Evening star., 1940-06-09
Urges Strong Stond in
Lutin America
By ODen L. Scott.

more and more recognition of this fact
among policy-guiding officials of this
Government as the outlook in Europe
takes turn for the worse.
The chance of getting back to normal
basis of world trade after this war now
is next to nothing. If the Allies win, the
United States will be permitted to trade
In their area of control on the terms
they make. If the Germans win the
United States will have chance to
trade in Europe-a trade that is vital to
American agriculture and industry-on
terms even less favorable
Further: The big trade battle-ground
OF the future is in Latin America The
nations to the south contain the worlds
richest store of unexploited natural re-
sources. Those nations produce many
agricultural and mineral products that
are competitive with the products of
American farms and American mines
These products fit into the needs of Eu-
rope and their exploitation will be a
major objective of Germany and Italy
and Spain if that combination of powers
ton of Latin American resources will
represent the one avenue by which an
aggressive European power or Asiatic
power can lay the groundwork for an at
tack on this Nation. To permit the eco
nomlc penetration and development of
that area by Germany or Japan, and
their Allies, would be to open the way to
political control and to danger to the
United States
President Roosevelt is strongly aware
OF that fact. He has told Congress that
the United States would use it's armed
forces to provide protection of the whole
American Hemisphere against invasion
or control or domination by non-Ameri-
can nations" This means that the
United States would act to prevent a
victorious Germany, for instance, from
using its economic power to control or
to dominate Latin American govern
ment But to block out German activity
would be easier said than done The rea-
son is that the Germans, like the italians
and the Japanese, can offer their indus
trial goods in direct exchange for the
ldW lldleIldlS VI Ldlll America. ne
United States, in most instances, cannot
because this country possesses a surplus
Of it own in wheat and meat and cotton
and copper and corn and in most other
basic materials.
This means that the United States, to
keep Latin America from the domination
of other powers, will have to devise other
than trade methods.
Most official thinking in this Govern
ment right now is based upon means
of financing Latin American nations
through loans that will tempt them to
maintain their close ties with this coun-
try. Some other official thinking is based
upon possibilities of buying up Latin
American resources and storing them in
this country whether or not they can be
used. Both are mere stopgap policies.
The nations to the south are regarded
by realistic American officials as past
masters at the game of blackmailing the
United States into giving them money
and aid. They take American money
and then move toward appropriation of
American property, while making little
or no pretense at paying on their loans
and while playing ball with Germany
and Japan.
Judged by all past experience, this
country in the period ahead will use its
resources to help Latin America develop
her industries only to discover that the
potential enemies of the United States
are the ones who really reap the rewards.
Discovery is made, however, that some
officials are thinking realistically about
the Latin American problem Whether
they are able to sell President Roosevelt
and Secretary Hull on their ideas re-
mains to be seen The fact that they
have not had much success thus far
does not mean that they will not sue
ceed at this time when there is real
danger to this country from the threat
that would follow a German victory, and
a japanese alliance with Germany
These officials are convinced that the
United States must follow strong policy
in dealing with Latin America. They be-
lieve that it will be necessary to use
American capital and American organ
izing ability to develop both the economic
and military defenses of the nations to
the south. They expect that this devel-
opment can be carried out in close CO.
operation with the governments of the
nations of this hemisphere At the same
time they are convinced that it will be
necessary to be hard-boiled if those
nations take American help and then
turn on this country as they have done
in the past.
There really is little that this nation
can do to prevent nations to the South
from exchanging their raw materials for
the finished goods of Germany and
Japan and Italy. Loans and building of
huge inventories of these surplus goods
inside the United States at best, can be
only temporary alternatives But the
United States can, preferably by nego-
tiation. receive the right to keep watch
to make sure that economic contact is
not turned into political control. This
country, too, can negotiate for air bases
and naval bases that are badly needed.
At present, no South American country
has even so much as given this country
an anchorage for its ships in any of the
continents harbors. Some of those
countries have played ball closely with
Germany in development of air service
and air fields. Others have used German
officers to build up their small armed