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...government two months ago, it appeared to be assuaging one of the deepest grievances of Peru's nationalists. As things turned out, the deal did not go nearly far enough for the country's military leaders, who used it as the prime pretext for overthrowing President Fernando Belaúnde Terry (TIME, Oct. 11). Last week, having peremptorily canceled Belaunde's agreement with IPC, Peru s new junta took a different approach. Rifle-toting infantrymen seized the disputed oilfields, a nearby refinery and other company property worth about $90 million...

Author: /time Magazine | Title: Business: GOVERNMENTS v. BUSINESS ABROAD | 10/18/1968 | See Source »

...Large a Role. The shadow of scandal and corruption began to fall across his government. Some officials, dubbed the "golden bureaucrats" by Belaúnde's critics, were revealed to be getting salaries as high as $3,000 a month -stunningly generous by Peruvian standards. It was shown that a navy troopship had made no less than four trips smuggling in contraband. Then came the affair that caused the coup against him by the disgruntled armed forces. Belaúnde had rashly promised to expropriate the U.S.-owned International Petroleum Co. "the very day I am inaugurated...

Author: /time Magazine | Title: Peru: Bela | 10/11/1968 | See Source »

...Three-Fourths. When the details of the deal were exposed, all Belaúnde's familiar opponents exploded in an outburst of nationalist indignation. So did the left wing of his own party and the army. The military leaders were furious that their counsel had not been sought in concluding a contract dealing with oil, a resource vital to the country's security. Two weeks ago, Belaúnde responded to the outcry by firing his Cabinet, making it the scapegoat for the affair. But he replaced it with one that the army considered even less competent...

Author: /time Magazine | Title: Peru: Bela | 10/11/1968 | See Source »

...arrival in Argentina (which, along with Bolivia, promptly offered him asylum), Belaúnde asserted that he had been ousted by a mere cuartelezo-a barracks revolt. The bulk of the armed forces, he believed, was not involved. But the first communiqué issued by the junta was signed by the chiefs of all three Peruvian military services. Within hours after Belaúnde's departure, General Juan Velasco Alvarado, the 58-year-old army commander and president of Peru's Joint Chiefs of Staff, took the oath as his successor before a candlelit crucifix in the presidential...

Author: /time Magazine | Title: Peru: Bela | 10/11/1968 | See Source »

...Congress was closed, and Velasco appointed a new Cabinet consisting entirely of military men. One of its first acts was to cancel the agreement that the Belaúnde government had reached with IPC. Asked when there would be new elections, General Velasco said nothing. Once more, a Latin American army had taken over a civilian regime. The bloodless coup in Peru brought to three-fourths the proportion of people on the continent living under military rule...

Author: /time Magazine | Title: Peru: Bela | 10/11/1968 | See Source »

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