OCR Output

Tad edt

XeAel2e November 52

- page two ¬

vital question, as far as the United States are concerned. Their tim
importahitons come from two main sources: Bolivia and South-East

Asia, With the communist threat in the latter countries, the

United States cannot afford losing control over the Bolivian
productions

With such huge interests involved, it is but logical to
hear from all oteervers in Bolivia that the general situation and
the position of the government is far from settled.

From an economic and financial point of view, conditions in Bolivia
are most difficult: the government is short in cash, the dollar is
very expensiveg, foreign curreney needed for import is not given,
except for certain friends of the regime, Even meat and butter are
very difficult to find.
Politically speaking, Bolivia is torn between opposing outside
pressures and between fractions which, even inside the govermment,
represent fundamentally different tendenciese

Within Paz Estenssoro's goverrment, there is an all out right wing:
menwho have nationalistic aims in view, but want them realized on 4
a Christian basis. One of these is the Minister of Finances,
Guttierez Garnier who - backed by the majority of the government
members = supports a policy of nationalization, but not without

due compensations

On the other side are the left-wing,of the MNR, supported by the
labor unions. Although there is no legally admitted communistic party
in Bolivia, labor union leaders do not hide their communistic
sympathies and inspirations. The participation of two of their
representatives - Mining Minister Lechin and Labor Minister Butron ¬
in the govermembh itself gives labor unions a strong position in the
countryeese This is an important point to be watbhed: communists have
no legal action of their own, but they have infiltrated in the wider
national front and thus - under present circumstances - carry a much
wider action than they could otherwise. Above all, they try to
infhuence policies in a sense that would be harmful to US interests.
Against thé protest of more moderate members in the government, it
was the Bolivian Labor Central that demanded that no indemnification
pe given to the owners of nationalized tin mines, It is also the
force that opposes the poliegxes of the Finanee Minister, who wants ¬
in the economic interest of the country - to maintain the commercial
ties and the exportation towards the United States and Great Britain.

This deep-seated opposition does not remain within the
govermment or betweeen government and Labor Unions alone. There are
evident signs of unrest among Army officers, who, in Latin America,
have always deciséve influence in public life and in possible forfée¬
ful changes of regime.

Bolivia is thus opened to whatever sudden changes and coups
might oceure It will be of utter importance to watch who Will remain
the victor on the battle fields the US influences backing a “democra¬
tic govermment" and fighting Paz Estenssoro, or nationalésm
represented by the actual President and his close alliance with the
Argentine regime, The fate of Peronsim depends of the atcome of this
vital struggle apound the control of Bolivia, the “barometer" of
Latin America,

The other point to watch is the settling of the problem of compensat:

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