1940: Paraguay

Gen. Higinio Morínigo, Minister of War at the time of President José Félix Estigarribia's death in September 1940 and then chosen Provisional President, on Nov. 30, assumed full powers and established virtually a military dictatorship. Although he had agreed to hold elections within two months of the President's death, he later announced their postponement until February 1943 and his intention to stay in office until Aug. 15 of that year. The resignation Oct. 1 of four Cabinet members, all of the Liberal party, left the Army in control of the political situation. On Christmas morning 180 members of the Liberal Party were arrested on rumored charges, officially denied, of plotting to overthrow this military régime. Indications point clearly, however, to the tightening of Army control and the rising prominence of Lt. Col. Dimaso Sosa Valdés, Minister of the Interior.

Following the voluntary dissolution of Congress, President Estigarribia had himself assumed dictatorial powers in February, when what he termed a condition of 'anarchy' prevailed. There was at the time considerable political unrest, due, in part, to the problem of reincorporating the demobilized Chaco War veterans into civilian life. President Estigarribia was forceful and highly respected, and enjoyed wide popularity as commander of the Paraguayan troops in the Chaco War. At the time of his death he was undertaking a broad and liberal reconstruction program, with the aid of tariff, banking and engineering experts from the United States. He had, moreover, pushed the question of constitutional reform and had approved a new Constitution which, on Aug. 4, was submitted to a national plebiscite. In a manifesto to the nation he had declared that the new basic law followed the fundamental lines of the 1870 Constitution, which provided for a democratic, representative system of government, but that a new conception of democracy, social and economic, was now needed; hence, the government would keep control of the economic life of the Republic, at the same time guaranteeing an extensive list of civil liberties. From a social and economic view the new Constitution is said to be one of the most advanced in Latin America.

Paraguay has operated for nine years under a one-party system, the Congress including representatives of the Liberal Party alone. The chief opposition, the Colorados (known also as National Republicans), was not participating in political life when the present Congress was elected, and had announced its intention to boycott the elections, scheduled for February, which were never held.

A mixed Paraguayan-Bolivian boundary commission, authorized by the boundary treaty of 1938, has completed its task with the erection of a boundary marker at Esmeralda, thus finally liquidating the Chaco dispute.

The 100-mile Asunción-Villarica highway, undertaken with Export-Import Bank funds by a North American firm and to be completed in two years, was officially dedicated on Oct. 7. The new transportation routes should stimulate agricultural production.

On June 23 the President signed a decree ordering a drastic curtailment of the budget and setting up a Budgetary Commission, to be presided over by the Minister of Hacienda.