After the First World War, Uruguay’s tourism industry boomed, seeing an influx of tourists from Europe into the city of Montevideo. Following the introduction of the electric streetcar in 1906, industry in Montevideo underwent massive changes to adapt to its new international popularity and the changing industrial landscape of the 20th century.
Argentina and Uruguay have a history of friendly diplomatic relations, with their countries sharing similar heritages, mutual alliances and significant cultural and political ties. However, following the 2005 announcement of the construction of two paper mills on the Uruguayan side of the Uruguay River (which serves as a boundary between the two countries), Argentina and Uruguay experienced their first significant diplomatic tensions since the 1970s.
Before 1973, Uruguay had been one of few countries in South America with a near perfect record of political stability and a strong democracy (others included Chile and Costa Rica). The military coup in 1973 came as a profound shock to Uruguay. To make matters worse, this once peaceful nation was now living under a regime that used fear, threat, and intimidation to keep control of its populace.