EUROPEAN MACHINE TOOL SALES IN US TO SLUMP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500120118-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 1
• Document Creation Date: December 15, 2016
• Document Release Date: April 9, 1999
• Sequence Number: 118
• Publication Date: July 22, 1953
• Content Type: REPORT

Approved For Releas~ 2001/04/10 : CIA-RDP80-00809A000500120118-5
U.S. Officials Only
CONFIDENT:.AL
SECURITY II. FOR4AT I ON
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
International
European MacLtne Tool Sales in US to Slump
PLACE ACQUIRED
(BY SOURCE)
THIS IIS UNEVALUATED INFORMATION
DATE DISTR. Jul 53
NO. CF PAGES 1
NO. OF ENCLS.
SUPP. TO
REPORT NO.
1. For the past several years, because of lads of availability of US machine
tools; sale? of European machine tools in the US have soared. The import
volume of European machine tools is still r-ining US$k to US$5 million per
month. However, there have been a couple of developments recently which
we consider significant as far as f.ture sales of such tools are concerned.
2. Whereas for the past two years Europe..: machine tools imported into the US
were abeorbed almost immediately ay talustry, since J3.n^aary 1953 an Saareao-
ingly large or of these tocle are being consigned to warehouses.
3. D w fart that the market for European machine tools is beginning to slip
in also evi need. by tie fact that the association I head has been contacted
by a number of ealeamen, formerly handling European lines, who are looking
for other a l.)yment. These two indications of increased consumer resistance
give us theimprees'_on that there will be a considerable drop in imports of
$uropean tool. in the fairly near f'atuxe.
k. The competition from European machine tools has never caused any serious
injury to our industry In the US domestic n,.ecet. However, the tremenQtoui
growth of the machine tool industry in Western Europe is having, and will
continue to ham, a seiiqus affect on export sales of LIS machine tools.
5. In normal tlimae the US machine tool industry exported 25% to 30% of production.
As of 1953, US exports represent lees than 10% of production.
6. While ft is expected that there will be considerable mortality in the European
machine tool industry because too many producers are building the same types
of tools and1 there is iniofficient market for the productive capacity, import
and exchange controls will continue to severely limit the market which US
machine too' .producers can expect to find in Western Europe.
7. Almost invariably a would-be importer of US machine tools in Western Europe
is advised b~ his government to attempt to obtain a similar tool in his own
country, or aloewhere inlWeetern Europe. Even if he ie not able to do so,
he is not sure he will Set the import license or the US dollar exchange.
-end-
U,9. officials Only
C01V=SNTIAL
SECURITY INFORMATION
rDISTRIeUTION ? STATE fl ARM' x NAPT AIR Tel ~ f
This report is for the use within the' USA of the Intolltienco components of the Dapartments or
Agencies indicated above. it is note to be transmitted eversaae without the concurrence of the
collection and Dissemination, CIA.
originating officio through the Assistant Direcdpr,riii5.ii1iL1.a Al
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Approved For Release 2001/04/19 : CIA-RDP80-00809A000500120118-5
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