DECLASSIFIED be possible for him to spend funds lavishly to obtain backing. Fortunately, the President is under no illusions on this score, and in his inaugural address he stated: My Government will not be one of brilliant achievements because circumstances place us in a frame of iron. The first problem which confronts the Republic is that of the bad fiscal situation. However, despite the fact that no Minister of Finance has yet been named, the President frankness about fiscal difficulties plus the knowledge that the group headed by Julio PEÑA is striving to bring some order out of chaos has in a measure attracted public confidence, It may be said, moreover, that, with the exception of that segment of public opinion which will be unalterably anti Picado no matter what the circumstances, the President first week in office has been favorably received. His inaugural adaress was moderate, frank, and factual.
His Cabinet nominations, by and large, are respected, although there is universal disappointment that Fernández Peralta could not be persuaded to retain the Ministry of Public Works. It has been announced that public expenses will be cut to the bone, and the leaves, other than for illness, of all Government employees have been cancelled. In Congress a bipartisan committee has been set up to study remedial measures for speculation, and it is stated that Congress will shortly proceed to revise the obviously inadequate electoral laws. The general impression is that the Government is setting to work in an energetic manner, and the public reaction. including even the Diario de Costa Rica generally is one of giving the President a chance to see what he can accomplish.
In the field of foreign relations it goes without saying that Picado Government can be counted on to cooperate to the best of its ability with the United States and the war effort. In the Central American sphere, however, all is not so simple, and the various dietators, especially Generals Ubico and Somoza, have been assured by René Picado that all traces of Communism will be eliminated from the Government here at an early date. Should the President, on the other hand, continue his entente cordiale with Mora, it can only be expected that relations with Nicaragua and Guatemala will deteriorate. Also, the announcement that Costa Rica and Russia would establish diplomatic relations cannot have been reassuring to Somoza and Ubico, and it is known that the appointment of don Julio ACOSTA as Foreign Minister was not pleasing to the dictators. It will be recalled that Guatemala did not send a representative to the inaugural ceremonies, and it is probable that the Presidents of both Panama and Nicaragua are somewhat piqued with Costa hica as a result of the unfortunate dispute over precedence at those ceremonies. Moreover, recent events in a Salvador have undoubtedly opened the eyes of the dictators to th Ossible to overthrow a strong man regime even if it equipment, and they will almost certainly look with less than approval upon an Administration so ideologically opposed to their own concepts.
Should, however, don René and his Rightist group gain ascendancy over Mora