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for Brazi l to provide the core ves–
sel for Argentina's next nuclear
reactor. Tbe intent of the. agree–
ment was not only technological.
It
was designed to show that
Argentina and Brazil, which are
both developing nuclear power, do
not intend to become rivals in
nuclear weaponry.
Secondly, t he two nation s
agreed to cooperate in the con–
struction of their national power
projects on the Paraná and to
integrate their resul tant energy
networks.
These and a string of other
agreements on expanded trade
and mutual investments, accord–
ing to a joint statement, provide
the groundwork for the "integra–
tion of the two economies."
The new agreements represent
what one Argentine official called
"a triumph of the obvious." The
agricultura! sectors of the two
countries are largely complemen–
tary rather than competitive. And
the new pact will open up oppor–
tunities for expanded industria l
trade between them.
Brazilian industry is eager to
sell to Argentina's sophisticated
market. And Argentina, despite
sorne misgivings over Brazil 's size
( 123 mi Ilion people as opposed to
27 million) and aggressive indus–
try, knows that it also needs
access to the vast Brazi lian con–
sumer society to relieve its indus–
trial stagnation.
Brazil 's economic Achilles heel
is its grave dependency upon for–
eign energy resources.
lt
imports
84 percent of its oil, most of it
from the Middle East, Iraq being
the biggest supplier. In an at–
tempt to redress this dangerous
imbalance, the South American
giant is being forced to come out
of its semi-isolation within Latín
Ame rica. That condition was
largely the result of its distinctive
historical, cultural and linguistic
(Portuguese) roots, which, com–
bined, have kept it at a distance
from its Spanish-speaking neigh–
bors.
Brazi l now intends to increase
oil imports from the two major
Latín American exporters, Vene–
zuela and Mexico--the latter as a
result of an official summertime
24
visit to Brazil by Mexico's Presi–
dent José Lopez Portillo. Plans
are also far advanced to have
supplies of newly discovered Ar–
gentine natural gas shipped to
Brazil's Sao Paulo industrial com–
plex.
Call For Latln "Common
Market "
The wide-ranging implications of
the new power-shaping alliance
do not stop with the two countries
themselves. The joint statement
issued by Presidents Figueiredo
and Videla called for the creation
of a "fully effective Latín Ameri–
can common market."
Ever since the early 1960s,
efforts to form a common market
for the Western hemisphere fre–
quently have met with resistance
from Latín American countries,
including Argentina and Brazil.
But now, events are moving swift–
ly in the direction of economic
unity.
Taking their cue from the
Argentine-Brazil breakthrough,
11 Latín American countries
founded, on Aug . 12, a trade
organization aimed at turning the
region into a common market.
The new body is the Latín Amer–
ican Integration Association (AL–
ADI in the Spanish acronym). 1t
is designed to encourage and reg–
ula te trade betwee n member
countries and promote economic
integration and cooperation.
The foreign ministers of the 11
countries- all the Spanish-speak–
ing nations of South America,
plus Mexico and Brazil-signed
the foundation treaty ata ceremo–
ny in Montevideo, Uruguay .
Member governments sti ll have
to ratify the treaty.
ALADI replaces the unsuc–
cessful Latín American Free
Trade Associat ion (LAFTA),
founded in
1961
with similar
aims. ALADI has three catego–
ries of members: less developed–
Bolivia, Ecuador and Paraguay;
more developed - Argentina,
Mexico and Brazil ; and countries
at an intermediate stage-Colom–
bia, Chile, Peru, Uruguay and
Venezuela.
The new framework cuts across
ideological lines also, g rouping
together democracies with the
several varieties of mi litary gov–
ernments now in power in the
Latín American world.
Such talk of South American
integration is not new. But this
time, there is a certain ring of
determination about it. Says Wi l–
liam Giandoni, the Copley News
Service Latín American writer:
"Tbere is new talk of a 'United
S tates of South America' ....
Clear ly Figueiredo is thinking in
terms of eventual continental in–
tegration and , what is more, Gen–
eral Videla and many of the far–
sighted men around him appear
t o have a s imilar object in
mind ."
Venezuela·Mexlco Link
The new common front bei ng
displayed between Brazil and Ar–
gentina is not the only example of
hemispheric sol idarity on key
issues.
The two Latín American " pet–
ropowers," Venezuela and Mexi–
co, are developing a new joint
program to provide, on a 50-50
basis, secure oil supplies to the
countries of Central America and
the Caribbean regimes. Because
of the high Organization of Pe–
trole um Exporting Countries
(OPEC) prices (Venezuela is an
OPEC member; Mexico is not,
but pegs its price in the same
latitude) , the two . petropowers
will finance 30 percent of their
joint supplies by means of long–
term, low-interest loans.
Both Venezuela and Mexico
are deeply concerned about the
política! chaos now rife in the
countries of Central America.
They hope their program will
increase stability in the region.
A Venezuelan source also told
me of another significant fact of
the Venezuela-Mexico joint proj–
ect:
It
is the first example of
south-south cooperation in Latín
America- as opposed to north–
south, where one party has been
English-speaking North America.
There is a great deal of national
pride wrapped up in this project.
Concern Over U.S. Decline
The new political assertiveness of
the Latin American countries
The
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