Evening star., 1941-07-19
Hemisphere Trade
Refutes Propaganda
Spread by Nazis
United Stotes' Buying
Absorbs SurpIuses
From lutin America
BY OLIVER MCKEE.

Despite the propaganda of fear
which Germany's agents showered
on Latin America in 1940," the
United States will increasingly be
able to absorb Latin American ex-
port surpluses which formerly went
to Europe. the Commerce Depart
ment declared today.
Writing in the current issue Of
Foreign Commerce Weekly, William
LaVarre, chief of the American Re
publics unit, estimated that 1941
imports from Latin America will ex-
ceed Sl,020. .000. 900. or 100 per cent
more than the normal value Of Latin
Americas exports to continental
Europe.
In recent years, our exports to
the other American republics have
exceeded imports by more than
500 900, 900. The trend now has been
reversed and during the first four
months of 194l purchases from
Latin America have outrun exports
by $69 100000, with indications Of
an excess of imports over exports
for the current year of $3.50 900 900.
Basic Answer to Nazis.
This evolution creates our basic
answer to the Nazi economists and
propagandists who, in 1910, attempt
American neighbors by dire pro-
phecies that, blocked from European
markets, the people and govern
mentS of South. Central and Carib-
bean America, could not possibly sell
their surplus produce until Germany
befriended them by breaking the
British blockade Of the Atlantic-an
event which the Germans, again in
accurately, prophesied for last Sep
tember,' MIR. La Varre declared.
With respect to Argentina, ap-
parently more dependent on Euro
pean markets than any other South
American country, Nazi prophecies
have proved notably inaccurate, Mr..
La Varre asserted. AS a result Of
expanding purchases by the United
States, Argentina, during the first
five months of 1941, accumulated an
export balance of more than 1872
600, 900 pesos, compared with an i'm
port balance of 10000, 900 pesos for
1910.
In the case of Uruguay, whose
economy and prosperity were based
for years on a consumer market in
Europe for its agricultural exports,
and where the German prophets in
1QA0 hod rtlpt,lorIy SIz
a l94l calamity, if European trade
were not possible, the United States
has absorbed, and will increasingly
absorb, potential losses in trans-At-
lantic trade to such an extent that
Uruguay may have favorable
trade balance with the United States
by the end of 194l of $4,000 900
pesos" Mr.. LaVarre said.
Heavy Metal Purchases.
THE German-prophesied losses in
customers for Chile, Bolivia and
Peru are likewise being absorbed by
the United States. first through
heavy purchases of minerals and
metals formerly sold to Europe, and
second, by the mounting require
ments of the United States and the
British Empires industries, which.
under the Governments plan of
purchasing basic raw materials from
Latin America wherever possible,
have increased their imports from
these mining countries"
In the first quarter of 194l Brazil
had a favorable balance in its trade
with the United States of approx
mately $24 900 900, as compared with
unfavorable balance OF $4,000, 900
for the same period last year.
Economic problems of the Amer
icas are now being met by co-opera-
tive action, Mr.. La Varre pointed
out. 1T has been we'll known for
years that one of the economic as
we'll as political dangers evident
throughout Pan-America was the
existence in many important dis
tricts of anti-American commercial
and propaganda organizations,
many of which were highly regi-
mented to serve the purpose OF Eu-
ropean dictation," he said.
The growing emergencies, and
coincident proof of these dangers
has produced vigilant economic
weapons-export controls. priorities,
blacklists and Treasury permits-by
which all such economic activities
will be controlled and erased by
mutual action of the American re-
publics Today. midway in 1941,
the statistics show that Europe's
participation in Latin Americas
trade has virtually disappeared
without any catastrophes. economic,
social or political being visible as a
result"