FOREIGN RELATIONS, 1950, VOLUME I


This is particularly true of Brazil, our leading ally in Latin America,
whose apathetic position today in the Korean crisis must be contrasted
with its spontaneous and enthusiastic support of the allied cause in
1942. This is particularly significant in view of the fact that com-
munists have virtually no economic strength in Brazil whereas all
three of our enemies in World War II had important cultural an4
economic ties with Brazil. The same is also true of Mexico, ,and since
the outbreak of the Korean crisis there has been considerable news-
paper comment in Mexico to the effect that the United States cannot
look to its Latin American neighbors for military and other essen-
tial cooperation when it has not been helping them economically. No-
where in the world is "the revolution of rising expectations" more
in evidence than in Latin America and our own actions are directly
responsible for this.
  This problem must be examined not only from the standpoint of
the welfare of these countries but in regard to what we can expect
from them. ARA has recently been placed under a directive from the
National Military Establishment to obtain offers of ground troops-
for Korea. There is no difference of view that one of the main reasons
why no offers have been forthcoming is that Latin America has been
excluded from all military assistance programs since the war. At the
present time the military assistance legislation precludes transfers of
equipment to Latin America except on a reimbursable basis, an un-
realistic approach in view of the dollar and other financial limita-
tions in those countries and one which contrasts with the flexible and
universal authority under Lend Lease. The failure of the Munitions
Board and the NSRB prior to and since the outbreak of the Korean
crisis to develop any positive and concerted program for strategic
materials precludes any effective action on our part in this field.
   ARA has been unable to justify proposing any substantial grant
 program for Latin America. Rising dollar availabilities in itself
 would preclude any such proposal and the mere fact that such a pro-
 gram is proposed for South Asia does not justify an equivalent pro-
 gram for Latin Amej'ica. However, we should at least expect that, in
 regard to financial development, equivalent criteria will be applied in
 different parts of the world and that there be some top level coordina-
 tion and policy determination given to the relationship between the
 different aid programs. Within the framework of such a coordinated
 policy a new approach for Latin America is necessary in a broadly
 conceived and positive program taking into account the maximum
 utilization of all of our present instruments of development. Also since
 the new wartime situation in Korea presents new problems, a few
 supplementary instruments of cooperation are needed as discussed
 below.


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