Rise of the Argentine Empire

“Last year was the closest our country's economic data has been to Brazil's since the 1920s. Brazil's statistical data was 6.7 billion US dollars, while ours was 6.5 billion US dollars.

The difference isn't too big, but in fact, our country harbors too many crises. The peso is devaluing, but the exchange rate hasn't changed. Economically speaking, especially in terms of import and export data, the gap between us and Brazil is actually too large…”

Saint Hérse was gesticulating wildly while bragging to the Minister of Foreign Trade. This was the big headline news for tomorrow's *New A Daily*. The data had been double-checked by the newspaper's reporters and the Falcon Bureau's international department.

This morning, they had obtained the economic operating data for both countries from last year, which was perfect for showing off. Brazil was an object worthy of vigilance. Saint Hérse's "Brazilian Threat Theory," orchestrated by the Falcon Bureau's international department, was currently gathering all sorts of intelligence.

He had no choice but to politely listen to him continue speaking. Taking advantage of the owner of Andes Peace Clothing Factory interjecting, the minister quickly excused himself to go to the restroom, using a "bathroom escape" to leave, which left Saint Hérse somewhat disappointed.

“Hello, Saint Hérse Cohen, the current small boss of Prall International.”

Saint Hérse politely shook hands with the factory director, planning to see what kind of audacity this guy had to interrupt him.

“Hello, Andes Peace Rhode, the director of a small clothing factory. I admire you very much. Your speech just now was wonderful.”

Rhode shook hands respectfully. He had listened to Saint Hérse's long speech and found it very reasonable, which was why he interjected.

“Mr. Saint Hérse, in addition to listening to your speech and the conversation just now, I also have something else, which is that I want to seek cooperation with you.”

“Oh? What kind of cooperation? Let's talk over there.”

Since he was an admirer of his, so be it. Saint Hérse's mood improved. To be honest, he was still a little unaccustomed to giving speeches in front of hundreds of businessmen and officials. He still needed to adapt. Before, he mostly just bragged to soldiers, workers, and security guards.

Looking at this guy, he was probably not even 30 years old, and he was quite promising. Could it be that he was planning to use Prall's fleet for exports? That wasn't impossible.

“Mr. Saint Hérse, I was wondering if you could introduce me to someone from Blue Cloud Clothing Company. They are too amazing. I want to learn from them and become their OEM factory, but their boss is too mysterious.”

“Oh? Why do you want to see someone from the clothing factory? Aren't you running a clothing factory yourself?”

“It's like this. Isn't Blue Cloud Clothing Factory recruiting some OEM factories? I intend to become an OEM factory, but they think that Bucheng is too far away, so I didn't succeed. Since Prall International is the largest agent abroad, it might have connections, so I came to try.”

Blue Cloud Clothing Company? This year, Saint Hérse was going to build a large factory in Bucheng and also make a layout for the textile industry. As light industries, the investment in clothing and textile industries wasn't that large, and they could also make a lot of money, so they were key projects.

“Well, you can talk about your plan, and I'll listen. If it's suitable, it's not impossible to recommend you.”

So, the two chatted about a lot of “big things.” This guy named Rhode had a lot of old factory buildings in his hands, as well as some old equipment. He was a caudillo who was transitioning, but because he didn't have much experience, his family fortune had been greatly depleted. Saint Hérse carefully examined Rhode using an interview method and felt that he was acceptable, so he gave him the contact information of the person in charge of Blue Cloud Clothing and Shoes and asked him to go to Maria Town to discuss cooperation.

This year, he planned to expand the scale of Blue Cloud Clothing and Shoes to more than 7,000 people, planning to build a branch factory with more than 2,000 people in Bucheng, and at the same time, he would set up a textile factory with a scale of 1,000 people to develop upstream in the textile industry. Light industry could still accumulate a lot of money, and the technical requirements were not high.

The two had a pleasant conversation, and Saint Hérse left the banquet. Tomorrow was the day that the Argentine Import and Export Trade Association would be officially inaugurated. Almost everyone present had already defaulted to joining this new organization.

Saint Hérse also met many caudillo figures at the banquet, truly penetrating the enemy's interior. Their natural arrogance and depression, mixed together, allowed Saint Hérse to see some hatred in their eyes. Depriving people of their wealth was like killing their parents, not to mention that they had been messed up by the bragging president, and they didn't know how much money they had lost in the past few years.

The export tax was too high, and the Argentine government's purchase price was too low. While reducing competitiveness, it increased the cost by almost double. Some caudillos even abandoned a lot of wheat and corn fields in order to save themselves and lose a little less, indirectly exacerbating the drought and reduced production in Argentina in the past two years.

Many cattle and sheep were also slaughtered, and Argentine agriculture suffered heavy losses.

…

The next day, the Minister of Foreign Trade was responsible for the inauguration ribbon-cutting, and the Argentine Trade Import and Export Association was officially established. Saint Hérse sponsored a batch of start-up funds, and the association was established at 188 May Avenue, Bucheng. The atmosphere at the scene was still very warm.

Joining the trade association allowed for information sharing. Only a small amount of membership fees needed to be paid each year to have a distinguished experience, which was equivalent to a circle and a club.

The competent department of the association was the Ministry of Foreign Trade. The first president unit was Prall International, and the vice-president units also included several trading companies with military backgrounds. The other members were ordinary members.

This association had the following goals and daily routines:

1. To contact and promote Argentina's import and export trade business, such as joint export teams, fleets, etc., to carry out cooperative chartering, etc.

2. To assist in promoting and optimizing import and export trade policies, investigate and report on domestic and foreign commercial information, especially Western Europe, Argentina's most important export region and market, as well as the South American market represented by Brazil, Peru, and Chile, and to develop new export markets such as Australia, South Africa, Japan, and Nanyang, and compete with American agriculture and animal husbandry.

3. To investigate, research, and count import and export commodities, and assist in increasing production and improving the country's export materials, the alliance of domestic companies, and mutual cooperation.

4. To protect and promote the rights and welfare of import and export colleagues, especially since the association also established industry branches such as commerce, agriculture, and animal husbandry to stick together for warmth.

5. To make improvement suggestions to the competent trade authority, the Ministry of Foreign Trade, and to be entrusted by the competent trade authority to handle matters related to the development of import and export trade.

The most important purpose of the association was to promote Argentina's new trade tax law and customs law, and to let everyone wave flags and cheer, so that the Presidential Palace would reduce export tax rates.

For a long time, Argentina's economic development strategy has always fluctuated between the "outward-oriented strategy" of prioritizing agricultural exports and the "inward-oriented strategy" characterized by export-substitution industrialization. Obviously, Argentina does not have a population of hundreds of millions as a market to develop export-substitution industrialization. Relying on the international market to develop its own industrial system is an inevitable choice. By the time the population grows, it will be too late. At most, it will only be the likes of Egypt.

Argentina has many favorable conditions for developing export agriculture. However, compared to the export scale and competitiveness of the agricultural sector, Argentina's industrial exports have developed slowly and are obviously weak.

In the import and export association, there are also many agricultural companies and farms, mostly from Buenos Aires Province, accounting for 80% of the places, which is also inevitable. This is currently the only industry in Argentina that can be considered barely advantageous.

Although the tariffs on exporting grain and beef are also very high, the cost is indeed much lower than industrialized production like the United States. The Pampas natural grasslands, Argentina currently uses very little fertilizer for farming, and coupled with the exploitation of farmers, the cost is pitifully low, and it still has an export advantage.

But this is based on the fact that farmers are constantly running into the slums of Buenos Aires. This is actually a huge obstacle to Argentina's population growth. The post-war period was the fastest period of population increase in human history.

Even the old capitalist country Japan has increased by 30 to 40 million people, and Japan's urbanization rate this year is only a little over 36%, so what is Argentina's? It is already close to 60%, which is really a sin.

This is also a big problem, but it is not the most urgent problem to solve. Without a population, how can we talk about industrialization? Too rapid urbanization,

However, it greatly damaged Argentina's growth potential, creating a multitude of problems. You should know that in previous decades, Argentine families typically had seven or eight children. Now, even three or four in a city is considered good.

For example, the current vice-chairman of the Radical Civic Union party had 10 siblings when he was a child, and he's only 44 years old this year.

Argentina's First Lady, Eva Perón, also had seven or eight siblings when she was young, and she's only 33 this year. But based on Saint Hilaire's research in the slums, the situation is not optimistic. There's no money, and few children are being born. In just one generation, the feeling is that everything has been turned upside down.

Too many Argentine farmers have left, and the slums are overburdened, but the countryside still has landed gentry. Saint Hilaire's industrial farms are still just a concept.

The construction of industrial farms also requires mechanization. Fortunately, there's been good news about Japanese walking tractors and motorcycles. If all goes well, they can go into production by the end of the year, in time for next year's spring plowing and summer harvest.

Kubota is the fourth Japanese company Saint Hilaire has invested in. Kubota Agricultural Machinery Co., Ltd. had sales of 2.2 billion yen last year, equivalent to an annual turnover of more than 6 million US dollars. Kubota developed rapidly during World War II, and in '49, a new successor took over.

They still have good technology. Saint Hilaire used Rennes Industrial Investment to acquire 10% of the shares and bought the production line. The motorcycle production line from Honda Motorcycle Co., Ltd. has already left Tokyo Port heading south, preparing to pass through Singapore and then take the Pacific route to settle in La Plata.

Walking tractors can already be considered the limit of industrialization that Argentina can currently accept; they are truly high-precision projects.

In an era of backward mechanization, walking tractors are a type of small tractor, now popular in Europe and the United States as a means of transport and agricultural machinery. Powered by diesel, their small size, flexibility, and strong power are loved by farmers.

Walking tractors have a simple structure, low power, and are suitable for small plots of cultivated land. The driver holds the handle frame to control the operating mechanism, towing or driving supporting agricultural implements for operation.

Compared to the investment in four-wheeled tractors, this is quite cheap, and the cost-performance ratio is very high.

Moreover, the construction period is not long, and it is much better than the current animal power such as cattle in Argentina. Honda motorcycles can also be fitted with a carriage to make three-wheeled motorcycles for rural transportation, which is very convenient. With this two-pronged approach, at least a lot of manpower resources can be freed up, so people can focus on having children.

Later four-wheeled tractors can only buy technology and production lines from Italy, Germany, and France. Four-wheeled tractors can be regarded as industrial pearls second only to automobiles.

For now, the cost is too expensive, and we can't afford it yet. Moreover, it's better to take one step at a time. Argentina is not yet capable of affording four-wheeled tractors.

The scale of that investment is really calculated at 20 million US dollars or more. Saint Hilaire also estimated it based on the investment scale of China's First Tractor Works in the future. The factory's supporting workers alone would start at thirty to forty thousand. Such a large investment is unbearable; the steel plant alone is enough of a burden.

By the late 1940s, tractors had replaced livestock in North America (the United States and Canada), Western Europe (Germany, France, Britain, Italy, Spain, the Netherlands, etc.), and Australia and New Zealand, and agriculture developed rapidly.

They became the main driving force for farm development. Now tractors have been promoted and used in Eastern Europe, Asia, South America, and Africa, replacing animal power. In comparison, very few farms in Argentina use tractor production, so few that it's pitiful, and the agricultural potential has not been fully exploited.

Compared to guns and ammunition, the industrial industry of tractors, which started in the Second Industrial Revolution, is really difficult, and mastering diesel engine technology can also cultivate talents for introducing heavy truck projects in the future.

As for the first step of trade tariff reform, the foundation of public opinion has been completed, and the next step is to do other things. After all, this can only be regarded as an industry association. It is impossible for them to take the lead. Everyone is a sophisticated egoist. Adding flowers to the brocade can be done, but no one is stupid enough to let others be the first to take the fall.

Unite some interest groups, and let the people of the Radical Civic Union party really do things, and also use the power of the newspaper to guide public opinion.

During the establishment of the association to contact various import and export companies, Saint Hilaire also arranged to handle some things, such as the establishment of the Cider Creek Cement Plant and brick factory, and the commissioning of the Rennes Fertilizer Plant, which are all very important.

There is also the establishment of agricultural companies, the construction of Morado Town, the expansion of Thunder Mining, the imminent harvest of tobacco leaves from the cigarette factory, the preparations for industrial farms, and the return of the Japanese investment team, all of which require him to personally take charge.

…

Saint Hilaire sent a message to Rosa through the people of the Falcon Agency. After Saint Hilaire finishes the association's affairs, he will go to the Propaganda Department of the Radical Civic Union party to prepare to ask his superiors to make trouble, and then go home to accompany Elena, and also write at home. The New Argentina newspaper is also a top priority and will be an important link in the public opinion bombardment of the Presidential Palace.

Saint Hilaire's goals are very simple, namely the following two, and the main measures taken are:

1. Provide export enterprises with export tariff reductions, export tax rebates, export subsidies, export credits, and export insurance, etc. The purpose is to reduce export costs, open up foreign markets, and enhance export competitiveness.

This item is not limited to tax cuts, and the national treasury must also pay. Not to mention that the Argentine national treasury has no money, even if it has money, it is impossible, at least not at present. It is impossible to agree to this condition, and the requirements are very high.

2. Provide export production enterprises with low-interest production loans, give priority to supplying foreign exchange required for imported equipment and raw materials, and vigorously introduce capital, technology, and business management knowledge. The purpose is to reduce production costs, improve product quality, and increase foreign exchange earning capacity.

This item is not so harsh. In comparison, it is relatively easy to achieve, and Saint Hilaire's purpose is here. These requirements have a lot of nonsense and clichés and need to be constantly improved.

But in fact, most of the other ninety percent cannot be achieved, so that is the simplest core item, which is also Saint Hilaire's bottom line, that is, to reduce export tariffs, which is also his ultimate goal. The other fancy things are just used as some bargaining chips.

Ask for the sky-high price and bargain on the ground. The higher the price offered, the harder the bargain. If there is one more, it will be a big profit.

This important information has been written into Saint Hilaire's monthly internal reference message to the Radical Civic Union Committee and plans to submit it through Congressman Luis.

This is very important to him. He has no way to promote this kind of national-level policy, but Arturo can. He has some positions in the Presidential Palace.

Moreover, the energy of the Radical Civic Union party in the parliament cannot be ignored. Moreover, as long as this kind of thing is done, it is solid political achievements, and it can also stab the current president. I believe that this next presidential candidate who is ambitious for the presidency will immediately turn it into a slogan when campaigning and will definitely be tempted. This is also an open conspiracy.

Moreover, in fact, the Presidential Palace does not have the final decision-making power on legislation. Argentina has a separation of powers. The Presidential Palace can only influence, but cannot completely suppress other people's opinions, especially the opinions of the highest legislative body - the Parliament, unless he wants to be a real dictator. But power is from the bottom up, and even if Perón is strong, he dare not ignore the opinions of the lower levels.

So Saint Hilaire has obtained all the latest lists of the Senate and the House of Representatives to see if he can win over some people outside the Radical Civic Union party to promote tariff legislation without adopting this radical method.

If Perón had not initially agreed, Argentina could not have changed from a free trade country to what it is now. The Parliament will also consider the President's economic policies, and even the customs is not completely independent. Moreover, the number of people in the Justicialist Party in the Parliament is also large enough, unless all the opposition parties can unite, but this is impossible to do.

Although the Presidential Palace can nominally oppress the Parliament to legislate, that is only limited to situations where everyone does not object. The real legislative power, in the Argentine Constitution, belongs to the Parliament.

Saint Hilaire is constantly writing these articles well, with two lines. One line is that the Radical Civic Union party promotes legislation, and the second line is the pressure of public opinion from the newspaper.

The Propaganda Department of the Radical Civic Union party has done some very good and obscure things, and the relationship cannot be made too dead or too rigid.