Real Estate Purchases
In 1801, Thomas Jefferson, then President, had adopted an expansionist policy, which was critical to its development. He purchased Louisiana from France in 1803 for $15,000,000. This gave the United States a presence on the west bank of the Mississippi and also gave it a coastline on the Gulf of Mexico. Spain, however, refused to sell the coastline east of the Mississippi, because of its fear that the United States would have easy access and growing influence over Cuba and the rest of the Caribbean.
After the 1812 – 1814 war, President Andrew Jackson continued to exert strong pressure on the Spaniards and finally in 1819 (the collapse of the Spanish American Empire), Spain ceded United States territory east of the Mississippi in exchange for the United States Government’s agreement to take over the repayment of $5,000,000 debt owed my Spain to American merchants.
HISTORICAL BACKGROUND
By the end of the 18th Century, Europe had exerted the greatest influence on the Caribbean and Latin America for approximately 300 years. The Caribbean had been colonised by Span and had been used for the excursions into, and later colonisation of North, South and Central America. After 1815, at the end of the Napoleonic wars, the power base had shifted and Great Britain stood as the dominant power in the Caribbean with Spain, France and the Netherlands playing lesser roles. Spain’s influence remained unchallenged in Latin America from other European powers but there were challenges from within these colonies with independence movements.
Britain had already been at war with her former colonies in North America, which had resulted in the declaration by the latter of their Independence in 1776. This was recognised by the Treaty of Paris in 1783. Prior to Independence, the 13 North American territories had developed strong trade links with the colonies of the British West Indies, having had the same colonial master. Although Spain and France had sided with the North American colonies during the War of Independence, they were also colonial powers and feared that the colonial revolt in North America would be copied in their own colonies.
Both France and Spain wanted the United States to be held in check and confined to the east of the Appalachians, notwithstanding the terms of the Treaty of Paris. France, therefore, in order to suppress the development of the United States, restricted trade between North America and her West Indian Colonies.
Spain was even more hostile towards the young nation. The Spanish closed the Port of New Orleans to the United States, although the Mississippi (on which New Orleans is situated), was established as the Western boundary by the Treaty. The strategy was clear. The North Americans, if they wished, could expand and develop the lands west of the Appalachians, but none of their goods could be sent down the Mississippi to the Gulf of Mexico and to the Caribbean, and therefore no markets would be available. This would clearly limit their ability to expand and develop.
The United States recognised that it was necessary to expand its boundaries to the Gulf of Mexico in order to expand its trade with its Caribbean neighbours. It, however, was not in a position to engage France and Spain in a war at this time, because the War of Independence had left it impoverished. It should be recalled that President Jefferson had outlined the Manifest Destiny in which the expansionist policy was seen to be necessary for the development of his country. The economic weakness, however, was the critical factor and it was decided that force should not be used.
Spain’s main concern was the protection of Cuba and wished to have the United States remain neutral while it was at war with France, during the French Revolutionary wars. France around the same time agreed to the sale of Louisiana (1801). It served to preserve the neutrality of the United States.
The war had taken its toll on the Spanish economy and, in 1819 the exchange of debt repayment for property saw the United States gaining former Spanish territory east of the Mississippi. The United States, therefore, achieved its expansionist aims with Pinckney’s Treaty and the two purchases of real estate while maintaining a policy of peace and neutrality (non-intervention).
The Effect of American Policy in Latin America and the Caribbean in the 19th Century
Cuba
While Monroe’s address was worded in general terms and included all of the “neighbours” of the United States, Cuba was the main target of the United States expansionist plans. The strategic importance was both geographic and economic. Cuba straddled the entrance to the Gulf of Mexico and could effectively block United States outlets to the south. Further, it also bordered the Florida Channel which was the passage from the Gulf of Mexico to the Atlantic, and Havana was the main Spanish trading port in the Caribbean, hence its economic importance.
The public statements of United States policy as the champion of the ideas for self-determination and anti-colonialism, appears to have worked against the country in its quest to acquire Cuba, since it could not justify seizing it by force from a weak Spain as this would have made it a “colonist”. Attempts were made by America President James Polk to purchase Cuba for $100,000,000, but this was refused by Spain. This quest for Cuba did not go unnoticed in Europe, so Britain, in 1852 proposed a convention in which France, the United States and Britain would have agreed never to take over Cuba from Spain. United States rejected the idea.
When subsequent purchase offers by then President Pierce, were rejected, military conquest was considered but was rejected by the people of the United States when it was published in the Ostend Manifesto. The inability of the United States to annex Cuba did not prevent the United States from investing in that country and as early as 1868, they dominated the Cuban economy. By 1895, American investments in Cuba were worth $50,000,000 and the annual trade between the countries reached $100,000,000. The investors, of course, expected protection from the United States government in the event of threat to “their Property”. Until 1895, the U.S. Policy of non-intervention was maintained although their expansionist aims were pursued and achieved. This however changed in 1898.
When the United States engineered the War of Independence in 1895 with the introduction of the Wilson tariff on imported sugar, it nevertheless stayed out of the war, until provided with an excuse that a battleship, the USS Marine, blew up in Havana Harbour and the Spanish were blamed. War was declared in 1898. Spain was defeated, and at the Treaty of Paris, signed in December 1898, Spain formally recognised the Independence of Cuba. As part of that treaty, Puerto Rico also became a territory of the United States.
The United States did not withdraw its troops from Cuba until 1901, and even so the Platt Amendment ensured that the United States had close control over Cuban Affairs after the withdrawal of the United States military. The Platt Agreement included the right of the United States to intervene in Cuba for the “protection of life, liberty and individual property.” This amendment was not withdrawn until 1934. The appearance of being a good neighbour to Cuba was therefore being used to attempt to carry out United States expansionist aims.
Panama
The United States became interested in building a Canal connecting the Caribbean Sea to the Pacific Ocean because it was in her interest. The country was expanding westwards and gold had been discovered in California in 1848. It was necessary to find a shorter sea route to California than sailing south around cape Horn in Chile. Further, at the Treaty of Paris, the United States had acquired colonies in the Pacific i.e. Guam and the Philippines and wanted their war ships to have a short route to their territories for protection.
In 1850, the U.S. signed the Clayton-Bulwer Treaty with Britain in which both countries agreed to share in the construction and control of the canal across the Isthmus of Panama, which belonged to Columbia. Britain became more interested in building the Suez Canal and, a French Company obtained the rights from Colombia (valid until 1904), to build a canal in Panama. This attempt was unsuccessful because of diseases (yellow fever and malaria), but the rights were kept.
The United States wanted to build a canal on its own and in 1901, signed a treaty with Britain to replace the Clayton-Bulwer Treaty. This was the Hay-Pauncefote Treaty, which gave the United States the sole rights to build, control and fortify the Canal which would be open to ships of all nations. In 1902, an agreement was reached to purchase the French rights and to compensate Colombia. However, in 1903, there was a change of government in Colombia and the agreement was rejected.
The United States could not under its existing policies which were mainly directed at Europe, use force to get its way and so it incited a revolution in Panama, which it supported with a war ship to prevent Colombian forces from intervening, and quickly recognised the new government. An agreement with the same terms and conditions as those agreed in 1903 was signed with the new government.
This ruthless and immoral scheme, made President Roosevelt and the United States unpopular in Latin America, but the Canal was built in 10 years and the first ocean-going ship passed through the Canal in 1914. United States President Woodrow Wilson, later apologised to Colombia and paid $25, 000,000 in compensation.
Other Policies Affecting the Caribbean
Once built, the Panama Canal dominated United States policy in the Caribbean as it felt that it had to defend the Canal Zone and all approaches. In fact, four major needs were identified:
- To defend the Canal zone itself, Military Bases were established
- To defend the approaches, Naval bases in the Caribbean were increased by the Platt Amendment in Cuba.
- To “police” Latin America which had begun under Roosevelt.
- To stop independent Caribbean countries from being controlled by potentially hostile hands. The “Dollar Diplomacy” was used.
Dollar Diplomacy
The United States was concerned, at the beginning of the 20th Century, that disturbances in the Caribbean might provide an opportunity for Europe to re-enter and threaten its control over the approaches to the Panama Canal. In 1902-03, Venezuela failed to pay its debt to foreign creditors and Britain, Germany and Italy, blockaded the country to force repayment. Germany actually destroyed a Venezuelan town before United States persuaded the parties to submit to arbitration.
The United States policy, therefore, sought to transfer debts of Caribbean countries from European to North American creditors. This policy of “Dollar Diplomacy” was the idea of William Howard Taft, Secretary of War in 1904, and was implemented so successfully that by 1924, the United States was actively controlling the financial affairs of Cuba, the Dominican Republic, Haiti, Nicaragua and Honduras.
The policy, which was first applied in the Dominican Republic in 1905, allowed the United States to be “invited” to administer customs collection and a proportion of customs revenue was set aside to cover foreign debts. Although President Wilson condemned the policy in 1913, he did nothing to stop it and in fact ordered intervention in Haiti in 1913, the Dominican Republic in 1916 and Cuba in 1917. He also purchased the Virgin Islands form Denmark in 1917.
The United States had therefore continued its policy of intervention both physically and economically until the Great Depression of 1929 – 1933 forced it to redirect its focus back to the mainland and seek to repair its economy.
B: Good Neighbour Policy
The United States at the start of the 20th Century was a new and minor imperial power but had become a wealthy country. Its influence in Cuba was so great, that during World War1, with the collapse of the beet sugar industry in Europe, Cuba had become totally dependent on sugar. Because of the inflated price for sugar, high prices were offered for sugar estates and sugar mills and sugar production passed in the hands of the United States people.
This process had begun as early as 1868 when 83% of Cuba’s exports went to the United States and only 6% to Spain. By 1895, United States investments in Cuba were worth $50,000,000 and annual trade between the two countries reached $100,000,000. Some of this wealth had been used to purchase land to expand its country, to buy other countries and to assist in the building and control of the Panama Canal.
During the Roosevelt administration, America’s largest dependency in the Caribbean was Puerto Rico a country where people were declared U.S. citizens and were free to ravel between the two countries, but Puerto Rico was not part of the Union of the U.S. As a result, U.S. industries were set up in Puerto Rico and great investments in the sugar industries were made there. Puerto Ricans on the other hand, sought employment in New York and other North American cities, leaving room for better working condition and employment for those who stayed behind. Similarly, the U.S. Virgin Islands became another of the U.S. important centres of the Caribbean since hotels and housing construction boomed, thus creating employment for many west Indians form neighbouring Leeward and Windward Islands.
President Roosevelt, in 1933, then promised the American people “A New Deal” in employment, industry, housing, tax and social reform, as well as changes abroad. He promised to be “ a good world neighbour” and renounced the doctrines which allowed for military intervention. He outlawed wars of aggression in Latin America, settled disputes by discussion and removed trade barriers.
This “Good Neighbour Policy” was honoured when America moved out of the Dominican Republic and Roosevelt made goodwill visits to Latin American Countries. However, after the U.S. moved out of the Dominican Republic, a dictator and corrupt leader took over for thirty years, until his assassination, which caused the U.S. to intervene and break the “Good Neighbour Policy”, by sending in marines to prevent what they thought was a communist take-over of the island.
There was an obsession, however, with protecting United States wealth and therefore, the strategic importance of the Panama Canal and the countries of the Caribbean and Latin America, was over-emphasized. During World War I, without raising international tension, there was the occupation by the United States in Haiti, the Dominican Republic and Cuba.
Although in the occupied countries, there were improvements to roads, hospitals and schools, law and order were improved and finances were stabilised. The nationalists in those countries felt that nothing compensated for the loss of independence and the United States was unpopular throughout Latin America in the 1920s. Even in the United States, intervention was unpopular. The United States was sensitive to these feelings and did not want active “enemies” at such a critical time in world affairs.
At the end of 1928, a conference was called in Washington at which the United States signed the Treaties of Conciliation and Arbitration with the Latin American countries. In the same year, President-elect Herbert Hoover made a goodwill tour of Latin America and, later in his inaugural address stated, “we have no desire for territorial expansion, for economic or other domination of other people”.
The change in policy to one of being a good neighbour was seen in that the United States did not intervene in Mexico in 1929, Brazil in 1930 or El Salvador in 1932. Also, in 1932 United States Marines were withdrawn from Haiti emphasizing the change in United States policy. The United States at this time was in the middle of the great depression and its economy was in crisis. Their attention was, therefore, directed to reviving its fortunes at home.
In 1933, Roosevelt announced his “good neighbour policy” and at a conference of American States, the United States signed the Montevideo Agreement, which stated that “no state has the right to intervene in the internal or external affairs of another”. During World War II, although the United States was neutral until the attack on Pearl Harbour in 1940, Roosevelt signed an agreement with Britain to exchange 50 obsolete but usable destroyers for the right to establish naval bases on British Islands. These bases were on a 99-year lease and rent-free. By 1960, most of the bases were given up after representation by those countries.
Later in the 20th Century, the United States found other ways of assisting the Caribbean and Latin America countries in order to maintain its influence. This included financing small projects like sheep farming, vegetable growing, leather-work and other arts and craft. There was also technical aid in the form of buildings, medicines and technical advice.
In 1948, the Organisation of American states was founded. This was intended to remove the need for the Monroe Doctrine from the United States and make its members collectively responsible for the defence of the region. The United States, however, did not give up its right to take action unilaterally if it felt its interests were threatened.
Conclusion
The United States therefore had two periods of non-intervention followed by two periods of intervention. The earlier period of non-intervention occurred after the War of Independence ended in 1783.
The development of its economy and its prosperity coincided with a period of physical intervention starting around 1895 in Cuba. This continued until 1928 with the signing of the Treaties of Conciliation and Arbitration with Latin American Countries.
The start of the second period of non-intervention coincided with the start of the Great Depression, and continued during the period of The Good Neighbour Policy of the United States, which was introduced by Franklin D. Roosevelt who was President of the U.S. from 1933 – 1945. At that time, there was a strong anti-American feeling between the U.S. and much of Latin America, because of the Monroe Document and the Roosevelt Corollary.
The Good Neighbour Policy was introduced in response to nationalistic movements in Latin America, which viewed the former policies as an invasion of their sovereignty. The United States did not wish to have active enemies in its “neighbourhood”. She was forced therefore to stick to this Policy when its economy was in turmoil during the depression of 1929-1932 and during her recovery period after.
It can be seen that the United States did not consider that this policy prevented it from intervening in other countries if it felt “its interests” were threatened as it reserved the right to do in 1948 when the Organisation of the American States was formed.
Its obsession with regional security, which dominated its policy after the construction of the Panama Canal, continued during World War II with its insistence on getting bases in the Caribbean in return for warships. Their earlier expansionists policies had paved the way for the country to become prosperous and its influence had been so firmly established over the region in terms of trade and investment that it could afford to relax its physical presence and control these countries economically.
There was however, physical intervention covertly with the Bay of Pigs invasion in 1961 and the naval blockade of Cuba in 1962. In 1979, there was the invasion of Grenada. It may be argued that the United States is still in an interventionist phase as it appears that the United States will physically intervene to police the region whenever it considers that its interests are being threatened.
Question
A: Critically examine the change in the United States policy of non-intervention to intervention in the Caribbean.
B: Discuss the “Good Neighbour” Policy
Kejan Johnson-Haynes
Queen’s Royal College Centre no. 1646
History SBA
The United States’ Intervention in the Caribbean
Table of Contents
Introduction………………………………….……………………...1
United States Government Policies……………………………...2
Historical Background…………………………………………...5
The Effect of American Policy in Latin America………………..7
Other Policies Affecting the Caribbean….……………………….10
Section B: The Good Neighbour Policy…………………………12
Conclusion………………………………………………………..15
Maps…………………………………………………………...…17
Bibliography…………………………………………………..…21