The era of the New Liberals, as Estigarribia's supporters were called, came to a sudden end in September 1940, when the president died in an airplane crash. Hoping to control the government through a more malleable military man, the "Old Liberal" cabinet named War Minister Higinio Morínigo president. Morínigo had gained fame in Paraguay by heading the 1936 expedition to Cerro Corá to retrieve López's remains. The apparently genial Morínigo soon proved himself a shrewd politician with a mind of his own, and the Liberals resigned within a few weeks when they realized that they would not be able to impose their will on him. Having inherited Estigarribia's dictatorial powers, Morínigo quickly banned both Febreristas and Liberals and clamped down drastically on free speech and individual liberties. A nonparty dictator without a large body of supporters, Morínigo survived politically--despite the numerous plots against him--because of his astute handling of an influential group of young military officers who held key positions of power.

The outbreak of World War II eased Morínigo's task of ruling Paraguay and keeping the army happy because it stimulated demand for Paraguayan export products--such as meat, hides, and cotton-- and boosted the country's export earnings. More important, United States policy toward Latin America at this time made Paraguay eligible for major economic assistance. A surge of German influence in the region and Argentina's pro-Axis leanings alarmed the United States, which sought to wean Paraguay away from German and Argentine solicitation. At the same time, the United States sought to enhance its presence in the region and pursued close cooperation with Brazil, Argentina's traditional rival. To this end, the United States provided to Paraguay sizable amounts of funds and supplies under the Lend-Lease Agreement, provided loans for public works, and gave technical assistance in agriculture and health care. The United States Department of State approved of closer ties between Brazil and Paraguay and especially supported Brazil's offer to finance a road project designed to reduce Paraguay's dependence on Argentina.

Much to the displeasure of the United States and Britain, Morínigo refused to act against German economic and diplomatic interests until the end of the war. German agents had successfully converted many Paraguayans to the Axis cause. South America's first Nazi Party branch had been founded in Paraguay in 1931. German immigrant schools, churches, hospitals, farmers' cooperatives, youth groups, and charitable societies became active Axis backers. All of those organizations prominently displayed swastikas and portraits of Adolf Hitler.

It is no exaggeration to say that Morínigo headed a pro-Axis regime. Large numbers of Paraguayan military officers and government officials were openly sympathetic to the Axis. Among these officials was the national police chief, who named his son Adolfo Hirohito after the leading Axis personalities. By 1941 the official newspaper, El País, had adopted an overtly proGerman stance. At the same time, the government strictly controlled pro-Allied labor unions. Police cadets wore swastikas and Italian insignia on their uniforms. The December 1941 Japanese attack on Pearl Harbor and Germany's declaration of war against the United States gave the United States the leverage it needed, however, to force Morínigo to commit himself publicly to the Allied cause. Morínigo officially severed diplomatic relations with the Axis countries in 1942, although he did not declare war against Germany until February 1945. Nonetheless, Morínigo continued to maintain close relations with the heavily German-influenced Argentine military throughout the war and provided a haven for Axis spies and agents.

United States protests over German and Argentine activities in Paraguay fell on deaf ears. While the United States defined its interests in terms of resisting the fascist threat, Paraguayan officials believed their interests lay in economic expediency and were reluctant to antagonize Germany until the outcome of the war was no longer in doubt. Many Paraguayans believed Germany was no more of a threat to Paraguay's sovereignty than the United States.

The Allied victory convinced Morínigo to liberalize his regime. Paraguay experienced a brief democratic opening as Morínigo relaxed restrictions on free speech, allowed political exiles to return, and formed a coalition government. Morínigo's intentions about stepping down were murky, however, and his de facto alliance with Colorado Party hardliners and their thuggish Guión Rojo (red script) paramilitary group antagonized the opposition. The result was a failed coup d'état in December 1946 and full-scale civil war in March 1947.

Led by Colonel Rafael Franco, the revolutionaries were an unlikely coalition of Febreristas, Liberals, and communists, united only in their desire to overthrow Morínigo. The Colorados helped Morínigo crush the insurgency, but the man who saved Morínigo's government during crucial battles was the commander of the General Brúgez Artillery Regiment, Lieutenant Colonel Alfredo Stroessner Mattiauda. When a revolt at the Asunción Navy Yard put a strategic working-class neighborhood in rebel hands, Stroessner's regiment quickly reduced the area to rubble. When rebel gunboats threatened to dash upriver from Argentina to bombard the capital into submission, Stroessner's forces battled furiously and knocked them out of commission.

By the end of the rebellion in August, a single party--one that had been out of power since 1904--had almost total control in Paraguay. The fighting had simplified politics by eliminating all parties except the Colorados and by reducing the size of the army. Because nearly four-fifths of the officer corps had joined the rebels, fewer individuals were now in a position to compete for power. As had often happened in the past, however, the Colorados split into rival factions. The hardline guionistas, headed by the fiery left-leaning nationalist writer and publisher Natalício González, opposed democratic practices. The moderate democráticos, led by Federico Chaves, favored free elections and a power-sharing arrangement with the other parties. With Morínigo's backing, González used the Guión Rojo to cow the moderates and gain his party's presidential nomination. In the Paraguayan tradition, he ran unopposed in the long-promised 1948 elections. Suspecting that Morínigo would not relinquish power to González, a group of Colorado military officers, including Stroessner, removed Morínigo from office. González joined Morínigo in exile early in 1949, and Chaves became president in 1950 as the military finally allowed power to pass to the democráticos.

Paraguayan politics had come full-circle in a certain sense. The Chaco War had sparked the February revolution, which, in turn, sounded the death knell of the Liberal state and ushered in a revival of Paraguayan nationalism along with a reverence for the dictatorial past. The result was the constitution of 1940, which returned to the executive the power that the Liberals had stripped away. When a brief flirtation with democracy became a civil war after World War II, the Colorados, the party of the Lopiztas, were again running Paraguay. In the interim, the influence of the armed forces had increased dramatically. Since the end of the Chaco War, no Paraguayan government has held power without the consent of the army. Morínigo maintained order by severely restricting individual liberties but created a political vacuum. When he tried to fill it with the Colorado Party, he split the party in two, and neither faction could establish itself in power without help from the military. The institution of one-party rule, the establishment of order at the expense of political liberty, and the acceptance of the army's role of final political arbiter created the conditions that encouraged the emergence of the Stroessner regime.

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Source: U.S. Library of Congress