Created: 1/21/1954

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Visitor* to. Seeking Contact* with Rig Business, Financiers, D. s. Government Officials and Senators, including Senators 'lindt and McCarthy.

J. Recent reports pointonsiderable traffic of Guatemalans rial ting the United States seeking contacts with business concerns, bankers, Government officials and certain Congresaional figures, depending upon the allegiance of these travellers the ourpose of their visit* le to launch substantial business deals and/or dealsilitary significance for the Ouateaalan Oorei-iieciit, or to promote financial aid and other support for movements and organisations actually or allegedly oppoein* the Arbenz Qovaimaeut.

2. The SH Division ia watching this situation closely and endeavors to (a) take coun tor-ocao block business transactions and financial aid that might benefit the Government of Guatemala, and (b) check and exploit visitor* that appear to represent opposition efforts.

Whenever possible, KHD tries to take steps to bring suchactivities under some sort of preliminary control bydirectly or indirectly with the coarse of action governingoperation. This is being done primarily in cooperationtwo indigenous principal agents (RUFD5

3. Of particular interest arm reports covering the visits of ten anU-Cowmrdat Guatemalans, AHEMAS and OCARA, who visited together in th* United States during December and January.

^Kffi*5fl Guatemalan anti-Comunist conrressman who defeated the Co-arunJst candidate In hie district of Guatemala City not long ago.

OCAMA is knownoading official of the Partido de tJnlfioacian AnticomrmiBtaolitical party that claims an active membershipeadquartered in Guatemala City and reportedly supported by the Catholic Church, the Asocacion Oeneral de Apr! col tores (AGA) and various professional and educational organisation*.

Both nan have personal affiliations -lth. ARENAS baa three aono attending school in thia country, andaughter ls sarried to on American lawyer residing in South Dakota.

. - On their way from Ouateaala to Washington, these twoprincipal agent(of PBSncCESS)

dicating to him that their anti-Cocwunist organiseUon waa gathering ao**mtuato current trends of unrest within Guateeala. They toldt hat they were going to Washington to promote general support and possibly financial aid through contacts with Statef'icialB and various fenatore including Sen. Carl Wundtersonal friend of ARENAS.

I*- dviaed ARENAS and OCANA in general terns -not to become involved with official contacts in aashington as general plans were well underway and their (ARENAS' and OCANA*a) action would only Jeopardiee the whole deal."

said to have urged the two men "to

organize quietly and by all means be patient."

Although PBSUCCESS in principle is interested in the PTJA, thla potential asset has not yet been firmly included in the structure of PBSUCCESS operations. The PBSUCCKS Operations Base is currently checking into the ARr.NAS/OCiNA (PUA) setup and willirm position regarding this Issueoint meeting with ROTO and C ^scheduled forU. There le athat the PDA unwittingly has received some strictly proUnlnary and indirect aidery Halted scale froa IKtFUS and uring the early stages of PBSUCCESS. TMb ia being chicked.)

<taahlngton, ARENAS and OC NAumber of conversations

withRay Leddy at tbe State rsparteent. According to teddy, they

J> Partido de Unification Anticoounistand to. assistance. Their idea of aid waso finance expansion of their organisation, launch anti-Cccmunist denonatrations and to procure ao-so arms.

^ARENAS and OCANA were told byLcddy that although there currently^isconsiderablefor their cause within the united states,. Governnent is in no position to extend any promises or make nny coivnitaonts relaUve to positive aid to the PTJA, financial or otherwise. In this connection, teddy indicated that be waa awareeen interest ln all anti-Conmmlst opposition within Guatemala on Uie part of many private parties in North America.

; s-

Altogether, Leddyalf dozen meetings with ARENAS and OCAHA at the State Ivpartavnt during whloh he learned that they intended to sake certain contact* on Capitol HUl (Senator Mundt and others unnamed) prior to their return to Ouatamala.

6. After ARENAS returned to Ouatemnla City to attend the opening of the Guatemalan Congressk, cables from our Guatemala station and the PBSUCCESS Operations Base at VDHXXM,, and,) reported that while ln nashington ARENAS contacted his friend Sen. Karl >Wt who referred him to Sen. JJcCarthy.

According to said reports,talked "In detail-informing Sen, wcCarthy of hie conferences at the State Peparteent referred to ln the aborm). Reportedly McCarthy was Interested but, so far amknow, offered no igjhlf. support.

The cable from Guatemala City specificallyeeting. Embassy Chancellor SRI ECn fhiateamla City Informing hla that he (ARENAS) hadLeddy (State) ln great detail, with San. McCarthy in detail

ARENAS furthermore infonaed kkikg that he had at hio0 in. which he needed to have transferred to Ouatonala to support anU-Communlet activities of the PUA. He aald that the PUA effort would be activated in February before the Caracas conference orS scheduledu.

ARENAS further said that OCAHA had remained in the United States to tie up details aad that he (ARENAS) planned to leave ona to visit Venesuela, Nicaragua, Honduras and El Salvador on behalf of the PDA movement.

7. The ARENAS/OCANA move* in effect represent oneumber of Guatomlan anti-governwamt interests that merit close scrutiny reLaUve to the PBSUCCF-ss operation. On their own, these various individual efforts might Jeopardise the systematic build-up of PRSUfCSS and cause considerable damage to that operation by penerating premature action which could cause the wain effort to abort.

By the same token, it la obvious that the PBSUCCESS effort could be seriously jeopardized in tbe absence of completo coordination within all elements of. Covernmsnt in Raahlngton.

Original document.

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