Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-22
Mistaken Arqentinu

AC distance OF ten tQOuSdnQ
miles we cannot judge with certainty
the reasons which impelled the
Argentine government to suspend
imports of goods from the United
States. According to the Associated
Press, the government in Buenos
Aires attributes the step to lack of
dollar exchange. Perhaps this is
true. In the best of times, the
United States sells much more to
Argentina than she buys from ar
gentina. And during 1910 we have
bought no more goods from Argen-
tina than we bought in previous
years, while Argentina has increased
by forty per cent her purchases
in the United States. Lack of eX-
change may be reason but it is no
excuse. If there is a crisis in dollar
exchange in BuenoS Aires, it is Ar
gentina's fault that her interna-
tional economic relations are so ar
ranged that her dealings with any
one country are dependent on the
amount of that country's exchange
present in Argentina at any one
time.
1t would be invidious to suggest
that the Argentine decision was in
Spired by desire to give Argentina
better bargaining position in the
impending conversations for a loan
from the United States with Warren
Pierson, president of the Export
Import Bank, who is on his way to
BuenoS Aires. Perhaps the ruling
and the visit are wholly coincidental.
What is more to the point is that
Argentina for years has been pur-
suing a policy which would have
been defenSible in the days of mer-
cantiliSt trading, but which in our
times is associated with the CONNER
cial policy of the Germans. We can
not emphasize too strongly that
Argentina is not Influenced in this
policy by Germany. But whether it
is a German policy or an Argentine
policy, it is economically wrong to
base a national commerce on
strictly bilateral viewpoint, to try to
balance imports evenly against ex-
ports to any one country
The sad story is that Great Brit
ain, whom this country is striving so
eagerly to aid in her time of stress,
is our chief problem with relation to
Argentina. The Roca Runciman
agreement of 1885 put British COM
merce in Argentina on a preferred
basis. And this situation was in
tensified when the war came. The
war made Argentina more COM
petitor than ever before with the
United States for the British market.
At a time when commerce on the
seas was dangerous, the United
States was the obvious place for Eng
land to buy when seeking goods she
could get here or in Argentina. The
United States is six days by ship
from England, Argentina eighteen
days from England. In order to re-
tain its favorable position with Eng
land, Argentina agreed to a system
whereby all pound sterling exchange
accruing to Argentina from sales to
England is kept in a blocked account
as a credit in the Bank of England.
So Argentina gets her hands on no
pounds sterling For goods sold to
England she can but take goods in
return. No longer does she obtain
English exchange that once she
could have used in dealing with the
United States.
For a momentary gain, then, Ar
gentina endangers her whole econ
Omy by tying it to the fortunes of
one nation far overseas. It is true
that this nation is a nation which
we all hope and are confident will
be victorious in its gallant fight
against an ignoble enemy, but never
theleSs England is but one nation
among many. Now is the time when
it would be wise for Argentina to
consider reorientation of her for
eign commercial policy with a view to
developing system whereby Argen-
tina might treat commercially on an
equal basis with all the countries of
the world which in turn would treat
her on an equal basis. There is no
reason why the most elemental fair
ness should not animate the relations
of two of the greatest Western Henri
sphere nations an observation
which applies with equal force to
the attitude of the United States
as well as that of Argentina.
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