Page images
PDF
EPUB

Other Programs

The Department of Commerce includes additional agencies which report directly to the Secretary.

United States Travel Service

C. Langhorne Washburn, Assistant Secretary for Tourism

[graphic]

The United States Travel Service helps our travel industry market U.S. tourist attractions and facilities abroad, thus expanding the export of American goods and services.

The agency was created by Congress in 1961 to "develop, plan, and carry out a comprehensive program designed to stimulate and encourage travel to the United States by resi dents of foreign countries for the purpose of study, culture, recreation, business, and other activities as a means of promoting friendly understanding and good will among peoples of foreign countries and of the United States." It works with indus try and depends on its cooperation for carrying out far-flung program responsibilities at minimum expense to the Government.

The Travel Service sells America as a travel attraction and promotes the development of low-cost tours and improved services for foreign tour. ists, and helps community groups in. augurate visitor hospitality services. It also works to reduce barriers to international travel, including simplification of visa, customs, public health, and other entry formalities.

By promoting tourism to the United States from abroad, the Travel Service helps to increase the flow of visi tors to and through the United States. Spending by these tourists with U.S. carriers and while in the United States helps alleviate the deficit in our balance of payments.

The agency, headquartered in Washington, maintains offices in London, Paris, Frankfurt, Buenos Aires, Mexico City, Sydney and Tokyo. Operations

extend into more than 40 countries.

The USTS Marketing Division plans and directs overseas advertising and sales promotion efforts, manages domestic travel trade relations, and promotes special interest travel. The Visitor Services Division directs domestic "Invite and Welcome" advertising, encouraging Americans to (1) ask their foreign friends and relatives to visit the U.S., and (2) to be courteous hosts. The Division is also responsible for facilitation projects and for managing relations with volunteer host groups, state tourist officials and city convention and visitors bureaus and local chambers of commerce.

A Research and Analysis Office studies overseas VISIT USA markets and provides the domestic travel industry with a monthly Statistical Summary and Analysis of Foreign Visitor Arrivals, U.S. Citizen and non-U.S. Citizen Departures. The Public Information Office supplies overseas posts with editorial support material on U.S. tour attractions and facilities.

Working with a 15-member Travel Advisory Board appointed by the Secretary of Commerce, and State Liaison Officers appointed by the States and territories, USTS maintains close contact with the domestic and international travel industry, as well as state and regional tourist develop. ment agencies.

USTS also works with about 60 Corporate Liaisons, employed by multinational U.S.-based firms with over. seas subsidiaries and/or affiliates which sponsor in-bound sales incentive and other business-related travel, including international conventions.

Maritime Administration

Andrew E. Gibson, Assistant Secretary for Maritime Affairs

The Maritime Administration, which became a unit of the U.S. Department of Commerce in 1950, is charged with fostering the development and encouraging the maintenance of the U.S. Merchant Marine. One of the chief means used is granting ship operating and construction subsidies.

The Administration studies the Nation's foreign trade and determines which trade routes are essential. It investigates applicants for Government aid on such routes, considering their experience, financial qualifications, and proposed operation. The Maritime Subsidy Board determines whether the proposed service is in the public interest and, if so, makes the final determination, subject to review by the Secretary of Commerce, as to which companies shall receive operating subsidy. By this means, industry in the United States is provided with assured access to foreign markets.

The subsidized operator must agree to replace obsolete ships with new up-to-date ships built in U.S. shipyards and found to be suitable for the trade route to be served and for possible use as naval auxiliaries in an emergency. The Administration pays the difference between the domestic cost of such ships and the estimated foreign cost of similar ships, which is lower than the U.S. cost, and may pay for any nationali defense features which are found to be in excess of commercial requirements. Construction subsidy may be paid for any ship to be used in U.S. foreign trade, whether or not the operator receives an operating subsidy. The Government may also guar

antee privately financed ship construction loans or mortgages.

[graphic]

In addition to determining the award of subsidies and administering subsidy contracts, the Maritime Administration maintains a National Defense Reserve Fleet of approximately 600 ships, most of them built during World War II, which are kept ready for emergency use; about 400 other ships in reserve are gradually being sold for scrap.

Transfer of U.S. ships to foreign flag must be approved by the Maritime Administration, which may grant approval if the transfer is in accordance with policies established from time to time. Such policies generally require that the ships not be needed by the United States or that they will be made available to the United States in an emergency.

The Maritime Administration operates the U.S. Merchant Marine Academy at Kings Point, Long Island, N.Y., where young men are trained to become merchant marine officers.

The Administration gives advice and assistance in port planning and is responsible for coordinating programs of the ports for continued operation in an emergency.

The agency undertakes research on new ship types and the improvement of existing ships and transport systems. It cooperates in international activities such as prevention of pollution of the seas by oil discharge from ships, simplification of shipping documents, and improvements in safety and navigation regulations.

[blocks in formation]
[merged small][merged small][merged small][graphic][merged small][merged small][merged small][merged small][merged small]

Office of Foreign Direct Investments

Richard P. Urfer, Director

The Office of Foreign Direct Investments administers a temporary program to restrict the amount of U.S. funds American companies may use in financing their foreign business expansion. The program covers both U.S. funds sent overseas for direct investment and earnings from foreign enterprises in which American companies have a 10 percent or greater interest.

[graphic]

Since American dollars used for foreign investment count on the negative side in the U.S. balance of payments, the program encourages U.S. companies to finance overseas expansion by borrowing funds abroad.

A company may compute its investment quota on the basis of its average investment in the 1965-66 base period, or it may elect a quota based on 30 percent of the previous year's foreign earnings. Instead of these methods, a direct investor, whether company or individual, may without restriction invest up to $1 million in 1970, or up to $5 million, provided the additional $4 million is invested in Schedule A (less-developed countries).

The program was established January 1, 1968, following a large balance of payments deficit in 1967. American firms used more than $2 billion of foreign-borrowed funds to finance overseas expansion in each of the years 1968 and 1969.

While effective in achieving temporary balance of payments gains, the Foreign Direct Investment Program was liberalized in 1969 and again in 1970. It is to be phased out as soon I as balance of payments conditions permit.

36

U. S. GOVERNMENT PRINTING OFFICE: 1970 O-388-220

[merged small][graphic][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]
« PreviousContinue »