By Gian Luca Gardini (auth.)
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Also, the United States refused to supply technologically sophisticated material. This left the armed forces in the two countries with obsolete equipment and common resentment toward the United States, and opened possibilities for bilateral cooperation. Given the high cost for the production of modern armaments, cooperative undertakings appeared an adequate form to guarantee supply to both armed forces.
The international oil crisis of 1973–1974 had shown the vulnerability of Brazil to energy supply shocks. Brazilian interest in alternative sources of energy supply became pressing, and hydroelectric plants in the Plata basin seemed an excellent solution. This consideration increased Brazilian determination to find a negotiated solution with Argentina. Moreover, the growing protectionism practiced by the United States and the European Economic Community (EEC) in the mid-to-late 1970s compelled Argentina and Brazil to redirect exports toward alternative markets, whether regional or more distant.
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 25 The return to power of Juan Domingo Perón, traditionally favorable to good relations with Brazil, engendered within Brazilian political circles new hopes of finding a solution to the Itaipú question. 16 However, Perón’s attitude was ambivalent and his diplomatic stance is emblematic of the period. Goodwill toward Brazil notwithstanding, Argentina’s diplomatic isolation had to be redressed. Significant attempts at smoother relations were intermingled with intense diplomatic action to reaffirm Argentine national interest in the subcontinent.