Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-11-07
South Americans Set
To Work on Program
OF Co-operation
RooseveIt's Reelection
Is Go-Aheud Signal
In Many CupitoIs

BY the Associated Press.
BUENOS AIRES, Nov. South
America set tc work today on a
widespread program of inter-
American cooperation which many
sources believed would result in
strong common front linking the
Americas defenSively and econom-
ically.
With the possible exception of
Brazil, the South American nations
have been marking time" on vital
Pan American problems of eco
Monies and defense pending the
presidential election in the United
States, but they regarded President
RooSevelt's reelection as a go
ahead" signal.
Hesitation to make any commit
ments earlier was particularly no.
ticeable in Argentina, key nation
in whatever cooperation scheme
may be worked out to offset eco
nomic hardships resulting from war
and the threat of a totalitarian
spread to the New World.
Foreign Exchange Shortage.
This country is known to be fac
ing a severe shortage of foreign ex-
change, due to the war, and is anx-
ious to obtain major credits from
the United States and find increased
export markets.
Finance Minister FREDERICK Pene-
do announced yesterday that the
Argentine cabinet had given pro-
visional approval to his plan to
restrict imports from the United
States to vitality needed articles so
as to check gold export. Such a
step, he said, was intended to re-
activate Argentine economy and
balance foreign trade, but would
be put into effect only if other
means of solving the Nations for
eign trade problems failed.
One generally well-informed
source here said it was possible that
Argentina, which is the leading
South American nation in credit
rating because she never has de-
faulted on a national obligation,
might seek a loan of as much as
$10o000.000 from the United States.
Warmer Reception Hinted.
Informed sources said the United
States political campaign had made
Argentine officials coy during dis
cussions of possible military and
naval cooperation with the United
States They limited that conferees
might find a warmer reception since
the reelection of President Roose-
welt
A similar situation exists in Chile.
Uruguay. Paraguay and other South
American nations.
The new Paraguayan Minister to
Washington, DR.. Juan Jose Soler.
who sails for New York tomorrow.
said in Buenos Aires that his coun-
try was anxious to continue the close
financial, political and defensive CO.
operation with the United States be-
gun under the late President Jose
Felix Estigarribia.
Tin Purchases Likely.
With his arrival in Washington
discussions were expected relative
to further United States aid for
Paraguay and the possibility of as
Sistance for building an air center
for use of the American republics
in the event of threat from abroad
A diplomatic source in Buenos
Aires predicted United States pur-
chases of tin ore from Bolivia, DOS
sible routing of a transcontinental
rail line through that country as
defense measure and settlement
of the Standard Oil appropriation
question would be speedily consid-
cred now that the United States
election is over.
South and Central America and
Mexico generally received news of
President Roosevelt'S reelection
with the view that it gave a sturdy
Endorsement to the good neighbor"
policy