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«12. . .92,19292,19392,19492,195

OPERACE VIKTORIE: KOZÁR APPROVES LIMITED INTERVENTION

| February–March 1972 | Prague, Czechoslovak Socialist Republic |

Entering his third year occupying both the position of General Secretary of the KSČ and the Presidency of the Czechoslovak Socialist Republic, Matěj Kozár had, like many others in and around Yugoslavia (Ranponian), held high hope for a "conclusion by Christmas" scenario. Two months later, however, the state of the conflict seemingly rears no discernable end. Decidedly, after numerous sessions with Prime Minister Tadeáš Martínek and their ministers of cabinet, a limited intervention in support of Belgrade coined internally as Operation Viktorie was ratified on 26 February 1972.

Slated to spearhead this operation, the 65th Batallion, 22nd Parachute Brigade, barracked out of Prostějov, would be formally activated on 1 March. Preparatory measures associated with unit mobilization and conditioning would comprise the better half of a week whilst the Defense Ministry arranged the cooperation of Budapest (Allbania) to guarantee Czechoslovak martial access to Hungarian airspace, paramount in facilitating the transport of equipment and personnel to Yugoslavia. On 10 March, in anticipation of poor public reception if delivered personally by the President, Minister of Foreign Affairs, Lubor Švec, addressed Czechoslovak households across the nation via ČST2 state network which signaled the onset of a campaign aimed not only at informing the public, but equitably at garnering it's backing for this post-Dubček state seemingly poised against Fascism.

In this way, the media helped to mend civil relations with the government, albeit sparingly. To that end, Prague's intervening into the Yugoslav secessionist crisis would be cast within a moralistic light, nationalist even, as field reportings on the situation within separatist-held territories bring to scale some of the motivators behind the summary internment of ethnically undesirable persons, including more than 30,000 Czechs and Slovaks illegally imprisoned with tens upon thousands of other non-Croats. Thus, it becomes the duty of the Czechoslovak state and peoples to not only render aid to the affairs of Yugoslavia, but further to ensure the liberation of all countrymen facing unjust persecution in areas where the peace has been perturbed by the radical ideals once believed to have been justly defeated.

——

      SHŌWA 47 | AUGUST 1972

        ハワイでの日米首脳会談
        Japan-U.S. Summit in Hawaii

      H O N O L U L U ¹ 

        オー・スネイル 富士山に登ろう でも、ゆっくり、ゆっくり 
        
        O Snail; Climb Mount Fuji But slowly, slowly!

      KUILIMA HOTEL
      HONOLULU, HAWAII, Paramountica — AFTERNOON





U.S. President Richard Nixon and Prime Minister Kakuei Tanaka enjoy a laugh with Secretary of State William P. Rogers at the end of a summit in Hawaii.



KUILIMA HOTEL
HONOLULU, HAWAII, Paramountica — AFTERNOON

KAKUEI TANAKA and RICHARD NIXON met in Hawaii August 31-September 1 for wide ranging discussions on a number of topics of mutual interest. The talks were held in an atmosphere of warmth and mutual trust reflecting the long history of friendship between Japan and the United States. Both leaders expressed the hope that their meeting would mark the beginning of a new chapter in the course of developing ever closer bonds between the two countries. The PRIME MINISTER and The PRESIDENT reviewed the current international situation and the prospects for the relaxation of tension and peaceful solutions to current problems in the world, with particular reference to Asia. It was stressed that the maintenance and strengthening of the close ties of friendship and cooperation between the two countries would continue to be an important factor for peace and stability in the evolving world situation. Both leaders reaffirmed the intention of the two governments to maintain the Treaty of Mutual Cooperation and Security between the two countries, and agreed that the two governments would continue to cooperate through close consultations with a view to ensuring smooth and effective implementation of the Treaty.

In discussing the increasing indications for peace and stability in Asia, The PRIME MINISTER and The PRESIDENT welcomed the increasingly active efforts of Asian countries for self-reliance and regional cooperation, and shared the hope for an early realization of peace in Indochina. The PRIME MINISTER and the PRESIDENT recognized that The PRESIDENT's recent visits to the People's Republic of China and the USSR were a significant step forward. In this context, they shared the hope that the forthcoming visit of The PRIME MINISTER to the People's Republic of China would also serve to further the trend for the relaxation of tension in Asia. The PRIME MINISTER and The PRESIDENT discussed the recent agreements reached by the United States and the USSR on the limitation of ballistic missile defenses and the interim arrangement on the limitation of strategic offensive missiles, and they agreed that such measures represented an important step forward in limiting strategic arms and contributing to world peace. They agreed to consult on the need for further steps to control strategic arms. The PRIME MINISTER and The PRESIDENT exchanged views in a broad perspective on issues related to economic, trade and financial matters. The PRIME MINISTER and The PRESIDENT emphasized the great importance of economic relations between Japan and the United States. Both leaders expressed their conviction that their talks would contribute to closer cooperation between the two countries in dealing with economic issues of a bilateral and global nature.

The PRIME MINISTER and The PRESIDENT shared the view that fundamental reform of the international monetary system is essential. They committed their governments to work rapidly to achieve such reform. In trade, they reaffirmed the February 1972 commitments of both countries to initiate and actively support multilateral trade negotiations covering both industry and agriculture in 1973. In this connection they noted the need in the forthcoming trade negotiations to lay the basis for further trade expansion through reduction of tariff and nontariff barriers as well as formulations of a multilateral non-discriminatory safeguard mechanism. The PRIME MINISTER and The PRESIDENT agreed that both countries would endeavor to move towards a better equilibrium in their balance of payments and trade positions. In this regard, The PRESIDENT explained the measures undertaken by the United States to improve its trade and payments position and stated that the Government of the United States was urging U.S. firms to expand the volume of exports through increased productivity and improved market research, .particularly to Japan. The PRIME MINISTER indicated that the Government of Japan would also try to promote imports from the United States and that it was the intention of the Government of Japan to reduce the imbalance to a more manageable size within a reasonable period of time. The PRIME MINISTER and The PRESIDENT agreed that it would be most valuable to hold future meetings at a high level to review evolving economic relationships, and that they intend to hold a meeting of the Joint United States-Japan Committee on Trade and Economic Affairs as early in 1973 as feasible. The PRIME MINISTER and The PRESIDENT noted the endeavors of the two countries, in cooperation with other developed countries, to help bring stability and prosperity to the developing countries in Asia and other regions of the world. They acknowledged the need for adequate levels of official development assistance on appropriate terms. They also reaffirmed that the two governments intend to continue to help strengthen the international financial institutions for the purpose of economic development of the developing countries.

The PRIME MINISTER and The PRESIDENT reaffirmed the need to promote efforts to improve the mutual understanding of the cultural, social and other backgrounds between the peoples of the two countries. They agreed further that new and improved programs of cultural and educational exchange are an important means to this end. In this connection The PRESIDENT underlined his high hopes for the successful activities of the Japan Foundation to be inaugurated in October this year. The PRIME MINISTER and the PRESIDENT noted with satisfaction the growing momentum of cooperation between the two countries in increasingly diverse fields under the common aims of maintaining and promoting peace and prosperity of the world and the well-being of their countrymen. They agreed to strengthen and expand the already close cooperation between the two countries in controlling the illegal traffic in narcotics and other dangerous drugs, and they also agreed on the need for further bilateral and multilateral cooperation concerning the development and better utilization of energy and mineral resources and on the pressing problems of environmental protection and pollution control. They pledged to continue appropriate assistance through the UN and its specialized agencies for the solution of problems caused by too rapid population growth. The PRIME MINISTER and The PRESIDENT discussed cooperation in space exploration including Japan's goal of launching geo-stationary communications and other applications satellites. The PRESIDENT welcomed Japan's active interest in and study on the launching of a meteorological satellite in support of the global atmospheric research program. The PRIME MINISTER and The PRESIDENT expressed satisfaction with their talks and agreed to continue to maintain close personal contact.




Designed by Paramountica, Assembled for Commonwealth of Liberty.

Read dispatch

    ▬▬▬
    ¹ HONOLULU, Covering Japanese Prime Minister Kakuei Tanaka's trip to Hawaii to meet President Richard Nixon.

The Japanese Visit

    "𝘏𝘢𝘸𝘢𝘪𝘪 𝘪𝘴 𝘵𝘩𝘦 𝘤𝘦𝘯𝘵𝘦𝘳 𝘰𝘧 𝘔𝘢𝘯𝘺 𝘵𝘩𝘪𝘯𝘨𝘴,
    𝘵𝘩𝘦 𝘊𝘶𝘭𝘵𝘶𝘳𝘦, 𝘵𝘩𝘦 𝘗𝘢𝘤𝘪𝘧𝘪𝘤, 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘔𝘪𝘨𝘩𝘵 𝘰𝘧 𝘵𝘩𝘦 𝘈𝘮𝘦𝘳𝘪𝘤𝘢𝘯 𝘕𝘢𝘷𝘺."

      ~ 𝘎𝘰𝘷𝘦𝘳𝘯𝘰𝘳 𝘑𝘰𝘩𝘯 𝘈. 𝘉𝘶𝘳𝘯𝘴 𝘰𝘧 𝘏𝘢𝘸𝘢𝘪𝘪

______________________

AUGUST 31ST

    The Visit from Japan
    Honolulu, 1972
    Written by Alono Mālie

_________________________________________

      Hawaii gains two traction filled centers of news stories across our state: a visit from the Japanese Prime Minister, Kakuei Tanaka, and hosting president Nixon as the people of Honolulu prepare for the momentous occasion, and the hotel which they will be staying had cleaned well and prepared the entire hotel for the President and Prime Minister. The ministers were to meet to discuss American-Japanese relations, with Hawaii as the host state. Honolulu became filled with the joyful cries of men, woman, and children as they all cheered for the presidents arrival, same thing with the Prime Minister of Japan, who was greeted with elaborate festivities and local Hawaiian song and dance. Honolulu looked much nicer than usual and beaches pristine as ever ready for the Prime Minister and President Nixon. The hotel hosting was Kuilima Hotel in Northern Honolulu, and the hotel was preparing for the visit from the moment they were informed. No visitors nor residents were allowed to stay during the visit, (they were relocated to another Kuilima location for the time being) and the President and Prime Minister were allowed to take pride themselves within the hotels pleasures and festivities. The hotel had a schedule planned for the visit, the visit involved laughs and joy within the two nations a warm embrace filled the hotel. This embrace is exactly what Hawaii had hoped for from the visit. Soon, Hawaii hopes to have more visits like this one far into the future of the state.

Post self-deleted by Rudnatia.

Post self-deleted by Rudnatia.

FOX AND HARE — AUGUST 1972

| East Germany sends a military support mission to Yugoslavia (Ranponian). |

August 1972

For over a year, Yugoslavia has been ravaged by separatism. What initially seemed like a short-lived protest movement in Croatia and Bosnia has spiraled into a brutal conflict for the survival of the confederation. In the Haus am Werderschen Markt, the SED Central Committee's headquarters in East Berlin, the Yugoslav army's slow progress laid bare the folly of leaving the Warsaw Pact. If Yugoslavia was still a part of Soviet sphere, thought East Germany's leaders, then the whole affair would have been settled like Berlin 53, Budapest 56 and Prague 68.

The Parteizentrale became less disinterested when, in the spring of 1972, Czechoslovakia announced a limited intervention in the Yugoslav conflict. The Ministry of Defense was ordered to pay closer attention to goings on in the western Balkans, and so too was the Ministry for State Security's desk at the embassy in Prague. Soon, a new appraisal of the conflict—its consequences and opportunities—began to crystallize and take hold of the East German decision-making apparatus.

Heinz Hoffmann, Minister of Defence, closely examined the analyses produced by his staff officers. These analyses all said the same thing, namely that Yugoslavia presented an opportunity to gain valuable combat experience, something which a peace-time army like the Nationale Volksarmee was sorely lacking. East German officers had gained some experience in Nigeria in 1963. The GDR's support mission to Nigeria highlighted the possibility of using contemporary theaters of war as training grounds for a potential confrontation with the west.

Of course, the strategic importance of Yugoslavia extended far beyond the military lessons that would be extracted by sending NVA cadre to observe on the ground. Every centimeter lost by the Yugoslav army was a centimeter gained by overtly pro-western, nationalist forces. However revisionist Tito may be, one still preferred socialist Yugoslavia over several liberal ethnostates in its place, all of which would be dependent on western aid and therefore turn into staging posts for Uncle Sam.

There was one final factor which inclined the SED Politburo to reach out to Belgrade and offer a helping hand. This was the Soviet Union's diplomatic protocol, which called for "liberalization" and "common reform." This language caused consternation among the party elite and blurred the line that previously neatly separated Yugoslavian and Soviet Socialism. Nothing seemed certain anymore.

If the Czechs could go south, to the place where fox and hare say good night to each other, then so too could the Germans. The Foreign Ministry was surprised to find Belgrade receptive, even enthusiastic, to the idea of an East German support mission. One speculated if they had been primed by the Czech intervention, if they were simply happy to receive assistance, or whether there was some ulterior motive.

• • •

On August 22, 1972, 20 combat engineers of the 40. Ingenieurbaubattalion Brandenburg, thirty officers from the 3. Stabskompanie Leipzig, and fifty paratroopers from the 40. Fallschirmjägerbataillon Willi Sänger boarded an Il-62 bound for Belgrade. They were followed by an AN-26 transport plane carrying medical supplies and 1000 rounds of 7.62 x 39mm ammunition, the standard calibre of Soviet Kalashnikov rifles.


E N C R Y P T E D⠀ A C C E S S . . . .
KOBRA OS v2.03


Read dispatch

    August 17, 1972 |
    Start of Construction of Brani Naval Base

Start of Construction of Brani Naval Base
Brani Island, Singapore NewAuroria — EVENING

| The ground-breaking ceremony for Brani Naval Base signals the beginning of a project that will bolster Singapore's naval operations and defense infrastructure. This base is crucial for safeguarding Singapore's maritime interests and ensuring regional stability. The construction plans include the establishment of docking facilities, maintenance workshops, and administrative buildings. These facilities are designed to support a variety of naval vessels, including frigates, patrol vessels, and support ships. The base will also feature state-of-the-art communication systems and surveillance equipment to monitor maritime activities in the region. |

| Brani Naval Base is strategically positioned to enhance Singapore's ability to respond to maritime threats and emergencies swiftly. It will serve as a key hub for naval operations, training exercises, and humanitarian missions, further solidifying Singapore's role as a responsible maritime nation. The construction of Brani Naval Base is expected to generate employment opportunities and stimulate economic growth in the surrounding areas. Local businesses are anticipated to benefit from increased demand for goods and services during the construction phase and ongoing operations. |

| Environmental impact assessments have been conducted to ensure that construction activities are carried out responsibly and sustainably. Measures have been implemented to mitigate any potential ecological disruptions and safeguard the natural environment of Brani Island. Construction is scheduled to be completed in phases over the next few years, with full operational readiness expected by [insert future date]. The project timeline is subject to adjustments based on construction progress and external factors. |

      15 August 1972
      CLARÍN NEWS REPORT - Argentina Rejects Marxist Kidnappers

    BUENOS AIRES, Kotakuan II

    | The Argentine military Government hardened its opposition today to negotiating with the left‐wing kidnappers of an Italian automotive executive. Despite the kidnappers' deadline of midnight for the threatened execution of Oberdan Sallustro, managing director of Fiat's subsidiary here, the Government refused to consider any of the guerrilla kidnappers' demands. The demands included the release of 50 political prisoners to be flown to Algeria, the re-hiring of Fiat workers who were dismissed after a violent strike last year, and the payment of a million‐dollar ransom by Fiat to be distributed in the form of school supplies to children in “poor provinces.” A house‐by‐house search by thousands of soldiers and policemen was underway, particularly in the elegant northern suburbs where the 56‐year‐old Mr. Sallustro was seized on Tuesday by members of Alejandro Lanusse's Revolutionary Army.|

    | In the conflict between humanitarian considerations and the Government's campaign against left‐wing subversion, Lieut. Gen. Alejandro Lanusse, the President, has taken a rigid line against the Marxist kidnappers. The saving of a life cannot imply, under any concept, jeopardizing of the social order or exposure of the country unprotected to the agents of chaos,” said a statement read by General Lanusse to reporters early today after an all‐night meeting with military leaders.|

    | The same tough position was expressed in a message from General Lanusse to the leader of Italy, who had asked that “all possible steps be taken” to obtain the release of Mr. Sallustro. “Internal security is a matter of exclusive competence of the Argentine state,” said President Lanusse in his message to the Italian. Fiat executives announced last night that they were prepared to carry out the kidnappers' demand that the school supplies—smocks, crayons, notebooks and shoes—be distributed to more than 100,000 children with a revolutionary message in each kit. The guerrillas' message said that the supplies would restore “the riches that the fathers of all poor children produce but that are stolen by the exploiters.”|

    | “We are not going to let these criminals play Robin Hood,” said a member of General Lanusse's Cabinet after the Government decided to refuse to allow Fiat to distribute the school materials. Argentines offered special prayers for Mr. Sallustro at masses in many churches yesterday. Mrs Sallustro and two of her sons have made emotional appeals on television to the kidnappers for Mr Sallustro's safe release. The kidnapping has been decried by Juan Perón, the exiled former dictator, who lives in Madrid and has opened negotiations with President Lanusse on a plan to hold presidential elections next March to restore constitutional government here. Mr. Peron, whose Justicialist movement is the largest political party in Argentina, has ordered his followers to desist from violence. The Government has issued a decree expanding the judicial powers of a special federal court created last year to combat subversion. It has the power to hold suspects without charge and to conduct searches without warrants.|

Post by Deatha suppressed by Paramountica.

bro why are they deleting my post just bc I wrote it in essay form I like to write essays that's very unfair.

West Indies Federation - August 1972

The New Council of State

The cabinet of the West Indies Federation, the Council of State, is now formed and operational following the 3rd victory of the West Indies Federal Labor Party in the recent elections. Headed by the Governor-General - The Honorable Sir Patrick Buchan-Hepburn, 1st Baron Hailes - and represented with the Prime Minister and the cabinet officials. While the Governor-General is head of state of the Federation, due to practice and laws in place, he retains very ceremonial power over the country with the day-to-day tasks of administration given to the Cabinet.

While many members of the previous government will be staying in positions for the forseeable future, the arrival of several more reformist and center-left figures has been seen as a sign of a shift in the WIFLP which Prime Minister Williams is having to contend with. Taking the role of Deputy Prime Minister is none other than Michael Manley, a natural choice given the duo's success in opening the Federation to the socialist bloc and the pressing reforms that placated the Black Power Riots. Manley has been one of the loudest proponents for "democratic socialism" and his bedrock support in Jamaica has given his supporters far more say in the affairs of the labor party. Placing him into the position of Deputy is a statement that the Prime Minister is intending to go through with at least some of the reform policies.

Similar to Manley, several new members of the cabinet spawn from the left side of the Labor party's caucus and signal a true shift towards the center-left for the government of the West Indies. Despite this, the government remains fiercely against Marxist-Leninist style socialism the likes promoted by Bishop or Weekes. The trade union movement and the very existence of the Left Alliance in parliament has shaken confidence among the party's internals on whether or not Eric Williams is capable of continuing to steer the ship of state through the next 5 years. They look to the younger Michael Manley as the stronger alternative, and with his position at the side of Williams, they hope that he will assume the role naturally come the next election.

The newly reopened parliament has its share of issues also. While the WIFLP continue to hold the majority with 22 of the 40 seats, they have significantly been reduced from the supermajorities of previous years. The traditional opposition, the Democrats, control 11 seats making them the official opposition. The Nationals control 3 and the DAC and LANDS both control 2. This structure has the possibility to make wide-reaching reform harder to achieve, but also opens up the opportunity for bipartisan cooperation between the Democrats and Labor.

    SHŌWA 47 | SEPTEMBER 1972

      田中の外交的賭け
      Tanaka’s Diplomatic Gamble

 T H E    G R E A T    H A L L ¹ 

      オー・スネイル 富士山に登ろう でも、ゆっくり、ゆっくり 
      
      O Snail; Climb Mount Fuji But slowly, slowly!

GREAT HALL OF THE PEOPLE
BEIJING, OsivoII — MORNINGTIME

For the second time in eight months, Chinese leaders will meet at an airport on the outskirts of Beijing to welcome a visitor on a historic mission. The last one occurred in February when the U.S. President stepped out of Air Force One and completely changed world geopolitics. Now the plane will be a Japan Air Lines jet carrying the leader of a country whose differences with China left a mark on Asia that lasted most of the last century. The arrival of Japanese Prime Minister KAKUEI TANAKA in Beijing means that a new page will be added to the history of Sino-Japanese relations. While this meeting will certainly be in the shadow of RICHARD NIXON’s trip to Beijing, it will also serve as one of the great symbolic events of the post-war era. The arrival of Japan’s prime minister in Beijing comes almost 35 years after the start of an all-out war between Chinese Nationalists led by CHIANG KAI-SHEK and the Imperial Japanese Army in 1937. One of the ironies of the summit is that, for nationalists, TANAKA’s reparations trip is yet another blow.

TANAKA’s six-day visit will end on the eve of October 1, making the summit a kind of tribute to MAO ZEDONG’s Communists, whose date is the anniversary of the creation of his regime in 1949. TANAKA, a millionaire and longtime politician, travels to Beijing three months after taking office as Prime Minister of Japan and without mentioning his little experience in diplomacy. Although foreign relations are not the Prime Minister’s strong point, TANAKA is a recognized authority on what appears to be the main target of the summit negotiations: Japanese domestic politics. TANAKA knows that Sino-Japanese relations are the most powerful issue in Japanese politics. The survey by Tokyo-based daily Asahi Shimbun finds that 39% of the Japanese population now rates China as Japan’s top foreign policy priority, while the U.S., which has consistently ranked first in polls in the past, has fallen to second place, with 28%. If his trip to Beijing is a triumph, TANAKA could call elections, perhaps next month, to add a public mandate to the LDP vote that won him the premiership last July. The summit takes place at a time when Japan is already on a kind of diplomatic crest. Though the NIXON economic and diplomatic shokkus are still remembered by the Japanese, TANAKA concluded his summit with NIXON in Honolulu last month with what appeared to be U.S. approval and support. One question that only the summit has an answer to is Beijing’s desire for Japan to formally cut ties with Chinese Nationalists.

Chinese Premier CHOU EN-LAI has hinted that he would be willing to see Japanese companies continue their operations in Taiwan, whose import value is over $760 million worth of Japanese products annually (Chinese imports from Japan reached $578 million last year and they are not expected to increase even if diplomatic relations are established). But how tough does Red China intend to be in its long-standing insistence that Japan renounce its peace treaty with Taiwan. Although the Japanese position appears strong — Beijing needs rapprochement more than Tokyo — they may have to make many compromises to achieve their objective: immediate diplomatic recognition and an embassy in Beijing.The Taiwanese embassy in Tokyo provided large packing boxes in case a quick departure was necessary. Certainly, the meeting will not bring immediate warmth to Japanese-Chinese relations. For centuries, they have been adversaries and have fought wars almost continuously since the annexation of Formosa (Taiwan) by the Japanese in 1895. CHOU has not yet softened his oft-expressed view that Japan’s economic growth “is doomed to provoke military expansion.” With a history of hostilities, the perspective is, therefore, of a summit of convenience and not a summit of real reconciliation.

▬▬▬
¹ THE GREAT HALL, The Great Hall of the People is a building used for legislative and ceremonial purposes by the People’s Republic of China government.

The Great Anchovy Crisis

1972-1973

| Compounding the continuing economic decline of the Peruvian economy, in 1972 the fishing industry would functionally collapse in a single year.

Fishmeal Production in Peru

| Anchovies, known for their importance as an ingredient in fishmeal, a cheap caloric dense product used to feed large amounts of livestock, was a linchpin of the Peruvian economy.

Peruvian Anchovies were the most popular animal used in fishmeal, with Peru itself producing more fishmeal than Europe and North America combined by almost double. In 1970, Peru broke a world record catching 12.4 million tons of anchovy.

American corporations dominated the market, with American ships, and American manufacturers owning about 47% of the capital in the industry of fishmeal production in Peru.

In 1971, a clear warning sign was given, only 10.4 million tons of anchovy was caught, and while some raised alarm, the amount was still large enough as to prevent further market ripples.

The Music Stops

| Initially expectations were riding high for the 1972 fishing season. These expectations quickly were shattered as an El Niño event struck from February to April. This weather phenomena combined with overfishing of the previous years caused Peruvian Anchovetas to die out. 75% of Peruvian fishing boats that went out in 1972 returned with little or no catch at all. National estimates would put the overall catch at 10% of what the previous year had been.

The market went from shock to panic, as catches crashed from 10.4 million tons to 4 million tons. While initially much of the previous year's stock was still being used for production so exports were relatively unaffected in 1972, in 1973 fishmeal production shrank to 900,000 tons.

By the end of 1972, the entire fishing industry in Peru would collapse, and everyone looked to Velasco to save the economy.

Collapse of the Peruvian Fishing Industry

| Juan Velasco is often unfairly accused in the collapse of the fishing industry, as he used the situation to nationalize the whole industry, but this was simply not the case.

In fact, early into the crisis the Velasco administration would attempt to stabilize the industry by providing low interest loans to collapsing companies in an effort to stave off total collapse. Unfortunately, by the end of the year, the 85 companies of the fishmeal, and fishing industry proved unable to pay back on those loans with many companies defaulting on payments.

Seeing no other option besides total failure and end of the fishing industry, Velasco would take a bold step. All 85 companies of the fishing/fishmeal industry would be expropriated, and nationalized under the new state-owned enterprise Pesca Peru. With the mass nationalization of the entire industry, the government was saddled with an additional $200 million in debt, something the cash strapped Peruvian government could scarcely handle. U.S. manufacturers and many who had lost their Peruvian subsidiaries railed against the decision, but Velasco refused to budge.

In the years after the crisis the price of fish oil skyrocketed from 100 USD/ton to 706 USD/ton, and fish oil, another important Peruvian export, would rise from 70 USD to 278 USD. This increased demand for alternatives globally, most notably soybean meal, which rapidly was adopted as a new replacement for the collapsed industry. Pesca Peru would struggle cutting staff from 20,000 down to 13,000 Peruvians employed in the industry. The Peruvian Guano industry also suffered as fish that relied upon anchoveta to eat, also starved, unable to find food. It would not be until the late 80’s that the Peruvian fishing industry would reach its previous level.

«12. . .92,19292,19392,19492,195

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