Evening star., 1950-02-26


place in Havana in January when
Venezuela. One of the largest Of
all purchases from Latin America
has been Venezuelan oil. Britain
is now cutting her imports from
all dollar countries to the bone.
and especially her imports of dol
lar oil.
Brazil, Colombia and other cof-
Reproducing countries of South
America which supply us with the
major portion of our imports,
have reaped tremendous dollar
harvest within the past year. But
now that the people OF this coun-
try realize there is no actual
shortage of coffee, and that the
recent sky-rocketing of prices are
not justified, they are not going
to continue to pay exorbitant
prices. There is bound to be a re-
duction of dollar income in the
South American coffee countries.
Our trade with Argentina had
already been reduced to a trickle
OF its former volume, and is not
likely to increase appreciably
within the immediate future. Un-
less war becomes more imminent
our imports of Chilean and Peru
Wan copper are not likely to in
crease. In fact, there is a possi-
bility of tariff restrictions being
imposed on the imports of foreign
copper into the United States.
These and other threats to the
economic situation in the 10
countries of South America are
worrying Washington. The South
American political picture is al
ready dark enough. Peru, CO.
lombia, Venezuela, Argentina and
Paraguay are under the rule Of
one-man dictatorship or military
juntas. Serious unrest haunts
Bolivia and Ecuador. The gov
ernment of President Gonzalez
Videla of Chile has just wealth.
cred another serious cabinet crisis
which had been brought on by q
threat of a general strike.
Brazil Faces Crisis
Brazil, the very country which
is host to the United States Am
bassadors, is facing grave politi-
cal crisis. This is election year in
the giant republic. The two
leading political parties, one the
Government Party, are divided
among themselves as to both can
didates and policies.
Meantime, 1t is not likely that
either Of these parties could con-
troll the election. Leaders in both
groups have been trying to get
together for several months on a
common candidate, but so far all
efforts have failed. On the side
lines, the military. which means
the army, still the actual power
in the country, is eying the situa-
ton with the view of taking over,
If the politicians fail to put up a
united front. The army will prob
ably insist upon the Government
Party indorsing a man Of their
own choice, general, of course.
On the other hand, even if the
Government and opposition par
ties are allowed to put up their
own civilian candidates and pro-
ceed with the election, former
dictator Getulio Vargas and his
Labor Party may well become the
balance of power. Vargas is still
the shrewdest politician in Brazil
and for the purposes of the COM
ing election he is playing all the
minority groups against the Gov
eminent Party, The military are
more afraid of him than of any
other man in the South American
nation.
Reds Alert for Slump
Meantime, the Communists, per-
haps not numerous enough Of
themselves to take over any of the
important countries, are organ
lied to take advantage of any and
all political disturbances in Brazil,
Chile, Venezuela and, the others.
Most of all. they would use any
serious economic slump as a means
Of further discrediting the United
States in all of the Southern
nations.
They are already chorusing the
old refrain, "The Yankees. give
billions to Europe. They spend
tremendous sums to build up for
mer enemy states-Germany, Italy
and Japan. But for you, who stood
with them and sacrificed during
the war, they offer nothing. They
even threaten to cut off imports Of
Venezuelan oil and to tax Chilian
and Peruvian copper" So runs tho
comment in IL countries which
I have recently visited.
AS Washington sees it, there
are only two ways to put more
dollars into these countries and
neither way will work unless tho
Latins Cooperate. First, to in
crease the flow Of trade. Here
the Latins as well as the United
States will have to make con-
cessions. Strangely enough, all
the South American nations i'm
pose heavy tariffs and restrictions
on exports. the things they have
to sell us. This not only cuts
down sales to this country, but
arouses sentiment for retaliation.
Chileans are concerned over talk
about this country putting a tax
of 2 cents a pound on copper.
Meantime. the export tax on cop
per is the main source of the Chill
can governments revenue.
Brazilian coffee comes into the
United States duty free. but the
Brazilian federal and state gov
ernments impose various taxes
and excises to the tune of a dollar