Evening star., 1954-11-22
u. 5. Aid Policies
Come Under Fire
Al Economic Talks

y I
QIjINTANDINHA, RIasil. Nov.
22.-Twenty-one American ma
tions. met here today tor In eco-.
nomic conference that As expect
ed I'd bring United States policy
toward her Latin neighbors un-
der heavy fire.
Statements expressing hem
ispheric solidarity were heard on
all sides as the $50 delegates and
experts to the Inter American
Economic Conference gathered
at this hill resort 40 miles from
Rio de Janeiro. But the United
States. key country in all major
economic and financial projects,
already has indicated that she
would 60 only a short way
toward meeting the demands
that other nations were prepar-
ing.
Brazilian President Joao Cafe
Filho will address the opening
plenary session this afternoon.
The delegates also are sched-
uled to name a Brazilian, prob
ably Finance Minister Eugenio
Guidin, as conference chairman
and start forming committees.
Humphrey to Speak,
United States Secretary of the
Treasury George Humphrey,
chief Of his governments del
egation, arrived last night. He
said the United States already
"has shown its desire in many
ways" to work with her hemi-
sphere partners to develop their
power, transportation and trade.
He added he was confident the
current meeting would bring an
even greater economic buildup.
The secretary is expected to un-
fold the details of Washington's
policy in a speech tomorrow or
Wednesday.
Other delegates withheld criti-
cisnl until the United States
position was made known Of
f1cially, but there was mounting
sentiment that the United
States is neglecting her Latin
partners in apportioning her aid
funds around the world.
The Latin Americans here are
seeking system of higher, sta
bilized prices for their products
and greater capital investments.
Price Action Sought.
Chilean Finance Minister
Jorge Prat, who was instru-
mental in having the meeting
called, said he would introduce
measures to establish an inter-
American commodities commits
sion to negotiate prices on raw
materials from South America.
That idea appeared to be
gaining support. Brazil and CO.
lombia want an agreement to
stabilize coffee prices. Chile
wants the same thing for cop
per. With Bolivia, it's tin-with
Mexico and Peru, lead and zinc;
with Cuba, sugar. Ks
Washington has served hokice
at various times it does not de-
sire to undertake any interna-
tional system of price fixing, in
cluding stockpiling of surplus
products other than for defense
purposes.
Financial Proposals.
In the investment field, the
South Americans claim that
their major sources of funds
private capital, the United States
Export Import Bank and the
World Bank-are inadequate for
their needs. Mr.. Prat said Chile
would call for formation Of an
inter-American bank capitalized
at more than $312 billion. The
Economic Commission for Latin
America also is recommending q
10-year investment program OF
q billion dollars annually.
The United States is not max
ing plans in such big terms. Mr..
Humphrey is expected to pros
pose a new international finance
corporation with 500 million
capital to aid underdeveloped
areas.
Brazil, as host nation, has
moved informally to end the
talks by December /. Other
delegations say they are willing
to make that target date, but
don't expect business to be fin
ished by then. Up for consider
alton, besides the major issues
of trade and economic develop
ment, are such matters as trade
restrictions, technical cooper
alton and transportation.