Ban

Despite the fears of U. S. business interests that the dictator states of Europe are taking over the trade of Latin America, the bitterest trade competitor of the U. S. in Argentina at present is no totalitarian state but a democratic nation of traders, Great Britain. Although overtaken in many Latin American countries by the U. S. and pressed hard in others, in Argentina Britain still holds a handful of trump cards and by last week it became apparent that she is playing them in a manner calculated to take all the tricks.

Unannounced by the Argentine Government and vigorously denied by its representatives in the U. S., an unofficial ban on U. S. goods has prohibited the majority of importers from bringing U. S. products into Argentina since the first of the year. Behind this prohibition many observers detected the heavy hand of John Bull. Because she buys from Argentina far more than she sells to her, Britain has always been high in Argentina's favor. The U. S. (except when the 1935-37 drought necessitated unusual imports of Argentine grain) ordinarily buys less from Argentina than she sells her, does not enjoy Argentina's favor. Long a sore point with Argentina is the prohibition against the import of fresh Argentine meat to the U. S., a ban largely due to the claims of lobbyists from cattle & sheep-raising western States that Argentine meat comes from livestock suffering from hoof-and-mouth disease.

Despite these hard feelings, U. S. sales to Argentina have cut heavily into Britain's trade and during the first eleven months of 1938 the U. S. managed to ship to Argentina $230,988,648 worth of goods to Britain's $235,618,489.

Her trade supremacy in Argentina threatened, Britain some time ago began to knobble U. S. competition. She reportedly "requested" Argentina not to use British sterling to balance her obligations to the U. S., and Argentina is anxious to keep the economic patronage of a nation which buys the largest share of her chief products, grains and meat. Three months ago Argentina went further, set up a rigid exchange control plan.

Importers of goods from nations with which Argentina has an unfavorable trade balance--the U. S., Italy, Japan, Sweden and others--were ordered to procure special permits in order to bring in goods, effective January 1. The theory was that total value of permits would not be allowed to exceed the total value of Argentine exports to those countries. The catch has been that no permits for imports of U. S. automobiles, foodstuffs, tobacco, sporting goods, toys, etc. have been issued by the Government. General Motors Corp., for instance, with only a three months' supply of cars on hand in the Argentine, has quit advertising its product.

What the outcome of this ban will be was far from apparent last week but nobody was ready to believe that Argentina will permanently do without U. S.-made chewing gum and man-sized motor cars. Best-informed opinion was that the restrictions would probably remain until Britain's sales to Argentina can pull far out in front of her competitors' or, more likely, until Argentina can wangle the U. S. into buying more of her products.

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