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Frondizi NEW ARGENTINA - 1946/1955. VOLUME II

ARGENTINA NEW 1946-1955 Volume II



ENERGY

In January 1946 had structured the National Energy Authority, comprising four agencies: the State Gas, Solid Fuels and Mineral, State Power Plants, Plants and Derived Fuels ... Added ... (YPF.) ...

The body was under the leadership of Colonel Bartolome Barefoot ... (in 1947), Power Plant would join the Irrigation Department to form a new company autarkic: Water Energy.

In place of the National organization was created National Energy Company. Distributions were maintained as above, but by changing the internal administrative structure without changing its autarky.
... ... Article 40 of the revised Constitution established the domain of the Nation on oil and other energy sources, but they were not expressly prohibited concessions, and secured the complete state monopoly of oil exploration.

Minister José C. Barro presented to Congress in 1949, an energy plan, whose objectives were to: self-sufficiency through the orderly use of all resources, replacement of perishable sources for which they are not, use of hydropower potential, production and rational intensive Liquid solid fuels; rationalization of consumption, state domination of the energy field.

In 1952 began channeling political indefinable ... by creating a national mining authorities (Decree No. 5598). Started operating in Rio Turbio coal mine. At that time, the British were importing coal for the railroads stone ... for you the war years, YPF. worried about the farm ... (of) ... ... oilfield discovered in 1887 (national surveys dating back to 1921) ... A special department was created in YPF. (1943) for ... ... (exploration) and its operation began in 1947 under the aegis of Solid Fuels and Minerals. Homes and factories were built, ... took machinery. Chile provided an outlet to the sea in Puerto Natales. But our government decided to build a way ... (railway) to Puerto Deseado.

not only decreased the import of coal ... to railways, but also for the production of gas, ... began using natural gas from oil wells that came from Comodoro Rivadavia ... (by) ... new pipeline. Manual work ... (in) ... these sites was replaced by machines ...

Prior to Peron, the Argentine government had taken over the facilities ... (of) ... the 'Primitive Gas Company' (05.03. 1945) that ... (did) ... to depend ... (of) Gas Service Federal Capital YPF dependent ... later became the National Directorate of Gas del Estado (January 1946) ... (is) ... ... proposed building a gas pipeline between Buenos Aires and Comodoro Rivadavia ... (planned) ... the work in six months ... (was built) in less than three years (21/02/1947 to 12/29/1949) ... (cost) ... u $ s 50 billion, and at that time was her pipeline longest in the world.
...
Among the works scheduled for the First Five Year Plan ... construction of the pipeline included the Dry Canyon-Buenos Aires ... that paralyzed imports of coal gas.

The Central Bank and U.S. oil interests

"According to ... Silenzi of Stagni, just assumed ... Perón established contacts with international oil ombudsmen. The negotiations do not ... (progressed) ... for foreign policy reasons and because of the lack of trust in government by ... the 'Standard Oil' ... spread the rumor that they planned to form a joint venture ... (YPF. - 'Standard Oil') ... (is) ... the Commission was ... Pro Monument to General Mosconi, whose main purpose was to defend the traditional oil policy Argentina ... "

{
would be good to clarify that the author meant by" traditional Argentina's oil policy "and that 1946 only had two records: the period 1916/1930 and the other precedes it and the case, both totally opposite ...}
... "(another) ... attempt had taken place ... (where) ... ... visit the Texas oilman Glen Mc Carty, who is intended to award all the extension of national territory. YPF's engineers. opposed his objections to this initiative. The government used to justify these projects on the grounds that ... (USA) ... (refused) to provide machinery and elements to YPF., the only solution was the delivery of our fields to foreign companies "

" According to the findings of Commission of Inquiry formed after the fall of Perón, ... chaired by Major Noailles, in mid-1949 ... Peron was in talks with oil companies ... (USA) ... "

{the author explores in a sale of $ s 100 million gold coinage, which certainly existed, it is debatable what is the assessment?. I am part of a generation of Argentines who grew up knowing of a man whose name was "the fugitive tyrant," meaning that our childhood, we live in contradiction. The Commission of Inquiry to mention the author head shot count suits and dresses and Perón and Evita pairs of shoes. Surely the sale of coins there, as no doubt also existed: the inconvertible pound and its economic / financial for our country. There was also no doubt Ambassador Braden, who was not an isolated man, but he held a dual representation: the 'Standard Oil' and policies taken by the Department of State - ie the U.S. - which has been storied including by Juan Carlos Escude. Also the author - Santos Martinez - use the Prebisch report on Argentina's economy in December 1955, but ignores the work of Jauretche: "The Plan Presbisch, Return to the colonial period, if only to refute it.

In my opinion for a better assessment would be more fair and just based on the terms of the contracts 'California'. Like Peron because he is considered (by some) the initiator of the "Third Position", compare the terms agreed with the 'California' in connection with the agreement of 1930 signed with Russia Yrigoyen (Yuyantorg) that the provision of fuel meant that the country needed to $ 0.11 cents. liter when the price of gasoline in the country, was $ 0.29, after the price war with foreign companies operating in the country.}
...
OIL POLICY (Peronist)

In 1946 Peron ... ... ... oil policy was not specific. The subject was not included in the First Five Year Plan proposed the nationalization ... No ... but a policy of joint ventures. Companies ... submitted proposals ... (even) ... demands and pressures for increased ... ... prices, limitation of tax reserves, predominantly in the import, etc. The government ... believed in the rapid replacement of oil ... atomic energy.

In December 1947, agreements were reported in 1937 ...

YPF
... ... was losing individuality ... (mostly) since 1950, with the creation of 'National Energy Company "(ENDE .)
... Decreasing YPF performance ...., Their perforations were insufficient ... That's how agreements were approved with ... companies ('Drillexco'). However, technical ... YPF. discovered new areas in 1950 ... (there is) ... a surge in production, prosecutors widened refineries, purchased or built another, as 'Overseas SA', 'Petrochemicals' ...

The fiscal tanker fleet ... (grew) ... until 1952 ... (there were shortcomings in) ... oil, cars, trucks, tanks ... Began replacement and refurbishment of YPF ... (despite having) ... with resources ... The main supplier financial ... ... (USA) ... established a licensing regime priority in which Argentina was in last place in both the list and on the supply ... (USA) ... is ... (transforms ) as the arbiter of Argentine oil development.
...
This situation facilitated the offense international oil monopolies ... (by) ... the limitation of tax reserves ...

NO COUNTRY CAN GROW WITHOUT OIL
Presbisch
... acknowledged that the pipeline 'President Peron ' in five years ... had saved "the consumption of 700,000 tons of coal and 400,000 tons of diesel oil" ... ... Perón: "Argentina's oil policy must be based on absolute conservation ... sovereignty ... Artina on our ground and rational and scientific and ... (the) ... State ... not share functions with other interests "(13/12/1947).

The 1949 Constitution established that ... the oil fields belonged to the Nation (Art. 40) ... ... Sampay: the constitutional ... "and creates a monopoly nationalized state of our oil ... "

... (Peron) ..." we do not need capital "(06/17/1948) ... (years later) ... Gomez Morales ...: needed u $ s 100 million to steel and ... 200 million for oil (December 1953).
...
Trusts to gains in Argentina ... The deficit surpassed 50% fuel ... the government should negotiate with international companies and impose ... subsidiary measures. Introduced a subsidy on imported oil and a ... (incipient) ... ration consumption ... Iran offered to supply low-priced, but Argentina ... with its own fleet, no ... accepted.

Given the energy crisis ... and the government opened negotiations with ... (USA) ... (with) ... ... mission led by Minister Cereijo the Second Five Year Plan ... ... (and) ... the 1422 Act foreign investment showed the intention to create favorable conditions for foreign capital ... ...

NEGOTIATIONS WITH FOREIGN COMPANIES

... message ... Congress ... (05/01/1954) Perón stressed the gravity of the energy problem ... oil was the most useful source of energy and its deficit had been "a constant negative factor in the negotiation of our flesh ... Great Britain ... we only sell oil according to its own need for meat ... (of) every $ s 4, - ... in imports one must dedicate to the purchase of fuel. " Argentina uses half the value of their exports to buy iron, machinery and "fuels that has 'reserved' by reason of a false 'nationalism' that did not quite understand" ...

Since September 1953 ... (succeed visits from the U.S.) ... Milton Eisenhower ... the oil expert John B. O'Connor ... (VP 'Desser Industries') ... (in) ... six months ... (walked) ... Argentine oil fields ... also ... Folyd Odlum, the' High Corporation '(representing the Morgan-Rockefeller' Caribe United Fruit Co. ') both incorporated ... (June 1954) ... THE' Petroargentina Inc. '. Signed a contract with the government of ... (25) years ... (for) ... form a subsidiary in the country of 'Atlas' working capital which would be blocked ...
pesos
{blocked pesos "in June 1954?, must see that the author is talking
}
... it was agreed a works contract and services for oil drilling ... work for YPF.
... In those days ... 'Standard Oil' ... presented ... another project to the government ...

... 1954 was approved the formation of the company "Schlumberger of Latin America." Talks were also made with 'Builders Consultants and Panama SA', 'Madlener' ...

(11.1954) ... Jorge Antonio in New York signed an agreement with 'Odlum' for the construction of a joint venture (Argentine-American) ... (for ) ... the exploitation of oil and uranium ... ... export and import operations ... the shares are divided equally ... This company in turn would train other companies ... Jorge Antonio acting by command of Perón.

{What the author implies when he says that "Jorge Antonio acted mandated by Peron?}
... These negotiations were also big oil, 'Standard Oil' ..., 'Royal Dutch-Shell' ... requiring large areas where they had recognized the existence of oil ...
...
All projects are presented under the new law ... (of) ... ... foreign investment - No. 14122 - ... (that) ... allowed out dividends abroad.

The 'Petroargentina' demanded that there were limits to such transfers or pre-determination of the exchange rate.

Perón had declared he was not interested who extracted the oil, "we're going to consume" ...

{
have said it shows little knowledge of the subject or something else}

... the country imported 50% ... Fuel ... (10/01/1954).
... ... Perón expressed a delirious optimism. Six months before his downfall told lawmakers (03/29/1955): "We found the solution ... (90%) of the problems ... country. Two weeks ago ... (have decided) ... three fundamental problems of oil exploitation ... ... ... electricity and steel. " It was the announcement of the agreement to be signed next month with the 'California Argentina. "

Meanwhile, Congress was done ... the National Productivity Social Welfare ... (21/31.03.1955, the result was) ... National Productivity Agreement ... (that) ... lay not put into practice ...

AGREEMENT WITH THE 'CALIFORNIA ARGENTINA'

... (07/1953) ... ... Milton Eisenhower visited Argentina, negotiations to allow entry to the country of the 'California' ... all negotiations ... of (1954 / 5) ... only took place on pre-contract with the 'California Argentina de Petroleo SA ', a subsidiary of the' Standard Oil '... Among the dr. Orlando Santos ... (Minister of Industry) ... and Owen James Haynes ... commitment was signed ... (04/25/1955) ...

PE rose to Congress (5/6/1955) the precursor Argentina ... The company was in name only ... had incorporated in Delaware ... ... with American capital of the 'Standard Oil' ... with the participation of the Argentine State ... (as a partner). The company would take his letters and accounts in English and ... (the) ... ... salaries (in dollars would be charged ... ... you gave:

  • The administration, management and sole and exclusive control over the mode and method operations ... the kind of machinery design and ... (same) ... privileges ... ... regarding the number, selection, placement, promotion, dismissal, remuneration, etc., staff ... no law governed Argentina for the personal social ... although ... (acting) on \u200b\u200bour soil. Area
  • granted, operating and investment: The area ... in the province of Santa Cruz, ... (with) ... an area of \u200b\u200b49,800 square kilometers (arts.3 and 5) ... (granted) ... extended for forty years ... at the discretion of the company for five years (Articles 4, 8, 27 and 63). The company had the sole and exclusive right to drill, operate, prospect, process, extract and exploit oil (Art. 5). The grant was known in the wider world.

... the current oil law (No. 12161) allowed maximum of ten grants permits searches of 6,000 hectares each ... (total) 60,000 hectares. The pre-agreement granted 4,980,000 acres. The Mining Code established that the term ... would be three years with two one year extensions ... ... ... as long as it had done serious work drilling (Arts. 381 / 385). The pre-agreement ... (attached) ... a word ... (very) ... than the maximum permitted by law.

  • Company was required to achieve a daily output of about two hundred barrels .... The Argentine State ... receive 50% of net profits ... {would be interesting to know how he plays the term "net" in determining earnings
    } ...
  • The company is obliged to invest $ s 4 .- million exploration ... (in) ... the first two years ... five million ... (in) the third and four ... in the room (Art.20) ..., it is agreed that any measurement of crude oil, gasoline and natural gas would be subject to publication English of the 'American Petroleum Institute' or ... 'California Natural Gasoline Association' ... finally assured her occupation "still and quiet" of the area granted, and the places and goods that are needed out of it (Art. 9).
  • Infrastructure and construction ... I was authorized to build and maintain power within and outside the area granted, various buildings and facilities, airports, airfields, wireless telegraphs and telephones, jetties and roads, etc ... It did not have to making such works available to others ... if necessary, could not be used by our aviation airports, Piers, jetties by the Navy, ... (telegraph and telephone) ... for Communications, and the ways the Army. On the other hand could organize and maintain a police and army under the flag of the company.

may ... grant, meant to grant a permanent operating base of nearly 50,000-kms. square with its own economic life ... for the exclusive use of the company ... if the country ... (source) ... the company ... (USA) entered into an armed conflict or is insufficient the Panama Canal ... The proximity to the Antarctica required particular attention.

  • YPF. and 'California': the ore extracted by the company ... would be sold to YPF. in dollars. Its price is determined by the East Texas oilfield least 5% (Art.42) ... The company is only obliged to deliver the products to YPF. river or sea port (the freight to the destination by YPF.) ... YPF. should provide the information and scientific and technical data ... (about) ... the area granted (Art. 10), with no indication of compensation ... for the huge expenditure incurred for the study and appreciation of ... (the area).
  • Exemptions and regime changes: ... privileges were granted in a range ... (as) ... ever ... (a) ... some company No official agency. In ... (the) Art.14 the company was authorized to import without prior authorization of any department or division and free of any restrictions, fees or taxes, "all machinery, equipment, including aircraft, marine equipment, cars, trucks , other teams ... that ... necessary, extending the franchise even the contractors of the company "... (also) ... the companies, employees and contractors could freely re "any time ..."
  • In Art.18 was prescribed that the company can remit the country ... (source) ... foreign currency funds it deems necessary, convert the funds to currency Argentina "at the exchange rate of the contract" and convert dollars to freely remit. And all these operations "freely and without encumbrances of any nature. The government is obliged to ensure compliance with these provisions by the immediate availability on the banks of dollars required ... you ... would cause Failure for completion of the contract ... as ... (to) ... Art.55 ... the Argentine government should pay the company each and every one of the following amounts:
a) that equals the total amount of U.S. dollars investment not recovered by the company to
date of termination of contract-
b) which equals "one hundred percent totalappropriations the net proceeds ... in the amount of
unrecovered oil reserves in the area of \u200b\u200bcontract. " In case of discrepancy, ... (the) ...
pay
by the Government "shall be determined by arbitration." If the number of wells ...
drilled is insufficient to estimate the amount of unrecovered oil reserves,
should ... YPF. start charge, promptly and continuously drilling in each of
areas ..
c) The government will pay 25% of the whole, oil produced and stored before the expiration of 45 years ... ... areas (recognized by) ... the company as
potentially productive oil
.

There were no similar provisions to protect the interests Argentine ... on the contrary, at any time ... the company could terminate the contract by written submission to the Ministry of Industries with ... thirty days in advance.

REACTIONS, CHURCH AND OIL

... it was a predatory contract that gave the company the company's most favored clause. Peronist Lawmakers demanded the ratification ... some of them were opposed repairs ... ... Bustos Raúl Ferro Joaquín Díaz de Vivar, Alonso and Picerno ... proposed ... (as opposition) ... substantial reforms to the contract ...

... to defend ... (al) ... Government, the Minister Santos ... (he) ... conferences Arturo Frondizi ... ... (radio 07/27/1955) ... said that the strategic basis and ... (the area) granted to the 'California' in Patagonia, were "the physical mark of servitude." That year his book, "Oil and Politics' ... eleven years after Frondizi recognized ... ... (which) had erred in rejecting Peron's oil policy ... (and) ... that this attitude was ... British influence, which was opposed to U.S. efforts to move ahead ... to extract oil Perón Argentine ... ... in his book 'The Power to Exile' ... said that ... he was the victim of oil ... "English Commercial Counselor in Buenos Aires said ... that any effort by anybody to ensure oil production in Argentina, will be considered in London as an attack on British interests you."

The 'Standard Oil California' wanted it to be repealed Art. 40 of the Constitution ... because ... (the) contract not circumvent the requirements of Art. 40 ... ... but could be called the Constitutional Convention to reform only Art. 40 ... (are) used conflict with the Church to promote the reform of the Constitution.
... Former Minister Santos acknowledged in 1968 that there was an "irreconcilable conflict between constitutional provisions and the position comfortable and very profitable for foreign companies" - face it - "get up the tremendous drama of our huge deficit energy production total ... for thirty-three years. "

Frondizi
When in 1958 he held the presidency, continued efforts ... (of) dr. Yadarola, Argentine ambassador to ... (USA) appointed by Aramburu ... (limited) to revive the office of parliamentarians Peronist 1955. The conventions concluded by Frondizi during his famous' battle of the oil, "but did not recur and aggravate the errors which had held preliminary contract Perón with 'California' in 1955.

SOURCE

Pedro Santos Martínez
Ed La Bastille
1976, Buenos Aires

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