STAFF NOTES: LATIN AMERICAN TRENDS SEPTEMBER 10, 1975[SANITIZED] - 1975/09/10

• Document Type: SPECIALCOLLECTION
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 02691653
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 21
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: September 10, 1975

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Latin American Trends
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September 10, 1975
No. 0526/75
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LATIN AMERICAN TRENDS
This publication is prepared for regional specialists in the Washington com-
munity by the Western Hemisphere Divisio-i, Office of Current Intelligence,
with occasional contributions from other offices within the Directorate of
Intelligence. Comments and queries are welcome. They should be directed to
the authors of the individual articles.
CONTENTS
September 10, 1975
Argentina: Civilians Encourage
Military Intervention
Argentina: Major Scandal Unlikely
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. 3.5(c)
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Argentina: Civilians Encourage Military Intervention
A group of conservative businessmen, dismayed by
Argentina's unchecked economic disintegration, has re-
portedly been encouraging some military officers to
overthrow President Peron's government.
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3.3(b)(1)
that during July the businessmen were sounding out the
willingness of a number of generals to make such a move.
The army joint staff has since received an anonymous
document arguing the economic justification for a coup
in terms similar to those attributed to the civilian
plotters.
According to the 27-page document, Peronist eco-
nomic programs have produced a large fiscal deficit,
discouraged investment, caused productivity to drop,
and raised the cost of essential imports through fre-
quent devaluations. The document also attacks the re-
establishment of diplomatic relations with Cuba and
warns that, unless current policies are abandoned, the
government will soon be dominated by leftists. The
paper asserts that continuing political turmoil has
weakened defense capabilities and that Argentina's in-
fluence in Latin America has declined in comparison to
that of its longtime rival, Brazil.
The identity of the document's authors apparently
is not known to the military, but the members of the
army joint staff reportedly consider the document an
accurate assessment of the present situation and a good
rationale for military intervention. Some high-ranking
officers would probably back a move to oust President
Peron now, but most are apparently waiting until they
feel assured of massive popular support. They hesitate
to repeat the military's past mistake of attempting to
govern without substantial civilian backing.
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September 10, 1975
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Argentina: Major Scandal Unlikely
Peronist legislators have side-tracked Radical
Party efforts to investigate the financial dealings
of President Peron and former social welfare minister
Jose Lopez Rega.
The controversy was touched off by press reports
in mid-August that President Peron had diverted about
$800,000 from Peronist welfare funds to her late
husband's estate. Spokesmen for Mrs. Peron blame the
improper transfer on her lawyer--former Interior Min-
ister Benitez--and claim that she is taking steps to
correct the mistake. Other Peronists, however, have
attempted to defend the action by noting that the check
was intended to cover a portion of the inheritance due
the sisters of Peron's former wife Evita. They also
argue that only a fraction of the amount congress ap-
propriated to Juan Peron two years ago in restitution
for property confiscated during his overthrow in 1955
had been put into his account. The Radicals claim
that their repeated requests for a full accounting of
the amount budgeted for restitution have not been
answered by the government.
The Radicals have been fairly low-key in their ef-
forts to launch an inquiry. Their proposal, which would
set up a special investigatory commission, suggests a
calculated effort to gain favorable publicity for the
party while avoiding an uncontrolled escalation of the
debate on political corruption. The Peronists have
nevertheless responded to the disclosures with great
apprehension, probably out of fear that a thorough in-
vestigation would reveal extensive misuse of government
funds by Mrs. Peron's administration.
September 10, 1975
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Because the problem of graft is endemic throughout
the Argentine political system, it is rarely a topic
of public debate. The surfacing of this issue is an
obvious attempt by President Peron's opponents to force
her from office. The aanger of such an action, however,
is that a scandal of major proportions would discredit
civilian politics in general in the eyes of military
leaders and orob7bly much of the general population.
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