It is not surprising that the academic community should be interested in probing the diplomatic role of U.S. business abroad. The business corporation, which has aptly been called the characteristic institution of American society, has been a prime force for change and economic progress, not only in industrialized nations but in the most remote and backward areas as well. As a leader in building a new society, U.S. business has had thrust upon it a diplomatic function (and one which is not merely an appendage of political diplomacy) that we are only beginning to discern in all of its implications.

Because of the magnitude and rate of growth of our economic involvement abroad, a few statistics may provide an adequate if hurried perspective of the issues and problems which I believe will necessitate rethinking the diplomatic stance of U.S. business. Over the two decades between 1940 and 1961, total U.S. foreign assets and investments rose from $12 billion to $80 billion. In Latin America, with which most of this paper will be concerned, U.S. direct investments now exceed $10 billion, U.S. companies pay one-fifth of all taxes, and employ a million and a half people. U.S. citizens living and working in Latin America number in the tens of thousands; there are about 17,000 in Venezuela alone.