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PAGE 2 — The Southern Cross, October 16,1969
1
Rockefeller Report On Latin America
BY JAIME FONSECA
(NC News Service)
How many of the
suggestions and complaints of
Latin American leaders went
into the report of the
Rockefeller Mission this
summer remains to be seen.
They held frank discussions
in 20 countries with Gov.
Nelson A. Rockefeller and his
team of experts, mostly on
what is damaging relations
with the United States.
Just in case Rockefeller
missed some points, the Latin
American leaders themselves
met and presented their
common views in what they
call the Consensus of Vina del
Mar. (after a meeting in May
at that Chilean resort). These
views were quickly
documented by development
experts and U.S. and Latin
American institutions.
In summary, the following
are their complaints:
FINANCES: U.S.
investments and straight loans
are not to be considered aid
at all; on the contrary, such
finances are literally sucking
away the reserves of the area.
Total U.S. investment in
Latin America is about $12
billion. Repatriated profits
keep climbing, from $761
million five years ago, to $1.2
billion in 1967 and $1.8
billion last year.
U.S. loans and food
programs amounted to $553
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million in 1968, but the area
paid back $659 million in
servicing loans and imports
from the U.S. In some
instances, each $100
borrowed is coosting these
countries $47
AID: There are too many
strings attached to aid
programs, and in addition, aid
is too little and too slow
Several UN agencies and
others have recommended
that industrial nations devote
at least 1% of their national
product to helping developing
countries, yet the U.S. is only
granting 0.79%, which puts it
in fifth place among nations
giving aid. In the eight years
of the Alliance for Progress,
the U.S. public share of the
money spent in its programs
reached 6.7%, not the
promised 10%, while the
Latin American governments
have contributed over 90% on
their own.
Washington seemingly
invested $7.3 billion in that
period, but 90% of that
money had to be spent by th
recipients on U.S.-made
products, and half the goods
had to be transported in U.S.
vessels. Yet the Latin
Americans could buy same
products--and sometimes
better adapted to their
needs-at lesser cost from
Italy, Japan and other
industrial suppliers.
Aid legislation also ties it
to the political interests of
the United States and the
protection of U.S. private
dealings in the area.
Technicalities and
differences between
Washington bureaucrats and
the governments concerned
have also led to frustating
experiences. Servicing the
loans, again, is becoming a
heavy burden for the most of
the aided countries. Lastly,
aid appropriations started a
downward trend due to
increased U.S. involvement in
Vietnam and the U.S. deficit
in the balance of payments,
and are now at a record low
of $336.5 million, causing
many Alliance programs to
flounder.
TRADE: This is the
greatest irritant. For one
thing-and this is one reason
for people of the U.S. made
not to take the Latins for its
trade on goods and services
with Latin America, yet it
had a $1 billion deficit in
trade with Europe and $1.4
billion in trade with Japan.
Latin Americans are buying
from the U.S. $5.3 billion a
year worth of goods and
services. They are paying an
additonal $1.2 billion - for
transportation and travel and
another half a billion dollars
for fees and royalties (not
counting the $1.8 billion
return from U.S. investments
already mentioned.)
Latin America desperately
needs to expand world
markets for its products. Yet
the meeting of the United
Nations conference to Trade
and Development (UNCTAD)
held at New Delhi, India, last
year blocked its efforts to
open new markets on a global
basis, and forced the area to
rely even more heavily on
regional arrangements with
the United States and
Canada, and on its own
markets.
Latin Americans had great
hopes that by diversifying
their production--from basic
commodities such as crops
and minerals, to
manufactured goods-as U.S.
official agencies continually
advised, they could raise the
volume and dollar earnings
from exports. They are,
instead, running into a blind
alley. World trade has
quadrupled in the last decade,
but Latin America’s has
hardly doubled.
Under pressure from U.S.
trade unions, manufacturers
and growers, Congress has
taken a protectionist turn.
Import quotas, tariffs and
other restrictions bar the flow
of Latin American
p r o d u c t s - - e ven raw
commodities such as sugar
and meats--and these
governments are unable to
match the lobbying power of
U.S. concerns. And often the
competitiveness of Latin
America prices, usually
because of lower labor costs,
is nullified by U.S. subsidies
to American growers and
industries. Lifting such
restrictions would disrupt the
U.S. domestic markets but
Latin America leaders feel
that cooperation means
sacrifice to some extent.
POLITICS: The influential
Mexico City daily Excelsior
sees with concern “the main
goal of the Rockefeller
mission; to gear U.S. aid and
trade to the domestic
economic policies of that
country, so as to avoid any
conflict between the Nixon
“Yet we know that the
trend in Congress is to defend
private interests at any cost
and give second place to any
improvement in the foreign
policy of that country.”
This is an indication of the
radical changes Latin
Americans expect from the
Rockefeller mission. Felipe
Herrera, president of the
Inter-American Bank, feels
that Washington should move
quickly to negotiate the
elimination of trade barriers,
and establish a flexible
system of financing and
promoting Latin America’s
export products, so that their
sale can finance
developement.
Other experts stress that
this must be done even at the
risk of political opposition
from labor and some sectors
of the U.S. business and
industrial world. Thus far the
N ixon Administration has
agreed to stop requring
purchasing and shipping
through U.S. concerns as a
condition for aid dollars, and
to cease rising political
pressure to protect U.S.
investments in Latin America.
Lastly, there is one thorny
issue that the Rockefeller
mission seems to avoid: the
rash of military governments
throughout the continent,
and continued U.S. military
aid prompted by the concept
of national security interests.
The implications of these are
far reaching as these strong
military regimes invoke “
communist subversion” as a
reason for their repressive
moves, and block true
attempts at social and
economic reform.
“Some time ago, ” said La
Republica, an independent
daily in Costa Rica, “the
models for the continent
where democracies such as
Uruguay, Chile, and Costa
Rica itself, because of their
traditional respect for
constitutional order and
republican institutions. But
today the light seems to come
from Peru, which Bolivia has
joined, under the sign of a
militaristic nationalism
leaning clearly to the left. Is
this the new political
LACK OF INTEREST
Canada Renewal
Center May Fold
TORONTO (NC) - The
Kehoe Renewal Center may
fold by June because priests of
Ontario province who asked
for it, are staying away in
droves.
When the priests of Ontario
asked for a center for
continuing education, the
diocesan senates across the
province agreed to sponsor the
Kehoe Renewal Center and to
have it attached to St.
Augustine’s Seminary here.
The first four-week
institute was held in February,
designed for 50 men. Some 25
attended. Since then the
director of the center, Father
A.M. Williams, virtually had a
canvas diocesan senates by
long-distance telephone to
pull together 25 to 30
candidates for each succeeding
institute.
The financial situation has
reached a now-or-never stage,
and long-range planning is
suffering to a corresponding
degree, Father Williams said.
“Unless the priests of
Ontario make a definnite
commitment now, I think we
will fold by June,” he added.
Lack of candidates is due to
more than a financial pinch.
Response has been limited by
rumor, misconception, fear of
change, the generation gap,
theological apprehension,
apathy and excuses.
Father Williams discussed
the program, and response to
it with two “graduates” whose
attitudes had been changed by
the institute: Father Marshal
Beriault of St. Leo’s parish,
West Toronto, and Father
George Courtright of the
Scarborobo Mission Society,
heading mission activity in the
London, Ont., diocese.
“Promises have been made,
and all that, but when it comes
right down to digging into the
pocket and dishing out the
money-and giving the man
that full month free--oh, boy,
there are all kinds of obstacles
thrown up,” he said.
HALLOWEEN - Linus, accompanied by his annoyed girl friend Sally, takes up his annual vigil in
the pumpkin patch, on “It’s the Great Pumpkin, Charlie Brown,” half-hour animated cartoon
special to be rebroadcast Sunday, Oct. 26, in color on the CBS television network, (c) 1966 by
United Feature Syndicate, Inc. (NC Photos.)
orientation of a whole
continent, or can democracy
still prove that it works?”
What, then, should be the
general orientation of U.S.
Latin America Policy? The
Consensus of Vina del Mar
called for Washington “to act
quickly to change its aid and
trade policies,” into open and
flexible guidelines.
Rockefeller, who puts a
conservative price tag on his
proposals in due
consideration for Nixon’s
budget problems, asks for
broad changes, for effective
results at the grass-roots level.
And Nixon himself has stated
that “we will try to make our
actions make the news rather
than having words make the
news.”
By its membership in the
Organization of American
States the U.S. is committed
to helping the nations of
Latin America build a
common market that will
enable them to compete with
the economic giants of today;
to foster development in
education, science,
technology and industry for
their better use of human and
natural resources; and to
modernize rural areas and
increase agricultural
production to forestall
hunger. Americans are also
committed to improve trade
and job opportunities for
Latin America labor and
industry.
There has been a good
effort under previous
administrations to reach
those goals. Evidently, it is
not enough and new
guidelines are needed. They
involve difficult decisions:
--Opening domestic
markets, even at the risk of
some disruption.
-Providing larger credits,
easy loans and flexible terms,
including refinancing, at a
time when money is
expensive and hard to get.
--Encouraging private
investments and sharing
technical and industrial
know-how, at a time when
nationalism is rampant in the
area, and U.S. firms hold
back further expansion.
--Formulating intelligent,
continent-wide population
policies, when birth control is
an explosive issue.
--Effecting at home basic
reforms in mentality and
institutions in order to
correct social and racial
injustice, since Latin
Americans see this as a test of
U.S. sincerity.
It is a high political price.
The moves will adversely
affect many American homes.
But the alternatives are
harsher.
A recent report from the
Committee for Economic
Developement--a group of
200 U.S. business executives
and educators--warns:
“Unless this downward trend
is reversed, and unless public
assistance can be augmented
by more private investment,
the United States will have
lost an historic opportunity
to achieve . . .a decisive
advance in the economic and
social modernization of the
emerging nations.”
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past four years. He is an eighth grade graduate of Immaculate
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sophomore year and secretary in the junior year. He is the
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and sophomore year and the medal for the highest average in
the boys’ section in the sophomore year.
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