The Eisenhower Report

The most important task for the U.S. in Latin America is to "strengthen our economic relations." This is the main conclusion reached by Milton Eisenhower, president of Pennsylvania State University and his brother Ike's favorite counselor, as a result of his five-week fact-finding tour of South America. His report, made public this week by the White House, called for adopting stable and consistent trade policies, buying commodities for the strategic stockpile to support prices, making substantial public and private capital loans, expanding Point Four help, considering the revision of tax laws to encourage U.S. investment overseas and making grants of surplus foods in times of emergency.

Challenge & Response. In no country was the report awaited more eagerly than in Argentina, which had used Milton Eisenhower's visit as the occasion to launch a new policy of friendliness toward the U.S. Buenos Aires was at first disappointed that the report did not directly mention Argentina's changed attitude. But Argentines could take consolation in the fact that U.S. business was now showing marked interest in economic cooperation, and that representatives of blue-chip U.S. firms have been flocking into Buenos Aires of late to look over prospects for capital investment.

Some of the U.S. representatives, not quite convinced that Peron really means what he says about welcoming U.S. capital, are still waiting a bit longer before finally committing themselves. Others, hoping for special arrangements giving them more favorable annual profit-remittance rates than the recently enacted 8% limit, are so far hesitant to close deals. But some have already struck their bargains. One major chemical firm has signed an agreement to put from $20 to $30 million into Argentine mining and chemical enterprises. Standard Railway Equipment Manufacturing Co. has signed with an Argentine firm to put up a $20 million factory for making rolling stock.

Steel & Oil. Backed by U.S. banks, such firms as Caterpillar, International Harvester, Westinghouse, John Deere and Armco are discussing plans to put money into Argentine enterprises. Armco, Westinghouse, and McKee of Cleveland want to finish the $140 million steel mill the Argentines started at San Nicolas near Rosario. With the enthusiastic blessing of Peron, who now has to spend $500,000 a day of Argentina's dollar funds for foreign oil, representatives of U.S. oil companies have been discussing the future development of the country's underground resources. Argentine sources predict that if the oilmen decide to bring in their rigs, upwards of $100 million in new petroleum investment will flow at once from the U.S.

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