1950s - World - Argentina
Lusitania
Donor
1950 – 1959 (cont)
World (cont)
South America - Argentina
In 1951 Peron was re-elected for his second term with a 15% lead over his nearest rival. Unfortunately, the country was forced to say goodbye to Eva Peron who died of cancer in 1952. The country witnessed immense sadness and hundreds of thousands paid their respect as her casket lay in mourning for 2 weeks. Finally, on 15th of August she was given a state funeral and laid to rest in a new national monument which was only completed and opened to public on 15 August 1955 and her embalmed body able to be viewed. Over 1 million people visited her monument that first year. Her charity and other political organizations outlasted Eva and continued to both help those in need and promote the values she valued and worked tirelessly on behalf right to her deathbed.World (cont)
South America - Argentina
Eva Peron Funeral attended by over 3 million people in Buenos Aires on 15 August 1952
In 1952 Peron and his government found themselves once again in a precarious situation, despite the support from the Federation its foreign currency reserves had been virtually depleted. Aggravating the problem Argentina’s agricultural exports which accounted for ¾ of exports were cut in half due to drought and bad weather. President Peron faced with prospect of having to either cut imports which would hamper Argentina’s industrialization and development as well as impose austerity measures looked for alternatives. In an attempt to solicit help he travelled to several countries including Brazil, Venezuela, Mexico, US and several European countries (Britain, France, Netherlands, Germany, Italy, Spain and Portugal) in the spring of that year. In his tour he promoted investment in Argentina especially industrial investment and sought support from the IMF and US. While he was successful in signing several agreements with American companies to invest in Argentina such as Ford and John Deere in establishing plants in Argentina, he was less successful in getting help from the US government and IMF. Both of whom placed stringent requirements to providing any support which Peron rejected.
On his European leg he continued to be well received by business community with signing of more agreement with several major companies such as Daimler who agreed to build a truck manufacturing plant in Argentina. His last stop was in Lisbon and once again Peron hoped the Portuguese could provide a way to stabilize Argentina and allow it to continue growing. Since 1948 its economy had been growing at 2% a year due in large part to the Portuguese support but even the Federation was restricted in what it could provide. The Portuguese were not without ideas, but Peron was not very enthusiastic about implementing them. The Portuguese delegation composed of government, financial and industry representatives presented a plan to provide Argentina with economic stimulus and revive its foreign reserves situation, it had the following principles:
- Diversify Argentina exports so it was not reliant on agriculture for majority of its exports
- Increase oil and gas production to provide domestic supply and reduce or eliminate oil imports.
- Increase electrical power generation and distribution using domestic sources of Hydroelectricity and coal.
- Provide the government with an immediate foreign cash infusion and regular revenue over long period.
- Double Argentina’s growth within three years and provide sustainable growth and employment away from major urban centers.
The Portuguese plan called for the Argentina government to both enact and strengthen several major legislations to protect the developers and prospecting companies. Everything of course boiled down to money and in total the consortium offered 500 million dollars to the Argentina government to buy the mining rights and develop the minerals they found (payable over 5 years). In addition, the companies would guarantee to employ 80% of their staff from Argentina and pay for infrastructure costs to develop the resources. Several Argentina partners had also been recruited such engineering companies, supply companies or junior mining companies. Lastly was the royalty fee paid yearly to government and the agreement that for the first 10 years would limit repatriation of profits out of Argentina. After some hesitation Peron agreed but demanded that all the companies be listed on the Buenos Aires stock exchange and that 20% of stock be able to be purchased on the exchange.
Animated by Portuguese agreement President Peron returned to Argentina where news of the agreement was denounced by the opposition parties especially Arturo Frondizi Ercoli of the Intransigent Radical Civic Union party. Peron was unfazed by his critics and implemented the mining and royalty legislation and the country over the next five years saw an increased economic picture as GDP gradually increase and by 1957 was over 6% a year.
Development of the country especially in the foothills of the Andes mountains caused a major shift in employment and job opportunities. From 1953 to 1957 over 40 mines were either expanded or started. Gold mines such as Cerro Vanguardia Mine in province of Santa Cruz and Veladero Gold Mine and the Pascua-Lama Mine in province of San Juan so that by end of decade Argentine had become a major producer of not only gold but also silver. In addition to gold and silver Argentina copper deposits soon became very important in the development of the country. Over 10 copper mines were in operation by end of decade producing over 1,000 tons of fine copper per year. Mines in the provinces Catamarca, Salta, San Juan and La Roija made Argentina the second largest copper producer in South America by the end of decade. Like the Portuguese the Argentineans refused to export the copper and the Cordoba copper refinery was started in 1959. Iron Ore was discovered in Rio Negro which made Argentina self-sufficient in Iron Ore for its steel mills and shipbuilding industries. The coal for both electricity generation and steel industry came from the Rio Turbio and Pico Quemado mines. Lastly oil industry in Argentina also witnessed a large investment, here the foreign investors signed agreements with Argentina largest oil producer and distributor YPF. From 1953 to 1959 oil discoveries in Salta and Neuquén provinces were discovered and oil production reached 100 million barrels by 1958.
Coinciding with the large boom in mineral and oil production was the governments initiative to electrify the country and great strides were made to both increase the electricity produced in Argentina as well as create a single national electricity distributor. During the 1950s a total of 10 hydroelectric dams were constructed for a total of 100 MW in power but most were small with the largest being Los Molinos dam with a 52 MW capacity. The country though turned to natural gas and coal as the main generating means with a total of 500 MW being generated by gas plants near Santa Fe, and Buenos Aires while Cordoba and Buenos Aires both had coal plants built near them. The biggest factor in both reducing Argentina foreign oil consumption and in assisting development was the large-scale electrical distribution enacted by the two main distributor SADI and SIP covered 90% of all cities and towns over 1,000 people and reached 60% of all rural customers. Slowly over the 1950s Argentina business were able to connect to the expanded energy grid and converted their oil backup generators not either natural gas or propane both of which was produced in Argentina.
The Buenos Aires stock market doubled during the decade with several of the major Argentina domestic players raising capital in the stock market to meet the development requirements of the country. Foreign investment in Argentina companies was limited to 40% and restrictions on repatriation of their investment during the decade restricted foreign investment to those investors with long terms plans.
Employment is Argentina rose considerably as the number of companies both foreign owned and domestic steadily grew, oil, gas and mineral exploration and mining also became large employers in the country. During the 1950s the population increased by 35% as emigration from Europe and neighboring countries added to the natural population growth. Agricultural production started being affected by the migration of thousands of young people to the large industrial cities as well as the mining and oil towns springing up around the mines and oil fields. This spurred an increase in mechanization on the farms, but labor shortages still plagued the industry forcing the government to recruit temporary workers from Paraguay and Bolivia. Meanwhile Argentina welcomed over 500,000 Europeans during the 1950s.
While Argentina economy continued to grow and provide a much-needed boost to the country, it actually grew by 69% during the decade Peron faced opposition from both left, Catholics and the right. The biggest divide was not ideology but between those who advocated violence and those who continued to believe they could defeat Peron eventually through elections. Those who advocated violence were situated both to the left and the right. Anti-Peron leftists and communist condemned and protested the government and those they saw as collaborators. Several bombings including the Cordoba plaza and Santa Fe cathedral bombings that left over a dozen dead were attributed to the communist and leftists factions of the country. After much public outcry and circumstantial evidence that was found by the police and investigators Peron reluctantly outlawed the communist party and any labor or other organization associated with communist party in 1954.[1] Government forces and police arrested thousands of supporters and demonstrators leading to the 1956 Argentina University Crises resulting in all of Argentina Universities being shut down and most of the staff and half the students being arrested. It would take till 1958 for all universities and colleges to be re-opened after all staff had been cleared in the end only half the staff was cleared to work. When the universities opened ability to organize and demonstrate in the universities was restricted and political observers were placed throughout the universities. Student activities were also curtailed.
Conservative Catholics grew increasingly concerned at the liberal policies that Peron supported including those who had given up on defeating Peron through the ballot box. During the 1950s overall Argentinian society was very splinted with forces arrayed against Peron from both right and left. This was especially true of the Argentinian military. While efforts during the late 1940s and early 1950s to rid the armed forces of communist elements the same was not true of its conservative Catholic elements. In 1954 Peron government was rocked by news of fighting between units in both army and air force. Emerging out of the power struggle was General Eduardo Ernesto Lonardi Doucet who led the faction of the military that supported Peron. From 1954 to 1955 about half of Argentina military leaders were either forced to retire or imprisoned as purges of those opposed to the government were pushed out, disappeared or imprisoned with many fleeing into exile. Unfortunately, during the upheaval in the military, the country suffered a great tragedy. On 5 July 1955 while President Peron delivered a speech to supporters at Plaza de Mayo two planes out on training exercise attacked the president and his supporters. Over 300 people were killed and 1,000 injured in the attack. Peron was one of those injured and he was rushed to the hospital where he was operated on for 2 hours.
Scene from the Plaza de Maya attack
Following the attack and attempted assassination the country suffered what called Blackout “El Apagón” where thousands of leftwing, catholic or conservative Peron opponent was arrested. At same time Peron supporters attacked anyone who they felt was anti-Peron. This included priests, bishops, shop owners, unionists. During the three-month period over 30,000 were imprisoned, 2,950 people killed by Peronistas and police and over 10,000 fled Argentina.
President Peron, hospitalized for over six months, (he suffered a stroke two weeks after the attack) and all television and pictures were carefully orchestrated to only show his good side. He had a hard time talking and the government line was that his vocal cords had been damaged in the assassination attempt.
Realizing President Peron needed strong team to continue implementing his policies while he continued physiotherapy in the hopes of recovering. Copying on the Triunvante example from the Portuguese federation he appointed Rogelio Julio Frigerio as Finance & Economic Minister while he appointed a strong Peronist Domingo Mercante as Minister of Labor. To control the military and police he appointed General Eduardo Ernesto Lonardi Doucet as the Minister of Defense and Security. President Peron declared a state of emergency and postponed the elections till 1958. This brought about another round of protests that were broken up by the heavy hand of the military and police.
From 1955 to 1958 the country witnessed two different simultaneous events, growing economic development, increased employment and rising wages. While at the same time any small incident or protest was met with harsh measures by the security forces. The Argentinian Intelligence agency, “Secretariat of Intelligence”, and its informers and agents compiled large files on all those it felt were agitators and against the government. In 1958 the government released the last of those who had been detained in 1955, most of whom decided to emigrate instead of living under the Peron government.
In 1958 Peron who had gained some of his mobility back but still refused to speak in public ran for re-election vowing to continue the industrialization of the country and to eradicate all those who plotted to destroy the people’s rights and achievements. The government pointed to the achievements over the last two decades, the strong economic growth, continuing current account surplus (modest since 1956) strong alliance with both Brazil and Portuguese Federation to protect the country from foreign interference. Assisting Peron re-election was a split amongst the largest opposition party in Argentina the UCR. Two opposing camps appeared those who supported industrialization and development and those who advocated for a reset and Argentinian centered development. Alejandro Gómez led the development side while Ricardo Balbín led the Argentinian side. While several other smaller parties also participated the election was between Peron and the two UCR candidates.
The election was marred by several attacks but nothing that would be considered organized effort. Peron easily won with 55% of the vote while his party won 133 seats in the Chamber of Deputies. The Peronists supporters celebrated the victory and Peron appeared in front of a huge crowd where his assistant read out a very congratulatory speech full of rhetoric and nationalist jargon. Peron looked upon the gathering with smile on his face and waved enthusiastic to the crowd before retiring. But in reality, he had become a prisoner of his own circumstances as he had lost power to the Triunvante and was less and less involved in the running of the country. Unbeknown to the public and even the majority of the Peronist supporters and party members Peron condition had deteriorated, and it became difficult for Peron to concentrate and make decisions. The election had taken a huge toll on Peron health and he was hospitalized for several weeks recuperating.
During the 1950s Argentina’s military strength grew as it modernized with Argentinian public and private companies growing to meet both military and industrial needs. Foremost amongst these companies was Fabricaciones Militares which manufactured majority of the army vehicles, arms and supplies, in the 1950s it started manufacturing vehicles for civilians as well as rolling stock for the railways and the Buenos Aires metro. While the two shipyards Astarsa and the Río Santiago Shipyard were building ships for the Argentinian navy. Fábrica Argentina de Aviones SA was Argentina’s primary aircraft manufacturer. In 1950 the National Atomic Energy Commission was established with the objective to do research on atomic energy. In 1957 it built the first research reactor in Latin America.
A cornerstone of Argentina’s foreign policy was linked to the Portuguese Federation which was its primary trading partner and biggest investor in Argentina. Portuguese companies working mostly through local companies provided many of the components and industrial goods in the country. Portuguese industrial companies became the dominant players in the Argentinian mining, electrical and petrochemical industries. Portuguese Embassy in Buenos Aires provided continued support to the Peron government with DGS having a whole wing of the Embassy. There is provided Argentina security forces with training and support.
[1] Communist Party officials and leaders both imprisoned and exiled continually repudiated the government investigation into the bombings. Many scholars also questioned the evidence and most importantly the role the Portuguese DGS provided the Argentinian police and investigators. With some even going as far as stating the attacks were the works or agents working for the government/Portuguese who wanted to remove the communist influence from the country.
The situation for Argentina compared to IOTL was two fold, the continuation of Peron (in name only) in charge of government fashioned in some ways like the federation provided continuation of both political and economic policies that was aligned with its two major allies: the Federation and Brazil. The most important in terms of economic and political was the Federation as Portuguese based companies (many were partially owned by European companies or individuals) had a huge part in Argentina's continued development. Peron is now a shadow of his former self with no actual power by the end of the 1950s he was still very much the figurehead of the country. Gone also were the revolutionary rhetoric and policies. The most important thing for the government was the continued economic growth, increased standard of living for the people of Argentina so they felt if not happy at least content. Investment in Education, health and infrastructure provided continued evidence of the advances the country was making.
How this will all progress into the 1960s will be interesting for Argentina/Brazil neighbors especially the smaller one such as Uruguay and Paraguay are very much being very careful and while the Americans are very friendly with them these counties government's know that any wrong movement could result in both countries government's being overthrown.
What of rest of South America, Chile which has been Argentina's adversary across the Andes and rest of the countries they in some ways are progressing like iOTL but unfortunately dark clouds are on the horizon as the 1960s will bring much conflict to the region.
The Argentina section would not of been possible without the assistance of @EnvarKadri. Thank you . Questions/ Comments?
This brings us to the end of the world section. These posts provided us with a snapshot (not complete, we will try to provide more information about world in the Foreign Relations section) of the world and what challenges and opportunities presented themselves to the Portuguese. We now will turn our attention to the internal workings of the Federation as we start Politics in two weeks on March 29.
Also wanted to thank those who both nominated and seconded this TL an Rebirth for the Turtledove awards. IT is a great way to gain both exposure and new fans to the TL. Obrigado.