WEEKLY CONTRIBUTIONS LATIN AMERICA DIVISION, ORE, CIA 15 NOVEMBER 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000200040007-9
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: November 9, 2016
• Document Release Date: July 27, 1998
• Sequence Number: 7
• Publication Date: November 15, 1949
• Content Type: SUMMARY

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F'11T1791
f
eek4 Contributions
Latin American Division,
15 November 1949
CURRENT DEVRLUi::'/ITS
CENVAL AREA: The Ecuadoran congress, by its selection of vice-president,
has improved President PlazalE position (p. 2).
SOU En AhLA: Chile's Cormainists have again demonstrated their ability
to *cite trouble (p. 2)
The
SE-.C1AL SUBJECTS
urrent Situation in British Quiana
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Weekly Contributions fl/LA
(CIA Working Paper)
15 November 1949
1. ECUADOR: Selection of Senator Abel A. Gilbert as vice-resident of
Ecuador by congress on November ofters further evidence
of the weakening of anti-Plaza forces in congress. It is believed
that the election of a non-Conservative successor to the recently
deceased Conservative vice-president (Manuel Sotomayor y Luna) will
not seriously jeopardize President Plazats standing -eith the Con-
servative Party as that party, in view of its minority conditions
cannot afford to be oppositionist. On the other hands the selection
of Senator Gilberts an avowed pro-Plaza Socialist who refused the
offer of the governorship of the important coastal province ef
Guayas under the Iancheno regimes should materially improve Plazels
previously weak position with the right-wing Socialists and the
more moderate elements of the Liberal-Radical party in the coastal
region.
2, CHILE: A bilef but violent Communist demonstration -- the second in
recent months staged in Santiago on the 32nd anniversary
of the Russian eevolutiorsshowed evidence of careful planning, Taking
advantege of the annual student festival parade, the Communists, many
of them masked and armed, created disturbances among the crowds and
fired on the police. The incident shows that recent steps taken by
the Chilean goveanment to restrain Communists have not eliminated
their ability to exploit any favorable opportunity to Incite trouble.
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Meekly Contributions, p/LA
(CIA Working Paper)
Situation Memorandum 65-49
15 November 1549
The Current Situation in British Guiana
(Semeery -- There have been no political developments of
consequence during recent months. The economy has not yet
responded to probable adverse effects of devaluation. There
have been no problems of subversion. The semi-military
police force continues to be of no political or military
importance., There have been no significant international
developments,
-- US security interests have not been ffected by
recent developments in British Guiana.)
Political
Reporting from both official sources and in the public press
indicates that there have been no political developments or activities
of sufficient significance to require comment,
Economic
The formerly stable British Guiana economic structure has been sub-
jected to the pressures of devaluation, the adverse effects of which
have not yet made their mark,
The devaluation of the British Guiana dollar (formerly US$. 84, now
US$.26) has necessitated government action with regard to the black mar-
ket, Ay a special order, Nide powers -were given to the government control
board, All dealers and shopkeepers 'were required to submit statements
showing stocks on hand. Merchants are now required to stare supplies
only on those premises which are licensed for the conduct of their busi-
nesses. Refusal td sell to any customer has been made a criminal offense.
The government hopes that these measures will prevent a hiding of stocks
pending opportunity to secure higher prices.
Producers and exporters of bauxite, gold, rum, diamonds, and timber
are expected to benefit immediately and substantially from the devalua-
tion. To mitigate the adverse effects of the devaluation on importers,
the government plans to exert the controls necessary to force importers
to make their purchases in the sterling area whenever supplies are avail-
able there, Where suoh essential items as flour, split peas and salted
fish are concerned, however, relief is hardly to be expected as the
principal source of these commodities is Canada which has devalued only
ten percent.
It appears that devaluation must inevitably have an inflationary
effect in British Guiana, and. that this colony will become a greater
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drain On sterling-area dollar resources than it tas,bef'sro.
1 'st improbable that British Guiana will be able to eamany mure
d liars than before.' The major proportion,of such earl.-Ms.gs LL)445
from bauxite exports, the price of which is fixed in the LS, making
a#y decline in price most inprobable. Loreover? the c.;10ny wold not
be likely to benefit from anw price decline oecause the de;aW for
bauxite is so stabilized that cheaper cauxite would nur, call Into being
arty new or greater production. Therefore, Lie only Lr,-,uP 11:'.ely to
benefit from devaluation is the bauxite industri. The -?-.1verc.mcnt could,
by taxation or otherwise, force the company ,to share tts increased
Peofita with the government in order that the latter wouLO be able t,o
sidize increased import costs. it is esti:lated? however, that no
ally effective readjustme.IL alork: these lines is proBatle in vie' of
the importance of the companw in the :4ritish Guiana c. 4y and the
practical politics inherent in tnls situation.
,
,To stim2410 gold production the Zritisa Guiana auWArities signed
ax agreement with Anaconda :::ines by which the company acquires exclusive
? lorition and development rights for tLe next six years in an area of
ap roximatelY4,500 square miles. Rentals have been set at ;,15,000 for
t4p first year, and at :5,000 for each succeeding year. Thu ,201z1parw
plans to spend ,41500,000 annually for developmant? inoludin: the corr.-
? uction of transport facilities, arkl :;100,000 a yeilr for prospecting
and exploration.
There have been no siznificant developmcas during the past three
mOlths in aCriPalure and in the bauxite industry.
.
The most recent strike of any significance was onc of three weekc''
dation in the esgar industry,"it1 !
-:_,.... the return of these wor4ers
Sep '49), the Labor situation has again become basicelli quiet.
ln, ermittent repurts of incipient trouble at the Demnrara Bauxite r.;omr-
pa,y oentinue to .1se received. Although there may be sporadic outbreaks
of trouble in the bauxite industry from time to time, it is ,net, develo antiai-
er,ble outside pressure, of which there is presently no indication,
ted that a tot
Ta, al ppage of wor n or stok ca .31.11 p, without conid
s-
t
Th se sporadic, flare-ups stem largely from the fact that_oaute employees.
ar, reludtant tp pay union dues when things are coinc Lell, consequently
un on officials are apt to manufacture crises in order to k'etr.? interest
,
in the union alive.
versive
44'0 Qi' aRT.,q9r1;kuilkLit threa in British Guiana continuas? as
does the growing public sentiment against this ideology.. Charles A.
Carter (the only paid onployee of the Lan-Power Citizens Association -
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Sit4ation Eemorandum 65-49
CIA-14D79-01
voRET
the bauxite workers' union), who is certainly a fellow-traveller if
not party member,is again suspected of propajandizing the bauxite
mor ers. He does not appear to be meetin 7:ith much succeAs as there
con1inues to be very little Communist sentitnnt among this or any other
groUp of workers in the colony.
e are no British trcops cl"A in British GuiaAa. The
smail semi-military police force c-IntinQes to be of no political or
military importance.
International
As 4 crown colony, British Guiana dws not have the logca capacity
to carry on international relations in the full sense of that term.
ng Viorld War II, however, direct dcalin:s were carried on with the
US connection with the operation of the US air base at Atkinson Field.
The base has now -been deactivated, but UE military authorities have
decided, to continue the maintenance of limited cormunications, weather
and transportation facilities at the field. As a consequence of this,
the 'British Guiana government -All be saved about ,500,000 a year in
maintenance costs for at least twe years.
Nothing of note has developed from the conference held some months
ago by the governors of the three Guianas for the discussion. of economic
and !scientific matters of mutual concern.
Mije the population of British Guiana is not hostile to the US?, its
attitude is sonewhat adversely influenced by a rather exiloraLed idea of
racial prejudice aszociated with the US,?
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