We are acting as coordinator between Office of Defense Mobilization and Department of Defense to promote the development of an alternate type of marinepropulsion unit for Maritime Administration ships. We are chairmaning a task group to help the diesel-engine manufacturers develop suitable units for this service. This is important because of the large deficiency in capacity for making steam turbines and reduction gears for this service.

United recently a certain manufacturer (R. C. Mahon Co.) has been doing subcontract work for another manufacturer (Baldwin-Lima-Hamilton Corp.) with large tools which they leased from the Navy. Their lease expired and they had finished this subcontract work. We found that they could do important subcontract work for a large steam-turbine manufacturer (Westinghouse Electrict Corp.) if the Navy would extend their lease on the machine tools. We were able to coordinate this lease extension.

We collected information for various manufacturers concerning the program for new Spanish airbases.

We are acting as liaison office between the electric utility companies and the manufacturers of power boilers and steam turbogenerators to develop certain standardized units. This will accomplish lower costs and quicker delivery in the important field of power generation.

We prepared for the Nationalist China Government detailed figures on costs of building thermal and hydro powerplants and on the costs of generating power in such plants. This will help business for the manufacturers in the United States since the Nationalist China Government buys most of this equipment in this country.

We have taken an active part in the Paris conference which were devoted to simplifying and redefining the items of nonstrategic equipment which can be exported behind the Iron Curtain.

Memorandum to: Mr. George W. Auxier, Executive Secretary.

JUNE 9, 1954.

From: Nathan D. Golden, Director, Scientific, Motion Picture and Photographic Products Division.

Subject: Activity in service to business-January 1 to June 1, 1954.

In compliance with your memorandum of May 26 on the subject consideration, there is attached hereto a list of the significant services rendered by this Division.

SCIENTIFIC, MOTION PICTURE AND PHOTOGRAPHIC PRODUCTS DIVISION

1. We have held several conferences and are working closely with the jeweled watch industry in their endeavor to establish a recognized essential status in defense and, related thereto, acquire a better degree of tariff or similar protection from the destructive competition of Swiss producers.

2. A conference of 32 representatives of the 1,500 precision-instruments manufacturers held on March 10, cited as top-priority problems—

(a) Competition from foreign imports in the optical instruments and laboratory balances fields.

(b) Activation of an industrial protection and production continuity study.

(c) Increased appropriations to the National Bureau of Standards for requisite certification and testing.

(d) Curtailment of the Bureau of Foreign Commerce Positive List and the expediting of export applications.

Since then, steps have been taken to alleviate the impact but, to an appreciable extent, greater congressional support is also requisite.

3. Arrangements have been concluded for convening a representative conference group of the photographic products manufacturers, on June 22.

4. Plans were likewise consummated to hold a conference of medical, dental, surgical, and hospital equipment manufacturers, but this has been postponed until the fall.

5. In connection with our continuity of production obligation, we have conferred with representatives of Eastınan Kodak Co., American Optical Co., Powers Regulator Co., and similar discussions are planned with other strategic producers.

6. In connection with the subject of Government Competition With Private Industry, 24 trade associations in our field were queried but only 3 evinced any concern, to wit:

(a) Orthopedic Appliance & Limb Manufacturers Association.

(b) American Hearing Aid Association.

(c) International Association of Blue Print and Allied Industries. Following a preliminary investigation, the first two were forwarded to the Hoover Commission and the third is still under consideration.

7. Furthermore, in the interest of mobilization, industry specialists of the Division have been invited and have visited the following facilities:

(a) Leeds & Northrop, Philadelphia, Pa.

(b) Brown Instrument Co., Philadelphia, Pa.

(c) American Instrument Co., Silver Spring, Md.

(d) Hamilton Watch Co., Lancaster, Pa.

(e) Eastman Kodak Co., Rochester, N. Y.

8. Inasmuch as there has been no census of manufactures since 1947, the Division and Mr. Honeywell have made overtures to the Scientific Apparatus Makers Association, designed to impress upon them the promotional advantages inherent in expanding their coverage, scope, and detail of periodic output and related statistics.

9. An optical task group was convened for the purpose of determining the current essentiality of lens grinders and polishers with reference to the Manpower Act and draft deferment.

10. The following studies, which are of indirect value to industry mobilization, are in process of development for the Industry Evaluation Board:

(a) Analytical balances.

(b) Electronic test equipment.

(c) High speed and aerial cameras.

(d) Nuclear radiation detection devices.

11. After more than a year of inaction, the Office of Defense Mobilization has evidenced interest in our proposal that the Government establish and maintain a revolving sensitized film stockpile. As soon as requirements are known, steps will be taken to work out an operating plan with industry.

12. As an indirect service to business, the Division contributed periodic reports on the current business outlook to the President's economic advisers. 13. Cooperation has likewise been extended to the Office of Technical Services in evaluating and commenting upon Federal specifications, proposals, and revisions, in connection with bids on Government procurement, of significance to industry.

14. Frequent letters are received from small-business establishments seeking domestic sources of special type components, such as bimetal thermostatic buttons; trademarked industrial process instruments; experimental or highprecision-type instruments; not readily identifiable in trade directories.

15. Advice has been accorded to contracts seeking guidance to acquire loans through the Small Business Administration, notably the Machlet Laboratories and Grant Photo Products Co.

16. Inquiry reference services of nontrade publications likewise seek our counsel by phone or letter on behalf of nontechnical subscribers, investors, or feature writers, desiring a perspective of a particular product or industry, particularly the lesser publicized scientific and process instruments. (Colliers, Curtis, Crowell, etc.)

17. Several organizations, considering the market prospects for new or modified types of products and instruments, have sought our advice. (Flexonics Corp., Lavoie Labs, Olin Industries, Chicago Forge & Iron Co.)

18. During this 5-month period, 36 tax-amortization applications were received and processed with reference to the following expansion goals: scientific instruments No. 176; surgical and medical equipment No. 198; military photographic equipment No. 81; sensitized goods No. 80.

19. The Scientific, Motion Picture, and Photographic Products Division has been delegated to serve as BDSA counselor and coordinator of the expansion goal No. 206 on research and development, laboratory facilities, and since March has evaluated 24 applications.

20. Indicative of the importance of scientific and photographic products in defense activities, 211 priority applications, or an average of 2 applications per day were processed as directives.

21. A sizable number of producers of medical, dental, surgical, and hospital equipment; optical, scientific, and process instruments; photographic goods,

appraisals. (Representatives firms so assisted were: American Sterilizer Co., enjoying oversea markets, have been and continue to seek our periodic appraisals. (Representative firms so assisted were: American Sterilizer Co., American Optical Co., Tracer Labs, Atlantic Electric Meter Co., Bell & Howell Co., Fairchild Camera & Instrument Co., du Pont Co.)

22. Prepared a comprehensive survey of legislative restrictions in foreign film markets for publication in the 1954 Film Daily Year Book.

23. During the next few months, we hope to see activated, a submitted program designed to acquire a series of short market reports on 12 basic commodity groups, pertinent to 40 major oversea markets.

24. At the request of the Motion Picture Association of America and the Society of Independent Motion Picture Producers, we have been attempting to secure market data from 70 Foreign Service posts.

25. The Director, member of the Subcommittee on Official Film Festivals, has been active in selecting films for oversea presentations at Cannes, France; Venice, Italy; Edinburgh, Scotland; which resulted in numerous awards.

26. Incidentally, producers of dental burs, precision microscopes, binoculars, cameras, and watches are worried by competition from Western Europe and Japan, even in our home market, and we are planning to keep them better advised as to oversea developments in support of protective as well as expansion objectives.

27. The Commercial Intelligence Division, Bureau of Foreign Commerce, consistently seeks our counsel as to import and export trade opportunities, the utility of trade lists, distribution practices, trade association and trade journal coverage, itinerary suggestions for oversea missions.

28. We have likewise been working harmoniously with other divisions of the Bureau of Foreign Commerce, on behalf of industrial contacts, pertinent to oversea tariffs, quotas, procurement, educational projects, publicity media requests, reciprocal trade agreements, and a host of miscellaneous considerations. 29. Additionally, we have been consistent contributors to Foreign Commerce Weekly, supplying import-export news items, market appraisals, and periodic statistical analyses of overseas trade. Furthermore, copies of such items are furnished our trade associations and journals for more specific dissemination. 30. An analysis was made of the Randall committee report proposals, as to the visualized effect upon those industries within the jurisdiction of this Division. For the guidance of those charged with evaluating the equities involved, reports showing production-import comparisons and problem citations have been rendered on dental burs, precision microscopes, binoculars, still-picture cameras, and jeweled watches. Incidentally, bills introduced in Congress to activate Randall proposals, notably modification of the buy-American laws and to double tourist import exemptions to $1,000, have been commented upon.

Also prepared and furnished basic information to Mr. Finkel, Cliston Publishing Co., engaged in preparing an article on the Randall report, for United States Chamber of Commerce monthly publication, Nation's Business.

JUNE 15, 1954.

To: Todd Wright, Assistant to the Administrator. From: Francis H. Winget, Acting Deputy Director, Shipbuilding, Railroad, Ordnance, and Aircraft Division.

Subject: Roundup of Industry Division activity in service to business (as of May 31, 1954).

In our last report on aid to business, this Division reported a failure, which was written up in the Wall Street Journal, Thursday, April 15, 1954, as follows: "A much more ambitious BDS effort also ended in failure. The Foreign Operations Administration was considering a big loan to India to finance an overhaul job on the Indians' railroad system. BDSA worked in vain for a proviso in the loan agreement requiring the Indians to order at least $20 million of the new railroad equipment from United States producers."

Through continual efforts since last December, I am very happy to report to you that there has been some progress made which may allow American locomotives and freight-car builders to compete in the worldwide bidding for the locomotives and cars destined for India with FOA funds. When the negotiations were first made, FOA/State insisted that GSA would let worldwide bids for these locomotives and cars which automatically made the chances of domestic contracts getting the bid nil, as we cannot compete pricewise either with the United 67271-55-pt. 1—22

Kingdom or Japan. Knowing this, this Division has met on several occasions with FOA, and on one occasion with our Ambassador to India, Mr. George Allen, and has succeeded in helping our American industry to some extent in competing in worldwide bidding for FOA-sponsored worldwide procurement.

Mr. Stassen has just signed and sent to the Bureau of the Budget for comments, a new procurement policy, covering industry in any critical labor area within the United States, which, in essence, is as follows:

PROCUREMENT POLICY CONTINGENT UPON DISTRESSED LABOR

1. If a company within a distressed labor area comes within 10 percent of the globe bid (worldwide) GSA will be instructed to give that bid to the American

concern.

2. If a company's bid (distressed labor area) is between 10 percent and 20 percent higher than the lowest worldwide bid, GSA is to forward all bids to FOA where they will take another look-see and possibly grant the bid to an American concern.

I am not at all happy about this arrangement, but it certainly is a step in the right direction, and any further help of the above nature I believe will have to come from the Congress in legislative changes.

Assistance has been given to the O. F. Jordan Co., East Chicago, Ind., manufacturers of railroad ballasting machinery and ditch-digging equipment. This company had never been interested in exporting their product until their vice-president, Mr. Dee, called upon the writer. With our help and advice they are planning to go into the export field.

Nationalist China, through FOA, is endeavoring to build a munitions plant which will manufacture 75 millimeter shells. It was found that neither FOA nor the Chinese had sufficient technology to order the correct machine tools for this production. This Division was responsible for getting the Jones-Lamson Machine Co., Springfield, Vt., representative, Mr. Roy M. Jacobs, who is an expert in this field, together with the Chinese technical mission and FOA, and at this writing it appears that the planning for the letting of the contracts for machinery is rapidly progressing, whereas before it was at a standstill.

This Division assisted the Cincinnati Advertising Products Co. by suggesting the proper Government contacts in order to enable them to ascertain the status of an old claim arising from a defense program contract.

Assistance has been given to manufacturers of ordnance equipment in locating sources for new business. We have had a number of cases of this kind due to the curtailment of Defense Department ordnance contracts.

Comprehensive reports have been compiled giving industry's views on the Randall Commission report in order that the Secretary would be fully cognizant of the industries' feelings in this respect. These reports covered the following fields: Small arms, shipbuilding and shipping industries.

We have also received industry's comment on approximately 10 pieces of legislation and passed this information on to the appropriate parties within the Department of Commerce.

Of course, we have numerous telephone calls and letters of inquiry which have been promptly answered and in each instance the industry representative making the call has expressed his sincere thanks for advice received.

JUNE 14, 1954.

To: George W. Auxier, Executive Secretary.
From: A. Henry Thurston, Director, Textiles and Clothing Division.
Subject: Services to industry.

1. Assisted the cordage and twine industry in presenting to ODM and to GSA the problems it faces in rotation of stockpile abaca.

2. Consulted with representatives of the National Cotton Council and assisted them in presenting their need for statistical data to the Bureau of the Census and to the Secretary's Office.

3. In connection with Government competition with industry, we have recommended steps toward the discontinuance of the Navy Ropewalk. Have arranged for discussions between industry representatives and Post Office Department officials regarding Government manufacture of mail bags, and are now looking into the situation regarding the manufacture of cotton duck at the Atalnta penitentiary.

4. Consulted with industry and assisted in questions of foreign competition in United States markets for brushes, cordage, knit gloves, and other textile commodities.

5. Complications resulting from the passage of the Flammable Fabrics Act have been kept under constant study and this Division has been in consultation with Government and industry representatives in helping to evolve a solution. 6. Assisted trade associations and individual firms in obtaining information through the Foreign Service for use in market surveys and in the investigation of severe competition from low-wage countries.

JUNE 15, 1954.

To: Mr. George Auxier, Executive Secretary, BDSA.
From: Walter L. Picton, Deputy Director, Water and Sewerage Industry and
Utilities Division.

Subject: Service to business.

From January 1, 1954, to June 1, 1954, this Division has rendered service to business which may be listed as follows:

1. We have prepared and released a study of the production and use of cast iron pressure pipe from 1913 to 1953, with projections for 1954 and 1955, showing separately the transmission and distribution sizes and the distribution of the smaller sizes of pipe according to end use, correlating same with our population growth, estimated average daily production of water, and the new housing program. A series of charts showed estimated quantities used by water and sewerage works for maintenance and repair, extensions to new housing and other waterworks improvements, and quantities used by other users (primarily industry, military, and export).

2. We have compiled by research and checking with all available sources a detailed study of the waterworks facilities of the large systems of the United States (560 in number) showing pertinent capacity and engineering data on each, such as safe yield of the watershed, volume of impounded storage, maximum capacity of transmission line, treatment plant rated capacity, treatment plant overload capacity, capacity of distribution pumps, volume of distribution storage, average daily production, maximum day usage, maximum month usage, number of services, and number of meters. This, with explanatory text outlining sources and uses for business purposes, will be released in a few days. 3. With the assistance and collaboration of the Interindustry Division of the Bureau of Labor Statistics we have prepared a research study of the distribution of the construction dollar expenditure in 1952 for water and sewerage works new construction. This, in tabular form, showed the breakdown for waterworks collection system, waterworks treatment plant, sewerage works collection system, sewerage works treatment plant, the proportion of money spent for overhead costs, machinery rental, fuel, labor, and principal items of material and equipment used in the construction of water and sewerage works. This study has been checked with many industry associations and sources, and with explanatory text outlining the uses for business purposes, it will be released within a few weeks.

4. We have completed research on the general trends of pipe uses in waterworks construction and maintenance and repair over a period of the last two decades. This shows by pipe sizes (mains, trunklines, and transmission lines) the types of pipe used (cast iron, steel, reinforced concrete and asbestos cement), with comparative total volume of expenditure for each year over the period from 1940 to 1954, inclusive. This study has been checked with the associations and some of the leading producers of the several types of pipe and is agreed to be realistic. Results of this study will be released soon.

5. We have completed an assembly of data on the activities of water well drilling. We have checked these data with other surveys and research and are combining them into a comprehensive report on water well drilling, showing the annual number of wells drilled by general categories of end use (irrigation, farm domestic, nonfarm domestic), municipal waterworks, industrial waterworks, with estimates of the tonnage of steel casing used by each, and the dollar volume of annual construction over a period of the last 15 years, with estimated annual material requirements (pumps, motors, copper wire, etc.).