113. Instruction From the Department of State to Certain Diplomatic and Consular Posts0
SUBJECT
- Promotion of U.S. Exports and Travel to the United States
Joint State/Commerce Message. Measures to promote U.S. export and tourist earnings were inhibited in the post-war period by the weak financial position of most foreign countries. They spent all of the dollars available to them. Promotional efforts by United States businessmen and commercial officials could not have greatly increased the total sales of American goods and services.
For some time now, however, the situation has been markedly altered. Economic recovery and growth in most of the countries of the world has been phenomenal. The major currencies have been made convertible into dollars. Since 1950, foreign countries have gained reserves through transactions with the United States. Over the past year their gain in reserves from the United States has reached the extremely high rate of $3.8 billion.
Clearly, the current world economic situation requires the dropping of many of the emergency measures used by foreign nations to protect their balance of payments during the period of the so-called “dollar shortage”. Clearly, the United States cannot sustain for long a continued loss of gold and dollars at the current rate.
As recognition of the changed situation, the United States has led in the current drive against discrimination (see Circular Airgram 120)1 and for a general reduction in quantitative restrictions on world trade.
This instruction is in line with these efforts and is designed to improve the ability of the United States to increase its earnings through an expansion of exports and tourism.
We must assign a higher priority to specific services which our posts abroad perform to promote U.S. export trade and to eliminate restrictions on travel to the United States. These steps will be taken without reducing the activities of the Foreign Service which aid in the promotion of imports and foreign private investment. Business needs for information on foreign markets are extremely varied and, in today’s [Page 238] day’s competitive market, the active support of the Foreign Service assumes real importance in the furthering of American export interests. Where American exports are meeting the competition in world markets, they are doing it in large part by greater emphasis on product design, distribution efficiency, marketing programs, and quality. This kind of selling places a premium on prompt, factual data on foreign markets, including commercial intelligence.
At the suggestion of Commerce, American businessmen are calling on our Embassies and Consulates in greater numbers than ever before, as they go out into the market to meet the customer and to find out what he wants. A new agency index service, designed to inform each Foreign Service post of the name and address of each local representative of an American firm, has just been initiated.
The establishment and maintenance of mutually satisfactory relations between international traders in the United States and those abroad have, for many years, constituted major objectives of the U.S. Government (3 FSM 611.1). The Manual spells out the various services provided to business, either directly or indirectly, for the purpose of trade promotion and protection, including: Maintenance of Commercial Reading Room (614.3); Personal Assistance to visiting American Businessmen (617); Trade Contact Surveys (619); Trade Opportunities (640); and Travel and Tourism (680).
Commercial reading rooms at each post deserve a high priority in any program for trade development. This is the first point of contact with American business interest for many potential customers. These reading rooms should be properly located for convenient business use, and directories and other publications—needed to give practical assistance and encouragement to potential customers—should be kept current. The reporting of trade opportunities, the issuance of commercial invitations, and the preparation of World Trade Directory Reports and information about travel to the United States are among the practical services that can be developed for qualified business prospects and potential travelers to the United States who call at the reading rooms. Each post is reminded that the commercial reading room is probably the most direct expression that can be made of the interest of the United States Government in positive export trade as well as travel promotion. The establishment of such facilities in locations that help to meet the local business population at least halfway is strongly urged.
But it is not enough merely to have such facilities. They must be aggressively promoted. The U.S. Trade Missions which have visited so many countries in the past four years have proved, without a doubt, that there are many thousands of business people—even in the most highly developed countries—who do not have a good knowledge of business activities and trade opportunities in the United States.
[Page 239]The use of the extensive libraries of private business publications of the Trade Missions has created thousands of trade opportunities for American business that would not have been developed without the positive approach which the Trade Mission has used. In keeping with the current market situation, the Trade Mission program will emphasize as one of its principal objectives that of increasing the sale of American products.
A number of posts which have not had an opportunity to make use of the Trade Mission device to reach out into the commercial consciousness of their area, have nevertheless, taken steps to tell their own business community of the practical assists that they can provide to anyone desiring to do business in the United States. This has been done by means of newsletters (in Iraq and Kuwait); by speaking before chambers of commerce and trade associations (in Australia and England); and by organizing exhibits of American products at trade fairs (in Australia and Italy) to mention a few.
The Office of International Travel, Department of Commerce, is greatly impressed with the cooperation it is already receiving from Foreign Service posts in connection with the “VISIT U.S.A. 1960” program. This is the beginning of a long-range program to encourage foreign nationals to visit the U.S.A., in connection with which our own impedimenta have been minimized. It is hoped, therefore, that the posts will make every effort to encourage the removal of outmoded regulations, as well as any other obstacles that restrict travel to the United States. Press releases on “VISIT U.S.A. 1960” will be forwarded to the posts periodically by USIA for use as speech material, as well as for translation and dissemination to the local press.
This positive approach to promotion of American export interests through trade and tourism is essential if we are to demonstrate that the United States is seriously interested in doing business abroad. Greater initiative on the part of the Foreign Service in seizing on opportunities to make contact with members of the business community is needed. This effort should not be restricted to the immediate vicinity of each post, but should encompass the entire area of jurisdiction. Descriptive material on American products, as well as tourist literature, should be on hand in each commercial office. Commerce has recently invited industry to contribute such descriptive material in the way of wall mountings, photographs, and other examples of the commercial production available in the United States for use in the commercial reading rooms of the Foreign Service. On July 16 a letter to all state governors by the Secretary of State,2 asked them to make available to [Page 240] the USIA in Washington, D. C. for overseas distribution, their travel and recreational promotion material. We are relying upon the posts to make an appropriate display of these materials.
Each post is urged to review the status of its services to business, both local nationals and American travelers, to determine whether it is achieving the most effective results in terms of promoting the export of American goods and travel to the U.S.A. In this analysis, attention should be given to the extent to which the commercial functions of the post are identified in the minds of local business and government agencies having an interest in procurement, and the frequency with which the trade promotion interest of the United States is presented to them through speeches and other means; the existence of a local American chamber of commerce (or other group) which might serve to focus attention on American products and travel with as much intensity as may be the case for products of other nations; the use of local trade fairs or exhibitions, including spot displays of American products in department stores or other facilities, the ready availability of information on travel to the U.S.A., and, of course, the existence of legislation or regulations discriminating against products from the United States.
Each post is requested to comment on how we can increase U.S. exports to its area and also increase travel to the U.S.A. In arriving at any suggestions for new or expanded services, it would be useful to have the reactions of local business groups or responsible local businessmen.
In view of the special emphasis now being placed throughout the United States Government on expanding our earnings through increased American exports and foreign travel to the U.S.A., the personal attention of Chiefs of Mission to these two related fields of activity is requested. It is anticipated that this will generate maximum results.
- Source: Department of State, Central Files, 411.00/10–3059. Official Use Only. Drafted in the Department of Commerce, cleared in draft in the Department of State, and initialed for the Secretary by Theodore J. Hadraba. Sent to all diplomatic and consular posts except Budapest, Bucharest, Moscow, Prague, and Warsaw.↩
- Dated August 10. (Ibid., 400.116/8–1059)↩
- Not found.↩