0003230
G.F. 323
CONFIDENTIAL
27
fluctuations but the average profit on sales was about
half what it was on all durable goods.
63.
Mr. Nehmer emphasised that this information was
based on published data regarding public companies which
did not represent the bulk of the business and should not
be taken as a firm indicator.
64.
Mr. Stewart said that in the U.K. the profitability
of the small U.K. plant was expected to decrease and two
thirds of the companies to go out of existence through
bankruptcy. He expected to see a similar pattern occurring
in the U.S. and was not therefore impressed with the
information on reduced sales, production and profit adduced
so far.
Mr. Nehmer explained that the US companies were
not large, were frequently under capitalised and faced
with strong competition from inports. He was not saying
that imports were the sole cause of the difficulties which
faced these companies but he believed they were a major
and significant factor. The U.S. Government could not
say to Company X that had just been forced to close down
that the closure was due to inefficiency and not to imports.
The company would not accept that.
65.
Mr. Stewart said that the U.K. Government showed
the figures to companies in difficulties to bring home to
them that they were inefficient and not suffering at the
hands of imports. Nr. Nehuer said this was where the
/policies
CONFIDENTIAL
Page 105Page 106