Chapter 260
Chapter 260
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Translator: crow
Chapter Title: Argentine Coup (1)
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Arturo Umberto Illia, leader of the Radical Civic Union of Argentina, won the election—despite heavy military influence—and was inaugurated as president.
His ascension to power was possible only with the tacit approval of the Blue Faction within the military, which supported a return to constitutional rule.
“Bear in mind that there are people in the military (the Red Faction) who don’t take kindly to civilians holding power.”
Mindful of this backdrop, Illia placed generals from the pro-constitutional ‘Blue Faction’ in key government positions to prevent a coup.
Politically, he also gave Peronists—once sentenced to political death—a chance to make a comeback, while restoring public works and loan programs.
It was a revival of the aggressive fiscal expansion policies seen under Perón.
“Are you dreaming of pseudo-Peronism?”
There were such criticisms, but Illia had no intention of recreating Peronism (the populist policies of Argentine President Juan Perón, including wage hikes, expanded welfare, and reduced income inequality).
“Not at all. I’m just trying to rebuild a broken nation.”
Illia pursued export-driven, growth-oriented policies.
“Look at the achievements our party has delivered.”
In 1963 and 1964, Argentina’s growth rate hit 10% annually.
Illia’s economic growth was dazzling, but it wasn’t enough to resolve the massive foreign debt accumulated during the Perón era.
Despite a huge current account surplus, Argentina’s $3.4 billion debt was reduced by only $700 million.
In contrast, foreign capital inflows stagnated, and the Argentine government’s foreign exchange reserves were hitting rock bottom.
Even so, Illia refused to borrow from the IMF or World Bank, or even negotiate debt restructuring with them.
“Those guys are robbers. Why would I reach out to people who are desperate to steal our interests?”
He said that, but with only $70 million left in foreign reserves, Argentina desperately needed outside help.
Of course, there was a reason Argentina was holding out so stubbornly.
“Once the petrodollar deal is done, the U.S. will hand over the dollars.”
Argentina believed that settling the petrodollar negotiations with the U.S. would solve all its problems.
But the U.S. was dragging its feet more than expected in those talks.
“We’d love Argentine oil, but it’s not urgent right now, is it?”
Washington saw no need to rush negotiations with Argentina.
It couldn’t easily provide foreign currency, especially not to a regime toying with resource nationalization cards—it needed to humble them first.
The U.S. even pressured the Inter-American Development Bank not to provide Argentina with more funds than necessary.
“Damn bastards.”
Illia felt intense pressure from this foreign exchange crisis.
Right then, an unexpected country extended a hand to Argentina.
It was the Republic of Korea.
“Your Excellency, the Republic of Korea is prepared to provide the loan Argentina needs.”
Hearing the proposal from Korean Ambassador Yun Bong-gil, Illia’s ears perked up.
“Korea, to us? What are the terms?”
“$1 billion, repayable over 10 years at 4% interest.”
Korea’s terms were quite generous.
Above all, accepting it would resolve the immediate foreign debt issue—an advantage impossible to ignore.
“We’ll consider it positively.”
Illia consulted with his economic officials on Korea’s proposal.
“Turning down an offer like this would be idiotic. We should accept Pyongyang’s terms.”
Illia agreed the conditions weren’t bad.
After deliberations, the Argentine government announced it would accept Korea’s loan offer.
Washington was the most shocked by the news.
“Korea? Pyongyang’s meddling in Argentina?”
“Your Excellency, if the Koreans gain influence in Argentina, Chile will fall next in no time. Then South America could domino into Korea’s economic bloc.”
CIA Director William Raborn argued they couldn’t stand by on the Argentina issue.
“Isn’t that jumping to conclusions over a mere loan?”
“Absolutely not. Korea always starts with loans or economic aid to approach target nations. If we dismiss their loan as routine cooperation and let it slide, Pyongyang will snatch Buenos Aires by the throat in an instant.”
The CIA cited Third World countries as examples.
After much deliberation, Lyndon Johnson made his decision.
“The State Department will take responsibility—roll back that loan deal in Buenos Aires.”
Following Washington’s directive, U.S. Ambassador to Argentina Edwin McCammon Martin visited the Argentine Foreign Minister and pressured him to abandon the loan.
“The IMF or World Bank will lend you the money, so send back what you agreed to take from Korea.”
“No, why is the U.S. interfering in our borrowing decisions?”
Still, they couldn’t dismiss the U.S. outright and heard them out.
The U.S. loan offered slightly better terms than Korea’s, but it came with a catch.
“Abandon resource nationalization?”
President Illia immediately signaled refusal.
Washington was deeply displeased by Illia’s rejection.
As if to drive the nail in, Illia declared he would tighten control over Argentina’s mineral resources.
“We will scrutinize foreign companies to ensure no tax evasion occurs.”
It was a bold reform by the Argentine government, now less beholden to the U.S. thanks to the Korean loan.
“These guys are getting cocky.”
The Illia regime had already drawn U.S. ire by declaring it would cancel all ‘illegal’ oil development contracts.
And that wasn’t all.
“We’re planning to send U.S. troops to the Dominican Republic—Argentina’s support is needed.”
It was less about actual need and more a test of whether Argentina would remain part of the First World alliance.
The Illia government ignored the request.
“That’s America’s war. Argentina has no reason to shed blood.”
This led the CIA, State Department, and Pentagon to harbor strong resentment toward Argentina.
“Your Excellency, we can’t tolerate this any longer. If we let Argentina slide, other South American nations might turn anti-American. We need to make an example.”
“Your Excellency, think of Korea. Didn’t they topple the regime in Ceylon that defied them?”
To protect their sphere of influence, firm options had to be on the table.
That was the argument from the military and CIA.
The State Department didn’t oppose.
With the intelligence agencies, military, and executive branch aligned, Lyndon Johnson found it easier to decide.
“How do you plan to intervene?”
“What about a coup?”
“A coup.”
Even a Democratic administration wasn’t above staging coups.
The CIA Director exuded confidence in the operation.
“We’ll clean it up neatly.”
“I’ll give you full authority—handle it without a hitch.”
The CIA immediately made contact with Argentina’s military.
But the ones they approached weren’t the Red Faction hardliners dreaming of military supremacy—they were the moderate Blue Faction that preached constitutionalism.
“Why the Blue Faction of all people?”
“They’re the ones holding real power.”
The CIA first contacted General Julio Rodolfo Alsogaray, commander of the 1st Army Corps.
The U.S. terms were simple.
“Topple the Illia regime. Do that, and we’ll back you or whoever you push into power from the shadows.”
“Why tell me this?”
“The military hates Peronists, doesn’t it? Do you intend to keep tolerating a ruler sympathetic to Peronism like Illia?”
In truth, even the constitutionalist generals had plenty of gripes with Illia’s Peronist-like vibe.
‘If you’re doing economic policy, go market-friendly like neoliberalism. How does it make sense for the government to take responsibility for everything like some pseudo-commie?’
They worried Illia might ruin the country like Perón in the long run.
The CIA hit that point exactly.
Soon after, Argentina’s military began coup preparations.
The commander of the Gendarmerie, the Joint Chiefs Chairman, the Army Intelligence Director, and other top brass threw their weight behind it.
Essentially, the entire Blue Faction was in open rebellion.
On the surface, victory for the coup plotters seemed all but assured.
The problem was that security on their plotting had been breached.
“A coup brewing in Argentina?”
Through signals intelligence, Korea’s Intelligence Command detected signs of the coup before any of its agencies—or anyone else.
The Intelligence Commander straightened his uniform and headed to the Prime Minister’s residence.
“His Excellency is in a meeting.”
“It’s an urgent report.”
Whenever intelligence chiefs brought such news, meetings ended immediately.
After the ministers filed out, Lee Seong-myeong entered the conference room.
Lee Seong-jun greeted him with a relaxed expression.
“Long time no see, Director. What’s up?”
“Coup intelligence.”
Lee Seong-jun’s face sharpened at the word.
He took the report without a word.
“A military coup.”
Even from the incoming intel, response looked tricky.
If the Blue Faction—representing Argentina’s military—was plotting a coup, suppressing them by force was impossible.
Did that make the intel worthless?
‘No way.’
Lee Seong-jun’s mind was already simulating countermeasures.
First up was the Soviet August Coup of 1991.
The coup leaders had placed Gorbachev under house arrest, declared a state of emergency, and moved troops into major cities.
Up to that point, their victory seemed certain.
Then Yeltsin appeared.
Yeltsin condemned the coup forces and called on Soviet citizens nationwide to resist with strikes.
Soviet people formed human chains to defy the coup troops.
The nationwide popular resistance was enough to break the conservative hardliners who’d been so sure of success.
Argentina could do the same.
No—its conditions were even more favorable than the Soviets’.
Gorbachev had been losing popularity due to reform fallout and the Eastern Bloc collapse, but President Illia was a leader riding high on success.
He was paying down debt and on good terms with Peronists.
Sure, military influence had him criticized as a ‘slow turtle,’ but Korea could flip public opinion.
Lee Seong-jun acted the moment he sorted his thoughts.
“The Agency for National Security will have to move.”
Orders went to the Foreign Ministry too.
Korean Ambassador Yun Bong-gil passed coup details—date and participants—via a note during his meeting with the Argentine president.
“A coup?”
Yun cautioned as Illia startled.
“There might be bugs.”
“Oh.”
Yun relayed the coup timing and players sourced by the Korean government.
The president, mindful of surveillance, picked up a pen.
“Ambassador, put yourself in my shoes. A coup out of nowhere—would you believe it right away if you were me?”
“I understand your skepticism. But you must believe us. You’re well aware of the constant coup threats in this country.”
“The people your country names as ringleaders are the ones I trust.”
The ambassador’s pen moved at Illia’s words.
“I get it’s hard to trust at face value. But, Your Excellency, why would the Republic of Korea come to the presidential palace with such claims unless we had business here? You must understand we want you to succeed.”
Korea had proven that with massive loans.
Illia reluctantly took up his pen.
“Say the people the ambassador warns of lead a coup. I’d be powerless against them. How could I stop the military’s real powers united?”
“What if you tried this approach?”
Yun suggested broadcasting nationwide messages attacking the coup forces via radio and TV.
“You want me to call citizens to the battlefield? That’s not a leader’s job.”
Illia recoiled at Korea’s advice.
“Your Excellency, this isn’t your personal fight. It’s a battle for Argentine democracy’s fate.”
“Even so, I can’t demand the people shed blood.”
“U.S. President Thomas Jefferson said democracy grows on blood. To root democracy in Argentina, blood must be shed. Hesitate out of fear, and this country will never escape the military’s shadow.”
The president agonized over Yun’s words.
After a long pause, he wrote again.
“Even if I appeal, the people won’t move. Public opinion isn’t on my side.”
“That can change in no time.”
“What do you mean?”
“You’ll see soon enough.”
Yun’s bold assurance became reality before long.