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64
R@ce & Class
The historical policy of US-Caribbean Basin relations was summed up by
then-candidate Reagan's advisory committee in 1979, the year of the
Grenadian and Nicaraguan revolutions. The Heritage Foundation and
the Committee of Santa Fe wrote:
The collapse of the U.S. presence in the Caribbean has endangered
America's global power projection. Ever since 1898 America's
worldwide reach has rested on a quiescent Caribbean and a supportive South America. The Caribbean, once an American lake, is
becoming a Socialist sea.'
The United States can only restore its credibility by taking im- mediate
action. The first steps must be frankly punitive... 3
This was no mere lament for a more dominant past which the Monroe
Doctrine had assured for the US. Rather, the Heritage Foundation's
report announced the renewal of a more aggressively militarist
solution to America's decline. in influence. In 1979 two states,
Nicaragua and Grenada, proclaimed their intention to break away from
the tradition of dependency and establish socialist-oriented
governments to forge new economic paths. In Nicaragua, this marked
the end of the decades old struggle against the tyranny of the
Somoza dynasty, which had ruled the country at the behest of the
US since the Marine occupation of 1926 to 1933. In Grenada, the New
Jewel Movement, under the leader- ship of Maurice Bishop, took over
in a bloodless coup, ousting Eric Gairy whose list of
accomplishments included establishing relations with the
dictatorships of Pinochet in Chile and South Korea and calling for
UN investigations of UFOs.
Reagan took his oath of office with plans to resecure America's
'backyard': Central America and the Caribbean. Before looking in
detail at the manifestations of US policy during the Reagan years,
it is necessary to identify its Republican precursor, the Nixon
administration. It is difficult to single out any particular
period or administration because gunboat and dollar diplomacy have
been mainstays of US foreign policy in the Caribbean Basin region.
However, the defeat of the US in Vietnam ushered in what would be a
long period of economic problems in the country as each
administration attempted to prop up an economy based on the
military-industrial complex. The economic problems were, in part, a
result of the loss of Third World markets due not only to an
increase in political tensions, but also because Japan and western
Europe had risen as formidable competitors at home and abroad. The
Nixon administration responded with the New Economic Policy,
suspending the convertibility of the dollar into gold and turning to
the use of protectionist policies in defense of US capital.
To dispose of the military surplus which had accumulated, the Nixon
administration doubled the budget of the Military Assistance Program
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