Evening star., 1940-06-24

M N legislation. In
its broad out
Charles G. Ross. lines the plan
has already been submitted to the
Latin American countries and a
Pan-American conference for its
discussion is being arranged. This
will probably be at Havana.
Roughly-for the details are yet
to be worked out-the plan con-
templates an economic union for
the handling of some $4,000 900 900
worth of exportable surplus products
Of the United States and Latin
America. Germany was not mem
toned by the President in his an
nouncement of the plan at his Hyde
Park press conference Friday, but
the object clearly is to prevent a
victorious Germany from getting an
economic stranglehold on Latin
America. 1t is only by some such
project as this, the President and
his advisers are convinced, that the
countries to the south of us can be
saved-if Germany keeps on win.
ming the war-from having to trade
with Germany on her own terms.
Fighting Fire With Fire.
Economic fire would be fought
with fire.
1t is estimated that operation of
the cartel would cost the United
States, at least at the start, some
$3.50 100000 year. But this, it Is
contended, would be a small price to
pay for the prevention of German
trade domination. which inevitably
would bring political domination, of
Latin America.
What is in mind, the President
said. is the creation of IAN effec-
tive system of joint marketing Of
the important staple products of the
American republics" - in other
words, gigantic pool with suff1-
cient resources to enable it to COM
pete with the vast politico- economic
system that is one of the aims of
German conquest. Only a
crooked" mentality. Mr.. Roose-
velt said, would see in the scheme
any proposal to bring in South
American wheat and beef in COM
petition with American farmers.
America, Incorporated, If the plan
goes through. will be this country's
answer to Germany, Incorporated.
The prospect is an accurate measure
Of the shattering and far-reaching
changes that are being wrought in
the worlds economy.
Wallace's Idea.
Back of the maturing plan for a
north-south trade axis is the study
OF a group of administration ad-
visers. If any one of them can be
singled out, more than another, as
the author it is Secretary of Agri-
culture Wallace. The imaginative
mind of Mr.. Wallace has been work.
ing for long time on ways of i'm
proving the trade and cultural re-
lations of this country and Latin
America. He told the American Po-
htical Science Association here last
year that Latin America offered
great possibilities of becoming the
substitute for the land frontier which
disappeared in the United States
early in this century. How Mr..
Wallace's thinking along these lines
has been stimulated by the war may
be seen from a speech he made the
other day at Bennington, VT, in
which one can find the outlines of
America, Incorporated, and the rea-
sons behind it.
Reasons Behind II
If Germany should win, he said,
the world would be divided into four
great spheres of influence. One
would be the German-controlled
area OF Europe. Africa and the one
time colonies Of France and Britain
in Asia. Another would be North
and South America, with possibly
Australia and New Zealand in
cluded. CLEARLY these are the cours-
tries which the President had in
mind when he said that states out
side the Americas might be invited
into the proposed union) No. 3
would be Russia and No. 4 Japan.
If Germany WINS" he said. "she
will have the complete resources of
the European and A frican continents
and a slave population of 10000, 900
people. She will be more powerful
in many respects than all the New
World put together =.
"The American public is not even
yet awake to the magnitude Of the
problem we are facing.
If huge Germania corporation
were to control the purchase of all
the exports Of agricultural products
from the New World to Europe, the
effect would be felt on every farm
and In every home in the New
World"
Point Is Illustrated.
He gave numerous examples to
show the extent to which South
America Is dependent on Europe for
her export markets-the extent,
therefore, to which the economic
pioneers OF winning Germany
could be used on the trade and
political relations between Germany
and South America. The greater
part Of the Latin American agri-
cultural products normally sent to
Europe come from Brazil and Argen-
tina, countries rich In potentialities,
with small populations and with
racial minorities whose sympathies
may be with Germany and Italy"
1.-THE Germans" he said, can.
not help looking at Brazil and Ar.
gentina as two of the four choicest
fur-bearing animals on this hemi-
sphere. -
1T may be seen, therefore, that
this entire hemisphere has q tre-
mendous stake in the European
market. II Europe organizes her
SELF 50 that all buying is done
through one corporation, 1t is obvi-
Gus that this hemisphere will have
before 1t q job Of consultation about
the immediate organization of an
effective bartering agency suficient-
~ powerful to play the same game
as the Germans"
Thie {a {nh ,,t>t~l.