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Moo., Feb. t. 1961
TO SET
W. Germany
Attractive
To Business
FRANKFURT, Germany (AP)
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West Germany is a growing
magnet for American business
and unless the Kennedy admin
istration restricts them U.S.
firms are expected to open more
and more subsidiary operations
here in 1961.
One new U.S. firm has put
down roots here every thre
weeks during the past two years.
according to the American Cham
ber of Commerce in Germany.
"If the recession at home getl
tougher," said influential Ameri
can businessmen here, there s
only one thing many American
companies can do to save their
necks get to Germany as fast as
possible and into a market that's
really expanding."
Whether the Kennedy adminis
tration will allow this trend to go
on is the big question, and the
recent flood of American capital
to Europe probably will be held
back for some months until Wash
ington makes up its mind.
The establishment of operations
in Europe by big American com
panies has been partly respon
sible for the drain on U.S. gold
reserves.
The scope of this drain is in
dicated by Germany's giant Man
nesmann Holding Corporation
which reports that in 1960, on
half of all private U.S. invest
ments made abroad were made
in Europe and that Americans
contributed 30 per cent of the to
tal capital invested by foreigners
in the common market area. -
From 1955-59. 33.6 per cent of
the $8.3 billion invested by Ameri
cans in the common market went
West Germany where they em-
loyed about half a million Ger
man workers at wages averaging
50 cents an hour.
So far the United States has ac
quired a third of all foreign
owned company share capital in
Germany, and is the chief foreign
shareholder in the Federal Re
public, followed by Britain and
the Netherlands.
In the past few years, 20 per
cent of the annual American in
vestments in Germany came from
direct transfers from the United
States, about 25 per cent from
U.S. funds raised abroad, and 55
per cent from income earned in
Germany and reinvested, officials
of the American Chamber of Com
merce in Germany report.
Many Americarfirms with Ger
man subsidiaries are connected
with the petroleum business, such
as the Cologne branch of the At
lantic Refining Co. of Philadel
phia, or with motors, such as
Ford's Cologne branch or the Gsn.
eral Motors ODel sufoiriinrv in
Ruesselsheim.
A healthy share are associated
with the wants of a gadget con
scious society - National Cash
Register, the Addressograph-Mul-tigraph
Corp. of Cleveland," Rem
ington Rand in Frankfurt lh
Container Corp. of America In '
Hamburg, Minnesota
Manufacturing Co. turning out
aDrasives m Duesseldorf.
Hundreds of others sip small
outfits making and selling every,
thing from shoe polish and tan
ning equipment to cosmetics and
brass screws.
Some of the businessmen an.
ciated with all these Ama-V,-
firms say their low nrnrliiA
costs allow them not only to sell
in r,urope, But to cnmnio in
Asian. African and South Ameri
can markets now partially or to
tally closed to higher priced U S.
made goods.
German Sailors
Give Memorial
To U.S. Families
ASTORIA (API sQri ,
the West German Navy ha-e
given $145 to a memorial fund for
01 seven men lost in a
sea disaster at the mouth of the
Columbia River.
The 122 German nir:.- j
en led men rai.,ed the money
for lh m "l. A spokesman
or the group said it was the cus
torn of the German seamen to
assist families of men ofl tt
The contingent is hero rec.mdi-
omng three LSTs (landing ship,
tank! pijrchad from .he United
Slates They expect to complete
he job in another few weeks and
'hen sad the ships back ,o cT
many. NIemori.1 funds like the one the
lifrm.in c -i . .. ..
, " . ldmll'es ol seven
Sl ncmP as sank
L i , oasl oaa vessels and th
V F3'bM fishhu boa L
rescue.
The county courthouse of Paso
sa Springs. Colo., is heaiwf h ht
'water direct from the hot springs
lot the region.
O O