World: THE ROCKEFELLER REPORT ON LATIN AMERICA

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Rockefeller maintains that the U.S. has "intervened, usually with the best of intentions, in almost every aspect" of its neighbors' economic policies and programs. He notes deep resentment in Latin America over the way in which U.S. aid programs have all too often been "distorted to serve a variety of purposes in the U.S. having nothing to do with the aspirations and interests of its neighbors." Rockefeller feels that the U.S. should press for increased trade within the hemisphere. Doubling present volume by 1976 would be "realistic" but attainable only by revising U.S. quotas and tariffs on such Latin American exports as coffee, sugar and meat. Equally important is the easing of cumbersome aid restrictions. Along with loosing "tied" aid dollars, a step already ordered by Nixon, the U.S. should seek the suspension or modification of congressional amendments that threaten to cut aid to nations that expropriate U.S. private investment holdings without quick compensation, that buy "sophisticated" weapons, or that seize U.S. fishing boats. Among such codicils is the well-known Hickenlooper Amendment, which could be invoked to punish Peru for its nationalization of the American-owned International Petroleum Co. The U.S. should also abandon the practice, says Rockefeller, of demanding that at least half of all goods bought with American aid funds be transported in U.S. flagships—a hidden subsidy to the high-priced U.S. shipping industry that takes an estimated 200 out of every aid dollar. Rockefeller also urges that private U.S. investment, regarded with suspicion through much of Latin America, should be encouraged. U.S. tax rules could be eased, and efforts could be made to protect American investors abroad through private insurance rather than by the threat of U.S. Government sanctions.

Hemispheric Defense

The report notes that Latin American nations spend a smaller percentage of their gross national products on defense than any other area of the world except Africa south of the Sahara. It recommends that the U.S. reverse the recent trend to reduce its security assistance. "At the moment there is only one Castro among the 26 nations of the hemisphere; there can well be more in the future," says Rockefeller. Moreover, the U.S. should not turn down requests from more advanced hemisphere nations for modern military equipment. "Realistically," he explains, "it will be purchased from other sources, East or West, and this would not be compatible with the U.S.'s best interests."

National Interest