[SANITIZED]WEEKLY SUMMARY JULY 5, 1975 - 1975/07/05

• Document Type: SPECIALCOLLECTION
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 02690156
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 27
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: July 5, 1975

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Weekly Summary
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No. 0027/75
July 5, 1975
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Tbe'VVESKLY, SUMMARY, tssued every Friday morning by the
Office of Current intelligence, reports and analyzes significant
developmente'of,,the week2through'noon on Thursday. It fre-
quently.includes'matertal coordinated with or prepared by the
Office of , economic Research, the .Office of Strategic
Research ,� the Office of 'Geographic .and Cartographic
Research, 1 and the , Directorate of Science and Technology.
: Topics requiring more comKehensive treatment . and
therefore published separately.,as Special Reports are listed
In the contents; ' �
Warning Notice
s re. �
Sensitive Intelligence Sources and Methods Involved
'Additional Warnkng
NATIONAL SECURITN�� INPORMATION,
Unauthorized Disclosure Subject to Sanctions
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CONTENTS (July 4, 1975)
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22 Argentina: Labor's Demands Undermin(
Comments and queries on the contents of this
publication are welcome. They may be
directed to the editor of the Weekly
Summary
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Textile workers demonstrate outside the
headquarters of the General Labor Confederation
Argentina
LABOR'S DEMANDS UNDERMINED
Labor's announced pledge to respect the
authority of President Peron constitutes a
momentary but significant victory for the gov-
ernment in its continuing conflict with workers.
For the moment at least, the leaders of the
Peronist labor confederation are unwilling to
risk calling the workers into the streets again for
the final showdown, as they had threatened.
The President's unexpectedly strong stand
has caught the labor leaders off guard. They had
apparently assumed that the government would
yield easily, but the administration's persuasive
economic rationale for overturning massive pPy
hikes negotiated last week has considerabl
lessened their ability to act. The longer the
union chiefs hesitate, the more untenable their
position is likely to become.
At the direction of chief presidential
adviser Lopez Rega, the government sought first
to undermine the authority of the labor leaders
and now seeks to divide the whole labor move-
ment, The administration came out against the
wage hikes only after many, but not all, of the
important unions had negotiated new wage con-
tracts. The government thus set union against
union and demonstrated once again to the
workers their leaders' inability to deliver.
Against this setting, the Peron administra-
tion has come forth with a proposal to increase
wages by 80 percent, in installments. This will
probabh: appeal to those workers whose new
contracts were still being negotiated, but will
not assuage those who had obtained increases of
100 percent or more. The President has also
announced a doubling of certain benefits that
apply primarily to workers at the lowest end of
the wage scale.
Both the President and Economy Minister
Rodrigo, a ptotege of Lopez Rega, have made
tough, well-thought-out speeches cataloguing
the nation's many economic ills, pointing out
that austerity is in order and that the present
administration�the constitutional heir to the
magical Peron legacy�is uniquely qualified to
deliver it. The stress on legitimacy is designed to
discourage military intervention; indeed, most
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officers are known to favor the maintenance of
constitutional rule if at all possible.
In a related move, Lopez Rega has taken
another step toward building greater control
over the nation's security apparatus. Last week,
the government created a new post within the
Interior Ministry�that of under secretary for
domestic security�and filled it with a former
federal police official. The new official will
coordinate all government antisubversive efforts,
The appointment came before the current crisis
and could have been designed to give the govern-
ment an alternative means of dealing with
potential labor violence, given the military's
unwillingness to intervene against workers and
on the side of Lopez Rega.
If the government wins its contest with
labor, the main victor will be Lopez Rega; his
mastery of the political situation will then be
virtually complete. A fragmented, unrestrained
labor movement, however, could prove more
dangerous in the long run than the somewhat
recalcitrant but still relatively disciplined force
that now exists.
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