entrepôt for goods from Argentina, Brazil and Paraguay. 20th century The Colorado leader José Batlle y Ordóñez was elected president in 1903. The following year, the Blancos led a rural revolt and eight bloody months of fighting ensued before their leader, Aparicio Saravia, was killed in battle. Government forces emerged victorious, leading to the end of the co-participation politics that had begun in 1872. Batlle had two terms (1903–07 and 1911–15) during which, taking advantage of the nation's stability and growing economic prosperity, he instituted major reforms, such as a welfare program, government participation in many facets of the economy, and a plural executive. Gabriel Terra became president in March 1931. His inauguration coincided with the effects of the Great Depression, and the social climate became tense as a result of the lack of jobs. There were confrontations in which police and leftists died. In 1933, Terra organized a coup d'état, dissolving the General Assembly and governing by decree. A new constitution was promulgated in 1934, transferring powers to the president. In general, the Terra government weakened or neutralized economic nationalism and social reform. In 1938, general elections were held and Terra's brother-in-law, General Alfredo Baldomir, was elected president. Under pressure from organized labor and the National Party, Baldomir advocated free elections, freedom of the press, and a new constitution. Although Baldomir declared Uruguay neutral in 1939, British warships and the German ship fought a battle not far off Uruguay's coast. The Admiral Graf Spee took refuge in Montevideo, claiming sanctuary in a neutral port, but was later ordered out. In the late 1950s, partly because of a worldwide decrease in demand for Uruguyan agricultural products, Uruguayans suffered from a steep drop in their standard of living, which led to student militancy and labor unrest. An armed group, known as the Tupamaros emerged in the 1960s, engaging in activities such as bank robbery, kidnapping and assassination, in addition to attempting an overthrow of the government. Civic-military and Dictatorship regime President Jorge Pacheco declared a state of emergency in 1968, followed by a further suspension of civil liberties in 1972. In 1973, amid increasing economic and political turmoil, the armed forces, asked by the President Juan María Bordaberry, disbanded Parliament and established a civilian-military regime. The CIA-backed campaign of political repression and state terror involving intelligence operations and assassination of opponents was called Operation Condor. The media were censored or banned,