Box 1, Folder 71 – General Speeches
January 5, 1966 – Talk to New Marketing MBAs, Palo Alto, CA
1/5/66, Brief notes for talk, handwritten by Hewlett Packard
Speaking about the problems associated with the assimilation of the sales representatives, Hewlett talks about stress saying it means a challenge, means an opportunity.
“A great opportunity for you to contribute to and help in the working of these problems. I hope that you find this interesting and challenging.”
12/23/65, Copy of a memo from Len Gibson to Bill Hewlett inviting him and his wife to a dinner affair.
12/27/65, Copy of a memo from Len Gibson (no addressee) listing the attendees with brief biographical facts.
Box 1, Folder 72 – General Speeches
January 12-15, 1966 – HP Management Conference, Monterey, CA
1/12/66, Folder contains many papers and notes of data for discussion
Box 1, Folder 73 – General Speeches
February 14-17, 1966 – Northwestern Medical Association Annual Meeting, Sun Valley, ID
2/14/66, Copy of program for the meeting. Hewlett appears to have been only an attendee, along with enjoying the skiing. The folder contains a rather erudite paper written by “Ken” which discusses Hewlett’s ski boots and the bindings for his skies, giving precise changes in the length of these resulting from changes in temperature.
Box 1, Folder 74 – General Speeches
February 24, 1966 – New Employee Indoctrination Seminar, Palo Alto, CA
2/24/66, Outline of remarks, handwritten by Hewlett on notebook paper.
Speaking to a group of new sales representatives, Hewlett discusses some sales techniques and emphasizes the changes underway from a small to a big organization. He says their education will be continuing – as is his to this day. He says “[Management] is going to be looking for people with real ability and leadership which in a decentralized organization is our most critical commodity.”
2/15/66, Copy of a memo from George Stanley to Bill Hewlett, giving some background information for his remarks to the seminar group.
Box 1, Folder 75 – General Speeches
March, 1966 – HP Board Meeting, New York, NY
3/66, Several pages of topics, facts and data, handwritten by Hewlett on notebook paper
Box 1, Folder 76 – General Speeches
March 15, 1966 – Talk To National Accountants Association, Palo Alto, CA
3/15/66, Outline of remarks handwritten by Hewlett on notebook paper.
Hewlett discusses HP problems in building international markets. He describes the changes starting in 1959 with HP headquarters in Geneva and a small manufacturing plant in Germany, talks about foreign governments, as well as the U.S Government. Among his concluding points he says:
“Need to be willing to adapt
Must maintain ethical standards
Need professional management
Much effort – much to be gained”
3/17/66, Letter to Hewlett from W. J. Massey thanking him for speaking to their group
3/30/66, Copy of a letter from Hewlett to W. J. Massey thanking him for the “attractive sterling pen knife.”
Box 1, Folder 77 – General Speeches
May, 1966 – Talk to YHP Sales Group
5/66, On two small pieces of paper Hewlett lists some items he intends to cover – in pencil, difficult to read
Box 1, Folder 78 – General Speeches
May, 1966 – Turkey Revisited
5/66, Copy of typewritten report of Hewlett’s second trip to Turkey. Hewlett’s first visit to Turkey was made in September/October, 1965, and his report on that trip is summarized in the speech file dated November 8, 1965. He revisited Turkey in May, 1966, and wrote another report which he considered a supplement to the first. A Summary of this second visit report follows.
POLITICAL CHANGES AND ENVIRONMENT
As predicted the Justice Party won a substantial victory in the elections last fall. The Republican Peoples Party, headed by Inonu, one of Ataturk’s old Generals was out. The leader of the Justice Party is Suleman Demirel, and he will be the new Prime Minister.
Hewlett also reports that there has been a change of President in the country as well. General Sunay was elected to replace General Gursel and is supposed to represent the politically “hands-off” faction of the Army.
The Demirel Administration
The Demeril Government has introduced two controversial bills. The first changes election rules which would make it harder for smaller opposition groups to return to power, and the second provides for a general amnesty which would free some remaining political prisoners.
Visit with Minister Demirel
Hewlett, along with the Ambassador Hart, met with the Prime Minister, and he reports on several subjects they discussed – such as Turkey’s State enterprises, high import duties, encouraging foreign investment, sources of capital for private enterprises, and agriculture.
STATE ECONOMIC ENTERPRISES
Hewlett, accompanied by Deputy U.S. AID Minister Wagner, talked with the Minister of Energy, a Mr. Deriner, who oversees the Turkish Coal Industry, and with Mr. Behzat Firuz, Manager of the Turkish Coal Industry, a SEE. The coal operation runs a high deficit and Firuz said the subject of higher prices was extremely sensitive. Hewlett quotes Firuz as saying he was not in favor of SEE operations and would be happy to see them abolished. Hewlett says Mr. Firuz “was the most superior person I have come across in a State-owned enterprise.”
The Turkish Forest Service has shown no great signs of being willing to cooperate with private industry in the development of their forest preserves. Turkey has a fine stand of suitable pulp wood trees, and as there is a continuing need for pulp, Hewlett says this area would be ideal for the development of a sustained yield demonstration project.
The State Petroleum Industry is pushing its plans to produce PVC despite the fact that there is a Turkish company ready, willing and able to take on this production with the assistance of a U.S. firm, Dow Chemical.
Hewlett concludes with some examples of inefficiencies in various State owned operations and makes it clear he does not have great respect for the Turkish SEE system.
THE PRIVATE SECTOR
Hewlett says it does appear that aggressive and imaginative people can carve out an effective place for themselves in the private sector and he talks about one such person, Orhan Sertel. Mr. Sertel owns a fleet of trucks which have been used to haul oil from central Turkey to a Mediterranean port. A pipeline will soon eliminate the need for these trucks and Sertel has started a new fleet of refrigerated trucks to haul fruit and vegetables to Europe. This project appears to have great potential to earn much needed foreign exchange for Turkey if additional transportation equipment can be obtained. But there is a 100 % import duty on such equipment, so a given investment will buy only half as much equipment as it could with no duty. Hewlett says he pointed this example out to Prime Minister Demirel.
Hewlett met with one of Turkey’s principal industrialists, a Mr. Nejet Eczasabasi, President of Eczasabasi Pharmaceuticals. Mr. Eczasabasi has obtained license agreements with foreign manufacturers to allow him to produce their products in Turkey. He appears to have prospered in this tightly regulated field. As an example he took on the Ipana toothpaste line and now has 74% of the toothpaste business in turkey. Hewlett says Mr. Eczsabasi is typical of some of the successful larger entrepreneurs in Turkey in that he is concerned as to how he can hold all of his operations within his family. He sees little need for the development of a capital market in Turkey.
Hewlett had lunch one day with Mr. Sehap Kocatopcu who is the President of Pesabache Glass company, which makes flat glass and stemware. Hewlett says Mr. Kocatopcu told an interesting story of their relationship with the Russians who were trying to penetrate the glass industry in Turkey – with political objectives in mind.
Hewlett describes two trouble spots involving oil and steel. He spoke with William Fricker of the Mobile Oil Company who was very unhappy with the Turkish Government for having imposed a 40 cents per barrel tax on refined petroleum and will not allow this tax to be passed on to consumers. The net effect will be to cause these refineries to operate in the red. Hewlett feels this is such a flagrant case of persecution of the oil industry that they will probably be able to obtain some relief.
Hewlett found the Eregli Steel still in trouble with an improper capital structure and the costs of raw materials way out of line. Mr. Danis Koper, Chairman of the steel mill says they hope for a rollover of financing charges and expansion of their facilities. AID has obtained the services of a team of experts to make a survey of the overall situation. This is a serious situation because this mill is the largest AID undertaken and stands as a symbol of American prestige in Turkey. Hewlett says its failure would be a most serious blow not only to American prestige in Turkey, but in most of the developing nations of the world.
Hewlett visited representatives of three classes of banks – the Is Bank which is a quasi-governmental bank, the Guarantee Bank which is strictly a private bank, and the Industrial Development which was established for this purpose.
Hewlett met with Mr. Bulent Yazici, the Manager of the Is Bank. Their conversation centered around the availability of funds to support a capital market. He, along with others, was not enthusiastic about the proposal to seek investment funds from Turkish workers in Germany [who evidently save money in Germany over and above what they send home to their families in Turkey.]
Yazici pointed out that in developing countries like Turkey, it is unreasonable to assume that a shareholder will be willing to invest, or even should invest, in an untried company through public subscription. Some intermediate financial organization is required that will back a new company during the initial critical years. This financial organization should be able and willing to sell its interest in this corporation to the public.
Hewlett talked with Resid Egeli, of the Industrial Development Bank, and his principal assistant, Bahaeddin Kayalioglu. Egeli echoed many of the views of Yazici, who is not only Manager of the Is Bank, but is also Chairman of the Industrial Development Bank. Mr. Egeli pointed out the desirability of legislation that would facilitate the development of the capital market. Although there is a bourse in Istanbul, a review of the daily transactions showed that most of the stocks had not been traded for many weeks or months. The U.S. Rubber issue was an obvious exception to this rule.
Hewlett says it was not clear whether Egeli was meeting the full obligations of a development bank. There was some indication that he might be charging excessively high interest rates, and that he might not be rolling over his equity positions in successful companies early enough – preferring to hold them for their gains.
At the Guarantee Bank Hewlett met with President Cabir Selek, who had provided a great deal of information about the “unfair competitive tactics” of the SEE. Mr. Selek seemed to be meeting the challenges posed by the SEE rather successfully. Selek was concerned about the drying up of program loans for Turkey which have been an important source of foreign exchange.
Hewlett met with two of the agricultural specialists in the AID office in Ankara. One project which had impressed Hewlett on his previous trip had been the Agricultural controlled Credit Bank program at Denizli. Apparently this project is still prospering and has prompted the Turkish Government to try and establish similar projects in other parts of the country.
Turkey still appears to have a lack of adequate agricultural programs at the universities and an associated extension program. The new university at Ergurum may permit some progress to be made in this direction. Turkey is in urgent need of an effective seed development program and is most anxious to get an expert from the Rockefeller Foundation to help on this problem.
On his first trip Hewlett was pessimistic about the prospect for tourism in Turkey. However, this time he says he sees tourism on the increase, primarily from Europe. Hotel accommodations are improving with a new hotel in Ankara under Swiss management.
The only educational institution Hewlett visited during his second trip was Robert College in Instanbul. He says this is a fine institution founded by American funds many years ago. It has had influence all out of proportion to its size in Turkey due to the caliber of the people that it has educated and the quality of its educational content. The college has an enrollment of about 820 students – about 80% men. The engineering faculty is reported to be one of the most distinguished in Turkey and is currently planning to expand into the important field of sanitary engineering. It has two campus locations. The principal one overlooking Bosphorus and adjacent to the old Turkish Fort built in preparation for the final attack on Constantinlple, circa 1453, is absolutely magnificent.
However, the school is under heavy regulation and is having rather severe financial difficulties. It has an endowment of about 15 million dollars which is managed in the U.S. and has a budget of 1.5 million dollars annually. During the last few years AID has furnished about two million dollars annually in support for the college.
Restrictive regulations are also a burden. Certain courses must be taught in Turkish, regulations control faculty appointments and advancement, and importantly, the amount that may be charged for tuition and expenses.
Contrary to his first visit when he did not come across any particular anti-American sentiments, Hewlett says that during his last trip he sensed some anti-American feelings and learned about some others.
A serious example was a reported discussion between representatives of Mobil Oil and the Minister of Finance, Ihsan Gursan. William Fricker the top American at Mobil (and interestingly enough related to the Minister of Finance), had a meeting with the Minister to discuss some mutual problems. At one point the Minister expressed an intense dislike for Americans – said that Americans had Turkey on a stake – and other uncomplimentary comments. All this is particularly interesting because the Minister of Finance is the primary contact between the U.S. AID and the Turkish Government. And it may explain why programs that have gone through the Minister of Finance have tended to drag at times.
Hewlett concludes his report with a statement of high regard for the quality of people that are working in the AID Mission in Turkey. He says “I am not talking just about the top one or two but some very dedicated and competent people at the second and third tier level. I could only admire the skill with which critical problems …were handled by the top people.”
Box 1, Folder 79 – General Speeches
June 6, 1966 – Engineering Meeting, Colorado Springs
6/6/66, One small piece of paper upon which Hewlett has written some points he wishes to cover
Apparently referring to products, he speaks of the problem of “how to catch up.” “Cannot go across the board – must rifle shoot. While guarding rear must move ahead.” Says impressed with 180.
Box 1, Folder 80 – General Speeches
June 7, 1966 – Loveland Engineering Management Meeting
6/7/66, Two “steno book” pages of Hewlett’s handwritten notes of data and ideas for his remarks
Box 1, Folder 81 – General Speeches
June 8, 1966 – Engineering Meeting, Location not given
6/8/66, Page of notes handwritten by Hewlett
Hewlett’s notes bear on the role of management and the role of headquarters
Box 1, Folder 82 – General Speeches
June 30, 1966 – Microwave Division Dinner, Palo Alto, CA
6/30/66, A page of notes handwritten by Hewlett
In talking to engineers about what makes for good engineering, Hewlett says: “I speak for bold ideas, unwillingness to accept old cliches . I speak for pushing your ideas – don’t take no for a manager. I speak for listening, for being willing to take the risk based on good analysis, i.e., for being a good manager in a decentralized company.”
Box 1, Folder 83 – General Speeches
July 27 and August 31, 1966 – Meetings with Westwood Oaks Home Owners’ Association, Santa Clara, CA
7/27/66, Apparently this Association had some reservations about HP building the Santa Clara plant, and this meeting was to permit an exchange of concerns and pros and cons. Hewlett’s notes are one page typewritten, and one handwritten page.
Hewlett’s written note says that he asked his wife what she would think about such a plant. He writes that she expressed concern about smoke, noise, acres of parking, traffic, and loss of property values. He concludes that “With this kind of introduction I thought I should tell you about HP as a company, and what its plans would be if it came here.”
From the typewritten points he lists such topics as what HP does, what it makes; who the customers are. He says HP does not make things for the government. He covers the typical division departments, and closes with telling why HP finds the Santa Clara site attractive, e.g., intellectual atmosphere, attractive place to live, climate, competent labor force.
8/321/66, Copy of a letter to David Kirby from Mrs. Jan Jeensby, of the Home Owners Association discussing the place for the meeting.
Undated, Memo, unaddressed, listing the people who are likely to be at the meeting along with an assessment as to whether they are pro or anti HP.
Box 1, Folder 84 – General Speeches
August 31, 1966 – Talk to Summer Engineering Students, Palo Alto, CA
8/31/66, Hewlett’s handwritten notes on the back of a site map
Hewlett says that HP still has the problem of how to market a more diverse line of product. Must move into [adjacent?] fields if continue to have new horizons. HP must use [care] in selecting new fields – must have some tie, must have good potential, must be able to make a contribution.
8/26/66, Memo to Bill Hewlett from Norm Williams discussing arrangements for a breakfast meeting with summer students. Attachments list names of students
Box 1, Folder 85 – General Speeches
September 22, 1966 – Dedication of HP Ltd. Scotland plant
9/22/66, Four pages of notes handwritten by Hewlett
Hewlett speaks of the short time of only 16 months since he attended the groundbreaking for this plant.
Hewlett says he would like to mention some of the HP policies on foreign operations.
- “This is a British firm – although owned by an American company, guided by British law
- British management –one American
- Half of the Board is British
- Allow to adapt to local environment”
He talks about the importance of locating near a university and cites the Edinburgh U. as an example.
Other factors guiding the selection of a plant site Hewlett says are people, housing, adequate utilities.
He closes saying “I hope that we can be a credit to this community that has done so much for us.”
9/22/66, Two pages of notes handwritten by Hewlett which appear to be an earlier outline of points he wanted to cover.
Box 1, Folder 86 – General Speeches
November 3, 1966 – New Sales Engineers Indoctrination, Palo Alto, CA
11/3/66, The folder contains no notes for Hewlett’s remarks.
10/19/66, Memo from George Stanley to Hewlett listing some social functions he may wish to attend
11/2/66, Memo from George Stanley to Hewlett giving him some background on what other managers have already said to the group
Box 1, Folder 87 – General Speeches
December, 1966 – YHP Shareholders’ Meeting, Japan
12/66, Notes for talk, written by Hewlett on back of program for Marketing Banquet, Sunday, December 4, 1966. Hewlett says he is sorry he has not been able to meet with each person – got too interested in talking about problems.
Reviewing results for the year, Hewlett says it has been a good year: orders up 27%, shipments up 24% to 203M, profits up 24%.
Hewlett says the YHP record is “most impressive, the first time in the black… a credit to Shojo, George and the whole team.
“A great job”
12/66, Several pages of notes written by Hewlett and headed “Review Results”
Talking about management he says he does not think Shojo is happy in management job, doesn’t like to make decisions, better in staff job. Now is a good time to make changes – after a successful year. He favors Katagami as a replacement – “But he would need help.”
Hewlett concludes his notes with a section headed, “Possible framework in which Katagami could operate.
- Shojo to remain as president but be appointed Chairman of the Board
- Modify by-laws permitting delegation of management to General Manager
- Appoint Katagami to this position
- George to give up VP position, but remain as director
- Board appoint Executive Committee with Shojo and George meeting weekly. This would allow Shojo to spend more time at YEW and George more in planning and staff work.”
12/13/66, Copy of a letter from Hewlett to Richard Wheeler of the First National Bank in Tokyo, thanking him for arranging a breakfast to meet local people.
11/66, Statement of YHP earnings for the month of November
11/66, Note with typewritten figures on Order Records
Box 1, Folder 88 – General Speeches
December, 1966, Service Awards Luncheon, Palo Alto, CA
12/66, Several pages with typewritten listing the names of employees receiving awards and the number of years – from 5 to 25 years.
On a copy of this list Hewlett has written a few notes of comments he wanted to say.
He says we have just announced the best year in the history of the company. “Looking back,” he says, “it is the ideas that were generated in early years of the Company that were worked out by you and with you – Perspectives in Europe and Japan – things so obvious now, but not then. So, in handing out these awards they are not for ‘time spent,’ but for ‘contributions made,’ We are all deeply indebted to you all.”
Box 1, Folder 89 – General Speeches
December 15-17, 1966 – Business International Chief Executive Roundtable, Bermuda
Hewlett was a member of discussion panels at this conference, but did not present a speech.
6/22/66, Memo from Bill Doolittle to Hewlett telling him of the Business International roundtable and asking if he is interested in going.
7/12/66, Letter to Hewlett from Eldridge Haynes, President of Business International, inviting him to attend the roundtable meeting in December; a meeting agenda is attached
8/1/66, Copy of a registration form completed by Hewlett
8/8/66, Letter to Hewlett from Carol Kirschenbaum of BI acknowledging receipt of his $400 registration fee.
10/19/66, Letter to Hewlett from Eldridge Haynes they enjoyed meeting with him and look forward to seeing him in Bermuda. He asks that Hewlett return an enclosed panel signup sheet. Also enclosed is a list of company clients of BI services
12/1/66, Copy of a letter from BI to Roundtable participants giving information on activities
12/12/66, Copy of typewritten travel schedule for Hewlett
12/15/66, Copy of sheet giving biographical information for major panel leaders