I think it is agreat step forwards for both nations, once a boundary has been set it relieves tensions. There will be no naval race between our two nations. Of course there is no limit on guns or size but given the time it takes to build new ships that is not a real problem, Chile can't get more than two 17" armed BB much before 1942.
Anyway here is the news...
Noticias Argentinas
22 July
In the Chamber of Deputies today a vote was taken on the new government foreign policy decision over Paraguay. In an unprecedented move the Democratic Union Deputies in the Coalition with the United Social Workers Party declared the chance to vote on the move which most DU Deputies reject. After three days of hard bargaining and a late midnight session last night the decision was an approval of the new policy. Votes were 76% in favour, 21% against with 3% abstaining. The decision now must go to the Senate for final approval.
24 July
After a long six hour session yesterday the new foreign policy decision was approved by the Senate with only a 2% majority in votes. This afternoon the Ministry of Foreign Affairs publicly announced its intention to declare the policy of non-intervention in Paraguay except for administrating aid from the border region. No shipments of arms are to be allowed and all illegal arms will be confiscated by the Army. The Paraguayan Anti-Government Front was declared by the Ministry of Security to be an illegal organisation and this evening police made a raid on the headquarters of this organisation.
25 July
Luis Contreras, head of the Paraguayan Anti-Government Front (UPAF) has today been arrested for the illegal carrying of arms. At the UPAF headquarters police confirmed that rifles, explosives and around 500,000 Pesos had been recovered and several arrests made.
In Naval news the first home-built P Class submarine was commissioned today as the Santiago del Estero. She will begin sea trials next week after completing her builder's trials last week.
27 July
Luis Contreras, head of the Paraguayan Anti-Government Front (UPAF) has been released without bail and the UPAF headquarters have moved to Paraguay. The recovered arms have not been handed over but some 300,000 Pesos have been. This evening Luis Contreras went across into Paraguay.
16 Aug
The destroyer Contra Almirante Barbera was launched at AFNE at Bahia Blanca today amid much celebration and speech making.
22 Aug
The destroyer Simon Bolivar was launched today at the Astillero Nav. yard at Puerto Belgrano. Dignitaries included the Defence Minister and commander of the first Destroyer Squadron Contra Almirante Gomez.
In other maritime news the new 61,000 ton super-liner La Argentina for the Compania Argentina de Marinanavegacion Rividavia has been laid down in Atlantis. The keel-lying ceremony in keeping with company traditions was very low-key and only ten VIPs attended. Atlantean Prime Minister Crassius Dominia hammed in the first rivet.
24 Aug
The seventh Mendoza Class destroyer Hercules was launched at the Tandanor yard this morning. Painted light grey she offered the press excellent picture opportunities.
Sept 6
FMA announced that is buying the production rights and machine tools of the Roth-Packard series of radial engines. Roth-Packard has decided to concentrate on V-12 engines for the marine engine industry. FMA intends to produce and market the 235hp Roth 7 cylinder single row radial engine, 700hp Roth-Packard 14 cylinder double radial engine and the 650hp Roth 9 cylinder single row radial. They will be known as the 235hp FMA RR-7-1, 700hp FMA RR-14-2 and the 650hp RR-9-1 respectively. It is rumoured the 700hp FMA RR-14-2 will be fitted to the I-100 Barron fighter to keep up with the newer competition as a stop-gap until more modern fighters are purchased.
Sept 15
After 27 years of hard service, including sustaining severe damage during the 1921 War the old battlecruiser Santísima Trinidad has finally been decommissioned. She has sailed to Comodoro Rividavia where she will dock at the Tandanor yard to commence rebuilding for Siam. No decision has yet been made on her replacement, the likely 12in gunned Project 111 seemed too expensive and the Project 110 with 15in guns too big and politically undesirable.
Sept 20
The two latest Guardia Class ships completed, Constitucion and Prefecto Pique, have been commissioned into service today after a three-hour long ceremony attended by the Defence Minister.
Sept 23
In Germany the Head of the Argentine Naval Commission in Europe Admiral Galindez witnessed the completion of the Light Cruiser General Belgrano at Cuxhaven. He made a short hour long speech, here is an extract of the speech, "I was impressed by these ships when I first saw the plans and witnessed the keel-laying but now today standing beside the massive completed hull it is clear these cruisers have no equal in South American waters. These sturdy German built ships will hopefully maintain the peace in our region where there is sadly so much war and suffering." The Belgrano will now begin six months of trials and exercises, three months in German waters and another three in home waters as part of the First Cruiser Squadron. Meanwhile in Atlantis the four second-hand cruisers are now on post refit trials.