Unfavorable Climate

Washington's Institute of Inter-American Studies reported last week that more than half the return on U.S. investments abroad now comes from Latin America.

The U.S. investment in Latin America totals about $3 billion,* the annual return $400 million. Favorite U.S. investment area: Cuba with $590 million (sugar); Argentina, $497 million (meat packing); Mexico, $422 million (mining); Venezuela, $399 million (oil); Chile, $388 million (copper, nitrates), and Brazil with $334 million (public utilities). Nicaragua, with only $4 million, comes last.

Mostly, the investments were made years ago. Since the war new private capital has fought shy of Latin America. By putting up bars to payment of interest and principal, Latinos have done much to frighten new private U.S. capital away./- Last month Brazil reimposed a 5% tax on exported profits, and Argentina allows no dollars to leave unless matched by newly invested dollars. In every republic except Venezuela remittances are subject to costly exchange-control delays. In Socialist-run Venezuela, which currently offers the best Latin American climate for new private enterprise, U.S. oil companies plan to invest $300 million in the next two years.

* Compared with $4 billion in Europe.

/- Another bugaboo: $475 million worth of defaulted Latino government bonds.

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