LATIN AMERICA: Fascism in the West

While delegates of the 21 American Republics met in Havana last week to face the transoceanic threat of fascism, the struggle of democracy v. fascism was already making history in the Western Hemisphere. Bombs, of the firework variety, were set off in the streets of Santiago, Chile by the Popular Socialist Vanguard —former Chilean Nacista (Nazi) Party. At the same time members strewed the town with pamphlets, attacking tough little pockmarked President Pedro Aguirre Cerda for pardoning the carabineros who shot down 62 Nazi students in the abortive 1938 revolt.

Aguirre’s shaky Popular Front Government, weakened by dissensions among its Radical, Socialist and Communist members, retaliated by raiding extreme Rightist parties’ headquarters. In offices of the openly fascist Nacionalistas, the Government-supporting press reported police had discovered plans of a secret system of revolutionary cells and papers describing a uniformed Nacionalista militia, drilled by onetime German Army Officer Brigadier Wiegold. The alarmed Government promptly issued a declaration dissolving “all apparently political organizations” formed by Rightists.

On top of this Spanish Dictator Francisco Franco broke off diplomatic relations with Chile. The Spanish Foreign Ministry called Chile’s Popular Front Government “anarchical” and declared that on June 17 “in the most central square in Chile . . . orators had the vileness grievously to insult Spain and its glorious Caudillo in a speech broadcast by the official radio and at which were present the President of the Republic and several Ministers.”

Back of this lay an old irritation, the fact that ever since the Loyalist Government collapsed in Spain, Chile’s Embassy in Madrid has given sanctuary to 13 Spanish Loyalists and refused to surrender them. A counter irritant was that poverty-stricken Franco has refused to pay for 100,000,000 pesos ($3,500,000) worth of Chilean nitrate and iodine.

Across the towering Andes, in Brazil the struggle between fascism and democracy was just as keen but less violent. The forces of democracy were represented by the U. S. S. O’Brien, U. S. destroyer No. 415, which put into the big coffee port of Santos on a good-will visit three weeks ago. Democracy won that round, not entirely to the pleasure of the Brazilians. Finding the illegal bicho lottery not much different from Harlem’s numbers game, the bluejackets hopefully plunked down their nickels on No. 415. As luck would have it No. 0415 turned up in the daily State-licensed paratodos (people’s) lottery on which the undercover bicho is based. Collecting odds of about 6,000-to-1, the sailors carried off approximately $25,000 from the local bankers.

In other respects fascism appeared to have the upper hand. Reliable reports indicated that German munitions are now being shipped secretly to Brazil via Italy and Spain. But the battle for peaceful trade was even more critical. A number of Yankee exporters who, after the war began, rushed to get into the South American trade, failed to take the precaution of hiring Brazilian agents with references from U. S. firms. As a result many of them hired Nazi undercover agents, who quickly reported to headquarters the prices quoted by the U. S. firms so that Germans could underbid.

Last week Nazi agents not only offered goods under prices quoted by U. S. firms, but promised forfeits of from 10% to 40% on the purchase price if the goods were not delivered by October or November. Though not payable in cash, the forfeits would be settled by establishing Reichsmark credits applicable on purchases from the Reich. Meanwhile, Nazi trade efforts were expedited by batches of German propaganda material, dyes and machine parts sent by international parcel post, via Russia and Japan and in many cases delivered by U. S. ships.