LOAN FOR BRAZIL

Hokitika Guardian, 31 January 1931, Page 6

LOAN FOR BRAZIL

BRITISH FINANCIAL ASSISTANCE.

(Otago Daily Times)

It is reported that the house ol Rothschild lias arranged a. credit of .£6,500,000 for a period of eighteen months for the Bank of Brazil, under guarantee of the Bra/.illian Government, this being the first stage in Lite reorganisation of the South American State which is being carried out in accordance with the advice of Sir Otto Niomeyer. The tradition of looking to London for money lias been long established in Brazil, and British capital invested in that republic is estimated at about £.‘1()0,()()(},1)00, or six times as much as the American • iuvesmeitt. The country lias one dominating crop—that of coffee—which goes mostly to the United States, and nothing for which there is the same sort of demand in Britain as there is for the meat of Argentina. The resources of Brazil, however, arc great, and the future of the country is regarded as assured. The infection of revolution lias been somewhat widespread of late in South America and Brazil lias not escaped political disturbances, but she is too much dependent upon foreign capital and foreign immigration to allow competition between politicians to jeopardise foreign interests. Both Britain and the United States are closely interested in the development of trade with the South American peoples, and evidently in American commercial circles the tour upon which ilit' Priiice of Wales lias now started is the subject of speculative regard concerning its possible business relations between Great Britain and the countries visited by him. A statement in the New York Times conveys the impression that American business men are not at all sure that greater benefits may not result for the British manufacturers, commerce and finance from the Prince’s visit to the Latin-American republics than were derived for the United States through Mr Hoover’s mission in 1928. There may appear something rather droll in a setting of the Prince of Wales and the President of the United States in a sort of rivalry as trade ambassadors to foreign countries, but the circumstances no doubt condone it. Tim main object of the Prince’s visit to South America is the opening of the British Trade. Exhibition at Buenos Aires, which has been planned on an important scale, and is, of course, a

commercial enterprise designed to increase the sale of British goods. While the prestige of the Prince’s presence will materially enhance the prospects of the success of this undertaking, his tour is not being confined to Argentina, but. comprehending also the other important States of South American continent, will primarily represent, as The Times has observed, “an act of friendship towards countries with which Great Britain lias been long established.” Through the Brazillian Ambassador in London the great satisfaction of

Iris Government at the impending visit of the Prince to Brazil was expressed some months ago, and Dm political changes that have since occurred will not affect ally more in Brazil than in Argentina the cordiality of the reception which His Royal Highness may expect. While in the present century and particularly since the Great War the growth of American enterprise and investment in the Lalin American countries lias given the United States a leading place in tbe economic life of South America, (lie British stakes in that continent are

| still enormous, and tlieir economic imI porta nee at the present time lias been j impressively emphasised, j In some respects it should he to the I advantage of' Circat Britain from the j economic point of view that her attitude has heen consistently one of indif- ' ferenco to political changes in t,he re- | publics. “ During the decades when I English capital was pouring into South J America,” observes a writer in a current review, “an ultra-rigid doctrine of national sovereignty and independence combined to prevent any suggestion of busy diplomatic activity from this country. To that tradition is due much of the exceptional goodwill we enjoy |o-day I and the welcome that is given to Brit- ! isli capital because it is known behind it does not lie any ultimate threat of veiled political control.” The gospe] of Pan-Americanism, as relied on by the United States, is not entirely popular in South America, and declarations of political favour from Washington, such as that for instance accorded to the now fallen President of Brazil, are liable to have reactions not altogether conducive to the harmony of trade relations. Great Britain has some £500,000,000 invested in Argentina, lmt her trade balance with that country lias been unsatisfactory. Lord. D’Abemon's commission in the first case, with its recommendations to British business men to give more thought and time to South American trade, and now the exhibition at Buenos Aires which the Prince of Wales is on his way to open, represents successive steps in an efFortto improve the. position. It has been pointed out that very poor use has hitherto been made of Great Britain’s strong position as the largest customer of South America for many of the products of the country