REPORT OF TRANSFER OF GUATEMALAN FUNDS TO CREDIT CZECH.

Created: 6/8/1954

OCR scan of the original document, errors are possible

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KCORANDUK FOR, J. rj. Eoterllne

of Transfer of Guatemalan Funds to Credit

Cjtech.

Tbe exchange rate of the Swiss Prone le Twenty million Swiss Francs therefore ia equal

Normal Guatemalan trade with the bloc amounted02CCCnd3 CzechoslovakiaC.0O0 worth of gocde to Guatemala. The reported transfer of funds, amounting to more thenlmee the normal reported trade, undoubtedly ia connected with sume special deal, and of course the first thought is that it waa in payment for the recent shipment of arms to Guatemala.

It is just possible that this financial transaction is related to acne deal that has not yet been completed, rather than to the Alfhem delivery of arras. It may bo worth alertlne ECD to this possibility.

There is no indicotion that any connection woe Been hy the persona in ECD who saw this report between the information In the report of tho financial transaction and possible arms shipments. It nay be possible for FCi> to get more lines of Intelligence bearing upon the GuDterofilan nroblems if the staff there wore alerted to watch for possible indications ofarms deals.

Guatemalaold reserve of, ofs held on earmark with the Federal Reserve Bonk of Hew Tort. Seventy per cent of Guatemalan short term credltere held ln the Foreign Department of the Federal Reserve Bank of Sew York. Business oni individuals Blao holdCO ehort tens aB^te of CimtflMla, moet of which would clear through Sew York banks. This accountsreat preponderance of the financial business of Guatemala. Since any future large transfer is likely to originate in or bo placed through US financialpecial watch over Ouatemalan large transfers of funic, if not already instituted, may provide additional intelligence tips.

Original document.

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