ARGENTINE POLITICAL AND ECONOMIC SITUATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001900330003-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: November 16, 2016
• Document Release Date: April 13, 2000
• Sequence Number: 3
• Publication Date: October 1, 1948
• Content Type: REPORT

I;LASSIFICATION
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Approved For Release{ 5j ~E Q Qr P W57R0011 j O 3
N IET
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CONFIDENTIAT
SUBJECT Argentine Political and Economic'Situativn
PLACE 25X1 A
ACQUIRED
This .t 4
E:r of 43 Cv f> r?
i?Cto, of C r:l.
Archlv.sl 0 L:e .r, ai
DATE DISTR. 1 October 1918
NO. OF PAGES .3
(The following information appears indicative of the reportedly increasing
tension within official Argentine circles and may affo
for the distrubances of the weekend, 17-19 September.
that the alleged unrest in the Army coincided with the belligere;
violent speech made recently by President Peron in Santa Fe In which he
virtually declared open war against his political opposition.)
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1. On the night of 8 September and the early morning of 9 September, a threat
of revolt developed in the cavalry unit stationed in La Plata. Unrest was
observed also in the First Infantry stationed in Buenos Aires. On 9 Septem-
ber Federal Police-searched all train passengers arriving in Buenos Aires
25X1 A from La Plata. =Comment: No cavalry unit is listed in La Plata; how-
ever., a second infantry division is located there.)
2. The Argentine Government is cognizant of the intrigue and plotting in several
Army units at Campo de Mayo in Buenos Aires and in Rosario and Corrientes.
It realizes also that the opposition is making headway in penetrating both
the armed forces and the Federal Police. As a result., Peron has ordered in-
creased surveillance of opposition political figures and some army officers,
25X1A ~omment: W4+'hile small opposition groups are
being organized, there is no indication that these groups are crystallizing
into one unified movement.)
3. Leaders of the Radical Party (the opposition minority in Congress) are being
paid particular attention by Peronls secret police. The Radicals have taken
a much more aggressive attitude inst?tp,,,vent.since,,#e: expulsion iI
from ?Oongres8"?bT' t ie itad cal " puty, Ernesto Sammartino. 'Friends and rela-
tives of the ousted deputy as well as Samniartino himself, who is now reported
to be in Uruguay, have been under police surveillance. Sammartino has in his
possession documents which, if made public., would greatly embarrass some high
officials in the Peron government,
an attempt on Sammartino?s life would not be surprising.
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~YAL Class. bAN`GED :TO: TS
DDA memo, 4 ,Apr,77
Vk.1%1\f.1
Approved For Release 2000/05/16 : CIA-RDP81u-04
Date: By:
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The following military figures are among those being watched by Peron's
secret polices
General Filomeno Velasco, Interventor of Corrientes Province and
former chief of Federal Police;
General (fnu) Creapo, retired officer now living in Buenos Aires;
General Arturo Rawson and General Pablo Ramirez, former chief ex-
ecutives of Argentina.
General Velazco is closely watched on his frequent trips from Corrientes
to Buenos Aires. Despite previous indications that Peron might be forced
to bring Velazco back into his cabinet to.appease the Nationalists, it is
believed that Mrs,, Peron will not stand for compromise with Velazco. The
President9s wife is said to have convinced Peron that Velazco is primarily
responsible for the smear campaign being waged clandestinely against her
and that Velasco is trying to have her removed from her position of politics].
prominence.
6b Mrs. Peron is reportedly behind the President's "get-tough-with the-opposi-
tion" policy and is said to have been responsible for the followings
a, The expulsion of Sartino;
b. The oft-rumored plan to remove General Humberto Sosa Molina as Minis ter
of War on the grounds that he is not only tolerating but fomenting
"anti-Evita14 sentiment in the Anny.
c. The movement to wipe out Peron opposition among university students.
Mrs. Peron is sponsoring the organization of the "Sindicato Argentino
de Estudiantes" at the University of Buenos Aires. This group is at-
tempting to line up university students behind Peron.
7. As Argentinafls internal politics become more troubled, the Peron government
is increasing its propaganda barrage designed to divert public opinion away
from domestic issues. The controlled press and radio are concentrating on
the following themes:
a. Argentina?s struggle for economic independence against the evil inten-
tions of British and American capitalistic trusts;
b. Justification of the governmentvs efforts to fight the oppositions at-
tempts to sabotage the social reforms of the present regime;
c. Argentine rights in the Falklands and the Antarctic;
& Defense of Argentina's economic policies;
e. Exhaltation of Argentine nationalism.
3. Although the Government will not officially admit that it is beset by
economic woes, President Peron is greatly concerned by the following;
a. An increasing shortage of raw materials which are needed to keep
Argentinaos industries at capacity operation;
b. Continuing labor unrest marked by strikes and slow-downs;
c. Inflation.
the gold backing of the Argentine peso has recently, decreased another
8 percent.
CONFIDENTI
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ci; NTFAL INTELLIGLNCI AGENCY ^-- 25X1 A
9? The Government's official pronouncements on the countries economic condi-
tion are completely false. Statistics and figures are being Juggled,
changed, and falsified for public consumption. A survey of the current
economic situation, jointly instituted recently by several of the large
Argentine industrial firms., indicates December 1948 as the critical period
where the saturation point of the heavy demand on dollar exchange will have
been reached, even if substantial ECA purchases are effected from Argentina.
10. The prestige of Miguel Miranda, president of the National Economic Council,
is dropping daily. His approaching trip to Europe may be his last official
mission for the Argentine Government. One reason why Miranda was not re-
placed long ago is that Peron cannot find a responsible individual willing
to assume direction of the chaotic situation Miranda has created.
11. The Government's recent radio and press campaign in defense of IA.PI, the
Government's official trading agency? was prompted by criticism of that
agency in the American press. The propaganda technique is to exaggerate what
benefits have been derived from IAPI's operations, and to stress the theme
that "big business and foreign trusts want to eliminate IAPI". Actually, the
Government is cognizant that IAPI is: (1) failing to obtain new markets for
Argentina goods in other Latin American countries; (2) riddled with inef-
ficiency and graft; (3) not doing enough work to keep all its employees
busy; (4) sustaining; large losses in merchandise purchased abroad, a result
of careless transportation arrangements and the purchase of.inferior materials.
12. The President intends to deal severely with any attempted demonstrations and
has already taken the following precautionary measures:
a. Increased the police guard around the Casa Rosada;
b. Ordered the Federal Police to increase the number of men assigned to
routine patrol duties in the city;
c. ordered the guard charged with Mrs. PeronBs safety strengthened;
d. Alerted the National Gendarmerie to watch carefully for any contra-
band of arms and ammunition from neighboring countries.
-- i }?... CONFIDENTIAL
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