The present paper has focused attention on a number of concrete proposals suggested by these developments and susceptible of early negotiation and implementation. The steps proposed in the first two Sections involve no mutual credit commitments whatsoever and should, therefore, prove acceptable to most, or even all, countries of Latin America. They aim: 1. in Section I: at diversifying the present pattern of reserves investment abroad, and at maximizing earnings on such investments; 2. in Section II: at reducing the recently increasing net outflows of expatriate capital from Latin America, at stimulating partial repatriation of such funds and, more generally, at exploring more systematically the new opportunities for foreign borrowings arising from the reactivation of European capital markets (Eurocurrency markets, security flotations in foreign currencies and in units of account, etc.). The intra-regional credit commitments and inseparable measures of policy harmonization involved in the last two Sections are not likely to prove immediately negotiable among all Latin American countries, and have been explored primarily in the context of the Caribbean area. They could, however, be adjusted to similar sub-regional agreements among other countries, and should, in any case, preserve opportunities both: (a) for later linkages or mergers between such sub-regional groups; and (b) for closer monetary integration, or even monetary unions, among countries where such ambitious sovereignty mergers appear politically feasible and desirable. This is the main reason for preserving the identity of the present Central American group in a broader Caribbean payments agreement. While Section III focuses on local currency credit lines in support of mutual trade only, Section IV envisages broader forms of co-operation involving foreign exchange credits, offsetting national fluctuations in monetary reserves and bolstering mutually acceptable policies of economic development,... [ABSTRACT FROM AUTHOR]