Evening star., 1953-11-22
Lotin America
Milton Eisenhower's Report Is Forerunner
Of Republican Good Neiohbor' Policy
By Don Glossmon

~ SSu
Now that the White House has
released Special Ambassador Milton
EisenhoWer'S final report on last
summers mission to South America,
paradox may develop. After this
report is fully digested and debated,
Milton Eisenhower will likely be
better known in Latin America than
in his native land.
Aided by diplomatic and economic
advisers. DR.. Eisenhower has now
completed his triple mission of ex-
pressing his country's good will
toward the other republics, obtain
ing continental perspective" of
existing conditions and recommend
ing changes in the programs and
policies of the United States.
DR.. Eisenhower aides included
three Assistant Secretaries: States
John M. Cabot, Treasury's Andrew
N. OVERLY and Commences Samuel
w. Anderson. In about five weeks
the party covered all 10 South
American republics.
What DR.. Eisenhower-who calls
himself a social scientist and
learned in South America cannot be
regarded as discoveries in the sense
of bringing to light rare or unknown
phenomena. He did, however, con-
fer with many Latin American
leaders. And he gave considerable
thought to some leading problems.
Moreover, he approached his as
signment with the alert intelligence
of a philosopher and educator,
backed by broad experience in gov
ernment and international planning.
These facts seem to qualify him to
speak on inter-American affairs.
Cultural Ties Stressed
1t was a foregone conclusion that
economic relations would be the nub
of any program for Latin America.
However, the blueprint also stresses
the need for strengthening cultural
relations and expanding the flow Of
ideas and information toward bet
ter understanding Among pan
am1ericaniStaS these are time-worn
phrases, but that does not diminish
their present Importance.
BY proposing a long-range plan
for Surmounting economic obstacles,
the administration is taking the pre-
liminary steps for assuring a con-
speeding Latin Americas develop
ment. Such economic cooperation
becomes more than a gesture of
friendship; it provides a practical
method for reinforcing the buying
power of our southern neighbors
with whom we do a $3.5 billion an
nual business.
The administrations economic
measures will favor those republics
which stimulate the flow of public
and private capital needed for
sound development. Thus our
policy will apply subtle pressure on
those countries which at one time
invite foreign investments and at
the same moment criticize and
legislate\against them. The Eisen-
howers maintain that investors
cannot be driven; rather the host
nations must attract" investors by
creating a favorable investment
climate.
AS matters stand, foreign invest
ment capital avoids countries where
the risk factor is high or where
there is creeping appropriation"
This apt term, which DR.. Eisen-
hover seems to have coined, de-
scribes what takes place when tax
laws or other laws discriminate
against foreign investors.
At least as unhealthy as expro-
priation of the creeping variety is
the outright sort of seizure, such as
plagued American investors in Mex
leo for so many years and cropped
up again last week in leftist-domi-
mated Guatemala's action against
United Fruit.
The most favorable investment
climate prevails in Venezuela, Brazil
and Colombia, but in all the repub-
lies "the need for capital is diff
cult to exaggerate." Cagy investors
soon recognize the subtleties of
creeping appropriation" and coyly
decline to risk their cash. Unfor-
tunately, some Latin Americans be-
lieve that Uncle Sam can order his
nephews to make foreign invest
ments.
Economic misunderstanding are
just about as common in the United