Evening star., 1939-12-31
u. ). Seeks 10 Boost
Export Trade With
South America
Shipments Already Up.
But Reciprocity Is
Key to Future
0y Cambridge Associates.

Uncle Sam is now 1t work culti-
waiting his own back yard. In Oc-
tober, the first full month in which
war dominated the commercial pic
ture, substantial increases in ex-
ports were recorded in practically
all South and North American ma
tions. Our good fortune is largely
due to the fact that Germany has
been working assiduously for several
years to build up her balance of
trade through the South Ameri-
can markets.
Products of South America which
are necessary to our industrial life
and which do not compete with our
markets are few. Prominent among
these are rubber, tin, coffee. and ma
tural nitrates. Argentina, which
can claim title as the dominating
nation of South America, is pri-
marily agrarian, and its large ex-
ports of wheat and livestock must
find some non-competitive market.
An additional factor which makes
1t difficult for that nation to pur-
chase from us is the reciprocal ma
ture of present world trade adopted
" practically every nation. At the
year end, barrage of criticism from
various domestic interests threat
ened to hold up the conclusion of
reciprocal trade agreement with
Argentina.
Small Part of Total.
In 1887, the most prosperous year
In international trade since the
great depression, only 10 per cent Of
our So, ,349, ,167 exports went to South
America. Our best customers we're
the United Kingdom and Canada,
together accounting for about Is
per cent of our exports. Next in
line were Japan, France, Germany,
and Mexico taking total Of 20
per cent. Our best opportunity for
serving the South American coun-
tries lies in supplying machinery
and other manufactured products
In return for raw materials.
OF our $3083, ,668,000 imports in
1887, over IA per cent came from
South America. This resulted IN an
unfavorable balance of trade with
that nation as whole, and it might
be possible for us to insist on a
closer balance. A more constructive
attitude, however, would be the en-
couragement of both exports and
imports, regardless of the inf1nitesi-
NAL drain that may result on our
huge stores of gold.
Brazil Needs Capital.
Argentina and Brazil now rank
fourth and fifth as sources Of i'm
ports for the United States, being
preceded by Canada, Japan and the
United Kingdom in the order
named. If we should limit our pur-
chases to the Western Hemisphere.
our total imports would be reduced
by half, based on 1887 figures. Our
exports, on the other hand, would be
reduced by two-thirds, which even
the most militant isolationist would
not seriously suggest.
Brazil is now rapidly developing
an industrial economy Growth so
far has been limited by the time re-
Quired to train an essentially un-
skilled populace in the handling of
complicated machinery, and scar
city of capital. Production of tex
tiles, however, is steadily mounting,
and other lines are being developed
rs rapidly as possible. One of the
greatest difficulties which this ma
ton faces is a continuation of tight
money, both for international ex-
change and for the development of
domestic industries. This will tend
to be offset by increasing prices for
raw materials, If European hostili-
ties continue for sufficient period.
Brazil is now one of our potentially
active markets.
Government officials are fully
aware of the possibilities in this di-
rection. and if they are able to de-
wise some plan for sound develop
ment of these South American mar
kets without treading too much on
the toes of special interests, they can
foster an impressive increase in our
foreign trade. We are now being
provided with second opportunity
to cement friendly relations with
Latin America, and this time our
attitude appears to be more real
lsfic