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 -    WORLD   
 

Food riots trigger state of siege 
 Desperate times ... A man carries food donated by a supermarket to prevent looting from a truck in Buenos Aires. A march against economic austerity measures turned violent with protesters looting stores, setting roadblocks on fire and squaring off with police. Photo: AFP 

By Clifford Krauss in Buenos Aires 

President Fernando de la Rua declared a 30-day state of siege after food riots and looting broke out across Argentina on Wednesday, and police fired rubber bullets and tear gas at rock-throwing protesters in Buenos Aires and several provincial cities. Five people were killed in the rioting.

The most widespread social disturbances since the 1980s came on a sweltering summer day. The near-anarchy in many cities appeared to be a mix of spontaneous pilferage by the unemployed seeking to put food on their Christmas tables and organised protests to force the tottering government of Mr de la Rua to stand down.

The Economy Minister, Domingo Cavallo, resigned late yesterday, as did the rest of the Cabinet, according to two local television networks. Mr Cavallo had failed to jump-start the economy with tariff increases, cuts in government salaries, subsidies for exporters and capital controls to stop a run on the banks.

Mr Cavallo's resignation and the rioting came just as Me de la Rua's government was faltering in its efforts to avert a default on the $A260 billion public sector debt.

Tensions have been building for four days as poor people massed around supermarkets in the cities of Rosario, Concordia and Mendoza, demanding handouts and sometimes breaking down doors to loot. 

But the sporadic, isolated disturbances suddenly swelled in the pre-dawn hours across the country on Wednesday, even reaching the working-class slums surrounding the capital.

By late afternoon police officers with night sticks and tear gas grenades were seen wading into crowds of looters.

The Government appeared surprised by the lawlessness and confused about whether to strike a public pose of toughness or sympathy to growing social needs.

Cabinet met in emergency session through much of the day with intelligence and security officials and top military officers. 

The state of siege gives the President broad powers to suspend constitutional guarantees, including freedom of travel, press, property, association, labour organising and even private property rights. He can also order arrests as he sees fit.

Mr de la Rua begged for calm on national television and released $14 million in food aid to impoverished neighbourhoods. 

"I understand the suffering, but the people know violence does not solve problems," he said.

Immediately after the TV speech, thousands of people in Buenos Aires took to the street clanging pots and pans and marching on the presidential palace in protest at the President's policies. The streets rang out with horns sounded by drivers supporting the protests.

The increasing tensions are likely to make it more difficult for Mr de la Rua and an increasingly rebellious opposition-controlled Congress to agree to an austerity budget for 2002 that would cut more than $8 billion in social spending and salaries.

Agreement on the budget by the end of the year will be necessary to persuade the International Monetary Fund to release about $2.5 billion in emergency loans and foreign lenders to agree to a swap of more than $90 billion in bonds at lower interest rates.

Otherwise, a default and a probably sharp devaluation will almost certainly follow. 

The New York Times



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