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.