REPRODUCED AT THE NATIONAL ARCHIVES DECLASSIFIED Authority Stateletter Inhz By me NARS Date 249811 In at least one case, that of Spain, the policy adopted by the Administration has followed United States guidance to the detriment of the Government popularity. It will be remembered that Congress voted to request that the Government break relations with the Franco regime, the press has been unanimous in requesting the same thing, and in 1945 an anti Franco week was organized which was participated in by various groups throughout the country. Both the President and the Foreign Minister, however, have remained steadfast in their determination not to sever diplomatic relations until such time as the United States should do so.
Costa Rica relations with the other re publics of Central America have in general been good. although from time to time it has been rumored that the liberal tinge of the Picado Administration has proven particularly distasteful to the dictators of Honduras and Nicaragua. Costa Rica, of course, has always been particularly apprehensive of the superior strength of Nicaragua, and for that reason Picado has taken pains to do nothing to offend General Somoza although there is no doubt that the Somoza dictatorship is personally distasteful to the President. It should also be remembered that there are probably some forty thousand Nicaraguans resident in Costa Rica, and the Administration has from time to time shown nervousness over the possibility that the opposition would succeed in arming some of this element for use in a possible coup etat. The Administration, however, has been vigilant in this respect, and the danger of such a movement at the moment appears slight.
Respectfully yours, For the Ambassador: ng L2 Wed Llvingston Wat rous Third Secretary hutoa 800 LDWatrous:em