MEXICO _ ~~ SILVER LINING IN SOME DARK CLOUDS .
‘Some interesting facts compiled ‘from various sources by the - Mexico City daily newspaper El Dia [January 26] show that Mexico is the only fairly bright spot in an. otherwise gloomy picture for Latin~= American capitalism,
According to a study made by the Cémara Nacional de la Industria de la Transformacién, "Latin America continues to lose capital at an accelerated rate, Foreign investors take out in profits and emolu~ ments more than they invest or re-invest, In 1962, businesses of the United States sent back home from their Latin-American branches more than $400, 900,000, New investments and re-investments, in return, _ were only 250, 000,000. If in addition, the low prices of the greater _ part of Latin-American export products are taken into consideration, a clear idea can be gained of the perspectives for the economies of . ‘the countries south of -the Rio Grande, . “Mexico is the exception, However, our net balance of direct foreign investments continues to be unfavorable. From 1959 to 1962, there. was an average annual loss of almost $200,000,000. But this - was compensated for by income from tourism, border business, a big increase in the trade balance and credits Prom international finencial bodies (not private),'
In another study, the Confederacién Nacional de Cdémaras de . Comercio calls attention to an alarming decrease in the rate.of growth in Latin America, From 1945850 the -annual rate of increase in national product, taking all the Latin-American countries together, was 7,5%,
although only 3 3.2% on a per capita basis. In 1962 these figures dropped ‘to 3.1% and 0.3% respectively. .
The study shows that Latin Americats share in world trade is de= clining. This. is ascribed in part to the "rigidity in composition" of its export products (monoculture, ete.).
: Profit possibilities in Mexico for foreign investors are still sufficiently attractive, however, to bring enthusiastic comment from. International Commerce, the weekly publication of the U.S. Department of Commerce. in Lts “Opinion U.S. investors should stay right on top of the situation, Among the reasons it presents for this is the improvement in political and economic stability in Mexico, the value of Mexico as a customer for U.S. products (purchases in the first seven months of 1963 amounted to $494,000,000), and the growing recog~ nition in Europe that Mexico offers potter business possibilities than any other country in Latin America, The latter "reason" shows the alertness of the Department of Commerce to the threat of rival capitalist cliques,
El Correo Econémico, citing the president of the U.S. Chamber of. Commerce, who visited Mexico last October, puts total U.S, investments in Mexico at around $1,000,000,000.
In 1964, El Correo Econémico forecasts, U.S, investments will be about $105, 000 000 of which $100,000,006 Will go into industry, $2, 500, 000 into mining and $2, 000, 000 into oil,
"This large private North American investment is due," says the magazine, "to the optimistic and heartening news published | abroad. conn cerning the brilliant perspectives of the Moxican economy ,' .
During 1964, North American industrialists thus plan to invest in Mexico "in plant’ and equipment in 1964 as much as 1961 and 1962 C Olt bined," The major. investment "will be in the automotive industry."