166 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,
bution to be controlled by him direct to the local retailer or consumer
or to be handled through the present distributing facilities afforded
by established local importing houses and by American exporting
houses.

5. Cooperative effort by American producers of many commodities,
especially staple goods of all sorts, should do much to offset the advantages
 of European combinations selling in South America and to
maintain the trade of the United States in that market.
6. American manufacturers whose South American trade has
greatly increased during the war in lines which formerly had to compete
 with goods manufactured by European combinations of manufacturers
 should prepare to meet the severest kinds of competition
in those markets after the war.
7. Most of the local importing houses, whose primary interest has
always been the distribution of goods of European origin, are only
temporarily handling American goods to keep up their organization
and hold their customers. They frankly state their intention to
return to their European source of supply at the first opportunity.
8. The American manufacturers who at present find a large and
profitable cash market in the sale of their goods to such houses can
not expect to build up a future market through them. They are
merely helping their foreign competitors to ‘retain a hold on the
South American markets. This is particularly true of those American
manufacturers who are engaged in supplying such houses with goods
which are not only close imitations of the European styles in which
such houses had established a trade before the war, but which, furthermoro,
 are misbranded in respect to their place of origin.
9. Much of the present heavy demand for American goods in South
America is due to conditions temporary in character and is the result
of urgent necessities. The opportunity which it offers to introduce
American goods in South American markets should be used to build
up permanent business.
Complaints against the methods of many American manufacturers
in conducting their South American trade are not infrequent. While
some are due to a lack of appreciation by the foreign buyers of difficulties
 at present confronting the American manufacturers in their
home markets, and in the shipping situation, others may be better
founded. No attempt was made by the Commission at the time of
its field investigation to determine the justice of such complaints
as were brought to its attention. Since that date, the action of the
Union Industrial Argentina and the Buenos Aires press, in voicing
certain complaints, has brought this matter into some prominence,
and an investigation of the subject is being made by the American
consul