WEEKLY CONTRIBUTIONS LATIN AMERICA DIVISION, ORE, CIA 20 DECEMBER 1949

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01090A000200040012-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: November 9, 2016
• Document Release Date: July 27, 1998
• Sequence Number: 12
• Publication Date: December 20, 1949
• Content Type: SUMMARY

1? Approved For ReleWe 1999/09/G=64000200040012-3
Upjay_e_mityA1021.,'
Latin Anerica Division, OBE, Ct
20 Dactaabor 1949
Two items aro or particular introot this week: that on increased
tension: in the Caribbean (p. 2), and thrxt, on the posenibility of ti:eable
in Ecuador (p. 3).
=MEM DEVELOITENTS
GENERAL: It is possible that the ciit diplonatie establislmente
in Latin America r.a7 chift their orien+atien tounra the Chinese Cenmu-
mist resims (p. 2).
NORTBERN AMA: Caribbean tension has been increased as tho result of
2baAican president Tru illo$s rertest for war ?overs ,. 2 . The
CENTRAL ARRA: EafisderIs government anticipates trouble from dissMent
ar* factions (P. 3)...
SOUTH-SRN AMA: In Argentina, the government is showing increasing cen-
corn over unemployment (p. 4). In Chlle,i /itical tension is increasing
Oa 4)
.SFECIM sVpasoTs
The Current Situation in Caletbia . . .
Tho Current Situation in Costa Rica . . 0
64 4 4- 6 ? 4
*
0 ? 0 ? 0 ? 4
DOCUMENT NO.
NO CHANGE iN CLASS.
11 DECLASS!FIED
CLASS. CHANGED TO: IS
NEXT REV!EW DATE:
UTH 4A`i .41)
DATE.A"frj FIEWEvVER; 372044
I_ I
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Weekly Contributions,? Dtiel
(CIA TierIcing Papere)
20 Doeerbor 1949
MIZGALs Eoesible &Int r.._?49?.242127,1m.3 ittizzat,
illiassaatip..mmastallaIelia.Arralm
Revarts rya' Civatene1a and Mexico:, as yell as from ?thee
gelato of the world, indicate that some Chine= diplomats in Latin
America have beam to orient theneelvee tovard Vet Comauniot regine
in Peiping. It appears that oinco about Augusta tho 16 Latin Ameri-
can diplonatic establielmonts of the Chineeo government have not keen
paid and that many of the personnel In these missions, except certein
Chiefs of Maslow, hope to bo taken into the rvice of the Peiping
regimea It. io possible that this regime may be incoespicuously to
support sone of the preoent Wationalist diplomatic establiohmente IZ
Latin America, eith the idea of establishing Comuniet tridae-heeae'
in these ecuntriee prior to rocognition.
2. DOM:WIGAN REPUBLIC: lagraaaaLlaaaiaaahLfaaataaxibtattaa
Trujillees latest move against anti-Trujillo
groupe in the Caribbean area -- hio 12 December request of the Iretber-
stamp" D ' can congress for authority to declare 'our tgainst any
country that permits entieliavjille activities eithin it territory --
is most probably a part of the intense propaganda campaign uaged ie
recent months by Trujillo and Samosa against the "democracies," whem
they accuse of plotting ageleat them. While it is poseible that
Trujillots action reflects aone concern over attacks frail other coen-
tries, lie military forces are considered sufficient to repel such
attacks, and no evidenco has been received that the Caribbean Legion
is planning to endortake military action in the iumediate future. It
is more likely that Trujillo's novo in designed to impress the Cuarn
and Guatemalan governments vith the posoibIe dangeva to them in bar-
boring exiled revolunionests, and to evoke US oppooitioa tc the Cella,-
bean Legion in order to prevent any ferther activity by revolutieeney
groups againa the Caribbean "dictatorshipc".
Cuba is very resentful of Trujillofs novo and has
launchedna propaganda counteroffensive against hem, To shoe that inva-
sion preparations aro not ender Ivey in Cuba, the Cuban Layer:meat last
reek invited the Inter-American Peace Connitteo to inveetiopte recent
chargeo about present preparations for a new invaoion attempt against
iteujillo, and the ratter VW taken up Decenbor /9 at a meting of the
I&PC. Cuba has aloe tbreateined to appeal to the OAS on the grounde
that Trujillos requeot for ear powers constitutes a throat to inter-
nationel peace.
The "democracies" are not the only countries that
have been reported aa plotting. Trern/o? for eeample, ieopoeten to
have been sending =me to Nicaragua for use against Guntemola; and
agents of Trujillo and Somoza have been reported ao woricann together
in obtaining erns abroad fcie uce of the plottere.
The total effect of these charges and countsecharges,
well-founded or not, hao been to increase intra-Caribbeen tension in
recent months to the detriaont of the US Interest in Hoots:here solidaritae
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COTat
Weekly Contributions; D/LA 20 Dec Io:' 1949
25A
lLa Wollsing Paper)
14 bA
5=- ECUADOR: AaUeZ42.:7.:.4111LIArA-19...laljf2,.2,011thrP:A
Goverment ala ' .or c2aim to have dicoovomd a wal-
organized group of civ: , ,-. -y to attack th,)
government at any timo, Any outbroe, :1-.!
expected to be initiotodIvoither thoflariscal Sucre Artillery Cp
or by the Vonosdoros infantry- Battsl:Lon? both static:led In ,laito, The
government, fully ararn of tIn situallon? is reportedly caTtain of t"to
loyalty of tho tail: unit stationed ilL QuIto and co confident of it;
ability qua' any rcvolt at no very boginning that the gavornmnt ilts
purposely assured the cippoaranco of tnawaeeness and unpreparodness in
order to procipitatc a showdevn. WIAo-Ltimatos that, while an anti-
government group has mcdo come progress in its pTeparations? it is
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Joiy 46tgritiDia001111
Contributions? OnA:e. 7,..417:,,9
(0"7, troxking Paper)
7,,
ritin tiet in a pOr.ltiOn to decivirt- actiea cuExtr f.
the goveraileatla ma?or...e73 of the '.:7,"`Ci.t1::.";10171. the
..i.o,yalty of certain Inporticat arrzr un:t zad offl.aers,
AlINT-711TA:
Certain recent moves by the ii,r1-1'exttins
cate that anticipation of Unanploraw:It limy have 7,-.;:scoile 43Z1
important Victor influencing, governmE.,nt econioDf4.?0
tiva goverment is contizming efforts toTTLIrds
rov-Isions In trade policy on hch n ha long T/11.1.,, 1.1fxr peftoem.
economic_L?1.?tability trAist depend (see 1:11.41 rTlay 6 riec 49),
restriction of imports -- vihioh f cded? 1?107.2:1(1 setlentio
increase Argontinat s f n1e caI -;p :r iLo
to guard aga.tellt unemployttent that. I7ould result Ircm th,)
of faroiga goods vrIth Ligh-coA do?tleE-titl prodmete,
have been =Lae to curtail public c.ree.lt. loans tx-?, -
have been sonewhat 1nm:eased, e,praroxtly to (tined, deatai-nc
activity ?Ind resultant unomploynent. Reportedly,. the (2.,,y,iii?E'.nne:a1:-=
also considering art extensive public-worke ia.7)e,erb oxiy
:cumber of une.oployod and to aid the ur:t. ccto oftin ,eco:norly. .?):t
time appears; that tho short-tern adv4:ntfltges of ft-,21 miployeKcit ars:,
being, given priority ova, lonf,?7,,term cbjectivos of is, eca,14.1.c.r. econoqr-,
ClIrLE I ia,TWX,R2T0112ciP.11...h..9.;,M7,;1412
Dissatisfaction -aith he Cotaalev; Vidola
vridospread, Minor apposition partix. crvf) ,,T,nclexioririu; to
overnvie coalition, and certain Milito:Ty- elements f.)..re
plotting to or'erthrew the gozrzetri;? A foes:. perecerithzi.- ::-Ln tLe
current anti-goverronont actietiert arpeaxa to be CecrLOS dB?
Campc,,, aspirant to the Presidney ii 1952? rho ic, ro; xi c-,ct,!ti
amon,g opposition groups ezid allegod.ly io contect vith. the eerrtepiag
military elements, The lattm, group. coivosed cLief.y of ai.Tieers ih
were forced into retirsrient ;tor their partieipati.on tho rabortive.
Novenbel, 3.91?'S plOti) i5 tllIg to ga,i.
armed forces to execute asuceeFs:f'.4.21 coup? Go7ernment avi:aerfi.ties
reported to be apprehensive- thout the situation !.,:nd rAre :keeping the
suspeetcd individuals tinder slzvoillt,,nce, Goatitlez hr,cam}:Elle,
is attempting to gain, mann pegui.e.z. 1-31:,,ppevt by poz_hing, eoalo nt
that he f (idle v.r111, alleviate the mrczent cooDroic., ::.?Ind by
striving for greater harmony 47traong tie ;:,,overnment c:11tfloa partiee ,
Desrpite the nttrour, reports of :tnerearing clfilloairtalit and
for a projected otii ad desr.ite /Mac, :EVt..)bdittit.) ir.C.27.OftEiO
1950: DILA believev thz:11; the Gon.7,613;.7:Vioia govwrorrb1'41's:raid be nte
to rainto.in itself in -Li OVICr.L- at, l'i..-CarYtt early
CONFEINMITIAk
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coW ED En IAL
Weekly Contributione; D/L.
(CIA Working Paper)
Situation LlozAorandloo 75-49
reaSurataULtanti ojaStambia
20 1)tooribe
(Qum= Tho Conservetivos have von an important victow
in the straggle botweon the to political parties for ocutaol
of the Colombian government. The ccoaomic eituation io aood
and should tend to improve politiCEl tability prozpooto?
The armed foroes remain loyal to tle governmont, Communist
influence remains alight. There have been= critical prob-
lems in Colombian foroiga rolationo.
-- It is as yet too oarly to estdoAtc the offnct on
US-Colombian relations of tho olection of Ieuovano C6moz to
the prosidency.)
The Conaervatives have won an impeotani; victory in tho otraggic
two= the two traditional political parties for control of the Colcolo)eon
government. Tho Liberal -sponsored law cdvancing the date of to pacoi-
dentia/ oloction Un3 followed by a wave cf violonce in which tho rrajoritY
of the victims wore Liborals., The Libeaal attp to .tiut impenobaont
proceedings against Conoervative President Capita woo it by the docaoration
of a stato of sioge? umder which CongreEo uas oucpcadod, W.boral nboontioa
from the polls and their call for passive rosiatancy on eloction wooR ood
were inefootive, soil the Conservative cooildate, Lourecto Ge:moo, ron olootoe,
peacefully on 27 Novembor (aec DAL 714,y 6 The 49), AUempte by tx..1 Lib
a1 to subvert tho rmod forces eevm to have boon givon a cleai:ft blo'a tv the
replacement on 1 Decomber of chiefe of Etafg of the Air Force oad Tho
one success of tho Liberal Party, to dale, ha a boon its obi:AV to mu:alto-in
its unity doopite Conservative attompts to coupe an opoa H000-or,2,
tho Liberal as a group aro not of a torpor to CEUCV oorielw ilicanveunee
to the govornment? and D/LA estimateo althou& sporatiftx v:iolence may
continue, there will be no outbreak of :revolutionary proportion ia the
near future.
raleneall
Colamb'lls economic situation is gcod and ohoold tad to ::Ilirmovo ;_x?:lit-
ieal stability prospects. Coffso produatiaa and pricoo are at on
high; there is a virtually uplimited nal-ko-:; for Colcribian =Mc, Ute
United States; and imported materiale art prodacto .3,70 IZOlattinay cheap in
comparison with coffoo. Despite contintod internal inglatioa,?the2nrrovo-
ment in terms of trade combined ulth rid import rostrictiolao f,s =I:Jested
to result in a balanciag of exteliaal pa5imen:'63 for the yoar. LiVams11 iwar-
tant-ecemonie pressure exoupo such as ba Coffee Fo,:ierailioa
devaluation of the poso,? Prepideut Opp:Ira ropeltzd to be def::,ziii.o.tz,
opposed, and, since Congress Trao easpen6ed under tho state of oaege? tho
President2s opinion is; for the tire being, docioivo.
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Approved For 16lease 1999/09/0?octyt-RDP791-14090A000200040012-3
$(81010ENTJAL
Weekly Contributienct? 3)/TA. - 2 20 DoitgAtf.'nr
(CIA Working Paper)
Sit cation ?Semoranaw.7, 73-10
So progress was made on amarding pet:oleam legislation during tho
roctItt congressional sossio7t; an that bodv Va5 entirokr occupied with
po31%ical matters, but a considerable portion of the prepost4 letals1W-1
is c.,--:tr.r..entig being rreparod for promulgation by presidential decTae,
favoTable prospects f'Or this 3ogisla4on in conjunctf.on with ct. possibly
significant mew oil discove:tT la i,bs DeTAL-ttinent of Tolinn have improvoti
the outlook for petroleun development in l'elomblett
&tout=
Communist infitaence in Cclonbia remains slight. Althoudh sme 007.1
nista were repozted7w affillatf'd with Lib.)ral Idefesso" groups in Boacit,
the Communist Party:, aa a 1.41o1e; has kept airgulerly fro? from ectenglenant
during the past thrce months of urtrone twasion? end has aonerelly avoido0
being implicated in cases ce political vi)lemm., In the o-;...-pectaktion timt
the election of Laureano CCIrmels wect7.4 mcam the outl.art ar their par;;y,
the Conmunists how mado propamtione for goLig usOmvGando There halw
been no Indications; howavel?, that the gotertment dortEi.? in foe% intr!t.i! te
takn apy strong maaatree agpSnst the Coit Party,
The armed forces ruoain loyal to tho Colorlian government end cor-holw
to be a stabilizing inflzence in the counlvy? As a :moult of tht h5g3A
gree or panties." trrtr.alkeT preceding tle presidontdal election tor,1
expectation of inorednate demands upon th CLitcry capacity to mairitan
the peace et election time? tho atrength f the =mei forces was inameasa
to 42000 as of .3.1. August (eompnrud with .1000 in guno):. and a further
increase of 10,000 vias reported2T planned for October (It lo %7ot kaam if
the second increase tccqc J.eports ttat the Libereis wire attenpnng
to subvert nilitery paroonpol aro ivan ems crodencoby. the fact, that.; In
the selection of conecrpts during the fa3.1? Liberal were conociort
careflally excluded. At present, key posilons are believed to b filled by
men rho Till support tho a&t.inistriltion.,, On 1 Deeenbar the chiefs atnff
of the 11:an- and Air Force wore replaced; :presumaill,y by non of urtqueet'lemed
loyalty and re1iebiaity4 DIU estimates '.,,hat tho 0e3.ontrian camel fcccos
will continue, to support the constituted ,Aatheritios,
tAit2=12742,1
There have boen no critical proUems in Colmblkn foreign relati,1,.1*
?during the yastt1r?rontha, Golmeials divergence from 175-12,pprovt0 gAn-
oiplos of isternational troth:, continues, se lo evidenced not 4)0;i by Colonbiego
efforts to incresso tariffs, but also by ':hs abortive attempts, to negatialce
barter aveemento with Frame; (tio.at Britait? Italy, awl Switzcv!..and,
friction bettroon the US and ColoLb.,,a,; obi,th had resul-:.,cd from ColanblrOs
violation of the Reciprocal Trade Agfeanent (4 the mposition of out.han:io
taxes) has, however, balin camimtod by t:le o0ficial torminntion of that
agrsommt? Colombiui relatf_olls tit-,h Peru have iaproved as a result of tho
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Approved For &Case 1999 P
MGEET
Weekly Contributioney
(Cat Working Paper)
Sit'rstion Memorandum 73-49 .
90A000200040012-3
20 December
oubmission of the Hva case to the internatiana Com o!
Jur..
on October.
Lnurenno Gdietio. ColoMbia2s presidont-e/eot bac pufblioly state&
he doos not intend to mtke ally radical changes in Colombian foreign pola
CONEFEDEVNAL
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Approved For kitase 1999
Weel7ly Contributiona, DILA
(CIA Working eaper)
Situation womezandum 74-19
90A000200040012-*
The Current Situation in Costa Rico,
?
. 20 rrecembee. 1.94e
q.esia272.--= The new Mate admiaistrztion should be relatively etet,Ile
in ooming months.. The economic eiteation remains unfavoratle, eee,
munist uotivity is inoreasing, but Communiem remains of minor _ra2p-n?
to.n.oe) The loyalty of the Civil Guard. Co the new adminietratien
has not yet been definitely established- Costa Rica's friendly
policy toward the 1J3 will remain uuehanged under the new el.ninste-
tion, and the new president will try to keep Costa Rica aloof frcy.
inter-Caribbean rivalries,
--eUS security interests have not been affected by reeeee
developments in Costa Rica.)
Political
lEv political situation in Costa Rica, where Otilia Ulate eau eneeeureted
as president and a ne7A constitution became effootive on 8 Novemlerv i2 ealm
at preeent. Ulate may eventually be expected to encounter oppenition, ehdch
will probably stem to a considerable degree from hie political oeponeee
among the former junta meibers. Iany of these have both an ideclogeet'l
drive and a desire for power and may eventually seek pouer or try to feeee
Ulate to aocedo to certain of their refoem measures, In ouch event.
and former Calderonistue would no doubt effer support to whicheeer of ;11e
two rival political factions they believe would best further their egee. fut,
the present time, however, Figueres and hie aseociatee are unpopuleee
has a solid popular bucking; and his party, the Natieee:,. Union karte-,
33 out of 15 seats in Congreee and contrele both the ereeutiva ead Aveellative
branches of the new administration Theeefero, it is expected that the preeie
dent's policies will encounter little re stance during the early pored of
his term and that his administration will be stable for at least, the ne7:t fea
menthe,
Economie
economic eituation remains unfavorable. . It io true that the everall
agriculturai produotivtty of the country is high, that world market cenditieno
continue to favor Costa Rican exports, aed that the value of epert in t nn
-
alk-time high. Costn, Rica however, has mere or loss chronic?finaneiei
problems which have been growing worse Ulate has appointed a teohniCI advi-
sory committee on economics wad finance vehich is eurrontly in the peoceee of,
formulating the adminietration'e financial policies, whioh are 1..JpotE,dto
include reduction of governmental expendaueee, reduction and strvieine of the
debte tightened exchange and import control., and rovieione in the ,;twtralt
banking eyetem 1)li4 estiatez thetv de3pit tho E16.2AnititIratio
efferte to improve the cowatry'u thor,5 will be 2') zbstem--
tiiai. improvement in coming mcathE
e4r2
KEIDEIVIAlk
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SONFVE
Weakly Contributions, D/LA
(CIA Working Papor)
Sittion Mamorsadum 74-49
- 2 -
090A000200040012-3
20 DecombeA- 1949
Subvarsive
ii
Communist activities hove increased in rent months but Comnis has
remained of minor importance locally. It is true that the Comulunsts
been increasingly outspoken in criticism of Figueroa and nate; that thy
havo organized a new womon's front Levemeat and a youth organiaatica; mnd
that they?looking toward the eventual r.elostablishment of a CommuAist
federation?are strengthening the Coni tor ci ne.1 Obrara for tiv; purpee
of regaining control over labor syndicates that wore-1..orm;.rly 4ffi1iate with
the Communist-dominated Confederation of Vforkers of Costa Rica (CTCR). There
also is some evidence that local Communists Kra attempting to iiiiprove tiz
working relationships wf:th Communists in neighboring countries, The Coluy.,,Auts
howevor, have not yet regained infiuonce in the labor movement; ti a Comrlunist
Party--11?1i2rdia Popular (also called liatioual Democratic Party)--4-as
allowed to preson a I saT of ;Auldido.t..08 olo
tJao ctn io of 2 October; and
o
tho party has been unable to organize effotively outside of the capit, It
is estimated, therefOre, that Communism will continuo to he of millor imartmoe
politically in Costa Rioa in the immediato futuro
Military
The loyalty of the Civil Guard to th6 nsa edministration has not yt
been definitely established, Thera has boon ao pparent reaction among the
rank and file to the resignation of Aquilos Bonilla and other top officoa of
tho Civil Guard and tho Ministry of Public TUlfare, (Soveral top offic
resigned to give Ulato a free hand in reoT:.ganizing military functions,
then. Bonilla resigned iia protest to. Ulate's evident intontioa to ocoopt
resignations and make further personnel changes.) Ulato ia reported to
making those personnel changes a* one stop toward improving thE. eficiany
and economical operation cf the Civil Gliaz-d As a further step, 'filo hae 2od
the chief of the US Military Mission in Costs, Rica to recommene. plaas aA
policies for the Civil Guard. Theae developments, if successful, may icz-ease
tho loyalty of the Cvil Gusrd to the nolY administration-
International
-----Trala-NTca's friendly. policy toward tho US, its atort of the US
East-West rivalries, and it participation in the UN sad the WS will not.
be materially affected by the changed administration, The new govonamot iS
expected. to ask for financial assistance from the US or the Intornationf:j
Bank and may also aak for revision* ia the trade INgrooment betwaoa the 1J5
Costa, Ric a In contrast to fomor junta 2rosident Figuoras, yho
Costa Rica definitely. on the side of the "democracies" in the Caribbean ar.,
the now president will probably endeavor to koap Costa Rica from -oackin the
Qaribboan Legion, or joiningicy roup likely to have a divisi-qv offset uo..
American oeliderity,
iCONFiDEP' 1AL
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