Created: 5/25/1954

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I 1

Info: Igsltington.


rogram Keoting Eetxesn C

from : cmef oJ> station, Guatemala


and Graham L. Pago

Attached is Graham L. rage's report of Lie ireiingook plac between himself and / n


Adrian B. Kidwell

Encl. as noted


- Lincoln-ncl




Meeting with

Tfce meeting reported upon took piece in tho afternoon of4 at ESQUIRE'a private residence. In cecalsance with written instructions contained In PAGE'a letter, datedours, several issues suggested by Lincoln were raised.

t tated that the Guatemalan Government is currently engagedtudy of trans relations between Guatemala and the united States froa the point of view of determining what effect it would have should the united States decide

to embarkolicy of economic sanctions, under study isetween the united States andmaintains that

under the tsrms of this treaty the united States would be acting within her rights ln denouncing it. l 3 as is his wont, emphasised thatcause" would be tremendously favoredolicy of eooncsdo aIn his view the tun Inevitable result would be the downfall of the Arbeni regime, provided the responsibility for economic stringencies can be squarely placed at the doorsteps of the cossnmist party. l onsiders Guatemala'ssystem her Achilles heel. Be is convinced that lt could be paralysedelective application of econoadc pressure. He exclaimed! "Why doesn't the united States frankly and openly Impose economichat la the united States afraid oft Ie Guatemala waging an aggressive policy against the united States or Isn't ahsT

pointod out to c ^thnt the oonsejo is ia no position toStates foreign policy, wittiesa the unimpeded arrival of the erasccsaasntlng upon the valid! to off rgumentation, ESQUIRE toldhe agrees withestimate of the effectiveness of econoadcwanting to projuago use feasibilityelective embargo, ESQUIREa drastic curtailment ln the shipment of gasoline wouldripplingGuatemala's economy.ractical terms, its an examplethe autobusses which still oonotitae Guatemala's most Important means

of transportation. People would quickly Jump to the oonalasion that the communists are responsible "for the price of eggs* snd the Government would fall.

a lose personal friend of stambcv- it. Accordingprevailing impression in Hands that the Arbenx Government willia supposedly the gisteport. ESQUIRE gathered tho Impressioncontents were conuBraioated byo sttwuf Ht*wasss stating that "wo should try and see to it that the Army keeps united1.

f according to is ours" without qualifications. ounded the following noteaution.foolish, vain sndquoted him as stating* "we. ( nd *Tft*"bchould getthen briefing ^ttwtsej. the oonsejo shouldbear ln mind that beclose friend of and that he might Inadvertantly spill the beans.therefore think twice beforo "putting tho key into hie hand",

Indicated that he would bo quite prepared to channel any diroctivee the conaejoto issue toSQUIRE observed that, given the cose, the oonsejovalueae to how much it would be safe to impart to

6. tho following personality assessments of Rarrison cosnnandors:

A. OoloneKfeRaiO

Loyal to tho government. Exercize exceeding caution in approaching bin.

Loyal to tho Govornment. Oboys ordoro.


Difficult to indoctrinate. Totally conznitted to Colon ol DIAZ. Vould tattle. However, first loyalty belongs to Army once DIAZ bos boon removed.

Chief'of 6th Zone. Might bo Influenced thru bis brother. Major(SCjCCEB's

exproseed himself in terms of highest praise regarding Major Joee

Ws, stating that be "was waiting to bee isaliant, dooiaive, ambitious and knows the situation very well. He vas removed from his2 job because be bad the goods on the conciunlts.

According to here have been during the last months several desertions from the corps of eadots of the escuela poll teenies, especially from the 4th and 5th class, mostly the sons of conservative families.

Colonel Oeo^^ORALES Lopez, former Guatemalan Military Attache ln Washington, currently serving in Rio de Janeiro, "is trying to promote himself as beingosition to procure elieves that Colonel DIAZ recent trip bed something to do with this.

quotes an officer of the Zacupa garrison as stating! "we areIn Zacapa".

11- t Jrelates that at

(Field Comment! Reported nere, because itignificant reflection of c 8 state of mind).

over in his mind ARBENZa cannot proceed any further

olitical plane"), s now convinced that it waa meant toeriod of extreme caution in Guatemala's external affairs.

arms delivery camereat boon tor to tho morale of tho ofwho are not particularly aware lot alone concerned about itsIt has giveneeling that finally "they have got something".

The main stumbling block, as far as control over the Guafidia de Honor is concerned, is the person of STfiNPEL-Z "who hates CA1 LICERIS. His two assistant: areCorzo and Alfredp^QWHS (the latter cay be related to Colonel LEMDS, head of Ihe civilian branch of the Guatemalan Airforcei see SOCCERiMHS claims to have been exposedribery attempt several years They may bo approachable, but f ft ia not certain.

** ad nothing vory flattering to say about Colonel GuiUerjj^flOPiES. Ho described him as an older man and as ailing. Hehartered accountant and "had somo ambitions at one time".

highest esteem although he cannot recollect over having met him. S'

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