Within the Family

The men of Chapultepec faced not only world problems (see above), but also a lot of family business.

Money Talks. Hardheaded, hard-fisted William L. Clayton made his first major pronouncement since he became Assistant Secretary of State in charge of U.S. economic policy. With a refreshing scorn for diplomatic doubletalk, he told the Latin Americans not to kid themselves about that policy in the postwar world.

First thing for them to realize, said he, was that the U.S. must look after its own health if it is to help anybody else. Second, said he, the U.S. cannot continue peacetime purchases in Latin America at the wartime rate (more than $5,000,000,000 in four and a half years). He added:

"It should be further said that these transactions have been abnormal both in size and character, that they were entered into with the purpose of defeating a powerful and ruthless enemy intent upon the destruction of your liberty and ours, that wars always come to an end, and that when this one finally [ends] it will open to all of us an untrod and unknown road on which we must travel in converting from a war economy to a peace economy." On this road, said he, the U.S. in self-interest will do its utmost to cushion the shock of Latin American reconversion, stimulate postwar trade. Said Clayton: "We recognize our responsibility in this field, and we propose to meet it, consistent with bur laws, our public opinion and a due regard for our own economy."

The U.S. delegation then submitted an economic charter for the Americas, based on Will Clayton's principles. Prime points: 1) reduce tariffs and "work against economic nationalism in all its forms"; 2) cooperate to prevent practices "by cartels or through other private business arrangements which obstruct international trade"; 3) leave international business to private enterprise and "refrain from the establishment of state enterprises for the conduct of trade."

New Union. A drive by Mexico to rejuvenate the languishing Pan American Union confronted Ed Stettinius and his No. 1 political assistant, Nelson Rockefeller, with a challenge to their Hemisphere leadership. They met it skillfully, yielded on most points without losing too much face or endangering the U.S. position on more vital issues. Important changes:

P:The permanent chairmanship, now held by the U.S. Secretary of State, will be rotated among the member countries.

P:Latin Ambassadors to Washington, who now make up the Union's board of directors, will be replaced by other representatives (Latins felt that the Ambassadors were subject to undue State Department pressure).

P:The Union will hold a conference of Foreign Ministers every year, a full meeting of member states every four years. All meetings hitherto have been subject to call (i.e., at the pleasure of the U.S.).

Gracefully making these concessions, the U.S. also won a point. The Union's critics agreed to leave the headquarters in Washington.

The Face at the Door. The hardest test of U.S. leadership and Pan American unity came last. The issue: Argentina, banned from the Conference at U.S. insistence.

The Buenos Aires jingoes last week made some gestures toward the U.S. (see LATIN AMERICA). But the U.S. still staked its whole position at Mexico City on the proposition that the present Argentine Government was unfit for decent company.

The other Latin Governments agreed in principle. But they knew all too well that no Pan-American system or agreement could long survive without big, rich and powerful Argentina. And some felt that more skillful handling in the past by the U.S. might have kept Argentina in line. For the time being they might let the U.S. evade the issue. But the U.S. could not evade Latin America's uneasiness over Argentina's place in the Hemisphere.

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