SOUTH AMERICA.

Otago Daily Times, Issue 20644, 16 February 1929, Page 20

SOUTH AMERICA.

FUTURE PROSPECTS. CONTINENTAL IDEALS. AT THE CROSS-ROADS. The South American Republics, afier almost a century of comparative is, lation, have somewhat suddenly taken their place as important factors in world politics and world economics, writes **G.F.T." in the Melbourne Age). Politically they constitute a group of States, virtually new pieces upon the international chess board, of rapidly increasing population, some already formidable all potentially powerful, whose voice in w mid affairs must be heeded, and whose friendship or hostility must be a matter of consideration to the older Powers, Economically, with the enormous potentialities and their lack of local capital, they rt-pi eBent the world's most important market for capital investment and exportable commodities', as well as a valuable source of raw materials, and show every d gn of becoming the arena of the fiercest competition between the United States snd the principal European countries. In these circumstances it is interesting, to note—without exaggerating—the reaction in Latin America against the PanAmerican ideal, and the tendency amopgst some of the leading Latin States to 'ook rather to the Old World for leadership and inspiration. Will ’the New Woild, with the United States at its head remain what it has tended to be in the past, in effect, a world of its own, selfsufficient. markedly detached from Hur, pe and moving gradually towards closer unity through increasing co-operation and the co-ordination of effort amongst Ameri-'an States? Or will it rather lose its separate character and solidarity, the •udividuai States being ultimately absoroed into a world system? Towards the former end many important factors militate, and such so far has been the -general trend of development.- First, the very fact of Continental solidarity, buttressed as it is against all outsiders by the policy of the Monroe Doctrine, is important. Then there are so many common interests and problems arising from this, and a common detachment from Europe. Again similar historical experiences as revolting colonies and certain common liberal political ideals and institutions bind the American States, The economic ties, too, are strong end never more so than to-day, when the United States is far and away South America’s best customer, and likely soon to become her principal investor of capital. All of which has as its concrete result the innumerable Pan-American congresses and conferences on every sort of subject that have met in the last halfcentury, the permanent Pan-American Union and the continued existence of real if somewhat vague feeling of a common destiny. SOUTH AMERICAN FEARS. On the other hand evidence is not lacking within recent years, and particularly since the failure of the Santiago Conference in 1923, of a decided reaction against Pan-Americanism ti e principal cause of which is, beyond question, the growing fear of the southern republics of North American domination The threat in their eyes takes three forms —political, economic, and cultural —and in each case their instinctive reaction is likely to turn them towards Europe. First as to the political threat. The whole issue here is completely contained in the problem of the Monroe Doctrine. The doctrine, as it has been interpreted and reinterpreted by successive Presidents and Administrations down to the last statement of ex-Secretary Charles Evan Hughes, now asserts, as a separate national right of self-defence, the right of the United States to a very wide range of interference in American affairs, and a virtual supervision not only of the relations of American States with non-Ameri-can Powers, so far as they might affect the security of the United States, but of their relations inter se if they were likely to involve foreign Powers. Thus Washington not only assumes the “ international police powers” claimed by Roosevelt, but also would probably claim the right to forbid war between two American States as she is generally, supposed to have done several years ago with respect to Chile and Peru. That such a policy might Seriously impair the liberty of action of the southern republics and infringe their sovereignty is obvious. Within the Caribbean area it has led to a virtual protec torate over every Central American State except Mexico, Against such a danger accordingly, they demand some protection They are not wholly opposed -o the Monroe Doctrine—they have benefited too much by it—nor do they refuse to recognise j » s P e “ a l defence needs of the United States, Hut they object strongly to its arbitrary character as a unilateral declaration which leaves its interpretations solely to Washington, and permits her to decide when she shall or shall not interfere. They want some guarantee tnat the doctrine will not be used simply as an instrument for achieving the domination of the southern continent. Expedients suggested for this purpose have been the transformation of the unilateral declaration into a multilateral agreement, thus bringing the doctrine within the sphere of international law, or, again, the conclusion of compulsory arbitration treatms which would prevent aggression between American States. But such proposals have received the invariable oppoof the United States, a fact which nothing_ to allay the suspicions ot her Latin neighbours. Much was ® rst ’ League of Nations with its guarantee of the territorial integnty of member States. But, to conelwr Um . ted States, the covenant “5 11l JJ ty recognised the Monroe Doctrine, and the League Council has so far been very careful not to involve itself in. American disputes. All hopes of recourse to this method of protection, however, has not yet been abandoned by the South fc r = Stat t’ f nd an £ dispute ’ su eh as the recent one between Bolivia and ParafnFforefon -5? s , eid o™. complications and torce on a critical decision.

ECONOMIC PENETRATION + -'? l an . d i? with the' fear of politacal domination implied in the assumn J? f United States of a status of and supervision goes that of SfTr W® fr °T tte ™ quar ter. For the whole moral of modern Genprov4” er bo a th i St ° ry M that * he la tter rase fnr a , motlve and an exJr 8 , 6 *, c>r ., tilc former. The enormous strides made by North American trade and ’ finance in the South E„ the beginning of the w ar divet and were mvertea, is well known. Her industrial aud commercial investments (LcC ve o teT? bonds) ; throughout Latin fs“ stiffs Quadrupled since TWii eiT controls the coffee market in R,W P| h [ rnaat packing idustry in the P * at ® tem tory, petroleum in Colli 1 ?? 10 and Peru, and a large shar<- of the mineral wealth of the Indian republics. More ver, the steadily-increasing - export sur iJus of commodities from the United States is largely being disposed of in South American markets. Her ihare of South American imports rose from 24 per cent, in 1013 ti 37.7 per cent, in 1927 —to the detriment, incidei tally, of Britis and _ . jrman trade. Tremendous efforts made, of which the’ Presidenteleote. tour is only a small example, to coneolidate and advance her economic position by further extension of investments with their favourable reactions on export trade, and these activities are being met by equally strenuous efforts on the part jf European competitors, especially in the Argentine. What is most disturbing to the patriotic Latin is that American finance ap* pemrn to ve got its first tentacl s upon a South American State in the cas of Bolivia, where the public external debt—about 32,000.000 dollars—is virtually all in American hands, and _ where the loan of 1922 had as a condition the appointment of i fiscal commission, consisting of two American _ nominees of the bankers and me Bolivian, with wide powers of supervision. - Incidentally, of the two Americans appointed, one is also inspec-tor-general of banks and monopolies, and the other d : rector-general of Customs.

CONFLICT OF CULTURES. The last, but in the long run probably hy no means the least, important factor to be considered in the growing revulsion amongst the Spanish-speaking intelligentia against North American culture and civilisation and the growing fear that their own Latin civilisation will be swamped by the flood of barbarism from the north. This hatred of all that the United States stands for articulate only amongst a few, but noted by most observers throughout all ranks of society is a political force difficult to measure. The anti-American propagandists, while counting most of the important names

in contemporary Spanish literature, are numerically few and not politically influential._ But the movement shows signs of growing as more intimate contacts reveal the radical incompatibility of the two cultures.

The possible effect of the clash of cultures is twofold. First, it may disqualify the United States from the* leadership of any Pan-American society of nations and permanently divide the New World inta two systems, Anglo-Saxon, and Latin. Second, and most dangerous, it may—and almost certainly will—encourage the fostering of closer and possibly intimate relations between the South American republics and their Latin cousins in Europe. Already the Pan-Hispanic ideal is being pushed for all it is worth, and by every possible means by the Government at Madrid, which sees in an alliance with her former colonies the first step in Spain’s recovery. The rival—and broader—Pan-Latin movement has its headquarters at Paris, but may also expect considerable support from Rome. Should the United States fail to recover the confidence of Latin America, and should the South American republics prefer their present disunity to Bolivar’s dream of a northern United States, the drift toward Europe must continue, and the ultimate entanglement of American States in non-American systems—which, of course, means the undermining of the Monroe Doctrine—is rendered inevitable.