WW2 In Americas

Good Neighbor Policy:

Hoover: Tried to improve relations w/ latin america but failed due to great depression.

  •     Smoot-Hawley Tariff Act (1930): Creates series of tariffs on goods that are imported from outside of US. -» Damaged relations w/ latin America

FDR: elected in 1932.

  • During Inagural Address outlines “GOOD NEIGHBOR POLICY”:

  • Definition: Won’t be involved in internal affairs of latin american nations. This policy aimed to improve diplomatic relations with Latin America and promote mutual respect among nations.

  • US Withdraws from Hait and Nicaragua and got rid of Platt Amendment

    • Done to show commitment to good neighbor policy.

Buenos Aires Conference (1936): Countries meet and agree that force won’t be used to protect property or citizens abroad.

  •    Businesses have to obey local laws

  • Controversial in U.S domestically because businesses felt threatened.

Export Import Bank: Established to facilitate commercial loads to companies that imported goods from the US.

Reciprocal Trade Agreement (1934): Allows government to negotiate bilateral agreements to reduce tariffs. Acknowledged the damage caused by the Smoot-Hawley Tariff Act.

By 1938: US was main trading partner for nations in the Americas (Except Argentina, who saw UK/Europe as future).

Unintended Consequences:

  • Binded L.A nations to U.S economy → major complications post ww2

  • Oil was point of conflict: Bolivia confiscated properties of standard oil in 1937 b/c they said they were committing illegal actions by selling oil to Argentina.

    • Export Import Bank denied Bolivia loans

    • After 1940, US was willing to conede due to war → sells standard oil to Bolivia for 1.5 mil

1938: Mexico takes control of US oil companies in their land.

  • Secretary of state demanded compensation and threatened to intervene, but FDR backs down and doesn’t intervene

  • Mexico is refused loans, Us terminated silver contracts, Mexico boycotts U.S

  • Mexico reaches agreement with axis and then causes U.S to make agreement with Mexico b/c war

1939-41: Policy increased in terms of military assistance.

Overall: L.A loved it. America: Mixed views. Some were worried about amount of troops abroad, while others like how it can make us dominate their economies.