DECLASSIDEO Authority Stateletter uhez B: ML, 24 981 Yesterday, in conversation with Francisco Calderón Guardia, he remarked that he was in continual touch with Señor Mora and that he planned to continue to see Mora frequently in the future. The only comment he made on Mora views concerning the present situation was to the effect that Mora believed the Government here should take more energetic action to stimulate production. Don Francisco thought that one concrete step that should be taken along this line was the accumulation of funds with which land could be purchased and given to under privileged persons who were now without any means of livelihood. He pointed out that, in his view, it was poor policy to send colonists to remote, undeveloped regions of the country; they should rather be established on land in the meseta central, purchased in the manner above indicated.
The course of my conversation with don Francisco and the nature of the plan he outlined indicate that the Calderón Guardias and Mora are cooperating closely in an endeavor to have the so called program of social improvement move at a faster tempo. As the Embassy has suggested in previous reports, this is a logical development and if President Picado does gradually pull away from the Vanguardia Party it would almost certainly result in a closer alignment of the Calderón Guardia and Vanguardia groups.
Persons here who are hoping that President Picado will follow this course of action were somewhat disturbed this morning to read remarks made by the President yesterday before a group of workmen of the Pacific Railroad.
There is enclosed herewith a clipping giving his remarks as they appeared in this mornings LA TRIBUNA. It will be observed that he expresses great faith in the Costa Rican labor movement and in its leaders and promises that it will be one of the leading movements in America when he leaves the Presidency. He appealed tor a spirit of harmony between the foremen and the workers on the railroad as befitting a social class which is called upon to play a decisive and historic role in the task of forming a new Costa Rica. He concluded by praising the present Administrator of the Railroad, don Próspero Guardia, the uncle of ex President Calderón Guardia.
While the President remarks seem fairly moderate, they were interpreted in some quarters as too pro labor and even reflecting Mora influence. Furthermore, his praise of Señor Guardia made a poor impression, since the country at large would be glad to see the latter relieved of his position as Administrator inasmuch as his close relationship to the ex President and suspicion as to his competence and honesty in directing the Pacific Railroad make him an unpopular figure. President Picado perhaps would like to get rid of don Prospero, but may be deterred in so doing by a desire not to place further strain at this time on his relations with the Calderon Guardias.
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