isVick from U.S. Treasury Survey of Pusiness — — Private U.S. investments and assets abroad reached $60 billion at the ond of 1962, and advanced a further $3 billion in the first halt of 1963.
American privato invostors added over $4.3 billion to their foreign holdings during 1962. Capital outflows were $3.3 billion, about equal to the annual average atarting with 1956 when an unprocondonted rate of foraign investment began, and an additional $1.2 billion was invested out of 1962 oarnings retained abronds.sscas
U.3. firms invested a further $2.8 billion in their foroign affiliates in 1962, raising the aggregate book value to over $37 billion at the end of the year. Not investments in Burope of $1,1 billion in 1962, sligh ly over the 1961 ineroment, raised the total of direct investments in that area to mors than 8.8 billion, Half of these 1962 investments wero mado in mamif acturing facilities, including about $100 million spent to acquire existing enterprises from foreign owners. Prasent indications point to anothor sizeable total for now investments in Hurope in 1963.
Capital flows to affilistes in Common Market countrios rose to £466 million in 1962, an all-time rocord., At the samo time, because of a somewhat higher rate of payout from only slightly higher earnings, the amount reinvested declined to $81 million from $129 million in 1961. In the rest of Burope, direct invoestmont activity has also been substantial in recent years, with annual additjons from capital flows plus reinvested earnings at a rate of over $@ billion. However, additions for 1962 were considerably less than in 1961, largely roflecting a sharp decline in capital flows to oil companies in the United Kingdon, offset partly ty higher investments in manufacturing.
In Canada investments by U.S. firms were up substantially in 1962 with additions of nearly $700 million about equal to the average increase in the 1950 -61 period. Most of the increase as compared with 1961 was for developmont of iron ore properties. Manufacturing investm nts in Canada continued to increase at about $250 million annually, tut in 1962 the growth was financed very largely by reinvesting most of a sizesble gain in earnings. ,
In other developed countries, U.5. companies invested an additional $270 million in 1962, a considerable rise over 1961. Australia and Japan received most of the added capital flow, with lesser amounts going to New Zealand and South Africa, Most of the increase in investment went into manufacturing,
For Latin America, the sum of capital flows and reinvested carnings for U.S, investmonts was reduced to about $250 million in 1962 compared with over $400 million in 1961. Tho 1962 result was greatly influenced by large net cash inflows from petroloum and other investments in Venemguola. (a. note: In other mora money was withdrawn from Venesuela than put in =— an indication of the oxtent the countries resources ara boing exploited) In Latin American countries other than Venezuela, U.S, investors added over $400 million to their investments in 1962, nearly the semo amount as in 1961. Tho 1962 investments were very largely in mamifacturing facilities which were increased by over $200 million in the yoar, about half going to Argentina.
The heavy volume of new direct investmont in recent yonrs continued to push osrnings to highor levels with tho total reaching $4.2 billion in 1962, The increase in earnings from 1961 to 1962 amounted to £430 million, of which more than half accrued to petroleum companies, and $100 million was accounted for by manufacturing enterprises, These scarnines represent the share of U.5. stockholders and parent companies in the earnings of foreign subsidaries, affiliates and branches, Out of this total substantial amounts are held abrond as undistrituted profits, The highor 1962 sarnings wore roflected in an increase in the amounts retained by foreign subsidaries, which rose by nbout 15% to $1.2 billion..,Incomo receipts from abroad, which include branch profits, dividends and interest, moved up by 10% to a total of $3.1 billion ,in 1962.0.
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