961, the United States shipped to Kuwait $1.7 million worth of chemicals and related prod- ucts, (table 9). The major groups were chemical specialities (including flavors and extracts), paints, soap, and medicinals. The United King- dom is the major supplier of paints, but U.S. products are popular and their sales could expand. The rising standard of health in Kuwait augurs an increase in demand for pharmaceutical products. Table 9. — U.S. Exports to Kuwait of Chemicals and Related Products, 7 967 Type Total Medicinal and pharmaceutical preparations.. Chemical specialities Industrial chemicals Pigments, paints, and varnishes Ready-mixed paints, stains, and enamels Soap and toilet preparations Coal tar and products Source: U.S. Bureau of Census. Value $1,712,319 113, 777 769, 992 69, 775 598. 506 297, 576 156. 145 4. 144 11 To Increase Sales of US. Products in Kuwait US. Exporters Should \/ Know the market. v 7 Endeavor to keep prices as low as feasible. V Offer more liberal credit terms. \ ' Give careful consideration to the selection of an agent. V Adapt the product to the market. It is a price-conscious market; a simple but effective product usually has wide acceptance. V Make sure that adequate servicing facilities are provided. V Be ready to deal in small orders. V Quote c.i.f. whenever possible. \ Send catalogs to the Chamber of Commerce and the U.S. Embassy in Kuwait. 12 CHAPTER III Marketing Facilities and Procedures CHANNELS OF DISTRIBUTION Kuwait consist of a single marketing area. The town of Kuwait, and its suburbs, has a population of about 150,000. Other centers of population, including the town of Ahmadi, headquarters of the Kuwait Oil Co., account for an additional 170,000 people. The people, ayIio are mostly Arabs, total about 321,000, representing an increase of 500 percent since World War II and almost 60 percent since 1957. According to official Kuwait figures, only slightly over half of the population are indigenous Kuwaits. Since the beginning of oil exploration, the indigenous population has been augmented by an influx of immigrants from nearby countries who have found work in the petroleum industry, construction activities, or various Government development projects. Most of the immigrants have come from Jordan, Iraq, Iran, Palestine, Syria, Lebanon, Oman, Pakistan, and India. In addition, there are approximately 2,500 British nationals and 450 Americans. Kuwait has been and continues to be an entrepot for nearby countries; substantial quan- tities of foodstuffs and consumers' goods are transshipped to Saudi Arabia, Iraq, and other neighboring areas. Most observers expect that Kuwait's role as an entrepot in the Persian Gulf will continue to expand. Almost all Kuwait merchants are generalists importing on their own account. A typical merchant acts as agent, importer, and distributor for a number of products and, whenever the occasion arises, does part-time contracting. There is little wholesaling, the agent-importer usually being the retailer as well. Of the 5,000 retail establishments in Kuwait, about 150 of the larger merchants control the market and form a rather exclusive and influen- tial community within the country. Few of the firms established during the early days of Ku- wait's expansion and development have failed to keep pace with the state's mounting commercial tempo. Western-educated younger members of the old merchant families are contributing new energy and streamlined methods to the traditional business skills of the older members. IMPORT REGULATIONS AND PRACTICES Licensing and Exchange The only products requiring an import license are firearms, pork and pork products, and liquor. Drug products may be imported only by hos- pitals, doctors, pharmacies, and the oil companies. A relatively low ad valorem duty of 1 percent applies to all imports except liquor, which is dutiable at 50 percent ad valorem. Products imported on behalf of the Government are exempt from duty. Kuwait is a member of the sterling area, and its official currency, the Kuwaiti dinar, is on a par with the British pound sterling; i.e., £1 = US$2.80, thus US$1 = 0.357 Kuwaiti dinar. The dinar is divided into 1,000 fils; 50 fils equal 1 dirham. Kuwait possesses substantial funds in pounds sterling, which are easily convertible to dollars. Dollars at the official rate are made available through the Kuwait Government for the pur- chase of goods from the United States. Also dollars, pounds sterling, and almost all Middle Eastern currencies can be obtained on the local free money market. The difference in the price of dollars between the bank and the free market is infinitesimal. 13 Kuwait's vast oil resources spi Courtesy Kuwait Oil Co. Drilling. a )~J 8G-5B-SW0 Operating "well-head manifold assembly." Courtesy Kuwait Oil Co. onomic and social development Courtesy Kuwait Oil Co. Shipping. Refining. Courtesy Kuwait Oil Co. Shipping Documents and Packing The documents required for shipments to Kuwait include the commercial invoice, a bill of lading, certificate of origin, and a packing list. U.S. regulations require a shipper's export decla- ration and a destination control statement. A consular invoice for imports from the United States is not required. Sanitary certificates are not required for the import of plants or plant products, or animals or animal products. It is not required to mark goods with the country of origin. The outside marking on each package should show the name of the shipper, the name and address of the consignee, the weight of the package, and the number of the package (if more than one in the same shipment) ? U.S. exporters may find the export guarantee or export credit insurance offered through the facilities of the Export-Import Bank to be helpful in arranging financing of foreign sales. Informa- tion on these programs is available through local banks or from the Export-Import Bank, 811 Ver- mont Avenue, Washington 25, D.C. A high standard of export packing is essen- tial because of the long sea voyage, the high tem- peratures prevailing during much of the year, and the likelihood of transhipment. Payment Arrangements In the past, Kuwait imports were usually cov- ered by irrevocable letter of credit, a mode of pay- ment apparently still in demand by most U.S. ex- porters. Recently, with the growth of Kuwait as an important trading area, many European and Japanese suppliers have cultivated the market in great part by liberalizing credit terms. The re- luctance of most U.S. exporters to offer credit terms to worthwhile clients has been a retardant to U.S. sales. Often Kuwaits express sensitivity about the rigid terms of sale of many U.S. exports. Banking and Insurance Banking facilities in Kuwait are up to date. There are currently five banks : The Kuwait Na- 1 For further details on shipping documents, see WTIS "Prepar- ing Shipments to Kuwait." pt. 2, No. 57-10-t. tional Bank, the British Bank of the Middle East, the Kuwait Credit Bank, the Kuwait Commercial Bank, and the Gulf Bank. The Kuwait Credit Bank is a Government en- tity formed to provide loans to various enterprises. The others are commercial banks. The current bank rate on ordinary commercial loans is 5 percent. Dollar letters of credit are obtained readily at 5-percent interest, plus a sell- ing charge of one-sixteenth percent a month. The charge is 7 percent when letters are past due. Most Kuwait merchants now insure their own shipments. The ones who neglect to take the ini- tiative in doing so rarely object to being billed for marine insurance taken out by the shipper. All kinds of insurance is available locally. TRANSPORTATION AND COMMUNICATIONS Recent years have witnessed substantial prog- ress in the development of Kuwait's transportation and communication facilities. Plans are advanc- ing for the construction of paved roads connecting Kuwait to neighboring countries. Within the state, the paving of streets is well underway. Kuwait was founded in its present location be- cause of the good but shallow natural harbor at hand. July 1960 marked the opening of an ex- panded seaport with a 33-foot-deep water quay of prestressed concrete capable of berthing four ships up to 600 feet in length, plus additional berths for two ships up to 550 feet in length. Fa- cilities are also available for smaller craft. The port of Kuwait handles all types of cargo except crude oil, which is offloaded from Mina al- Ahmadi. In 1960, imports totaling 1,019,700 tons entered the port of Kuwait. Air transportation serving Kuwait has increased significantly. Arrivals and departures totaled over 200,000 in 1960, compared to only 44,000 in 1955. Kuwait's new international airport which was opened in February 1962 is served by 16 com- mercial airlines. Air traffic between Kuwait and Beirut, Lebanon, is especially active; there are about 20 weekly flights each way. An excellent paved road connects Kuwait to Basra, Iraq. Desert tracts subject to heavy truck traffic reach Dhahran and Riyadh, Saudi Arabia. Two paved highways link Kuwait with Ahmadi, 16 the headquarters of -the Kuwait Oil Co. Plans call for about 1,500 miles of roads and streets to be paved in Kuwait; this project is more than half completed. The number of motor vehicles in use is about 45,000, proportionally one of the world's greatest traffic densities. Kuwait has a fully automatic telephone ex- change of 6,000-line capacity. Long-distance calls can be made to Basra, Bahrain, and eastern Medi- terranean ports and Western Europe. There is also an efficient international cable and telegraph service. Kuwait operates a radio station equip- ped with long- and medium- wave transmittal power of 50 and 100 kilowatts, respectively. Plans are underway for the expansion of the telephone network. All the communication facilities are Government owned. AIDS TO MARKETING Services by U.S. Agencies Businessmen unacquainted with the methods and characteristics of doing business abroad, in- cluding Kuwait, will find their local banks and chamber of commerce good sources of advice and guidance. The foreign departments of the lead- ing U.S. banks in metropolitan areas are equipped to give direct service to foreign traders, and smaller banks usually can help by Avorking through larger correspondent banks. Assistance relating to marketing and general economic and commercial conditions in Kuwait can be obtained from the U.S. Department of Commerce, Washington 25, D.C., or from the 3-4 field offices of the Department of Commerce lo- cated in principal cities of the United States. "Aids for American Foreign Traders," which describes practical aids offered by the U.S. De- partment of Commerce, is available without charge through Department of Commerce field offices. Advertising Advertising is carried on in Kuwait mostly through the newspapers, window displays, road- side signs, movie slides, and the distribution of small articles carrying the donor's name. No ad- vertising is carried by the state-owned radio and television broadcasting systems. Although con- sumers appear to have an increasing awareness of brand names and quality products, price is still a key factor in consumer selections except for such products as air-conditioning units, automobiles, and cigarettes. Thus, the efficacy of advertising is limited to certain groups of products. There are no marketing research organizations in Kuwait. However, the Chamber of Commerce there is often able to furnish information about marketing;. Chamber of Commerce A Kuwait Chamber of Commerce was founded in 1959. Its offices include a reference library of commercial directories, reading material, and sam- ples. The chamber undertakes arbitration and trade complaint services for Kuwait merchants. Trade inquiries from the United States may be published in the chamber's periodic newsletter. Kuwait has no formal trade associations. Government Representation In Kuwait, the United States is represented by an Embassy. Business travelers are urged to call on the Commercial Staff and to exhibit their cata- logs and other literature in the Embassy's commer- cial reading room. Kuwait is represented in the United States by the Embassy of Kuwait located at the Shoreham Hotel, Washington, D.C. BUSINESS CUSTOMS IN KUWAIT Arabic is the native and official language of Ku- wait. Most Government officials and merchants speak and understand English, and familiarity with the English language is spreading. The usual business hours from May to October are from 6 a.m. to 12 noon and from 4 p.m. to 7 p.m. During the remainder of the year, the hours are from 7 a.m. to 12 noon and 3 to 6 p.m. Holidays are frequent and variable and are often decreed only a few hours in advance of their celebration because of the use of the lunar calendar, which depends on the sighting of the new moon. Friday is the official weekly holiday. Fixed holidays are January 1, New Year's Day: February 25, the anniversary of the accession of the ruler; and June 19, Independence Day. 17 International Marketing Services The Department of Commerce provides a host of practical international marketing aids for the new or experienced ex- porter. For example: In 1961, the Department of Commerce di- rected more than 6,500 specific Export Oppor- tunities to American companies. These "offers to purchase" U.S. goods are gathered by com- mercial officers at U.S. Foreign Service posts overseas. If you are not being advised of op- portunities in your field — and want to be — notify your Commerce Department Field Office right away. Trade Lists, compiled by these Foreign Serv- ice Officers, catalog all significant and reliable firms which import American commodities. These lists of overseas importers and distribu- tors, classified by commodities, may be pur- chased from any one of the 34 Field Offices of the Department of Commerce, or from the Bu- reau of International Commerce, Department of Commerce, Washington 25, D.C., for $1 each. International Commerce, the Department's weekly magazine for export-minded business- men, reports each week on hundreds of oppor- tunities for export sales of specific U.S. prod- ucts. The subscription price of this magazine is $16 a year. Checks should go to the Super- intendent of Documents, U.S. Government Printing Office, Washington 25, D.C. World Trade Directory Reports are available on any firm in any Free World country. Pre- pared by U.S. Foreign Service Officers overseas, they describe the operations of the company and list products handled, manufacturers from whom it imports, size and reputation of the company, its capital, and other pertinent facts. Reports are available from the Field Offices or from the Bureau of International Commerce, Department of Commerce, Washington 25, D.C. Price: $1 each. >3SS3SSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS3SSSSSSSSSSS2SS3S3SSSSSSS& Trade Contact Surveys also are made for American business firms by Foreign Service Posts to help them find aggressive sales agents and representatives overseas. On request, a canvass of a particular foreign city will be made and a report obtained on at least three com- panies which meet an American firm's specific requirements. A charge of $50 is made for each survey. An Agency Index is maintained in each American Embassy and Consulate. It lists names and addresses of local companies which carry products of specific U.S. manufacturers. If a U.S. firm has an agent overseas, the Com- mercial Officer at the American Embassy or Consulate can supply the representative with information from this Agency Index and also assist in making business appointments. From this Agency Index the Commercial Officer can also direct businessmen in his area to a U.S. company's agent. Another source of overseas leads for U.S. businessmen are the reports of business pro- posals received by U.S. Trade Missions, Trade Centers, and exhibits at international Trade Fairs. All of these are available through the Department's Field Offices. With the aid of their extensive files and new data received daily, Field Offices can help U.S. manufacturers to determine which countries are the best potential customers for their products, provide information on any country's import regulations and tariffs, exchange controls and other regulations that may be applicable to a company's products, and arrange for U.S. busi- nessmen to consult specialists in Washington. grE9r*^5s? r *i 18 CHAPTER IV Guidelines for U.S. Businessmen IN THE last analysis, increasing exports from the United States to Kuwait depends on the energy and ingenuity of the individual American exporters. The area of U.S. Government assist- ance encompasses trade facilitation and promotion, as well as indicating promising sales opportunities in a foreign country. Utimately, however, the businessman must be prepared to pursue the pro- spective market and consummate the sale. Increased exports are the fruit of careful study. The following observations about the Kuwait market are offered for consideration : (1) The Kuwait market is free and open. At present there are no licensing or quota restrictions of any kind, and foreign exchange is fully obtain- able for imports from all countries. (2) Consumer goods are sold in Kuwait on the basis of price and technical goods usually on the basis of quality and performance. Overall, price is the more important factor since even in the case of technical goods, the Kuwait merchant is not likely to impute greater value in a very expensive product which may be actually cheaper in the long run. A select luxury market in Kuwait is over- shadowed by a new group of consumers who are demanding cheap and functional goods. (3) The Kuwait merchant prefers and, when feasible, should be offered the direct agency for the American product rather than a subagency. The typical Kuwait feels that he will be a far more effective salesman if he is the sole boss in his own territory; he is loathe to go through an agent located in another country in order to obtain U.S. merchandise. (4) Americans are urged to establish a personal relationship with their Kuwait agents. Business in the Near East is imbued with "the personal touch," and success is dependent to a great degree on the esteem in which the agent is held by his clients. It is charged that few American ex- porters make an effort to know their agents per- sonally or to give them support with, for example, advertising materials. Graph 2.— U.S. Exports to Kuwait, 1960-61 MACHINERY, MOTOR VEHICLES, AND METAL MANUFACTURES ACCOUNT FOR MORE THAN TWO-THIRDS OF THE VALUE OF U. S. EXPORTS TO KUWAIT Source: Bureau of the Census, U- 5. Department of Commerce, 19 (5) U.S. exporters, in the opinion of Kuwait merchants, lag in extending and arranging sales terms. They comment that, with a few exceptions, U.S. suppliers ship only on letter of credit, and even after many years of profitable relations de- cline to relax credit terms to their agents. (6) Freight rates as a component percentage of total cost require careful study. According to Ku- wait merchants, the prices of U.S. goods are often driven out of competitive range because of trans- portation charges from the factory to Kuwait customers' shelves or showroom. (7) The sale of many products is made and maintained on the basis of adequate spare parts and competent servicing. Principals would be wise to ascertain that agents maintain adequate facilities in this regard. (8) U.S. exporters should be ready to deal in small orders. An order which appears small to the U.S. exporter may be quite a substantial one in the estimation of the Kuwait importer. Also, if U.S. exporters are to take full advantage of the Kuwait market, they must be ready to cater to its special needs. Often a product which suits the U.S. market very well needs a modification to suit local tastes and specifications, for example, elec- tric current requirements. 3 (9) American sales in Kuwait could be in- creased by the simple device of mailing catalogs to the Chamber of Commerce in Kuwait. Many Kuwaits point out that they are interested in goods from the U.S. but have few catalogs to consult. Use could be made of the commercial library maintained by the U.S. Embassy in Kuwait which is consulted by local businessmen. (10) An effective way to tap the market is to visit the area. A visit affords an opportunity for making a firsthand appraisal of the market and is essential in selecting an agent or in furnishing ma- terial and assistance to the agent already on board. A visit also serves to give the traveler a sense or "flavor" of the country. The traveler will derive greater benefit if he briefs himself beforehand on the interesting history, customs, and characteris- tics of the area. 3 Kuwait's electric current is alternating, 50 cycles. Voltage is 240/415, 3 phase, 4 wire, distribution system with a voltage variation of ±10 percent. 20 CHAPTER V Information for Visitors THE only practical way to reach Kuwait is by air. Connections with adjoining and nearby countries are good. No U.S. airlines serve the city, but connections can be made with Pan Ameri- can or Trans World Airlines in Beirut, Cairo, Dhahran, Teheran, Bombay, and other cities in the area. Most Kuwait hotels are not elaborate, but they are adequate. Rates at hotels where American businessmen usually stop range from $14 to $20 a day including meals. Taxis afford the only local public transporta- tion. The businessman should allot sufficient time for a thorough personal round of that portion of the local business community which is interested in his product. Traditionally the tempo of Arab life is not based on precise time schedules, and a visitor will find that the Kuwait tends to be un- comfortable if rushed. In opening a conversation, it is usual to spend a few moments in polite small talk. Normally, one does not inquire about the health or where- abouts of any female member of an Arab's family. Many Americans may find the "ma j lis" style interview disconcerting; this is an interview in which the Kuwait discusses business with you while several others may be seated in the same room either waiting their turn or joining help- fully in your conversation. Although the Ameri- can sense of privacy may be wounded, the Arab sense of politeness is served by not keeping friends and callers waiting in an anteroom. Few visitors leave a business or government office without the ubiquitous cup of Arab coffee over which business or the weather is discussed. It is customary for a visitor to be offered coffee, tea, fruit juice, or a soft drink, and a visitor mak- ing several calls during a day can count on a gen- erous intake of nonalcoholic beverages. It is a customary courtesy for the Arab host to accom- pany his visitor to the street or waiting car. Islam proscribes the consumption of alcoholic beverages, and therefore does not have cocktail lounges, bars, or similar public establishments. Much entertaining is done in the home. Visitors will find their Arab hosts generous and gracious. The climate from May to mid-October is very hot. Lightweight clothing is most practical in this season. During the rest of the year, spring- weight or winter clothing may be worn. A vest or sweater is handy in anticipation of occasionally brisk evenings in the fall and winter seasons. All required medical services are found in Ku- wait and the standard of practice is on the -whole adequate. Public health is fair and progressively improving. Medical services at all state hospitals are free. There is an American Mission Hos- pital in Kuwait with three American doctors on the staff. Travelers entering Kuwait require a valid visa and evidence of smallpox immunization. Infor- mation on other immunizations which are recom- mended for travel in this area is available from the U.S. Public Health Service. Visas for Ku- wait are available from the Embassy of Kuwait, Shoreham Hotel, Washington, D.C. The weekly holiday is Friday; Saturday through Thursday are business days. Business- men should avoid coming during Ramadan, the Islamic month of fasting, since the commercial tempo of the state slows down considerably. The occurrence of the month of Ramadan varies from year to year. Christian services are held in Kuwait by con- gregations of the Roman Catholic, Eastern Or- thodox, Anglican, and Reformed (Protestant) Churches. 21 U.S. DEPARTMENT OF COMMERCE FIELD OFFICES SERVE THE BUSINESS COMMUNITY The 34 Field Offices of the U.S. Department of Commerce are organized to help business by making the varied resources and services of the Department of Commerce available to business- men. Each Field Office is a small-scale Department of Commerce in its own locality and carries out the Department's programs to expand the Na- tion's export trade. If you want to sell your product abroad, but don't know quite how to start, you'll find a talk with your Commerce Department Field Office manager highly worthwhile. He can answer many of your questions immediately; and he can find the answers to all the others via rapid communication with Washington. Field Office managers can help you size up your prospects for foreign sales, aid you to select the most likely market areas, and advise you on the best ways to study and reach those markets. Your Field Office manager will also advise and assist you in matters pertaining to export financing, insurance, and trade opportunities handled by the Agency for International De- velopment of the State Department, Export- Import Bank, Foreign Credit Insurance Cor- poration, and many other agencies. Each Field Office maintains an extensive busi- ness library of Government and private reports, publications, periodicals, and directories deal- ing with world trade, including the export and import regulations of the principal nations of the world, reports on economic conditions and changes in other countries, analyses of the flow of commerce around the world, and the Depart- ment's periodicals, the weekly International Commerce and Commerce Business Daily. In each area, the Field Office manager also serves as Executive Secretary of the Regional Export Expansion Council, a group of experi- enced international traders selected by Secre- tary of Commerce Luther H. Hodges to spear- head the export expansion drive locally. Your Field Office manager will be happy to arrange for you to talk with a Council member for advice and help. Albuquerque, N. Mex., U.S. Courthouse. CHapel 7-0311, Ext. 2386. Atlanta 3, Ga. ? 75 Forsyth Street NW. J'Ackson 2-4121, Ext. 6000. Boston 10, Mass., Room 230, 80 Federal Street. CApi- tol 3-2312. Buffalo 3, N.Y., 504 Federal Building, 117 Ellicott Street. TL. 3-4216. Charleston 4, 'S.C., Area 2, Sergeant Jasper Bldg., West End Broad 'Street. Phone: 722-6551. Cheyenne, Wyo., 207 Majestic Bldg., 16th and Capitol Avenue. Phone: 634-2731. Chicago 6, 111., Room 1302, 226 West Jackson Blvd. ANdover 3-3600, Ext. 743. Cincinnati 2, Ohio, 809 Fifth Third Bank Bldg., 36 East Fourth Street. DUnbar 1-2200, Ext. 345 and 346. Cleveland 1, Ohio, 4th Floor, Federal Reserve Bank Bldg., E. 6th Street and Superior Avenue. CHerry 1-7900. Dallas 1, Tex., Room 3-104, Merchandise Mart, 500 South Ervay Street. Riverside 8-5611. Denver 2, Colo., 142 New Custom House, 19th and Stout Street. KEystone 4-4151, Ext. 598. Detroit 26, Mich., 438 Federal Bldg. WOodward 3-9330, Ext. 510. Greensboro, N.C.. Room 407, U.S. Post Office Bldg. BRoadway 3-8234. Honolulu 13, Hawaii, 202 International Savings Bldg., 1022 Bethel Street. 58831, Ext. 464. Houston 2, Tex.. U.S. Courthouse and Federal Office Bldg., 515 Rusk Avenue. CApitol 2-7201. Jacksonville 2, Fla., 512 Greenleaf Building, 204 Laura Street. ELgin 4-7111. Kansas City 6, Mo., Room 2011, 911 Walnut Street. BAltimore 1-7000. Los Angeles 15, Calif., Room 450, Western Pacific Bldg., 1031 S. Broadway. Richmond 9-4711, Ext. 1261. Memphis 3, Tenn., 212 Falls Building, 22 N. Front Street. JAckson 6-3426. Miami 32, Fla., 408 Ainsley Bldg., 14 NEast First Ave- nue. FRanklin 7-2581. Minneapolis 1, Minn., Room 304, Federal Bldg., 110 South Fourth Street. Phone: 339-0112. New Orleans 12, La., 1508 Masonic Temple Bldg., 333 St. Charles Avenue. Phone : 529-2411, Ext. 6547. New York 1, N.Y., 61st Fl. Empire State Bldg., 350 Fifth Avenue. LOngacre 3-3377. Philadelphia 7, Pa., Jefferson Building, 1015 Chestnut Street. WAlnut 3-2400, Ext. 591. Phoenix 25, Ariz., New Federal Bldg., 230 North First Avenue. Phone: 261-3285. Pittsburgh 22, Pa., 1030 Park Bldg., 355 Fifth Avenue. GRant 1-0800, Ext. 785. Portland 4, Oreg., 217 Old U.S. Courthouse, 520 SW. Morrison Street. CApitol 6-3361, Ext. 421. Reno, Nev., 1479 Wells Avenue. Phone : 2-7133. Richmond 19, Va., 2105 Federal Building, 400 North 8th Street. Phone: 649-3611. St. Louis 3, Mo., 2511 New Federal Building, 1520 Mar- ket Street. MAin 1-8100. Salt Lake City 1, Utah, 222 SW. Temple Street. DAvis 8-2911, Ext. 341. San Francisco 11, Calif., Room 419 Customhouse, 555 Battery Street. YUkon 6-3111. Savannah, Ga., 235 U.S. Courthouse and Post Office Bldg., 125-29 Bull Street. ADams 2-4755. Seattle 4, Wash., 809 Federal Office Bldg., 909 First Avenue. MUtual 2-3300, Ext. 492. 22 U.S. GOVERNMENT PRINTING OFFICE:t963 iiftf A00007iafl^st 1 5