ATTACHED MEMO (W/ATTACHMENT)

Created: 7/26/1954

OCR scan of the original document, errors are possible

subject: Attached Memo

Officenited states government

TO Kr. prank Wisner

KKOM

dath: ij

Attached heretoeneral suanary of Intelligence provided to the Department concerning Guatemala. It does not pretend to cover the entire range of this intelligence,ofwas because of the manner in which events progressed discusser) orally in the form of conjecture and opinion. Under this category falls the advice which was passed tody withhe likelihood of Guatemala's making an appeal to the Security Council. elieve this was discussed in your office in late Kay at tho sane time that we were considering an operotion againstoriello. ecall remarking that we should also be prepared to nount an operation against Guillermo Toriello who we could expect to be sent at the first hour of alarm tok where he would roost safely while receiving instructions tosychological warfare program in the United Nations.

t Intelligence Provided Department of State Concerning Guatemala

hich gave the National Intelligence Estimate concerning Guatemala was distributed to the State Department when it was Dublished in

The crash estimate of tho Board of National Estimates ofU was also distributede State Department and was called to Mr. Holland's attention. This estimate reaffirmed tho conclusions ofli. It also went on to state that Communists effectively controlled the political life of Guatemala and that there was no prospectreak between Arbenz and the Ccemunists, that the possibility of effective internal political action to alter the situation did not exist; and that the army which held the key to the situation was not likely to act It further stated that Comunists would be concerned to neutralize the revolutionary potential of the array; that

to Guatemala was weakening and that time was on the side of the Communists in Guatemala.

pril, Assistant Secretary of State Holland ias briefed onin considersble^etail, including its purpose, and the reasons it was conceived.

h. Onpril, ir. reappraisalasand intelligence on the Guatemalan situation was reviewed in conference with Mr.he following notes were used in the intelligence briefing of Kr. lioilandt^

A. Since the revolutionU the general trend inpolicy has teen leftist and nationalistic. The idealism which was apparent in the revolutionary philosophy has generally been lost or corrupted in the past nine years. Inadequacies of individual and national resources have led to policies lacking in balance and moderation and finallyandfull of skilled Communists to seize virtual control of the government.

S. In resune, this status was achieved through theand

eftist political coalition under theleadership of Presidents Juan Jose Arevalo and Jocobo Through this coalition, the numerically weak butand aggressive Communists were able to gainmall minority of seats in Congress and, throughof the federal appointive power, to dominate This resulted in Communist control ofi

The Ministry of Labor

The Ministry of Agriculture

The Ministry of Education

of the Ministry of National Defense

The Federal Propaganda Mechanism

Appointive Offices within the Judiciary

The Institute of Social Security

organization and control of the Generalof Workers of Guatemala (CGTG) achieved dominanceleavingpoil minority ofeak, defensive action.

he Guatemalan government, with effectiveincreased the range and tenpo of its leftistcourse with the passage of the Agrarian Reformlaw provided for expropriation of privately owned landsubsequent distribution to landless oeasants, thetitle and control. In application, it has beena weapon against landed opponents of the regime and asof gaining government support from the masses.

recognition of the key political role played byforces, tlie present regime has sought control byand bribery. Colonel Arana, who opposedwas assasinated. Other officers, deenedin sympathy, were retired or transferred toassignments. The greater number, however,the most influential, were Dlacated by paygrants, special purchasing privileges and freedom for

corrupt, leftist, opportunist Colonel Hogelio Cruzplaced in cocr*5nd of the National Police.

bortive Salama uprising ofmess-ores were undartaken end loading figuresopposition were shot, tortured, or driven into exile.

C. Since3 the Connunlst position in Guatanala has been strengthened while that of the anti-Conraunist forces has deteriorated. This development has been brought about or roade manifest by the following factors:

a. Onhe Guatemalan governmentwhiteurporting tolot of traitorous Guatemalans supported by Nicaragua, Venezuela, the Dominican Republic, EL Salvador and "the Government of the north". Thia paper contained, among other allegations, the following salient

Guatemala was the victim of an international plot against her sovereignity and territorial integrity.

The plot was supported by the United Fruit Company and unidentified high U. S, officials.

military leader was identified as Carlos Castillo

Armas.

The-'white paper" has been used by the Guatemalan governmentustification for increased repressive raeasures against opposition elements.

b. The head ofmilitary net within Guatemala was arrested-and tortured. This followed the arrest of aoproximate-lynti-Coramunists, some of whofe occupied key oositions within the opposition.

o. The independent press and radio of Guatemala has been under sustained fire. Collectively, it has been derided as the "tool of imperialism" while individual editorsbean singled out for calumny as traitors. Oscar Conde, an anti-Communist radio broadcaster, was haled into court on anparently trunped-up charges. Anti-Communist broadcasts have been jamnedransmitter apoarently located in Guatemala Citv Police

York Times correspondent Sidney Gruson andCompany co-menUtcr Marshall -annell werefrom the country.

Villatorio 3arrios, Enrique Coronado, andGonzalez, directors of the anti-Corrsunist laborwore ejected fron the country, leaving effective control

of Guatemalan labor in Corr:unist hands without effective opposition.

of the Agrarian Reform Program continuedof expropriated land to tbe peasantry. Thehas been ingratiation of the government withelements.

efforts on the part of the government tohave met with oaoo success and the program ofto the agrarians continues.

independent groups such as the Guatemalawomen have been harrassed and intimidated. Theburned to thendpossibly by accident.

Amy has been suborned by connivance witheal estate and extension of extraordinary commissary Conversely, military sen opposed to Cccnunisain fear of lnformors within the ranks and aretransfer to undesirable posts or retirement.

The increasing efficiency of enemy intelligence has been demonstrated by successful penetration of oppositionand doubling of agonts. Arrests conducted onanuaryshowed doflnlto knowledge of key opposition leaders, while doteiled plana and activities of Calligerls* forces have been reported promptly and accurately.

k. Enemy propaganda activity, particularly in the form of mass meetings, signature campaigns, and radio broadcasting has been very active, concentrating on themes of "resistance to intervention". Mass demonstrations have been held throughout the country.

emoval of snti^osftunist members of the Supreme Court and their replacement by malleable leftists has weakened the legal opposition.

$. . Holland was briefed onune on the most recent intelligenc from Guatemala. He was also advised that the state of readiness of PTSrcCESS was stepped upate prioruly. He was also reminded thatossibility of spontaneous combustion prior to that time.14

6. Onnd lfla Mr. Holland was tcld that the PBSUCCcSS kickoff was set.U. He was told that CIA could not predict tho successful outcome at that tine, and that some form of counter-blow could result. Ha was reminded of various other contingencies which could arise. Anon? these contingencies

was the possiblity of Guatemalanhe UNa ooint comment-ed upon by Mr. Leddy.-1

Henry Cabot Lodge was telephoneddvised that CIA had very good intelligence coverage ofthat Guatemalan government claims of heavy aerialuntruthful; and thatevidence that the Guatemalanwas fabricating evidences of bombing, and that these claimsand should be exposed. He was informed that theof the Guatemalan affair were being ourposefully exaggerated

by the Guatemalans, but that in fact there has been seething unrest within the country for "any months which rapidly camelimax hen tho government susponded constitutional guaranteesune.

A number of tentative conclusions with regard to steps to be taken were arrived atiscussion in Mr. ffice onune. Those were written and passed to Stateone. Tho first was an understanding that thero was an OAS inspection committee butN Inspection Committee, and that Mr. Holland believed the inspection committee could be controlled by the majority of its membership which were friendly.'

A telephone conversation with Mr. Holland took placeune during which recommendations were made for use in connection with further proceedings in tlie UN and/or OAS Peace Commission concerning Guatemala. emo of confirmation was sent on the same date. It was rcconviended that firm terns of reference should be fciven anygroup. These should bo*

Call on Guatemalan government to submit all facts concerning tho Alfhem arms shipment, including true manifests to enable the investigating body to determine whether the arms were for offensive or defensive purposesnoting comparative amounts of ams available to other Central American countries, and nomal require::ents of Guatemalan army; and to submit facts concerning other arms shinncnts in past two years.

The Guatemalan government should be called on totatement concerning the nat-rc and extent of its suoDort of the

strikes in Konduras;tIV-it In" HnnrinrniTr of

the support to the clandestine newspaper of the Honduran Communist party, and of the kind and quantity of Communist propaganda brought into .'ionduras by the Guatemalan govenvnent.

should be fullest investigation into arrests aridanti-Communists, harassment of anti-Communist oress, tortureof political prisoners, assasjnation of certain loading Live witnesses should be used.2

stefET

10. egular and continuing supply of day to day intelligence on the Guatemalan situation was supplied to the Department of State in the form of cabled Preliminary Disseminations (PD's). Since the middle of Kay, memoranda have been passed informally to certain members of the Department containing both the information currently being disseminated as well as supplementary material of operational interest to those officials familiar with PESXCSSS objectives and brought partly into PBSXCESS operations.

U. Knowledge of Guatemalan plans counting on some form ofto settle tho Guatemalan situation before the expectedled by CASTILLO Armas occurred was disseminated in the following two reportst

funenformation thatToriello had said theremaster card" whichintonded to play by requesting that the "JnitedGuatemala sit down as litigants at an OAS meeting in whichcf the members would act as arbiters.

funonformation thatEconomy FanJul planned to advise Arbenz toalk withEisenhower in which the Guatemalans would agree to get ridCommunists in return for economic concessions from the

was provided to the Department of State onnd

for use in countering certain false statements made byGovernment. The two allegations were thut bombs hadon Guatemala City onndune, and that Guatemalainvaded by foreign forces without popular support. Thewaa refuted by material which showed that eyewitnessesstated that the aircraft of the revolutionaryonly leaflets and only firec bursts into tho clouds,the house of Col. ilendoza in Guatemala City allegedlyin fact set on fire by unknown persons in Guatemala City. point was refuted by citing disaffection in thoForce as welldio Liberacion broadcasts stating thatforcos3 Guatemalan." Additionalcited to counteract Arbenz' claim onune that there "was

no reign of terror in Guatemala." Specific instances were the deaths by torture of Gabriel Martinez del Hosal, Perfocto Villegas, snd the owner cf the Kaufman finca.

was provided with daily summaries of informationState, oreaa, and monitered radio reports during the period

toune for their use.

lit. Additional information which the Department of StatePD's concerned the following general

of army leaders with Communist naturerepine:

1eaction of Ouatenalan Aray Officers to Anns Shipment to Guatemala

"Incident dramatically demonstrated close ties of Ouatenalan and Soviet Governments..

3 June -Amy Request that Arbenz Change Present Policy

"Arbenz stated the Aray trying to persuade him

to get rid of Comiunists and change policy, but

he said present policy vas his and unchangeable with

or without

ii June-Amy Request that Ar'.-cnz Change Policy or bo Overthrown

"Great majority) have indicated to President Arcenz their opposition to continued government alliance with Core unists.

7 June -Activities of Guatemalan Civilian and Military Leaders

"Unidentified cabinet minister has fcten conferring vith Col. Jose Angel Sanchez, Minister of Defense, about measures toinst Arcenz in view of apparent unwillingness Arbenz to modify his stand on"

Actions of Guaten&len Government Suppressing

6 June -CuateMalan Government Activities against Anti-Connunists

"Sinceuno,ersons have disappeared inersons have been arrested in Naza-tenango. Arreots throughout Guatenala run into tho hundreds.'1

6 June -Dropping of Arms, Amunition fron Unidentified Aircraft in Vicinity Tiquisate, Guatemala

truckloads of orisonerr taken by Guardia Civil to Eacuintla from Tlquiaate. Total runber of -rlsoncrs"

8 June -Unrest in Guatemala

estimates thatpersons arrested in Guatemalahundred new agents being

ployed V? Guardia Civil (note that Government haso comment od number of personson-Guatemalan Comr.musts engaged ind murders of

8ttempt of Guillermo Toriello to Resign

"Toriello tried to resign given as reason his disagreement with mass arrests and tortures being conducted by Guatemalan

PD8eeting of Cuatemlan Cabinet on Mightune

"Arbenz asked for law authorizing any anti-Communist who was arrested to be shot in three

f ]

Footnotes

Briefing of Assistant Secretary of State HollandU.

Conference with Assistant Secretary of State Holland re PBSUCCESS,

k.

used at briefing of Assistant Secretary Holland,pril

Bearinf Upon Present Status of PBSUCCESS.

Background of Guatemalan Communism.

li. Memo for the Record, datedU. Subject: PBSUCCESS -Conversationssistant Secretary Holland.

for the Record, datedU. Subject: . Holland.

e. Ksno for the Record, dated. Subject: Conversation irith Henry Cabot Lodge.

7. Memorandum datedlj. Subject; Idess Developedin ;ir.Office Concerning Guatemalan Situation.

. ienry Holland, datedh. for kss inurther Frocecdin-s United "atione end/or the GAS peace Cormissicn; Guatemala.

Original document.

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