Evening star., 1939-03-19
-Four New Pacts
Likely in South
America
Argentina, Colombo,
Chile and Cuba Put
On Trade List
BY CHARLES E. HARNER,
Associated Press Financial Writer.

United States, following the recent
agreement with Brazil, were pre-
dicted in Wall Street international
financial circles.
The nations named, in the order
IN which it was thought the agree
ments might be concluded, are Ar
gentina, Chile, Cuba and Colombia.
With Brazil, these nations last
year represented purchasing power
of $3O0,000O0 in United States
products. Their sales to the United
States were even greater.
Argentina, as a nation which has
kept itself clear of top-heavy debts
and whose national vocabulary does
not contain the word default" is
most especially cultivated by the
State Department..
Wall Street international finance
experts say her Ambassador to
Washington, Felipe Espil, is likely
to ny down to Buenos Aires within
the next few weeks to report to his
government personally on plans for
new trade treaty which would per-
NIT the sale of more United States
products to his nation-and. Incl
dentally, the purchase of more Ar
gentine products in this country for
good United States dollars.
Frozen" Credits Released.
The new Brazilian arrangement
provides for an export-import bank
credit of 100000, releasing
frozen" dollar credits from Brazil
to permit American exporters to re-
ceive immediate payment for their
goods sold Brazil. 1t also provides
for a $50,000 900 loan to Brazil and
the resumption of payments on
1857 ,072 900 owed on bonds held in
this country.
Brazil last year sold $97, ,937 900
worth of produce-mainly coffee
to the United States and purchased
$6l .955 900 worth of American goods
Argentina. on the other hand
bought $S6,772 900 worth of Amer
lean goods. selling only $40, ,707. 900
worth to this country. That is a
sore point with Argentina and a
source of difficulty with the Argen-
tine-United States trade negotia-
tions.
The Buenos Aires government in
sists that United States citizens
should eat Argentine beef and NUT
ton, thereby balancing the export
import account and that the hoof-
and-mouth disease restrictions by
which those products are barred
from North American tables are
insults. Western Senators in Wash
ington, however, are determined
the restrictions shall remain as a
protection to Western ranchers.
Regarded as Miracle.
Observers consequently regard the
report that an agreement is near
despite this impasse, as something
IN the nature of a diplomatic
miracle.
Argentina's total dollar debt is
$3.50, ,16l ,000-and all Argentine fed
eral government bondholders are
receiving their interest in full.
The reported proximity of trade
pact with Chile-Which has default
ed on $216.O69 500 worth of bonds
purchased in the United States
stems from a variety of reasons
other than cold dollars-and-cents.
Chile has been hard-hit by one
OF the most devastating earthquakes
in history and needs money and
credit badly in order to get back on
her feet. So Norman Armour, Unit
ed States Ambassador to Santiago,
reported on a flying visit to Wash
ington.
Chileans are nicknamed "the
Yankees of South America" and the
friendship of Chile and the United
States is a solid historical matter
which dates back to 1843 when emf
grant Yankees from Connecticut
went to Chile to build her first rail-
road and construct seaports, then re-
manned to become ancestors of some
of the nations leading citizens today.
Chile's situation of the southwest
ern part of the continent leads the
United States to hope Chile will be
well equipped with American air.
planes-and half of those now flown
in South America were made in
America.
Holds Favorable Margin.
Chile last year sold the United
States s4,00O.0Oo worth of produce
more than she purchased.
Colombia and Cuba, closer to the
United States in distance than the
other three nations, are like Brazil
and Chile in that they annually sell
the United States more than they
purchase.
Colombia, like Brazil, makes her
biggest sales in coffee, while Cuba's
staple is sugar. Colombia was more
than 100000 ahead last year on
the trade exchange, while Cuba was
ahead nearly $30,OO0,0 900, not count
ing the millions which American
tourists annually spend in the
island.
Cuba's S $S2 SOB 900 debt on bonds
held in the United States is gen.
orally being serviced, although the
funds are in arrears. AM
Pedro Martinez Fraga soon
will return to Washington in the
hope Of concluding a $4,000, 900
credit with the Export Import Bank.
Colombia's STAG, 500 900 worth of
defaulted bonds have been a dip
lomatic headache for years, but
some Wall Streeters think present
indications are that negotiations
concerning their servicing will be
resumed as a prelude to CONNER
cial agreement with the United
States.
Brazil, Chile, Colombia and Cuba
combined last year purchased $204,-
600 900 worth of United States
products-and sold this country
$282 900 900 of their own.
Experts consider it possible that
this $78, ,000, 900 excess in sales re-
ceipts by these countries could be
,1cnI H., nor,, Anr