Francesco/who-killed-jfk huggingface dataset:
[104-10163-10173.pdf — page 76]
# CONFIDENTIAL## GENERAL INDEX| Chapter | Subject                             | Page. || ------- | ----------------------------------- | :---: || I       | Introduction                        |   3   || II      | Analysis of the Market              |   5   || III     | Economic Feasibility of the Project |  10   || IV      | Socio-Economic Justification        |  13   || V       | Technological Analysis              |  15   || VI      | Financial Analysis                  |  19   || VII     | Appendix                            |  26   ||         | Diagrams                            | 27-28 |CONFIDENTIAL
[104-10163-10173.pdf — page 77]
# I## INTRODUCTIONThis industrial development plan is presented by the INVERNICA company located in the city of Managua, D.J. (Naval District), Nicaragua.This report is part of the preliminary study which INVERNICA has effected in regard to an investment program for the concentration of repair yards and shipyards in the Bluff-Bluefields area.These facilities will provide complete service to the fishing fleets and other boats which operate on the Atlantic coast of Nicaragua. The initial cost of building these facilities, with their necessary complex operational sections, is staggering. This cost, however, will be significantly reduced because of the equipment, experience and personnel of INVERNICA.This study analyzes the various elements of investment which totals US$ 237,000 of which I:VERNICA is contributing 68.4 percent and INFONAC 51.6 percent.Because of its status as a new industry in the country and the benefits which would accrue to the national economy, this plan may be classified as fundamental industry (Law Nr 135, Law of Protection and Stimulation for the Development of Industry, 20 March 1958) and, therefore enjoy this protection and stimulation for its full initial development.As will be seen in this preliminary report, the necessity of modern shipyards and repair yards on the Atlantic coast is of vital importance to the survival of the fishing fleets. These fleets suffer serious operational restrictions because of the absence of such services which are common to the North American and Mexican fleets. We have the necessary equipment and technical personnel, and, moreover, the full con-
[104-10163-10173.pdf — page 78]
CONFIDENTIALfidence of being able to offer the most modern and efficient services, facilities and yaris in the entire Cartibean area.13 July 1965Braggman's Bluff, FicaraguaIng. Lais A. Priete PortarINVERNICACONFIDENTIAL
[104-10163-10173.pdf — page 79]
# CONFIDENTIAL## ANALYSIS OF THE MARKETThe primary function of the shipyard will be the construction of 20-200-ton boats some steel and wood. This will include shrimpboats, lobsterboats, barges, light cargoships, and passenger and patrol launches.The secondary function of the Combine will be to provide repair and maintenance service to all boats of this class within the Carribean of equal or better quality than that offered in Mexico, Trinidad or the United States.To a degree, the shipyard will attempt specialisation in the construction of 35-ton shrimpboats for favorable competition in the world market. Construction will be attempted from steel and from wood.Construction from wood will be advantageous because of the procurement of wood in large part, if not all, from the local sawmills in Bluefields.Another advantage of construction from wood is a plan for mass production in which prefabricated sections of boats will be constructed. It is possible to visualise in the near future not only the sale of fully-equipped shrimpboats but also prefabricated parts for those shipyards which do not have the necessary machinery, wood, and other items.The Domestic and Central American Market: There are only a few countries in America which possess the facilities for construction of boats with the shrimpboat draft.These countries are Peru, Mexico and the United States. The production in Peru is small and relatively insignificant, and its influence in the Carribbean is nil. Mexican boats are constructed from good material, but because of poor workmanship together with antiquated designs, they are subject to enormous structural fatigue in heavy seas. In the United States the production of shrimpboats is limited.5
[104-10163-10173.pdf — page 80]
# CONFIDENTIALBy five main companies become at an average rate of five boats per shipyard. They are excellent products with the latest fishing and navigation equipment. Nevertheless, they are costly because of the high cost of labor and raw materials in the country. Since we possess most of the wood in Bluefields, trained and competent personnel, and a superior funcional boat design, we will be able to supply the necessities for a national fishing fleet, as well as to place these boats on the world market. We base this opinion on preliminary calculations which prove the possibility of our ability to produce an excellent boat at less cost and superior to the North American boats.## Domestic MarketThe national market: The immediate market for our shrimpboats is the domestic national fleets. The Booth Fisheries express great interest in procuring additional boats as soon as possible. It plans possible expansion to 20 more boats in the next two or three years. There is also the possibility of renting or selling these boats on terms to local individuals captaincies, as well as of stimulating investments by other domestic national capital. We estimate a national market of some 25 shrimpboats in the next three years.The demand from the rest of the Carribean [sic] can be conservatively estimated at 40 boats, totalling 75 boats, which they will purchase in/from Mexico and the United States. With our production of 15 boats during this three-year period, it is evident that we possess a rich market here in the Caribean area, not to mention the demand forthcoming from the Pacific and other large fishing areas.As regards the repair yard, we estimate servicing 400 boats annually with our modern installations. Compare this with the repair yard services of Schooner Key which is offering partial services to 45 boats annually.# CONFIDENTIAL
[104-10163-10173.pdf — page 81]
The plans for the Ficaraguan shrisyboat fleet this year call for 80 boats. A11 40 coastal boats of all types and the total comes to 120 boats which will require repair yard services four times per year(3 beanings normal maintenance and A emergency), that is, a total of 480 groundings annually. The local repair ya-ds are able to service only 100 groundings.This situation de forcef many shrimpboats to seek repairs outside of the country, either at Honduras, Mexico or the United States resultant less of fishing time and for Hicaragua.INITIALTechnical Lisitations: The lack of local technical personnel, and time required to import various mechanical parts and materials.Consideration for future expansion was taken ixts in designing the shipyard and repair yard. Carpentry and mechanic workshops alse planned. There are twe factors hywever which affect the overall operation. The first factor is the lack of personnel trained in steel construction of boats, but this will be overcome initially by personnel trained by the Company. The second factor will be resolved only by an eficient coordination with the distribution and supply persone nel of the Company in Hiasi. In this way it will be possible to have any spare parts or mtériab forwarded to Bluff within two weeks after the request is made by the local offices, (via airlène). Furthermore, plans have been prepared to stock the shipyard with spare parts.External or Internal Competition: As regards theshipyard, there is neither external nor internal competition in Central America. The only competition we will encounter will be Mexican and Nerth American, The following is a comparative study of this competitions(a) Prices. Shrimpboat (of wood, 35 tons, no motor)|               |                      || ------------- | -------------------- || Mexico        | 088 41,000           || United States | 08$ 45,000           || Nicaragua     | US$ 40,000 (Plained) |CONFIDENTIAL
[104-10163-10173.pdf — page 82]
# CONFIDENTIAL.(b) Quality of Materials.Mexico: Good materials; Bad design and construction.U.S.A.: Good materials; excellent designs; construction depends on the Company and varies from good to excellent.Nicaragua: Good materials; excellent designs and construction.(c) Channels and Policy of Distribution: Eventhough it will be difficult to compete initially in sales in the Mexican and North American markets, because of their high duties, we will unjey/unlimited market in the rest of the Carribean. We will compete favorably due to the excellent position of Nicaragua with respect to Central American, Venesuelan, Colombian, and other markets.As regards the repair yard, it is to be noted that the foreign repair yards are much expensive less than the domestic ones, sometimes up to 500 percent. From the study of typical costs of each repair yard we conclude that we are able to offer more service at equal or less cost. The following examples assume a typical beaching grounding of three days, cleaning, caulking, straightening the shaft, changing a number of shots of metal, tightening the framework or sternpests, securement of the rudder and botten, and finally, the paints(a) Cost:|              |                                           || ------------ | ----------------------------------------- || Honduras     | US$ 330 (excluding strightening of shaft) || Mexico       | US$ 350                                   || U.S.A.       | US$ 375                                   || Schooner Key | US$ 1000                                  || INVERNICA    | US$ 350 (planted)                         |# CONFIDENTIAL
[104-10163-10173.pdf — page 83]
(b) Quality of LaterHenduras GoodNexice GoodU.S.A. ExcellentSchooner Key CommonKUVERN CA Excellent (planned)Sales Estimate: Potential sales are estimated from the followingthree means: The shipyard, the repair yard, and mechanical and electricalservices to the community of the area in general.(a) Costs (assuming the stability of prices in the next three years).Shipyard: U$ 40,000 for each shrimpboat(excluding motor); costs ofother boats will be in proportion.Rapair Tards Cost of normal beaching US$ 350. The cost will be higher if there are mechanical problems or spare parts are needed.(d) Quantity(Output)Shipyard: two shrimpboats the first year, six the second and six shrimpboats the third years; all domastic sales.Repair Yard: 300 beachings of a possible 400 the first year; 350 the second and 450 the third years.(e) Grass Income (approximate)|               | 1st year   | 2nd year    | 3rd year    || ------------- | ---------- | ----------- | ----------- || Bhipyardı     | US$ 80,000 | US$ 240,000 | 08$,200,000 || Kepair Tards  | US$105,000 | US$ 122,500 | US$ 157.500 || Miscellaneous | US$ 5,000  | 78$ 7,000   | US$ 10,000  |
[104-10163-10173.pdf — page 84]
# CONFIDENTIALIIIECONOMIC FEASIBILIT OF THE PROJECTCosts of Overall Production for the First Year of Production:In the calculation of costs, consideration is taken of the construction of twe shrimpboats, complete repair and maintenance service for 300 and other miscellaneous service at a total of 31,000 verk hours.Production Costs:(a) Raw Material: The materials required for construction and repair of boats are varied and many times specialised. Following are principal materials at approximate rates:Weeds Laurel er yellow pine: 25,000 square feet;Mahogany, 1st and 2nd grade 20,000 square feet;Oak,1st grade 5,000 square feet.Metal: Steel and steel-2(S.A.Ε.), 40 tons;Cast-iron and other metals, 10 tons.At a totalvalue of US$ 30,000.(b) Materials:Paints - Spoxy sinc, silver, primece, epoxy bases, latex,Varnishescopper antifouling, mentese, etc.).About 1800 gallons.General hardware - Zinc, copper, iron, and stor sogies and nails; washers; cotter-pins; metal,plastic and rubber tubingi polyfoam, styrofoam, and cement insulation; glass plates and Bakelite, ete.Miscellaneous Equipments Propellers (46" x 34"); rust-proof steelCONFIDENTIAL10
[104-10163-10173.pdf — page 85]
shafts, CMC in-line winches, anchors, batteries, ordinary and na- navigational lighting systems, electrical accessaries, electric power plants, bilge pumpe, kerosene stoves, cooling and refrigera- tion units, fathometers, radio-communication equipment, etc.At a total value of US$ 50,000.(c) Labor:During the first year of production the Enterprise vill mploy a chief of mechanics and lathe shop, two specialist nachanics, tvo mechanics assitants, a carpenter, three ship-carpenters, and tve carpenter assitants.At total annual wages of US$ 32,000.Operation Costs:(a) Administration Expenses: Administration personnel-INCLUDE Oneadministrator-public accountant, assistant office worker, and tve servicemand maintenance managers. Together their annual wages will amount to US$ 8,400, and/anhual amount of US 2,000 will be kept in reserve.Fetal idministration Expenses: US$ 10,400.(b) Sales Expensest Because of the nature of the Enterprise no expenses incurred from sales, advertisements, etc., and, therefore, we no expenses for this section. Fixed and VariableCosts: All the expenses previously quoted my de considered as fixed costs, and only variable costs will be considered, that is, 20 per cent of materials consumed by the mechanics workshopa depending on the mechanical repairs. The rest is controlled by a simple systemof procustion which will clearly show the detailed costs of construction and repairs of the boats in consideration.
[104-10163-10173.pdf — page 86]
# CONFIDENTIALPlan of Production Costs for the Second and Third Year of Operation.(See the following statement:)STATEMENT OF PROFIT AND LOSS**A. Total Income:**|                   | 1st Year | 2nd Year | 3rd Year || ----------------- | -------- | -------- | -------- || Shipyard Sales    | $80,000  | $240,000 | $240,000 || Repair Yard Sales | $105,000 | $122,500 | $157,50  || Misc. Sales       | $ 5,000  | $ 7,000  | $ 10,000 || Net Sales         | $190,000 | $369,000 | $409,500 |**B. Production Cost:**|                               | 1st Year  | 2nd Year  | 3rd Year  || ----------------------------- | --------- | --------- | --------- || Raw Materials                 | $ 30,000  | $ 85,000  | $ 90,000  || Materials                     | $ 50,000  | $ 90,000  | $ 90,000  || Direct Labor                  | $ 32,000  | $ 40,000  | $ 47,000  || Depreciation (Machinery, 20%) | $ 10,000  | $ 10,000  | $ 5,000   || Repairs and Maintenance       | $ 2,000   | $ 10,000  | $ 10,000  || Fuel (Electricity)            | $ 2,500   | $ 2,800   | $ 3,000   || Plant Security                | $ 1,000   | $ 1,300   | $ 1,300   || Sub-Total                     | $ 127,500 | $ 239,000 | $ 242,300 |**C. Administration Expenses:**|                 | 1st Year | 2nd Year | 3rd Year || --------------- | -------- | -------- | -------- || Wages           | $ 8,400  | $ 9,000  | $ 9,000  || Office Expenses | $ 2,000  | $ 3,000  | $ 3,000  || Sub-Total       | $ 10,400 | $ 12,000 | $ 12,000 |CONFIDENTIAL
[104-10163-10173.pdf — page 87]
CONFIDENTIAL|           | 1st Year | 2nd Year | 3rd Year || --------- | -------- | -------- | -------- || Capital   | $ 15,000 | $ 15,000 | $ 15,000 || Interest  | $ 4,500  | $ 3,800  | $ 2,700  || Sub-Total | $ 19,500 | $ 19,600 | $ 17,700 || Total Expenses | $157,400 | $269.200 | $272.000 || Utility Net | $ 32,600 | $ 99,800 | $137,500 |IVSOCIO-ECONOMIC JUSTIFICATIONEmployment in the first year of production, 16 men will be employed by the Enterprise, and assigned as follows:Administration Personnel: 4 employees (one administrator and public accountant), one office assistant, and two managers of services and maintenance).Carpentry Meech: 7 employees (one chief of carpentry, three ship-carpenters, two carpenter assistants).Mechanics: 5 employees (one chief of mechanics and lathe-shop, two specialist acchinios, and two mechanics assistants).The initial wages of all employees of the Enterprise will be based on their technical knowledge, years of experience, etc. This pay scale will surpass the normal in order to attract the best possible personnel to the Enterprise. A plan for increase of fixed and meritorious wages is also being planned as an incentive for the employees.The number of personnel is expected to increase to 20 in the secondCONFIDENTIAL13
[104-10163-10173.pdf — page 88]
year of production, and to 22 in the third year.#### Bank in the Balance of Payments:The shrimpboat fleets in Nicaragua have expanded from 10 to 15 boats annually. These boats are bought entirely equipped from Mexico and the United States. Their total value within a period of three years extends from a minimum of US$ 900,000 to a maximum of US$ 2,025,000. Our production during this period will be 14 shrimpboats at a value of US$ 560, 000 which will remain in the country.Consumer Benefits and Economic Development: At present, most of the shrimp boats in the area have no facilities for mechanical repairs, and, in most cases, no facilities for grounding. This is due in part to the shallow draft of the inefficient marine railways in the local repair yards, as well as to antiquated equipment. Because of these difficulties, many shrimpboats are forced to put into Honduras, Mexico and at times the United States for repairs.It is difficult to estimate with certainty the total losses which these boats incur through urgent negotiations for entry to and departure from other countries, fuel and personnel expenses, and, of more importance, the incalculable losses in fishing time. Inasmuchas our repair yards will possess a greater capability than normally required, those boats with emergency and other types of damages will guarantee service. In this way we will attract to our repair yards those boats which ordinarily would seek repairs outside of the country with the subsequent loss in foreign profits and valuable time fishing time in the waters of Nicaragua.Protection and Incentives: Because of the characteristics of key Industry (See Law Nr 135, of 20 March 1958), a shipyard may request governmental aid during the first six years of its development in order to assure the necessary investments required by an enterprise of such complexity and magnitude. The necessary negotiations are presently being undertaken in Managua to obtain for this.CONFIDENTIAL
[104-10163-10173.pdf — page 89]
enterprise the legal recognition of a fundamental industry with all governmental aid.## TECHNOLOGICAL ANALYSISDesigns have already been drafted for the first model in wood of a 35-ton shrimpboat, and for the first model in steel of a 30-ton shrimp-boat. The general specifications for the steel boat are the following: tonnage - 30; length - 62 feet; breadth - 20 feet; draught - 8 feet; keel (bar/steel-3) 3/4 inch x 8 inches; transverse frames (plate/steel); deck 3/16 inch (plate/steel). Paints Hart and Burns, Bond Primer, Anticorrosive and antifouling - a total of six coats. Refrigerator: capacity 20 tons, in shrimp-ice, constructed of styrofoam-concrete. Driving power plant: D-342 Caterpillar with supercharger. Propellers, 48 inches x 34 inches, with three Michigan blades. stainless steel propeller transmission shaft, 3 inches x 14 feet. GMD in-line winch. Eight 8-volt batteries with battery charger. Kerosene cooking-range. Searchlights and navigational lights. RCA Cruisephone 160. Ritchie, magnetic compass, model B453. Raytheon fathometer, model DE-724. Special fuel tanks in the hull, with capacity of 6,000 gals, Potable water tank, with capacity of 750 gals, etc.Production Process: The processes in constructing boats and the services required for the boats are necessarily complex, although the processes are immensely simplified by new methods. Below is a description of the processes to be followed in the shipyard and in the repair yard. The construction of a boat begins with the laying of the keel on the slipway, followed by the attachment of the transverse framework to the keel. The crossbeams
[104-10163-10173.pdf — page 90]
CONFLATINAand sternpost are then set in place after the framework is cut to sise.The shall plating is nert attached from tae keel upwards in a such a ner that upen entering the water the wood undergoes a precalculated expansion which coupletely seals the ball without ascessitating calking. A hole is drilled for the shaft and the supports and pis for the redder are then set in place. Following this is the flooring for the deck and Exa the steelcrev's cabin, and/reinforcemts for the prov, stern and machine roon, "fter all of this completed. the secondary installations are carried out, such as the painting, electrical viring, plumbing, mats, gavits, winches, and finally whenthe launching of the boat. Final touch-up is effected the boat is in the vater.process for the construction of a boat from steel is a simpler mtter, and therefore less costi.The normal process of drydock-repair service for a boat is as follows: The cradle(See diagrams Ers 1 and 3) awaits the bost at the entrance of the ramp. With the use of mane-avering-busys, the boat is lifted ente the cradle where it is made stationary with transverse beams. The moving cradle is brought up the ramp and the boat is then transferred from it to a lateral cradle. The beat is brought to Section Nr 1 where it is immediately scraped with electric portabće brushes and high water pressure. While the holes.all is drying, a detailed inspection is carried out in search of wordAfter drying the ball is calked and a general inspection is made.Paint is applied, and while that is drying the necessary interior mechanical vork is carried out. Upon termination of the final painting and a final inspection, the hoat is launched. The complete operation lasts no more than two er three days in a modern drydock, and the support personnel consist of tweGUNILL
[104-10163-10173.pdf — page 91]
carpenters, a mechanic, and twe yard assistants, as well as the usual repair and spare parts.Installations: As can be seen fren diagras ar 1, the area eccupied by the shipyard is relatively small, some 15.500 square meters. It consists of a reinforced-concrete ramp with 4-inch rail, and an area 150 meters long by 20 meters. The has a depth of 7 meters. The Central Yard contains a lateral cradle (25 x 17 x 1 meters), which rolls on a concrete base(al? x 25 x 1 meters); three sections of the cradle (42 x 20 meters) with the third section terminating near the shipbuilding shed (33 x 22 x 11 meters). Two identical buildings are planned for the machine shops, carpentry offices and warehouses, on a total working area of 1200 square meters. A building will house two 75-kilowatt electric power plants, spare parts and general electrical equipment. A 350-gallon underground petroleum tank will be installed along side of this building to provide the fuel. A 6,000-gallon fresh-water tank with its well and turbine will complete the first phase of the plan. The second phase will be carried out during the year of production.Cost of Each Section (Approx):Retention Wall and Filling in the Swamp $ 1,500Ramp $ 4,000Central Yard $ 10,000Base for the Lateral Cradle $ 5.000Buildings for Workshops/Warehouses/Offices $ 12,000Building for Ship Construction $ 3,000Building for the Power Plants $ 2,000Lateral Gradle $ 4,000