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PANAUA$U The Bureau's SI Offic. in Fanam ms olosed on Mly 3l, lo46, when it was determined thut the Cnitod States Mar Departmwnt would not agres te cur offieo orereising jurisdiction similar to that of our other Latin Kmrican Offices. During ths month of July thire wure no dovelopaents of a nature which should TARAGTA! ^ The FBI office in Asunoion, Paraguay was clesed on. Fobruary 3, 1947, and our last remmining ropreswatative raonlled S of that date. ll The Legal Attaohe in Agumcion, Pnraguay, furnished an qutstnding erample of politieal reperting in his prediotion of the Paraguayen Rovolutien of Ame ll, ls48, and his almat *hlow by blow" description of the davoloprmmts in that Rsvolutian. In addition to having prompt and socurate coverago, the Legul Attache in Aeunoion had the cnly mnns of eommmicatian to Hashington and ho transndtted messages for State,Har, and Navy As well as to the Bureau. Tht Logal Attacha ocntinued to kmey the Ambassador Intimately informs en the dovelopment of the revolu-- tionnry grouy which, at the present time, is waging a ciril war in F'araguay against the Korinigo Joveramnt. The Legal Attache. prediat d the revolution and Indicatod that it would taxe th. form of a civil wer but tho offics of the Legal Attaohe had bewn clossd prior to tha actual outbreak af hostilities in that tmhappy ooumtry. Tho otfise of ths Legal Attaehe also kept tho Anbassador inrormd of the antivitios of cortain portinont Paraguaynn exiles.A U Comrism Axoellent ceverege through informants and polioe liaison sowrees affordod tho Bareau and interested agenoios a striking piotwre of the tribulations of the Commist Party in Paraguay during its transition from deoy suppression through logality and back to strict illogality 1n a periad of months. 8 Z In Julylssswn found that a deeree of Presldent Morinigo guarantaoing freadnss of the preas hed Drought forth A deeislen of th Ministsr of Interior July sl ratified by the Counoil of sinisters Auyust 2, Is46, logalised tho Comrunist Party aad for a tiim aased our protlon cf obsorving its activities. Jruguny streamad baok into Aruncion and resuned operations..