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SECURITY - SECURITY INF ORMAT ION - 16 - the effect of giving to Latin America a new sense of power and security which greatly complicates our ability to use our superior military and economic strength and reduces our bargaining power 8 29. To sum T/ The old Latin American fear of the United States resulting from the use of military force in Mexico and elsewhere is rapidly being replaced by a feeling that the two international organizations put them in a position secure from the arbitrary use of United States strength. A rule of law enforced by international organizations which supply a forum for every dispute has given the Latin Americans a new sense of security. Similarlys the constitution of both the inter-American and world systems, so as to subscribe equal value to the vote of each state regardless of population or strength (they control 20 of the 21 votes in the OAS and 1/3 of the votes in the UN), has given the region a new sense of power. In conse- quence there is a new tendency to exploit their new position, sometimes individually and sometimes as a bloc. 8 The fact that the United States has assumed leadership of, a world coalition has the necessary consequence of putting it in the position of a supplicant for the moral and material support of other countries. We are constantly finding our bilateral negotiations with a Latin American foreign office undernined by an urgent request from our United Nations delegation to solicit a vote in the General Assembly or in one of the Councils in order to preserve a united front. Latin American states exercise power over our investments and produce food and strategic materials which we must have. For our part, we have no grant aid programs for Latin America similar to those for other areas. Export-Import Bank loans are made with strict provisions concerning payment of interest, repayment of principal and strict supervision over the investment of the proceeds of the loan; and in any event the Bank is autonomous to a large degree and primarily concerned with economic rather than political con- siderations. Furthermore, it competes with the World Bank, an international organization not subject to United States control. Similarlys while we control a very modest sum of Point 4 funds, our bilateral programs compete with United Nations projects of a similar character which we do not control. As regards trade, we have neither the legal authority nor the machinery to control imports or exports; the number of exported commodities subject to allocation or license are very few and, in any case, there is a tendency to turn allocations over to international commodity groups which we do not control. Again, if we refuse to sell. arms they may be purchased elsewhere with the result that we succeed only in undermining our diplomatic and military missions in the countries discriminated against. And finally attempts by us to press even a bargaining advantage, especially if overtly done, risks charges of intervention throughout the area. DECLASSIFIED e. O. 11652, Sec. 3(E) and 5(D) or RE letter, 5.33 D.pt. of State R'y NLT NC MARS 00-5-22-77

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    "ocrText": "SECURITY - SECURITY INF ORMAT ION\n- 16 -\nthe effect of giving to Latin America a new sense of power and security which\ngreatly complicates our ability to use our superior military and economic\nstrength and reduces our bargaining power 8\n29. To sum\nT/ The old Latin American fear of the United States resulting from the use\nof military force in Mexico and elsewhere is rapidly being replaced by a\nfeeling that the two international organizations put them in a position\nsecure from the arbitrary use of United States strength. A rule of law\nenforced by international organizations which supply a forum for every\ndispute has given the Latin Americans a new sense of security. Similarlys\nthe constitution of both the inter-American and world systems, so as to\nsubscribe equal value to the vote of each state regardless of population\nor strength (they control 20 of the 21 votes in the OAS and 1/3 of the\nvotes in the UN), has given the region a new sense of power. In conse-\nquence there is a new tendency to exploit their new position, sometimes\nindividually and sometimes as a bloc.\n8\nThe fact that the United States has assumed leadership of, a world\ncoalition has the necessary consequence of putting it in the position of\na supplicant for the moral and material support of other countries. We\nare constantly finding our bilateral negotiations with a Latin American\nforeign office undernined by an urgent request from our United Nations\ndelegation to solicit a vote in the General Assembly or in one of the\nCouncils in order to preserve a united front. Latin American states\nexercise power over our investments and produce food and strategic\nmaterials which we must have. For our part, we have no grant aid programs\nfor Latin America similar to those for other areas. Export-Import Bank\nloans are made with strict provisions concerning payment of interest,\nrepayment of principal and strict supervision over the investment of the\nproceeds of the loan; and in any event the Bank is autonomous to a large\ndegree and primarily concerned with economic rather than political con-\nsiderations. Furthermore, it competes with the World Bank, an international\norganization not subject to United States control. Similarlys while we\ncontrol a very modest sum of Point 4 funds, our bilateral programs compete\nwith United Nations projects of a similar character which we do not control.\nAs regards trade, we have neither the legal authority nor the machinery\nto control imports or exports; the number of exported commodities subject\nto allocation or license are very few and, in any case, there is a tendency\nto turn allocations over to international commodity groups which we do not\ncontrol. Again, if we refuse to sell. arms they may be purchased elsewhere\nwith the result that we succeed only in undermining our diplomatic and\nmilitary missions in the countries discriminated against. And finally\nattempts by us to press even a bargaining advantage, especially if overtly\ndone, risks charges of intervention throughout the area.\nDECLASSIFIED\ne. O. 11652, Sec. 3(E) and 5(D) or RE\nletter, 5.33\nD.pt. of State\nR'y NLT NC MARS 00-5-22-77"
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