OCR Output

XeAs8e for November 1952.

REPORT ON LATIN AMERICA§ ARGENTINA.

oe oe oe on on a EE ee oe es ee ee om mee

Previous dispatches have already reported on the vital
but explosive Latin American situation, What has been said and
foreseen at the time has become a reality since. Changes in
regimes, governments and policies that have occured since June
a July have all happened along the same lines that were indicated

ene

The clue to the whole Latin-American situation is still
unchanged: the political and economic duel is still on, opposing
the Peronist movement to the United States. Communists, as a general
rule, do not appear as such, Faithful to the world-wide Moscow
planning, they work in Latin America as they do in Western Europes
they are the hidden trouble-skeesee s who do not miss the slightest
occasion for creating unrest and resentments in the Western Worlds
they look for broader contacts and for the establishment of any
front and coalition opposed to the United States, be it for makinmaxk
nationalist, for pacifist or any other reason.

In view of the great strategic, economic and political
weight carried by the Latin American eontinent, these trends and
the possible communist victories - hidden beneath the appearance
of a fascist, nationalist front - can have the greatest repercussion
on the world situation and thus shéuld be most carefully followed.

— mm al

The Argentina situation.

Argentine is the most powerful opponent to any US influence:
in Latin America, This latter continent however is of greatest
importanee, not only in the case of open conflict, but already for
the present re-armament program. It should not be forgotten that
vital strategic materials - such as cupper, tin, woods, many
agricultural products - have to be bought by the United States in
South America, Consequently, a hostile or at best a neetral and
nationalistic regime in South America is likely to be extremely
detrimental to the US war effort. Should an open conflict break out
it is logical that Peron and his friends - if still in power - will¬
make utmost use of their position and instead of entering a common
front with the United States will try to keep outside of the conflie
and to sell their vital goods to the highest bidder. It is thus
of highest interest - in view of the whole world situation - to see
in what direction Latin America is evolving, in other words whether
Peron and his friendly regimes are likely to stay in pwwer and what
the true economic and political picture is, as seen from inside
Argentine and the other Latin American countriese

Economically, Argentine at a first glance seems a ruined ¬
country. Basically this is not quéte the situation. It is true that¬
the country had to face heavy losses: its production in every branch
is low; the country's wealth is not used; great aréas of land remair
idle; mining and industry are working at the lowest possible levels

PAS.