Figure 1.--The 36 German sailors killed on 'Graf Spee' in the Battle of the River Plate were buried in the German Cemetry in Montivedo with full miltary honors. This is the Uuguayan naval guard of honor with some of their children at the burial ceremonies.

Uruguay is a small South American Republic wedged between Argentina and Brazil. The Great Depression following the Wall Street Crash (1929) was epecually severe for countries like Uruguay that were dependent of exporting. Prices of agricultural products plunged. Britain, traditionally the major purchaser of Uruguayan exports, began restricting purchases of meat (1932). Uruguay's currency was devalued, and unemployment grew rapidly. In part because of the drift toward war was increasing demand for Uruguyann propducts (meat, leather, and wool) led to an improving economy. which like nost other countries declred itself neutral. As in World War I, theconomics of the war largely caused the Latin American cuuntries to support the Allies. Exports were very importnt to the econimies of the region. When Hitler and Stalin launched the War (September 1939). Britain cut off trade with Germany. Thus if Uruguay wantedt to export which it had to do, it was to Britain and America--an easy chioce as American and Britin were much larger markets. While declaring Uruguay neutral, newly elected president Alfredo Baldomir, leading the Colorado Party, was to support the Allied cause, but as a neutral base. He is cresited with gradually moving Uruguay toward the Allied cause. Great Britain retained considerable influence with the Baldomir regime The British Ambassador, impressively namged Sir Eugen Millington-Drake payed an imprtant role (1934-41). It is unclear to what extent President Baldomir policies were determined by ecpnnomic realities are an assessment of the character of the NAZI regime. An attempt by Uruguayan NAZIs led by Arnulf Fuhrmann, presudent of the Centro Cultural Germano-Uruguayo, may have been a factor. Argentine police arrested Fuhrmann and other NAZIs at Conordia. He was who was the prime anti-Semitic agitator of South America (August 12, 1940). [White] Baldomir was a military man and ued is election primatily to typical Latin Anerican caudillo, Gabriel Terra. Before war was declared, OKM dispatched one of its pocket battleship Graf Spee to the South Atlantic. One Britain declared war and persisted even after the defeat of Poland, OKM orderd Graf Spee's captain, Hans Langsdorff, to commence commrce raiding (September 26, 1939). Graf Spee conducted commerce raiding in the vast, poorly patrolled resches of the South Atlantic, venturing into the Indian Ocean. The German raider was enormously sucessful. A squadron of Briitish cruisers (Ajax, Achilles, and Exeter) correctly deduced that the Germans would attack merchant shipping from Argentina and Uruguay before returning to Germany. The first major surface engagement of World War II was thus improbably fought off Uruguay--the Battle of the Rio Plate (December 1939). The outginned Brtish cruisers managed to damage the German battleship which almost blew Exeter out of the water. The German captain sought refuge in Montevideo, a neutral port. The Uruguayans following international law, refused to allow the Germans to improve the fighting condition of the ship. The NAZIs were not pleased with the Uruguyan rejectioin of their demands. Had the War gone dfifferetly, heads would have rolled. Tricked by the British to believe a formidable British force was assembling to fight him outside Uruguayan waters. OKM forbide him to allow his ship to be interned. Cpt. Langsdorff to save his crew, scuttled his ship and later shot himself. The Government began an investigation into NAZI sympathizers, in part because of possible lanco collusion (1940). President Baldomir and the Colorados continued their pro-Allied neutrality. The oppositiom Blanco Party obstructed Colorado reform efforts and criticized the policy of cooperation with the Allies, in parytiulr American hemispheric defense policies. They opposed the installation of United States bases in Uruguay (1940). Luis Alberto de Herrera, leader of the Blanco or Nationalist Party was accused of being pro-NAZI, pro- Franco, and pro-Argentine. A diplomatic problem ensued with Germany over the salvage rights. Germany threatened to break diplomatic relations with Uruguay, protesting thar Uruguay had given safe harbour to HMS Carnarvon Castle after it had been attacked by a German raider. The ship was apparently repaired with steel plate salvaged from Graf Spee. Uruguay terminated diplomatic relations with NAZI Germany (January 1942). Presiden Baldomir had been elected with a ptomiose of reform. The Blanmco Party blocked rge enactement of reform measures. President Baldomir staged a kind of self coup to enact major constututional reforms. He dissolved the General Assembly and replaced it with a Council of State (Consejo de Estado) dominated by the Colorados. This quasi-coup was carried out without arrests or deportations. The press was allowed to freely report on it. No newspapers were closed. Fair natuional elections were held (November 1942). Bldomir stepped aside and Juan José de Amézaga defeated Blanco candidate Herrera. Amézaga contiunued President Baldomir's policies favoring the Allies. Amézaga continued Uruguyan Allied-leaning neutrality until the final months of the War. The NZI U-boat campaign in the North Alantic was adversely affecting Uruguayan export shipments. The Allied naval victory in the North Atlantic resolved this problem (mid-1943). And for the rfest of the war, Uruguyan exports flowed freely, mostly to America and Britain. Uruguay formally signed the Declaration of the United Nations and then declared war on NAZI Germany and Japan (February 1945).

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