Evening star., 1941-07-27
Nazis Create Powder Barrel
Situation in Latin America
u. S. Counter Propaganda Seen as Producing
Quietins Effect, but Test May Come on
Possible Peace Terms of Hitler
Br RAYMOND p. Brandt
BY Raymond p. Brandt

releases and publications. which have
been less effective. The State Depart
ment has copies of German dossiers on
Latin Americans, said to be more COM
prehensive than our own selective serv-
ice registrations. These are used to
remind some Latin Americans that they
have relatives in Germany or Italy;
others that their German business con-
nections are known and can be broken
off and still others that certain scandals
might be given publicity.
Four Points of Attack.
The general Nazi propaganda has four
categories: 1l The inevitability Of
Hitler victory in Europe; t2l the i'm
perialism' of the COLOSSUS of the
North: (3) the Complementary econ
omies of Latin America and Europe, and
"a the "disunity" of this country. On
the last-named point the United States
is pictured in publications of the mi
nority as completely disorganized politi-
cally and economically. The speeches
of Lindbergh and Senators Wheeler and
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those of President Roosevelt and his
cabinet officers. Strikes and wage in
creases are exaggerated -
The effectiveness of the Nazi propa-
ganda compels this Government to rely on
step-by-step negotiations even for hemi-
sphere defense. One major objective
is naval and air bases. yet these bases
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Uruguay, Chile. Peru, Ecuador and CO.
lombia for two reasonS-frst, the Latin
Americans would be told by the Ger
mans that this was the first step to in
vasion by the United States. and second,
the animosities aroused might be so
great that the bases would eventually go
into German hands for an attack against
the Panama Canal
Although handicapped by ethical re-
strictions. comparable even if funds had
been available. the American agencies
have made considerable headWay against
the intensified Nazi activities Regimes
now in power are beginning to realize
that the American policy is to keep them
in office and dollar diplomacy has
taken new turns.
Sell More to United States.
With their European markets cut off,
the Latin American firms are selling
more and more goods to the United
States. and arrangements have been
concluded with Brazil. Bolivia and Mexi-
co for puchase of all strategic materials
produceG in thoSe countries These mo-
terials include copper, tin, mercury and
tungsten, all of which are vitality neces-
sary for the Axis war machines. Agree
ments with other countries are in pros
pect.
The freezing of foreign assets by our
Treasury Department. more stringent ex-
port control and PRONUNCIATION of the
blacklist are greatly reducing funds
formerly used by Nazis for propaganda
and espionage.
These trade restrictions however. have
a reverse side. Occasionally German
ship gets through the British blockade
loaded with finished products. The Ger
mans announced: These are the goods
and the prices we'd offer you if it were
not for the piratical British and the
money grabbing Americans" This prop
aganda is all the more effective as ma
terials and products in the United States,
such as steel, machine tools, automo-
biles, refrigerators. office equipment, are
diverted or curtailed by the defense and
lease-lend programs.
The State Department and Nelson
Rockefellers Cultural Relations Division
have fought vigorously with the Office of
Production Management, the Office of
Price Administration and Civilian Sup
ply and the Maritime Commission for
goods and ships for the Latin American
trade. and are none too we'll pleased with
the results.
Real Test Possible Soon.
The blacklist is also likely to cause
trouble. Germans have married into
some of the upper political and CONNER
cial families and as these restrictions are
tightened there probably will be protests
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