The Miracle

ARGENTINA

Part of the British press met the U.S. State Department's recent blast against Argentina (TIME, Aug. 7) with a counterblast. Wrote the London Daily Mail's Alastair Forbes last week: "Argentina has found herself in the same state as a small Chicago shopkeeper of the old days who refused to pay 'protection' to the local gang." He predicted that bullying the Argentine military Government would only increase its popularity, that sanctions against Argentina would damage the Allies.

London's weighty Economist took the same line: "In British eyes, American policy in Argentina is suspected of being moved ... by the desire to extend the influence of Washington from the northern half of South America to Cape Horn."

Screams & Growls. Gleefully, the Argentine press reprinted this reaction as proof that Britain and the U.S. would not unite to put economic pressure on Argentina. Washington, still confident that Britain would cooperate if called upon, dismissed the London press comments as merely the screams of British moneymen fearful for their Argentine investments. Acting Secretary of State Edward R. Stettinius quoted last week's speech by Winston Churchill, "Argentina . . . has chosen to dally with evil, and not only with evil but with the losing side."

But Churchill did not even brush the nub of the problem: joint U.S.-British economic pressure. Britain needs Argentine beef, which she does not believe the U.S. could replace. She wants to keep her Argentine investments, the most important foreign holdings she has left. Valuing Argentina as a trade partner, Britain is not eager to see her dragged into, the U.S. orbit. If Britain imposes economic sanctions on Argentina at U.S. request, it will be with growling reluctance. Said the Economist: "Gain must be counted against loss. And in this case there would be enormous loss for a very questionable gain."

Raised Eyebrows. Meanwhile other Latin American countries were raising eyebrows. Their governments supported the U.S. But unofficially the old cry of "Yankee imperialism" was coming back into fashion. There were much less democratic governments than Argentina's in Latin America. But none of these was singled out as "Nazi." "Could it be," Latin Americans asked, "that Argentina is being punished for standing up against the U.S.?"

Said a distinguished South American diplomat and longtime friend of the U.S.: "During the last two years the United States has accomplished three miracles. The first is the organization of the war economy. Second: from a peaceful nation, America has turned itself into the greatest military power. But the third and greatest miracle is that the U.S. has made Argentina almost popular in Latin America."

This file is automatically generated by a robot program, so reader's discretion is required.