So this is the situation of Latin America and who's who by 1975:
1. Mexico, first of all, was ruled by the monopolistic Institutional Revolutionary Party ever since the 20s, but, too a certain extent, was pro-US. Too far away from South America.
2. The Central American nations (Northern Triangle and Nicaragua) were too small in both size and population, and were constantly vulnerable to proxy wars.
3. Cuba, of course, was staunchly communist and invested heavily in communist revolutions worldwide. They were surely anti-US and pro-USSR.
4. Don't know much about Haiti or the Dominican Republic, but both had their strongmen (Duvalier and Trujillo). Unsure about the rest of the Caribbean.
5. Costa Rica abolished its military after 1948 and has held consistent democratic elections ever since. Definitely pro-US.
6. Panama had been ruled by drug lord Manuel Noriega for 7 years, and had a complicated relationship with the US.
7. Colombia was torn apart by a civil war run by communists, anarchists, drug lords, etc, and although pro-US, they were in a domestic crisis.
8. Venezuela was surprisingly pretty prosperous, I'd say more so then its neighbors Colombia or Brazil; they had vast supplies of oil that made them rich. Pro-US.
9. Ecuador had been ruled several times by various military governments, each with their own interests and forms of relations with the US.
10. Brazil was the largest country by far, both size and population wise, and had the largest military, with an abundance of resources from the Amazon. Military junta but pro-US.
11. Paraguay was a pariah state with a dictator akin to Kim Jong Un and Gurbanguly Berdimuhamedow. Most paranoid country in Latin America for sure. Pro-US.
12. Uruguay had the lowest population in all of Latin America (even lower than US territory Puerto Rico) and didn't want in any way to get involved in a foreign conflict. Pro-US.
13. Bolivia had the highest number of coups out of all Latin American countries, and was the most vulnerable to coups out of all Latin American countries. Each thought differently.
14. Argentina was just 1 year away from another military dictatorship, and the people tired of Peronist crony capitalism. By now the government was anti-USSR and pro-US.
15. Right-wing Chile under Pinochet and left-wing Peru under Velasco were on opposite sides of the spectrum. If not later, they would certainly go to war sooner.
While there is sufficient cause, everyone has a beef with someone, there isn't the alliance system which would allow a WWI style fight to break out.
First of all, Peru and Bolivia had vivid memories of the War of the Pacific and how they lost to the superior Chilean navy. Bolivia lost its entire coastline and hasn't really recovered ever since. Argentina and Chile had a bone to pick for centuries, even before they were independent, when they were still under Spanish rule (Chile was part of the Viceroyalty of Peru, Argentina was part of the Viceroyalty of Rio de la Plata, both were separate political entities), and both wanted control over Patagonia (in the end, Argentina got the better share, although the southernmost tip of South America, Cape Horn, still went to Chile). Bolivia had lost the Chaco region to Paraguay during the 1930s (even though their military was larger and better-equipped, they knew nothing about the region's geography, and the Paraguayans were more motivated), and that also dealt a great blow to Bolivian national pride (no coastline, no Chaco region, no Acre, they had lost almost half their territory from independence until WWII). Brazil and Argentina, natural enemies from the start, obviously competed for dominance over the continent, and influence over disputed Uruguay and vulnerable Paraguay. With Colombia and Venezuela, you have two countries with pretty much equal proportions of European, African, and Amerindian influence, you have two countries that didn't want to get involved in the affairs of other nations in South America, yet you have two countries who not only get in trouble with the United States quite often but you also have two countries with constant population exchange. I'd put it this way: It would most likely be Brazilian-led bloc with Ecuador, Chile and Paraguay against an Argentine-led bloc with Peru, Bolivia, and Uruguay. Colombia and Venezuela would be neutral outsiders. How the United States, Europe, Cuba, the Soviet Union, and China would view this situation I don't know, but this is my best idea of an "alliance system."