File No. 839.00/1058.

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Political conditions growing more tense. Combination within combination being formed, as politicians realize that Washington will stand behind the next elected Government against the old system that made government a farce in the past. Government party is divided. Bordas, Lovaton, Saviñon, want Bordas reelected. They are resisting invitation to Sanchez convention which is dominated by Brache, Vidal, and Arias. The latter combination is now very strong and is constantly harassing Provisional Government for money and other favors. Brache, their spokesman in cabinet, Bordas and Lovaton, attempting to effect an arrangement with Vásquez element, their enemies of yesterday. Velasquez and Jimenez also active, each in his own behalf. Every faction is working underground to effect winning combination. On account of our attitude success means everything to them, and the situation grows difficult with a multitude of cross purposes. Congress is willing to authorize the loan but each faction, hoping to be in power, wants the loan deferred till after elections. Every statesman here without exception desires to handle the distribution, and no one seems to realize that the Department intends to prevent the wholesale stealing of the past. I succeeded in preventing impeachment of Bordas, which would have caused civil war or his declaration of dictatorship. Last night I used your argument of no money and no power with Brache, thus preventing his group from taking field.

I believe at least one war vessel should be sent to the north at once to remain there until after election. Constitutional convention peacefully pursuing its labors.

Sullivan
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