Fun and Games with Isabel

By Hunter R. Clark

Peron 's widow returns to the political limelight

When the Argentine military removed President Isabel Peron from office in a bloodless coup eight years ago, most of the country bid her good riddance. Inflation had reached astronomical levels, the country teetered on the brink of bankruptcy, and in the streets, violence, kidnaping and murder ruled. Last week, however, the irrepressible Isabel returned to the political limelight in only her second visit home since she went into self-imposed exile in Spain after the 1976 military coup. This time, Argentina welcomed the widow of Juan Peron as if she were a visiting head of state.

The visit came at the invitation of President Raul Alfonsin, who has been cultivating Isabel in an effort to improve his standing with the Peronist party. Alfonsin's Radical Civic Union Party scored a stunning upset victory over the Peronists in elections last October, marking the party's first defeat in a national election since the rise of Juan Peron in 1946. By forging a coalition among Radicals, conservatives and blue-collar workers, Alfonsin captured 52% of the vote, and his party gained control of the lower house, the Chamber of Deputies, in Congress. In the Senate, however, control was placed in the hands of seven wavering regional party Senators.

It was obvious from the moment she bounded onto the tarmac at a Buenos Aires airport that the years have taken none of the sass out of the indefatigable Isabel, who once earned a living as a cabaret dancer. Sporting a shiny brown leather coat, with a swatch of honey-blond hair falling over her right eye, she strode up to a group of Peronist party leaders, wagged an admonishing finger at them and declared, "Whoever misbehaves will get a spanking." Later, she continued jousting coquettishly with members of the Peronist National Council who had gathered in her hotel suite. "I'm not going to kiss the men," she giggled. "Beards make me itch."

Outside her hotel, throngs of supporters toting pictures of her late husband became embroiled in a rock-throwing clash with police. Order was restored only when Isabel appeared on her hotel balcony to give a majestic wave to her admirers.

Next day, before a national television audience, Isabel and Alfonsin exchanged effusive compliments, then met for 35 minutes behind closed doors. When they emerged, Alfonsin remarked, "We don't have important differences. All we have to discuss is tactics." Said Isabel: "You know, Mr. President, I'm at your command." Replied Alfonsin: "It's mutual."

Whether this alliance of traditional adversaries can produce solutions to Argentina's myriad problems remains to be seen. But one diplomat in Buenos Aires speaks of Alfonsin as dealing with the country's economic difficulties in "a measured, calculated way." At the top of the list is hyperinflation: the monthly cost of living jumped by 18.5% in April, which is equal to an annual rate of 560.2%. In most countries, newspaper headlines and gossip focus on crime or sports; in Argentina, there is a morbid fascination with the economy. Even during the Falkland Islands war with Britain, the major topic of conversation continued to be the pocketbook. People are also intensely interested in talking about Argentina's $43.6 billion foreign debt, which represents about 75% of last year's gross domestic product.

There will be considerable tension on June 30, the date by which the government must come up with $1.6 billion in foreign-debt payments. Quips Maximo Gainza, director of the right-wing La Prensa (circ. 50,000): "Our external debt is becoming an eternal debt."

Alfonsin has yet to produce his long-promised strategy for curbing inflation or for negotiating with the International Monetary Fund a restructuring of the country's foreign loan obligations (although last week Argentina, Brazil, Colombia and Mexico were reported to be discussing in general terms various proposals for repaying their debts after a grace period that has yet to be determined). Instead, his administration seemed at first to neglect economic concerns in order to concentrate on human rights and labor issues. One of Alfonsin's first official acts was to sign decrees accusing the three past military juntas of human rights abuses that led to the deaths of at least 10,000 Argentines. His next step was to try to bring democratic procedures to the omnipotent labor unions that are the Peronists' power base. Explains Edgardo Catterberg, Alfonsin's adviser on public opinion: "If you want to create a democratic society, you have to have democratic unions." The attempt to proceed against the juntas has produced scant results beyond the detention of a few officers, although a newly established military tribunal has until the end of June to take action. And a bill that would have required democratic elections to fill union leadership positions was defeated in the Senate last March.

Thus most observers regard the dalliance with Isabel as a good move for Alfonsin. "Alfonsin can't lose," explains a senior diplomat in Buenos Aires. "If the unity approach works, he will have six to nine months of discussion rather than combat. If it doesn't work out, he will have an advantage because it could serve to split the opposition even further, and he can blame future failures on the Peronists."

Isabel, who is expected to return to Madrid early in June, also stands to come out ahead. The Senate last week passed a bill restoring her extensive real estate holdings and her good name. Moreover, she has been accorded the active political role she obviously relishes. Says another senior diplomat: "She can now perceive that she has a historical place in the scheme of things, something beyond her wildest dreams. On the substantive side, she may genuinely feel that she can help out as the self-perceived fixer." Observes an Argentine banker: "From her point of view, it's better to have people paying attention than simply to be an ex-dancer living in Spain. And who knows? Maybe some day we'll all have to say thanks to her." --By Hunter R. Clark. Reported by Gavin Scott/Buenos Aires

With reporting by Gavin Scott