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BASIC ECONOMY DEPARTMENT, INSTITUTE OF INTER-AMERICAN AFFAIRS Summary of relative participation of United States and foreign governments in

cooperative programs

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Mr. TABER. If you have anything ready as to any particular country, could we have a look at it so I can see what kind of a picture it presents so the committee can understand what is going on. I frankly do not know.

General Dunham. If you like, Mr. Taber, we can work up the information for one or two countries in detail. We will send it up with the detailed information covering everything in the country, so you can understand the entire program.

(NOTE.-The committee was furnished with complete statements regarding the health and sanitation and food-supply program in Paraguay and Peru.)

SUMMARY OF PRESENT AGREEMENTS AND AUTHORIZATIONS

Mr. Taber. I would like to have this particular table I am looking at now put in the record at this point, and I want to comment on some of the items here.

Mr. Cannon. Without objection, it will be inserted in the record.

(The table referred to, titled "Summary of present agreements and authorizations,” has been inserted with other financial statements, on p. 573.)

HEALTH AND SANITATION AGREEMENTS AND AUTHORIZATIONS Mr. TABER. This next table indicates just what your health and sanitation program is?

Mr. Hisle. That is correct.
Mr. Taber. At the different places?
Mr. Hisle. That is correct.

Mr. Taber. I would like to have that put in, and I think you might put that in right here.

(The table referred to, titled "Health and sanitation-Present agreements and authorizations," has been inserted on p. 578.)

HEALTH AND SANITATION EXPENDITURES

Mr. TABER. I would like to have this next table also.
Mr. Hisle. Health and sanitation expenditures?
Mr. TABER. Yes.

(The table referred to, titled "Health and sanitation-Institute of Inter-American Affairs expenditures (estimated),” has been inserted on p. 578.)

HEALTH AND SANITATION WORK IN BOLIVIA

Mr. Taber. You have gone into Bolivia and there have had a program of $2,166,000 for health and sanitation. What does that mean?

General DUNHAM. We have established several health centers there, One is at La Paz, the capital, where we have combined preventive medicine and disease treatment.

Mr. TABER. That is where you have doctors?

General DUNHAM. Doctors and nurses. We have some United States nurses, and we are training some local women as nurses, A health center also has been constructed at Cochabamba, a town down the mountains from La Paz.

We have an extensive malaria-control project in eastern Bolivia, a splendid agricultural country when it is opened up to development by improved roads. There are a number of other projects of that sort.

Mr. Taber. Bolivia is one place, I understand, that has produced a great deal of materials.

General DUNHAM. Yes.

Mr. TABER, Like tin and things of that sort for which there has been quite a demand, involving a lot of employment and a great deal of money brought into the country.

General DUNHAM. Yes; Bolivia has. That is true of Bolivia, but thev lack the know-how. As far as public health is concerned, Bolivia is one of the countries from which we have brought people to the United States for training. We also have tried to train a good many Bolivian nationals locally. You understand the work down there does not progress by itself; it takes a great deal of training, and we are training local people in the particular technical activities essential to the program.

Mr. TABER. The expenditures in this particular case so far are about what?

Mr. Hisle. This figure represents the expenditures to date.
Mr. TABER. $1,446,651?
Mr. HISLE. That is right.

Mr. TABER. Your big job covers operations in Brazil, Peru, Colombia, Mexico, and Ecuador. You have down here special project expenditures of $876,000. I do not know where that is shown or what that is; you have an item for training of $588,000.

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TRAINING PROJECTS

Mr. Hisle. That is for training programs, to bring individuals from the other American republies to this country for training in health, sanitation, and agriculture.

General DUNHAM. Those special projects are projects which are not a direct part of these programs but which are very much worth while and relate to the over-all program. I might cite, for example, that we have in Mexico and Guatemala, near the route of the PanAmerican Highway, a disease caused by a minute round worm which is transmitted by the black fly called onchocerciasis. We have invested in that project something like $100,000 in an attempt to control the condition, not only for the benefit of people in Guatemala and Mexico but also for the benefit of North American travelers who will eventually go through that infested area.

Mr. Hisle. There is also the public health nurses project under the Pan-American sanitary bureau which supplies nurses to these countries. This amounts to around $288,000.

General DUNHAM. And we have under way a special project to keep nurses there for awhile; we had to supply United States nurses in a number of these small countries to head up the teaching of nationals. South of Mexico, except here and there, there are no nurses such as we know in the States. In Brazil there was a nurses' training school established by the Rockefeller Foundation, which has graduated about 400 nurses. There are over 200 who are active there in the nursing profession, a country of some 45,000,000 people. We are attempting to build up that program, and we must have nurses in order to have health programs. So we have a nursing school in the program in Quito, Ecuador, in cooperation with the Rockefeller Foundation; and one at Bogotá, Colombia. We will have one at São Paulo, Brazil, and one in El Salvador.

In order to meet the urgent demand for some of these nursing facilities, we are, in some places, giving short courses, so they can help in the public health work and also take care of people in their countries.

ECONOMIC SITUATION IN LATIN-AMERICAN COUNTRIES Mr. TABER. Is it not true that all of these countries have a great deal of employment and have had for the last 4 or 5 years; that is, they have had even before you went down there?

General DUNHAM. That is partly true, but it is not true of all of them.

Mr. TABER. Where is it not true? In Bolivia it certainly is true, is it not, that this tin business has been carried on to a considerable extent?

General DUNHAM. That is true; but in the Central American countries and in the West Indies, where they have to depend upon exportsexport of foods, bananas particularly-unemployment became a very serious problem. It is better now, because they can ship out fruit to some extent.

Mr. TABER. Are they not able to ship all they can produce?

General Dunham. No; not yet. The last time I talked with the United Fruit people in Peru they indicated they were not shipping more than about 75 percent of their normal amount.

Mr. TABER. Honduras, Costa Rica, Salvador, and Guatemala have all been quite prosperous, have they not, over these years?

General Dunham. In some countries, such as Honduras, they could not sell their fruit because they could not ship it, and this has resulted in a certain amount of unemployment.

That is true also of Peru and there are other places where there has been a great deal of unemployment, particularly where they depend upon the export of sugar.

Mr. TABER. On sugar?

General Dunham. Yes; because they cannot ship it; they do not have the bottoms.

Mr. TABER. For sugar?
General DUNHAM. No.

Mr. Taber. I supposed that sugar was in such demand that they were able to get orders from everywhere and I did not suppose there would be much trouble about the sugar situation.

Mr. ROCKEFELLER. I would like to make one comment on that. What is happening in the area through there, Mr. Taber, is that there has been a tremendous demand for all strategic and critical materials, war materials, and there has been a boom in those industries. But consumer goods and foods, where there was a shortage of transportation, have dropped quite a bit and there has been a very serious situation in those industries and production areas. That is one of the problems in the banana industry. Not much more than about 10 percent of their normal production could be shipped.

Mr. TABER. That would apply to the Central American picture; it should not apply to it now, so far as I can see.

Mr. ROCKEFELLER. The situation is still extremely tight; and has been for some time.

Mr. TABER. You mean they cannot get bottoms to take all the sugar they can produce out of that section?

Mr. ROCKEFELLER. That is not true of Cuba, of course, because we are importing sugar from Cuba. It comes into Miami and is shipped by rail, and some of it by boat to other ports. But it holds true for the South American countries except in the case of grains that we are in need of.

Mr. Taber. What kind of grains?
Mr. ROCKEFELLER. Corn, largely, also linseed.
Mr. TABER. When was that?

Mi. ROCKEFELLER. We have tried to buy corn for import into the States for a year and a half.

Mr. Taber. That time has passed, however, lately?

Mr. ROCKEFELLER. Last year there was a crisis in this area, which does not exist now to the same extent in the United States. In Mexico, however, there was actual starvations due to the shortage of corn. The Mexicans consume a great deal of corn, and in recent years have not been able to produce enough for their own internal consumption.

Mr. TABER. Why is that; why has Mexico not been able to produce enough for her own consumptive needs?

Mr. ROCKEFELLER. For two reasons: First the consumption has increased with the increased standard of living of the country; and second, because those engaged in production can make more money out of exports in which they have engaged and have taken some of their acreage out of corn.

Mr. Taber. Mexico has been very prosperous, has it not?

Mr. ROCKEFELLER. Yes; Mexico has had during the war period a substantial increase in exports.

Mr. TABER. Why is it she cannot finance her own operations down there? I can see why, perhaps, we needed to finance some of these things that relate to war, like fixing up that railroad wbile the war was on in order to get stuff out of there, but just why is it these people in the other Americas cannot swing their own health and sanitation programs, and things of that sort?

PUBLIC HEALTH WORK IN LATIN-AMERICAN COUNTRIES

Mr. ROCKEFELLER. They do carry on the major portion of their own health and sanitation programs.

Mr. TABER. This thing shows in here, as I remember, $5,000,000 and the local government only $2,500,000 contribution.

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Mr. ROCKEFELLER. That is correct, in connection with special programs. But that statement does not show all they spend in their normal budgets on their own internal problems in the broad field of health.

Mr. TABER. Has there been any approach made to them to get them to do their own work?

General DUNHAM. Yes.

Mr. Taber. It seems that once we start on a program of this kind we are never able to stop it.

Mr. HARRISON. Our consistent efforts in carrying on this work, Mr. Taber, have been to show them our standards so they will carry

it on.

Mr. ROCKEFELLER. As General Dunham has pointed out, the work in public health is a recent development.

General Dunham. Public health, as we practice it today, is only about 20 years old. There was no idea of the prevention of disease, as we know it today, before the days of Pasteur, about the 1880's, and until the end of the First World War, there had been very little real public health work done. It began in this country in cities like Washington, Pittsburgh, and Chicago, where we began to practice public health measures in our waterworks, for instance. It was not until about 1930 that we really got into health-center work. These countries do not yet have the know-how.

(Off the record discussion.)

Mr. HARRISON. Mr. Taber, I would like at this point to say that we have not asked for a continuation of this program over and above what you have approved before. We have these commitments with other governments which we are trying to carry out efficiently, and we have General Dunham, who is without question one of the outstanding people in this particular field, in charge of this work. We are up here today asking for funds with which to carry on and complete commitments which have already been made under agreements with other governments. I believe this program has done more for the country as a whole than any other program in the field in fostering friendly relations with other countries, more than any program I have heard of during the war.

EFFECT OF PROGRAMS ON UNITED STATES ECONOMY Mr. Taber. We may be doing more for other countries but w are in a pretty serious situation ourselves right now and we have got to begin to figure on those things quickly and realize just wher we are. If we do not, we are not going to be able to maintain ou own economy. We have built up a tremendous inflation by thi method of financing things, and we have it where, unless we begin soon, it is going to be out of control. That is the picture we are in

Mr. ROCKEFELLER. I think you are striking at the very heart a this whole question.

Mr. TABER. We cannot maintain the other fellow's economy an wreck our own without bringing down the biggest curse that coul possibly happen to him. That is a problem that this committee i going to have to take the biggest part of the burden on, and I do ng know how much help we are going to get from other sources, but have got to begin to realize it.

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