Argentina – National Salvation State (1946)

Capital: Buenos Aires
Regime: Authoritarian corporatist state
Leader: General Héctor Benavides, President of the National Salvation State
International Faction: The Silver Pact (Argentina as leader)

Birth of the National Salvation State

Following the fall of the United Kingdom in 1941 and the global realignment caused by the German victory in Europe, Argentina entered a deep internal crisis. The old oligarchic democracy was weakened, syndicalism was rising, and fear of communism grew within the military elite.

In 1943, a group of nationalist officers — influenced by Italian doctrine and the authoritarian tendencies of the era — executed the June Coup, dissolving Congress and establishing a provisional government.

By 1945, this government evolved into the National Salvation State, a regime with a martial aesthetic, a corporatist economy, and a discourse centered on the "spiritual restoration of the fatherland." It was led by General Héctor Benavides, a charismatic and pragmatic officer who blended authoritarianism with populist nationalism.

The primary objective of the new state was to transform Argentina into the dominant power of the Southern Cone before the United States or Brazil could expand their influence over the region.

Italian Inspiration and Continental Alignment

From the beginning, the Argentine regime maintained a strong affinity with Italy, admiring:

its corporatist organization,
its aesthetic-propaganda model,
and its method of consolidating power without falling fully under German control.

Argentina viewed Italy as the “legitimate Latin model” for modernizing the nation without submitting to German or American spheres of influence.

After Italy’s defeat in 1943 and its partial reconstruction under German oversight, Buenos Aires became one of Rome’s main military and economic partners outside Europe, purchasing:

second-line aircraft,
light armored vehicles,
industrial machinery,
and even military advisors to reform Argentine academies.

This relationship strengthened the regime’s “Latin-corporatist” identity.

The Silver Pact

By late 1945, Argentina pushed for the creation of the Silver Pact, a regional alliance with two core objectives:

Counter the growing influence of the United States in the Americas.
Prevent Brazil from becoming the sole South American center of power.

As the leading nation of the pact, Argentina coordinated:

maritime strategies in the Río de la Plata,
joint military exercises,
and a common political front toward Washington.

Although the pact was small compared to the American Continental Block, Buenos Aires saw it as the first step in building an autonomous and resilient “Rioplatense Sphere” capable of resisting U.S. diplomatic pressure.

Internal Structure of the Regime

The National Salvation State was a unique mixture of:

institutionalized militarism,
state-controlled unions,
a patriotic cult involving the modern gaucho and national sacrifice,
accelerated state-directed industrialization,
and partially censored press — though not to German totalitarian levels.

Its main symbols included:

the National Condor,
the stylized sun,
and the figure of the “Soldier-Producer,” representing the union of discipline and economic development.

Argentina in Global Geopolitics (1946)

Unlike many nations of the time, Argentina avoided direct alignment with the Reich. Benavides viewed German expansion in the South Atlantic with caution and refused to allow German naval bases in Patagonia.

Argentina maintained a delicate balancing act:

friendly with Italy,
distant with Germany,
openly distrustful of the United States,
and strategically competitive with Brazil.

Its priority was to dominate the Southern Cone through:

an expanding navy,
a state-industrial economy,
and the use of the Silver Pact as both a military and diplomatic platform.

War of Asunción (1944–1946)

War, Division, and the Birth of Two Paraguays

The War of Asunción was a small regional conflict in South America, fought between Argentina and Paraguay in the final years of the global war. Officially justified by Argentina as a campaign to eliminate a growing socialist state on its border, the war quickly devolved into a brutal and protracted guerrilla conflict that reshaped Paraguay permanently.

By its end in 1946, Paraguay ceased to exist as a unified nation, replaced instead by two opposing entities: the Communal Republic of Paraguay and the Argentine-controlled State of Asunción.

Origins of the Conflict

Rise of socialist and communal movements in rural and urban areas
Weak central government unable to maintain control
Increasing fear in Argentina of ideological spillover

Argentina, as the leading power of the Plata Pact, framed intervention as a necessary action to prevent the establishment of a hostile socialist regime in the region.

Argentine Invasion

In 1944, Argentine forces launched a full-scale invasion:

Rapid advance toward Asunción, Paraguay’s capital
Initial success due to Paraguay’s fragmented defenses
Establishment of occupation zones in key areas

However, what began as a conventional campaign soon transformed into a grinding insurgency.

Guerrilla War

Formation of decentralized socialist guerrilla cells
Widespread rural insurgency supported by local populations
Constant ambushes, sabotage, and disruption of supply lines

The war became increasingly costly and difficult to sustain, with no clear path to total victory for Argentina.

Stalemate and Negotiation

Argentina struggled to maintain control outside urban centers
Paraguayan resistance could not retake major cities
International pressure mounted to end the conflict

Negotiations began, leading to a controversial peace agreement that formalized the division of the country.

Postwar Division

Communal Republic of Paraguay

Established in rural and interior regions
Governed under an extremist socialist system
Based on communal ownership and militant ideology
Acts as a hub for revolutionary movements in South America

State of Asunción

Created as an Argentine puppet state
Encompasses the capital and surrounding regions
Fully dependent on Argentine military and political support
De facto integrated into Argentina’s sphere of control

Strategic Consequences

Paraguay became a divided frontline state
Increased ideological tension within South America
Strengthened Argentina’s position, but at high cost

At the same time, the emergence of the Communal Republic created a persistent source of instability.

Strategic Outlook

By 1946, the legacy of the War of Asunción remains unresolved. The fragile peace masks a deeper conflict between two irreconcilable systems:

A revolutionary socialist state committed to expansion
A controlled puppet regime tied to Argentine power

In the broader Cold War, Paraguay becomes more than a divided nation—it becomes a battleground of ideology, where the future of South America may be decided.