for the United States not only by increasing the sale of our products but also in the availability of materials for the use of our industry. The health and sanitation program is designed to aid in improving the basic economy of the countries in which it is operating. Therefore it is naturally to be expected that it will result in increased commercial interchange between the United States and the Latin-American countries.

UNITED STATES EXTORTS OF MEDICINES, MEDICAL AND SANITATION SUPPLIES OF

17 LATIN-AMERICAN REPUBLICS

This chart shows the total value of exports of medicines, medical and sanitary supplies from the United States, in millions of dollars (U. S.) for each of the years 1937 through 1946 in a total of 17 Latin-American Republics. The countries for which figures are included are Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Paraguay, Peru, Uruguay, and Venezuela. The export figures are for such items as medicinal and pharmaceutical preparations, X-ray apparatus, sterilizers, surgical and medical instruments and appliances, and other hospital and druggists' supplies.

The value of these United States exports has increased from 7 million dollars in 1937 to over 61 million dollars in 1946. This ninefold increase in medical and sanitation supplies should be compared with an increase of less than 4 times as much for the total value of trade between Latin America and the United States. The total United States exports increased from about a half billion in 1937 to about two billions in 1946.

The increase in exports of drugs and pharmaceuticals can be partially explained by the fact that preferred European markets were closed and new prod ucts, such as vitamins, sulfa drugs, and penicillin were in great new demand. Whereas the purchases made for the Cooperative Health Services for 1942-45 amounted to less than 4 million dollars, it is believed that the effect of this program is reflected in the tremendous increase in the sale of United States health supplies in the 17 countries where the program has operated for this period.

IMPORTS OF MEDICINES & PHARMACEUTICALS

BY SIX LATIN-AMERICAN REPUBLICS

IMPORTS OF MEDICINES AND PHARMACEUTICALS BY 6 LATIN-AMERICAN REPUBLICS

In each of the 6 Latin-American countries listed, imports of medicines and pharmaceuticals from the United States were only a small proportion of the total in 1938. For all 6 countries the value of these imports from the United States was about 3 million dollars out of a total of 17 million dollars in that year. In 1945 the value of medicinal and pharmaceutical preparations from the United States had increased to 30 million and in 1946 to 43 million in these 6 countries. In every case, the value of imports from the United States in 1946 was far greater than the value of the total imports of medicines and pharmaceuticals in 1938. In 1946, Brazil's imports of these items had multiplied 20 times over 1938; Mexico's, 15 times; and Chile's, 30 times. A vigorous cooperative health center and hospital program demonstrating United States methods and materials has been operating in each of these countries since 1942.

Unquestionably, other factors, such as the lag in European production, influence these figures. Nevertheless, the fact that all of these countries are now importing from the United States alone twice and, in some cases, three and four times the previous total, points toward the additional stimulation brought about by the cooperative health and sanitation program.

Imports by six Latin-American republics of medicinal and pharmaceutical preparations

Country

Total

[In thousands of United States dollarsl

imports Imports of medicinal and pharmaceutical preparations from all sources from the United States in year

of medicinal

and pharmaceu-
tical prepara-
tions in
year
1938

1938

1945

1946

1

1

Total exports from the United States to 172 Latin-American Repub-
lics of medicines, medical and sanitation supplies for period from
1937 to 1941, inclusive (thousands of United States dollars).
Total exports, as above, but for period from 1942 to 1946, inclusive
(thousands of United States dollars).
Expenditures by the "Servicios" and IIAA during program years
(roughly 1942 to 1946, inclusive) for hospital, health center, and
laboratory equipment, furniture and fixtures, drugs, medical supplies
and sanitation chemicals (same 17 Latin-American countries)__
1 U. S. Department of Commerce classifications:

Surgical and medical instruments.
Surgical appliances.

X-ray apparatus and parts, except tubes.
Therapeutic apparatus and parts.

Insecticides, etc. (nonagricultural).

Germicides, disinfectants, etc.

Sterilizers.

50, 967. 4

184,380. 0

3.603.0

9158

2 Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Paraguay, Peru, Uruguay, and Venezuela.

Source of figures on exports from 1937 to 1946: U. S. Department of Commerce; source of figures on expendi tures of "Servicios" and IIAA: Reports from chiefs of party of IIAA.

JULY 1, 1947.

Memorandum.

To: Col. Arthur R. Harris
From: Willfred Mauck

Subject: Commercial Benefits of Cooperative Educational Programs.

1. CURRENT BENEFITS

The work of the cooperative educational programs in Latin America in some cases requires a direct supply of materials ordered from United States sources and in other cases is leading to orders for such materials as the programs develop. 1. The elementary schools and teacher-training institutions with which we are working have been hampered through their history by the paucity of instructional materials used in the classroom, such as textbooks, blackboards, chalk, and other basic supplies. As the necessity for an increased use of instructional materials is brought home to Latin-American educators, orders for such supplies are beginning to come through to the United States. Some of them are supplied directly by the Foundation and others are being ordered by the national authorities. This type of commercial orders from the United States will increase as the educational reforms brought about by the cooperative educational programs develop to their full scale.

2. In connection with our work with vocational schools, especially in Panama, Peru, Bolivia, Brazil, and Paraguay, the programs have demonstrated the urgency of reequipment of most of the vocational schools in the countries concerned. At the present time in most of the schools the existing equipment is not only inadequate as to quantity but is antiquated and often completely worn out. The reequipment therefore requires a very large order of new and up-to-date machin

ery.

The vocational education specialist of the Foundation in a recent trip to a number of the vocational schools in Brazil established that such equipinent as now exists there is almost all of European manufactory. (He estimates that not more than 5 percent comes from the United States.) The work in vocational schools, however, is now being carried on in collaboration with United States technicians, and the educational authorities in the Latin-American countries expect to reequip their schools chiefly with American machinery. In the case of Peru, a mission is now in this country negotiating for the purchase of some $350,000 to $460,000 worth of industrial equipment for the schools. This is considered to be only the first of a series of such purchases. The Brazilian authorities are planning as a first step a purchase of $500,000 worth of such equipment for schools in that Republic. The Brazilian agricultural authorities are likewise considering, also as a first step, the purchase of $750,000 worth of agricultural equipment in the United States. Construction materials and industrial equipment are also being purchased by Paraguay and by Panama. The plans in Bolivia have not yet developed fully, but our vocational man there indicates that fairly sizable order for American equipment may be expected from that country, also in the near future.

II. LONG-RANGE BENEFITS-DIRECT

The habit which is being built up in Latin America of looking toward the United States rather than toward Europe for educational supplies and industrial equipment for the schools may be expected to continue, especially if the work can be followed up by United States technicians and educators. In addition, the teachers in the elementary and secondary schools and the instructors now being trained in the vocational schools and agricultural schools in the use of American equipment will continue to look to such American equipment for future orders, not only as far as the schools are concerned but for the industrial and agricultural work which would be carried on by school graduates after they have left the schools. There is broad scope for such development. Our field party in Brazil, for instance, is conducting in cooperation with the Brazilian authorities, a survey of the industrial equipment and needs in all the large cities of Brazil and making recommendations as to improvement or replacement. It may reasonably be expected that important orders should be coming to United States commercial and industrial concerns for such equipment as a direct but long-range result of the work of the field parties of the Foundation.