834.00/7–3146: Telegram

The Ambassador in Paraguay ( Beaulac ) to the Secretary of State

confidential

353. All parties engaged in intense political activity. One or more rallies held daily in public plazas in Asunción in complete freedom. Press also apparently free to say what it pleases and Liberals attacking Government daily for failure to derogate decree which declared Liberal Party illegal. President while assuring political freedom to all parties is delaying derogation of decree, still looking for device which will allow him to derogate it without admitting he was wrong when he signed it. However, pressure on him from many sides increasing and may threaten his position.

Huge demonstration for Franco being prepared for his arrival August 3. Some persons fear Franquista coup on that date or later. Informed confidentially Government seized arms shipment from Argentina intended for Liberals. Apparent all parties intending to participate in coming elections while leaders not neglecting possible opportunities to attain power through traditional Paraguayan device of coup d’état.

Beaulac