the resumption of its exportation activities is the lack of raw materials, 

 especially tin and tin-plate which were formerly imported from England. The 

 need of the latter is so critical that unless the Government changes its 

 present policy and authorizes its free importation, the industry will never 

 recover and will gradually disappear, since the national markets will never 

 absorb more than a 20 per cent of the total normal production. 



These circumstances, steadily aggravated since 19A1 when reduction in 

 the allocation of raw materials began, have compelled the industry to be idle 

 for long periods, to the e>rtent that during 1946 it was only able to work 

 at about 5 per cent of capacity. The following table has been prepared for 

 purposes of comparison to show the amount of some of the essential raiv 

 materials used by the industry in 1935 and the corresponding amounts allotted 

 during 19A6: 



19A6 



Tin-plate 556,000 cases £0,000 half cases 



Oil 16,000,000 kilos 600,000 kilos 



Coal 40, COO, 000 kilos 500,000 kilos 



Rubber 92,000 kilos 



Wire 480,000 kilos 10,000 kilos 



Kails 325,000 kilos 10,500 kilos 



Another factor of paramount importance in hampering the natural export 

 activities of the industry is the present abnormal absorption capacity of 

 the domestic markets which has permitted packers to buy raw fish at prices far 

 beyond those that would be necessary if the finished product were to be sent 

 to foreign markets. 



The Spanish Government in its effort to obtain foreign currency is 

 forcing the fish packing industry to divert its attention from the domestic 

 markets and to resume its former exporting activities. To this end it has 

 reestablished ceiling prices for both conestic and foreign markets, but the 

 measure, unless accompanied by a more effective and actual supply of raw 

 materials or easement of official controls to permit packers to secure necessary 

 requirements in the open markets, will only be theoretical. 



f 



In order to foster exports, the Government has offered the Galician fish 

 packing industry, which as stated clsov/hcre represents an 00 per cent of that 

 in the whole country, to supply the necessary tin-plate and oil. The fact is 

 that since January 1 of the current year, when the first new allotments were 

 to be supplied, the industry has received these materials even in lesser quan- 

 tities than in the previous year, and therefore has had its activities prac- 

 tically paralyzed during the first six months of the present year. 



The continuous paralizaticn of rusijiess, mainly due to the shortage of 

 raw materials, including fresh sardines which is the species most in demand by 

 the packing industry, and the impossibility of regaining foreign markets with 

 the minimum expert prices fixed by the Spanish Government at the fictitious 

 rate of exchange of the Spanish peseta in relation to foreign currencies, has 

 induced many of the larger and old-cstarlished fish racking firms to open 

 factories in Portugal where conditions seem to be much better. 



