GUATEMALA -- CONTINUING ECONOMIC DIFFICULTIES; THE MARKET FOR GUATEMALAN COFFEE

Created: 11/30/1954

OCR scan of the original document, errors are possible

CENTRAL iHTILUMWce AftUKY

OFFICIAL ROUTING SLIP

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i concurrence

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FORi Tba L4 rector of Central IntalUganoa

eentlnolng ecmondc difficultleei

the Market for Guatemalan coffee.

e lengthy dlnouaeioned yewtarday with Celenel j. c. King andaaLn aoee detail wlui regard te the eon tinning ao ononis difficulties ln Oeatemals snd the iasbiUt/ to date en tba pert ef the Oovarnaant te realise sexrlnLant re una as te operate. One of tbe chief problaaa appears te arise free the fast thst Osatenalan eeffse haa net been nosing at all nUapparently sc one ef the rasulte afsiwo to be an ergsnlaedstrike" sgainst South snd Central Aaverloan ooffee generally.aa further informed thst this natter has been the subject of much eoneern end oonslderable dlaousslen Ln the ABA division ef the Stats Daper*aaert, where it haa been concluded that there la nothing that State eea do about this alseatlae. In fast, we have been asked by State te see east ue esa da elth eerteln Ana rl oan eoffee buyera to the ead tbat Guatemalan eoffee nay begin te neve la larger Quantities sgsla.

I told Messrs King and Seterllne that whereas we night be able to aenowpliah something along this line by dealing indirectly through sans of ear cleared contacts, etc.,lt did net aaaa to ae thst thla was ar. undertaking which wa should assume generally, and that It was much aora tha kind of thing that POA snd perhaps the Treasury, if net State, should interest theaselvea In doing. There la, or should ba, do partleular reason for eaoroay about the eenoara of tbe US Goieroaateteccnasda dlffleultles snd lt seams to as thst both FOA snd Treasury hare clear and direct intereate ln preactingwhloh would relieve this difficulty and st the aaaa tlaa tend to reaove or reduce raoulreojente for the use of US gore rowan tal funds to bolster tha Ouatwaalsn soonony.

I have the following two suggestions to moke to youi

a. the next neetlng of the UCB, or perhaps in Informal conversations wnlch you way havo with Governor ^taseen and/or acne of the Treasury people, you wight make reference to thle nattar, oailing attention to the obvious dability of taking

secret

whloh would cot coot the Molted States aovaroaentsnd which would tend to relievo tbe continuing Ouateaalan Mononao difficulties. hould think that Seoretary Bttaphrey, uho will shortly be returning froa the cniitandinha (Braail) conference, might be especially tuned up te take en thle job, and that with hia nenereuao so contact* be night wellaathing vith the coffee buying conzonity.

b. Tbat you give aone thought to tbe desirabilityonvaraation with your friend, Mr. Chris Senas, Chalreea of the National Planning Association, with whoa you had sensduring the pre-SUCCESS period. At that tine, Mr. Sonneeader in urging etrong action againet Guatemala, and Colonel ting aot with bin, at your request, in April ly$J, to receive information which Kr. Sonne thought would be of interest. Cer-reepondanea endof westing are attached. Toe. will also recall tbat during thia period end whan our Intereats vere oontrary to what they sre now, eeet tbe request ofonsiderable, although net very euoeeaafnl, effort te enlist the aooparatlensaaber of inportant DS coffee buyers. There waastare reason why this earlier approach should here been bandiedssure and diaeraat way than would be tba ease today, bat even so the thought haa ooourred te J. C. Hag and ayself that you night be willing toord with your friend, Mr. Sonne.

leoi r.CT

lec: H

FRIMKISHER Deputy Direotor (Tame)

Original document.

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