miércoles, 19 de enero de 2011

Advantages of Latin American Integration

“  THE  NECESSITY  AND  THE  ECONOMIC  AND  SOCIAL  ADVANTAGES


OF  LATIN  AMERICAN  INTEGRATION  “





I.          INTRODUCTION

            I appreciate very much having been invited to give this lecture on the 201th. Anniversary
of Simon Bolivar’s birth, one of the greatest American visionaries, who was amongst the first
few to dream about Latin American integration, and for this reason I have entitled this lecture
“The Necessity and the Economic and Social Advantages of Latin American Integration”.

            To start with, I will explain the three basic reasons which have motivated me to raise
the issue that a book on Latin American integration should be written, specifically oriented to
the worker, the rural sectors, students, and women; that is to say, not just fort an educated
elite, but for the common citizen. This book should contain, in a very simple and direct
language, the most outstanding aspects that have affected the conception and development
of our present reality, for which I suggest the following chapters:

            I.   Introduction.
           II.   Historical analysis of the process of integration in Latin America.
          III.   Attempts at political and economic integration in Latin America.
          IV.   Military expenses in Latin America.
           V.   Historical study of the unification in European countries and related principles.
          VI.   Costs of non-integration.
         VII.   Latin American idiosyncrasy and its consequences.
        VIII.   Analysis of political systems and economic development.
          IX.   Ways of concretizing Latin American integration.
           X.   Conclusions.
                  Bibliography.  

            These chapters can be supplemented with sub-chapters in order to provide the readers
a vast knowledge on the matter, both global and specific.

            As a Chilean citizen, with a degree in Business Administration, and concerned about the elimination of misery and injustice, in the course of the last eight years I have been devoted to the study of national and international events. Thus, I became aware of some serious irregularities which are being carried out in the financial system, in the tax policies and in the administration of publicly owned companies in Chile, of which on many occasions I have unsuccessfully pointed out to the local press.

            On the other hand, as a result of my experiences as a visitor in developed countries,
I have often wondered: Why in Latin America, with twice the physical surface of U. S. A.,
therefore being richer in natural resources and having more inhabitants, should such
deplorable conditions of misery and dependency continue to exist?

            My next step was how to show to the inhabitants of Latin America the magnitude of
the economic, political and social harm they suffered as a consequence of their balkanization,
lack of unity, and disintegration. From these studies two main figures arose, which I hope
may draw attention:

 First, Latin America has a minimum economic damage of US$ 400 per month per family *, for
not being integrated. We must bear in mind that 85% of the families living in Latin America do
not achieve this income. This is a good reason why the book I suggested must be written as
soon as possible for all Latin American inhabitants, so they may become aware of the need of
devising a comprehensive strategy for this integration in every realm.

Secondly, idiosyncrasy (or behaviour) in Latin America constitutes a severe handicap. The
fact that people do not feel inclined to honesty, work, and savings, has a monthly average
cost of at least US$ 1.000.-per Latin American family.
______________________                                                        

*          Family is defined as a standard group formed by five people of which two or three
            could be adults and the rest could be minors or elders.         
 
          

            These two figures are the two basic reasons that encouraged me to promote the idea
that this book must be written.

Thirdly, most of the essays and technical papers written by individuals or specialized institutions, jointly with the numerous seminars, conferences, and lectures held during the last decades in relation to Latin American integration, have been unable to stir the conscience of the great majo-rity of the inhabitants of our Continent. Therefore, these figures must be published and made available, in the hope that when verifying the damages that have been done to them, they will
feel motivated towards the aforementioned integration and the changing of their attitudes.

            The importance of the stated amounts is such, that if Latin America were integrated
and had the adequate idiosyncrasy, only four months would be required to obtain the necessary
resources to pay in full our present external debt. Imagine: our heavy load, which prevents us
from growing and taking-off, would be paid off in just four months!

            How can we prove these figures I have shown? One method is to derive the economic advantages through innumerable calculations, resulting from such eventual integration; for
instance, greater industrial development, market enhancement, better chances of employment
and technological development, drastic decrease in military and red tape expenditures, etc.etc..
These calculations, aside from being complicated, take too long, and are too complex to be
understood by the prevailing groups which such a book should be oriented to.

            Consequently, I have chosen a parallel with other countries or groups of countries
politically and economically integrated among them, to demonstrate the figures and damages
which I have focused on.

            To delve more deeply into the matter, I called on some North American universities having Departments of Latin American Studies and international organizations such as OAS, IDB, and INTAL. Following these experiences, I have outlined the tentative index of the book which I
believe contains the most relevant points worth bringing to the light. I feel it as appropriate for
the creation of an integrationist conscience among the great Latin American majorities.

            In order to have an influence on the great majorities, it is necessary that this book be understood and read with pleasure and interest by rural sectors, workers, secondary and
university students, women, etc. etc. If the majority of the inhabitants of the continent, who
are the ones really harmed, are not aware of the cost that they are paying for not being
integrated, they will not be motivated towards this goal.

            Incidentally, I want to tell you that, in spite of the existence of countries like Peru,
Bolivia and Ecuador, whose constitutions have stipulated integration as a national goal,
absolutely nothing has been done in this respect.

II.         CONTENTS  OF  THE  BOOK.
           
            II. a    Past and present.

            Following, I shall describe briefly this tentative index, by highlighting its contents and purposes.

            A historical analysis of the process of integration in Latin American must be accomplished first. La Colonia (Colonial period) would be a sub-chapter. We must point out the most significant events during this period, which led Latin America to be dismembered when “Independence
was declared. By contrast, Brazil and the United States became free without this problem. We
must also outline the events occurred during the process of the Independence, which caused
disintegration. Therefore the history of leadership must be analyzed; the disputes and problems that arose between the leaders of various provinces and any other specific problems, influence
and actions of interested groups within these countries, as well as influence and actions of
groups or  countries alien to Latin America.         

            It is also important to analyze the actions of Simon Bolivar, considered the greatest leader in Latin America, as far as integration is concerned. He failed, in spite of his dreams, his struggles and battles won. We must also analyze the hypothesis that, believing that we would become independent, the only thing that we obtained was another form of dependence.

            Then, it has been suggested that since Independence we entered into an Imperial Period,
in which we have not been truly independent, because we have been subdued; in the first place
to England and later on, virtually, to the United States, and more currently some Latin American countries are under the Soviet Union‘s influence.

            In this context we can mention the example of England which never accepted the owner-ship of Latin America by Spain and Portugal. Perhaps, England was, after all, the only beneficiary,
because after helping Latin America achieve its pseudo-independence, we then fell almost com-pletely under the British influence until 1914. Furthermore, we remained disunified, which left
us in a much weaker position for negotiation that when we were under the Spanish imperial rule.

            This would lead us to pose a question: To what degree was our Independence a mere business for the Saxon groups as well as a loss for Latin American countries? Another question is: What was the influence of the United States and the Monroe doctrine which stated: “America for the Americans”? What did he mean? Was it for all Americans or only for the North Americans?
These are questions worth investigating, and reporting about.

            The role of transnational companies is widely criticized in Latin America. We must study how much they have taken advantage of Latin Americans, and how much Latin Americans are to blame for this. How much has there been of “cipayismo”, “tokenism”, “cokacolism”, etc. etc.?

            In respect to transnational companies, it must also be said that these are necessary
for development since these companies have such importance in the economic growth of the modern world, and we must take them into account, as they control technology, administration techniques, markets and financial sources.

            Trading with these transnational companies will be necessary if Latin America becomes integrated. But, of course, fair deals must be made. The only way to achieve this is by having
truly honest public officials to defend our interests and by no means sell themselves to
transnational companies.

            We must not forget that other countries of great industrial and commercial importance exist, such as Japan and Germany, which Latin America has not taken sufficiently into account.

            Point   III of the index refers to attempts at political-economic integration. Since World
War II, many efforts have been made, particularly encouraged by the success of the European Common Market. These attempts have failed basically because our countries hold distinct levels of development and their economies are not at all complementary. One clear difference which has been observed between Latin American attempts towards integration and the European Common Market, is that the European Common Market permitted free movement of productive factors, such as workers, companies, services and capital. This meant that the economic damage produ-ced by the integration of countries in different levels of development could be modified by the same effected persons or companies, due to the free movement within the integrated countries.
Perhaps this measure was the key to success reached by the Europeans.

            The general criticism of attempts towards economic integration, can be seen concretely, by studying and demonstrating why LAFTA (ALALC) failed, and was transformed into ALADI, and by studying the performance of the Andean Group, which was an attempt of integration between some of the countries within LAFTA formed to defend themselves from an”imperialism” within this group, due to the fact that Mexico, Brazil and Argentina were more highly developed. Another example would be to analyze what happened in the Central-American Common Market, ruined as a consequence of the football war between Honduras and El Salvador in 1969, and by observing the development of CARICOM, etc. etc. The idea is to show in all of these attempts towards 

 economic integration, what were the proposed goals, what were the resources used, and what were the meager results.

            The existing political organizations constitute another category of attempts such as
OAS (Organization of American States), which has unsuccessfully taken initiatives towards
the integration of our countries.

            Moreover, there are other entities such as the EXIMBANK, the INTERAMERICAN DEVELOP-MENT BANK- which has a department for integration called INTAL-, the Economic Commission for Latin America (ECLA), which depends on the United Nations, etc. It is essential to study and show the aims of such organizations, as well as the resources utilized and the results achieved.

            Subsequently, the following chapter of this book would be devoted to military expenses
in Latin America. We could start by reviewing warlike conflicts in Latin American countries. For instance, the Rio de la Plata conflict, between Argentina and Brazil; disputes between Argentina and Chile, over Tierra del Fuego; the two wars between Chile and the Peru-Bolivian Confederation;
the Triple Alliance War; the Chaco War, between Bolivia and Paraguay; the Peru and Ecuatorian
War, etc. etc. All these conflicts must be analyzed taking into account the high cost of human lives, equipment and constant susceptibilities. Furthermore, most of these struggles have not yet come to an end, as in the case of Chile against Peru and Bolivia in 1879, for they are still resentful. Then, we have the territorial differences presently prevailing. Chile with Argentina, over the Beagle *;
the problem of Argentina and Great Britain in their fight over the Falkland Islands, the conflict of Guatemala and Great Britain over Belice, and others. Consequently, it is important and necessary
not only to look at the economic aspect and the cost of these conflicts, but also to see how they
impede development and the possibility of integration amongst our countries.

            It is also necessary to look at how much Latin American countries spend in maintaining  their armed forces, and what part of such expenditures are provoked by these internal conflicts
that have occurred within Latin America itself. How much is spent on arms in Latin America?
From who are these arms bought? What part of this arms purchase is a consequence of the
internal disputes between brotherly countries? That is to say, besides seeing how many Latin Americans have died by the hands of other Latin Americans; it is also important to look at how
many resources are destined to install weapons factories. At present, Latin America is a conti-nent in the process of manufacturing weapons, for unfortunately, it is a profitable business.

                        In another chapter, the feudalism in Europe and the case of Latin America should
be compared. We can analyze the events occurred in France, Germany, Italy, and England, when
their feudal conditions came to an end, where we can verify the huge economic and social bene-fits obtained by the great masses, while the prevailing elites suffered, not in the economic aspect,
because practically all of them had an increase in this area, but in their social position.

            In the case of Latin America, the elites, or the equivalent of the European nobility, are the
oligarchies comprised of farmers, industrialists, and great businessmen, who have profited by
keeping our countries in this semi-feudal or divided stage. For instance, I estimate a minimal
part of what Latin America has lost for being dismembered, as 10 or 20 times the present
external  debt. This is to say, that instead of an external debt of 350 billion dollars *, which is
our present debt, we could have resources amounting to at least 3,500 billion dollars, that
could have been invested in our development.


________________________

*      The Peace and Friendship Treaty was signed and ratified by His Holiness
        The Pope John Paul II, and the Chancellors pertaining to both countries, on May 2nd, 1985.

*      One billion US$= one thousand million US$.             


            Subsequently, a chapter is suggested to determine more exactly our economic cost
for not being integrated. This chapter is supposed to show who has taken advantage and
who is profiting by all these losses suffered by Latin America. We have already stated that the
dominating elites were benefited internally, but externally the great powers such as England
and the U. S. A. were benefited.

            Another chapter would emphasize the fact that Latin America has more resources than
any other country or group of countries. That is to say, our resources are greater than the ones
owned by the U. S. A. , the Soviet Union, the European Common Market, the ASEAN (Association
of Southeast Asian Nations), etc.etc. Therefore, it is important to register the mining, farming,
fishing, forestry and human resources, as well as the potential wealth of unexploited resources,
taking into account the importance of maintaining an ecological balance, in this way preventing
us from repeating unfortunate experiences.

            As an example to the aforementioned, and to realize its magnitude, we would analyze the
case of forest resources. According to FAO (Food and Agriculture Organization), Latin America
owns 25% of the forest resources on the planet, but only 2% of it is exploited. Now let us focus
on the Latin American foreign trade in respect to forest resources: from the total of world trade
of forest resources, which is approximately 51 billion dollars, Latin America only exports around
one billion dollars. Another example to illustrate this gap: Canada exports ten billion dollars, that
is to say, one country which is a little more developed, has a participation in the forest resources
foreign trade, 10 times greater than that of all of Latin America.

            The method I chose to demonstrate our economic losses was by comparing the advan-tages obtained by other countries or group of countries as a consequence of their political and
economic integration. Therefore, we should ask ourselves: What would have been the U. S. A.’s economic yield, if, instead of being just one country consisting of 50 states, these 50 states
were 50 countries having conflicts between them as in Latin America, and traded separately     with any other power in the world? The same goes for the Soviet Union. What would it happen
if instead of being 15 united republics they were 15 separate republics trading independently
with the prevailing powers, bleeding to death because of their eternal disputes?

            There is another group of countries, though not politically integrated; they are economi-cally integrated to the world. Here we have the European Common Market, whose economic
progress, due to its union, has been the main incentive for the pseudo attempts of integration
carried out in Latin America. I would like to mention another example, within the same context:
it is reported that during the short period of time that the Centro American Common Market
functioned well; before the football conflict which paralyzed it, it was estimated that this pseudo
integration caused, * at least, a 1.5% additional growth per annum over the economy of those
countries. If we project this 1,5% of additional growth for the 150 years of history during which
Latin America was disunified, we would have a wealth per capita 9 times greater than the pre- sent one; that is to say, if we had been a “great community of nations” since 1826, today we
would have 9 times more income per capita than we actually have.

            In the same context, I wish to analyze the case of Japan; though not politically integrated,
it is economically integrated with the world, because it buys and sells to the rest of the world,
the same as Germany. Switzerland would be a “sui-generis” case which has become the
“safe deposit box” of the planet.

______________________

*          SIECA: “The Integrated Development of Central America in the
            present decade”, Ed. INTAL, Buenos Aires, 1973, 11 copies.
            Cit. in Vacchino, Juan M., Regional Economic Integration, page                      
            502, University Press, Caracas, 1981.              



II .b      Idiosyncrasy

            We are now in the threshold of one of the most important subjects: Latin American
Idiosyncrasy. It is said that maybe our idiosyncrasy was due to our colonization by the  
Spaniards, instead of the Saxons; and amongst the Spaniards were the Andalusians, a group
of people well-known for their unproductiveness. It is also said, that we are the way we are,
because we practice the catholic religion and not the protestant. One more explanation for
our under development is due to the political situation, and the fact that we are dependent
countries, not independent. I do not know whether dependency arises from idiosyncrasy, or
the contrary:   idiosyncrasy is the result of dependency! At this point, I would like to highlight
certain specific features existing in our public institutions and governments, that demonstrate
how our idiosyncrasy has resulted in much poverty.

            Firstly, it is necessary to analyze the justice systems existing in Latin American countries.
Unfortunately these are corrupt and immoral, because they do not punish the white collar offen-ders. Consequently, it favours those who do not fulfill their commitments, and is detrimental to
those who do fulfill them. The dishonest politicians and governors are not punished in Latin  America. In the U. S. A., on the contrary, as every one knows, President Nixon was forced to resign for the sole fact that he lied and was unethical during his administration.

            Vicente Huidobro, a remarkable Chilean poet, many years ago wrote these words concerning justice: “Justice in Chile would make us laugh if it did not make us cry. In one plate
of the Justice scale, is the truth, and in the other is a piece of cheese. Our justice is a rotten abscess, that fouls the air, and makes the atmosphere unbreathable, hard and inflexible for the
poor, and soft and smiling for the rich. Our justice is rotten and it has to be cleaned up. Like Judas sitting in the court after the Crucifixion, caressing in his pockets the slandering coins,
while he questions a hen thief. A one-eyed justice: the eye looking at the great men on the
earth is closed, and sealed, with a silver dollar. Only the other eye is open, which looks the
poor and the weak. Are you looking for the agitators of the common people? No, one thousand
times no. The greatest agitator of the people is injustice. You are the agitator, you, who search
for the lower class agitators and forget those of the upper class”. 

            As we see, to reform justice and make it impartial, timely and fair, is an unavoidable task.
Timely means quick and speedy. As a matter of fact, it comes to mind the well-known aphorism:
“Justice delayed, is justice denied”. To achieve this quickness, firstly we have to modernize the
Court of Justice procedures, among other things. The term “fair” implies more drastic punish-ment for the offender pertaining to the highest social and economic standard, for this individual
is far more responsible for his felonies. On the contrary, the lower social standard individual
should not be punished in such a severe way, for he is less aware of his felonies and could have
been forced to become a delinquent due to his ignorance or in his desperate need of subsistence.

            What do we get when true justice prevails? We get respect for the laws; and when laws    are respected, there is contract fulfilment, respect for others’ rights, and consequently economic growth. But unfortunately, in Latin America, since Colonial times, we have been ruled by the principle that laws “are accepted, but not complied with”.

            The entangled and corrupt red tape is another important matter which has greatly contri-buted to the materialization of our idiosyncrasy. The Latin American bureaucracy is known for
its innumerable procedures; that it receives and demands bribes; and has created the most
embarrassing systems. It needs to be cleared out, and reduced. In other words, if we had a new
Bureaucracy that encouraged development, and in no way interfered with it, it would bring us many economic advantages, and cut back expenses. Imagine the advantages for economic growth, if the country was efficiently administered.
                                                                                                                                        

            A typical characteristic, partly depending upon our idiosyncrasy, is our attitude towards
taking what we want from those who have it, instead of following the correct path, that is, by
creating it. But, unfortunately, the one who has, can be taken from only once, for afterwards
he will take precautions. Regarding the abovementioned, there are high tax rates prevailing in
some Latin American countries.

            The only way an underdeveloped country can progress is by having reasonable tax
rates, these being no greater than a 20% Income Tax. I think that with a 20% Income Tax rate,
a 20% VAT, and 20% tariffs, more than enough resources would be obtained by any country,
in order to meet the goals of development. Reasonable rates decrease tax evasion, creating
a tendency to fulfill tax commitments.

            The challenge of the future is not so much how the assets we produce presently are
distributed, but how to increase our present commodity and wealth production, sufficiently
to meet the needs of all.

            Since no miracles do occur, the only way to achieve this is by working harder, studying harder, by developing and implementing new technologies, and by organizing ourselves better.
It must be highlighted that our organizing capacity, our management capacity and our CREATIVE
IMAGINATION are intangible resources, therefore they cannot be EXPROPRIATED; and it depends
on these attributes whether the work and capital are fruitful or not, and whether these are useful
or not.

            Bad administration of companies and public resources is another consequence deriving from our idiosyncrasy. It must be outlined that countries in Latin America –governments-in
general, are the owners of vast resources and the greatest enterprises existing in each country.
Then, an efficient administration of these enterprises and resources based on an adequate system of sanctions and rewards, that is, by punishing any offence and encouraging the
positive achievements, on the one hand, will improve the general order of the country, and,
on the other hand, shall provide large resources to attain government goals.

            There are some additional features caused by our idiosyncrasy, and particularly, one that
has great importance for the attainment of our economic growth: this is political stability. This
political stability does not exist in Latin America; consequently, there is not even stability in the
rules of the game. From free enterprises we go to socialism, and from democracy to dictatorship, or viceversa. The attainment of political stability will result in great economic development, because it is the very basis of it. The way to reach political stability is by the existence of order,
justice, and respect for the rights of all.

            What would we obtain with the application of the indicated measures, plus political stabi- lity? Among other things, we could put an end to capital flight, which amounts to approximately 15 billion dollars per annum in Latin America. Some time ago “El Mercurio” (main Chilean news- paper) published an article stating that 130 billon dollars was the capital flight leaving the Latin
American countries during the last few years. Don’t you think that with political stability, an efficient bureaucracy, a sound and honest legal system and reasonable income tax rates, we would have accomplished the investment of all these funds in our countries and therefore, there
would be no unemployment problems and lack of growth, which at present exist?

            To emphasize these facts more and show you the importance that idiosyncrasy has in our economic development, I want to make a parallel between Japan and Chile. Japan owns half the
surface of Chile, its population is 12 times greater, and practically has no natural resources, but
is capable of providing its citizens a standard of living 5 or 6 times higher that the Chilean rate.
What does this mean? It means that Japan produces approximately 140 times more than Chile
in proportion to its physical surface. If these 140 times more which corresponds to the Japanese
production in relation with Chile, and in proportion to its physical surfaces, are divided by the
greater number of inhabitants it has, Japan would continue to produce 12 times more than Chile.

Therefore, we can deduct that if we modify our idiosyncrasy and we adopt an idiosyncrasy
like the Japanese one, we could increase 12 times our income per capita, and not 4 times, as
I postulate. The example of Japan demonstrates that the figures I have mentioned could be
triplicated, though some people might take them for optimistic.

II.c       Present and Future.

            In the book I am promoting to be written I think it is also necessary to make a short
analysis of the political and economic development systems, in order to establish a greater
awareness of the damages suffered: to look at the advantages and defects of the capitalistic system and to examine the advantages and defects of the socialist system. For example, the
feasibility of implementing a federal system in Latin America could be studied, similar to the
one in the United States or West Germany, or any other, offering economic development,
stability and respect for human rights. Analyzing capitalism, my impression is that this maximizes
production, and by the tax system, sufficient funds can be obtained in order to protect the most
impoverished ones and to satisfy true social needs such as employment, education, housing, health, safety, and access to culture. In summary, production must be capitalistic, but the
government expenditure must be socialist. This means that each one who produces, receives according to his contribution, and in respect to the government expenditure, its fundamental
rule must be solidarity towards the most deprived.

            There is another large problem which must be examined: socialist countries make use
of their authority to prevent damaging the members of their society and this would be one of the
virtues of their system, because begging, parasitism, and prostitution are social diseases that
should not be permitted. As the State is obliged to give minimum opportunities to all its citizens,
the deterioration of its members cannot be allowed by tolerating the aforementioned activities:
prostitution, mendicancy and parasitism. Furthermore, in order that a country advances, all
its  inhabitants have to advance too. A country cannot develop itself, if its inhabitants do not
progress or improve. A country is like a human body: the body decays if its cells get sick;
and the same happens to a country, if its citizens are not healthy.

            Another interesting aspect of the various political regimes is that within capitalistic economies there is a corrupt minority that falls into multiple vices or degenerations. This
is another virtue which I consider to exist in socialist countries. As begging, parasitism
and prostitution are not allowed there, neither are unhealthy conducts permitted, such as
homosexuality, alcoholism, drug addiction, etc.etc. Some people could argue that Russia
has a high percentage of alcoholism; but at least, there is an official control action from public
entities to decrease these social problems.

            Finally, I have thought necessary to add a chapter concerning how to go about achieving
this integration; how can we awaken the great majorities, the governments, and the international
and transnational organizations, in order for this integration and this change of mentality to become a reality. I believe one way is by forming prointegration groups in all Latin America.

            The book I propose to be written could serve as a link for the groups in process of organization, like a teaching-guide to expose the fundamental ideas, and as a way of overcoming
those obstacles which the elites and the bureaucracy will put up against us, because they are
the ones who are taking advantage of our present situation, such as the native oligarchies who
are profiting in each country, and the imperialist countries which are also benefiting from our
present situation.

III.        OUR  ALLIANCES,  ITS  CONSEQUENCES  AND  THE  DEBT.

            I consider interesting to make known that the majority of the Latin American countries
are politically and economically linked to the United States and western world powers. This
political alliance that Latin America shares with the U. S. A. and western countries, does not
benefit us, but, on the contrary, it damages us. That is to say, we are their political and


economic allies just for being squeezed dry and weakened. That is why I have previously
stated that we are living within a different kind of Colonialism and Latin America is not yet independent. Basically, the struggle I wish to arouse with the initiative of this book, and to    which I invite you to participate, is the struggle towards achieving true independence through
the integration of Latin America.

            On the contrary, we have another case: the Soviet Union and the group of countries
of COMECON * through their negotiations with Cuba. This country normally buys products
with 5 or 6 years of favour, with no interests, and once this term has expired, is given 12 annual
installments to pay with no interests. In a renegotiation made by Cuba with the Soviet Union in
1972 concerning its external debt, it was given 14 years of favour, with no interest; and after
these 14 years the mortgage would be paid in 25 equal installments annually, with no interests. Furthermore, the Soviet Union and other countries of the COMECON have paid Cuba four or
six times the price of the world market for its sugar, during the years in which the international
price of this product has been low (both reports are taken from figures delivered by the Economic
Commission for Latin America).

            These examples show that the Soviet Union is paying a high price for its political influence
on Latin America. So I ask you:  What do we achieve or receive for being dependant on the western countries? Almost nothing, I think. It is an interesting question to bring to light and
to reflect upon. Moreover, Latin America helped strongly the western countries in the course
of World War I and II. During the latter, Chile delivered its cooper at a third of the market price:
and Bolivia did the same with its tin.


IV.        CONCLUSION

            This initiative in which I invite you all to participate, is to the best of my knowledge, full
of interesting ideas. If they can reach the great majority of people living in our continent, this
great movement of Latin American integration which I dream of, could be established; and we
would obtain, without doubt, a way out from underdevelopment, and eliminate moral and material
misery. The purpose of this lecture was to utilize well the capacity of the professors and intellec- tuals represented in this audience. Surely you have studied this subject much more that I have.
So if you agree with these proposals, let us come together and try to create this book or mani- festo with good solid groundwork, and make widely known the price we are paying for non-
integration.

            So, maybe, we could be lucky enough to see, some years hence, our Latin America
transformed into a GREAT NATION, and furthermore, to see eliminated the consequences of
the underdevelopment that is affecting us. The only true path to obtain our integration, political
liberation, and economic welfare; is by improving our moral standards, educational, cultural
and technological standards, which would give everyone justice, work and happiness.

            To conclude, I am grateful for your attention, and I am ready to answer any question you
may wish to ask. I am willing and eager to participate and collaborate openly with other people
interested in working for the attainment of Latin American integration, as well as the improvement
of the inhabitants’ welfare of the GREAT NATIVE LAND. Perhaps a day will come, not in the distant future, that Simon Bolivar’s dream will become a reality.


Encl.:      Author’s resume.

P. S.:       If you like these ideas, you can promote them freely.

___________________
*          CAME   (COMECON):   Council of Mutual Economic Aid.






AUTHOR’S   RESUME
                                                                  ___________________





            Dámaso García was born in Santiago (CHILE), in July 1941. He completed his
secondary studies at the National Institute. During the following eight years he was
devoted to business. He entered the Universidad de Chile in          1967 and after four and
a half years he graduated in Economic Science, with merit in Administration, by
unanimous distinction.

            Later he travelled through the five Continents, visiting various countries, to
familiarize himself with their socio-economic reality.

            Upon returning to Chile he began his participation in subjects of national public      interest, mainly to investigate and proclaim irregularities committed by the financial
systems; tax policies and administration of publicly owned enterprises.

            Within this context, he was elected Director of the Telephone Company of Chile
(Compañia de Teléfonos de Chile) on behalf of private shareholders, from 1979 to 1982.
In that year he resigned from his position, due to the great disappointment he suffered
as a consequence of negative responses given, to his initiatives, from representatives
of the government.

            From that date on, he has studied and analyzed the problem of Latin American
underdevelopment, and the price paid for the non-integration of the Continent.



                                                                Santiago  (CHILE),  1985.






                                                                       DAMASO  A.  GARCIA  G.
                                                                           Business  Engineer
                                                                     VICUÑA  MACKENNA  1681
                                                                       Fonos:  5567169 – 5569758
                                                                       S A N T I A G O  -  C H I L E



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