current business statistics - Bureau of Economic Analysis

26 SUKVEY OF CURRENT BUSINESS February 1972
to the dollar resulted in a twofold increase
in the sales of piastres to individuals
through official outlets and thus
some of the personnel spending which
was previously lost to the black market
is now included in the reporting system.
Total outlays in Vietnam in the first
half of 1971 were approximately $520
million at an annual rate, essentially
unchanged from 1970.
The withdrawal of American GI's
from Vietnam has had as much impact
on certain other countries as on Vietnam.
Spending by servicemen on rest
and recuperation leave in Australia, for
example, channeled more than $80
million into that economy during the
past 4 years. Other "R and R" leave
centers were located in Hong Kong,
Singapore, Bangkok, Taiwan, and Okinawa,
and a total of more than $100
million was spent annually in these
places when American forces in Vietnam
were at their peak. Such spending is
estimated to have decreased to about
$50 million in 1971 and is expected to
decline further in 1972.
Military expenditures in Korea, after
peaking at over $360 million in 1969,
declined slightly in 1970 and in the
first half of 1971. An infantry division
was withdrawn in 1971 but some 40,000
U.S. military personnel remain. Also,
there have been substantial U.S. expenditures
in Korea associated with
Korean support efforts in Vietnam,
involving troops, civilian technicians,
and construction materials, particularly
cement.
The other major recipients of U.S.
defense spending, as shown in table 2,
are the United Kingdom, Canada, the
oil-producing countries in the American
Republics and Caribbean area, the
Ryukyu Islands (Okinawa), Philippines,
and Thailand. There are a
number of major U.S. air bases in the
United Kingdom, and Canada is an
Table 2—Defense Expenditures Abroad for Goods and Services, by Major Country r
Total
Western Europe..
Belgium/Luxembourg
D enmark/ Greenland
France
Germany __ _
Greece.. _
Iceland _
Italy
Netherlands-.
Norway
Spain..
Switzerland
Turkey .
United Kingdom
Other and unallocated .
Canada _
Latin American Republics
Other Western Hemisphere-
Bermuda _
Netherlands Antilles-
Trinidad and Tobago _
Other and unallocated
Australia, New Zealand, and South Africa. -
Other Countries.
Bahrein...
Japan
Korea _. ._ .
Morocco
Philippines _
Ryukyu Islands
Saudi Arabia
Taiwan
Thailand
Vietnam
Other and unallocated
Jan.-
June
1960
3,087
1,652 28
51
274
649
19
14
116
37
17
64
9
57
287
30
387
59
89
13
60
124
75
825
36
412
94
26
47
78
42
255
27
53
1961
2,998
1,531
12
37
286
636
18
14
97
28
14
54
6
54
225
50
357
57
100
14
63
20 3
98
855
43
392
112
21
49
93
45
238
212
57
[Millions of dollars]
1962
3,105
1,633 16
34
268
749
20
12
114
34
15
52
5
55
197
62
326
76
87
14
53
173
103
880
39
382
103
18
51
96
44
22
30
237
58
1. For quarterly data by area see line 17, table 9, of the quarterly balance of payments presentations in the SURVEY OF
CURRENT BUSINESS.
2. Includes Cambodia and Laos.
NOTE.—See table 1 for other notes.
Source: U.S. Department of Commerce, Bureau of Economic Analysis, from information made available by operating
agencies.
1963
2,961
1,523
12
42
243
691
27
10
93
31
14
49
8
50
184
69
296
79
92
14
51
21 6
105
866
35
368
90
16
46
97
43
20
27
52
72
1964
2,880
1,492 11
36
218
694
28
11
102
40
24
49
10
58
173
38
258
86
94
10
54
24 6
103
847
31
321
917
58
115
37
21
34
64
68.
1965
2,952
1,468 12
40
208
714
31
13
102
41
24
45
11
42
154
31
177
89
80 8
33
32 7
57
1,081
36
346
974
81
123
36
21
70
188
79
1966
3,764
1,535
14
37
206
770
24
17
106
43
28
50
10
49
146
35
205
91
68 9
21
29 9
59
1,806 38
484
160 5
147
150
51
60
183
408
120
1967
4,378
1,616
35
36
97
837
26
24
102
49
38
48
12
48
210
54
232
102
81
11
43
198
29
2,318 56
538
237 6
167
188
53
70
286
564
153
1968
4,535
1,536
37
34
25
878
29
18
106
41
32
43
10
49
173
61
285
105
82 8
44
228
33
2,494
61
580
302 6
171
201
91
76
318
556
132
1969
4,856
1,628
39
33
18
948
23
17
122
44
18
47
12
43
208
56
296
112
64 8
33
167
42
2,714
50
651
364 6
189
229
92
80
264
576
213
1970
4,851
1,774
37
30
17
1,080
23
21
108
448
53
12
41
228
72
253
118
51 8
17
18 8
48
2,607
40
670
323 7
174
249
79
83
226
527
229
Jan.-
June
1971
2,388
974
19
16
11
596
14
11
59
24 5
29
7
17
123
43
101
54
26 38
114
19
1,214 30
308
148 4
75
127
34
37
99
258
94
important supplier of spare parts for
U.S. military equipment. Bases in the
Ryukyu Islands, Thailand, and Philippines
have provided important staging
areas and other forms of support for
U.S. operations in Vietnam.
U.S. Military Shipments
Transfers under U.S. military agency
sales contracts were running at an
annual rate of $2.2 billion in the first
half of 1971 (table 3). Such shipments
totaled more than $10 billion from 1960
through 1970, with 70 percent of that
total delivered during the 1965-1970
period. This sales program has provided
our allies with modern equipment for
their defense requirements and has
helped to standardize cooperative logistics
and equipment; the expansion of
the program reflects the emphasis on
military sales as a means of offsetting
the foreign exchange costs of American
troop maintenance and other defenserelated
expenditures in Europe and
Southeast Asia.
.Transfers under Foreign Military
Sales (FMS) Contracts account for 95
percent of the total shown in table 3
and have been primarily to developed
countries. FMS transfers represent deliveries
of goods to and performance of
services for foreign governments by U.S.
military agencies. In this context,
"delivery" of goods refers to the transfer
of goods from the U.S. Government
to foreign governments for use abroad
or in the United States and to the
transfer from stocks at U.S. military
installations abroad. The equipment
involved largely consists of advanced
weapons systems, aircraft, and associated
parts and spares. Also included
are training in the use of this weaponry,
and other less sophisticated
equipment such as tanks, ammunition,
and communications gear. Transfer is
effected upon change of title or performance
of service.
The other 5 percent of military transfers
consists mainly of sales of surplus
or excess property, mostly at scrap or
salvage value, petroleum products and
other goods and services furnished to
foreign naval vessels and aircraft, and
deliveries of material and services under