fron Grenma
In the first week of November Uruguay, the so-called "Switzerland of the Americas," was precipitated into one of the most violent politioal -and economic crises that has occurred in Latin America in recent years, That country was shaken by two general strikes: one staged by the interurban bus workers and the other by the workers of the nation's telegraph and telex services. The Bank of the Republic closed down operations, a measure believed to be a prelude to a new devaluation of the Uruguayan Peso, The present official exchange rate is listed as 99 pesos to the dollar, but the black market rate is 150 pesos sto the dollar, This was the last straw. Strikes broke out in a number of industries; protests came from hospital patients, nine of theeleven newspapers have been closed down for more than three months; various private and public enterprises closed for the shortage of funds; the slaughter of cattle was suspended for a month; and a staggering rise in the cost of living occurred. All these factors combined to force the government of President Oscar Gestido to declare a state of siege last montheeose After the mass resignation of ministers, headed by Minister of Treasury Amilcar Vasconcellos, Gestido announced his decision to renew negotiations with the International Monetary Fund. Vasconcellos, who is opposed to the demands of that organisation concerning the devaluation of the peso, called the President's announcement a"declaration of disloyalty."....Since January 1, the Uruguayan peso has been devalued seven times - four times during Gestido's term of office. Inflation continues to increase. In only a few months' time bus fares have risen by 400%, and further increases are expected. According to official figures, the cost of living has increased by more than 80% in the last nine months. The so-called "deterioration in the terms of exchange," a critical factor in Uruguay's foreign trade, forces the country to export move and more and receive less and less. This tragic situation has its paradoxical side. It is estimated that members of the Uruguayan oligarchy have between 300 and 500 million dollars stashed away in accounts outside the country. A few months ago ex- Minister of the Treasury Vasconcellos was begging them for 60 million in an attempt to solve the nation's crisis. This crisis has come to be, in practice, a vicious circle in each which each new phase represents yet another blow for Uruguay's working class. For example, in the last ten years nominal sr laries have increased by 940%, but the cost of living has increased by 1,085% during the same period. This represents a 13% decrease in the real wages of workers. A new shadow has now appeated to make this picture even darker: the interest of the Argentine and Brazilian military leaders in the Uruguayan crisis. The Evening Star recently stated that a secret unwritten agreement exists between Brazil and Argentina to intervene in Uruguay if the present crisis worsens. In Brazil Correio da Manha published the text of a pamphlet issued to officers of the Brazilian navy entitled Uruguay, Subversion Mart, indicating that the neighbouring "gorillas" are alerted and are watching the deterioration of the situation in Uruguay intently, and are prepared to intervene in that small nation at the least sign of "subversion." A “Sword of Damocles" hangs over the grave scene of crisis in Uruguay.