Evening star., 1933-06-25

where are agreed that the alter
native to success Of the London
~ Conference lies, for the leading
commercial powers, in the launch
ing of a movement of economic ma
tionaliSm heretofore uneQualed in its
magnitude and severity.
But for the Latin American nations
the alternative is quite a different one.
Editorial reports gathered from the
Latin American press reveal the exist
ence of a strong sentiment in some of
the principal southern capitals for the
conclusion of regional customs unions
or, at least, a series of bilateral trade
arrangements among the Latin Ameri-
can countries in case of failure Of
world agreement at London.
It could not be otherwise. Only the
major industrial powers-the very few
chosen" ones, physically speaking
could afford to embark in a painful and
nomic nationalism. The Latin Ameri-
can countries are far. very far, from
economic self -sufficiency. They are,
chiefly, agricultural countries and pro-
ducers Of raw materials which they
must exchange abroad for other neces-
sites they do not possess and for manu-
factured articles. In most cases they
have specialized In one or two single
crops, which make up 10, 30 or 80 per
cent Of their exports.
Relied Long on Exports.
This lack Of diversity of production
and the fact that they have been rely
ing for generations on their exports as
the main source of their national in
come render the Latin American ma
tions completely helpless in a race for
"autarchy."
Logically, the only way out, then,
II the major commercial powers were
to Isolate themselves and discontinue
their trade, would be for the Latin
American countries to combine among
themselves, exchange their natural re-
dustries by means of preferential tariffs.
reciprocal advantages, or barter, II
need be.
Once they had come to some sort of
regional understanding among them
selves, they could go to an industrial
power for some of the finished goods
and luxuries which they are unable to
geographic and economic
reasons would naturally point to the
United States-but then, going together,
and having much more to offer in ex-
change, they would undoubtedly be
given much better treatment than here
tofore.
Unimpressive as inter-Latin Ameri-
can trade has been up to this day, the
fact remains that II economic national
ism were now to run amuck over the
world, as consequence of a London
failure. and Latin America found her
self deprived of her traditional trans
atlantic customers, she would be forced
to fnd relief within herself.
Cuban Viewpoint Given.
Perhaps the head Of the Cuban dele
cation to London, Secretary Of State
Ferrara, had something Of the sort In
mind when he declared at the opening
session of the conference: trailing
agreements here. I shall undertake to
work out the difficulties through COL
laboration with nations Of the Western
Hemisphere"
In saying SO, Senior Ferrara was only
interpreting the views Of many promi-
nent Latin American statesmen who,
during recent years, have been per-
sistently pointing in that direction.
Perhaps because its sponsors foresaw
this wave Of economic nationalism in
the leading commercial powers+and
certainly because the vision Of its hid
den possibilities grows with the mate
rial development Of the Southern re-
publics-the trend for Latin American
customs unions, or regional trade
agreements. has received considerable
encouragement In the past few years.
When 1881 was coming to q close,
Minister Of Foreign Affairs Planet of
Chile sent circulars throughout Latin
America calling attention to the need
for economic cooperation and the DOS
sibiities Of united front among. at
least. the South American nations,
1ndorsing "the free circulation Of
wealth across our frontiers" the Chill
can statesman declared: Present
conditions prove the paramount tmpor-
tance Of Latin American economic CO.
operation in employing, with mutual
advantage. our own productive forces.
The great depression of world busi-
ness is destructive to our vitality be-
cause we lack means of collective de-
tense, and because we aggravate the
internationally troubled situation with
local barriers which our ancestors had
already considered contrary to the fu-
ture welfare Of the American Cont
nent"