United States Economic Relations With Argentina and Brazil,1947-1960.

342 Pages·2017·12.23 MB·English

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LSU Historical Dissertations and Theses Graduate School
1963
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Louis J. Rodriguez
Louisiana State University and Agricultural & Mechanical College
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Rodriguez, Louis J., "A Comparison: United States Economic Relations With Argentina and
Brazil,1947-1960." (1963). LSU Historical Dissertations and Theses. 854.
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RODRIGUEZ, Louis J., 1933-
A COMPARISON: UNITED STATES ECONOMIC
RELATIONS WITH ARGENTINA AND BRAZIL,
1947-1960.
Louisiana State University, Ph.D, 1963
Economics, general
University Microfilms, Inc., Ann Arbor, Michigan
A COMPARISON: UNITED STATES ECONOMIC RELATIONS
WITH ARGENTINA AND BRAZIL, 1947-1960
A Dissertation
Submitted to the Graduate Faculty of the
Louisiana State University and
Agricultural and Mechanical College
in partial fulfillment of the
requirements for the degree of
Doctor of Philosophy
in
The Department of Economics
by
Louis J. Rodriguez
B.A., Rutgers University, 1955
M.A., Louisiana State University, 1957
Juns, 1963
ACKNOWLEDGMENT
The writer wishes to thank Dr. L. M. Schur, the
Chairman of this Dissertation Committee, for his interest,
vital suggestions and cooperation; Dr. P. F. Boyer, Dr. R.
A. Flamang, Dr. S. W. Preston and Dr. W. D. Ross, members
of the Dissertation Committee, for their cooperation and
suggestions; Dr. E. N. Baklankoff for his initial assistance
with this dissertation; and his wife for her encouragement
in the face of personal adversity.
il
TABLE OP CONTENTS
CHAPTER PACE
INTRODUCTION . . . . ....................................... 1
Objectives, Scope and Method..... ........................ 3
Plan of Organization..................................... 4
I. RESOURCES AND ECONOMIC EVOLUTION OP ARGENTINA
AND BRAZIL TO 1947 .................................. 7
Argentina ........................................ 8
Resources ...................................... 8
Government...................................... 12
Economic Development ............................. 17
Foreign Investments ........................... 25
International Trade ........................... 30
Argentine-United States Economic Relations . . 36
Brazil............................................... 41
Resources................................... 41
Government......................................... 4-5
Economic Development .................... 48
International Trade ........................... 56
Porelgn Investments ........................... 62
Brazilian-United States Relations ............ 65
Argentina and Brazil Compared .................... 70
iii
iv
CHAPTER PAGE
II. UNITED STATES TRADE WITH ARGENTINA AND
BRAZIL, 1947-1960 .............................. 80
United States Trade with Argentina and Brazil
by Major Groups.............................. 81
Argentina ............................ 81
B r a z i l ....................................... 83
Argentina and Brazil Compared .............. 89
Analysis of Trade by Subgroups .............. 91
Argentina..................................... 92
B r a z i l ....................................... 94
Factors Influencing Trade ..................... 97
Argentina and Brazil Compared ................ 101
An Analysis of Chief Exports to the
United States ................................ 109
Specific Commodities ....................... 109
United States Import Policy . . . . . . . . 112
Promotion of Exports ....................... 114
Comparison of Argentina and Brazil ......... 119
III. UNITED STATES PRIVATE DIRECT INVESTMENT IN
ARGENTINA AND B R A Z I L ......................... 124
Economic Aspects of Investments .............. 124
Argentina....................................... 128
Government Regulations ..................... 128
T a x a t i o n ..................................... 132
Inflation..................................... 139
V
CHAPTER PAGE
Magnitude and Impact of United States
Investments.................................. 136
B r a z i l ........................................... 140
Government Regulations ....................... 140
T a x a t i o n ...................................... 143
Inflation...................................... 144
Other Investment Factors .................... 146
Magnitude and Impact of United States
Investments.................................. 148
Comparison of Argentina and Brazil ........... 131
IV. ARGENTINE AND BRAZILIAN BALANCE OF
PAYMENTS PROBLEMS ................................ 159
Measurement of Surpluses and Deficits ......... 160
Argentina......................................... 163
Exchange Controls ............................. 163
The Postwar Crisis, 1946-1949 ................ 169
Stagnation and the Balance of Payments,
1950-1960 .................................... 176
Role of the United States.................... 185
B r a z i l ........................................... 186
Exchange Controls ............................. 186
Brazil's Bal&noe of P a y m e n t s ................ 191
Exports......................................... 193
Imports......................................... 201
Balance of Payments Prospects .............. 204
vi
CHAPTER PAGE
The Role of the United States................ 210
Argentina and Brazil Compared .................. 210
V. UNITED STATES ECONOMIC POLICY TOWARD
ARGENTINA AND B R A Z I L ............................ 215
United States Economic Assistance .............. 215
Export-Import B a n k ............................ 215
Other United States Public Agencies ......... 218
Loans by International Agencies .............. 220
Argentine Policy ................................ 222
Brazilian Policy ................................ 228
Comparison and Evaluation of United States
Economic Policy Toward Argentina and Brazil . 236
VI. SUMMARY AND CONCLUSIONS.............................. 245
Resources......................................... 245
Balance of Payments......................... 249
Economic and Political factors ................ 252
United States Policy Change ..................... 255
United States Economic Policy Toward Brazil . . 257
Stages of Economic Development ................ 258
Foreign Capital ................................... 260
Inflation......................................... 262
Program for United States Economic Assistance . 266
SELECTED BIBLIOGRAPHY ................................... 271
A P P E N D I X ................................................ 292
V I T A ..................................................... 324
LIST OP TABLES
TABLE PAGE
I. Mining Production in Argentina, 1951-1959 . . . 11
II. Value of Argentina's Agricultural Production
1925-29 and 1945-48 Averages ................ 21
III. Cotton Textile Consumption in Argentina,
19 30-1945 ....................................... 23
IV. Argentina's Cement Production and Consumption,
1930-1949 ....................................... 25
V. Argentina's Exports, Imports, Terms of Trade
and Capacity to Import, 1925 to 1948 . . . . 32
VI. Argentina's Imports Per Capita for Selected
Periods, 1925 to 1948 ......................... 33
VII. Argentine Trade with Great Britain and the
United States, 1935 to 1 9 4 1 .................. 40
VIII. Growth of Manufacturing in Brazil, 1889-1920 . 53
IX. Brazilian Agricultural and Industrial
Production, 1920-1947 ......................... 54
X. Average Yearly Growth in GrosB National Product,
1920-1947 ....................................... 55
XI. Brazil's Quantity of Exports, Terms of Trade
and Capacity to Import, 1925-1949 ............ 58
XII. Value of Eight Export Commodities, in Per Cent
of Total Exports, Brazil (1821-1945) . . . . 60
vii
viii
TABLE PAGE
XIII. Make-Up of Brazilian Imports, Per Cent
of Value, 1905 and 1945 .................... 62
XIV. United States Investments in Brazil,
1929-1945 ........................... 64
XV. Percentage of Brazilian Trade with Selected
Countries, 1913-1945 68
XVI. United States Agricultural Products Exported
Under Government Aid Programs, 1956-57 . . 99
%
XVII. United States Share of World Exports and
Production of Selected Agricultural
Products in Annual Averages, 1934-35
and 1955-57 ................................. 100
XVIII. Changes in Cotton and Wheat Imports of Four
Western European nations, First Six
Months of 1956 and 1957 .................... 101
XIX. United States Coffee Imports from Brazil,
1957-1958, and Expected Imports for
1965 and 1970 ............................... 108
XX. United States Imports of Cocoa Beans,
1957-1958, and Expected Imports from
Brazil in 1965 fluid 1970 .................... 110
XXI. United States Imports of Iron Ore, 1957-1958,
and Expected Imports from Brazil
in 1965 and 1970 Ill
XXII. Impact of Taxes in Argentina.................. 135