GUATEMALA.

Created: 8/17/1953

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KQCBABRM FOB: DIRECTORENTRAL Deputy Birector (Plans)

Guateaala.

tba paat year tbe Government of Guatemala andvlth In tbat country bava strengthened their poaltlon. have been treatedrivileged, class and every effortmade to Insure tbe oaslgnaent of reliable men to keyof tba Agrarian Reform Lav bas farther ingratiatedwith tbe lever classes. Conversely, tbe position ofelements baa deteriorated. Obvious inability to organizeprograa dlacouragad aoae previously militant andto avoid risking revolutionary associations, farther, the"Palam uprisingumber of key opposition figures tocountry end may bare reduced their organizations to relative Many diverse and potentially poverful eleaants opposed

to tbe present regime do remain, however, and vould vela can theto act. It lo, none the less. Improbable tbat tba Arbens Government can be successfully countered without direct allltaryIn which revolutionary forces aost have outside aid*

Is considered to be the most effective potentiala revolutionary effort. Necessary contacts with hla baveand extensive groundwork Laid. Detailed plana, however,to determine their soundness in view of conditionsthe past year and, particularly, to ascertain whetherbaa the personnel essentialuocesaful operation.

3- Until July of this year lt appeared possible that certain anti-coeEonlst governments of tbe Caribbean would lead sufficientIn anna, planes and aoney to BQ7DB to permit action. Strongwas expressed, promises actually made, but broken at tbe last minute. Our clear Instructions, sinceave been to avoid any act which could be considered ae "sparking" tbe revolutionarybut to be prepared to assist. It Is now evident tbat insufficient help will be forthcoming from the Caribbean for ROTUS to move. We are therefore faced with two alternatives:

a. Accept the present situation, withdraw the financial sup-pert so far given to RUFOS and liquidate the mechanisms which have been set up to assist hla.

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b. Through corert channcJo, supply ROFUS with ALL thelanes and money requireduccessful operation, providing the review of his assets Is positive.

fc. Experience vlth leconnaisoance runs of our LCI have demonstrated that this craft Is not suitable for the purpose intended. Further, resentment engendered in CIBCARXBh Haval District by consequencea of the meet recent trip makes further activity of this nature

Governments of anti-Communist Central American countrieson Guatemala require reassurance that the United states Isto back them effectively inriendly attitude toward our interesta and in defending themselves against aggression or sslf-styled retaliation on the part of Ouatemala.

In view of the above factors. It is reccameuided:

detailed plansield operations beto ascertain their soundness in the light of existingand to determine whether he still has adequatesupport tbe operation.

a dec la Ion be reached as to whether theand aircraft requested by RDTUS are to be purchasedconcentrated at Puerto Cabecas for deployment.

unices additional arms are made available tonow at. DmEALO not bo turned over to him. Thisis made" to avoid sparking an inadequate effortwell result ln disaster.

if the answerbove is affirmative,be given to transporting the -it^rlal now at DTRGRALO toTrade Zone, Port of levpurchased for RUFUS may be delivered from points of originFree Trade Zone there to be picked up by BUFUS shippingto Puerto Cabeaas. Material from DTPDDALO couldin the same manner with operational facility and Mr. CummingB states that he is prepared to handleaspects of these transactions.

. e' the LCI be dlepoaed of through existing cover by returning it to the ostensible Panamanian owner for sale at the

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beet terms obtainable.

f, That military assistance agreements be negotiated between -this country and El Salvador, Hcmdnrae and Nicaragua. Further, that these agreements include aid In the form of arms for the governmente mentioned and that they be Implemented vlth expedition.

Wstrlbutlonj.ddressee ce: VS

Original document.

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