AUSTIN, TEXAS 78712 PRIVATE INVESTMENT IN LATIN AMERICA HEARINGS BEFORE THE SUBCOMMITTEE ON INTER-AMERICAN ECONOMIC RELATIONSHIPS OF THE JOINT ECONOMIC COMMITTEE EIGHTY-EIGHTH CONGRESS SECOND SESSION 27-779 JANUARY 14, 15, AND 16, 1964 Printed for the use of the Joint Economic Committee U.S. GOVERNMENT PRINTING OFFICE For sale by the Superintendent of Documents, U.S. Government Printing Office CONTENTS Clayton, W. L., member, board of directors, Anderson, Clayton & Co.--- Fatouros, A. A., visiting assistant professor, University of Chicago Law School, and George Rublee, Assistant General Counsel for Private Enterprise, Agency for International Development--- Grimes, Francis E., vice president, area executive, Latin America, Chase Moore, John D. J., vice president, W. R. Grace & Co., and chairman, U.S. Peccei, Aurelio, executive director for Western Europe, ADELA, and Warren Wilhelm, executive director for United States, ADELA....... Ray, Philip A., attorney, chairman, International Bond & Share, Inc. ... Rublee, George, Assistant General Counsel for Private Enterprise, Agency for International Development--- ADDITIONAL INFORMATION AND EXHIBITS Questions propounded to George Rublee of AID and the answers Correspondence between J. Peter Grace and several members of COMAP pertaining to the report of the Commerce Committee for Speech of Hon. Bourke B. Hickenlooper, of Iowa, in Senate, November 13, 1963, entitled "Recent Developments in Argentina". "Foreign Investment in Latin America: The Role of Private Capital," article reprinted from the Quarterly Review, July 1963. Griffith, Representative Martha W.: A comparison compiled by the Bu- "Atlantic Community Development Group for Latin America (ADELA)," memorandum, dated September 19, 1963, describing "Comments on the Availability of Equity Investment Opportunities in "Summary Report of ADELA Conference, January 10-11, 1964- Participants at ADELA Conference, January 10-11, 1964-. "Regional Economic Integration in the Development of Latin America," an article by Harvey S. Perloff and Romulo Almeida_ Moore, John D. J., vice president, W. R. Grace & Co., and chairman, U.S. "Proposals To Improve the Flow of U.S. Capital to Latin America," report of the Commerce Committee for the Alliance for Progress - - "A Reappraisal of the Alliance for Progress,” memorandum by three Rublee, George, Assistant General Counsel for AID: Memorandum entitled "Aids to Business (Overseas Investment)," from State Department-Aid for International Development_-_ Specimen forms for guarantee programs (5). 193 239 III Table on U.S. direct investments-capital flows, earnings, values.. Table on U.S. direct investments-earnings and income distributed.. "United States Still a Bogyman to Latin America," excerpt from Business Week, December 7, 1963 Supplemental memorandum from Chairman of COMAP_ "Private Enterprise Under the Alliance for Progress," supplemental PRIVATE INVESTMENT IN LATIN AMERICA TUESDAY, JANUARY 14, 1964 CONGRESS OF THE UNITED STATES, SUBCOMMITTEE ON INTER-AMERICAN ECONOMIC RELATIONSHIPS OF THE JOINT ECONOMIC COMMITTEE, Washington, D.C. The subcommittee met, pursuant to notice, at 10:35 a.m., in room 1202, New Senate Office Building, Hon. John Sparkman presiding. Present: Senator Sparkman; Representatives Griffiths and Curtis. Also present: William H. Moore, economist; Hamilton D. Gewehr, administrative clerk; and Donald A. Webster, minority economist. Senator SPARKMAN. Let the subcommittee come to order, please. I have delayed opening the hearing for a few minutes hoping that our first scheduled witness for this morning might be present. We are informed that he has arrived in town and will be here any minute. Two other members of the subcommittee are expected also, but I understand one of them has been held up and the other one is coming in from out of town. Those of us who have managed to get here are certainly ready to admit that travel and arrival times are a little uncertain and difficult in face of such heavy snow and winds. The Alliance for Progress, which finds its expression in the Charter of Punta del Este, was signed and agreed to as a cooperative and mutual program. The charter was signed by all of the Latin American Republics including, it is appropriate to remember, Brazil, Argentina, Peru, and Panama, as well as the United States. This historic charter recognized that the cooperation of all parties would be needed if the measures and hopes for economic and social progress to fulfill the commitments of the charter were to succeed. These hearings deal primarily with one specific aspect of that pledge or cooperation; namely, the role of private enterprise in supplying capital and producing the goods and services upon which a higher Tevel of living can be based. The declaration to the peoples of America set out in the charter contains among other worthy goals such as wiping out illiteracy and bringing about a steady increase in average incomes, two express objectives which I believe are worth quoting in full as background for these hearings. The mutual commitments which these sovereign countries countries agreed to included undertakings— To stimulate private enterprise in order to encourage the development of Latin American countries at a rate which will help them to provide jobs for their growing populations, to eliminate unemployment, and to take their place among the modern industrialized nations of the world. To maintain monetary and fiscal policies which, while avoiding the disastrous effects of inflation or deflation, will protect the purchasing power of the many, guarantee the greatest possible price stability, and form an adequate basis for economic development. 1 |