quite good supply. However, if you want an especially built truck it takes time to design and build it.

Mr. KELLY. Mr. Chairman, I checked with the Automobile Manufacturing Association concerning trucks, and my information is that on the heavy trucks the demand is pretty well satisfied and salesmen for the heavy trucks are now seeking orders. And in the mediumsized trucks the demand is about satisfied, and some of the facilities of the manufacturers are being put on the lighter trucks. With the lighter trucks they expect to satisfy the demand in a very few months; by the time the order for this business comes along the companies will be looking for export orders. In other words, the passenger car has no counter part in the truck situation.

REQUIREMENTS FOR TRUCKS BY VARIOUS PARTICIPATING COUNTRIES

AUSTRIA

The CHAIRMAN. You have a request for imports for Austria of 2,000 trucks, with 1,466 to be financed, ECA, making the total availability of 3,500 as against a prewar available supply of 847, and for 1946 of 632.

Austria used to be an exporter of trucks. Why is she not able to take care of her own needs?

Mr. GLYNN. The industry has been depleted and devastated on account of the war. That is the most outstanding reason for the condition.

The CHAIRMAN. I know that, but why should they be getting four times as many as they had prewar? That looks like a pretty liberal allotment?

Mr. KEEFE. As I understand it, Mr. Chairman, these figures indicate a prewar production, domestic, of 1,223, and for 1948-49 of 1,500. The CHAIRMAN. Yes. They exported 375, prewar, and at this time with a larger production they are going to get more we are going to crowd 2,000 on them. I do not know why; maybe that is something that could be explained.

Mr. SWAIN. Most of their supply is from enemy equipment and some United States Army surplus, that are not economical vehicles for civilian use.

The CHAIRMAN. Are the figures made up most from trucks that the ordinary farmer and businessman can use; that is, for the half-ton, the ton or ton-and-a-half truck; or do they represent the bigger trucks? Mr. SWAIN. Most of them are one-metric ton trucks, corresponding to the ton and the ton-and-a-half capacity here.

The CHAIRMAN. That accounts for the most of them?

Mr. GLYNN. They do not have any production, to amount to anything so far as our figures show

The CHAIRMAN. Then why do you tell us here that they have a production of 526

Mr. GLYNN. I beg your pardon, Mr. Chairman.

The CHAIRMAN. And why do you tell us they have an anticipated production in 1948-49 of 1,500, if they do not have any production? Mr. GLYNN. I am sorry, Mr. Chairman, I was looking at the freight-car line; because it is the fact that they do have a scheduled production in the amount of the figures shown on this chart.

Mr. KEEFE. As you have brought out, I do not quite understand this set-up. The total available supply for Austria of trucks for 1948-49 is 3,500 units, as set up in the table before us, of which 2,000 are to be imported, and 1,500 to be produced domestically; 1,466 of ECA funds, and I assume 534 are to be paid for with their own dollars. Now in prewar the available supply was only 847 as against a total available supply, in 1948-49 of 3,500, and their domestic production was 1,223, and they are scheduled to go up to, according to this table, 1,500. What is the explanation for the necessity for the people of America to give away 1,466 units in the face of the mounting production anticipated domestically, why is it necessary to boost their available supply from 847, prewar, to 3,500 in 1948-49?

Mr. SWAIN. The 3,500 requirement is predicated on 11 percent of their current registration. In 1947 they had around 33,000 registered in Austria. The 3,500 is the replacement factor, to keep their present fleet up to strength. The United States replacement factor is around 10 percent.

The CHAIRMAN. How would they ever maintain in prewar a fleet of 33,000 trucks?

Mr. SWAIN. The 33,000 figure was for 1947.

The CHAIRMAN. The 1947; with an available supply of 847, that would mean that one truck would last 40 years. Those two things just do not go together.

Mr. GLYNN. The prewar registration, in 1937, was 13,817; for 1938 it was 15,450. As stated previously, the 1947 registration was 33,000; and the 1948 estimated is based upon those figures, which would seem that the allocation of the number of trucks we have set up here would be required to keep their fleet at the present level.

The CHAIRMAN. 37,000?

Mr. GLYNN. 33,000 is the present registration.

The CHAIRMAN. Where did they get these trucks? From Army surplus?

Mr. GLYNN. Many of them came from the Army; some of them are captured vehicles, as well as from converted passenger cars. The CHAIRMAN. That is a pretty big supply of trucks for a population the size of Austria.

Mr. GLYNN. As stated before, the use of trucks is coming more into vogue. Their railroads have been depleted to a certain extent, and the addition of the fleet of trucks we have outlined will keep them on a level with registration as was outlined for 1947.

BELGIUM-LUXEMBURG

The CHAIRMAN. For Belgium-Luxemburg there is shown a prewar production of 8,000, according to the table that has been furnished to us; and they seem to be down for a production of 7,200 for 1946, and none for 1947. It is estimated that they will produce only 1,500 in 1948, and will receive imports of 7,600. I am wondering if those figures are anywhere near the mark?

Mr. GLYNN. I think we have a correction for the figures here, Mr. Chairman.

The CHAIRMAN. What are the correct figures?

Mr. TUTHILL. Prewar, domestic production was 632.

Mr. KEEFE. Instead of 8,632?

Mr. TUTHILL. Yes.

The CHAIRMAN. And what were the imports?
Mr. TUTHILL. Total imports were 10,359.

The CHAIRMAN. 10,359 for what year?

Mr. TUTHILL. That was for 1937.

The CHAIRMAN. How did you happen to arrive at the figure you have in these tables?

Miss MIMS. They have large assembly plants in Belgium, and the production figures were confused to include the assembly capacity; with the changes the imports now cover the assembly capacity.

The CHAIRMAN. You mean that the imports cover the units that came in, knocked down for assembly?

Miss MIMS. That is correct.

The CHAIRMAN. What about the 1946 figure?

Mr. TUTHILL. Those figures are wrong also. The imports for 1946 should be 14,370.

The CHAIRMAN. That is on the basis of the assembly figures?
Mr. TUTHILL. That is the imports for assembly.

The CHAIRMAN. And the 7,000 figure should be what?

Mr. TUTHILL. That should be zero.

The CHAIRMAN. It should be zero?

Mr. TUTHILL. Yes.

The CHAIRMAN. And the 1947 figure is correct?

Mr. TUTHILL. That is correct.

The CHAIRMAN. They do not have down any prewar production to amount to anything.

Mr. TUTHILL. Only the assembly.

The CHAIRMAN. Is that 1,500 prospective production just assembly? Mr. TUTHILL. No; that is plus assembly.

The CHAIRMAN. Plus assembly. How many trucks do they have now?

Mr. GLYNN. 95,000 in 1947.

The CHAIRMAN. Are they mostly surplus material?

Mr. SWAIN. Roughly 28,000 of them are 10 years or older.

The CHAIRMAN. What about the rest of them; are they from Surplus?

Mr. SWAIN. The majority of them are surplus, or equipment left over from prewar.

The CHAIRMAN. How did you get as big a figure for imports as 7,600, and as big a figure for ECA financing as 6,400?

Mr. KELLY. It might be noted that from 1947 Belgium imports are paid for in cash.

The CHAIRMAN. I understand that, and you figure to have 1,200 of this number paid by for cash. Where are they to come from, mostly? Mr. TUTHILL. They are to come from the United States.

The CHAIRMAN. Out of United States production?

Mr. GLYNN. Yes.

The CHAIRMAN. They never used to be, were they?

Mr. SWAIN. Yes.

Mr. GLYNN. They have some large assembly plants over there. Mr. KELLY. Yes; Ford, General Motors, and Chrysler have plants over there.

DENMARK

The CHAIRMAN. For Denmark there is shown a prewar production of 250; imports of 7,200. It is suggested for 1948-49 that the imports be 8,000, with no production; and 6,200 availability, indicating there must be some exported, or an evaporation of some kind of some 1,800. I am wondering if anyone can tell us something about that?

Mr. GLYNN. That is for reexport to their dependent overseas territory.

Mr. KELLY. Denmark has an assembly plant.

The CHAIRMAN. Where would they go to overseas dependency from Denmark? You mean that is a distribution point; is that the idea? Mr. KELLY. To their markets.

The CHAIRMAN. If that is so why should we have to finance 2,678 of them?

Mr. NITZE. The financing of the trucks to Denmark relates to their over-all balance of payment situation. Out of an anticipated import of $265,000,000 they only have $24,000,000 with which to pay for those imports.

The CHAIRMAN. Of course, if she handles that large volume of business, and distributes them to other countries, she ought to get something out of it for herself, or she would not be doing it.

Mr. GLYNN. She also imports from Belgium and France.
The CHAIRMAN. Are there any other questions on Denmark?

Mr. KEEFE. I do not quite understand, Mr. Chairman. They show total imports of 8,000. What part of those imports are imports from the United States?

Mr. NITZE. Six thousand.

Mr. KEEFE. Where is she getting the other 2,000 imports?

Mr. NITZE. From other participating countries.

Mr. GLYNN. From Belgium, France, and England.

Mr. KEEFE. Are these exports to Belgium and France and reexports to Denmark? I cannot get this thing clearly in my mind.

Mr. KELLY. Mr. Chairman, there is a mixture of supply and demand in Europe. Take the country of Denmark, normally before the war they bought from England, France, and Belgium. They bought passenger cars and some trucks from them, and the great balance of what they got was from the United States for these assembly plants which our companies have over there. Denmark sells to England, France, and Belgium, and on the other hand she will buy some trucks from them, but the great volume, again, is from the United States for those assembly plants, so that you can conceive of Denmark as a country that both imports and ships out some from her assembly plant production which she has.

Mr. NITZE. This program has been designed on the assumption that normal private trade channels will be maintained as far as possible and that the normal movements of trade would not be upset where they would continue to make sense. We would not assume that normal exports would be cut off from one country to another unless they involved an inefficient movement.

Mr. KEEFE. Well, that may be an explanation, but still I will have to think about it some before I get it oriented in my own mind as to just how this truck situation is going to work.

Mr. GLYNN. Prior to the war we had normal exports of American trucks into the ERP countries of in the neighborhood of 30,000 a

year, and it is that program that we are trying to follow along, and to keep up our ordinary flow of business that our American manufacturers have enjoyed, and again I would like to point out the fact that our American demands for trucks have been pretty well satisfied. Mr. KEEFE. Is this a program to reconstruct the American manufacturers

Mr. GLYNN. No, sir.

Mr. KEEFE. Or the economies of the participating countries? Mr. GLYNN. Yes, sir. Of the total number of trucks some 29,000 come under the ECA financing of the whole program here. Mr. KEEFE. How many trucks?

Mr. GLYNN. Some 29,000 is all that comes under ECA financing. Mr. NITZE. And, Mr. Keefe, the over-all program is less than it has been during 1947.

Mr. KEEFE. The difference is that in the over-all program we are giving away a lot of these trucks. Instead of them paying for them the people of America are paying for them. That is what I am trying to get straightened out in my mind. It begins to look to me that in the truck business it is a reconstruction program to save the American truck manufacturers.

Mr. NITZE. As I understand it these truck assembly plants in Belgium are among the most efficient in all Europe. General Motors and subsidiaries and the Ford Motor Co. have assembly plants there. Also some of the parts are manufactured there. This appears to be the most efficient way of satisfying the minimum truck requirements of those countries.

Mr. SWAIN. In that connection the assembly plants do not take their complete knock-down unit necessarily from the United States, but in many instances they purchase certain parts locally. For example, batteries, seats, and seat covers are produced there. So, the assembly plants in Europe do contribute somewhat to the economies of the countries in which they are located.

Mr. GLYNN. And the body is another part of the truck that is made over there in the assembly plants.

The CHAIRMAN. Does that mean that this program is primarily an item for the rehabilitation of these countries, or is it something that some of you folks that call yourselves economists have gotten up for the purpose of preventing truck manufacturers from spreading their forces into the development of something else that there is a major demand for and continuing the inflationary price of commodities here? I am wondering about that.

Mr. TUTHILL. In each case our figures are based upon our analysis of the needs of the country.

The CHAIRMAN. How many cars do they have registered in Denmark?

Mr. GLYNN. They had 42,000 in 1947.

The CHAIRMAN. 42,000?

Mr. GLYNN. Yes, sir, that is right.

Mr. TUTHILL. And that is compared to 40,000 in 1938.

The CHAIRMAN. That means that whereas the figure which was used for some of these other places was 10 percent replacement, here you are using 15 percent.

Mr. TUTHILL. Yes, sir.

The CHAIRMAN. Those figures are interesting to say the least.