OCR
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 - willmake 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 thatthe 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.