Peron’s Opponents

Press, Volume LXXXV, Issue 25739, 26 February 1949, Page 6

Peron’s Opponents

General Peron’s threat to call his trade union supporters into the streets to fight a whispering campaign by his foes appears to be something more than a bogy put up to divert attention from other troubles in Argentina. Coming as it does on the heels of reports of pressure by the Army to force the President’s wife to retire from public life, it suggests that the opposition he faces and has reason to fear at the moment is military rather than political. In a leading article this month the “ Economist ” said that without the support of the Army General Peron’s position would be precarious: but without the support of labour he would probably be ousted by the Army. If he is now forced to turn to the workers against the Army, it seems likely that opposition to his regime has gone beyond the “ war of “rumours” he alleges. General Peron was brought into power by a military clique, and he has been backed by the Army because he has succeeded in keeping labour under control. He has gained the support of the trade unions by a programme of social reform which provided higher wages and pensions for the aged and retired. The Army has been satisfied by a five-year economic plan designed to create large-scale industries and an effective military machine, and a defence budget which is now the greatest in Argentina’s history. But in recent months the country’s internal and external economic affairs have rapidly deteriorated, so that opposition to the Peron regime has hardened. Dollar resources have been drained away to pay for large imports from the United States for the industrial programme; and at the same time markets other than Britain have become less anxious for Argentine produce, the profits from which are needed to finance the five-year plan. The high rate of economic activity in Argentina and the drift away from the production of consumer goods to capital outlay projects have caused progressive inflation which, according to “ The Times ”, has seriously swelled the cost of living in the last few months. Workers have become resentful of this increase, which has cancelled out the benefits of higher wages, and there have been more frequent strikes and threats of strikes. Businessmen, first antagonised by the ( creation of a monopolistic State trading agency which reduced private enterprise in the import and export fields, have become more opposed to the Government as they , have been obliged to meet wage increases and taxes out of profits. : General Peron’s radical economic policies have also created opposition among the conservative section , of the people. The prospect that ; military expenditure may have to . be reduced may well have influenced the Army’s present atti- : tude to the President and General ’ Peron’s dilemma may be assuming j this shape. If he needs to confirm his labour support he must find ’ some way of checking the mount- ’ ing cost of living; but if he attempts i to reduce military expenditure or : industrial development to do so, he will widen the rift between him ' and the Army. And Argentina is ! a country where Army support is : crucial. .