Lopez Vargas was the name of the President of Argentina in 1914. It is unknown whether Lopez was his given name, or whether Lopez Vargas was his full surname. Although Sobel does not say so, it is likely that Lopez Vargas came to power via a coup d'etat instigated by French President Henri Fanchon, replacing a previous pro-Mexican president. Argentina was a French ally under Lopez Vargas, and in the spring of 1914 he allowed French warships to carry out maneuvers in Argentine territorial waters. This led to Mexican President Victoriano Consalus sending Lopez Vargas a strongly-worded note, warning of "dire consequences should the Argentine continue its warlike alliance with France."
Mexico broke off diplomatic relations with Argentina on 1 April 1914; three days later, France recalled its ambassador to Mexico City. On 16 May French troops began debarking in Argentina to, as Fanchon put it, "assist that government in repressing guerrilla activities near the capital." Fanchon told reporters, "There is evidence that the Argentine guerrillas are being supplied from Mexico. If this is true, France may have to take actions stronger than words to aid its ally." Sobel does not say whether there actually were anti-government guerrillas active near the Argentine capital, or whether Fanchon was only inventing a provocation. If Lopez Vargas' government was nationalizing Kramer Associates' assets, K.A. President Douglas Benedict may very well have been funding an anti-government guerrilla movement in Argentina.
Fanchon launched an invasion of Mexico in the summer of 1914 that ended in disaster. By October of 1914 a French invasion force had been defeated and Fanchon was forced to sue for peace. It is likely that Lopez Vargas' government was overthrown shortly afterwards.