LETTERS TO THE EDITOR (April 27, 1992)

I commend your stimulating editorial “Capital for Latin America” (T.N.M., Mar. 23/92). You do well to encourage the Canadian resource industry to participate in Latin America’s growing opportunities for resource development.

Good Neighbour Associates has found that Nicaragua offers tremendous opportunities for Canadian industry. International companies have been bidding on four existing mines.

The 1989 election there led to a reconciliation program that is delivering political stability. Financial statistics for 1991 reveal a country that has emerged from previous hyper-inflation. The government has reformed laws affecting trade, tax, industry and government finance to draw international interest.

Your editorial states that “Canadian stock markets could become the conduit for channelling capital . . . into Latin America.” Yes, the resource-oriented Canadian markets could provide such a conduit; even more, we could provide the model for new markets in Latin America.

With steady repatriation of capital into such countries as Nicaragua and growing freedom from government control, local stock markets would allow citizens a vehicle for their own investment, and would provide companies with greater access to investment funds from within their country. Would the VSE or TSE offer assistance in developing a local exchange in Nicaragua which currently is completely dependent on external markets? Someone wishing to follow this opportunity might find a warm welcome, as well as financial assistance from the applicable federal government agency. C. Weatherdon

Good Neighbour Associates

Nepean, Ont.