By Jorge I. Domínguez
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Additional info for Economic Issues and Political Conflict: US–Latin American Relations
These sales subsidized national business in yet another way: while payments on principal were indexed according to rises in the wholesale price index, the rate of interest to be paid was well below 66 prevailing market prices . The principal conflict between the Videla government and the business sector did not, however, involve distinctions by nationality of firm. As the 1980s opened, the Argentine manufacturing sector, regardless of nationality of the firm, was complaining loudly against the tariff and exchange-rate policies that removed industrial protection, which had previously been very high, and that sought to increase industrial efficiency and competition, and to lower prices, by facilitating the imports of manufactured goods.
Intellectuals, government officials, and manual workers, for example, may be virtually permanent supporters of some form of government intervention over foreign investment. National business is far more variable. Its shift from the transnational to either the statist or the national bourgeois coalition is an important determinant of national policy. 4 Variations in attitudes to expropriation: by class or by country? In 1965, people in the metropolitan areas of Buenos Aires, Santiago, Mexico City and Caracas were asked directly about their views on expropriating 'foreign-owned industries, that is, having the government take over large corporations owned by foreigners'.
While support for general expropriation declined, support for selective expropriation increased. In 1958, 3 6 % said that US business investments should be either limited, reduced or eliminated. In 1966, 7 5 % said that all or some foreign enterprises should be nationalized by the state. Therefore, while fewer favored state control over all foreign firms, twice as many favored a more selective approach. Two-thirds of the respondents to the 1966 survey still thought that foreign enterprises contributed to development.
Economic Issues and Political Conflict: US–Latin American Relations by Jorge I. Domínguez