The Roca-Runciman Pact: Political and Economic Impact

Consequences of the Roca-Runciman Pact

This agreement reaffirmed the commercial relationship with the United Kingdom and secured export quotas for Argentine beef. This pact had important repercussions in Congress.

In 1935, the Senate faced a scandal after Senator Lisandro de la Torre (Progressive Democrat) denounced corruption while defending small farmers against powerful ranchers and foreign meatpacking plants. De la Torre investigated and found that foreign companies evaded taxation by concealing accounts and profits. He implicated Finance Minister Pinedo and members of the Rural Society.

The scandal culminated in a Senate session where Senator Enzo Bordabehere, a friend of De la Torre, was assassinated in an attack intended for Lisandro de la Torre. Eventually, De la Torre died by suicide.

Government Measures and Economic Reforms

One of the government's first acts was to lift the state of siege. Due to the poor economic situation, the administration implemented several measures:

• Created the Central Bank of the Argentine Republic.
• Increased state intervention in the economy and production.
• Established the National Meat Board, the Grain Regulatory Board, and regulatory bodies for the wine industry.
• Gave great impetus to oil exploitation.
• Developed infrastructure, including the 9 de Julio Avenue and the expansion of national roads.

Social Reforms

• Enacted laws regarding redundancy payments, holiday pay, and mandatory rest on Saturday afternoons.

Foreign Policy

• Developed extensive diplomatic activity.
• Hosted the Eucharistic Congress in Buenos Aires in 1934.
• Minister Saavedra Lamas received the Nobel Peace Prize in 1936 for his diplomatic efforts.
• Signed the Roca-Runciman Pact in London in 1933.

History of the Roca-Runciman Pact

Following the Ottawa Conference, the British adopted measures to encourage the importation of products from their colonies and dominions. Pressure from Argentine landowners for the government to restore trade with their largest buyer of beef and grain was enormous. This led the president to negotiate an agreement intended to secure advantages for the country.

Key Provisions

• Export Quotas: Argentina secured an import quota of no less than 390,000 tons of chilled meat. 85% of exports had to be carried out through foreign meatpacking plants, with the United Kingdom allowing a 15% share for Argentine-owned plants.
• Concessions: Argentina granted favorable terms to British companies.
• Debt Management: While the United Kingdom maintained control over payments, the agreement allowed Argentina to deduct a percentage of British purchases to cover foreign debt payments.