DECLASStrito Authority Stateletter lahz ML, NARS Cate 2498 Negative Picado inescapably inherits certain legacies from the Calderón Guardia administration. a) the situation of the Treasury is critical. b) the corruption which has allegedly taken place should be exposed and despite the difficulty of the problem Picado will probably have to take some action. c) the country has followed the present campaign with repugnance and views the election of Picado as a colossal steal. a) Picado was placed in a false position by President Calderón Guardia during the campaign when the former was generally consid ered as merely a front or stalking horse to be, dealt with as the President wished.
The suggested appointment of Soto Harrison in the important post of Minister of Govornment is considered weak in view of his generally poor reputation for probity.
The plans mentioned by Picado contemplating the creation of domestic industries may stimulate the establishment of uneconomic production accompanied by an unsound policy of tariff protection, Picado relations, with the Vanguardia Party and Manuel Mora constitute a difficult feature of his administration; much will depend on his discretion and ability in handling this relationship Respeetfully yours, Fay Allen Butik Fay Allen Des Portes.
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