this report is not to be published nor may...

Report NO. EC-64

rK

This report is not to be published nor may itbe quoted as representing the Bank's views.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

SURVEY OF CURRENT AND PROSPECTIVE FOREIGN

INVESTMENT PROGRAMS

OF U.S. COMPANIES

(1958)

August 15, 1958

Economic StaffPrepared by: Andrew C. Huang

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TABLE OF CONTENTS

Page

Introduction 1

I. Compa2ison with the 1957 Survey 2

II. RealZation of 1957 Foreign DirectInvestment Plans 5

III. The 1958 Survey of Foreign InvestmentPlans 7

a. Foreign Investment Plans for 1958 7

b. Survey of Medium-Term ForeignInvestment Plans, 1958-62 9

Appendix Tables

Planned Capital Investments Abroadby U.S. Corporations, 1958-1962

Table 1. - All Industries

Table 2. - Petroleum

Table 3. - Public Utilities

Table 4. - Mining and Smelting

Table 5. - Iron and Steel

Table 6. - Chemical Industry

Table 7. - Automobiles, Parts and Tires

Table 8. - Other Hanufacturing

Table 9. - Trade and Services

Survey of Current and Prospective Foreign Investment Programs

of U.S. Companies

(1958)

Introduction

The main object of this memorandum is to summarize the invest-ments which U.S. concerns have announced they wish to undertakeabroad. It is based on the annual reports and press releases of106 American companies.

The purpose of this study may be briefly stated as follows.Innumerable references are made to the attitude of private capitaltowards investment abroad. Statistics as published reveal onlywhat has happened in the past, with a serious time lag and, exceptfor the United States, in a rather imprecise manner. The questiontherefore arose as to what information the directors of the com-panies interested in operations abroad actually gave their share-holders about their business plans. Such a review would never bemore than a sample, it would reveal nothing but forecasts liableto change as circumstances changed themselves. But over a periodof time they would perhaps reveal changes in climate and forecastswhich in themselves would be of some interest.

A first experiment was made in 1957. Reports of American,British and French companies with interests abroad were systematicallystudied. The resulting papers were too preliminary to warrant generalcirculation. The experiment is being repeated in 1958. This surveyof American companies is therefore a first instalment of the 1958Survey. Two more will be forthcoming, one about British and the otherabout French companies.

The first survey covered the investment plans of 70 Americancompanies. As continuous data were not available, only 50 of thecompanies covered in the first survey are included in the presentsurvey. However, in both surveys, these 50 companies accounted forover 90% of the total planned investment outlays. The comparison

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between the 1957 and 1958 surveys made in the following section istherefore based on these 50 identical companies.

The main points which this survey of American conpaniesr reportshas brought to light are the following:

First, the plans of the 50 companies for 1958 are distinctly lowerthan were their plans for 1957.

Second, the forecasts published by the 50 companies for the five-year period 1958-62 are higher than were their plans for the 1957-61five-year period.

Third, the investments abroad actually carried out in 1957 bythe 50 companies were distinctly higher than the published forecastsof the companies themselves,

Fourth, the distribution of published forecasts both of the 50companies and of the 106 companies reviewed this year confirms thetraditional pattern which shows a) industry-wise, a predominance ofoil and mining investment, and b) area-wise, a predominance of Canadaand Latin America.

I. Comparison with the 1957 Survey

Current Investment Below a Year Ago

On the basis of the investment data available up to the end ofJune 1958, the 50U.S. companies under review expect to make capitaloutlays of $1,027 million in 1958, a reduction of about 22% from the

$1,312 million reported in the study made in 1957. Scheduled declinesfrom 1957, as shown in Table I, are spread over various industriesalthough with significant difference in magnitude. The impact ofretrenchment in investment outlay has been most pronounced in thebasic metals group. The public utilities is the only major group inwhich an increase in capital expenditures is planned. iAnong the majorareas, Oceania, Asia and Africa are the only ones in which plannedcapital investment is much larger than that reported a year ago,although the amounts in absolute terms remain small. Reductions inplanned investment are most marked in Latin America and Western Europe.

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Table I

PLANNED CAPITAL INVESTMENT ABROAD BY So U.S. COM,1PANIES1957-58

(Millions of dollars)

ManufacturingCountry of Public incl TradeDestination Petroleum Utilities Mining and Se:rvices Total

15711-1058 07 1158 195Y 10587 1957 ~158 1957 195b

Canada 270 203 - 30 91 0 44 62 4OS 350

Latin America* 358 218 85 95 130 30 72 58 645 hol.

Western Europe 6 - - - - - 60 43 66 43

Middle East 195 203 - - - - - - 195 203

Asia, Oceania - 11 - - - 8 - 5 - 24

Africa 1 6 - - - - - - 1 6

Total 830 606 85 125 221 88 176 168 1,312 1,027

* Including the Caribbean area.

In evaluating the decline for the current year, it must beborne in mind that the expected outflow of U.S. private investmentin 1957, the year in which this series started, was at a high level.Planned investments by petroleum firms in 1957, especially in theWestern Hemisphere, were large in the wake of the Suez crisis;purchases of oil concessions in Venezuela by Standard Oil Co. (N.J.)alone approximated 8300 million. Planned outlays by mining companies

in 1957 were also high. They represented, to a large extent, theheavy expansion programs of U.S. copper and aluminum producers inCanada, Chile and Peru, which were announced before the prices ofprimary metals dropped sharply late in 1957.

The high level of direct investment in the last few years waslargely due to the U.S. petroleum and mining companies who seemed tohave geared their foreign operations to the expectation of a long-term increase in demand. This year, however, their plans havedeclined. One plausible explanation may rest with the fact thatduring 1957 the iu.mediate effects of the Suez crisis were overcome,while, with a slowdown in general economic activity in the U.S.,demand began to taper off. It may be that the timing of capitaloutlays abroad have been influenced in part by near term considera-tions.

On the basis of business reports of those companies which haveannounced substantial reduction in capital outlay from the 1957level, more than half indicate that "price weakness" and "theappearance of excess capacity" are the principal reasons for thisdrop. For instance, Creole Petroleum Corp., in its 1957 annualreport, attributes its 1958 reductions in the capital investmentprogram to "conditions of excess supply and price weakness during1958 as a result of severe competition from rival fuels, as well asfrom higher producing and refining capacity worldwide, together withthe present alowdown in industrial activity". Similarly, theMinnesota Mining and ianufacturing Co., commenting on its foreignoperations in 1958, announced that on account of "the economicdownturn that became more marked in the closing months of the yearthe capital expenditures will hold to lower levels in 1958 as outlayswill be made largely for continuing programs and projects which cannotbe deferred".

The rise in proposed public utility investments for 1958 reflects,to a great extent, a brighter outlook for U.S. affiliated electricalpower and telecommunication companies in Latin America. This followsrate increases obtained in 1957 and January 1958 in a number of LatinAmerican countries as reported, for instance, by International Telephoneand Telegraph Corporation.

Medium-Term Investment Higher

The survey of corporate investment intentions announced up tothe end of June 1958 shows capital investment planned by 50 U.S.companies of $6,343 million for the five years, 1958-62, a 17% riseover the estimate of 45,to4O2 million for the five-year period, 1957-61,made a year ago. This upward revision is attributable mainly to alarge number of projects mostly by U.S. mining and petroleum companiesthrough their overseas branches in expectation of an expanding marketfor their products in the long run. Table II shows planned capitalinvestments by U.S. companies for a five-year period as announced in1957 and 1958 respectively.

Table II

COMPIRISON OF PLAINNED CAPITAL INESTDENT ABRO1DBY 50 U.S. COMPANIES

1957-1961 and 195C-1962


iffanufacturingCountry of Public incl. TradeDestination Petroleum Utilities Mining and Services Total

1957219558 1557 - 9-5 195 8Z 19TT- 1956- 1957- 195d-1961 1962 1961 1962 1961 1962 1961 1962 1961 1962

Canada 1,020 1,060 370 360 91 268 392 465 1,873 2,153

Latin America* 581 543 604 695 334 349 349 371 1,868 1,958

Western Europe 299 631 - - - - 67 S4 366 715

Middle East 995 965 - - - - - 995 965

Asia, Oceania 96 211 - - - 8 - 64 96 283

Africa 10 79 - - 194 190 - - 204 269

Total 3,001 3,489 974 1,055 619 815 808 984 5,402 6,343

Including the Caribbean area.

II. Realization of 1957 Foreign Direct Investment Plans

In appraising the likelihood that foreign direct investmentprograms for 1958 will materialize, it seems appropriate to comparecapital outlays overseas programed by U.S. companies in last year'ssurvey with the amounts which were actually expended. In July 1957an anticipation of foreign investment plans for the calendar yearwas obtained in the same manner as in the current survey, i.e. onthe basis of the Dreliminary estimates made available by the pressbetween January and June. This year, the same companies have givenestimates of their actual investments abroad during 1957. If summarized,they show that total actual capital outlays in 1957 (Table III) haveexceeded by about 55% the capital outlays announced by the 50 investing

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companies covered by both surveys. The major deviations were inthe fields of petroleum and public utilities. The change inpetroleum investment was attributable to a number of specialtransactions - e.g. payments by Creole Petroleum Corp. for oilexploration rights in Venezuela - for which adequate allowancecould not be made in advance. In the caoe of public utilities,deviation has oc urred mainly on account of a gas pipeline projectin Canada vhich v;as completed ahead of schedule.

Table III

DIRECT INVTEST-ENT PROGRAS OF 50 U.S. COMPANIESPLANNED AND ACTUAL, 1957


Industry Planned 1/ Actual 2/

Petroleum 830 1,173

Public Utilities 85 458

.ining 227 219

anufacturing 160 177

Total 1,302 2,027

1/ As of the end of June 1957.2/ Based on preliminary estimates as of June 1958. Actual foreign

investments during 1957 of all U.S. companies are estimated atabout $3 billion.

3/ Including trade and services.

One year's experience is too short to draw any conclusions. Itcan however be said that the present estimates of foreign investmentsfor the current year by U.S. companies may well turn out to have alsobeen conservative. They were rade after a marked decline from therecord volume of business reached in the last few years. This factoralone would suggest conservatism in the level of the estimates provided.

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III. The 1958 Survey of Foreign Investment Plans

It is the purpose of this section to estimate and review theinvestment plans of 106 U.S. companies (including the 50 companiespreviously mentioned) for the five-year period 1958-62. Some ofthe individual est.mates on planned corporate investments are relatedspecially to the year 1958. Other companies have announced theirplans for longer periods up to 5 years, without annual breakdowns.The first part cf this section deals with the investment projectsspecified for the year 1958; the second pa,,t is concerned with plannedcapital expenditures by U.S. companies for the period 1958-62, inclusiveof the investment plans covered in the 1953 part.

Tabulations of capital investment programs by country and byindustry, on which the 1958 survey is based, are given in separatecolumns for the two periods under review in Appendix Table 1. Thepertinent details of the planned capital investments by country, byindustry as well as by individual companies concerned are shown inAppendix Tables 2 to 9 in the same manner.

IIIa. Foreign Investment Plans for 1958

According to investment data available up to June 1958, U.S.companies under review plan to add approximately $1,10 million totheir direct investments in their foreign subsidiaries and branches.(See Appendix Table 1 for details). This figure would be increased bypart of the investments covered in the second part of this section andother investments on which no yearly estimates have been published.

Canada

Planned capital outlays in Canada by U.S. companies whose in-vestment data are available amount to $378 milliom in 1958, 34% ofthe world total. The largest relative gain occurs in the petroleumindustries where investment outlays budgeted for capital improvementand exploration by Imperial Oil Ltd., a subsidiary of Standard OilCo. (N.J.) amount to 133 million.

U.S. manufacturing companies in Canada have planned capitalexpenditures totalling $78 million in 1958. Among them, capital outlaysby chemical concerns amount to 45L million. Major programs of U.S.chemical producers in Canada include: a new $20 million fertilizerplant by Potash Co. of America and a A26 million plant and expansionprogram by DuPont Co. of Canada. According to the New York HeraldTribune., "Most of the chemical industries fared somewhat better lastyear in foreign markets than ...... domestically. Presumably that isthe reason they are rapidly expanding their network of plants abroad".

1/ June 12, 1958, Section 3, p. 7.

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In the public utilities, the International Utilities Corp. hasunder construction a q30 million carbon gas plant for completion in1958.

Planned mining and smelting investments in Canada of about861 million in 1938 consist largely of a $50 million asbestos projectin Quebec by American Smelting and Refining Co.

Latin America

In Latin America, additional capital outlays planned for 1958by U.S. companies amount to sh9 million, about 41% of the worldtotal.

U.S. petroleum companies in Latin America plan to spend 9266million in 1958. Creole Petroleum Corp., a subsidiary of StandardOil Co. (N.J.) operating in Venezuela, has announced its capitalexpenditure in 1958 at U170 million. In Guatemala and Paraguay, agroup of U.S. petroleum companies headed by Standard Oil Co. (Ohio),Gulf Oil Co. and Pure Oil Co. are engaged in an extensive petroleumexploration program of which the estimated cost for 1958 amounts to$60 million. In Bolivia, a 835 million crude oil pipeline undertakenby Tennessee Gas Co. and associates, is due for completion before theend of 1958.

Aggregate capital expenditures in 1958 of U.S. manufacturerschiefly of chemicals in Latin America amount to $56 million. Majordevelopment plans for chemical firms include: a 826 million plantexpansion project in Brazil, Colombia and Mexico by American CyanamidCo. and a 824 million phosphoric acid plant in Mexico by MonsantoChemical Co.

Planned investments for 1958 in public utilities and miningconsist of capital outlays of $95 million and $30 million budgetedby the Latin American affiliates of American and Foreign Power Co.and Newmont Mining Corp. respectively.

Western Europe

Planned capital expenditures during 1953 by U.S. companies,chiefly in manufacturing, in Western Europe amount to .h3 million,or about 4% of total planned expenditures. Principal developmentsin progress include: a '4 20 million expansion and integrationprogram by Ford Co. of Germany and an 88.5 million modernizationand expansion program by North British Rubber Co., a U.S. Rubber Co.subsidiary in Scotland.

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Middle East

Additional U.S. investments in 1958 in the Hiddle East aggregate$203 million or 18% of the world total. This consists exclusivelyof exploration and development expenditures by Standard Oil Co. (N.J.)and Texas Co., jointly with other foreign interests in Iran and Iraq.

Asia, Oceania and Africa

Aggregate additions to U.S. private investment in Asia and Africaamount to 431 million in 1958, 3% of the world total.

Planned investments in Asia of $23 million include: a $10 millionpetroleum refinery expansion in Bombay by Standard Oil Co. (N.J.) anda $7 million copper refinery at Mount Isa Mines, Australia, by AmericanSmelting and Refining Co.

In Africa, planned capital outlays for 1958 by U.S. companiesamount to .18 million mainly for petroleum exploration in Algeria by agroup of U.S. oil companies headed by Cities Service Co. and Gulf OilCorp.

IIIb. Survey of Medium-Term Foreign InvestmentPlans, 1958-62.

Direct investment plans abroad by U.S. companies, recorded inthe 1958 survey, show a great diversity of industries but plannedinvestments in petroleum and mining are again dominant with about 52%and 16% respectively of total planned investments of 96,831 million.(See Appendix Table 1 for details).

Petroleum

Appendix Table 2 shows that petroleum companies expect to beactive in all phases of the industry and plan to invest a total of$3,527 million. Of this, 91,061 million, or over one third, isdirected towards Canada.

The planned increase during the period under review stems fromlarge petroleum discoveries in western Canada. Of particularsignificance is a $750 million, five-year expansion program bothfor the exploration of new sources of oil and marketing facilitiesbeing conducted by Cities Service Co. Plans have also been completedfor construction of a new 850 million refinery at St. John, N. B.,Canada by Standard Oil Co. (California) with Irving Oil Co., Canada,with completion scheduled for early 1960. The balance representsmostly capital and exploration outlays provided by Canadian affiliatesof Standard Oil Co. (N.J.) and Gulf Oil Corp., aggregating about $200million for the current year.

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In Latin America, petroleum investments amount to $560 millionor 16% of the 1955 total for this industry.

Of total petroleum investments of $560 million in Latin America,over half, or 8300 million, is to be made in Venezuela. Leadingprojects involve a $100 million oil exploration program by a groupof U.S. oil companies headed by Texas Co. at Paria, and a $28 millionnew refinery now under construction for completion in early 1959 bySocony Mobil Oil Co. at El Palito. The remainder of about $165 millionrepresents capital outlays of Creole Oil Corp. for the currant year.

Other leading oil investments include two new refineries proposedby Standard Oil Co. (N.J.) affiliates in Cuba and Peru with costsestimated at $100 million and $40 million respectively and a $45 millionexploratory drilling program in Guatemala conducted by a group of oilcompanies including Standard Oil (Ohio) and Gulf Oil Corp.

In Western Europe, petroleum investments amount to $645 millionor nearly 1b% of the total for this industry. Of this, about $56omillion or over 85% is for construction of new refinery facilities,of which the most important ones are in Germany ($200 million),France (0165 million) and the Netherlands-($75 million) by Europeanaffiliates of Standard Oil Co. (T..J.) and (Calif.).

U.S. petroleum investments in Western Europe have traditionallybeen in the field of marketing, distributing, and refining of importedcrude oil. This has changed to some extent in recent years with a$30 million oil exploration program to be conducted in France, Spainand Turkey, by Phillips Petroleum Co., General American Oil Co. andBolsa-Chica Oil Corp. respectively.

Planned petroleum investments in countries of the Middle Eastamount to 6965 million - 27% of the petroleum total. The amount isexclusive of an 8800 million pipeline project in the Middle Eastincluded in the 1957 survey which has now been shelved.

The most important single project is the proposed building of a5OO million pipeline linking Qum, Iran and the Mediterranean Coast,

to be financed by a group of N.Y. bankers headed by Allen and Co.The remainder of $465 million covers mainly the 1958 capital outlayof $200 million of UT.S.-affiliated companies in Iran and Iraq, anda $100 million oil exploration project including&,27 million for thepurchase of oil concessions in Iran by Pan American Petroleum Corp.

Planned petroleum investments in countries of Asia and Africaaggregate $296 million or 9% of the petroleum total.

Major projects include a $200 million refinery expansion programproposed by Caltex and the Standard Vacuum in Indonesia, Australiaand the Philippines, with costs estimated at $130 million, 935 million,and $35 million respectively. The remainder of about $95 million

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covers the cost of oil exploration by a group of U.S. oil companiesin Africa of which $60 million is directed to Libya.

The present survey also reveals a much broader interest inoverseas oil operations by a large number of U.S. independent oilcompanies. The 1958 survey shows some 30 U.S. producers includingthe "5 internationals" are engaged in exploration and developmentprojects in 35 foreign countries as compared with 10 oil operatorsactive in 21 countries outside the U.S. according to last year'sreport. Latin America has the largest number of independents with10, followed by Africa and Asia with 9 and 3 respectively. Most oilcompanies in foreign activities covered by this survey are largerones and are also domestic producers. Countries which have recentlyenacted or revised their petroleum laws in order to attract foreignparticipation or who have opened up new areas for bidding to foreigncapital, show the greatest relative increases in investments. Amongthem the maost important ones are Cuba, Guatemala, Paraguay, Venezuela,France including Algeria, Spain, Turkey, Australia, Philippines, Iranand Libya.

Ilining and Smalting

Planned investments in mining and smelting, which holds theseccnd-ranking position amongst investing industries in the 1958survey amornt to s,061 million - about 16 of the industry to-Gl.

Appendix Table 4 reveals that almost 80% of planned investmentsin mining are ccnfined to the Western Hemisphere. Such investmentsas have been projected for outside that area in the near future areprimarily in Africa, an area where such investments by U.S. as wellas other foreign interests are fast expanding. Planned mining invest-ments in Africa total A263 million according to the current survey.

Of total mining investment of about $1 billion, over $540 millionis to be invested in aluminum, 9175 million in iron ore, and $130million in sulphur; the rest is divided in about even proportionsbetween asbestos and copper.

Major projects now in progress in Canada 5nclude a $175 milliondevelopment program of Iron Ore Co. of Cada-/ in its Labrador-Quebecmines; a 650 million asbestos project in Quebec by American Smeltingand Refining Co.; and a $20 million new plant in Saskatchewan byPotash Co. of America.

2/ Formed in 19h9 by a group of American steel companies composedchiefly of Armco Steel Corp., Republic Steel Corp., YoungstownSheet and Tube Co., jointly with Canadian interests.

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In Latin America, an active program of plant additions andimprovements is being carried forward by U.S.-affiliated miningproducers. Among these are two aluminum projects, one proposed byAmerican Smelting and Refining Co. in Venezuela, the other byAluminum Co. of America in Surinam, with costs estimated at A200million and $150 million respectively. In Cuba Freeport Sulphur Co.has a $119 million program for the extraction of nickel and cobaltnow underway.

In Africa, Reynolds etals Co. is planning to construct a $150million aluminum plant in the Belgian Congo. work has started withcompletion scheduled for 1961 on a $120 million aluminum project inFrench Guinea in which Olin Mathieson Chemical Corp. has a reportedinterest of 940 million. The remainder involves largely a $45 millioncopper project in Rhodesia planned by American Metals Co.

Public Utilities

Direct investment in public utilities amounts to $1,055 millionor about 16O of the industry total. About 66% of the total invest-ment in this industry is located in Latin America and the rest inCanada.

Planned outlays by the public utilities, as detailed in AppendixTable 3, are dominated by a number of large projects. The mostimportant developments are related to nuclear power generatingfacilities with total cost estimated at $500 million by Americanand Foreign Power Companies in various Latin American countries.However, the Company recently announced that because of high installa-tion costs and other problems, conventional generating units may bebuilt instead. In Chile and Cuba a $100 million expansion program inthe telephone field is being undertaken by International Telephone andTelegraph Corp. The Company reported that it had obtained a favorablerate revision in these two countries early this year. The remainderincludes a 8330 million natural gas pipeline from Alberta, Canada, toCalifornia, to be built by International Utilities Corp.

Manufacturing

On the basis of the 1958 survey, as detailed in Appendix Tables5, 6, 7 and 8, investments in manufacturing industries aggregate$1,024 million or about 14% of all industries. However, it isinteresting to note that while manufacturing investments abroad, onthe basis of the last survey, were restricted entirely to the WesternHemisphere and Western Europe (see Table II above), the present surveyshows a total of $112 million directed towards countries of Oceaniaand Asia. Investments in chemicals, paper and pulp, and automobilesaccount for about 70% of this group.

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Principal chemical expansion projects include: a A50 millionplant by Allied Chemical Corp. in Montreal and a $40 million plantconstruction program by overseas affiliates of Union Carbide Co.

Significant development projects in paper and pulp manufactureinclude two factories, both to be built in British Columbia byCelanese Corp. and Crown Zellerbach Corp. with total estimatedcosts of S60 million; and a 8130 million plant expansion programnow under study by Olin Mathieson and W.R. Grace and Co. in Brazil,Cuba and Mexico.

Planned automobile investments of $100 million are largelyaccounted for by additional capital outlays of $80 million by FordMotor Co. in Germany, Australia and Brazil. The Company announcedthat its investment program in Europe is being made in the lightof "progress made by six Western European governments in their plansfor a common European market, and the negotiations led by the UnitedKingdom for a free trade area including a larger group of Europeancountries".

Trade and Services

Planned investments in the trade and services industry amount to$164 million or about 2% of the industry total according to the 1958survey. Most of this investment, as shown in Appendix Table 9, is incommercial real estate and the retail trade. Nearly 90% of suchinvestments is located in Canada.

Leading projects include a $100 million business center atMontreal known as "Place Ville Marie", now under construction byWebb and Knapp; and a $33 million program for new branches in Canadaand Australia announced by Montgomery Ward and Sears, Roebuck and Co.respectively.

PLANNED CAPITAL INVESTMENTS ABROAD BY U.S. CORPORATIONS Appendix1958-1962 Table 1

ALL INDUSTRIES(millions of dollars) Page 1

Automobiles,Public Mining and Iron and Parts and Other Trade and

Country of Petroleum Utilities Smelting Steel Chemicals Accessories Manufacturing Services Total GRANDDestination 1958 1958U 158 1958l 1958-62 118 2 l98 1958 1958-62 1958 1958- 1 TOTAL

(I (I) (I (I)(I (I () II () II () (II) (I) (II) (I) (II) (I) (II) (I) + (II)

1. Western Hemisphere:

Canada 209 852 30 330 61 231 210 54 74 6 3 18 60 139 378 1.899 2,277

Latin America:Argentina 6 6 6

Bolivia 35 5 35 5 40

Brazil 250 25V 11 30 130k' 25 421 446

Chile 100 3 103 103

Colombia 2 1 2 5 5

Cuba 110 951/ 2001W 119 95 429 524

Guatemala 45 45 45

Mexico 3 50 24 3 2 24 58 82

Paraguay 14 14 14

Peru 40 30 30 40 70

Venezuela 167 136 200 93 10 12 167 451 618

Sub-total 263 294 95 600 30 319 96 56 14 2 40 .132 12 446 1.507 1.953

Caribbean area 3 150 16 2 6 3 174 177

Total 1 475 1,146 125 930 91 700 306 110 104 8 43 18 194 157 827 3.580 4,407




Country of Petroleum Utilities Smelting Steel Chemicals Accessories Manufacturing Services Total GRANDDestination 1L8 1986 195 19 195 l9586 1 8- 1 TTADesintin 158-2 15862198 ~ 198 95-6 ~ 1958-62 12-8958-6K2 1958 19 6 1958 195-62 1958 1958-62 TOTAL

(I (II) (I) (II) (I) (II) (I) (II) (I) (II) (I) (II) (I) (II) (I) (II) (I) (II) (I) + (II)

2. Eastern Hemisphere:

Europe:

France 179 179 179

Germaror 200 20 4 20 204 224

Ireland 45 10 55 55Netherlands 75 2 2 75 77Norway 30 30 30Spain 10 2 2 10 12

Turkey 50 50 50United Kingdom 56 10 702/ 9 2 19 128 147

Sub-total 645 12 80 31 6 43 731 774Middle East:

Iran 140 656 140 656 796Iraq 84 84 84Kuwait 22 22 22Saudi Arabia 63 63 63

Sub-total 203 762 203 762 965




Country of Petroleum Utilities Smelti Steel Chemicals Accessories Manufacturing Services Total GRANDDestination 1958 1958-62 1958 1958-62 ~782198561958 1958-62 9588 198 15-2 8 12198-62 1958 19586 TOTAL

(I) (II) (I (II) (I) (II) (I) (II) (I) (II) (I) (II) (I) (II) (I (II) (I) (II) (I) + (II)

2. Eastern Hemisphere(continued)

Australia 1 35 7 1 18 4 41 38/ 6 13 138 151

India 10 10 10

Indonesia 130 130 130

Israel 10 10 10

Philippines 35 35 35

Sub-total 11 200 7 1 18 4 41 48 6 23 313 336

Africa 8 77 263 1 8 341 349

Total 2 222 1,684 7 263 13 98 35 41 54 7 277 2,147 2,424

GRAND TOTAL(1. + 2.) 697 2,830 125 930 98 963 306 123 202 43 84 18 248 164 1,104 5,727 6,831

I/ Including unspecified portions for other Latin American countries.

2/ Including unspecified portions for Mexico.1/ Including unspecified portions for Italy, India and other countries.A/ Including unspecified portions for Italy, Germany, France and Canada.

PLANNED CAPITAL INVESTMENTS ABR'OAD BY U.S. CORPORATIONS Appendix1958-1962 Table 2

PETROLEUI-iiPage 1

Country of Amount in millions PlannedDestination of U.S. dollars Investing Company Purpose for

1. Vestern Hemisphere:

Canada 750.0 Cities Service Co. Expansion of refinery anddistributing facilities 1957-61

75.0 Gulf Oil Corp. Capital outlay 1958

50.0 Standard Oil Co. of Calif. New refinery at St. John,New Brunswick 1958-60

133.0 Standard Oil Co. (N.J.) Capital expenditure 1958

28.5 " " " " Petro-chemical plant 1958-59

5.4 Development project inSarnia 1958-59

17.0 " " Refinery expansion atCalgary 1958-59

1.2 " " " Oil exploration at NewBrunswick 1958-60

1.0 Sun Oil Co. Additions to plant 1958

Sub-total 1,061.1

West Indies 3.5 Standard Oil Co. of Calif. Offshore drilling aroundBahamas 1958

Sub-total 3.5

PLANNLD CAPITAL INVESTEhTo ALEuD DY U.S. CORPORATIONS Appendix1958-1962 Table 2

PETROLEMPage 2


1. western Hemisphere (continued):

Latin America:

Bolivia 5.0 Gulf Oil Co. Pipelines 1956-59

35.0 Tennessee Gas Co./Union/iKonsanto Oil pipelines 1957-58

- White Eagle Oil Co. Exploration for oil 1958-61

Colombia 1.7 Atlantic Refining Co. Subsidiary at Bogota 1958

Cuba 100.0 Standard Oil Co. (N.J.)/Gulf/Atlantic Refining Co. Refinery 1957-61

10.0 Standard Oil Co. (Indiana) Drilling 1957-61

OUtemala 30.0 Ohio Oil Co. and associates Exploration 1958

15.0 Gulf/Union/Ashland Oil &Refining Co. i 1958

iexico 3.0 Pauley Pan-American Exploration offPetroleum Co. Mexican coast 1958-60

Panama - U. S. Fruit Co. Exploration 1958

Paraguay 9.0 Pure Oil Co./Gulf and Pipeline and refineryassociates at Asuncion 1958

5.0 Pure Oil Co. Oil concession andexploration in Chaco area 1958

PLANNED CAPITAL INVESTMENTS ABROAD BY U.S. CORPORATIONS Appendix1958~-102 Table 2

PhTROLEUMPage 3


1. Western Hemisphere (continued):

Latin America (continued):

Peru 40.0 Standard Oil Co. (N.J.) Refinery 1957-61

Venezuela 7.5 Gulf Oil Co. Puerta Cruz plant 1958-59

28.0 Socony Mobil Oil Co. New refinery at El Palito 1958-59

159.0 Standard Oil Co. (N.J.) Capital expansion 1958

7.8 "1 "l it I" Lubricating oil plant 1958

100.0 Texas/Ohio and associates Drilling at Paria 1958-60

Sub-total 556.0

Total 1 1,620.6


Europe:

France 150.0 Caltex/Shell and French New refinery atassociates Strasbourg 1958-62

- Cities Service Company New subsidiary 1958

15.0 Phillips Petroleum Co. Exploration 1958-60

14.0 Standard Oil Co. (N.J.) cnd New refinery nearFrench associates Fordeaux 1958-59

PLANNED CAPITAL INVZSTENTS AEROAD BY U.S. COMORATIONS Appendix19 8-1902 Table 2

PT OLLUiMPage 4

Country of Amount in millions Planned

Destination of U.S. dollars Investing Company Purpose for

2. Eastern Hemisphere (continued):

Europe (continued):

Germany 200.0 Standard Oil Co. (N.J.) New refinery at Cologneand pipelines 1957-62

Ireland 45.0 Caltex/Esso/Shell New refinery near

,hitegate Pay 1957-61

Netherlands 30.0 Caltex Refinery extension in Botlek 1958-62

45.0 Standard Oil Co. (N.J.) New refinery at Rotterdam 1957-60

Norway 30.0 Esso New refinery at Oslo Fjord 1957-60

Spain 10.0 General American Oil Co.of Texas Exploration 1958-62

Turkey 2.5 Bolsa-Chica Oil Corp. Exploration 1958-61

- Gulf/Tidewater Exploration 1958-61

48.0 Socony/1,obil/Caltex and New refinery at Mersin 1957-61

British associates

U.K. 56.0 dtandard Oil Co. (N.J.) Tanker terminal and newrefinery at Ailford Haven 1957-60

- Caltex New refinery near Southampton 1958-63

Sub-total 645.5

PLANNIL CAPITAL IINVESTIENTS ABROAD BY U.S. CORPORATIONS Appendix

1953-196- Table 2

PETROLEUM"Page_5




Niddle Last:

Iran 500.0 Allen and Co. and associates Qum pipeline 1958-62

140.0 Standard Oil Co. (N.J.)/Caltex/British and French associates Capital expansion 1958

56.0 Pipeline from Gach Saran tothe iiediterranean Coast 1958-60

100.0 Standard Oil Co. (Indiana) Concession and exploration 1958-60

Iraq 84.0 Standard Oil Co. (N.J.)/Socony Mobil and British and Deep water terminal 1958-62

French associates

Kuwait 22.0 Gulf and British associates New terminal at Nina alAhmadi 1958-59

Saudi Arabia 63.0 Arabian American Oil Co. Gas injection plant andother developments 1958

Sub-total 965.0

Asia and Far East:

Australia 35.0 Standard-Vacuum Oil Co. New refinery at Adelaide 1958-63

0.5 Vacuum Oil Co. New terminal at Esperance 1958

PLANNED CAPITAL INVESThENT' _BOAD BY U.S. CORFORATIONS Appendix1958-1962 Table 2

PETROLEUMPage 6



Asia and Far Last (continued):

India 10.0 Standard-Vacuum Oil Co. Bombay refinery expansion 1957-58

Indonesia 80.0 n i Refinery expansion atSumatra 1957-59

50.0 Caltex Expansion of refinery 1957-61

Pakistan - Standard-Vacuum Oil Co./Sun/Hunt/Tidewater Exploration 1958-61

Philippines 35.5 Socony-Vacuum Oil Co. New refinery on BataanPeninsula 1958-61

- Gulf Oil Co. New refinery 1958-61

Singapore 0.3 Socony-Vacuum Oil Co. New terminal 1958

Sub-total 211.3

Africa:

Algeria 4.6 Cities Service Company EXploration 1958

- Gulf/Plymouth/Sinclair/Newmont 1958

2.2 Phillips Petroleum Co. 1958

PLA'Ni L CAPITi,L INVE'MT,S AERkOil BY U.S. CORfORATIONS Appendbc

19j38 1)62 Table 2

PTRTOLEUMhPage 7


2. Eastern lleriisphere (continued):

Africa (continued):

French Vest Africa - Plymouth Oil Co. Ivory coastal exploration 1958

Portuguese west Africa 6.0 Gulf Oil Co. Exploration 1958-62

Portuguese Guinea 7.0 Standard Oil Co. (iN.J.)/Gulf " 1958-62

Libya 60.0 Standard Oil Co.(i.J.)/Gulf/Caltex and associates "f 1958-60

Somalia - Socony-Vacuum Oil Co. " 1958-61

Tunisia 4.0 Conorada Petroleum Corp. " 1958-62

1.0 Amerada/Continental/Ohio " 1958

6ub-total 84.8

Total 2 1,906.6

Total 1 and 2 3,527.2

PLANNED CAPITAL INVESTlENTS ABROAD BY U.S. CORPORATIONS Appendix19,"8-1962 Table 3

PUBLIC UTILITIESPage 1


1. western Hemisphere.

Canada 30.0 International Utilities Corp. Carbon gas plant and capitaldevelopment in Western Canada 1958

330.0 " " i Gas pipelines from Alberta toCalifornia 1958-62

Sub-total 360.0

Latin America:Brazil 250.0 American & Foreign Power Co. Atomic power plant 1957-62

Chile 60.0 I n it n Atomic power plant 1957-62

40.0 International Telephone & Expansion of telephoneTelegraph Co. facilities 1958-62

Cuba 140.0 American & Foreign Power Co. Atomic power plant 1958-62

60.0 International Telephone & Expansion of telephoneTelegraph Co. facilities 1958-62

Cuba (includingother LatinAmerican countries) 95.0 American & Foreign Power Co. Plant expansions 1958

PLAN2ED CAPITAL INVESThENTS ABROAD BY U.S. CORPORATIONS Appendixl9-8-1962 Table 3

PUBLIC UTILITIESPage 2

Country of Amount in millions PlannedDestination of U.S. dollars Investing Company Purpose fn

1. iestern Hemisphere (continued):

Latin America (continued):kexico 50.0 American & Foreign Power Co. Plant expansions 1958-62

Sub-total 695.0

Total 1 1,055.0

2. Eastern Hemisphere: -

Total 1 and 2 1,055.0

The Company announced recently that due to high installation costs and other problems, conventional generatingunits may be built instead.

PLANNED CAPITAL INVESTM.EN\TS AROAD DY U.S. CORPORATIONS Appendix19<8-1962 Table 4

hINING AND SnELTINGPage 1


1. 'estern Hemisphere:

Canada 50.0 American Smelting and Quebec asbestos project 1957-60Refining Co.

10.0 Anaconda Co. To buy mining properties inOntario 1958-60

1.0 Dow/Rio Tinto New thorium plant in Quebec 1958

8.5 Hanna (M.A.) Co. New copper mill 1958-59

175.0 Iron Ore Co. of Canada Quebec-Labrador miningproject 1958-62

10.0 Jefferson Lake Sulphur Co. New plant at Calgary 1953-60

4.0 Johns-Manville Co. Quebec asbestos project 1958-60

- Kennecott Copper Corp. Copper project 1958-60

10.0 National Cypsum Co. Quebec asbestos project 1958

3.0 Newmont Mining Corp. Nickel plant in BritishColumbia 1958-60

20.0 Potash Co. of America New plant at Saskatchewan 195,8-59

Sub-total 291.5

PLANNED CAPITAL INV SThhNT.) ABrcOAD BY U.S. COAFORATIONS Appendix19J n-1962 Table 4

.ININ\G AND sithLTINGPage 2




Latin America:

Brazil - Hanna (M.A.) Co. Expansion of Morro Valhoiron mine 1958-60

Cuba 119.0 Freeport Sulphur Co. Cobalt-Nickel miningproject at Moa Bay 1958-60

Peru 30.0 Newmont Miining Co. 11,ining project 195a

Venezuela 200.0 American Smelting &Refining Co. Aluminium project 1957-62

Sub-total 349.0

Surinam 150.0 Aluminum Co. of America Aluminum smelting atPeranam 1958-62

Sub-total 150.0

Total 1 790.5

PLANED CAPITAL INVESTMENTS ABROAD BY U.S . CORPORATIONS Appendix

1)rP-1962 Table 4

kINING !ND 3.ELTINGPage 3



Australia 7.8 American Smelting & Refining Copper refinery atCo. iount Isa mines 1958

Belgian Congo 150.0 Reynolds 1etals Co. New plant 1957-62

French Guinea 40.0 Olin hathieson ChemicalCorp. Fria project 1957-62

rLhodesia 45.0 American Pietal Co. Copper mining 1957-62

South Africa 28.0 Engelhard Industries hining investment 1958-62

Total 2 270.8

Total 1 and 2 1,061.3

PLANIEL CAPITAL INVESTMENTS AB \01D BY U.S. CORPORATIONS Appendix1953-1962 Table 5

IRC AND STEELPage 1


1. WIestern Hemisphere:

Canada - Armco Steel Co. New plant, Ontario 1958-59

- Jones Laughlin 3teel Hilton mining project inCorp. Quebec 1958-63

200.0 U.S. Steel Co. Cartier mining project atifount heed, Quebec 1957-63

10.0 " " " Buys iron mines inN. Ontario 1958-63

sub-total 210.0

Latin America:

Brazil/Chile 3.0 Armco Steel Co. New plants in Rio de Janeiroand Santiago 1958-59

Venezuela - U.S. Steel Co. Iron ore project of CerroBoliva 1958-61

6o.u " " " To build loading pier forsubsidiary 1957-62

33.0 t " Plant expansion 1958-63

Sub-total 96.0

Total 1 306.0

PLANNED CAPITAL INVESThENTS AUBROAD BY U.S. CORPORATIONS Appendix

1953-1962 Table

IRON AND STEELPage 2



Europe:

Italy Armco Steel Co. Rome plant 1958-59

Total 2

Total 1 and 2 306.0

PLANNEL CAPITAL IpVSTMETS ABROAD BY U.S. CORPORATION6 Appendix19;8-1962 Table 6

CFLE,m-IC!L IFLUSTRYPage 1

Country of Amount in millions PlannedLestination of U.S. dollars Investing Company Purpose for


Canada 50.0 Allied Chemical Corp. New subsidiary plant 1958-59

15.0 American Cyanamid Co. New urea plant 1957-61

9.0 Dow Chemical Corp. New plant at Sarnia 1958-59

12.0 Dupont (E.I.) de Nemours & Co. Capital expenditures 1958

14.3 " " Plant and research center 1958

3.5 Monsanto Chemical Co. New caustic soda chlorineplant in Quebec 1958

20.0 Potash Co. of America Fertilizer plant atSaskatchewan 1958-

4.5 Union Carbide Co. New Toronto office 1958

Sub-total 128.3

Latin America:

Argentina 0.6 Allied Laboratories New office 1958

5.6 Monsanto Chemical Co. Plastics plant 1958

Brazil 11.0 W.R. Grace & Co. andGerman associates Chemical plant 1958-60

- Dow Chemical Co. Sao Paulo plant 1958-60

PLANNED CAPITAL IhVEST1MNT3 ABROAD BY U.S. CORPORATIONS Appendix195C-1962 Table 6

CHEMICAL INDUSTRYPage 2




Brazil-iviexico 25.0 American Cyanamid Co. Plant expansion 1958

Colombia 1.0 It New Bogota office 1958

Kexico 2.8 DuPont (E.I.) de Nemours & Co. New plant 1958-59

- Hercules Powder Co. New plant 1958-59

24.o Monsanto Chemical Co. Phosphoric acid plant inNew Kexico City 1958

Sub-total 70.0

West Indies 16.0 W.R. Grace & Co. Petrochemical plant inTrinidad 1958-60

Sub-total 16.0

Total 1 214.3

PLiiAlNbN CAPITAL IlIVSTLENTS ADROAD BY U.S. CORFORATIONS Appendix1955-190? Table 6

CHEalCAL INDUSTRYPage 3



Europe:

France - Warner-Lambert Plant expansion 1958

Ireland 10.0 Chemistrand Plant expansion 1958-60

Italy-U.K. 30.0 Pzizer Plant expansion 1958-60

Netherlands 2.2 American Cyanamid Co. New firm at Amsterdam 1958

U.K. 40.0 Union Carbide Co. Plant expansion 1958-60

10.0 Monsanto Chemical Co. Fibre plant at Coleraine 1957-58

Sub-total 92.2

Australia 1.2 Dow Chemical Co. and Polytyrene plant in NewAustralian associates South Ivales 1958

18.0 Eastman Kodak Co. New 1ielbourne plant 1958-63

- M1onsanto Chemical Co. Buys subsidiary in Relbourne 1958

Sub-total 19.2

iI

including unspecified portions for India and other countries.

PLANNED CAPITAL INVESTkMETS AF D BY U.S. COhFORATIONS Appendix1950-196£ Table 6

CHIEHIlL INDUSTRY____ ___ ____ ___ ____ ___ ____ ___ ____ ___Page 4

Country of Amount in millions

Destination of U.S. dollars Investing Company Purpose Planned


India - Merck & Co. Inc. Drugs plant at Cali 1958

Total 2 111.4

Total 1 and 2 325.7

PLANNED CAPITAL INVhTbETS kh BACAT BY U.b. COhPOhkTIONS Appendix195 8-1962 Table 7

AUTOAOBILXS. P iATS AND TIRiSPage 1



Canada 2.5 Goodyear Tire & Rubber Co. New distribution centerat Toronto 1958-59

3.0 Houdaille-Hersey Corp. Capital expansion ofOntario plant 1958

3.0 Iviack Trucks, Inc. New Toronto office 1958

Sub-total 8.5

Latin America:

Brazil 20.0 Ford Mdotor Co. Plant expansion 1957-61

10.0 General Motors Corp. Automobile plantexpansion 1957-61

- International Harvester Co. Truck plant expansion 1958-59

Colombia 2.0 Kaiser Industries Automobile plantexpansion 1958

Cuba - U.S. kubber Co. New plant 1958

Venezuela 10.0 Chrysler Corp. Automobile plant

expansion 1958-61

Sub-total 42.0

Total 1 50.5

PLANNED CAPITAL INVEST!,'1ENT APCAD BY U.S. CORPORATIONS Appendix

19)8-1962 Table 7

AUTO~ 0ILi, jrAhTS AD TIRESPage 2



Europe:

France - U.S. Rubber Co./Ugine New synthetic rubber plant 1958

Germany - International Harvester Co. Buys plant 1958

20.0 Ford fiotor Co. Plant expansion 1957-53

Netherlands - Goodrich Tire 8 Rubber Co. New affiliate at Arnhem 1958

Spain 2.5 Firestone Tire & 1-ubber Co. Plant at Bilbao 1958

U.K. 8.5 U.S. Rubber Co. hxpansion of Edinburgh plant 1958

Sub-total 31.0

Australia 41.0 Ford Motor Co. Expansion of plants atHielbourne 1958-60

2.0 International Harvester Co. Brisbane plant 1957-58

2.3 Kaiser Industries New automobile plant 1958

Sub-total 45.3

1LANMED CAPITAL INVLOT)E&NTS AuKJD BY U.S. CORPOkATIO-IS Appendix

1958-1962 Table 7

AUTO 0?ILL1, PAlRTS AND TIRESPage 3



iviorocco - General Tire & Rubber Co. New subsidiary 1958

Total 2 76.3

Total 1 and 2 126.8

PLAINED CAPITAL INVESTMENTS ADEOAD BY U.S. CORPORATIONS Appendix1958-1902 Table 8

OTHE i;ANUFACTUhINGPage 1


1. western Hemisphere:

Canada 31.5 Celanese Corp. Pulp mill in British Columbia 1958-61

29.0 Crown Zellerbach Corp. Paper plant, Elk Falls,British Columbia 1957-60New mill in Newfoundland 1958-63

8.0 General Electric Co. Capital expansion 1958

0.5 Heinz (H.J.) Company New warehouse in Toronto 1958

- Kimberly-Clark Quebec plant expansion 1958

4.0 Proctor & Gamble Co. New shortening plant in Nontreal 1958

5.0 Westinghouse Electric Co. Capital expansion of subsidiary 1958

Sub-total 78.0

Latin America:

Argentina - Deere & Co. New tractor plant 1958-61

Brazil-Cuba-Piexico 50.0 Va.R. Grace & Co. Paper manufacture 1958-60

Brazil - Champion Paper & Fibre Co. New branch 1958-60

80.0 Olin-111athieson Paper mill in Catarina 1958-60

PLANiii CAPITAL Ii1Vo,ThNLATS UP:0AD BY U.S. CORPORATIONS Appendix150-%1962 Table 8

OTHEh ?VANUFACTURINGPage 2


1. IWestern Hemisphere (continued):


Cuba - Owens Illinois Glass Co. New branch 1958-60

Mlexico 2.0 Ingersoll-Rand Co. Oil equipment plant 1958-59

Puerto Rico 2.0 Beaunit Mills New polymer plant 1958-60

Sub-total 134.0

Total 1 212.0


Europe:

France-Netherlands - International Business 1958Machines New plants

Germany - North American Aviation New affiliate 1958

3.6 Deere & Co. New tractor plant 1958-59

U.K. 1.6 Crane Co. Foundry expansion 1958-60

Sub-total 5.2

PLANNED CAPITAL INVETRENTS ABROAD BY U.S. CORPORATIONS Appendix1958-1962 Table 8

01HER hANUFACTUaINGPage 3



Australia 26.01/ Colgate Palmplive Peet Co. New plants 1958-61

12.5 Timken Roller Bearing Co. New plants 1958-61

India - Johnson and Johnson New plant in Bombay 1958

Israel 10.0 Hudson Paper Co. New paper mills 1958-59

Sub-total 48.5

Total 2 53.7

Total 1 and 2 265.7

1/ Including unspecified portions for Italy and Germany.2/ Including unspecified portions for Canada and France.

PLANNED CAPITAL INVESTiENTS A?fOAD BY U.S. CORPORATIONS Appendix1958-1962 Table 9

TRtADE IND SLVICES

Country of Amount in millions Plannediestination of U.S. dollars Investing Company Purpose for

1. Western Hemisphere:

Canada 27.0 montgo-mery Vard Co. New branch at iviontreal 1958-59

12.0 Prudential Insurance Co. New offices at Toronto 1958-60

100.0 webb and Knapp Construction project inMontreal 1958-62

kexico - Hilton Hotel Corp. New hotel under construction 1958-60

Venezuela 12.0 " " " New hotel in Caracas 1959-62

Trinidad 5.5 I it i New hotel 1958-59

Sub-total 156.5


Kenya 1.0 20th Century Fox To build cinemas 1958-59

Australia 5.6 Searj, Roebuck & Co. To establish new branchesin Bankstown 1958

Sub-total 6.6

Total 1 and 2 163.1

this report is not to be published nor may...

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