THE POST-WORLD WAR II HISTORY OF URUGUAY AND A PROPAGANDA CAMPAIGN DIRECTED AT WORKERS AND STUDENTS DURING THE 1950'S ARE DESCRIBED AS THE ROOT CAUSES OF THE TUPAMARO MOVEMENT. BY 1962, THE MOVEMENT WAS INVOLVED IN ARMED STRUGGLE AND WAS USING ILLEGAL MEANS AND COMMON CRIME TO SECURE ARMS AND MONEY. IN 1968, THE TUPAMAROS DEFINED SOME OF THEIR IDEOLOGICAL ELEMENTS (MARXIST-LENINIST) AND STRATEGY AND TACTICS, CALLING THEMSELVES THE VANGUARD OF THE NATIONAL LIBERATION MOVEMENT. THE REPORT CHRONICLES THE ESCALATION OF VIOLENCE, THE THEFTS, KIDNAPPINGS AND OTHER CRIMES, AND THE RISE OF THE MYTH OF TUPAMARO INDESTRUCTIBILITY. THE URUGUAYAN GOVERNMENT RESPONDED BY COMBINING POLICE AND MILITARY COOPERATION AND WAS EFFECTIVE IN DEALING WITH THE SUBVERSIVE MOVEMENT. A PSYCHOLOGICAL OPERATIONS PROGRAM TO INFORM THE PUBLIC ABOUT THE MENACE ALSO WAS BEGUN. THE GOVERNMENT REFUSED TO PARLEY WITH THE TUPAMAROS WITH KIDNAPPINGS OF INTERNATIONAL PERSONALITIES. REASONS FOR THE TUPAMARO DECLINE INTO TERRORISM INCLUDE EXCESSIVE INTELLECTUALISM, KILLING SEEN BY THE PEOPLE AS MURDER INSTEAD OF JUSTIFIABLE REVOLUTIONARY ACTS, SPECIAL OPERATIONAL PLANS DIRECTED AGAINST THE TUPAMAROS BY THE URUGUAYAN GOVERNMENT, CREATION OF A FUNCTIONAL ORGANIZATION TO DEAL WITH SUBVERSIVE ACTIVITIES, ADEQUATE LEGISLATION, AND NATIONAL ELECTIONS. (RFC)