Economic Nationalism in Latin America

April 2, 1969

Report Outline
Current U.S. Controversy With Peru
Reasons for Rise of Latin Nationalism
Elements of a U.S.-Latin Accommodation
Special Focus

Current U.S. Controversy With Peru

Threatened Loss of Foreign Aid and Sugar Quota

Unless a face-saving device is found at the last moment, President Nixon must cut off American aid to Peru on April 4 and suspend that country's lucrative U. S. sugar quota on April 9. As matters now stand, the President has virtually no choice. He is required by law to take the foregoing steps in retaliation for Peru's expropriation of American-owned property, Oct. 4, 1968, without adequate compensation.

Up to now, the Peruvian government has shown little inclination to ease the crisis by offering to make some kind of reasonable settlement with the International Petroleum Co., a subsidiary of Standard Oil of New Jersey. On the contrary, the Peruvians have escalated the crisis. Their latest move, the presentation to I.P.C. on March 23 of an additional bill for delinquent taxes, brought to over $1 billion the total amount claimed from the company. By contrast, the Peruvian government has valued the seized properties at only $71 million.

As the clock ticks toward the two deadlines, several other Latin American nations are quietly lining up with Peru. United States businessmen with interests in Latin America no longer find comfort in the view that the Peruvian affair is an isolated case. For the evidence is that this country is in for trouble all over Latin America. The Peruvian crisis has revealed a strong undercurrent of hostility there. By openly defying the United States, Peru's military leaders have brought into the open more than a century of accumulated antagonism toward “imperialist exploiters,” mainly in the form of U. S. businessmen. A strong sentiment of economic nationalism, based on fear of domination by foreign—especially American—interests, pervades the Latin nations.

ISSUE TRACKER for Related Reports
Latin America
Sep. 14, 2018  Turmoil in Central America
Jun. 05, 2012  China in Latin America
Mar. 2008  The New Latin America
Jul. 21, 2006  Change in Latin America
Mar. 14, 2003  Trouble in South America
Nov. 09, 2001  U.S.- Mexico Relations
Sep. 19, 1997  Mexico's Future
Jul. 19, 1991  Mexico's Emergence
May 05, 1989  New Approach to Central America
Mar. 06, 1987  Soviets' Latin Influence
Dec. 26, 1986  Pinochet's Chile
Nov. 08, 1985  Troubled Mexico
Apr. 10, 1981  Latin American Challenges
May 05, 1978  Central America and the U.S.A.
Sep. 23, 1977  Mexican-U.S. Relations
Jun. 04, 1976  Relations with Latin America
Oct. 21, 1970  Chile's Embattled Democracy
Jun. 24, 1970  Mexico's Election and the Continuing Revolution
Apr. 02, 1969  Economic Nationalism in Latin America
Jul. 19, 1967  Guerrilla Movements in Latin America
Dec. 28, 1966  Militarism in Latin America
Oct. 20, 1965  Common Market for Latin America
Aug. 04, 1965  Smoldering Colombia
Jun. 23, 1965  Inter-American Peacekeeping
Dec. 11, 1963  Progress of the Alianza
Oct. 05, 1962  Arms Aid to Latin America
Dec. 13, 1961  Land and Tax Reform in Latin America
Jul. 26, 1961  Commodity Agreements for Latin America
Jan. 11, 1961  Revolution in the Western Hemisphere
Feb. 10, 1960  Inter-American System
Feb. 10, 1960  Inter-American System
Jan. 13, 1960  Expropriation in Latin America
Jul. 02, 1958  Economic Relations with Latin America
Mar. 02, 1954  Communism in Latin America
Jun. 20, 1952  Political Unrest in Latin America
Sep. 18, 1950  War Aid from Latin America
Oct. 31, 1947  Arming the Americas
Jul. 24, 1946  Inter-American Security
Jan. 02, 1942  Latin America and the War
Jul. 10, 1941  Export Surpluses and Import Needs of South America
Jun. 04, 1941  Economic Defense of Latin America
Jun. 25, 1940  Politics in Mexico
Nov. 01, 1939  Pan American Political Relations
Oct. 10, 1939  United States Trade with Latin America
Apr. 07, 1938  Protection of American Interests in Mexico
Mar. 04, 1936  Peace Machinery in the Americas
Sep. 27, 1933  Trade Relations with Latin America
Oct. 16, 1928  Pan American Arbitration Conference
Jan. 12, 1928  The Sixth Pan American Conference
Jan. 10, 1927  American Policy in Nicaragua
Dec. 27, 1926  Relations Between Mexico and the United States
Regional Political Affairs: Latin America and the Caribbean