Latin America during World War II

During World War II, a number of significant economic, political, and military changes took place in Latin America. The war caused considerable panic in the region over economics as large portions of economy of the region depended on the European investment capital, which was shut down. Latin America tried to stay neutral at first but the warring countries were endangering their neutrality. In order to better protect the Panama Canal, combat Axis influence, and optimize the production of goods for the war effort, the United States through Lend-Lease and similar programs greatly expanded its interests in Latin America, resulting in large-scale modernization and a major economic boost for the countries that participated.

Latin America during World War II
Following the Battle of the River Plate, the German Deutschland-class cruiser Admiral Graf Spee was scuttled by her crew off Montevideo, Uruguay, on December 17, 1939.
LocationLatin America
Date19391945
EventsThe St. Louis Affair
June 1939
Battle of the River Plate
December 13, 1939
Operation Bolivar begins
May 1940
Sinking of the Toltén
March 13, 1942
The Lüning Affair
August 1942
The sinking of U-176
May 15, 1943
Revolution of '43
June 4, 1943
The Strike of Fallen Arms
May 5–11, 1944
The Panama Canal strike
June 1945

Strategically, Panama was the most important Latin American nation for the Allies because of the Panama Canal, which provided a link between the Atlantic and Pacific Oceans that was vital to both commerce and defense. Brazil was also of great importance because of its having the closest point in the Americas to Africa where the Allies were actively engaged in fighting the Germans and Italians. For the Axis, the Southern Cone nations of Argentina and Chile were where they found most of their support, and they utilized it to the fullest by interfering with internal affairs, conducting espionage, and distributing propaganda.

Brazil was the only country to send troops to the European Theater, was instrumental in providing air bases for the resupply of the combatants, and had an important part in the anti-submarine campaign of the Atlantic. Several other countries also had skirmishes with German U-boats and cruisers in the Caribbean and South Atlantic. Mexico sent a fighter squadron of 300 volunteers to the Pacific, the Escuadrón 201, known as the Aztec Eagles (Águilas Aztecas).

The Brazilian active participation on the battlefield in Europe was sought after the Casablanca Conference. The President of the U.S., Franklin D. Roosevelt on his way back from Morocco met the President of Brazil, Getulio Vargas, in Natal, Rio Grande do Norte. This meeting is known as the Potenji River Conference, and defined the creation of the Brazilian Expeditionary Force.

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