CABLE TO DIRECTOR FROM GUATEMALA CITY RE GUATEMALA 1954 COUP

Created: 8/28/1954

OCR scan of the original document, errors are possible

CIA HISTORICAL REVIEW PROGRAM

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HAVE HELD FURTHER SERIES CW^KSATUNi kI th CONTACTS THIS SITUATION AND FOLLOWING IS REIRUK INFO OBTAINED.

t. POLITICAL SITUATION CONTINUES TO flOHSENP*0dA6ILITV THAT GROUPS ItEfiJLAR ARMY WILL SOJN ATTEMPT COUP OR WHEN AND IF CADETS PARTICIPATING litPRISING ARE SENTENCED UY COUfiT MARTIAL.

& REFUSED to DEPART on SCHEDULED TRIP OUTSIDE

BSBU'INT PRIOR TOEND >TROKS INDICATIONS HE CuMPIRtttiARMY ELEMENTS AGAINST CALLIGERIS. IF SOMOVEMENTBE LAUNOIltD

i IvILi; NIGHTUG BUT NO

SATISFACTORY WORKING AGREEMENT REACHED. ACCORDING TU

E3GA1N, CALLIGERIS does NOT CONSIDER ATIOH

ESSENTIAL SUT TO CONTRARY iS CLOSEL> wOnKING WITH JOrtJE GARCIA GRAM ADOS IN PLANS FOR OIL DEVeLOPftCNT PETE* REGIME.

JOHMNGUGELIEVES IMPOSSIBLE

fl

T

&TOfESSAGE

UGUST 54 8) PAGE 2

REACH SERIOUS RMNtttlMQ AGREEMENT WITH CALLIGERIS SINCEPROMISES CARRYBUT NEVER DOES SO.

5.CALLIGERIS WOULD BALK

SHlP IN JUNTA.

CALLIGERIS THROUGH ESGAIN ADVISED BANNISTER HE DESIROUS

REMOVINGJUNTA 3UT OESIRES REMAIN AS SOLE HEAD OF GOVT.

INSISTENT RUMORS THAT DISHONESTY APPEARING IN GOVT

I HANDLING OF FJNDS.

>i SGAIN, AND ZPSEttANTIC ADVISED THAT

CALLIGERIS HAD COLLECTED MORE0 FOR AID TO ARUY OF L'BERATIOH BUT THESE FUNDS HAVE BEEN SPENT OU OTHER "CONFIDENTIAL" MATTERS. FUNDS EARMARKED BY ARBENZ GOVT FOR CONGRESSIONAL EXPENDITURE HAVE ALSO BEEN SPENT FOR INTELLIGENCE ACTIVITIES BY CAULI6ERI8*

ESOAIH REPORT CALLIGERU KEEPS LARGEHIS POSSESSION WHICH HE USES IN EFFOriT BUY SUPPORT.

UG CALLIGERIS THROUGH ESGAIN REQUESTEDBANNJSTER FOR LIBERATION ARiuY AND NECESSARYREPLIED HE UNDERSTOOD WSflUrtNT JOVT HASIN PBPRIME BANKS. ONUG CALLIGERIS REPEATED HISESGAIN. BANNISTER ADVISED THAT HE HAD NO FUNDS BUTCALLIGERIS REQUEST.

UGUST 54

8T6)

PAGE 3

11. RETSttTmHE IT KNOWN THAT ARdY OF LIBERATION HEU8ERS HAVE RECEIVED AS LITTLEN TWO MONTHS AND ARE FED THROUGH CHARITY- LIBERATION ARMY LEADERS CONTRARY TO CALLIGERIS ORDERS REFUSE TO DISBAND BECAUSE THEY FEAR SUCy WILL PLAY INTJ HANDS OF ;Q) UY WHICH WOULD IMMEDIATELY LAUNCH COUP AND SEIZE POWER.

WIDESPREAD BELIEF THAT CALLIGERIS IS EITHER JLINO OR POSSIBLY SOLD OUT TO REGULAR ARMY.

ZPSEMANTIC ADVISED THAT FOLLOWING

UGUST 8} PAGE 4

15. ONUG COL MANUEL DE JESUS PEREZ- COMMANDER OF THE LIBERATIONS UNITS IN JUTIAPA, NAS ORDERED BY CALLIGERIS TO DISARM HIS MEN. PEREZ REFUSED, SENTELL ARMED WEN TO JALA I'A AND HIMSELF CAME TO-CAPITAL 'WHERE HE DEFIED CALLIGERIS AND PLEDGED

SUPPORT

PEREZ TO PUERTO BARRIOS

TAKE COMMAND OF TWO COMPANIES OF LI BEN ArilaY WHICH ALLEGEDLY CONTROL THAT PORT. PEREZ STATEJ HE OOULD REMAIN MAXIMUM OF ONE UONTK UNLESS AN ANTI-CALL IGERIS MOVEMENT MAS LAUNCHED.

COL JORGE BARRIOS SOLAKES. COMMANDER LIBERATION FORCES IN CMKUItfUlA, IS ESTIMATED HAVEEN STILL UNDER ARMS. BARRIOS SOLARES REFUSES OBEY ORDERS FROM CALLIGEKIS ANJ JUNTA AND HAS ALSO PLEDGED LOYALTY TOFORCES hou SETTER ARMED THAN BEFORE AND HAVE LIGHT AND HEAVY ARTILLERY AS WELL AS MACHINE GUNS.

COL ERNESTO NIEDERHEI THAN. COMMANDER OF BASE MILITAR, HAS PROMISED FULL SUPPORT TOHASP PLANS TO NEUTRALIZE AURORA AIR BASE IF THE AIR FORCE DOES NOT SIDE WITH C_ JwhEN AND IF EMERGENCY ARISES,HE MAY BE ABLE TO TAKE OVER AIRFORCE THROUGH LT GUILLERMQ MENDOZA AND COL LUIS URBUTIA DE LEON. NIEDERHEITHAN HAVING DIFFICULTIES WITH THE BASE MILITAR BECAUSE CALLIGERIS HAS PERMITTED UNFRIENDLY,

PRO-REGULAR ARMY OFFICERS TO BE PUT IN SUBORDINATE POSITIONS IN BASE. NIEDERHEITMAN ADVISED HE INTENDS TO REMOVE THESE OFFICERS

UGUST 54 0 (INAGE 5

AS SOON AS POSSIBLE6

DE HONOR UNDER COWHAND OF COLCO OLIVA,

f

]lT DOUBTFUL THAT COLONEL OLIVA COULD CONTROL GUARDIA DE HONOR SINCE MAJORITY OFFICERS ARE REGULAR ARMY.

CEUA PICKED SOLDIERS HAVE BEEN INFILTRATEO INTO BOTH GUARDIA DE HONOR AND BASEAR AS REPORTED BYHESE SOLDIERS ARE EXPECTED OPPOSE ANY EFFORTS ON PART REGULAR ARfiY AGAINST GOVT OR AGAINST LIBERATION ARMY.

COLONEL ANTONIO ESTRADA, COMMANDER ZACAPA ZONE, HAS PROMISED FULL COLLABORATION.

GARRISONS OF COBAN AND QUETZALTENANGO CONSIDERED ASHE MAKING EFFORTS GAIN CONTROL GUI CHE AND JUTIAPA GARRISONS.

AS HIS MAN.

INFERHED HE Iff ILL SEND REPRESENTATIVE DISCUSS MATTERS JllHO DISPLEASED WITH CALLIGERIS.

ADVISED THAT TRbJILLO HAS OFFERED AR'JS BUT ONLY IF ODYOKE APPROVES.

ANNISTER FORWARD THIS INFO WITHOUT

DELAY AND, KNOWING OFEQUEST FOR FUNDS OSTENSIBLY FOR LIBERATION ARMY AND CONFIDENTIAL EXPENSES, ASKEDE

s et

UGUST 34

)

PAGE 6

GIVEN HIM AND NOT TOSTATED THAT CONTINUED

EXISTENCE FOR NEXT SIX WEEKS OF LIBERATION ARMY IS ONLY GUARANTEEM-THAT ANTI COMMIES AND CAUSE if ILL NOT BE ELIMINATED THROUGH ARMY OUP FOLLOWED BY MASSIVE RETALIATION ON PART OF ARMY AND COMMIE LEMENTS.

BASIS, ELIMINATES HIGHLY SUSPICIOUS, OPPORTUNISTIC ELEMENTSAS ADVISERS, AND ADOPTS MORE REALISTICADVISE SOONEST CONCERNING CALLIGERIS AND

FOR FUNDS. THOUGH FUNDS COULD BE DELIVERED TO

DIFFICULTY BELIEVE THAT, IF DECIDED GIVE TO HIM, BETTER THIS SHOULD BE DONE THROUGH BANK IN PBPflltE RATHER THANN. BELIEVE NECTSSARY THAT LIBERATION ARMY BE MAINTAINED DURING THIS CRITICAL PERIOD WHEN POLITICAL TENSION RAPIDLY REACHING EXPLOSIVE POINT. END OF MESSAGE

CABLE SECRETARIATj MR, ESTERL INE, lVH,NOTIFlEO OF

RECEIPT OF THIS MESSAGE8 AUG ) TREATED AS RYBAT PBSUCCESS

26. MEANWHILE HAVE PICKED UP STATEMENTS ALLEGEDLY MADEIN CONFIDENCE INDICATING he TRYING WIN OVERBY INFERENCES HE WILL REBUFF AMERICANS. OBVIOUS THATGROUND OUT FROM UNDER NATIONAL COMMITTEE OF DEFENSE COMMENT: FEEL SERIOUS TROUBLE INEVITABLEGETS TOGETHER(RCVD UNLOYAL)

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