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stream of dollars poured in from abroad. a flourishing reality through the exporta nel them wisely through sensible programs This line of thought is as uninformed and tion of fishmeal and other items; and when and plans, we shall be impairing our borrowchildish as the other extreme, which many I also see that iron exports are compensat- ing capacity and squandering the external Latin Americans also uphold: that is, that ing the decline in nitrate exports, I am investment. foreign aid or foreign investment should be deeply gratified to see that in this country It is gratifying to note Chile's judiciousrejected because in themselves they are also, when incentives for work are created,

ness in preparing the 10-year plan now in harmful. Both extremes, the ingeniousness new forces emerge as if they were springing force. It is equally gratifying to observe how of those who expect everything from abroad from the desert or from the rocks. Because

in Latin America, especially since the Charand the prejudice against foreign capital, the Chilean has extraordinary creative ca ter of Punta del Este, most of the countries are equally wrong and injurious. The real pacity and perception; so much so that many

are following the same course. istic and constructive course is to admit times the lightly stimulating touch of a

Suffice it to say that in a little more than that investments obtained from foreign legislative measure is enough to release that

2 years, 10 countries have set up their nasources are necessary to accelerate the proc dynamic impulse that has only been await

tional planning agencies and 6 of them have ess of capital formation, but in the full ing propitious conditions to manifest itself.

embarked on the execution of new national knowledge that everything cannot depend I have experienced equal satisfactionon such external assistance but basically even greater, in fact, because the Inter

development programs, while a number of

other countries are engaged in establishing must depend on domestic effort appropri- American Bank is connected with the proc

their planning agencies and preparing their ately encouraged by wise fiscal and mone ess—in observing the unusual development

plans. tary policies.

of the paper and pulp industry, which in
its time also had to overcome the skepticism

Nevertheless, I cannot conceal a certain INTEGRATION, CAPITALIZATION, AND PLANNING of the Jeremiahs who rushed forward to pre

concern stemming from a knowledge of our Having thus described the factors affecting dict that we would never be able to com

Latin tendency to give theoretical and forcapital formation, let us project these conpete with the Canadian or Finnish produc

mal replies to problems, forgetting that the cepts from the national level, where they ers. Nonetheless, it fills one with pride to

statement of the problem and its solution is are now developing, to the regional level, day to go to the presses of the great news

not enough; the essential thing is that the through the process of integration. I will

plans be fulfilled, carried out, implemented. papers of Buenos Aires, Mexico, or Lima and tell you right now that I am among those find there on the great rolls of newsprint

I remember my former professor of constituwho are convinced that integration is the words, “Made in Chile."

tional law, Gabriel Amunátegui, when he bound to expand the opportunities for prof

Chile has learned the lesson to which we

used to say that the institutional strength itable investment, both internal and exwere referring a few moments ago, and that

of Chile in the 19th century was largely the ternal. is why it is now one of the Latin American

product of the good sense of the Chilean To demonstrate this, it will suffice to outcountries that best understands the advan

people, who did not believe that simply beline the mechanics of economic growth that tages of and the need for a common market.

cause a constitution had been adopted and would operate. There cannot be the least

And now, my friends, let us go on with

put into force, all the problems of the coundoubt that, as we expand markets, our inthe analysis of the problems of financing in

try's institutional and political organization dustries will have broader opportunities for tegration. We have already spoken of the

were going to be miraculously solved. As all growth. They will be able to sell more and role of external contributions in the proc

of you very well know, the determining facto improve their earnings, as well as those of ess of capitalization. We now may say that

tors in Chilean institutional stability were their shareholders and their workers; conseexternal financing can also have a decisive

the creative ability and perseverance of Porquently, tax revenues will increase without function in the process of integration, as the

tales, the good sense of the subsequent govits being necessary to encumber the capac- European experience has eloquently demon

ernments, the influence of our intellectuals, ity for savings, investment, and capitalizastrated.

the increasing maturity of the people. Thus tion. On the contrary, the capacity for both public and private investment will expand. American Bank I have devoted a good part

In the course of my activities in the Inter

the foundations of our democracy were laid.

Had those factors not existed, it would have It is no mere coincidence that the smaller of my time—and I believe that it has been

been impossible, even with the best constia country, economically speaking, and the time usefully spent-in traveling through

tution in the world, to have built up the smaller its volume of trade, the smaller will the United States attempting to present a

institutional life of which we are today so be its capacity for investment or capital for

justifiably proud. true and realistic image of Latin America, an mation. Thus, the small countries that

There were countries that in the last cenhave wanted to advance economically have image that will dissipate many misunderhad to export, because with limited prostandings. I have found in both the busi

tury adopted splendid constitutions, which nessman and the man on the street in the

in a short while they replaced with others duction intended solely for domestic conUnited States a very deep interest in reach

theoretically even more elegant, as if the sumption they would not have been in a

terms of understanding with Latin

mere change from one to the other would position to produce capital goods; they America. What happens is that they do not

be sufficient to organize the civic life of the would not have had sufficient capacity to finance the cost of the investment required know how to build up that understanding.

nation or to give consistency to its institu

tions. Similarly there are countries that tofor their development. Switzerland, Swe

It is very interesting to observe how in cities or in communities where the concept

day prepare elaborate programs which they den, and New Zealand may be cited as typical cases. of Latin America is very general and even

publish in attractive booklets, filled with Fortunately this lesson now appears to confused, there is, nevertheless, a genuine

graphs and charts—often the product of the have spread to Latin America. Among repinterest among businessmen in the possi

zealous and exhaustive work of competent

and well-meaning technicians—and they beresentative sectors in our countries there bility of expanding our markets.

lieve that in this way they have provided the is currently an awareness of the close rela This should not be surprising becausetionship between this complex process of despite what many narrowminded people They forget that a plan, however perfect

answers to the problem of their development. capital formation and the expansion of pro maintained following the end of the last duction which can be attained through rewar—the industrialist and the investor of the

it may be, cannot produce the results ex

pected of it or achieve the goals proposed in ciprocal exports within a common market. United States also benefited from European

it, if the creative ability of the people, the In this respect, allow me to make a brief recovery, because the industrial growth of aside. One thing that has impresed me Europe has been promoted jointly by for

mystique of work, the sense of common cause

within the community, are not applied to most keenly in this visit to Chile is the eign investments, basically from the United

the attainment of those goals and those renew mentality that can be observed among States, and by its own investments.

sults. our industrialists and businessmen, intent I believe that in our hemisphere we can on projecting Chile outward. I recall that repeat such an experience. Of course I think TOWARD A COMMON FINANCIAL MARKET only 10 years ago one could not have said that in Latin America private investment Up to this point, we have been analyzing the same. At that time, as Minister of Fi must be supplemented by international pub- what we might call the constants of Latin nance in the previous Government, it de- lic investment because there are fields and American financing, or in other words, genvolved upon me to sign two decrees, both circumstances that require a special kind of eral financial aspects which, while they cerwith the force of law, for the development of financing, over a long period of time and un tainly have different overtones in the varfisheries and the iron industry, waiving taxes der very flexible conditions, that cannot be ious countries, still have basic common defor both, allowing them to secure foreign asked of private financing.

nominators. Now I shall refer—and I shall exchange at the most favorable rates, and It is also essential that our countries have do it briefly, because I know that the techgiving them other incentives which at that development programs very clearly setting nical problems of financing are less attractime it was possible to grant. Certainly forth the objectives sought and the sectors tive than the general theses on integrationthere was no absence of warning voices, pre that predominantly require external invest to the basic machinery that is needed for the dicting the failure of the measures advo ment. Investment just for the sake of in financing of integrated regional development. cated by "that young Minister, full of the vestment, or borrowing just for the sake of To summarize, I might mention the four ories, who wants to apply techniques that borrowing, not only will not insure develop- following points: will yield no results and whose decrees will ment; it can often pile up fatal results. Not

First, expansion of the Inter-American not even be put into force."

exactly for foreign investors, but for our Bank's function as an integration bank. Today, when I read the statistics, when selves. Available foreign resources are al Second, the establishment of a system for I fly over the national territory, and when ways limited; therefore, if we do not use coordinating our monetary policies, which I learn that the fishery industry has become them well, if we do not encourage and chan as I have ambitiously ventured to propose

and not because I am an old central banker of a route of that type as a means of facili- better terms, not of product quality or price, at heart-might be projected in the future tating trade within the free trade zone as it but in regard to periods of repayment and toward the establishment of a hemispheric is now established, or within the common interest on the loans. central banking system,

market which we should like to see estab Of course, the Bank would have preferred Third, the adoption and maintenance of lished soon.

to create a new fund specifically designed for common policies and practices that will make In addition to this kind of direct financ this new financing activity which it is now it possible to draw upon the great interna- ing for projects connected with integration, going to undertake. But appreciating the tional currents of private investment. our Bank also helps indirectly through its difficulties and limitations that would have

Fourth and last, the projection of na- operating policies or the effects of its loans. been encountered in trying to get the necestional development plans to the regional I shall try to explain this by giving some sary resources, I believe that in any event the level. examples.

step taken offers great possibilities. HowLet us examine, at least from the more When an application comes into the Bank ever, it must be emphasized that in using general standpoint, the operation and the from one of the member countries to estab this mechanism for the promotion of exports role of the mechanism just enumerated. lish, let us say, an iron and steel plant, the

of capital goods, the Bank will never lose THE INTER-AMERICAN DEVELOPMENT BANK AS

first thing our staff does is to make a study sight of the fact that it is an investment

to ascertain not only whether the industry bank, a development bank, and not a forAN INTEGRATION BANK

to be established signifies development eign-trade bank. Therefore, our action in As far as the Inter-American Bank is con

within the country, but also whether, be this field will be in the nature of a supplecerned, we must remember that when it was

cause similar plants exist in a neighboring ment to the effort made in the first instance established a little more than 3 years ago, country that would be capable also of sup

with national resources, and we shall never the idea of integration was not yet regarded plying the applicant country, it might be forget that this is not a question of financas the urgent and undelayable undertaking more desirable for the latter to use the re

ing transactions just because the transacthat it is judged to be today by the more sources that the Bank might provide for tions are there to be financed, but rather of discerning groups in Latin America. Thus,

some other industry of perhaps greater pri- assisting in the exportation of capital goods the Bank, while it was not, strictly speaking, ority. Naturally, no such judgment can be in those cases where the Latin American created as an institution to meet the finan- imposed upon the countries, but our experi- country that is to receive the exports has a cial problems of integration, problems which

ence in this respect has been highly favor- genuine need for the goods concerned. The at that time were barely glimmering on the able. Generally, we have found great under

same applies to cases where the exporting horizon, has had to begin adapting its pol- standing the fact that economic country may be enabled to strengthen its icy to these new demands.

development is not really favored when economic structure and develop sound indusFortunately, the agreement establishing similar industries are established in coun tries if it has the incentive of this system of the Inter-American Development Bank al- tries whose markets are small or where less export financing. lows this adaptability, because article I favorable conditions prevail for the develop

If we were to proceed otherwise, we should clearly assigns to the Bank the task of ac

ment of certain industries than those in fall into the paradoxical situation of sponcelerating the development of the member

other neighboring countries. Such invest- soring exactly what we have so often criticountries, individually and collectively. On

ments would very soon have to be protected cized in certain suppliers' credits, who often the basis of this provision, which puts upon artificially, with protective tariffs or other require our countries to accept imports that the Bank the responsibility of contributing similar measures. On the other hand, those are not the most desirable, but which they to the economic and social development of

same countries may very well offer ideal con must accept or else do without the credit. the countries, not just individually, but col ditions for the establishment of other types Finally, with reference to the impact of lectively, we are transforming the institu

of industry, toward which the investments the Inter-American Bank's action on the tion into an integration bank, without for should be encouraged.

process of integration, we shall mention only a moment ceasing to be the development

With respect to the effects of our loans the technical assistance and promotion work bank which the founders wished to estab which indirectly play a catalytic role in inte we are doing in this field. In close harmony lish, for, as I have said before, we believe

gration, I can mention a very representative with the Latin American Free Trade Associthat full development cannot come about in

case. Some months ago, during a tripation and other agencies operating within Latin America without the economic inte- through Central America, I visited å housing the inter-American system, we are attempt. gration of the region.

project that was being built with funds pro- ing to coordinate efforts to make the best At the risk of seeming immodest, I can vided by our Bank. It was a project of great possible use of the technical resources of truly say that the Inter-American Bank has importance to the city of San Salvador, be

each agency in order to attain the common already accomplished a great deal in this cause it involved the construction of more objective. endeavor of encouraging the integration than a thousand homes, which, not to men COORDINATION OF MONETARY POLICIES process. I might mention, for example, the tion the social benefits to the future indirect stimulus we have provided in Central habitants of those homes, was making a

Let us now consider the second mechanism America through our assistance to the Cen- great economic impact on all sectors con

we believe to be necessary in order to adtral American Bank for Economic Integra

vance toward a common financial market. cerned in the construction industry. It was

This concerns the coordination of the monetion, which was set up to promote the de- being carried out by a group of very com tary policies in the region. velopment of regional or economically com petent engineers, one of whom made a comment to me, the great significance of which I that demonstrate the need for such coordi

At this very time events are taking place plementary industries and projects. We likewise helped in the direct financing of need not emphasize to you. "Just consider,"

nation. Someone said to me last week in certain multinational projects in other

in other he said, "if this project had been undertaken Uruguay, in connection with the criticism regions of Latin America. I have just come 5 or 6 years ago, we should certainly have that had been voiced about that country for from the Republic of Uruguay where, with had to import all of the basic materials from having adopted restrictions on imports, inthe assistance of one of our loans, work has the United States. But today we are getting cluding those from countries of the Latin been started on Route 26, which crosses from other Central American countries what- American Free Trade Association (the reUruguay from one extreme to the other, ever is not produced in El Salvador. For from the border with Brazil to the border

strictions being the consequence of the uninstance, we produce the cement ourselves favorable financial situation from which the with Argentina, and which connects at the but the sanitary equipment is made in Costa country has been suffering): "We are being two borders with national highways of the Rica and all the lumber comes from Hon

censured because of this reduction in imtwo neighboring countries, thus constitut duras." This example graphically illustrates ing an international route that will facilitate how our resources, lent to a specific country, ports, but there are other countries in the

Latin American Free Trade Association trade and communication among the three are indirectly benefiting industries in other which, although they have not adopted countries, and which will make possible, Latin Amerian countries, thus opening the

quantitative restrictions, have on the other first, economic complementation, and subse way for integration.

hand altered the value of their currency. In quently, economic integration.

Beginning this year we shall be contribut

that way, by indirect means, they are really And right here in Chile, only 4 days ago, I ing from another angle to these efforts. At

obstructing our exports." was present at a meeting in Valparaíso, where the meeting of our board of governors held Here in Chile this remark was made to a proposal of the same sort was brought up. last April in Caracas, we were instructed to

me: "If there is to be a genuine regional It concerns the construction of a modern begin a system of financing, somewhat on

market, the reduction of customs tariffs is highway to join the port of Valparaíso with the experimental side, of intraregional ex

not enough; we need a common currency." the Argentine city of Mendoza. A mere ports of capital goods. We shall set up a

This conclusion, expressed by businessmen glance at the map brings out the economic fund, drawing at first on part of our own who have reached it on the basis of their importance that such a route has for Val ordinary resources, to assist the Latin

experience in foreign trade, is indisputable. paraíso, and the benefits that such a highway American countries that produce capital

To be able to trade, we must have a constant could bring to the Cuyo region and the trans- goods in the marketing of those goods in

unit of currency because if, in the course of Andean region. Naturally, these appraisals other countries of the area. They are un

transactions, we are going to alter the value of the proposal will have to be confirmed by able to do this at present because they lack of that unit, sometimes for competitive reathe technical experts, and in addition to the the financial assistance that producers of sons and, to put it frankly, without warning, advantages that the respective provinces of the same goods in other regions enjoy, which in order to gain an advantage over another the two countries might obtain, considera makes it possible for the latter to offer their country, we will find it impossible to create tion will have to be given to the importance products to Latin American importers on

products to Latin American importers on a climate of mutual respect and confidence,

so necessary for the full development of to the detriment of the image of some other with those of others. But that can be trade within our region.

country or countries of our own region. achieved only step by step, with practical I believe, however, that there is no need The same thing is happening with respect measures. We are already working in that for a common currency in the literal sense, to foreign private investment. So far we direction at the Inter-American Bank. in which all the coins would be the same have witnessed in Latin America, a process of A few months ago we inaugurated a proand all the paper bills identical. What we competition, in which each country attempts gram of technical assistance for industries need is what has been done in Europe: a to offer better conditions to international that wished to plan their requirements and monetary agreement under which the Com capital, each struggling to solve its invest their perspectives at the hemispheric level. mon Market countries reciprocally respect ment needs on its own account.

And to our great satisfaction, within a few the comparative terms of value that they If, on the contrary, we were to decide to weeks we received a request from the Latin have given to their currency. Thus, for ex create a single set of rules for the foreign American Iron and Steel Institute to provide ample, when a few years ago the Federal investor in this region; modern rules in it with funds that would enable it to make Republic of Germany wanted to revalue its which the incentives for encouraging the studies concerning the establishment of a currency, as an expression of its prosperity, flow of capital would be reconciled with a sort of Latin American Iron and Steel Comit did so in consultation with the other asso- system of mutual guarantees, by which the munity. ciated countries. And we might even say investor who placed his capital in any of our I do not want to magnify the importance that not only did Germany do this in con countries would have a hemispheric guaran of this latter aspect, but I ask you to note sultation, but that pressure was put on her tee for his investment; if we were to achieve that European integration was built up on a by the Common Market members, in order such coordination, we should certainly have similar basis. Let us remember that the not to accentuate the maladjustments that made an unprecedented advance in our ef Treaty of Rome, concluded in 1956, stemmed were already apparent between the situation forts to attract the external resources we so basically from the plan of Monet and Schuof Germany and that of the rest.

greatly need. And above all, by this multi mann which some 6 or 7 years earlier had We need a scheme of this type in Latin lateral approach, we should eliminate the created-for reasons of European political America. What form of institution should friction that is inevitable in all financial balance and in large part through fear of a be adopted? It could be any one that would relations of the bilateral type, wherein one new rise of German militarism—that great ensure the coordination of the various mone country needs the resources and the other economic community unifying the coal and tary policies, but in my judgment we should provides them.

steel industry, which is plainly the basic inmove toward the most ambitious plan; that


dustry of Europe. is to say, the creation of a regional central

Naturally, we know Latin America does not bank, similar to that which Monet has pro

I shall conclude this part of my paper by have an iron and steel industry of comparable posed for Europe and which I believe is referring to the necessity of coordinating our

importance, but it is obvious that we must bound to come into being in the future, once various national development plans at the

inevitably move toward its development, bethe difficulties that at present stand in its regional level. Today this no longer seems

cause as you well know, economic progress way have been overcome. like heresy—which shows once again that

essentially involves sources of power and the Under such a plan not only would the despite all obstacles, we are advancing. Up

use of steel. That is why all countries-incoordination of monetary policies be sought, to a few years ago, to speak of planning, even

cluding ours, of course—tend to have their but at the same time international reserves at the national level, was to lay oneself open

own iron and steel industry, unfortunately in would be built up. We must not forget that to all manner of criticism. Today we hear

many cases in an artificial form. As I have despite all its foreign trade difficulties, Latin and read frequent appeals for planning, or

noted directly in my travels, there are iron America at this moment has available $2.5 for the coordination of plans on a hemi

and steel plants in Latin America that are billion in reserves, and furthermore, these spheric scale.

not functioning, either because production reserves are showing a tendency to increase.

However, I believe that in this process we

costs have turned out to be too high, or beNevertheless, as a rule every country in Latin must be very realistic and not pretend that

cause the industry was not properly planned. America really has to run the gauntlet and theory will take us farther than the actual

Therefore, it is highly necessary to encourage submit to all kinds of conditions imposed situation advises us to move. In this re

or sponsor the idea of coordinating the varfrom outside when, in order to handle mo

spect I should like to recall what has hap ious national development plans at a regional mentary imbalances, it has to resort to pened in Chile. Here in this auditorium

level and, if possible, to attain a sound exstabilization loans of $10 or $15 million. there are two distinguished professors, col

pansion of the iron and steel production of If Latin America were to make a single leagues of mine in the economics depart

the region as a whole, making optimum use fund of its reserves, which would mean a

ment, with whom I had the opportunity of of the heavy investments that such developvolume as important as the reserve of the teaching for many years. They will remem

ment requires. sterling area, our region would have an ex

ber that one of our reasons for criticizing This is not the only example. In the traordinary negotiating power. We should

Chile's Corporación de Fomento, was that we matter of sea and air transport we have what perfectly well be able, too, to manage intrafelt it had failed to comply with the mandate

is perhaps an even clearer proof of the necesregional imbalances among ourselves. And

of formulating a "general plan" for the de sity of combining our efforts. All of us can if at some time we should have difficulties

velopment of production. Like the inexperi note as we travel around our hemisphere how and require additional resources for our

enced persons we then were, we reproached every country wants to extend its own aircommon reserve fund, we would be able to

the CORFO for not having complied with lines or its own merchant marine beyond its negotiate lines of credit, or expand them, what we thought should have been its first

own borders. This is the reflection of a nabringing the weight of the great mass of our

obligation. As I look back now I can say tionalism, easy enough to explain, that has operations to bear.

that fortunately this agency did not try from been part of our recent historic development. Therefore, I say firmly that it is not only

the very start to prepare a national plan for Unfortunately, the individual effort of each because of outside attitudes unfavorable to

the development of production, which in the country is insufficient to build up those air our region that we have not found an ade

best of cases might have been very well pre or maritime enterprises enough to make them quate answer to our problems in this respect.

sented but which might have been only a count to any appreciable extent in the broad I venture to say, rather, that the respon

masquerade of a plan. In 1939 or 1940, Chile international field of transportation. sibility of finding that answer is essentially

was in no way equipped technically nor did Other nations, showing more practical ours. Let us unite, let us integrate, and

it have the other prerequisites for develop sense, have followed a different course and then in these and all other problems that ment that were necessary to enable it to

have prospered in this field; the Scandiafflict us today we shall be in a much better work out the plan which is now in force, 20

navian countries, for example. Up to a few position to stand up for our interests, just years later.

years ago, Norway, Sweden, and Denmark as other regions of the world do.

I believe that the wise and sensible course

each had its own airlines, until the time was the one that was followed, with that

came when they suddenly noticed what was COORDINATED ATTRACTION OF PRIVATE pragmatic judgment with which so many

obvious: that by integrating into one large INVESTMENT decisive problems in this country have been

regional company they would have much We have already pointed out the impor- faced, almost always with competence. De

greater prospects of competing with the tance to be attached to private investment velopment by sectors was started, with prior- powerful international companies. Today in the process of integration. It is impera ities for the basic ones.

SAS, the company established in common tive that Latin America standardize its A beginning was made with electric power by the Scandinavian countries, occupies a policies for attracting such investments when and steel, and then, as experience was ac distinguished place in the field of world air they are required from abroad. To demon- quired, a realistic picture of the development transport, with much greater profits for strate the desirability of such coordination, plan, of possible goals that could be at Sweden, Norway, and Denmark than they it will be sufficient to describe what our tained, of the actual amount of investment would ever have been able to obtain had present situation is.

required, began to take shape. In short, they continued, each with its own resources, What is happening today? Through the CORFO kept its feet on the ground, recon to support their isolated national airlines. process of fragmentation that we have suf ciling aspirations with actual possibilities. It seems to me that this is a field that the fered historically during the last 150 years, So, in my judgment, we must use the same countries of Latin America ought also to we have accustomed ourselves to compete pragmatic approach in Latin America. It explore. However, we must not be satisfied among ourselves. And we have projected would be ideal to be able to prepare and im with only a study, as has happened before; that competition outward, often trying to plement a regional development plan, or even decisions must be taken that will make it present a better image of our own country, to coordinate the plans of some countries possible for a great Latin American airline

to occupy the central counters of the air to bring into the open the predominant tinent met in Addis Ababa, capital of Ethioports, instead of the secondary places where trends of each country, thus preventing the pia. The majority of those states have just the offices of the various airlines of our breeding of antagonisms because of the lack come into being, and therefore they might countries are at present scattered.

of discussion or knowledge of the various have clung to a strictly introverted kind of Latin America sends hundreds of millions ideas and possible discrepancies.

nationalism. But instead, the new African of dollars out of the hemisphere to pay for That parliament is perhaps one of the states have embarked vigorously on a plan the services of foreign merchant ships. I major factors in the achievement of the for integration. They are setting up regional am convinced that the day the countries of present political solidarity among the coun organizations of a political type, much more Latin America decide firmly to negotiate tries of the European Community.

advanced than ours. The thing is that among themselves the possibility of common I know that many people will say that this despite the underdevelopment with which action in this field, as occurred, in part, type of political integration is possible in almost all of them are afflicted, they have with the negotiations that led to the Gran Europe because of its greater cultural, eco leaders who are availing themselves of the Colombiana fleet-we shall be helping to nomic, and technical development and its experience of others in order to move forward strengthen our region in a sector of the experience more recently acquired in two rapidly and avoid errors. greatest importance to us.

frightful wars. But we can reply that if We have evidence of this process at the Other examples could be mentioned, but European integration has been accomplished Inter-American Bank. A year ago a misI believe that those offered are enough to in spite of the 30 million victims sacrificed sion of several African bankers came to our give a clear idea of the situation. In order on the battlefields and in spite of the an headquarters in Washington and asked us to arrive at the regional planning stage in

cestral hatreds that long divided the now to permit them to observe how our instituLatin America, we can begin by coordinating integrated nations, we have no reason to tion operated, because the African countries sectors in certain industries and activities magnify our own differences. On the con wished to establish a regional bank similar where such coordination is immediately trary, among our countries there are historic to ours. Naturally we were pleased to open feasible. Thus we shall begin to advance,

bonds of solidarity more powerful than any our doors to them and to offer them the and at the same time we shall be laying a motives for disagreement. But let us not benefits of our experience, as part of our solid foundation for the Latin American

consider Europe alone; let us pause a mo mission of projecting the Latin American integration of the future.

ment and see what is happening in other image into other latitudes. Later we sent

regions which certainly have not reached TOWARD POLITICAL INTEGRATION

officials to Africa who renewed this stimulatthe degree of development found there. We ing contact. Today the bases for the Pan Judging by the close attention with which might mention India, for example. When African Bank have been established, and you have been following these ideas, I get the subcontinent became independent, it so likewise the bases of the African common the impression that you are in agreement luckily had the political talent of a Gandhi market, the political organs of consultation, with them and that they seem logical and

and a Nehru, who accomplished the miracle and finally, a series of economic and techsensible to you. But I am sure that these

of holding together a community of 400 mil nical mechanisms that will all work toward questions have come into your minds:

lion people, conciliating the local interests integration. In other words, in these few How are we going to accomplish this? of the various groups that comprise it, whose years Africa has not only profited by the What steps must we take? How can we diversity can be succinctly indicated by the experiences of our own bloc but is taking set in motion all those things that the new mere fact that they speak 80 or 90 different much more far-reaching steps. And all of study groups and the new technical reports languages and dialects.

this has come about, I repeat, despite their recommend?

What would India's fate have been if the differences of structure, tradition, mentality, All of us, the technicians as well, are small provincial interests had prevailed? It culture, language, beliefs, and race; differasking ourselves the same questions. In can easily be imagined. To emerge from its ences which, by contrast, make our countries reply I venture the idea that, along with underdevelopment India must overcome seem more than ever a single nation. our work in the direction of economic inte many staggering problems, all of them in

THE PLURALISM OF THE WORLD TODAY gration, we must begin to think of the finitely more complex and more difficult to necessity of advancing toward political inte- solve than those that preoccupy us in Latin

These processes of integration or reunigration. America. Beyond a doubt there are more

fication of great regional blocs should not be This may seem risky or ambitious. But ethnic, religious, social, economic, language, surprising to anyone who follows the course if we look at things realistically, it is evi- and other such differences among the states

of world events. It is evident that the world dent that we are not going to be able to of India than among the countries of Latin

is moving toward what we might call plurcoordinate monetary policies, or adopt com America. The task of development for India

alism of the international type. mon standards to attract investment, or is of course extremely difficult. But ob

It cannot be said today that the world establish regional merchant fleets, if we do viously it would have been far worse if, in

gravitates only between two points, Washingnot bring ourselves into accord politically. stead of being integrated, the country had

ton and Moscow. In the socialist world, That is why, with all due respect for the been broken up into dozens of independent Peiping now makes its own weight felt; and technicians, I believe the time has come for states.

Belgrade offers another alternative, with obaction at the political level; that is, by those Let us look also at Indonesia, that new

vious influence in its sphere.

In the field of the Western democracies, who have the supreme responsibility of state, spread out over 3,000 islands, with legally representing our people and their many tongues and races, lacking the pre

Old Europe is steadily recovering its historihopes for real progress. liminary requirements for development, and

cal stature. In the Middle East, Cairo is beI have also taken the liberty of voicing with only a few technicians when it came

ginning to show an entirely new look. We the idea of Latin American assembly or to independent life. However, Indonesia did

have already witnessed how Africa in Addis parliament, in which the agreements signed have the necessary political leadership, and Ababa today, in some other capital tomorby our countries at regional conferences it was able to establish a community of 100

row—is also standing up on its own two feet. could be ratified multilaterally. Because, million people which today, despite the im

I ask myself, my friends, where is Latin my friends, Latin America is plagued with mediate serious financial and economic prob

America? What picture do we present of

ourselves as a hemisphere with a voice, with unratified agreements, agreements negotiated lems, is undeniably taking its place in the by the technical experts, who take them world scene.

a destiny, with a call to progress? back to their countries to obtain legislative Then there is the Arab world which

Therefore, I emphasize the urgency of ratification that does not always come.

Latin American political integration. And I whether or not we like the method by which

believe, Mr. President and my esteemed Of course, the Latin American parliament it chooses to work for reunification—is a

friends, that Chile has a very important part that I am imagining must reflect a genuine reality that is making itself felt more and

to play in this task. Let us remember that expression of public opinion; that is to say, more on the world map. For despite the

despite the poverty in which it began its it must be representative not only of the

difficulties that we read about in the newspolitical sectors that govern the countries papers every day, the Arab nation-or rather, its message in the direction of other Latin

independent life, Chile made bold to project but also of the diverse dynamic forces that the group of nations that form it-is ad

American countries. True, the projection exist within each national community. vancing toward integration, and plainly the

was not so clearly drawn as the 19th century Such a deliberative body might even serve Middle East is coming to the fore as a new as a model whose mere presence and exfocal center of growing importance in the

advanced. But in the 20th century, hap

pily—and it is sufficient to look at this ample could influence those countries of scheme of forces now existing in the world. our hemisphere where true democracy does And now, Africa. Right before our eyes,

country's foreign policy in recent years, under

various administrations—Chile has again not yet prevail. It would be a clear prac- day by day, we can see the emergence and tical demonstration of what a truly repre

found its great Americanist projection, that consolidation of pan-Africanism. We all

feeling for integration that was quiescent in sentative system should be, for within it the know that there is no single Africa but rather

the thinking of Bello, Montt, and other great various doctrinal trends-call them right, hundreds of peoples, who do not even have center, left, or however you want to dis the apparent racial unity that people com

statesmen, who always held in their minds tinguish them--would alternate. Such is monly think they have, but on the contrary

and hearts the idea of and attachment to

association with the other American counthe case in the European parliament of represent the coexistence of widely diversified tries. Strasbourg, which so greatly has influenced forms of political, economic, and social or · Chile must continue to advance along this the political course by which the Old Con ganization.

path, as it has been doing at inter-American tinent is opening its way toward the future A few days ago representatives of all the meetings in recent years, where it has conand which, furthermore, makes it possible autonomous countries of the African Con- sistently introduced or supported proposals

of Americanist scope. I believe that not only stimulate reduction of the unemploy

it must remain competitive. We came away are those thoughts present in the minds of ment rate.

convinced by their sincerity that everything our political leaders, in the concern of our

Goy. W. W. Barron, of West Virginia,

possible must be done to further reduce the technicians and our businessmen, but that

delivered cost of coal in Japan. Opportunity they also form part of the very sentiments during earlier trade mission visits to

to effect additional reductions lies primarily of the Chilean people. They are present also Japan and later this year to Europe, em

in transportation charges and we in Consol in the universal voice of our poets, and of phasized the quality, the availability, and intend to do all we can to help the Japanese these there is no better voice than that of the the stability of the mine-mouth price of achieve such reductions and thus strengthen great woman whose love for her land and its the State's bituminous coal.

U.S. coal's position in the export market. people reached out to all the confines of

Under the energetic leadership of Hon.

Executives of Eastern Gas & Fuel Asthis America of ours. This America, which John M. Kelly, Assistant Secretary of Gabriela Mistral loved with the same tender

sociates, the operations of which last the Interior for Mineral Resources, variaffection she bestowed upon her own beauti

year produced and exported 3 million ful and cherished land, of which she wrote, ous ways in which the Nation's coal in

tons of coal-a million tons of that while in Europe, in 1930: dustry could increase its sales to foreign

amount to Japan from its West Virginia "Born under the sign of poverty, with few markets have been studied. They were

mines, spent several weeks in that counresources and a meager population, the na- discussed by spokesmen for industry and

try last spring. Now, we are informed tion understood that it had to be frugal, Government at a mid-September Wash

Government at a mid-September Wash- by the press, the Eastern Gas & Fuel hard working in full measure, and peaceful ington conference sponsored by the Dein its civil life. If one were to give descrip- partment of the Interior.

group, again headed by Eli Goldston, tive names to our countries, one might say:

president of the parent firm, and Wil

Assistant Secretary Kelly has pointed Brazil, or horn of plenty; Argentina, or uni

liam B. Ross, president of a principal versal fellowship; Chile, or the will to be. out that, during the past decade, energy

subsidiary, are embarking on a worldThis stubborn will to exist has sometimes consumption in America's principal for

wide tour to study how to increase the had an aspect of violence, and to some it eign coal markets-Western Europe,

sale of American coal abroad. This is appears out of proportion for 5 million Canada, and Japan-increased 25, 45,

a further gratifying manifestation of people. But I, having no shred of Nietz- and 115 percent, respectively. He said scheanism, I like to think of it, to keep

aggressive market research and salesthat recent information on trends abroad watch over it, and to stir up its guarded indicates that "a tremendous additional

manship. embers, because the southern continent may market is emerging-enough to absorb

Concerning this trip and coal markets one day have need of that will, and it might

abroad in their relationship to the West both serve and save at some critical moment U.S. exports of up to 125 million tons of

Virginia and national economies, Mr. of continental solidarity. Countries that coal by 1970."

Ross is reported to have said: radiate little energy or feeling for mankind,

But he emphasized:

The possibility of increased tonnage abroad countries that are not dynamic, are small, The great potentials for our metallurgical will not only aid the industry and West Virno matter how large they may be; small, very and steam coals will not be realized autosmall countries that breathe outward in

ginia, it is an extremely important factor matically; a substantial share of the growing great spheres of influence grow steadily

in a better export-import balance for the energy market will be captured only if we

Nation. The entire coal industry has been larger and may even reach the infinite. are willing to work for it.

gratified by the administration's vigorous acTheir depths cannot be sounded, no one The Department of the Interior is con

tion in offering practical high level assistknows how far they reach, because their vinced that with abundant reserves of coal

ance to stimulate coal exports. potentials are the same as the potentials of available to meet virtually any requirements, the individual soul; that is, they are im and a demonstrated ability to keep costs re As was pointed out earlier in remarks measurable."

markably stable, the domestic coal industry attributed to Assistant Secretary of the Thank you very much.

has opportunities for significant increases in Interior Kelly, coal sales to European coal sales throughout the world. The indus

markets increased by 25 percent during try's strengths are reinforced by already apENERGETIC EFFORTS TO STIMU- parent means for increasing efficiencies in

the past decade—those to Japan at a

sensational rate of 115 percent. Japan, LATE COAL EXPORTS REQUIRE coal mining and preparation, by railroad and

port facilities that could easily handle much ASSISTANCE OF TRANSPORT AND

although far away, is today second only larger exports, and by new and more econom

to Canada as the best foreign customer TOLL COST CUTS

ical transportation concepts now emerging. of our domestic coal. Mr. RANDOLPH. Mr. President, the The gains already made in some of these It is reported that nearly 500,000 manproductivity and the prosperity of the areas have given U.S. coals economic advan

days of work in U.S. bituminous coal coal industry is so important to the tages over indigenous coals in many of the

mines were required to produce the coal economy of West Virginia and several

world's important markets. other States-especially in the Appa

With so many important factors in our exported to Japan in 1962. Directly and favor

indirectly, these shipments are declared lachian region—that we are stimulated

to have been responsible for more than to express gratification for the efforts of

He said

7,200 jobs—approximately 2,300 of them Government and the industry to increase a substantial expansion of our foreign coal in the mines. We are grateful in West coal's markets abroad. But these efforts markets in a relatively short time can be Virginia for the part these exports conneed the assistance of transportation assured by the determined action and coop

tributed to our much-needed employcost cuts and reductions in Panama eration of industry and Government.

ment and economic stimulation. Canal tolls.

Officials of the larger coal producers We are aware of the hazardousness of In West Virginia, although Statewide and exporters—especially those of Con the occupation of coal mining. We share unemployment has dropped from a level solidation Coal Co., Eastern Gas & Fuel with Japan the sorrow visited on so many of about 12.5 percent in 1961 to 7.5 Associates, and Island Creek and Valley of its families and its government by the percent at this time, the jobless rates Camp

Camp Coal Cos.-have been active very recent and tragic coal mine disin the coal producing counties, especially abroad throughout the year, particularly aster. No less tragic, of course, and likein the southern part of the State, remain in Japan.

wise a reason for our extending syminordinately high.

George H. Love, chairman of the board pathy to the Japanese people and govIn spite of more outmigration from the and J. W. Kepler, administrative sales ernment, was the catastrophic train labor force in some West Virginia

West Virginia vice president of Consolidation Coal Co.; wreck on the same fateful day as the communities than from most others were in Japan the second week of Sep coal mine explosion. of the State, here are a sampling of tember to talk with steel company offi Many of our citizens' lives have been the prevailing unemployment figures for cials and to examine at close range the

lost in their pursuit of mining and transthe predominantly coal economy coun- potential market for U.S. coals,

porting coal. Many more are subjecting ties: Fayette, approximately 16.1 per

In commenting, Mr. Love said:

themselves to jeopardy daily in the procent; McDowell, near 15 percent; Logan We were tremendously impressed by

duction of coal both for the domestic and Boone, close to 14.7 percent; Raleigh, Japan's growing economy and the determina and foreign markets. They deserve our about 10.7 percent; and Mercer, slightly

tion of their leaders to increase Japan's share respect and our admiration, as well as over 10 percent. of the world market. Their optimistic plans

our dedicated efforts to help improve It is apparent, therefore, that infor the expansion of their steel industry seem

the safety of their places of labor, They to have the real probability of success if we creased coal production and carloadings

are to judge by the progress made so far. If likewise deserve the aggressive efforts of the high-grade metallurgical and coal from the

United States is to share in the which are being made to preserve existsteam coals of the area are needed to growth of steel, as we certainly hope it will, ing markets and to find new ones.

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