THE ELUSIVE CONFERENCE UNITED STATES ECONOMIC RELATIONS WITH LATIN AMERICA, 1945?1952

Abstract

During the first intense years of the cold war, United States officials boldly designed comprehensive economic and military aid programs for Asia, Europe, and the Middle East, but declined to introduce new policies for Latin America. In particular, they avoided meeting in a high-level conference with Latin nations to discuss economic aid, loans, and commodity agreements. Repeated postponements of the Inter-American Economic and Technical Conference revealed that the United States no longer considered relations with Latin America vitally significant, as it had during World War II. Moreover, the lack of economic cooperation highlighted the differences between United States diplomats and businessmen and their Latin counterparts over the need for liberal trade and investment practices in Latin America. Hemispheric planning for peace began within two months after Pearl Harbor. At the Third Meeting of Foreign Ministers held in Rio de Janiero in January 1942, Under Secretary of State Sumner Welles committed the United States to supporting the economic development of Latin America. In their resolutions the foreign ministers called for equitable allocations of basic and strategic materials during the war, recommended a feasibility study for an inter-American bank, and declared “that to raise the standard of living of the people” the American nations must industrialize. In addition, the hemispheric partners would hold an economic conference, for “a new order of peace must be supported by economic principles which will insure equitable and lasting international trade with equal opportunities for all nations.”1 Such goals would be pursued after the enemy was defeated. At Rio, Welles achieved his basic purpose of aligning Latin America behind the war effort. The American republics agreed to an economic mobilization and all, except Argentina and Chile, broke relations with the Axis powers.