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SECURITY an 8 - income in Bolivia, for example, is 1/40th of the United States average. 21. As a consequence of this great disparity in wealth and living standards a body of economic doctrine, called "nationalism" and "colonialism"g has gained wide popular acceptance in the area. This doctrine says that the disparity is due entirely to the exploitation of "colonial" states by the powerful "industrial" state. This exploitation is said to be achieved by our paying them unfairly low prices for their raw materials while charging them unfairly high prices for manufactured goods; by United States foreign invest ments which drain away their natural resources while remitting the profits to the United States; and through high shipping, telecomunication, insurance and aviation rates.1/ The doctrine asserts that the Latin American states must therefore gain their #economic independence" in this century just as their forebears gained political independence in the 19th century. Phrases such as economic domination" and "yankee imperialism" are commonly used. 22. While this doctrine is largely an emotional rationalization of their own political, economic and social failures, it is prudent to recognize that it has its roots in both a real need and a popular demand for better living and health standards, that is to say, for diversification of their economies (most Latin American states have a one industry economy), for industrialization (most of them have agricultural or mining economies), for increased productivity (which is very 10W), and for solution of the perennial problem of dollar shortages 1 There is a striking parallelism between this economic doctrine and that which was widely accept ed in the agricultural south before and after the Civil War. The extent to which this doctrine has been accepted by Latin Americans and the intensity of their feelings concerning it should not be underestimated Similarly, there is a parallelism between this doctrine and similar ones in other "colonial" areas of the world. DECLASSIFIED e. O. 11652, Sec. 3(E) and ()) or Depr. of State letter, 5.3.77 INFORMATION By NLT NC MARS 5-22-77

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    "ocrText": "SECURITY\nan 8 -\nincome in Bolivia, for example, is 1/40th of the United States average.\n21. As a consequence of this great disparity in wealth and living\nstandards a body of economic doctrine, called \"nationalism\" and \"colonialism\"g\nhas gained wide popular acceptance in the area. This doctrine says that the\ndisparity is due entirely to the exploitation of \"colonial\" states by the\npowerful \"industrial\" state. This exploitation is said to be achieved by our\npaying them unfairly low prices for their raw materials while charging them\nunfairly high prices for manufactured goods; by United States foreign invest\nments which drain away their natural resources while remitting the profits to\nthe United States; and through high shipping, telecomunication, insurance\nand aviation rates.1/ The doctrine asserts that the Latin American states must\ntherefore gain their #economic independence\" in this century just as their\nforebears gained political independence in the 19th century. Phrases such as\neconomic domination\" and \"yankee imperialism\" are commonly used.\n22. While this doctrine is largely an emotional rationalization of their\nown political, economic and social failures, it is prudent to recognize that\nit has its roots in both a real need and a popular demand for better living and\nhealth standards, that is to say, for diversification of their economies (most\nLatin American states have a one industry economy), for industrialization\n(most of them have agricultural or mining economies), for increased productivity\n(which is very 10W), and for solution of the perennial problem of dollar\nshortages\n1\nThere is a striking parallelism between this economic doctrine and that\nwhich was widely accept ed in the agricultural south before and after the\nCivil War. The extent to which this doctrine has been accepted by Latin\nAmericans and the intensity of their feelings concerning it should not\nbe underestimated Similarly, there is a parallelism between this doctrine\nand similar ones in other \"colonial\" areas of the world.\nDECLASSIFIED\ne. O. 11652, Sec. 3(E) and ()) or\nDepr. of State letter, 5.3.77\nINFORMATION\nBy NLT NC MARS 5-22-77"
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