ffi^ANDOX FOSt Tho under Secretary of Central AmericaOuatonala
1. The following racent reporta concerning tha Central Aswrlcan situation are aubnltted for your information and consideration. The Bourooa of these reports have prorod reliable boforo and they conform to tha pattern established by othar sources. Hovavor some of the Information cannot, for obvious reasons, be checked aatlafactorlly.
The Guatemalan Government has racently stapped-up substantially its support of Cemaunlat and anti-American actlvitiea in other Central African countries as follows*
is reliably reported that ln northern Honduras ther* are nora than UO Comunlnt calls in existence, organised under Ouatemalan sporisar-ship.
Oeneral Pineda, Kinlster of War in ttondurae, ia allegod by source on tho Ouatemalan payroll and is reported to beonth froa the Ouateaalan Oxpvarnaent. In September hen cash In Ouatamela, ue are informed. (OCX knowa of no other evidence whichsupport the allegation that Oeneralighly respected old army man, is on the Ouatenalan payroll.)
In2 the Ouatemalan Qovernraont gave Presidential Candidate Flgueres of Coots0 caah, according to tho aame informant.
b. Thevernaent has beenich are not going to thelan amy bat which it is believed are being distributed to the secret forces described below.
e. Deputies to the foataaalan national Congress are to beanuary. Indications are that eoannniste will dominate tha Congress after ths elections becan so of their infiltration of all legal political parties. The new Deputies who take office in March will aake appointments to allin the Supreae and lower courts of the country.
d. The principal revolotionary pro up has been building its We are informed that this group has decided to strike not later3 with vhateror me me they have at their disposal. They arc convinced that if tha government of Ouateaala succeeds la its present plan to control both Congress and the courts the chances of eventually overthrowing that government will he very considerably reduced,
The government of Guatemala la reactingthe threat of revolution. It expect* any invasion toacross the Salvadoran frontier, and believes itsfor defense are to fell beck onthe govs ment no longer folly trusts the Amy, itthe davalopsentecret forceroken down into three separatethe Caribbeanoeaandedantosecond la ecentandroup ooaposed of Cubans and
t. The Costaan elections axe scheduled forigaeree, supported by tha Ouateaalan Goveraient, is reported tofaployeas in the Rofjistro Civil where all voters aust register. ontinuance of financial support froa Ouateaala reinforces his already strong position. According to recent reports. Ba tan court (the exiled leader of the Tenesoelan Accion Deeocratica leftist party) ess still being given shelter aad support by flgweres. (OCI notes that Figueres appears to be so strong politically at this tla* that there la no reason to be lie re that withdrawal of financial support by Guateeala, or the overthrow of tha Oeataraalaa Qovaiuaeut. would seriously affect Fi guarsa candidacy one way or the other.)
g. eliable source within the government of fl Salvador indicates that his country ia so concerned with the increasing domination of cceanunistp in Ouateaala and the extension of their activities to other Central Aaerlcan countries, that El Salvador
Isore against Quateaala In lata Doceabor or early January. We have not ascertained whether an overt move or covert support of Ouateaalan antl-Coraninlsts Is planned. Our source indicates that the principalupon such action is doubt aa to whether theould view it with favor.
e have heretofore advised you of the existence of arevolutionary group planning toresently Coawaunist infiltrated Guatemalan Government. In accordance with State Department ln at ructions, wo havo given no overt or covert assistance to thii group.
W1TBB B. SMITH Director
from : assistant Director, Current Intelligence
subjecTi Comment on3 (Centraluatemala)
It is difficult to evaluate this memorandum as much of the information on which it is based has not been made available to OCI.
Revolutionary plotting In Guatemala is chronic and has been intensified by growing alarm at the growth oi; Communist influence there. However, we havenformation to the effect that tbe opposition groups have overcomo their severe handicaps: issension among tho various groups;ack of sufficient arms and money touccessful attack on the government, likely;arge enough support within the armed forces.
In several cases the pieces of information cited in the memorandum seem questionable to OCI analysts whose more detailed comments are availableeparate memorandum.
HUNTINGTON D. SHELDON
Assistant Director, Current Intelligence
ppendix: Comments by OCI analysts on TS uatemala)
The following specific points in 3n the basis of information available to OCI analysts, to be open to some quostion:
knows of no other evidence which nfght support tho allegation that Generalighly respected old army man, is on the Guatemalan payroll.
Costa Rica: The statement that tho Guatemalan Government gaven September mavha baaed on reports that Guatemalan ex-Ifcrlign Minister Galichecret stop in Costa Rica on his return from Ecuador in September. Those reports have been seriously challenged by tho US Air Attache in Guatemala.
A consistent typographical error in the subject memorandum spells Figueres' name as Figueras.
The Costa Rlcan elections have now beenfrom may to Figueres appears to be so strong politically at this time that there Is no reason to believe that withdrawal of financial support by Guatemala or theof the Guatemalan Government would seriously affect Figueres1 candidacy ono way or tho other.