Evening star., 1941-02-01
Fear of Ineffectiyeness
OF Cooperation Removed
BY ALLEN HADEN.

Chicago Daily News Foreign Correspondent.
MONTEVIDEO, Feb. 1.-Fears as
to ineffectiveness of regional Coop
Grafton seem to have largely disap-
peared today at the regional eco
nomic conference of the River
Plate.
This optimistic turn follows Ar
gentina,s acceptance of amendments
to its draft convention for GUS
toms union. Argentinas proposal
originally implied bilateral arrange
ments for customs union, but the
subcommittee on customs affairs
transformed it to assume regional
character.
There is also the impression here
today that the five-nation parley
would approve a draft convention
under which, IN order to assist
Bolivian and Paraguayan trade, Ar
gentina, Brazil and Uruguay would
renounce certain benefits to which
they are entitled by the most-fav-
ordination clause.
Paraguay's and Bolivia's Foreign
Ministers, at any rate, appear sat
1sf1ed by the progress made so far.
2 Important Topics Remain.
Two important topics remain to
be discussed by the conference:
Free transit and navigation. Free
transit has partially been salts
fled with the approval of the
project offered for the establish
ment of free port zones. The sub
ject of navigation-a fundamental
issue-consists of deciding which of
many possible forms the proposal
for permanent River Plate COM
mission will take.
Argentina is sticking to her posi-
tion regarding control of the River
Parana and the River Plate, and
is suggesting mixed bilaterial COM
missions. But the other countries
are holding out for general COM
mission to supervise the whole River
Plate system.
In the sompleSt terms, the small
countries want reduced freight
rates within the most important
sections of the system, which . is
that portion of the Parana River
fiowin gthrough Argentine territory.
The small countries are at either
end Of that stretch. No one has yet
dared to state the case so bluntly,
within the conference, however.
Whether Peru and Chile will ad-
here to the convention renounclng.
in favor of Paraguay and Bolivia.
benefits under the most-favored-
nation clause, is not known here.
Speculation is also premature, since
the convention is not yet in final
form.
Brazil, Argentina and Uruguay
are able to consider reduction in
tariffs to Paraguay and Bolivia, with
consequent reduction in their GUS
toms revenue, because of the small
amount of export trade which those
two little countries have with their
neighbors. In that connection the
conference has made liberal use of
the Inter American statistical year
book prepared by Raul Migone, the
Argentine delegate, recently pub
lished simultaneously in Argentina,
Brazil and the United States.
Rumors that the regional Pacific
conference, proposed by Bolivia, is
under consideration in Chile, con-
tinued to circulate here. Observers
point to the Chilean commercial
mission about to visit La Paz, the
Bolivian capital In this same man
ner, discussions by the Uruguayan-
Argentine commercial mission pre-
ceded the present regional confer
ence. Senor Buero, the Uruguayan
delegate and chairman Of the SEN
ate Foreign Affairs Committee, re-
turned today from Chile
Calling of regional Pacific con-
ference is believed here to depend
considerably upon the effectiveness
Of the present conference.
tcopyright, 1941, by Chicago Daily News0