Created: 6/11/1954

OCR scan of the original document, errors are possible




FR0H ! Chief of Station, Guatemala

SUBJECT: filing


Guatemalan Government Interest In Local Gasoline Supply Reference:

Enolosed, forreceivingscopynl' prepared by Mr* '

Mr. Ambassador

A. B, rdlaw


Today In tha courseonvoraatloa vith Roberto SARAVIA, local Ksao aanager, at tho Rotary Club, ho in-foraod bo that yeatarday Jorge TO.RIZLLO summoned hia to hia office and asked him whether ha had received anyabout plana foroff gasoline deliveries to Guatemala or had boon Instructed not to bid on products for sals to the Guatemalan Govorrraent. Us informedollo that he had received no information on this subject and had not bean Instructed not to bid for Guatemalan Ouvsritsent business, fir. Torlollo than requested him to inform him irsaedlately In tha event he should receive such information or such instructions.

Sr. Saravis remarked that he felt pertain that Torialio was in closo oontaot with Jrasidsnt ARBENZ on this raottor and eras following up the lYesident's questioning of last week at the President's Instruction.

He said that the question about not bidding forGovernment business probably arose from the Rsso'a failure tosoond bidroposed purchase by the Ouatemalan Governmentarrels of lub oils and grease for tbe Atlantic Highway, Be explained that under the Ouatemalan purchasing system, sealed bids are received on proposed purchases but that when these bids are opened the unsuccessful bidders are given an opportunity tossoond bids lover than that submitted by the original low bidder. However, In tha case in question, tbe low bid was submitted by Luis PIODiflOA, who quoted on delivery of Sonooo oil, his quotations beinger gallon for oiler gallon for grease lower than the Bseo quotations. Rr. Sara via explained that Mr. Pigueroa's quotations wereo-called standard grade of Sonooo lubricants and notrmaium grade, and that while Bsso oould offsr standard products atprices, the oompany waa not Interested In stakingale because it would eventually result In muchfor whioh tho oonpany would bo blamed, Sonooo has no regular market faollltlea In Guatemala.

Kr. daravla also explained that the Highway Separtmont Is requesting bidsallons of motor gasoline


11 imilar quantity of Mosel oil. Thoso quantities would bo deliverederiod of time through normal distribution ahannols, and hence tho request for thoso bids does not Indloato an effort by tho Oovornsont tooserve of these products.

*r, Saravla aloo remarked that ho hod loomedriend In the Air "orco that beginning tvo days aro tho OuateoaXan Air Force haalane in Guatemala City, one In Sannd one In Puerto Barrios, ready to Intercept planes making unauthorised flights ovor Ouatceiolar. territory.

oor Mr. Fisher



Original document.

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