Political and Economic Importance Great Welcome Given to IDHE recent agreement between the United States and Brazil under which Washington will advance $120,000,000 over a period of years, is of the greatest political and economic importance. In the first place it introduces open subsidies on American industrial exports.
Secondly, though the amount of $120,000,000 Will-be advanced as a "loan," no attempt has been made to conceal that it is virtually a free gift; it is an open return to the "dollar diplomacy" and the "political loans" which the New Deal used to regard with such pious horror. The only return ever to be expected will be in the form of token payments on the Brazilian Dollar bonds, which will not use up more than a minute fraction of the amount advanced, states the "Financial News."
"This agreement constitutes, therefore, a complete break with all the principles on which New Deal foreign policy had been based hitherto. Yet it is an open secret that the "United States Government was ready to go much farther. The Department of Agriculture is known to have been offered the virtual inclusion of the Brazilian cotton growers into the American scheme of farm benefit payments against a promise to re-Strict the Brazilian cotton acreage and to reduce Brazilian cotton exports to the dictatorship countries. And the State Department was willing to offer Brazil financial support for naval and aircraft expansion. But gifts," the President and his advisers regard the agreement as the first of their new South short of American purchases of South American commodities can have this desired effect. Argentina has recently declared semi-officially that she would rather sell' wheat and meat against Aski-Mark in spite of ell the trouble involved, than take gifts from the United States; and she has suited her actions to her words by cutting down on American imports and by concluding new barter agreements with Germany. Uruguay, Peru and Chile have taken a similar position; so have Colombia and Venezuela. And Mexico, which increases her trade relations with Germany and Italy every day, in spite of Washington's continuous support to her economic structure, is perhaps the best example that it is not the dictatorships who suffer from an aggressive American economic policy in Latin America as long as the United States compensate the Latin-American countries for the loss of the
Text read from the printed page and cleaned; old type leaves the occasional error.