The Chronicle-star combined with the Moss Point advertiser., 1948-06-25
What 1t Means ~.
Latin America Resents European Aid
BY SIGRID ARNE
The Associated Press

Inc Associated +
Washington.-Below the Rio
Grande, from Mexico to Argen-
tina, there are men, both in and
out of the government, who
resent the large chunks of Am
erican aid going to Europe. Lat
in resentment on the subject
is one of the largest hurdles
the State Department has ahead
of it in keeping friendly nations
tied to the American plan for
keeping the peace and rebuild
ing the peaceful sections of the
world.
Latin resentment is not
caused so much because Ameri-
can aid-much of it charity-is
going to another part of the
world. It is rather because the
Latins want American machin-
cry to build up their own man.
ufacturing industries. And they
fear that the Marshall plan for
Europe will send most of the
United States extra machinery
across the Atlantic and that lit
tie machinery will be left to
ship south to the Latin coun-
tries. And there is another diff
ference. The Latins are not so
much interested in aid-free help
AS they are in just the right
to buy the machinery which is
now very short in the world.
Many of the Latin nations are
able to pay cash if they can
just get the ALLEGATIONS.
Repeated Pleas
In conference after confer
ence they have made this plea
for machinery. At the United
Nations, at the Havana confer
ence on world trade, and at the
recent I~nter-American confer
eace at Bogota, the Latins have
argued that they must have the
machines to set up some manu-
featuring industries. Historic
ally, the Latin nations have
supplied the industrial nations
to the north with the raw ma
terials for their factories and
grocery stores - minerals,
grains, leather, and meats. In
return, they have bought autos,
locomotives, radios, clothes,
electrical equipment, and so on.
Now they are determined to
turn out some of their own
manufactured goods. But they
need our machines to get a good
start. In particular they want
machines for transportation,
power equipment, and some
machines to turn out the most
esSentlal consumers goods. yt
Many Arguments
From our side, various u. S.
officials have argued: (D The
U. S. can't help Europe and
Latin America at the same
time to the same degree. (2)
Peace and revived trade in
Western Europe (Which will be
helped by the Marshall plan) is
just as important to Latin Am
erica as it is to the United
States. (3) Many of the dol
lars which Europe gets through
the Marshall plan will be spent
in Latin America. And Latin
America will be free, in turn,
to spend those dollars in the
United States markets. (4) Lat
in American governments must
be careful to industrialize grad
ually enough so that when they
get machines. their people will
be able to run them efficiently,
as fast as they arrive. (5) Some
Latin countries are already buy
ing more than they can afford,
and hence should pull in their
belts for a while before they
60 deeper in debt for more for
eign purchases. (6) At the same
time the Latins are demanding
machines for their own manu-
featuring industries, they are
talking about new tariffs to
keep out foreign goods. So, in
ing American goods. So, in
effect, the United States is be-
ing asked to help start a Latin
American manufacturing indus
try. AT the same time U. S. fac
tories are being denied the
right to sell in Latin American
markets.
Talk on this subject with the
Latin American countries has
been intense for some time.
Both sides show good will in
trying to get a friendly solution.
Both the North and South Am