EXTERNAL POWERS IN THE LATIN AMERICAN ARENA

Latin American International Relations

Caribbean Basin as a Historic Arena for Fighting European Conflict:

Seventeen – Nineteenth Century

France loses and regains Haiti in the French and Indian WarFrench naval victor in West Indies paves the way for the independence of the United StatesEnglish navy critical in preventing re-colonization of Latin America

CARIBBEAN BASIN

Caribbean Basin & European Intervention: Twentieth Century

Turning Point: European military intervention in Caribbean Basin was British-German-Italian blockade of Venezuela in 1902-03 U.S. “lake” until the Cold War– Cuban missile crisis– Nicaragua’s Sandinista revolution

Becoming a United States Lake

1901 – Hay-Pauncefote Treaty allowed the U.S. to build and exclusively control an inter-oceanic canal (replaced Clayton-Bulwer Treaty of 1850). 1902-03 Great Britain dissolves its Caribbean fleet

Between the World Wars

Britain retains great economic influenceFrench influence large limited to cultural mattersGermany’s influence greatest where there are substantial numbers of German colonistsSignificant numbers of Spanish and Italian colonists in most capital cities

Immediate Aftermath of World War II

United States hegemony throughout the hemisphere is unprecedented– Soviet Union views LA states as vassals of

Washington

– Activist orientation in LA seen as critical for victory in the Cold War

Immediate Aftermath of World War II: Economic Dimension

United States economy untouched by war Europe is devastated – Political and moral authority undermined– Economic is in shambles and depends of assistance

from the United States– Focus is on reconstruction

United States attempts to win the “hearts” and “minds” of the Latin Americans with a massive foreign aid program – The Alliance for Progress

EUROPEAN INFLUENCE REVIVES IN THE 1970’S

– European takes up its traditional role as a extra-regional presence in Latin America

• Industrial plant has been rebuilt• Common market leads to economic growth• Immigrants with ties to Europe have a preference for their

country of origin – Vietnam war cools admiration for the United States – Latin Americans search for alternatives to

Washington

Great Britain in Latin America: Political

British decline after 1945 was greatest because its influence had been so greatArgentina: from “almost colony” to protagonist– Upper class tied to British market for agricultural

products– Peron nationalizes British investments– Decline capped by Malvinas (Falkland)War (1982)

Partial decline in Caribbean with withdrawal from Belize and Guyana

Great Britain in Latin America: Economic

14% of Latin American market on the eve of World War II5% by 1980, and continues at this levelFourth most important investor at present

France in Latin America: Slow to Regain Influence

Prior to World War II not a major trading partner but cultural influence remained strong– Upper classes in many countries spoke French

among themselves– Paris: the first choice for foreign travel

Since 1960’s – accounts for between 3%/4% of Latin America’s foreign tradeDe Gaulle tour in 1964 – little success

France in Latin America: Most Important Success in Military Sales

PeruBrazilArgentina

Japan in Latin America

Traditional goal of trade with the region – access to resourcesEve of World War II – accounted for 2% of Latin America’s trade with the rest of the worldJapanese absent in Latin America after its defeat in World War II

Japan in Latin America

Surpassed Britain as the region’s third largest trading partner in 1970 (7% total trade)One quarter of Japan’s total overseas investment is in Latin America (as opposed to 19% in Southeast Asia

Japan in Latin America: The Present

Brazil’s significant population of Japanese ancestry has led to increasing ties between the two countries Peru: Fujimori presidency Japan has begun to invest in Mexico in order to gain access to U.S. market through NAFTA

Germany in Latin America

Provided 18% of Latin America’s imports in 1938Since 1960’s Germany is Latin America’s second most important trading partnerWest Germany pursued the Hallstein Doctrine– Would break diplomatic relations if country recognized E.

Germany– Salvador Allende recognized E. Germany in 1971

Nazi immigrants in commerce and industrySocial Democrats and Christian Democrat political parties have sponsored self help projects in many Latin American countries

Spain in Latin America

Cultural influence from beginning of European presence Decline in influence– Independence– Spain “Sick man of

Europe”

Spain in Latin America

Entry into Common Market provided economic muscle to increase Madrid’s presence in Latin America Since 1985 growing economic presence– Banking– Telecommunications

Russia in Latin America

During Soviet years influence exerted through local communist political parties– Generation of the region’s communist party leaders

trained in Moscow– Assassination of Leon Trotsky in Mexico City– Subservience to Soviet Union undermined influence

of the local communist parties Greatest Soviet presence in Cuba– Cuban missile crisis– Window into the United States during the Cold War

In Conclusion

Non-Hemispheric powers have significant economic influence in Latin AmericaPolitical influence of non-hemispheric powers is less than their economic influenceInfluence of non-hemispheric power is greatest in South America Caribbean Basin has remained a U.S. “lake” since early in the twentieth century