“The supe

SSS

LATIN

By Y. YELYUTIN

Since the beginning of the Sixties,
ind especially after the proclamation
f-the Alliance for Progress program,
Vashington’s propaganda machine
vorked hard to create a myth in the
atin American countries of the “un-

elfishness and generosity” of the |

Jnited States. ~

Not so long ago, at the conference -

‘f Presidents of American countries in
“unta del Este in April of last year,
J.S. President Johnson promised to
wovide his southern neighbours with
n additional $100 million, “study” the
~ossibilities of revising the terms in
te rendering of “aid,” and “take ef-
orts” towards liberalizing the export
arms for Latin American commodities.
However, the practical steps taken
1 recent times by Washington in the
ield of trade and the rendering of eco-
omic “aid” to the Latin American
ountries once again completely de-
troyed the myth about the “unselfish-
ess. and generosity” of the United
‘tates. Having sunk in the quagmire
f enormous spending on the Vietnam
var and the arms drive and encounter-
ag the problem of a balance of pay-
rents deficit and a real danger of
(evaluation of the dollar, the U.S. rul-
ag quarters are now trying to scram-
le out of this fix at the expense of
ther countries and peoples, by shift-
ag part of their financial difficulties
nto their shoulders. |

The ruling circles of the United
itates are least of all troubled by ac-

eleration of the economic and social

dvance of the Latin American coun-
ties. They are only worried by their
wn problems, and, first of all, the
uestion of how, with the least loss
or themselves, to get out of the cur-
ency and financial crisis which is
ripping stronger and stronger the
apitalist world.

About. 500 leaders of U.S. big busi-
ess assembled’in Los Angeles in the
tiddle of .last month. Behind closed
oors, the U.S. industrial and financial
arons tried to find ways to solve the
alance of payment deficit problem. As
sported by the newspaper, Journal of
ommerce and Commercial, the con-

AMERICA

tin stocks accumulated during the

FIC TRIBUNE—JANUARY 10. 1959—Page 8

of the medicines for curing the un-
favorable balance of payments, that
export of capital from the United
States be still more limited and import
of profits increased.

Luis Valiente, a member of the
Chilean National Congress, recently
Stated, with alarm, that each year
major U.S. companies were taking
more and more profits out of his
country to the United States. Accord-
ing to information of the Central Bank
of Brazil, $214 million were brought
into the country in the last three years,
whereas $659 million were taken out
in the form of profits and dividends. In
other words, Brazil lost $445 million.

Thus, the decision of the U.S. ruling
quarters on establishing strict control
over the export of capital leads to a
greater amount of dollars being pump-
ed out of Latin America, to the prob-
lem of the foreign debts of the latter
becoming more acute, to the curtail-
ment of industrial construction, which,

in turn, will lead to a still bigger army.

of unemployed, and, in the final ana-
lysis, tell on the rate of economic de-
velopment of the Latin American
countries.

The United States is also trying to
improve its currency and financial af-
fairs at the expense of trade with
other countries. This is reflected in
Washington’s attempt to increase ex-
ports and reduce imports. The United
States is endeavouring to expand by
two ways.

Firstly, through the obligatory pur-
chase of American goods by Latin
American countries as part of the eco-
nomic “aid” provided them by Wash-
ington. Whereas in the 1966-67 fiscal
year the Latin Americans spent some
80 percent of the entire American
“aid” provided them on the purchase
of goods and payment for services
provided by the U.S.A., in the 1968-
1969 year they, as envisaged by Wash-
ington’s plans, should already spend
for these purposes more than 90 per-

“cent of the entire “aid” provided them

by the United States.

Secondly, the United States is striv-
ing to increase its export by selling
raw material and agricultural produce
surpluses. Last September the Presi-
dent of Comibol, the Bolivian state
mining corporation, condemned the
United States for dumping on the
world market a considerable part of its

j i
ferenc: ;articipants proposed, as one

TO FOE | a OT TTT ee

r-exploitation of

suuanann nnn

Second World War. This resulted in a
drop of prices on Bolivian tin. In-
cidentally, it is generally known that
the problem of prices on raw materials

. produced by them was and remains

one of the most acute problems for
the Latin Americans.

However, beside knocking down
world prices by dumping, U.S. mono-
polies have lately resorted on an ever
wider scale to the artificial reduction
of prices on traditional Latin American
export goods. Thus, for instance, with-
in one year alone—from August 1966
to September 1967—the price on Latin
American coffee on the New York
market fell by 10 percent, the price of
tin by 8 percent and copper by 30 per-
cent. What did the drop of prices on
these goods mean for the Latin Ame-
ricans? ;

For instance, a five percent per
pound cut in the price of coffee for
the Latin American coffee exporting
countries meant a drop of $200 mil-
lion in 1967 in export receipts. A re-
duction of 13 cents per pound of tin
resulted in Bolivia losing almost $8
million. Due to the drop in prices on
oil and iron ore Venezuela in 1967 lost
some $800 million in her trade with
the United States.

Nevertheless, export remains for the
majority of Latin American countries
the main source of currency funds.

‘This is why with every passing year

they have to increase considerably ex-
ports in order to pay for the industrial
goods imported. However, whereas the
physical volume of Latin America’s
export is growing, the purchasing
capacity of the countries of this con-
tinent due to the drop in prices on
raw materials is increasing at a much
lower rate.

By artificially undercutting prices on
Latin American raw materials US.
companies simultaneously established

_ high monopoly prices on machines and

products which they supply to their
southern neighbors. Thus, according to
the data of the Central Bank of Vene-
zuela whereas prices on Venezuelan
export goods (mainly oil and iron ore)
in 1967 dropped by 11 percent as com-
pared with the preceding year, prices
on goods imported from the United
States increased by 10 percent.

The so-called price scissors estab-
lished by the U.S. monopolies continue
undermining and bleeding white Latin
American economy. According to the
data the United Nations Economic
Commission for Latin America, in
1967, Latin American countries lost
$1,600 million as the result of the
unfavorable ratio of prices on the
goods exported and imported by them.
The general secretary of the Organiza-

$1,200 million.

- economic cooperation with all *

tion of American States (OAS)
ed out in one of his statemenl|p
in order to purchase a single “s
now, it is necessary to sell tWis
many sacks of coffee or tons of
ore, then several years ago. W/!
in 1950, Colombians, for i
could purchose an American We
for 17 sacks of coffee, at preset)
have to pay 57 sacks of coffee (*

In order to restrict imports anit

ficit, Washington has set up ”)°
more artificial barriers, with reg?‘
Latin American goods. “Duriné
year, the U.S. substantially ™
the supply, to its own market, of
American oil, textiles, meat and
goods. As the result of such W#>
ton policy, the volume of Latin ©
rican exports to the U.S.A. if 7
fell by $300 million.

That is not all either—poH

tives in Congress, have submitt®:
consideration several new bills %,
at further restricting the im
textiles, lead, zinc, oil, iron Of),
other goods, which are of
interest to Latin American co
If these bills are adopted, Latin
rican exports will be cut by

All these measures, taken by
ington for reducing its balance
ments deficit and saving the
are reminiscent of America’s #
in 1957-1958, when the U.S. had
ferred a substantial part of i
ficulties, as the result of the ec”
slump in the U.S.A., to the sho?
of its southern neighbors. It is ish
same way that Washington is
ing now. The fact that all thesé
ures can lead to a very seri0
order of the economy and fina
Latin American countries, to
duction of the rate of their dé
ment, to the deterioration of
ready very low living standa
broad sections of the populatio®
not in the least trouble the U.S.
circles.

Under these conditions most
American countries are quite aa
confronted by the. question of Ff’
of their economic relations wit),
U.S. and its policy, with reg?
other countries of the world.
atmosphere of the growing »
crisis, in the main capitalist Pp?)
there are sounding ever more ”
ently, on the Latin American 3
ent, demands of the public, ind)
industrial-economic circles in i

of

countries, to extend commerc!
tries, regardless of their socio-@*
mic systems, including the c0
of the socialist community. a
policy would make it possiblé®
them to avoid the serious ec®
and financial consequences |
crisis. 4