1.
GVs and CU: street scenes in Buenos Aires. (3 shots)
0.22

2.
CU ZOOM OUT: picture of Argentinean leaders on front of magazine in stall.
0.27

3.
SV: people playing chess in park.
0.32

4.
LVs and CU: people listening to band in park. (3 shots)
0.48

5.
CU: armed soldier listening to band.
0.53

6.
CU: people applauding.
0.59

7.
LV and CU: another armed soldier standing near small boys (2 shots)
1.05

8.
CUs ZOOM OUT: ERP slogan on wall.
1.12

9.
LV PAN and SV: people sifting through rubbish dump. (2 shots)
1.41

10.
CUs: newspaper pictures of guerrillas, corpses, and captured arms. (4 shots)
1.52

11.
LV and SV: church and cemetery with new graves. (2 shots)
2.03

12.
SV and LVs: police on guard outside and on roof of house used by guerrillas to house kidnap victims. (3 shots)
2.16

13.
CU INTERIOR: Cell room used for prisoners.
2.43

14.
CU: bullets, pamphlets and books (2 shots)
2.48

15.
CUs: police outside house. (2 shots)
2.58



Initials RH/JB/MR/0038



Script is copyright Reuters Limited. All rights reserved

Background: Argentina - and the military government there claims major economic and social progress in the country since it took over in March this year. But the political violence that was a mark of the former government of Maria Estela Peron still continues.

SYNOPSIS: Argentina's capital, Buenos Aires, looks quite normal to outward appearances. But there is daily news of bodies being found in the city's suburbs, and frequent warnings to keep away from certain areas when explosives are found. The government has launched a major campaign to beat the violence, but does not claim as much success as it does with the country's economy. The new military regime says it has reduced the rise in the cost of living from the March figure of 37.6 per cent to 2.1 per cent by June. The regime says it has made significant progress in repairing damage done to the country's economy under the administration of Senora Peron's government. But despite strong military presence in the cities, the authorities have failed to curb the political violence. The government claims that one for the left-wing guerrilla groups - the ERP, the People's Revolutionary Party-had lost 70 per cent of its operational strength.

But the violence has continued.

The ERP and the other main left-wing guerrilla group - the Monteneros - have lost many of their leaders as a result of government action. The left-wing groups have also lost members at the hands of a right-wing group known as the "death squad". Victims of the death squad are often found on rubbish dumps like this. Fighting between various factions has brought the death toll through political violence to an estimated 700.

The violence is not good for the country's overseas image, and the government fears that foreign investors may be discouraged. Recently, security forces found a guerrilla hideout in Buenos Aires that had been used to house kidnap victims. Inside the building, a secret entrance led to a cellar which had been converted into what was described as a "people's gaol". An army communique said that the gaol had been used for the kidnapped textile executive, Dante Tarana. He was only one of hundreds of people kidnapped in Argentina during the past three years. Arms, ammunitions, and revolutionary literature were also found in the house.

But the security forces have failed to lower the overall level of the violence. The country's economic achievements may have minimal effect if foreign investment is withheld because of the political violence.