3/22/78 [1] Folder Citation: Collection: Office of Staff Secretary; Series: Presidential Files; Folder: 3/22/78 [1]; Container 68 To See Complete Finding Aid: http://www.jimmycarterlibrary.gov/library/findingaids/Staff_Secretary.pdf ~HE PRESIDENT'S SCHEDULE Wednesday - March 22, 1978 8:30 Dr. Zbigniew Brzezinski The Oval Office . 8:45 Mr. Frank Moore The Oval Office. (1.5 min.) (Last 5. Minutes: Photograph with Congressman Goodloe E. Byron). 10:30 Mr. Jody Powell T)le Oval Office. 11.:00 Meeting with His Excellency Menachem Begin, (60 min.) T:~e Prime Minister of Israel. (Dr. Zbigniew Brzezinski) The Cabinet Room. 1:30 Vice President Walter F. Mondale, Mr. Frank (20 min.) Carlucci, Dr. Zbigniew Brzezinski and Mr. Hamilton Jordan The Oval Office. 2:00 Meeting with His Excellency Alejandro Orfila, (15 min.) Secretary General of the Organization of American States. (Dr. Zbigniew Brzezinski) - . The Cabinet Room. 3:00 Drop-By ~jhi te House Reception for International (15 min.) Women's Year. (Ms. Midge Costanza) The East Room. 4:45 Heeting of the House Corrunittee on International ( 30 min.) Relations. (Nr. Frank Moore) The Cabinet Room. lfl•••rn ltl..... l& tlrf'l II £181 fiiJIII• !'vi Ei\10 RAN p~ ll\f THE WHITE HOUSE WASHINGTON · 22 March 1978 TO: THE PRESIDENT {) 1 FROM: RICK HUTCHESON'\ZJt. SUBJECT: Memos Not Submitted 1. MIKE BLUMENTHAL MEMO on his, (and Schultze 1 s) March 9 trip to Ottawa to meet with the "top Canadian economic team." They "covered no new· ground," but it was "useful to get acquainted." 2. ZBIG BRZEZINSKI sent you an article from The Trib about the Sing.er Company 1 s reliance on sales to developing countries. The article 1 s point is that Singer is branch- V' ing out to new, Th±rd World mark:ets in an effort to achieve future growth. 3. PETER BOURNE NOTE. Because of the dellay in obtaining clearances, it will probably be another two months before a/' the World Hunger Commission can be set up. MEMORANDUM THE WHITE HOUSE WASHINGTON March 14, 1978 MEMORANDUM FOR: THE PRESIDENT FROM: ZBIGNIEW BZEZINSKI flZ> ~ SUBJECT: U.. S. Economic Relations with the Developing World In your comments on the draft outline of the Caracas speech you referred us to .an article in the New York Times by Stephen Goodman of the Singer Company. Goodman's thesis, that financial transfe·rs to the developing world will sustain economic activity in the industrialized countries, will be. incorporated in the Caracas speech. A member of my s·taff has spoken to Goodman who referred to the decisions in the United States regarding the credit worthiness of the developing countries as a constraint on private transfers to the developing world. We will keep this issue under examination. Because .of your interest in the Goodman article you may also want to read the attached article from The Trib about the Singer Company and its reliance on sales to developing countries. ·. -· S... NGER AND TH~RD WOR-~D .. •'We're the Sears of That Area' The Singer Company; in an effort to ing excess manufacturing capacity. It is also bolster its growth into the 1980s and· working to improve its electronic sewing beyond, has turned its sights to what has machine models because "the path of sew­ been a slo~ly growing market for th·e in­ ing in highly developed countries is qustp~l firm ~ the developing countries of electronic's." . the Third· World. The developing market for sewing In a re~nt interview after completing a·_ machines accounted for about 20 percent of trip to nations in the Far East where Singer Singer's. total dollar sales iii 1977, Flavin already operates - .Thailand, the Phii­ said, and about 40 percent of the sales of the ·Jipines and Singapore...,... company chairman. sewing products division. Sewing machi!les · Joseph B. Flavin said, "What beeame clear are ''ail economic necessity" in developing to me (during the trlp) is th~tyou;re lacid~g countries, he said, and ·the countries will in -a retai! distributor in. that part of the · need a large number 6f machines. · . · Commenting Qn th~ industrial sewing By Robert J. Kozma·, .. machine market; Flavin - said Si_nger' s 'problem is that it "didn't put the money· ·. '~orld. Th~ opportunity i~· b~C6me a.-~J~r· into ·it that we should have." He said the · (dis~ributing) fact,or is there." . · cOmpany's Centurion industrial sewing :·we're the Sears of that' part of the· machine "is a winner, but we need more world/' Flavin said •. While-the. company ·. products. We don't have the produ_cts we sells sewi11g machines iii thes_e · countries, . · .. should have." · · ' . · · · · · · .··· :' '. · ·."our business is IIlOre home equipment than sewing machines, about· 60_:40.. ". He ex­ The Centurion had production p~blems plained that· ·the company is either the in 1977, Flavin 'said, and the eompany lost · leader or.rmmber two in many-Third Worl~. moriey on the machines.S'old in 1977. Singer eountries in the sal~ of refrigE!rators, televi­ is making a little money on tl;le machines at BANGKOK DELIVERY • • : salesmen in Thailand deliiier refrigerator and sewing­ the present time, but still wants to bring sion sets, · gas ranges and other consumer ·in ''l.;ng boat" via the canal lletworks. · items. - rtt~chil!e• production costs down further. ·. But S_ing~ wants to expand these opera- Flavin is enthwiastic about Singer's con• tions, Flavin said. "We're going to create a said. "Our pc)wer is distril;mting. We.have .. Jt ~as one of the largest writedowns in re- .. sumer. products· bu!iiiless ("That's.· whete I strategy to attempt to become a major dis:· something to offer that wil.l grow." He.silid cent U.S. business history. · s~ growth earning,'' he-said~ Sales in this tributor of consumer goods" in the more ad- Singer buys the consumer items from l_ocal Flavin sees branching ouf into new · division rose last year to $6o!t5 million from vanced third World nations which· "are manufaCturers ·in the different countries and. markets~ such as the Third World- and . the prior year's $499,7 million. • stable and Will move forward." sells them under the Siilget mime. He said · ~~pan ding its three main business areas - Singer is th~ number-two manufacturer of · ''In those areas where things an; not ~ Singer could help these local manufacturers · sewing products, consumer products and power tools. (after Black and Deck~r) a.~d stable, we're not active and we won't be un; expand' their operaijons if·need be. products and services for the government- sells the products through Sears stores under :.t.~_;: til things settle down," he added:. · The tantalizing question concerilJng as Singer's way to achieve future growth. the "Craftsman" label, Flavin said. "Do-it­ - Aiarge part of Singer's·retailing success in Singer's .current overseas distri,bution efforts Although sewing products account for yourself continues to be good,'' he said. f these countries, Flavin said, is due to its in- · thatFlavin rhetoricallyasked wa5, "What if about half of Singer's sales (which in 1977 ''1978 will be another dandy'' for this area. ; stallment sales -policy, which is important Singer h;td done .that(in the VS.) in ,1920, . totaled $2.29 billion compared. with $2.12 . -- ,.......: . - ; since per-capita income in tltese countries when Sears was Just a catalog starer billion in 1976), Fl.avin said this area will not Singer also supplles Sears with most of the ranges· from $600 to $2,000 a year ... _ If Singer had done that, perhaps it , have spectacular growth bec;ui~e the market .. upright va,cu_um cleaners sold in t~e retail . .. Flavin said the opportunities for Singer-to •· wou_ldn't have found itself_ in an unhealthy· ·in developed· countries is "mature:". chain, Flavin said. It does. not supply caJJ­ ·-move to a greater extent into distribution of~ position in 1975, t.he year Flavin was hired. HQwev~r, Flavin said ''ju:st becuase it's not a nister models to. Sears, he noted, but the I ·. big ticket items "don't exist in established · He was executive vice preside~t of Xerox growth business today; I'mnotsaying its not company supplies Whirlpool with motors , markets but they do in . d,~veloping Corp. in charge of international operations a good business for us." , used in their cannister models. "at Sears' re- '.I countries." Flavin said that a number of ("I ran half the ciompany"). Th,e sewing business for Singer is essen- quest." . years ago .Singer tried to add other con~ · When he came aboard, Singer had suf- tially two businesses -.. consumer and in- Singer also makes air conditioners, and . su:mer items to fts retail st()res in the U.S., fered through two years of steadily de~lin- dustrial. sewing. And the ~ns1,1mer market is Flavin said. that Singer is right behind the ; ."but it didn't work.:' · - . ing operating eam_~ngs. Flavin's first move further broken down intp th~ develoi'red @d three . industry leaders, Carrier Corp.,. ' ~ :. The, c~mpany · pasn't decided· about· in turning Singer around wastodivest of the.·· developing markets.· · General Electric Co.; and Trane Co.·"It's a · • starting any ma1;1ufacturing facilities in business machines division, which was los- .In the developed consumer markets, weak industry,·: he said, and "we believ~ we . these countries. "If s probably _not right for .ing money, together with some other opera- Flavin said the company is tryi1;1g to better· have as goOd a ch11.0ce as anybody" to do us,'' _the grayhaired 49-year-o)d eJ;ecutive tions at a write down of about $400 million.