824.00/823

The Chargé in Bolivia (Muccio) to the Secretary of State

No. 280

Sir: I have the honor to refer to my telegram No. 38, dated July 14, 1937, 8 a.m., reporting the resignation of Colonel David Toro R., President of the Military Junta of Government of Bolivia, during the night of July 13th.

The resignation of Colonel Toro marks the culmination of the struggle between Colonel Toro and Lt. Colonel Busch, the Chief of the General Staff. It could be seen from the speech delivered by Colonel Busch before the National Federation of Ex-Combatants on July 10th (See despatch No. 272, dated July 12, 19379), that the existing tension could not last much longer. The ideas expressed in that speech and the rumors which had been circulating in La Paz for some time indicated more or less clearly that Colonel Busch had decided to make a definite break with his chief. With the backing of the ex-service men and the students, as well as the younger army group which has always followed Colonel Busch, the move was accomplished [Page 255] without incident although somewhat sooner than had first been thought probable.

Colonel Toro, accompanied by his family and the Minister of Labor, had left La Paz on July 9th for Urmiri, a health resort some 100 kilometers from the city. It cannot be doubted that he was aware of the fact that an attempt might be made against his government but he apparently did not believe that it would take place at this particular time.

As the movement had apparently progressed rapidly during the absence of Colonel Toro and as he did not return, a commission left La Paz for Urmiri on the afternoon of July 13th to demand his resignation. However, before the commission was able to reach him he had returned to La Paz, and he immediately went into consultation with the personnel of the former government. General Peñaranda, the Commander in Chief of the Army, and Colonel Busch both attended this meeting, during which they told Colonel Toro that the army had withdrawn its confidence in him. Their statements were supported by the officers of the La Paz garrison, who had met in the offices of the General Staff and later proceeded to the Palace to announce their stand and their support of Colonel Busch.

Shortly after 11 p.m. on the same night two officers attached to Colonel Toro left the Palace and announced that he had resigned. The news of the resignation was immediately communicated to the press and the local radio station and shortly after the announcement was made, several groups of people gathered in the center of the city, but no disorder of any nature has been reported either then or since then.

The Legation has been informed that the troops stationed at Viacha, said to have been the most loyal to Colonel Toro during recent months, contemplated entering the city to assist him, but he requested them not to do so. Otherwise there has been no suggestion of trouble, no demonstrations, or any evidence that the majority of the people are either more or less pleased than they were before. The working classes have apparently been apathetic to the entire matter except for a few manifestos of the usual type, denouncing the capitalists.

There is enclosed a copy of the Spanish text and an English translation of the resignation of Colonel Toro, as well as a copy and translation of the resignation of all the members of the Junta then in La Paz.10 Immediately after the resignation telegrams were sent to all the outlying garrisons announcing the resignation of Colonel Toro and recommending that each garrison name the officer who should become head of the government. In the same telegram it was indicated [Page 256] that the garrison in La Paz had unanimously pronounced itself in favor of Colonel Busch.

It will be noted that the resignation is directed to the army and that Colonel Toro stated that his continuance in office would depend upon the opinion expressed by the army. The resignation also states that as General Peñaranda did not accept the Provisional Presidency, Colonel Toro had turned it over to Colonel Busch.

Although a cabinet was announced on July 14th (See Despatch No. 278, dated July 16, 193711), and took office at 3 p.m. on the same day, Colonel Busch did not formally assume office as President of the Military Junta of Government until July 15th. The formal announcement of his assumption of office was made through a decree signed by the new President. A copy and translation of this decree is enclosed.11 It states that as the garrisons in the interior and on the frontiers of the country had expressed their approval of Colonel Busch in the office of President of the Junta, he had assumed that office.

Respectfully yours,

John J. Muccio
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