DECLASSTILU it is iot impossible that the opposition is deliberately spreading rumors of this nature in an effort to create confusion and consequent instability. It will be recalled that the Embassy has already reported the existence of a rumor in Honduras to the effect that the Governient here was to be overthrown, and it is understood that still another story has been circulating in Central America, the gist of which was that Picado was in serious difficulty and that he would therefore resign. third possibility is that such rumors are the natural reflection of unsettled conditions in Central America; should this be the case, the eventual reestablishment of order in the republics to the north will probably mean less uncertainty in the political field in Costa Rica.
Respectfully yours, suomarhule Walter Wash Chargé Affaires ad interim.
800 LDW:mc