(SANITIZED)

• Document Type: FOIA
• Collection: FOIA Collection
• Document Number (FOIA) /ESDN (CREST): 0005735529
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: June 24, 2015
• Document Release Date: September 28, 2011
• Case Number: F-2011-00354
• Publication Date: October 6, 1975

(b)(3)
ARGENTINA: ECONOMY MINISTER CAFIERO. WHO FOR A TIME HAD BENEFITED
FROM A RELATIVE POLITICAL LULL.' IS COMING UNDER INCREASING PRESSURE
FROM UNION LEADERS FOR FURTHER WAGE HIKES?Y
SPOKESMAN FOR THE WORKERS CLAIM THAT CONTINUING IIG.~ RATES OF
INFLATION HAVE BEGUN TO NEGATE HUGE INCREASES WON IN LAST SUMMER'S
CONFRONTATION WITH THE ADMINISTRATION. CAFICRO. WHO WAS A LANG-TIME
ADVISER TO PERONIST LA3OR.AND THUS FAR HAS ITS SUPPORT. SEEKS TO
STAVE OFF FURTHER WAGE INCREASES AS A VITAL PART OF HIS EFFORT TO
RESTORE ORDER TO T++E.ECONOMY. ALTHOUGH CAFIERO HAS ADMITTED THAT
WORKERS. PURCHASING POWER HAS DECLINED SINCE THE LAST INCREASE+ HE
HAS'ALSO DECLARE) THAT AN ADDITIONAL INCREASE IS NOT JUSTIFIED AT
THIS TIME AND THAT FURURE PAY NIKES SHOULD BE TIED TO INCREASED
PRODUCTIVITY- Y
IN CALLING FOR HIGHER SALARIES. LABOR ?EADERS ARE RESPORDING
TO:WORKER RESTIVENESS OVER THE CONSTANTLY RISING COST OF LIVING. THE
TOP UNIONISTS RICOGNI2E THE INFLATIONARY EFFECTS OF SUCH INCREASKS+
BUT THEY NONETHELESS FEEL'COMPELLE D TO ECHO THE WORKERS' DEMANDS
APPROVED FOR RELEASEL
DATE: 16-Sep-2011 .
 03
FOR MORE MONEY, LEST THEY LOSE CONTROL or THE LABOR MOVEMENT. THE
ADMINISTRATION HAS RESPONDED BY ANNOUNCING PLANS TO FORM A NATIONAL
WAGE INSTITUTE TO EVALUATE THE EFFECTS of INFLATION AND RECOMMEND
SALARY IUC EASCS WHEN IT DEEMS THEM NECESSARY?Y
FEARING THE LOSS OF ;IDS AUTHORITY, AT LEAST ONE TOP LABOR UEADER
HAS SIDED WITH PRESIDENT MARIA ESTELAPPERON IN HER RECENT POLITICAL
TROUBLES..IN HOPES THAT AY STRESSING HIS SUPPORT FOR PERONISM AND
FOR THE HEIR Of THE DEAD LCADER. HE CAN MAINTAIN FIIS PRESTIGE WITll
WORKERS. SUPPORT FOR THE PRESIDENT. HOWEVER, PLACES HIM IN OPPOSI-
TION TO ACTING PRESIDENT LUDER, UNO LIKE MANY INFLUENTIAL MILITARY
MEN FAVORS PERON'S CONTINUED ABSENCE. IF NOT HER OUSTER. CAFIERO MUST
REMAIN OUTSIDE THIS DISPUTE IF HE IS TO RETAIN LIBOR'S BACKING AND
AN EFFECTIVE ROLE ON THE LUDER TEAM?Y
MEANWHILE. THE ADMINISTRATION HAS ANNOUNCED THE-CRIATION OF'A
NATIONAL DEFENSE COUNCIL TO CENTRALIZE AUTHORITY FOR THE ANTI-
TERRORIST EFFORT WITHIN THE FEDERAL GOVERNMENT, PARTICULARLY THE
ARMED f.ORCES. THE COUNCIL. LE).BY THE ACTING- PRESIDENT, IS MADE UP
OF THE .DEFENSE MINISTER AND T$4E COMMANDERS OF THE ARMED SERVICES
 SF RET
LUDER HAS COMPLETED FOR THE TIME BEING AT LEAST THE REORGANIZA-
TION OF TOE CABINET BY NAMING SUPREME COURT JUSTICE ARAUZ CASTEX
FOREIGN MINISTER. THE APPOINTMENT FREES ANGEL ROBLCDO, WHO HAD BEEN
HEADING THE FOREIGN MINISTRY AS WELL AS TI?IE INTERIOR NINISTRY,TO
CONCENTRATE ISIS PULL ATTENTION ON THE LATTER ANDPPOLITICALLY MORE
SIGNIFICANT POST-