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By Mao Zedong, Stuart Schram

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Internal subversion together with the alarming deterioration of social and economic conditions diminished the country’s capacity of external projection. At the same time, the foreign policy adopted by the Geisel government in Brazil to face the changes in the international scenario led to an increase in the Argentine feeling of encirclement and isolation. The world economic crisis that followed the oil prices shock of 1973–1974 largely influenced Brazilian foreign policy. The crisis not only contributed to reorient Brazilian economic interests toward the region but significantly altered Brazil’s self-perception and the conception of its international role.

22 Alternatively, a more neutral interpretation regarded the pact as an endeavor to replicate the alleged positive achievements of the Plata Basin Treaty. 24 Moreover, regulation of the use of the Amazon Basin in accordance with the principles defended by Brazil would have constituted a solid legal and political precedent. Its F R O M A M B I VA L EN C E T O S O L I D A R I T Y 27 large acceptance in South America by the Amazon community would have had an impact on any negotiated solution to the Plata Basin dispute.

20 The need of a quick solution for water resources prompted Brazil to offer Argentina a generous technical solution to the dispute regarding the Corpus/Itaipú Dams. When the government of Isabel Perón turned down the offer, Brazilian Foreign Minister Azeredo da Silveira refused further negotiations with Palacio San Martín, 21 and decided to play for time and present Argentina with a fait accompli in Itaipú. Energy requirements, balance of payment difficulties, and the need to expand export markets also triggered a shift in Brazilian diplomatic style.

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