why did the united states provide loans to latin america
Latin America–United States relations The Great Depression made overseas military expeditions too costly for the U.S. In January 1931, Henry Stimson, then Secretary of State, announced that all U.S. soldiers in Nicaragua would be withdrawn following the 1932 election in the country. The Good Neighbor policy was the foreign policy of the new administration of United States, President Franklin Roosevelt, toward the countries of Latin America. The United States wished to have good relations with its neighbors, especially at a time when conflicts were beginning to rise once again and this policy was more or less intended to garner Latin American support. Giving up unpopular military intervention, the United States shifted to other methods to maintain its influence in Latin America: Pan-Americanism. Pan Americanism supports for strong local leaders, the training of national guards, economic and cultural penetration, Export-Import Bank loans, financial supervision, and political subversion. The Good Neighbor Policy meant that the United States would keep its eye on Latin America in a more peaceful tone. On March 4, 1933, Roosevelt stated during his inaugural address that: "In the field of world policy I would dedicate this nation to the policy of the good neighborâ€”the neighbor who resolutely respects himself and, because he does so, respects the rights of others."[34] This position was affirmed by Cordell Hull, Roosevelt's Secretary of State, at a conference of American states in Montevideo in December 1933. Hull said: "No country has the right to intervene in the internal or external affairs of another" (LaFeber, 376). This is apparent when in December of the same year, Roosevelt again gave verbal evidence of a shift in U.S. policy in the region when he stated: "The definite policy of the United States from now on is one opposed to armed intervention."[35]