The Daily News THURSDAY, AUGUST 11, 1932. SOUTH AMERICAN PROBLEMS

Taranaki Daily News, 11 August 1932, Page 4

The Daily News

THURSDAY, AUGUST 11, 1932. SOUTH AMERICAN PROBLEMS

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For* a variety of reasons South American affairs have been brought into international prominence during the past few weeks. Argentina is. concerned lest the outcome of the Imperial Economic Conference may interfere with her standing in the produce markets of Great Britain. Since the war the struggle between the United States and Great Britain for the dominating' position in Argentine trade and finance has been greater than ever. At one time British financiers and traders had almost a monopoly of the republic’s - foreign business, largely because during the period of Argentina’s financial difficulties British investors did not lose faith in the potentialities of the republic. Railways, land settlement schemes, meat works and shipping were all developed by British capital and subject to a certain amount of British control. The republic a generation ago was content to have it so. With the prosperity made possible by development and the spreaxl of education the spirit of nationalism grew apace. To that was added trade rivalry by Germany and the United States with Great Britain in Argentine commerce and finance. The war days gave the United States a wonderful opportunity of supplanting British influence, and to a large extent the older republic succeeded. Since then the rivalry has been less one-sided, and the fact that Argentina is so concerned over the deliberations at Ottawa is proof that Great Britain’s interests there are very considerable and that the English market is still regarded as the greatest outlet for Argentina’s products. Were this the only international question in South America it could be regarded as almost a domestic matter between Great Britain and Argentina. Unfortunately there are more disturbing forces at work than those of an economic character. Though Argentina ranks first in South America as the location of huge British investments and interests, her neighbours, Uruguay, Paraguay, Chile and Bolivia, have all shared in British financial enterprise, while further

north the huge republic o£ Brazil is on the way to rival Argentina as the scene of development made possible by the influx of foreign money. Unfortunately, in every one of these countries political matters are anything but satisfactory. Revolutions are not apparently the serious upheavals in South America they are in Europe. They represent the undisciplined rather than the constitutional way of dismissing an unpopular Ministry, and in late years they have been attended with little bloodshed. Paraguay and Bolivia are threatening conflict over territorial disputes, but there is reason to hope that the intervention of the League of Nations will prevent warfare. Argentina, Uruguay and Chile have had their internal disturbances and “revolutions,” but they have been strictly localised and their effects narrowed to political aspects. The disturbances in Brazil are more ominous. There, it is stated, the insurrectionists have an army of 100,000, well equipped with modern weapons, and an attack upon the caj ital of the Republic, Rio de Janeiro, is threatened. At first a local uprising in Sao Paulo, the scene of Brazil’s “declaration of independence” of Portugal 110 years ago, the insurrection is now said to include all the States to the south and west of the capital, as well as one of the largest, Minas Geraes, to the north. The insurrectionists claim’ that the Government of which President Vargas is the head has not been constitutionally elected and that all they seek is its resignation and the constitutional election of a successor. The Government claims that it still controls the sea-board and thgt Santos, the great port of the State of San Paulo, is blockaded, while the city of that name will soon be invested by loyalist troops. It has been stated, however, that the difficulties leading to the outbreak are as much economic as political. There is always jealousy between the State capitals and Rio de Janeiro. They claim that development of the Federal capital has been at the expense of the States, and that foreign influences have too much sway in Brazilian affairs. Though of later years Brazil has done much to strengthen her own industries under a policy of high protection, her vast Undeveloped resources are still attracting foreign capital, including a good deal from Great Britain. Brazil is a huge country. It exceeds the area of the United States by 200,000 square miles and comprises nearly half the continent of South America. It is divided into 20 States, but with the exception of those bordering on the Atlantic ftoast they mostly represent undeveloped country. In the coastal States progress has been phenomenal. Manufactures have been established, while the hinterland is being improved for stock raising purposes. Brazilian meat is already a factor to be taken into account by othei’ exporting countries. The republic has well established, up-to-date freezing works, and its shipping facilities are of the best. Much of this development has been due to the supply of British and United States capital, and the benefits have been very apparent in the Federal capital city. Whether the present disturbances are due to jealousy of the foreigner or of the Federal authorities by the States it is difficult to say. What is disconcerting is that the development in which British enterprise has largely shared should be interrupted by political troubles just at a time when there are signs of recovery from the economic troubles of the past few years.