CEULASSInto Authority Statele teruhr Ei me NARA Date 2498 be EMBASSY OF THE UNITED STATES OF AMERICA LE WB San José, Costa Riga No. 1769 yle: August 14, 19415 Mion to Subject: 21 Political situation: Administration Settlement of Dispute be hatt tween Coffee Growers and Laborers; Interview with President Picado; his Rem lations with Manuel Mora and the Opposition.
SHOLLYON SONO SECRET The Honorable The Secretary of State, Washington, Sir: 18. 00 1444 With reference to the Embassy secret despatch No. 1716 of July 31 concerning the difficulties facing the present Administrations have the honor to report that President Picado appears to have settled the question of fixing minimum wages for coffee worker without alienating either Capital or Labor. He has also made headway toward achieving an equitable compromise on the proposed tobacco law, and on the basis of these events it may be said that the Administration is slowly consolidating its position.
As reported in my despatch No. 1767 of August 12, 1944, the long awaited executive decree fixing minimum wages for agricultural workers was published on August ll. As predicted in the Embassyis despatch No. 1716, the decree established minimum wage rates varying, according to region, from thirty five to fi hour for unskilled labor, with the rates for skilled labor slightly higher. While accurate figures concerning the previous wage rates in all regions do not exist, it would appear that the wages established are in many cases not much higher than previously paid, and in some cases the rate is identical. Although public opinion on the issue has as yet not fully crystalized, it would seem at present as if the President had been successful in settling this troublesome and basic problem in a manner calculated not to cost him support from either Right or Left.
It is felt that the majority of the coffee growers will accept the decree as just, although there is a faction which can be relied upon to oppose any measure tending to better the position of Labor.
Sr. Manuel Francisco JIMENEZ, however, is said to have supported IF the Confidential File