Milford chronicle., 1960-10-21
OUR LATIN NEIGHBORS


which have been dumped on this countrys
doorstep, that of Latin America is clearly
the most critical. Castro's Cuba, which has
taken to the anti-American, Communist line
at dizzying speed, is, of course, the most
alarming example of this. But most, if not
all, of the Latin American nations are In
varying states of ferment, and the Com
munists, to whom ferment is the very meat
and drink of life, are eager to make the most
of it.
u. S. News and World Report goes into
the problem in detail in its issue of Septem-
Der 49, 1t sets the stage in these words: "As
nations of Latin America see it: 1t is now
or never If faster economic development is
to check the spread of Communism in this
Hemisphere.
"The cost? A minimum of billion dol
lars year in the form of aid, private in
vestment and loans-all from the United
States. That is more than twice the sum that
now is flowing into Latin America and also
about twice as much as now planned.
"The alternative, as Latin American
planners see it. More Castros. More trou-
BILE for the United States. A threat to in
.vestments already made
These planners lay heavy stress on speed.
They welcomed a new program OF HemlS-
pheric aid recently detailed by Under Sec
retary of State Dillon, which would start
with fund of $500 million to be used for
education, housing land reform and other
such projects But clearly, the Latin AM
erican leaders are concerned lest too much
time lapse before it can take effect. The
Communist and the other anti-American ele-
ments have no intention of standing by and
waiting for us to move against them.
u. S. News touches on the specific prob
lens that bedevil various of the countries.
The average Brazilian lives on bare SUBJ
cscfo of@ fbo ic To
raise this to $500 in the next 20 years. To
make that possible, Brazil is seeking new
industries, along with trained technicians
and other assets.
The Argentine economy is apparently in
a state of almost total paralysis. To quote
u. S. News, a.. the experts say they cam
not begin to estimate how much outside aid
is needed-because Argentina needs every
thing" One of the most pressing needs is
rail, water and road transportation facili-
ties.
Chile's major problem, the story con-
tinues, is to recover from the earthquake
that caused $3.50 million damage. The coun-
try seeks 500 million year over 10-year
period in foreign investment, and it's laws
are favorable to the foreign investor.
Oil-rich Venezuela wants to develop
other assets-aluminum, steel and chemicals.
Mexico could, according to officials, alb
over a five-year period in addition to the
$3.50 million year it now receives. Accord
ing to u. S. News, Mexico needs housing,
secondary roads, waterworks, education, fer
tilizers, technical assistance, rural electrif-
cation and new construction"
Ecuador, with an average income of
something like 500 year per capita, is
another country that needs practically every
thing.
So it goes, down the list of the Latin
American nations The need, in the view of
Latin American spokesman, is about twice
as great in dollar terms as the countries are
now receiving. How much will come from
this government, how much from private
investment, and how much from other sour
ces such as the World Bank, is a question
that can not be answered as yet. 1t is
problem that the next Administration, like
the present one, will have to grapple with.
Of sheer necessity, every possible step will
have to be taken to block Communist domi-
nation of the nations to the South of us.
LIVING COSTS AND LUXURIES
"Cost of living" quotations are based on
the Consumer Price Index compiled by the
u. S. Bureau of Labor Statistics. What this
index actually measures is not the cost of
living, but the cost of living well.
The index reflects what the average city
family spends to live 1t includes such things
as recreation, beauty shop services and tele-
vision sets. These are luxury items which
few people would consider part of their basic
costs.
The tendency to think of the price index
measuring the cost of living has done a
great deal of economic mischief Many col
lective bargaining contracts are based on this
erroneous assumption. So are welfare bene-
fits in many instances, and even the awards
made by juries in damage suits.