824.00/809
The Chargé in Bolivia (Muccio) to the Secretary of State
[Received July 16.]
Sir: I have the honor to refer to my despatch No. 261, dated June 25, 1937,1 and to the several additional despatches since the beginning of this year reporting the friction between the President, Colonel David Toro, and the Chief of the General Staff, Lt. Colonel Germán Busch; that is, between the older and the younger groups of Army officials.
I have been strictly confidentially informed by the La Paz representative of the largest Bolivian mining group that there is a definite agreement between a group of younger officers, headed by Busch, and the National Federation of Ex-Combatants, to oust the present Junta of Government. The agreement provides that General Enrique Peiia-randa, Commander of the Bolivian Army, is to take control of the country in the name of the Army at an opportune time. He is then to inquire of the Army officers who they desire as leader, following which Busch will be called upon to select a provisional government. My informant believes that this move will take place in the course of the next two weeks. It appears that certain mining interests are backing this movement.
Another informant confirmed the existence of this coalition, but it is his opinion that Busch prefers to delay matters for a time hoping that some settlement may be arrived at concerning the Chaco.
Reference is made to despatch No. 120, dated January 18, 1937,1 reporting that the Federation of Ex-Combatants had broken up into segments. Recently the ex-combatants have been reorganized under the title of “National Federation of Ex-Combatants”, and have elected Colonel Busch as their supreme chief. A mass meeting of all ex-combatants has been called for July 10th, at which Busch is to publicly assume office.
On July 5th Lt. Colonel Busch left La Paz by airplane ostensibly for Concepción, a small village to the north of Santa Cruz, where his [Page 250] father resides, but most likely to appraise his position in the Oriente and in the Chaco. When his ‘plane was lost for some forty-eight hours, having been forced down by bad weather, a whispering campaign developed in La Paz that probably the Junta of Government had arranged foul play to get rid of him.
Respectfully yours,