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Argentina Adrift In Chaos After
New President Quits
By Brian Winter
12-31-1

BUENOS , Argentina (Reuters) - Argentina's deeply divided politicians, reeling from the second resignation of a president in barely a week, clashed Monday over who would next lead a country plagued by riots and recession.
 
After violent street protests and a battle within the ruling Peronist Party led Adolfo Rodriguez Saa to suddenly quit as interim president Sunday, depressed Argentina found itself adrift with no consensus over how to end the chaos.
 
Eduardo Camano, head of the lower house of Congress, found himself with the hot potato of Argentina's provisional presidency after the Senate chief also resigned. But Camano can only head the country for 48 hours before Congress must name a new interim president, according to the Constitution.
 
One powerful Peronist governor called for an emergency ''government of national salvation,'' while another urged elections for a new president ``as soon as possible.''
 
But the non-stop political tumult raised questions about whether Argentina is governable at all as the crumbling middle class grows increasingly restless in its protests of widespread corruption and a deep recession now in its fourth year.
 
Rodriguez Saa, appointed just a week ago by Congress to lead until elections set for March 3, quit after stomping on the toes of Peronist Party barons who accused him of trying to delay or cancel the vote to cling to power longer.
 
His fate was also sealed by thousands of demonstrators who took to the streets Friday night to protest strict curbs on bank deposits and his appointment of a cabinet many believed was rife with corruption.
 
The protests turned violent, leaving a dozen police injured after clashes in front of the presidential palace. Looters also broke down the doors of Congress, set small fires and pushed couches and statues down its front steps.
 
``I'm not going to be the president who continues the old Argentina,'' Rodriguez Saa said in a televised address to the nation Sunday. ``This selfish, petty attitude leaves me no alternative but to present my resignation.''
 
CAROUSEL OF PRESIDENTS
 
Television images showed a very small group of protesters gathering outside the presidential palace early Monday, but they appeared to be easily outnumbered by police in riot gear and expectant news photographers.
 
In his short term in office, Rodriguez Saa stopped payments on Argentina's foreign debt, setting up what would be the biggest sovereign default ever and consolidating Latin America's third-largest economy as a pariah in world markets.
 
Rodriguez Saa was Argentina's third president this year. Violent protests that killed 27 people forced Fernando de la Rua to resign as president on Dec. 20 only half way through his four-year term.
 
``What people want more than anything is a government,'' said presidential hopeful Carlos Ruckauf, governor of Buenos Aires province, the country's richest and most populous. ``Argentina immediately needs a government of national salvation.''
 
Peronist powerbrokers said Rodriguez Saa's plans for a new currency and promises to create a million jobs sounded too ambitious for a man only slated to stay in power for three months.
 
Right before Rodriguez Saa took office, one Peronist spokesman had described him as a ``guy without many enemies in the party.'' But that label soon vanished, and key party leaders skipped an emergency meeting he called for Sunday afternoon.
 
Rodriguez Saa said as he quit that the snub by the Peronist governors was the last straw for his caretaker government.
 
``He never consulted us on any measures that he took,'' said Jose Manuel de la Sota, another Peronist governor with presidential aspirations. ``The people should elect their president, and the sooner the better.''
 
Argentina's next leader must decide what to do with the dollar-peso currency peg, which economists say is on the brink of collapse. Help from foreign governments is not expected since worries Argentina's problems could spread to other emerging markets have long since dissipated.
 
In his first public comments since resigning, De la Rua issued a brief statement calling for ``national unity.''
 
Many demonstrators over the weekend said they were worried that Rodriguez Saa's plan to alleviate a cash crunch by issuing a new third currency could spark runaway hyperinflation.
 
Many of those who took to the street early Saturday demanded the end of unpopular caps limiting Argentines to $1,000 in cash per month from their bank accounts, put in place a month ago to halt a run on the brittle financial system.
 
But economists say lifting the cash limits would spark certain collapse of many Argentine banks short on funds.


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