DECLASSIFIED REPRODUCED AT THE NATIONAL ARCHIVES Authority State Letter Whz By Me NARS Date 2498 Congress for several months and had the support of a part of both the opposition and of Picado own following, as well as unqualified acceptance on the part of the Vanguardia Popular Party. The Calderonista bloc, however, saw in the measure a definite threat to its ability to control both the congressional and coming presidential elections, and for that reason delayed its passage by the offering of many amendments until it was too late to have the new legislation operative for the February elections of this year. The law is now in final shape, however, and will presuma bly be in force for the coming presidential election. By his sponsorship of the se two reform measures the President has succeeded in convincing many persons that he, at least, is sincere in his declarations that he is seeking to attain better Government.
Various other projects which were included in the common electoral platform of the National Republican and Vanguardia Popular parties have not had a similar measure of success, in Congress. Despite constant pressure by Mora and his group Congress has so far failed to take action on the various agricultural and agrarian proposals advocated. more liberal banking policy as well as reform of the tariff schedules were also promised by the Bloque de la Victoria, but as yet no in these fields. nor has the project for the establishment of civil service in Costa Rica been acted upon.
Manuel Mora has told the writer that he is optimistic about the prospects for passage of progressive legislation in the new Congress. In this connection he doubtless feels that the important position enjoyed by the Vanguardista bloc in Congress will enable him by a series of trades to accomplish much that has so far been left undone. It seems to the Embassy, however, that the distribution of seats in the Congress is such that a slight regrouping of forces on any specific issue would be sufficient to cause its defeat. As long as the President, the Calderón Guardias, and Mora work in harmony the chances for passing Government sponsored legislation is good, but should the solidarity of this alliance be broken for personal, political or any other reasons a virtual deadlock is liable to result.
INTERNATIONAL The attitude of the Picado Government towards the United States has been from the beginning one of complete cooperation.
Both President Picado and Foreign Minister Acosta have time and time again reiterated that the basis of the Administration foreign policy is to follow the exclusive lead of the United States. Such has proven to be the case in many instances, notably at both the Chapultepec and San Francisco Conferences,