REPRODUCED AT THE NATIONAL ARCHIVES. DECLASSIHED Authority, Stateletter Mhz fy WE, NARA Dato 2498 notably by consumption taxes, gasoline monopoly, cattle import tax and graduated taxes on income.
Political and Social.
No other Central American country approaches Costa Rica in the extent to which pure democracy and institutional government flourish. Elections are traditionally fair, and violent changes of government are uncommon, Free speech and a free press have been jealously protected.
Although political parties exist in Costa Rica, the elections center around the individuals and in this personalista atmosphere the voters customarily are spoken of as supporters of their particular candidate rather than of the party to which that candidate may belong.
President Ricardo Jiménez, who is 75 years old, is now in his third non consecutive term as Chief Magistrate of Costa Rica. When he became ill in 1933, it looked as though he had lost his grip upon the Congress and the country. Dissatisfaction with what was described as his vacillating conduct spread even among some of his oldest friends. However, his denunciation of the Central American Treaty and recognition of El Salvador, his approval of generous debtor legislation, and certain other acts, challenged the admiration of the country and won for him an increased majority in the Congress elected in February, 1934.
Prosident Jiménez is undoubtedly the most striking figure that Central America has had for many years. He has been referred to as a true Jeffersonian Democrat. Simple and direct in manner, he has shown unwavering faith in the ability of the Costa Rican people to govern themselves freely, His wisdom and courage have won the admiration and affection of the mass of the Costa Rican people to the point where their attitude. toward him is almost one of reverence. His apparently increasingly liberal tendencies are endearing him more to the masses, however, than to the capitalist class.
President Jiménez has shown a very friendly attitude toward the United States. On the other hand, he has not hesitated to disagree with us on matters which he considered of importance to Costa Rica and to Central. America. He declines to recognize the last Government of Adolfo Diaz in Nicaragua, which we regarded as entitled to recognition under the Central American Treaty, and which we had recognized. He also took the lead in denouncing the principle of non recognition of revolutionary governments, embodied in that treaty (and was the first Central American Executive to, recognize the Martinez Government. Costa Rica, with Chile, Uruguay and Argentina, is one of the four predominantly white countries of Latin America. Its people are for the most part descendants of Spanish farmers. They are inclined toward friendliness and moderation and are possessed of an intense pride in their race. The country has practically no army and it is its boast that it has more schools than soldiers and that in the portion of its budget devoted to public instruction, it ranks among the leading countries of the world. Due to its remarkably good educational system, much less illiteracy is found in Costa Rica than in most other Latin American Republics.
Costa Rica is the only country in Central America where Communists.
have been permitted to organize freely and function as a political party.
As a result, there are now two Communist deputies in Congress and the Municipal Government of San Jose, the capital, is Communist controlled.
There is Communist representation in several of the other city governments and a well edited weekly newspaper is published by the Party, During the past summer a strike of banana workers broke out under the leadership of prominent Communists, including the two Communist deputies.
The strike spread rapidly until the entire industry, which is practically localized in the Limon Province, was paralyzed. The United Fruit Company declined