ABSTRACT
The Cold War in the mid-seventies showed no signs of abating. The United States was weakened by post-Vietnam doubts about itself. In Latin America, guerilla movements were emboldened by the Communist victory in Vietnam and, with Cuban backing, became even more aggressive. The original Agency for International Development (AID) loan agreement committed Latin American Agribusiness Development Corporation to focus on projects that made the agribusiness chain more efficient, that promoted nontraditional agricultural exports and encouraged the development of a Central American capital market. AID was sufficiently pleased with the administration of the first loan, that it simplified its own disbursement procedures in all subsequent loans. Management requested a capital increase from the shareholders, but not all of them were willing to subscribe additional funds. The United States was as concerned about the Caribbean as it was about Central America.
