THE ARMY AND POLITICS IN THE ARGENTINA
1945-1962 - DE PERON Frondizi
... ... The Five-Year Plan, launched ... two years before had gone down ... only a substantial infusion of dollars would revive the plan ... ... In 1948 Peron and his advisers hoped ... external conditions over which they had no control: the possibility ... (of) a war, or ... of Marshall Plan funds to ensure the purchase of Argentine agricultural products ... ... None of these prospects to materialize. An alternative solution ... ... (were) ... foreign capital ... but ... Perón had committed little to reduce foreign investment and to change course suddenly. Early in his presidency, Peron had not excluded ... (the) ability to associate a decree foreign capital ... ... (prior to his inauguration) ... had created an instrument ... the 'Mixed Economy Company' ... (with) private capital and even ... (with) foreign investors to promote public interest companies. The president (company) ... and at least one third ... (of) ... board would be appointed by the state and should be Argentine natives ...
... ... (in) ... ... the first eighteen months of his presidency ... Peron was ... inclined to activate the entry of foreign capital ... support ... the reorganization of the railroads included in the Miranda-Eady acue3rdo ... and discussed proposals for attracting private investment ... (U.S.) to the development of the oil industry.
YPF
... the hostile reaction caused by ... (the issue) ... railway ... late 1946 ... Perón began to think ... ... proposed entry of foreign capital in an area such as oil ... ... military experts ... (and) civil guaranteed the energy section of the Plan ... (saw) that the country was ... (of) fuel ... necessary to meet the demands long-term ... ... gave priority to developing ... energy sources renewable ... Perón accepted this point of view ... But weeks after analyzing other solution ... fuel requirements in secret talks with the ambassador of ... (USA), ... ... Metzger Messersmith and ... ('Standard') ... Argentina was increasingly dependent on oil imports ... ...
... remained to solve the problem of domestic opposition ... If it was true that Peron was trying to create a joint venture with capital ... (U.S.) must believe that he could contain the backlash against ... identifying it with the opposition party Radical, ... the most forceful advocate of YPF, and appealing in terms supporters to their own supporters.
... In a top secret clearance, Messersmith said ... (on) ... (these talks) ... "Peron ... had come to the conclusion that it was necessary to give any kind of encouragement to foreign oil companies to spread here asked if their programs ... ... ... companies would be interested in a joint enterprise ... ... "
... ... ... to discuss Metzger a memorandum prepared by his company two years ago ... the 'Standard' ... expressed interest and form a joint venture and ... conditions for a possible settlement ... ... the creation of a society ... (with) ... exclusivity of ten years for seeking of oil in the area south of parallel 49 º South latitude.
The 'Standard' would provide all working capital through a loan without interest. The government would receive 12% royalties for all oil discovered and 51% of any investment gains after the original loan 'd been repaid. General management ... should be appointed by the five private members (of) directory. The government would appoint the chairman and two directors, ... the ... (chairman) would be entitled to veto ... (art. 8 º) ... (in the meeting) ... ... Metzger Peron and attended by the president of YPF, Albariño general, and the Director General Energy Colonel Barefoot ... ... (the) ... 'Standard' ... (estimated) that the provision of veto ... (art. 8 º) was disturbing and investment to ... ... (u $ s 25/30 million) was the revision ... of this article ... delete article not involve a mixed company ... in a joint venture, but a poorly disguised concession to the 'Standard' ... (and should) ask the Congress to water down a statute already considered inadequate ... but ... ... they were confidential negotiations, already voices raised against it in Congress ... (the) block UCR ... requested the Executive ... the rejection of any proposal for the formation of joint ventures, ... also requested an investigation of all problems ... and activities of international companies ... asked to convene a special session of Congress to consider the expropriation private companies and the nationalization of the industry.
... ... Perón reassured Ambassador Messersmith ... there was no hope that YPF would satisfy the country needs ... that its operations had been unsatisfactory for many years and that the best solution ... (was) to reach an agreement ... (with) ... preferably foreign companies (USA) ... (the possibilities) were limited. Foreign companies demanded guarantees ... ... (and protection) any new investment. In September ... (1947, Peron was declared) ... convinced inability to pass ... (the) law ... ...
Peron ... ... found resistance within his own government had strong defenders ... YPF ... (in) ... the case: the ... Secretary of Industry and Commerce, Joseph C. Barro, Minister of Finance, Cereijo; ... Secretary of Aeronautics, the Hill ..., July Conessa ... YPF tentatively in front of ... all ... began a campaign to end ... with the threats to the autonomy of YPF. The first step was a notice to all private companies ... (09/30/1947) ... (on that) ... the agreement ... (to) ... distribution of oil ... in the local market would terminate at the end of six months notice required.
Secretary Clay ... (gave) a categorical statement to private companies ... ... in the sense that ... (the) ... oil in the future would be the monopoly of government and ... if need be, private property would be expropriated ... (the problem) was to ensure that the president supports that view.
Expropriation ... was tested in two rough cabinet meetings ... the first ... (4/12/1947), the Secretary Barro, Minister Cereijo and secretary of the Hill ... for expropriation ... (opposed) ... President Bramuglia, Miranda and ... Maroglio ... Central Bank President. The rest of the cabinet ... (though prone to expropriation) abstained ... the advocates of the monopoly YPF ... (started a move) to ensure that companies voluntarily put invents.
local holders of the 'Standard' ..., 'overseas' and 'Shell' were summoned to the office of Miranda ... ... (05/12/1947) at that meeting ... ... Conessa Barro and explained that the government I wanted to announce the ... December 13, the 'Day of Oil' to ... Argentina had recovered all of its oil properties. It asks private companies to reply before 9 December if they were willing to sell its producing wells in exchange for a distribution agreement and refinancing with "generous profits," guaranteed ... (before consulting companies on) ... if a negative ... would mean the expropriation, officials said ... ... no ... (were) able to give an answer.
{
seems difficult to do something like this back Perón and also a naive move
}
embassy ... ... (USA) ... asked ... (before) ... Chancellor Bramuglia ... (about) whether the president approved the plan ... and to protest ... (for el) little time ... (to respond). The British ambassador ... adopted the same attitude. Bramuglia said ... (the) president ... was not aware of the requirements ... and ... the president had no intention to expropriate oil or any other property ... (U.S.).
One day after ... (time) awarded ... 'Standard' ... (and) 'Shell' rejected the request.
... (a new) ... Cabinet meeting ... members ... ... nationalists exerted strong pressure on Perón to buy or expropriate foreign-owned wells ... (and) a program of nationalization of all oil resources ... Argentine War Minister spoke with power and in opposition ... warned that any threat of expropriation or forced sale would be detrimental to the country ... (Peron) ... citing the refusal of the companies ... and the bitter protests ... (Of) embassies ... made the final decision.
... ... (about) ... oil Peron was much more pragmatic than his public rhetoric about the economic dependence
... ... ...
The army's role in the controversy raised by the ... ... oil was ... (of) ... relative passivity.
... ... Conversely Secretary of Aeronautics, determined to give a monopoly on oil production to YPF.
...
to these political-military tensions compounded the problem of complete the task of the Constitutional Assembly ... had begun the work of revising the Constitution ... ...
... the amended Constitution incorporating two chapters, ... on the rights of workers, families, elderly and education ... ... and ... on he rights of ownership and economic activity ... reflected the statist and nationalist fervor of the authors assigned to the state direct control of foreign trade, the permanent ownership of all sites, subsoil and natural sources of energy, including oil reservoirs, and the original and inalienable ownership of utilities. Such companies, usually in private hands would be acquired by the State ... (by) purchase or expropriation ... ... at a price to be deducted from the original investment cost of both the amortization and any gain is considered excessive ... ...
The satisfaction ... (Peron) ... before the reform was, ... reservations ... Peron was co-conforming to the formula determined the compensation to utilities ... (of) ... Art. 40 (threatening) ... to eliminate difference between expropriation and confiscation ...
is abroad}
... raised protests from the international community. The paragraph had been inserted at the last minute ... and despite the objections ... (de) Peron ...
Unable (or unwilling to) ... provide clear support for unpopular companies ... (foreign) ... like conspicuous' Compañía Argentina de Electricidad "(CADE), Perón ... ... (said) to the governments of Belgium, Sweden, Holland and ... (USA) that while he was in power would never make use of the controversial constitutional clause.
{or was an excuse either - and yet - was healing health ...}
In an attempt to eliminate the concern caused by Art. 40, ... Perón encouraged an executive ... Sosthenes Behn ... (of) ... the "International Telephone and Telegraph Company '(ITT) to propose a legislative interpretation could submit to the Congress ... ... ... this attempt ended in failure.
... ... ... Second Five-Year Plan incorporated the concept of ... (bring) ... private capital, both internal and external ... the State would "The right conditions and opportunities favorable" ... enabling a change of direction away from the economic nationalism of recent years ... in 1953 ... Perón asked Congress to enact a new law on foreign investments and began to speak openly in favor of ... ... foreign investment in the sacred field of oil production.
... ... the decision of Peron and his economic advisers to attract foreign capital for the development of basic industries ... (this is implied) the need to strengthen relationships with ... (USA) ... at ... (07/1953) Milton Eisenhower ... was received with great cordiality by Peron ... ... (and considered) ... the problems and prospects that investors find ... (the) ... a new draft investment law submitted ... the ... (07/14/1953) ... the law guaranteed ... investors to transfer profits from 8% (eight) per annum, and after ten years ... the withdrawal of their investments and a series of assessments ... the law gave broad discretionary authority of Parliament ... to enter into agreements with potential investors.
... Of particular interest were their projections on the oil industry ... ... questioned radicals ... that the project ... (left) the principles ... (of) ... ... defenders ... Art. 40 (lawmakers) voted overwhelmingly ... ... in ... terms requested by the government.
... ... was very significant in military circles believe ... ... (the) state of the oil industry. ... An article in the 'Journal of Information' (... from the War College), May / June 1953 ... noted that between 1946 and 1950 the volume of production ... ... oil ... public and private sectors had risen a 40% "in accordance with all ... ... (the) First Five Year Plan", when in fact the total domestic production had increased only by 13% ... and expressed confidence ... "is not far distant day when the oil industry ... free us from foreign supplies," ... did not take into account the technical and financial obstacles that goal ... to ... ... (this) ... made even more difficult to justify the need for foreign capital inflows to the oil industry ....
{note that coincided with Peron Army Aviation while opposed}
... ... late 1953 Perón sought to advocate for this cause ... (by) the growing gap between production and domestic consumption and sale of foreign currency huge ... that may be reserved for other development needs through rapid increased production ... (and) ... that would work for foreign companies ... ... YPF.
...
The dilemma ... (de) Peron ... was ... as meet the expectations ... (of) his earlier nationalist rhetoric ... and ... provide the conditions and guarantees which attract ... (the) ... ... foreign companies. The initial strategy for the study ... ... of the investment law, was to ... agreements with independent operators rather than with major international companies ... in the assumption that the independent companies ... not press for concessions and would be willing to work for YPF through service contracts that the government could justify to the public ... at a time ... seemed about to sign with the 'Floyd Odlum. " But until ... (10/1954), more than a year after the enactment of the investment law was not ... remember ... with any company ...
... ...
The government had decided to rapid economic development ... ... (03/1955) established in accordance with an oil company ...
... ... ... Peron, announced it had reached an agreement ... ... The contract signed by OJ Haynes 'Standard' ... and Industry Minister Orlando Santos, approved by Peron on ... (05/06/1955) and submitted to Congress ...
The contract attached to the company ... ... the exclusive right to explore, extract and exploit oil in an area of \u200b\u200b... 50,000-square miles south of Patagonia. Petroleum and other oil ... should be given to ... YPF, up ... (cover) ... domestic demand ... from ... (this coverage) ... be permitted exports. For oil ... ... Argentine pesos YPF would pay 15% less than ... (fixed price) by the 'East Texas' ... turn YPF would receive 50% of the profits ... (for) 40 years of the contract. Criticism raged ... ... (from all sectors) ... ...
... the government did not consider necessary reform Art. 40 ... (thought) that the agreement ... was a contract for services that did not involve the transfer of ownership of oil ... (government military officials) visited ... (a) ... ... to transmit Morales Gómez reactions military circles. Gomez Morales ... (offered in one) ... Conference ... (and explanations) ... officers ... but it ... (also) ... it was agreed that certain measures should be modified.
... the contract ... was ... the Congress ... (keeping) these ... measures ... when became clear that even the Peronist ... (in) Congress were not too willing to approve ... (Peron) authorized the economic team ... ... (a) listen to recommendations for changes, ... (is) wrote a series of amendments ... (and) ... reopened negotiations did little to appease the discontent ... the armed forces.
...
{WITH Libertad y Desarrollo
} {
after Peron's fall theme continues with almost the same players, but they begin to vary in their positions}
... Wing 'frondicista ' of ... (the UCR.) ... was represented at the National Advisory Board, even after the June 1956 execution, ... (the 'frondicismo') began to ... (be) a strong critic of the ... 'Liberator' ...
alliance
... ... between ... Frondizi and economist, journalist and businessman Rogelio Frigerio ... (who) as director of the weekly ... "WHAT" ... (with) contributions ... ... Peron's supporters mounted a systematic attack on ... ... government for its record against the Peronist economic measures ... (Against) the industry and plans to sell the domain Argentina on natural sources of energy ... ...
Frondizi In such circumstances ... ... (presented) as an opponent ... (of) ... the ... 'Liberator' ... announced its intention to grant a character 'national popular' the economy ... ...
Figure Frigerio key ... was ... ... (with) ... an economic and social 'Development' transformation ... to ... ... through the expansion ... industry and the weakening of interest ... agricultural and import ... ...
{PACT}
Whatever the terms of the covenant ... Frigerio Perón negotiated Frondizi ... ... ... offered an overwhelming victory in elections ... (23/02/1958 ) ... ... The UCRI managed 133 seats of the 187 deputies in ... ... the government in all provinces and ... all the seats in the Senate ... that would have occurred in the absence of the covenant only conjecture ... ... ...
The inaugural speech ... (of) ... ... Frondizi out the main objectives of his government and ... specifying the measures by which he hoped to put the country on the path of national development ... ... ... main interest in the economy ... the need to develop heavy industries and achieve self-sufficiency in oil: Frondizi ANNOUNCES INTENTION TAKE RESPONSIBILITY FOR DIRECT YPF ... also said that foreign capital would be needed to accelerate economic growth ... ...
frondicistas Among many ... especially of nationalist or socialist, began to spread a feeling of disappointment as the new government revealed details of its policies Frondizi had mentioned economic ... ... the need to attract foreign capital to accelerate industrial development, had carefully avoided giving details of his plan. Many ... were ... (believe) ... that ... (Frondizi) would be loyal to the UCR program Avellaneda, who never would make concessions to international companies have exploited the energy market ... in the past and especially in the oil sector continue being the champion ... (of) a total state monopoly on production, oil refining distribution.
... as president, Frondizi had no intention of adhering to positions that could delay the rapid expansion of energy production ... (shared) ... the focus 'realistic' Frigerio ... ... (the) role of foreign capital in a developing society: was the purpose investment and not the source of capital, which determined the strengthening or weakening of the economic independence of a country ...
{reasoning correct principle, but in light of experience, we see that 'purpose ',' source '- and added -' agreed terms' investment SI make economic independence and a real development with lasting effects of the host / recipient}
... Investment in heavy industry, steel, oil, electricity, petrochemical and pulp were necessary. Given the depleted state treasury, the target ... was the rapid expansion of oil production. With experience and foreign capital the country would be ... (making) the self-sufficiency in a few years ... enabling the use of U.S. $ 300 million per year ... ... in other sectors of the economy ...
... Frondizi ... to ... (reach) ... ... preliminary agreements with investors, he hid his intentions ... His promise ... to consult with stakeholders before adopting specific economic measures and his commitment not to use economic power of the state arbitrarily were sidelined in the attempt to negotiate favorable contracts with foreign companies and ... present to the public as a fait accompli.
... Only 24 of July, in a televised ... Frondizi exhibited her oil program.
... this program ... (consisted of) ... a number of drilling contracts awarded directly (to avoid delays competitive bidding) to private ... ... (to which) ... is assigned to areas where YPF ... ... ... oil was located, other companies had to take ... (the) exploration ... in all cases should be given to oil ... YPF prices stipulated in the contracts .... Government spokesmen described these agreements as service contracts, denied that concessions were ... (and claimed) ... that did not involve any sacrifice of sovereignty ... (for) ... avoid ... (adverse circumstances) ... progress toward self-sufficiency Frondizi REFUSED TO RAISE TO CONGRESS CONTRACTS ... insisting that he already had legal powers to act ...
{remember that it had comfortable majorities in the Congress government, it could also happen that such majorities were unattainable in this topic ...}
was not just in the oil sector where Frondizi proposed ... (show) ... foreign investors ... clear evidence of a favorable climate ... was eager to reach an agreement with companies expropriated foreign ... in the past ... whose compensation or agreements were ... (still) pending ... 'ANSEC' and ... 'CADE' ... the previous governments had hesitated to act ... three days after the election asked the Minister of Industry that meets the demands of ... 'ANSEC' whatever the price ... when the minister asked if he would sign a document authorizing the agreement ... (Frondizi) categorically refused ... ... ... Aramburu left the task to his successor ... Frondizi ... in September rose to an agreement with Congress 'CADE' to train with their teams a joint venture power provider in Buenos Aires ... ... (with) 'ANSEC' ... resolved ... an agreement ... (with) ... owners (U.S.) reinvested ... part ... (of compensation) ... in a plant of 300,000 kilowatts in Buenos ... Aires.
{
few years after Martinez de Hoz, who would intervene}
... ... (a) within six months of his presidency ... (Frondizi took one) ... ... drastic measures (11/11/1958) ... statement ... the state of siege ... (by) ... 30 days around the country ... was ... (by) ... ... challenged the workers of YPF in Mendoza ... (by not lifting a) strike ... (stated) since its illegal ... ... objective was ... (the un) recently signed contracts with two companies ... (USA) to produce oil in areas where YPF had proved the existence of reserves.
... ... on ... (11/10/1958) ... the '62 Organizations' ... (Peronist) ... supported the strike ... (while) the conduct of the 'Supe' proposed lifting the strike if the government ... ( listened to) the objections ... and ... not to retaliate against the strikers ... Frondizi ... ... refused and declared a state of siege. In the early hours of ... (11/11/1958) ... the police had beaten in the federal capital and provinces ... ... arrested hundreds of people ... ...
cause for concern ... was the barely disguised violation of ... (the Constitution) ... Claiming that the Congress was in recess, ... (used) ... a decree to declare (the state of siege) instead of requesting authorization ... (to Congress) ... as stipulated in the Constitution. In fact, Congress was in session, but not met in the early hours of ... (11/11/1958) ... President sought to obtain approval after the fact, and obtained the same day in both houses, dominated by the UCRI.
The government justified these measures ... ... to ... threats of anarchy and subversion ... Interior Minister Alfredo Vitolo ... could not provide concrete evidence of an imminent threat ... all ... like a ... (conspiracy) ... was the puzzling behavior ... (of) ... vice president, Alejandro Gomez ... ... (which) had been in disgust ... ... Frigerio influence on the president and disapproved of the policies ... (of) Frondizi ... (About) ... the power contracts, the University and ... oil. In conversations with the president ... and meetings ... he had not hidden their displeasure and the possibility of resigning ... ... had warned the president that if he admitted to make the contracts ... ... (to) ... Congress, he, Gomez, resign.
... ... ... began to spread rumors that he had discovered a plot to impersonate Frondizi Gomez in a coalition government ... the ... (18/11/1958) ... the vice president raised his resignation to Congress.
... ... The attacks ... Gomez, appear to have been orchestrated by Frondizi or at least ... with s approval and consent.
... ... ... Yes ... Gomez had given up ... (immediately, 11/10/1958) to protest the management of oil contracts would no doubt ... ... (split) ... weakened the party and government support Congress ... if it was possible to pass the vice president as a traitor ... Frondizi could eliminate the position with minimal risk to party unity.
... ... got rid of an employee who was becoming risk in ... as the months passed and each time the government belied its platform ... ...
The genuine purpose of the siege ... ... would be revealed ... When ... (to) 30 days set in the original enactment ... replaced by an indefinite extension - term that lasted until ... ... ... Frondizi's dismissal - it became apparent ... the desire to avoid future resistance to unpopular economic measures.
... ... (Frondizi) ... announced ... the ... (12/29/1958) ... that the government initiated a program stabilization required fundamental changes in ... (the economy) in force and affect all sectors of society ...
The stabilization program was in fact the price charged to Argentina by the ... (IMF ) and the Treasury ... (USA) ... (by) the financial support necessary to resolve the crisis in the balance of payments.
... ... The reward was a financial package from the IMF. and official and private banks to ... (USA) ... (by) ... U.S. $ S329 million ... ...
As has been common in Latin America remedies prescribed by the IMF. produced a bitter reaction among the working class and low income sectors.
... also announced government's intention to get rid of unprofitable companies that had been acquired at the time of Peron. For those working in these companies and for many Argentines, those companies accounted for part of the national heritage should be preserved and not turned over to private hands, whatever the deficits that occur ...
A. Potash
1981 Editorial Sudamericana, Buenos
Aires 
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