Created: 1/11/1954

OCR scan of the original document, errors are possible

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J JAN 11

: Chief of Station,


Attached for the information of Headquarters and Lincoln are copies of Chronology of Events for the12 prepared by the American Embassy, Guatemala.

Chronology3 is being prepared and will be forwardod as soon aa it is available.



aa noted



ashingtonncl (in r.incolnncl (inencl


Guatemala. A


Jan. Guatemalan branch of Soviet-sponsored "Peace" campaign, headed by Luisragdh, holds meeting of interested persons in hall of the Teachers' Union (STEG).

Saker-Ti, left-wing, young intellectuals' and artists*ation, announces "Peace Poster" contest.

Jan.n interview publishedexican newspaper and re-published in Guatemala's Dlarlo de Centroamdrica, President-elect Jacobo ARBENZ Guzman denies relations between Guatemala and U. S. are strained; says this false impression has arisen from Guatemala's bad press in some "reactionary" American papers and fromroper acts" of cortain diplomats; anduatemala will continue to accept political refugees of all categories.

Jan.esolution of Ministry of Economy and Labor establishes controls over cotton production and prices; fixes prices on raw cotton; requires registration of cotton growers; regulates importation and distribution of cotton; freezes textile prices; establishes five-man control board.

Jan. Ex-President Rdmulo GALLEGOS of Venezuela arrives in Guatemala as guest of Guatemala Government; in press statement, praises President AREVALO andon-recognition of presentin Venezuela.

Jan. Government cancels resolution of Januarymposing controls over cotton production and prices.

Jan. 2Ii - Guatemalan Congress opens "lams duck'1 sessionlections.

Jan. National Treasury unable to pay salaries of Members of Congress for lack of funds.

Jan.uatemalan Ministry of Foreign Affairs issues statementSalvadoran initiative in favor of establishment of ai Inter-Americanf Justice.

Jan. Supreme Court re stores Chamber of Commerce's legal status: rules Ministry of Economy and Labor lacked constitutional authority to deprive it of legal status in

Union (STEG) demands salary increases and adjustments due undor law of

inal results of0 elections for naif ofseats announced. Left-wing, Government parties haveeats, oppositionivided as follows:

Revolutionary Action Party

National Renovation Party

Joint PAR-RN

National Integrity Party


Democratic Union Party

People's Party

Anti-Communist Union Party


ommunists of Octubre group (faction standing for more open tactics) launches campaignopular Front.

Ministry of Foreign Affairs sends note to U. S. Embassyto proposed invitation to President of France to address Washington Meeting of American Foreign Ministers; states this would represent intervention of non-American state in Conference and would be contrary to meeting'scharacter.

Oscar BARAHONAosta Rican technician, resigns as Director of Guatemalan Institute of Social Security following press campaign by official and pro-Government newspapers. Among charges was that he had plotted withAmbassador Richard C. PATTERSON, Jr. against Guatemalan Government.

Cia. Agricola de Guatemala (United Fruit Companyfter reaching agreement with union, puts Diesel locomotives, imported eight months earlier, into servico on Pacific section of railroad.

Feb. Guatemalan Customs House's reclassification of cheese to pro-tech domestic industry violatesGuatemala Trade Agreement.

Feb. Guatemalan Minister of Interior orders deportation of Alirio

olombian national,rCroyal aat of tho La Laguna generating plant of -ncrican-oimcd Sfcprcsaad been demanded by union after Labor Court ruled union'unwarranted, thus avoiding threatened illegal strike.

Feb. Local press reports Council of Organisationerican States (ODECA) refuses to add Guatemalan resolution on asylum to agenda of Washington Meeting of American Foreign Ministers.

Feb. Lame duck Congress awards disputed Congressional seat to labor (Communist) candidate Jose" Alberto CARDOZA, thus reversing decision of National Electoral Board which had declared it won by PAR member Francisco VALDESCalderdh in December

Feb. PAK, Goveniinent-aupportijiG party, publishes teuiifesto (l) plcdg-ing support to "Peace"istinctionits friendship for the U. S. and its hostility toward American-owned companies ineviewing the Party's history; and (li) setting forth its platform.

President announces that Antonio GOUa.UD Carrcra, Guatemalan .jnbassador ton Guatemala on consultation, hashis resignation.

resident AreValo presents annual message to Congress.charge former U. S. Ambassador Patterson had engaged in conspiracies against Guatemalan Government.

ew Guatemalan Congress, oloctedonvonos in first ordinary session, elects followine officers:

President: Roberto ALVARADO Fuentes (Secretary

General of PAR) 1st Vice President: Oscar JIMENEZ de Leon (RN) 2nd Vice President: Julio Alfonso /JEZOUTTA (FPL)

lliance of TJemocratlc Guatemalan louthocalof Soviet-supported HTTTf,j-iual convention in Guatemala City. Features "Peace" theme snd attacks on United States "warmongering" in convention speeches.

Payment of salaries of Goneral Hospital ccloyces delayed.

ongress electa Lt. Colonel Carlos Enrique DIAZ to slx-yoar term as Chief of GunLornlan Armed Forces.

Salaries of teachers and omployGos of Departments ofAgriculturo, Public Health and tho Post Office

Ministry of Economy prohlbita importation of certain metal

products for building purposes for one fear and requirespermits for others.

Goubaud, ex-Guatemalan Ambassador to U. found dead at home, reportedly with wrists 3la3hod.

March- President Arbeni succeeds President Are'valoo In farcwoll

address, latter atrosses "plots" fomented by "foreign interests" and draws historical parallolf-'ostructivo coomor-clalism of ancient Carthago and, by impli cation, of U. S. In contrast. President Arbenz* inaugural address calls for national unity, advocates economic and social development of Ouatemala, and promises support for any effort at peaceful understanding between U. S..

Marchow Cabinet formed by Presidents follows:

Foreign Affairs: Manuel GALICH (FPL) Finance: Augusta CHARNAUD MacDonald (PAR)ublic Works: Major Carlos PAZ Tejada


Economy and Labor: Manuel NORIEGA Morales (non-party) Defense: Colonel Jose* Angel SANCHEZ (non-party) Publicelfare: Carlos TEJEQA Fonsocaf) Education: GAN Garcia (PAR) Interiors Rarairo ORDONEZ Paniagua (RN) Minister without Portfolio: Lt. Col. Elfego MONZON


Agriculture: Nicolas EROL (PIN)

Marchew President's Inaugural Ball attended by all elements of

Guatemala, including those which had boycotted officialduring AreValo's administration.

Marchational Economic Council created by President Arbenz as high-level policy group presided ovor by himself andof representatives of Government Ministries andagencies.

Marchew Foreign Minister Galich tells press that Guatemalan delegation to Washington Conferencecrican Foreign Ministers will support hemispheric solidarity but will mainly concern itself with protection and development of Guatemalan economy.

March- Government announces Guatemalan delegation to Washington Conference of joerican Foreign Ministers, vdth Foreign Minister Galich as chief delegate.

Marchuatemala ratifies Atlantic City

Marchtatement reportedly made by Foreign Minister Galich at April 5 Washington Conference of Foreign Ministers thatingle Guatemalan would be sent to fight abroad; official andpress heavily publicizes statement.

Foreign Ministry requests Congress to ratify Charter of Organization of American States (ODECA) with reservation that nothing in it shall bo considered as preventingfrom asserting its claim to Belize (British Honduras) at any time and by any moans Guatooalauitable

Humbcrto GONZALEZ Juaroz, returning Guatemalan delegate to Conference of American Foreign Ministers, explains to press that Foreign Minister Galich had not declared Guatomala to be anti-Communist because Guatemaladcrocratic country".

President Arbenz, publicly approves work ol Guatemalanto Conference of American Foreign Ministers; emphasizes Guatemala's desire for peace; and maintains Guatemalan troops cannot be sent outside ilcnispherc without violating principle of non-intervention and opposing statutes of UN.,

ommunist Party of Guatemala makes firsc public appearance in two pronouncements published in its official press; previously only newspaper Octubre had been openly Communist.

AprilLO and Guatemalan Government sign basic ^grccnent onassistance,

Apriloreign Minister Galich emphasizes to profshas

assumed no new obligations at Conferenceorican Foreign Mini sters,

Aprilinistry ofd Laborc-tation of boor to protect domestic beer industry.

CA rail^ workers go on strike0 Strike settled favorably to workers by mediation of Minister of Etrnom aad labor. CoiLpany agrees to reinstate nine employeesc discharge for thievery had been occasion for strike, and tc payormal wages for time out on strike. UtJ- retains bulk of supervisory personnel whose dismissal was -ler;.nded by workers,

Aprilreme Court grc.rii injunction oo-ught b 'i-Coinmmist(PUA) against cancellation ofin

0 by National Electoral Board.

Aprillfonsoro-Conrjunist member of FAR, elected to three-man National Electoral Bocrd by Congress.

Aprilroposed Labor Cedeubmitted to Congress by Special Comaitteo, would give labor unionsly unlimited right to strike, remove labor unions largelyv.'ornncnt control, and place heavy pensions burden on employers, proposals arc hotly debaicd in Congress uhtiliscussion not since resumed.)

Aprillfonso SOLORZAKO, pro-Communist PARppointed Director of Guatemalan Incti*ute of Social Security..

Aprillvarado FucntosProf'.dcnt of" "spouses "Peace"in Korea,

Aprilinistry of Foreign Affairs issues statement denying that

Communists hid infiltrated influential positions in Guatemala, as chargedcw York speech bymbassador Patterson.

Aprilbel CUKNCA, Contaunist, appointed Office Manager of theInstitute of Social Security,

Apriluatemalan Governrx*nt and ILO aign supplementary agreement on technical as ai stance in connectionininun wage study.

labor Day parade features placards emphasizing Communist"Poaco" line and internal questions, such as demand for minimum wage law and revisions of the Labor Code, Prooidont Arbenz nakoo moderate radio speech to woriters.

adio reports President of Congress Alvarado Fuentes and ox-President AroValo endorse sending of Guatemalan delegation to World Youth Festival in 3erlin in August.

x-Prcsidont Arovalo visits llabana, Cuba, acccsapamod by throe ex-Cabinct Ministers and officials of present Government.

ongress ofLatin American Air and land

Transport Workers' Unions meets in Guatemala City; Guatemalan Cabinet and other-officials participate In meeting; Louis SAIL1AWT, WFTU Secretary General, and Vicente LOMBARDO Tolodano, Prooidont of CTAL, attend.

May Latin American Transport Workers Conference appointsec to prepare for centralized Gun tonal an labor organization.

Mayuatemala ratifieo Charter of Organization of Aaericajith reservation concerning Brtti sh Honduras prepared by Government on April lu

May Charnaud MacDonald, Minister of Finance, resigns from PAR.

May Arbenz Administration publishes prograa in booklet stating that Government'e policy objectives arc to convert Guatemala into economically Independent nation, to transform it into modern capitalistic oountry, and to raise goncral standard of living. As principal means of obtaining theso objectives. Government will promo to industrialization.

May Guatemalan Government announces docision to reopen border with Belize (Britishlosedxplaining cove as answer to requests of many Guatemalans and Balicenos tonormal trade relations and as in accord with developing cordial state of relations iTith Groat Britain,

May Guatemala's ratification of commercial treaty with Denmarkoffoctivo.

Mayovernment cancels fines imposed on firms closed during0 political disturbances.

May Number of PAR Deputies in Congress and other Icadors announce resignation from party; moat prominent aro Congressmen TBJADA Barricntos; Aaor VELASCO; and Carlos OARCIA Manzo; and labor leader Leonardo CASTILLO Floras.

May Guatemala's ratification of World Meteorological Convention

signed by Guatemala in Washington onbecomes effective

May Guatemalan KAO Technical Assistance Agreement, which was signed on Septembers ratified

May District PAR Convention demands resignations of Chamaud Hac-Dcnald as Minister of Finance, and Carlos GARCIA Manso and Amor Volasco as doputics in Congress; oil arcnonbers.

May Congross ends regular session.

May Press reports Licenciado Alfonso BAUER PAIZ appointed to study contracts between Governncnt and business firms.

Nicolas Brol, fonistor of .igrlculturo, announces National

Economic Council will permit importsuintales of sugar to relieve sugar shortage.

"Partisans of Peace" Coocdtitec, in public meeting participated in by parties PAR, RN and FPL, claimsignatures to petition for tho (Soviet-sponsored) five-power Peace Pact and goal raised0ignatures.

Taxes on aguardiente (local alcoholic beverage) incroasedor liter. Consular foes increased fromto

In order to stabilise revenue, Congress authorizes Executive

to issue short tern,reasury Letters duringp to an amount corresponding to lftZ of toxo3 and othernucs duo to the Government but not yet paid.

ive political prisoners escape from prison, including Lt.

Col. Carlos CASTILLO Armas. Latter takos nsylun in Colombian Legation, others in Mexican Embassy.

June SAHF railway union elects Aristco SOSA Secretary General

following heated contest reIfocting deep-seated aninositios between entrenched leadership ha reprosonts and other factions.

June Congress begins Special -Session.

June Deputy Julio ESTRADA de la Hot (PAR) makes speech ln Congress attackingownod International Railways of Central America (IRCA) and askso pass law requiring IRCA to payuncollected charity-tax on pasacnger and freight charges.


June United Fruit Coapany and Agricultural and Deck Workors' Unions initiate fornal negotiations for new collective contracts.

June Guatemalan Conmuni3ts hold public mooting to obaorvo first

anniversary of Communist newspaper Octubre. Mooting announces intention of Communist Party to seek registrationarty with view to entering future elections.

Juno Round-table discussions on Guatemalan ocononic development initiated among representatives of Government, Chamber of Commerce, Association of Agriculturists, -association ofand labor organizations with agenda covering Government's ocononic program: viz. agricultural production, industrial production, coominications problcmc, labor and management relations, and foreign economic relations.

Juno Ministry of Foreign Affairs announces, after exchange of notes with Colorx>ian Legation, it will grant safe-conduct forfron Guatemala of Lt. Col. Castillo Aims. (See

June Press carrica announcement that throe Sisters on teaching staff of Guatemala City orphanage boingo provinces by Government.

Juno Bank of Guatemala0 Treasury Notes which had been issuedartially to finance construction of Olympic Stadium and related installations.

. New coffee tax onacted: providos sliding scale ranginger quintal whon coffee sollo for jjtK) to $iQ por quintal to (j8f value in oxcosshan coffoc sells0 por quintal

Department of Economic Policy created in Ministry of Econony;

absorbs functions ofochnical Advisory Committee and operational activities of Comnercial Policy Coordinating Committoe.

ational Bodgot foralls for total expendituresn increase of soneudget.

Construction of Atlantic Highway begun.

PAR pro-Governuont party proposes foundingUnitedFront" to tho other loft-wing Guatemalan "rovolutionary" political parties, and to tho Corounist Party,outh and women's organizations, and tho general labor federation CGTG.

Congressional Conoittco begins investigation of Drake Maugcr

Conpany, an -ncrican contracting concern, purs'iant to resolution adopted by Congress on Mayfter Daputy Juan do Dios AGUILAR had accused it of not having dono its work according toand of having usod unacceptable materials.

Royal Dutch Steamship Line suspends calls at Puerto Barrios because of port congestion.

Victor Manuel Gutierrez states in press interview he is Cocnunist.

Julynti-Comrauniat demonstrations occur following attctpt by market women to bring food to orphans who had boon locked in local orphan asylum roportedly because of unrest over impendingof Catholic Sisters from orphanage staff (see. Demonstrators attack and sack Cocnunist training school "Jocobo Sanchez-.

July Minister of Finance Charnaud MacDonald, qx-PAR leader, issues first raanifosto of Socialist Party ho is forning.

July Further anti-Communist demonstration in protest over events at orphanage; Government removes Gabriel ALVARADO as orphanage director and appoints Dr. Ernosto COFJjfo; croud of demonstrators congregate in square before National Panaco; fired on by police; extensive casualties.

July Government suspends cortain constitutional guarantees such as freedom of expression and freedom of assembly for thirty days,

July Heads of "revolutionary" parties PAR, RN, FPL and PIN publish doclaration stating demonstration inspired by elements opposod to Government and exploiting religious sontincnts of peoplo.

July IU - Association of Univorsity Students (anti-Communist) protest to Government against tho firing on civilians by police Julynd demand removal of Minister of Interior Ordonez Paniagua and Director of Guardia Civil Col. Anselmo GETELLA*

Julylliance of Democratic Parties, consisting of PAR, RN, FPL and PIN, announced.

July Sr. Roberto Alvarado Fuentes, President of tho Guatemalanandther Deputies telegraph President of Perua safe-conduct for Raul RATA DE LA TORRE.

July Ministry of Cofimorco announces regulations for imports of

0 metric ton quota under International Wheat Agreementrop year; isports of flour during next three months authorized without obtaining import permits; orders for wheat or flour placed prior to the Issuance of tho regulations not to be recognized.

July Independent Wostern Anti-Comnunist Partya new party formed in western Guatemala, is officially registered.

s tons House at the Atlantic port of Livingston discontinued as eoonooy measure.

Meeting of "Partisans of Peace" Committee0

signatures obtained in Guatemala to (Soviet-sponsored) petitionivo Power Peace Pact.

Constitutional guarantees suspended Julyestored.

Aug.inistry of Economy modified Julyegulations forofA quota; imposes Government control over all flour imports under quota.

Aug, Colonel Anselmo Getella, head of Guardia Civil, replaced by Colonel Felip Antonio GIRON.

Aug. United Fruit Company warns its employees (ln connection with negotiation of labor contracts) that any increase in its labor costs would make its operations in Guatemala uneconomic snd force it to withdraw from country.

Aug. U. S. Bureau of Public Roads representatives in GuatemalaGuatemalan highway officials BPR office in Guatemala would be closed about October 1.

Aug.epresentatives of Guaternlan Essential Oil Producers Association leave for Formosa to investigato decrease in prices in essential oils (required for menthol).

Aug. National Renovation Party (RN) splits. "Sixth Avenue" wing

headed by Secretary General Oscar JIMENEZ de Leon and theCommittee accuses "Lottery Wing* headed by the partyCommittee of being reactionary. "Lottery" wing in turn accusoa "Sixth Avenue" wing of being Connunistic, The scheduled party Gen oral Assembly develops into two separate meetings,

Aug. Market women of Antigua, aroused by an increase in-municipal tax on morkot vendors, force Antigua's mayor to resign, city council toormer conservative mayor, and council itself to resign; public demonstrations ensue; Government sends policeto Antigua; mayor iho had been reinstated arrested.

Aug. Ministry of Economy takes over sugar stocks and established con* trol over distribution because of impending shortage.

Second Labor Court orders American-owned IRCA to pay overtime wages to extra-train crews, retroactive toaccordance with union's interpretation of labor contract; IRCA announces it -AU pay.theinvolved, thus endinglegal battles on this question.

Ministryreign affairs instructs Guatemalan Legation in Habana to negotiate for freodom of Guatemalan noobers of Quetzal crew seized by Dominican Republic on suspicion ofubversive purpose.

CoraniBsion appointed to study reorganisation of National Farms.

ocialist Party formally founded in two-day convention. Minister of Finance Cha maud MacDonald becomes Secretary General.

nti-Communist mooting schodulod in Huehuetenango canceled by Ministry of Interior on grounds it would not bo proper during ocason for celebrating Guatemala's Independence Day.

abor Court of Esquintla fails to conciliate dispute between United Fruit Company and agricultural unions which demandbenefits in new contracts nhilo United Fruit insists it cannot operate under increased labor costs; Court takes under advisement petitions of two parties for rulings on legality of strike by unions and work stoppage (pare) by company.

dministration requests Congress to approve budget ininimum daily wage is nade possible for six national faros; later requests extension ofth to other farms; and announces studies are to be initiated to determineof further oxtonsion of this minimum wage.

Sept.irst Congress to Central Acerican Chambers of Corcorce and Industry held in San Salvador.

Sept.indstorm flattens United Fruit Company's principal Guatemalan banana faros at Tiquisato; United Fruit Company later announces it will not rehabilitate plantation until it haa completed study of economics of its Guatemalan operations.

Sept.oreign Ministry announces, during Central American Independence Day celebration, that Guatemala will renew diplomatic relations with Nicaragua.

Foreign Minister Oalich states ho will attend mooting of Central American foreign ministers in El Salvador in October.

Sept;uerto Barrios Labor Court rules striko by United Fruit Company dock workers union would bo legal and work stoppage by Company illegal; ruling, following unsuccessful conciliation efforts, gives union alternatives of striking or demanding compulsory, binding arbitration of disputo; Company continues to insist lt cannot operate with increased labor costs.

Sept.hirty-three Guatemalan Deputies froa tho Governaont parties

PAR, RN and FPL reportedly call on Presidentenz and rcquost dismissal of Charnoud MacDonald, head of new Socialist Party,

as Minister of Finance, and of Minister of the Interior Raairo Ordonez Paniagua and Presidential Secretary Cesaroli a, both leaders of the RN "Lottery" Wine*

Sept.nti-Communists hold large demonstration in Huchuctenango, as part of series being held in cities and towns throughout tho country.

Sept,ational Electric Powor Commission established.

Sopt.nited Fruit CompanyU2 Tiquisato employees, claim-inr as justification that the Septemberindstorm constituted force majeure; subsequently refuses to comply with ordor of Inspector General of Labor to reinstate tho susponded employees.

"Partisans of Peace" Committee announces it has0 signatures on petition for Five Power Peace Pact*

ew Socialist Party of Charnaud Mac Donald issues nanifosto attacking anti-Cosnunist movement as "reactionary" movement against Government.

Oct. 9Oct.


Regulations for protection of artistic property issued;for registration of artistic property with Ministry of Education.

Conference of Central American Foreign Ministers convenes in San Salvador.

Ex-Prosident AreValo, Guatemalan Ambass3dor-at-largo, returns to Guatemala from long tour of Latin America.

Ministry.of Economy froczoa wheat flour inventories to control flour distribution as country is faced with shortago.

Civil Registry rejects petition of "Lottery" (moderate) Wing of divided RN party for recognition as legitimate partythus officially recognizing "Sixth Avenue" (leftist) Wing, headed by RN Secretary General Jimenez, as authentic party representatives.

ncreases consular febs fromod valorem,taxes on international air passenger fares, and increases airport sorvlcos foos; it also establishesax on domestic air passenger faroser package custom handling fee.

Oct, lit - Confederacion General do Trflbajadoro3 do Guatemala (CGTG)

organized' as Guatenao li aolo general labor federation with Communist Victor Manuol Gutierrez as Secretary General. embraces all significant Guatemalan labor organizations, thus fulfilling program announced at uTTU-spon sored Transport Workers Conference here in May. President Arbenz sendsto constituent convention.

onference of Central American Foreign iiinisters in Ifl Salvador signs treaty providing for formation of Organization of ContraX American Statos,

Oct. RN expells leaders of ito "Lottery" (moderate) Wing including Ramiro Ordonez Paniagua, Minister of Interior, and Ca'sar G. Soils, Presidential Socratary.

Oct. peech coesa?aeratingh Revolution President Arbenz calls for unity in face of anti-Comnunist movement, domestic opposition aloconts and foreign interests. He appeals for international peace and quotes President Truman as having said peaceful co-existence of nations possible

Oct. ministry of Econony issues aore now regulations on use of

WA quota; cancels licenses issued prior toules ordors registered with International Wheat Council prior to Augustill be recognized; but requires now licenses dated Octoborr later for balance.

Oct* Guatemala sends noto to British Government protesting British plan to incorporate Bolizo (British Honduras) in Caribbean Federation of British possessions; note cites similar protest sent by British Honduras' United People's Party to El Salvador Conference of Central American Foreign iiinisters and resolution of Conference oxprossing sympathy with this protest.

oberto Alvarado Fuentes, President of Congress, andragon, Chairman of Guatemalan "Partisans of Peace" Coaaittoo, leave Guatemala for World Peace Council meeting in Vienna.

Oct.ictor Manuel Gutierrez, Coamunlst Secretary General of now

CGTG labor federation and Congressman, leaves Guatemala to attend WFTU meeting in Berlin.

Oct.r. Walter TURMBULL, Vico-proaidant of Halted Fruit Company,Company's difficulties in Guatemala with President Arbenz; hands him latter dated Octoboretting forth Company's doslro for assurances of stablo labor costs for throe years andagainst unfavorabio changes in labor laws or oxehangopractices as condition to rehabilitating plantations*

Thirty per cont of Guatemalan cotton crop damaged by boll weevils.

Nicaraguan Governmont notified Guatemalan Government of its

acceptance of Guatemala's Belize reservation in Guatemalanof tho Rio Treaty.

Mr. Turnbull, Vico-pro si dent of the United Fruit Company, presents Company letter datedo Dr. Noriega !x> rales. Minister of Economy and Labor, proposing as conditions for agreenent bo-tareen Company and its unions that (l) existing wage rates continue for threeompany reserve right to cancel contract if

costs increased as result of Guatoralan legislation or higher rail freight rates. Letter also states new contract between it and Government, sinilar to Company's contracts with other Central American Governments, would be advantageous for Guatemala*

Nov, At petition of Puerto Barrios dock workers union, Labor Court of Puerto Barrios begins cozpulsory arbitration of dispute between united Fruit Company and union.




Nov. Dr. Noriega Morales, Minister of Economy and Labor, writes letter to United Fruit Company stating Government: annot give guarantees regarding labor's willingness to accept newannot limit right of Congress enactould be intorestod in revised contract with Company, andwould bo willing to mediate labor contract dispute between Company and its unions. Letter further outlinesterms" for new contract Including modification of Puerto Barrios wharf operations,of taxes on Company's profits, compensation to state for exhausted soil, and use of Company's influenco to reduce TitCA railway freight rates.

UnitoQi-Frult Company replies that views aro so far apart as not toasis for discussions.

Dr. Noriega Morales, Minister of Economy and Labor, writes United Fruit Company asking clarification ofetter of

Humberto GONZALEZ Juaroz registers as candidato of the pro-Govornront parties PAR, RN, FPL, PIN and PRUN for mayor of Ouatonala City,

Decree 8u5 ropoals prohibition against use of molasses for alcohol distillation ander gallon tax on molasses so used.

Guatemalan Congress unanimously ratifies Charter of theof Central American States.

United Fruit Company dolivers letter to Ministor of Economy and Labor clarifying its letter of Company outlines difficulties of operating in Guatemala; states it did not ask Government to bind itself not to enact laws or to oblige workers to accept Company's teres but simply to agree to tho Companyits contract if such changes occurred; says it could not dictato IRCA railway's policios on uso of tho Puerto Barrios wharf or on freight rates; gives assurance Corpany willing to agroo to pay taxes to Government similar to those wiiich it pays other Central American Governments under its new contracts; but maintains payment for soil exhaustion unwarranted.

nti-Ccasunist organizations from all parts of Guateaala hold convention in Guatemala City to coordinate future action;to conmonorato Julydates anti-Comunist

disorders) as Anti-Ccc-nunisn Day ard to continue pressing tho Governncnt tof Constitution againat Cocnun-ism. Speakers os-phaaixo that their ooveacnt is not anti-Arbcn* and-regret that Un President, despite havine hocn invited, neither attended in person norepresentative.

Nov. Three Guatemalan crew nenbors. Quetzal sentenced by Dominican court toears if-prisonmcnt at hard labor.

Nov. Municipal elections hold in Guatemala City and elsewhere out the country; opposition candidate (Lizarralde) elected in

Guatemala City; Government candidates win in ovor two-thirds of

provincial towns.

odifios land tenure law and fixer new rent aaf harvest; provides for practically indefinite tenure by rontcrs upon payment of rent and tenants' statement to tho municipal authorities of intention to continue on the land; and makes decision of Depart oon tal Governors final wit no right of appeal to courts.

SAMF RailwayUnion announces end of daily one-hour strikes undertaken againstownod IRCA railway in effort toemoval of Mr. Harold V. Haasc (D. S. citizen) as Vice-president ofeinstatement ofailroad employees dismissed or suspended by Haasa for disciplinarynd of Company's alleged policy of discriminationJK in favor of conpoting rail workers' union STF, variously doscribed as independent or coc-pany-controllod; and (h) payment for Uno en-ploy cos wore on strike. Attempts of Cabinet Minis tors todispute fail. President Arbenz lets it be known ho will not accedo toequest for deportation of Mr. Kaaso and IRCA takes position, that it has nothing to conciliate and union oay take its complaints to court if it feels tho ^otTpany has violated labor code in any way, thus facing unionull-scale illegal strike or not pursuing tho natter further at this tine.

stablishes Guatemalan claias against Germany for war damages at

Pan American Airways inaugurate now Los Angcles-Panam sorvico stopping in Guatemala.

National Farms budget published for;CO as conparod with thoudgot

Foreign Minister Gal ich in Interview published in local pa por

expresses opposition to demands of Guatenalan antd-Coomunists for dissolution of tho Communist party; reiterates Guatemala'sto aduission of Spain into UN; says he favors abolishing big-power veto in Security Council; expresses hope Organization of Central American States will evolveentral Aocrleon

Dr. Noreiga Morales. Minister of Economy and Labor, In reply to United Fruit Cocpany's letter ofakes positionrofits in Guatemala havo been such that it can afford risks of its Guatemalan operations and payment of higher wages; states Government would consider negotiating new contract with Company shaped to suit Guatemalan conditions but not followof Conpany with otlicr Central American govemoents; and gives notice Government plans to appoint ad hoc connittoa to suggest now contracts to replace existing ones.

Cornission appointed to study recommendations of International Bank'Mission submits roport approving rjajority in thoir original form, or rath minor ehongos; rocomrjends adoption of optimumprogram outlined by bank Mission calling forUliona for six-year period, fiscal

lectoral board of tho Department of Guatemala announces Uzarralde has wonlection for mayor of Guatemala City, withotes; Hunbcrto Gonzales Juarez, Government candidate,0 votes.

Dec, Decree 8Ui ratifies Inter-American Convention ori rights of authors.

Doc. President Arbenz rakos first changos in his original Cablnotj Sr, Ricardo CHAVES Nochmann replaces Sr. Ordonez Paniagua as Minister of Interior; Sr. MardcquearOARCLV Asturlaa roplacos Sr. Morgan Garcia aa Minister of-Education,

Doc, lit'- Foreign Mini star Galich signs trade treaty with El Salvador in San Salvador; deposits Guatemala's ratification of Chart or of the Organization of Control American States; and docoratoa El Salvador's President and Foreign Minister with tho Ordor of the Quetzal,

Doc. United Fruit Cocpany announces reductions in passongor ship

service to Guatemala: larger New fork-Puerto Barrios passenger vessels canceled; larger New Orleans-Puerto Barrioa passenger ships changed from weekly to bi-weekly schedule; stall passenger-cargo vessels fron Now Orleans and New lork will continue to serve Guatemala.

Doc. Enrique MUHOZ Uoany, Ouatonalan Uinistor to Franco, dlos In Paris.

Doc, President Trujillo of tho Dominican Republic pardons and releases imprisoned Guatemalan and Cuban crew mcabere of tho vessel quetzal.

Doc, 2li - Prosident Arbenz orders STF rail workers' union dissolved, thus granting one of principal SAMF demands; STF leadors indicateto contest Presidential order in courts.

Doc. Foreign Minister Galich reported as saying handling Quetzal affair sheas ineffectiveness ofno ricon organizations; gives credit, to Uruguayan good offices for release of throo Guatemalan crcrmcn who return to Guatonala today.

Dec. ronul50ted; rcquLros invostnont in Guatonala of insurance conpanioa1 reserves byI2.

Doc. Roberto Alvarado Fuentes, Prosidont of Congress, roturns toon Vienna World Pcaco Council

Jan 1 Government ratifies agreement with United Nationsfor Food and Agriculture for technical assistance in Guatemala, effective January 1.

Jan 2 Labor Court of Appeals rules United Fruit Company must resume operations at Tiquisate and2 employees for time lost since their suspension when stormthe plantations the previous Septembor.

Jan lt Ricardo CHAVES Nachmann, new Minister of Interior,to Comite1 de Estudlantes Universitariog Antlcomu-nistastudents' anti-Communist organization, that it should give up demonstrations; to representatives of Communist Party that they should discontinue agitation,

Jan l* Partido Revolucionario de Unidad Nacional (PRUN) rejoins TVente PopularPL) from which it had split off0 Presidential election.

Jan 5 United Fruit Co. announces reductions In passenger ship service because of decrease in banana shipments.

Jan 7 Lt. Col. Carlos AI.DANA Sandoval, ex-Ambassador to the United States, appointed Minister of Communications, replacing Major Carlos PAZ Tejada, who la put in charge of the construction of Atlantic Highway.

Jan 8 Foreign Ministry addrosses note to Embassy accoptlng

required provisions. Mutual Security Act,not to export shortage items to the Soviet bloc.

ictor Manuel GUTIERREZ, Secretary General of National labor federation Confodcracidn General de Trabajadores de GuatemalaCommunist Partido Rcvoluci-onaricTCJbrero de Guatemalaeturns to Guatemala from Moscow after"attending VFTU Congress in Berlin in November.

Jan 11 Gutierrez in speech states PROG will unite with the

Communist Party of Guatemala; PROG dissolved

Jan II*- CGTG,or federation, holds first gonoral 16 assembly; emphasizes organizing farm workers,

Jan X6 State funeral of Enrique MUNOZ Meany, Minister to France and loading "revolutionary" intellectual, attended by President and features leftist and anti-"imperialist" speeches by Foreign Minister GALICH, Gutierrez and Eliseo MARTINEZ Zelada, Private Secretary to ex-President Arevalo.

Jan 19 Bomb explodes near Communist Party headquarters;is not fixed*

Jan 20 Labor Court at Puerto Barrios orders United Fruit Co. in arbitral award to pay dockageother benefits*

Jan 21 Charter of Organization of Central American States (ODECA) enters into force.

Jan 23 Foreign Minister Manuel Galich presides at first session of Special Council which is to arrange first meeting of Organization of Central American States (ODECA);mentioned as possible date of meeting.

Jan 26 Renovacign NacionalNA-Carlos Leonidas ACEVEDO) rejoins RenoyacionJIMENEZ do Le6n) from which it had split

Jan 27 Bomb explodes near home of Gutierrez; responsibility again not fixed.

Government telegraph and domestic postal system paralyzed 30 by strike.

Jan 30 RN issues manifesto proposing formation of "PeoplesFront" of administration parties, presumablyCommunists.

Jan 31 Virginia BRAVO Letelier, Chilean Communist active in Ministry of Education, departs for Europe.

Feb 1 Dr. Jorge Luis ARRIOLA appointed Minister of Public Health, replacing Dr. Carlos TEJBDA Fonseca.

artidoevolucionaria (PAR) and Socialist Party enter into alliance on reform program; ask allforces to joinDemocratic Front."

Feb L Foreign Minister Galich protests to OAS against its

lack of vigor in handling case of SS QUETZAL, Caribbean Legion ship captured on high seas by Dominican Republic

Feb CCTC holds meeting of United Fruit and IRCA workers, 5 pledges to carry forward labor disputes against those companies.

Feb 7 Radio program sponsored by anti-Communist students'

organization (CEUA) banned by oral order of authorities.

Feb 8 Ministry of Finance and Public Credit ruling requires commercial invoices for all air shipments to Guatemala after March 8.

Feb 9 Labor Court of Escuintla attaches GuatemalanUFC0 to satisfy claims5 of the workers affected

by theuling.

Feb 12 Congressional decree increases national budgetstablishes new tax on carbonated beverages ofer bottle, and increases stamp and stamped paper tax fromoer

Feb 13 Ex-President Juan Jose Arevalo quoted in Mexican press as stating Arbenz administration in "grave danger"United Fruit Company and "Yankee imperialist agents" planned to wrest power from it,

Feb 15 CGTG condemns Arcadio CHEVEZ, labor lawyer representing United Fruit Company workers, for negotiating with company instead of seeking arrest of company manager. Small FRCT and FLAG federations back Chevez, withdraw from CGTG.

Fcb nOS^ORTUNY, Secretary General of the Party, outlines plan for agrarian reform based onof unused lands at Fifth Plenary Session of

Party's Central Committee.

Feb 18 Gutierrez in radio interview says he is

men under Col. Carlos CASTILLO Armas, political exile, are preparing to invade Guatemala from Honduras.- Ministry of Interior promptly denies this.

Feb 19 British Minister (Wilfred H, GALLTENNE) sends Foreign Ministry sharp reply to1 note on British Hondurastresses British offer bo have sovereignty dispute adjudicated by International Court on grounds of law is still opeh.

Feb 20 PAR publishes invitation to those former members of

Gutierrez's PROG who do not wish to join Communist Party bo join it.

Pro-Administration newspapers attack speeches.

28 Congressmen MARTIN and McCORMACK who had suggestedbe done about Communism in Guatemala; charge anti-Guatemalan campaign is being directed by United Fruit Company and label Congressmen's suggestionint of intervention."

Feb 23 Jaime DIAZ Rozzotto, member of National Electoraland first Secretary General of Guatemalan "Partisans oflected Secretary General of RN at party congress.

Feb 27 Press reports speech of ex-President Arevalo in Mexico

City. of trying to "Balkanize" Latin America.

Feb 2? Anti-Communist CCN forwards to Congress second volume of signatures to petition for dissolution of Communist Party, bringing total signatures

Feb 27 Unproductive meeting is held between Guatemalan civil and military aviation officials and CAA representative from Miami and representatives of USAF in Guatemala City bo discuss air traffic control for Guatemala.

Feb 28 Government decree grants official recognition to CGTG.

. Feb 28 Roberto ALVARADO Fuentes, outgoing President of Congress, andthers publish callNational Peace Assembly" to be held at unspecified time and place.

Feb 29 First land line long distance telephone service between Guatemala City and Mexico inaugurated.

Mar 1 Ministry of Communicationsear highway building program to.

Mar 1 President Arbenz, in annual address to Congress, says

Administration's purpose is to turn country into "modern capitalisticromises draft agrarian reform law and development communications; and labels anti-Communist activity as "unmistakably Fascist."

Kir 1 Congress electa Julio ESTHADA de la Hoz, young leftist intellectual and PAH member, as its President; Roberto GIROK Leraus, director of the Communist-line Diario de la 'banana and RN member, is First Vice President; HerT-bertb ROBLES Alvarado, PPL member and the only one to ave reached tho age ofequired to succeed tois elected Second Vice President.

Mar 1 Police arrest Fodorico PAIZ Herrera, Secretary of Legal Affairs of students' anti-Communist organization CEUA; hold him incommunicado and deny his arrest.

Mar 5 ersons, mostly students, demonstrate in front of Presidential Palace demanding release of Paiz Herrera.

Mar 7 Paiz Herrera states in court he was tortured by police and is borne out by court physician's examination;states it will prosecute him for conspiracy.

Mar 7 Japanese Trade Delegation arrives in Guatemala.

Mar 8 Three-year labor contract signed between United Fruit Company and union at Tiquisate. Arcadio Chevezworkers and contract not approved by CGTG.

Mar 12 President Arbonz ln speech at new Papal Nunciature states government seeks harmonious relations with church;of President and Nuncio talking togetherplastered on walls, published in official press..

Mar 13 Press announces appointment of Manuel FINTO Usaga,

Communist-line labor loader, Guatemalan Consul General in Mexico City.

"Alliance of Revolutionary Parties" signed by PAR, RN, and PS; Communist Party and moderate Partido Integrldad Nacional (PIN) are not included.

Mar 14 Congress elects its standing and special committees;

Gutierrez (Communist) obtains Chairmanship of Special Committee on Agrarian Reform: Jose Alberto CARDOZA (Communist) Chairmanship of Special Committee on Labor Code Reform.

CGTG and PAR, RN, PS and Communist parties call for

22 mobilization of their members to defend government against anti-Communist demonstration scheduled forall it "Fascist march on capital."


tter 17 Labor contract between United Fruit Company's Guatemalan subsidiary at Tiquisate and union signed onecomes effective.

Mar 19 Foreign Minister Galich sends note to British Legation protesting inclusion of Belize (British Honduras) in proposed London Conference on the British West Indies.

Mar 20 Ministry of Economy and Labor prohibits establishment--'

in Guatemala of foreign firms or firms with predominantly-foreign capital for the manufacture of effervescent analgesics. Alka Seltzer).

Mar 23 0 citizens march in Guatemala Citydemonstration; hand in petition asking that Communism be suppressed in accord with Constitution.

Mar 24 Jaime DIAZ Rozzotto, Secretary General of RN and leader of RN's pro-Communist wing, named Secretary General of Presidency in place of Cesar G. SOLIS, RN moderate; Virgilio ZAPATA, another RN left-winger, takes Diaz Rozzotto's place on National Eleotoral Council.

Mar 24 J. Roberto FANJUL, moderate businessman, appointed Minister of Economy and Labor, replacing Dr. Manuel NORIEGA Morales who returns to position as President of Bank of Guatemala.

Mar 24 Ministry of Economy publishes regulations under law

governing investment of reserves of insurance companies in Guatemala,

Mar 28 Theater Censorship Committee of Ministry of Education bans "The Red. anti-Communist film.

Mar 31 Guatemala reoognizes new Cuban Government headed by General BATISTA.

Mar 31 Ministry of Economy authorizes the Importation withinaysuintals of sugar free of import duties and other charges. Maximum prices were setholesaleetail.

Mar 31 Ministry of Economy esUablishes minimum pricesounds of ginned cottonor Delta Pine or Cok Wiltor cotton from native seed.

Apr 1 Foreign Minister Galieh addresses note bo Foreignof El Salvador, Honduras, Nicaragua and Costa Ricaolid Central American bloc in the United Nations and the OAS-,

Apr 1 Fifteenive members of the Guardia Civil and five enlisted men depart Guatemala to attend tactics, weapons and military police courses at USARCARIB schools in Panama.

inister of Interior Chaves Nachmann confers with anti-Communist leaders to "clarify" their Marchetition, implies he is officially unaware of existence ofParty, which is not registered,

Apr 7 President Arbenz signs decree ratifying trade treaty

signed with El Salvador inecomeson Aprilhen published in official gazette.

Apr 17 Guatemala recognizes new government of Bolivia headed by Victor PAZ Estenssoro.

Apr 19 Empresa EltSctrica and union of its workers sign two-year contract providingage raise, other benefits.

Apr 22 Guatemalan Congress approves extensive amendments to

Labor Code increasing obligations of employers andthe closed shop. Goes to President for signatur(

President Arbenz holds political meeting with leaders of PAR, PS, RN and Communist Party; first time thatparticipation reported Ijy the press.

Apr 26 Ministry of Economy abolishes controls over distribution of galvanized steel sheets, tinplate, and white cement, and cancels requirement that importers present import documents for the purpose of establishing legal resale prices.

Aprxempts travelers arriving in Guatemala by any means of transportationayment of theustoms duties.

Apr 30 Press reports discovery of shortage in AVIATSCA accounts amounting to Col. Yurrita, President, removed from office,

Apr 30 Communist Party announces it feels some amendments to Labor Code passed by Congress on Aprilould disrupt Guatemala's economy.

May 1 0 maroh in Labor Day parade with "Peace" campaigngrarian Reform" as principal theme of placards.

May 2 President Arbenz vetoes Labor Codo Reforms passed by Congress on

May 2 Students anti-Communist organization CEUA calls for anti-Communist "inarch on the capital" on JuneCN agrees onlyemonstration.

May 6 CGTC takes position President should have approved some of Labor Code amendments.

May 3 Ministry of Economy announces that importation of hard and semi-hard wheat flour outside of IWA quota to be free of controls other than requirement to purchase domestic flour equalf the quantity imported.

May 10 Congress receives draft of Agrarian Reform Bill from

President Arbenz (datedt calls forof all unused land of farmscres, of farmscres which are less than two-thirds cultivated, and distribution of national farms (maximums later uppedn committee). Payment to private owners to be made in Agrarian Reform Bonds.

May 12 Ministry of Economy prohibits import of printed,and silk-screen process materials, exceptmagazines, booksopies of advertising for foreign products.

May 15 Colonel Rogelio CRUZ Wer appointed Director of Guardia Civil (national police) in succession to Colonel Felipe Antonio GIRON.

May 15 President Arbenz meets with delegation of Generalof Agriculturalistsandowners,'on Agrarian Reform Law; has Colonel Diaz, Chief of Armod Forces, tell them Array will not toleratethat might lead to civil war.

May 15 Dlario do la Mariana. Communist-line semi-officialceases publication for lack of funds.

Tabacalera ubsidiary of British American June 2 Tobaccolosed by strike; company forced to yield when Labor Court held strike justified.

May 19 AGAubstitute, more moderate Agrarian Reform Bill in meeting President Arbenz.

May 19 Communist Party issues statement supporting Agrarian Reform Bill.

AVIATKCA passenger and freight rates increased as of this date by the Ministry of Economy ruling issued on

May 23 President Arbenz holds third meeting with AGA; rejects their alternate Agrarian Reform Bill.

National Congress for Peace is held in Guatemala City

25 movie house with the participation of government officials.

May 24 CTG, one of labor federations that went into the making of CGTG, is dissolved.

May 27 President and AGA's fourth meeting on Agrarian Reform breaks up in disagrooment.

CNCG holds "National Peasants* Congress" in support of Jun 1 Agrarian Reform Law.

May 29 CEUA students' anti-Communist organization calls off "march on capital" scheduled for June 1.

June 1 Ex-President Arevalo leaves Guatemala for Europe.

June 3 Comite1 Feaenina Antlcomunista. organization composed

largely of market women, publishes protest againstinterference with its anti-Communist radio program.

Juno 6 Unknown persons attempt to dynamite electric powernear Guatemala City and Quezaltenango;disturbances and rioting break out in oastorn Department of Chiquimula In connection with Agrarian Reform Bill.

June 6 Bar Association issues finding that existence of aparty would be illegal within meaning of Articlef Constitution which prohibitsforeign or international character."

June 7 Wind storms at United Fruit Co. Tiquisate plantations blowtems of bananas.

June 10 PAR and Socialist Party fuse into Partido de la Rovo-

lucitSn Guatemaltecanvito FPL, RN, not Communists to join it in order to make tho PRG the single, united, "revolutionary" party.

PL, RN, and PIN dissolve themselves; fuse Into PRG. 26

June 12 Congress meets in extraordinary session to considor

Agrarian Reform Bill; draft bill is reported out with few changes by Special Committee on Agrarian Reform, headed by Gutierrez.

June 12 Decreestablishes duty ofents per gross

kilo on fiber, yarn, textiles and bags of Jute, henequen and similar coarse materials; also establishes tax ofents por bag on products exported in bags of foreign manufacture, beginning

June 13 President Arbenz Issues decroe cancelling arms permits, instructing authorities to take up outstanding licenses, and fixing penalties for violations; police set upon approaches to capital to enforce this.

June 14 CGTG reported in press as organizing "Defense Committees" to fight for Government against "reactionaries."

June 17 Agrarian Reform Law passed by Congress with few changes in early hours of morning; signed by President Arbenz and published in official gazette.

undreds of students and other persons demonstrate in 19 Guatemala City against alleged torture of severalstudents arrested for alleged participation inynamitings of electric power facilities.

Junoresident Arbenz broadcasts to nation on Agrarian Reform Law; denies it is of Communist inspiration; sayshas discovered "vast net" of conspirators andin connection withynamitings.

GTG and other Communist-lino organizations hold of Solidarity with the Korean People."

June 23 Comite Anticomunista Femonina, (CFA} withdrawn its radio

program from the air, alleging pressure from authorities.

June 23 Nineteen Doputies, headed by Julio Estrada de la Hoz, President of Congress, address message of sympathy for Korean people to President of North Korea on occasion of second anniversary of outbreak of hostilities in Korea;. of "bacteriological warfare."

June 23 Colonel Enrique PARINELLO, Chief of Staff, tolls press an attempt has been made to bribe non-commissioned officersuatemala City base to rise against the government.

June 23 Representatives of foreign life insurance companiesof the Governments plan touetzals of convertible devclooraent bonds to meet tho objections of the companies to inconvertible ouetzal investments.

June 26 President's Publicity and Propaganda Office denies urban property will soon be nationalized.

July 1 President Arbenz appoints Captain Alfonso MARTINEZ

Esteves, formerly his Private Secretary, as Chief of the National Agrarian Department and President of tho National Agrarian Council.

July 1 The United Fruit Co. increases prices paid to contract growers of bananas.

July 3 Fortuny, Secretary General of Communist Party, opens attack on PRG in Octubre; accuses it of trying to isolate Communists and of "rightist deviation."

July 3 Ministry of Economyesolution requiringof animal and synthetic tallow to purchase national tallow equalf quantity imported andrice ofents per pound for domestic tallow,

July 4 President and Mrs. Arbenz. Independence Day reception at Embassy; they had not been present the previous year.

July 4 SAMF railroad workers' union elects four anti-Communists to vacancies on nine-member Executive'Committee.

July 5 Partido Democrata Nacionalistaeftist anti-Oom-munist party, founded by group of disillusioned

July 9 udgetublished.

July 10 Ministry of Economy prohibits importation of soluble coffee mixed with oarbohydrates.

July 12 Anti-Communist demonstrators attack car of MajorMORAZAN, President's acting Private Secretary, and injure him.

July 15 Ministry of Economy promulgates regulation for issuancef Agrarian Reform Bonds as provided by Articlef Agrarian Reform Law.

July 13 Press announces that the Governments of Guatemala and Italy have agreed0 trade development program by an exchange of notes on

AR withdraws from PRG; elects Alvaro Hugo Salguero,

21 Secretary of Publicity of the Presidency, as Secretary General; expels Roberto Alvarado Fuentes, Alfonso Soldrzano and other leaders associated withneusion into the PRG.

July 19 Wrigley Import Co. announces it will not contract for purchase of chiclearvest.

July 21 Pan American Airways operations in Guatemala suspended due to strike of ground employeesage increase and other benefits; aircraft overfly Guatemala and land in El Salvador.

July 21 Ministry of Financeeriod of two months in which to complete transfer of titles to State of all property of enemy aliens expropriated4 as war indemnification.

July 24 Leonardo Castillo Flores, Secretary General of CNCG, and other members of the CNCG Executive Committee, publish manifesto saying the CNCG is "independent of all politicalhus repudiating its standing though unofficial tios with the PRG.

ildcat linotypers' strikes hobble principal Guatemalan Oct 2 newspapers.

July 25 RN withdraws from the PRG; re-established underof Jaime Dfaz Rozzotto, Secretary General of the Presidency.

July 31 Fortuny, writing in Octubre, denied Communistswithdrawal of the PAR and the RN from the PRG.

Aug 2 Press reports San Salvador has proposed toontrol of Communism at ODECA meeting scheduled for Septembern Guatemala.

Aug 2 New Senior Officers of Supreme National Defense Council sworn inf include Lt, Col. Pedro MEYER, President; Major Victor GORDILLO, Vice President; Major Manuel SOSA, Second Secretary; and Major Juventino GOMEZ, First Sec-rotary.

Aug 6 Fortuny, in interview in Prensa Libre, labels Salvadoran proposal to discuss control of Communism at the ODECA meeting as "provocative act of Fascistxpresses confidence Arbenz Administration will not lend itself toaneuver.

istribution of land undor the Agrarian Reform Law begins with breaking up of National Farm "Barcena" near Lake Amatitlan into small plots.

Aug 13 Foreign Minister Galich announces SeptemberDECA meeting postponed to indefinite date due to "conflict" with Central American Seminar on Agricultural Credit scheduled to open in Guatemala City on

Auganamanian Government suggests Guatemala withdraw its Ambassador, Oscar BENITEZ Bone, before he is declared persona non grata.

Aug 14 Leonardo Castillo Flores and other leaders of the CNCG resign from PRG. Castillo Flores says he will not take part in party politics.

Aug 18 National Agrarian Department names committee of four t6ofational farms; it includes Castillo Flores, Jose* Luis RaMOS of the Gommunist Central Committee; Mariano AREVALO, brother of the ex-President; and an official of the Ministry of Economy,

Aug 22 New Guatemalan Ambassador, Colonel Gabino SANTIZO, leaves for Nicaragua to reopen diplomatic relations with that country,

Aug 23 The Conference of Central American Ministers of Economy, sponsored by UN's Economic Committee for Latin America, opens in Tegucigalpa,

Aug 27 PRG attacks Salvadoran proposal as "attempt to transform ODECA into instrument to suppress liberty of thought and expression."

Aug 29 Ernesto MARROQUIN Wyss, PAR spokesman, announces alllanct of Administration parties for Congressional elections; it will reportedly seek to elect the Communist leaders Fortuny in Department of Guatemala and Pellecer inof Escuintla.

Augongress gives permission for Jose" Alberto Cardoza, Communist Deputy and CGTG Vice Secretary General to absent himself to attend Peking "Peace" Conference.

Sept 1 Guatemalan ratification9 Geneva Conventionson treatment of prisoners of war, protection of civilians, care of casualties in ground and naval warfare, becomes effective.

Sept r. Eduardo ZULETA Angel, Special Colombian Ambassador, 8 visits Guatemala to survey situation, ostensibly with respect to coffee production and marketing.

Sept 5 Aurelio MONTENEGRO, first Nicaraguan Ambassador after

resumption of Guateraalan-Nicaraguan relations, presents credentials to President Arbenz.

Sept 5 Rafael TISCHLER, Communist Secretary General of teachers' union STEG, appointed National Agrarian Department's representative before Directorate General of Fundamental Education.

Sept 5 The Ministries of Agriculture and Economy issue decision authorizing INFOP to grant permits for harvesting0 quintals of first-class chiole foreason.

Sept 6 Guatemalan delegation leaves for Peking "Peace" Conference includes Josfi Alberto Cardoza, Carlos Alvarado Jerez, Director of National Radio, Juan Antonio Cruz Franco, President of National Peace Committee.

Sept 6 Press announces PAR Indoctrination School to be opened with program including showing of Communist film "Bacteriological Warfare in Korea."

uatemalan Governmentive-year operatingwith Pan American Airways.

Sept 11 Major Martinez presides at distribution0 acres of communal lands in Department of Huehuetenango under Agrarian Reform Law; accompanying delegation includes Ramos of Communist Political Committee and well-known Communist sympathizers.

Sept 12 The Ministry of Economy promulgates regulation,Septemberrestricting imports of certain cotton textile products.

Sept 15 st Independence Day celebrated without public participation of Communist trade unions aspecial military delegations from Cuba, Honduras and Costa Rica attend; El Salvador and Nicaragua do not attend review of military forces.

Sept 16 Central American Agricultural Credit Seminar inaugurated by President Arbenz.

Septpecial Cuban mission, headed by Minister of Education Ernesto de la FE, confers Cuba's highest decoration on President Arbenz.*

Sept 20 President Arbenz personally. Ambassador

(Schoenfeld) to opening of newly paved stretch of Pan American Highway; Colonel Aldana Sandoval, Minister of Communications, gives public recognition. aid, first time this is done in some years.

Sept 20 President OS0RI0 of Bl Salvador meets President Arbenz at frontier after road opening ceremony; scope of their private conversation not made public.

Sept 22 Police arrest Mario Sandovalnd Ramiro Padilla, leaders of students' anti-Communist organization CEUA; court sentences them toays in jail for carrying firearms.

Sept 23 CflCG Executive Committee expels Amor VELASCO de Leon,

Secretary of Organization who favored continued political ties with the PRG.

Sept 24 Ambassador Toriello presents credentials to President Truman; afterwards talks So pressGuatemalan collaboration on Pan American Highway.

Sept 29 Col.IRON, Chief of the Guatemalan Air Force, visits USAF and USA firepower demonstrations at Elgin AFB and Fort Benning.

Oct 2 Pan American World Airways, strike-bound since mid-July, resumes operations to Guatemala after concluding new iabor contract raising wages

Oct 3 Communist Party name3 Fortuny and Pelleoer as itsfor Congress in forthcoming elections,

Oct ommunist-led CGTG organized "Week of Solidarity With 13 Salvadoran People" in protest ofmoves taken by government in El Salvador; mass meeting scheduled for Octoberoes not come off after Major Martinez reportedly flew to President Osorio yith mgg-sage from President Arbenz,

Oct 7 President Arbenz appoints "Intervontor" to take over

cooperative of railroad workers' union SAMF, stronghold of the SAMF's opportunistic anti-Communist leader Arturo MORALES Cubas.

Oct 9 CCN, CEUA, and PUA, the principal anti-Communist groups, publish appeal for unity in forthcoming Congressional elections.


Octctct 15

Oct 16

Oct 20

Oct 2i.

Oct 27

Octov 7

of Finance sends bills to Congress totho internal public debt and to abolish thepension system.

Mario SILVA Jonama, Communist Party leader, returns to Guatemala after four months in Peking and Moscow.

Foreign Office announces Ambassador Toriello is to head Guatemalan delegation to UN General Assembly.

Press announces establishment of "Nicaraguan Partisans ofommunist-tinted anti-SOMOZA organization.

Central American Agricultural Credit Seminar closed. Minister of Economy FanJul announcesational Agrarian Bank would be in operation by January

Octubre. Communist organ, announces PAR, PRG, RN and Communist parties have formed "Democratic Electoral Front" for forthcoming Congressional elections.

Anniversary of. Revolution celebrated withdemonstrations and review of troops; no emphasis on Communist propaganda.

Col. Hubert F. JULIAN, "The Black Eagle ofeveals his dealings in arms purchases with theDefense Ministry, which is cool toward his Departs suddenly for Havana andith the statement he was through with Guatemala.

Police jail Lul3ycinena, Secretary General of the PUA, and Abrahan CABRERA Cruz, PUA nominee for anti-Communist candidacy in Department of Guatemala, on charges of holding unlicensed public meeting and insulting President; court frees them on

Commencement exercises of the armed forces' Escuela de

Chief. Army Mlssi on selected to participate in presentation of diplomas to theraduates.

Ministry of Financeublic wqrks program to Congress; includes a, dock at Santoydroelectric plant near Palin,ilometers of paved roads.

Ministry of Economy promulgates regulation, effectivencreasing the ratio of domestic to imported flour fromoer cent of Imports,

epresentatives of foreign life insurance companies and Bank of Guatemala officials complete final arrangements for investment of reserves in Guatemala.

Nov 8 Augusto CAZALI Avila, Secretary General or the Frente

Universitaria Democratlca (FUD) speaks at meeting after returning fron Bucharest conference of International Students* Union; praises "Peoples Democracies."

Nov 9 Convention to select united anti-Communist ticket for Congress in Department of Guatemala breaks up when PUA withdraws after chair rejects credentials of its delegates.

Nov 10 Congress setss dates ofelections.

Four students and army officers take refuge in Central 30 American diplomatic missions; one alleged to press he was tortured by police Cor anti-Communist activities.

Nov 15 RN and PAR formally endorse Fortuny, Secretary General of Communist Party, as "Democratic Electoral Front" candidate for Congress in Department of Guatemala.

Nov 15 grarian Reform budget for fiscalromulgated.

Nov 19 The directors of tho General Association of Guatemalan Industrialists (AGIG) meet with President Arbenz to discuss serious problems facing Guatemalan industry: taxes, industrial credit, foreign competition, labor.

Nov 21 Presidency announces appointment of Dr. Raul 0SEGUEDA

as Minister of Foreign Affairs in succossion to Galich; transfer of Augusto 0HARNAUD MacDonald from Minister of Finance to Minister of Interior; resignation of Ricardo CHAVES Nachmann as Minister of Interior; and appointmant of Gregorio PREM Beteta a3 Minister of Finance. .

Congress passes in its first twoill re-26 scindingontracts ofowned Empresa Ble'ctrica; matter thereafter dropped.

Nov 26 Decreencroasus import duty on cotton and

similar cloth sackser gross kilo.

Nov 28 SAMF railway workers* union presents IRCA Railroad with demandsage raise, pensions and other benefits.

Nov 28 Press reports Colombian Government has asked forrecall of Virgilio RODRIGUEZ Beteta, Guatemalan Ambassador.

Nov 28 Decree, effectivestablishes aadditional tax on all Import and export duties and surcharges except gasoline and lubricants, to provide part of the revenueconomic development plan proposed to Congress during the first week It is an apparent violationGuatemalan Trade Agreement.

Nov 28 Decreestablishes an additional taxer liter on aguardiente and certain other alcoholic liquors to provide part of revenue fordevelopment program.

Nov 28 Ministry of Economy establishes now minimum pricesper quintal of unginned cottonf ginnedDelta Pine or Cok

Wiltlight decrease for the former and an increaseor the latter.

Nov 30 PRG agrees to inscribe Fortuny as "Democratic Electoral Front" candidate in Department of Guatemala; nominates Ernesto CAPUANO as his running-mate.

Dec 1 Annual celebration of Guatemalan Air Force Day features laying of cornerstone for new Air Force Chapel, and high tribute by speakers to assistance rendered by USAFto Guatemalan Air Force.

Dec 1 Ministry of Economy increases ratio of required purchases of domestic tallow fromoer cent of imports.

Dec 4 Osegueda, new Foreign Minister, tells press conference there will be no change in Guatemalan policy; Guatemala will not3 Inter-American Conference in Caracas while existing Venezuelan political situation persists; and ODECA meeting might not be held until

Doc 5 Decree, effectiveodifies insurance reserve investment law of1 to meet objections of foreign life insuranoe companias to requirement that reserves of dollar policies sold prior to passage of the law bo invested in inconvertible quetzal bonds.

Dec 5- PAR emerges as strongest party in municipal elections, 8 capturing withlurality In Guatemala City,of anti-Communists who are divided.

Dec 8 Partido Revolucionario Ortodoxoew leftistint party, entered on Civil Registry with Krancioco CARRILLO, Justice of Supreme Court, as Secretary General.

Dec 12 Union officials at the United Fruit Co. plantation at Tiquisate file an application for Agrariancres of company land, an amount in excess of company's holdings.

Dec 14 Communist Party holds Second Party Congress; changes

name to Partido del Traba.lo; and lays down new party program.

Dec 17 Press reports group of deputies headed by Gutierrez (Communist) initiate petition to President Truman to stay execution of. citizens convicted of atomic espionage.

Dec 19 Communist Party registers in Civil Registry under name of Parti do Guatemalteco de Traba.lo. with Fortuny as Secretary General."

Dec 19 PAR, PRG, RN and Communist leaders meet in President Arbenz' office, confirm "Democratic Electoral Front" Pact, giving the PARf theandidacies, the PRGhe RNnd the Communists 2.

Dec 19 Foreign Office announces it has instructed its Ambassador in Washington (Torriello) to exchange notes withof State to conclude an agreement under which joint work on the Pan American Highway could be continued.

Dec 19 National Agrarian Department0 of Agrarian Reform Bonds with the Bank of Guatemala to indemnify landowners, foreshadowing possible earlyof private property under the AgrarianLaw.

Dec 19 Two courts admit suits for relief from penalties imposed by Agrarian Reform authorities despite the provisions of the Agrarian Reform Law forbidding recourse to the judiciary.

Dec 20 Foreign Office announces date for ODECA meeting has been set at May

Dec 22 Ambassador Torriello addresses note to the Department signifying Guatemala's desire to shore in Pan American Highway construction program; accepts Department's wording of agreement in its entirety.

Communist film. with "bacteriological-in Korea shown at "Democratic Electoral Front" rally in Department of Guatemala.

Dec 29 Ministry of Finance transfers functions of Hoard of

Directors of the National Farmsiquidationto speed up their distribution under Agrarian Reform Law.

Dec 31 Civil Registry closed to further nominations for

ongressional elections; "Democratic Electoral Alliance" enters candidates for alleats, including the avowed Communists Fortuny and Pellecer; opposition enters races involvingeats; the leftist anti-Communist PRO contestseats.

Original document.

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