A Taste of Firmness

Elected with the help of Peronista votes, Argentine President Arturo Fron-dizi struggled for six months to convert the ex-dictator's followers to his cause of rebuilding Argentina. Last week, in a Peronista-provoked crisis, he wrathfully turned against them.

The crisis' root was Argentina's oil problem. With coal supplies meager and hydroelectric sources remote, the nation runs on oil; it burns 250,000 bbl. a day to power factories, move trains, heat homes, cook food. An estimated 2.3 billion-bbl. oil reserve lies underground, but the government oil monopoly, Y.P.F., has only enough resources to produce 35% of the country's requirements. Dollar-short Argentina spent more than $300 million last year to import the rest. Frondizi saw only one solution. Risking the wrath of nationalistic Peronistas (and nationalists in his own Radical Party), he negotiated $1 billion worth of development contracts with foreign oil companies, mostly from the U.S. (TIME, Aug. 4). Signed up were Pan American International Oil Co., Union Oil Co., Lane-Wells Co. and Carl M. Loeb, Rhoades & Co.

Carrots v. Stick. At first, the nationalists appeared to accept the contracts. Frondizi in turn went out of his way to be nice to Peronistas, granting them amnesty, restoring confiscated property, allowing them to hold control of the labor movement under a plan drawn up by his Economic and ' Social Affairs Secretary, Rogelio Frigerio. A few rumbles came from within the Radical Party, notably from Frondizi's Vice President. Alejandro Gomez, but they sounded minor.

Not until three weeks ago, when the first U.S. oilmen from Loeb. Rhoades arrived at La Ventana oilfield in Mendoza province, did the meaning of Frondizi's deals sink home. A group of Peronista oilworkers in Mendoza gave Frondizi 48 hours to cancel the oil contracts. When Frondizi ignored their ultimatum, they struck. The national oilworkers' union then called for a nationwide walkout, and other Communist-and-Peronista-dominat-ed unions threatened a general strike.

Frondizi decided it was time to throw away the carrot and use the stick. He won the support of the armed forces by agreeing to stop wooing Peronistas. Then, by radio, he made his "final plea" for an end to the strike, blaming "Communists" and "political groups who believe it is possible to restore the ousted dictatorship." When the plea failed, Frondizi acted. He fired Peronista-Wooer Frigerio. declared a 30-day state of siege, ordered a nationwide roundup of strike leaders. Within a few hours, 468 Peronistas and Communists were in jail.

Unruly Veep. Another crisis was still to come. Under the impression that Frondizi's troubles made him ripe for ousting, a group of his political enemies attempted a coup. For their front man they chose Vice President Gomez. Gomez went to Frondizi, told him that unless he stepped down and allowed Gomez to step up as head of a coalition government, blood would be shed. Frondizi quickly checked with his army chiefs, found no sign of dissension, then faced Gomez. Outmaneuvered, Gomez backed off. later claimed that it was "all a tremendous mistake" and that all he did "was to try to help."

Despite his protestations of innocence, a gang of Frondizi supporters invaded Gomez' office next day. wrecked furniture, destroyed papers and ordered Gomez to resign. At week's end he put his resignation in Frondizi's hands, and the national oil union decided to postpone its strike threat. Frondizi was still on top. He had lost his dubious Peronista support, and the Mendoza oilworkers were still on strike, but he had gained the prestige of demonstrated firmness.

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