Created: 11/2/1960

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Guatemalan Leftists Encouraged by Salvadoran

Thectober coup in El Salvador has encouragedelements in neighboring Guatemala and hasumber of rumors in Guatemala concerning an imminent coup there. While these rumors are.unconfirmed, theircontributeslimate of unrest In Guatemala, where modified formsstate of siege" were enforced because of political unrest between mid-July and mid-October. The Ydlgoras administration is currently weakenedeclining economic situation, that led the government to announce last month abudget cut and the reduction of salaries of government

President Ydigoras has attempted to govern by relatively democratic methods despite sporadic plotting against him both by leftist. Communist-Infiltrated revolutionary factions and by rightist groups. Although Guatemalan leftists at the moment are disunited and probably incapable ofuccessful coup, leftists now appear Influential in the new Salvadorn'government and may plan to assist their Guatemalan colleagues. If pro-Castro elements become entrenched in the new Salvadoranthey wouldenuine threat to the Guatemalan and other Central American governments. Cuban embassies,in El Salvador and Honduras, would probably step up their covert aid and liaison to Central American revolutionary

A usually reliable source whoigh-level member of the Guatemalan Communist party reports Communist preparations to exploit the Salvadoran coup In Guatemala. He reports plans by Communist-infiltrated labor and student groups toemonstration shortly, ostensibly to show solidarity with the Salvadoran people but actually to attack Ydigoras' alliance with the United States and to demand his resignation

The ouster of Salvadoran President Lemusersonal blow to President Ydigoras, who had made every effort toLemus and to mis endeeting with Lemus at the bor-

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