Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-07
LATIN AMERICA FAVORS
UNIONS TO END DEPRESSION
Interesting Developments Along Lines OF
International Cooperation Looked
for at Washington Conference.

tive" tariff instead Of a protective one.
The case OF linseed, according TO thu
Ambassador, gives the best example.
The tariff on Argentine linseed has
been revised 20 times upward, and yet
the United States produces less hnseed
now than she did in 1921, when the
tariff was one-third as high.
Results in Reduced Exports.
In the course of his remarks Ambas-
Sador Malbran said that although Ar
gentina has in recent years been one Of
the best markets for United States man
ufactured products, the serious harm
caused to Argentine commerce by high
customs duties in American ports has
already resulted in a considerable de-
crease In the totals of exports from the
United States to the South American
republics. Besides, he mentioned the
possibility that Argentina may be COM
PEELED to embark on high tariff policy
to defend herself against the tariff walls
Of the United States and other nations
To prevent an international tariff
war and to help the world out Of this
tremendous economic depression, AM
bassador Malbran advocated the elir1i-
nation Of dangerously high customs
duties.
In denouncing high protective tariff
walls Ambassador Maibran was only
interpreting sentiment popular
throughout Latin America. Particularly
In these critical days, Latin American
statesmen seem to have come to the
conclusion that only the gradual reduc-
ton Of import duties among them may
compensate for the losses that economic
agents of an almost indef1nable char
acter have wrought.
Suggest Economic Unions.
They have gone even further They
are suggesting now international agree
ments to form economic unions or tariff
unions, by means Of which the products
Of one country would have free entrance
TO all those participating in the union.
Not long ago, in commenting on the
opening of the conference Of the Inter
national Chamber of Commerce in
Washington, mentioned briefly some
of the recent and most important
moves toward economic unions in Latin
America.
Among these the plan offered by the
prominent Argentine economist, Alfredo
Bunge, for the tariff union of Argen-
tina, Uruguay, Paraguay Chile and b.
livia, is most interesting The agree.
ment would provide for an annual re-
duction Of 20 per cent in tariffs, put
ting the five republics on a free-trade
basis in five years. These five repub-
lies, comprising some 5000 900 square
ktlometers, have a population of more
than 21,000,000 people, and their wealth
Is estimated at more than 10000 0o0,-
600. United, they would possess one
third OF the worlds flaxseed, 81 per
cent OF its corn and 80 per cent of its
wheat.
Chile Favors Union.
Since my article was written men
tioning the plans suggested by Bunge,
Ferrara, Varona and others for eco
nomic unions in Latin America, q new
development, and an important one, has
taken place. The Chilean foreign min
lister, Senior Antonio Planet, has issued
a public statement to the press of the
continent indorsing the idea of customs
unions in that part of the world.
Senior Planets statement, coming
from high government Official of one
of the leading South American re-
publics, carries, Of course, especial sig
nificance. Besides, it acquires further
Importance in view of the proximity of
the next Pan-American Commercial
Conference, in which the Chilean gov
eminent will be represented.
Present conditions" says Senior
Planet, prove the paramount tmpors
lance Of inter-Amer1can economic CO..
operation In employing, with mutual
advantage, our own productive forces.
The great depression Of world business
is destructive to our vitality, because
we lack means of collective defense,
and because we aggravate the interna.
tionally troubled situation with local
barriers which our ancestors had ai-
ready considered contrary to the futurS
welfare of the American continent"
In another part of his official conn
munique Senior Planet makes this ire
teresting statement: "If thought IS
given to the social order, which is ths
basis of nations, we cannot fail to rec
ognize that the working classes aspire
in the American continent to greateg
welfare, the attainment of which Is
possible only by encouraging the free
circulation of wealth across the froPe
tiers
All Of which seems to indicate that
Latin America is turning more and
more to international cooperation tor
the solution of her economic troubles.
Interesting developments along these
lines may be expected in the forthcon1s
ing Pan-American Commercial Confer.
ence, when the delegates of the 81 Ter
publics of the New World will sit vo-
gether in the Hall of the Americas %
the Pan-American Building at Was1O
ington.
(Copyright, 1917