A PARAGUAY DECREE.

Auckland Star, Volume LXVII, Issue 136, 10 June 1936, Page 13

A PARAGUAY DECREE.

FOOD PRICES FIXED.

BIRTH OF SOCIALISM, i . ASUXCION, Paraguay. The Paraguayan Government made public a deerce whereby it will rigidly supervise production and prices of foodstuff's and otlier articles of- basic necessity. The decree also authorises-nation-alisation of industries that make the products directly affecting the necessities of the people. Government newspapers declared the decree "represents the birth of a. Socialist State in Paraguay, opening a wide path for the process of national liberation in conformance with the antiimperialistic sense of the February revolution." By the new measure President Rafael Franco—who assumed office after President Eusebio Ayala and his regime were ousted by the February revolt—applied to a largo part of Paraguay's productive commercial activity his totalitarian decree of March 11. Under that declaration the revolution and the State were called identical, independent political activities were banned for one year, and the Government "was named the supreme arbiter of social and commercial activities of this pastoral nation with its 1,000,000 inhabitants. The new decree not only established control of prices of food and other necessities throughout the nation, but also empowered banks and various Ministries to monopolise export products and to fix maximum prices. A board is established to set and supervise prices and production. Upon the decisions of this organisation will depend the scope of the new decree and its effect on foreign interests, most of which are engaged in the production of tannin and meat products for export.