OO/C CASE 15609 (W/ATTACHMENT)

Created: 4/28/1954

OCR scan of the original document, errors are possible

Office MemorandumUNITED STATES GOVERNMENT

pril 54

Attn: Mr.

: Contact Division Support Branch

subject

1. Attached for your informationopyeletype received from cur

Attach: Cony of Teletype

F

ION RECEIVED AFTER TELEPHONI" CALL I

SUPPLEMENTING TELEPHONE CONVERSATION OF TCDAY, HERE ISF

HILL NOT RPT NOT LEAVEPTMAY UNLESS PLANS CHANCE RADICALLY.

HE SEEMS MORE AWARE AND AFRAIO CF DANGERS OF COMMUNIST PENETRATION THAN HE WAS IN THIS IS BASED PRIMARILY OS HIS SUDDEN REALIZATION THAT COMMUNIST LED LABOR ORGANIZATIONS ARE OPERATINC TOWARD THEIR OWN ENDS INDEPENDENTLY OF FKAMEUORX OF AGRARIAN REFORM LAW. HE SEES THE ORGANIZATION OF THE "SINDICATOS" ON HIS OWN FINCA AS POSSIBLE THREAT TO OWN FINANCIAL SECURITY.

IN ADDITION HE RECENTLY READ "EL CAMINO YENNAN" (THR YENNAN UAY) GIVEN HIM. MILITARY ATTACHE AT GUATEMALA.

AS RESULT HE FEELS GUATEMALA COMMUNISTS ARE USING SAME TACTICSDESCRIBED.

A. C ^CONSIDERSPATRON^OYAL SUPPORTER OF ARUEN2. HE ALSO FEELS THAT THE TWO ARE NOT RPT NOT INCONSISTENT. RATHER THAT THIS IS TYPICAL OF OTHER "PATRONES" WHO REALIZE THAT MANY SOCIAL REFORMS ARE NEEDED FOR GOOD OF COUNTRY AND ARE WILLING TO MAKE SOME SACRIFICES FOR NATIONAL WELFARE. MARGIN OF PROFIT IN COFFEE BUSINESS SO HIGH THAT GROWERS CAN WELL AFFORD TOHARE OF FINANCING REFORMS. THEIR FEAR IS THAT LOCAL OPERATION OF REFORM LAWS IS ADMINISTERED OUTSIDE GOVERNMENT AUTHORITY. HE DELIEVES ARBENZ IS UNAWARE OF SITUATION OR IS FORCED TO IGNORE IT BECAUSE OF INABILITY TO DISCIPLINE RANK AND FILE. IF ACTIVITIES OF THESE GROUPS ARE OUTSIDE ARBEN2 DIRECT CONTROL, Q. EELS LOCALIZED VIOLENCE MAY BREAK OUT ON ISOLATED FlNCAS, SUCH AS HIS.

^PLANS TO STAY IN GUATEMALA EVEN7HE YEAR IN WHICH HE IS CERTAIN ARBENZ WILL STEP DOWN FROM

MUCH OF THIS MATERIAL IS BEING PREPAREDORM AND WILL SE SUBMITTED SOONEST. ArjOVFT APPLICABLE TO THIS CASE.

Original document.

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