Evening star., 1935-03-24
ACKNOWLEDGEMENTS E
THE ENTRANCE TO SANTALUCIA
PARK IN SANTIAGO. CHILE.
BY EDWARD TOMLINSON.

THERE is a Nationwide opinion
that the republics of South
America, with their 30,000,-
Il 900 people, are of tremendous
commercial importance to the
United States.
Bankers and manufacturers, pro-
fessors and politicians, editorial writ
ers and radio commentators from
the Potomac to Puget Sound agree
that the trade opportunities in these
countries have been inexcusably
neglected.
Indeed, it is dull day when some
manufacturing association or Cham
ber of Commerce is not pointing out
and passing resolutions to the effect
that since in previous years we were
supreme in the markets Of Brazil, Ar
gentina, Chile, Peru and other ma
tions, and since our yearly sales to
the continent have fallen from more
than $500, 100000 to less than $780,
900, 900, action ought to be swift and
immediate.
Meantime the Government itself
has embarked upon the policy Of re-
ciprocal bargaining by which 1t de-
clares we shall not only be able to
regain our lost southern markets, but
shall expand them and even open up
new ones.
In view of all this enthusiasm.
agitation and planning. it might well
be pointed out that restrictions which
we ourselves have imposed have al
ready served to close some of the
South American markets to us, while
they have reduced us to third and
fourth places in others.
South American business men
themselves chide us about deliberately
abandoning this rich commercial
field.
European countries" one Of them
reminds us. were the pioneers in
developing the markets Of South
America. Long before the beginning
of the present century Great Britain,
Germany and Italy had built rail-
roads, established banks and organ
lied trading companies in Argentina,
Brazil, Chile and Peru. Moreover,
they had connected all our important
seaports and those of the Old World
with steamship lines.
Turn to United States.
Then came the World War. South
American buyers. cut of from their
accustomed source of supplies, turned
to the United States for their manu-
factures and financial assistance.
And even though from the moment
the guns became silent on the western
front until the dawn of the great
depression the European countries
waged unceasing competition, their
efforts met with little success. Our
people had become accustomed to the
products Of your factories.
"You had further fortified your posi-
ton by opening up credit facilities and
establishing banks in all our large
cities Indeed, you had not only sup
planted the countries of the Old World
commercially, but also financially.
Then, like the Arabs, you suddenly
folded your tents and slipped away.
First you cut off every avenue of
credit. Then you began raising pro-
hibitive tariffs against South AZ erican
products, which naturally invited re-
taliations from the South American
governments. You stopped buying from
us: therefore We were unable to buy
from you. Under the circumstances
we cannot be blamed if we have
turned once again to our original
sources for credit and commercial ex-
change.
"Of course, recently there has been
an improvement in relations between
our governments and yours. But con-
cessions from us will be slow in ma
terializing unless you yourselves are
. ready to make very material ones"
No matter what theories we may
hold in regard to foreign trade, our
share of the South American markets
is to be had only by the process OF
give and take. And in the case of Ar
gentina we shall have to give to a
considerable extent.
A United States Senator talking to
an Argentine diplomat in Washington
the other day, invoked the idea that
trade, to be profitable, need not be
direct.
"If you sell your beef and wheat to
England" he said, England buys cot
ton from us and we sell automobiles
to you. That makes the wheels go
round. you see. Trade is triangular" !"
YES" replied the diplomat, trade
may be triangular, but freight is not.
If your ships come down loaded with
goods we have bought, they must not
return home empty or their owners
will soon go bankrupt"
Anyhow, the phrase, I'VE buy from
those who buy from u.s." is the slogan
in Argentina today. Indeed, it is more
than a slogan-it is the basis upon
which practically all foreign business
is carried on. Trade agreements al
ready made with England. Germany,
Spain and other countries make it
necessary for Argentina to use all the
exchange from these countries to pay
for their goods and services. Conse-
quently, we may expect to be able to
increase our trade with the Argentine
Republic only in proportion to our
purchases from her.
Prospect Unpromising.
Since this is the case the prospect
does not seem promising. First of all,
in many respects Argentina and the
United States duplicate each other.
Each produces wheat, corn, cattle and
sheep. And when the wheat and corn
growers of the Middle West are strug-
Cling with huge surpluses We aren't
going to buy grain from the Argen-
tine. Nor are the cattle men from
the West likely to stand by and permit
Argentina steaks to come In and COM
pete with theirs.
'Of course" says an Argentine ex-
pert, 1--WE know that selling beef to
Uncle Sam is out of the question"
Even so, our exclusion, by means
of an embargo, of all Argentine fresh
meats from the United States is a
sore point in commercial relations
between the two countries.
Il l. L.