Evening star., 1940-06-16

can money is invested In Great Britain,
more than third of the European total
| A NaZi conquest of Britain would threat
en- this, large investment. American
companies have established numerous
| branch plants in the> United Kingdom
and American capital has financed many
| distribution companies. In recent years
our automobile industry has expanded
its operations in the United Kingdom.
In the chemical, foodstuffs machinery
and metal trades industries Americ=
| capital is well represented. Because of
the large buying power of the British
people, the stability of the government
and the comparative freedom from re-
strictive discriminatory legislation, the
United Kingdom in the past has offered
an attractive market for American capi-
/ tai.
German Stake 100000.
Direct investments in Germany amount
to more than s20O,oO0,00o according to
Department of Commerce estimates.
Manufacturing enterprises hold first
place, followed in order by petroleum in
terests and sales companies Among the
manufacturing investments the princi-
pal commodity groups are automotives,
chemicals, machinery, metal products
and electrical and telephone equipment
and supplies
| American direct investments in France
are estimated at about sl5oOOO,o 900. In
the manufacturing group the leading
commodities are electrical and telephone
equipment, machinery metal products
| and supplies. A German conquest of
France, if followed by economic and
political control, will place in jeopardy
our large financial investment in that
country.
American direct investments in other
important European countries are esti-
mated as follows: Belgium, s34 900 900:
Italy, s70,0000o0; Holland, $4,000 900;
Norway, S27,000000 Rumania and Bull
garia, s44,000000; Spain, $4,000 900;
Sweden, s25,000oO0, and Switzerland,
s8ooo,ooo Our capital has gone into
many other countries.
Manufacturing interests, represented
in large part by branch plants and fac
|
our direct investments in Europe. Pc
| troleum and distribution are the next
largest groups. Public utilities, mining
! and smelling, an important part of
American investments in some other
| parts OF the world, hold place of minor
Importance in the European portfolio.
At the end Of 1886 American invest
! ments in European manufacturing en-
terprises totaled s611 1888 900, according
to survey by the Commerce Depart
ment These are the latest official fig-
ures available. The list included 543 in
dlVldual concerns, as follows Automo-
tive, 46; chemical III; electrical, Sc:
foodstuffs, so; leather, s; lumber. 26.
machinery, rs; metal products, 80; rub
Der, 8; textiles, 18, and miscellaneous.
50. More than four-fifths of this invest
ment was in the United Kingdom, Ger
many and France.
Since the war clouds began to mass
| over Europe, there has been a trend TO-
ward the liquidation of European invest
ments. This has not always been easy,
and this trend, in part, has been Offset
by the expansion of other industries.
particularly those whose products are
needed by European governments in
their war preparations
Future Highly Uncertain.
Ii the totalltarian powers conquer Eu-
rope and dictate its postwar economy,
our investments in European countries
Will face an uncertain, if not a hazard
r.
low that these enterprises will be expro-
prlated or nationalized and the profits
taken over by whatever government ad-
| ministers the territory in which each is
located. Conceivably the Hitlers and
their successors may need the products
OF American branch plants. and con-
celvably, too, they may seek American
capital to rebuild Europe and repair the
destruction to industry, cities and trans
portatlon systems. II such be the case,
1t Is a reasonable assumption that the
totalitarian victors will not deal too
harshly with American enterprises that
come under their control
American capital, however, could
hardly regard a totalitarian Europe as
an attractive field for investment. If
national socialism replaces private capi-
tai throughout Europe generally, Ameri-
can investments will occupy an anoma-
lous position, one neither secure nor COM
Portable.
Now that Italy has joined Nazi Ger
many, the war has reached the Medi-
terranean. If Turkey and the Balkans
become involved the list of remaining
-belligerents will be small indeed.
In Europe ruled by the axis powers,
countries like Switzerland and Sweden
would have little chance of retaining
their economic independence.