The Waterbury Democrat., 1938-11-25
BY JOHN T. FLYNN

Copyright, 1888, NEA Service, Incl
 Two problems face us in South America. 1. A trade problem. 2. The problem of living beside fascist and semi-fascist nations.
 At first, the trade problem. For years Britain and the United States exploited South America. We have about $3,10O,OOOOOO invested there; Britain about $4,50O,00O,00O.
 Of our investments $1,500,O00,- 900 are direct investments-that is, money invested in plants, mines, ships, factories, etc., in South Amer ican countries. The balance are bonds-loans to states and indus tries there. In this we differ from the Germans. They seek trade, ex- change of commodities. We have &C., quired lands and natural resources.
 Of this $1,500,00O,OO0 of direct investments about one billion be- longs to handful of companies. Here they are:
 American & Foreign Power, $290, ,000, ,000; Anaconda Copper, $220, 100000; International Tel. & Tel, $130,000, 1000; Swift, Armour, Wilson, $95 ,000 000; Kennecott Cop per, $90 ,0O0; w. R. Grace & O., | $60, 100000; Standard Oil of N. J., $42, 100000; Cerro de Pasco, $41,OOO,- 900; Patino Enterprises, $34,0OO, ,O0O: Texas Corp, $13,0O0, 900; Ford, $10,- 100000; Firestone and Goodyear, SIC, 0,00O,000; General Motors, $6,000,- GOO; U. s. Steel, $4,0O0, ,oOO; making total of $1,045, 100000.
 Our copper and nitrate interests the largest-have suffered great ly. The nitrate industry of Chile collapsed because of the develop ment of synthetic nitrates. The cop per industry was hit along with the worldwide copper industry.
 But while these corporations suffered, along with the petroleum companies, the countries them selves were plunged into the gravest depression. They began almost confiscatory taxation poli- cies. In Chile, nitrate control was established in which the govern ment cut itself in as a partner. Export taxes were imposed on products exploited by American and British companies. Thus en- ormous losses have been sustained by American and British investors to the point where some invest ments have been made valueless. And still further investments are threatened.
 This, of course, is a serious problem for the corporations con- cerned. But it is purely a busi- ness matter, since these corpora tionS own lands and natural re- sources within the territorial jur- isdiction of other nationalities. We have to be on our guard that we, as nation, be not drawn into interna- tional quarrels in South America over these interests. We must be vigilant that they be not made the disguised basis for leading us on to military preparations. The invest ments, in many cases of concerns which have exploited South Ameri- can peoples, do not present prob lems which can be dealt with by military instruments.
 | The trade problems involve the struggle between rival merchants of varying nationalities for the commerce of South America. That is a problem for our merchants and producers. They will have to be good salesmen. They will have to give attention to the foreign commercial policies of their own country. We cannot have a policy of rising prices and high tariffs and hope to compete in foreign markets. It just is not possible.
 If the Germans or Italians can Il get trade by barter, there is noth- ing to prevent us from using that instrument, but in the end it will be an instrument of very doubtful utility. The South Amer jeans do not prefer it. They like cash as well as the next one. The American government should aid our exporters in every legitimate way. But any one who. 'supposes we can get more business in South America by a display of provocative force is very much mistaken. That is good way to lose business.
 Second, as to the fascist neigh bors. That is indeed a serious matter. We have had a long his- tory of getting along with mili- l tarv dictatorS of the n1d Schonl