Evening star., 1939-11-15
Looking to Uncle Sam


months ago the economic representa-
tives OF the twenty-one American re-
publlcs are meeting today at the
Pan-American Union to begin study
OF means of cushioning the effect
OF the war upon the Western Hem
lsphere. This committee on eco
nomic cooperation will have its
headquarters here during the course
of the war.
The task of these experts is diff
cult because it is not clear at this
early stage of the conflict in what
way and to exactly what extent the
American republics will suffer, al
though 1t is clear enough that the
trade OF all of them with Germany
commerce which is of considerable
Importance for some-is completely
cut OF. There is also little precedent
for the work the committee has to do.
What makes it doubly difficult is
That the twenty Latin republics are
almost helpless, because of the
similar character of their export
trade, to assist themselves to any
considerable extent, and must look
for relief, if any relief is to be pro-
vided, to the United States.
The United States has not dis
couraged this tendency to look to
Washington for alienation of the
troubles which have suddenly been
inflicted upon the republics of this
hemisphere. In fact, this Govern
ment has given them some en-
couragement to believe that relief
will be provided through stimulated
trade and easing of credit restric-
tions which will permit them to
obtain from the United States sup
plies now not available from the
belligerent nations.
American businessmen are inter-
ested primarily in the prospects for
increased trade which the Latin re-
publics offer, but those republics are
more concerned about markets
abroad for their exportable COM
modities-foodstuffs and raw ma
terials-which formerly went to parts
OF Europe now cut of from the
American Continent. Before the
start Of the war Germany took as
high as twenty per cent of the ex-
ports of some Latin countries. More
than ten per cent of the exports of
Argentina, Brazil, Chile, Colombia,
Costa Rica, Ecuador, Guatemala,
Nicaragua, Paraguay, Peru and
Uruguay went to the Reich in 1888.
Some of this loss will be absorbed
by increased buying by the allies,
but against that improvement will
be the Oppressive effect of increased
marine freight and insurance rates,
and possibly some lack of shipping
facilities.
In what direction the United States
will be able to help most in cushion
ing the effects Of the war is uncer-
tain. 1t may be possible to stimulate
American purchases Of Latin prod
ucts, although we already take as
much of them as we now need.
Secretary Of Agriculture Wallace in
a recent speech in San Francisco in
dicated the magnitude of the prob
lem, but offered the hope that Amer
lean purchases of fourteen strategic
raw materials may be expanded and
that the Latin countries might stim-
ulate the production of farm prod
ucts which are not competitive with
our own, principally rubber, abaca
for Manila hemp, the cinchona plant
for quinine, tropical plants which
provide perfumes and flavoring ex-
tracts, and some types of hardwoods.
Tariff reductions would not appear
to offer much prospect, for during
the course Of the negotiation of
eleven trade agreements with Latin
countries the possibilities in this di-
rection have been pretty we'll ex-
amined. Negotiation of three more
Latin agreements is under way.
Whatever means of assistance the
experts may discover commensurate
with the United States obligations
to it's own agricultural producers this
Government undoubtedly will be
ready to utilize.