Evening star., 1949-12-26
Big Increase Seen
In j, ). investments
In Foreign Nations
South America, Afrieo
Offer Vast Areas for
Economic Development

OTTeT NQSf AISuS IOI
Economic Development
By Ernie Hill
Foreign Correspondent Of Tbs Star and
the Chicago Daily News
LIMA, Peru. Dec. 26.-The
United States is entering an era
of greatly expanded investments
abroad.
World War crumbled the walls
OF economic isolation: World War
II obliterated them.
In Canada. rich with timber
and now with oil, and in regen-
Grating industrial Europe, dollars
are being put to work to produce
new wealth for the people of those
areas and for those who furnish
and operate the means of produc-
ton.
Nevertheless, the extent to
which Uncle Sam becomes for
eign investor depends largely
upon how much machinery, capi-
tai and technical know-how is
poured into the vast undeveloped
continents Of the world-Africa
and South America.
$50, 900, 100000 Demand Seen.
In the great southern corNi>
nents, $50. .000. 100000 could be in
vested and actually may be in
vested during in the next 10
years. That figure is one fire.
quently used in surveys.
American foreign investments,
negligible in 1900, had grown to
$4,000, 10000 by 1919 and to more
than $11, 100000 by 1948.
Aside from the purely material
act of erecting Notwithstanding
minerals from the ground, pump
ing petroleum from great depth,
building power plants and laying
out transportation networks-de-
velopment of health conditions
and introduction of long overdue
educational systems.
. From the iron-rich mountains
of Liberia in West Africa to the
petroleum saturated sands Of the
upper reaches Of the Peruvian
Amazon, American technicians
are churning around with jeeps,
blue prints and maps.
Sees Huge Investments Go In.
In Africa and South America
during the past 10 months, I have
seen plans for at least 81 900 ,000,-
900 worth of American capital in
vestment and I know that many
times that amount exists.
Many of these undeveloped
areas lack capital, machinery and
trained personnel to put them to
work. (The Belgians in the Con-
go and the British in some African
colonies are exceptions)
In one instance, it is just this
easy:
A Cleveland busline operator
has the money to buy new Amer
lean buses. The Brazilians lack
dollars. They have Brazilian
money. So the two are organiz-
ing a mixed corporation with the
American furnishing rs new buses
and mechanics as his contribu-
ton toward a new Rio-to-Sao
Paula busline.
Somewhere in the picture OF
opening new frontiers is the So
called Point -Four Program OF
President Truman. In its present
form, it asks Congress for a COM
paratively modest appropriation
of $35, 900 900 to help raise living
standards in Africa, South Ameri-
ca and Asia. (This is to be sup
plemented with s50.000,000 from
other sources and from participat-
ing countries themselveso
This amount of money is trifling
In comparison with the private
investment billions concerned.
Provides Certain Guarantees.
Yet, President Truman's Point
Four Program can be important
because it goes on to propose that
the United States encourage in
vestments abroad by obtaining
guarantees against appropriations
in unstable countries and in as
suring that pesos earned IN Chile,
for instance, can be converted
into dollars in the United States.
Whether Congress ever passes
the appropriations bill is unim-
portant in comparison with the
Government obtaining guarantees
that investments will not be. wiped
out-at the same time assuring
those countries that they and
their people will receive the major
benefits from these investments.
Capital investments can best
be fostered when there exist favor
able political, social and economic
conditions and guarantees Of fair
treatment to the investor" says
United States Ambassador Her.
schel v. johnson to Brazil. "At
the same time, such guarantees
must be balanced with equally as
effective guarantees in the inter-
ests of the people whose resources
and whose labor go into the pro-
duction being developed"
The only vociferous opponents
of this program of mutual benefits
are the Communists and a few
intense nationalistS and Yankee
haters.
Communists abroad do not want
to see their countries aided by
American capital and by mutual
development programs which will
raise standards of living. This
will give them less reason for
stirring economic and social dis
content.
"The petroleum is ours" the
Communists scribble on walls all
over Brazil in an effort to dis
courage the government from
permitting foreign companies to
explore for petroleum. Peru Is
self sustaining in petroleum prod
Ilcts hecaI1Se il has r,ermitted for