Evening star., 1921-05-15
LIFE OF FEDERATION
RESTS ON u. S. FAVOR
Believed That Central American Union
Is Doomed to Failure Unless Given
Friendly Support of This Country.

ing forward 70 an era of ex-
ceptional mutual benefits through
our working together in a spirit of
mutual trust"
With oil operators Of the United
States and Great Britain jockeying
for advantage in Central and South
America, the present year and the
immediate future probably Will see
tremendous oil activities in these
countries according to J. W. Thomp-
son. law examiner of the bureau OF
mines, who has completed an ex-
haustive statement regarding the oil
resources OF Central and South Amer
lea. Because of their convenient loca-
ton for distribution of petroleum by
fuel for shipping and industrial con-
Germs. 1t is fortunate for the world
that productive fields are located in
the southern republics.
The added uses and increasing de-
mand for the various forms of oil
render 1t Imperative. according to
Mr.. thompson; that the present pro-
duction be increased. for in a COM
paratively short time the present
producing fields must be exhausted.
The oilsproduction in Venezuela and
Colombia. with possibilities in Brazil,
Peru and Central America. may be
greater in quantity than that of Mex
leo. and superior in quality. Mr..
Thompson believes.
The oil markets of the western
coast of South America have already
| derived a great benefit from the
| Panama canal. as the seaports Of this
rect ocean shipment with the Atlantic
coast of the United States and with
| European countries.
The chief deterrent to oil pro-
/ duction in the southern countries"
Mr.. Thompson states in his report.
/ nic tho n nf inIa nd
facilities, but the keen insight and
| wide experience of the managers OF
the great countries now interested
| and operating in these regions will.
as production increases, provide pipe
| line transportation sufficient to con-
J vey to the coast the oil produced
| and they will erect and equip re-
fineries at shipping points that Will
! make these petroleum products ac-
cessible to the commercial world"
! Mr.. Thompsons report shows that
| oil has been known to exist for years
! and is now under various stages OF
exploitation in Argentina, Bolivia.
Brazil Chile. Colombia, Ecuador Peru
Costa Rica. Guatemala and Salvador.
contain oil fields now under operation
| in varying degrees.
| The International Petroleum Com
! Ddny, a SuDSluldTy u Inc
! Oil Company, has secured between
two and three million acres of land
| along the Magdalena river. in Colom-
: bia, from the Tropical OIL Company:
There is in preparation there one OF
the largest refineries IN the wortS'
! will be contructed within a short.
| time at a cost. of s25.000.0o0. Three
large wells are already producing oil
in quantity.
| Mutual ignorance of the language
and methods of American and South
American merchants is great naha.
cap in the way of trade development
between the United States and the
southern republics. according TO Or.
Julio Bianchi, minister of Guatemala
to the United States. DR.. Bianci wouio
solve the first difficulty by the estap-
Ilishment of a society to promote the
study of Spanish in the United States
land the study of English in Latin
America AS solution of the second
handicap, DR.. Bianchi believes tnae
American exporters should send men
to South America solely to study the
South American viewpoint, whiie
Latin American merchants should
send men to the United States to learn
at first hand American trade methods,
X
Paraguay's economic situation con-
tinues to be very serious. according 10
reports received by the Department
! of Commerce. The markets for hides
and tobacco, which are the chief prod
ucts Of the country. are extremely
dull, no price quotations being made
at present. AS result of this con-
dition it has been necessary for the
government to restrict imports. and
the domestic and foreign commerce
of the country is practically at
standstill. There has resulted great
| loss in the revenues of the govern
ment, which depends on commerce for
most Of its revenue.