823.00/11–348: Telegram

The Acting Secretary of State to the Embassy in Paraguay

confidential

166. Current Paraguayan political situation1 concerns Dept because possibility continued unrest might result chaos benefiting only Communists. Important remember Communist activities Latin America [Page 710]merely military tactic “spread confusion rear enemy” (US) and not designed build Communist Party which entirely expendable. Therefore, US has reason in addition interest general well-being Paraguay, hope Paraguayans find solution and measure stability. They alone best able solve internal problems.

. . . . . . . . . . . . . .

Lovett
  1. In a memorandum of November 10, 1948, on developments in Paraguay since October 10, Mr. Oakley of the Division of River Plate Affairs stated:

    “The political scene in Paraguay in the past 30 days has been one of near-anarchy. The Guion Rojo, a minority of the Colorado Party which alone now operates openly, has been split into three factions. Maneuvers to enlist Army and other support, sensational removals from office and movements of troops, and more exiled political leaders—all culminated in an armed revolt by a portion of the Army allied with one of the three Guion Rojo factions, on October 25. The revolt was crushed after 20 hours of bloody fighting (about 28 killed and 160 wounded), looting and the greatest property damage in many years. Some of the military failed to deliver the support believed to have been promised.

    . . . . . . . . . . . . . .

    “There is little to note about the Paraguayan economic situation except that the political anarchy has, of course, had an undesirable effect. Furthermore, the extremely low level of the Paraguay River, and especially the resulting severe shortage of gasoline, has had very serious repercussions on trade.” (834.00/11–4048)