Diario las Américas., 1958-02-25

A :EECH BY SEN. sMATHERS

On February II, 1858, George Smathers, the Senator
from Florida, gave in the Senate a speech of historical
Importance which win establish an era in Inter-American
relations. He talked about the position of the United
State concerning the Latin American Republics.
Senator SmatherS lamented that, perhaps because of
the proximity o. %neghbOrS, world and historical perpective
are not given the problems of a region that already has a
population of 1873 million, compared with liz million of
the United States a population which, by the end of the
century, will have reached 800 million. The American
Republics, Just beginning to grow, have the greatest wealth
in the world and, as in anv growing process, it is during
adolescence that support and help are required. Even
during this growing up period, a country like VaneZuela,
for example, is her biggest customer in Latin America,
and one of the leading in the world, followed by Mexico,
Brazil, and Others. Latin America abSOrbS 80 per cent Of
the total us. exports; but, nevertheless, when it comes to
aid, it seems there is ScantineSS because she is considered
safe. While millions are scattered in other parts of the
world, and the Senator does not object but rather applaudS
that aid, no steps are take for a guaranteed trade between
the Americas, with price sterilization, with enough invest
mentS, of private and public capital, with assurances that
no restrictions or limitations will be set on the entry, OF
raw materials into the United States. He recalls that Latin
American dependency on the U. S. market is enormous:
Colombia, Mexico and Cuba sell twO-thirds of their total
exports to this country; whereas Peru'S exports of lead
and zinc to the United States represent $40 of her total
foreign sales. VaneZuelaS oil, much attacked for its i'm
%pOrtatiOn into the United States and representing so per
cent of total Venezuelan exports, is 3 product which in
peacetime compliments and, in times of emergency, his:
tory has demonstrated, Venezuela is the only foreign source
there is from which to obtain this fuel. Is the United
States, the Senator asks, buying just to buy? No, because
each dollar paid for raw materials and other goods from
Latin America returns to the United States to purchase
aItClc manufactured throughput VII itnSIn II DFcduIH
of each and every one of the states of the Union.
Senator Smathers, with the vision of a statesman,
declares that "the solution of the economic problems Of
Latin America rests on more loans, a stable trade policy,
and inducements to American private enterprise to invest
in these countries on an increasingly larger Seae". And
then, he adds, "Inter American economic problem have
been explored to death in the last five years. But the
United States has yet to come up with a bold plan to make
the Hemisphere a real stronghold of the free world. Al
though we do not have a plan, we reject virtually all pro-
pOSalS made by Latin America for effective cooperation in
nter-Amercan affairs. l would agree that not all their
proposals would be completely practical for us, but the
point is - we are not coming up with any good alter
natives.
Heretofore, the most favorable step taken has been
the Reciprocal Trade Agreements Act, enacted In 1884
and now a point of national policy; however, as we stated
in a recent editorial, that Act has never been in as much
danger of ~periShing as 1t is now. 1t Is not enough, al.
though it is cOmmendable by all means. Something per.
manent is required = that will prevent the Latin Amer
leans from believing that, in economic affairs, they depend
gency, in times of measinesS, to buy everything, to induce
them to change crops, paying rewarding prices, to intensity
production of certain raw materials for which there will
be no market when peace comes. Such a policy only
results in that, in some countries, defensive measures now
being taken appear as hostile to American trade.
What the Latin Americans require, in the words of
Sen. SmatherS, is ito be assured of stable, consistent trade
policies with the United States so they can plan for the
years ahead without fear that our doors will be opened
wide one moment, then Summarily closed next. A swing.
ing door policy will do us no good in Latin America. We
need long range, consistent, trade policies upon which
we all can rely'.