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Spain: Return of the Bullion Billion

3 minute read
TIME

For the first time in 75 years of Western Hemisphere conferences, a Spanish delegate rose to speak. Spain’s Ambassador to Brazil, Jaime Alba, told the twelve-day-old Organization of American States meeting in Rio: “We have always fraternally shared your sorrows and your hopes.” Then he added: “The Spanish government has particular interest in making known to this conference its intention to make available over the next ten years credits of up to $1 billion.” The announcement caused a sensation easily equaling the response to Dean Rusk’s statement the week before that the U.S. would continue its Alliance for Progress contributions now running at a rate of $650 million a year. Alba got thunderous applause, and the delegates passed a “vote of appreciation” by a margin of 18 to 0, with only Mexico abstaining.

Brutal Comeuppance. The offer and its reception marked a significant turning point in the long and hitherto stormy history of Spain’s relations with her former colonies. Between 1503 and 1660 Spanish galleons shipped about $1 billion worth of gold and silver bullion from the New World, while conquistadors slaughtered or enslaved thousands of Indians. Spain’s comeuppance was just as brutal; in 15 short years under leaders like Simón Bolivar, José de San Martin and Bernardo O’Higgins, the American colonies threw off Spanish dominance and established their independence. Unlike Britain, Spain found no new worlds to conquer. The final humiliating ejection from Cuba, Puerto Rico and the Philippines by the U.S. in 1898 sank Spain into doldrums of defeatism and economic stagnation that lasted for a generation.

The Spanish Civil War did not improve relations with Latin America since many exiled Republicans found refuge there. Only in the past decade have bitter memories faded. Latin Americans have once more become aware of what they share with their mother country: literature, music, food, customs, religion, sports from bullfighting to fútbol and, since Spain is only now industrializing, many of the same economic problems. Says a Spanish consulting engineer with many contracts in Latin America: “There’s no doubt the Spanish businessman in South America is being looked at in an entirely new light. We’ve had to come up with solutions with only limited means, so we’re close to similar local problems. And, after all, we speak the same language.”

Swelling Demand. Until now, Spain’s attempts to rebuild its burned bridges have been largely cultural: Madrid assists 55 Hispanic Cultural Institutes and 29 other centers overseas, provides grants for 1,500 of the 15,500 Latin Americans now studying in Spain. Last March Spain agreed to provide $20 million for Latin American projects financed through the Inter-American Development Bank. But loans under the new credit program may be arranged directly with individual countries since they will be used to pay for the purchase of Spanish trucks, industrial machinery and other manufactures. Owing to a swelling demand for imports, Spain is heading for a $200 million balance-of-payments deficit in 1965 and must find export markets for her growing factory output. Explains Láureano López Rodó, 44, Franco’s top economic planner: “Credits are a means of selling, and since our fundamental problem now is our export problem, I believe we should try to put ourselves in a competitive position.”

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