710 Consultation (4)/9–1747: Airgram

The Ambassador in the Soviet Union (Smith) to the Secretary of State

A–940. Red Fleet of September 11, “On Results of Inter-American Conference in Rio de Janeiro” by A. Osipov, states although everything was done to give appearance of real conference, end of meeting showed diplomats had assembled merely to sign treaty prepared in advance in Washington. US government attributed considerable importance to Conference. Department displayed furious activity before meeting and US press waged unrestrained war of nerves. Solidarity, as Americans understand it, signifies more or less subordination of national [Page 86] interests to those of Wall Street. However, attempts to stifle disagreements failed at Rio. Only decision was to appeal to Paraguayan parties to cease civil war. Main contradiction—between USA and Argentina—was apparent at Conference in struggle around issues only remotely connected with defence questions. USA insisted on two-thirds majority, Argentina on unanimity. Raising of question of discussion of economic problems was due to serious difficulties resulting from US domination and military penetration and colonial policy toward Latin America. Extremely favorable moment has arrived for further US economic expansion. Hence US reluctance to discuss economic issues. Militaristic nature of conference was apparent. Under pretext of defense Latin American states now openly at service of US capital. “Security Zone” traced at Conference virtually embraces half world. USA attaches great importance to clause calling for immediate consultation in event of attack, since USA is now turning its attention to Europe, Near and Far East.