Latin American Policy, 1900-1913

ROOSEVELT & TAFT’S LATIN AMERICAN POLICY, 1901-1913 UNIT 2B

Background: The Monroe Doctrine was the cornerstone of American policy towards the Western Hemisphere since President James Monroe promulgated it in 1823. Throughout most of the 19th century, the United States did not have the naval power to back up its ambitious policy. We were indeed fortunate that Great Britain shared our goal of keeping other European powers from establishing colonies and military bases in the Hemisphere. The Spanish-American War, however, had demonstrated the determination of the United States to become the unrivaled hegemon in the Hemisphere. What no one imagined after 1898 was that the Monroe Doctrine would be challenged so quickly by another European power and that this challenge would take the United States to the brink of another war.

I. ROOSEVELT’S POLICY, 1901-1909

A. ROOSEVELT’S VISION FOR THE HEMISPHERE

Expansion, to him, meant a hemispheric program of acquisition, democratization, and liberation.” [Morris-24]

B. THE ORIGINS OF THE PANAMA CANAL: PART I

1. The Catalyst: ______

2. The site: Nicaragua or Panama (a province of Columbia):

Roosevelt’s strategic vision: “We must build the Isthmian Canal, and we must grasp the points of vantage which will enable us to have our say in deciding the destiny of the oceans of the east and the west.” Otherwise, Germany might start digging.

3. How Roosevelt got his Panama route: ______

C. “THE VENEZUELAN BUSINESS,” 1902

1. Reason for silence in the historical records: ______

2. The situation: ______

a. Why Roosevelt was particularly worried about Germany. ______

1 ______

3. ROOSEVELT PREPARED FOR THE WORSE BY TAKING 3 ACTIONS:

a. ______b. ______c. ______

4. WHO HAD THE POWER?

a. Roosevelt’s goal: b. The status of the U.S. fleet vis-à-vis Germany’s: ______c. The purpose of the forthcoming naval war games: ______

“Roosevelt held that only “power, and the willingness and readiness to use it” would make Germany understand the Monroe Doctrine fully.” Morris

5. The German threat: ______

6. THE NATURE OF ROOSEVELT’S ULTIMATUM TO GERMANY: ______

7. ROOSEVELT ISUES HIS “COROLLARY” TO THE MONROE DOCTRINE; TWO ASPECTS a. ______b. Since we can’t, on the one hand tolerate permanent seizure of territory by a European power in any of the American republics…I, on the other, can’t let [Venezuela] hide behind the Doctrine in order to shirk obligations.”

8. ROOSEVELT’S “BIG STICK” SPEECH, APRIL 2, 1903

a. “There is a homely old adage which runs, ‘Speak softly and carry a big stick: you will go far.’ If the American nation will speak softly, and yet build, and keep at a pitch of the highest training, a thoroughly efficient navy, the Monroe Doctrine will go far.”

D. THE PANAMA CANAL: PART II II. TAFT-KNOX “DOLLAR DIPLOMACY,” 1909-1913

A. THE GENERAL AIM OF DOLLAR DIPLOMACY

1. On December 3, 1912, President Taft recounted the goals and accomplishments of his foreign policy: “The diplomacy of the present administration has sought to respond to modern ideas of commercial intercourse. This policy has been characterized as

2 substituting dollars for bullets….It is an effort frankly directed to the increase in American trade upon the axiomatic principle that the Government of the United States shall extend all proper support to every legitimate and beneficial American enterprise abroad. How great have been the benefits of this diplomacy [resulting in] the wonderful increase in the export trade of the United States.”

Secretary of State Knox: “True stability is best established not by military, but by economic and social forces….The problem of good government is inextricably interwoven with that of economic prosperity and sound finance; financial stability contributes perhaps more than any other one factor to political stability.”

2. Goals of dollar diplomacy:

a. ______b. ______

B. THE THREE-FOLD SIGNIFICANCE OF DOLLAR DIPLOMACY:

1. It represented a paradigm shift in that policymakers ______

2. It meant that the U.S. was going to be more ______

3. It was designed to provide ______

C. THREE OBSTACLES TO DOLLAR DIPLOMACY

1. In reality, the so-called “republics” of LA were ______

2. The history of most of these countries ______

3. The economic obstacles were even more daunting: ______

4. The key to the economies of these countries was the customs house through which all exports and imports moved. The receipts supplied almost all of the government’s revenue and was therefore the target of any revolutionary movement.

Knox believed that the only way to improve conditions in these countries was to place the custom houses under competent (i.e., American) control and to revise the country’s financial structure.