HomeMy WebLinkAboutM-76-044976 41
Lcwii cR1cdjrnmtiet
135O WEST 29+H STREET
MIAMI BEACH. FLA 33'4O PHONE 532-351
WHY A BICENTENNIAL PILGRIMAGE TO EUROPE?
LAST DECEMBER THE CITY OF MIAMI ORGANIZED A TRIP
OF FRIENDSHIP TO COLOMBIA AND VENEZUELA, THE PROJECT WAS A
GREAT SUCCESS FROM POLITICAL, CULTURAL AND ECONOMIC POINT OF
VIEW. TRIPS OF THIS KIND CAN AND SHOULD BE ORGANIZED MORE
FREQUENTLY, MAYBE EVEN EVERY YEAR, IN ORDER TO KEEP OUR RE-
LATIONS WITH THE NEIGHBORS ALIVE AND WELL,
BUT THIS BICENTENNIAL YEAR CALLS FOR SOMETHING
VERY SPECIAL; FOR AN ACT AS UNIQUE AND UNREPEATABLE AS THE
GREAT OCCASION WE ARE CELEBRATING.
1 AM A NATURALIZED AMERICAN, A FORMER EMIGREE,
WHO MADE HER (DAY TO THIS COUNTRY DIRECTLY FROM THE WAR -TORN
EUROPE. I VIVIDLY REMEMBER THE GREATNESS, POWER AND HOPE WHICH
WAS AMERICA TO US, EUROPEANS, DURING THOSE AWESOME DAYS. WHAT
WOULD EUROPE BE TODAY IF AMERICA LEFT IT TO ITS OWN FATE AT
THAT TIME? WHERE WOULD THE WORLD BE TODAY WITHOUT THE AMERICAN
SACRIFICE IN WORLD WAR II?
THESE ARE NOT RHETORIC QUESTIONS AND THEY NEED TO
BE ASKED TODAY, DURING THIS BICENTENNIAL YEAR. BECAUSE TOO MANY
ALREADY TEND TO FORGET THE PRICE AMERICA PAID TO HELP BRING
THE CRAZED WORLD BACK TO SANITY; BECAUSE TOO MANY, IN THIS
COUNTRY AND ELSEWHERE, RECKLESSLY QUESTION THIS NATION'S GREAT-
NESS AND EVEN ITS MOTIVES; BECAUSE TOO MANY MISREAD THE PROCESS
OF SOUL-SEARCHING AMERICA HAS BEEN INVOLVED IN RECENTLY.
SO, IN THIS BICENTENNIAL YEAR, WE MUST NOT FORGET
ABOUT THOSE AMERICANS WHO PAID THE PRICE OF BLOOD TO LIBERATE
OTHERS, IF WE DON'T WANT THE WORLD TO FORGET ABOUT AMERICA'S
CONTRIBUTION TO THE CAUSE OF FREEDOM. IN EUROPE ALMOST EVERY
VILLAGE CHERISHES THE MEMORY OF ITS WAR HEROES, EVERY ANNI-
VERSARY IS AN OCCASION FOR A PATRIOTIC REFLECTION. THIS IS
A VERY MEANINGFUL AND EDUCAT?ONG CUSTOM: SHOULDN'T WE TRY TO
DEVELOP IT HERE, IN OUR COUNTRY, TOO?
LET US, THEN, GO TO EUROPE AND VISIT THOSE BATTLE-
FIELDS WHERE OUR AMERICAN SOLDIERS FOUGHT FOR "THEIR FREEDOM
AND OURS" AND LET THE EUROPEANS KNOW THAT WE CHERISH OUR PAST
AS MUCH AS THEY DO THEIRS. LET IT BE A PILGRIMAGE TO HONOR
THOSE WHO SACRIFICED EVERYTHING FOR THE SAKE OF THE PEACE AND
FREEDOM WE ALL ENJOY TODAY. FOR AMERICA WILL BE RESPECTED ONLY
AS MUCH AS SHE RESPECTS HERSELF AND HER HEITAGE.
PLEASE READ THE ENCLOSED NEWSPAPER ARTICLES, DOESNi1 IT
INSPIRE OPTIMISM TO KNOW THAT THE EUROPEANS ARE INVESTING IN OUR
COUNTRY? THE QUESTION IS: &HY NOT ALSO IN FLORIDA? TWO OR THREE
INVESTMENTS OP THE KIND DESCRIBED IN THE ENCLOSED PRESS REPORTS
COULD VERY WELL SOLVE OUR UNEMPLOYMENT PROBLEM! BUT TO MAKE THIS
HAPPEN, AND TO START A MEANINGFUL PLOW OP EUROPEAN TOURISM INTO
PLORIDA, WE MUST ESTABLISH DIRECT ANO CLOSE LINKS WITH OUR EUROPEAN
FRIENDS, WE MUST ENCOURAGE THEM TO TAKE A CLOSER LOOK AT OUR CITY
AND STATE► AND THIS IS ANOTHER PURPOSE GP THIS BICENTENNIAL JOURNEY,
SO LET IT BE A JOURNEY TO THE PAST AND TO THE FUTURE
AT THE SAME TIME, LET US PAY A TRIBUTE TO OUR AMERICAN HEROES WHO
FOUGHT FOR EUROPE'S FREEDOM AND LET US BE AMBASSADORS OF FLORIDA--
A YOUNG, DYNAMIC AND HOSPITABLE STATE OF AMERICA, WIDE OPEN TO ALL
U►HO WANT TO SHARE ITS GROWTH,
MRS. LEWIS S. ROSENSTIEL
U.S. LOSING RESPECT OF ALLIES ?
Some Surpris/ng Answers
America`s overseas partners know all about Water-
gate,.the debacle in Vietnam, Angola —all the humili-
ations that the U.S. has endured.
They watch with concern the no -holds. -barred U.S.
election -year debate over detente with Russia and
foreign policy in general.
They worry over signs that Americans have lost
confidence in their military might, their ability to lead
the free world, the integrity of their own leaders. A
few critics go so far as to say that America's internal
disarray makes it a less dependable ally.
Yet a U.S. News & World Report survey of opinion in
the key nations turns up a surprising conclusion: Allies
not only remain staunchly loyal to the United States.
but they also have dee res ect for its military. eco-
nomic an po itica strengt .
In Britain. even critics feel that U.S. defenses are
holding firm and the U.S. is not walking away from its
responsibilities in Europe.
A Japanese says: "We recognize the U.S. is indispens-
able —diplomatically, militarily, economically."
France, frequently the odd man out, considers itself
still an ally of the U.S. The explanation in Paris: There
is no acceptable alternative.
Cables from the magazine's bureaus abroad spell out
in greater detail the results of the survey:
WEST GERMANY: "SELBSTZERFLEISCHUNG"?
BONN
•In Government and among the people. there is little doubt
%Aere \Vest Germany stands. Despite scandals, exposes and
'occasional stumbles in Washington, this country places great
value on close partnership with the U.S.
West Germans overwhelmingly consider America to be
their best friencTin the world.
In a recent poll. the U.S. outpaced second -place France by
pearly 3 to 1 as most -favored nation. Another poll showed
that 86 per cent of all West Germans want their Government
VI forge even closer ties with the U.S.
Despite this popular sentiment, top Government officials
are seriously concerned over developments in Washington.
There is little moralizing about payoff scandals, CIA -FBI
transgressions or foreign-policy lapses. Instead, worry centers
on what appears here to be seemingly endless condemnation
by the Americans of themselves, their Government and
institutions.
The Germans have a favorite word for what is going on in
the U.S.: Selbstzerfleischung—self-laceration.
They want it stopped before America inflicts permanent
damage on itself.
FRANCE: U.S. IS UNABLE TO ACT
The United States, in French eyes, has lost its
respond to Russia's global challenge.
America has athand almost everything it needs to meet
U.S. NEWS & WORLD REPORT. April 26. 1976
PARIS
will to
the Soviet threat; a huge military arsenal, material resources,
money, manpower. All that is lacking is determination.
What brought about this slippage of American purposed
According to the h'rench: The American withdrawal from
Vietnam, the Watergate upheaval, payola scandals and other
domestic crises have plunged the U.S. into a national exami-
nation of conscience which prevents the nation from resolute
action.
Further inhibiting America, the French say, are the Presi-
dent's reluctance to make controversial moves overseas
during an election campaign and the continuing fight be-
tween the White House and Congress over which has the
responsibility for U.S. foreign policy.
"The problem," a Paris expert says, "is not whether the
U.S. is ready to face up to Soviet intimidation, or capable of
it, but whether it wants to.
"Right now, the U.S. is psychologically unable to act.
Angola is proof of this. But you can be assured that, if the
challenge becomes too bold or the provocation too brazen,
The U.S. will regain its will to defend itself and its allies."
BRITAIN: MORE DEPENDENT THAN EVER
LONDON
Britain's faith in the value of its American connection
remains undiminished.
In fact, British dependence on the U.S. probably is, greater
today than at any time since World War II. It is likely to
increase in the future.
The major reason is economic. As successive crises force
the Government to cut back on military spending, Britain
must rely more and more on the U.S. and the Atlantic
Alliance for its defense.
And despite doubts expressed in some European capitals
over the depth of the American C'ou niitttlent to \Vestern
it nl R,Syi.fi iP
"LEAVE ME IN PEACE —CAN'T YOU SEE I'M HATCHING?"
U.S. allies worry that heated presidential -campaign debate on
Angola, Soviet military might leaves America too preoccupied.
31
U.S. LOSING RESPECT?
tcontinued Iron preceding pApeI
Europe, the British like what they see: U.S. defense spending
is holding firm. There is a new, cold -eyed approach to the
problems of detente with Russia. Moves in the U.S. Congress
to withdraw American troops from Western furope have
gotten nowhere.
Rather than_queshotithe reliability „of.‘ the U,S._as an ally.,.
British experts are uneasy oVer the ong,term_reliability
, uropeahs,as partners_oftiAmerica.
In the past, these analysts say, NATO's strength was based
on Alliancewide opposition to Communism. Today, over U.S.
objections, some Europeans no longer view Communism as a
threat and are moving toward acceptance of Communists in
Alliance governments.
So far, there has been no evidence that the U.S. is losing its
will to defend Western Europe. But the British fear that the
conflicting hard -soft attitudes toward Communism could one
day alienate America and tear the Atlantic Alliance apart.
ITALY: "TOO WEAK TO STAND ALONE"
ROME
Here in Italy the U.S. still stands
high in spite orail America's troubles at
"tome and abroad.
Says one Italian official: "We not
only still regard America as a reliable
ally, we regard it as our No. 1 ally —the
one we count on more than any other
h defend us and to deter the Soviet.
Union."
Islost Italians appear to see no choice
but to maintain close tic's with the U.S.
Even the Communists proclaim sup-
port of NATO, although they say Italy
should follow the lead of other Medi-
terranean nations in restricting and
reducing the number of U.S. bases
here.
"Italy is too small and weak to stand
alone," a Roman businessman com-
ments, "and ‘Western Europe is not yet
ready to stand alone."
A dissenting voice• on U.S. reliability
comes from a career official high in
Government, a man generally known
to be pro -American. Ile says: "The U.S.
still is a giant in our eyes, but a weakened
Lockheed and Watergate scandals, the CIA
Vietnam —all appear to have taken their toll.
"For these reasons, we do not feel the U.S. is a very strong
ally at this time. Our two nations remain on the same side of
the fence, with excellent relations, but there is not the same
almost -automatic reliance on America to come to our
rescue."
unrealistic. As for accotntnodatiotts with MoscOW, Canada
can identify with most American principles but with few if
any Soviet principles."
Mote than anything else, Washington's policies toward
southern Africa and Cuba raised eyebrows here. froth Otta-
wa's point of view, Soviet -Cuban intervention in Angola was
less a sign of Communist ekpansiottiSin than of U.S. failure to
come to grips with the aspiration§ of black Africa.
Washington's threats toward Havana also are criticized.
Says one official: "Willingness of a powerful country like
the U.S. to confess so openly its frustrations with such a
minor power as Cuba is bewildering."
AUSTRALIA: BEST FRIEND AVAILABLE
CANBERRA
Australians put great reliance on the White House. They
are less certain about the dependability of the U.S. Congress.
A huge country about the size of the continental U.S., but
with a population only slightly more than the State of
Pennsylvania, Australia counts on America for its defense.
In sharp contrast to the previous Labor Government,
Prime Minister Malcolm Fraser advocates a strong American
presence in the Indian Ocean, includ-
ing construction of a U.S. base on
Diego Garcia island, to counter grow -
Hard -up Britain relies more than ever on
U.S. and NATO for its military defense.
giant. The
revelations,
CANADA: NO ALTERNATIVE TO U.S.
OTTAWA
Reliability of' the U.S. as an ally is as unquestioned as ever
in Canada. But there are gnawing doubts about what some
top officials call "quality of leadership."
"The U.S. has had its share of troubles, and the U.S. psyche
has been under assault and suffered reverses," says a Govern-
ment foreign-policy expert. "But those of us who know the
U.S. well, know it remains an immensely creative, dynamic
nation capable of great things."
Another foreign -affairs adviser puts it this way: "There is
no alternative to American leadership. Going it alone is
32
ing Russian naval strength in the
region.
Nevertheless, the Fraser Govern-
ment worries whether a Democratic
Congress will give a Republican Ad-
ministration the military wherewithal
to permit the U.S. to honor its defense
commitments. Giving substance to
these fears in Australia was the con-
gressional ban on American aid to anti-
Communist forces in Angola.
For all these misgivings, there is con-
viction in Canberra that the U.S. is the
best friend available and that Australia
has no choice but to put all its defen-
sivt' eggs in the American basket.
JAPAN: TIES ARE STRONG
TOKYO
Foruien and domestic setbacks for
the U.S. inevitably raise misgivings in
Japan about America's strength and
dependability. Yet ties between the
two Pacific powers remain strikingly strong.
"In Japan, as well as in the rest of the non-Communist
world, the U.S. is considered the most reliable ally a country
can have," a veteran Japanese diplomat comments.
Japan's businessmen agree. Says Yoshiya Ariyoshi, chair-
man of the nation's biggest shipbuilding company: "Although
its financial position has weakened, the U.S. is amazingly
sound and is still the economic mainstay of the Western
world."
The newspaper, japan Times, summed up Japanese atti-
tudes toward the U.S. this way:
"There are strong indications that the United States is
rapidly overcoming its Vietnam ailment, and it is believed
and hoped that after this year's elections, it will again play its
proper role as a world leader.
"Consequently, it would be very risky for the Soviet Union
to assume that the U.S. response to Russian adventurism in
Africa and elsewhere would in the future be weak, too. The
Soviet Union's actions and policies are threatening detente
and driving the U.S. into an anti -Soviet position which
cannot be beneficial to Moscow."
U.S. NEWS & WORLD REPORT, April 26, 1976
i
i
a
MORE FOREIGN INVESTORS
ARE BEATING A PATH TO AMERICA
INVESTMENTS FROM . OVERSEAS,now
buildingat a fast c1ip,.are .giving the
t1.S._recovet-y an added_shot in the artn,
Foreign .citizens .are. gobbling _uu
American stocks and other securities,
t'he latest Government estimatepegs
their holdings at about 85 billion dollars,
20 times the size of the portfolio in 1941,
when the last major survey was taken.
Also on the upswing: direct invest-
ment by overseas•concerns in such U.S.
enterprises as manufacturing, oil, insur-
ance and banking. These investtnents,
which give foreign shareholders full
ownership or a voice in the manage-
ment of a company, have been climbing
at the rate of 20 per cent annually and
now total about 25 billion dollars.
What is luring this capital to the U.S.?
Cables from U.S. News & World Report's
foreign bureaus cite several factors: the
size and potential of the American mar-
ket, soaring labor costs abroad, progress
in curbing inflation and political stability
in the U.S.
Almost every week brings ne'w word
of foreign firms seeking a stronger foot-
hold in the U.S. economy.
Auto industry. Any day now. Germa-
ny's Volkswagen is expected to an-
nounce its decision to begin a nwjor
asscinlilvv--line operation in this country.
t least 2l)t)inil ion cicil :ere �yill be in-
voIyed in start -tin costs alone, and sot,,
si3OOOjobs will open u11 for U.S. workers.
Volvo. the Swedish auto maker , -is al-
reac vv�iuiTding_a _production plant in
r�,inia� Thit liiciInv_ iti_ scheduled to
open in 1977, with production targeted
for 1t)0.000traits
Germany s chemical firms are e,ju•tlly
en husiastic about .the-y.c'teutial. of..the
American market.,, B_ASI•: baas itivestc
nearly 760 million dollars in this country
and pions to spend another 90 million in
the immediate future.
Besides chemicals and autos, other
prime areas of investment for Germans
include electrical components, iron and
steel, insurance, real estate and banking.
German businessmen cite three main
advantages of producing in the U.S.:
being in the world's largest market,
avoiding American trade barriers and
trimming labor costs.
In terms of U.S. dollars, unit labor
costs in manufacturing rose 17.4 per
cent in West Germany from 1970 to
1975, while the increase was only 6.4
per cent in the U.S.
With their own stock market leveling
66
off of late, Gentians are also turning
their attention to the U.S. market, which
they believe will be bullish at least
through the November election, Among
their favorite issues: Borden, Cities Ser-
vice, Delta Air Lines, Emerson Electric,
IBM, Monsanto and Xerox. Bankers in
13elgium. Holland and Switzerland ate
also recommending that investors buy
American stocks.
Swiss experts take the view that
"ca remains thehiggest and most
promising market." Thev believe that
:'private enterprise is "safer" in the U.S
than in Europe, where th.e.y predir't
more Government intervention and po-
litical risks.
In One Decade
A TRIPLING OF
FOREIGN ASSETS
IN THE U.S.
Total Direct Foreign
Investment in U.S.
$25.0
billion
20
BIL.
515
BIL.
510
BIL.
$8.8 billion
s5
BIL.
0
1 -1-1 1 1 r 1 c 1 t
'65'66 '67 '68 '69 '70 '71 '72 '73 '74'75
(est.)
LATEST TALLY
OF BIGGEST INVESTORS
United Kingdom $ 6.1 billion
Canada $ 4.8 billion
Netherlands
Switzerland
Germany-
S 2.8 billion
$ 2.1 billion
$ 1.1 billion
France 3700 million
Japan 3500 million
Source: U.S. Dept. of Commerce. 1975 estimate by
USNSWR Econcimic Unn
Threats of tore Government control
are said to be particularly great for
chemical and pharmaceutical Artns.
That's one reason why companies in
these fields, such as Ciba-Geigy and
Hoffmann -La Roche, are stepping up
their U.S. operations.
Total Swiss direct investment in this.
country is mote than 2.1 billion dollars,
with half in chemicals, 15 per cent in
foods and more than 10 per cent in
aluminum and metal products.
Nestle, the Swiss food concern, pug-
chased Stouffer's for about 100 million
c 1lars and recently acquired tiara -ow
of Chicago's Libby, McNeill & Libby to
strengthen its position in the frozen -
foods, fruit and restaurant businesses.
In Britain, the country with the great-
est financial stake in the U.S., companies
view conditions here as an appealing
contrast to the discouraging economic
situation they still face at home. Inflation
has averaged 14 per cent over the last
six months and output is at 1971 levels.
Among British industrial investors,
Babcock & Wilcox, a power and engi-
neering group, recently paid 70 million
dollars for the Connecticut -basest
American Chain & Cable Company.
Hawker Siddeiev, an aviation-prod-
tic•ts manufacturer. has paid 37 million
c altars for a 'take in the Onan Corpora-
tion. Ind li'l li l.td., a plastics and engi•
ierinc Brill. is r, tering 30 million for
ZV1:alustrires. one of America's leading
in•oelucers of piaper-mill and textile -plant
tmat:Linerv.
British interest in American real es-
tate remains Tiii_h, too. Britain's post-
T ice pension fund, with_ isgets oLtnore
than 1.5 billion dollars, is concentrating
its investments in overseas properties,
especially in the U.S. and Canada.
The Gallic touch. The French have
not been as successful in buying up U.S.
properties. Beal -estate experts there say
that the U.S. market is the most sophisti-
cated in the world and very difficult for
a European to crack.
However, other forms of investment
are picking up fast. French direct invest-
ment in U.S. concerns more than dou-
bled from 1971 to 1974 and now stands
at more than 700 million dollars.
"French companies have poured cap-
ital into steel, chemicals, aluminum,
pharmaceuticals and mining.
Investments in the auto industry in-
clude the 300 million dollars that Miche-
lin is plowing into three U.S. tire plants.
U.S. NEWS & WORLD REPORT, April 26, 1976
The U. S. becomes
a bargain for visitors
Since 1972, when the dollar was de-
valued and airlines were first allowed
to cut foreign fares as much as 50% on
advance -booked flights, the flow of for-
eign tourists to U. S. shores' has Wen
on the rise. Last year there were about
16 million. This year they may top 18
million and spend nearly $6.6 billion
when they get here. Even though 22.7
million Americans, meanwhile, will he
spreading money abroad, the Com-
merce Dept. expects that the foreign
vacationers will chip an extra $600 mil-
lion off the nation's chronic travel bal-
ance deficit, knocking it down close to
$2 billion.
While some like to call it a $600 mil-
lion "birthday present," travel officials
talking to HUSINhss WEEK correspon-
dents here and abroad this week say
the rise in foreign travelers has more
to do with economics than the Bicen-
tennial. Indeed. Peter l.andsberger,
U. S. travel director for Deutsche
Reiseburo, a major West German
travel agent, admits he hardly men-
tions the national observance for fear
of scaring off customers anxious to
avoid any hubbub. Instead, he says,
Germans are gradually realizing that
with their Deutschemarks now worth
2.n to the dollar rather than the 4-to-1
ratio of the 1960s, they can afford a
U. S. vacation. The U.S.'. inflation rate,
stable compared to some, is also a fac-
tor; Swedish visitors to New York
City's Lincoln Center this week were
finding Manhattan prices hardly more
alarming than those they pay at home.
Shaky prices. How much Italian tour-
ists, meanwhile, will be spending in the
U.S. this year is a major question
34 BUSINESS WEEK: April 26, 1976
Swedish tourists in New York: Prices were no more alarming than those at home.
mark. TWA, Pan Am, Alitalia, and oth-
ers expect an eventual improvement
over last year for travel to the U. S.
But the shaky Lira has made pricing so
hazardous that they are generally hold-
ing off marketing their U. S. tours.
This week, for instance, TWA offices in
Italy received brochures for a 16-day
U. S. tour the airline had worked out
with American Express and others.
The prices, based on an exchange rate
of 840 lire to the dollar, were hardly
marketable; the lira had slipped to 900
to the dollar. Another inhibitor of hold
travel planning in Italy is the limit of
500,000 lire that Italians may take out
of the country. Since that amounts to
about $560. elaborate tours of the U. S.
appear virtually el iminat ed.
Despite the sinking pound, however,
British travelers to the U. S. may num-
The Bicentennial is not
the draw, say travel
officials. Economics is
her 450,000, up 3%, over last year. ac-
cording to Director Beverly Miller of
the U. S. Travel Service's British oflice.
The growth, spurred by special -fare
U. S. tours offered by TWA, Pan Am,
British Airways, and Laker Airways,
has been won against tough economic
odds. The limit on foreign currency
equal to 300 pounds sterling that the
average nonbusiness British traveler
may take out of the country had shrunk
in value from $720 last year to about
$552 last week.
The U. S. travel promotions have also
had to overcome a British preference
for Italy, Spain, North Africa, and for-
mer outposts of the Empire as vacation
spots; only 4.2% of traveling Britons
customarily vacation in the U. S.
"North America," explains a Thomas
Cook Ltd. spokesman in London, "is
just not exotic." But now, with prices
soaring on the Continent, neither does
it seem so expensive.
The U. S. Bicentennial as a drawing
card has received its strongest push in
}'ranee. "Almost every trip from
'ranee to the U. S. this year has a Bi-
centennial angle," says Miguel Borda,
USTS deputy director in Paris. About
205,000 Frenchmen, compared to
157,000 last year, are expected to visit
the States. Visa applications at the
U. S. Embassy are up 30% in the past
six months compared with the same pe-
riod last year. Even so. travel officials
suspect that much of the impetus
comes from the Olympics in Montreal
and from the U. S. visit next month of
President Giscard d'Estaing.
Doing the Wild West. Although "bargain"
tours pegged to the Bicentennial are
being pushed from Tokyo to Frankfurt,
travel in the U. S. is hardly cheap for
foreigners. That is because they try to
encompass the three main attractions
for foreign visitors —New York, San
Francisco, and the Wild West, espe-
cially_ the Grand Canyon. A typical
three-week tour offered by Necker-
mann Travel, one of Germany's largest
tour planners, costs $2,000. "One of our
most popular tours," says a TWA
spokesman in London, "is a 14-day
package including a week in Los An-
geles and San Francisco, and a week at
a Western ranch for 503 pounds." Last
week that was $926.
Aware of the increasing flow of for-
eign tourist dollars, U. S. cities are
stepping un hosoitality efforts. New
York bars already are posting German -
language signs of welcome. Since No-
vember the San Francisco Inter-
national Airport has had multi-
lingual aides in the customs area. The
Boston 200, the official Bicentennial
Commission of Massachusetts, not only
encourages retailers and restaurants to
post languages spoken by their staffs,
but also offers interpreters for tours.
Anxious not to leave all the tourist
business to the major cities, the Rocky
Mountain region —with its famed ski
areas closed —is pushing some alterna-
tive ideas. On July 4, for instance,
Frontier Airlines will fly 80 Germans
to the Little Big Horn to look over Cus-
ter's last battlefield. And Western
Travel Merchants, an agency in Cody,
Wyo., has convinced 25 Liverpudlians
that they want to spend five days in
August rolling through South Dakota
in a wagon train.
s{:
N
thiliitifiimittiiititit►lil
1F30111V — West G ti`iafn,eit.
eeficlitures bit foteign travel
tout ID 1975 by some 1 .5 per
cent and, accordilag to the
Bundesbank estimates, have
exceeded DMZO b'rlliott at'?billion at the cut -rent eXctha6ge
rate).
The Bundesbank interprets
i .
Nitest:Gerrna.n SiDendj.ii
For Trlps Abroad Gains
yti.tss Lt 14tiMsa titafige fate adtvaiitaget."'The
JOUtnal.ot Cotni;nefne Stiff that in the (taffatr flaw noin :
fruit the eXpentiVe fo &taper
foreign eceintries, dearly tp7Vi=
dent last rAlnerter, treilects this
attitude.
The breakHontfi of total Ger-
than expenditures on t4uriSt f
for the 1975 April -October pe-
riod reveals the highest rela-
tive increase .in the "bent bat -
Oat strong expaitsvon as a grain" couritt+ies such as 5paftt,
clear evidence that the desire Yugoslavia, the United States
of German • citizens to travel .and knee•
abroad, dampened somewhat White the global ex -
in - the aftermath of the oil incbtvres rose during this pe-
crisis,'has again regained its riod 112.4 per rend to
potency of tote early seventies: DMt3.3 bi}}ion ($5.05 billion
This development might be the la gain s Spam and Yugo -
surprising, considering that clatter was 23.8land 15.2 per.
1975 was the • o'orst year for centvale respectively. Gtatrrtan tea-
W e s t Germany's economy velars to France Apent 17.1 per •
since the end of the war, refit .more 'during the last
points out the latest Bun- year's stammer season than
desbank monthly 1974 and thala` expenditures monthly report. But the United States were at
the usual high correlation be- DM499 million ($173 million),
tweet expenditures on foreign 18.2 per cent higher. than in'
travel and the business cycle Apra-Garber1974. - -
has been more than over- In contrast; ttie increase is ���"
components such as longer
compensated hy"structural German tourist expenditures
in Austria was k t clown to a
paid vacations, increased va-
Yet Austria, with DM.l.01 bil-
lion ($1.9 billion) income from
German tourists, remains by
far Their most Lawred vaca-
tion and, well ahead of Italy
The fact that West Germany '($870 million)) and France
has become one of the most • ($500 million).
expensive countries in the Switzerland, where German
world and the cost of vaca- tourists during the 1975 A.pril-
tions abroad often runs lower October Beason spent only 5.4
than. at home, was another per cent more than a year
significant factor behind this earlier, hes dropped to filth
development. place on the list of the most
This, evert tough the in- ravored German vacation
flation rate h.as been more mots abroad, right behind
pronounced in many foreign Spain.
. vacation spots favored by Ger- Gennan tourist traffic to
man tourists than in West Italy is the only exception in
Germany, theconsrstent pattern. favoring
Between 1972 and 1975, con- cheaper coumtries.. German
eumerprices rose in Italy and expenditures there in the 1975
Spain by over 50 per cent and sunnner season were only 10.7
in Yugoslavia by as much as per cent higher, confirming a
65 per cent. At the same time, sustained downward trend.
the cost of Living index ad-
vaneed.by "only" 22 per cent
in West Germany.
Yet this difference in rela-
tfbe price movements was
more than compensated by
the fact that the absolute cost
level of goods and services,
particularly in demand by
• tourists, is StUB lower abroad
iban at home. Moreover, price
increases in foreign .lands
have, to a large degree, been
"absorbed" by a better rate of
exchange for the much appre-
ciated deutsche mark.
According to the ca}cu.
lotions of the Federal Statis-
tics Office, the several weeks
vacation's cost, based on a
specific "German tourist
goods basket" in the summer
of 1975, was 5 per cent lower
in Austria and 13, 22, and 43
per• cent less in Stair, Italy
end Yugoslavia-respective'lyp
than for a comparable holiday
at borne.
cation bonuses, and extensive below average 7.2 per cent..offers of charter flights at bar-
gain rates, explains the Bun-
desbank.
SIRni�ffen it Factor
This development clearly
suggests that evens consid-
erable cost advantages are ig-
nored by German tourists
when confronted wit'h poten-
tial inconveniences of frequent
strikes and political in-
.statbIlity. The political unrest
iras cost. Portugal a 42.5 per
cent loss in Germane tourism
revenue's. •
On the other hand, Greece,
profiting from the stabilization
of her political situation, hes
earned $43 million from Ger-
men tourists in the 1975 sum-
mer season, a gain o135.4 per
cent over the previous year.
• The relatively mast striking.
increase in German ex-
penditures on -tourism .was
registered by the Fast Eu-•
ropean countries. At DM93
maim (>:36 ma}}inn), Bul-
garia's .receipts rose by 72 per
Cent, and those of the Soviet
Union to PM25 million (no
t7ti'•liap) for a gain 0'25 per
. Initems of their purchasing cent,
power German touristta were Although German revenues
worse off only in Pefrnarlc from foreign Lojsm, after
and Switzerland where hi 3975 two years of stagnation, rose
their money would buy 37,4 again in 1975 by 16 per cent to
and 33.7 per cent lees goods an estimated DM7 Winn
and services than at home. (42.7 billion) the West German
y4ichango EMe Mimosa deficit on tourism recount has
German sitizeats •afro t<n 1975. 'swelled to a new record high
anent an es 'tainted 3 per (eat.. of gam P1461.7 1?iition 45,3
of their' spensiab1e income ` tiHion), 44 compared with 41.7
$oreigo travel at ern. uF.. Allan r• year Winne and only
with 2.4,per Bent in 1970 ar►d a P•47 blition In 3970, Thus,
•__� aA ....,... %n.-..-$ f`nr...nnv e1,,1<.thrnn1r:d
West Germrn'
i1NINf 11N1NNIIINIIt11f11111111UIIIIfNIIiIIIIIfNINIif iNf ffIfN11111Ni111ffffNlffl)IfU111UfIiilillf II1ifNiNlilhlfif till
Winter scene
of an Inn • located in, the Harz Mount
ahead of the United States and
Japan.
Well over one-third of t h e
1975 trade surplus, estimated
at DM 37 billion (513.5 billion), •
was eroded by the net ex-
penditures of German tourists
abroad.
The Bundedbank's report
emphasizes that the net in-
come earned by many coun-
tries from German tourists
has been a considerable factor
in easing -their balance of pay-
ments 'difficulties and •a strong
prop of their economies.
For the "year ending Sept.
30,1975, the German deficit on
tourism account vis a vis
Atzgbria reached DM3.56 bil-
lion ($1.37 billion); Spain and
Yugoslavia earned a net of
DM1.3 billion ' ,5500 million),
and DM900 million ($246 mil-
lion) respectively. The tour-
ism traffic between France
•
•
Affihated with the Kriehrnn tt Nagel tritern3tionat Travel
Organization with Offices ih Abides, Augstnirg,
Berlin. Bonn. Braunschweig. Bronzes. Buenos Aires.
Cologne, Duesseldorf, Frankfurt Main. Guehtburg,
Hamburg, HanoVet, Istanbul, Jdhahrteiburg. Montreal,
Munich, Stuttgart, Toronto. Winnipeg
Tim CITY OF !tIA'TI rtCr"Tr:rTIAL PILCRIMACI
Tn rl'RO1'EA?1 'ATTL1 FI1T.;?S fl1' 1;n11LD ?'A^ II
NOTE.: This is n tentiti'Ye itinernrv, subject
to chanre. 1 t does rot ircl uc!e ranv functions
or details of services arc' its nurpose is to
rrovire a general idea of the trip. All services
ire it special de-1u::e catet'nry x'i th accornodations
in Europe's most rresti,-ious hotels.
1st r?a'• '`T"I - 111',!?'i':
3rd "71.v
- Fvenirr (per"r• "' f i i'•rit tr' t'Y't li
Cnnitn7.
- -orn.i.rS' t inn t'r Lo ''ntei , rest of tit( r'.orn in;'
nt lc i rrrrc'.
- A.fterroon.--n city} tour '.it' n special ,wide.
- 1.venino--off.icinl. function.
Ln':110::
- '`orninr'--visit to Parliar'ont.
- Afternoon --get-together for business f'.roups.
- Evening --optional theatre, night club or other
entertainment.
59 S.E 8th Street Miami, Florida 33131 (305) 371-4221 Telex. 519168 Cable: NAKUTRAVEL
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4th bay
LONDON3 = BRUSSELS
Morning depatture to Brussels (40 ttinutes flight).
• Arrival and transfer to hotel.
• Lunch: official function.
Afternoon: visit to NATO headquarters.
Evening: optional entertainment.
5th Day BRUSSELS -• THE ARDENNES
- Morning--motorcoach excursion to battlefields
of the Ardennes Forest.
* *
6th Day
In December 1944 the German forces, acting on 1'itler's
personal orders, began their bizarre onslaught in Belgium's
Ardennes Forest. The purpose was to cut the Allied Forces
in two at the weakest point of their front. A huge force
of panzer divisions and motorized infantry was concentrated
by the Germans in this desperate effort to reverse the course
of war. At Bastogne the American troops refused to surrender
in the face of seemingly imnossib]e odi's. The U.S. Commander,
Brigadier General Anthony McAuliffe, answered the German
surrender demand with a laconic: "Nuts!" But iust a few
miles away, a U.S. force of 8,fn' had to surrender to
the overwhelming German forces. This vas the biggest American
surrender at one time and place, except Bataan. "The Bulge'',
as the Ardennes adventure became known in history, was one
of the bloodiest episodes of the war in Europe.
* * *
- Late evening return to Brussels.
BRUSSELS - PARIS
- Morning --city tour of Brussels.
- Afternoon --departure by air to Paris.
- Transfer to hotel, rest of afternoon at leisure.
- Evening: official function.
7th Day
PAR/5 NOR1dAM
• Early morning departure to Cherbourg.
Today the Bicentennial Pilgrims will pay a visit to
the historic Normandy Beaches where the landing of
the Allied Expeditionary Force, on June 6, 1944, started
a new era in the history of Europe and the world.
On June 27, 1944 the U.S. VII Corps under General
"Lightning Joe" Collins liberated Cherbourg after days
of heavy fighting. This charming old city will now t.'elcome
the Florida group. A special city tour will include battle
sites and the ?dusee de la Liberation, a local memorial to
the Allied invasion.
- Transfer to hotel in Caen.
8th Day CAT N - PARI '
- Early morning departure to Paris.
- Afternoon arrival in Paris, return to hotel.
Test of afternoon at leisure.
- }:venin,.: r.et-torethc'r for business crouns.
9th Dar
loth Day
PAPTS -
- "orninr city tour.
- Luncheon: official function.
- Evening departure to Porte.
- Transfer to hotel, rest of evening at leisure.
RO'T
- Breakfast get-together for business groups.
- Afternoon: city tour.
- Evening: official function.
=4.
lith Day RONCT' =- NAPLES
Early morning departure to Maples via Monte Cassino.
V.S. Air Force played a major role in a four tnonthst long
heavy fighting for the strategically located Monte Cassino
?tonastery effectively used by the Germans to hamper. the
Allied progress toward Pomo. On May 14, 1944 Monte Cassino
was finally taken by the Polish and Eritish troops. The
way to Rome stood open and; on June 4, 1944; the U.S. Fifth
Army under General Clark triumphantly entered the Eternal
City amidst a tumultous welcome.
* * *
- Evening arrival in Naples, Transfer to hotel..
12th Day NAPLES - GULF OF SALERNO - P.n'T
- otorcoach e::cursinn to the beautiful and historic
Gulf of Salerno featurin'- "aiori, Paestum, Salerno and Sorrento.
Or ;'enterrher n. 1°L) Cie U.S. rift': r+rrly under General
;'ark C1ar'.: invaded the Tnlerno nren ''ith the U.S. Gangers
landing nt "niori . the (i )th Infantry Division near Ponte
Alla Scaffn and the 36th Tr`nntry l'ivision at the historic
Paestum. The Fifth Army fought its up the narrov leaches
and picturesoue rocby hills. The Germans offered a strong
resistance '.-itl; machine-gun and tang: fire causing many
casualties among the invaders. On September 13 a ferocious
German counter-attack vas bravely repelled by the Americans
and the German forces went into a fighting retreat.
Late evening return to Naples.
lath bay
14th Day
15th 1)zy,
NAPLES - BONN
- Morning official function:
- Afternoon: departure by air to 181h/Bonn.
- Evening: official function in BOnn.
The Federal Republic of Germany, built by the German
patriots and democrats on the ruins of the infamous
Third Reich, is today one.of the world's greatest
democracies and a staunch ally of the United States.
It is also one of the leading economic powers of
our times. Our delegation ends its flicentennial
Pilgrimage in Germany fully aware of the symbolic
meaning of this act: in that the past cannot hinder
a genuine friendship.
- :corning get-together for business groups.
- Lunch --official function.
- Afternoon: city tour including visit to Parliament.
- rvenir.^: official function.
TONN - ''IA"1
- ''nrr.i.nr, pet -together for business groups.
- At leisure.
- Afternoon departure to ?'•iami. Arrival same evening.