Chapter II

January 1, 1936-May 1, 1936

As soon as it was practical, President Justo called the cabinet together to discuss his plan. After several hours of editing it, it finally took the form that we know it in today, the preceding chapter of this narrative regarding the Ten-Year-Plan being nothing but Argentine propaganda, as Justo's plan was a lot more ambiguous and worse than the form it took. Present at that first meeting were President Justo, Production Minister Alberto Hueyo, Minister of Foreign Affairs Carlos Saavedra Lamas, Ramon Castillo as Interior Minister, Manuel A. Rodriguez as Chief of Staff and Commander of the Army, Pedro S. Casal as Commander of the Navy and Antonio Parodi as Commander of the Army Air Force. Casal disagreed with the plan, as he preferred marines and destroyers to cruisers and battleships, but he was threatened with replacement and in the end, agreed. In the "January 1936 Manifesto", AFNE was ordered to design a heavy cruiser and Estaban de Luca was ordered to research designing a service rifle, 50 mm gun, and light mortar for the Argentine Army (this was before it was decided that the German Karabiner 98 k, the German service rifle at the time, would work as the service rifle and German artillery could be purchased and manufactured under license).

On January 25 1936, after only 25 days of work (5 of which were trials), the Mauser Karabiner 98 kurz, or Mauser K98k, was decided on as the primary rifle of the future. The British denied requests to use their Lee-Enfield, and although there was a lobby that supported the use of the American Springfield M1903, their requests were denied by the government, who felt that the Mauser weapon was superior, as it had just been introduced less than a year ago, in contrast with the 33-year old Springfield rifle. Reinforcement of the existing divisions in the Argentine Army was prioritized, with no other production being undertaken.

A month after the start of the new year, a deal was made trading Argentine oil for US coal.

On April 12, 14 of the "New Infantry Divisions," involving a conscription of 98,000 men, were ordered. Upgrades of I, II, III, and IV Brigadas were also undertaken, with the first "New Infantry Division" being targeted to arrive in late June or early July, 1936. On May 1st, after seeing designs of the ships, the order for ARA La Argentina and ARA General Belgrano went out. .