Evening star., 1940-04-28
Latin American Trade
Seen Resulted by
European War
Profit to U. S. Foreseen
Even If 1t Means EorIy
Loss Of Some Markets
BY CARLOS ]. VIDELA.

1OSS on SOtnS N1OIketS
BY CARLOS j. VIDELA.
NEW YORK, April ~ (N.A.N.A.).
Under the impact Of the European
war, a complete reshuffie is taking
place in the trade Of the United
States with Latin America. Behind
the hectic scramble for concessions
and the fight for new markets,
punctuated here by more offers of
loans to the Latin countries, there
Is a movement afoot which has been
unobserved in this country yet, but
1t may portend more than mere
commercial orders in the future
the Latin Americans have finally
turned to trade among themselves.
The fact that Mexico is seeking
and f1nding-new outlets for her oil
in South America; that Argentina
Is beginning to emerge as a supplier
for Brazil, Peru and Bolivia and to
look north and investigate what she
can do in Colombia, Venezuela and
the Antilles: that the closing of
Europe's doors has opened the eyes
OF the people in the south to the
enormous possibilities for trade and
development which they had hith-
erto overlooked, means that the
Western Hemisphere is entering
upon a new stage in its history,
as it did in 1914.
Profit for United States.
In the long run this process, if
the war lasts long enough to let it
develop, cannot help but bring a
good profit to the United States,
even if it means at the beginning
the loss of some markets. Let the
standard of living in Latin America
rise one notch, and the demand for
United States products will shoot
up.
At the present time a great deal
OF confusion marks the efforts be-
ing made in this country to increase
trade with the peoples south of the
Rio Grande. Some have rushed
headlong into proposing that hun
dreds of millions of dollars be lent
to our southern neighbors for cur
rency stabilization" and other fiscal
purposes. following the pattern of
the $5O,OO0000 loan made to Brazil
early last year. Others have sug-
gested steps along the line of the
"Inter-American Bank which does
not seem destined to play any ma
Jor role in this situation despite the
good intentions of official Washing
ton. Hardly had the idea been ad-
vanced here when Argentina, which,
on paper, was to be one of the major
shareholders, bluntly said, I'VE are
not Interested"
Definite Pattern Appears.
II certain factors are borne In
mind and correlated a definite pat
tern appears. The iron industry is
about to have its beginnings in
Brazil. Argentina is taking steps
to develop her sales of corn and
meat in Peru, on the west coast of
South America. Bolivia, one of the
worlds foremost tin producers, finds
herself now in position to shake
of to a large degree British doni-
nation of her mining. Mexico ap-
pears to have definitely decided to
keep the former American and Brit
ish oil fields.
Taken together. those facts are
more than straws in the wind
They point concretely to a redistri-
button OF economic, industrial and
financial forces in the Western
Hemisphere.
Due to proximity and lower costs
Brazilian iron and steel can have
very large market in southern
South America, region of huge
and unscratched natural riches.
capable of supporting a population
larger by tens of millions than the
present one. What that may mean
Tor railroad and ship building is
obvious; and what these railroads
and ships-for which there is, now.
at this moment, urgent need, as wit
ness the purchase by Brazil of
more than a dozen vessels from the
United States-will mean in turn
Tor the development of natural re-
sources is obvious also.
Argentina Lacks Oil.
Despite her increased domestic
production Argentina lacks oil in
large amounts. Mexico, which last
year signed contract with Brazil
for the supply of $4,000, 900 worth
OF oil, can be Argentina's furnish
er of this commodity once the Mex
ican oil fields swing back into effi-
cient management-as President
Cardenas, who issued an ultimatum
this week to the labor unions con-
cerned, is determined that they do
and the tanker problem, disrupted
by the war, is solved. This means
not only that Mexican finances
could straighten themselves out but
Mexico could be something of an
American power, once her oil sales
are organized on a hemisphere-wid
basis. This, of course, may mean
competition with Venezuela, one of
the worlds largest oil producers; and
there is no telling what such a strug-
gle might lead to.
Bolivia confscated the property
OF large American oil company a
couple of years ago and is now op-
Grating it in close cooperation with
Argentina. appropriation of the ex-
tremely rich tin mines is not to be
ruled out as impossible. There lies
another potential nucleus for a
South American economic and
financial unit.
Tourist to Be Factor.
Still another factor has an i'm
portant bearing on this situation
the "invisibles," such as tourist ex-