ABSTRACT

Most observers had predicted that the dispute would be resolved as soon as the nationalistic passions inflamed by the conflict had cooled off. While nationalistic passions remained at a fever pitch for months following the July 1969 Soccer War, by November the situation had stabilized to the point that the foreign ministers of all five Common Market countries were able to meet together. According to most observers, the primary obstacle to progress on the integration front, at least in the short run, is the dispute between Honduras and El Salvador. The chapter demonstrates this dispute has played a major role in frustrating the various attempts to move the integration process forward. The bilateral dispute between El Salvador and Honduras has been the greatest short-term obstacle to restructuring. There are other indications that Honduras may be softening its hardline bargaining positions with regard to both El Salvador and the Common Market negotiations.