is 50 nautical miles west of Haiti and 85 miles north of Jamaica. Although slightly smaller in area than the State of Pennsylvania, both the export and import trade of the United States with Cuba was greater than that with any other country of Latin America during 1923. Of the 3,143,210 inhabitants (equivalent in number to the population of New Jersey), 2,217,502 are white, the remainder colored, with the exception of a small proportion of unclassified immigrants. The important cities are Habana, the capital; Santiago de Cuba, Cienfuegos, Camaguey, and Matanzas.

Sugar and sugar products constituted over 88 per cent of Cuba's total 1923 exports and tobacco over 8 per cent, the remainder divided principally between fruits and minerals. From 1911 to 1923, both inclusive, Cuba's foreign trade statistics show an average favorable trade balance of more than $100,000,000 annually, except for the crisis year of 1921, when the imports exceeded exports by $76,000,000.

MARKET FOR PAINTS, PIGMENTS, AND VARNISHES

The manufacture of paints and varnishes in Cuba is conducted on such a small scale as to be almost negligible commercially, except in the case of cold-water paints and calcimine. The great bulk of the demands is supplied with imports.

The value of imports of paint, pigments, and varnish, as taken from the official Cuban statistics for the year 1913, was $855,629, and in 1921 was $2,164,385. In 1922 the value of importations declined to $1,169,416, but the trade recovered in 1923, with receipts. valued at $2,202,371.

The following tables show the imports for the years specified:

IMPORTS OF PAINTS, PIGMENTS, AND VARNISHES INTO CUBA DURING 1913 AND 1921-1923

ARTIFICIAL COLORS OF METALLIC BASE, DRY OR PREPARED WITH OIL OR WATER

IMPORTS OF PAINTS, PIGMENTS, AND VARNISHES INTO CUBA DURING 1913 AND 1921-1923-Continued

A large number of houses in Cuba are constructed of stone or brick covered with plaster or cement. It is the general custom to use dry or prepared colors suitable for the exterior of such buildings. although some oil paint is employed. Light buff is the dominating color. Some cold-water paint is prepared locally by the painters themselves with lime, glue, and mineral colors, such as ochre, ultramarine blue, etc. White lead and zinc oxide in a combination adapted to the climate and surface is commonly employed for exterior use. A white-lead base, colored or tinted with inert coloring gives good results in Cuba, and sometimes wears better than white lead alone.

For interior decoration paints possessing a high gloss are frequently used, although the use of flat oil paints seems to be increasing in popularity. The most popular colors for interior use are light blue, dark green, vermilion, buff, cream, and pink. The majority of the interior walls are untinted and of those that are, it is estimated that 25 per cent have an application of cold-water paint. and the balance oil paints, except for a small percentage of homes where wall paper is used.

Many of the house painters prefer to mix their own paints, as it gives them a chance to show their skill or taste and incidentally an opportunity to charge more for their own services.

Although the total import of paint materials increased considerably in recent years as compared with 1913, receipts of varnish are approximately the same, about 100,000 gallons annually. The demand is principally for floor varnish. There is also some trade in enamels, varnishes, stains, and wood fillers for interior trim and furnitures.

An outlet exists for automobile finishes among the owners of the 32,000 motor vehicles, which includes 8,000 trucks.

Industrial paints are an important item in the Cuban trade. The sugar mills are the principal buyers of this group. In addition to the steam railways of the island, there are street railways in several of the cities. There is also a company in Habana which has facilities for painting large vessels.

Paints for small boats, launches, etc., are sold by hardware merchants. These merchants also handle paints for roofs, barns, vehicles, bridges, etc., along with materials for household use. A specialty imported from the Netherlands is a material for glass lettering.

Before the reciprocity treaty went into effect between Cuba and the United States, English zinc oxide was used to a large extent in the Cuban market; in fact other forms of paints were hardly known and little used, but since that time the American white lead in oil and ready mixed paints have to a large extent replaced the English product. On account of climatic conditions a preference is manifest for a combination of white lead and zinc in oil, which it is claimed has far better wearing qualities than either of these ingredients used separately. Similarly a preference exists to a marked degree for English zinc-oxide paint on the ground that it will absorb more linseed oil, and consequently will go farther than the American product, and this is accentuated by the fact that it sells for less.

QUALITY OF PAINT USED

The element of price seems to be an important factor with the majority of buyers in Cuba. Although there is some demand for high-grade merchandise, the use of quality materials is increasing but slowly and will have to be stimulated by well-planned advertising and demonstrations designed specifically for this market.

The climate has no appreciable effect on paints while in the containers, unless kept in stock for an exceedingly long time. However, both oil paints and varnishes suffer when exposed to the sun and weather, and even some of the best grades of spar varnish do not withstand the climate as well as in northern sections of the United States. Paints for use on sugar estates are usually of a special quality for protection against moisture, acid fumes, extreme heat, atmospheric humidity, very heavy rains, and such other atmospheric conditions as exist in the environment of the sugar mills.

PACKING

The United States gallon is the recognized unit of measure, but the user of paints frequently does not get full gallons, unless he purchases in barrel lots. Prepared paints in tins are often packed for the Cuban market in 5 and 10 pound containers, the latter passing for a gallon and the former a half gallon. There is also a demand for paint in containers holding 20, 50, and 100 pounds for use on large jobs. Cold-water paints are sold in 100-pound kegs, 5-pound, and 2-pound packages. English zinc oxide is usually packed in 10, 20, 40, and 80 pound tins or iron containers. Varnishes are sold in gallon tins and fractions thereof.

There are no Government regulations concerning the composition or marking of paints and varnishes, but directions on the labels should be furnished in Spanish.

METHOD OF DISTRIBUTION

To obtain an adequate share of the trade of the island it is essential that careful consideration be given to the matter of representation. There are a number of methods of developing Cuban trade and the manufacturer must decide for himself the one that is best suited for his business policy and his line.

The custom of establishing a general agency at Habana, either as a direct factory branch or by contracting with an established firm, is a general practice in vogue for merchandising in Cuba and has been adopted by some paint manufacturers. The duty of such an agency is to arrange subagencies throughout the island and to secure orders from local dealers and important retailers. Such orders as well as those procured by the subagents are sent to the manufacturer and shipped and invoiced direct to the buyer. The general agent at Habana receives a commission from the manufacturer on all of the Cuban trade, which is divided with the subagent in the case of orders booked by the latter. There are disadvantages to this method, however, inasmuch as commission agents in the eastern portion of the island, as for example, Santiago de Cuba, are prone to become dissatisfied with the small commission. As much of the trade of the Provinces of Oriente and Camaguey is controlled by Santiago, it can be realized that unless there is an actual branch office of the Habana agency in Santiago the territory may frequently not be properly covered. In many instances it has been found that the small net results of a subagent working on a split-commission basis are not inducive to intensive sales efforts on his part. However, few of the Habana agents cover the entire island intensively with salesmen operating out of that city.

A review of the 1923 paint imports shows that 60 per cent of the total was received at Habana and 28 per cent at ports in Oriente and Camaguey. Trade with the latter is fostered because in certain cases experience has shown that shipments may be more economically consigned to those ports nearest the point of consumption. Considerable merchandise, however, is entered at Habana for shipment by rail to all parts of the Republic.

The distribution method outlined is particularly adapted for the sale of household paints and specialties that reach the consumer through the hardware stores. These stores, if not equipped to handle direct importations, buy from dealers in the port cities, who usually carry on a retail trade in conjunction with their wholesale business. The retailers cater to the house painters and interior decorators. who do practically all of the painting in Cuba. However, the property owner or employer frequently provides the paint, and pays the painter for the application. This method has been found advantageous, because of the tendency on the part of the craftsmen to use inferior materials on jobs handled on a contract basis, particularly for the prime coat.

Other merchants than those dealing in hardware are not likely to be interested in "shelf" paints, since there are no exclusive paint stores such as exist in the United States. An exception might be made in the case of some of the sugar mills that operate merchandising departments for the benefit of their employees and handle a wide variety of goods.

The sale of industrial paints deserves a more intensive study on the part of the manufacturer who desires to make a success of his line in Cuba. His field would include the following:

Sugar estates: For maintenance of buildings; enameling machinery, for molasses, syrup, and other storage tanks; and for their private rolling stock. Railroads: For rolling stock, stations, bridges, and equipment in general. Oil companies: For storage tanks, piping, etc.

Marine painters: For use on board ships, docks, barges, tugs, cranes, buoys, etc.

Architects, engineers, construction companies, etc.: Engaged in the construction of residences, office buildings, industrial plants, warehouses, etc. Institutions, public buildings, telephone and telegraph companies, etc. For general use.

An agent seeking trade in these lines would probably not be of the type who would handle the shelf trade, but more than likely have a sales organization already doing business with such consumers as are mentioned.

There are about 180 active sugar mills in Cuba, many of which are owned by American interests, and supplies are frequently purchased other than through local dealers and representatives. Manufacturers producing suitable materials might do well to cater direct to the administrators of the mills.

TERMS OF PAYMENT

The terms allowed to importers of ready-mixed paints and varnishes usually vary from 60 to 180 days, although 60 to 90 days may be considered the customary terms allowed by American firms. English suppliers usually grant terms of 90 to 180 days. Pigments are frequently sold with only 30 days' credit. American prices are generally quoted f. o. b. New York or other shipping port, and European firms often quote c. i. f. port of destination. In this connection it is of interest to know that merchants customarily desire c. i. f. quotations and will not purchase on a f. o. b. basis if avoidable.

ADVERTISING

There is no doubt but that a larger market could be developed in Cuba for American paints and varnishes by means of proper advertising. The methods in use at the present time are through the medium of newspapers, local magazines, and billboards. Posters furnished by the manufacturers are displayed in the stores, and color cards are supplied to inquirers. It will be found decidedly advantageous to win the support of interior decorators and house painters through the medium of instructive but brief semitechnical literature printed in Spanish. A wider circulation of American trade journals, as well as occasional advertisements in the Cuban daily papers should promote the sale of American paints in general, and of the brands advertised in particular.

A list of advertising media in Cuba, containing the names of publications, circulation, class of readers, and other data is available to properly qualified American firms upon application to the Bureau of Foreign and Domestic Commerce, Washington, D. C., or any district or cooperative office. Refer to specialties division AD-31.

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