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

No. 285

Sir: I have the honor to transmit the following brief observations on the causes of the overthrow of the Toro Government and comments on the character of the new President of the Military Junta of Government, Lt. Colonel Germán Busch.

Toro had lost the support of the larger mining interests, which opposed the continuance of the large war-time exchange exactions. The miners also were disgusted with his professions of socialism and the disruptions in labor ranks brought about by the numerous confusing and onerous labor decrees. The mining interests became increasingly critical of what the Toro Government was doing with over three hundred thousand pounds sterling monthly that the Government was taking from them by exchange requisition alone.

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Toro had aroused the opposition of all “politicos” through his abolishment of political parties, the arrest or deportation of all civilians who dared criticise him, his strict censorship, and his refusal to return to a constitutional régime.

Toro had also failed to maintain the support of labor. At the beginning of his administration, labor was encouraged by the Government’s numerous professions of socialism and the emission of numerous social decrees. Most of these social decrees were so confusing and impracticable that it took labor a long time to realize that in spite of all these decrees wages were not materially increased and were nowhere commensurate with the mounting cost of living.

Toro never did have the respect and admiration of the young Army officers, whose idol was Busch. At first Toro was classed as a sort of go-between of the younger and older militarists, but as he more and more lined up with the oldsters the youngsters accused him of favoring the older officers and civilians, and leaving them without remunerative posts.

The students, in addition to disliking a military rule as such, detested Toro for his part in the 1930 student massacre.20

Toro, therefore, towards the end of his régime, had no organized backing whatsoever.

Germán Busch, son of a Germán father and a Cruceñan mother, has the single-purpose, Teutonic mentality. He has had the unqualified admiration of the rank and file of the Army and of the younger Army officers because of his unparalleled Chaco war record. Recently, he has also attained the backing of the ex-combatants and of the Federation of University Students, although recent events indicate that the support of the two latter organizations was gained probably more through their desire to eliminate Toro than actually to put Busch at the head of another military Junta. The miners also preferred to take a chance on the uncertainty of a Busch régime than to continue being stifled by Toro.

Busch’s sincerity of purpose and his accentuated patriotism … cannot be questioned. Having been primarily instrumental in eliminating President Salamanca in November, 1934, and Tejada Sorzano in May, 1936, he, in the name of the Army, was responsible for putting Toro into office. Toro in office, having failed the Army and the Nation, it was a natural reaction of Busch that he should also be eliminated. Fired by his own ambition, and that of his enthusiastic supporters, it was a foregone conclusion that he would replace Toro.

As just stated, Busch’s sincerity and patriotism is evident. Should [Page 265] he succeed in carrying out his declared intention of giving the country a constitutional government so soon as practicable, he would be an unqualified patriot. But his brash courage, scepticism of everyone about him and political ineptitude, may thwart him; particularly in view of the confused political maelstrom surrounding him and the difficulty of satisfying the appetites of his youthful cohorts.

Respectfully yours,

John J. Muccio