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National Trade Data Bank
ITEM ID     : ST BNOTES ARGENTIN
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - ARGENTINA

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1993
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | ARGENTINA

BACKGROUND NOTES:  ARGENTINA
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS
US DEPARTMENT OF STATE

FEBRUARY 1993
Official Name:  Republic of Argentina

PROFILE

Geography
Area:   2,766,890 sq. km. (1.1 million sq. mi.); about the size
of the US east of the Mississippi River.  Cities: Capital--Buenos
Aires (metropolitan area pop. 11.5 million).  Other major
cities--Cordoba, Rosario, La Plata, Mendoza.  Terrain:   Andes
Mountains to long coastal regions; vast grassy plains (pampas).
Climate:  Varied, predominantly temperate.

People
Nationality:  Noun and adjective--Argentine(s).  Population (1992
est.):  33 million.   Annual growth rate (est.):  1.4%.  Density:
30 people per sq. mi.  Ethnic groups:  European 97%, mostly
Spanish and Italian.  Religions:  Roman Catholic 92%, Protestant
2%, Jewish 2%, other 4%.  Languages:  Spanish (official),
English, Italian, German, French.  Education:  Years
compulsory--7.  Adult literacy--95%.  Health:   Infant mortality
rate--31/1,000.  Life expectancy--68 yrs. male, 74 yrs. female.
Work force:   Industry and commerce--36%.  Services--20%.
Agriculture--19%.  Transport and communications--6%.  Other--19%.

Government
Type:  Republic.  Independence:  July 9, 1816.  Constitution:
1853.

Branches:  Executive--president, vice president, cabinet.
Legislative--bicameral congress (48-member Senate, 257-member
Chamber of Deputies).   Judicial--Supreme Court.

Subdivisions:  23 provinces, 1 district (federal capital).

Political parties:  Radical Civic Union, Justicialista
(Peronist), numerous smaller national and provincial parties.
Suffrage:  Universal adult.

Flag:  Horizontal blue and white bands emblazoned with "Sun of
May."

Economy
GDP (1992 est.):  $150 billion.
Annual growth rate (1992 est.):  6.5%.  Per capita GDP (est.):
$4,500.  Inflation rate (1992 est.):  20%.

Natural resources:  Fertile plains (pampas).  Minerals--lead,
zinc, tin, copper, iron, manganese, oil, uranium.

Agriculture (70% of GNP, about 70% of exports by value):
Products--grains, oilseeds and byproducts, livestock products.

Industry (21% of GNP):  Types--food processing, motor vehicles,
consumer durables, textiles, metallurgy, chemicals.

Trade (1991 est.):  Exports--$12 billion (US-12%):  grains,
meats, oilseeds. Imports--$8.1 billion (US--23%):  machinery,
fuel and lubricating oils, iron and steel products, wood and
lumber, automotive equipment and parts, chemicals.  Major trading
partners--European Community, Japan, US, Brazil.

Exchange rate:  US$1=.99 Pesos (April 1992).

Economic aid received:  IBRD--$4.4 billion (cumulative commitment
as of September 30, 1990).  IFC--$362 million (cumulative
commitment as of December 31, 1991).  IDB--$4.5 billion
(cumulative commitment as of June 30, 1991).

PEOPLE
The Argentine nation has been built by the fusion of diverse
national and ethnic groups.  Waves of European immigrants arrived
in the late 19th and early 20th centuries.  Today, descendants of
Italian and Spanish immigrants predominate, but many also have
British and West and East European ancestors.  Syrian, Lebanese,
and other Middle Eastern immigrants number about 500,000 and are
concentrated in urban areas.  In recent years, there has been a
substantial influx of immigrants from neighboring Latin American
countries.  The native Indian population, now estimated at
50,000, is found in the peripheral provinces of the north,
northwest, and south.

The Argentine population has one of the lowest growth rates in
Latin America (1.4%).  Eighty percent of the population reside in
urban areas of more than 2,000, with more than one-third of the
population living in the metropolitan Buenos Aires area.  The
sprawling capital, with more than 11 million inhabitants, serves
as the focus for national life.  Argentines enjoy comparatively
high standards of living; half the population considers itself
middle class.

More than 90% of Argentines are Roman Catholic.  Religious
freedom is practiced, although all non-Catholic denominations are
required to register with the government.  The Protestant
community is small but active.  Argentina's Jewish community of
about 350,000 is concentrated in Buenos Aires.

The Argentine educational system is compulsory for grades 1-7,
starting at age 6.  The adult literacy rate is 95%--one of the
highest in Latin America.  Literary and artistic tastes have been
influenced mainly by Western Europe and, more recently, by the
United States.

A large number of Spanish daily newspapers are published in the
greater Buenos Aires area; a dozen community newspapers are
published in English, French, German, Greek, Hungarian, Italian,
Japanese, Polish, Ukrainian, and Yiddish.  All the community
newspapers are periodicals except the daily English-language
Buenos Aires Herald.

HISTORY AND POLITICAL CONDITIONS
Europeans arrived in the region with the 1502 voyage of Amerigo
Vespucci.  Spanish navigator Juan de Solis visited what is now
Argentina in 1516.  A permanent Spanish colony was established on
the site of Buenos Aires in 1580.  Argentina was further
integrated into the Spanish empire following the establishment of
the Vice-Royalty of Rio de la Plata in 1776, and Buenos Aires
became a flourishing port.

The formal declaration of independence from Spain was made on
July 9, 1816.  Gen. Jose de San Martin--who campaigned in
Argentina, Chile, and Peru--is the hero of national independence.
Following the defeat of the Spaniards, a lengthy conflict was
waged between centralist and federalist groups to determine the
future structure of the nation.  National unity was established
and the constitution promulgated in 1853.

In the late 19th century, two forces created the modern Argentine
nation: the introduction of modern agricultural techniques and
the integration of Argentina into the world economy. This
economic revolution was aided by foreign investment--primarily
British--and by the influx of European workers.

Conservative forces dominated Argentine politics until 1916, when
their traditional rivals, the Radicals, won control of the
government through a democratic election. The Radicals, with
their emphasis upon clean elections and democratic procedures,
opened their doors to the nation's expanding middle class as well
as to the elites previously excluded for various reasons.
Radical rule came to an end in 1930 when the Argentine armed
forces threw out aged Radical president Hipolito Yrigoyen and
ushered in another decade of Conservative rule.  Using fraud and
force when necessary, the governments of the 1930s attempted to
contain forces for economic and political change that helped
produce the government of Juan Domingo Peron.

In 1943, a military coup--led by, among others, Col. Juan Domingo
Peron (1897-1974)--ousted the constitutional government.  In
1946, Peron was elected president.  He pursued policies aimed at
giving a greater economic and political voice to the working
class.  The number of unionized workers increased significantly,
which helped consolidate the powerful General Confederation of
Labor (CGT).  In 1947, Peron announced the first 5-year plan
based on nationalization and industrialization.  He was aided by
his energetic wife, Eva Duarte Peron (1919-52).  She enhanced his
appeal to labor and women's groups and helped women obtain the
right to vote in 1947.

Peron was reelected in 1952 but ousted by the military in 1955.
He went into exile, eventually settling in Spain.  In the 1950s
and 1960s, the government passed between military and civilian
administrations as each sought to deal with declining economic
growth and continuing social and labor demands.  Finally, in the
late 1960s and early 1970s, when military governments failed to
revive the economy and suppress escalating terrorism, the way was
open for Peron's return.

On March 11, 1973, general elections were held for the first time
in 10 years. Peron was prevented from running, but a stand-in,
Dr. Hector J. Campora, was elected.  The Peronists also commanded
a strong majority in both houses of the National Congress.
Campora resigned in July 1973, paving the way for Raul Lastiri, a
Peronist party loyalist, to assume the presidency and call for
new elections.  In these, Peron won a decisive victory and
returned as president in October 1973 with his third wife, Isabel
de Peron, as vice president.

Even after Peron's dramatic victory, extremists on the left and
right continued to threaten public order. The government resorted
to a number of emergency decrees, including the implementation of
special executive authority to deal with violence. This allowed
the state to imprison persons indefinitely without charge.

On July 1, 1974, Peron died and was succeeded by his wife.  Her
administration was undermined by ongoing economic deterioration,
Peronist intraparty struggles, and persistent terrorism from both
left and right.  As a result, she was removed from office by a
military coup on March 24, 1976.  Until December 10, 1983, the
armed forces governed through a junta composed of the three
service commanders.

The military quashed terrorists and their sympathizers, silenced
armed opposition, and restored basic order. The costs were high
in terms of lives lost and basic human rights violated.

Serious economic problems, defeat by the British in June 1982
after an unsuccessful Argentine attempt to establish sovereignty
over the Falkland/Malvinas Islands, human rights abuses, and
charges of growing corruption discredited and discouraged the
military regime.  This resulted in a period of gradual
transition, leading the country toward democratic rule.  Previous
bans on political parties were lifted and other basic political
liberties restored.

On October 30, 1983, Argentines went to the polls to choose a
president, vice president, and 14,000 other national, provincial,
and local officials in what were declared by international
observers to be fair, open, and honest elections.  Raul Alfonsin,
candidate of the Radical Civic Union (UCR), was elected
president, winning 52% of the popular vote.  He began a 6-year
term of office on December 10, 1983.  In 1985 and 1987, large
turnouts at the mid-term elections demonstrated continued public
support for a strong and vigorous democratic system.  The Radical
Civic Union-led government took steps to resolve some of the
nation's most pressing problems, including accounting for those
who disappeared during military rule, establishing civilian
control of the armed forces, and consolidating democratic
institutions.  Its effectiveness was hindered by constant
friction with the military and an inability to resolve endemic
fiscal mismanagement and to inspire public confidence.

In May 1989, Carlos Saul Menem, the Peronist candidate, was
elected president with 47% of the popular vote and a clear
majority in the nation's electoral college.  The Peronists and
their allies also won control of both houses of the Congress.
President Menem was to have succeeded Alfonsin in December of
1989, but a rapidly deteriorating economic situation and
resulting loss of confidence in the national government led
Alfonsin to resign in July.  Menem succeeded him.  Although the
transition came 5 months earlier than planned, the transfer of
power was the first between democratically elected presidents in
more than 60 years.

Menem surprised most observers, including members of his own
party, by adopting economic policies diverging from Argentina's
(and Peronism's) traditional statist approach.  He initiated
emergency economic and state reform legislation that cut
government spending, increased revenues, and reduced state
involvement in the economy.  In April 1991, the convertibility
law was enacted which fixed the exchange rate, prohibited
financing of the government's fiscal deficit by the central bank,
and declared all indexation schemes illegal.  Menem also moved
quickly to privatize government-owned industries, such as
Aerolineas Argentinas and the telephone company.  These policies
have generated some resistance among sectors historically allied
to Peronism as well as in sectors of the Radical Party.  However,
opposition remains fragmented.

GOVERNMENT
The 1853 Argentine constitution, similar to that of the United
States, mandates a separation of powers into executive,
legislative, and judicial branches at the national and provincial
level.  Each of the 23 provinces also has its own constitution.

The president and vice president are elected to a 6-year single
term and cannot immediately run for reelection.  Senators are
elected by provincial legislatures (with the exception of the two
senators representing the federal capital of Buenos Aires which
are elected by an electoral college) for 9-year terms, with
one-third standing for reelection every 3 years.  Deputies are
elected for 4 years in alternate terms, with half up for
reelection every 2 years.  Cabinet ministers are appointed by the
president.  The constitution gives the president considerable
power, including that of a line-item veto.

The Argentine judiciary is separate and independent.  The apex of
the court system is the Supreme Court, whose nine judges are
appointed by the president with the consent of the Senate.  The
Supreme Court has the power, first asserted in 1854, to declare
legislative acts unconstitutional.

Principal Government Officials
President--Carlos Saul Menem
Foreign Minister and Worship--Guido Di Tella
Minister of Economy, Public Works, and Services--
Domingo Cavallo
Ambassador to the United States--Carlos Ortiz de Rozas
Ambassador to the OAS--Hernan Patino Meyer
Ambassador to the UN--Emilio Cardenas

Argentina maintains an embassy in the United States at 1600 New
Hampshire Ave., NW, Washington, DC 20009 (tel. [phone]; Fax:
202-332-3171). Argentina has consulates general in Houston,
Miami, New York, New Orleans, San Francisco, and San Juan and
consulates in Baltimore, Chicago, and Los Angeles.

ECONOMY
Argentina has impressive human and natural resources, but
political conflict and uneven economic performance over the last
50 years have impeded full realization of its potential.
Nonetheless, it remains one of the richest countries in Latin
America.

Faced with healing a scarred society, the Alfonsin Government was
slow to tackle deep structural problems.  In June 1985, Alfonsin
introduced the "Austral Plan," which succeeded temporarily in
reducing inflation by introducing wage and price controls and
imposing a measure of fiscal prudence.  The plan foundered in
1987, when a significant increase in the fiscal deficit
accompanied by very large price and wage increases pushed annual
inflation to 175%; in 1988, annual inflation reached 386%.

Another economic initiative, the "Spring Plan," was announced in
1988.  It collapsed in February 1989, marking the start of a
dramatic deterioration of the economy, which was worsened by
political and economic uncertainties surrounding the May 1989
elections.

President Menem took office in July 1989 and amid hyperinflation
moved quickly to re-establish economic stability.  Inflation
reached 198% in July, a Western Hemisphere record for 1 month.

Menem also sought to bring the fiscal deficit under control and
to reduce the intrusive role the state had played for decades in
all aspects of Argentina's economic life.  His first two economic
teams had some measure of success.  Menem's third economy
minister, Domingo Cavallo, entered office in February 1991.
Cavallo's determined pursuit of economic reform and fiscal
responsibilities has helped provide the stability necessary to
control hyperinflation and reverse decades of economic decline.

Argentina's successes have generated international support.  The
International Monetary Fund approved a stand-by program in June
1991 and an extended funding facility in March 1992.  Argentina
also received substantial support from the International Bank for
Reconstruction and Development and the International Development
Bank.  Its debt with commercial banks, including $7 billion in
arrears, will be restructured under the US "Brady Plan."

Argentina's richest natural resource is the rich temperate plain
known as the pampas, which fans out almost 800 km. (500 mi.) west
of Buenos Aires.  It produces large quantities of wheat, corn,
sorghum, soybeans, and sunflower seeds and offers year-round
pasturage for Argentina's cattle industry.  Argentina is one of
the world's largest exporters of foodstuffs.  Argentina exports
to a variety of worldwide buyers.  In the early 1980s, the
then-Soviet Union became the major purchaser of grains, while
more recently, Iran, Brazil, and China have served as major
markets.  Argentina also exports agricultural goods to the United
States (primarily canned, precooked, and frozen beef; sugar; and
fruits and fruit products).

Argentina obtains about 23% of its imports from the United
States.  Total imports in 1991 were $8.1 billion, of which $1.9
billion was from the United States.  Capital equipment, computers
and peripherals, telecommunications, chemicals, and electronic
components were the principal items sold to Argentina.  In 1991,
Argentina exported $12 billion worth of goods and services; $1.4
billion (12%) went to the United States.

Argentina was a net energy exporter in 1991.  It has significant
reserves of petroleum and natural gas.  The Menem Government has
opened the petroleum sector to private development and, as a
result, petroleum production has expanded greatly.  Significant
deregulation of the petroleum sector, including price controls,
took effect January 1, 1991.  Argentina also has a large electric
production capacity, mostly from hydroelectric sources.  It has
express a desire to reduce the size and cost of the massive
hydroelectric project (2,400 megawatts) being constructed with
Paraguay and scheduled for completion in the late 1990s.
Argentina has the most advanced nuclear program in Latin America;
nuclear power provides some 13% of the country's electrical
needs.  Two nuclear power plants are completed, and a third is
under construction.  Argentina also exports nuclear technology
and assistance.

DEFENSE
The armed forces of Argentina (army, navy, air force) are
controlled by the president and a civilian minister of defense.
The joint staff, established in 1984, is directly under the
Ministry of Defense and is staffed by officers of all services.
The joint staff is an advisory and planning body with no
operational or command responsibilities.  The senior military
officer of each of the armed services is the chief of staff.  The
paramilitary forces under the control of the Ministry of Defense
are the Gendarmeria of the Naval Prefectura (Coast Guard).

The Argentine armed forces also maintain defense cooperation and
military supply relationships with a number of other countries,
principally Israel, Germany, France, Spain, and Italy.  The lack
of budgetary resources is the most serious problem facing the
Argentine forces.  Current economic conditions and the
government's commitment to reduce the public sector spending have
slowed modernization and restructuring efforts.

FOREIGN RELATIONS
Argentina increasingly pursues a pragmatic foreign policy and
maintains diplomatic relations with almost all countries.
Support for democracy and the promotion of increased trade and
investment are major priorities.  Its relations traditionally
have been closest with Western Europe, the United States, and its
Latin American neighbors.  President Menem is committed to
improving those relations, while encouraging Latin American
regional integration.

Having settled its Beagle Channel dispute with Chile in 1984-85,
and having sent other border disagreements with the Chileans to
arbitration, Argentina presently has only one active territorial
dispute; this is with the United Kingdom over a group of islands
some 480 miles northeast of Cape Horn.  The Argentines refer to
them as the "Malvinas Islands"; the British call them the
"Falkland Islands."  Historically, European powers, notably
Britain and Spain, made competing claims to sovereignty over
these islands.  In the early 1800s, Spanish and then Argentine
authorities administered them.  However, in January 1833, Britain
reasserted sovereignty, and the islands first became a crown
colony and later a self-governing dependency.

In an effort to re-establish its sovereignty claim, Argentine
military forces occupied the islands on April 2, 1982.  After a
brief, costly war, the Argentine forces were defeated.  Direct
talks between Argentina and the UK began in September 1989 in an
attempt to re-establish diplomatic relations, which were severed
following the conflict.  The talks took place under a formula
that separated the sovereignty questions from other discussions
on bilateral relations.  The two countries re-established formal
relations in February 1990.  Argentina continues to press its
sovereignty claim in a variety of forums.  The United States has
taken no position on the merits of the two countries' sovereignty
claims.

US-ARGENTINE RELATIONS
The United States and Argentina have maintained diplomatic
relations since 1823.  Both countries have sought a constructive
relationship based on reciprocal respect and understanding, but
bilateral relations often have been turbulent.

In the 1970s, US-Argentine relations entered a particularly
difficult period.  Concerned about serious human rights
violations in the Argentine military government's campaign
against terrorism, the United States restricted both military
assistance and the sales of military and other controlled-export
items to Argentina.  Congress prohibited military sales and
assistance.  Argentina consistently maintained that such actions
were US attempts to influence domestic politics.  The
Falklands/Malvinas war placed additional strains on bilateral
relations.  The US position on the non-use of force for the
resolution of disputes led the United States to impose new
sanctions on Argentina and to provide limited assistance to the
United Kingdom in its campaign to regain the islands.

US-Argentine relations improved after the Falklands/Malvinas war.
Sanctions imposed during the fighting were lifted, and the United
States supported Argentine-sponsored UN resolutions calling for
renewed Falkland/Malvinas negotiations.

The Argentine human rights situation and political climate
improved dramatically following the military's mid-1982 decision
to return the country to democracy.  During 1983, all remaining
political prisoners being held without trial under state-of-siege
powers were released.  Also in 1983, the 9-year-old state of
siege was lifted, and restrictions on trade union activities and
press censorship virtually ceased.  Since the return of
democratic government, the US and Argentine armed forces have
developed a growing, mutually beneficial defense relationship
through the extensive range of contacts, including professional
exchanges, visits, training, and joint exercises.  There are
modest international military education, training, and foreign
military sales programs.

The Menem Government has adopted a pro-Western stance and has
emphasized cooperation with the United States in resolving
differences.  The countries consult regularly on hemispheric
issues.  Argentina's relative prosperity prompted the United
States to phase out its bilateral economic assistance program in
1971, although some limited assistance continues.

Many US industrial firms and banks maintain subsidiaries in
Argentina.  Licensing agreements with local companies are common.
US private investment totals more than $2.6 billion, primarily in
manufacturing chemicals, agricultural equipment manufacturing,
transportation equipment, and banking.  Several thousand US
citizens reside in Argentina.

Principal US Officials
Ambassador--Terence A. Todman
Deputy Chief of Mission--James D. Walsh
Counselor for Agricultural Affairs--Max Bowser
Counselor for Public Affairs--Ernesto Uribe
Counselor for Scientific and Technological Affairs--
Paul Maxwell
Counselor for Political Affairs--Timothy J. Dunn
Counselor for Consular Affairs--Barbara Hemingway
Counselor for Economic Affairs--Peter Whitney
Labor Attache--William L. Lofstrom
Counselor for Administrative Affairs--Bernard Segura-Giron
Counselor for Commercial Affairs--Rafael Fermoselle
Defense Attache and Air Attache--Col. Wayne Fisher, USAF
Drug Enforcement Administration--James D. Miller
Military Group--Col. John Woolshlager, Army

The US embassy in Argentina is located at 4300 Colombia, Buenos
Aires 1425. The APO address for the embassy is APO AA 34034-0001
(tel. [phone]; Fax:  [phone]).

TRAVEL NOTES:
Visas:  Visas are not required for US citizens entering Argentina
for tourism for periods up to 90 days.  Visas are required for
visits to Argentina for all other purposes.

Climate and clothing:  Climate ranges from the hot, subtropical
lowlands of the north to cold and rainy Tierra del Fuego in the
south.  The seasons are reversed: the weather in January in
Buenos Aires is like July in Washington, DC; weather in July is
similar to that of San Francisco in January.

Health:  Competent doctors and dentists are available in Buenos
Aires.  Travelers may wish to consult up-to-date health
information  upon arrival.  Bottled water is recommended.  Avoid
raw fish and seafood; other uncooked foods should also be
avoided.

Telecommunications:  International services are adequate;
however, long delays in placing international calls may occur due
to the overburdened system.  Certain sections of Buenos Aires
have direct international dialing.  Most provincial cities and
Uruguay also can be dialed directly from home and business
phones.

Transportation:  Buenos Aires' Ezeiza Airport is serviced by many
international carriers, with flights originating in the US,
Europe, and other Latin American cities.  Buenos Aires has an
extensive subway and bus system.  Taxis are plentiful.  Outside
Buenos Aires, travel is by train, air, bus, or auto.

Time zones:  Argentina is 2 hours later than US Eastern Standard
Time (EST).  Daylight savings time is observed from October to
April.

Published by the United States Department
of State -- Bureau of Public Affairs  -- Office of  Public
Communication -- Washington, DC -- February 1993 -- Editor:
Anita Stockman

Department of State Publication 7836
Background Notes Series -- This material is in the public domain
and may  be reprinted without permission; citation of this source
is appreciated.

For sale by the Superintendent of Documents, US Government
Printing Office, Washington, DC  20402.

Contents of this publication are not copyrighted unless
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