According to JUSTINSHOES, the conflict was more serious, when the radicals demanded the cancellation of elections in the provinces of Mendoza and Santa Fé and, failing to obtain it, resorted to obstructionism for which, not even approving the loan granted by the United States, the government had to extend the budget, still in deficit. Meanwhile, the Río de la Plata regional conference was granting facilities to trade in Bolivia and Paraguay, which Argentina was trying to keep in its orbit; and with Bolivia itself, as with Brazil and with Cuba and with other countries, new trade treaties were stipulated or negotiated, trying to stimulate exports to the whole continent, including Canada, with which a trade treaty was concluded in the October 1941, while a supply of wheat and cotton to Spain had been agreed as early as February. Furthermore, to alleviate the crisis in maritime transport (from the 12 million tonnes of merchant shipping that entered Argentine ports in 1937,
With December 1941, and in 1942, the problems raised by the moral and also economic need not to openly break American solidarity, and by the firm intention not to give up on neutrality, arose in all their gravity, bearing in mind also that its citizens were of at least partially Italian ancestry, a third party, and German, about 250,000 others. Meanwhile, in the same December 1941, the state of siege was proclaimed with the limitation of the freedom of the press. In the Rio de Janeiro conference, Argentina obtained, followed by Chile, that only the breaking of diplomatic and economic relations with the countries of the “Tripartite” be resolved, freeing the individual governments to implement it whenever they wanted. Meanwhile he strove to profit from the economic situation, but the surplus of the trade balance was mainly due to the tightening of imports, since the United States also limited its supplies of rubber, newsprint and fuel. Nevertheless, there was a sense of euphoria in the country; in the partial elections of March the conservatives won, although not so much that they could overcome, in the chamber, radicals and socialists united. And doubts about the wisdom of that foreign policy grew in June, when it became known of an apology made by Germany about the steamer. Victoria (therefore not damaged, on April 17 by the officially announced “internal explosion”) and shortly after, by the sinking of another. The chamber voted to break off relations with Germany, but the Senate was against. The definitive resignation presented on June 27 by Ortiz and, three weeks later, his death, strengthened the position of President Castillo, as former President AP Justo offered his services to Brazil in war, and aspired to re-election. Meanwhile, S. Welles denounced Argentina and Chile in October as centers of German espionage, favored or at least tolerated by governments. This led to an investigation, which revealed serious facts against the German naval attaché O. Niebuhr. Meanwhile, while the deficit continued on the one hand (so that the public debt rose from 5.
Except that all the maneuvers were truncated by the military coup that suddenly on 4-5 June 1943 gave power to a group of senior officers, under the presidency of gen. Argentina Rawson. While this change was interpreted by some as an indication of a rapprochement with the United States, General Pedro Ramírez succeeded Rawson on the 7th. On the 18th he suspended the elections and forbade him to be called “provisional” president; newspaper publications were also suspended and a series of repressive measures were taken. But at the same time the tariffs for public services (managed by foreign companies) were reduced; a veil was stretched over the dissension between Rawson, who was sent as ambassador to Brazil and pronounced a break with Germany, and the government. Which saw rejected the request for weapons in “rent and loan” addressed to the United States. The prompt Argentine recognition (January 3, 1944) of the government of V. Paz Estenssoro in Bolivia therefore seemed a challenge; and such, nor counterbalanced by the dissolution of the nationalist party, the decree on the press, with limitations to foreign correspondents. In Washington, someone was already talking about economic sanctions; however, strong interests were opposed and Great Britain was reluctant. But this January 21 announced the arrest, which took place months earlier in Trinidad, for espionage, of the Argentine consul in Barcelona OA Hellmuth; and presented a very energetic note. So that, on the 26th, there was a break with Germany and Japan, followed by measures against German agencies and citizens and, on February 4, with the breakdown of relations with Romania, Hungary, Bulgaria and the French government of Vichy (seizing three ships). Great was the satisfaction in the United States and in all the South American republics; however, there was no shortage of protests in the country; although a considerable part of opinion was now calling for war.