in order to lighten the burden of heavy wheat imports on the nation's economy, has carried on extensive campaigns to increase domestic production, and tried between 1938 and 1943 to reduce wheat consumption through requiring the use of mixed flour in the manufacture of bread. The results of this last measure may be seen in the table below in the decreased importation figures during those years. When the requirement was discontinued in 1943 imports jumped rapidly.

The current wheat shortage has taken over the front pages of newspapers throughout the country. Lines of customers waiting for bread are common sights in

Rio de Janeiro and São Paulo. Imports of wheat dropped sharply in the last six months of 1945, shrinking from 101,244 tons in July to 73,686 tons in September and 38,654 tons in December. As is shown in the table, total imports decreased from 1,200,937 tons in 1944 to 1,090,327 tons in 1945, and wheat consumption decreased from 1,473,925 tons to 1,465,140 tons during the same period. Wheat flour imports, on the other hand, increased from 72,841 tons in 1944 to 141,693 tons in 1945. The average price paid per ton of wheat rose from 539 cruzeiros in 1941 to 741 cruzeiros in 1943 and 1,123 cruzeiros in 1945.

New air routes from the United States to Latin America

On May 17, 1946, the Civil Aeronautics Board of the United States approved the applications of several United States airlines for new routes to Latin America, as follows:

From El Paso, Tex., to Monterrey (Mexico) and Mexico City; Fort Worth-Dallas to San Antonio (Texas), Monterrey, and Mexico City-American Airlines.

San Antonio and Laredo, Texas, to Monterrey and Mexico City; Houston to Asunción (Paraguay), via Habana, Balboa (C. Z.), Bogotá, Quito, Guayaquil, Lima, and La Paz (Bolivia), and

from Asunción to Buenos Aires, and to Rio de Janeiro via São Paulo—Braniff Airways.

Houston and New Orleans to Habana, and from Habana to San Juan (P. R.), via Camagüey, Port-au-Prince, and Ciudad Trujillo, and to Caracas, Venezuela, via Kingston, Aruba, and Curaçao Chicago and Southern Airlines.

Miami-Habana and Tampa-Habana, extending New York-Miami and New York-Tampa runs— National Airlines.

Houston and New Orleans to Mérida (Mexico) and Guatemala City; New York to San Juan (P. R.)-Pan American Airways.

Nonstop service between Balboa, Canal Zone, and Buenos Aires, via Guayaquil, Lima, and Antofagasta; Buenos Aires to Montevideo, en route to or from Santiago (Chile), Salta (Argentina), or points north-Pan American-Grace Airways.

Balance of payments in Colombia

In 1945 Colombia's balance of payments took a downward turn, reflecting the changed conditions of the year in which the war ended. According to the Revista del Banco de la República, the favorable balances that began in 1942, caused in large part by severe restrictions on Colombia's import trade, were reduced in 1945 to $14,670,000 U. S. cy. As soon as trade could be resumed in part, Colombia's imports reacted to needs of the national economy that had been long denied, and the value of goods imported in 1945 was $138,000,000, or $50,000,000 more than in 1944.

The following table shows the compensated balance during the six years of the war, a period that began with unfavorable balances in 1940 and 1941 when the United States had still not begun to participate actively in the war. Colombia's balances for the years 1942, 1943, and 1944 were extraordinarily favorable, for

in those years, with the United States in the war, Colombian imports suffered a sharp decrease. In 1945 the cessation of h hostilities and the initiation of the processes of readjustment in international trade relations permitted Colombia to import 57 percent more than in the preceding year, with the result, as stated above, that the balance of payments, . while still favorable, was so small in comparison with the immediately preceding years.

The table shows that in the 6 years 1940-45 Colombia acquired a favorable balance of $154,620,000, which speaks clearly of the course of Colombian economy during that time. But notwithstanding the difficulties of importation, the trade balance for the 6 years was an unfavorable one to the amount of $16,000,000 ($524 million paid for imports, against $508 million received for exports).

However, if account is taken of the fact that other payments abroad during the period in question (government, Colom

bians living abroad, and miscellaneous) totaled $146,000,000, and that gold production totaled almost $140,000,000, it is apparent that the country was able to 1 make up its trade deficit and to cover part of payments abroad with exchange resulting from the importation of foreign capital.

Direct investments of foreign capital in Colombia have been a highly important item in recent years; they have been, in fact, the real source of the unusual surpluses in the balance of payments of the last four years. In 1945 they represented 29 percent of the total. But in view of the fact that such funds can constitute only a temporary income, there is urgent need for creating new export lines that will be in full stride when the inevitable future decrease occurs in the present current of foreign investments in the country. This need is the more urgent when it is considered that the prospects indicate that gold prices in import markets will tend constantly to increase-an increase determined at present by the scarcity of merchandise in Colombia's principal supply market, the United States; by the pressure which Latin American demands are exerting, since at present Latin American nations in general have considerable gold balances and exchange accumulated during the war years; and finally, by increased production costs. occasioned by monetary inflation. If to this process of increased costs of imports is added the increase in their volume by reason of the industrialization now occurring in Colombia, it may be deduced, according to the Bank of the Republic, that the normal tendency of the coming years will be toward a considerable increase in the value of imports which, during the first few years, will have to be met with the surplus left over from the war years.

Pioneering in western Colombia

Immigrants may be accepted up to 20 percent of the total number of settlers selected for the San Juan agricultural colony now being laid out on unoccupied lands near Colombia's Pacific coast. Such immigrants as are accepted must be geographically distributed among the Colombian settlers so that there shall be no local communities with ties abroad.

Near the mouth of the San Juan River a tract of land amounting to almost 150,000 acres has been set aside for the colony. Each settler will be assigned a plot of between 50 and 250 acres, which he must cultivate in accordance with instructions from the Ministry of National Economy. One plot has been set aside for the building of a future town, and a larger area is reserved to be used as a demonstration farm. Colonists will be selected from among the applicants on the basis of health, charcter, and fitness for the work of turning this wild land into productive farms. Road building and surveying are to begin at once. Next year the government hopes to be ready to place the colonists and to provide each family with a house and small clearing, credits for the tools, seed, and stock that will enable them to get to work, medical services and drugs, and also, during the first 6 months of their labors, a small cash allowance.

Mexican petroleum industry

Mexico now consumes more refined gasolines than it produces, according to a survey of the Mexican petroleum industry just completed by the Division of Financial and Economic Information of the Pan American Union.

This outstripping of production by consumption is due primarily to the rapid motorization of Mexican transportation

and other industrial demands, which have pushed the consumption of refined gasoline in Mexico from 12 million cubic feet in 1935 to 34 million in 1944. However, it is also due to some extent to a decline in output which, from a high of 40 million cubic feet in 1937, dropped to 23 million in 1940, and in 1944 totaled 30 million cubic feet.

Crude petroleum is shown to have fluctuated between a maximum of 263 million cubic feet in 1937 and a low of 195 million feet in 1942. Fuel oil output experienced a 23 percent increase in the period covered by the survey, rising from 100 million cubic feet in 1935 to 123 million feet in 1944.

Panama builds

During 1945-46 the Republic of Panama has been experiencing the largest building boom in its history. Throughout the whole country both public and private construction activity is being carried forward on an extensive scale.

In Panama City work is advancing rapidly on the new National Airport, expected to be completed by September 1, and the plans and model for the new "El Panamá" hotel have been shown to President Jiménez and his Cabinet. The contract has been awarded for the construction of the first section of the government's low-cost housing community in the Vista Hermosa district, in which living quarters for 100 families will be provided at an average cost of $2,692 for each family unit. A committee has been appointed to propose sites for a new public market. The name of the late President Franklin Delano Roosevelt will be given to the new national library soon to be built by the government. In the Santo Tomás Hospital grounds a 250-bed ward for tuberculous patients will be erected, replacing

the $4,000,000 project for the construction of an entirely new hospital ruled out by medical authorities. Funds are being raised for new buildings at the InterAmerican University.

The Bank of Urbanization and Rehabilitation is drawing up plans for four apartment buildings of 5 stories each in Colón, to house 200 families. On May 23 the new Colón Chapter headquarters of the National Red Cross was formally dedicated. Constructed at a cost of $100,000, it is rated as one of the finest government structures in the city and the only one of its kind in the Republic. It is designed to accommodate all activities of the local chapter, including a day nursery and breakfast-lunch room for school children.

A plan to complete the seventeen miles still lacking in the Colón-Portobelo Highway was announced by the President on May 9, 1946. The Government will provide engineers, equipment and materials for laying the roadway and landowners whose property will be traversed by the road agreed to grant right-of-way. The section to be covered extends from Rio Alejandro to Portobelo.

The Panama Canal has been authorized to start work on the reclamation of the mangrove swamp area in Colón. The cost of the entire project, which will add a large tract of land for the development of the Atlantic-side city, will be under $1,500,000. The work will take about 8 months, beginning June 1, and another. 8 months will be required for the construction of a new seawall.

Contracts have been awarded for the construction of at least 50 schools at a total cost of $1,000,000. This represents part of a national program to build 400 schools throughout the provinces at a minimum cost of $3,000,000. A

normal school for Santiago is included in this contract, and the town will also have