FOREIGN TRADE WITH U.S.

Press, Volume XC, Issue 27406, 20 July 1954, Page 11

FOREIGN TRADE WITH U.S.

Balance Of Payments Improves (Rec. 9 p.m.) WASHINGTON. July 18. A new study showed today that foreign earnings in trasg with the United States were higher in the period 1950-53 than during the entire period between World War I and World War 11. This was one of the findings the Commerce Department reported in a special study of the balan'ce of international payments. In the first four years after World War. 11—1946-49—the report said, foreign countries were able to pay for only half of the 70,000,000,000 dollars of goods and services (excluding military aid) they repei ved from the United State? through sales to that country. Most of the resulting 35.000,000,000 dollars foreign deficit was made up by United States gift aid and loans, but foreign countries dippeq into their gold and dollar reserves by a little over 7,000.800,000 dollars to help balance the books. During the second fopr-year postwar perioff, 195 Q-53, the picture was much more yearly in balapce. In these years foreign sales to the United States paid for about 92 per cent, or their purchases here, plus the dollars they needed for loan repayments and earnings of United States investments abrpad. In 1953 the rqtio was 97 per cent. United States gift aiff and loans declined by about one-hqlf in these years, excluding military aid. At the same time earnings of foreign nations in the United States were so rhuch greater that they were able to recoup the 7.000,000.000 dollars in gold and dollar reserves they used up in the first four years after the war and to add 750,000,000 dollars to these reserves. The balance of payment position of foreign nations in transactions with the United States, the Commerce Department said, was thus better in the period j950r53 than at any other time between J 919 and 1939.