Francia has consolidated his power by persuading the insecure Paraguayan elite that he is indispensable, but at the end of 1811, dissatisfied with the political role that military officers are beginning to play, he resigns from the junta.

From his retirement in his modest chacra (cottage or hut) at Ibaray, near Asuncion, he tells countless ordinary citizens who come to visit him that their revolution hass been betrayed, that the change in government has only traded a Spanish-born elite for a criollo one, and that the present government is incompetent and mismanaged.

In fact, the country is rapidly heading for a crisis.

Not only are the Portuguese threatening to overrun the northern frontiers, but Argentina has also practically closed the Rio de la Plata to Paraguayan commerce by levying taxes and seizing ships.

To make matters worse, the porteño government has agitated for Paraguayan military assistance against the Spanish in Uruguay and, disregarding the Treaty of October 11, for unification of Paraguay with Argentina.

The porteño government also informs the junta it wants to reopen talks.