Evening star., 1938-07-24
Next 3 Years to Decide Fate
OfU. S. Trade in the Americas
Private Initiative Believed to Require Government
Aid in Stimulating Exports
to Sister Republics

those who know only superficially the
South American mentality. More stress is
placed in many official quarters here on an
leader or on an invective from a politico
against Nazi-ism or Fascism than on these
matters Yet the results are tangible.
Germany and Italy are increasing their
influence by geometrical progression
Recognize Need Of Export Aid.
Official circles in Washington realize
that something must be done to assist ex-
porters in the South American market.
Whether this will be done through the
Import-Export Bank created in 1884 or by
organizing a Federal Credit Export agency
is as yet uncertain.
The administration has been slow in
setting up an efficient organiZatio to
facilitate extension Of long term credits to
our neighbors in the South because it has
foreseen the hue and cry: Dollar diplo-
macy
Until 1890 our political record in South
America was bad. Marines have too fire.
quently been sent out as comouf1aged debt
collectors. Washington quarters feared
that credit organization which would
have to hold the bag Of the exporters might
be misinterpreted in most Latin American
republics. But since Germany and Italy
have ageressively entered the Latin Ameri-
can markets with government subsidies
and a policy which may be described as
one Of intimidation. the Export Import
Bank has shown more interest in financing
the exporter who cannot obtain long term
credit from his bank.
The question of assisting or "insuring"
export credits has been adopted in one
form or another by IA European countries.
the cry of dollar diplomacy" is less acute
today than it was few years ago.
The lack of substantial funds, however.
is crippling the efforts of the Export
Import Bank Its services are sharply linz
tied despite its admission that many COM
mercial banks refuse to consider favorab bly,
loans secured by export shipments" Yet
the same bank admits that this particular
to the substantial benefit Of the Nation S
domestic economy"
Survey by Foreign Trade Council.
survey made by the National Foreign
Trade Council is instructive. This organ
iov,v, tn firros
representing a cross-section of the various
lines of industry in the country. 1t asked
their opinion as to the advisability of set
ting up some sort of Federal credit organ
ization. Although this may be interpreted
As another interference OF the Govern
ment in private business IS per cent re-
piled that under such conditions export
business would be increased from 500, 900, >
900 to 5000, 10000
Despite the many ethical considerations
regarding government supported trade with
South America, the developments of the
last few months seem to have determined
Washington to ask Congress for a substan-
tial increase of the funds OF the Import
900 would be a good beginning.
While economically we are still holding
our own in Latin America, the administra-
ton is convinced that unless something
constructive is done right away we may
have to spend four times that amount in
the next few years for sterile purposes"
At hearing on the naval budget the
totalitarian menace was frankly discussed
rs was the question Of building an Atlantic
squadron. Naval experts stated that this
plan would require at least seven years fol-
completion and approximately $4,000, 900,
600 In cash. Because Of the inf1ltration of thu
totalitarians into South America the Paciflt
Fleet is being brought over to the Atlantic
for its next years war games. The theme
admittedly Is one Of opposing possible
Of South America.
U. S. May Face Two Enemies.
In the present uncertain situation Of thu
world naval strategists are compelled te
consider the problem of two totalitariar
states-one in the Pacific, the other in the
Administering jointly against the inter.
ests OF this country While Japan might
threaten US in the Pacific, Germany OF
Italy, or both, might create disturbances ir
the Atlantic. They have undoubtedly beer
able to enlist a good deal Of popular senti.
ment in most Latin American republics ane
an attempt to totalitarianize some of thes,
republics might prove successful.
But. should we be able to supplant the
economic activities of Germany and Ital,
IN South America: should we be able tt
become the most satisfactory client of Latir
American republics; there is no doubt tha,
the political task Of the totalitarian state.
will prove much more dfihcult. An expendi
ture of half billion or even billion dol.
lars to facilitate the efforts of our exporter.
would be we'll spent
Time is against us in this field as it i.
against Germany and Italy in the European
diplomatic turmoil. That is why officia
experts believe that unless we are wei
along with the economic battle in Latir
America within the next three years. oul
chances Of success will be thin indeed.
(copyright. 1881