The Waterbury Democrat., 1939-02-21
GOOD NEICHBOR
 POLICY FUTURE
Roosevelt Presence at Naval Maneuvers May
 Strengthen Relations
BY HARRY w. FRANTZ 1899 by United Press)

NtUpyEibusS AVoo " 1n'SsN
 Washington, Feb. 2l-presiden' Roosevelt's presence at naval man. euyers in the Caribbean may result in a more realistic and active good neighbor policy, 1t was belieced to- day.
 His 12.day cruise with the fleet which is engaged in annual wal games, was expected to hasten off, cial decisions on problems of inter- American defense and, indirectly, or financial and commercial policies.
 Major interest in the presidents fiyst-hand observations Latin Amer ican diplomats believed, will bt revelations concerning the theoret. ical vulnerability of the Panama canal and the east coast of South America to attack from a European rcwer. The tactical problem the fleet is attempting to solve Is pre- dicted on a theoretical attack or the canal.
 If the maneuvers prove the South American coast to be "wide open the security of the United States and the safety of the continent will res come of transcending importance in MT. Roosevelt's Latin American program.
 May Stiffen South America
 Experienced diplomats believed that the United States may have tc stifen the South American defen- sive frontier by affording southern republics new opportunities for in- dustrial and commercial progress and, perhaps, rather liberal credit assistance.
 Brazilian Foreign Minister Os. waldo Aranha is now in conference with officials here. Somewhere or this grand circuit" among econo- mists of the state, treasury ane commerce departments, the recon struction finance corporation, and the export-import bank are the technical memoranda which will de. termine the nature and extent of additional commercial and financial cooperation with Brazil.
 Defense questions ar correlated with the enonomic since any re. taxation of the Brazilian exchange position or extension of her in- dustrialization undoubtedly would lead to various Brazilian measures for national defense-already facil- itated by many United States mili- tary and naval experts loaned te Brazil.
 Helping Brazil
 If this country renders effective financial of commercial aid tG Brazil, then the same logic Of con- financial defense probably will exert an influence on relations with Col. umbia and Venezuela, which also have long Atlantic coast lines.
 Colombia's economy, like Brazil's is based on coffee. She recently demonstrated her friendly attitude toward the United States by engag- Ing q naval air mission. United States and Venezuela recently raised their legations to the status of ems bassy, Q diplomatic barometer oi rising cordiality.
 Argentina's former favorable merchandise balance with the Uni ted States has been reversed. how ever. The finance ministry has pointed to the need of reducing United States imports to solve on exchange problem already acute.
 Argentina Is Held Up
 Argentina has sought in vain since the reciprocity program began, te negotiate c new commercial treaty with the United States. Her efforts have been frustrated--partly be- cause of the U. 6. senate refusal to ratify Q sanitary convention de- signed to relax, for on.infected areas, an embargo against Argen- tine chilled and frozen meats. and partly because of steady opposition of United States farm organizations to imports of agricultural and live- stock products.
 But she has maintained a record for external debt payments not equalled by any other Latin Amer. ican country. She has paid cash for about sf.0oo,ooo of American air-