WESTERN HEMISPHERE -- INCREASING DIFFICULTIES OF BOLVIAN MILITARY GOVERNMENT

Created: 5/14/1965

OCR scan of the original document, errors are possible

Western Hemisphere INCREASING DIFFICULTIES OF BOLIVIAN MILITARY GOVERNMENT

difficulties of Generil Rene Barrientos' militaryare intensifying as time passes and no solutions are found for Bolivia's acute political and economic problems. Barrlontoa' uncertain leadership glvas no assurance that prospecta foroon improve.

Barrientos* ambition to ruleopularly elected president has been an Important factor behind his government's Although well liked by most Bolivians, be has beento secure much support for his candidacy froa the political parties. Moreover, he isto give up the junta presidency donplto legalities requiring candidates to resign from publicayselections. esult of tbis impasse, Barrientoshis candidacy onpril but then moved last week to postpone Indefinitely the elections scheduled forctober. Barrlentos probably engineered theto gain tlae to conaider another strategy by which he mightonstitutional president. This Latest move has brought him under renewed criticism from most political artles, but bis general popu-arlty seems unaffected.

Bolivia's econoaic probl are closely tied to thesituation. When the junta first took power last November, it characterized itself aa an interim government and promised

sweeping economic reforms as welluick return to con-

How-

stltutional government. HWW-over, it soon discovered that It lacked the competence to cope effectively with complex economic problems.

The most inherited froi

pressing ofhe Paz reglae, Is tho ugly situationin Bolivia's vital tin-mining industry. The tin-mining areas are centers of extremo leftist and Communist influence which have not been controlled by any governmentoreover, COM IDOL, the statecorporation,is burdened with managerial irresponsibility as well as unruly labor, and is close to bankruptcy.

International deficit financing haa been obtained, but further asolatance Is ide-ranging refora of prosent mine labor practlcea which inordinatoly favor the minors at the expense ofproduction. All reforms have been strongly realated by the miners acting under their extremist

Is aware that be brought under ailltaryhat bis gov-lng to undertake on, but Is moving on because he la the minerstubbornare armed, fighters, and determined lead-

Pago 30

CURRENT INTELLIGENCE WEEKLY SUMMARY

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