JPRS ID: 9150 LATIN AMERICA REPORT

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• Collection: JPRS
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00850R000200090036-1
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• Content Type: REPORTS

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JPRS L/9150
18 June 1980 '
~.~Cltln ,~1i'1~~~1~~1 ~rt ~
p
CFOUO 14/80~
FBI~ FOREIGN BRO~DCAST INFO~~lATIO~I S~RVICE
~OR OFFICIAL USE ONLY -
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- JPRS L/9150
is J~e i9so
LATIN AMERICA REPORT
(FOUO 14/80)
" CONTENTS
lLRGENTINA
_ Columnist Surveys Current Labor, Political Concerna
(Eduardo J. Peredes; LA OPINION, 27 Apr 80) 1
Pegoraro on Broad Range of Issues Concerning Yacyreta -
(Jorge Alberto Pegoraro Interview; LA OPINION,
10 May 80) 6
~ Central Bank Intervention Received With Appreheneiona
' (O~cmr Delg~do; CONVICCION, 27 Apr 80) 10
Recovery of Financial Sector Termed 'Very Gradual'
- (Daniel Fernandez Canedd; LA OPINION, 4 May 80) 12
New Foreign Investment Activity Lesa Than Moderate
(Joae Angel Martelliti; LA OPINION, 4 May 80) 14
COLOMBIA
M-19 Announces Support for Propoaed National Strike
(IPS, 31 May 80) 17
CUBA
U.S. Campaigns To Discredit Cuban Revolution Assailed
(Victorio M. Copa; PRELA, 9 Jun 80) 19
Latin American Economic Meeting Condemns IMF Policies
(PRELA, 7 Jun 80) 21
Briefs
Nicaraguan Youth Movemer.t's Role 23 -
- a - [III - LA - 144 FOUO)
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ECUADOR
Vice President Ir.terviewed on Political Situation
(Osvaldo Hurtado Larrea Interview; CA1~I0 16,
25 May 80) 24
EL SALVADOR
Human Rights Official Aeks Europeana for Support
(Angel V. Ruocco; PRELA, 16 May 80) 27
Salvadorans in Venezuela Protest Human Ri~hts Abusea
(Sergio Medina; PRELA, 2~1 May ti0) 30
GUATEMALA
Revolutionary Organizations Praise Castro in Letter
(PRELA, 27 May ~0) 32
PANAMA
Labor Leader Condemna U.S. Maneuvers in Caribbean
(PRELA~ 1 May 80) 33
PERU
Assets of Peruvian Arm.~d Forces Detailed
~DEFENSA, Mar 80) 34
_ IIItUGUAY
Arismendi Outlines Economic Policy
(DPA, 30 May 80) 37
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ARGENTINA
COLiJNIl~TIST SURVEYS CURRENT LABOR, POLITICAL CONCERNS
Buenc~a Aires LA OPINION in Spanish 27 Apr 80 p 11
(Article by Eduardo J~ Peredes]
[Text] One of the greatest aspirations of the military government is to
achieve laying the groundwork to be used so that Argentine labor unionism
will not engage in partisan politics. Practically speaking, so that it
will not be a uniting factor for an election victory obtained by upsetting
the economic power that it foxmerZy had with control of the funds for so-
cial works in exchange for a goc~d share of political power expressed in
public posts and considerable effects of ;~ressure on the economy.
Zhat aspiration by the military government is shared necessarily by any
politician. who feels tnat democracy is a way of life and not a method
for arriving at government authority. Peron, who was everything except
democratic, never was concerned over having an organized political party,
inasmuch .as he had the monolithic support of worker power through the for-
mer CGT [General Labor Confederation]. Z'he deceased leader amused him- ,
self with the vicissitudes of the political and women's branches. His
constant concern was for labor unionism, both for election purposes when
he was formally in office an~ for canspiratorial purposes when he was in
exile. He also invented that m~�ter of "the backbone of the movement"
and he was not exaggerating, although he was very careful to point out to ~
them that they should not confuse anatomical conditions to the point of
believing that they also were the brain. Augusto Vandor tried to be the
brain in addition to the spinal column. We are well aware of how he wounci
up.
Any general confederation of workers, anywhere in the world, is organized
as a trade-union body with partisan political objectives and not for a
better defense of the right~ of labor. It may be.a.commun~,st,.Christian~.
- democratic, socialist or any~other confederat~:on, but~it will always
respond to an ideoloqical line tied to a political party, regardless
of whether or not the system in which it operates is democratic.
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� In Argentina, the CGT was a Peronist organization, for Peronism, by Peron-
ism. The machinery was set up powerfully and even its cases of splits in
favor of Marxist groups, like the case of the CGT of Argentinians commanded
by graphic arts unionist Raymundo Ongaro, languished in~:class-oriented at-
tempts when faced with the power of the Peronist labbr union machine. A1-
though it can be argued that Peronism, withoi~t the CGT;is a~ppfitical force
capable of winning, it is much a?ore true to state that Peronism, with the -
support of the CGT, cannot lose. Therefore, the Peronists in the political
leadership, who are dreaming of another 1973, are constantly preaching on
the need for "monolithic unity of the organized worker movement," a dia-
lectic phrase summarizing basically the simplicity of speaking Af a Peron-
ist CGT, guarantor of election victory in exchange for incalcuiable por-
tions of political and economic authority.
'lhe we~k served to see the labor union efforts in an attempt to formalize
single headxng of the leadership, taking as circumstantial excu~e the ap- _
pointment of worker delegates to the next assembly of the Internatianal
Labor Organization in Geneva, a world forum involving everyone govern-
ment, businessmen, workers because of its importance to the i-nternation-
al relations of the three political power groups in a republic mentioned
above, a situation that does not vary because of the artificial status of
the present Argentine State. But, although the subject matter of the ILO
_ requires the labor union sectors to take the bull by the horns, the poli-
tical factor of unity sought after in the middle of a situation of abso-
lute internal division surrounds the trade union deliberations.
That division did not emerge from the order of the new Law on Trade Union
Associations that prevents the establishment of third-degree bodies, or
confederations. The divisionist stirrings data back to the time of the _
Lopez Rega administration and intensified starting in March 1976, in view
of a question cominon to every labor union leader: What to do with re-
gard to a system of military government authority absolutely different ~
from previously familiar ones and with regard to the military backing of
an econ_omic policy that makes no pacts with labor unionism either on
wage policy or on ideological philosophy?
Grour~ds far doubt to be taken well into account. Actually, the same per-
plexity observed in labor unionism prevailed in the business and political
- fields, in view of the unusual nature of the rules of the game. But, from
the political point of view, the trade union sector was the one fihat
seemed definitely called upon to have to change attitude, in order to
survive.
Without the basic sponsorship of the leadership of the Metalworkers Union
within the framework of the 62 Peronist Organizations, the CG7C needed ~
neither interventions nor special legislation to become a rubber stamp.
_ And for the sougYit-afttar. labnr.:uni:nn -.un~i.t~Z ~to-became a~ utopia.
Z'he topic now consists of the game of "I take on more, I take on less,"
between the subgroups of the National Labor C~o~nission, the Group of the
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25 and the Group of the 20, which formed the CUTA [Unified Leadership of
Ar.gentina Workers], as politically ephermeral as its acronym is cacopho-
nous in sound. Informed sources report that another CUTA will be esta-
blished on Wednesday with a majority and exercise of the office of secre-
tary general of the moderate group of the CNT [Natior.al Labor Commission~,
capable of appointing delegates to the ILO without major problems. -
But tkie situational topic vanishes before the political reality of Argen-~
- tine labor unionism. Its unity is without motives, if there is no poli-
tical plan to which a confederated labor union force~can qive ideological,
proselyti:st, economic and mass activist support. Let us see.
Z'here are not even remote signs of organization of a party from the gov-
ernment authority that may need a pact with labor unionism.
All the member groups in CUTA lay claim to its Peronist ideology, but with
such a degree of shades that could just as well serve the right as the left.
_ There is no proselytizing machinery to offer, because there is no election
race.
With the new law on social works there are no large sums of money to mo-
bilize for political purposes.
~ There is no rank-and-file activism of a sort to propose mass action with
a predetermined objective. _
In short, the conclusion is reached that, under the present circumstances,
labor union unity is not only difficult but also would serve absolutely
_ no purpose.
Profit and Ethics
The commander in chief of the Navy, ALM Armando Lambruschini, stated,
last 'I'hursday in the first annual luncheon offered by the Association _
of Directors of Enterprises anciiriarketing, that profit is one of basic
driving forces of economic progress, but that this zeal may become a social
cancer, if the great ethical rules,~.the basic.p~inbiples:of justice and the
simple but ironbound rules of com~on sense are forgotten.�� An idea cur-
rent in much modern political thinking and even with the deep:ethical
roots of our religion, because that principle is the basis for what is
today called �`.he social doctrine of the Church in an eagerness to put a
la.bel on things, because actually i~t does not respond to a doctrinary
principle but rather it is derived logically from a religious dogma
oriented toward the dignity of man as an ethical guide to salvation of
the soul. On the other hand, other religions have no dogma linking the
tempor_al with the dicine.
Records show that the head of the Navy has already expressed that kind
of thinking on other occasions, but in these cimes of failing banks
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not all, of course, but some with a large volume of unbacked transac-
tions and of investors and szvers who have a hard time seeking to
collect thEir guarantees, the topic of profit and ethics takes on a spe-
cial dimension.
Double aspect: the private economy aspect of a business type and the pri-
vate or state financial aspect dependent on the management and effective-
ness of laws. The great maJority~of-prinate business are developing fav- -
orably. But in some an excessive desire for profit is restricting in-
vestment on modernization for seeking productiori~.efficiency and also wage
flexibility, to the detriment of the system of production and, therefore,
of general well-being. But the problem of the four banks liquidated by
the Central Bank in vieFa of their impossibility for coping with the lack
of control of their administration is still more serious, because the
affront to the citizens in general is direct.
~ In this connection, the policy of Dr Jose Alfredo Martinez de Hoz is one ,
of characteristic indifference. Z'he Law on ginancial Bodies, the atti-
tude of the private economic groups managing the banks and the resul*_s
are there. In that respect, whoevex does not coriform-with the rules of
the game specified by law, fails and the guarantee funds brought in end
up by palliating, witliout.regard for the effects on the nervous system of
savers, of those who placed their mc~ney, be~ieving;.on the basis of the
experience of their grandparents, that a bank is a bank and nothi.ng bet-
_ ter than a bank for keeping money.
From the financial body downwards, the law and its effects are irreproach-
able, because they measure responsible and irresponsible persons with the -
s~ame yardstick and without compassion. Responsible pe�rsons have no ~ro-
= blems. Irresponsible persons do have problems, insofar as they have time -
to be able to go to the United States to live, while lines of despera~e .
_ persons form up in front of the formerly pompous branches.
But what happens if we view the effects of the law from the saver's point
of view to the fate suffered by the financial bodies? Because it is the
same law that makes possible spectacular int~rest offer races that turn
the saver into an inexperienced speculator who has no way of having con-
fidential information on financial ruin and hastens to the bank that makes
him the best offer and then, later, is deceived.
From the technical point of view, the law is good, because it has sufficient
force to bring about the scandalous downfall of anyone who does not comply
with.it. But from the social point of view, it is open to question, be-
cause it lays the groundwork for a bidding competition in which an adven-
turer baits the hook with the tasty percentage lure finally bitten by the
comnon man, induced to pour his capital where he is led to believe that it -
will be best and, of course, ti.me finally shows th~t it was not..
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It is realized that Martinez de Hoz is not the father of each saver and that
- in a free economy society each one selects whatever bank he wants and, there-
fore, runs the risk that he wants. But if a change is sought in the way of
thinking, it would seem better to implement legal structures that will make
the people cautious and not structures that, owing to the weight of the
former way of thi.nking, lead thousands of persons to the vaults of the eco-
nomic criminals.
?'hat saying that when one is burned by milk he cries when he sees a cow is
true, but it does not seem fair for the innocent person to suffer nore than
the guilty party. Even if the risk is run that no one will want to drink
milk any longer, even though it has just come out of the refrigerator.
, Dialog
Americo Ghioldi was with General Harguindeguy at the political dialog�
table, accompanied by two of his colleagues a more radical than so-
cialist tErm Emilio J. Giarin.oni and Raul Dellepiane. Topnotch people,
as mediocre executives say.
- As was to be expected, it was a sensible, serious contribution, from which
two innovative factors emerged. One was a piece of advice they advised '
against forming an o.fficial government party and a aew institutional
- figure, by proposing the future establishment of a semipresidentialist sys-
tem of qovernment that will include a president and a prime minister. ~
Ghioldi knows because he is Ghioldi, b~zt he knows m~re because he is old.
He has seen very many attempts made to form official parties that were al~-
solute failures in the light of the results. This does not rule out the
possibility of the establishment of new parties, but not necessari?y c~ith
- the blessing of the government, although they may receive a bit of assis-
tance .
But the veteran social-democrat's wisdom emerged in the second topic that
- may imply constitutional continuity-- with a simple refonn of the Law on
Ministries with the present government system. It would not be diffi-
cult, in time, to go from the ~ilitary junta-president systern to one con-
sisting of a president and prime minister and it would give rise to the
same virtue, in the long run: preservation of the presidential figure in
view of possible government crises, just as, at present, the top leader-
ship of the Armed Forces is preserved with the instituionalization of. the
fourth man.
COPYRIGHT: La Opinion, 1980
~ 10,042
CSO: 3010
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ARGE~iTINA
P~GORARO ON BROAD RANGE OF ISSUES CONCERNING YACYRETA
Buenos A~res LA OPINION in Spanish 10 May 80 p 7
[Intarview with Jorge Alberto Pegroraro, exeoutive director of the
_ Binational Agency, by Estela Araujo;date and place not given]
[Text] Yacyreta is ha,v3r.g a crucial year. rt'his is the year when major
bidding for the principal p~oject, for the supply of turbines and genera-
tors, and for the spillway floodgates isscheduled ta take place. The bid-
ding will open in early June, and it is expected that conatruction will
begin on the project~at'thA beginning,of 1981
Meataxhile ~ the permanent �~oWn of Itu~aingo, on the 'ba~nks of the Parana Rivar,
is undergoing a transformation. Construction has already begun on its
modern school, and some of the 2~0 housing units planned for completion
have been finished. Soon the inn Kill be finislled, and the entire popula-
i
- tion of the sma.ll town is working like ants :arious tasks and pro3ects ,
, to make room for the thousaruis of workers, technicians and engineers xho
are beginning to show up on the Argentine and Paraguayan sides of the great
- Yacyreta dam. -
E~gineer Jorge Alberto Pegoraro patient~y and kindly answe~ed a seriea of
questions by LA OPINION regarding this issue. His t~oad experience in this
field includes serving as gene~al mana,ger of the state Yla~er and Ehergy
~ht ise (1966-71); director of the North Patagonia Hydroelectric Com- -
pany~HIDRONOR) at the beginning of the E1 Chocon p~ojects (~967-69)~
president of the 3a1to Grande Mixed Technical Commission (1968-72)i and,
as of 1978, executive director of the Yacyreta Binational. Agency.
_ [Question] President Jorge Rafael Videla's visit to the p~ovince of Misionea,
and his tour through the town of Itusaingo, in Corrientes, ca11 attention
= to the issue? of Yac�,~reta as a binational p~o ject of great importaxicc~. What
are the latest steps that have been taken in execut~g this p~oject?
- [Answer] Since the differences between Argentina and Paraguay regarding
- the placement of the dam a,rid the calculation of compensation for flooried
land have been overcome, Yacyreta. has moved ahead at a pace we could call
dizzying. A series of atages must be completed before the p~o3ect ca,n
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actually begin, so tha.t we can meet the schedule set forth by the two gov-
~rnments. The schedule is as followss the first kilowatt of energy should
~ delivered by the end of 1986, and the whole project ahould ba finished
by the snd of 1990. In accordance with this plan, we have fin~.ahed dr~w-
ing up all tha specifications for the bidding on the most importa,nt itema
of the work, such as the main civ i], construction projects. We ha,ve called
for bidding on these i+ems by the five eligible consortia. Tkiese inter-
nstional consortia sho~iid gresent their offers to us on 2 June. This is
the most 3mportant biddi:~g of the whole project, and one of the most im-
portant we ha,ve ever seen in our country.
[Question] What steps have been ta.ken in obta.i.ning complete fina.ncing;
tha,t is, wha,t loans do you have so far? -
[Answer] The loans contracted last year were ~rith the Inter-American Dev-
elopment Ba.nk and the World Bank, each for $210 million. They are not
very large considerinb the total cost of the project, but they do ha,ve
~eat value as a credit reference, a gi,iaxantee for obtaining other loans
on the world ca.pita.l market, and those loans could be very large.
- I would like to empha,size the loans we call export credits, or the credits
~anted by the principal ma,chinery~ exporting countries to the Yacyreta
Binaticna,l Agency. They wi11 enable us to pay wha,tever supplisr wins the
corresponding bidaing, in cash.
[Question] The loans are ~ontingen~ upon the bidding
[Answer] Certainly, these loans are what we ca.ll export cxedits, or also
"bi.~yer's credits, " beca,use it is the Binati.onal Agency that obtains the
loan as a truyer. These credits are finalized when the results of the bid-
ding are known, and they are utilized when the ma,nufacturer i,n a given
country wins the bid. Then the contractual clauses of the loan axe neg-
otiated, bu~ we already have letters of intention stating the amounts
and conditions set forth. You may reca.ll an offer by the U. S. Exiraba,nk
which recEived a lot of publicity, a 20-year loan with a 10-year grace
period (during which there is no pa,yment for amortizing the debt~ and
an interest rate of 7~4. We think tha.t today on the world money market
interest rates are running at about 18 to 20 percent in dollars. `
[Question] Among the difficulties that are plaguing a11, grojects along
, the Parana R~,ver, not just Yacyreta, there is the groblem of tropical dis-
eases. Xou ha.ve made some statements about this matter, and I would like
you to claxify them.
[Ansxer] This is samething which worries us very much at the Agency, be-
ca.use abviously Yacyreta must be a source of progress and benefits in all
areas, not just in the production of electrical energy, It would be very
serious if a disease such as schistosomiasis were to b~eak out in the
sphere of influence of Yacyreta Lake. For that reason, ~re ha,ve specialists
in that field working for the Agency. We have signed a,~reements with the
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public health departments of both nations, as well as the World Health
Organization~ and as a consequence st~ldies are being made to ensure that
this dir3ease, which has plagued somF, projects in Brazil, will not reach
Yacyreta.
[Question] The p~oblem is not ~ust limited to the anails that tranamit the
illness; it also includes people xho are hired to work on the p~o3ect.
[Answer] Tha,t is a question of p~eventive medicine. We are going to set
up a strict system of he:~?th control beginning with the worker's arrival =
- at the p~oject and continuing throughout his.p~esence there, so that an,y
pathological symptom can be detected immediately.
[Question] President Jorge Rafasl Videla said~ "We are a nation~ not a
group of p~ovinces." AlthouBh he xas not referring to Yacyreta when he
- sa.id that~ what is the attitude of the province of Cnrrientes toward
this project? In your view, wha,t are the benefits a,rid the damages that
the provincia.l economy could sustain as a result of a national.ly beneficial
_ project?
[Answer] In order to answer your question, I have to sa.y that the damages"
are minimal or nonexistent.. The ].oss of some p~oductive land due to flood-
ing, in the p~ocess of' ra~sing the level of the la.ke waters, could be con-
sidered damage. But these are sma.ll coastal axeas that are not tremendously
valuable. On the other hand, thare are many positive elemPnts, very posi- F
tive. -
Regiona~ development is one of them. Ituzaingo ha.s a population of 3500,
and it has almos~ atood still in time. There ha.s been little progress in
this region in recer_t years, but now it is to become a city of 20,000 to
25,000 inhabitants xith a modern int`rastructure of hotels, hospitals,
schools--in sum, ev~rything needed by a very modern city of na.tional prom-
inence.
This will produce a considerable regional impact, and will all.~w the pro-
~ v ince of Corrientes to improve its economy. The installation of a core of
people with a high standard of living and a completely modern infrastruc- _
ture will be very beneficial to the local econo~}r. Moreover, once the
project is completed the area of Ituza.ingo will undoubtedly be a ma~or
tourist attraction. .
That is, a huge rnimber of people will come every year to visit the project
beca,use of its magnitude. They will cross the river at the international
bridge which is being bu31t on the on the summit of the dam,and go over^into Para-
gu,a,y a.s well. '
This will be a permanent communication link. F~~rthermore, with the to~al
cooperation of local authorities, we are taking mea.sures to stimulate an
interest in tourism. Thus, during construction Itusair~go will be a very
busy city, and it will be just as bustling in the future when the work is
done.
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[Question] How are relations between the province of Corrientes and the ~
Yacyreta Binatioral Agency?
[Answer] We are working ve~y directly and with ~iendly, understanding
relations. The province has established a"special commission" whoae
cha.irman is Engineer Hardoy~ Tha,t commission da1].y oversees and coord-
ina.tes all the plans we are implementing.
[Question] After Yacyreta, and Corpus there has been talk af an internationa].
agre~ment policy at the level of our foreign ministry. As president.of
- the Argsntine-Para,gua,yan Binr~i,ional Agency, wha,t effect does this nex policy
have on your actions?
[Answer] The relations we ha,ve with our neighbors a.nd partners in this
pro ject are very gnod. Nos that we ha.ve overcome that problem tha,t areryone
was aware of, we are workl,ng on a basis of common agreement and mutual,
understanding. Iri my opinion, this has resi.Llted in 'better relations in
Corpus, and therefore in uur relations with Brazil.
a.~eement and the cl3mate of Yac I think the Yacyreta
yreta are ha,ving a favorable influence on
Argentina's interna,tional relations.
[Question] Well, you ha,ve turned the question axound. Is Yaoyreta a sort
of spearhead for our ne~r relations?
[Answer] I would not presums to sa,y tha,t much, 'but it ha,s certainly had
a beneficial effect on the improved relations with our neighbors.
[Ques~tion] President Videla's recent salute to his paraguayan counte~part
on his visit to Ituzain~o is an indication of the cordiality of relations
between the two na,tions.
[Answer] In addition, we should add that there were three presidential
- meetingss one in Sa,lta,, another in E~casna,cion-Posa,das, and. a third in
Buenos Aires, during a short period of time. This reflects the excellent
relations between the two countries.
COPYRIGHT; I,a Opinion, 1980
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ARGENTINA
_ ~
i
I
~
CENTRAL BANK INTERVENTION RECEIVED wilTfi APPREHENSIUNS
Buenos Aires CONVICCION in Spanish 27 Apr 80 p 12
[Article by Oscar Delgado: "Central Bank Took One Step Back and ~ao Aheasi, ,
but It Is Not Known Where It Is Going"]
[Text] Z'here is no doubt that today everyone is waittnq for the sun to ~
rise on the beginning of the week with a mixture of excitement, fear and, ;
perhaps, hope. Reason: to see how f Econom catla oundtsunsetroncFriday.e
measures announced by the Ministzy o Y
Will small-scale and medium-scale saver~ calm themselves and begin to re-
turn their pesos to less high flying banks and financial institutions? Up ;
to what pc~:~:7t did the arrests of officials or, at least,:.some of the in-
- tervened b~~nks put people at ease or disturbed them, or both7
Because this surely will qive rise to a psychosis in the psycho?ogic~lly
exhausted saver� possibly some thought will he given in some office of
the Ministry of Economy or of the Central Bank to issue a detailed re-
port to public opinion, specifying responsibilities among the intervened
banks. With regard to Friday's communique, three kinds of ineasures .
emerge definitely: intervention of the Los Andes, Oddone and International
banks to which other smaller institutions are said to be about to be
added a situational political solution intended for bolstering public
confidence (increase in the amounts of personal deposits quaranteed by
the nation to 100 million pesos, and an emergency guarantee of deposits
in foreign currency for equivalent amounts, made up to last Friday),
and a measure of structural nature like expansion of the Central Bank's
powers, which, when the pertinent future law is signed, may sell or
merge financial institutions, if it regards it as necessary for settling
irregularities or for increasing their solvency to prudent levels.
This is the most important measure to `r.ose who most fear the state's par-
ticipation in private business. It is also the one that is giving them
the biggest headaches. Z'he Central Bank can not only re~ort to the "final
measure," but can also intervene directly in coordinating the banking sys-
tem. It really is not a bad idea, provided decisions in that connection
are mac?e with the consensus of the financial community.
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Because the BIR [expansion unknown] case aiid the problems of the institu-
tions just intervened did not come up but they did take on a catastrophic
dimension at least in the image of public opinion to a considerable
extent, because many Central Bank officials and employees appeared to be
excessively indifferent to what mar.y banking representatives and other
observers, including, of course, representatives of the Armed Forces,
suggested and feared. -
Because, aside from the police aspect of these matters which may be
pr.�esent in some cases but not in others the absolute limit was reached
when control was lost over certain policies on attracting funds and exten-
sion of loans initiated by some upstart bankers at the sound of the frenzied
financial dance in 1977 and part of 1978, the same ones who, later, were -
unable t;o stop or restrain themselves. -
But it is also true that the same Central Bank rules almost encouraged
turning upaid loans into real revolving transactions and that modifica-
tions of that situation were made recently and almost suddenly. Because,
when a contraction occurred in takinq out loans in very many cases because
of the nonrenewal of real delay transactions, too much money was left "in
the air" (often, money attracted a a high price).
Well then, the fact is that some of these bank failures resemble too much
those accidents fatal at times suffered by mischievous children who
are suddenly left without the necessary supervision of the nursema~d.
The idea of a Central Bank controlling with a strong hand is far from our
head. Even farther from our thoughts is for this institution to manage
the financial system from the top. But there is no doubt that savers, in-
vestors and borrowers have the~right to demand a strengthening of the au-
diting functions of rhe central institution. It should also be more re- -
ceptive in its directorate of concerns expressed by banking officials.
_ Strictly speaking, if we are aspiring to a Central Bank independent of
the political authority, it seems logical for it to have a more fluid
relationship with all members of the financial community, without being
an organ of the bankers and even less of a group of bankers.
One final concern: the situation for savers has also made officials ne-
glect the fate of borrowers who now note much greater hardness on the part
of manag~ers with regard to their requests for loans or overdrafts required
to maintain the pace of their activity. And it is not a question of de-
faulters. The fact is only that banks have become hyperprudent.
But this also brings up this question: What will turn up tomerrow?
COPYRIGHT: 1980 Conviccion
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ARGENTINA
RECOVERY OF FINANCIAI~ SECTOR TII~IID ' VERY GRAnUAI,'
Buenos Aires LA OPIldION in Spanish 4 May 80 p I(Econ. Sec.~
[Article by Daniel Fern~xidez Caaedo]
[E~ccerpt] The financial market finished up Ap~il under much calmer circum-
stances.
Although it cannot be said. that the close of last month marked a period of
normal transactions, the system was able to survive the most difficult
period since the implementa,tion of the Financial Reform in June 1977,
- although not without susta,ining partial damage.
- Actually, it is complicated to talk about the market in general because
throughout the last week of the month ~he two sectors that ha,ve dsfined
the market since ahortly after the closing of the Regional Exchange
Bank have held their ~ound.
In this manner, the sec~or of xhat oould be termed large institutions
(official and fore,~.~ banks and some national ones) finiahed up April with-
out any difficulty in complying xith the reserve requirements. The atnount
of deposits was surely much highnr tha,n in the beginning (the exact figurea
aze not known). The othe~ se~nant of the market, that of smaller institu-
tions, really had p~oblems in complying with technica,l regulations.
In recent da.ys, there has been a rise of a'bout 7 points in the txansactions
a.mong in~titutions in the second sector of the finan~ial circuit. On Wed-
nesday the total amounted to the equivalent of 70 to ~'S percent annually,
for two days.
It is noteworthy that betxeen the txo seg~nents of the market mentioned above,
there wa,s also an intermediate sector xhich ended April without an`y problem. -
However, it had no excess lending ca.~a.city, as did the large~ institutions.
- Setting aside for now the problema encountered by some institutions~ it
ca,n be said that the market was ca]mer once it becaane gene~ally knoxn that
there was once again an almost f,otal guaxantee of deposits.
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- The grPater ca.lm on the part of investors, traders and bankers cioes not imply,
as one would logically assume, that the difficulties are over. In principle,
the return of the tota,l guaxantee did not drastically cha,nge the behavior
of the intervening factors in the market.
The psocess of returning to normaa.ity will take time, and no one is dis-
- counting the possibillty of continued vaxiations.
~ To da.te , bearing in mind that there ha,ve been few changes in the p o s t e d
rates of the institutions, it is ddfficult to predict an esca.
pe for the
agencies that experienced a significa.nt drop in their deposits after the
closing of the Regional Excha,nge Bank, beca,use they xould ha.ve to increase
their rates in order to avoid losing most of the deposits. They must also
deal with the return of the advances from the Central Bank of the Argentine
Repub3.ic (BC.RA) by means of c3rcular RF 1051.
Thus, for a core of institutions the economic picture is not t~ight, but
the BCRA ma,y very well decide to be flexible on the return of the 1051
advances in order to contribute to the tranquility of the maxket.
If so, and if investors once more give more consideration to the interest
rate tha,n to risks, in the medium term the situation wi11 proba.bly return
to a similar state to tha.t of the pre-28 Maxch period.
April ha.s undoubtediy left its maxk, and in many ca.ses it was not t~ery fav-
orable.
COPYRIGHT: I~a Opinion, 1980
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A~GENTINA
NEW F'OREIGN INVES~fENT ACTNITY LESS THAN MODERATE
Buenos Aires I,A OPIIIION in Spanish 4 May 80 p IV (Econ. Sec.~
[Article by Jose Angel Martelliti]
[Text] According to recent figures p~ovided by the Econ~omics Ministry
(Under Secretariat of Foreign Investment), forei,gn capital investments dur-
ing the first qua.rter of the yeaic reached ~$96.1 million. That ~ings
the tota,l since 31 March 1977 to $1.6305 billion. It is worth noting
that 60.5 percent of this sum came f~om nex ca,pital contsibutions, 25.8
percent from reinvested p~ofits and 13.7 percent, the rema.inde~~ from the
capitalization of credits. �
In this context, three economic sectors accounted for p~actically 55 pe,r-
cent of ap oved investments (gas and oil p~oduction, automobile p~oduction
and mining~ while more tha.n 70 cent of these investments originated
in activities by four countries tUni~ed States, Holland, Ita1y and Germar~y).
According to estima.tes published ty the World Bank (Report on World Dev-
elo~ent, 1979), direct net p~ivate investments in develop~ng countries `
from 1975 to 1977 reached the equivalent of approximately 15 pe~cent of
the net income from medium- and long-term loans in these areas.
- This achievement came after a period of relatively rest~ricted flows of
capital on the inte~rnational ma,rket--pa,rticularly during the deca,de of
the sixties--with an average annual rate of 4 percent in real terms.
That c~apital squeeze was due to controls exezted by most developing coun- `
triss and regulations p~evailing in some of thP p~incipal indust,rialized
na.tions. ,
Greater economic growth and more pra~uatic polici.es rega,rding transna,tional
corporations in medium-income areas, as well as the jwnp in raw ma,terials
p~ices, resulted in a significant resurgence 3n the flox of capita,l during j
the seventies. The Fed.eral Republic of Germar~y, the United Sta,tes, F~ance, ~
Japan and ~gland supplied more than 80 percent of the tof.al capital flow '
between 1960 and 19?6. ;
I
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Nearly 40 percent of foreign investment during the decade f`rom 1966 to 1976
was channeled toward I,atin Ameri~a, and the Caribbean. Some countries in
the region have even begur. to make direct investments in other countries
of their own geographical area. ~
In recent years there ha,ve been cha.nges in relations between the trans-
na.tiona,ls and developing countries, shedding new light on this controver-
' sial issue. In the first place, pa~rticipation in ca,pital stock is being
replaced gradua,lly by the establishment of supplier loans and csedits.
In the second place, direct maxzagement control by the
being replaced by participa.tion in administration assista.ence~~~ny is
participa.tion in ~oductior. and supply contracts.~ ~=eements,
These changes are partially due to the reaction of the transna,tiona.ls to
_ controls imposed by the host countries, and also to the incsea,sed competi-
tion by new transna.tionals that are more and more willing to adapt to the
demands of these countries.
The economic policy of the host nation is of vital importance in the form-
ulation o:~ strategies designed to stimulate foreign investment. Studies
on this issue indicate that such policies, as well as the economic structure
and the degree of development attained by a country are much more importa,nt
for attracting foreign investment thaxi axe special incentives, which in
the fina,l analysis are costly and often ineffective.
Argentine legislation regarding foreign investment was
In ganeral, it offers forei~n investors conditions similarsto h se enjoyed~
by loca.l investors.
In this sense, foreign investment is authorized in neaxly all sectors of
the economy, either in the form of foreign reserves, capita.l goods, capital-
i z a t i o n of aredits, know-how ~ rejnvested profits. At the same time,
foreign firms are allowed to sign loan agreements and technology transfer
- contracts with Argentine subsidiaries.
Registered investors have the right to remit all of thelr profits and to
repa,triate their ca.pital, even if exchange controls axe in effect at the
time.
The latest reports on foreigr, i.nvestment levels indica.te tha.t they ha,ve
reached a total of $1.6305 billion between 1 Marah 1977 ~nd 31 March
1980. The following conclusions~ among others, can be drawn:
--Investments in the form of "new ca,pital contributions" (60.5 percent of
the total), ha,ve steadily risen in relative annua,l tertns;
--On the contraxy, funds origj.n,ating in the "ca.pitalization of cxedits"
(13.7 percent) ha,ve behaved erratically during the period in question,
with a definite tendency toward a smaller share of the total (29.8 percent,
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~
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12.4 percent, 10.6 percent, and 0,3 percent in 1977~ 1978 and 19'?9 and tl-~e
~ ~irst quaxter of 1980, respe.�ti�~ely);
--With regard to the "~eirnestment of pro~its" (25.8 percent), there ha.ve
been steady inareases in absolute terms (US $122.4, US $135.1 and U3 $162.8
millian in 1977, 1978 ~d 1q79~ respectively)~ although this category's
relative share in the total investments ha,s been on tne decline (45.4 per-
cent, 29.9 percent and 2C.1 percent in 1977, 1978 ~ 1979, respectively)=
--During the period in question, the p~incipal destination of app~oved in- -
vestments has been the gas and oil p~oduction sector (24.~F percent of the
total), followed in order of importance by the automobile industry (15�9
- percent) and mining (13.8 percent). In the latter sector and the oil arid
gas sector, investments have come exclusively ~om "nex capital contribu-
- ~ tions," while in the automobile industry 57.9 percent ca,me from "new ca,pital
- contributions" and 42.1 percent, the remainder, from "capitalization of
c,redits." In both cases, given that the report does not specify, there
wa,s no investment from the "reimestment of p~ofits" category; and
--The United States is first among the countriea of origin of approved ~ .
investments, with 42.3 percent, folloxed by Holland (13.1 percent), Ita.ly
(8.7 percent) and. West Germany (8.3 percent~, among others. These four
countries covered gractically 75 percent of all investments.
With the exception of Italy, it is n~oted that most of these funds come
p~imarily from the "new capital contributions" category.
l~lthough an evalua,tion of the results obtained in terms of foreign invest-
ments over this period would be p~emature, given the lack of complementary
_ information and the limited t3me available to observe its impact on economic
activity, in principle we may make note of it~ low volume, even taking into
consideration the better years. In 19?9, for exaaaple, investment rep~esen-
ted about 1.4 percent of the gross domestic p~oduct. Another oonsideration
is the important relative position of reinvested p~ofits.
COPYRIQ~Ts La, Opinion, 1980
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COLOMBIA
M-19 ANNOUNCES SUPPORT FOR PROPOSED NATIONAL STRIKE
PAO 12005 Rome IPS in Spanish 1815 GMT 31 May 80
[Excerpts] Bogota, 31 May (IPS)--The 19 April guerrilla movement (M-19), which
became internationally notorious for having occupied the Dominican Embassy on
27 February and having held it for 61 days, today announced its support for the
- national civic strike proposed by various popular sectors. ~
The idea of a general halt in activities in repudiation ~f the high cost and
poor standards of living of the popular sectors, was initially proposed by the
' National Labor Council [Canse~o Nacional Sindical--CNS], which serves as coordi-
nator of the four main labor unions.
The civic strike plan, for which a date has not`yet been set, was also supported
by political organizations, including the Co~nunist Party of Colombia and the
Firmes [a leftist group] movement.
Now the M-19 has also expressed its support for the pressure tactics. Support
for the measure is noted in the May 1980 issue of the M-19's official publica-
tion. A copy of the bulletin was sent to IPS offices in Bogota today.
- The cover of the M-19 publication carries the slogan: Against the state of -
siege, against the security statute, for increased wages and a freeze on
prices, for the release of the political prisoners: national civic strike.
The editorial analyzes the events following the end of the occupation of the
Dominican Emt~assy, which was described as a victory for the people.
The M-19 later reiterates its call for a dialogue with the various Colombian
political sectors "in order to avoid a confrontation that has been looming
for many years."
We helieve that the countxy can still return to democracy, to a dignified
life, with4ut the state of siege, without a security statute, and without
political prisoners, the M-19 says.
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For our part, the M-19 says, we are willing to talk, to discuss everything
that concerns the welfare of our people and our country. On the other hand,
we are also prepared, along with the people and by means of arms, to respond
to the government minister's proposals of war and to wage the battle for our
country's definitive independence.
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CUBA
U.S. CAMPAIGNS TO DISCREDIT CUBAN REVOLUTION ASSAILED
- PA100248 Havana PRELA in Spanish 2236 GMT 9 Jun 80
[Article Uy Victorio M. Copa]
[Text] Havana, 9 Jun (PL)--A Cuban woman living in the United States said
here today that the U.S. Government has systematically used persons who
- illegally left Cuba to wage campaigns to discredit the revolution.
"It has been a nearly 20-year campaign of slanders against the Cuban revolu-
tion," Maria de Los Angeles Torres, press and propaganda officer for the
Antonio Maceo brigade told PRENSA LATIr'A and Radio Havana Cuba.
The your:g woman, who was sent to the United States by her parents in 1961 in
, the so-called "freedom flights," said U.S. officials treat th.ose who hijack
ships as "heroes." _
"In tlieir antirevolutionary campaigns, they (the U.S. officials) said these
persons came to the United States for political reasons," Maria de Los
Angeles Torres said.
However, she added, now Washington claims it cannot absorb the antisocial
persons who imbued with the "American coay of life" want to go to the United
States. According to her, Washington increased its campaign of discredit
following the triumph of the Sandinist front in Nicaragua, in order to under-
mine Cuban prestige.
The young resident in Ann Harbor, Michigan, close to the Canadian border,
- said most of the Cubans in the United States believe that the permanence of
the U.S. Naval Base in Guantanamo to 6e a flagrant violation.
"Guantanamo, as well as Vieques, represents U.S. military intervention in
the Caribbean and Latin America in general," Maria de Los Angeles T~rres said. _
She emphasized that the U.S. spy flights with SR-71 aircraft over the Cuban
national territory are flagrant aggression.
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She criticized the racist wave existing in the United Stat~~, especially in
Miami and said it is a maneuver used by ruling and financial circles to con- '
front the economic crisis affecting the nation.
She also criticized the im~nigration laws since "they are applied selectively
by the respective administrations to allow certain sectors to immigrate, for
political reasons or because they need cheap m3npower."
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CUBA -
LATIN AI~IERICAN ECONOr1IC MEETING CONDEMNS IMF POLICIES
PA090159 Havana PRELA in Spanish 2115 GMT 7 Jun 80
(Text] Havana, 7 Jun (PL)--The IMF has become "a police institution to get
a financial stranglehold on the underdeveloped cuuntries," the final report
_ by the I.atin American colloquy on the world economy has charged. The document
was approved after 5 days of sessions held here by prominent Latin American
economists under the auspices of the UN University.
The terms set by the IMF for its loans, the report says, respond to the most
backward socioeconomic policies and are also intended to support unpopular
regimes and to destabilize the governments committed to the cause of their
peoples.
The participants think that the practices of the financial organization based -
in the United States are inexplicable. Some of the participants recalled the
breakdown in the negotiations that the Jamaican government was holding with
the IMF early this year.
The Latin American colloquy stressed the need to make a substantial increase -
in the flow of funds to the "Third [dorld" under conditions that represent a
real contribution to development.
A resolution--which had been proposed by Cuban President Fi.del Castro and was
approved by the latest UN General Assembly meeting--to increase development
_ aid by no less than $300 billion in this decade was emphasized here.
Several of the economists attending the colloquy said that the various efforts
to reform the monetary system within the institutional framework created at
the end of World War II are futile because the ;nechanism has been totally
crushed with the dollar crisis.
Instead they suggested establishing a new monetary system on the condition
that it be democratic, ti~at it represent the entire international community
and that it prevent domination by a country or group of countries to the
detriment of the underdeveloped countries.
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. Oscar Pino Santos (from Cuba), president of the Center far Research on the
World Economy, closed the sessions last night which had been addressed by
Celso Furtado (from Brazil), Pedro ~'uskovic (from Chile), Alonso Aguilar
_ (from Mexico), Prof Frances Gerard de Bernis, who was a gues~[ speaker, and
- other personalities.
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~ CUBA
BRIEFS
NICARAGUAN YOUTH TIOVEMENT'S ROLE--Havana, 21 May (PL)--The Peoples Literacy
Army [EPA) not only teaches the peasants but educates the student youth in
the Sandinist spirit of love for the people, Nicaraguan Commander Carlos
Carrion said. In statements made ta the Cuban newspaper JUVENTUD REBELDE
the Sandinist delegate for youth and li~eracy affairs explained that the
19 July Sandinist Youth Movement is being formed simultaneously with the
_ development of the literacy campaign. Carrion said that at present this
organization has 12,000 members, but at the end of the campaign this number
will increase to 25,000 or 30,000. Commander Carrion also announced that
the first congress, which will be very important for the organization's
- future, will be held next year, Carrion added that the foundations of this
_ organization are not only being laid among the members of the brigade but _
also among the young peasants who are being taught to read and write so
that the organization may take roots in the rural areas. The Sandinist
leader said that the main objectives at present are the success of the
literacy campaign, the political and ideological training of youth and the
development of discipline. Carrion also stated that they will try to pro-
mote the organization among univer~ity students and that the first steps
have been taken to form a children's organization. Our youngeat generations
have a great tradition of struggle and their great task at preaent is the
literac:y campaign and the other activities facing the Sandinist revolution,
Carlos Carrion said. [Text] [PA222340 Havana PRELA in Spanish 0130 GMT
- 22 May 80]
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~ ECUADOR
4ICE PR~S IDENT INTERVIEWED ON POLIT ICAL S ITUATION
LD271221 Madrid CA.MBIO 16 in Spanish 25 May 8p p g7
[Undated interview with Ecuadorean Vice President Osvaldo Hurtado Larrea -
in Quito by Jose Fajardo: "Under Shadow of Dictatorship"]
- [Text] Exactly 1 year after President Jaime Roldos Aguilera's election,
following 7 years of successive dictatorships, Ecuador is facing a serious
political crisis. The president was "sponsored" by Populist leader Assad
. Bucaram, who was unable to stand as a presidential candidate, owing to the ~
military's veto. Instead, Bucaram backed his wife's uncle, Jaime Roldos
Aguilera. Now speaker of the House of Representatives.and holder of the
majority of its votes, Assad Bucaram is now confronting his "protege" and
obstructing his bills.
This crisis is taking place just as the Spanish king and queen are due in
~ Ecuador. The conflicts within the Bucaram family--"tribal fights" accord-
ing to one Ecuadorean liberal politician--have degenerated to the point ~
where Minister of Government Carlos Feraud is being subjected to a political
trial.
In fact the conflict between Bucaram and the president has placed the head
of state in "legislative o position." This is why Roldos Aguilera is con-
sidering the possibility of holding a referendum which would make it poasible
to dissolve the chamber and hold further elections to neutralize the vast
power of his "former godfather" Assad Bucaram.
Vice president of the republic Osvaldo Hurtado-Larrea discussed the serious
situation in depth in an interview granted to CA1~B IO 16's apecial corres-
pondent Jose Fajardo,
Referendum the Solution
The vice president believes that a referendum is the only option for "radic-
a11y" resolving the confrontation between the executive power and the legis-
lative p wer. "It is the only way," he emphasized, "in which the E~cuadorean
people can return to the ballot boxes and express their opinion. The previous
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elections were invalidated to some extent, because many deputies ran to
support the government and now �orm part of the opposition.", ,
~
"In a democracy," he added, "the people are entitled to revoke the mandate ,
which they gave their repreaentatives and which hae not been properly dis-
charged."
i
CAMBIO 16: But, Mr Vice President, a period not less than 120 days
would be required for calling the referendum, and severalmore months for i
holding the electionso Would not that political vacuum be dangerous for
a country which is still "in the ahadow of the dictatorahip"? ~
~ Osvaldo Hurtado Larrea: The dangers undoubtedly exist, especially since
passions seem to carry more weight than a aense of history for some politi- ;
cians. If we political leaders do not succeed in resolving the situation ~
through consensus, it is natural for us to have recourse to the source of, '
sovereignty.
CAMBIO 16: It is being said that the greatest danger would be to give ;
President Roldos special total and dictatorial powers for several months.
_ Osvaldo Hurtado Larrea: It seema to be esaential for the president to be
- granted powers to dissolve the chamber, I believe that would help resolve
the problem. As far as the president's legislating is concerned, that is
an institution which already existed in the previous constitutions. Accord- -
ing to the 1946 constitution, the president had powers to legislate through
emergency decrees. Moreover, I believe that the president is a~udicious
_ and democratic man, who will not use those powers arbitrarily. -
CAIKBIO 16: Mr President, what do you believe are Mr Assad Bucaram's aims?
Some of the government's supporters maintain that, since he has not achieved
power, he is seeking to destabilize the government and benefit from this
situation. -
Osvaldo Hurta.io Larrea: Mr Bucaram could answer this question better. It
should be borne in mind that a minister ia currently being interpellated
in the chamber in an obvious deaire to destabilize the government. And
over the last few weeks there has even been talk of impeaching me--the vice
president. Some people have even talked about impeaching Preaident Roldos.
If a minister is interpellated, it is with the intention of eliminating him,
and if the vice president or president is impeached, it is not in order to
give them a vote of acclamation. This interpellation could have unfore-
seeable political consequences. This week we are experiencing a time of
hazardous political clarifications.
CAMBIO 16: Would a return to a dictatorship be one of these dangers?
Osvaldo Hurtado Larrea: Not at all. In the first place, I believe that
a democratic attitude predominates in the chamber, even among some opponents
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of the government~ Moreover, public opinion firmly supports President
Roldos. Third, the armed forces, following the unpleasant experience which
they underwent for a decade, have decided not to intervene again.
CAMBIO 16: The government's plan for economic transformations has been
blocked by the chamber. How do you interpret this atance?
Osvaldo Hurtado Larrea: The old policy, the old Ecuadorean oligarchy de-
feated in the last elections, has barricaded itself in the chamber to pre-
_ vent progress and social regeneration.
King of Spain's Visit
CAMBIO 16: Has the economic situation improved?
_ Osvaldo Hurtado Larrea: I believe that in the first place we have put the
house in order. The inflation rate is 13 percent, despite wage increases.
Trade and expo�rts are continuing to increase dynamically. We have a favor-
able balance of payments and trade. The principal problems lie in invest-
ments and taxation.
CAMBIO I6: With respect to the King of Spain's visit, what specific re-
sults are being expected?
Osvaldo Hurtado Larrea: For some time we have been negotiating with Spain
several agreements which are quite well advanced and which should be resolved
with the delegation accompanying the king. His majesty's visit should be
viewed within the new perspective o� Spain's policy aimed at consolidating
cultural and economic ties with Latin America. I believe that the visit
also indicates the desire for communication between two democratic systems
which have emerged following a lengthy dictatorial interruption. We--and
I include the ~cuadorean Government and people in this--appreciate the fact
_ that the first visit by a head of state since our democracy was restored
~ 10 August last year will in fact be that of the Spanish king.
- COPXRIGHT: 1980 Informacion y Revistas S.A.
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- EL SALVADOR
HUMAN RIGHTS OFFICIAL ASKS EUROPEANS FOR SUPPORT
PA172321 Havana PRELA in Spanish 2022 GMT 16 May 80
[Report by Angel V. Ruocco]
[TextJ Bonn, 16 May (PL)--The United States has directly intervened and
continues to do so in the repression unleashed against the Salvadoran
people, Marianella Garcia Villas, Salvadoran Human Rights Commission
president, pointed out.
In a statement to PRELA, Garcia Vi11as, a Salvadoran lawyex�, today
charged that the 15 October military coup promoted by the United States,
opened a new era in E1 Salvador's political process characterized by an
open violation of human rights.
Garcia Villas, who is also vice president of the International Federation
on Human Rights, is touring West Europe together with Jose Antonio
Hernandez, a spokesman of the Salvadoran Human Rights Commission, report-
ing on the current situation and the probabilities of a direct U.S. armed
intervention in their country.
The Salvadoran problem, Garcia Villas said, should be analyzed according
to the country's economic and social characteristics, because the causes
of the violations to human rights in the broadest meaning of the word
stem from them.
She added that the United States directly participated in the 15 October
coup, by giving the junta over $5.5 million in arms and military advice
on counterinsurgency.
"U.S. military advisers have been in E1 Salvador since the beginning of
1936, participating in repressive operations against the peasants and
in questioning of Salvadoran political prisoners," Garcia Villas
asserted.
Garcia Villas added that there is definite proof of U.S. participation in
_ the military coup which coincided with a new U.S. policy toward Latin
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America which consists of trying to improve the image of military dicta-
torships establis'.ed and supported by the North Americans themselves.
Although the U.S. Government originally intended to give a reformist
appearance to the regimes which were to replace the obsolete military
tyrannies, now it has changed plans, Garcia Villas indicated.
The resignation of Cyrus Vance as U.S. secretary of state, a victory of
the hard line maintained by Zbigniew Brzezinski, assistant to the presi-
dent for national security affairs, could harden the situation for Latin
America and increases the possibility of a direct armed intervention of _
the United States in E1 Salvador, Garcia Villas stressed.
"Leaders of the extreme rightwing National Broad Front (FAN)," Garcia
Villas added, "have just toured the United States to ask the intervention
-
of U.S. troops in our country.
Garcia Villas said Retired Maj Roberto d'Aubuisson, FAN leader, was at the
Pentagon to request this intervention. "He was the one on television who
threatened and insulted Archbishop Oscar Romero, who was assassinated
shortly thereafter, and other opposition and labor leaders," Garcia Villas
said.
"There are reports that the United States has sent Marines and helicopters
somewhere next to Costa Rica, close to the border with Nicaragua and that
it is creating incidents and tension in the area of the Caribbean Sea and
Central America," Garcia Villas charged.
"Besides," she added, "it is also known that mercenaries and former mem-
bers of the Somozist National Guard are receiving military training in s
hacienda in Guatemala." ~
It is no secret either that the government of President James Carter is
the main support of the Salvadoran Government junta, which each day is
more isolated from the people and more responsibl~: for the growing viola-
tion of human rights, Garcia Villas said.
"From 16 to 30 April," she conCinued, "367 persons from the opposition and
other popular sectors have been murdered and another 13 are still missing.
From 15 January to 15 April, 246 persons, among them women and children,
were killed by paramilitary forces, which in turn lost 230."
Garcia Villas explained that the labor movement has been the sector most
affected by the repression ax~d that a large number of inembers of labor
organizations have been assassinated by paramilitary groups.
The purpose behind repression is to destroy the people's movement repre-
sented by the democratic and revolutionary front which is made up of
political sectors which represent the ma~ority of the people in the
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_ country and is struggling to provide to vast sectors of the population the
_ benefits of a more just society.
Garcia Villas, who was a Christian Democratic Party (PDC) leader until
recently, said that "PDC rightwing represented by Jose Napoleon Duarte
and JosP An'tonio Morales Erlich, members of the government ~unta, are -
playing an important role in the repressive campaign against the
:~zlvadoran people."
"I wish to say that what we have in E1 Salvador is a real political strug- -
gle and not a feud between extreme rightwing and leftwing, as the govern-
ment junta wants to make the people believe," Garcia Villas explained.
She also said the Human Rights Commission she presides over believes the
political plan of the democratic and revolutionary front, if put into
practice, would guarantee human rights in E1 Salvador. "For this reason
I am asking on behalf of Che commission material, moral and political
support from the peoples and progressive governments of the world,"
Garcia Villas concluded.
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EL SALVADOR
SALVADORANS IN VENEZUELA PROTEST HUMAN RIGHTS ABUSES
- PA311440 Havana PRELA in Spanish 2027 GMT 29 May 80
[Report by Sergio Medina]
[Text] Caracas, 29 May (PL)--Lt Col Rene Erancisco Guerra, former
Salvadoran deputy interior mj.nister, pro~ested here the massacre of the
Salvadoran people by the Christian Democratic Party [PDC]-military junta. -
- Guerra spoke at a news conference attended by Carlos Canache Mata, presi-
dent of the Venezuelan Chamber of Deputies; Jose Maria Machin, former
Venezuelan ambassador to the OAS; Juan Roberto Tre~o, a Salvadoran priest; -
- and Jose Herrera Oropeza, member of the Solidarity Committee With E1
Salvador.
Guerra was one of the young officers who helped overthrow Gen Carlos
Humberto Romero's regime in 1979. He held the post of deputy interior
minister until January when he resigned and was later compelled to leave
the country.
The Salvadoran officer said: "I cannot remain silent when the best sons
of the Salvadoran people are bravely sacrif.icing their lives in the
_ struggle against the dictatorship."
Meanwhile, priest Juan Roberto Trejo said that the Salvadoran Catholic
Church has waged an obstinate struggle against abuses by the dictator-
ships which have ruled the country and which have violated human rights
and freedom in this country.
He said that persecution was intensified since 1970 as have attacks on
the church.
He said that in 1977 the first pri.est was killed--Reverend Rutilio Grandes. _
The oligarchy, jointly with the dictatorial regime, gathered strength and
began a series of murders against those who would defend human rights.
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These crimes, he said, were committed mainly against the humble peasants
when they refused to join the paramilitary nationalist democratic organi-
zation. This organization has been used by the regime and the land-
holding oligarchy as an espionage instrument.
- Father Trejo said that with Romero's ouster last October it was believed
that repression would cease, but "once again a worse regime is back in
power. It consists of army officers addicted to the oligarchy and of a
sector of the PDC which follows their regrettable and repressive policies."
He added that this military junta murdered Monsignor O~car Arnulfo Romero,
whom he described as an American martyr, and that "this sacrilege has not -
silenced his voice but instead has served to multiply his voice proclaim-
ing to the world the injustices being committed against the defenseless
Salvadoran people."
Jose Herrera Oropeza, member of the Venezuelan Solidarity Committee With
_ E1 Salvador, said that in E1 Salvador there is "a national struggle of
all sectors, except the PDC led by Napoleon Duarte, against the dictatar-
ship and in favor of installing a democratic regime in the country."
Herrera Oropeza said that an international conference of solidarity with
the Salvadoran people will be held in July and that it will be attended
by outstanding personalities from all over the world, including
Venezuelan personalities who support the struggle of the Salvadoran
people.
Jose rlaria Machin, after reasserting the statement made by Herrera
Oropeza, said that for many years E1 Salvador has been ruled by dicta-
~ torial regimes at the service of the oligarchy.
Machin also criticized the Venezuelan PDC policies in favor of the incum-
bent Salvadoran military junCa and said that it has been asserted that
by supporting the military regime a democratic solution could be found,
but facts have proved the contrary. The PDC sector supporting the junta
has proceeded just like all the other Salvadoran governments.
"I believe," he said, "that the support of the Venezuelan PDC for the
Salvadoran junta goes against the true feelings of the Venezuelan people."
"This is the time," he emphasized, "to rectify this mistaken Venezuelan
policy toward El Salvador and to support those who want a true democratic
policy rather than the rulers who are merely following old dictatorial
policies." -
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GUATEMALA ~
R~VOLUTIONARY ORGANIZATIONS PRAISE CASTRO IN LETTER
PA272058 Havana PRELA in English 1655 GMT 27 May 80
[Text] Havana, May 27 (PL)--Four revolutionary organizations of Guatemala
sent a message to President Fidel Castro expressing their adherence to the
Cuban revolution, in the light of the aggravation of the hostility of the
United States against the island.
The letter, which appeared today ir. the daily GRANMA, was issued after
the first joint meeting of the leaderships of the Guerrilla Army of the
Poor (EGP), the Rebel Armed Forces (FAR), the Organization of the People
at Arms (ORPA) and the Guatemalan Labor Party (PGT). The groups expressed
to Fidel Castro their highest regards and admiration for the Cuban revo-
lution and their re~ection of the maneuvers of the United States and the
reactionary press.
'I'hey also reiterated their disposition to carry out any action necessary
and their willingness to contribute to defeating the aggressive policy
of the United States in the area.
The document reports that the ~oint meeting was convened to analyze the
_ current international situation, particularly in this area.
To this effect, it denounced tt~e aggravation of the policy of aggression
of the United States and the constant threats against the revolution of
Grenada, the progressive area of the Caribbean and the revolutionary
movements of Central America.
In the exchange and discussion held, it says, we have reached the main
conclusion that in response to the great defeats of imperialism from
Vietnam to Nicaragua and Iran, a threatening policy has been implemented
with clear interventionist intentions against the entire Caribbean and
Central American area.
A policy, it adds, aimed to try to affect and damage what was constructed
and consolidated under the revolutionary point of view or destroy and
neutralize the processes of struggle and liberation of our peoples. The
_ Guatemalan organizations emphasize the need to strengthen and coordinate
all the revolutionary, popular, democratic and progressive forces of the area.
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- PANAMA
LABOR LEADER CONDEMNS U.S. MANEUVERS IN CARIBBEAN
PA011614 Havana PRELA in Spanish 0130 GMT 1 May 80
[Text] Panama City, 30 Apr (PL)--.~ose Manuel Meneses, secretary general
of the National Central of Panamian Workers [CNTP], has stated that the
scheduled landing of U.S. Marines at Guantanamo base next week is a
flagrant violation of Cuban territory.
In statements made to this agency, 'ri~neses voiced the Panamanian workers'
solidarity with the Cuban revolution and warned the United States that it -
may suffer as great a defeat as the one it experienced when the merce-
naries landed in Playa Giron, Cuba, in 1961.
The landing of Marines in a territory which they occupy against Cuba's
will is the culmination of a number of provocative acts against Cuba
which began with the incidents at the Peruvian and Venezuelan embassies _
in Havana, the labor leader stated.
Meneses also stated that the main international slogan of the 1 May
parade will be the rejection of the U.S. aggressive maneuvers in the
Caribbean, which constitute a trial for its interventionist objectives _
in the region.
He likewise urged all the workers of the world to express their soli-
darity with tne Cuban and Nicaraguan revolutions as well as with the
national liberation struggle in El Salvador, Grenada and other coun-
tries of the area.
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PERU
ASSETS OF PEPWIAN ARMED FORCES DETAILED
rfadrid DEFENSA in Spanish No 23, Ma.~~ 80 pp 16, 17
- [Article: "The Peruvian Armed Forces"]
(Text] Population: 17,530,000
Military Service: 2 years, selective
Total Strength of Peruvian Armed Forces: 92,000 (49,000
draftees)
1977 Defense Expenditures: $4Q6 million
The Peruvian armed forces, which comprise the Army (EP), the Navy (MP) and
the Air Force (FAP), originated--like all its Latin American counterparts--
~ in the war of independence against Spain during the second and third
decades of the 19th Century. The Peruvian armed forces engaged in a
series of wars against its neighbors during the last century, all of them
arising from problems of ill-defined borders. The most important of them
was the one known as the War of the Pacific (1879-1883), in which Peru,
allied with Bolivia, was defeated by Chile and lost the province of Arica,
while Bolivia ended up without an outlet to the ocean.
After the debacle of the War of the Pacific, Peru resorted to a French
military mission to reorganize the EP in particular. French doctrine
influenr:ed the Peruvian military way of thinking until World War II when,
as in the case of the other Latin American countries, the Peruvian armed
forces turned toward U.S. military doctrine. In 1941 Peru engaged in a
- victorious war against Ecuador which gave it possession of a territory in
the Amazon Basin that had been a source of contention with Ecuador since
the time when both countries became independent.
In the decade of the 1960`s--also similarly to the rest of the Latin
American countries--the Peruvian military doctrine was "nationalized"
as a result of a wave of nationalism which swept that region of the world.
This "nationalization" of the armies was brought about by an awareness
regarding national problems and encouraged by the surge of guerrilla
movements that shook almost all the countries of the continent at the
time. That resulted in the gradual forsaking of the United States as
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supplier. For that reason the EP and the FAP are currently the only ones
in Latin America equipped with Soviet materiel, with the exception of Cuba.
Army
- Total: 70,000 (49,000 draftees).
- 2 armored divisions (actually Peruvian divisions are equivalent to
brigades in strength).
- 2 armored regiments, 2 cavalry regiments.
- 8 infantry and mechanized divisions.
- 1 airborne paracommando division.
- 1 jungle division.
- 3 armored reconnaissance troops. Artillery and engineer battalions.
- Materiel: 250 T-54/55, 60 M-4 and 110 AMX-13 cars; M-8 armored vehicles
and 50 M-3A1 scout cars; 200 M-113, 40 V-150 Chaimite (Portuguese
version of the French EBR ETT Panhard) and German UR-416 troop carriers;
_ and Swiss Mowag vehicles.
- Artillery: 90 lOSmm, 1.22mm and 130imm guns; 4 M-114 155mm howitzers; .
40mm, 76mm and 12Qmm mortars; ZSU-23-4 antiaircr~ft vehicles; and SA-3
SAM's.
- Army aviat~on: 5 U-lOB, 5 Cessna 185, 42 MI-8, 4 Alouette III and 5 .
Lama aircraf t .
- The EP has on order--under construction or partially delivered--200 T-55
cars, 122mm a:id 130mm guns, SA-3/7 SAM's, and 2 Nomad light transport
planes.
Navy
- Total: 12,000 men including naval air forces and 1,000 marines.
_ - 8 submarines: 2 of the 209 class, 2 ex-U.S. Guppy class and 4 ex-U.S.
Abtao class.
- 4 cruisers: 2 ex-Dutch De Ruyter class (one equipped with Exocet
missiles and 3 helicopeters) and 2 ex-British Ceylon class.
- 6 destroyers: 2 ex-British Daring class equipped with Exocet SSM's,
2 ex-U.S. Fletcher class and 2 ex-U.S. Cannon class.
- 5 river ships and 3 river patrol boats.
- LCVP's (landing crafts, vehicle and personnel) of U.S. manufacture.
- Naval aviation: 9 S-2E Tracker ASM, 6 C-47, 2 F-27 MPA and 1 Aztec
planes; 6 AB-212 ASW, 10 Bell 206, 6 UH-1D/H, 2 Alouette III and 2 Bell
47G helicopters; and 6 T-34 trainers.
- Under construction abroad or already delivered: 4 submarines of the 209
class, 2 frigates of the Lupo class, and 6 PR-72P FAC(M) equipped with
Exocet SSM`s.
- Bases: E1 Callao, San Lorenzo, Talara and Iquitos (river).
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Air Force
~ - fotal: 10,000 men ar~d 138 combat planes.
- 2 bombing squadrons with 32 Canberra bombers.
- 4 attack and intercept squadrons: 2 with 24 Mirage SP and 2 with 27
SU-22 planes.
- 1 combat squadron with 10 Hunter F-52 planes.
- 1 advance training squadron with 12 MIG-21 planes. -
' - 2 counterinsurgency squadrons with 24 A-37B planes.
- 2 conversion squadrons with 2 Canberra, 2 Hunter, 1 Mirage and 4 SU-22
planes.
- 12 Alouette III, 6 UH-1D, 20 B~11 47G, 14 Bell 212, 6 MI-6 and 6 MI-8
_ helicopters.
- A certain number of transports and trainers of various models and s~urces
such as Soviet, European and United States.
Paramilitary Force
- Civil Guard: 25,000 men.
COPYRIGHT: Ediciones Defensa, S.A., Madrid 1980
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