Evening star., 1937-08-11
Hull VS.. Hitler in Brazil
Americas Recent and Mysterious Moves Add Up to
Defeat of Penetration
Penetration.

from Germany's customers At the
present moment, Brazil has got blocked
in Germany marks amounting to
81. 900 900 American dollars Under
this system she has got to take Ger
man goods whether she wants them
or not: German automobiles, although
she may prefer American-in order
to get her money. But Germany
takes Brazilian goods and If she
doesn't use them at home sells them in
the world market for gold or other
goods, at arbitrary prices.
Actually, what Germany has been
doing has been to dSorganize the
Brazilian market in the small coun-
tries Of Central Europe. Germany
buys Brazilian coffee for goods. Then
she sells this coffee for cash or other
goods below the Brazilian price. So
that when Brazil takes her coffee into
her old markets she finds that Ger
many has been there with it already.
It's a colossal dumping campaign in
which Germany is not only dumping
her own goods, but other peoples
against those other peoples interests,
using her customers goods to destroy
her customers trade, and to dis
organize anything like free market.
Prompts Treaty Violation.
This game has been practiced all
over the world, from China to Canada.
The result is that countries who have
trade agreements with the United
States, and who trade with Germany.
discriminate against the United States
in a manner that violates both the
letter and spirit Of their trade agree
ments with us.
From the American viewpoint, the
Brazilian case Is particularly fragrant.
For years the United States was the
first supplier to Brazil, followed by
England and Germany. England is
now In third place, and Germany
is close to pushing the United States
from first place. Yet the United States
annually buys from Brazil about twice
as much as we sell her. We are her
largest customer for her most i'm
portant export. We, therefore, have q
club which We could use against
Brazil, but Mr.. Hull refuses to WELD
it, not only because he is interested
in improving relations with our near
neighbors, but because if We WELD
clubs against others, others will WELD
them against us.
Filled With Resources.
We are, therefore, seeing In this
Brazilian affair a real struggle be-
tween barter principles of DR.. Schacht,
made possible by rigid political con-
troll, and the liberal trade policies OF
Mr.. Hull. And in Brazil it is ap-
parently complicated by the fear
of the Brazilians that German eco
nomic penetration, by means of Dr.
Schacht's bludgeon, NAV be the pre-
lude to penetration of a different
and even more dangerous sort Brazil
is sparsely populated country, filled
with natural resources sorely needed
by Germans, and large and thriving
German colony is there already The
German government has just ap-
pointed as Ambassador to Brazil, Herr
Ritter, one OF the most important
men in the German foreign Office. For
years he has been in charge Of the
department Of economics.
The offer to lease destroyers can
not, therefore, be interpreted merely
as friendly move toward a neigh
boring American country. 1t is ap-
parently a warning to the Germans.
1t is also not without significance
that 81 governments-a list in which
Italy Germany and Japan are con-
spicuous for their absence-have Just
signified their allegiance to four
principles formulated last month by
Mr.. Hull, as the basis Of an inter-
national policy. Those principles were:
Treaties must be scrupulously re-
garded, obligations maintained, COM
mercial barriers shattered and arma-
ments reduced.
(Copyrieht, 1877