EXTERNAL POWERS IN THE LATIN AMERICAN ARENA

1. EXTERNAL POWERS IN THE LATIN AMERICAN ARENA Latin American International Relations

2. Caribbean Basin as a Historic Arena for Fighting European Conflict: Seventeen – Nineteenth Century • France loses and regains Haiti in the French and Indian War • French naval victor in West Indies paves the way for the independence of the United States • English navy critical in preventing re-colonization of Latin America

3. CARIBBEAN BASIN

4. 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

5. 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

6. Between the World Wars • Britain retains great economic influence • French influence large limited to cultural matters • Germany’s influence greatest where there are substantial numbers of German colonists • Significant numbers of Spanish and Italian colonists in most capital cities

7. 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

8. 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

9. 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

10. Great Britain in Latin America: Political • British decline after 1945 was greatest because its influence had been so great • Argentina: 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

11. Great Britain in Latin America: Economic • 14% of Latin American market on the eve of World War II • 5% by 1980, and continues at this level • Fourth most important investor at present

12. 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 trade • De Gaulle tour in 1964 – little success

13. France in Latin America: Most Important Success in Military Sales • Peru • Brazil • Argentina

14. Japan in Latin America • Traditional goal of trade with the region – access to resources • Eve of World War II – accounted for 2% of Latin America’s trade with the rest of the world • Japanese absent in Latin America after its defeat in World War II

15. 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

16. 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

17. Germany in Latin America • Provided 18% of Latin America’s imports in 1938 • Since 1960’s Germany is Latin America’s second most important trading partner • West 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 industry • Social Democrats and Christian Democrat political parties have sponsored self help projects in many Latin American countries

18. Cultural influence from beginning of European presence Decline in influence Independence Spain “Sick man of Europe” Spain in Latin America

19. 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

20. 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

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