FDR’s Good Neighbor Policy
IB History of the Americas
Background: Big Stick
Diplomacy, Dollar Diplomacy,
Moral Diplomacy
The U.S. Becomes a World Power
• At the turn of the 20th century, the U.S.
emerged as a world power:
– The U.S. asserted its dominance in SpanishAmerican War (1898)
– America built the 3rd largest navy in the world
– Annexed Hawaii, the Philippines, Puerto Rico,
many Pacific islands
– Asserted economic control over almost all of
Latin America
The U.S. Becomes a World
Power
“Big Stick Diplomacy”
“Moral Diplomacy”
“Dollar Diplomacy”
• The U.S. developed a new, aggressive
foreign policy under T. Roosevelt, Taft, &
Wilson:
• Their policies differed, but all revealed a
desire to increase American wealth,
military power, & stature in the world,
especially Latin America
American Foreign Acquisitions, 1917
Theodore Roosevelt’s
“Big Stick Diplomacy”
TR’s “Big Stick Diplomacy”
• Roosevelt
hoped
to expand
TR & Sec
of State
Elihuupon
Root
America’s
after the
appliednew,
“bigworld
stick”stature
diplomacy
Spanish-American
War:
most effectively in
Latin America
– TR believed in the superiority of American
“Speak
softly
& &carry
big
stick,these
Protestant
culture
hopeda to
spread
you will go far”
values
– To—TR’s
increasefavorite
AmericanAfrican
economic
& political
proverb
stature in the world, the U.S. needed to be
militarily strong & ready to fight if needed
TR’s “Big Stick Diplomacy”
$10policy
million
for thewas
canal
• The
TR’sU.S.
top paid
foreign
objective
to
& leased
it for $250,000
perused
yearhis “big
build
the Panama
Canal & he
stick” to get it:
– When the Colombians rejected an offer to
lease land in Panama to build a canal, TR
supported a revolt for Panama independence
– In 1903, Panama (with the U.S. navy) became
a nation & signed a lease agreement for a
canal
A Panama Canal would facilitate world trade
& allow the U.S. to quickly merge its Atlantic
& Pacific naval fleets in an emergency
The Panama Canal was an engineering
marvel, but one of the most important reasons
for its completion was the scientific
elimination of malaria-causing mosquitoes
“The inevitable effect of our building the
When
in to
1914,
the canal
gave the
Canalopened
must be
require
us to police
the USA a huge
economic
advantage in
surrounding
premises”
the Western—Sec
Hemisphere
of State, Elihu Root
The
Roosevelt
Corollary
warned
nations to
stay
•TR
One
of the European
greatest concerns
was
theout
AND
warned Latin
American
nations
to be
intervention
of European
nations
in Latin
more responsible or the U.S. would
America:
intervene
– In 1903, Germany
& England threatened to
invade Venezuela to recoup unpaid debts
– TR issued Roosevelt Corollary to the Monroe
Doctrine in 1904 claiming special “police
powers” in the Western Hemisphere
The Roosevelt Corollary to the
Monroe Doctrine, 1904
Additionally, the Lodge Corollary in 1912
refused to allow foreign companies to buy ports
or establish military sites in Latin America
The Roosevelt Corollary was used to justify
Attempts
to
maintain
order
in
Latin
America
American armed intervention in the
led Dominican
to pro-American
regimes
that
relied
on
Republic,
Cuba,
Haiti,
dictatorial rule over its citizens
Nicaragua, & Mexico
Big Stick Diplomacy
• Foreign policy under TR extended to Asia
as well as Latin America:
– TR negotiated an end to the Russo-Japanese
War in 1905 from Portsmouth, NH
– Gentlemen’s Agreement in 1907 limited
Japanese immigration
– The Root-Takahira Agreement in 1908
protected America’s Open Door Policy in
China
“Constable of the World”
William Howard Taft’s
“Dollar Diplomacy”
Taft and Dollar Diplomacy
• President Taft took over after TR &
continued an aggressive foreign policy,
called “Dollar Diplomacy”
– Use U.S. wealth rather than military strength
in foreign policy
– In Latin America, U.S. banks assumed debts
to Europe
– Taft’s attempts to build railroads in China
alienated Japan & ended the Open Door
Policy
Woodrow Wilson’s
“Moral Diplomacy”
Wilson
apologized
Moral
Diplomacy
Wilson
appointed
pacifist in domestic policy
• Wilson
was well-versed
to
Colombia
for
William
Jennings
Bryan
before
becoming
president,
but
not foreign
U.S.
support
of
the
as hispolicy
Secretary of State Panamanian revolt
“It would be the irony of fate if my
• He
believed that had
Moral
administration
toDiplomacy
deal chieflycould
with
bring peace &foreign
democracy
to the world
affairs”
without militarism & war—Wilson in 1912
• Wilson talked of “human rights” in Latin
America, but defended the Monroe
Doctrine & intervened more than Roosevelt
or Taft
When
Huerta
Wilson
used
minor
Wilson
In
1913,
refused
Mexican
to refused,
recognize
president
Huerta
Madero
&Mexico
demanded
was as
Moral
diplomacy
seemed
to
fail
in
Moral
Diplomacy
in
Mexico
incidents
(arrest
of
some
U.S.
sailors
in
Tampico)
thatoverthrown
he
step
down
by
dictator
so
legitimate
Victoriano
elections
Huerta
could
war seemed eminent but WW I forced
to send
the be
military
to occupy
Veracruz
force
held
for
a new
Americans
to change
theirpresident
focus to &
Europe
Huerta to flee to Europe
Mexican
rebel
Pancho
Villa
tried
to
provoke
war
Wilson
responded
by
sending
the
military
to
withfind
the U.S.
by
raiding
across
the
border
for
Villa
(who
were
unable
to
do
so)
supporting his rival Carranza
Conclusions
• After the Spanish-American War, the USA
assumed an aggressive foreign policy:
Washington’s
of Neutrality
(1793)
– In orderProclamation
to maintain order,
forestall foreign
& Farewell
Address
intervention,
& protect
U.S.(1796)
economic interests
– By theof
outbreak
WW I, the&USA
had seen
Annexation
Alaska,of Hawaii,
Philippines;
its foreign
policy Policy
evolve from
strict neutrality,
Open Door
in China
to imperialist, to police officer
“Big Stick,” “Dollar,” & “Moral” diplomacies
Our “Sphere of Influence”
Moral Diplomacy
•
•
•
•
•
Involvement in Haiti
Mexican Revolution
Involvement in Dominican Republic
Virgin Islands
Reasons US entered WWI
– Make world safe for democracy
– War to end all wars
•
•
•
•
Jones Act, 1917 in Puerto Rico
Jones Act, 1916 conditions for Philippines independence
Repeal Panama Canal Tolls Act of 1912
No longer offered support to American investors
overseas
FDR’s “Good Neighbor”
Policy
Important to have all
nations in the Western
Hemisphere united in
lieu of foreign
aggressions.
FDR  The good neighbor
respects himself and
the rights of others.
Policy of non-intervention
and cooperation.
The Good Neighbor Policy
U.S.-Latin America Relations During
the War Years
The Good Neighbor Policy
– "In the field of world policy, I dedicate this nation to
the policy of the good neighbor, the neighbor who
resolutely respects himself and, because he does so,
respects the rights of others."
~FDR, Second Inaugural Address
– The Good Neighbor Policy began with Pres. Hoover
in 1928 in attempt to repair the damaged relations
with L.A. during the Coolidge administration
– FDR promised to end direct US military intervention in
the Western Hemisphere, and promised Latin
American states that they would enjoy a high level of
autonomy.
– What where the goals of the GNP? Did it succeed?
Case Study: Brazil
Case Study: Brazil
• Brazil was one of Germany’s major trade partners – a
recipient of massive investment in returns for exports of
coffee and beef.
• From 1939, the USA sought to divert Brazil away from its
relationship with Germany. One way in which it could
achieve this was through offers of massive investment,
aid and loans to support President Vargas in his plans
to diversify the Brazilian economy
• In March 1939 Roosevelt extended a package of credit
and loans totalling $115 million to fund the Volta
Redonda steel mill.
• In the spring of 1940, Brazilian foreign minister Oswaldo
Aranha spent two months in Washington, soon after
Brazil received a $19 million loan and $50 million in gold
from the U.S.
Case Study: Brazil
• One of the main aims of the U.S. economic
policy was to turn the Brazilian foreign ministry
away from Germany and towards alliance with
the USA.
• Vargas maintained neutrality until 1941, when
an agreement was formed between Brazil and
US. The U.S. would finance Brazilian iron and
steel extraction, in exchange for military bases in
Natal, in the northeast.
• Vargas signed the Washington Accords in
1942 to supply natural rubber from the Amazon
to the Allies,
Case Study: Brazil
• In 1944 the USA gave
Brazil $154 million of
Lend-Lease funding to
modernise its armed
forces, especially its
navy.
• 1944 the Brazilian
Expeditionary Force
(BEF) was sent to Italy to
fight with the US army.
Case Study: Brazil
• Summary: The USA
used its wealth, and its
willingness to invest in
the diversification of the
Brazilian economy, to
turn Getulio Vargas away
from the alliance with
Germany.
Case Study: Mexico
Case Study: Mexico
• Mexico had received substantial US investment in the
development of its oil industry, there was increasing
resentment at the low wages paid by American oil
companies. Generally, US was unpopular and resented
in Mexico.
• In March 1938 the Mexican government under Lazaro
Cárdenas threatened to confiscate (expropriate) the
assets and equipment of the US oil companies.
• Standard Oil demanded massive compensation, not just
for the value of the plant but also for the loss of future
profits.
Case Study: Mexico
• Roosevelt sent his long-time assistant Josephus Daniels
to negotiate with the Mexicans. Daniels went against the
wishes of the oil companies by accepting a much lower
offer of compensation.
• By 1938, FDR was aware of the prospects of war, and
he was determined to maintain good relations with the
Mexican government, which was a major supplier of oil
and silver. (let us not forget an 1,800 mile border)
• In 1941 FDR urges Standard Oil to accept $24 million in
compensation from the Cárdenas government – only 5%
of what Standard Oil had demanded.
• FDR conceded to Mexico because he feared that Mexico
might declare open support for Germany.
Case Study: Mexico
• US envoy, Henry Wallace, visited Mexico in 1940 to
persuade Mexico to allow the US to build naval and air
bases on its coastline for operations against U-Boats,
Mexico refused to surrender its neutrality.
• Mexico received $40 million in loans and credits of $300
million, as well as low-cost lend-lease equipment.
• The policy of neutrality was very popular in Mexico, and
it was only the sinking of two Mexican tankers by u-boats
that prompted Mexico to declare war on Germany in May
1942.
• The declaration was very unpopular in Mexico, and
many Mexicans believed that their government had sold
out to the US. The Mexicans sent one squadron of
aircraft to fight the Japanese in the Pacific Theater
Case Study: Mexico
• Summary: The US
managed to maintain
“neighbourly” relations
with Mexico by not using
its clout to pressure the
Mexican government to
meet the demands of
Standard Oil Co.
• Mexico was not an
enthusiastic ally but it
also didn’t side with
Germany
Case Study: Argentina
Case Study: Argentina
• Argentina was the second most populous
state in Latin America and FDR
recognised its importance. Also its close
ties to Germany.
• Relations with Argentina had been difficult
because of US restrictions on beef imports
due to “sanitary regulations.” (This was
really a form of protectionism.) In 1935
Roosevelt introduced a Bill to Congress
that would allow beef imports from
Argentina, but this was blocked due to
opposition from the US Senate.
Case Study: Argentina
• In 1941 relations between
Argentina and the USA
deteriorated. Argentina
expressed support for
Germany, which resulted
in a breakdown of trade
with the US.
• President Ramirez
considered declaring war
against Germany, and
was overthrown by Gen.
Edelmiro Farrell and his
defence minister Gen.
Juan Peron.
Case Study: Argentina
• In 1943, as a punitive measure, the US did not invite
Argentina to attend an economic and agricultural
conference in the US.
• In 1944 the US broke all diplomatic relations with
Argentina in an attempt to pressure a declaration of war
on Germany.
• On 9 April 1945 Argentina finally agreed to declare war
on Germany (29 days before the end of the war in
Europe) in return for US recognition of the government of
Gen. Farrell.
Case Study: Summation
•
The USA’s attempt to build up a coalition of Latin
American states in support of the war against
Germany was mostly a failure. This was due to two
main factors
1)
2)
–
–
–
Latin American distrust of the USA’s economic imperialism
The strong cultural links between many Latin American states
and Germany.
Vargas used the US to develop the Brazilian economy.
Strengthening itself against powerful South America
states like Argentina.
Cárdenas rallied the Mexican people by standing up to
US business and government over its oil resources
Farrell maintained a pro-Germany policy until the last
days of the war
U.S. Political Criticism of Good
Neighbor Policy
• “We are not winning the friendly collaboration of the
peoples of Latin America. We are trying to buy it … We
are hated… for upsetting their economy.” ~Senator Hugh
Butler, 1943 (R. Nebraska)
• The main criticism of FDR’s strategy was that it cost
hundreds of millions of dollars that could have been
spent in the US, or on developing the support of neutral
states in Europe, such as Sweden and Turkey.
• Also, as the US controlled the Western Atlantic (from
Autumn 1943), some argued that the support from Latin
American states was irrelevant.
• Finally, politicians argued that the loans and credits to
Latin America supported corrupt and un-democratic
governments and that this price was too high for
diplomatic support in the war that would not make any
real difference. (ex. Raphael Trujillo, Dominican Rep.)
Latin American Reaction to the Good
Neighbor Policy
• The ruling elites of Latin America were
able to prosper from US loans, there is
little evidence to show that the Good
Neighbor Policy did anything to improve
popular opinion of America.
• In fact, many politicians and people in
Latin America regarded US aid and
investment as nothing more than neocolonialism.
Hemispheric Diplomacy
• Solving regional disputes
– Compared to the New Deal and to the politics of isolationism,
leadership of the Western Hemisphere was not a major
priority for the Roosevelt administration.
Hemispheric conferences 1933-1942
– Most ended with disagreements over whether the League
should be involved in hemispheric disputes. The US wanted
to use neutrality as a means of solving disputes in Latin
America. Most did not trust US motives.
– Havana Conference (1940): Discussed resisting imperialism
from states outside the Americas. It was agreed (without
formal treaty) that the states of the Americas would assist any
state that was threatened by an external aggressor
– Rio Conference (1942): FDR looked for the American states
to break off diplomatic relations with Japan. Argentina and
Chile refused.
European Reaction to the Good
Neighbor Policy
• Many European leaders (ex.
French Prime Minister
Edouard Daladier) regarded
the Good Neighbor Policy as
an extension of the Monroe
Doctrine that sought to
reduce Latin America to an
economic colony of the US.
• Others criticised his support
of dictators such as Rafael
Trujillo of the Dominican
Republic
Analysis Good Neighbor Policy
• Overall, the Good Neighbor Policy was both a
continuation of earlier hemispheric policies, but with
certain significant additions –
– (1) the injection of massive US funds and loans;
– (2) attempts to manage trade through
not always reciprocal agreements;
– (3) attempts to build up Latin American support and
assistance for the US war effort – with very mixed
results.
• One major and unintended consequence of the Good
Neighbor Policy was a growth of Anti-Americanism due
to the belief that America was trying to dominate and
control hemispheric trade, and prop-up dictators who
agreed with its policies. Notably the states most eager to
work with US were those with totalitarian regimes.