ECONOMIC PROGRAM TO WEAKEN PRO-COMMUNIST GOVERNMENT OF GUATEMALA

Created: 9/19/1953

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IHTfiRXH STATUS REPOrtT Eeonoralo Prog ran to Weaken Pro-Communiat Government

We hnve determined the most vulnerable aepeot of the Ouatemalan economic structure to be its dependence on coffeeain aource of In this reapeet, ve have undertaken exploratory talks vith thestaff ofnd arrivedesearch outline designed tothe pertinent information required to evaluate operational (Attachment A)

lhe exploratory talks and resulting outline have been followed upemorandum froa CWHIS requesting the necessary research. (Attachment B)

h. Priorities have been assigned to :ortain sspsots of ths above mentioned research project. C

3 Second priority has been given to reasons! aspects of narvestxng, handling, and distribution of the Ouatemalan coffee crop-in order touide to the timing and phasing of research,and operations.

A preliminary report of several possible approaches toOuateiaala of its coffee crop income vas prepared on our request by Hr.CEW/ATp, Training Division expert on Economio Warfare. (Attachment C) is currently preparing additions to this

WH has assigned its economio officer to coordinate the audy, BSD haaualified atsff officer t'o assist in the programand OIS has assigned four members of its research staff to the coffee study, ihe Economic Warfare Training Officer of ATD lato the research and acting in an advisory capacity, and PM/AM has assigned an officer to collect Information and data on shipping coapanies and volume of shipping available to ths Ouatemalan coffee trade.

Success of complicated economio ope rat ions depends on current and absolutely accurate information, collection of Wi ich requires eoneldarsble time. The OIS research panel has estimated one month vill be necessary to galer the background information ue nave requested, with ths provision that they vill provide informal interim reports, and will service rush requests for special iteas as needed. Planning and evaluation Vill re-

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quire en additional two to four weeks, and

8. Several operational proposals are under consideration, butbe fully developed or evaluated until sufficient backgroundis collected. Specific attention will be given to possibleeffects. nationals. firms, of the various altsrns-tlve proposals.

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