REPORT RE GUATEMALA 1954 COUP

Created: 6/9/1954

OCR scan of the original document, errors are possible

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THIS IS SENSITIVE RPT SENSITIVE

June 9,4

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IN AN INTERVIEW TODAY WITH ONE OF OUR CONTACTS, HE MENTIONED AN ARTICLE WHICH APPEARED IN THE THR EE OR FOUR4 ISSUE OF SANTIAGO, CHILE'S DAILY SENSATION SHEET, ULTIMA HORA, DEALING WITH AN INTERVIEW WITH GUATEMALA'S AMBASSADOR AT LARGE, JUAN JOSE AREVALO and WHICH QUOTED AREVALO, ON THE SUBJECT OF THE RECENT SHIPMENT OF ARMS FROM POLAND TO GUATEMALA, AS BEING APPREHENSIVE OVER THE POSSIBILITYEVOET IN GUATEMALA. AREVALO IS SUPPOSED TO HAVE EXPLAINED HIS APPREHENSION BY OBSERVING THAT, IF THEPATTERN OF DEALING WITH THE UNITED FRUIT COMPANY OFFIVE HUNDRED MILLIONS OF DOLLARS IN COLOMBIA, COSTA RICA, CUBA, GUATEMALA, HONDURAS AND PANAMA, WHEREAS IT WOULD COST THE FRUIT COMPANY ONLY APPROXIMATELY ONE MILLION DOLLARS TOEVOLI TION IN GUATEMALA.

THIS STATEMENT BY AREVALO MAY POSSIBLY HAVE GREAT SIGNIFICANC IN VIEW OF THE FACT THAT ITS LANGUAGE IS PRACTICALLY IDENTICAL WITH WHAT GUATEMALA'S MINISTER OF FOREIGN AFBIRS GUILLERMO TORIELLO GARPIDO IS REPORTED TO HAVE SAID TO MUTUAL BROADCASTING COMPANY'S CEDRIC FOSTER, AS SET FORTH IN AND INVIEW OF THE POSSIBLE FUTURE ALLEGATION OF THE IMPORT OF ARMS INTO GUATEMALA BY THE FRUIT CO.

ACCORDING TO OUR SOURCE, AREVALO IS THE MASTER MIND BEHIND THE COMMUNIST INFILTRATION OF GUATEMALA, DATING FROM THEXX JUNTA FOLIX>WING THE OVERTHROW OF UBICO, WHICH INCLUDED ARBENZ AND JORGE TORIELLO, AND THE FACT THAT THE COMMUNISTS BEGAN REALLY TAKING OVEI DURING AREVALO'S ADMINISTRATION AS PRESIDENT OF GUATEMALA.

OUR CONTACT ALSO SAYS THAT AREVALO HAS BEEN TRAVELING AROUND LATIN AMERICA FOR SOME TIME, STIRRING UP TROUBLE AND FOSTERING COMMUNISM AND THAT THE SITUATION IN CHI LB TODAY IS FULLY AS EXPLOSIVE AND DANGEROUS AS THE SITUATION IN GUATEMALA, ALBEIT ATTENDANT WITH LESS PUBLICITY. OUR SOURCE FURTHER STATED THAT THE PATTERN OFINFILTRATION IS CHANGING, IN THAT ALL OF THE OLD AND NOTORIOUS COMMUNIST SUPPORTERS ARE FADING OUT OF THE PICTURE, BECAUSETHE US MIGHT HAVE ENTIRELY TOO SMOOTH SAILING BEFORE THE OAS

INKING THESE NAMES WITH INTERNATIONAL COMMUNISM, SHOULD THEY CONTINUE IN THE FORE IN LATIN AMERICAN FOREIGN AND DOMESTIC AFFAIRS. HE SAID THAT THEY ARE BEING REPLACED WITH NEW AND RELATIVELYNAMES, AND THAT THE NEWCOMERS ARE MORE OF THE SCHOOLTEACHER TYPE, AS EXEMPLIFIED BY BOLIVIA'S VICTOR PAZ ESTENSSORO. HE ASCRIBED THE REMOVAL OF FORTUNY TO THIS NEW TREND, BECAUSE FORTUNY WSS TOO EASILY IDENTIFIED WITH COMMUNISM.

5. DURING THE COURSE OF OUR INTERVIEW, OUR CONTACT ALSOHAVINGHREATENING TELEPHONE ME&SAGE, FROM AN UNIDENTIFIED MANTRONG SPANISH ACCENT, AS FOLLOWS: "YOU BRAG ABOUT WHAT YOU KNOW ABOUT GUATEMALA WELL, YOU WON'T BE ABLE TO KNOW TO BRAG. YOU'LL HEAR FROM ME AGAIN." OUR CONTACT IS NOT WORRIED OVER THE THREAT, AND SPECULATES THAT IT WAS PROMPTED EITHER BY HIS GIVING TO THE LOCAL NEWSPAPERS THE FACT OF THE ARRIVAL IN THE US OF DANIEL CACERES OFPOSSIBLE NEWSWORTHINESS.

Original document.

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