LIBERTADORES AND DEVELOP
...
PROGRAM CHANGE
radical division (Tucumán 1956) posed to his players the need to justify it historically ... The Convention of Tucumán shortly before Frondizi formu-Gómez, was adopted as de1951 electoral platform the ... program akin to the declaration of Avellaneda in 1945.
Frondizi ... (09/02/1957), three months after the split: "The country will understand that this crisis is final, we are different. We speak two different languages, we experienced mixed feelings ... "
... In response to criticism ... (by) the diversion of the platform adopted in Avellaneda ..., the National Convention UCRI ... (26/08/1957) ... (adopted and incorporated) the statements and speeches ... (Frondizi ) incorporating the party program and was buried ... the Declaration of Avellaneda. Frondizi ... (exposed) repeatedly ... this new approach to national problems ... (14/01/1958) ... "... (to) get the country to handle ... the key economic levers such as energy, oil and steel trade, we will call to work ... those who wish to contribute their technical expertise and capital ... from whatever. Our government will be widely welcomed and legal certainty, to guarantee an independent judiciary, the economic interests that wish to participate in the production of our wealth. The country needs ..., the contribution of foreign capital, which will set out the guarantees ... will not admit any attempt that seeks feudalize our economy ... "
... ... doctrinal conversion UCRI materialized in December 1960 when National Convention ... in a message passed Chascomús Frondizi ... (about) the need to abandon obsolete ideologies ...
FACTS AND PROMISES
... (05/01/1958) the new president ... in the House of Representatives ... ... a post-program ... nothing was to say ... without ignoring the most contentious proposals, as if to drain the challenge he could not complain then hidden intentions.
... ... made a lengthy reference to the disastrous state of the economy and public finances. Announced that ... encourage ... (the) domestic savings, and would encourage the incorporation of foreign capital investment applied to the basic works ... the exploitation of natural resources, especially oil, coal, iron ... said it would assume the presidency of YPF to boost the production ... and reach self-sufficiency ... He called for urgent remedy the energy deficit ... ...
... (on) state enterprises ... ... not have new ownership, and ... these companies would be privatized, streamlined ... ... empr5esas not national, but would seek the input of capital clean them up
private ...
PETROCHEMICAL INDUSTRY
... mother industry in modern economies ... ... launches thousands of products ...
Practically, was nonexistent in 1958, barring any production ... ... YPF and military factories. The government passed Law 14781 Frondizi promotion of basic industries ... and ... the Decree 5039/61, which established the system of incentives for the petrochemical industry.
... from 1959 to 1961, seven filings were approved, with a total value of $ S140 million ... include a 'Petrochemicals Argentina SA '(PASA) ...' Imperial Chemical Industries 'and' Texas Butadiene. " Quintupled production of synthetic rubber, and ... saved $ 70 million annually.
forces and interests ... There was ... determined to lock the action of a government whose plans harmed the situation created since ancient ..., for example, those related to oil imports ... ...
OIL AND POLITICS
... December 1954 (Frondizi ... senses ... National Committee ... UCR) released its ... book "Oil and Politics." Under the doctrine ... (of) Avellaneda ... postulated the nationalization of deposits and the monopoly of the exploration, exploitation and marketing ... by YPF. With all the anti-imperialist literature ... of the time history, the abuses and crimes committed ... (by) the global political concessions to the big monopolies ... because the country was self-sufficient to get rid of these international cartels ...
... huge surprise announcement ... (of) ... Frondizi ... the ... (24/07/1958) ... to launch the ... 'Battle Oil '... drew the following table: "Argentina mind ... 65% of fuel ... it consumes. About ... 14 million cubic meters in 1957 ... ... 10 million ... (imported) ... oil and its derivatives ... (were) over 21% of imports, ... All resulting in stagnation, paralysis ... "
was necessary ... to reduce the cost of currency ... (in) importation, for which contracts had been renegotiated ... ... (with) the 'British Petroleum' a rebate of $ s5-... (por9 ... ... announcement cubic meter an agreement with the ... (USSR) and ... with Colombia ... (by) oil for Argentine products, ie without use of foreign exchange.
{
during Yrigoyen governments, and dealings were above and similar agreements: Bilateral Agreement with Mexico, D'Abernon-Oyonarte Treaty and agreement with the Russian company 'Iuyamtorg'}
... (on the) self-sufficiency, ... it certainly reached and any out the efforts and sacrifices that had to do.
The executor ... would YPF oil policy, which would be given all available resources and would be restructured to give the character of modern enterprise and free from political interference. But the country's resources were scarce ... "We do not have, therefore, not an ounce of gold in Central Bank YPF"
regard ... (the) private capital, indispensable ... (by) the insufficiency and resources ... state companies would work for YPF., which would deliver ... (all) oil from drawing ... and would charge her work in domestic currency or currencies.
... be forwarded to Congress a draft law on hydrocarbons
- solid and gaseous hydrocarbons are the exclusive property, indefeasible and inalienable right of the nation.
- The management and overall responsibility for national oil policy will be in charge of YPF.
- The provinces will share in the benefits ... ... of sites located within their jurisdiction.
- existing situations to 1 May 1958 will be respected, but not give any further concession.
THE BATTLE OF OIL
... While the focus was steel ... ... the urgency ... (by) oil ... (was) imperative to save foreign exchange. In 1957 he had paid $ s217-million ... imported oil (U.S. $ S317 million and total-fuel) ...
... (11/04/1960) ... "In the last ten years import-78650000 cubic meters of oil ... (by) ... u $ s1.776-million ... with this amount could have conducted the most ambitious development plan ... We have helped finance not only steel plant in San Nicolas, but also plants Salto Grande hydroelectric and Chocón, without recourse to foreign contribution ..., thermal and hydroelectric plants installed at strategic points ..., purchase of transport ships, modernize our military equipment, build bridges, roads and airfields, overhaul the railways, assist farmers. In short transform the country. " The calculation of Frondizi ... (is on) the dollar in 1960.
...
{Note that this is a president in defense of a policy adopted and that the author is an advocate of the president and the above policy, therefore corresponds to a rigorous critical analysis}
... ...
statistics of oil production and imports shows that from 1907 ... at the beginning of the operation ... to 1957, the country needed to import growing volumes until 1957 ... barely covered production from ... (35/45 %) ... of consumption, imports the rest, while ... (they had) reserves ... (by) 600 million cubic meters of oil and gas ... despite the low consumption, ... 0.75 meters cubic per person per year ...
The tax rate ... (to) ... oil was so fast, that in sixty days had signed the main ... (contracts) ... with private companies and had revived the production of YPF ... six months after its subcontractors began delivering its production to YPF, after three years was achieved almost self-sufficiency in 1963, only imported 1.7 million cubic meters ... (was) 6% of total imports ... against 24% in 1957.
CONTRACTS
whatever the grounds of urgency ... (of) Frondizi ... (was) a reaction ... the signing of contracts with Frondizi foreign ... in his book, ... (and) a strong tradition rooted in various sectors ... conceptualized detrimental to national sovereignty intervention of private interests - worse, if they were outsiders - ... ...
(a) ... the Frondizi oil policy, besides this question of principle, voiced strong criticism ...: The contracts were signed without competitive bidding clandestinely and without the approval of Congress ...
Arturo Sabato representing President (Frondizi) in YPF, said that of the thirteen contracts ..., seven were the result of tenders public - one reserved for international and other Argentine companies - and the remaining six were ... (by) direct negotiations conducted by himself and then by the prescient ... Aguirre Legarreta YPF and Bruno, in exercise of statutory powers of the Board ...
... (on) the submission to Congress argued that the signing of contracts of this nature is exclusive function of the administrative power and there is no legal provision providing for legislative approval. By contrast YPF statutes have conferred such authority to the Board ... The reason for urgency, on the other hand, indicated the need to avoid the instance of Congress which would have led to endless debates.
{
perhaps the issue could happen of YPF to avoid competitive bidding and contract directly. In addition, those of the author - Oden - is contradicted by Robert Potash, as the contracts went SI by Congress and approved as the government had a majority in both houses}
(THE SELF-SUFFICIENCY )
"The CONADE ... report on the 1965-1969 development plan (period Illia government ...) ...: Until ... 1956, output grows at 4% accumulative increases in 1957/58 ... 7% cumulative annual 1959/62 ... ... 31% ... (So) ... doubled in three years, reaching almost to self-sufficiency ... ... "
{previously the author had noted that the crucial issue was to achieve self-sufficiency and not who - state / special / national / foreign - to the production / operation}
... the production of oil and gas ... tripled, up from 5.6 million cubic meters in 1957 to 18.5 million in 1963 ... YPF ... (brought in) oil and derivatives ... 30.3% (average of the years 1922 to 1957), excluding the years of War 2, ... to 94.2% in 1963.
in 1958 imported 10.3 million cubic meters of oil and derivatives ... u $ s217 million ... in 1960 it imported only 1.7 million cubic meters per ... u $ s38 million. Three foreign companies ... produced in 1963 to 30% of the total ... ... The cumulative production of three companies in 1963 was 16 million cubic meters, for $ 200 million ... ...
(COST)
... ... Facundo Suárez (Illia government) ... the cost of crude ... (of) YPF was u $ s12, 30 cubic meter ... (for) 'Pan American' (USA) was U.S. $ s9, 32 ... and the average imported crude oil in 1971 was U.S. $ 20, 30 ...
{
least nine years later, the comparison should be with and cost of imported crude oil to the same date}
... private contractors ... {produced until 1972 since when?} ... more than 62 million cubic meters ... (for) about $ s1000-million Saving ...
... ... (in) 1958/1963 ... (by) contributions from the Treasury and utilities ... ... (por9 oil market that gave contractors ... the oil delivered by 'Pan American' cost YPF, under contract, or $ s9, 32 cubic meter, and sold it to $ s13, 65 ...
{It is assumed that contracts establish any provision of updated}
... The One Tennessee ... was paid $ 11, 64 ... and sold it to $ s19, 35 ...
... YPF was capitalized at $ 200 million ... ... ... that allowed drilling 684 wells in 1961 to 309 wells ... in 1957.
YPF production, oil and gas ... ... rose from 5.3 million cubic meters in 1957 to 11.3 million in 1963 ... spent ... u $ s1000-million ...
The
private companies operating in less than 9% of the world ... (and) for four years ... (producing) ... 30% ... (Total). The 4.7 million cubic meters extracted by firms in 1963, equal to what was YPF throughout the country in 1957 ...
{taking the figures given by the author, these findings emerge:
- 1957 - Production of YPF - 4.7 million cubic meters.
- 1963 - Oil production -15.6 million cubic meters. YPF net - 10.9 million cubic meters. Increase compared to 1957 total more than 300%. YPF net increase of more than 200%.
- 1963 - Production three companies - 4.7 million cubic meters (30% of production 1963). The company's percentage is not indicated by the author.
- It compares a company, YPF, against three foreign, different periods 1957-YPF - and 1963 - foreign - should be considered a year and disaggregated undertakings. In an egalitarian calculation could allot to each private company, separately, produced 10% of YPF which occurred six years earlier (1957 vs. 1963).
- It indicates that private companies working on the 9% of the reserves located, but does not say what percentage of these stocks worked YPF.
- Since foreign companies involved in oil activities in the country at an early stage the logical comparison should be given the previous performance of the private sector, ie the 4.7 million cubic meters of private production in 1963 should be connected to the private pre-production. So the comparison with YPF and at an earlier time does not seem the best option.
- indicates that no company had been responsible for horizon scanning to determine the oil at that time, "private companies had access to such information free of charge if he had done YPF?}
... imported oil in 1976 cost U.S. $ 100-... cubic meter, while foreign companies ... whose contracts with the government of Frondizi were reestablished after the government annulled by Illia, deliver the product to YPF ... u $ s10-cubic meter ...
{
Illia's government and private compensation to what happened to the compensation contracts to be restored?}
the "delivery"
As soon ... is ... (knew) the message of 24 July ... (with) the first talks with private companies, criticism erupted ... Balbin ... UCRP National Committee ... "The contracts are irredeemably null, not binding on the country and will be unknown in all circumstances under the UCRP." (08/26/1958)
... (also added) ... the 'Association Democratic Argentina "... criticized the contracts ..." secretly signed "... (in the same sense) the 'Center for Energy Studies General Mosconi' ... (and added) Alfredo Palacio, ... Sanchez Viamonte, River ... ... Perette and Silenzi of Stagni Someone suggested ... ... impeach the president ... (And) ... I KNEW (YPF workers) defend the state monopoly ... (also) the Socialist Party ... the Progressive Democrats and the Communist Party. The same associations of university students are professionals ... (YPF declare that the state-owned ... (can) ... achieve self-sufficiency, and object to the contracts.
two great acts are made ... (called) by the Movement Defense of Oil, and ... the UCRP ... (shouting) ... "YPF if Standard no" ... legislators ... centrist parties (several provinces) object ... (and) harmful to federalism, thesis shared by some provincial lawmakers.
... (in support of the government) ... ... The Christian Democratic Party and conservative leaders as in Lima ... ... Brazil and Uruguay praised the courage of Frondizi ... Alzogaray (also supports it but was overruled by his party) the Independent Civic ... ... ...
... more criticism than praise ...
shy ...
... some military contracts are aligned against ... (including) ... the commander in chief, General Toranzo Montero ...
IN DOUBT.
"Not all opponents of the government's policy was an instrument of pressure from international monopolies" ...
{in the book she is quoting page 232}
sincerely concerned
... about the impact ... and fellow legislators ... (official) bombarded with questions and doubts ...
Frondizi
... a director of Industrial Bank chose to resign ... (a) vote ... guarantees that the bank should provide contracts as collateral ...
{Note the grantor guarantees and assurances given to the dealer}
"The harsh reaction to contracts ... ... encouraged by professionals, officials of YPF, the Mendoza Branch of SUPE, whose leadership was Communist influence ...
{page 234}
... said ... (30/10/1958) ...
arrest
{
{
another major strike was the bank - why cause ? - The strikers were 'mobilized' and taken to military installations, would they be Communists?}
COMMISSION INVESTIGATING
... 1964, the House of Representatives ... passed a bill in the bed of the UCRI ... (that) ... created an investigatory commission determine ... (the truth of) ... the accusations of irregularities and fraud in the oil contracts signed ... ... (by) Frondizi.
...
Frondizi, Frigerio and Sabato said ... the first refused to submit to questioning, arguing that Frigerio and Sabato would relate to the details ...
... ... (there were) a number of opinions ... The most ... (UCRP.) and others, found evidence of irregularities and advised ... (to intervene) to the ordinary courts. The minority ... (UCRI.) upheld the legality and desirability of contracts. There were three individual opinions ... (opinions) and the minutes of the Committee were referred to court ... the case was dismissed by prescription.
DISCLAIMER THE VICE GÓMEZ
... ... ... Gomez ... revealed (12/11/1958) the Acting Minister of Interior and Defense, Alfredo Vitolo, who had a plot ... (military) to overthrow the president ... Frondizi ... (location) Gomez to reveal the source of your information ... in front of the secretaries ... (and) secretaries ... (military) of the three weapons ... (Gomez) refused ... the ruling party (UCRI.) ... drove ... Gomez ... (and) agreed to resign, but not before negotiating a letter of Frondizi in which exempted him from guilt ... ...
SOURCE
Isidro J. Oden
Ediciones La Bastille
Buenos Aires, 1977
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