ARGENTINA: Killing the Sacred Cow

President Arturo Frondizi sat in a gilded chair in the Casa Rosada one evening las,t week and nervously slaughtered one of the oldest sacred cows in Argentine political life. He reported that he had abandoned Argentina's long-revered nationalistic policy of going it entirely alone in oil development. He had closed or was about to close nearly $1 billion worth of contracts with foreign oil companies.

Frondizi first outlined the present gloomy situation, in which Y.P.F., the government oil monopoly, produces only 35% of the country's annual needs. Although reserves are estimated at 2.3 billion bbl., Argentina is forced to import...

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