Created: 2/14/1954

OCR scan of the original document, errors are possible

eonoth S. GIVXCCH

Ideas In Responso to

reference toequesting that certainobtained from JKBLBG with regard to hie ideas concerningprogram,f any new government, prior toonferred with Mm, and he veryemorandum in answer to the specific questions you Attached ia one copy of the memorandum prepared by him.

He specifically atated that he had not had much time to think over thla matter after receiving my request and that thla memorandum should not be considered as an official expression of Ma opinions with regard to the subject matter. Be pointed out that it is very brief and vill serve to indicate the line on wMch ha is thinking and was submitted by Mm solely with that intention.e atated that in order to convey Ma ideas in full it would be necessary to exchange ideas end discuss in detail the various points in the memorandum, since some times words used may be Interpreted according to the background and orientation of the person to whom Ms ideas are conveyed and not be exactly the interpretation he intends.

As of further possible Interest and use ln determining what political program should bead George L. HUNGER of the Guatemala Stationemorandum of Ma views on the same questions. Attachedemorandum by him wMch may be of some help. TRASSESeen observer and is an officer of sound judgment,hink that Ms views definitely should be taken Into consideration in preparation of tho prograa.

Station Guatemala does notopy of either of the above-described memoranda.



What political platform should an anti-Communist group which la seeking to overthrow the government aapouse?"

Answer: One of the best guides tolatform isin the letter sent by George Meany, President of.o President -'Arb/enz published in the New York Times of Sunday, February 7. In addition to the points mentioned in thatew group should reaffirm its belief in the freedom of peoples and the dignity of man. It should definitelytself with the western world.

What should be the announced position ofroup on matters of agrarian reform, foreign capital, the role of the army, the role of labor unions, the subject of nationalism, etc.?"

Answer: roup should make definitely clear that it has every intention of seeing that land is available to those who need. Ityvhowever, SUch land should go to the" Indiana Who want the land and not to Favorites for political rencons. The word "Agrarian" should be dropped, and the term "Land Reform" used. roup should announce that it will administer the law impartially and that it will pay fair and Just prices for any lands taken over under the law. It should point out that the present situation has gone beyond the law and that anarchy rather than orderly government is taking place. Foreigi capital should be invited to come in with proper guarantees to the investors while at the same timelatform should make clear that Guatemala would expect just returns from suchand would not expect to be exploited. This will have an appeal to those who are true nationalists but are neither pro-Communist nor anti-American. The Army should be told that it will be rid of its leaders who are permeated with graft and that such leaders will be removed from office. The standards of the rank and file of the Army will be maintainedigh level and they will receive necessary equipment for their training in order to maintain the security of Guatemala and this Hemisphere in association with the other American states against Comraunist aggression. Labor Unions should be told that they will be free to


elect their own officers and not to be dominated byr three at the top; that toeally truly effective union they must be free not only from those without who would exploit them but from their very own. They should certainly be encouraged toith the free labor movement of the world and no longer be subject to the domination of the Soviet-controlled trade unions. Nationalism: It seems to me that the new group must of necessity stress the sovereignty of its nation while at the same time making it clear that this does not mean it does not welcome help, technical know-how, and assistance from its friends. The new group should make it clear that they stand on their own feet and are not subject to any foreign power. For instance, the very able newspaper Prensa Libre, while vehemently opposed to Communism,ould not regard it as. by any'stretch of the lmagirtation. They do not hesitate to criticize us on small issues if they think we are wrong purely on the merits of the case, but on the large issues this newspaper agrees with what the United States is trying to do in the world today. Ve must not confuse, in our desires toew group take over, nationalists with anti-gringos. Some of the intellectuals are very proud of their country and should be. We must be very careful not to alienate them. Today they are on our side; we want them on our side tomorrow.

3. "What political actions must an anti-Communistnce it has seized power carry out in order to remain in power? What should it actually do on the planks contained in its pre-coup platform after coming into power?

Answer: It should immediately move in by replacing those known as Communists or* fellow-travelers. It should restore the Board of Education to non-Communists, it should oust the Communist teachers, it should regain its control over radio,eform, and other Important places where the Communists have infiltrated. The new group should not take punitive measures against people who just disagree with them or who were personal enemies in the past. They should be very tolerant of opposition in the country so long as it is not Communist. They should promise within six months to hold really free elections,Hink it is incumbent upon ub


assist behind the scenes in any way to see that this is done. Unquestionably, the new group will have to be ruthless with sorae of the old. Perhaps there will be trials. They should be conducted fairly and openly against those people who were traitors to the State. With regard to the second part of ths question, the new group should make every effort to carry out its platform. One of the first steps it should take would be to invite the three large American Interests in Guatemala, namely, Ebpresa Electrica, the Railroad Company, and the Fruit Company, to ait downable as friends and discuss new contracts. This in itself would have terrific impact on the people. Some preliminary work may be done in this direction by ourselves. While It Is desirable to see new contracts negotiated, it Is incumbent upon us to see that American investments receive fair, returns. The new group should promise to make proper Indemnification for properties seized;and,actually, after they have really examined them convinced that they will find that there is no necessity for exploiting all the land that has been appropriated sinceatter of fact there is no shortage of land in Guatemala and the needs of the poor could be taken care of very easily without disrupting free enterprise. The Government should encourage the big land owners themselves to Join in this movement. As ofm convinced they would be most happy, but sometimes after the fruits of victory people are inclined to forget the dangers they were in and some of these people

bad Tor. The new group should promise nothing which it could not reasonably produce, bearing in mind, of course, that "politics are politics."

I might say that there are many gaps perhaps in thisave dictated it in the last fifteen minutes between appointments. eiterateaid in the first paragraph that the basis for its new foundations can be found in.s letter to Arbenz of February 7. They must be tolerant of those who might oppose them but are not Communists; they must be ruthless with those known Communists. Naturally, they will have many friends to take care of; however, they should be encouraged to pick the ablest and not let the spoils system completely take over.



Agrarian reform:

ft. distribution of economic oily efficient plots to landless campesinoa in order to raise standards of living and to make it possible for landless canpesinoi to become part of "economically effective" populationroducers of marketable surplus rather than mere subsistence farmers).

b, establishment of agricultural vocational schools to teach modern methods of agriculture

aid (technical, financial, training) in Introduction ofto assure diversification

expansion of highways to permit easy marketing of crops

assistance/planning to assure economic balance betweenand foreign consumption

financingon-political basis to aid now landownersestablishedurchase seeds, equipment, etc.)

of cooauniat-inspired featuree of present reform lawbeneficiaries government serfs

of qualified professional persons to supervise applicationreform and elimination of political hacks who lacksuch matters.

action to assure expansion In other fields that willfor increased agricultural production resulting from agrarian rafo

yvw^_ "t. Oeve^u LX^XL JU-X


Foreign capital:

of past ppoclal privileges enjoyed by foriirr. capital

aid and guidanco to encourage investnent of native capitalof new industries and expansion of old

o* encouragement of foreign capital investments(on reasonable terms not inimical to national interests or native capital) when local capital resources are inadequate to undertake large-scale improvements.

d. protection of national interests by establishment of reasonable iwudjsums In profits that may be taken from country bynvestors.

to assure maximun utilization of native labor in allforeign concerns

f. prohibitions against economic/political meddling in internal affairs by

foreign investors and precise understandings regarding investment conditions in order to avoid diplomatic representations and conflict between govern-mants*


3. Role of annyt


to the defense ofconstitution (which willthe establishment of political parties based on foreignadvocste the overthrow of'opposing types of government byaa,subversion, illegal manipulation of electoral processes, etc.)


O o

;,. Labor unions I

of labor organizations devoted to genuine collectivededicated to the harmonbus progi'oss of both labor and industry

of non-parcial mediation services comprised of laborrepresentatives to assure fair and orderly solution of


of/government participation in labor/industry negotiationslegitimate objectives for workers (ndnimum wages, safetyand retire&ent benefits, etc.)

against activities of international agitators and organizerslabor matters


of popular demands for economic/politicalassurances that ouch will be guaranteed by vigorous pursuitpolicies within the broader framework of

of friendly relations with ail/Fountries,Central Aoerica for the purpose of reauning former positionin that- area

of satisfactory conclusion to unresolved question of Dolice

of communists and sympathizers from Rovernment to endof Guatemala fron rightful place in the ranks ofdenocracies


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