Soviet Russia trying to transform the populations of Tartars and Moujiks of their country spread over two continents, into the consuming elements of a modern society. The latest material progress of that country may be valued by the inhuman efforts of the proletarian classes to obtain a transformation which is still lacking in moral factors and in the reality of a Christian civilization.

While on this subject, I must say that Brazil is now beginning the organization of its domestic markets. Its forty-five million inhabitants only supply about twenty million consumers. You You may thus judge the future of our industrial as well as agricultural production, which should be the aim of a policy favorable to the stimulation of our production and to the transformation of all that constitutes our internal market, consolidating our wealth and elevating the level of our civilization.

No country in America can count on reserves of economic expansion comparable to our own. I could cite products and optimistic statistics to Your Excellency, showing the whole field of our wealth already being exploited and that yet unworked. I consider it more interesting, however, to assure you that the Government of this country is fully aware of the importance of this problem. That is to say: the constant intensification and defense of our domestic market; for we are convinced that the real wealth that determines the positive progress of nations is the fruit of the work which increases and is perfected within its own economic frontiers.

In normal times, international commerce is a powerful aid and stimulant for the fixation of wealth created by domestic commerce. The classic conception of international commerce was its absolute liberty; we know well how the European war, after creating many formulas of state intervention, thus perturbing this classic conception of international commerce, finally tangled itself in the economy of the state.

Beginning with simple interference, we went on to directed economy and finished totally absorbed by anarchy.

To one acquainted with the difficulties and troubles of balancing budgets, our own troubles will cause no surprise-indeed they were recently called a tempest in a teapot by an English banker. Our administrative and financial organizations are most faulty: we have a banking organization which is far from perfect; our taxation system has been considerably ameliorated; and we are now in a period of readjusting the needs of the country within the possibilities of the

state.

All capital which we can invest in public utilities in the betterment of the administration is bound to succeed with wonderful results. Brazil's power of development is great, as I have already said, and is a sequence of our daily economical improvement, i.e. the expansion of our home market.

Mr. Secretary of State, you have heard a definition of the political, social, economic, and financial Brazil that is to be represented at the Peace Conference of Buenos Aires. I wish to speak now of the aims which take us there.

Our America undoubtedly possesses problems and principles of its own. For this reason, the Conference which has been convoked by the great President Roosevelt and is to be presided over by President Justo, should take into consideration measures of a purely American nature in order to meet the favorable conditions and special needs which are solely of continental interest. We must not, at the start, be induced toward universality of the inter-American juridical regime for the maintenance of peace, which in most cases is more theoretical than real.

Our respective nations, filled with a decidedly pacific spirit, based on a sincere desire of mutual cooperation among the people of America, will participate in the Conference of Buenos Aires, ready to do some constructive work leading the way to the end so close to all our hearts.

The primary aim is, no doubt, the consolidation of peace on this continent, true to the inclination and the historical growth of the states therein, whose natural tendencies it is our duty to develop. All efforts will evidently be directed to this purpose.

We shall examine, besides, with the truest spirit of cooperation, the suggestions of an economic or cultural nature, or any other which may avoid conflicts.

It does not seem to us that, to attain this objective, the best idea is the creation, in and for this continent, of new institutions similar to those already existing in Europe with identical objectives and aiming at universality.

We all know that the Pan American Union, as it works now, is already doing great service to the purpose of bringing together the countries of our continent, and there is no acceptable reason why we should embarrass its efficient action by giving it an unnecessary political character.

This would be even contrary to the tradition resulting from the resolutions of the Inter-American Conferences, which were never favorable to such a change in the attributes of that well-deserving institution.

Turning from the international juridical regime in a general sense to the more limited field of organization of international justice, we cannot fail to acknowledge that there is already in the world an institution that deserves respect and esteem and that should be upheld by all nations. I refer to the Permanent Court of International Justice at The Hague. Many were the American jurists who contributed to the making of its basic statutes.

More than half of the American republics are associated with it and those that are not may appeal freely to it to find a guaranty of justice.

So it can be seen that we are not inspired by any resentment or antipathy against men or institutions of other continents, knowing fully well that here in America we deal with ideals and interests different from those of other nations. I feel sure that, in Buenos Aires, we shall attain our aims without difficulty as there we shall be animated by feelings of the most sincere and profound Americanism. Thus, I confidently expect that the great assembly of peace that will shortly unite us all will at least bring useful and beneficial measures, not only tending to eliminate barriers to the establishment of a perfect and mutual understanding between nations of this hemisphere, but also tending to a fuller confidence between the American countries.

The delegation of Brazil and that of the United States of America, both devoted to the policy of "good neighbors", will contribute no doubt to this common work with identical enthusiasm and brotherly feeling, which has already brought about fruitful results.

My address, Mr. Cordell Hull, differing from the usual diplomatic standard, will, however, express to Your Excellency the latest diplomatic language which is the one referring to the work, the wealth, the happiness, and the ideals of the people. I could not attempt to show Brazil to you without giving you an idea of the domestic life, ideals, sentiments, and morals of this great nation.

To give you a rapid idea of all which we have inherited of our ancestors and which we hope to transfer, greatly increased, to our sons and descendants, we would be obliged to study briefly the problems of our economic and financial life.

The brief notes which I have just made will no doubt convey the due measure of the interest which we have in the enlightened judgment of Your Excellency about the spiritual and material life of Brazil. The true essence of friendship among people is mutual knowledge, the same which regulates the respect and friendship among

persons.

This country, which adopted in 1889 the juridical formula of the American political institutions, has always shown a great interest in the changes of Government and parties in American life. Your greatness, your strength, and your extraordinary progress have always been for us a motive of continental pride. Your great men are familiar to us. We know them all quite well, we know the strenuous life of your President Franklin Roosevelt, who already occupies a large place in our hearts.

The Brazilian Government, in paying tribute to the great American nation represented in the person of Your Excellency, freely and sincerely expresses the feelings of Brazil and, by so doing, endeavors to obtain your personal friendship, thereby proving the high esteem and great admiration which your personality inspires us with.

To your health and happiness, Secretary of State Cordell Hull!

Appendix 13

ADDRESS OF SECRETARY HULL AT THE BANQUET GIVEN IN HIS HONOR BY DR. MACEDO SOARES, RIO DE JANEIRO, NOVEMBER 19, 1936

I am glad that there is opportunity for this visit with you on my way south. I appreciate the warmth of your welcome and am moved by the friendliness that surrounds us.

The American delegation, for which I speak, travels toward Buenos Aires with the sense of being only one of numerous groups of pilgrim brothers moving together with a common thought, and not as a diplomatic mission bent upon some exclusive national aim.

It is no ordinary occasion that draws together the representatives of the twenty-one American republics at Buenos Aires. We are followed by high hopes of all the peoples of a great continent. No immediate difference among us necessitates our gathering. No prevailing fear or profound mistrust compels us to maintain our guards one against the other. There are no deep hatreds among us such as might thwart our impulse to be friends. We are not animated by calculations of special advantage such as might cleave us apart.

Purposes of another kind draw us together. We are impelled by the wish to make known and effective the beliefs and desires which we have in common. We are responding to our need of declaring and carrying forward in unison our common ideals. We meet to affirm our trust and friendship, to combine our faith, to make sure that peace shall prevail among us, and to repudiate with our whole mind and spirit those aims and philosophies that bring nations into conflict and send weary men to march over gas-poisoned battlefields. At Buenos Aires we shall seek the most effective and durable expression of this joint will to advance the ideals of peace between nations, government by the consent of the people, and esteem for human welfare as the basis of government. We shall seek ratification of the written agreements-for the most part in existence-in which these purposes are embodied. It is these tasks that bid us assemble at Buenos Aires.

Traveling on the boat down from New York, looking from my deck chair at the brilliant stars in the deep night sky, I rejoiced in the thought that we who are coming together at Buenos Aires need not fear that we would see against those skies the outline of airplanes flying to kill the people that live under them. We must strive to keep this hemisphere clear of the fear which this image represents. We must live as a continent of nations in peaceful and equitable relations with each other. I am sure that all the nations of this continent will respond to that vow. It is in the heart of each of us. We will seek further to define the means and conditions by which peace among us may be assured.

Despite the endless wars that have marked all the known past of the world, we must believe that the masses of people not only on this continent but elsewhere in the world will soon insist upon peace in international relations and be willing to live in a way that will bring peace. If we, the American republics, manifest this faith and purpose, if we show our willingness to ratify the pledges of peace between us, these events will be hailed everywhere. The people of those countries outside this hemisphere will not be heedless of our example. Nor can we be heedless of theirs. For war anywhere in the world must disturb and threaten peace everywhere.

We have the opportunity to demonstrate our own faith in our own ways of life and our own forms of government, and the duty of so acting that these shall serve us so well as to continue to command respect throughout the world. We are rightly proud of the democratic form of government in which we have made our history. We all know the occasional disadvantages and difficulties that such form of government encounters. We know that continued watchfulness and effort are essential to good democratic government. But to all of us, selfgovernment, democratic government, has always been and remains an essential condition of the good life as we conceive it. Such government is government controlled by the people and deidcated to the advancement and peaceful welfare of the people. It is government which draws its strength from the development of the individual under conditions of liberty; it is the form of government that looks to liberty to make men great and then trusts the greatness that liberty produces. It is the mode of government, I believe, in which the ideals of peace are most naturally developed and sustained. The conceptions of brotherhood and equality that underlie the relations between the citizens of a democracy impart themselves to the shaping of relations between democracies. It is rare that a self-governing country lives long on hatred, pursues an oppressive course, or nourishes dangerous ambitions. It tends rather to conduct its affairs and its relations with other nations in ways that serve peaceful general improvement. Peace, peace everywhere in the world, is the natural concern of the democracies of this continent.

If at Buenos Aires we can make that plain; if we can show clearly enough our determination to remain at peace while being strong; if we can make it more difficult for those few who may be willing to use war as an instrument of self-advancement or national policy to have their way; if we can make it less likely that those whose lives would be given in war may be deceived as to the realities of war; if we can advance but a little the trade relations between us that serve our mutual welfare; if we can do any of these things, our meeting will justify itself. For a final moment let us turn aside from these thoughts on the coming conference for a few words on the relations between Brazil and