Evening star., 1938-11-23
Economic Solidarity
Is Lima PorIey Goal
Development Of Industries in
South America Essential
To independence

To the Editor Of The Star:
The most vital question to which con-
sideration should be given by the COM
ing Pan-American Conference at Lima,
Peru, is how can South America be made
economically independent Of Europe. It
cannot be questioned that an economic
confederation Of South American repub-
lies could achieve self-sufnciency and
economic independence approaching that
of the United States. Wise foresight and
enlightened self-interest dictate that
the United States give every possible
assistance to South America in achiev-
ing self-sufflciency, independence and
power At the present time, the coun-
tries of South America are absolutely at
the mercy of the economic pressure OF
Europe and Japan. The only way this
condition can be changed Is by the pro-
motion Of their industrial development
so that they can manufacture their raw
materials into finished goods for their
own consumption. The people OF this
country are unaware of or ignore the
all-important fact that the United
States, under present conditions, cannot
take the place of Europe in the economy
of South America, for the economies OF
South America and the United States
are not reciprocal but parallel. South
American nations, like the United States,
produce almost every kind of raw ma
terials, but unlike the United States,
they do not manufacture them into fin
ished goods for their own consumption.
The United States, possessing adequate
raw materials, cannot take South Amer
icas in exchange for manufactured
goods, as do European countries at the
present time, hence the dependence OF
South America on Europe for its eco
nomic existence is subject to all manner
of pressure and intrigue. South America
must ship her. raw produce to Europe
under forced exchange controls, barter
schemes and conditions far worse than
prevailed in the case of the United States
a hundred years ago. The strongest
argument made by Alexander Hamilton
for the development of American manu-
factures was that the American people
could convert their raw materials into
finished goods for domestic use and also
free themselves from the violent fluctua-
tions in European markets for raw ma
terials. The development of Hamiltons
principles, the encouragement OF domes-
tic manufacturing under tariff protec-
ton, made the United States independ-
ent of Europe. These principles which
so profoundly influence the economic
history of the world, are more applicable
to South America today than they were
to the little republic of the United States
of Hamiltons time.
How can South America. especially the
large states, achieve economic inde-
pendence and so preserve their political
freedom? The United States can in no
other way contribute so effectively to
her own security than by fostering the
security of South America by aiding In
the industrial development of those
countries, that they may be not only
independent but capable of defending
themselves against possible enemies.
Every element of strength thus acquired
by them will count two fold in the secur-
ity of the United States. Until recent
years, England and Germany supplied
the capital and equipment for South
American development and the United
States played but small part, but the
few North American industries located
there have prospered. The tempo of eco
nomic progress has greatly increased
in the last two decades and is bound to
be accelerated in the immediate future.
Shall the United States or Europe play
the dominate part in this development?
If managed with wisdom and foresight,
here is the greatest field for our North
American enterprise-markets for capi-
tai and equipment and a growing future
commerce. A great opportunity awaits
the United States to further the develop
ment of the economic life and make Sc
cure the independence Of our fellow
Americans of the Southern Continent.
The Monroe doctrine is but gesture,
as futile as contending for the open door
in China, unless South America is ca
pable of large measure of self-defense.
No navy or air force we could build
WOulQ De CdpdUle Ol OeleQQlnB CIle more
than fifty thousand miles of coast line of
this Western Hemisphere, equal to twice
the circumference Of the earth. Brazil
is but twelve hundred miles from air or
naval bases located on the east coast of
Africa-one-haf the distance from San
Francisco to Hawaii. The vast empire
of China has been conquered to get pos
session of her land and resources and
enslave the people. So have Ethiopia
and Central Europe.
The United States is now safe from
direct invasion because of her natural
resources and the vast productivity Of
her industrial system. But South Amer
ica, without industrial development, can
neither resist economic conquest nor for
eign invasion. The people of no land
that is worth possessing can consider
themselves secure unless they can pro-
duce the essential commodities they
need and are prepared with the poten-
tial means of meeting an invader with
modern ornaments. It is obvious that
foreign trade and enterprise is under
going a complete reversal of the old
order as we have known it. The nations