Cefaratti, A. J.
Output, exports set records, pp. 55-57 PDF (2.0 MB)
and East zone officials to scrutinize shipments to the other area, and retaliatory measures taken by the two trading partners. Industry The index of industrial production during March (ex- cluding building, stimulants and food processing) rose by three points (up 1.7 percent) to 135 of the 1936 level, thus equaling the postwar high reached in November 1950. The per capita rate of production rose to ap- proximately 108 percent of 1936 (abo'ut 91 percent of 1938). Industrial demand continued on the upgrade as the value of orders received by manufacturers rose seven percent in February, and sales increased nine percent. Total orders received in February averaged 22 percent higher than current sales, with investment goods orders averaging 135 percent of sales, production goods 121 percent and consumer goods 109 percent. Orders booked for investment goods reached a new postwar high in February of 237 percent of the 1949 monthly average. Molnthly coal production for April continued at a high level-with daily average output at 394,481 metric tons and total production at 10,019,861 tons, including 157,845 tons produced in five Sunday shifts. Factors believed largely responsible for this sustained rate of production are interim agreements for extra shift pay and increased employment since Jan. 1 by 5,500 underground workers (1,700 face workers) and 4,000 surface workers. During the first half of April, 1,231 underground and 4,268 sur- face workers were added to the mine books. There has been only little improvement in output per manshift during the last year, as it stood at 1.40 metric tons in March 1950; 1.46 tons in February 1951; 1.45 tons in March 1951, and remained approximately the same in April. Second quarter of 1951 consumption and deliveries of coal should about balance (estimated by US Element of Combined Coal Control Group -Federal Government's original allocations program estimated at 2,000,000 tons less), assuming that 22,000,000 tons are available and that industrial production will continue at its present rate. The danger lies in the low stockpile position of the economy and there was little hope of improving this position substantially in the second quarter. During the winter months (October 1950 to April 1951) industrial and public utility coal stocks decreased by some 2,000,000 tons. The present stock positions are better than anticipated one month ago, but are, nevertheless, at very low levels. On April 1, the railways had a seven days (surplus on hand, power plants 12 days, gas plants seven days, iron and steel seven days, and other in- dustry 11 days. Restrictions, Limitations Removed On April 3, 1951, the Allied High Commissioners signed the Agreement on Industrial Controls to replace the Prohibited and Limited Industries Agreement (PLI) of April 1949, and thereby facilitated the production in Germany of items and materials for the common defense of the West. Under the new agreement, the limitations and restrictions hitherto in force concerning the size and speed or tonnage of merchant ships built or other- wise acquired by Germany, primary aluminum, synthetic ammonia, chlorine, styrene and certain types of ma- chine tools are removed. In addition, the High Commis- sion will authorize production of crude steel outside the limit of 11,100,000 tons per annum where such production will help provide steel for the common defense effort. The prohibition on the production of synthetic oil and rubber is removed and the restrictions upon the capacity of these and of the ball and roller bearing industries are now modified. Control is retained, but in a modified form, over the production of electronic valves. It is the desire of the Allied High Commission to promote technological progress and modernization of production which will tend to reduce costs and promote economies in raw materials, power and fuel. Con- sequently, in those few industries where a limitation of capacity is maintained, the High Commission will authorize the substitution of more efficient equipment, the rearrangement of machinery and the introduction of new processes or other technical changes which may in- volve a minor increase in the capacity of factory or equipment. In authorizing the rehabilitation of plants (including the installation of new equipment) and the utilization of new processes for the production of synthetic rubber and synthetic oil from coal and coke, the High Com- mission will grant licenses only to the extent that solid fuel exports are not affected. Nevertheless, the applica- tion outstanding for the use of the Ruhr area plants at Bergkamen, Viktor, Scholven and Ruhroel will be granted promptly. While! a license is no longer required to manufacture certain machine tools listed under the PLI agreement, the High Commission does require that a system of de- claration of manufacture by the producer (indicating the intended destination of each machine) and of re- porting quantities of such machines in Germany shall be effected. It is much too early to report on the effects of the new agreement even though the affected industries had anticipated certain revisions. In Bavaria and in the upper Rhine district, melting snow in the Alps and heavy rains provided water for an all-time record hydroelectric power production. This increased hydro production has enabled the chemical industry in Bavaria to continue to operate without restriction, and has provided power for present re- quirements of the aluminum industry. Also in Bavaria, the first unit in the lowest step of the Schluchsee project of Waldshut, which was completed recently with couil- terpart funds, will add 35,000,000 KWH yearly to the available storage capacity in Western Germany. An estimated 2,750,000,000 KWH of electricity were used during the month, or 31 percent more than in April 1950 -a record increase in consumption. Gas consump- tion also increased. Low stocks and short falls in coal deliveries are still a matter of considerable concern to the power com- panies. Since consumption of both electricity and gas is well above expectations, there is an immediate need for additional facilities and stocking of coal to meet next winter's demand. Labor The estimated number of employed wage and salary earners in the Federal Republic increased by 150,000 to about 14,400,000 at the end of April 1951, thus equaling the October 1950 postwar peak. Employment in non- mnanufacturing service establishments, in manufacturing,- and in mining achieved a new peacetime high sparked primarily by the producer goods industries. Building activity, the principal factor in the April employment INFORMATION BULLETIN 56 JUNE 1951
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