WEEKLY CONTRIBUTIONS 21-50 (Sanitized)ORE,CIA 23 MAY 1950

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000200050021-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 15, 2016
• Document Release Date: September 16, 2002
• Sequence Number: 21
• Publication Date: May 23, 1950
• Content Type: PERRPT

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!ee0? Contributions 21-50
p1 C1A
;d -) my 1.95
Of the developments reported on this meek., II has found two
that are of particular interests the situation in Argentina (p.9)q
and in Bolivia (P. 5).
CURRENT DEVELOPMENTS
W Ls A new permanent unofficial inter-American organizations the
Inter-American Association for Democracy and Freedom, has been formed
as the result of the recent inter?Amerioan conference at Habana (p. 2),
NORTHER) AREA: In Nicaragua., the election of General Somoza as presi-
dent has not changed the political situation in that country (p. 2).
Haiti's now governing junta is firmly established (p. 3). Cuba's
government is not likely to outlaw Cs nisr before the 1 June election
(P. 4).
CENTRAL AREA: Venezuela v s relations with Cuba have become strained
(P. 4).
SOUTHERN AREA: Bolivia's government remains precarious despite its
survival of the most recent revolutionary attempt against it (p. 5).
SPECIAL SUBJECTS
The Current Situation in British Guiana . . .
. ?
? . 6
The Current Situation in Argentina. . . . . .
.
. . .
. . . . . .
. 9
The Current Inter-American Situation, ? . . .
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. .
. . . . . .
..
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Weekly Contributions,
(CIA Working Paper)
21-50 23 Nhy 1950
GERUL: Inter-American Conference for !rgay_ and Freedom
e~ovnrnmm~ r~ Kean -erenc"` a oor D moc--
racy and Freedom held recently at Habana Wk]y, 9 may 50) has
gone on record as opposing all forms of totalitarianism. As a
result, both extreme leftist and rightist newspapers in Latin
America denounced the meeting as a tool of Yankee imperialism and
of Communism respectively, and two Mexican delegates of pro-Commu-
nist reputation withdrew when the conference rejected their reso-
lutions criticizing the US and the Catholic Church. Although the
political exiles attending the conference ire extremely vocal and
used it as a vehicle for getting their case before the people of
the Hemisphere, the more moderate elements prevailed when it came
to the passage of resolutions. Among the more important of these
were resolutions urging that the subject of diplomatic recognition
of de facto governments be re-examined, and that no financial,
~ , or technical aid be granted to any country flagrantly
violating human rights.
The conference also succeeded in establishing a perma-
nent organization, the Inter-American Association for Democracy
and Freedom, with headquarters in Montevideo, Since Emilio Frugoni,
head of the Uruguayan Junta Americana de Defensa de la Demaaracla,
was chosen as president of the new organization, it is expected
that it will work in close collaboration with the Junta, and that
the latter's publication, the aJ?A.Drn will serve as a propaganda
organ for both groups.
Despite the difficulties involved in maintaining a private
organization of this type, and scope, the Inter-American Association's
chances of survival are good because it has the support of the junta
in South America, and of the AF of L, the Cl(),, and certain inter-
ested individuals in the 1 While its importance in the inter-
American scene cannot yet be determined, if it succeeds in obtaining
support in some of the larger countries like Brazil and Mexico, the
Association free of the restrictions which characterize official
bodies - could become an effective instrument for influencing
public Opinion. Also, as an organization opposed to imperialism
and critical of dictatorships both of the right and of the left,
it could serve to counterbalance Communist propaganda in Latin
America which seeks to label anti-Communism as undemocratic, pro.
fascist and imperialistic. In this way, as well as in contributing
to furthering democratic processes in the other American republics,
the Association could be useful to the US and to the inter-American
system.
NICAAAGtj: Somoza Elected -
e e action of General Somoza as president on 21 May
has not changed the political situation in Nicaragua.
meat continues to be dominated by Somoza's National LiberThe al buut
2.
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21-50 23 May 1950
Conservatives (who finally decided to abide by the Somoza-
Chamorro agreement) will have minority representation.
HAITI ,tlita Junta Takes Over
The enforced resignation of President Estimi offers strik-
ing evidence of the military's dominance over the civilian govern-
merit in Haiti and the paramount role of personal relationships in
Caribbean polities. Eetima was dismissed from office by Colonel
Paul Nkgloire, who had been largely responsible for his election
in August 1946. lllagloire, as "strong man" of the Haitian army,
was powerful enough to overthrow the administration at any time
since its inauguration but chose to support it as long as the
president's policies coincided generally with his own. At first,
Estirs studiously deferred to Magloire but subsequently became
violently jealous of the letter's power and attempted to assert
his own authority by pursuing Increasingly independent policies.
The rift between the two became pronounced when Eatime's ambition
for a second term led to repressive measures against the opposition.
When civil disorders resulted last November, Hagloire continued to
support the administration, probably in order not to frighten tour-
lets from the Exposition, which opened in December and recently
closed for the summer. Last month, however, the senate, probably
with Magloire'a covert approval, decisively rejected a proposal to
wive the constitutional single term limitation on the presidency.
In an attempt to intimidate the opposition, Estime'a henchmen
organized an irresponsible rabble to demonstrate in favor of a
second term. This mob was allowed to ransack the senate chamber.
When the senate refused to give in, Estime decreed its dissolution.
At this point Magloire stopped in and ordered the president to
resign in the public interest. Estime had no recourse but to
comply.
The taking over of the government by the military has been
applauded by most elements other than the politically inarticulate
populace who have accepted the situation with mute resignation.
The threes-man junta, dominated by Magloire, appears firmly estab-
lished and will probably not relinquish power for at least a year.
In the meantime, the Junta is trying to get the country's finances
in order and is working toward the restoration of civil liberties
suspended by Estima. The Dominican Republic, Venezuela, and Spain
have already recognized the new government (which is expected to
abide by its promise to honor Haiti's international commitments).
While the ouster of President Estime represents a setback
for the evolution of constitutional governments in this Hemisphere,
the action of the junta has relieved mounting political tension
which, unchecked,,-could have precipitated a bloody civil conflict.
On the basis of its' performance to date,, there is reason to believe
that the junta will lay thd foundations for a more democratic form
of government than Haiti has hitherto enjoyed.
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21-50
23 May 1950
4. CUBA s Outlawin of Communist P Befo o Election Unlikecansider-
e a on party u p
ing outlawing the Communist Party as a means of aiding the govern
ment candidate in the Habana mayoralty election of 1 June. Admin-
istration labor leaders have also been urging such action because
Aute?ntieo control of key labor unions -- an important source of
strength ?? has recently been challenged by the Communists (CIA
Wkly, 19 50). An the election is likely to be very close and
as Antonio Prlo, the brother of the president, is a relatively
was candidate, the denial of the vote to Communist Party members,
who support Autentico opponents, could assure a government victory.
On the other hand, if the Communist Party were outlawed at this tip,
there would be adverse publicity from both Communist and nom-Commr-
nist groups because the Autsntico Party -whose political maneuvers
are already unpopular - would be charged with using this anti-
Communist device for purely political purposes. For these reasons,,
believes that opposition to such a move among leading political
ers is likely to prevent action prior to the 1 June election,
5. VENF UELA: Relations with Cuba Strained
e one Between onezue and Cuba have become
strained as the result of a recently published article by a Cuban
government official criticizing the Venezuelan junta,. The Vene-
zuelan foreign minister has indicated that unless the Cuban govern-
ment presents satisfactory explanations and apologies for the
article by Cuban Director of Culture, Raul Roa appearing in the
34 May issue of Bohemia. The Venezuelan government may take such
reprisals as places n embargo on Cuban sugar and cancelling the
permits of Cubans presently in Venezuela. US Embassy Habana reports
that President Pr$o intends to curb unauthorized press statements
by Cuban public officials, While it appears likely that Cuba will
offer apologies, it is not certain that Venezuela will be satisfied.
The incident in itself appears of insufficient impor-
tance to be permitted to upset the relations of the two countries.
The incident is significant, however, in that it is symptomatic
of Venezuela's touchiness over continuing bad publicity abroad,
and concern over possible revolutionary activities of Accicn
Democratise elements in Cuba -- a fear recently pointed up by the
visit and search of a British flag tanker by a Venezuelan naval
vessel.on suspicion of carrying arms from Cuba to AD elements in
Venezuela. It is possible that the Venezuelan government hopes
indirectly, by making an issue of the article in Bohemia to per-
suade the Cuban government to be more energetic in its surveillance
of AD exiles in Cuba. 4
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Weekly Contributions
(CIA Working Paper)
21x-50
23 May 1950
6. BOLIVIA: Cbvermaent Survives Revolutions Rtts t
e government's ssmity remains precarious despite
its survival of the recent joint and PIR Communist revolu?
tionary attempt, which grew out of the teachers # strike and
subsequent general strike. The government survived because the
aray remained loyal during the violence - in which at least 100
persons were killed, Nevertheless, the general economic situation
is unfavorable and labor is restive so that future disturbances may
provide a favorable setting for other revolutionary attempts.
50
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Situation )h andum 2950
21-50 23 Lby 1950
The Current Situation in British tu3ana
(Summa The one event of political significance has been
t; a mpt to form a now leftist political party. The nomic situation has improved considerably. The militia and
colonial police force continue to be of no political or
military importance. No organized subversive movement is
known to exist in British role thofficial interest has
iBritish Guiana should
been expressed regarding
assume in any British West Indies federation which might
eventually be formed.
- Recent events in British Guiana have not affected
DS security interests in the area.)
Political
Tie on'Cy noteworthy political development in recent months has been
the initiation of moves toward the formation of a now leftist political
partly, Dr. Cheddi B. Jagan, prominent labor agitator with marked Com-
muniet sympathies, is the key figure in a current movement to form a
"People's Progressive Party", mhose avowed purpose is "to waken the
people of the colony to the need for constitutional reforms and greater
political rights". In contrast to the policy frequently followed by
is
Comunists of setting one racial group against another. this party long
trying to get Negroes and East Indians (two group
mistrusted and disliked each other) to work tither. Its platform
is not extremist, but rather sets forth a mildly socialist middle-of-
the-road program. It is true that Dr. Jagan has ambitious plans. Al-
though he eventually succeed in ginning some support from the ranks
of labor, estimates that no significant activity may be expected
from his party within the next few months.
Economic
economic situation has improved considerably during recent
Iffie- months, largely because the great increase in trade resulting from,
British devaluation has more than offset the expected adverse inflations
ary effects Wkly, 15 Nov 49). It is true that certain unfavorable
develo nts to have affected two of the colony's principal export
products. A reduced demand for bauxite from Canada, the principal imr-r
porter, has caused a out in production; and serious floods in the past
few months have resulted in the loss of the spring rice crop of some
5,000 tons. These unfavorable factors have been outweighed, however,
by the fact that production of sugar, by value the most important export,
continues at a high level and that the colony's dollar position has been
considerably improved by the increase in the amount of its exports to
the US in 1949.
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Situation Memorandum 29-50
21-50 -2- 23 May 1950
The economic outlook, in contrast to the situation six months ago,,
appears generally favorable at the present time. Although sugar pro-
ducers have voiced scum concern about the long-range prospects for the
industry as a result of the recent UK announcement of new trade arrange-
ments which will cow Into effect in 1952, no cutback in production may
be anticipated in the coming six' oath period. Furthermore, the current
unfavorable conditions for the other two principal exports, bauxite and
rice,, may be expected to improve since the trend toward reduced Canadian
demand for bauxite is not likely to be a lasting one., and since pros-
pects are favorable for a good rice crop in the fall. For these reasons,
it may be expected that commerce will continue at a high level during
coming months.
An additional development which may eventually be of benefit to
the economy is the recently announced comprehensive plan of the Colonial
Development Corporation for developing British Guiana Is timber resources.
The first phase of the operation, the erection of a large modern sawmill,,
is scheduled to take place within two years and, as exports expand,, the
fur-
Corporation will establish subsidiary industries for the making of
niture., plywood, veneer, prefabricated houses, and other wood products.
Up to the present time,, hovever, the CDC has been the object of con-
siderable criticism in the colony,, due to its pour handling of press
relations and its apparent unconcern about arousing local enthusiasm
for its project.
Mil
quasi-military colonial police and the militia - the latter
made up completely of local volunteers who hold short weekly meetings:
and undergo a brief camp training period each year - remain of no
political or military importance. (No British troops are stationed
in British Guiana and there is no regular military force in the colony.)
Subversive
No organized subversive movement is known to exist in British
Guiana, The two or three individuals in the colony who are either
Communists or fellow-travellers continue to try to grin support for
the Communist cause, but despite the considerable quantity of Commu-
nist literature which has been entering the colony of late,, their
efforts have met with little success. (See Political above.)
International
king 'crown colony, British Guiana does not administer its own
foreign relations. One matter touching on its international affairs.,
however,, has been the subject of much discussion in the colony - the
place it should hold in any federation which might eventually be formed
in the British West Indies. The recently published report of the
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Situation Memorandum 29-50
21m50 - 3 - 23 May 1950
"Standing Closer Association Coamnttteet', the organization which is
working on plans for such a federation, created a more favorable
impression than had been expected in British Guiana, since,, by
recamending the delegation of specific powers only to the federal
government, it helped allay fears that sparsely populated territories
like Guiana might be dominated by some of the larger Caribbean units.
Nevertheless, the majority of the colonyos people does not appear to
favor the idea of federation with the British West Indies. The emer-
gent East Indian community, which for years has sought to have its
superiority over the colonyos large Negro population recognized, fears
African preponderance in a federation of this type to such an extent
that those East Indiana who would like British Guiana to become part
of a larger unit favor federation with Trinidad only. Notwithstanding
all the discussion of federation, it is not probable that any signifi-
cant steps will be taken in this direction in the next nix months.
The people of British Guiana continue in general to be favorably
disposed toward the US.
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23 May 3"950
(Cla Working. Paper)
Situation Memorandum 30'-50
The Current Situation in Argentina
umma~ The government has become more `table. The
economic situation, aggravated ty the drought, remains un-
favorable. Government anti-Come unist activity continues.
The "third position" has boon reasserted as a bargaining
lever.
...:a US security interests are favored by improved
US-Argentine re3a tions, by improved prospects for ratifica-
tion of the Rio Treaty and by increased stability,)
Political
" t overnment stability has improveci moderately during the past three
months, It is true that a recent resurgence of major strike activity,
following several months of only the usual degree of labor unrest.,
demonstrated that the admicistretivn as not managed to control this
major potential threat to its stability. On the other hand, Periin's
position has improved perceptibly beoriuse of his evident success in
negotiations with the US. These negQ.tiati.ons are considered promising
by such powerful groups as the army, extreme nationalists,, and business
elements who see in them prospects for a solution to the financial lm-
passe that has undermined economic s-5abili.ty for over two years. Also.,
the favorable effects on stability r.,)sulting from safe Peronasta majori-
ties in the last elections before 1 3R 'were not offset b the slight
losses sustained in voting strength 'were not 4 Apr 50). The admninis- 25X1
tration, with increased confidence t:.ase on the improvement in its posi-
tion, has taken a number of measurei, which may further improve short-run
stability, These measures include -t.he adoption of a soxnwsavahat less gener-
ous labor policy as applied to government employees; stern disciplinary.
measures for Peronistas; a dvive to ,urge norraPeronistas from, jobs in
government and in nationalised indus,,ries; and a more severe application
of the "gag law".
I lestimates that the current trend toward improved stability will
cons ue or the next three months ai pr spects for settlement of finanrr
cial difficulties,and ~arrangernents. fcr expansion of trade progress,., a1-
though methods used to tsaintain thti;, inAreased stability such as infla-
tionary wage increases,, may pose protelems that would adversely affect
stability later,
Economic
T hi economic 4,;tuatlon remains tufavorable. Low productivity,, short
ages of vital ixwor-ss,; and inflation :,:ontinue; and looses f, the drought
have reduced potential foreign exchan ,e earnings needed for essential
imports. In the 'irmediate futurt, no !!:larked improvement in the economic
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Situation morandum 30-50
21-50 -2- 23 May 1950
situation can be expected as the effects of the present serious eco-
nomic dislocations will persist. The government's precarious financial
situation will be aggravated by increased financial requirements for
stimulating agricultural production and by a decline in revenue. The
Peron governments however, will be able to withstand the effects of
these economic dislocations during this period because of the added
support the administration will receive as the result of its success
in obtaining US financial aid, and because increasing confidence in
economic prospects will stimulate domestic business activity and
investment.
. Within a years however, prospects are good for considerable im-
provement, in the economic situations because of benefits expected from
US financial assistance and from economic reform measures in line with
US recondattons. The Export-Import Bank loan, to be applied to
Argentine commercial arrears, will aid in the reestablishment of
Argentine credit and will encourage an early flow to Argentina of
capital goods that would significantly alleviate the supply situation
and tend to counteract inflation. Important economic reform measures
taken by the Argentines to encourage and make the most of financial
assistance will also result in improvement. Among these reform meas-
ures are the belated raising of prices paid grain producers by 20 to
30 percent as an incentive to increased production, and several inr-
portant atepp to attract foreign capital (particularly from the US).
Included among the latter measures which favor US-Argentine economic
relations are 1) commitments to alleviate problems of US companies
operating in Argentina, 2) initiation of bilateral.air route negotia-
tions with the US, 3) mutual agreement to negotiate a double taxation
agreement, and 4) initiation of negotiations on a treaty of Friendship,
Commerce, and Economic Development.
itary
e small reduction in armor strength for reasons of econon has
not significantly affected army loyalty, Argentina's military position
in relation to its neighbors, or the armyes capabilities for maintain-
ing internal order.
The arm continues to be favorably disposed toward the US, largely
because of its desire for US equipment,, Most recent evidences of this
cordiality were manifest in expression of interest by three high-level
officers in ascertaining the US concept of the Argentine role in any
future conflict (in addition to providing meat and grains) and in the
reported mission of pro-US police chief, General Berto l.o, to decorate
General Eisenhower. V
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22:-50 - 3 .o
25 May 1950
Situation Memorandum 30-50
Subversive
bomffiw-ist Party of Argentina (CPA) continues to be restrained
T the grnntrs anti-Communist
prom
eluded closing of the CPA ls chief n' Repressive measures in-
or'gareiza~ttions, denial of voting newspapers suPr'essioa of two front
the prolonged detention of thr pr#~~8 In Celia Provinces. ,and
repression and vigorous party officials, Despite government
repo its capability Police surveillance, horov r, the CPA still
retai of its of fomenting labor unrest and disturbances by
virtue penetration of some large labor unions.
International
rt new expedient policy of "cordial franlrness" with the US
favors ahortmterm US security interests and tends to offset the effects
of a recent firm reassertion of Pe e "Wird of Argentine diplomatic overtures to the USSR io posit
and indications
porte Argentine
desires to imps O "still further frierelations". with d
USSR
probably represent an effort calculated strengthen Argenti~a'a
bargaining Position vie- the US9 as does the reassertion of the
third position on the international front. General
twee= the US and Argentina,engendered good
by tat
crataxry r o of State
Mi ller is visit to Argentiatay and Peron by
assurance to Kill that he
would uae his efforts to obtain full Argentine ratificationer
of the Rio
Treaty favor US interests in 8emisphere solidarity.
adherence to the tea position on technical assistance tosL Argentine
America
the extraordinary session of IA=ECOSOC, and designation of erica
AN Ambassador to the US as
UN ntj tend to Permanent Argentine delegate to the
Promote 3ntrau.R sphere harmonyr
foresees no immediate change in Argentina's
fore Zpolicy, highly opportunist
l;1
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Situation Memorandum 31-50
2150
23 May 1950
(Summary -- COAS approval and implementation of the recommendations
of its committee investigating the Caribbean situation was the most
important inter-American development of the past three months, The
Council'e action has had and will probably continue to have a salu-
tary effect on the countries involved A step forward in US economic
relations with the other American republics has resulted from the
accomplishments of the recent extraordinary cession of the IA-ECOS(C.
The ill feeling which has characterized relations between certain
Latin American nations has been mitigated but not eliminated. In
general, Latin America continues to support the US on the international
level, though there still remains some scepticism regarding those US
economic policies which appear to be less responsive to the needy of
the Western Hemisphere than to other parts of the world,
Inter-American solidarity continues to be strengthenedg
and if this trend can be sustained, the US security position in the
Hemisphere will be enhanced.)
i OAS ann~x rican treaties: The most significant inter-American
event a e pas ee mon s ryas a approval by the Council of the OAS
of its committee's report and recommendations concerning the Caribbean
situation Wkly, 18 April 50). The Council's prompt and decisive action
has had a lamary effect on the countries involved, and the high degree of
solidarity evident in the Council's voting has benefitted US security inter
ester, The "watch dog" com