Evening star., 1933-06-25
THREAT OF TRADE WAR
AROUSES LATIN AMERICA
Preliminary Moves Made Tor Sell
sufficieney if London Conference
! Collapses. A.

Soon afterward. probably encour-
aged by the favorable reception his
trial balloon" met in most of the
Latin American capitals, the Chilean
foreign minister sent a note to the gov
ernments of all Latin American repub-
lies, inviting them to an international
conference for economic relief. The
conference was expected to deal with
number of current economic problems
affecting the southern nations its chief
object being the study of regional Gus
toms arrangements among them and.
eventually, the formation of q Latin
American trade union.
Before plans for the conference
could be perfected, however. the Ibanez
government, with which Senor Planet
was collaborating, fell the victim of an
armed revolt, and the ensuing period
of political turmoil In Chile shelved the
project indefinitely.
The Planet proposal. nevertheless,
gave occasion to lengthy discussions on
the possibilities Of Latin American eco
nomic pacts by the press and the pub
lie officials Of the interested countries.
Outstanding among these discussions
was the revival Of the well-known
union, including Argentina, Chile. Bo-
livia, Paraguay and Uruguay, which, In
the opinion of this author. would give
rise to an economic entity with a
variety of production hardly matched
in the world. d,
The method advised by Senor Bunge
would be: (a) standard customs
tariff for the five nations among them
selves with respect to outside coun-
tries; -tb) a gradual reduction of 20
per cent yearly in customs duties
thn Rv,a hat or fhn
end of four years the duties on prod
ucts from the countries forming the
union would disappear; and Co dura-
ton Of the agreement for period Of
20 years, at the end of which it may
be renewed. 4.
Reaction to U. S. Tariff.
Last year, when the highly protective
duties on oil and copper were passed
by the Congress of the United States,
a Peruvian Congressman introduced
resolution in the Camara de Diputados
directing the Lima government to call
a conference of Latin American states
for the establishment Of Latin
American customs union.
Not long after that, movement for
bilateral trade agreements began, al
most simultaneously, in Argentina, Bra
Nl and Chile. One Of the first acts
of President Alessandri of Chile, after
being inaugurated In office last De-.
cember, was his announcement that
he would continue the efforts of pre-
vious Chilean governments for the con-
stitution of South American eco
nomic bloc
The pronouncement had hardly left
the Palacio de la Moneda when official
spokesmen for the governments of
Argentina, Brazil and Uruguay indorsed
the idea. Conversations began almost
Immediately between the Argentine and
Chilean ministers Of foreign affairs and
finance. A few weeks later, in the
conferences Of Mendoza the founda-.
tions for a reciprocal trade pact be-
tween the two southernmost Latin
republics were laid. And only a few
days ago, on the thirty-frst ami
versary Of the conclusion Of their
boundary treaty, which In 1902 pre-,
vented war between the two countries, |,
Argentina and Chile signed a trade
treaty expected to end permanently the
been engaged since the beginning or
the depression.
Basis Of Union Seen.
The pact has been signed, according
to cable reports, with the joint under =
standing, in writing, that it could serve
as the basis of a continental union for
economic purposes. Foreign Minister
CTuchaga Of Chile stated: I'VE hope
that the pact between Chile and
Argentina will serve as stimulant and
Inspiration to the rest of the conti-
nent." The day following the conclu-~
sion Of the treaty .he Chilean Associa-.
ton Of Retailers and Industrial Manu-.
facturers announced that 1t would give
its whole-hearted support to any plan
for South American customs union !.
In the meantime, the idea has found.
another enthusiastic and active advo-
cate in Brazil, where Minister Of
Finance Aranha is completing arrange.
ments for series of conferences with.
Argentine officials which may eventuate
in Brazilian -Argentinian agreement
similar to that just signed between
Chile and Argentina It Is suggested. !.
that the matter may be the subject of.
special interview between the chief
executives of the two countries, Gen.
Vargas and Gen. Justo.
II London fails, then, and economic
nationafsm breaks loose thrpuehout
the world, the alternative win not find
Latin America completely unprepared.- :.