Created: 5/18/1954

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release in full


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place acquired Honduras,

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SOURCE: Ouatemalan exile ln Honduras Appraisal of Contenti 3.

U Col. Jose LuisVcRALSS, Ouatemalan Military Attache in Honduras, stated,eriod of drinking, that rocont government condemnations of activities of Guatemalan oppositionists were true. According to MORALES, Lt. Col. Carlos CASTILLO Armas has strong backing and Is feared by the Ouatemalan Government. When asked why CASTILLO was not eliminated If he representedanger, MORALES said that it would be extremely risky to kill CASTILLO because of his prestige in the armed forces. Rather than do away with CASTILLO, the Guatemalan Government is aper.dir^ largo suxs of money to beepunder close surveillance. It is MORALES' opinion that the Army could be persuaded to back CASTILLO in the event of an armedd for this reason the government isgradually to limit the number of arms now in the control of the Army. Simultaneously, the government is building up the armed strength of the labor unions, which represent the principal support of tho ARBEHZ regime.

Txt regard to political matters involving neighboring countries, MORALES ftjflffcked Roberto CAHKSXA, Salvadoran Foreign Minister, and praised Jose rTnuERES, Costa Rican President. He said that he did not believe that FIOUERES/would be. able to oust the Yankees from Coota Rica, although the Guatemalan Government was of the opinion that this objective will be accomplished. Turning to Panamanian affairs, MORALES said that President REMOfrvp" cooperation with Guatemala resulted in the fact that Jorge Isaac DELOABO, former Panamanian diplomat In Nicaragua, revealed theplana of the Guatemalan exiles. With reapect to Latin America as

a whole. MORALES said that those countries which backed the United States at the Tenth Inter-American Conference at Caracas did so with thejf getting economic aid which thus far has not been received.

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