PROGRESS REPORT - PBSUCCESS FOR THE PERIOD 4-10 MAY 2954

Created: 5/11/1954

OCR scan of the original document, errors are possible

. CIA HISTORICAL REVIEW program, releaseas sanitized

4

POP:

ProgressBSTtCCERS for tho04

I. Operational

Tho following events of operntlonsl e'.pnlficonee occurred during the reporting periodt

departedacna, Venezuela,

where ho will attempt to defeat Col. Cerloe Enrique DIAZ, Chief of the Guatemalan Armed Paroes. In oonnootlon with this operation,

departed for Caracas snd will serve as case

tendered

his resignation to this Agency. rrive

In Uoshlngton to discuss evonte whioh led to his desire to sever connection? with CIA.

C The present critical poll'loci eltustlon In Honduras could be veryto the Interests of PRPUCCPSS. On fl Hay it was reported froo Nicaragua that President GALVE2 of Rondurea wan considering turning over the rfendurao Covernnent to Defense Minister PINEDA,rorte^ly In the pay of tho Ouatennlan Government. The possibility exists that GALVEtaptive of the Toda and no loneer has freerloa of choice.

irective susrendlng oil black flights until further notice. Later infomntlcn free Lincoln Indicator that flights will be resumed onay.

S. eport froo Tegucigalpa reflects that theGovernment

has nrcrtlsed to Issue unmlnra against Communist action to Salvndoran people In the ares along tha north coast of Bon-furas. h this In mind the Po&fcmn "overrannt has taken tho opportunity to send word to PresidentI0 of E3 Salvador that the Ooatemelan Government Is tho root of all current trouble and deans that counteractIon should ba taken es soon ss possible. Bonduran Porelgn Minister, Edunrdo VAD3FTELA, is ready to discuss tbe Guatemalan situation with CTCRIO st tbs eerlleat tine set by OSCRI0 snd is noweply froo the latter.

m

F. Ths SS VnUrTOCCX, under West German registry, and deetlned for Puerto Bnrrlos, Guatemala, la suspected of carrying contraband aree under false manifest froa behind tha iron curtain for tbe Onalaaalin Covern-nent. "Una are being node to divert this ahlpnant of erne.

"lane are being made to send unofficial cover. While in sabotage asslstenoe to tbe

Hondnran Air Force.

Tegucigalpa under will give counter-

tsff agent departed iron Headquarters

ay in an attenpt to recruit ae an Informant an inruvmwiis related by marriage to Presidentf Ouateaala.

J.

u

report from Oonteanla, Indicates thot an unlenovn number of unldontlflod Guatemalan Army officers vero arresteday In Canto do Marts. Details of this arrest have not yet been mode ovaliable,

roadcasts to Guatemala wore jammsd on i. Mayoud ublstle apparently emanating from Radio Talafunksn In Ouateaala,

esulteport froa tho Tanguardla Popular (VP, Coeta Rican Commnnlat Party). intelligence agent was working In Guatemala, Arthur G. VATODAontract agent, departed froa Ouatanalo. Hie family at present la nreparlng to leave Guatemala for C ^

In regard torogram, Graham L. PAGE madepril and reportedeetlngj

anotrier aeetiaf- vnm helday, After the aeeond meting, "ACE reeorted that apparently CALL ICS* IS was no longer an Impediment te

a.

f be

IT PAGE's

&

articlpation In fTTCARP, sndlo ^raeouli

ly eoanlttod toACE brlefedf Jand the feet that SlttSVOCD leP-eontrolfed. Reearned lees from bin about rTNCARP than he did from

were con-lnformotlon

ntOTalsn reriotrntions, and thatf^ trolled by the Guatemalans, could not be sure vns not doe opt loo.

an effort to keep tho hand of. Government froa beingIn the PnPUCCESS operation, CALT.IGERE end/or his chosen representative will attempt to enlist the aid of President PEREZ Jimenez of Venezuela. In like manner, CALLICOilS le also attempting to purchase arms from the Dcolnlcan Repoblio. Those arms will be planted In Guatemala so as to be discovered, thus Implicating the Dominican Republic In tbe plan to overthrow tho Ouotemalan Government,

N. Operation WASIfTUB appears to be highly successful to date, and has

Seen pi von coverage In news po pore in Central Amor ion, the United States, snd fin-ops.

0. The last polygraph testa adrdnleterad In nie&ragua picked up

eneny-oeeitrolled agent and confirmed all suspicions about

Lincoln hastrong dlreetlTe to ths afreet thatmast be out off froa all operations lawsdlately.

P. fennel MORALES Orell died the night4 ln Tegucigalpa ae the rsselt of an accidental pistol discharge. sslbsr of thsTRTS staff. MORALES has been proclaimed ths first hero of the

acquaintances ennfroa Washingtonay for hia noma Proa there he departed for Guatemala City

on fjifcy via readeo City travelling under tourist cover and acccs-panied

as old frionds with the view of determining their current attitudes and loyalties and also to ascertain the general attitude of tbe Guato-Bslan Army. 4

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