OCR
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.