JAPANESE CONSERVATIVE MERGER AND ARGENTINE SOLVENCY AND STABILITY (3-9)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000600060062-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 14, 2016
• Document Release Date: June 6, 2003
• Sequence Number: 62
• Publication Date: November 14, 1955
• Content Type: BRIEF

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NSC BRIEFING 14 NOVEMBER 1955
JAPANESE CONSERVATIVE MERGER
MerBor of two conservative parties (Japan
Democratic and Libor
al).set for 15 November.
A. 10 November. compromise proliding for
collective jesdership- paved way,
1. Liberal president Ogata has accepted
formula.. leaving Ratoyama as prime
minister.
2. Election new party chief put off
until next spring,
In meantime, committee of Hatoyama,
Ogata, and maybe two others will run t
new party. "i
31 3
B. Even Yoshida has been persuaded to go
along with his Liberal faction (about J
Hatoyama has decided on following program:
A. Cabinet resignation 21 November. Special:-
Diet session tentatively set for 22
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DOCU!vMFNT N0
NO CHANGE IN C1__4Ss, Cl
CLASS. CHANGED 10: TS S 0
State Dept. review completed
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i. Re-election Ratoyama?as premier for
22 November.
C. Formation his third cabinet.
1 I , New cabinet expected retain Shigemi.tsu. as
foreign minister to stress friendship for
firmness towards USSR..
A, Now party expected take tougher. Liberal
Party line on'negotiations with USSR and
reparations issue with Philippines.
M:rger will give government working majority
-~
. parliament,
e: Lower hauso of 467 requires 234 for
rajcor ity~
1. New party will have closo -to Soo
.seats.
ii. Brawling over party head expected to
continue within new party.
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1
CoFtDTIAL
Provisional Argentine president Gen..Lonard
deposed 13 Nov in bloodless coup armed
(o f P*Ad"'rtt &a4A ffV1_ 41 G # A)
forces leaders.,,on grounds super-nationalist'
Catholic elements trying to gain control of
40
to have dem
ocratic and :-moderate leanicjp;
government.
A. New . president,, Gen. Pedro Aramburu, Army
Chief of Staff under Lonardi, reported
well-disposed toward US.
Vice- president, army, navy, air mini--
~,d a'riA r, mini-
j ww~o, k
- Q
sters'to remain on job, but extensive
A
cabinet changes being made.
even though ?Lonardi himself was pro-US.
Removal of ultranationalists from such
key posts as foreign ministry may
improve Argentine cooperation with US;
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ARGENTINE S YSNCY AND STABILITY
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~o
II. Peron left legacy of crippled productive,
capacity and financial stress
C ~ONFIDENTIAL'
Lonardi highly respected despite his
controversial appointments. Abrupt
duster likely handicap new regime's
... .:.., .. Afro LanvJI * "OA
phere in face pressing labor and'
efforts. to maintain a peaceful atmos
u vuvnaat. P& vv.icuia. - - ,
su ~St,~r~yh,2.^^'t ,,v..pss,ti -1,Pr ,~ i
1. Much of it came from private sourge*
his thef s large enough to upset
countryy's balance :;heet.
-Peron reportedly filched substantial
sums frog treasury No evidence that
such as "friends" who gave Evita
such gifts as villa in Biarritz and
jewels; also royalties from l:vita's
book, which was required reading.
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S.. Peron_;s
promote
expense
postwar policy of trying to
ratOid industrialization at
agriculture which earns 93;>i,
exchange,
of foreign
C. Under Peron farm earnings dropped to
about one-third of prewar purchasing
power,
1. when world prices for agricultural
products high, Peron paid farmers
only part of the high export price.
N t-AL
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CO fI?E TI L
2. By system of multiple rates,, farmers
were taxed /urther; they received
5 pesos per dollar for exports but
had to pay from 7.5 to. 14 pesos for
necessary imports--if govt.a-oi .-d
give an exchange permit.
D. Decline in farm produc t ion reduced
Argentina's ability, to buy essential
imports for, economic recovery.
III. 1955 trade deficit may reach $250,00.0,6604
government survey in October lists total
outstanding foreign debts at $757,000,000.
A. In Jan 55 govt claimed holdings of
$371,000,600 in gold and about
$120,000,000 in dollars and sterling,
Latter.-,represents minimum necessary to
finance essential trade with US and UK.
B. Sterling credits expected to be drawn
down by end of year. Net trade deficits.
expected on various bilateral trade
at;ree.s:e: t accounts----except with Soviet
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$33.,100, 000 in other currencies to
about $28,700,000 in dollars anti
ing 'payments on Ezport-Xrnport 'Batik
service various overseas debts' includ
credit of 1950.
markets.
trade for. grain and dicl iniag.:'graia
in view of unfavorable trend in terms 1
Prospects for immediate' future. uncerja.
1. Marketing difficulties led Argenti
to turn to Soviet Bloc as importaai
outlet for agricultural surplua
Payments deficit by end" of
severe enough to force politically.
unpalatable policy of sharp icOnomJ
retrenchment. .
IV. Provisional government's,*pproacb to these
problems was to order analysis of economic
and financial position. It has commence
steps along lines,,recommended.
Wj 4, Q-3
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devalued on 27 Oct to 18` Nesos to
dollar (had v!aried? from 5 to 14 pesos).
S taxe trading. institute abol ishe4, and
govt. stressing ' encouragement of prdvate
initiative.
B. farmers benef*tted by these steps' and
by higher domestic "pri.eee : i:a bd by govt.
D. Officials stressing need for foreign
inyestment, even mentioning desirability
?..of private and public capital in
expanding o:el production.
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strong Argentine interest in US.a.ad sug-
gest by:
A. Special econo*ic . counselor ..for embassy
in Washington.,
B. Argentine officials have indicated
,they would like to discuss economic
problems tnf?rmaliy with US Embassy.
D. Officials believed interested in re-
viving Eximba.nk loan of $60,000,000
for steel plant--signature delayed
pending review by new govt,,
E4 US Ambassador believes US economic
help needed if Argentina. to recover
from present upheaval within reason-
able time..
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