As time passed, it became clear that Lozano Díaz had ambitions to replace the traditional parties with one that he controlled and could use to help prolong his hold on power. He reduced the Council of State to a consultative body, postponed elections, and set about forming his own party, the National Unity Party (Partido de Unidad Nacional--PUN). The activities of other parties were limited, and, in July 1956, Villeda Morales and other PLH leaders were suddenly arrested and flown into exile. A few weeks later, the government crushed an uprising by 400 troops in the capital. Public opinion, however, was becoming increasingly hostile to the president, and rumors of his imminent fall had begun to circulate.
Following the August 1956 uprising, Lozano Díaz's health began to deteriorate, but he clung stubbornly to power. Elections for the legislature in October were boycotted by most of the opposition, who charged that the process was openly rigged to favor the president's supporters. The results seemed to confirm this charge, as the PUN candidates were declared the winners of all fifty-six seats in the congress.