"/ hold to be fundamental that . . . our citizens shall be safe in freely travers- 

 ing the ocean, that the transportation of our produce, in our own vessels, to 

 the markets of our own choice, and the return to us of the articles we want 

 for OUT own uses, shall be unmolested." — thomas jefferson 



Chapter VI 



FACILITATING TRANSPORT AND TRADE 



About 90 percent of United States foreign trade of $56 billion per year 

 moves by water. Although commercial air transportation between continents 

 has become significant since World War II, it still represents less than 10 

 percent of total cargo traffic and its cost (per ton mile) is 40 times that of 

 ocean shipping.^ 



The future of the United States in international trade depends on many 

 factors and on their interactions, some subject to influence by Federal policy 

 and program decisions. 



As the nations of the world become industrialized, the near-monopMDly of 

 the United States in the world market for many manufactured products is 

 disappearing. At the same time, the world market for both goods and services 

 \vill expand as increasing industrial production creates new mass purchasing 

 power. The net consequence for this Nation could be growing opportunities 

 in foreign trade if American enterprise identifies and capitalizes on com- 

 parative advantages. 



Some predictions of the total foreign trade picture are optimistic, reflect- 

 ing the possibility of a doubling of trade every 20 years.- Assuming that 



^ The cost per ton-mile of comparable cargo (i.e., general cargo in break bulk 

 shipping) is 18-19^ for air transport and about ^2 for sea transport. 



■* U.S. Department of Commerce, Maritime Administration projections, based on 

 the assumption that foreign trade bears a fixed percentage relationship to the Gross 

 National Product show about 1 200 million long tons in the year 2000 as against about 

 300 in 1963. 



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