The Hemisphere: Misconception Set Straight

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One of the noisiest charges leveled against the U.S. by Latin America's Communists (see below) and rabid nationalists is that Yankee capital is used to exploit rather than assist underdeveloped nations. Last week Under Secretary of State C. Douglas Dillon traveled to Puerto Rico to cite the facts. Said Dillon, speaking to a conference of hemisphere economists, educators and government officials : "Instead of extracting wealth, U.S. firms are creating new wealth for host countries." Items:

¶ Private capital investment in Latin America now totals $9 billion more than the U.S. businessman has invested anywhere in the world except Canada,

¶ Taxes paid by U.S. companies amount to 15% of all revenues collected by Latin American governments, and those tax payments are twice as big as the profits U.S. firms take out of Latin America.

¶ Wages and other costs take 75% of revenues of U.S. firms in Latin America: in terms of foreign exchange, they earn their hosts up to $1 billion each year.

¶ Jobs with U.S. firms totaled 625,000 at last tabulation, and only 9,000 of them were held by U.S. citizens.

Said Dillon: "Our dedication to building a stronger, freer hemisphere must not be hampered by misconceptions."