Monday, Nov. 17, 1952

Fourth Industry

When reveille sounds at any of the four major U.S. Air Force bases in Newfoundland these dark winter mornings, the G.I. hits the deck of a barracks built of local materials by local labor. He breakfasts on food bought in Newfoundland, and turns to on a work detail with tools and equipment supplied by local merchants. Taking a break, he eats a candy bar or sips a Coke which the PX has bought in the province. After hours, he catches a local bus, takes his local girl to a local movie, and buys her coffee and doughnuts or beer at a local snackbar or tavern. Housing, feeding and entertaining American G.I.s has become Newfoundland's fourth largest industry--after fisheries, forestry and mining--with an annual income well over $10 million.

Employment of Newfoundlanders at U.S. bases totals 3,500. They are being paid at the rate of $9,000,000 a year, which equals the payroll of the entire mining industry in the province. The U.S. will make some $2,500,000 worth of local purchases in the coming year, plus another $500,000 worth of PX supplies. Such incidentals as a $100,000 charter fee for a motor vessel to transport island supplies, almost $87,000 rental paid by off-base servicemen and $16,000 tuition to local schools attended by children of military personnel, help to give the economy a powerful shot in the arm.

Last week the U.S.A.F.'s Northeast Air Command opened a procurement office in St. John's Water Street. It had a list of Newfoundland firms ready to provide anything from Alka Seltzer to zwieback. In its first week the new office placed $17,340 worth of orders and signed a contract for a month's ration of bread. Newfoundland merchants beamed. The Yanks were bringing boom times, and the end was nowhere in sight.

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