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==Gabriel Terra dictatorship, 1933–38== [[File:Oficial de Policía uruguayo 1930's.jpg|thumb|[[18 de Julio Avenue]] in the 1930s]] In the 1920s, Uruguayan society and economy were prosperous and modern. However, the [[Wall Street crash of 1929]] greatly affected the country, which depended heavily on foreign trade. The United Kingdom decided at the [[British Empire Economic Conference]] to freeze import volumes from Uruguay, and international meat prices decreased drastically.<ref name=":3">{{Cite book |last=Arteaga |first=Juan José |title=Historia Contemporánea del Uruguay |year=2018 |isbn=978-9974-675-92-6 |location=Montevideo |pages=96 |language=es}}</ref> By 1930, the economic recession already affected the country, with an increase in unemployment, the devaluation of the Uruguayan peso and a reduction of more than 60% of meatpacking production.<ref name=":3" /> The welfare state was hit hard by the economic crisis, which also caused a growing political crisis. In the [[1930 Uruguayan general election|general election of 1930]], Colorado [[Gabriel Terra]] was elected president.<ref>{{Cite web |date=2019-06-21 |title=Gabriel Terra, el batllista que jugaba en su propia cancha |url=https://www.elpais.com.uy/informacion/politica/gabriel-terra-el-batllista-que-jugaba-en-su-propia-cancha |access-date=2024-01-30 |website=EL PAIS |language=en}}</ref> He took office on 1 March 1931, and from the beginning he was critical of the [[Constitution of Uruguay of 1918|1918 Constitution]] that created the [[National Council of Administration]], which he considered generated ungovernability.<ref>{{Cite web |date=2021-07-30 |title=¿Cómo se vivió la dictadura de Gabriel Terra en Colonia? |url=https://ladiaria.com.uy/colonia/articulo/2021/7/como-se-vivio-la-dictadura-de-gabriel-terra-en-colonia/ |access-date=2024-01-30 |website=la diaria |language=es-UY}}</ref> The council's measures to alleviate the economic crisis included adjustments for all sectors of society, which increased general discontent and led to the political isolation of the body. The Colorado Batllist majority and the [[Independent National Party (Uruguay)|Independent National Party]] minority of the Council reached an agreement to implement state intervention, for which the creation of the state-owned petroleum company, [[ANCAP (Uruguay)|National Administration of Fuels, Alcohols and Portland]] (ANCAP), was ordered to prevent foreign currency evasion by foreign companies.<ref>{{Cite web |date=2006-10-15 |title=Hace 75 años nacía Ancap, el primer ente industrial del Estado uruguayo |url=https://www.lr21.com.uy/comunidad/226455-hace-75-anos-nacia-ancap-el-primer-ente-industrial-del-estado-uruguayo |access-date=2024-01-30 |website=LARED21 |language=es}}</ref> [[File:Afiche Terra.jpg|thumb|Propaganda of Terra and the March revolution]] In rejection of the agreement in the council, the leader of the opposition [[National Party (Uruguay)|National Party]], [[Luis Alberto de Herrera]] joined President Terra in the campaign to carry out a constitutional reform.<ref>{{Cite web |date=2020-11-06 |title=El día que Herrera pasó por la casa de Terra para ofrecerle su apoyo limpio y desinteresado {{!}} La Mañana |url=https://www.xn--lamaana-7za.uy/opinion/el-dia-que-herrera-paso-por-la-casa-de-terra-para-ofrecerle-su-apoyo-limpio-y-desinteresado/ |access-date=2024-01-30 |language=es}}</ref> On 30 March, a manifesto by Colorado Batllista politicians opposed to the constitutional reform bill was published in the ''[[El Día (Uruguay)|El Día]]'' newspaper, and in response, Terra decreed some extraordinary measures that were annulled by the [[General Assembly of Uruguay|General Assembly]] hours later.<ref>{{Cite book |last1=Porriní |first1=Rodolfo |title=Bases de la Historia Uruguaya, el golpe de Estado de Terra y la transición al neobatllismo |last2=Schol |first2=Alexis |publisher=La bases |location=Montevideo}}</ref> On 31 March 1933, with the support of the [[National Police of Uruguay|National Police]] —led by his brother-in-law [[Alfredo Baldomir|Alfredo Baldomir Ferrari]]— and the Fire Department, Gabriel Terra carried out a coup d'état, by dissolving Parliament and the National Council of Administration.<ref name="Lewis">{{cite book |last=Lewis |first=Paul H. |title=Authoritarian Regimes in Latin America: Dictators, Despots, and Tyrants |publisher=Rowman & Littlefield |year=2005 |isbn=978-07425-37392 |location=London |pages=84–87}}</ref> The event was called the {{Language with name/for|es|Revolución Marzista|March Revolution}} and began the ''terrista'' dictatorship.<ref>{{Cite web |date=2020-04-02 |title=31 de marzo de 1933: la historia laudó {{!}} La Mañana |url=https://www.xn--lamaana-7za.uy/opinion/a-87-anos-del-31-de-marzo-de-1933-la-historia-laudo/ |access-date=2024-01-30 |language=es}}</ref><ref>{{Cite web |date=2011-03-06 |title=Gabriel Terra, el poder sin para qué |url=https://www.elpais.com.uy/opinion/columnistas/gabriel-terra-el-poder-sin-para-que |access-date=2024-01-30 |website=EL PAIS |language=en}}</ref> Terra established a traditionalist, protectionist and cooperative regime.<ref>{{cite web|url=http://contenidoseducativosdigitales.edu.uy/files/golpe-y-dictadura-de-terra.pdf|title=Golpe y dictadura de Terra - 1933-1938 Uruguay|publisher=Biblioteca Plan Ceibal|website=contenidoseducativosdigitales.edu.uy|archive-url=https://web.archive.org/web/20240130074302/https://contenidoseducativosdigitales.edu.uy/files/golpe-y-dictadura-de-terra.pdf|archive-date=30 January 2024|url-status=live}}</ref> It was characterized by strong nationalism, with the exaltation of national symbols and military parades.<ref name=":4">{{Cite book |last=Rodríguez Ayçaguer |first=Ana María |title=La diplomacia del anticomunismo: la influencia del gobierno de Getúlio Vargas en la interrupción de las relaciones diplomáticas de Uruguay con la URSS en diciembre de 1935 |publisher=Departamento de Historia del Uruguay, Facultad de Humanidades y Ciencias de la Educación, Universidad de la República |year=2008 |pages=94 |trans-title=The diplomacy of anti-communism: the influence of the Getúlio Vargas government in the interruption of Uruguay's diplomatic relations with the USSR in December 1935}}</ref> In June 1933, [[1933 Uruguayan Constitutional Assembly election|elections]] were held to elect the members of the Constitutional Assembly in charge of drafting a new Constitution. In March 1934, this body appointed him president until 1938. In April a [[1934 Uruguayan constitutional referendum|referendum]] was held in which [[Constitution of Uruguay of 1934|a new constitution]] was approved. It abolished the National Council of Administration and transferred its powers to the President, reinstating the single-person executive.<ref>{{Cite web |last=Bottinelli |first=Oscar |title=La Constitución ¿über alles? |url=https://www.elobservador.com.uy/nota/la-constitucion-uber-alles--2018617500 |access-date=2024-01-30 |website=El Observador}}</ref> In addition, [[LGBT rights in Uruguay|homosexuality]] was decriminalized, a large number of rights were constitutionalized, and equality between both sexes and [[Women's suffrage in Uruguay|women's suffrage]] were established.<ref name="Miller1991">{{cite book |author=Francesca Miller |url=https://books.google.com/books?id=sXiTQpR3crwC&pg=PA98 |title=Latin American Women and the Search for Social Justice |publisher=UPNE |year=1991 |isbn=978-0-87451-558-9 |page=98}}</ref> In foreign policy, Terra's regime broke diplomatic relations with the Soviet Union in 1935 and recognized the [[National Defense Junta|National Defense Junta of Spain]] led by [[Francisco Franco]] in 1936.<ref name=":4" /> It also had close ties with Fascist Italy and Nazi Germany.<ref>{{Cite web |last=administrador |title=Nazismo en el Río de la Plata (1933-1945) |url=http://centroshoa.org.uy/2019/04/02/nazismo-en-el-rio-de-la-plata-1933-1945/ |access-date=2024-01-30 |website=Centro Recordatorio del Holocausto de Uruguay |language=es}}</ref> During his administration, the construction of the [[Rincón del Bonete Lake|Rincón del Bonete]] hydroelectric dam was ordered to a consortium of German companies, which transferred its own technicians to the country, who settled in a town in the rural area.<ref>{{Cite web |title=Inexplicable faro nazi en Rincón del Bonete |url=http://viajes.elpais.com.uy/2014/08/01/inexplicable-faro-nazi-en-rincon-del-bonete/ |access-date=2024-01-30 |website=viajes.elpais.com.uy |language=en-ES}}</ref> Terra was succeeded by his close political follower and brother-in-law General [[Alfredo Baldomir|Alfredo Baldomir Ferrari]]. During this time, state retained large control over nation's economy and commerce, while pursuing free-market policies.
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