Created: 4/19/1954

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J. H, A. Watron in hia latter to yoa dotedarchwhether the Agency considered the Ccnrnnist thrift moreHonduras than In Kl Salvador. Psranant lo youra-rthrrc

pron ansver to the question. It should be 'tent in mind, however, tbat oor answer lste tenant of opinion and does not mrport tooaclnaion vhlch we in fact are not mthcrirnd to draw*

Rondnras appears to nore Tolnornblo then El Pelvndar to thethreat at the pre Bent tine in view of the fact that tba presidential elootlon in Hcarhnree will take placn thin fall. Prior to Oetohorhedadnletra*lon allowed the Ccaeanxlata reletIrely free reign la rxnxhjraa. After that date,ook acre pooitlva notion, arrestlnp;ending Ccnrnnlsta, thereby causing othere to flee to Onateaelo. the activity that remains In rVardnras ls planned and directed by the Omtamnlan Cccasmiat Party. There ia alec reason to believe that the Goaterm Inn CoBnwmlrt Party provides financial and natorlal support to tho Horrhrran Party. The extent of thla aid la unknown, hevever.

A usually reliable source reported that Victor tfenosl ODTIERREZ and other leading Onatecalan Coar-onlnts exproered the general viewom o. action that wMle they deslrod the downfall ofnd ths Xatlcnallst Party, they had ne sywpstry for the Ubernl Party of nuataras. GUTIERREZ expressed the opinion thst if the GALVEZ administration were followedore liberal re-ine, .it wouldthe Ccansanlsta with an opportunity to Infiltrate tbe Hc<ndnran labor movement. In an attempt toore liberal governunnt

In Huinfuiaa, it la very likely that Consaxnlst activity, directed froa Gea taenia, will be Increased during the ccerlng election.

4* Resnlta oflelpal el aot lorn In tha fall3 tend to Indicate that the three leading political partloa. tha CARTAS Wing of the Ifctinnallat Party, the Reformist Wing of tha Ifetlonallst Pa rty, and the liberal Party) are fairly even la strength, although the CAHIA5 Ulng of the fctlonalist Partylight majority of votes ever the others. Altnoogh GA1VEZember of thn Reformist Wing of the Hatloanllst Party, It is not known If he vUl oomo out and book Rofornlet eejfdldates. There havo boon reports and

Indications that thereone Coarainist Infiltration of the Rafornlst Vlng, and that the lntter anyoalitlon with the Liberal Party in an attaint to defeat the CARTAS Wing. At thia tlae there le no conelnsivQon which to herediction of tbe ootoona of tha oleotion. However, if the CAR LAS ving is defeated, It arrearsara favorable climate will bo provided for Connuniat infiltration and .activity,

5. In regard toSalvador, President OS0RI0 hasolicy of positivelnat Co-smnista and Coatrunlat activity, and an long as ho rojaainn in powor, n. Salvador shonld not bo ain this respect.


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