834.00 Revolutions/20: Telegram
The Minister in Paraguay (Howard) to the Secretary of State
[Received 1:50 p.m.]
17. The tension evident here early yesterday has largely disappeared and entire calm prevails. Meager reports would indicate the same situation throughout the entire country. Naval and military officials in this vicinity are apparently acting in concert with the [Page 721] troops in the Chaco and in the north. Yesterday, they took precautions to prevent the arming of the ex-service men and labor organizations, many of which were violently disposed to support the Government of Franco and it now appears that he has no recourse but to accede to the demands of the navy and army officers, whatever those demands may prove to be. The resignation of the entire Cabinet has been accepted by the President. It is said that the army and navy group desire Franco to remain as President with a cabinet agreed upon by them. No indications of his probable course of action are available. Late last night I talked with a friend who had just left the President and this friend stated that no decision had as yet been made but that it was hoped that a solution would be found during the day, depending upon the agreement of the revolting army leaders in the north whose arrival here is expected momentarily. It is possible that a few days may pass before a solution is reached.
Copy to Buenos Aires.