OCR
MRS —— 7 a HC ET MET tt KKK — Xe o or INTELLIGENCE ROUNDUP. VIET NAM 3 ndications are increasing, that a large-scale offensive of the Vietminh forces should be expected in the early part of the sum= mer, probably in June. This offensive, while very powerful, will nevertheless have only a limited scope, aimed principally at improving the position of Vietminh and at laying the groundworks for future operations, The bulk of the operations will be in the Delta area, : Front, General Migueft Henriguez Guzmán, is seriously considering the possibility of gaining the power by an army pronunciamento in case that he should lose the 5th July elections. It is true that the Army is dissatisfied, since its budget of 300 Million Pesos is only fofth rating under the appropriations, behind edu= cation and communications, Nevertheless our observer feels that the majority of the armed forces is still loyal to the regime, and that Henriquez therefore would be foolhardy to try to get power by force, Nevertheless the governement circles are taking a serious view of the situation and are preparing for all eventuality. It should be pointed out again, that the Communist Party is now openly and fully supporting Henriquez. On the other hand i$ s real leader General Lazaro Cardenas has declared his neutrality. This double play - Lombardo Toledano sapporting Hen= riquez, Cardenas being "neutral" c is in the line with the direc= tives and has the following reasonse The Communists feel, that regardless of events, Cardenas mugi remain the master of the. strategically important state of Michoacane If Cardenas came ous openly and Henriguez' bid for power would fail, it would be more than likely that Cardenas would lose even Michonean. Hence his cautions | 3 whee