Brazilian troops push towards liberating Lima and Caracas, which would leave Columbia as the only Latin Red nation left.
Argentinian communists form their own government in the southern tip. With opposition gone in the rest of Argentina, support for Brazil is higher than ever.
Brazil proposes the creation of the South American Union. Any nations that wish to join will become autonomous republics in the greater empire. All autonomous republics may function on their own, but must answer to the capital in Brasília in return for full military, economic, and industrial support, as if they were a single nation.
All South American countries are invited to join.