Evening star., 1940-06-19
Latin America
Continued From First Page J

since it is not member of the Pan
American Union, would be unrepre-
sented at the Ministers emergency
conference. However, it is expected
the relation of Canada, a British
dominion, to the other New World
nations will be subject for at least
serious informal discussion among
the delegates.
Havana, Cuba. will be the site of the
emergency conference. The Cuban
government has been consulted on
this matter and has given its con-
sent. The Ministers at their Panama
meeting last autumn agreed to meet
IN Panama for consultation on
whatever developments may have
occurred since the previous meet
ing.
Meanwhile, it was learned that the
hrst interest of the United States
Government in cementing Western
Hemisphere political and economic
ties lies in adjustment of Latin
American foreign debt default.
Trade Development Sought.
The White House advisers work.
ing on Latin American affairs are
tentatively considering sponsoring a
broad program which would turn
this country into the economic we'll
spring for all the Americas, supply
Ing funds for internal development
OF the Latin republics and guaran-
teelng markets for all Latin Ameri-
can export products. A high
place source Of information said the
President probably will announce
his detailed program in a week.
Latin American nations are in de-
fault on about 81 900, 900 900 of bonds
owned by United States investors.
Most OF these securities bear about
6 per cent interest, but the United
States Treasury recently advised, in
the case of Colombia, that COM
promises at 3 per cent be sought.
One popular proposal in admin
lstration circles to help unity New
World trade is revival of the $780,
100000 Latin American loan pro-
gram, which was part of the So
O0,000,000 lending bill killed by
Congress last year.
Criticisms of the plan have been
based largely on the poor debt
paying record of Latin America.
Proponents are led by Warren Lee
Pierson, president of the Export
Import Bank. He believes Latin
American nations will pay on new
loans If the funds are used for
productive purposes such as rail-
roads. industries and agriculture.
which will furnish the money to pay
back the loans.
U. S. Monopoly Essential.
Mr.. Roosevelt talked at length
yesterday with Secretary of Agri-
culture Wallace on the proposal for
the formation of Western Hemis-
phere cartel to handle all Western
Hemisphere exports to Europe.
There is discussion of setting up a
United States corporation to spend
81 900 ,000, 900 in buying Latin Amer
ica's normal export goods and in re-
selling them in Europe at whatever
terms the corporation can reach.
The plan would necessitate an
agreement of all the American Ma
tions to give this country a monop-
oily of trade between Europe and the
New World. 1t is estimated the
corporation would lose about $780,
100000 year, but the United States
would charge it to national defense.
The purpose of this trade scheme
would be to eliminate the prospect
of German domination of Latin
American export interests.
Another feature of this new trade
arrangement would be exchange of
Latin American for present sources
IN other parts of the world for
goods which this country imports.
Russia, for instance, might be dis
placed as sources of manganese and
platinum and Brazil and Cuba sub
stituted as sources of the first two
and Colombia thu second. Bolivia