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FREEDOMWAYS                            FIRST QUARTER 1968

and devaluation of currency. In 1961, the official rate was 250 pesos; in the black market, it was 290 pesos. In Brazil and Chile, inflationary rise was greater than in Argentina. The currency of Uruguay lost 90 per cent of its value during 1965 and 1966.
  [[/ Italic font]][[U.S. aid alone is not the answer. South American countries received $500 million in 1962 under the Alliance, but lost exactly the same amount in that year because of jailing prices.]]
  More capitol flows out of, than comes into, South America. According to figures of the Economic commission for Latin America (ECLA), for every dollar invested by North Americans in the period 1946 to 1956, there was an outflow of $8.17. In Guyana, profits of more than [[?]]50 million are made annually by foreign investors. For Jamaica, net outgoing profits for 1964 were $52 million (WI) while new investments were a mere $22 million; for 1965, the outflow increased to about $80 million.
  And we know from our own experience that about 80 cents out of every dollar of U.S. aid is tied to purchases of goods and service from the U.S.A.
  [[?Italic font]][[This kind of conditional aid also has other strings. Recipient countries are forced to tailor their monetary, fiscal and exchange policies to suit the U.S. Treasury and the International Monetary Fund (IMF).]]
  For instance, under an agreement signed in November 1965, the U.S. Treasury and the IMF had what amounted to virtual control of Columbia's policies.  When the new President Carlos Lieras Restrepo, was asked to renew the agreement, to repeal the recently imposed exchange restrictions and to  devalue the peso, he refused, charging that the IMF's demands "overstepped the limits of national sovereignty."
  [[/Italic font]][[Countries receiving U.S. aid are also forced to concentrate on development of infrastructure and social overheads.]] This in time leads to crashing debt burdens.
  The answer to the economic ills facing Guyana, the Commonwealth Caribbean territories, Latin America and other "third world" countries, is not to chase after rainbows.
  [[/Italic font]][[The OAS must be recognized for what it is-a cold-war military alliance, founded in 1948 and based upon the economic foreign policy objectives of the Truman Doctrine of 1947.
  This doctrine aimed not only at the destruction of socialism but also at the maintenance of the economic status quo of colonialism]]

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