1963 general election after assuming the presidency. Arturo Illia became president on 12 October 1963, and promptly steered a moderate political course, while remaining mindful of the spectre of a coup d'état. A UCRP majority in the
Senate contrasted with their 73 seats in the 192-seat Lower House, a disadvantage complicated by Illia's refusal to include UCRI men in the cabinet (which, save for Internal Affairs Minister Juan Palmero, would all be figures close to Balbín). Illia also refused military requests to have a general put in charge of the
Federal District Police, though he confirmed Onganía as head of the Joint Chiefs of Staff and named numerous "Blue" generals to key posts. Countering military objections, however, he made political rights an early policy centerpiece with an emphasis on constitutionality. His first act consisted in eliminating all restrictions over
Peronism and its allied political parties, causing anger and surprise among the military (particularly the right-wing "Red" faction). Political demonstrations from the Peronist party were forbidden after the 1955 coup, by the
Presidential Decree 4161/56, however, five days after Illia's inaugural, a Peronist commemorative act for the 17 October (in honor of the date in 1945 when labor demonstrations propelled Perón to power) took place in Buenos Aires'
Plaza Miserere without any official restrictions. Illia similarly lifted electoral restrictions, allowing the participation of Peronists in the
1965 legislative elections. The prohibition over the
Communist Party of Argentina and the pro-industry
MID (which many in the military, then controlled by cattle barons, termed "economic criminals") was also lifted. Among Illia's early landmark legislation was an April 1964 bill issuing felony penalties for discrimination and racial violence, which he presented in an address to a joint session of Congress. Yet Illia struggled to reconcile the adversarial social forces that prevailed in Argentina during his term. The UCRP was unable to broaden its electoral base beyond its core middle-class constituency, which left the most powerful interest groups – Peronists, the military, and business leaders – excluded from formal sources of political authority. Illia refused to give the military a direct role in government, which he viewed as a violation of constitutional legality. Meanwhile, Illia's reluctance to engage in the
clientelism that characterized Argentine politics left him isolated even within his own party. The newspaper
La Nación would later write of his presidency, "It is not easy to find a president more denigrated and attacked during the exercise of power than Arturo Umberto Illia. Until the end, he remained calm and prudent in governing an intense country."
Economic record Under the preceding Guido administration, Argentina had endured a sharp two-year recession under an orthodox stabilization program. Once in office, Illia implemented a pro-growth policy characterized by expansionary fiscal and monetary policy and deepening of import substituting industrialization. The result was a strong recovery with annual real GDP growth of nearly 10% in both 1964 and 1965, record agricultural exports, and double-digit growth in manufacturing output. However, Illia's opponents credited the boom to record harvests and therefore a "turn of good luck, thanks to the gods or to the pampas." Illia's administration moreover made limited progress in resolving labor unrest, persistent inflation, and foreign exchange shortages – all of which remain challenges for Argentina today. By the time Illia was removed from office in mid-1966, economic stagnation had returned.
Economic policy Opponents characterized Illia's administration as a "do-nothing regime." With a full term in office, Illia might have made more progress in improving Argentina's economic fundamentals. His administration's five-year National Development Plan was released in 1965 and was received favorably by economists and foreign officials. However, Illia's emphasis on compromise and gradualism frustrated business and military leaders who perceived an urgent need for more drastic restructuring and modernization of the economy.
Industrial expansion Industrial production grew by 18.7% in 1964 and 13.8% in 1965, led by capital intensive sectors such as steel, plastics, and chemicals. Motor vehicle production, which increased from 105,000 units in 1963 to 195,000 in 1965, became a highly visible symbol of Argentina's industrialization. the result of substantial investment after 1955 by the private sector in tractors, irrigation systems, and storage facilities, and by the government in public research and extension services. With favorable prices on world markets in the mid-1960s, Argentina's exports reached new records, rising from an average of US$950 million between 1954 and 1961 to US$1.6 billion by 1966. Deteriorating provincial finances similarly consumed a growing proportion of central government resources. Transfers to provincial governments represented 22% of central government revenue in 1964 vs. less than 15% in the mid-1950s. With the government avoiding additional foreign debt, the fiscal deficit was financed primarily by printing money. The money supply grew by 61% during Illia's first 18 months in office alone, contributing to an inflation rate that averaged 25% per year during his presidency.
Foreign trade and balance of payments Due to record agricultural exports, Argentina enjoyed a substantial current account surplus during Illia's presidency. Illia promoted regional integration with
Latin American Free Trade Association (LAFTA) members, issuing Decree 1188 in February 1965 to allow increased imports of auto parts in exchange for compensatory exports to the same countries. to only US$70 million in 1965, The annulment of oil contracts created tensions with the United States, which placed a hold on Argentina's requests for multilateral assistance, including financing for aircraft imports, housing, and agricultural equipment. As a result, American aid to Argentina decreased from US$135 million in 1963 to only US$21 million in 1964, depriving the country of a critical source of foreign currency.
Labor policy On 15 June 1964, the Law 16.459 was passed, establishing a minimum wage for the country. "
Avoiding the exploitation of workers in those sectors in which an excess of workforce may exist", "
Securing an adequate minimum wage" and "
Improving the income of the poorest workers" were listed among the objectives of the project. With the same aims, the Law of Supplies was passed, destined to control prices of basic foodstuffs and setting minimum standards for pensions. Since Perón's exile, the
labor movement functioned as the representation of
Peronism in the country. Led by the leader of the powerful metalworkers' union UOM,
Augusto Vandor, the unions deployed a large-scale "Plan de Lucha" (Plan of Struggle). Between May and July 1964, 3.9 million workers occupied more than 11,000 industrial establishments. Given his sympathy for the working class, Illia refrained from using force to expel the occupiers, Workers benefitted from a rising standard of living during Illia's administration. Median
real wages grew by 9.6% during 1964 alone, and had expanded by almost 25% by the time of the coup.
Unemployment declined from 8.8% in 1963 to 4.6% by the end of 1965. Illia's approach to foreign policy combined the old
Yrigoyen tradition of
Krausist idealism with
universalism. The first component was evidenced in the constant references of Illia and his foreign minister
Miguel Angel Zavala Ortiz to a peaceful universal order, based on justice and not on the realistic criterion of the balance of power, and Americanism. In turn, the developmental component appeared in their references to the importance of the
Alliance for Progress, the need to achieve integration and development at the national and continental level, and the inequality of economic opportunities between developed countries and developing countries as the main cause of global conflict. Illia pronounced on 12 October 1963 -day of his assumption- before the Legislative Assembly: "Peace no longer consists only in the balance of power of the great powers but also in giving the undeveloped nations the opportunities and the means to eliminate the tremendous humiliation of their inequality and the misery in which their inhabitants live. To universalize peace, progress and well-being must be universalized. America cannot be solely a geographical nomenclature, but must be an active oriented and guiding unit, complementary to a universal order." with the
Shah and the Queen consort of Iran. During his government Illia revived the
state visit of
Charles de Gaulle,
Giuseppe Saragat,
Eduardo Frei Montalva,
Mohammad Reza Pahlavi, Princess
Margrethe, among others.
Public image and the media In this climate of democratic fragility, the press mounted an active campaign that contributed to the military coup. They accused the president of being slow and ineffective, they represented him as a turtle or with a dove on his head; at the same time they argued that modernization required overcoming Argentina's fractious Congress and portrayed
Juan Carlos Onganía as a messianic leader who would bring order. Simultaneously, the personality of military chiefs was highlighted, particularly
Juan Carlos Onganía, contrasting him with the image of politicians, encouraging their intervention to "safeguard the Homeland." A coup was not only supported by the more conservative sectors, that where aligned with the military, but also by the Peronist movement led by the
Justicialist Party along several
aligned trade union.
March 1965 Congressional elections With 99 of the 192 seats in Argentina's Chamber of Deputies up for
re-election in March 1965, Illia permitted Peronists under the
Unión Popular party to participate in federal elections for the first time since 1954. Illia also tolerated a Peronist political rally two nights before the election. The Union Popular won 31% of the vote with various neo-Peronist candidates winning an additional 7%. The strong Peronist electoral performance emboldened Illia's critics who were concerned that he would allow the Peronist party, or even Peron himself, to participate in the 1969 Presidential election. Yet the political landscape was not entirely favorable towards the Peronists due to the divide between the Unión Popular and neo-Peronists. In the gubernatorial election for the
province of Mendoza in April 1966, a conservative candidate won the governorship since Peronists and neo-Peronists presented competing lists, losing the election despite collectively winning a majority of the vote. In some ways the 1965 Congressional election can be viewed as a political victory for Illia. Although Illia's UCRP lost three seats, its vote share increased to 30% from 25% in the 1963 Presidential election, winning converts primarily from the UDELPA, Progressive Democrat, and Democratic Socialist parties. Most of all, Illia succeeded in conducting a free and fair election with Peronist participation and survival of his constitutional government in spite of strong opposition by the military.
June 1966 coup Rumors of an impending military coup increased in early 1966 as Illia's control over his government grew tenuous. The upcoming coup was openly discussed – including logistical plans and even potential dates – in Argentine media, which tended to exaggerate the prospect of social disorder and gave a platform for military leaders to express contempt for Illia. Illia was increasingly unable to secure legislative support; for example, Congress refused to approve his 1966 budget at the time of the coup for a fiscal year that started in January. Meanwhile, a return to economic stagnation in 1966 (real GDP growth would be only 0.6% for the full year) after the 1964-1965 boom led to popular discontent with Illia's government. On 28 June 1966, on a cold winter morning, the military coup took place amid the indifference of the citizens. The military forced Arturo Illia to abandon the presidency and took power again. . General
Julio Rodolfo Alsogaray, Brigadier Rodolfo Pío Otero —head of the Casa Rosada Military House—, Colonel Luis Perlinger and a group of officers appeared at the presidential office to request that he leave the Government House, assuring him at all times their physical integrity. He flatly refused and after a heated discussion he told them: "I am the commander in chief of the Armed Forces," causing the military to leave the office. Faced with the strong refusal, the police officers entered with gas launchers, while the troops completely surrounded the
Casa Rosada. Perlinger again asked the president to leave, assuring him that otherwise "he could not guarantee the safety of the people who accompanied him." Finally, Illia chose to leave the place. Surrounded by his collaborators, he went down the stairs to the ground floor, crossed the entrance and went to the street, he was able to reach the exit door of the Government House surrounded by a lot of people who kept shouting ... They offered him a car of the presidency, but rejected it. At that he saw the one who had been his Minister of Education, Alconada Aramburú, approaching among the people and telling him to go with him. She followed him and they got into his car. Inside were seven people. Thus we got to his brother's house in the Buenos Aires town of
Martínez. The following day, General
Juan Carlos Onganía took office, calling the coup the
Argentine Revolution.
Cabinet Throughout his presidency he held the same cabinet members, except for Eugenio Blanco, who died in office, and had to be replaced by
Juan Carlos Pugliese in August 1964. == Subsequent activity and death ==