GENERAL- FINANCIAL INTELLIGENCE - SPECIFIC- FINANCIAL POSITION OF GUATEMALA

Created: 6/14/1954

OCR scan of the original document, errors are possible

CIA HISTORICAL REVIEW PROGRAM RELEASEAS SANITIZED

law Sm pouch)

DISPATCH NO. j91

of Station, Lincoln

Financial Intelligence

SPECIFIC Financial Position of Guatemala

PBSTJCCESS RE: 0

The external financial oosition of Guatemala is very solid according to available statistics. Guatemalan currency is well backed by gold and other substantial crcJits relative to currency in circulation. There art-no indications, externally, of inflation.

Strong coffee orices have improved Guatemalan terms of trade and are supplying the economy with unusually good returns, making it oossible for the Government to impose and collect larger taxes and the finceros to maintain or increase their orofits and even for sc-ne benefits to go to the

workers.

.3. Attached ?re sone financial statistics compiled by Treasury. They may not be released for Duplication without permission of Treasury,

h. Attached is report, Subject? Possible Devaluation of the Quetzal Due to Political-Military Developments. Notice conclusion of Paragraph ii. If other interests also begin hedging their assetsarked extent so^ie financial difficulties may develop, though they would neter outunank well prepared forontingency.

5. Attachedeport from fcmbassy, Guatemala,Subject! Financial Transaction Covering Shipment of Arms From Iron Curtain Country to 'Xiatemala. The posslblity suggested in the memorandum is confirmed from other sources to the extent ofwhich probably reoresent-ed the final payment for the ams. with this wiyment nade and* even if it renre.ients only half of the total, the Guatemalan financial position remains sound by most standards (exclusive of the political situation).

- as aboveii

Distribution: IKCOLN

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DENIED IN FULL

Original document.

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