Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-07-19

"A issusd a statement suggesting
a the possibility of an economic
union of the American republics.
Strongly indorsing the idea OF customs
unions in the Western Hemisphere, ne
said:
Present conditions prove the para
mount Importance OF american
economic cooperation IN employing,
with mutual advantage, our own pro-
ductive forces. The great depression Of
world business is destructive to our vi
tally because we lack means of collec-
tive defense and because We eggravate
the internationally troubled situation
with local barriers which our ancestors
llau already considered contrary to the
1uCme welfare of the American con-
Llucnt."
soon afterward, probably encouraged
by the favorable reception his trial
balloon" met with in most of the Latin
American capitals, the Chilean foreign
minister sent out note TO the govern
ments of all those countries inviting
them to an international conference for
economic relief
Such conference as mentioned
before in these columns. is supposed to
deal with the critical economic prob
lens at present confronting nearly every
one of the Latin republics, with the
tariff arrangements which stand in the
way of closer commercial interchange,
and with the difficulties some of the
neighboring countries are encountering
In trying to meet their foreign financial
obligations.
Question Widely Discussed.
Ever since the first communique from
the Chilean foreign Office was carried
by the wires to the front pages of influ-
entail newspapers in the continent,
tafa rjoli en- hot h ed
of the Rio Grande have been discussing
g, the odds and probable advantages Of
regional economic pacts. Such interest
Fhas naturally been increased with the
y pfacial call for a Latin American eco
4 pomic conference which would be held
9 b one of the Southern capitals next
September. The more SO when this
3 conference would precede by only a
"a month the general Fourth Pan-Ameri-
4 ek Washington by the PanAmerican
e Union.
" The idea Of regional economic unions
I hmong countries of the New World was
= drst mentioned some 20 years ago by
u the noted Argentine statistician, Alejan-
! dro E. Bunge. His project OF a South
>, ern Customs Union, including five Latin
American republics, was further devel-
pped by the Chilean economists, Elio-
It Is this project, undoubtedly. which
gave the Chilean government the basis
for its recent suggestion OF a Latin
American economic union.
Senior Bunge's plan involved the re-
publics of Argentina. Chile. Bolivia
Paraguay and Uruguay. These five
countries together have an area of
6.o15, 900 square kilometers and a popu-
lation of 21,560,000. AS geographic
unity they could be we'll compared with
the United States or United Europe
as proposed by M. BRAND. They pos
sess a greater length and therefore
greater variety of climates, which means
q greater variety of production. There
Is no raw material of any importance.
according to Senior Bunge, which is not
or cannot be produced within the terri
torial area formed by the five mentioned
countries.
Vast Food Possibilities.
The various regions of this proposed
Southern Economic Union would COM
plement each other perfectly The fer
tile Argentine and Uruguayan pampaS
could produce food for a population of
more than 10o,Oo0,ooo inhabitants; the
mineral deposits of the Andes and b.
livian altiplano are almost inexhaust-
ible; the cold products Of the Pata-
gonia region and TERRA del Fuego are
numerous. and so are the valuable prod
ucts which could be raised on a large
scale in the torrid zone of Bolivia and
Paraguay.
Not only would this union Of the five
Southern republics solve the problem of
iron and fuel supply for them-the
second one in a complete way, for 1t
includes, besides coal, oil and water
power in abundance-but it would place
them in a privileged position with re-
spect to the rest of the world, with AL
most a monopoly of several raw ma
terials essential to world economies
The Southern Economic Union would
possess one third of the worlds flax
seed, one-half of the worlds corn, 80
per cent of the worlds wheat. % per
cent of the tin and II per cent OF the
copper, 40 per cent of the worlds
drugs. the third largest livestock in the
world, a gold stock only inferior to
those of the United States and France
and so on.
If these figures relate to a proposed
union of only the five southernmost
easily visualiZed what an economic
union of all the countries south OF the
Rio Grande would amount to. OF
course. the rest of the nations OF the
continent are so widely separated by
geographic, economic and polltlcal par
Tiers that such union must stlli De
considered in the realm of utopias, but,
nevertheless. the idea has already been
offcially suggested by the Chilean gov
eminent.
Three Important Factors.
Three factors may be mentioned as
bringing about this revival Of the GUS
toms ms union principle in Latin Amer
lea. In order of occurrence they may
be explained as follows: The suggestions
of economic unions in Europe and In
the British empire: the passage OF high
protective tariffs by the United States
and other American republics, ana the