1. FDR’s Good Neighbor Policy
IB History of the Americas

2. Background: Big Stick Diplomacy, Dollar Diplomacy, Moral Diplomacy

3. 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 Spanish-American 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
At the turn of the 20th century, the United States emerged as a world power. The Spanish American War and the acquisition of the Philippines represented both an extension of earlier expansionist impulses and a sharp departure from assumptions that had guided American foreign policy in the past. For the first time, the United States made a major strategic commitment in the Far East, acquired territory never intended for statehood, and committed itself to police actions and intervention in the Caribbean and Central America.
Not since the Mexican War had the United States expanded so rapidly.  In 1898 and 1899, the United States annexed Hawaii and acquired the Philippines, Puerto Rico, parts of the Samoan islands, and other Pacific islands.  Expansion raised the fateful question of whether the newly annexed peoples would receive the rights of American citizens.

4. 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

5. American Foreign Acquisitions, 1917

6. Theodore Roosevelt’s “Big Stick Diplomacy”

7. TR’s “Big Stick Diplomacy”
Roosevelt hoped to expand upon America’s new, world stature after the Spanish-American War:
TR believed in the superiority of American Protestant culture & hoped to spread these values
To increase American economic & political stature in the world, the U.S. needed to be militarily strong & ready to fight if needed
TR & Sec of State Elihu Root applied “big stick” diplomacy most effectively in Latin America
“Speak softly & carry a big stick, you will go far”
—TR’s favorite African proverb

8. TR’s “Big Stick Diplomacy”
The U.S. paid $10 million for the canal & leased it for $250,000 per year
TR’s top foreign policy objective was to build the Panama Canal & he used his “big 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

9. 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 Canal must be to require us to police the surrounding premises”
—Sec of State, Elihu Root
When opened in 1914, the canal gave the USA a huge economic advantage in the Western Hemisphere

10. The Roosevelt Corollary
TR warned European nations to stay out AND warned Latin American nations to be more responsible or the U.S. would intervene
One of the greatest concerns was the intervention of European nations in Latin America:
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
From , US intervened in Latin America to protect the canal, exclude foreign countries (bought Virgin Islands in 1917), & stabilizing nations: 4

11. 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

12. The Roosevelt Corollary was used to justify American armed intervention in the Dominican Republic, Cuba, Haiti, Nicaragua, & Mexico
Attempts to maintain order in Latin America led to pro-American regimes that relied on dictatorial rule over its citizens
To enforce order, forestall foreign intervention, and protect U.S. economic interests, the United States intervened in the Caribbean and Central America some 20 times over the next quarter century--namely, in Cuba, the Dominican Republic, Haiti, Mexico, Nicaragua, and Panama. Each intervention followed a common pattern: after intervening to restore order, U.S. forces became embroiled in the countries' internal political disputes. Before exiting, the United States would train and fund a police force and military to maintain order and would sponsor an election intended to put into power a strong leader supportive of American interests. Unfortunately, the men who took power in many of these countries, such as Anastasio Somoza in Nicaragua, Rafael Trujillo in the Dominican Republic, and Francois Duvalier in Haiti, established despotic rule.

14. 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

15. “Constable of the World”

16. William Howard Taft’s “Dollar Diplomacy”

17. 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 6

20. Woodrow Wilson’s “Moral Diplomacy”

21. Moral Diplomacy
Wilson apologized to Colombia for U.S. support of the Panamanian revolt
Wilson appointed pacifist William Jennings Bryan as his Secretary of State
Wilson was well-versed in domestic policy before becoming president, but not foreign policy
He believed that Moral Diplomacy could bring peace & democracy to the world without militarism & war
Wilson talked of “human rights” in Latin America, but defended the Monroe Doctrine & intervened more than Roosevelt or Taft
“It would be the irony of fate if my administration had to deal chiefly with foreign affairs”
—Wilson in 1912
To enforce order, forestall foreign intervention, and protect U.S. economic interests, the United States intervened in the Caribbean and Central America some 20 times over the next quarter century--namely, in Cuba, the Dominican Republic, Haiti, Mexico, Nicaragua, and Panama. Each intervention followed a common pattern: after intervening to restore order, U.S. forces became embroiled in the countries' internal political disputes. Before exiting, the United States would train and fund a police force and military to maintain order and would sponsor an election intended to put into power a strong leader supportive of American interests. Unfortunately, the men who took power in many of these countries, such as Anastasio Somoza in Nicaragua, Rafael Trujillo in the Dominican Republic, and Francois Duvalier in Haiti, established despotic rule. 7

22. Moral Diplomacy in Mexico
Wilson refused to recognize Huerta & demanded that he step down so legitimate elections could be held for a new president
When Huerta refused, Wilson used minor incidents (arrest of some U.S. sailors in Tampico) to send the military to occupy Veracruz & force Huerta to flee to Europe
In 1913, Mexican president Madero was overthrown by dictator Victoriano Huerta
Moral Diplomacy in Mexico
Moral diplomacy seemed to fail in Mexico as war seemed eminent but WW I forced Americans to change their focus to Europe
Only a week after taking office in 1913, Wilson called upon Mexico's president, Victoriano Huerta, who had seized power after the constitutional president was murdered, to step aside when elections were held. When Huerta refused, Wilson used minor incidents--including the arrest of some American sailors in Tampico and the arrival of a German merchant ship carrying supplies for Huerta--as a pretext for occupying the Mexico port of Veracruz. Within weeks, Huerta was forced to leave his country.
During the conflict, the Mexican revolutionary Pancho Villa had made a number of raids into U.S. territory near the Mexican border. Wilson responded by ordering Gen. John J. (Black Jack) Pershing to cross into Mexico.
Mexican rebel Pancho Villa tried to provoke war with the U.S. by raiding across the border for supporting his rival Carranza
Wilson responded by sending the military to find Villa (who were unable to do so)

23. Conclusions
After the Spanish-American War, the USA assumed an aggressive foreign policy:
In order to maintain order, forestall foreign intervention, & protect U.S. economic interests
By the outbreak of WW I, the USA had seen its foreign policy evolve from strict neutrality, to imperialist, to police officer
Washington’s Proclamation of Neutrality (1793) & Farewell Address (1796)
Annexation of Alaska, Hawaii, & Philippines; Open Door Policy in China
“Big Stick,” “Dollar,” & “Moral” diplomacies

24. Our “Sphere of Influence”

25. 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

26. 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.

27. The Good Neighbor Policy
U.S.-Latin America Relations During the War Years

28. 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?

29. Case Study: Brazil

30. 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.

31. 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,

32. 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.

33. 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.

34. Case Study: Mexico

35. 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.

36. 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.

37. 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

38. 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

39. Case Study: Argentina

40. 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.

41. 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.

42. 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.

43. 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
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

44. 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.)

45. 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 neo-colonialism.

46. 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
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.

47. 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

48. 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.