Created: 9/8/1954

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INSTRUCTIONS: Officer designation* thould ba'u.ted In tho column. UnoV eachine thould be drawn aaoti ihoot





MaiORAJOHM rORt Tbe Deputy Director of Centralconference with Kessrs Leddy and Mann.

fronodugust, aaaa eobject.

Attached hereto ie the original of Mr. Fsterllne's ntnarandum for tbe reoord based upon the aaaehich use reported ln pert in the referenceopyieh waa forn' shed to yea for your inforastlan andnt. Hr. geterline'e memorandum Is deeaed to be worth your reading since it fills out eertaln details onltted in ay earlier nenorandua and since lt makes even aore clear than was done ln ay namare aim the recognition on the part of the responsible State Departsent officials Just where "tbe ball. the State Department acknowledges its responsibility for policy determinations with regard to the situationuatcwals. This, of course, does not cut down our determination to be af all possible aasi stance and support te tba Department and to the iabasey, snd this wecontinue to do to the beet of our ability. Ve herotha taak force which you suggested for the purpose of following,ontinuous basis, ell new developments in the situation.

Please lot me knew If you have any additional comenta, ldean orai as to what we should do and how we should ba doing




ccr Director (Plans)


Orig.r. Esterline'sMr.r.DD/Bfy



Conferenoe with to* Hinirter Councilor of

eabessy, Ouatemala

PRISONS ATTHNl'INCi iiepartaent of State, Hr. Ttwoas MAHK,

Hr. HjrynoodCIA, Kr. Frank WISHER, Mr. Jacob ESTStLINE

l- Mr. Kayaondba officer in oharga of Contra! Aaerlcan Affairs for tho Departaent of Stata, ond Mr. Thoaes HAKN, tho now Minister Counaolor of Eabaaay, Ouatewala, aot with Hr. WISHZK and tho undersigned0 hours,, to dloouse ln dotal) the currant political crisis in Ouateaala. Hr. HalU waa particularly anxious to got tbe full benefit of CIA's lnf emotion and thinking on the orohlea ond to oowsoro Idoas on "what's to bo done ebout it-.

2* Kr.tho otogo for tho conference by reviewing

tho situation briefly up to tho tine of what bo refers to aoof gears" Massage in which ho advised CIA ooaponentaAmerica that the tine had arrived for then to pullpolicy, or near policy aat tors, and porait tho Lepertaentto take over the reins. Hr. MUMS stated to Mr. MAHHthoee stops ho had token to insure that Hr. HOLLAND,and others ln the Department wore definitely aware ofwhich had reverted to State by tho "change of Mr. LEOD* concurred with Mr. wisHKK'o ateteaents. emphasised to Messieurs MANS and LEDDT thst tho Agencyshirking from any responsibility, and that lt waa vary nuohof tho teaa, but that CIA oould serve tho teaa aoreIf lt sculled itself to those tasks for whioh lt ls Mr. HANK expressed his dallght for Hr.laarstatoaont of the Dspartaent-CIA rolationahip and saidwaa perhaps his greatest interest at tho aoaent. Hothat he wanted to be sure,hadow of"who Is ln the driver's seat" before he departsU. He further stated that hehave his Instructions in that respect ooaaltted tohis leaving here. Mr. MANX said, aa had Mr. WISHERthe Ointonalen proposition ia veryeaa operation,he wantedall present to know that he waa very

Much on tha teanj and, further, that he intended, during hloin Cuateaala, to coo;>crste with ua in every way .ossicle, as he knew ve woitld go with hi-.. ljiL'fc'i pointed out that thewas koenly evert of its new responsibilityisand that, in fact, they liac welccc-ec our propitious withdrawalolicy matters, giving then tho opportunityen back into their normal role.

llr. MASS continued by saying he wcs consioerably cU-.raed over recent devolorjcients on thecene cs reflected ln State and Atency cable traffic. He indicated that although he die not consider himself, b. sny means, fully briefed on the current situation, he did feel very strongly that the key to the entire situation is, and will continue to bo, the Guatemalan Army, which he defines, snd most properly so, as wi "institution'1, lie stated thst he felt the immediate Job was to forestall eii> untoward action onrt of CO-tLOVj. Came or GAS: Armas that rrttht preciei-tate action by thewhich. In turn, couidut" all advantages veined to date by the anti-Co-UfiJiiists. considerable discussion devoloreo aro.-nd this stete-itent end resulted in the followinv. poAntsneral agreement:

would te wise in the isswdiatt: future to attemptthe confidence of tho Kegulery makingthst it is notto bo costroyec asif there icwith the fo accotuiliah this, it wil2 bedemonstrate to the Officers- positive oliac ofoa sure s" which wereycc unuerss oaryeay officers shoulds7:ple of this is tha gentleof ColonelONan an abrupt dismissal.

It wasswo tliat ne be gradually vituirown froaul.lic eye andssigned toecer*biefron tne Central Arcerlcsn scene.

Liberationr.ias beas l- vell-fec;it forsixty cays or until the present crisis hasofr^aiilssticnounterto tireay andabortive efforts on itao remove ZJ-.f'liA.'li Ames.

'Jolted states Gevem-usnt sho-lc continue durin*,verEod to support CASTILLO Armas to tne affect

thet CORDOVA Cerna enjoys sufficient pocular support to take over successfully as the "Head of State". To accomplish this, the Department should take new and extremely vigorous action with both CGRDO.'A Corns and CASTILLO Armas to make them realize that the very survival of the antl-Coctnunist repiae is dependent upon their complete cooperation with each other. Thie task will. In all probability, fall to Ambassador PEURO'QX, who, Hr. LEDDY advised, has been extended in his post ss Ambassador until IS OctoberThe Ambassador's objectivos in this rcspeit will be to get CASTILLO Armas to divorce hinself frci such political "bad actors" as Jose GARCIAorder line Coanu-nist, and take firm and prompt action in implementing those promises he aade on his accession to power. CO!liX)VA Cerna, on tho other hand, will havo to te made realize thatactivity on hia pert ajainst CASTILLO Anus ie notounter-productive, but could well result in the loss of alx thetave fought for so long and so hard.

li. Hr. HAhl. and Hr. LKDDY opened ths discussion of tne "asyleo" problen. They stated that they weref tne fact that something must be done, and soon, to remove ex-President Jacobo ARBENZ and his Comounist friends from the various embassiesuatemala City ln which they havo taken refuse. WY stated that, as of the moment, progress on obtaining that objective had completely "bo^ed down". He mentionedhe Assistant Secretary of State for Latin American Affairs, mipht possibly see the rrosident of iiexico in the next ton days end attamot to "broak the lop Jem". He did stete, however, fiat ne and oliors wereure what disposition snould ba aaae of these iveoplo when they are removed. The various poseiMlitlos andof possiltliUes were discussed at length by all present. Several possible solutions which were discussed ore listed below in thoir approximate order of preference:

nd certain of his more unpalatableaser and Jaime KOSCtfiifXU, released toCo^ernraent end tried as wsr crininals. Itconcurred in, however, tlat tiie possibilitytills is rather ronote.

sale conauct to KdiuiZ and hisrineipslto Soviet Russia. Successful accom;>iisN:nentoperation wouldreet dealops^-endais not likely, however, that the Soviets wouldtheir unsuccessful friencs.


eefe conduct tc thoee in asylum to some spotIron Curtain. The chances of accomplishing thisbetter thannd b, above.

aafe co.-iduot to the aaylees to some oountryeons dietance from Central America.

aafe conduct to Mexico. This, of oourso, ls byleast desirable solution because It allows theto live in comparatively safe "proximity to Guatemala"

and to conspire against ths present government.

Mr. LusiX and Mr. MAIW indloated that they would again raise the Question of getting positive action on the above problem ln the near future. Tno solution of thet problem aay well be tho key to peaoe in Quateaala.

During the course of the Booting, Mr. MUM advisedthat he was departing for Guatemala on Friday, 3and that he sincerely hoped thatXN& wouldnot far behind hia. To that and, both Mr. MANSLtDfcl" aald they would be quite willing to take eny actionwithin their power to er*ed hie processing andOuateasla. They were informed thstJwould

be completed in the Agenoy during the next day end would bethrough channels to the Departmont, at whloh time, any pressure that could be orought to bear would bo greatly appreoiated.

6. The meeting terminated ot epprexi-ietelynd Mr. LSDJft and Mr. MASK aasurod Mr. WISMhH that thay would errsnge to meet with Mr. itOUaki) at the earliest or ortunity to discuss with him those policy matters which had been covered at tho eae ting. In addition, thay vould, with the Seoretary, prepare instructions to to forwarded to the Embassy for the guidance of the fcabaasy and our Agency representstive, where applicable.


Original document.

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