Funding the Empire: U.S. Foreign Aid - Part I
Melo, Hector & Yost, Israel
Over the last 40 years, the survival of capitalism has rested on its ability to expand its control over resources and markets on a global scale. Expansion has been made possible by the increasing...
...II, Nos...
...The problem was becoming somewhat more acute because of Colombia's growing credit balances with those countries (mainly Eastern Europe and Spain) with which it had bilateral compensation agreements...
...Peru in 1968 nationalized International Petroleum...
...American interests establishing runaway plants in lower wage countries are not helping to overcome the poverty gap but only perpetuating unacceptable living standards in the poorer countries...
...See Table V.) This form of funding U.S...
...31, 1967...
...The combined total shown here includes obligations, where applicable, under subsections 104 (a), (b), (d), (i), and (j...
...regulations to allow "generous" partnership (joint venture) arrangements and other concessions, particularly those which fit the needs of the multinational companies represented by both Rockefeller and Peterson...
...exports (see Table V ). 6 The traditional U.S...
...9 43.4 53.2 135...
...02138...
...In fact, one argument made in favor of the establishment of OPIC is that the availability of counterpart monies substantially reduces the cost of funding OPIC...
...34.2 O2.2 S65...
...FOREIGN ASSISTANCE, BY PURPOSE, FISCAL YEAR 1969 Millions Percent of dollars of total...
...foreign domination...
...Host governments which channel AID funds have used restrictive exchange, import, or credit arrangements to induce the importers to buy the less competitive U.S...
...Multinational financial firms derive great advantages from the development of multilateralism: 1) The multinational firms lend capital to the multilateral institutions which guarantee them a sound rate of return (i.e., high interest) and the repayment of their principal...
...tax dollar...
...they contributed a net inflow of $242 million in fiscal 1969...
...private investment in foreign countries...
...Several direct economic advantages are offered to U.S...
...Lab Wyeth Interamericanos Arico Peruana Arbor Acres, Peru Industries Yuteras Quinica Del Pacifico Hogares Bolivianos Huevos Oro Pauley Rey de Colombia Singer Sewing Machine Purina Peru Sociedad Boliviana de Cemento Hogares Bolivianos Liquid Carbonic de Chile Alimentos Purina de Chile International Products 125,000 224,000 2.7 million 111,000 204,000 290,000 259,000 370 000 4,282,000 1,000.000 39,000 133,000 356.000 350 000 384.000 790,000 68,000 700,000 480 000 2,422000 Maquinas de Coser Singer 332,000 Fabrica de Pernos y Tornillos 73,000 Amer...
...Magdoff, p. 149...
...4, 1969) noted that "The aid that isn't 'tied' is mostly financing for purchases of such things as cement by Vietnam from nearby countries...
...Dolar Value of Political isk Coverages Written sca I 19I,90 2_ *W * Isso 1l 0 a - Im - - - -los Im~io 10 Number of Polbiical Risk Coverages Written FrCI 19 0190s / / / K / 7 Source: AID, Working With Private Enterprise: 1968 Operations of the Office of Private Resources...
...In reality, the only beneficiary in "the great give-away" are U.S...
...2 122 12.4 13.4 1 O.S I 2 Hiaal . . .. 1.0 2.3 21.3 0.E 124.3 133.1 3m3...
...exports...
...It helps other governments in crisis situations--such as those that have occurred in the Dominican Republic and the Congo in recent years...
...and international development programs, 42 percent...
...As reported in the New York Times, November 1, 1969...
...As a result, Latin Americans often pay about 40 percent more for U.S...
...businessmen and their affiliates in the less developed countries is called "Cooley fund" loans after former Congressman H.D...
...Actually, it takes far less to control a corporation...
...The U.S...
...export firms and interest groups such as the AFL-CIO, tying the buying power (obtained through U.S...
...this is reinsurance...
...Control is strictly defined as 51 percent or more of the voting stock...
...2 4 From SIEMPREI, Mexico FOOD FOR BUSINESS As part of the aid program, PL 480 does credit to North American ingenuity for solving internal problems by smashing the underdeveloped foreigners...
...Business Week...
...The distinction asserts by implication that the program does, at least in part, play a development-promoting role, even though almost all of the funds serve the same basic purpose--the stabilization of the governments friendly to the U.S...
...Many businessmen feel it is too rigid a law, restricting the President's capacity to bargain effectively...
...Budget support and other political programs Total...
...Security is not military hardware, though it may include it...
...Although exports financed in this way only account for a small percentage of total goods produced, profits of mass production often rest on the volume of sales cleared of fixed costs...
...Security is not military force, though it may involve it...
...Printing Office...
...January 18, 1969...
...2 3.7 T 1 IS.* 2 S. 7. 3 I1 7 Brith Nond r I...
...Multilateralism was formalized by existing multinational banks and investment firms at the 1945 Bretton Woods conference...
...Both companies were involved in large-scale operations for the exploitation of Chile's rich copper reserves and were increasingly worried about local pressures against their interests...
...Both types of program," states conclusion 4, "are essential, but each serves a different purpose...
...4.3 3...
...government can be even more forceful...
...Among the largest projects covered by the insurance plan during 1968 were tre operations of the two American giants in Chilean copper mining, Anaconda Company and Kennecott Copper Corporation (Kennecott working with the Chilean Copper Corporation, a mixed firm with 51 percent Chilean participation...
...and her imperial interests...
...If exports financed by U.S...
...AID loans accounted for a net outflow of $850 million in fiscal...
...Until the Depression, private finance and banking houses underwent foreign economic programs through direct loans and investments...
...11 1 209.2 7.4 2.4...
...93-94...
...Ralston Purina, H.J...
...188-189...
...corporations' Latin American subsidiaries (e.g., in the areas of chemicals, machines and transports) is the result of this change...
...AGRIBUSINESS Creative Mr...
...NACLA Newsletter, Vol...
...financial firms, in particular, benefit since they are restricted by law from making direct investments within the U.S., but not in other countries...
...of Chilean escudos paid to the Central Bank by private importers in exchange for dollars I I U.S...
...T h is Funding the Empire: U.S...
...Foreign Investment in Latin America (New York 1966) pp...
...In the accompanying chart Latin America ranks second in development loans but on aper capita income basis) and first in technical assistance...
...This working partnership of a North American business with a Central American people has resulted in a steady improvement in the standard of living of all of the people living in Standard Fruit's area of operation-a rising wage scale, improvement in health and education, technical advancement of the region, and diversified employment opportunities...
...Private One or more Portfolio Investment Direct Investment Multilateral One or More One or More Private One or More NACLA NEWSLETTER Vol...
...Domain on RepIc...
...No amounts are given under subsections 104 (c), (h), (g...
...This program constitutes a mechanism that will essentially be incorporated into the newly created Overseas Private Investment Corporation (OPIC...
...agencies were still preoccupied with insuring additionality of U.S...
...business...
...Department of Commerce...
...Peterson, page 5) 4 TABLE 11 U.S...
...Together, such nations now owe the developed countries roughly $50 billion, for which they pay about $4.5 billion annually in service charges (interest and amortization...
...In the period 1957 to 1967, 60 percent of military and economic AID funds to underdeveloping countries was in loans, while for the developed countries only 32 percent has to be repaid...
...Trinidad and Tobago 5.000 S,o00 5,000 -- - -Regional --- 15 Other --- IS --Source: AID - Annual Reort toConess, 196569 AID - Proposed Fiscal Year 1970 Prora '1970: proposed The attempt to draw a distinction between "security" and "development" assistance along the line Mr...
...Developing: read underdeveloping...
...Budgetary support, an example of "country uses," is given to make up part of the borrowing government's budget deficit...
...Peace Corps...
...AID Source of Capital Sector No...
...TIED-AID) 423 PERCENT TIED-AID 1,294 1,232 1,402 1,161 1,025 1,192 1,111 1,350 1,141 1,014 41% 92% 90% 88% 98% 99% Source: AID, Annual Report to Congress (various years...
...Second-class postage paid at New York, N.Y.d) Finally, all AID funds must be equally matched in local currency ("counterpart" funds) thus providing the U.S...
...Corporate-minded William S. Gaud, Administrator of AID from Aug...
...2 and 3...
...companies under cover of the insurance program...
...The governor declared in his Report: These encumbrances, when viewed separately, may appear reasonable--and, of course, they are to the advantage of special-interest groups in the United States...
...See Magdoff, p. 152...
...Instead, the list of purchasable pro- ducts was expanded...
...He admitted, furthermore, that some of the expenditures for security programs were hidden under economic assistance categories (funded through AID...
...public has been convinced that its government provides foreign aid with the selfless good will of a Santa Claus...
...agribusiness of the industry of growing, storing, processing, and marketing food...
...4) This year, Bank of America and ADELA joined Dow Chemical, Monsanto, Caterpillar Tractor, Ralston Purina, Borden, and Standard Fruit and Steamship Company to form the $15 million Latin American Agribusiness Development Corporation (LAAD), to start profit ventures with local partners...
...Single copies 50c...
...2 129 394 450 281 92 SI 50 240 88 40 729 340 101 870 62 516 88 TIM S2% 6% 42% Source: Peterson Report, page 6. Most of the hidden funds fall under the category of "supporting assistance"--involving direct budget support of local governments...
...In the case proposed by Rocky, the reinsurance would come from an official agency, i.e., OPIC...
...To eliminate the provisions that tie the use of loans to the purchase of goods and services in specific countries, and to strengthen the multilateralization of external financial aid...
...2) Black Sivalls Bryson, Inc., a storage bin manufacturer in Kansas City, is setting up a grain storage network in Central America...
...Senate report on the Alliance for Progress, in discussing Colombia, made the rationale for additionality restrictions quite clear...
...About a quarter billion dollars worth of American aid a year has been given since then, despite widespread misgivings throughout the Hemisphere about undermining the social and political premises of the Alliance by supporting an undemocratic regime...
...Thus these countries are required to maintain an "open door policy" for the operations of foreign capital...
...15 More exactly, freedom to purchase from U.S...
...4 7?5L Boln...
...Magdoff, p. 152...
...the assistance given to Indonesia in 1965 is an example...
...Department of Commerce...
...of Countries Public and Private One or More World Bank group Public and Private Two or more Loans Mostly Public, Some Private Multinational Financial firms Chase Manhattan Bank Private One or more Loans Portfolio Investment Direct Investment Mostly Private, Some Public Industrial firms H.J...
...AID, Office of Private Resources, Working With Private Enterprise, 1968, p. 13...
...III, Nos...
...private investment...
...Consensus of Vina del Mar: In May, 1969, twenty- one Latin American foreign ministers drew up a docu- ment in Visa del Mar, Chile, for presentation to President Nixon, in which there was a series of recommendations concerning the indispensable premises for economic relations between imperialism and the member nations of the Organization of American States (OAS...
...8...
...Supporting assistance in Southeast Asia Military assistance grants...
...2) Losses due to expropriation or confiscation of the investment...
...business interests), promotes private capital expansion in Latin America and elsewhere...
...Former Secretary of Defense, Robert S. McNamara, testifying before the House Armed Services Committee (February 19, 1965), justified the need for supporting assistance: Toward Duvalier in Haiti we attempt to seek a minimum level of mutual accommodation emphasis added . But we are providing both economic and mili-tary assistance to the Dominican Republic as part of our efforts to help guide it back to democratic, constitutional government...
...A U.S...
...This use of funds reflects the desire to TABLE VI: Foreign Currency (Cooley) Loans 1 Authorized in FY 1965 to FY 1968 Latin America (Values expressed in dollars equivalents) Borrower Cemento Bolivia FACONEC n.a...
...1.00 The Other Side of the Nigerian Civil War .1.00 There's more if you write to us with feeling and 25c for mailing...
...The 1963 Foreign Assistance Act includes a provision according to which no money will be given (i.e., no AID money at all) to any country which has failed to enter into such an agreement...
...foreign aid are separated from commercial exports, the genuine commercial surplus has disappeared...
...Plug into exciting developments in dynamic Africa with the Africa Research Group...
...This emerged in vague form in the Peterson Report where a heavy emphasis is placed ort regionalism, multilateral institutions and multinational financial corporations...
...The Rockefeller Report, pp...
...17,907.Containing the recommendations of a Presidential Task Force set up by Mr...
...Apparently American Ambassador does not have copy of this proposed law although we understand that he has requested a copy...
...This proposal for dismantling AID reflects the main thrust of the Report: that "multilateralism" is more effective than bilateralism in channeling capital to the underdeveloped world...
...A.I.D...
...2) Corporation from country A makes a direct investment in country X with the participation of capital from country X. 3) Corporations from countries A and B (or more) make a direct investment in country X with or without the participation of capital in country X. Use of Capital Loans Capital Recipient Sector No...
...of Countries Public One Direct investments can be defined as transfers of capital in favour of enterprises established abroad in a form that allows the authors of the transfers to have control of the enterprises...
...246 000 651,000 Cement factory Cable manufacturer Pharmaceutical plant Steel tubing plant Poultry breeding farm Jute production Salt plant Housing construction Poultry plant construct, Cheese factory construct, Plant construct...
...Peterson, p. 7) 'In short, this AID category defines a mixed emergent fund used for military intervention and political bribery...
...McNamara understands it, security cannot be built up by weaponry or direct military intervention alone...
...AID FOR U.S...
...In a further concession to these demands, an AID press release of July 1, 1969, announced the President's decision to end additionality rules in foreign aid...
...It should be noted that the Hickenlooper Amendment has proven largely ineffective (e.g...
...1. 107.7 11 6.2 12i9 1, 121.3 1,242.2 Colombia...
...borrowers) to purchase more goods produced in the U.S.--what is commonly known as "tied-aid" provisions, legal conditions for foreign aid loans...
...In 1962, an OPR "extended risk guaranty" program was created which covered "equity investments and long term private loans against commercial as well as political risks...
...Imperative that you correct this misimpression on the part of officials of Honduras, otherwise American property apparently will be subject to expropriation without normal judicial and constitutional protection and without any prompt adequate and effective compensation...
...In short, increased foreign trade under the present structure of foreign ownership and control only enerate reater underdevelopment...
...Standard Fruit appreciates the hospitality it has received a i .. . . . rby being a good corporaULte citizen...
...16.What occured was not, in fact, elimination of additionality, as the press release would have us believe...
...Peterson proposes becomes grossly misleading, in that it hides the true nature of the program...
...Grant urplus military stocks...
...Servicing the debt--payment of interest and amortization--requires that a portion of future exports be devoted to this purposeinstead of buying needed imports...
...1 4. 4 4. 4 chit I...
...The transactions resulted in a mockery of Chileanization...
...We are still haunted by this concept of military hardware...
...6, Brazil...
...The Rockefeller Report on the Americas, New York Times Edition (Chicago: Quadrangle Books, 1969), p. 81...
...business interests...
...is using its shipments of food aid [i.e, PL 480, which is administered by AID] to India and other countries as a lever to prod them into adopting more realistic farm policies...
...Moreover, the subsidies force aid-recipients to purchase U.S...
...This reflects the strong economic relations the US enjoys and the relative security of the hemisphere...
...During fiscal 1968, 617 new coverages totaling $2.5 billion were written to protect investments in 221 projects in 50 countries...
...The positive list of eligible commodities under the new program loan was revised to eliminate those items in which the traditional U.S...
...government from direct in- volvement in protecting U.S...
...123-124...
...Hannah (appointed in October 1969) was brought to AID directly from the Presidency of Michigan State University (1941-1969), which conducts one of the largest AID technical assistance programs...
...The real losers, the underdeveloping countries, are made to look like beggars and thieves, shrewdly ripping-off the hard earned U.S...
...The annual congressional charade, combined with the program's intricate complexities, reinforces this Santa Claus complex...
...AID, as' a mere appendage of the State Department (which, in turn, reflects U.S...
...I m . 2.3 275.4 270...
...Many of these aspects of AID are examined here...
...FY 1965 Bolivia Colombia Chile Peru Peru Peru Peru Peru TOTAL FY 1966 Bolivia Colombia Coloabia Colobia Peru TOTAL FY 1967 Bolivia Bolivia Chile Chile Paraguay TOTAL FY 1968 Chile Chile Colombia TOTAL 1/ Local currency loans to U.S...
...The negative effects of dependency are compounded once equipment of a given technical specification has been purchased...
...1. 41...
...Thus, the miners, the plantation workers and the agriculturalists have been working longer and longer hours to obtain the same machinery needed for raising productivity...
...AID AND INDEBTEDNESS AID policies that foster economic dependency greatly aggravate the deepening spiral of external debt in the underdeveloping world...
...Source: 1967 Annual Report on Public Law 480, U.5...
...Monthly Economic Letter (April 1970, p. 45...
...firms or branches, affiliates or subsidiaries and to foreign private investors for purposes designed to increase consumption and mrlket for U.S...
...2, April 1970 Published monthly, except May-June and July-August, when it is published bi-monthly, at 418 West 25th Street, New York, New York 10001...
...COMPONENTS OF A PROGRAM-TYPE LOAN I - LOCAL CURRENCY ACCOUNT OR "COUNTERPARr'* Consists, e.g...
...export div...
...The administrative advantages of suc a separation are complex, though it is clear that it results in increased flexibility for both operations...
...The "security assistance" 3 programs, the panel advised, should be combined and centralized under legislative bill--an International Cooperation Act-separate from international development assistance...
...Financed by European, Japanese and North American capital, with the participation of 240 corporations, ADELA constitutes the most refined instrument yet to practice "the fine art of takeover" in Latin America...
...0 . 3...
...Some of the present AID structures will be preserved and, in fact, expanded within the framework of multilateralism (e.g., the insurance guarantee program for private investment...
...February 1967, p. 71...
...In his address to the Inter-American Press Association in Washington on October 31, 1969, he announced that "effective November 1 loan dollars sent to Latin America under AID be freed to allow purchases not only here, but anywhere in Latin America...
...capital, thanks to the efforts of AID...
...Confusing them in concept and connecting' them in administration detract from the effectiveness of both...
...It summarizes many of the points expressed in previous reports and was warmly received by the White House...
...In other industries (e.g...
...Box 57, Cathedral Park Station, New York, N.Y...
...Peterson, page 12) Peterson is not the only one to admit the political (security) nature of supporting assistance...
...S.7 3.7 (19...
...Meyer was a member of the executive board of the United Fruit Company and five other U.S...
...See NACLA Newsletter, Vol...
...Africa Research Group P.O...
...Fortune...
...It was decided by the Kennedy administration and the U.S...
...foreign assistance in 1969...
...Source: AID Annual Reports.13 4. Address to the American Society of Newspaper Editors, meeting in Montreal, Canada, May 18,1966...
...United Fruit has plenty to worry about, owning 216,400 acres in Honduras valued at $40 million and annually producing fruit exports worth over $60 million...
...2 0 UNITED FRUIT ASKS FOR AID According to the following letter from one Thomas E. Sunderland, President of United Fruit, any agrarian reform in Honduras, involving expropriation without compensation, should immediately evoke the suspension...
...For then the country imports capital goods from the same creditor nations and goes even further into debt: the capital goods are bought on credit and have to be paid for in the currency of the supplying country.l 0 In contrast to aid for Western European nations (mostly under the Marshall Plan), AID capital to Latin America is provided in the form of loans, not grantsll "The effect of this aid-giving is that an ever larger share of the aid itself is needed merely to service past aid...
...government does its best to help the agribusiness community...
...agribusiness in Latin America...
...In some industries (e.g...
...Hannah-was also a member of the International Development Advisory Board, a commission of private citizens, appointed (1950) by Truman and headed by Nelson Rockefeller, which formulated the original AID programs...
...3) Of course, Rockefeller's Chase Manhattan Bank is involved...
...Technical assistance grants...
...officials decided--in the name of "realism"--to back the Rio government...
...obligations (including obligations entered into pursuant to legislation other than Public Law 480...
...develop the economy and institutions necessai to meet the threat of insurgencies and build a stronger society...
...The funding of government budgets and use of economic funds on behalf of military and political operations is not then, a distortion of the goals of the Aid Program, but simply the practical implementation of the goals it is meant to achieve...
...We still tend to assume that it is primarily this military ingredient that creates security...
...Business Week (Jan...
...Public resources wisely used," says Mr...
...Venture capital seeks profit, not adventure...
...This includes the largest single project (over 25 million American taxpayer's dollars) ever undertaken by an American university abroad--which turned out to be a cover for CIA police-training operations in Viet Nam (1955-1963...
...Conversely, portfolio investments can be defined as transfers of capital which do not allow the authors of the transfers any control on the recipient enterprises or institutions...
...But as the Alliance proceded similar cases appeared...
...FOOTNOTES 1. Harry Magdoff, The Age of Imperialism, (New York, 1969), pp...
...2) The multinational firms can make their own portfolios or direct investments...
...goods instead of cheaper Japanese or European products...
...Country "Cooley loans" governments dcvelopmclt uses Argentina Bolivia Brazi I Chile Colombia Ecuador Mexico Paraguay Peru Uruguay Total 2,410 3,299 10, S05 1,200 6,762 1,755 4,380 8,857 39,168 18,199 26,147 301,127 59,923 37,646 7,230 10., 833 7,154 23, 02 14,941 111,37b 3,31 158 12,326 8,544 90,939 21,979 18,071 3,097 7,590 3,736 12,385 12...
...The panel urged Nixon to scrap the present organization of the Agency for International Development (AID) and to place all "development" assistance under guidelines provided by lending institutions of the World Bank...
...See also The Rockefeller Report, p. 86...
...The loans are granted at interest rates comparable to those charged by local development banks (the lowest in the Latin American capital market...
...business realized it was foolish to use AID funds for the purchase of goods which were already largely guaranteed...
...IV, No...
...The interests behind AID are well represented by John A. Hannah, head of AID, and Charles A. Meyer, Assistant Secretary of State for Inter-American Affairs and U.S...
...We have an ever-expanding selection of pamphlets and reprints...
...1.2 3.0 S. 0 11...
...13.9 14.6 53 8.2 6aS Jm.ics...
...2. S 6.7 S. 2 37.4 0O.0 3 .4 YOhzii...
...Hence, even if a Latin American country shows a favorable balance of trade in the national account statistics, it is erroneous to assume the country is acquiring capital...
...Box 226, Berkeley, Califo: rnia 94701 In The NACLA NEWSLETTER is published ten times a year by the North American Congress on Latin America...
...Statement issued by the AFL-CIO as reprinted in the Congressiona] Record, Senate, March 23, 1970, S4201...
...goods than similar goods produced elsewhere...
...Some of them appear to violate the sovereignty of other nations...
...The actions of the U.S...
...Such operations offer two main advantages: 1) they lessen the chances of losing investments or loans by placing the authority of a government and/or several other governments behind the capital, and 2) by pooling their resources with government backing, they defuse political opposition based on the charge of private greed...
...8 In Table V , it is clear that AID funds used for the purchase of goods produced in "offshore" (foreign) developed countries significantly declined in the 1960's (from 49 percent in FY 1960 to less than .5 percent in 1969...
...the government asked the U.S...
...assistance" programs...
...Since much confusion surrounds the definition of lending and investment organizations, it is important to understand them in terms of the source of capital, the use of capital and the capital recipient...
...Peterson, page 2...
...In 1954, the United States started the game of dumping agricultural surpluses on the world market...
...For the AFL-CIO, aid tied to the purchase of goods produced in the U.S...
...3. 1 0 16.0 7.4 n. 10.2 Peru...
...4.4 Sritio'rkaodoS...
...Now politically acceptable, the level of development aid will be maintained in the U.S...
...27 15.0 445...
...Budget support for political purposes is another kind of economic assistance for security purposes administered by AID...
...steel) technological progress by European and Japanese firms, combined with U.S...
...THE RELATION OF SECURITY TO DEVELOPMENT Recognizing that "in the past, the line of demarcation between security and development assistance was blurred," the Peterson Report contends that the two can and should be authorized and administered separately...
...After the Cuban revolution, the flow of funds dramatically increased with the founding of the Alliance for Progress...
...Africanists .50 Radical Study Guide to Africa...
...How Harvard Rules...
...private investment in Latin America...
...Ces tca...
...Of the appropriations for economic programs under the Foreign Assistance Act, 26 percent was actually for security purposes...
...1 99Z...
...In any case, the Administration has moved toward fix- ing a policy fr the region...
...An example of "United States uses" is the support of U.S...
...The new approach assigned great importance This Alliance for Progress is over 60 years old Long before the late President John F. Kennedy put the wheels of his Alliance for Progress into motion-even long before the late President Franklin D. Roosevelt instituted his Good Neighbor Policy (remember...
...the multilateral institutions will now accept the funds for efficient administration on behalf of U.S...
...Once high technology goods are planted by additionality provisions (see Table IV ), the automatic growth in imports lessens the need for such strict provisions...
...As of June 30, 1969, according to AID, governments of 88 countries had signed this investment agreement...
...consumption capacity, thereby forcing U.S...
...Equity coverage generally is limited to 50 percent of the realized loss on original investment...
...chemicals), domestic production has outstripped U.S...
...controlling interests would receive from the move: "Termination of the 'additionality' rules will make eligible for procurement under AID financing a broader range of U.S...
...Multilateral: For lending institutions...
...Harold Dunbar Cooley of North Carolina, who was the chairman of the House Committee on Agriculture when the program was enacted, represents those domestic U.S...
...companies doing business in Latin America...
...3) U.S...
...As part of the insurance program, the individual country enters into "investment agreements" with the U.S...
...VIETNAM AND EAST ASIA RECEIVE 87 PERCENT OF SUPPORTING ASSISTANCE A.l.D...
...at a request of United Fruit, worried about agrarian legislation in Honduras, the Hickenlooper Amendment19 was enacted...
...Cited as Peterson) 3. Extensive coverage has been given in NACLA Newsletters and in other publications to the role of security (i.e., counterinsurgency) policies in Latin America as well as their political impact...
...3. 3 275...
...1.0 oaduras...
...From 1947 to 1960, he was in charge of Sears Roebuck's LatinAmerican division and was a vice president of Sears when appointed to his present post on March 10, 1969...
...5u8 grnts fr Ppli...
...This brought the total outstanding coverage to over $6 billion, 2 1 an amount which represents a substantial portion of total U.S...
...Hard work, rather than more soft loans, is the answer," he says...
...The Brazilian government, for example, has been given large amounts of aid which has not been listed as supporting assistance, even though the use of that aid has been similar to those considered in the cases listed in Table III...
...The list of services administered by the Office is diverse--from the cooperative "fifty-fifty" surveys to help U.S...
...2 / Ai NACLA NEWSLETTER P.O...
...L 04...
...embassies in Latin American countries...
...1 NORTH AMERICAN CONGRESS ON LATIN AMERICA (NACLA) Vol...
...This has been accomplished by forcing foreign aid recipients (i.e...
...1961 1962 1963 1964 1965 1966 1967 1968 1969 Fiscol Year 99 PERCENT OF A.I.D.-FINANCED COMMODITIES WERE PURCHASED IN THE UNITED STATES DURING FISCAL YEAR 1969 TABLE V WORLD WIDE A.I.D.-FINANCED COMMODITY EXPENDITURES (Millions of Dollars) 1960, 1965-1969 Industry 1960 1965 1966 1967 1968 1969 Iron Steel 14 216 133 120 84 130 Miscellaneous Machinery Agriculture Industry 22 139 --- --- --Industrial --- --- 181 157 148 143 Chemicals 18 91 127 150 114 140 Motor Vehicles 41 91 92 127 86 79 Fertilizers 9 65 87 109 171 96 Construction Equipment 20 55 81 71 57 --Electrical Apparatus 11 51 62 75 69 66 Petroleum-Non-Fuels 17 40 31 57 37 40 Copper Products 0.3 39 40 --- --- -Railroad Equipment 22 34 30 24 25 --Textiles 4 32 29 27 15 12 Pulp Paper 3 28 26 38 41 39 Agricultural Equipment (Tractors 6 Parts) 3 --- 48 28 41 35 Rubber Products 4 --- 33 35 23 26 Nonferrous Metals --- --- --- 79 39 54 Engines Turbines --- --- --- 29 --- --Misc...
...W Ifre and emeriency relief (notincluding private assistance): Child and maternal feeding...
...For an excellent description of the first five years of Alliance funding, see Simon Hanson, Five Years of the Alliance for Progress, An Apprisal (Washington: The Inter-American Affairs Fess, 1967...
...As highly skilled image-manipulators, private financial interests created a positive image of foreign assistance thereby obscuring its real function...
...Despite demands or greater assistance in South America, the Nixon Adqinistration plans no sbstax- tial new economic-aid programs for tbb region...
...Hence, further borrowing is induced to pay for their regular imports...
...2. Task Force on International Development, U.S...
...produced goods ($4.06 billion worth in 1969) and the third largest recipient of U.S...
...1g However large may be the benefits of tied-aid for domestic U.S...
...Food for work grants...
...Refugees Totsl Total...
...of U.S...
...See Ramparts, April 1966...
...8. Survey of the Alliance for Progress: COLOMBIA-A Case History of U.S...
...foreign policy...
...corporations now enjoy in trade and investment throughout the "Free World" (i.e., capitalist world...
...1. 1 5.1 0.1 10.3 Trijlidad and Tago...
...In such cases, amounts included in this table for each use are determined by applying the specified percentages to the total dollar amount provided in ecah agreement...
...The vague term "multinational corporation" really includes three forms of capital organization: 1) Corporation from country A makes a direct investment in country X (or additional countries...
...Heinz., International Minerals & Chemical Corp., and dozens of other agribusiness heavies have siezed the opportunity...
...AFRICA, dig it Tired of the Latin American scene...
...Despite assurances by the President in the presence of the American Ambassador that copy of the proposed law would be shown us today, Government officials have now declined to show us the proposed law...
...A very large insurance company might insure smaller insurance companies...
...We urgently need action by State Department through American Ambassador to get copy of this proposed law before it is too late to take action to protect American interests...
...1 TABLE V TREND OF AID COMMODITY EXPENDITURES BY SOURCE OF PURCHASES Total Source of Purchase (Percent) Commodity Offshore Offshore Fiscal Expenditures United Developed Developing Year (US $millions) States Countries Countries 1959 $1,002.1 47% 42% 11% 1960 1,040.2 41 49 10 1961 1,054.6 44 47 9 1962 883.9 66 16 18 1963 1,170.0 79 7 14 1964 1,165.2 87 3 10 1965 1,287.8 92 2 6 1966 1,231.6 90 1 9 1967 1,402.3 96 1 3 1968 1,161.2 98 1 1 1969 1,024.6 99 - 1 Source: AIDOperations Report (June 30, 1969...
...c) AID funds directly subsidize U.S...
...7 From 1964 on, the rise in tied-aid purchases was further refined by new loan provisions, known as "additionality,' which not only forced loan recipients to purchase U.S...
...It parallels the work of other Washingtonbased agencies (i.e., the U.S...
...14 2 AID basically runs four programs: development loans, supporting assistance, technical assistance and contingency funds, They all promote and preserve "The Open Door" U.S...
...Because of the rise in 6 PERCENT PURCHASED IN U.S...
...For instance, several recipient countries (88 to be exact) now provide a much-desired investment guarantee program for U.S...
...4 S61 9 .. ria...
...12 please two very influential groups...
...The Report does not question the over-all goals of the U.S...
...has meant the creation of jobs for American labor...
...direct investments (about $12 billion), commands much attention from AID...
...The chaos of the 1930's (with the defaulting of loans and sharp currency fluctuations) forced private financial interests to creat first bilateral and later multilateral organizations to coordinate effective worldwide capital penetration...
...Aid is primarily a creature of the Cold War, intended "to support the countries around the periphery of the communist empire...Now the great emphasis is still upon those countries, like Korea, on the periphery of a Communist country...
...The two types of assistance tend to merge both in theory and in practice...
...costs budget support Cooley (embassy, etc...
...73-75, 371-372...
...b) Aid funds help break down tax, tariff, currency conversion and capital market obstacles to investment and trade...
...Thus, OPR was dedicated to engage more private participation in the development business...
...corporations-taxes, tariffs, foreign exchange, repatriation of profits, etc...
...Among the measures proposed in that document are the following: To revise the conditions governing external financial co-operation so-as to make it a real transfer of resources and preserve the receiving country's capacity to take basic economic policy decisions...
...Another 39 percent has gone to developed countries, mostly in the form of grants under the Marshall Plan for rebuilding capitalism...
...2 Loans must be repaid with interest in dollars and the only source of dollars is increased ,exports...
...BosToN, September 7, 1962...
...Chase controls a significant portion of Panama's rising exports of beef...
...Instead, by applying additionality, they could assure the sale of goods with poor competetive advantage or low demand...
...I4 27...
...Source: "U.S...
...in which the "host government" promises not to expropriate or discriminate against U.S...
...warn against the new trends in aid policy as "harmful to the best interests of the American people...
...The capabilities of ADELA to mobilize private capital into the "development" business, on a scope and with a purpose similar to the International Finance Corporation (IFC), will be discussed in Part II of this article...
...ogr oms a s ahl i.zed udr Tile X f tn Foreign Asisn Ac,, - FY 196 $8 illon and FY 1969 10 illion...
...Multilateral assistance and operations, in the form of the World Bank group, is almost totally aloof and invulnerable to criticism (there is not even one major critical work available on the World Bank...
...We hope that this telegram and previous letters from Victor Folsom supplementing what you are getting from your Ambassador will help you to take the necessary action which I am sure the Department desires under circumstances of this kind...
...These demands were further echoed by traveler-Governor Nelson Rockefeller after his fact-finding trip to Latin America in 1969, and endorsed by the Peterson Report...
...Appreciate the difficulties under which you are working and know of your desire to protect American investment abroad...
...The archetype is United Fruit Co.--the pioneer of agribusiness overseas--with banana plantations all over Central America and the Colombian Atlantic Coast...
...Box 213 Cambridge, Mass...
...It only remains to examine some other features of the program linked to the activities of the Agency for International Development (AID), particularly the "development lending" activities...
...For technical assistance...
...The funds are administered under direction of the local U.S...
...1.7 13...
...Rockefeller urged support for this type of private insurance program: Every.effort should be made to form a private United States insurance group to take over in- surance of private foreign investment under a reinsurance.arrangement with the Overseas Pri- vate Investment Corporation....This would fur- ther remove the U.S...
...This insurance is designed to cover the following "political risks": (1) Inability to convert into dollars foreign currency which represents earnings on investment or compensation for sale...
...Gaud has incessantly found new ways of pumping private capital into the development business...
...In addition, a major share of the most dynamic and profitable Latin American export industries are owned by foreigners, notably from the United States...
...According to the United Nations' External Financing in Latin America (1965, p. 21), Type of Organization Bilateral Example U.S...
...5) The rush to agribusiness can e supported with other examples...
...Cooley, sponsor of this provision of the law...
...Responsible officials of ours now in Honduras continue to have the impression that Honduran officials believe this so-called agrarian reform law either has the tacit approval of the United States or that in any event the United States does not object strenuously to its passage...
...3. 9 23.8 32.7 44.0 234.7 279 .6 El Saledor...
...As documented in Table VI', the most important use made of these counterpart funds was the budgeting of the "recipient" governments' expenditures...
...Industrial Commodities --- --- --- 41 --- 41 Foodstuffs --- --- --- --- --- 7 Other I Unclassified --- --- --- --- --- 106 TOTAL AID-FINANCED COMMODITY PURCHASES 1,040 PURCHASES IN U.S...
...We have attempted to point out provisions of the Hickenlooper amendment but our representatives in Honduras have been unable to find that the Honduran Government has been advised as to the seriousness of this portion of our law...
...1961...
...n Minimum contribution for one-year subscription: $5.00...
...Such corporations are naturally interested in greater profits rather than evenly distributed socio-economic development...
...The loans enable American corporations to buy land, finance construction, and in general to pay for initial costs...
...5S43...
...The demands included by Latin American elites in the so-called Consensus of Vifia del Mar 1 3 give an index of the resulting pressures...
...Nixon to undertake a thorough study of the Foreign Assistance Program of the United States, the Peterson Report 2 deserves special attention...
...Goods, U.S...
...u w 1'&Avu by being a good corporate citizen...
...Unfortunately, the growth in exports from Latin America has lagged and the terms of trade have deteriorated (prices for primary goods have fallen while prices for finished products have risen...
...exports--that is, preventing a shift of Colombia's non-AID resources to European and other suppliers...
...It also has enabled the United States to give temporary help to governments while regular U.S...
...Pipe Construction Int...
...Business Week reports that "the U.S...
...TABLE V11, Latin America: Title , PL 480 -- Uses of foreign currency as provided in agreements signed July 1, 1954, through Dec...
...firms to export more goods...
...Row totals give the total amount In agreements for particular countries...
...Accordingly, in fiscal 1969, 99 percent of all AID-finapced commodities were purchased in the U.S., as compared with 41 percent in fiscal 1960...
...THOMAS E. SUNDERLAN, President, United Fruit Co...
...In a short time, such imports require a string of further imports from the * According to A. Gundel Frank's analysis, the state of underdevelopment in Third World countries is increasing due to processes inherent in the metropolis-satellite relationship...
...Finally, under category (2), loan money is provided for U.S...
...Such "client" countries have received, in the form of grants, about 30 percent of the military and economic funds from AID, primarily for political bribery and military intervention...
...Officials had seized anxiously on any signs of a return to constitutionalism...
...Thus it is of considerable importance to reformulate U.S...
...Business Week, April 4, 1970, page 38...
...International Develop ent (nit including private investment): Bilateral: Development loans...
...The Pearson Commission revealed that an incredible 87 percent of new loans flowing from the developed to the underdeveloping countries were needed just to finance outstanding debts...
...6. Since 1961, the AID-financed increase in the export of U.S...
...In 1961, the White House office of "Food for Peace" was established...
...development assistance programs were being prepared...
...firms working abroad...
...Thus the corporate establishment, as represented by Nelson Rockefeller and OPIC-advocate Jacob Javits, supports the continued existence of the entire program...
...Aid, U.S...
...17 Some interest groups in the U.S...
...Export-Import Bank and its private insurance affiliate, the Commodity Credit Corporation, the World Bank group, the InterAmerican Development Bank and the U.S...
...Expansion has been made possible by the increasing utilization of the state apparatus and a drastic increase in what is broadly termed "economic assistance...
...9. Commission on International Development, Partners in Development (New York, 1969), pp...
...But naturally these conditions vary according to circumstances and the client...
...Foreign Aid - Part I..........................1 The Pacific Basin: Notes on Japanese Investments in Peru...
...Agency for International Development (AID) and its predecessors agencies, is by far the largest economic undertaking, utilizing some $130 billion since 1946...
...4 834...
...THE NIXON ADMINISTRATION STRATEGY Fortune magazine (October, 1969) expressed the new Administration's policy vis-a-vis economic assistance to Latin America...
...For further explanation, see A.G, Frank, Capitalism and Underdevelopment in Latin America (New York: Monthly Review Press, 1968...
...2 2 HELP FOR MULTINATIONAL GROUPS The myriad of incentives to the private multinational firms goes further...
...foreign assistance program but aims to find more subtle ways in which it can better serve as an instrument of U.S...
...0 9.0 5.2 2 Uuuay...
...Inrthe percentage of tied-aid, congressional cuts in the AID budget, beginning in fiscal 1967, did not significantly decrease the dollar amount spent on U.S...
...Its leadership recently declared: The Executive Council reaffirms its opposition to all moves, under whatever guise, to weaken or eliminate the Agency for International Development by 're-structuring' it in any manner which would tend to deprive it of its vital functions...
...5 and 10, p. 7 and 13, respectively...
...Such major exports as oil, minerals and manufactured goods are almost totally owned by foreigners...
...Purchase of goods produced in offshore underdeveloping* countries rose slightly in the early 1960's...
...3 aea . - 7 SIlatt7 cAmera...
...Taken together, however, they seriously weaken our efforts to assist developing countries...
...Equip...
...embassy according to the following euphemistic breakdown: (1) "United States uses" and (2), "country uses...
...In a modernizing society, security means development...
...Government Printing Office, 1968, page 111...
...0 320.1 Ecuador...
...In 1969, it was virtually unchanged from the previous year at about $600 million--a figure that contrasts strikingly with the $6.8 billion surplus reached in 1964...
...5...
...agricultural interests which benefit greatly from these surplus sales...
...coordinator of the Alliance for Progress...
...and the recipient country is once again pacified by appearances...
...The military expertise in the Pentagon will now be able to efficiently execute security measures without inferring that they have anything to do with development...
...international business interests backing the government that a single foreign aid coordinating agency be set up: the Agency for International Development (AID...
...products which had not hitherto had an appreciable share of the Colombian market...
...same source for any further maintenance and expansion...
...eseas Loins and Crnts., u 1, 11S tiinh June MS Waugh ." J Spoll report prepare d kr tISe House oreign Affirs Commitlei, by the Aan y tr Intel"ialel OCbovpument ID), ar...
...7. First National City Bank (N.Y...
...5. Stephen S. Rosenfeld in The Washington Post, January 11, 1969...
...In the case of Latin America specifically, the pattern of intervention and bribery is clear...
...IV, No...
...Subscription price: $5 per year...
...5 It may be thought that the Brazilian case constitutes an isolated situation...
...International Dependency - How America Underdevelops The World...
...Ll 8L9 17.7 103.9 213.3 392.2 Other Wesi Indies...
...supporting assistance (including military aid) and contigency funds are relatively small...
...According to Senator Fulbright (Congressional Record, Jan...
...Thus "underdeveloping" is a more accurate term than "developing...
...These giants sell through their foreign branches and their vested interests shape the new direction in aid policy.9 GOVERNMENT-SPONSORED BUSINESS OPERATIONS In addition to increasing U.S...
...Expansion Ranch development program Sewing machine plant Est...
...The rest, about 30 percent, flowed to the other underdeveloped nations, with 70 percent of the world's population, mostly in the form of loans...
...1.00 The Extended Family: A Tribal Analysis of U.S...
...1969, undertook the task of creating an ambitious investment insurance scheme which he is now trying to sell on a world-wide scale...
...is to the disadvantage of multinational corporations...
...28, 1970, p. 768) U.S...
...Security: For Vietnam: Military equipment and supplies...
...The new list was designed to expand exports of those U.S...
...1 6 The release then explained the benefits U.S...
...The U.S...
...TABLEII "SUPPORTING ASSISTANCE" FOR EMERGENCY SITUATIONS IN LATIN MAER!A 196S-1970(Thousands of dollars) 1965 1966 1967 1968 1969 1970 Bolivia 4,752 3,200 450 4,950 --- --Dooinican Republic 23,350 3S.141 25,000 16.420 40 300 Gutemala -- --- --- 295 -Guyana --- -- --- 2,500 --Haiti 1,398 1,400 1,400 2,000 1,871 1,500 Mexico 245 --- __ __ --- - pan,,a ...--- -- 233 Surina 1.000...
...exports, AID programs have been used to stimulate U.S...
...inflation and labor costs, has eroded the world market competitive position of domestically produced goods...
...8 MULTINATIONALISM ON THE MOVE a As we have seen,the ability of Latin American private importers--the sector which receives the most aid financing--to act according to profit motives has been restricted by the AID provisions discussed...
...2/ Agreements provide that specific percentages of foreign currency proceeds be reserved for payments of U.S...
...and (3) Damage to physical assets from acts of war, revolution or insurrection...
...Eduardo Frei won the election in 1964 with a promise to "Chileanize" copper...
...loans I FOREIGN EXCHANGE COMPONENT (DOLLARS) AID-financed imports ("tied" purchases) AID elaborates a list of eligible commodities ' Local counterpart currencies generated by PL 480 are used in the same way...
...9 Moreover, the larger the debt, the greater the influence of foreign lending agencies for opening up a country to profitable investment (i.e., policies effecting U.S...
...Latin America, the second largest importer of U.S...
...aid loans) of Latin Americans to goods produced within the U.S...
...business find and appraise investment opportunities and reports on "investment climates" to the widely used program of "political risk insurance...
...The U.S...
...317.7 1,411.2 1,103 10,654.4 11,64.7 _ _ ____ n...
...corporations...
...As time went on it was realized that the program could be fruitfully used as a valuable instrument f foreign policy and with the advent of Kennedy to the presidency, the idea gained momentum...
...products permissible under AID financing...
...Without the glitter that was given to earlier official documents (Rockefeller, Korry and Pearson), the Peterson Report is plainly a more sophisticated addition to the Code of Intervention...
...commodities has alleviated the overall deterioration in the U.S...
...Construct warehouse facil...
...U.S...
...goods, but also required that these goods be from a specially selected list of products...
...Animal feed plant Cement plant expansion Housing units Chemical plant expansion Poultry Prod...
...agricultural and industrial goods...
...see Table II...
...Security is not traditional military activity, though it may encompass it.Nor is there a distinction in practice...
...flag vessels, since AID-supported exports must be transported in such ships...
...goods...
...Military equipment loans...
...These words of Richard Nixon outline the philosophy that led to the creation of the Office of Private Resources (OPR) of AID in 1967...
...with influence over a nation's currency, often stimulating inflation, and controlling the economy's direction...
...share of the Colombian market was more than 50 percent...
...The project provides an outstanding example of the "incentive effect" given to U.S...
...They also increase costs by requiring, for example, that imports for a construction project come from the United States and that United States engineering firms be employed regardless of cost.14 Nixon partially yielded to the multinational and Viia del Mar demands in new policy formulations last fall...
...The deficits are financed by borrowing from the creditor countries...
...353 506,226 114,850 191,020 1/ Many agreements provide for the various currency uses in terms of percentages of the amount of local currency accruing pursuant to sales made under each agreement...
...Washington paved the way by manipulating through aid...
...As Mr...
...7 0 4. 10.3 100.1 outemrola...
...AID has guaranteed, for example, 75 percent of a $2 million issue of notes of the multimillion dollar group ADELA (The Atlantic Group for the Development of Latin America), the giant promoter of private multinational operations in Latin America...
...Here are some examples: (1) Quaker Oats, Coca-Cola, and other companies are manufacturing and selling "high protein" beverages...
...Washington, 1969, pp...
...The reader is referred to the articles by Roger Countill in the Guardian (1968-70) and articles by Carol Brightman and Michael Klare in the NACLA Newsletter, "The Science of Neo-Colonialism" (February and March, 1970...
...The letter is reprinted from: Marvin D. Bernstein, (ed...
...Foreign Assistance in the 1970's: A New Approach (Washington, D.C., Government Printing Office, March 4, 1970...
...We have left the role of the international financial groups for Part II of this article, forthcoming in the May-June NACLA Newsletter...
...51-52...
...Chile: A Market for U.S...
...Expanding and strengthening the Empire involves the constant search for native partners in the satellites...
...24.4 24.4 a...
...GOODS In fiscal year 1969, AID programs financed more than $1.01 billion in U.S...
...Table I shows the totals by country for military and econom- ic assistance from 1946-66...
...Selection of the eligible goods is not made to promote economic development abroad but to influence the "recipient" country's economic and industrial policies...
...ia...
...The Assistant Secretary of State for Inter-American Affairs, Charles Meyer, is convinced that a larger CONTINGENCY FUND 1001 100 I o IF io l I 0.2 2 Near East South Asia Latin America East Asia Vietnam Africa TABLE 1 US MILITARY AND ECONOMIC AID - 1945 - 1966 FiN:al yea, I15s rh ro :191 -i Ceun!ri.-s l:caf cGt,:mic Tott &lilitll rrl Eon=!: Tca Latem America...
...T1E OMNIPRESENT AID Prior to 1961 (the year in which President Kennedy inaugurated the Alliance for Progress), U.S...
...Table IV breaks down AID-financed commodity exports by industrial sectors and clearly shows a significant rise in such programs from 160 on...
...1/ (in thousand dollar equivalents) 104(e) loans to private 104(f) loans 104(f) grants 2/ enterprise to foreign for economic U.S...
...Bilateralism has been around for a long time...
...5 After Brazil fell under military rule in 1964, U.S...
...of local govt...
...As a result of these two factors, the dependency of domestic firms on AID-financed exports has increased...
...aid" appropriations were divided among competing agencies--the State Department, the International Cooperation Administration (and its Development Loan Fund), the Export-Import Bank, the Fulbright Commission, the Department of Agriculture's Surplus Food Division, etc...
...4 13.3 13.7 2.3 170.7 173.0 hl'g...
...3 volume of US aid is not the answer to the contin- ent's problems...
...Standard Fruit Company and the people of Honduras have worked in harmony, striving for the common good...
...Agricultural commodity credit sales...
...Total...
...Almost 70 percent of the economic aid was in the form of repayable loans...
...agricultural comodities...
...workers...
...U.S...
...In India, the government set out to provide a more inviting climate for foreign investors...
...It agreed to drop distribution and price controls on fertilizer for seven years, and to grant foreign companies management control even when they invested in partnership with the government...
...We still tend to conceive of national security almost solely as a state of armed readiness: a vast, awesome arsenal of weaponry...
...0 -1...
...5 52...
...overcome economic instability or other problems related to the burden of military expenditures...
...STANDARD FRUIT and STEAMSHIP COMPANY General Office--NEW ORLEANS, U.S.A...
...To guide this capital to higher-risk areas, the Federal Government presently offers a system of insurance and guarantees...
...business: a) AID funds act as a subsidy for the export of domestically produced U.S...
...partner [Kennecott] to continue managing El Teniente and even to keep a majority on the board of Sociedad Minera El Teniente, S.A., the joint venture that operates the mine...
...On March 8, 1968, he declared that the "Green Revolution" had begun and thus signalled the massive takeover by U.S...
...23 Forced to bargain for needed food, the recipient government can be induced to set the stage for agribusiness...
...0 114.7 17.1 303...
...The Honorable EDvwIN M. MArrm, Assistant Secretary of State, Department of Stat, Washington, D.C.: . . .Events today indicate the situation in Honduras is getting more serious with the passage of time...
...but then declined sharply to a low of one percent in FY 1969...
...S S 1.1 432 44.J Aio...
...This was on the grounds that these items would be imported from the United States under normal business conditions...
...reprinted from Latin American Report i W I 0 e-- 4.1-- '1J__A-___ t---j- F+ 4-nari+- o- ohr~i tl0to local currencies accumulated in return for sales of the surplus (i.e., counterpart funds), which are manipulated to serve U.S...
...PROGRAMS -. MOST DEVELOPMENT LOANS GO TO NESA AND LATIN AMERICA...
...1I IS 1 10 47.1 149.0 Cub (ended 1961...
...In order to gain support for the entire "Food for Peace" program, this interest group offered the Cooley loan fund as an attraction to the multinational corporations, including those in agribusiness...
...merchandise trade surplus, which goes back to the last decade of the 19th century, has been sharply eroded over the past five years...
...6 40...
...Emergency relief...
...balance of payments...
...Commitments FY 1968 vs FY 1969- Appropriations Category by Region (Millions of Dollars) DEVELOPMENT LOAN* Near East Latin South Asia America SUPPORTING ASSISTANCE East Asia Vietnam Africa TECHNICAL COOPERATION/DEVELOPMENT GRANTS* 78 74 3532 _ I 0 I Near East Latin East Asia Vietnam Africa South Asia America A blldl AMnne fn Pnrgren funds...
...This process usually follows the following lines: Fluctuations in the demand for and hence the price of the primary products exported by the underdeveloped countries creates frequent deficits...
...It finances Panamanian cattle ranchers by taking mortgages on their steers nd marking them with the Chase Manhattan brand...
...The way in which indebtedness accumulates is explained by Magdoff...
...4 278.17 ILS 9111...
...Of the total debt, Latin American nations were responsible for $14.7 billion in 1968 (from $4 billion in 1956) and pay almost $2 billion in service charges yearly...
...welfare and emergency relief programs, 6 percent...
...Amounts shown are subject to adjustment when actual commodity purchases and currency allocations have been made...
...Consequently, they employ a large number of U.S...
...Peterson analyzed all foreign assistance expenditures according to the functions which they serve, and found that "security programs accounted for 52 percent of U.S...
...Needless to say, the agrarian reform never went through in United Fruit's most important host country...
...In the Annual Report to Congress on the Foreign Assistance Program (1969), the following definition appears: Supporting Assistance is economic aid provided to certain countries to help: -- contribute to the common defense or to provid for their internal security...
...The export earnings or profits from that trade is really made by corporations under the control and re-investment policy of foreigners...
...What has been the success story of U.S...
...As documented in TableIII, supporting assistance hasaccompanied several direct U.S...
...Standard policy contracts cover a variety of operations: bank loans, branch bank operations, investment companies, construction companies, and public stock issues...
...10025 P.O...
...L 112.8 2.4 745...
...military interventions (i.e., Bolivia, Dominican Republic and Panama) and/or has been given to countries facing extreme instability (emergency situations in Guatemala, Guyana, Haiti, and Trinidad and Tobago...
...This cycle of economic-financial dependency becomes even more pronounced, paradoxically, as a country tries to advance via the established capitalist path...
...Gaud, "can attract more private resources to the development job...
...Copyright()1970 by the North American Congress on Latin America, Inc...
...Heinz Co...
...1966 to Oct...
Vol. 4 • April 1970 • No. 2
