Created: 2/17/1954

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Chief, Lincoln


FROM : chief of Station, Guatemala


of Conversation with Niearaguaneb 5U

Letter Concerning Interview with Foreignob $fc

Attached hereto are copiesemorandum of Conversation between Charge d'Affaires William L. Krleg and the Niearaguan Anbassador to Guatemalaebruaryandetter written by the Ambassador of the united States concerning hla interview with tho Foreign Minister.

C. "3

George (Q. Tranger

Enclosures: as notedh








Sr. Aurello^MOffTENEGRO, Ambassador of Nicaragua] Willlsa L. Irieg, Charge.

Ambassador Montenegro called by appolntnent and said that he wished to inforo no of bio talk with Sr.tha Guatemalan Foreign Minister, onegarding tho charges made by the Guatemalan Oovera-aont that General 3DU0ZA and his son had been in correspondence with Ouate-nalwn exiles regarding the possible rerolutionary movement against the Arbens GoTcrnaent.

Ambassador Montenegro said he had informed Sr. Toriello that ho hadtho "fitter fully vith President Sonoza and that the President rejected the charges and implications made ln thetenant of Montenegro said he had shoved Sr. Toriello letters which he had received from Col* Somoxa and asked hla to compare the signatures with those on thocopies which Colonel Somoza had allegedly addressed to Colonel CASTILLO Arras. Ambassador Montenegro said that the signatures were quite different and that the one on the letter to Castillo Anus wasorgery.

Ambassador Montenegro said he had then pointed out to Sr. Toriello that Colonel Sonoza had left Nicaragua in May as head of the Wearsgcan delegation to the Coronation of Queen Elisabeth II in London; that he had returned to the country ln June forew dayshen left for the United Statoe on business connected with the Uaawnic Steamship Line. At no tine during this period had he been at Le Fundador, the place frosi which the letter to Castillo Annas had ostensibly been written.

Ambassador Montenegro had then told theeign Minister that President Somoz* had said there were three powerful reasons in addition to thoseabo re why he would not assist In plotting against Guatemala. In the first place, Hlearaguaignatory to and scrupulously complied with the International conventions which forbid Intervention by one country in theaffairs of another. Nicaragua also Insisted that other countries not Intervene in Hlcsraguan af flare, and would not weaken Its position bythe precepts which it demanded others keep.

Secondly President Sooozariendly feeling toward theof Colonel Arbenz because of thection in resuming relations with Nicaragua suspended during the Administration of President AREVALO. If he had taken no action against Arevalo, he would certainly not do so against


Thirdly President Sonota and his sons were not children; if they had wished to communicate with Castillo Areas or Tdigoraa Fuentes they would scarcely have been so naive as to do so in writing since both thoseenjoy freedom of movement and could easily come to Nicaragua for a

Ambassador Montenegro said that Sr. Toriello had lis tonod courteously and at the conslusion of his presentation had said that he accepted fully the explanations which the Ambassador had made on behalf of his Oovernacnt and that it was his desire to continue cordial relations with Nicaragua.

Ambassador Montenegro said that it was not the practice of his Government to present complaint* inasouch as lt also desired the most cordial relations with Guatemala. Nevertheless, fee- felt it his duty to inform Sr. Toriello that there were several matters which the Niearaguan Govemnent felt should bo brought to the attention of the Guatemalan authorities!

had showed Sr.opyulletin issued by theHovlgtiento de Nicaragucnses Partidarlos de La Denocracia (MNPD) printedwhich said that only in Guatemalaropitious climate andfacilities exist for the Movement to operate. He had pointed out tothat the Niearaguan exiles had thus openly stated that they hadin Guatemala for carrying out their campaign against the GovernmentSomoza.

the recent convention of the Partido de la Revoluclon Guatemalteca

r. Auguato CHARNAUD KacDonald, Krister oF"lnterior ana Secretary

General of the party, had bean presentotion was presented, inrftltinr to the Government and people of Nicaragua, falsely accusing thea ofact with the United States which would permit the stationing thereneriean soldiers. The Anbassador said that he considered this participation of high officials of the Guatemalan Government in such an affair manifestly incorrect.

Ambassador had then shown Sr.ircular letterSra. Laura MaLLol de^ffiiJUDEZ in her capacity as Financial Secretary ofrequesting members^of tho organization to pay their nonthly dues toat her home or at her office inSS. The Ambassador hadthe manifest impropriety of Guatemalan Government facilities beingcollecting funds to finance campaigns against the Niearaguan Government.

li. Ambassador Montenegro had then shown the Foreignopy of the monthly newspaper Iiorlzpnte which contained an article by Jaime DJAZ Roazotto, Socrotary General of the Presidency, in honor of Cesar SANDING which contained highly insiting remarks regarding the Niearaguan Government and which specifically otated that Sandino had boon murdered by the Guardia Nacional, He had told Sr. Toriello that he did not see how it was possibleigh offi-cial of the Guatemalan Government to attack his country in this manner.


In reply. Sr. Toriello had expressed surprise that such activities were being carried on aod said that he had been oat of the country and hence was not aware of then. Ho agreed that the antl-Nlcaraguan activities of high Governaent officials were improper and that lt was equally Improper that an employee of the Guatemalan Governaent use novernment facilities and time for collecting money on behalf of the Nicaraguan exiles. He said that he would endeavor totop to such activities, assuming of course that there was reciprocity on the part of the Nicaraguan Government*

Ambassador Montenegro had then said that reciprocity already existed since none of the Guateaalan exiles who had taken asylum ln his Embassy and had later gone to Nicaragua had stayed in the country; all of them had gone either to El Salvador or to Honduras.

He said his conversation with the Foreign Minister had terminatedote of mutual friendship and esteem. Be had noted, however, that the Foreign Office's statement to the press regarding the conversation had been much less precise than the Foreign minister had been regarding the fact that theGovernment was fully satisfied with the explanations ho had given on behlaf of the Nicaraguan Government.



AMERICAN EMBASSY" Guatemala, FebruaryJ,

I arrived last Friday at theold the pressad moment." sked Krleg to arrange for an appointnont to see the Foreign Minister on Saturday. We wore told that the office waa closed on Saturday; however, an appointment was fixed for uiOO yesterday afternoon.

Toriello, in receiving do, was on his best behavior. He seemed to be going out of his way to be nice. This isxpected. After the usual pro! tad nary exchanges about family,old hla that we were concerned over the expulsion of two newspapermenriest recently frees Guatemala. old him that nothing was acre cherished in the United States than freedom ofand froodoa of speech. nquired whether thishange of policy of his Government. Toriello said that tho Crusoe Incident took placehe made disparaging remarksery high official in the Government. He assured no that any newspaperman could come and go freely as long as they did not slander high officials of the Government. He said as to the priest thatas away he hadery long and satisfactory talk with tbe Papal Nuncio concerning the status of other priests who were now ln the country illogally. He pointed out that many prieots cane into the country as tourists and reaalned for as long as two years. He and the Nuncio had agreed that of the remaining priests here thirty-four are in the country illegally; however, their statu would be legalised although they would have to leave tho countryeek or ten days and then cone back in. He said that Father Sebastianid^ccallafca had been engaged in distributing propaganda. old the Minister that thla waa denied and that we had no evidence of any such activities. He then brought out two

eddy, Esquire, Officer in Charge,

Office of Central American and Panama3 New State Building, Department of State,

Washington, D. C.

paaphletswhich he showed me and claimedase had been distributed by Father Sebastian durine the last elections. sked if this were true why tho Government had waited so long to tako action. Be said that they were merely trying to bo sure of their evidence before taking the step. He told me that any priest oould enter the country as long aa he came in legally and did not become involved in political matter*. old hlaas glad to hear him make that statement; however, my own experience has been that priests here have been very careful not to Involve themselves In political matter*.

On Banaell, be said he was expelled because he appliedesidenttoommtic factory where he had never done and engaged inmalicious articles against theold himas not aware of these articles of Ur. BannoU's andad not seen them.

He reverted to hie conversations with President Eisenhower and said that while he accepted Ur. Cabot's word that he did not have shares in tho Fruit Company, he recalled Ur. Cabot had told hla sometime before that his daughter had some shares but that he was going to dispose of them. Secondly, he told the President that the Secretary's former law firm, which lncliaied Allen Dulles, represented the railroad and therefore he could not be unbiased in his approach to Guatemalan problems. old the Minister that this was far from the truth; that the Secretary had had nothing to do with his law firm for aany year*lao knew that Mr. Allan Dulleo had no interest in hla law firm; that both of these aen were making personl aacrifices in order to contribute to the welfare of free peoples throughout the world; that nothing he could say would make me bell ere the Secretary could be influenced by actions which his former law firm took; andesented his statement concerning the Secretary's being biased in matters affecting Guatemala.

He then said before he was leaving Washington be had suggested toan-partisan commission composed of people not connected with ths State Department be appointed to look Into tho affairs of the Onited Fruitthe Electric Company, and the Railroad here in Guatemala andolution. He aald the President had told hla he thought thi*ood idea. (Would you please check with General Smith on thia.) He asked as to yaiae thia question with Washington, since he had discussed it withArbenz who was in full agreement.

This is an obvious move on their part to start negotiations beforeold Mr. Torielloould, naturally, report what he had saidelt that there wore other Issues hehould discuss first, namely, communism. Ho said the issue had been greatly over-stated and that ho would like to talk to me about thisater date. Ho had two hugo volumes of press reports from the States and told me that the Government had not made up its mind whether they ahould go to Caracas but that he personally was in favor of going and would probably head the delegation.


It waa nice seeing all* ai sorry that my trip was cat short,eel that lt was extremely worthwhile to me being there and getting theof the Department, le get the feeling that things are moving fast here. Tho Governaont la worried but will probably adopt even harsher measures before all this is throagh.

With warm personal regards.


John E. Pour if oy

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