TRADE OUTLOOK IN 1955

Press, Volume XCI, Issue 27566, 25 January 1955, Page 9

TRADE OUTLOOK IN 1955

Increase Seen, With Keen Competition

FORECASTS OF FOREIGN TRADE (From a Reuter Correspondent) SAN FRANCISCO. International trade will increase during 1955 but competition will be keener. This is the opinion of Pacific Coast business leaders engaged in commerce with foreign countries. Their estimates of the future were qualified with the stipulation their assumptions were based on a continuation of peace. Mr T. S. Petersen, president of the Standard Oil Company of California, with far-flung international interests and an importer of foreign crude oil to meet domestic consumption, said: “The outlook for 1955 seems to be quite favourable when viewed from an industry-wide position and we are planning operations in expectation of a 3 or 4 per cent, increase in west coast and national demands. Abroad, the general prosperity of many European nations, as well as increasing industrialisation of other areas, is an encouraging factor when viewed in the light of their probable demands for more petroleum products. It is expected that these demands, in 1955, will increase by 6 per cent, or more over the requirements of foreign markets in the past year.” Mr Randolph Sevier, President of the Matson Navigation Company, which is planning the expenditure of 40,000,000 dollars for two new single class, luxury liners to re-establish service to New Zealand and Australia, said that 1955 will be a “challenging” year for all firms in the Pacific travel industry. “The United States travel public is becoming aware of the unlimited vacation possibilities of the vast Pacific area,” he added. “Progress is being charted in improved surface and air transportation. Hotel accommodations are enlarging, but they must keep pace with the growing opportunities ahead. Much remains to be done before the potential of the Pacific is realised. But the prospects are bright, We look forward to resumption of our luxury liner service to New Zealand, Australia and the islands of the South Pacific. During 1955, construction is scheduled to start on our two special-design liners for this route. We are hopeful that they will be in service by the following year.” One of the improvements which will be added to travel facilities in the Pacific during the coming year will be undertaken by Pan American World Airways. Colonel Clarence Young, Pan American vice-president in charge of Pacific operations, with headquarters at San Francisco internatipnal airport, said that his company would add an extra flight a week to its schedules linking the Pacific coast and New Zealand, Australia and the Orient. Mr Russel G. *6mith, executive vicepresident in charge of international banking activities for the Bank of America, the largest bank in the world, with offices in Europe and the Far East, gave a warning that competition for the foreign market would be greater during 1955. "Trade barriers are shrinking,” he said, “further removal of obstacles to trade may be expected next year. Markets will continue to expand, as nations vie with each other in all parts of the world for buyers of their goods. “As mounting gold and foreign exchange holdings of other countries reach new levels, progress towards convertibility will be facilitated. “Industrial production has increased strikingly in many countries, setting a pace this year that should give added momentum to 1955. The coming year will see greater concentration by more nations on the great Latin American market and increased attention to the development of the potentials of free Asia.”