1974-05-16

You are listening to Latin American Press Review, a weekly summary of events in Latin America, with special emphasis on translation from the Latin American Press. This program is produced by the Latin American Policy Alternatives Group of Austin, Texas. 

This week's Latin American press review features a document on the situation in Chile, recently published in Mexico's Excélsior, Brazil's reaction to the coup in Portugal, as reported by the periodical Latin America, Venezuelan nationalization plans as seen by various sources, and La Opinión of Buenos Aires reports on terrorism in Argentina. 

A startling document on the situation in Chile was published recently in Mexico's moderate daily newspaper, Excélsior. It was prepared by the Committee of Cooperation for Peace in Chile, a group composed of Catholic, Protestant, and Jewish leaders. The instances of torture recorded in the report are based on personal interviews with people who have suffered injury and with people who have witnessed torture, the conclusion that some of the people were tortured to death was deduced from wounds and marks on the bodies of the victims.

"The tortures enumerated in the document," said a spokesman for the committee, "are only those about which there can be no doubt. We are sure that many more incidents have occurred than those which we know about." Many times individuals have not been released until they've signed statements declaring that they have received good treatment. Other people are afraid to talk to us because of threats to their families. 

There was one case, the spokesman continued, in which a young boy of 17 told the press of how a person whom he had visited had been badly beaten. Two days later, officials reported that the prisoner was killed in an attempt to escape. The committee has documented cases of electricity being used on different parts of the body, beatings, blindness, burns with acid or cigarettes, and cases of drowning in water or gas. Cases of hanging, poison and mutilation are also reported. Psychological tortures have been used extensively. More than half of the suspects of the Women's Correctional House have been tortured. 

The publication of the document drew a quick response from Chilean officials. In a reply to Excélsior, Pinochet, head of the Chilean Junta spoke out against charges of repression and violence. The General asserted that there have been no violations of human rights in Chile. He said that all people guilty of crimes against Chilean society have been punished, but that innocent people have been tried and released. 

The British weekly Latin America reports that the recent coup in Portugal has helped resolve some policy differences between Portugal and Brazil. Portugal and Brazil had previously split on the issue of African colonialism. Barely 24 hours after General António de Spínola's coup in Portugal, Brazil recognized the new Portuguese government. Brazil's quick recognition of General Spínola reflects her basic agreement with the new Portuguese colonial policy. Unlike his predecessor, Portugal's new leader seeks a political rather than a military solution to the wars in Portugal's African colonies. Brazil has urged such a political settlement on Portugal for some time. 

Latin America mentions two reasons for Brazil's advocacy of a peaceful solution in Africa. First, a mission of high-ranking Brazilian military officers visited the Portuguese colonies in Guinea-Bissau and Cape Verde towards the end of 1972. The Brazilian officers concluded that no military victory was possible for the Portuguese troops against the independence movements. The second reason Brazil supports a political solution in Africa stems from her need of African markets and natural resources.

When the oil crisis hit, the Brazilians became anxious to secure oil agreements with Nigeria and Libya. The Brazilians feared a possible African and Arabian oil boycott if Brazil continued to support Portugal's African colonial policy. To guarantee herself oil sources, Brazil repudiated African colonialism earlier this year. It could well be that Brazil's policy shift actually helped to precipitate the Portuguese political crisis. This from the British Weekly Latin America. 

The Christian Science Monitor comments on the recent wave of nationalizations announced by the new government in Venezuela. "We are not in an excessive hurry," says Venezuelan President Carlos Andrés Pérez about putting his country's economy in the hands of Venezuelans. But we cannot hold back a decision, and that decision shows that President Pérez and his new government expect to have huge foreign-owned oil enterprises in Venezuelan hands within two years.

They will begin moving immediately to nationalize the iron mines and steel furnaces of two United States firms, and they have told other foreign investors that they must reduce their ownership of plants, service industries, and other activities to 20% of the facilities within three years. It is too early to assess the full impact of the Venezuelan decisions, says the Christian Science Monitor. 

But they involve billions of dollars worth of foreign investment. The oil industry alone, which is heavily owned by United States Enterprises, is a $5 billion investment. Whereas the iron ore, manufacturing, and service industries represent another $1 billion or more of investment. The action comes as a shock to many a foreign investor in Venezuela's booming economy. It amounts to the most significant and far-reaching nationalization movement in Latin America in a decade.

It clearly came as a surprise to many foreigners, and particularly to North Americans whose oil, mining, and service investments in Venezuela account for nearly 80% of all foreign ownership in South American countries. They had expected the oil nationalization, which under the terms of leases and other concession agreements, would've automatically occurred in 1983. But they had not been prepared for the mining and service industry takeovers announced by President Pérez in a May Day speech and then amplified in subsequent remarks by members of his government. 

In the mining field, the Venezuelan subsidiaries of both the U.S. Steel Corporation and the Bethlehem Steel Corporation are involved. Both have concessions that are due to run out in the year 2000, but President Pérez says, "We are taking them back now." US Steel through its subsidiary, the Orinoco Mining Company, is the larger of the two, with an investment of $330 million. President Pérez said he planned to adhere strictly to the Andean Pact decisions that govern the operations of foreign investments in the Six Nation Andean common market, of which Venezuela is a member.

Pact provisions set up formulas for foreign investment percentages in many industries, including raw material exploitation and certain service and product industries. President Pérez's decision to adhere to these formulas is regarded as a more severe application of the provisions than that taken by other Andean Pact members; Columbia, Ecuador, Peru, Bolivia, and Chile. This comment on Venezuelan nationalization appeared recently in the Christian Science Monitor. 

A more recent declaration by the Venezuelan president was reported by the Caracas daily, El Nacional. President Andrés Pérez announced May 16th, the beginning of the nationalization of oil companies operating in Venezuela. Pérez called May 16th, "One of the major dates in Venezuelan history." And he added that, "Today, Venezuela begins the final stage towards sovereign ownership of its natural resources." He went on to say that a new historical epic has opened for Venezuela, the same age which has begun in Latin America and all of those countries which have been the victims of economic totalitarianism by the developed nations.

President Pérez pointed out that the legitimate rights of the transnational corporations and the United States will be respected in the state takeover. He assured the foreign companies that they could continue their activities without interference until the nationalization process is completed. The President did not specify the date by which the concessions and properties of foreign oil firms will come under state control, although a government spokesman has said that the nationalizations will be completed before the end of the President's five year term. This from El Nacional in Caracas, Venezuela. 

And finally, the British news weekly, Latin America, had this to say about developments in Venezuela. President Pérez's new economic policy based on oil wealth and reflecting a strong nationalist sentiment has delighted the left and has infuriated a large part of the private sector. With his new policy at home and abroad, Pérez has stood recent Venezuelan politics on its head. Remembered during his election campaign as the former tough anti-guerrilla interior minister and seen as a strong friend of foreign business interests, Pérez has now amazed friend and foe alike by announcing a nationalist and progressive program.

Referring to Pérez's plans to increase workers' salaries and reorganize the country's whole financial system, Latin America points out that it is oil that makes all this possible. With estimated oil earnings of well over $15 billion this year, two and a half times as much as last year, Venezuela is in danger of being swamped with money, which it cannot absorb in a hurry.

This would force a currency reevaluation, bringing in its train a flood of cheap foreign imports and a strong disincentive to industrial and agricultural development, not to mention a worsening of the contrast between the rich and the poor. The new economic policy is designed to prevent just this. Instead of squandering money, as in the past, on useless construction works like massive freeways, at least half the earnings from oil are to be transferred to a special domestic development fund. Most of the rest will be used for investment and aid to other Latin American countries. In the next few years, Venezuela is therefore likely to be one of the most influential countries in the continent, concludes Latin America. 

From La Opinión of Buenos Aires. Terrorist activity in Argentina increased last week as unknown assailants killed an influential Roman Catholic priest who held sharply leftist views. The incident followed half a dozen other killings in Buenos Aires during the week and several clashes elsewhere between guerrillas and army units. It marked the end of one of the most violent weeks in recent memory. Army and police units searched for terrorists throughout the Argentine capitol of 10 million people, but the government of Juan Perón appeared almost powerless to halt the surge of terrorism.

There was a growing feeling that the government was simply unable to cope with the problem. "We have a complete breakdown in law and order," a longtime associate of Perón admitted. Meanwhile, foreigners living in Argentina, diplomats, businessmen, and others were taking steps to ensure their own protection. At their insistence, the United States recently dispatched two security experts to Argentina to take over the job of making the big United States embassy there secure from guerrilla attack. 

La Opinión reports that business firms have withdrawn many of their foreign executives following last year's wave of kidnappings. The recent release of Victor Samuelson, the Director of Exxon's Argentine subsidiary, drew attention to the exodus of foreigners. Samuelson was released after the payment of a $14 million ransom. A survey issued several days after his release showed that the number of foreign executives in Argentina had dwindled from more than 1,200 to less than 300 in the past two years. What does not get much publicity, however, is the continuing wave of kidnappings of Argentinians by guerrillas. One source said recently that since January 1st of this year, close to 300 kidnappings of businessmen, army officers and police officials has taken place. The incidents of this past week fit into the pattern. 

In addition to the reported killings by terrorists, there were seven kidnappings of businessmen and police officers. Just who or what group is responsible for the death of the Roman Catholic priest, the Reverend Carlos Mugica, is far from clear. Father Mugica was detained several times by former military governments for his expressed sympathy with Peronist left-wing Montonero's guerrillas. His death may well have been part of the bitter struggle between leftist and rightest elements within the Peronist movement, a struggle going on simultaneously with the gorilla's campaign against the government, private business, and foreign corporations. This report from La Opinión of Bueno Aires. 

You have been listening to Latin American Press Review, a weekly summary of events in Latin America with special emphasis on translations from the Latin American Press. This program is produced by the Latin American Policy Alternatives Group. Comments may be sent to the group at 2434 Guadalupe Street, Austin, Texas. That's 2434 Guadalupe Street, Austin, Texas. Latin American Press Review is distributed by Communication Center, the University of Texas at Austin.

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