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Uruguay's President Acts Boldly to Try to End Economic Distress »* ' SH; *Peac E Can Be Maintained.", a Presiden, T Gestido Is Expecte

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Uruguay's President Acts Boldly to Try to End Economic Distress »* ' SH; *Peac E Can Be Maintained. tt-?M 41 ;'7M m mm • 6 > 11 11 S THE NEW YORK TIMES, SUNDAY, OCTOBER IS, 1967 mm (t | $MmM- a Uruguay's President Acts Boldly to Try to End Economic Distress »* ' SH; *peac e can be maintained.", a Presiden, t Gestido is expecte. d to . MI • ' M economics — which is virtually •r-v ' — •*•* " — — nAQOA /««n k* MnlntnlmAj ' A«H4 JA»4 /"* _ A. * J J A. 1A AWHAAIAI! *" - '- —.1.1 A. 1A 1 — ultt ill i 11 economic polic1* y Mra m . WBatll ^ xl« e_ > By BARNARD L. COLLIER European diplomat said. "Peo do now is to bring Uruguay, as the entire issue in Uruguay to• wants. Thfs includes an agree• an English banker put it, "into ment with the International fipocUl to Th« New York Tlrato pie are trribly frustrated." the economic mainstream of day. MONTEVIDEO, Uruguay, Oct. The nation's decision to get 11 The more private cause of Monetary Fund in order to bol• herself classified, along with the 20th ceniuiy. * the battle, however, is that Mr. ster Uruguay's credit rating, 14—Uruguayans have so long Several reliable sources here Batlle, according to friends and the ending of most exchange beeiy suspicious of boldness in Paraguay, Bolivia and Ecuador, say that President Gestido associates, has ambitions of be• controls, a devaluation of the government that the 19th-cen• as an underdeveloped country wanted to jettison the old- coming the "Prime Minister" of peso, heavy concentration on tury diplomatic caveat, "above within the Latin-American Free fashioned, statist, monetary- the nation, with control of all a balanced budget and promo• all, not too much zeal," has Trade Association did nothing control-minded economists in the most important ministries tion of agricultural production. to help Uruguayan pride. his Cabinet some time ago. But and especially the ones dealing The President is also seeking virtually become the Uru• his natural reluctance to do men associated with Mr. Bathe's guayan politician's creed. Effects Are Observed anything too hastily inhibited with economic policy. group to carry out this new President Oscar D. Gestido, The state of near bankruptcy, him. * Although Mr. Battle denies it, policy, but he is not consulting who is 66 years old and not in a nation still dreaming of So did what seems to be a the fact seems clear that he Mr. Batlle beforehand. m by any means a political maver• the days Ji) the mid-thirties feud between him and the is simply uniting—as President ick, is still a firm subscriber when tne Uruguayan peso was powerful wing of his Colorado Gestido did before declaring a On the part of the United to that gentle doctrine worth more than the dollar, is party, led by a brash, 39-year- siege—fpr utter despair to set States, there is a possibility of Yet last Tuesday he used his a very difficult pill for the peo old politician named Jorge Batlle. in. Then he is expected to make some significant aid if, as one special constitutional power to pie to swallow. , He is the grandson of President his move. BSE diplomat put it, "Uruguay shows declare a limited state of siege A visitor to the capital of Jos£ Batlle Orddfiez, who was 'President Gestido will even• signs of getting its housed ia And, at the same time, he Montevideo is immediately responsible for turning Uruguay tually have to come to me, and order with a serious stabiliza• provoked the resignation of five aware of the city's increasing into the only welfare state in on my terms," Mr. Batlle has tion plan." Cabinet ministers, creating shabbiness, the angry complain Latin America. The younger said. The United States Ambassa• crisis that presages an abrupt ing about rising prices and the Mr. Batlle got within just 40,000 dor, Henry A. Hoyt, says that about-face in Uruguay's eco• dejection evident in people of votes of being elected President President Gestido is now he has found a lot of sympathy nomic policies. nearly all occupations last November, trying what may turn out to be in Washington for Uruguay's His reasons for taking such Employes of the state, for an effective counterattack. position and a keen interest in tradition-breaking actions are example, have just received a i Clash On Economics There are clear signs that he keeping her peaceful democracy quite simple: Uruguay is on the 40 per cent wage increase, but Several candidates ran on the is ready to accept most of the from coming apart verge of slipping into economic because of inflation they are Colorado party ballot; thus he disaster and President Gestido still only half as well off as and Mr. Gestido completed felt that things were desperate they were two years ago. And against each other as well as enough to risk what are con• the state employes make iip al• against the candidates of the sidered extreme measures here. most 20 per cent of Uruguay's opposition Blanco party. million-man work force in a The clash between tbr-ttm Living Cost Up 107% nation of almost three million. men developed almost imme• A glance at the statistics It is evident to most Uruguay• diately and its public basis, pri• paints a black enough picture ans and foreigners that a shift marily, was Mr. Battle's out• for even the most cautious ob• in economic policy has been spoken criticism, of President server. The cost of living has needed for a long time. What Gestido's ability in the realm of risen 107 per cent so far this year; hardly a day has gone by o 00OOOOOOOOOOOOOOOOOOO00OOOO0000000600000OOo since President Gestido took o office seven and a half months o ago that has not seen a strike o o or work stoppage involving a o ^She delicate first pressing vital sector of the economy; o o nearly $70-million is due this o of only the most perfect year on Uruguay's foreign debt o o —equal ,ta nearly half the na• o white Chardonnay grapes; tion's projected exports for o o 1967. o Meanwhile, strict regulations o o Oqe of the reasons you'll find of foreign exchange have o served to lower drastically the o Taittinger Blanc de BlancSj amount of meat and wool that o th,»iininii,»f*vtvri<«nn» \ , thinge/ tnation'o _ships overseasranchers. arIne ordewillr• puweaui wiog 01 iiu> cjiuiauu J tMM.ip&ioiu declaring a u4 lac part or tue United m-» JW*JT| IMS UOCU iJia worth more than the dollar, is party, led by a brash, 39-year- siege—for utter despair to set States, there is a possibility of special constitutional power to a very difficult pill for the peo old politician named Jorge Batlle. in. Then he is expected to make some significant aid if, as one declare a limited state of siege pie to swallow. , He is the grandson of President his move. %*m-- diplomat put it, "Uruguay shows And, at the same time, he A visitor to the capital of Josd Batlle Orddftez, who was "President Gestido will even• signs of getting its house in provoked the resignation of five Montevideo is immediately responsible for turning Uruguay tually have to come to me, and order with a serious stabiliza• Cabinet ministers, creating aware of the city's increasing into the only welfare state in on my terms," Mr. Batlle has tion plan." crisis that presages an abrupt shabbiness, the angry complain• said. The United States Ambassa• about-face in Uruguay's eco• ing about rising prices and the Latin America. The younger dor, Henry A. Hoyt, says that nomic policies. dejection evident in people of Mr. Batlle got within just 40,000 President Gestido is now he has found a lot of sympathy His reasons for taking such nearly all occupations. votes of being elected President trying what may turn out to be in Washington for Uruguay's tradition-breaking actions are Employes of the state, for last November. an effective counterattack. position apd a keen interest in quite simple: Uruguay is on the example, have just received a Clash On Economics There are clear signs that he keeping her peaceful democracy verge of slipping into economic 40 per cent wage increase, but is ready to accept most of the from coming apart disaster and President Gestido because of inflation they are Several candidates ran on the felt that things were desperate still only half as well off as Colorado party ballot; thus he enough to risk what are con• they were two years ago, And and Mr. Gestido completed sidered extreme measures here. the state employes make Up al• against each other as well as most 20 per cent of Uruguay's against the candidates of the Living Cost Up 107% million-man work force in a opposition Blanco party. Jk glance at the statistics nation of almost three million. The clash between tbe two paints a black enough picture It is evident to most Uruguay• men developed almost imme• for even the most cautious ob• ans and foreigners that a shift diately and its public basis, pri• server. The cost of living has in economic policy has been marily, was Mr. Battle's out• risen 107 per cent so far this needed for a long time. What spoken criticism of President yean hardly a day has gone by Gestido's ability in the realm of since President Gestido took a o o office seven and half months o 0oooooooooooooooooooooooooooooooooooooooooo o ago that has not seen a strike o o o o or work stoppage involving a o o vital sector of the economy; o IShe delicate first pressing o o o nearly $70-million is due this o o year on Uruguay's foreign debt o of only the most perfect o o o —equal to nearly half the na• o o tion's projected exports for o white Chardonnay grapes; o o o 1967.
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