Discusses the great change and growth that Latin America has experienced since the 1960s, which has changed the context for U.S. Latin-American relations. Academic visions of the potential for explosive revolutionary upheaval or the view that Latin American societies were too traditional and conservative to change fast or much at all are now outmoded. A new complexity of local threat perceptions has disturbed the context for U.S. security assistance: there is no longer a shared threat that merits major hemispheric defense or internal security programs, and instead Latin American governments may occasionally regard certain U.S. interests as a potential threat. The formulation of a moderate, "correct" security relationship based mainly on political requirements for goodwill and interdependence is needed. The benefits to the United States of such a relationship are discussed. 20 pp.