Fish-canning facilities are being increased in Europe and Africa. Production, however, is not yet at full potential of existing facilities because of shortages of supplies, particularly of tin plate and oil. For example, the canned-fish packs in France, French Morocco, and Spain would be much higher if tin plate and oil were available in adequate supply; and the Norwegian pack in 1948 was reported limited by labor shortage.

During the war, shipments of United States fishery products to Europe were largely made under lend-lease agreements and, since the war, principally under aid programs or with borrowed dollars. The use of available dollars under the European recovery program is being concentrated upon the reconstruction of the economy of the participating countries so that they can produce, export, and have the exchange with which to pay for needed imports. The situation is complicated, however, by the fact that these countries do not have enough dollars to purchase all the things they want and need. Consequently, dollar resources are conserved and their use is restricted to so-called essentials commodities, as the term is now used. Officials of European governments who control the disbursement of dollars are inclined to put United States fishery products in the dispensable class. This has caused an almost abrupt stoppage in our exports of fishery products to Europe.

Exchange problems are hampering the movement of fish not only from America to Europe but also within Europe. European nations realize the importance of fishery products in their diet, and fish are moving in increased volume in the trade of these countries. However, until the basic issue of foreign exchange is resolved, supplies will come from countries which can arrange acceptable exchange. Trade between European countries is being accomplished in many cases through commodity or compensation agreements. This method of trading, which is in effect barter, has become prevalent in Europe in view of unreal values of various currencies from the viewpoint of international trade. Such arrangements have an important influence on the direction and flow of trade. Under these agreements, representatives of two trading countries get together and compile lists of exports which each can provide the other. Generally, the total values of the shipments are made approximately equal. The funds derived from imports are used to pay for exports. the money transaction being handled almost entirely in the currency of the individual countries, and little or no use of foreign exchange is involved.

Countries participating in the European recovery program long have been dependent on a large volume of imports from dollar areas. Normally, these were paid for by exports of commodities or services, or by income from investments abroad. The war reduced or eliminated these sources of foreign exchange, increased the need for imports into Europe, and a shortage of dollar exchange developed.

Austerity programs are in effect in many countries and consumers are doing without many long-desired consumer goods to further a big recovery effort. The basic aim of the European recovery program has been to expand production, eliminate abnormal demands from the outside world, and produce increased exports to pay for needed imports. A recent program outlined by OEEC, in effect, would seek to obtain new sources of supply in those parts of the world outside the dollar area, keep increasing exports to dollar countries, and make further cuts in imports from dollar areas. This may stimulate production in countries that have no historical record of export dependency and curtail production in countries which have established their industries on an export market. Labeling requirements, which have been on the books but which were not enforced during the emergency, are being dusted off in many countries. Import duties in particular are being studied in some countries where it is believed that domestic production is being affected by outside competition.

Given ordinary conditions, there would exist a reasonable chance for the resumption of normal marketing of United States fishery products, particularly canned fish in Europe. The quality of established American packs is well known and accepted and prices are generally comparable to those prevailing for similar products in most European markets.

Under prevailing conditions, however, there appears to be little prospect for any immediate resumption of our fish exports to Western Europe on a scale comparable to prewar volume. The economic conditions prevailing in many European countries have resulted in close national control of production, foreign trade, exchange and distribution. Programing by European governments of import requirements and export surpluses and the anticipated trade deficits for the next several years indicates that there may be little possibility of free play of regular

market forces for some time. As long as such government controls are in effect, they will be the most important factor affecting our foreign markets. It seems improbable that the rather free movement of goods in international trade envisaged in arrangements such as reciprocal trade agreements can be fully achieved under such conditions.

Competition, even now, is keen in Europe and can be expected to become more so should the market become freer. American producers, therefore, should see that certain minimum requirements are met by products to be exported. Improvement in many products, particularly those packed to fill certain emergency needs, is desirable if markets for these are to be developed. Consideration also should be given to the preparation of packs to satisfy specific demands and preferences. Furthermore, it seems imperative that the fishing industry keep informed on the changing situation and be on the alert for any and all trade opportunities. Closer contacts with trade developments abroad should be maintained in order to keep abreast of developments lest markets be lost to more aggressive competition. A further insight into conditions affecting markets for United States fishery products may be obtained from an appraisal of developments in the various countries competing for the European market as well as the situation in the importing countries. The sections which follow are devoted to a review of the situation in certain important countries.

THE FISHERY SUPPLY SITUATION IN CERTAIN IMPORTING COUNTRIES OF
WESTERN EUROPE

United Kingdom

The United Kingdom has been the principal European outlet for canned fish from the United States. In the 1934-38 period the United States exports of edible fishery products to that country averaged 50,000,000 pounds annually (table 1), of which 36,000,000 pound were canned salmon. During the war exports to the United Kingdom increased to 192,000,000 pounds in 1943, dropped to 16,000,000 pounds in 1944, after which they increased. The exports of United States fishery products to that country continued to increase after the war, reaching 90,000,000 pounds in 1947. For the first 9 months of 1948, however, only 30,000 pounds had been exported to the United Kingdom, and there appears little prospect for any general improvement in the immediate future as the outlook for dollar exchange offers no encouragement.

During the war most of the United States fishery products supplied to the United Kingdom moved under lend-lease arrangement. Since the end of the war, payment for United States fish by the United Kingdom has been made largely with borrowed dollars. Under the current year's European Recovery Program the expenditures of dollars for any but "essential" commodities is not probable.

A strong demand for United States fishery products exists in the United Kingdom. Wartime use has done much to acquaint new customers with the products, particularly canned pilchards, salmon, shrimp, and mackerel. More recent introductions, such as canned whiting and rockfish, into the English markets have not been so well received, and some stocks still remain on grocer's shelves. Canned shrimp and oysters have not moved well because of their relatively high price. British stocks of canned salmon were very low by the end of 1948 and needed replenishment to prevent their being exhausted. The quantity of canned salmon available in 1947 was 22 percent less than in 1946, or about half the quantity available in 1938. Imports for the first 7 months of 1948 were only 14 percent of the quantity imported for the similar period of the preceding year. In 1947 there were 48 million pounds obtained from the United States, 23 million pounds from Canada, and 2.8 million pounds from Russia.

Canned snoek, packed in the Union of South Africa, has been introduced on the English market and is being marketed in increasing quantities. In early September 1948 the Ministry of Food reported that 1.5 million of the one-half pound tins came into the United Kingdom, and it is expected that 10 million tins will be brought in during the next 3 years. In addition, considerable quantities of South African pilchards are available.

The total catch of fish in the United Kingdom is now above prewar, and additional newer and larger vessels are supplementing the fleet. Production in 1947 was reported at 2.2 billion pounds, slightly above the prewar rate. Imports of fresh and frozen fish in 1948 are expected to be 3 times the prewar figure.

Canned-fish production in the United Kingdom totaled 13,000,000 pounds in 1946 and is expected to reach 22,000,000 pounds in 1948.

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There seems little probability of resumption of normal marketing of United States fishery products in the United Kingdom in the near future. In view of the increase in production and imports of fresh and frozen fish, and in imports of canned fish from colonies and soft-currency countries, continued developments in production of fishery products in the soft-currency areas will result in stronger competition with United States products even if the British exchange situation improves materially. As a result of the apparent good demand for United States products, it is improbable that this market will be lost entirely, although considerable inroads may be made by foreign products which are now finding market in the United Kingdom. British importers have worked diligently, but with little success, in an effort to obtain authorization to resume the importation of United States fishery products.

France

In the prewar period, 1934-38, the United States exported an average of 3.1 million pounds of fishery products to France. Since 1939, such exports from the United Sates to France have been minor except for 1.1 million pounds provided under lend-lease in 1944, and 320,000 pounds in 1945. Prior to the war, France also obtained large quantities of canned fish from Portugal, Morocco, and Japan. In 1939, France imported 7,000,000 pounds of canned salmon from Japan. At present, France is obtaining canned fish principally from Portugal and Morocco.

A demand exists in France for substantial quantities of canned fish from the United States, but limited dollar resources restrict the purchase of such products. General preference in France and throughout western Europe is for fish packed in olive oil. While first preference is for olive oil, the packs in peanut oil are preferred over those containing cottonseed and soybean oil.

Fresh fish production in France has now reached prewar levels. Landings totaled 627,000,000 pounds in 1946, and 748,000,000 pounds in 1947. It is expected that about 717,000,000 pounds will be caught in 1948. About 7,000,000 pounds of canned products are expected to be available for export in 1948, even though canned fish production is hindered by shortages of tin plate and oil.

Imports are under the control of the French Government. The association of importers works with the government in the determination of what is to be imported. The government allocates funds and authorizes importers to buy approved products.

Eire

Imports of canned fish into Eire (Ireland) totaled about 4.2 million pounds in 1947 and a little less than 1 million pounds during the first 7 months of 1948. The United States supplied about 1.5 million pounds in 1947 and about 365,000 pounds in the 1948 period. Other sources of canned fish were Canada, Portugal, Norway, the Netherlands, the United Kingdom, the Union of South Africa, and Newfoundland. In prewar, the United States exported about 319,000 pounds, annually, to Eire. In 1938, Eire imported 2.2 million pounds of canned fish, largely from the United Kingdom, the United States, the Soviet Union, Japan, and the Netherlands, with small quantities from Canada and Portugal.

There is fairly strong demand in Eire for red or pink salmon and lesser demand for pilchards and shrimp. While shrimp is ordinarily a good seller, it is considered too high in price for marketing in considerable quantity.

The Irish fresh-fish industry is small and distribution is limited mainly to coastal areas. Irish fish production is now at twice the prewar rate with 45,000,000 pounds caught in 1946, 40,000,000 pounds in 1947, and the indications are that 1948 landings will surpass the 1946 catch. The increase in fishing activity has been due to the increased demand in Great Britain. It is believed that the industry will suffer when operations of the British fishing industry are fully under way again, unless some home market expansion takes place.

Although Eire is surrounded by the sea, the fishing tradition is not as strong as in other martime countries. The country people, although maintaining strict observance of religious fasts, do not often taste fish except in cured form.

Prices prevailing for canned fish in Irish markets are fairly high, therefore, price would appear to be no particular obstacle to the sale of United States products. However, due to the shortage of dollars, imports are coming from soft-currency areas.

The Netherlands

The United States exported an average of 2,300,000 pounds of fishery products to the Netherlands during the five prewar years, 1934–38; about 939,000 pounds under lend-lease in 1945; 865,000 pounds in 1946; and about 567,000 pounds in 1947. During the first 9 months of 1948 a total of 616,000 pounds of United States fishery products, largely sardines, were exported to the Netherlands.

Prewar, Japan was an important source of imports of fishery products, supplying some 4,500,000 pounds of salmon and 1,300,000 pounds of pilchards in 1938. Some recent offers were reported received from Japan, but trade could not be made because of the required payment in dollars. The Netherlands has commodity trade agreements in effect with the Soviet Union, Italy, Poland, Hungary, Yugoslavia, Austria, Belgium, and the United Kingdom, providing for the exportation of fish in exchange for other products; and with Denmark, Norway, France, Iceland, and Sweden for the importation of fish.

The distribution of United States fishery products under various aid programs and the disposal of surplus army stocks has done much to introduce our products. The limited quantities of canned mackeral made available found ready acceptance. Their is strong consumer demand for canned salmon and pilchards, but the use of dollars for these items is now restricted. Attempts have been made by the trade, with little result, to import canned salmon through countries with available dollar exchange or to obtain imports for 1950 payment.

The Dutch are building up their export trade in fishery products to obtain exchange. During the war, the fish-preserving industry expanded because competition from foreign sources was restricted and the domestic demand was high. The production of canned fish has increased from an average of 56,000 pounds in the three prewar years (1936–38) to 14,000,000 pounds for the year ending June 30, 1948. A further increase to 15,700,000 pounds for the year ending June 30, 1949, is forecast. This pack is for export, and only that which is rejected for export is sold on the domestic market. In 1945, an inspection commission was established to prevent the exportation of poor quality preserved fish. In the 1947-48 season, exports of canned products totaled 12,300,000 pounds as compared with an average of 49,000 pounds, prewar (1936–38).

Although the Netherlands fishing fleet suffered considerable damage during the war, much of it has been restored. Landings of fresh fish are above prewar levels and totaled 515,000,000 pounds in 1947. A further increase to 594,000,000 pounds is forecast for 1948.

Belgium

In contrast with most European countries, Belgium is using dollar exchange to import fishery products from the United States. In 1947, Belgium imported 181,000,000 pounds of fishery products from all sources as compared with 155,000,000 pounds in 1938. Of the 1947 total, some 69,000,000 pounds were canned fish; 45,000,000 pounds, mussels; 28,500,000 pounds, fresh fish; and 20,000,000 pounds, salted herring. Of the 69,000,000 pounds of canned fish imported in 1947, Portugal supplied 39,000,000 pounds; the United States, 17,600,000 pounds; Canada, 4,600,000 pounds; Norway, 3,5000,000; France, 1,300,000; and Japan, about 290,000 pounds. Before the war, the bulk of imports came from Japan and Portugal. During the first 6 months of 1948, Belgium imported about 8,300,000 pounds, of which nearly 4,800,000 came from Portugal; 1,900,000 from Canada; 1,200,000 from the United States; and small quantities from each of the other 1947 sources. Canned salmon and pilchards have sold well in Belgium. In 1945, the Belgian Government obtained United States canned fish from Army surplus, and this stock did much to acquaint consumers with United States products which they had not previously tried. The canned mackerel and sea herring, for instance, were well received. Packs of canned pilchards from Japan and Holland were seen in Belgian markets in 1948.

Exports of fishery products from the United States to Belgium and Luxemburg averaged about 3.1 million pounds annually, for the 5 years, 1934-38. Lesser quantities were exported to Belgium in 1939 and 1940 and none during the 4 years, 1941-44. Small quantities of canned salmon and pilchards were provided under lend-lease in 1945. In 1947, almost 10 million pounds were exported to Belgium. The Belgian fish-canning industry is small and its production is limited to three canneries located at Ostend.

Landings of fishery products in Belgium shortly after the war were reported very good. With increased fishing activity in the North Sea by all countries, however, the catch per unit of effort is now indicated to be declining. During

the years just before the war, the Belgian fish catch averaged about 82.9 million pounds annually. In 1946, the catch totaled 156.8 million pounds, and in 1947, reached 168 million. Indications during the first part of the year were that landings would be down somewhat in 1948.

Various regulations have been proposed, and in some cases put into effect, which have tended to restrict trade in canner fish, but these are either temporarily suspended or not enforced at this time.

Germany

Before the war, Germany was the third largest producer of fish in Europe and, next to England, the largest importer of fresh fish. With the fishing fleet reduced about 50 percent by the war, the domestic catch has been far below the prewar average. In order to rebuild this valuable source of food, occupation authorities are working closely with the Germans in an effort to increase the domestic catch. To accomplish this, permission has been granted to build 100 new trawlers. According to reports, 34 ships were in various stages of construction in September 1948, but the building program has been slowed by the shortage of materials.

The domestic catch of fish in Germany averaged 1,000,000,000 pounds for the 5 years, 1934-38; and imports averaged 508,000,000 pounds. Average landings at bizone ports for the 2 postwar years, 1946 and 1947, were 540,000,000 pounds, and imports in those 2 years averaged 323,000,000 pounds. The 1948 catch is forecast at 652,000,000 pounds and imports are expected to total 612,000,000 pounds.

Of the 612,000,000 pounds which are expected to be imported into the bizone in 1948, it is estimated that about 139,000,000 will come from the United Kingdom; 25,000,000 from Newfoundland; 273,000,000 from Norway; 18,000,000 from Sweden, and 157,000,000 pounds from Iceland. These imports are expected to be entirely fresh, frozen, salted, or pickled fish. Herring is the principal item imported. During the 5-year period, 1934-38, exports of fishery products from the United States to Germany averaged about 927,000 pounds, and consisted of 676,000 pounds of mild-cured salmon, 228,000 pounds of sardines, and 23,000 pounds of unclassified fishery products. Since that time, there have been practically no exports to Germany from the United States.

No canned fish is being used in the civilian-feeding program. In 1946, 7,000,000 pounds of canned fish were imported from the United Kingdom. In 1938. however, a total of 33,600,000 pounds were imported from Sweden, Belgium, Portugal, Norway, Spain, Japan, France, and Italy, the bulk of which came from Spain and Portugal.

Although Germany produced considerable canned fish, prewar, little was exported. During the war, the entire output went to the Army and now the small production goes for institutional use.

The outlook for resumption of sales of United States fishery products to Germany shows no promise for at least 3 or 4 years. Present operations are directed toward providing only essentials necessary to feed the population, and imported fish consists mainly of herring and white fish obtained from producing countries in northern Europe. Because costs, as well as exchange problems, are considered, European countries will probably continue for some time to supply western Germany's imports of fish and fish products.

Canned fish is brought into Germany by the United States Quartermaster Corps and by the Post Exchange Services for sale to military personnel. Most of the trade through the post exchanges is in items for use in snacks and light lunches. Therefore, small cans, 1⁄2 pound or smaller, predominate. Among the commodities which were on sale in the exchanges were Portuguese sardines, tuna, and anchovy fillets and pastes; Danish and Norwegian brislin, and Danish fillet of mackerel ; Peruvian tuna in soybean and sunflower oil; Norwegian kippered herring fillets; English fish paste and cod-roe caviar; Italian antipasto; and lobster, salmon, and shrimp from American sources.

Coalfish is smoked in Germany as a substitute for smoked salmon, which was a favored delicacy, prewar. The resulting product, however, does not compare in taste and texture with that made from mild-cured salmon. Should salmon again become available in Germany it should be readily accepted.

Austria

In 1947 Austria imported about 25.6 million pounds of fish products as compared with an average of 20.8 million pounds for the 2 prewar years 1936-37. The 1947 imports consisted of about 15.8 million pounds of sea fish, largely from the