Created: 1/28/1954

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chief of station,Washington

mtl-tovfnwnt AotiritlM and AttUaata.

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t. in ibjiiiii of* relating .to tb* alleged view ef Ua. bjlu taand Alejandro arzmu3 8t. contain lafor-AIoo oowandn. feaalaa* arkee, the poaeibilltjiiaanl iWlneplrad "bogstesa- prior to tho OASGown, tba "proaMtiUd- OutaaanndI aerolng tha aaa of wiled forcon.

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TO: The Charge.

FROM: John Calvin Hill,econd Secretary of Embassy

An associate of Lie. Eugenio SILVArequested toonversation with ne a; my house oh the evening of Saturday, Januarynd told me the following:

Lie. Silva Pefta and Alejandro ARENALESadong conversation the previous evening about what could be done about the situation here and had reached tho following conclusions: (a) President ARBENZ waswith the Communists end nothing could be done with him; (b) the Array waa completely Bprostituted" and could not be counted upon to act in the near future; (c) the situation was pressing because thereeal danger that the well-armed Communist Government forces would deliberatelyBogotazo" before the Caracas Conference in order to confuse the situation and tothe United States with the unpleasant dilemma of having to choose between premature and forcefuland seeing the internal opposition liquidated: and (d) that therefore the only way out was for CASTILLO Armas and others on the outside to invade the frontier areas soon with "outside"upport, in which case the internal opposition could act and the Army could be expected to come over. It was, as my contaot reported it, their idea that Castillo Armas and the exiles should be ready to Ptrike as quickly as any disturbances broke out.

My contact went on to say that Silva Fefia and Arenales were nationalistic and would not openly say to the Ambassador or the Embassy that Guatemalans needed non-Guatemalan help to solve their problems. However, they wished to know the Ambassador and the Embassy better and we should be alert to read between the lines as to what they had to say. He added, as his personal opinion, that Silva Pefla was becoming interested in doing something about the Communist problem here but would not be prepared to act for several months to come.

I emphasized that it was well that there was no thought of approaching the Ambassador or the Embassyequest for material aid. W* were committedolicy of non-intervention andequest could not fail to be embarrassing to the Ambassador and to

put him in an impossible situation. On the otherdded, ltistake thet Guttemalanu sometimes made to think. help solely in terras of arsis, plotting, etc. The problem of Guatemala and Communism touched on many points of our legitimate political actiTlty in the international sphere and there was much that we could do to help opposition to Communism apart fron :iuch narrow considerations as arms aid. We needed, for Instance, sound advice from Guatemalans opposed to Cosminlnm as to how various policies we might adopt would affect their plans. We could do much to help inlimate favorable for Guatemalans resisting Communism,hought thst the Ambassador or the Bmbarry would always be floated to hear views on this subject.





Mr. Krleg

A. B. iardlaw



The source of certain reportaare submitted recently Informed ae last night that the anti-Communist, group continue* very much concerned about the situation which Is likely to develop In Guatemala City when they put into action their plan of an Invasion of the country. While the anti-Communista feel that the Amy would remain neutral or would even assist the invaders, the Army would bo no match for theivil amd the Communist-led workers whose arras would be much superior to those of the regular military forces.

My Informant also said that the antl-Coamunlst group Is very much afraid that Army leaders auoh as Colonels DIAZ and 3ABCHSZ might anticipate the Invasion by stagingcoup In ths capital which would result ln the overthrow of ARBEHZ but would not bringeel clean-up of either the Communists or the crooks in the Government. The entl-Cctnuniats are afraid thatove wouldisorganisation of their own wovemeut and leadpersona to supportovernment ln the false hope that they would taJce caro of the situation properly. He said thatove might oeour at any tlae.

My informant statedormer Army officer whoawell and trusts had told him that Colonel Anselmo GETELLA was with the anti-Communistsj whether he meant that he was in the organisation or merely sympathised with thorn was not olear.

tn* racent departure of Major Alfonso ttARTIKKZ, my Informant stated that he had learned from the Swiss Consul, Mr. Roberto FISCHER, that when Martinee appliedisa he wasrief oase full of United States currenoy. By Informant did not know whether this currency was being used to pay local bills or was assembled by Kartlnes to use on his travels. However, if ths purpose were to pay local bills, there would be no reason for him to assemble this money. currency. My informant was also told by the oenerocal bar and restaurant that Martinet called at theay or two before his departure and personally paid his bill of some The payment of the bill was not unusual, but the fact that liartlnes called personally for that purpose was most unusual.



Tho attached registrations pertaining to new affiliates of the Alianzae Guatemala (in ChioulmU) wore obtained by iron

aenber ofSindicato dc Trobajadores de la Educacitnd tlio Pnrtido Guatcnalteco del Trabajo (POT).

Theoe registrations were obtained3 at which time SANDOVAL made the following statements:

The AJDG, the Frente Unversitario Democraticohe SAXER-TI group and other democratic youth movements in Guatemala are actually affiliates of the POT and prooently are doing the moat effective work In tho campaign to increase PGT membership. Registrations (such as those attached) are being obtainedthe country.

The real strength of the cooaunist party ia not ln the official parties as is commonly believed but in the youth roveoent.

At tho request of the Cceite Ejecutivo de la Federacion I'.undial de la Juventud Deaocratica the local democratic youth croups areestival in Guatemala (which will be attended by delegates from all the countries of the American continent but the meeting itself will be called Festival de la Juventud doeluatemala was chosen as the site of the festival because none of the other countries enjoy the necoosary liberty to organize and holdooting.

Tho attending youths will represent all typos of organizations: nolitical, religious, intellectual, athletic, cultural, workers and campeslnos, students, etc. Preparatory activity will include tho formation of local and national committees in all countries having groups affiliated to the FHJD (which will collaborate with the organizing coardttee for the fostivol to bo held in Guatcnal According to plans the mooting will be moret will be atoand defend the rights of youth, and to attract nore voung people to tho cottiunist novoient.

Tho festival or conference will fi.-Jit for the follovlnr. objectives: eduction of uilitary budgets and cmod forces ln order to prevent wars; estab-linlssont of international economic; peace and friendship among the peonies or thoeduction of uncmnloyuent; rechanization of fare lateprovo the living standards of youths onployed in agriculture; reduction of illiteracy; reduction of the costs of education end an increase in government scholarships; cultural and athletic oroort unities for youths; political ripfctsyouth to prevent the harrassnont and suppression or their associations, press, radio, and ot:-or aejtf vttics*.and opposition to tho militarization of youth.

The nropesanda of tho youth rroupa in Guataiala is intended to createublicity for thetich idll abort lytho na^ority political party, (bee raise of its Btrupcle in behrlf of the workers and because it willjority of tho pro ressive youth of the country).

Tho conroaiists havo an edvant.'VTe duo to the fact that anti-cotztunlst forcea are concentrated in the capital. In tho departments thereardly any anti-con.iuniot opposition. Also, sntl-caiuniat forces conoi nt of olderiile tiie "revolutionary strupRlc'1 is carried on by youths.

".'ue. oconar.de crisistheverniient now faces is transitory, h'cxt yow tiio benefits of Agrarian Rofora vill be felt in tlio nation's econoay. Tho now land owners will receive incorae froa their crops and ulll spend this iwioy to lnpi-ovo their way of life. This money will also renaln in the country and idot be spent on trira abroad aa it was in tho past by the large finca amors*

tated that SANDOVAL is director of tho Escuela Tipo Foderacion del Quiche. He is now on vacation and ia visiting the capital where he is forking with the orrpnizing comoittee of the Festival de laid not aaccrta: the date of the impending festival end seeaod to think that Sandoval'sre inth the festival"ill take place in Chiraaltecango Inowever, thatational affairelieve it will be followed by an International festival later4 (around October).

Original document.

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