134 FOREIGN RELATIONS, 1950,. VOLUME I

resentment and fear of our wealth and success. Partly résult of hostile
propaganda. But largely result of our own failure to think through
the realities of our relations to other peoples, to find correctapproach
of rich and powerful. country to weak and insecure ones. We are only
gradually becoming conscious of irrelevance of our national: experl-
ence to contemporary problems of many other peoples. . |

iB. (BY. AREAS - |

L Latin America 16

Problems have not shown any marked change 3 in: | recent months.
They aretraditional problems of: ar |

0. Finding possibilities and ‘modalities for private American eco-
nomic activity in that area which will have useful-and healthy effects
locally and will at the same time assure adequate return to American
businessmen.

6. Finding sound U. S. official stance toward domestic problems
L.A. countries, particularly difficulties they encountered 1 in develop-
ment of democratic institutions. 9!)

c. Handling problem of inter- American frictions, ‘nbsgues ‘and
rivalries which sometimes trouble peace of area. -

In all three fields we hope we are making slow but steady p progress.
Point IV and trade agreements should improve opportunities. for
U.S. investment. Actually, L.A. has long been proving ground for
Point IV principle, and has considerable possibilities from ‘this stand-
point. But in last analysis, this must depend on creation of suitable
climate for U.S. private investment. Primary responsibilities for this
on L.A.: governments. Some progress noted in recent past. Commer-
cial treaty concluded with Uruguay. We hope others will follow. There
is evidence of greater readiness today on part. of L.A. governments
themselves to cooperate financially (Le. put. up funds in local cur-
reney) 3 in constructive development programs utilizing U.S. help. :
‘While we continue to be confronted with occasional seizures ‘of
‘power in individual countries by irregular means, ‘there seems to be
increasing public consciousness of dangers ‘involved, and most such
regimes, as for example today in Peru, Venezuela and Panama, are
making greater, efforts than would have been case some years ago to
reg ‘ularize their status and seek genuine ‘popular support. | |
As. for international ‘frictions, Organization of American States is
beginning to function effectively. It will soon have task of smoothing
down trouble which has arisen between Haiti and Dominican Repub-
lic. We have strong hopes that from now on, by this means; serise of
collective responsibility among all. nations of area: welll: ‘suifice: to

16 For documentation on ‘United States policy with respect to Latin “America,
See } vol. II, + PP. 589 fh | . . oe