In 1946 Morínigo legalized political activity and formed a cabinet with the Febrerista Revolutionary Concentration and the Colorado Party.

The Communist Party became increasingly active, organizing rural peasants and workers and pushing for agrarian reform.

Meanwhile, the United States began a campaign to combat communism throughout the Americas, which included supporting right-wing governments and political movements.

As a result, the U.S. backed Juan Natalicio Gonzalez, a wealthy landowner and political ally, in leading the 1947 coup against President Morinigo.

[citation needed] On April 27 the navy joined the rebellion and shelled Asunción; they were fought off by the artillery division that had come from Paraguarí, commanded by Gen. Alfredo Stroessner.