of Station, Ouateaala
Weekly PI Psychay lflSe
1. Reporting period waa dominated by apeeulation oonoernlng the ship* aamt of ama whioh arrived at Puerto Barrio* at tbe oleee ef the previous period. Our previeoe prediction that the successful delivery ef the mentioned ame would hearten enaay foroaa and dlacourage the opposition ia believed to have been valid. However, despite tha reeaeuring presence of the ama, the prevailing aood of the go renew at waa still one of nervouaneee and tension owing to other Important factor* ineludlng the doubtful loyalty of tha army.
S. In addition, during the period covered more end mom people came to expect an uprising or civil disturbance in the near future. Labor unmet continued; members of the foreign colony debated the desirabilitynding their families out of the eountry, and for the first time, many people realisedhook that the situation la rapidly reaching the point ef decision for themselves aa well aa for their eountry.
ESTIMATE OP THE EMKKT SITUATION
Although enemy foroea warn considerably strengthened by the arrival of the Alfhea arms shipment, the position of the governmentefensive one.
The extensive precautions taken to assure safe delivery of the ana revealed the povernment'e fear and following the attempt te dynamite one of the trains carrying ansa to the capital, efforts were redoubled.
Every precaution wee also taken to make as much capital as possible out of the arms delivery, and the amyrimary target. Govt,w fit to assume the undivided loyalty of the army and Marco Antonio FRANCO, president of Congress, declared that the amy waa now strong enough to take on all foes. Minister of Foreign Relations Oulllermo TORIEIXO,eeting with the press, denounced. as guilty of agreselve aotlon, refused to dinolose the origin of the ama, and added that the amy wasenace to anyone.*
StOKKT PKTJCCESS KTBAT
Kunon to the effect that TUKIt'LLO would take tea matter. "aggression and intervention" to. further evidenced ths government's need snd desire to divert attention froa ths local scene and Ita own activities.
In another effort at diversion, the government playedeport concerning the recruitmentan who alleged/ believed they were to bein llonduras ln the lumber industry only to subsequently discover thoj were to fora part of an Invasion amy to be led by Castillo Armas.
Obviously concerned for the fate of the preaenthe CGTOall to Its ssntbers to be prepared to defend the government of the revolution in oate of attack. It la also considered that this etatenent was made ln an effort to forestall any criticism of delivery of arms to the CGTG.
It also appeared tbat the boverament feared the possible role of the L'FCO ln eny upriainglbr Informationovernmant-sponeored attempt to plant arms in bananara thus implicating UFCO officials and leading tbe way to complete expropriation was reported.
FJTOWTE OF TKFITUATION
fcventa of the week tended to more fully awaken friendly elements to the dangers In the path being pursued by the government. Their previously reported attitude of hopeful expectancy waa changed to oneealisation of the serious difficulties to be aat in ridding the country of the preaent regime coupled with the renewed belief tbat lt snst go. However, fear engendered by the srms shipment has also risen.
The basic reaction to early reports of the arms shipment was ooe of disgust', atateaents denouncing purchase behind the Iron. failure to take activesuch as torpedoing stprevent their arrival in the firat place. The feelhat the time for words on the part of. was past and that action was what wss needed saa prevalent. However, itne rally accepted that tha State Department had prior knowledge of the transaction and ae the week wore on, there was hopeful speculation to the effect that. had permitted delivery so that It oould subsequently "crack down" on Guatemala
Further nope was provided by imports that the Army was divided in Its loyalty and sight not choose to defend tho government in case of su uprising.
Clara K. Hesgej'