The Hard Sell

To give exports a big boost, the Administration this week got ready to unwrap a new plan to help U.S. business find new markets overseas. What the new plan represents is a real change in Washington's thinking: instead of merely standing by to assist American businessmen who themselves initiate export plans and inquiries, the U.S. Government has decided on a hard sell to push exports.

The plan is a savvy blend of old and new. The major innovation--and the most important part of the program--is a Government guarantee of short-term credit for exporters against nonbusiness losses such as those due to war or new foreign-currency curbs. For a small sum, U.S. banks financing exports will be able to buy insurance against nonbusiness risks. Since the banks are traditionally wary of the capriciousness of foreign business climes, U.S. exporters have frequently required their customers to arrange their own financing. For the foreign buyer this can be expensive (interest rates abroad are as high as 36%), may lead him to buy from a German or British manufacturer who already enjoys short-term credit guarantees from his government. Under the new plan, the U.S. Export-Import Bank will offer the U.S. businessman the same short-term service, put him on an equal footing with his biggest competitors abroad. The bank itself may also extend more one-to five-year loans.

To help businessmen spot potential customers, the number of commercial attaches in U.S. embassies and consular stations abroad will be increased in the next three years by 125 to 160 men.

Trade missions of U.S. businessmen abroad will be increased. At some 13 international trade fairs set for this year, the U.S.'s Government-sponsored exhibits will switch their pitch. Heretofore the fairs were largely used to promote the American way of life. Now the Government is determined to sell U.S. goods, along with the American way.

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