Stranica 6 [6]
X,Ae12.November 58.
a page six =
Events in Peru have not only a far-reaching political meaning, They:
have also important economic gepercussions that influence directly - .
the Western defense program. Besides its agricultural production, mm
cattle raising end fishing, Peru has a huge mining wealth: zine,wolfr
copper, lead, tungsten, oils it is the world's greatest producer am,
in bismuth and vanadium. “ll these are basie essentials for the work
of strategic industires.
Uruguay has been wm to now called South America's "Lungs".
It ás indeed the only one of the Spanish speaking countries,
neighboring Argentine, that has not entered the Peron front.
Political refugees, anti*Peron propaganda, capital taken out of
Argentine found a heven in Uruguay. Today however the first signs
foretelling a possible change ean be noticed. Our observers report
that foreign cavital - which had found refuge in Uruguay and had
stayed there - is now starting to show a tendency of moving further,
Since eapitel is always very alert and immediately reflects the
slightest changes in the atmosphere, this trend is not without deeper
significance. Uruguay indeed had given itself a new Constitutinn
last year and had it avvroved by plebiscite. The governmental
structure is based on the Swiss example, with 9 counselhors at thé
head of the country. The elections for the new Parliament gave over
80% of the votes to the two stromgest parties - the "Reds" ( a
democratic party that was in goverrment at the time) and the "Whites!
( a conservative group, that : Te-T 2 had been
the strongest party in the opposition). The remaining 15% of valid
votes were given to three small parties, the Christian democrats,
the socialists and the communists, The reds and the whites joined
to form a goverrmmental coalitions: the first receiving six, the latter
three counsellors posts. The three small minority varties fowmm now
the opnositions :
According to all our observers, time is working in favor of the White
Partye Under the powerful leadership of a friend of Argentina,
Herrera, the conservatives represent a strongly nationalist and
rightist movementg, Their participation in government has greatly
strengthened their position.. The next elections will be in a year
from noWe According to general opinion, the whhtes will certainely
come out with another important gain or even as the governmental
party - if by that time other events in Letin America have not
oecured that would weaken the Peron front,
A victory of_the Herreristas in the last stronghold of “democratic
regimes" in öovuth America would mean the most far-reaching trivmph
of Peronism, It would have a huge political reperevssion in Argentir
itself im ahd in all Latin Amevican countries. It would give Peron
and his friend control over the huge wealth that has now concentrated
‘in Uruguay,as She other South American countries, one after the other
entered the natioralist front. It would thus give the Peron regime
all the assets for complete politicel and economic rehabilitatione
In both Peru and Uruguay thus, nationalism is inereasing;
in both countries the possible access of Peronism to power would
mean the most important political, strategie and economic consequence
An interesting symptom of future developments is the weve of strikes
and labor unrest that has been reported in recent weeks from the two
countries. This social factor too works in favor of Peronkaém,
47.