Evening star., 1933-06-18
BY GASTON NERvAL.

A T the opening session Of the
~ World Economic Conference, at
"A London, Senor Orestes Ferrara,
4 \ former Cuban Ambassador to
Washington and now secretary
of state of Cuba, was reported as say
ing Failing agreements here, shall
undertake to work out the difficulties
through collaboration with the nations
of the Western Hemisphere"
This is In accord with a long stand
ing Latin American ideal. of which
tinguished and persistent advocates.
Several years ago he suggested re-
ciprocal trade agreements between the
Latin American countries and the
United States. pointing out the geo
graphic, political and commercial ad-
vantages for the setting up of an eco
nomic unit in the New World.
Senor Ferrara was probably inter-
preting the views of most of the Latin
American delegates gathered in Lon
don. Realistically sensing the Difficult
ties which a world conference In which
so many conflicting interests are in
volved is bound to encounter, the Latin
Americans at London realize that the
only way out is to follow the line of
least resistance.
And the line of least resistance Is.
simply, to divide up the job, to bring
together, in separate groups. those in
terests which are least opposed to one
another. To harmoniZe, in word,
those interests which are most suscepti-
BILE Of harmoniZation; those interests
which, instead Of competing with, can
complement each other.
Two Elements of Trade.
Obviously, this can only be done by
regions, by groups. The foundation Of
all international economy Is trade. In
trade there are, generally speaking, two
elements-countries which produce raw
materials and countries which manu-
facture goods. The thing to do, then,
is to group those countries, bearing
geographic and economic considerations
in mind, SO that regional units ma re-
suit, in which the two elements of trade
appear more or less balanced and sup
plement one another.
Political considerations, too, may at
times influence such grouping, as ex-
emplifled by the Ottawa agreements
but in this case success is much more
problematical than If purely economic
and geographic factors had been con-
suited
There are at present five great re-
of raw materials and large popula-
ton, capable of absorbing the surplus
Of manufactured goods which the lead
ing industrial powers offer for trade.
But only one of the five is still open to
free competition.
With Russia closed from within;
China falling slowly, but certainly, to
japanese penetration; India monopo-
lized by Great Britain. and Africa, from
long ago, divided up and parceled out
to few European countries, Latin
America Is the last Of the worlds great
treasure houses.
This Is. precisely what advocates of
inter- American trade have, for years,
been telling the United States. the one
major industrial country which Is
closest to that new Ell Dorado and
which is geographically and economically
best fitted to supply it with manufac-
tured articles in exchange for its nat
ural products.
More than it can ever gain at a
world conference in which so many
conflicting interests are at work, the
United States would have already
profited If 1t had realized that fact
some time ago. But it Is not yet too
late.
The Only Free Market.
The 20 Latin American republics lying
on the other side Of the Rio Grande
still constitute-today more than ever
the only free market for the surplus
output Of the United States.
They occupy two-thirds of the West
ern Hemisphere. They are already the