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This report is restricted to use within the Bank Public Disclosure Authorized

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Public Disclosure Authorized LOAN ADMINISTRATION REPORT

THE $12,000,000 LOAN

THE GRAND DUCHY OF LUXEMBOURG Public Disclosure Authorized

Granted August 28, 1947

Public Disclosure Authorized June 30, 1950

Loan Department TABLE OF CONTENTS

Loan AdministrationReport LUXEMBOURG

Loan of $12,000,000to the Grand Duchy of Luxembourg

Page Paragraph

I INTRODUCTION 1 -4

II DISBURSEiVENTOF THF LOAN 1 Rate of Withdrawals 5 - 6 Disbursementby Categories 7 Disbursementby 0urrencies 8 Disbursement Procedure 9

III END-USE OF THE LOAN 2 Steel Mill 11 Railway Equipment 12-24

IV USE OF COUNTERPARTFUNDS 3 15

V SERVICE or' THE LOAN 4 16-19

VI RELATIONSBETWEEN\. THE BANKAND THE BORROWER 4 20-22

VII POLITICAL DEVELOPMENTS 5 23

VIII ECONOMICPOSITION ANDPROSPECTS 5 24-26

Annex I: Disbursement by Quarterly Periods Annex II: Disbursemnentby Categories Annex III: Table of Amortizationand Interest and Loan CommissionPayable Over the Life of the Loan An,nexIV: The Economic Situation and Prospects of the Belgo-LuxembourgEconomic Union Annex V: External Debt of Belgium at January 1, 1950 Annex VI: External Debt of Luxembourgat December 31, 1949 Annex VII: Total Interest and AmortizationCharges Required on the External Debt of Belgium Annex VIII: Total Interest and Amortization Charges Required on the External Debt of Luxembourg Annex IX: Total Interest and Amortization Charges Required on the External Debt of Belgium and Luxembourg LOAN ADMINIATRATIONREPORT

XEEMBUG

Basic Statistics

Area: 1,160 square miles

Population: 300,000 (December1949)

Currene unit: LuxembourgFranc (L. Frs.)

E change Rate: L, Frs. 50.15 - U.S. $1 (April 1950)

National Income (1949)

(In current L.Frs, at factor cost) L,Frs. 8.80 billion

Budget in 1950 I/

Receipts L.Frs. 3,019 billion ExpendituresL,Frs. 3,421 billion

Public debt

External debt (January 1, 1950) (expressedin U.S.0) $19,83 mil.

Retail Drices (1937 w 100) 325 as of April 1950

Gold and foreign assets

1940 .12L8 19k (end of year) Short-termassets in the U.S. (millionof U,S.$) 22.9 16,0 13.6

J2/ Ordinary and extraordinarybudgets LOAN ADMINISTRATIONREPORT ON LUXEMBOURGLOAN

I INTRODUCTION

1, The $12 millionloan to the GrandDuchy of Luxembourgwas made on August28, 1947, and the Loan Agreement became effective on October 24, 1947, The loan was for twenty-fiveyears. Amortizationbegan on July 15, 1949,and interestis at the rate of 4-$ per annum,including the statutory commission of 1%, 2, An undrawnamount of $238,017was cancelledat the requestof the Borroweras of December19, 1947,reducing the amountof the loan to $11,761,983. 3. The purposeof the loan was to financeimports of equipmehtfor a hot rolling and a cold rolling steel mill of the Acieries Reunies de Burbach-Eich-Dudelange (ARBED)and of rolling stock for the Luxembourg railways*

4. . The Luxembourg loan differed from those previously made by the Bank. It was the first project loan, and it was the first case in which the Bank recognizedthe need of a membercountry for internalfinancing. It was also the first loan where the Bank made use of the 18% subscription of a membercountry other than the V,S., and the equivalentof nearly$1 millionwas disbursedin Belgianfrancs from the BelgianGovernmentts capitalsubscription,

II DISBURSEMNT OF THE LOAN

Rate of Withdrawals

5,, The Luxembourg Government originally expected to complete withdrawalsbefore the end of 1948 and the closingdate was originally December31, 1948. Deliveryof railwayequipment from Franceand Belgium was, however,delayed and the Bank agreedon December14, 1948,to an extensionof the closingdate untilMarch 31, 1949,and again on March 14, 1949,to a furtherextension until December 31, 1949,

6. In December 1949, the Bank advanced to the Luxembourg Govern- ment $1#6 millionfor the purposeof making,in 1950, certainfinal payments on outstanding contracts and, as mentioned in paragraph 2, cancelled the residuum. Disbursements by quarterly periods are sumarized in Annex I,

Disbursement by Cate ories 7, Disbursement by categories differed from the amountsshown in the original list as a result of modifications effectedAugust 16, 1948, in accordancewith ArticleIII of the Loan Agreement(see Annex II). The most significant change was the substitution of 5 additional diesel auto, rail oars and 6 dieseltrailers for 200 coveredfreight cars and 30 trucks, - 2 -

Disbursement by Currencies 8, Disbursementin dollarsinc: 1lded $7,500000 for the purchase of rolling mill equipmentin the United$-Z't.tes and 11,634,500for the purchase of railway equipment in France. The balanoe of the loan covered purchases in Belgian francs,of which 42.3 millionwere obtainedfrom the Belgian 18% capitalsubscription and 78.6 millionwere bought with dollars, Dieburemeut Procedure

9. The Bank reimbursedthe LuxembourgGovernment for $3,477,059 paid by ARBED,prior to the effectivedate, under contractsfor steel mill equipmenttotalling originally $14,071,787, The balanceof $4,022,941 allocatedto ARBEDwas advancedby the Bank betweenNovember 1947 and May 1948 to enable ARBEDto make various payments as they becamedue. Payments were made by the Bank, on the instructions of the Borrower, either directly to the suppliersof the railwayequipment or else to the SocieteNationale des Cheminsde Fer to enableit to make paymentsto supplierswhen due, IT END-USEOF THE LOAN 10, Representativesof the Bank have visitedARBED headquarters and inspectedthe plant, In the case of the railways,supervision was carriedout mainlyby correspondencewith the Luxembourgrailway authorities, Steel Mill

ill The amountset aside for this categoryserved to financepart of the cost of the equipmentordered by ARBEDfrom the followingmanu- facturersin the UnitedStates to erecta hot rollingmill and a cold rolling mill at Dudelange. Contractor Revised Value of Contract AmountFinanced by Bank UnitedEngineering Co. $8,005,013 $5,2$4,426 66% GeneralElectric Co. 4,027,363 1,894,669) 47%

Salem Engineering Coo 650,555 2,30,100 20% Wean Engineering Coo 1$372,052 l190$805 -JAL 14,054,983 7p500,000 54.3%

Accordingto the originalplans, deliveries of the equipmentordered under the above contractswere to begin in April 1948 and to be completedby December1949; it was expectedthat the mills couldbegin operationlate in 1950. There was delay in the receiptof workingplans from the United Engineeringand FoundryCompany and therewere also delaysin shipmentof equipmentfrom the UnitedStates. The aim is now to completethe hot mill by November1950 and the cold mill by March 1951;three more monthswill be neededfor tests beforethe plantscan start industrialoperations, The capacityof the new installationswill be about350,000 to 400,000tons of steel per annum. -3- RaiLwavEquipment

12, Three categoriesof railwayequipment were financedunder the loan, namely,locomotives and autocars flat freightcars (chieflyfor the transportationof steelproducts), and miscellaneousequipment 0 De- liveriesunder the first categoryto the Luxembourg railways were composed of:

Equipment Full ValueFinanced by IDRD Loan_

10 Graffenstaden Locomotives $667,488.U0 10 Vulcan Locomiotives 357,864,00

I S.N.C.B, Locomotive 82,240,O0

10 De DietrichDiesel Auto Cars 12481485.O0

6 DecauvilleDiesel Trailers 3841+OO,00 $2,739,977.00

1 3 . The equipment financed in the secondcategory consisted of 150 flat cars and 4 bogie cars for whichthe Bank disbursed$1,132,722. Equipment in the third categorycomprised train lightingequipment, dynamos, batteries,speed indicators,etcq, for which the Bank disbursed$389,284.04, Q4, The followingtable givesan indicationof' the damagesuffered by the Luxembourgrailways during the war and the progressmade with their rehabilitation:

1938 19/-5 Julv 1. 19L9 Locomotives 170 231 162 (including48 (including21 loan- in bad order) financedlocomotives)

FreightCars 6,976 4,269 4,792

PassengerCars 394 295 316 (including120 in bad order) The 19,49total for locomotivesdoes not includethe 10 dieselauto cars and 6 dieseltrailers which w3re receivedby the Luxembourgrailways after July l1 1949. Iv USE OF COUNTERRTFUNDS 15, The domestic currency oounterpart of the loan was used by the Luxembourg government for budgetary expenditure in connection with the reconstructione of the warrdamaged areas of the country, V SERVICEOF THE LOANi

16, The loan bears 34% interestplus 1% commission.In accordance with the terms of the Loan.Agreementthe LuxembourgGovernment has made five semi-annualpayments on accountof chargesaccruing under the loan, The firstpayment was January15, 1948 and the totalamounts paid-up till January15, 1950 were $847,204and Belgianfrancs 3,707,445. Luxembourg has made two principalrepayments, the firston July 15, 1949 and the secondon January15, 1950. The totalprincipal repaid to date is $90,938 and Belgianfrancs 378,467,

17. The followingsemi-annual payments have been receivedfrom the GrandDuchy of Luxembourgon account of commitmentcharge, interest, com- missionand principal:

CommitmentCharge Interest& Loan Due Date Currency Commission_ Total (Expressedin UnitedStates Dollar Equivalent) Jan, 15, 1948 U.S. Dollars 57,994 57,994 BelgianFrs. 1,085 - 1,085

Jul, 15, 1948 U.S. Dollars 172,661 -- 172,661 BelgianFrs, 19,054 __ 19,054 Jan,,15, 1949 U.S. Dollars 191,716 191,716 Belgian Fro. 20,569 -- 20,569 Jul.15, 1949 U,S, Dollars 208,417 45,967 254,384 BelgianFrs. 20,569 4,033 24,602

Jan. 152 1950 U.S, Dollars 216,416 44,971 261,387 BelgianFrs, 20,484 4,033 24,517 18. $238,017was cancelledfrom the originalloan of $12,000,000 on December19, 1949 and a pro rata reductionof each semi-annualamortiza- tion paymentwas accordinglymade, commencing with the paymentdue January 15, 1950. 19. Repaymentsof principalof the loan during1950-51 are at the rate of approximately $100,000 per annum. From 1952 until 1972 repayments increasegradually from $390,000to $742,000annually. The annualpayments includingprincipal, interest and commissionfor the life of the loan are shown in Annex III beginningwith January15, 190.

VT RELATIONSBETWEEN THE BANKAND THE BORROWER 20, Covenantsrelating to provisionof information,pledge of assetsand consultationare includedin ArticleVII of the Loan Agreement, The Luxembourg Government has complied with its obligations. Contact with - 5 - the respresentativesof the LuxembourgGovernment has been regular and satisfactory.Officials of the Bank who visited Luxembourg were given every opportunityof studying on-the-spotmatters relating to the utiliza- tion of the loan.,

21, Since the ratio of annual debt service to the ordinaryreceipts of the Luxembourgbudget has remained at a level of only about 10% over the past three years, there has been no reason for the Borrower to approach the Bank in connectionwith an increase in its indebtednessas provided for by Section 3 of Article VII of the Loan Agreemento

22. In a letter dated August 27, 1947, and annexed to the Loan Agreement, specific representationswere made, inter alia, about the unblock- ing of frozen bank accounts arising from the postwar monetary reform. The Luxembourg-Governmentgradually released funds from these accounts and in the summer of 1949 the Bank was given the opportunity to comment prior to the release of the residual amount,

= CALDEVELOPMEITS

23, Since the Second World War the Grand Duchy has been governed by a coalition composed of representatives of the Christian Social Party (a conservativeCatholic party) and of the Democratic Party (a moderate center party), The principal members of the Government have been in office continuously for many years and are well known internationallya Parlia- mentary electionstook place in June 1948 as a result of which the composi- tion of the Chamber of Deputies underwent no significant change,

VIII ECONOMICPOSITION AND PROSPCTS

24, Because of the existence of the monetary and economic union between the two countries,economic conditions in Luxembourg closely parallel and indeed largely depend on davelopmentsin Belgium. By the convention of 1921 establishingthe economic union between the Grand Duchy and Belgium, substantialcontrol of monetary policy passed to the National Bank of Belgium which acts as the central bahk for the Union, At the same time, all customs barriers between the two countrieswere abolished, Later, pursuant to the agreement of 1944 amending the original convention,a joint authority,the Institut Belgo-Luxembourgeoisdu Change, was set up, with the National Bank of Belgium as its executiveagency, to contrcl the foreign exchange operations of the Union, As a consequenceof these measures, separate data on the internationaltrade and payments of the two countries do not exist, nor is it possible to assess separatelythe foreign exchange position of the two countries,

25e In view of the close economic and financialrelationships between the two countries,Section IX of the Loan AdministrationReport on the Belgian loan dated June 30, 1950 deals-not with Belgium alone, but with the situationand prospectsof,the Belgo-LuxembourgEconomic Unior.as a whole, This Section is attached to this Report as Annex IV, - 6 -

26, There are, however,certain local variations betweenconditions in the two countries,The relativequantitative importance of the steel industryis far greaterin Luxembourgthan it is in Belgium. Despitethe recentdecline in demandfor Belgianand Luxembourgsteel, however, unem- ploymentis not at a levelwhich constitutesa significantproblem for Luxembourg.Furthermore, apart from the customsrevenues of the Union, which are dividedaccording to a fixedratio, the Luxembourgfiscal system is independentof that of Belgiumo The Bank has a specialinterest in the fiscalposition of the GrandDuchy, Since Luxembourghas no centralbank of its own as a sourceof credit,the Governmenttsability to obtainthe local currencywith which to purchasethe foreignexchange needed to servicethe Bank'sloan dependson an adequatelevel of budgetaryreceipts, Overallbudgetary equilibrium was achievedin 1947 and 1948. In 1949 the ordinarybudget was balancedbut a smalldeficit (Lfrs. 288 million) appearedin the extraordinarybudget, arising mainly from expenditureson reconstructionand war damagecompensation, This situati.onis repeated in the budgetfor 1950;an estimatedsurplus of Lfrs.19 millionin the ordinarybudget is more than offsetby an estimateddeficit of Lfrs.421 millionin the extraordinarybudget. It is expectedthat this net deficit of Lfrs.402 millionin the Governmentaccounts as a whole will be financed,as was the deficitin 1949, by local savings. In view of the past growthof savingsdeposits this expectationseems reasonable, ANNEX I

Disbursementsby Quarterly Periods (In Thousands of Dollars)

Categor Oct/Dec Jan/Mar April/June July/SexDtOct/Dec Jan/Mar Akyri/Je Jul.yfSetatOct/Dec Total Ca947y 1948Mr ApilJu1948 1948 1948 1949 1949 1949 1949

Industrial Equipment

Rolling Mill 4,879 1,185 1,436 7,500

Railway Eouinment

Locomotives 300 667 140 182 77 181 363 154 676 2?740

Cars 284 71 778 1,133

Miscellaneous 150 29 116 8 86 389 Equipment

Total 5,179 1,852 1,576 182 511 210 479 233 1,540 11,762 IU ANNEXII

ANNEXII

Disbursement by Categories (In Thousands of DollarsT

Original Transfer Cancella- Final Loan between tion of Disburse- Category Commitment Categories Commitments ments _ Industrial Eqlipment

Rolling Mill 7,500 - - 7,500 Railway Equipment

Locomotives 1,720 1,035 15 2,740

Freight Cars 2,455 - 1,121 201 1,133 Repairs of Freight Cars by Belgian

Industry 100 - 100 - Miscellaneous Equipment 225 186 22 389

Grand Total 12,000 -- 238 11,762 AMEX III

Table of Amortizationand Interest and Loan CommissionPayable Over the Life of the Loanr

Interest and Loan Commission Principal Total Belgian Francs Belgian Yrancs Belgian Francs (United States (United States (United States United States Dollar United States Dollar United States Dollar Grand Dollars Eouivalent Dollars Brnxivalent) Dollars Equivalent) Total

1950 444,807 39,892 90,053 7,930 534,860 47,822 582,682 1951 452,014 40,539 90,000 8,000 542,014 48,539 590,553 1952 445,385 39,944 358,000 32,000 803,385 71,944 875,329 1953 430,037 38,568 370,000 33,000 800,037 71,568 871,605 1954 414,203 37,147 382,000 34,000 796,203 71,147 867,350 1955 397,841 35,680 394,ooo 36,000 791,841 71,680 863,'521 1956 380,933 34,164 407,000 36,0oo 787,933 70,164 858,097 1957 363,518 32,602 420,000 38,000 783,518 70,602 854,120 1958 345,520 30,988 4333,000 39,000 778,520 69,988 848,508 1959 326,954 29,323 448,000 40,000 774,954 69,323 844,277 1960 307,766 27,602 463,000 42,000 770,766 69,602 840,368 1961 287,894 25,820 479,000 43,000 766,894 68,820 835,714 1962 267,378 23,980 494,000 44,000 761,378 67,980 829,358 1963 246,221 22,082 510,000 46,0o0 756,221 68,082 824,303 1964 224,380 20,123 526,000 47,000 750,380 67,123 817,503 1965 201,836 18,102 544,000 49,000 745,836 67,102 812,938 1966 178,512 16,010 562,000 51,000 740,512 67,010 807,522 1967 154,410 13,848 580,000 52,000 734,410 65,848 800,258 1968 129,584 11,622 598,000 54,000 727,584 65,622 793,206 1969 103,941 9,322 619,000 55,000 722,941 64,322 787,263 1970 77,439 6,945 639,000 57,000 716,439 63,945 780,384 1971 50,059 4,490 661,000 59,000 711,059 63,490 774,549 1972 21,764 1,952 68190Q0 61,000 702,764 62.9i2 76-5,716

Totals 6,252,396 560,745 10,748,053 963,930 17,000,449 1,524,675 18,525,124

In addition to the above: 1949 208,417 20,569 45,967 4,033 254,384 24,602 278,986 s- ANNEXIV

THE ECONOMICSITUATION AND PROSPECTSOF THE BErnO-LUXET.BOURG ECONOIMICUNION

I Introduction

.1. The economic policy of the Belgo-LuxembourgEconomic UTnionhas been based since the end of the war on the belief that maximum productionar.d optimum allocationof resources could best and most quickly be reached through the free play olfmarket forces. The major objective of rolicy has therefore been to restore internal monetary equilibriumas soon as possible and thereafter to restrict the role of Government in economic life to the maintenance of this equilibrilum by financial rather than physical controls.

2. A monetary reformwas carried out at the end of 1944 to reduce the accumulated inflation of the war years and steps were taken to s-tabilize the floating debt and bring the budget into equilibrium by increasing tax revenue and undertaking only a restricted orogram of nublic investment financed through long-term loans from the nublic. Interest rates were raised to limit the ex.ansion of private credit and commercial banlks Were required to hold a considerable proportion of their assets in the form of Treasury obligations. At the same time, a liberal imoort policy was followed, and in the course of 1948, thanks to the fact that the country'sproductive apparatuswras in a position to increase output rapidly, fiocal and monetary equilibrium was restored at a general level of industrial production well above prewrar. The licensing system was still used to control. imports from the dollar area, although it was administered vwith considerable liberality. But few controls over production and distribution were retained.

3. By the end of 1948, however, signs of a change were visible. The hea\Jy industries continued to operate at maximum capacity. Effective demand for various consumers' goods, notably textiles, had, however, fallen off, partly because the home market was becoming saturated, but mainly because foreign countriesvwhich had by then exhaustedthe credit margins provided for in their nayments agreements 7wiLthBelgium-Luxembourg, were unwilling to pay in hard currenciesfor goods wrihichthey deered essential to their economic recovery. By January 1949 unemployment had reached 253,000 or more than twice wrrhat it had been in January 1948. A decline in industrial activity occurred last sulmmer uhen foreign demand for Belgian and Luxembburg steel contracted sharply.

4. These trends in production and unemployment affected the country's fiscal position. In the 19h8 Belgian budget revenue and exDenditure, both "ordinary"r and "resulting from the war" was in balance. The latest estimate for 1949, howTever, indicates that although revenue (at Bfrs. 65.& billion) may be expected to exceed the estimatesby about 3frs. 5 billion, ordinary!e6xendi- ture and expenditureresulting from the w;.arwill total Bfrs. 68 billion compared w,Tiththe original estimate of Bfrs. 6o.l billion, thus leaving a deficit of Bfrs. 2.6 billion. The increased cost of unemployment relief was the larg,est single cause of the rise in exDenditure. Budget estimnates for 1950 show revenue and expenditure (ordinar: and resulting from the war) in balance of Bfrs. 62.4 billion, The lower expenditurei.s to be achieved by reducing subsidies, in particular to the coal industry and railroads, by Bfrs. 3.5 billion, and by cutting ordinary expenditure on unemployment relief by Bfrs. 3.2 billion. Dart of the latter reduction, however, merely represents a transfer _ 2 ANEXM IV

of the burden from the ordinary to the extraordinarybudget. In addition to Bfrs. 1 billion allotted in the ordinary budget for financirngunemployment relieg, the extraordinarybudget authorizes loans of Bfrs. 2 billion which will be required if registeredunemployment continues at the present level.

5. As unemploymentincreased and as the possibility of floating public issues in the domestic capital market simultaneouslyimproved, the Belgian ':overnmentdecided to increase public investment,financed mainly through the extraordinarybudget. Several supplementaryappropriations w.}!ere made and extraordinary budget exnendituresamounted to Bfrs. 15,8 billion in 19ih0. In 1950 the extraordinary budget provides for expenditures of Bfrs. 17.5 billion. This increase in the extraordinary budget is attributable in part to increased military expenditures, but mainly to the enlarged public works program, to the Government financed housin- program and to the new method of financing unemoloy- ment relief.

6. The changed economl-cconditions have led t1he Belgian monetary authorities to modify somewhat t'h,estri-t monetary policy w.rhich they have pursued since the end of the -rwar. On October 6, 194L°,the National 3ank of Belgium made a small reduction in the discount rate (for exa.nle, by 1/4Ldto 3 l/I% for accentances approved by the National Bank for the purchase of imports) and a fewAdays later relaxed somewhat the regalations relating to the in-vestment of commercialbank assets. Apart from the measure allowing the banks to subscribe to the 4X%5-year Treasury issue in Novem'ber19119, however, the nevwregulations have not yet been put into effect by the Banking Commission. 1K1oreover,the decision in Septerrmberto devalue the 3elgian and Luxembourg 'rancs by 12.3L% in relation to the U.S. dollar was based in part on the desire to maintain internal monetary stability. The relativelysmall degree of deDreciationwas based on th.ceex oectationthat any rise in cost of living and of productionresulting from the higher cost of goods imported from countrieswhich had not devaluedw"ould be offset by the fall in the cost of irmportsfrom countriesvrhich had devalued more than Belgium.

?roductionand Bmployment

7. Apart from seasonal fluctuations,the general level of economic activity has remained feirly stable over the past two years. Last fall, the general index of industrialproduction was substantiallylowrer than in the cor- respondingmonths of 1948. gradual recovery has since taken place, and in Anril 1950 the AGEFI indexQ/ stood at 1.2)1.9(provisional, 1936-38 = 100), or L.2 poinatsbelow the level reached in April 19L9.

8. This general stabilityconceals important variationsbetween different sectors. The Belgian textile industry,for example, .rhichhad experlenceda severe setback in 1948,is nowrbenefiting from the recent measures to liberalize iritra-Iuropeantrade and is operatingat, or near, the highest level reached

1/ Agence Economique and Financiere- This index covers Belgium only. However, conditionsin Luxembourgfollowed a similar pattern. - 3 AlUNra IV

since the war. The volume of construction, sti-nulated by the public works and housing programs undertaken by the Government, has also increased steadily; accordin- to the AGF.T index the 1936-38 average wras reached in MFarch 19)49 and wrrasexceeded by 1l% in April l950 (provisional).

9. As a result of declining home and -foreign demand, _elgian coal production fell sharply last summer to below 80% of the 1936-38 level. By Augjust, stocks had risen to the abnormally hizh level of 3 m-llion tons, Vwilst output per man-shift had dropped to 610 kg. against a monthly average of 631 kg. in the first half of the year. On October 1, the inter-colliery comn- pensation system -- wrhereby subsidies wmere paid to unremunerative collieries out of the profits of the remunerative mines -- vas abolished and a ner scheme of direct subsidiesintroduced. In order to stinulatea more economi- cal production these subsidiesdecrease automaticallyby 5% each month. The structure of coal prices was also altered to conformrmore closely to home demand. Thereafter the situation irmproved noticeably, exce-pt in the Borinage region. Production has returned to about the prewar rate, and in December 1949 stocks wrerenormal and output per man-shift had recoveredto 691 kg. or 15% above the 1948 average. The crisis in the coal induistryis neverthelessof a structuralnature and persists. Belgian seams are narro,rand not well-suited to mecharii-sation;equipment is old, and manpower at the coal face comparativel unskilled. Output per man-shift is still well belowrtrhe prew-ar level, and is lowTerthan in Germany, the Netherlandsor C-reatBritain. At present price levels, dom6stic consumntiondoes not offer an adequate outlet for production while most of the European coal exporting countries produce coal under cost conditions more favourable than does Belgium. On the other hand, Arerican coal has nof practically disappeared from. the European market and supplies available for export from Poland may decline.

10. Record-breakingoutnut levels in the iron and steel and metal manufactu.ringindustries wrere the chief reason for the high levels of indiis- trial production achieved in the spring of 1949. In Mrarch,Belgo-Luxembourg steel productiontotalled 670,000 tons comparedwith a monthly average of 5681000 tons in 1929 and only 310,000 tons in 1938. Thereafter output fell sharply, as domestic needs declined and foreign demand for Belgian steel became increasinglyaffected by rising production in other countries and by marketing difficultiesresulting from shortagesof Belgian francs on the part of some buyers. The appreciation of the Belgian franc in rel2tionto other Euronean currenciesin Sentember 1919 did not improve the industry's competitive position. By that time only 53 blast furnaces were in operation, compared with 72 at the beginning of the year, and, in November, output of ingots and castings was down to 420,000 tons and very substantial price reductions wrrere being made in export markets. Thereafter,there wrasa slight improvement, particularlyin Luxembourg,and production of the Union in April 1950 totalled about 490,000 tons (provisional).

11. Sizeable unemploymenthas er-sistedin DelgiUm since the end of 1948 and has spread to most branches of industry. For well over a year the number of those registered as totally or partiallyunemployed has not fallen below 10% of the insured population. The figure of 213,000 recorded in the middle of May 1950, was roughly the same as a year before but the number of those totally unemployed,172,000, was noticeably higner. It should be recognized, however, that the very liberality,both of the postwar Belgian unemployment 4 ANN1EXTV

insurance system and of its administration,has resulted in the inclusionanong those drawing unemployment benefits of a number of personswho properil might no-t be classified as involuntarily unemployed. The level of real unemployment is, therefore, lower than the number of registered unemployed syould indicate.

12. The effects therefore of the recent modificationsin fiscal and monetary policy on production and employment have not so far been very far- reaching. Although the increased rate of Government-inducedinvestr;ent has probably resulted in somewhat higher levels of industrialactivity than would otherw-ise have been recorded, it has not yet brought about any reduction ln the level of unemployment.

Prices, .Tages and TToneySuEpJy

1.3. Prices in general have shown a distinct tendency to decline since about the middle of 1948. `7holesaleand retail prices indices stood at 3k41 and 376 (1937 100) in September 19)49compared with 367 and 390 at the beginning of the year. Prices of agricultural products, particularly those of vegetable origin, led the downwuard movement, but last year industrial nroducts were also affected, mainly as a result of the changed market conditions for metals and mLetal. manufactures. The devaluations of September 1949 gave rise to a variety of reactions; although some raw material prices advanced signi- ficantly, the deflationary tendency still seems to prevail. Unlike wholesale and retail prices, the index of hourly earnings'haa continued to advance slowly, reaching 398 last December (1937 1.00) compared with 386 at the end of 19148.

14. In general, the monetary pl.cture in Belgium has changed relatively little over the past year; between February- 19119 and February 1950 the money surply rose by less than 3$. Domestic credits granted by the banking system have risen by Bfrs. 5.4 billion (or by 85) writh the share of the Government increasing slightly. On the other hand, net foreign credits granted by the National Bank of Belgium through payments agreements (including Belgian franc advances under the Intra-European payments scheme) fell after the Septem.ber devaluations and at the end of February 1950 stood at about Dfrs. 9.) billion or about Bfrs. 2 billion lower than a vear before. In view of "he dclvrnward movrement of prices and the lag in the improvement of economic activity, it is not surprising that the capital market has become increasingly easier, with Government bond yields continuing to decline and savings tending to accumulate in liquid form. Under such conditions,the budget deficit does not at present constitute an inflationary threat.

External Financial Relations

15. The Belgian franc remains one of the "hardest" of EFuropean currencies. Nevertheless, in vie-w, of the extent ofthe devaluation of sterling and other currencies in September 1949, the monetary authorities decided to reduce the value of the Belgian and Luxembourgfrancs by 12.34% in relation to the ANNEXIV

U.S. dollar and the Swiss franc. In 19h9 further steps were taken to remove restrictionson foreign exchange transactions. Early in the year the regula- tions governing the import and export of bank notes were relaxed and thereafter the spread between the official rate and the free rate in New York and Zurich narruovedand finally disappeared after the currency adjustments of September. .- easures -,rerealso taken to give greater freedom for capital movements between the Belgo-LuxembourgEcOInomic Union on the one hand, and Switzerlandand the TTnited States on the other. Finally, in November 191[9, the payments agreement rith Switzerlandwas allowed to expire, and, since then, rates for the Swiss franc and the U.S. dollar have been determined in the free market. The National Bank of Belgium, howrever, stands ready to prevent excessive fluctuations.

16. The booming postwar foreign demand for goods from the Belgo-Luxembouz Economic Union reached its climax in the first half of 1949, when, coinciding with a decline in raw material imports, it placed the Union in the abnormal position of having an overall export surplus. Since then, however, export values have tended to decline somewihatwhereas importshave increased,particularly after the currency adjustments of Septem.ber. For the year 1909 as a whole, an approximate balance vas reached on trade account with total exports of Bfrs. 79.7 billion (8% higher than in 194l8) and total imnortvs of Bfrs. 81.1 billion (7% lower than in 1948). The volume of exports, at 82%Jof 1937, was stlll well below,,t the prewar level. The volu-me of imports, on the other harld, fell to only 87% of 1937, compared with 1035 in 1947 and 931%in 1918.

17. As a result mainly of these favorable trade developments, the balance of payments position of the Union has remained strong. In 1910 an overall currenu account surplus of about Bfrs. 5 billion (provisional)was recorded, comparedwith a slightly larger overall deficit in the previous year. Nest of -the1949 surplus, holwever,accrued in the first half of the year when steel exports found ready buyers and before the currency adjustmentsof last fall. The gold and U.S. dollar assets of Nletropolitan Belgiuri/ rose to a nostwriarpeak oquivalent to U.S. :'876million in October 1949 but, partly as a result of special debt redemptions, have since declined to ,801 million at the end of TTarch 1950. The current account deficit of the Union with the dollar area is still large, amounting to around ."250 million in both 1948 and 1949. At present this deficit is being financed mainly by ECA conditional aid. Particularly in the sPring and summier of 19106, the Belgian surplus with thne other countries participating in the European Recovery Program exceeded the dollar deficit by a considerable margin, and the excess w,as financed in part by Belgian fianc credits, in part by ECA dollars and in part by further gold payments, notably by the U.X. Since the currency adjustments, hoTever, the Belgian surTuluses with most countries in lNestern Europe except the Netherlands and "estern Germany have declined substantially. In the case of these tvo countries, Belgian exports, particularly of textiles, have been stimulated recently by the reductionof quantitativerestric-tions in intra-Europeantrade, but it is yet too early to say whether the large Belgian surpluseslwith these countrieswill be maintained.

1/ Official and private, as reported to U.S. Banks. Luxembourg also has small U.S. dollar holdings amounting to $13.6 million at the end of December 1949, while the Belgian Congo gold and dollar holdings amounted to I5O million at that date. le8a Some furtherprogress has been made towardsthe creationof the BeneluxEconomic Union, notably in the liberalizationof tradebetween the two countriesand in the progressiveunification of indirecttaxation, How- ever,much remainsto be done, and it is probablethat some time will elapse beforefull economicunion will be achieved.,

-Balanceof PavmentsProspects

19, The internationaleconomic position of the Belgo-Luxembourg EconomicUnion is still strong. It has, however,been somewhatweakened in the past year, notablysince the sellerstmarket for steelproducts came to an end and sincethe currencydevaluations of last autumnmade Belgianfranc pricesrelatively high. The countrytscapacity to maintain its competitiveposition in worldmarkets will dependin futureupon its abilityto reducecosts and prices. Both the liberalimport policy, and, more recently,the relativelysrnall devaluation of the franc,put pressure on manufacturersto do this. Exportprospects will dependlargely upon the futurecompetitive position of the textileand metallurgicalindustries which made up about two-thirdsof totalBelgian exportsi 20, Sales of textilesto the Netherlandson the large scaleof recentmonths may not last, and the outlookfor Europeantextile exports in generalis not very reassuring.On the other hand,the Belgiantextile industryseems so far to have made a relativelysatisfactory adjustment of costs and pricesin responseto the deflationarypressure to which it has been subjectedin the last two years.

21, Comparedwith some of its Europeanrivals, the Belgiansteel industryis handicappedby the lack of domesticore, by the high prices which it must pay for coal,and by its relativelyhigh wage costs. On the otherhand, it has the advantagesof a highlyproductive labor force,a flexibleorganization of productionand excellentmaintenance. Before the war, the Belgianand Luxembourgsteel industrieswere among the lowest cost producersin Europe;after the new installations(including those financedby the Bank) go into full productionin 1950 or 1951, there is no apparentreason why they shouldnot be able to maintainthat position, 22, The changingmarket conditions of the past year have stimulated growingfears of futureexcess steel capacity in Europeand increasing talk of internationalmarketing arrangements, These have culminatedre- cently in the Schuman Plan for the integration of the Western European coal and steel industries, Too little is known here of this scheme to permit any firm judgment of its potential results, The Belgo-Luxembourg Economic Union exports a higherpercentage of its production than any othermajor steel-producingcountry; it was the worldts largeststeel exporterbefore the war, and participatedin the many internationalmarketing organizationswhich then existed, Belgiumand Luxembourgwill obviously be closelyinterested in any developmentsin this direction,and their Governmentshave alreadyindicated cautious support for the SchumanPlan and have been takingpart in the preliminarydiscussions in Paris. AN7iEXiV/

23. The characteristicfeature of postwar Bel.ian trade has been its surplusvTith Europe and its deficitwsrith the 'estern Hemisphere. This may be expected to continueat least until the EuropeanRecovery ?roFrramends; but the devaluationof the Belgian franc in rela-tionto the U.S. dollar and its appreciationin relation to most other European currencies,should reduce both the surplus irwithEurope and the deficitwith the United States, and thus help to bring about the structural adjustmentrequired in the nattern of Belgian 'trade.

BelgiumtsCapacity to Service External Indebtedness

24. The combined long-term externaldebt owed or guaranteedby tne Belgian and LuxembourgGovernmenits amounted to the equivalentof U.S. $385 million at the end of 19249. (See Annex V and Annex VI). Of 'his, about U.S. $300 million was in U.S. or Canadiandollars, about .$?60million in Swiss francs, and the remainder in sterling and Swedish kronor. Total service payments average the eqluivalent of about U.S. a.30million per annum until the end of 1952and then decline gradually to the equivalent of about U.S. $'21 million in 1958. (See Annex VII, Annex VIII and Annex IX). They then rise to an annual average of about U.S. $30 million for the next four years when the postwar Belgian issues in Switzerland- for which no sinking fund is provided- reach maturity; they subsequently drop to U.S. $,16 million in 1966 and thereafter decline gradually. Service payments due in U.S. and Canadian dollars move more regularly,reaching a peak of over -26 million in 1952, dronoin? rather sharply to less than U.S. 'il8million tvroyears later and then declining graduallyto about U.S. $110million in 1969.

25. In a regime of convertiblecurrencies, the service of this external de'bt,which is likely to cont-inueto be largely offset by earnings from Belgian investments in the Congo and abroad, could h,ardly give rise to any serious problemsfor t'h.e3elgo-Luxembourg Economic Union. It is small in relation to the Economic Union's total receipts and payments on current account, each of which approach the equivalent of U.S. ^?2 billion at the present time.

26. Since it does not nowrappear likely that the principal European currencies will be fully convertible bythe end of ERP, the Bank must assess the ability at that time of the Belgo-Luxembourg Economic Union to earn sufficient gold and dollars to balance its accounts with the dollar area. Some increase of earnings from exports to the U.S., to Canada, and especiallyto those Latin American countries with which foreigen trade is conductedin dollars, can reasonablybe expected;th-is will narrow the dollar gan. ToOreover,the exi.stinggold and dollar assets of the Union, as well as its ability to borror abroad, undoubtedly constitutea margin of safety. lNevertheless,a balance with the dollar area may not 'e possiblewithout some restrictionon dollar imports into the Union. In viewJ of the liberal postwrarimport policy and the continuing expansion of supplies available outside the dollar area, such restrictions as might have to be introduced would probably not cause serious industrial dislocation or hardship. Furthermnore, the postwar record of the monetary authorities of the Union suggests that they would not unduly delay the introductionof measures necessary to bring -the balance of payments with the dollar area into equilibriumeven though such a step would be contrary to their present policy of attaining as soon as possible a system of freer, multilateraltrade and payments. 7T!hetheror not, therefore, the major European currenciesare convertiblewhen REP ends, the existingdollar oebt burden of the Belgo-LuxembourgEconomic Union seems wvellwithin its capacity to service.

II Summary of Economic Situation and Prospects

27. Although conditionshave varied widely from industry to industry, the general level of industrialproduction in the Belgo-LuxembourgEconomic Union has remained fairly stable over the past two years. At the same time prices have shown a distinct downward trend, while the volume of money has remained stable and conditionsin the capitalmarket have become easier. Sizeable unemploymenthas neverthelesspersisted in Belgium since the end of 19048, and has spread to most branches of industry. M1ainlyas a result of the need to finance the cost of unemnplo3yment relief, a small de.ficit has reappeared on the ordinary budget and a program of increased public investment has been initiated.

28. The balance of payments position of the Union has remained fairly strong, In 19l_1an overall surplus of about Bfrs. billion was recorded, compared with a slightly larger deficit of similar maraTitude in the nrevious year. The dollar deficit, finaniced at present mainly by ECA conditional aid, was about 8250 million in each year. T|heinternational economic positionhas, however,weakened some-vihatin the past year, notably since the sellers'market for steel products came to an end and since the currencydevaluations of last fall made Belgian franc prices relativelyhigh. In this situatlon,the exDort -pr6opeots6f UniQn hin-e.'.&argely,.onlhe ability: of the textile and metallurgical industries to reduce costs and prices, and maintain their competitive position in world markets. The devaluation of the Belgian franc in relation to the U.S. dollar and its appreciation in relation to mQst European currencies should help to redulce both the Belgian surplus writh Europe and its deficit with the United States.

29. Under conditionsof general currency convertibility,the service of t comparatively-e small external debt of 3elgium and Luxembourg would be unlikely to present any serious problem. The prospects of these conditions beirg realized b- the end of LEP, however, are not promising. Even in a regime of inconvertiblecurrencies, the present dollar debt burden of the Belgo-Luyembourg TconomicUnion should be .rell within its capacity to handle, and might require, at worst, some restrictionof dollar imports. The extent of this restriction should not, however, result in serious hardship. ANNEXV

EXTERNALDE3T OF BELGIU1! AT JANUTA1RYY1 1950

(In thousands) .Outs ta-u-ng Currency -Qressed of Payrent in U.s

U.S. Dollar Debt Dollar Bonds Belgium 6,"O 1925-1955 w 2,3029 / 2,309 Belgium70, 1925-1955 4,572 44,572 City of Antvferp 5%, 1928-1958 5,7125 J5,715 7- 2., 96 12,596

U.S. Government Loans Export-JmportBank 2-3/8-3-2- 1976 $112,091 112,091 ParticipatingIianks 3-1 - 1953 12,600 12,600 Surplus Property 2-3/8, 1946-1976 29,500 29,500 E.C.!i.222 - 1983 . 48 5 47,845 p202,036 202,036

I0B*R*D. Loan 16,000 16,000

Total U.S. Dollar Debt .230,632 230,632 CanadianGovt. Loan 3%, 1945-1976 C' 60,300 / 54,570

Swiss IFranc Bonds Belgium 3170 1937-1985 Sw.Fc. 36,188 1/, 2/ 8,422 La Regie de Tel. et Tel. 4,) 1947-1959 31 Sw.Fc.50,000 11,636 Soc. Nat. de C1emins de Fer Belges 410, 19h8-1960 3/ Sw.Fc. 50,000 11,636 Soc. Nat. de 5heminsde Fer Belgesh%, 19h9-19613/ Sw.Fc.50,000 11,636 Soc, Nat. de Credita l'Industrie4, 1950-19623/ Sw.Fc,50000 636 Sw.Fc.236,188 54,966 SterlingBonds BelgiumConv. 4%, 1936-1970 ; 5,554 l/ 15)545 Belgium4>0, 1937-1960 ; 2 a73 i/ 69320 i; 8,027 22,465

Swedish Kronor Bonds Belgium 4'0,1936-1962 S-w.Ir._10,202 1,969 Grand Total - $ 364,602

1/ Estimated to be outstandingas of 1/1/50 according to indicatedamortization schedules. 2/ Payable in florins, Sv-issfrancs or Swedish kronor at the followingrates: 1 Fl. 2.L Sw. Fcs. = 2.150 Sw. Kr, 3/ Guaranteedby the Belgian Goverment, ANIIEXVI.

External Debt of Luxembourg at December31, 1949

(In thousands)

Outstanding In currency Expressed in of payment U.S. dollars Dollar Debt

Dollar Bonds - 3% 1947-1971 $ 552 552

E.C.A*2-1/2% 1948-1983 $ 3,055 3,055

I.B.R.D. 4-1/4% 1949-1972 - Payable in dollars k 10,7h8 10,748 /

Total Dollar Debt 14,355 3/

SterlingBonds 3% 1947-1971 1/ i 23 66 SwissFranc Bonds 4%, 1948-19832/ Sw.Fcs.194100 4,445

Total excludingBelgian Franc portionof IBRDloan 18,866 BelgianFrancs IBRD 4-1/4%1949-1972 B.Fcs.42,124 964 !

Grand Total 6 19,830

g/ Also payableat the optionof the Bondholderin LuxembourgFrancs at currentrate of exchange, g/ Also payableat the optionof the Bondholderin LuxembourgFrancs at 1 Sw.Fc.= 10.14Lux. Fr. 3 ExcludesBelgian Franc portion of I.B.R.D.Loan gel The IBRD at the presenttime requestsconversion of interestpayments into dollars. ANTEXVII

TOTAL INTEREST AND ALORTIZATIONCHARGES REQUIRED ON THE EXTERNALDEBT OF BELGIUMI

(In millions of U. S. dollars)

Servicecharges Total Totalby currency amount Year U. S. Canadian Simss Pounds Swedish Inter-Amorti-out- dollars dollars francs sterling kroner Totalest zation standing

1950 17.8 3.6 2.3 2.3 0.2 26.2 9.7 16.5 364.6 1951 22.0 3.6 2.3 2.3 0.2 30.4 9.8 20.6 348.1 19?2 22.1 3.5 2.3 2.3 0.2 30.4 9.7 20.7 327.6 1953 18.1 3.4 2.3 2.3 0.2 26.3 9.6 16.7 306.9 1954 13.2 3.4 2.3 2.3 0.2 21.4 9.1 12.3 290.2 1955 13.9 3.3 2.3 2.3 0.2 22.0 8.6 13.4 278.0 1956 12.4 3.3 2.3 2.3 0.2 20.5 8.2 12.3 264.7 1957 12.3 3.2 2.3 2.3 0.2 20.3 7.8 12.5 252.4 1958 12.2 3.1 2.3 1.7 0.2 19.5 7.4 12.1 239.9 1959 11.0 3.1 13.7 1.3 0.2 29.3 6.8 22.5 227.8 1960 10.8 3.0 13.2 1.3 28.3 6.0 22.3 208.3 1961 10.9 3.0 12.7 1.3 27.9 5.2 22.7 183.0 1962 10.6 2.9 12.3 1.3 27.1 4.4 22.7 160.3 1963 10.4 2.8 o.4 1.3 14.9 3.8 11.1 137.6 1964 10.1 2.8 0.4 1.3 1146 3.4 11.2 126.5 1965 9.9 2.7 0.4 1.3 14.3 3.1 11.2 115.3 1966 7.5 2.7 0.4 0.2 10.8 2.7 8.1 104.0 1967 7.3 2.6 0.4 10.3 2.5 7.8 95.9 1968 7.2 2.5 0.4 10.1 2.3 7.8 88.1 1969 6.5 2.5 0.4 9.4 2.1 7.3 80,3

1970 5.9 2.4 0.4 8.7 1.9 6.8 72.9 1971 5.8 2.4 0.4 8.6 1.7 6.9 66.1 1972 6.5 2.3 0.4 9.2 1.5 7.7 59.2 1973 6.4 2.2 o.4 9.0 1.3 7.7 51.5 1974 6.2 2.2 0.4 8.8 1.1 7.7 43.8

Note: Becauseof rounding,columns may not add to exact totals. U;.l VIII

TOTALINTELEST AND ALZIORTIZATIONCHARGS DE*UIR7D ON THE EXTEENALDEBT OF LUX72J3OURG

(In millions of U.S. dollars)

Service charges Total by currency Total Year US . Swiss Pounds Total In- Armiorti- amount dollars francs sterling terest z-ation Outstan-dinig

1950 o.6 0.2 1/ 0.9 0.7 0.2 19.8 1951 o.6 0.2 1/ 0.9 0.7 0.2 19.7 1952 1.0 0.2 i/ 1.2 0.7 0.5 19.5 1953 1.0 0.2 TI 1.2 0.7 0.5 19.0 1954 1.0 0.2 V/ 1.2 0.7 0.5 15.5

1955 1.0 0.2 1/ 1.2 0.7 0.5 18.0 1956 1.0 0.2 T/ 1.3 0.7 o.6 17.5 1957 1.0 0.2 T/ 1.2 o.6 0.6 16.9 1958 1.0 0.2 T/ 1.2 o.6 0.6 16.3 1959 1.0 0.2 I 1.2 0.6 o.6 15.7

1960 1.0 0.2 1/ 1.2 o.6 0.6 15.0 1961 1.0 0.2 1/ 1.2 o.5 0.7 14.L 1962 1.0 0.2 1/ 1.2 0.5 0.7 13.7 1963 1.0 0.2 1/ 1.2 0.5 0.7 12.9 1964 1.0 0.2 1/ 1.2 0.4 0.8 12.2

1965 1.0 0.2 1/ 1.2 0.4 0,3 11.4 1966 1.0 0.2 TI 1.3 0.4 0.9 10.6 1967 1.0 0.2 / 1.3 0.4 0.9 9.8 196C 1.0 0.2 1/ 1.2 0.3 0.9 8.9 1969 1.0 0.2 T 1.2 0.3 0.9 7.9

1970 1.0 0.2 1/ 1,2 0.2 1.0 6.9 1971 1.0 0.2 TI 1.2 0.2 1.0 6.o 1972 1.0 0.2 1.2 0.2 1.0 5.o 1973 0.2 0.2 0.4 0.1 0.3 3.9 1974 0.2 0.2 o,4 O.1 0.3 3.6

1/ Less than Y50,f000.

Note: Because of rounding, columns may not add to exact totals, Al'TNEXIX

TOTAL INTErICST -U'"OKIRTI7ATION CHA2.GES REQUIRED ON THE EXTERNALDEBT OF BFLGIU:i A`NDLUXE1dBOURG

(In millions of U.S. dollars)

Service charges Total Total by curr-enoy Year U S. Candia Swis 0tIn- Arnorti- amount dollars dollars francs Other Total terest zation outstanding

1950 18.4 3.6 2.5 2.6 27.1 10.4 16.7 384.4 1951 22.6 3.6 2.5 2.6 31.3 10.5 20.8 367.8 1952 23.0 3.5 2.5 2.6 31.6 10.4 21.2 347.1 1953 19.1 3.4 2.5 2.6 27.6 10.3 17.3 325.9 1954 14.1 3.4 2.5 2.6 22.6 9.8 12.8 308.7

1955 14.8 3.3 2.5 2.6 23.2 9.3 13.9 296.0 1956 13.5 3.3 2.5 2.6 21.5 8.9 12.9 282.2 1957 13.2 3.2 2.5 2.6 21.5 8.4 13.1 2§9.2 1958) 13.0 3.1 2.5 2.0 20.7 8.0 12.7 256.2 1959 12.0 3.1 13.9 1.5 30.5 7.4 23.1 243.5 1960 11.8 3.0 13.5 1.3 20.6 6.6 23.0 223.lt 1961 11.8 3.0 13.0 1.3 29.1 5.7 23.4 197.4 1962 11.6 2.9 12.5 1.3 2u.3 4.9 23.4 174.0 1963 11.3 2.8 0.7 1.3 16.2 4.3 11.9 150.5 196)4 11.1 2.8 0.7 1.3 15.9 3.9 12.0 138.7

1965 10.9 2.7 ' 0.7 1.3 15.6 3.5 12.1 126.7 1966 8.5 2.7 0.7 0.2 12.0 3.1 5.9 114.7 1°67 8.3 2.6 0.7 1/ 11.6 2.9 8.7 105.7 1968 8.2 2.5 0.7 1/ 11.4 2.6 8.8 97.0 1969 7.5 2.5 0.7 T/ 10.6 2.3 8.3 88.2

1970 6.8 2.4 0.7 1/ 9.9 2.1 7.8 79.9 1971 6.7 2.4 0.7 1/ 9.7 1.9 7.8 72.1 1972 7.5 2.3 0.7 10.4 1.7 8.7 64.2 1973 6.6 2.2 0.7 9.5 1.4 8.1 55.5 1974 6.4 2.2 0.7 9.3 1.2 8.1 47.4

1/ Less than o50,000.

Note: Because of rounding, columns mayJnot add -toexact totals.