With the war in the Chaco "ongoing", Bolivia has seen fit to begin upgrading its armed forces, especially since certain meddling powers whose name rhymes with "Funited Schtates of Lamerica" have decided to grant Paraguay weapons like "tanks".

Master-planning this entire operation, and now directing the logistical effort to support the troops, is disgraced German Nazi Karl-Otto Saur, previously head of German aerospace manufacturing efforts. As his testimony against German industrialists--for which he was granted immunity by the Americans--left him isolated and viewed as a traitor by any friends he might have had in Germany, he was more than happy to take up a job offer in Bolivia where he was just "that cool German dude". Besides, the Criollo-supremacist ethos of Bolivia appealed to Saur, as did the approach of just throwing more peasants at problems that couldn't be fixed.

Under the direction of our more clever army officers, Director-General Saur, and, of course, the Glorious President Hertzog himself, Bolivia has, despite attempts to sanction it, rearmed considerably over the past year with new, modern weapons. Goose-stepping on parade in La Paz, newly reorganized regiments rolled by on motorcycles and jeeps, armed with shiny new Swiss-made AK47 battle rifles, while new aircraft soared overhead. Ammunition problems have been relieved through both the acquisition of some ammunition from our partners as well as, of course, the construction of a new plant for the production of Mauser ammunition patterned from the Czech government, and we have a stockpile more than sufficient to launch a fresh campaign in the summer of 1948-49. The cavalry no longer uses horses--horses are just used for logistics, now, with the old cavalry regiments equipped with jeeps and motorcycles for their role of raiding and reconnaissance. If they charge the Paraguayans this time, they won't know what hit them.

Since early 1948, the Bolivian Army has also expanded, calling up fresh classes of conscripts to grow in size from around 20,000 to around 60,000 men. Admittedly, only around 15,000 of these 60,000 men are equipped with the various new armaments and sundries that Bolivia has acquired, with the rest still armed with what is left from the Chaco War. Still, given the simple numbers advantage--probably at least 2:1 over Paraguay in our estimation--we expect victory to be nearly assured, given the destruction of that nation's manpower and population.