TS-1+3 
- 7- - 
The United States supplied 7k percent of United Kingdom tobacco in I938 
and 85; percent in 19*+6. In 19^7 > the United States proportion dropped to 68 
percent, Larger amounts were imported in 19^7 than in 193& from Canada and 
Southern Rhodesia, hut these increases were small relative to the total. The 
declared value of tobacco per pound imported "by the United Kingdom increased 
by 138 percent from 1933: to 19^7* Percentage increases in value per pound by 
country of source vere United States, 123 percent; British India, l8C percent; 
Southern Rhodesia, 218 percent: Canada, 9I+ percent; and Nyasaland, 16U percent. 
British tobacco consumption in May -September 19*+7, after costs of to- 
bacco products had been increased by the sharp advance in duty, was one-fifth 
lower than the same.psriod of 19^6 , Cigarettes the principal tobacco product 
consumed by British smokers, increased from about i+7 cents to about 67 cents 
PQr package of 20 in mid-April 19^7. However, the monthly average consumption 
during May -September 19 ! +7 was about 5 percent above the .12 months average in 
1938. British stocks of tobacco, though. above the low levels of the war, are 
still well. below those of the late thirties. 
The .second ranking foruign customer for United States tobacco in 19^7 
was the Netherlands, Luring July -December 19^7, United -States tobacco exports 
to this country were 50 percent above the same period last year and more than . 
3-1/2 times thoee of the same period in 193^-38. Before the -.war, the Netherlands 
got large quantities from the Netherlands Indies; but because- of unsettled 
conditions .since the war, this trade has not been resumed to .any major extent. 
Other important European customers took less tobacco in the last half of 
I9I+7 than in the same period of 19 1+6, Belgium and Switzerland took kO to 50 
percent less; Portugal about 35 percent less; France and Norway 25 to 30 
percent less; Denmark and Eire } 5 to 10 percent less, Sweden took about 
20 percent more than in July-December 19^6, 
^Important non "European countries which import United States tobacco 
are China, -India, Australia, and New Zealand. Exports to China during July 2 
December were about one -quarter of those in the same period last year and only 
about one -half of the prewar average. Prewar, China was the second -ranking 
importer of United States tobacco , During July -December 19^+7, India took 
lees than one-third as much tobacco as in the same period of 19^6, On the 
other hand,- both Australia and New Zealand took -substantially larger quan- 
tities in the last -half of 19^7 than in the same period of 19*+6. 
United States exports of tobacco in 19^8 are likely to be below 19^+7. 
The stringent restrictions on imports by several countries probably will con- 
tinue for an indeterminate period largely because, of lack of : dollars. If the 
proposed European Recovery Program becomes effective this situation will be 
eased. Several of the countries in the group to be affected : by the Program 
have been major importers of United States tobacco. Western : Germany, for 
instance, took substantial quantities of United States tobacco until the mid- 
thirties when the drive for self-sufficiency under the Nazi regime cut it 
sharply, ^rior to the war, European nations got a considerable quantity of 
tobacco from the Netherlands East Indies. Exports from this area dropped 
sharply after the war began and are not likely to increase much in the next 
2 or 3 years . ■ 
