Crisis Delayed

Nearly a fortnight had passed since the U.S. State Department, much criticized and currently enduring a reorganization (see p. 16), prepared a damning allegation that Argentine and Nazi forces inspired the Bolivian revolutionary regime of President-Major Gualberto Villarroel (TIME, Jan. 17). Up to this week, the State Department held its fire. The official explanation: diplomatic communications with 18 Latin American countries were unusually slow.

In Bolivia itself, Jose Antonio Arze, leader of the leftist PIR (Partido de Izquierda Revolucionario), was still unjailed. Far from instigating a counterrevolution when he returned to La Paz from exile in Mexico, he seemed more interested in joining the Villarroel Government if it met his conditions. They were: assurance of civil liberties; fair elections; and removal of Fascist elements from the Cabinet. Thus housecleaned, the regime might yet meet U.S. requirements. If others were plotting revolt, their movements were well concealed.

From Peru came more evidence of the current of Fascist-tinged nationalism which is running through Latin America. The Peruvian Government announced the discovery of a revolutionary plot by pro-Nazi elements, "including Germans, and Japanese." They had planned to stage anti-Semitic riots on New Year's Eve, seize power during the confusion. Tipped off by "outside sources" (the State Department was suggested), the Government of President Manuel Prado arrested the plotters, planned to deport some of them.

In Argentina, the dominant "Colonels' Clique" clung to its typical Fascist state, apparently unworried by threats of a British-U.S. embargo against Argentine trade. Well-informed authorities in London and Latin America doubted that Britain would actually go very far on this road, suggested that her investments in Argentina (-L-387,000,000) were too great, her trade too important to jeopardize. There were other weapons than embargo. A U.S. threat to further arm Brazil and Chile might undermine the "Colonels' Clique." Large credits to set up competing industries in the same countries might frighten Argentine industrialists. Even so, the State Department, without assured British assistance, had reason to pause before taking any measures against Argentina.

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