yues ay, July 1, I JIlI VVMI l5I.frg tn 4 Uruguay: Sho) By MORT ROSENBLUM state with well-planned kidnap- Associated Press Writer ings, assassination and psycholo- MONTEVIDEO, Uruguay-For gical terror. decades Uruguay was a geogra- In April 1972, Tupamaros ex- phically misplaced Switzerland, ecuted some senior officers, and rich, democratic and stable. Now, the army reacted violently, with tank trucks in its plazas and touching off a week of butchery hunger in its slums, it's more between the two sides. like the raft of Latin America. Congress stands deserted, look- THE FILM "State of Siege" is ing like a four-story cake from a based on one incident in the his- wedding that never came off. tory of the Tupamaros' activity. Boulevardiers shoot icy glances Bordaberry, new to office and at army jeeps cruising past the elected as a dark horse, convinc- streetcorner flower stands. ed Congress to give the Army a free hand to put down the guer- PRESIDENT JUAN M A R I A rillas without courts or custom- Bordaberry, a conservative cat- to slow it down. tleman propelled by the military, Officers extracted information closed down Congress June 27 by torture and followed it up with for the first time since 1933. All machine-gun bursts. They rip- government now comes from him ped up floors in private homes - and top army officers. to find arms caches and "pe sples Uruguay lived in near paralysis jails" where kidnap victims were until last Thursday as the Com- kept. munist-run National Workers Con- THOUSANDS WERE arrested vention (CNT) pressed a two- utli ia rmtccu week general strike indapparent until, in a final dramatic coup hopes of unseating Bordaberry de grace, soldiers trapped and and forcing elections. captured Tupamaro leader Paul Then from hiding places around Sendic. the capital, union leaders called Buoyed by its victory and pow- off the strike. But few people in er, the military began issuing this highly politicized country of statements involving politics and 2.8 million European immigrants economics. Then, tin February and their descendants consider 1973, Bordaberry appointed a new that the final round. defense minister and the Army flatly said no. BORDABERRY'S ACTION w a s Bordaberry, determined to re- one step in a long process that sist, barricaded himself in his started when the military regeiv- office and lined up some navy ed wide powers to suppress troops to defend him. The Army Uruguay's Tupamaro urban g'er- rolled tanks up to his official pal- rillas. ace and, before any one fired, The Tupamaros, using a name Bordaberry gave in. recalling Uruguay's now exter- THAT WON, the military asked minated Indians, attacked t h e Congress to withdraw immunity wcase a bit tarnished from leftist Sen. Enrique Erro. Army officers wanted to try him for alleged Tupamaro connec- tions. When Congress refused, Bordaberry dissolved it. "Well, Congress wasn't worth much by then anyway," grumb- led one middle class Uruguayan who was more disturbed by the country's economic plight. "We are just not used to this . .." The only organized opposition came from the Communists who had infiltrated the labor move- ment. They succeeded in a long strike, but tanks, tear gas and machine-gun bullets into the air broke up a protest rally they tried to organize last week. STILL, MANY Uruguayans turn- ed out to chant the line "tyrants tremble" from the national an- them and scrawl fresh antimili- tary slogans on the increasingly seedy walls on this once-wealthy capital. Two strikers were shot dead by soldiers while demonstrating, and several persons were wounded when the army broke up the ral- ly. Many hundreds were arrested, at least temporarily, A generation ago, Uruguay was Latin America's showcase. Work- ers could draw substantial social security at 50 years of age and lie around on the spotless South Atlantic beaches. Everyone work- ed. URUGUAY'S WEALTH walked around on its plains - g r e a t herds of cattle and sheep that- thrived with almost no care. There was no need to develop scientific improvements or care- ful breeding. Since the Korean War how- ever, the bottom has dropped out of Uruguay's meat and wool mar- ket, and practically nothing has been done to diversify the econ- omy. Nearly 80 per cent of wool exports still go out raw or only washed. The resulting loss of foreign ex- change export earnings staggered the government, which w a s heavily committed to welfare and public works spending. For some periods, for instance, more than one-third of the labor force work- ed directly for the government, and some employes had three dif- ferent public jobs at a time. UNDER FORMER President Jorge Pacheco Areco, economists say, large sums of money allo- cated for improving meat pro- duction didn't do the job. Invest- ment earnings and possible de- velopment capital found t h e i r way out of Uruguay. "I figure a man earning my salary would have been 60 per cent richer 20 years ago in terms of what he could buy and save - but that doesn't say it all", said a top-level accountant making the equivalent of $400 a month. Until recently an Uruguayan could always console himself with a thick steak. Now beef is so short that the government is to impose a two- or three-month ban on domestic beef sales so there will be enough for export. INFLATION IN 1972 was 94.6 per cent, second only to Chile in Latin America, and the cost of living went up 33.1 per cent dur- ing the first five months of 1973. Unemployment has tripled in five years to about 100,000. A pound of meat that now costs 70 cents was about one-fourth that price in 1968. In five years, the price of a cheap business suit has doubled to $45 or so, over half of the average monthly wage. 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