[SANITIZED]NATIONAL INTELLIGENCE DAILY CABLE WEDNESDAY 9 NOVEMBER 1977 - 1977/11/09

• Document Type: SPECIALCOLLECTION
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 02993938
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 11
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: November 9, 1977

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ROUTING
TO;
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DATE
INITIALS
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ACTION
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FILE
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(Security Classification)
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NATIONAL INTELLIGENCE DAILY CABLE
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Wednesday 9 November 1977 CG NIDC 77/260C
0 AI AI
Warning Notice
Sensitive Intelligence Sources and Methods Involved
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
0
11111.1111111)
131p_Seer Lr
(Security Classification
Amor Ar
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The National Intelligence Daily Cable is prepared in the
Central Intelligence Agency in cooperation with the other US
foreign intelligence organizations.
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National Intelligence Daily Cable for Wednesday, 9 November 1977.
//Slants indicate Noforn// Classification abbreviations precede
each paragraph. The NID Cable is for the purpose of informing
senior US officials.
CONTENTS
ARGENTINA: Problems With Labor
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ARGENTINA: Problems With Labor
The Argentine Government appears to have weathered
last week's widespread labor unrest in public sector industries.
Most striking workers returned to their jobs over the weekend
after the government promised wage talks and threatened harsh
anti-strike measures. The manner in which the government set-
tled the dispute opens the way for further unrest that would
test the military regime's authority and its determination to
continue strict austerity measures.
The apparently spontaneous strikes--which spread
rapidly to transportation, port, maritime, and power workers
in Buenos Aires and nearby areas--stemmed from a continuing
5
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decline in real wages. In its effort to control the most seri-
ous labor crisis since the military took over in 1976, the gov-
ernment extended to state enterprises the 40-percent "wage
flexibility" policy that it had granted to private firms last
month. Previously, public sector workers have not shared in
unsanctioned pay increases given by private employers to fend
off worker dissatisfaction.
A number of state companies have already announced
wage increases within the new guidelines, but the workers re-
portedly are dissatisfied with the pay hikes; many workers were
demanding increases of up to 100 percent. For the moment, how-
ever, most workers apparently have succumbed to the threats of
dismissal and to the argument that no wage increases would be
effective until after employees returned to work.
ment in a
Labor's continuing dissatisfaction places the govern-
precarious position. Any increases in wages create
pressures from other workers for similar treatment and thus
jeopardizes the administration's policy of limiting salary
boosts--a key part of its effort to reduce inflation.
Minister of Economy Martinez de Hoz warned last week
that the government would make no further concessions. The mil-
itary regime has stringent emergency legislation on the books,
but a strong assertion of authority would exacerbate the deli-
cate labor situation as well as harm Argentina's international
reputation.
President Videla may now have to contend with an up-
surge in illegal countersubversive activity by hardliners
within the security forces, who may decide to take matters
into their own hands. Although the administration has evinced
a desire to stop violations of human rights, it is not strictly
enforcing measures to halt excesses.
A further complication is the recent increase in
leftist terrOrism in Buenos Aires. One of the main goals of
the Montoneros organization has been to infiltrate the labor
unions, and the group is apparently trying to increase its
identificatiocers'r] by conducting acts of violence
and sabotage.
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Videla's military rivals--especially junta member
and navy chief Admiral Massera--may try to use the government's
current problems to undercut the President's position. Some
hard-line military officers are already grumbling that Videla
should have anticipated the labor problems and taken preventive
measures.
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Aer 11r
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