 The Arévalo government also floated the idea of a Central American Federation , as being the only way that a democratic government could survive in the region . He approached several leaders of democratic Central American countries , but was rejected by all except Castañeda Castro , the president of El Salvador . The two leaders began talks to build a union , and set up several commissions to look into the issue . In late 1945 they announced the formation of the union , but the formalization of the process got delayed by internal troubles in both countries , and in 1948 the Castro government was toppled in a military coup led by Óscar Osorio . 
