March 12th, 1950

Asuncion

Chaves gave the provisional budget a look over. Ramon Paiva, the Finance Minister and a member of the old guard, sat next to the office window, staring towards the Bay of Asuncion. Adjustments had been made, debt somewhat assessed. The fact was that the government's finances were - it seemed - doing better than expected. While Morinigo had been something of an exorbitant spender, he had kept a tight enough ship to prevent bankruptcy. The primary problem was the excess of debt owed to the Central Bank and the perpetual phantom of the military budget. Bank repayments had been put on hold just after Morinigo's overthrow, and had remained as such for the last two years. While this had helped save some immediate money, the accrual of interest had expanded what was already an oversized due.

After some time with the rest of the Finance Ministry, as well as discussion with the Central Bank, Paiva had managed to come up with a provisional budget. The key to Paiva's plan was a cut to military pensions to officers whose income since retirement was in excess of their income prior to service by 25% or more. While it would not eliminate those pensions, it would withhold payment until such a time as those officers faced "serious financial hardship." While this would certainly ruffle some feathers, Paiva believed that it should not cause too much ruckus within active military personnel. The money saved from this process would be redirected in three ways:

1. Payment of Debts - Highest Priority
2. Expansion of National Police ( A measure aimed at bolstering the government's ability to fend off another coup )
3. Withholding any surplus to help control inflation - which had seen a serious uptick since the upheavals of 1947.

Chaves placed his signature. The missives would go out later today and offices would adjust accordingly.

Montevideo

Franco had sent the letters, telegrams, and made the calls. His Febreristas were already all confirmed and the Liberals - he knew - were soon to follow. Proper negotiations would be held in the coming weeks to plan their method of return, the particulars of the cabinet, and so forth.