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July 14, 1954
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Approved For Release 2000/05/03 : CIA-RDP62-0S riPP7'2MENT NEWS HIGHLIGHTS Date JULY 14, 1954 10..4'i- 51 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 N.Y. MAY 2 r CPYRGHT Approved For ReleRWAgornosmr..smir2-ollehNedd3oo200002-7 Times 1954 CPYRGHT GUATEMALAN FETE IS ANTI-U.S. AFFAIR Leader Charges Intimidation at Caracas?Rejects Bid to Indemnify Fruit Outfit CPYRGHT s n eng upi ,er, the Presidellr said, apparently al- luding to the United States, "W were to have been annihilated b. ,bis destructive rays." The critics were wrong, tin President said, adding: 'The' were wrong because when a peo ? pie is right it is brave, and whei It is not cowardly it can conquer the greatest enemy." The President remarked tha there was strong opposition tc his administration in Guatemale but that it was being successfulls combatted. He added that "ir the internationat. field we hay( discovered new? conspiracies ant Special to The New York Times. GUATEMALA 'foreignMay 1?Guate- oreign intervention in Guate- , mala celebrated May Day here Inala*" today with a huge Communist- The President also made refer- organized parade and highly na- ence to the United States State tionalistic speeches by President Department's recent demand for Jacobo Arbenz Guzman and Vic- more than $15,000,000 as indem- nity for the United Fruit Corn- tor Manuel Y pany's land expropriations. of the Labor Federation and one "Foreign interests, within a agrarian reform program. of Guatemala's leading Commu? month of Caracas, have Presentedflirts,Originally the United Fruit NAY 2 1954 Guatemala Takes Over Fruit Lands By A. T. Steele By Wireless to the Herald Tribune t.opyrIght. 1000 as a. am la anomie MC. GUATEMALA CITY, May 1.? Expropriated areas of the United Fruit Company's properties in the Tiqquisate region are filling up fast With settlers under the Guatemalan govenment's a fine stand of African oil palms. Clyde Dalawder, the planta- tion manager, said this area has been moved into and many trees have been destroyed or damaged. Some outlying build- ings have been taken over by settlers. The banana plantings, how- ever, and the main installations have not been affected, and the plantation operations continue more or less as usual. In the expropriated zone I talked. with. newly settled "agra- ristas" pinting corn in a patch of semi-cleared but unplowed an absurd bill for $15,000,000 for It was estimated that more . Guatemalan territory," the Presi- Tiquisate plantation consisted dent said. He added that Guate- mala intended to pay according to the terms of her own laws, paying according to the tax valuation of the , expropriated, land persons marched the parade, which took three hours in passing the National Palace where it was reviewed from a balcony by President Arbenz. The theme of the parade floats generally was condemnation of He declared that the Americannote represented Guatemala as "Yankee imperialism" and "for- eign intervention." a ? "thief." The note, he said, This was the theme also, for could only be qualified as "mon- the! " and he informed the the; most part, of the talks by President Arbenz and Senor cheering throng that Guatemala Gutierrez,had rejected it emphatically. The President told a Senor Gutieri ez said that the crowd in Cathedral Plaza, esti-' mated at between 10,000 and 15,- 000, that the "reactionary opposi- tion" had hinted that Guatemala was going to be destroyed in rCaracas at the Tenth Inter- ',American Conference. "We were to be intimidated at of 300,000 acres, and of this 240,000 acres was taken by the government on the ground it was not being used. For this s. seizure the government offered just under $600,000 in long-term bonds. United Fruit refused this offer as inadequate, and asked for more than $15,000,000. This claim, submitted last Week by the United States gov- ernment, was rejected Monday by Guatemalan 'Foreign Min- anti-Communist resolution pushed ister Guillermo Toriello., through by the United States at In a visit to the hot coastal Caracas was "a mask underf lowlands southwest Of here, this which anti-communism was used to tie Guatemala hand and foot correspondent was shown or the voracity of the United Fruit Company and other Yankee monopolies." ?Referring to the United Stats, Senor Gutierrez said: "We are faced with a dangerous enemy Which has launched ad interven- tionist motion violating all inter- American pacts." The recent military pact be- ween the United States and Nic- aragua was for the purpose of "using Nicaragua as base of ag- gression against Guatemala," he said, adding: "We protest and denounce foreign intervention di- rected against our national ,sovereignty." While a majority of the forty- five floats were devoted to the in- ternational theme, especially con- demnation of the United States, some were in open criticism of domestic policies. Most of these dealt with demands for a de- crease in living costs and a rise in wages. Y, H. TA APR 28 1954 Newsmen Deplore Guatemala Raid GUATEMALA CITY, April 27 I111.?The Guatemalan News- paper Men's Association adopted a resolution today repudiating a recent attack on the anti-Com- munist broadcasting station, Radio Internacional. Five masked men entered the station last Wednesday night, destroyed transmitting installa- tions and carried away part of the equipment. The resolution described the action as an attack against free- dom of expression. The station had been broadcasting a daily anti-Communist program spon- sored by a cOmmittee of anti- Communist students. Cubans Halt All Work ' Special to The New Y01.14 Times. HAVANA, May 1?Cuban labor brought commerce and industry to a halt all over the island today in observance of May Day. _ _ through the Tiquisate I planta- tion. The management of the plantation complains that even the lads which were exempted from expropriation are being infiltrated by squatters and set- tlers, who have so far refused to move. Of the 60,000 acres to which United Fruit retains title, about 18,000 acres are in bananas. A considerable part of the remain- der was made up of pasturage, plantings of teak and cedar, and ' In Havana bus transportation was suspended during the greater part of the day. Cafes and bars were closed and moving picture theatres did not open until eve- ning. No newspapers were pub- lished, radio broadcasts were few. The Confederation of Cuban Workers, the central organization controlling the island's labor, held a mass rally this morning at the Palace of Workers. The workers heard their leaders ;list a long series of demands that Will be presented to President Fulgencio Batista. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Miguel?offered a few opinions about the United States. "We hear," he said, "that the United States wants te invade our coun- try, and we are not going to allow it." Asked where he had picked that up, he replied, "In the newspapers and at our meet- ings." Maj. Alfonso Martinez, chief of the National Agrarian De- partment, said that squatters occupying land not officially ex- propriated and allocated to them will be required to move else- where. Nj. Times Y 5 GUATEMALANS GET APPEAL TO REVOLT Existence ,of Anti-Communist Radio Station Near Border of Honduras Announced ? By PAUL P. KENNEDY Special to The New York Times. GUATEMALA, May 4?It was acknowledged officially today that a clandestine radio station was broadcasting anti-Commu- nist material and exhorting the country to revolution. There had been reports the sta- tion was operating, but the police remained silent until last night, after the Communist-controlled General Confederation of Labor had brought the matter to the Government's attention. The confederation reported it had learned the station was in San Marcos Department, near the Mexican border. But the police announcement today said it was believed the station was operat- ing behind the Honduran border. In the official acknowledge- ment, the police said the station identified itself as "The Voice of Co tit'. Approved For RalikaslinkbAlf3,1031A-RDP62-0086114148131200002-7 Liberation." Its program ,contei the announcement said, advancet. "Subversive proposals" and at- tempted to "excite seditious- ele- ments to opposition against the constituted Government," Pressure on Stations Cited The station's existence, which received particular attention in the press this morning, is of in- terest just now because the an- nouncement comes when pressure on independent radio stations seems to be reaching a climax. This pressure has been charac- terized by threats and even vio- lence over the last year exerted primarily against stations that either have been broadcasting outright anti-Communist pro- grams or have been somewhat anti-Communist in view. The Government entered the picture last week when the sta- tions received official notice that a restrictive article in the law re- ferring to so-called "radio news- papers" would be strongly ob- lerved henceforth. This article requires thatprograms dealing in domestic or foreign politics must be recorded and presented to Government authorities within twenty-four hours of broadcast time. This is an alternative in which a station may advise the Government of plans for such a program three hours before broadcasting. Program Is Canceled Radio newspapers are a pe- culiar institution to Guatemala. They are operated by professional newspaper men who buy radio time, arrange and write a pro- gram, and sell commercial time. The close tie between these di- rectors with working newspaper men has keenly interestd inde- pendent newspapers, and espe- cially the influential Guatemalan Journalists Association, in the fate of the programs and their directors. Last week, Radio Telefunken Canceled such a prdirrain pro- clucecl by Francisco Baia& on the ground it had expressed political thoughts. While not ,anti-Com- munist, the program contained occaSional items unfavorable to Communism. On April 21 Radio Interna- cional was invaded by an afthed band. Two attendants were se- verely beaten,and the station was wrecked. The staticin at that time was broadcasting an "Anti- Communist Hour," a fifteen-min- ute program sponsored by the Students Anti-Communist Asso- ciation. The station has returned to the aire, but it is not broad- casting the "Anti-Communist Hour." This program, the source of much violence in the last year, has switched from one station to another following incidents. One conductor ?f the program, Hora- cio DecorOol?e, was :sent into MAY? 1954 7 1954 Cache of Russian Arms Is Found MANAGUA, Nicaragua, May 7? A military patrol has discovered a cache of Russian-made arms and ammunition which authorities be- lieve may have been landed by a mysterious submarine reported op- erating off Nicaragua's Pacific coast. The arsenal was shown to diplo- mats and newsmen last night by President Anastasio Somoza. It in- cluded two machine guns, 20 hand grenades, 40 rifles and many rounds of ammunition. All were stamped with the hammer-and-sickle and the date 1938, apparently the year of manufacture. N.Y. Times MAY 7 1954 5 DIE IN GUATEMALA RIOT Peasants Battle Police Over Parceling Out of Land Special to The New York Times. GUATEMALA, May 6?The Guatemalan Agrarian Depart- ment announced today that five persons were killed and several others wounded in one of the most serious armed clashes over agrarian matters since the issu- ance of the ? agrarian bill last year. The rioting that occurred In the near-by town of San Juan Ermita apparently stemmed from the distribution of land that the peasants from the surrounding villages considered municipal property not affected by the'ag- rarian bill. Approximately 300 peasants, armed with clubs, machetes and firearms, attacked the Agrarian Committee members who were parceling out the land. When the police intervened three policemen were killed. Re- inforcements from the Civil Guard finally succeeded in dis- persing the attackers and retor- ing order. Several Of the attack-1 ers were arrested. exile. Roberto Vizcaino, owner of Radio Continental, which also broadcast anti-Communist mate- rial, was forced out of the coun- try and his station dismantled. Radio Voz Dela Capitol, an- 'other station broadcasting anti- Communist material, ceased doing so after members of its personnel had been attacked by 'masked persons. SOVIET BID GETS BACKING Labor Body Urges Guatemala to Accept Trade Talk Offer Special to The New York Mmes. GUATEMALA, May 6 ?The Red-led Guatemalan Confedera- tion of Labor announced today it was urging the Government and industrial and agricultural asso- ciations to accept the Soviet in- vitation to a trade meeting scheduled to take place in Mos- cow in September. The Confederation, which con- trols virtually all organized labor in the country, says the Soviet invitation would benefit the country by openin gnew markets for Guatemala's products. According to the invitation, the Soviet Union would pay all expenses of three Guatemalan delegates. N.Y. H. Ts IV 9 1954 Danger Signals in Honduras ?The present general strike in Honduras has political overtones which may well be ex- tremely serious. Taking its rise in a wage dispute bLtween the United Fruit Co. and dock workers in the Atlantic coastal ports, the disturbance took a new turn when Gen- eral Inestroza, Minister in the Honduran government, intervened. At his suggestion both sides made certain concessions pending classification Of the 1949 labor law, and he let it be, known that a renewal of work stoppages in the interim would be considered a strike ,against the government. Now that work stoppages have been renewed and are, in fact, spreading beyond their original area, the Honduran government has been obliged to call up troops to deal with this threat to its authority. Lending further gravity to the Situation is the question of what part may be played by Left-Wing ele- ments across the border in Guatemala. This flare-up in the ranks of Honduran labor undoubtedly has a close relation to the elections coming, along next autumn. The Nationalist party, which has controlled the country for some twenty years, has been seriously weakened by the defection of its Reformist wing, and the Liberal party has its best opportunity, with opposition divided, in a long time. The Liberals' Presidential can. didate, at this critical time, is Dr. Villeda Morales, who is generally regarded as sym- pathetic to the policies of the current Guate- malan regime. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 ??? S Approved NA. Times MAY 1 3 1961 For Release 2000/05/03 :.pl4-RDP62-00865R000300200002-7 Nsh. Hai Gdatem$hflAflWediPetetTed 5pe to The New Tort Times. GU MALA, May 12?An anti-Communist students' corn- mittee disclosed today that the police had seized 4,500 'copies of their weekly. publication, -The Rebel, as they were about to be mailed. NYTivn e5 04,y q,? icist1 Guatemalans Attack Dulles ? Special to The New YorIc Times. GUATEMALA, May 13?An editorial in last night's issue of the official Government news- paper 'Mario de Centro America strongly attacked Secretary of States Dulles. It charged that he was ill-disposed toward the Guatemalan regime and that he sought the abolition of the Octo- ber, 1,944, revolution that over- threw -fourteen years of dictator- ship. , The attack resulted from Mr. Dulles' recent declarations in Washington that he thought the United Fruit strike in Honduras was not a purely national affair and that it had occurred hi an area of Honduras from which Guatemalan consuls were recent- ly expelled. The editorial said that Mr. Dulles' judgment seemed far-fetched. It added: "We emphatically declare that Guatemala has not participated tlirectly or indirectly in the Hon- duras strike. Such a strike is the eecourse of Honduran workers, who seek recovery of their rights ta Hodduras soil." Approved MAY 13 1954 : 1.7 Nicaraguan Envoy Links Arms to Sub InteroattoheVNewe Service day that a "non-American" sub Nicaragua's Ambassador to marine was sighted off the the United States said yester- Nicaraguan coast recently, St Low% Post:De p Ms), IS 05f II ISUATEMAIA WINS MEXICAN FAVOR IN ANT1-11.3 DRIVE Charge of American Threat to Sovereignty Arouses Sympathy. ? Little Proof Offered. By LAURANCE F. STUNTZ MEXICO CITY, May 18 (AP) ?Guatemala is making a de- termined?and so far successful ?bid to enlist Mexican sym- pathy in its private cold war with the United States. Many Mexicans, with their background of suspicion of the United States, sympathize with Guatemala's contention that its sovereignty is threatened. When you try to pin a Mexi- can down on precisely what the United States has done againsti Guatemala, Many will concede there is no action they can cite. Others say the United States demand that Guatemala pay for land it expropriated from the United Fruit Co. is an attack against Guatemalan sovereignty. OWN" movements. Also, remembering the 1847 war and the 1914 occupation of Veracruz, Mexicans are ready to believe in the possibility of United States intervention. The greatest proof of the suc- cess of the Guatemalan bid for Mexican support is the list of speakers at a meeting called by "The Society of Frie.-ds of Guatemala." The new society had a capacity crowd at its first meeting in a 3000-seat Mexican theater. Known Mexican Communists twere present but stayed in the background. The speakers did not include any avowed Commu- itists. But on the list was Sen- ator Pedro de Alba, chairman of the Senate Foreign Relations Committee, who said he did not believe Guatemala was Commu- nist. Also on the list were other influential figures in Mexican government. The Guatemalan's prize pack- age rovWk a statement from for- mer President Lazaro Cardenas. Cardenas, who expropriated the foreign oil companies in Mexico, is still one of the most powerful political factors in the country. The leftists try hard to give the impression he backs them, but he speaks cautiously. Nevertheless, he sent a mes- sage of greeting to the meeting. It was not particularly strong, but it left no doubt that he sympathizes with Guatemala. The Guatemalan government sent a strong delegation here for the society meeting. It has fol- lowed this up with other. dele- gations. Newspapers here -have been generally benevolently neutral to Guatemala. One disadvantage for Uncle Sam is that there is nobody here to ask loudly and fre- quently for proof of United States threats to Guatemala. In- dividual North Americans may do it, but there aren't enough of them to make the challenge ef- fective. Guatemala has factors on its side in the contest for Mexican sympathy. Having had a land expropriation and agrarian pro- gram of its own some 30 years ago, -Mexico tends to favor For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 shortly before a cache of arms ?some of them bearing Com- munist insignia?was discov- ered in the jungle nearby. The envoy, Guillermo Sevilla- Sacasa, showed newsmen photo- graphs of the small arms, in- cluding 40 rifles, two machine guns, 20 hand grenades and four pistols bearing the ham- mer and sickle. All the weap- ons, he said, yvere made in Europe. - The Ambassador said the arms presumably were un- loaded by a strange submarine that had been noticed previous- ly in the area of Masachapa on Nicaragua's Pacific coast. He? said a floating buoy, twhich apparently was placed in the sea to indicate where the guns had been unloaded, led to their discovery by the Nicaraguan army. Sevilla-Sacasa called the inci- dent a "grave event which places the peace and security of the continent in real dan- ger." He said that, at the instruc- tions of his government, he re- ported the matter to Henry F. Holland, Assistant United States Secretary of State for Inter-American Affairs, and that Holland told him the United States would investi- gate. Sevilla-Sacasa declared: "The situation is much graver than it seems, since the Communists, in choosing our country as their first objective, wanted to con- vert Nicaragua into the Korea of America.' 3 Approved For FillIkase 2000/05/03 : CIA-RDP62-00865R1100300200002-7 N.Y. Times MAY 1 8 1954 Communist Arms Unloaded in Guatemala By Vessel From Polish Port, U S. Learns State Department Views Erabassy Says Nation of News Gravely Because Central AmericaMay Buy of Red Infiltration Munitions Anywhere Special to The New York Times, WASHINGTON, May 17?The State Department said today that it had reliable information that 'an important shipment of arms'' has been sent from Communist- controlled territory to Guatemala. It said the arms, now being unloaded at Puerto Barrios, Gua- temala, had been shipped from Stettin, a former German Baltic seaport, which has been occupied by Communist Poland since World War II. The Guatemalan Govern- ment has frequently been accused of being influenced by Commu- nists. "Because of the origin of these arms, the point of their embaNea- MIPOIMN The New York Times May 18, 1954 Site of arms arrival (cross) tion, their destination and the quantity of arms involved, the Department of State considers that this is a development of gravity," the announcement said. A freighter arrived at Puerto Barrios last Saturday, the State Department reported, carrying a large shipment of armament con- 'signed to the Guatemalan Gov- ernment. The State Department did not divulge the exact quantity of the arms, their nature or where they had been manufactured. Reliable sources told The New York Times, however, that ten freight car loads of goods listed in the manifest of the ship as "hardware" had been unloaded from this ship and sent to Guat- emala City since Sunday. Guate- mala City is 150 miles from Puerto Barrios. The noimal rate of unloading, the sources said, would be 200 to 300 tons a day. The State Department gave the name of the freighter as Alfhelm. Lloyd's Registry of Shipping does not list a ship under fiat spell- ing, but does list the Alfhelrn, a 4,000-ton freighter of Swedish registry, A. spokesman of the Guate - malan Embassy here said he had no doubt the State Department's information was accurate. "But what is 'grave' about it?" he asked. "Guatemala is free to buy its arms where it can." He remarked that there were numerous salesmen from Czecho- slovakia, the probable manufac- turer of the arms, in Latin America. The State Department is alarmed over the arms shipment because the Guatemalan Govern- ment has been heavily infil- trated by Communists, There was some puzzlement here about the destination of the arms, since the Guatemalan Army is gen- erally considered the main re- straining force limiting the in- fluence of the Communists. Anti-Red Resolution Cited At the tenth Inter-American Conference at. Caracas, Vene- zuela, on March 13, Guatemala cast the only vote against a resolution declaring that com- munism was a "threat to the sovereignty and political indepen- dence of the American States, endangering the peace of Amer- ica." Domination or control of the political institutions of any American state by the Commu- nist movement "would call for consultation and appropriate action in accordance with exist-. ing treaties" among the Ameri- can states, the resolution said. There was no indication as to whether the United States was planning action. The problem of Guatemala is one of the most delicate the State Department has t.o deal with in the Western Hemisphere, officials said. Even though the Latin Ameri- can states backed the United States' anti-Communist resolu- tion at Caracas, they said, if the United States took political or economic action against:Guate- mala, protests against "Yankee interventionism" would probably be heard throughout Latin Amer- ica, Strike Called for Tomorrow Special to The New Yorgrimes. GUATEMALA, May 17 ? A strike involving 4,000 United Fruit Company workers on the Atlantic Coast has been set for Wednesday, union representa- tives announced today. The deci- sion was taken last night follow- ng a meeting at which Carlos Manuel Pellecer, Communist Con- gressman as well as Secretary of Labor conflicts of the Guate- malan Confederation of Labor, was the main speaker. By a unanimous decision the workers agreed to reject the management's offers of wage in- creases and other prerequisites made during a conciliatory con- ference last Friday called by the Court of Appeals. Senor Pellecer had advised the men to strike as the best means of forcing the company to grant the wage in- creases they seek. Guatemala Charged Plot On Jan. 29 the Guatemalan Government charged that it had uncovered a plot to invade Guate- mala by land, sea and air. It said the Nicaraguan President, Anas- tasio Somoza, was preparing the invasion with support. from El Salvador, the Dominican Repub- lic, Venezuela, and "the Govern- ment of the Nerth," meaning the United States. The State Department said Then that It would not dignify the_ Guatemalan charge with a denial. Other sources speculated that the Guatemalan regime might have used the invasion charge to liquidate opponents at home. --- Vessel Owned in Sweden The Alphm was built In 1fl30 at Odense, Denmark, according to Lloyd's Register of Shipping. Her home port is Uddevalla, Swe- den, and her owners are Angbats, BohuslanSka & Kusten, Inc. She ? was formerly the Gausdal (in 1053), the Hoegh Trader (1936) and Guldborg in 1933. Wash. Evening Star MAY 19 1954 Guatemalan Military Won't Talk of Ship; Cargo Now Unloaded By the Associatedtress GUATEMALA, May 19.?Gua- temala's military chief said yes- terday his country's constitution barred him from snaking any statement about a Swedish freig-hter which the United States says arrived here with arms from communist Poland. Col. Carlos Enrique Diaz re- fused to either confirm or deny that the arms were being un- loaded at Puerto Barrios on the Caribbean coast of Guatemala. (Private advices reaching New York said Guatemala's defense minister went to Puer- to Barrios to supervise un- loading the cargo, said to in- clude Man arms. Ten railway carloads were reported to have C Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved left Puerto Bartioefor Guate- mala City.) The freighter has been at Puerto Barrios since Saturchty. Unloading of cargo started the day of arrival. The ship is ex- pected to remain in the port un- til tomorrow. The United States State Department says the ship picked up its cargo at Stettin, a German port before World War II and now part of Poland. ? Unofficial sources said the un- loading of the shipment from the freighter had been completed Sunday and that the special trains with the cargo had arrived here. These sources said? the ship- ment was being removed from the trains only at night, 'under military guard. The newspaper Imparcial said one of its pho- tographers had taken a. picture of the unloading scene but an army official confiscated his film. Meanwhile union leaders in Guatemala ordered 5,000 ,em-1 ployes of the United States- owned United Fruit Co. to walk off their jobs today at Izabei. The leaders said the strike had a double purpose?to seek? more pay and to demonstrate sypspa- thy with United Fruit workers M neighboring Honduras who have been on strike since April 30. For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Niro .1sre 4-4114,May19,1954 * - New York Journal-American ;Wash,. Evening Star MAY 19 1954 mem* Vie wed As Red 2nd front U. S. Military Men Predict Action There .If We Move in Indochina By DAVID SENTNER New York Journal-American Washington Bureau WASHINGTON, May 19.?The shipment of Soviet satellite arms and munitions to Red Guatemala was believed today to be a move by Moscow to establish a diversionary "second front" in Latin -America in event the United States intervenes in Indochina. weapons from a Polish post The 2,000-ton shipment of ---- vening here Wednesday, for con- certed action in the face of this being unloaded at Puerto "grave situation." 'Barrios in Guatemala is Rep. Billings (R.-Cal., intended to make this stra- warned the House that the tegically located Central Soviet arms-shipment is part American nation a Red of a plan to sabotage the Pan- beachhead in South America ama Canal if the U.S. inter. in case war comes in the venes in Indochina. Billings IPacific, according to top PLAN FOR ACTION. believes the Monroe Doctrine mints,* sources. ' could be applied in event the OAS fails to take action. . The Soviet arming of Corn- The State Department is pre- munist-controlled Guatemala is paring to sound out the Organ- also feared to be the prelude to isation of American States, con- direct military interference in the Red-fomented general strike in adjacent Honduras. . ALARM HEIGHTENED. , Washington's alarm over the brazen Soviet shipment of arms Red Arms to Guatemala dhasIt is significant that the State Department used the phrase "a development of gravity" , ?a development that could evolve into a threat to the securityl of the Western Hemi- sphere?in commenting on the arms shipment that Guatemala has received from the port of Stettin in Soviet-controlled Poland. 'True, there is no rule in international law that debars the country from acquiring weapons from the world behind the Iron Curtain or anywhere else it can get them. But tough and conspiratorial Communist influences are very strong in Guatemala's extremely leftist govern- ment, and there is therefore good reason to look with a sharp and suspicious eye on this military importation?a relatively large one? from the dominance-seeking Soviet empire. It may well be, actually, that the shipment has an altogether sinister purpose. This is the more true because there have been some indica- tions that Guatemalan agitators have been largely instrumental in precipitating the po- tentially explosive strike now going on in the banana fields across the border in neighboring Honduras. Is major violence in the making there? Are the arms from Stettin destined to Approved For Release 2000/05/03 to a Western hemisphere nation was belibtened by a repbrt that Guatemalan Reds recently at- tempted to secure a sizeable amount of weapons through the Russian Embassy in Mexico City. The arms requested were listed as 2,450 Czechoslovakian rifles, 1,419 Mexican rifles, 581 Thompson machine guns, 27 50-calibre machine guns, and a large supply of hand grenades. The Russians rejected the re- quest, according to the report, on the grounds the Shipload from Poland already was en route to Guatemala and that the arms available in Mexico City would do more gad in Honduras. An armada of fishing vessels was reported being assembled for shipment of the weapons to 'Honduras. Direct evidence of Moscow's plan for intervention in Hon- duras was reported contained in I a black envelope seized early this month by Honduras police from a Guatemalan. air force plane which landed 'without a permit at the Puekto Cortes air- port in Henduras. A search of the plane also revealed a map of Honduras with code marks of properties and government installations believed to represent Commu- nist agents or cells. The so-called "invasion' of Honduras by the Guatemalan air force plane led to the two. Gutemalan consults in Hon- duras being ordered home. aid and abet it? Or are they meant primarily to help the Communists stage an internal coup calculated to place Guatemala under their full control? These questions are speculative, of course, 'but the State Department's comment on the situation strongly suggests that there is solid ground for concern among Guatemala's im- mediate neighbors and throughout the whole Inter-American community. Certainly, if the arms shipment really con'stitutes "a develop- ment of gravity" and if it can be viewed as a substantial hemispheric threat, one or another of the Americas ought to take 'the initiative in seeing to it that the matter is dealt with through invocation of the Caracas resolution or other existing procedures for united action. Thus, as adopted last March?with Guate- mala alone voting "no"?the Caracas resolution declares that the domination of any one of the Americas by international communism would be a threat to all and would require a hemi- spheric consultative meeting to consider corn- C CIA-RDP62-00865R000300200002-7 Approved For PAIgase 2000/05/03 : CIA-RDP62-00865R4160300200002-7 mon protective measures. Accordingly, if a Guatemalan Red coup impel-ids, iuth a meeting will be in order, or if the weapons from Stettin mean trouble for Honduras, there will be roason to invoke the mutual seCurity treaty of Rio de Janeiro. Although speculation of this sort. may be alarmist, the State Department ai.rently finds the situation genuinely worrisome, Guatemala, after all, has been anything but a good neigh- bor for some time past, and the fact that it has obtained arms from Kremlin-controlled sources can hardly be laughed off. The development clearly calls for an on-guard inter-American reaction. N.Y. Times MAY 19 1954 U.S. W Tits Rio Pact Inquiry On Arms Sent to Guatemala Informs American Lands of Communist Cargo?Says It Might Possibly Be Threat to Hemisphere Security Reciprocal Assistance, was signed lean, unity, the cause of freedom, end sovereignty within the West- in Rio de Janeiro by nine,s7 , era Hemisphere," he said. American republics on Aug. 3u 1 The United States has taken i tee matter up with both Sweden' and Britain. The ship, the 1,900- ton Alfhem, is owned by a Swed- ish company, but had been char-, troversies and for "reciprocal as-. sistance to meet armed attacks against any American state, and ,in order to deal with threats of !aggression a,ga'nst any of them, miens because there was no em- Article 6 states: "If the in- j [berg? or blockade in effect iviolability or the integrity of the against Guatemala. cerritory or the sovereignty or The United States is concerned. political independence of any however, with the prospect of( Guatemala's being a point oil American date should be af ? P. Communist infiltration and prop- 1 fected by an aggression which is aganda in this hemisphere. Offi- not an armed attack or by an cials have said that the Soviet extra-continental or intra-contin- Union has used Guatemala for ental conflict, or by any other slipping Communist agents into fact or situation that might en-, neighboringLatin-American coun- -danger the peace of America, the' tries. immediately in order to agree on 2 o vaig the measures which must be SI/ taken in case of aggression to assist the victim of the aggres- sion or in any case, the measures By WALTER H. WAGGONER Special to The New York Times, WASHINGTON, May 18?Thebe done under the Rio treaty There are many provisions in thi State Department indicated today that the Communist shipment of arms to Guatemala might pos- sibly be regarded as a threat to the security of the Americas un- der the terms of the Treaty ef 1947. It provides for consultation among the signatoriee to the treaty for the settlement of con- eered by ar, English concern,' identified here as E. E. Dean. Both Bx itish and Swedish; sources said they found nothing I Hiegel al illicit about the ship- MO" Organ of Consultation shall meet SVe es which should be taken for the common defense and for the maintenance of the peace and security of the continent." The Administration's foreign policy spokeshian in the Senate meanwhile declared that the ship- ment, which he called both "tre- mendous" and "massive," was "part of the master-plan e world communism." Addressing the Inter-American' Committee of the District of and other treaties under wensiliColumbia Bar Association, Sena- something could be done." :tor Alexander Wiley, Republican He was then asked whether the of Wisconsin and chairman of situation could be considered the Senate Foreign Relations under the Rio ne,4it as ea threat Committee, said the lominous Rio de Janeiro. ? to the security of the Western a ? A State Department spoke si a of Communise intervention" that am Hemisphere." sphere was one ot the "aspects emphasized that Washington had , Mr. White said it esuld. But ? not yet fully decided whether tiie T,,,flecting the caution being ex: merited ' the closest and most shipment constituted Such a ercised by the State Department continuous consultation" among the Inter-American leaders. threat or not: But therel was no in discussing the matter, hel He said that the arms ship- ment, the size of which the State Department has refused to dis- close, was "totally disproportion- ate" to the needs of Guatemsla, and "contrary to the best inter- ests of all that for which the Organieation of the American States stands." News Alarming, Wiley &eye Speaking to the representatives of the 'Organization of American States and the Ambassadors of the Latin American countries as- signed to Washington, Senator Wiley observed that he was sure that his audience was "keenly aware of the grim implidations" of the report of arms' being sent to Communist-dominated Guate- mala, "I say that this news is alarm- ing and it is of the utmost grav- ity to the cause of inter-Ameri- ? m" doubt but that the United, States would favor an examination of that possibility under the Rio pact, and would support another Government's proposal to that urged against any assumption that the United States itself re- garded the incident ae a threat to hemispheric unity. In an announcement yester- effect. day, the State Department des- i Lincoln White, State Depart- cribed the arms shipment from ment press officer, declined to . Stettin, Poland, to Puerto Bar- , discuss what action the United rios, Guatemala, as "a, develop- States or other American re- ment of gravity." publics might take, but he dis- Officials would not enlarge on closed at a news conference that that announcement today, but it this Government had brought the was learned that it was regarded arms shipment to the attention with such concern here that Sec- of the Latin-American embassies retary of State John Foster Dul- in Washington yesterday. les planned to take the situation Asked whether action could be up with President Eisenhower taken under the Rio treaty, the tomorrow morning, State Department spokesman re- The Rio pact, formally known plied: as the Inter-American Treaty of "Yes, certainly something could Approved For Re ease 2000/05/03 : CIA-RDP62-00865R000300200002-7 TIES CUT BY NICARAGUA Diplomats Leave Guatemala as Relations Are Severed Special to The New York Times. GUATEMALA, May 19?Nica- ragua broke off diplomatic rela- tions with Guatemala today. At noon the Nicaraguan diplomatic staff of seven members and their families, headed by Ambassador Aurelio Montenegro, left the country. The Ambassador, aside from saying he had received instruc- tions to close the embassy and consulate and leave Guatemala, offered no comment. A large group of the Ambas- sador's friends and other mem- bers of th sdiplornatic corps bade tile diplomats farewell at the Wipe/rt. It z understood the Gua- temalan Ambassador to Nica- ragua, Col. Gabino Santizo, will be asked to leave the country. Relations between the coun- tries have been estranged since February following Guatemala's denunciation of an alleged inter- national plot , seeking to over- throw the regime of President Jacobo Arbenz Guzman. Nica- ragua was charged with compli- city. Thes echarges were denied by President Anastasio Somoza of Nicaragua. During the recent disturbances In Nicaragua, five Nicaraguans took asylum in the Guatemalan embassy in Mena gut Washington Not Surprised Special to The New York Times, WASHINGTON, May 19-- State Department officials indi- cated today that they were not surprised by Nicaragua's break with Guatemala, but they with- held comment for the present. It was recalled that relations between the two Central Amer- ican Governments had been uneasy for Some time. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 11.1. Thwo maintained a rricy of secrecy 'are toward both the details of the MAY 20 1954 shipment and the course of any LATIN ARMS CARGO UPSETS PRESIDENT Eisenhower Is Disturbed by the Danger of Communist Outpost on Continent By WALTER H. WAGGONER Speetal to The New York Times. WASHINGTON, May 19 ? President Eisenhower declared today it was "disturbing" to have a shipload of arms from Commu- nist Poland delivered to Guate- mala. It would be "a terrible thing," he continued, if the Com- munist dictatorship were to establish an outpost on this continenf. That was the President's com- ment, offered in reply to a ques- tion at 'his news conference, on the recent disclosure that a ship, sailing out of Stettin, Poland, began to unload a cargo of arms as Puerto Barrios, Guatemala, last Saturday. As'ked for his "reaction" to the arms shipment, which the State Department has called a "de- velopment of gravity," President Eisenhower said: "Well, it is disturbing. I think that, above all, it highlights the circumstances, the background that led to the adoption of the resolution at the Caracas con- ference regarding communism in this country. "To have the Communist dic- tatorship establish an outpost on this continent to the detriment of all the American nations, of course, would be a terrible thing, and that was the reason for the Caracas resolution." The resolution to which the President referred was the "dec- laration of solidarity for the preservation of the political in- tegrity of the American states against international Communist intervention." Proposed by the United States, it was adOpted at the Tenth Inter-American Con- ference in Caracas, Venezuela, on March 13. The State Department has action that might be taken to meet that "development of grav- ity." Reliable informants indicated, however, that about 2,000 tons of arms were delivered and were now en route from Puerto Bar- rios to the city of Guatemala, about 150 miles away. Having informed 'the Latin American diplomats of the ship- ment, the State Department is prepared to let one of the Ameri- can republics take the initiative in proposing a method of dealing with the situation. There was speculation in some quarters that Honduras might be able to make a good case against Guatemala, linking the arms shipment from Communist Po- land with possible aggressive in- tentions on the part of the pro- Communist Government in Cen- tral America. Honduras, a neighbor of Gua- temala on the south, is torn by a series of strikes severely ,erip- pling the country's commerce and economy. There is evidence that the strikes have been fomented by foreign agents, presumably slipping into Honduras front Gua- temala. Latin American circles have contended that the develop- ments in Honduras would qualify that government for invoking the Treaty of Rio de Janeiro. If Washington were to take the initiative, it is said, the result would almost certainly be a charge that the United States was acting on behalf of the Unit- ed Fruit Company, much of whose large land holdings in Guatemala is now in the process of expropriation. Meanwhile, it, was disclosed here, press dispatches from Gua- temala have not reported any de- tails of the arms shipment be- cause of a law _that bars report- ing of so-called military informa- tion that does not originate with an official announcement. Authorities said the ban on such dispatches was a. standing prohibition and had not been im- posed only on news of the arms shipments. N. Y. MIRROR MAY 21 1954 11.1. Tells Why It Wouldn't Sell GuatemalaArnisi WASHINGTON. May 22 The United States said Saturday it has refused to grant licenses for arms shipments to Guatemala because of uncertainty over what use the Central Amer- ican republic would . make of them. The State ? Depar trrient made this known in a formal state- ment. following .up its disclosure a few days ago that Guatemala has received % large shipment of arms - routed through the Com- munist-controlled port of Stettin in Poland. SAT URDAVS. STATEMENT Was in answer to questions to whether this government has re- fused to permit the export of hunting rifles and other sporting weapons to Guatemala. A department spokesman said: "The U. S. Government has been unwilling to license emilmercial shipments of arms to Guatemala because of the obvious uncer- tainty as to the purposes for which those arms might be used. "As regards arms procure- ment assistance which has been made available to the ? other American republics, Guatemala Is ineligible because such as- sistance -is available only to those states which have rati- fied the Inter-American Treaty of Reciprocal Assistance (the Rio de Janeiro pact of 1947). "Guatemala is the only American state which has not completed its ratification of that. treaty." * * QUESTIONED f u rt he r, de partment snokesman Jamieson Parker said there have begn specific denials of licenses to ship arms to Guatemala. Earlier reports indicated the Communists sent 2,090 tons of munitions and arms to Guate- mala and that this single ship- ment was 'enough to tip the scale of military power in Central America to the side of Guatemala. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 N. Y. H. Z. NA Y 2 1 1954 Nicaragua Sees Plot by Guatemala By James E. Warner WASHINGTON, May 20. ? Nicaragua, hi a formal state- ment explaining the breaking off of diplomatic relations last night with Leftist-controlled Guatemala, today declared that "grave" happenings of recent weeks in Central America give evidence of a well conceived plot of Communist type which men- aces the peace and security of the Western Hemisphere. Dr. Guillermo Sevilla-Sacasa, Ambassador of Nicaragua, issued the formal statement on behalf of his government, which an- nounced the cessation of diplo- matic relations last night in Managua. At a press conference, Dr. Sevilla-Saska hinted that pre- Xminary talks already may be under way regarding possible further action on the Treaty of Rio de Janeiro and an anti- Communist resolution adopted at the recent inter-American conference in Caracas, Vene- zuela, Cites Arms Delivery Of the cargo of arms recently landed in Guatemala from, Strettin, a port in Russian-dom- inated Poland, a developmenti which both President Eisen- hower and the American State Department have labeled as of the gravest signfica,nce, Dr. Se- villa-Sacasa said: "The cargo of arms which reached Guatemala from a country behind the Iron Curtain is considered excessive for the military needs of that Central American republic, and thus it may be affirmed that acquisition of thie large quantity of arms threatens the peace of Central America and the security of the Western Hemisphere," he said. "Without a doubt the forego- ing is grave and logically brings us to consider the possibility of inter a American consultation through application of the pro- visions of the Rio Treaty and the anti-Communist declaration at Caracas." Consultation Rare Nicaragua thus became the first Latin-American country to raise the possibility of consults,- Cc) Al` . Approved For Relex 2000/05/03 : CIA-RDP62-00865R000300200002-7 lak tion regarding the Cormauniat threat in Guatemala. Such con- sultations are relatively rare, having been held in 1939, 1941, 1942 and 1951 on such grave : question as the implications of the war in Europe, the Japanese attack on Pearl Harbor, now European colonies should be treated during hostilities, and the like. Dr. Sevilla-Sacasa was chair- man of the first, or juridicial- political affairs commission of the Caracas conference, which recommended adoption of the resolution presented by Secre- tary of State John Poster De?es denouncing Communist inter- ference in hemisphere affairs. Today Dr. Sevilla-Sacasa noted that the foreign minister of Guatemala was "eloquent" at Caracas in opposition to the Dulles resolution. Nicaragua severed relatiOns witn Guatemala, said Dr. Sevilla- Sacasa, who later went to the State Department for a con- ference with Ur. Dulles, because his country considers "the Com- munist infiltration which has been taking place, through the Guatemalan Embassy in Nica- ragua, a grave threat to the preservation of Nicaraguan democratic inatitutions." This was proved, he said, by the foiling of a terrorist plot with Communist backing which had for its aims, among other things, the assassination of the President of Nicaragua and his sons. The United States is taking over the affairs of Nicaragua in Guatemala. Approved wmary. pft 1954 Nicaragua Weighs Talks On Red Peril Ey William Galbraith United Press Nicaragua may call an Amer- ican foreign ministers confer- ence to devise means of block- ing the spreading of commu- nism from Guatemala to other American countries, Ambassa- dor Guillermo SevillaLSacasa said yesterday. Nicaragua, which severed diplomatic relations with Corn- munis t-infiltra ted Guatemala 1Wednesday, took the initiative after the United States asked. :Sweden for information on the Swedish freighter that deliv- ered a cargo of Communist arms to Guatemala. [Earlier, the Nicaraguan Am- bassador said his governihent broke relations with Guatemala Wednesday because Guatemala had violated an agreement by spreading Communist propa- ganda in Nicaragua, the Asso- ciated Press reported.] Sevilla-Sacasa said Nicara- gua may seek a foreign minis- ters meeting to discuss "grave" developments in Central Amer- ica. He said the developments present evidence of "a, well- coneci yen, Communist-type plan." Meal-nab:1e, Honduran Am- bassador Rafael H. Valle said his country ha:,. not yet de- cided weenher to break diplo- matic relations with Guate- Imala. [In Mexico City, Guatemalan Minister to Mexico Gustavo Santiso Galvez accused the United States of being aggres- sion-minded in commenting on the arms story, the Interna- tional News Service reported.] [He ridiauled United States criticism that the arms ship. I ment creates a danger to the Panama Canal, saying: "The truth is that some political and financial sectors in the United States would desire that Guate- mala he without the smallest defensive element against ag- gressors which for some time have been preparing the im- perialist campaign, as for in- stance the United Fruit Com- pany."] CY, limes Ay 21 1954 STETTIN TO FuEaTo BA10S President Eisenhower has declared it "disturting- to live t Shipment of arms reach Guatemala from Commu- nist I'oland. It would he a "terrible , thing," he added, "to have the Cern- ' naafis:, 4...e:-ette Ai? eatt'ilish In out- acst on this continent to the detri- ment of all the American nations * * *." 'Ieee President observed that the incyent pointed up the back- ground af the resolution against in- ternational Communist aggression, passed at the Tenth Inter-Ameacan Conference at Caracas. Guatemala alone opposed the resolution, while Argentina and Mexico abstained. Meanwhile the State Department I has informed the Latin count,,..:; ' about the shipment, which it cona.d- ered a "development of gravity." Im- plicit in this action was the poser: May the cargo be taken to constitute a threat to collective security under the Rio Treaty of 1947? The depart- ment is wise not. to draw this con- clusion until it has been suggested by others arriong the Good Neighbors and, it is to be hoped, not merely by Somoza' s Nicaragua, which has just ' severed relations with Guatemala, or Trujillo's Dominican Republic. A deli- cate issue of regional policy is in- volved. The question of arms sales in Cen- tral America precedes by many dec- ades the question of communism there, although in the present in- stance the two appear to have merged,. The area has, been a tradi- tional starepiag ground for all sorts I of adventurers, operators and legiti- mate interfeediarkes. . In the current , icase the 8,,115 were shipped from Po- , land 'len the ship was mned her 1 Swedes and :;'hartered by Britons. Au ' American, Hubert P. Julian, con- firmed Wednesday that he has been buying European arms for Guatemala for several years, insisting that the Government there had forbidden him to deal behind the Iron Curtain. But i history shows that if a Latin (or other) country 'cannot buy arms In one place it is pretty sure to seek them somewhere else. And while there I has been no formal boycott, Washing- ton has not permitted the shipment of I arms and aircraft made here to Gua- temala. I As the President has put it, the! Guatemalan situation isi disturbing. I How to cope with it remains the most acute challenge to our hemisphere relations. For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 ""''? Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Nei M. Time! MAY 2 2 1954 Guatemala Says U.S.Trted To Make Her Defenseless By SYDNEY GRUSON Special to The New York Times. \ GUATEMALA, May 21?The Guatemalan Government said today that the United States ban on arms shipments here was aimed at leaving this country defenseless before its ene- mies. Guatemala's recent pur- chase of arms, presumably from Czechoslovakia, was "perfectly normal," Foreign Minister Guil- lermo Toriello asserted at a press conference. He offered to produce docu- mentary evidence of his country's long and systematic efforts to buy arms froni the United States. The alarm raised by the State ?Department over the arms ship- ment is "malicious and unjusti- fied,"Senor Toriello maintained. He accused the Department of aiding exiled Guatemalins intent on invading the country from abroad, or those within the coun- try who hoped to overthrow the Government by force. He charged the "governing cir- cles of the United States" with having committed an "act of ag- gression against Guatemala" by withholding arms needed for de- fense or to repel an invasion.. ' , The State Deppartment had described the arms purchase as "a development of gravity" be- cause of the origin, point of em- barkation, destination and quan- tity of the arms involve. Shipped from Stettin, Poland, the arms arrived at Puerto Barrios last Saturday aboard the Swedish freighter Alfhem. Senor Torten? refused to dia.- cuss the type and quantity of arms bought on the ground that these were "military secrets." The railroad that is carrying the arms between Puerto Barrios and this capital was requested last week by military officials to prepare to transport ,2,000 tons of military equipment from the port. In his attack, Senor Toriello touched not? only on the arms question but also on the depart- ment's recent actions and state- ments regarding the wave of strikes in Northern Honduras and between Guatemala and the United Fruit Company. He denied categorically "that his Government had anything to do with the Honduran strike situation," as he said had been i insinuated by the department. Such insinuations are aimed at !masking the real causes of the strike and at creating animosity between the "brother republics" of Honduras and Guatemala, he declared. The Ministers termed "open in- tervention" a recent note from the department asking nearly $16,000,000 on behalf of the United Fruit Company as a re- sult of expropriation of company lands under Guatemala's agra- rian reform law. He insisted that the company would receive no i fel ,n, treatment from Guate- malans affected by the law. 1 The Government's formal state- ment declared that Guatemala had never negotiated the pur- chase of arms from the Soviet - Union or Poland, and that no arms from either of these coun- tries existed in Guatemala. When Senor Toriello was reminded that the State Department had not named either country as a source of the arms, but had stated that they came from Communist-con- trolled territory, the Minister replied. "For us, Communist-controlled territory is the Soviet Union. Other countries are sovereign." In purchasing arms, he said, t Guatemala made us of her , mate right as a sovereign coun- try to trade freely with any country in the world. Heatedly, 1 he added: 1 Guatemala is not a colony of the United States nor an asso- ciated state that requires permis- sion of the United States Gov- ernment to acquire the things indispensable for its defense and security, and it repudiates the pretensions of this Government [the United States] to supervise the legitimate acts of a sover- eign Government." ? Senior Toriello rejected what LS. Monitor MA Y 22 1954 Cuaternala Arms: Shipper Explains By Reuters Stockholm A ship broker who char- tered the Swedish vessel Alf- hem for the past three months has said he never would have done so if he had known the vessel was going to transport arms front a Communist port to Guatemala. "I have submitted a report to the American embassy in Stockholm," said Alfred Christensen. "I have papers to show I acted in good faith. If I had known the Alfhem was to pick up Communist arms, would never have chartered her." Tic,, MAY 2 4 1954 Guatemalan Anti-Reds Elect Special to The New York Times. GUATEMALA, May 23?The Anti-Communist Labor Commit- tee, an organization founded sev- eral months ago by large group of laborers who repudiate Communist maxims, elected Al- berto /ferias secretary general last night. Senor Merlos replaced the late Oscar Luna, whose body was found floating in a near-by lake last Sunday. he described as accusations that Guatemala constituted a "beach- head of Soviet communism on the American contenent," or that she was an "instrument of Moscow" or a "spearhead of the Soviet Union against the United States.", He freshened the picture ofl Guatemala that he has so often drawn for the world in recent months as follows: A poor coun- try trying to replace with social ustice and economic liberty the efects of decades of tyrannical oppression , by right-wing dicta- ors and foreign monopolies, par- icularly the United Fruit Com- pany. The real cause of the "mali- ious propaganda campaign now rising to a climax against Gua- temala is to "prepare a climate for intervention," the Minister charged. He refused to say what action his Government would take if a consultative meeting of the Or- ganization of American States was called on the question of communism in Guatemala, but he expressed doubt that the other Latin-American republics would support "intervention." Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 ILL H. T. MAY 23 1954 GUATEIVIALA CITY, May 22 (R).?Two men were killed and three wounded Thursday when Guatemalan troops fought a machine-gun battle with "for- eign saboteurs" who tried to dynamite a munitions train, it was announced today. Interior Minister Augusto Charnaud MacDonald said one soldier and one saboteur were kille dand three soldiers wound- ed in the battle near Castaneda, a banana town ten miles from Puerto Barrios, where a ship- load of arms arrived a week ago, reportedly from Communist Po- land, The train was carrying arms unloaded from the ship from Puerto Barrios to Guatemala City. Mr. Charnaud said neither the train nor its cargo was dam- aged by the sabotage attempt. He said the saboteurs planted "eight charges of TNT under a railroad bridge" near Castaneda. For some reason, only two of the charges exploded when the train rolled onto the bridge, and the structure escaped serious damage. Mr. Charnaud said the sabo- teurs fled toward the border of Honduras, ten miles southelst of Castaneda. He added: "The Army is following them closely,! and it is expected they will be' captured soon." Approved For Rd *ease 2000/05/03 : CIA-RDP62-00865R"0300200002-7 H. Y. H. T. MAY 22 1954 Shipped From Red Countries Report More Munitions Latin America Bound By James E. Warner WASHINGTON, May 21.?The United States government has Information that other arms- laden ships from behind the Iron Curtain m y be on the way to Central America, Rep. Patrick J. Hillings, R., Calif., said to- night. The State and Defense De- partments had no commen', on the report, but it is known that this government is pressing beth in this hemisphere and in Europe inquiries into the case of the British - chartered Swedish ship Alfhem, which discharged 1,900 tons or an estimated $10,- 000,000 worth of suspected small arms from Stettin, in Red- dominated Poland, at Puertos Barrios in Guatemala,. "With reports of Russian sub- marines off the 'Central Ameri- can coast and these 'worts of additional munitions - carrying freighters en route there," Rep. Hillings said, "it is imperative that we deny the use of the Panama Canal to any suspicious vessels. It is obvious from recent developments that the Kremlin is stepping up its drive to establish a beachhead on this continent." Alfhem cargo is that it con- While official silence pre- tamed $10,000,000 worth of vailed over what steps, if any, small arms and light field are being taken to prevent a pieces. The total annual? budget recurrence of the Alfhem arms of Guatemala Is $60,000,000, so landing, it became obvious that that both the size and the se- crecy surrounding the shipment are matters of grave concern to tIVer government. Originally the shipment showed on the ship's manifest as "optical glass and laboratory supplies." One informed source noted States and Honduras. ? Tenth Agreement It is the tenth such agreement signed by the United States with Latin-American republics with- in the framework both of the Rio de Janeiro treaty of 1947 and the United Nations Charter: Such treaties previously were signed with Ecuador, Peru, Cuba, Brazil, Chile, Colonibia, Uruguay, the Dominican Repub- lic and Nicaragua. They result from the continuous planning of the Inter-American Defense Board which sits here. The two departments, in an- nouncing the signing of the Honduran treaty at a time when attempted Communist penetra- tion of the Western Hemisphere is very, inuch to the fore, said such treaties "illustrate the spirit of co-operation prevailing among the American republics which makes it possible for them to concentrate, through self help and mutual aid, upon increasing their ability to contribute to the collective defense of the Western Hemisphere." Best information available to this government regarding the agencies of the United States government are keeping a sharp eye, on such suspect shipping. A ship was searched in Puerto Rico within the last few clw on suspicion of carrying arms, Rep. Hillings reported. None was found. It was known also to this government that the itin- erary of the Alfhem, originally that a Guatemalan diplomat had conceded there were 400 with Dakar as the port of desti- tons of arms In the ship, un- nation, was changed three times loaded under heavy guard under while she was at sea. ' the supervision of the Guate- These developments accom- malan Minister of War, and panied a joint announcement by that 1900 tons of optical glass the Departments of State and Defense of the signing yesterday of a bilateral military assistance agreement between the United and laboratory equipment would "supply all the labora- tories and equip every Guate- malan with glasses of very thick 11.enses indeed." Approved Fo ItigeanasielbtfOrgeffiS ILL Jima MAI 23 1954 ARMING OF GUATEMALA ALARMS ITS NEIGHBORS Tension in Central America Rising With Actions of Communist Front By PAUL P. KENNEDY Special to The New York Times. TEGUCIGALPA, Honduras, May 22 ?In so far as Central America is concerned, the State Department announcement this week that Guatemala was receiv- ing an arms shipment from be- hind the Iron Curtain made the drak little Atlantic coast town of Puerto Barrios a focal spot. People from Panama to the southern Mexican border have, since that announcement, been asking themselves and their neighbors whether now is the time they have been expecting and dreading?the beginning of all- out Communist expansion from a Guatemala bridgehead. The arms shipment, whether great or small ? and none here has learned its magnitude?seems to have provided a highly im- portant piece in the complicated puzzle of Central American poli- tics. Caracas Resolution When, by United States pres- sure, an anti-Communist resolu- tion was pushed through the Caracas conference last March, the 'reaction in Latin-America generally and in Central America particularly was varied. Alfhem would have put her in Dakar. Two days out of that North African port the ship was ordered to Curacao. D. W. I. IV? days out of this Caribbean port the ship was ordered to Puerto Cortez, in Honduras. But long before reaching that port the ship was ordered to its final destination, Puerto Barrios, Guatemala. All these facts were known to the United States government, ? it was learned tonight, before ? it announces arrival of the arms shipment, a? development which both the State Department and President Eisenhower have de- ea -ROPt2s-detftelhoM3200002-7 One body of opinion was that the anti-Communist resolution was a gesture, pure and simple, without strength. Another body of opinion, equally strong, was that the United States had brought to a head a delicate matter and that it was only a question of time until Washington had to back up its move or be out-bluffed. There was a brief lull following the Caracas conference, and then things began happening. First off, four United States Ambassadors to Central America were called to Washington for conferences. These men were ex- tremely reluctant to admit' there was anything out of the ordinary in the calls, loot one of them told this correspondent privately, "Well, we put through our reso- lution in Caracas, and now we: have got to decide what we're i going to do about it." Assassination Attempt At about the time these con- ferences were on, there was an attempt on the life of President Anastasio Somoza of Nicaragua. At about that time, also, pres- sures on United States organi- zations in Guatemala began to be iztcreasingly intense and anti- United States feeling in official circl s th a a Ma ca it th ev ge ar e en increase proportion- tely. This growing antipathy to the nited States, imposed from bove, came to a climax in the y Day celebration in Guate- ala, where "Uncle Sam" was ade the butt of all conceivable ypes of bitter Jest. Next in the unfolding pattern me the Honduran strikes. In- ially they were directed against e United Fruit Company, but entually they developed into a neral strike in the north coast ea. Then came a discovery of ched arms on a Nicaraguranl Cs vt /0, Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 beach, alleged by General Somoza to have been of Soviet make and to have been delivered by sub- marine. Now, Nicaragua has broken off diplomatic relations with Guate- mala and there are strong rumors of an impending diplomatic break between Costa Rica and Nica- ragua, Cautions Noted The obvious thing is to read linto all this a direct reaction to pressure on burgeoning Commu- nist influences in Guatemala. As a matter of .fact, this situation might give-rise to possibly erron- eous conclusions. Guatemala's interest in the British Honduras election was so keen and blatant that an immedi- ate thought was that the anti- Government forces in that neigh- boring country, led by the tic but, in its leadership, strongly resistant to communistic influ- by outside sources. The strikes in Honduras un- doubtedly have been influenced by outside sources, There is a strong suspicion that Communists infiltrating from Guatemala and El Salvador were guiding these strikes which some days ago seemed apt to bring the entire nation to its knees eco- nomically. The suspicion of Com- munist organization and propul- sion in these disturbances is strong, but no sound proof has been made public. One way or another, there is not the slightest doubt in any- one's mind but that the Commu- nist influences in Guatemala are making themselves felt in all parts of Central America, despite the efforts of the other govern- ments to curb them. People's United Party, were per- Militarily, the United States is haps basically Communistic or propelled by Communistic influ- ences. No evidence was produced by the British Honduras Government or by the large number of foreign correspondents covering the elec-, ragua and Honduras. The conclu- tion that this was the case. There, stout of one with El Salvador was evidence that leaders of the Belige movement accepted funds from Guatemalan officials, but all other evidence was that the et indigenous and movemn was doing its utmost to draw a circle around this spot of Communist infection. Military assistance pacts?strong, despite the lack of publicity about them?have been concluded with Costa Rica, Nica- appears imminent. These military assistance pacts, strange arms shipments and as- sassination reports and rumors are keeping Central America, in sometimes fanatically nationalis-iferment. imWhere Communist party is legal and a present threat' Whits boxes' denote total population,lolack boxes Communist party membership Where Communist party is illegal "me 'W .10 !-- 3 1954 Arms Flash Warning Guatemala Points Up 1 Danger to Hemisphere By James E. Warner WASHINGTON. next few days may produce some Tiny Guatemala and Corn- highly significant developments, munist infiltration there is mak- according to the best-informed ing the headlines currently, and opinion here, her situation is a flashing warn- FOr-Fold Interest ing of what the Soviet Union is Russia's interest in Latin plotting throughout Latin America is four-fold. Direct eco- America. nomic, military and strategic benefits to the Xremlin of a beachhead in this hemisphere are too obvious to mention. But such a beachhead, no matter how tiny, has these other advantages from the Kremlin standpoint: 1. It would be established un- der the eaves of the strongest anti-Communist country in the world, the United States. 2. It would crack?if estab- Possibly the current furor over a shipment of arms from Red Poland to Guatemala is a bless- ing in disguise, for it directs attention of North American newspaper readers to a highly sensitive and strategic area too often overlooked. Latin Ameri- cans long have complained that the United States is so preoc- cupied with Europe, the Far East and other areas, that it gives scant attention to neighbors in lished?the oldest collective its own back yard. security organization in the Brother as Envoy world, the Pan American Union, and also the Organization of President Eisenhower has American States. done his best to overcome this 3. It would also crack the cen- feeling on the part of the Latin tory-old concept of the Monroe countries by dispatching his Doctrine?America for the brother, Dr. Milton Eisenhower, Americans, and not to be ex- ploited by any foreign ideology, whether colonialism or Commu- nism. on a tour of the southern con- tinent. He warned of the threat of Communist infiltration in any Latin country long before the State Department. As long ago, as last Oct. 24, when the new Ambassador of the Dominican Republic presented his creden-, tials here, Gen. Eisenhower, in a formal exchange, expressed concern over the threat to hem- ispheric peace and security raised by Communist activities. But even though it has infor- mation that other arms ship- ments from behind the Iron Cur- tain already are en route to Latin America, this government is be- ing extremely careful in building the case against the original shipment to Guatemala. The 4. It would be at once a ter- rific propaganda advantage to the Russians (as well as a prac- tical military one), by possibly destroying confidence in any col- lective security agreement, In- cluding those of the United Na- tions and the important North Atlantic Treaty Organization. Size Not the Point The Communist problem in this hemisphere is measured by the Eisenhower administration not by the size of the country or the amount of contraband (if they are so proven) arms shipped. If tiny Guatemala were only one-tenth its size or as big Co KT' Approved 'Fut elease 2000/05/03 : CIAIRDP62-00865R000300200002-7 II Approved For Rase 2000/05/03 : CIA-RDP62-00865RM300200002-7 as Brazil?which has enough area to include the entire United States with an extra Texas tossed in?concern of the United States over the pur- ported arms shipment could not be either more or less. The phrase "hot as a pistol" does not enter into diplomatic conversations or comments. However, that phrase, with no depreciation of the serious sit- uations extant in other regions., of the world, can be applied without reservation at this time to Latin America with regard to Communist aims. That is the view of the Eisen- hower administration, and should give comfort to those Latin neighbors who assert with considerable justice that Latin- American news, short of a bloody revolution or something linked to Europe like the Guate- malan arms shipment, selcioni gets a page one play in North American newspapers. The Puzzler But what to do about Guate- mala at the moment is a puzzler. A cruiser and some Marines could settle the duatemalan situation over night, say ionie diehards. Maybe they could? over night. But they would be playing right into the hands of Moscow. Meanwhile, from both sides of the Atlantic, this government is painstakingly assembling infor- mation regarding the Guate- malan incident. The purpose is to build a case, with indiSput- able evidence, that the incident Is, in fact, a threat to the se- curity of the hemisphere. Only with this evidence in hand, short of an overt act in terri- torial waters, will the United States move, and then only with the backing of its sister repub- lics, one of which, Nicaragua. already has branded the Guate- malan i9cident as a prime cause for inter-American consultation end aetion. "Ralaa"795167, MAY 23 U.S. Air Fleet In Bolivia Urged To Balk Reds Bolivian military and air attache Gen. Antonio Se- \ teme suggested yesterday that a major U. S. Air Force be sent to his country "as an answer" to Guatemala's Communist arms shipments. In an official statement cleared with the U. S. State De- partment, Seleme, 49, said that to "let this incident pass is to surrender the Panama Canal to the Reds, in case of war." The General also called for an "emergency conference" of Latin American countries to form a Pan-American NATO to keep "a Korea or Indochina from enter- ing through the back door." TIME RUNNING OUT. Belem?, in New York to speak at a Veterans of Foreign Wars Communion breakfast today, warned that "time may be run- ning out on us" if the free na- tions hope to keep communism trom engulfing the Americas. He pointed out steps musty' be taken by the American nations to protect the Bolivian tin sup- Ay. S. air fleet, based in Bo- livia, would be located in the "most dominant part of South America, so that it could quickly reach any point around its periphery," Gen. Seleme said. ty. Timis MAY 231954 GUATEMALA HINTS U. N. asE ON ARMS Considers Aggression Charge Against U. S. for Barring Purchase of Munitions By SYDNEY GRUSON Special to The New York Timm GUATEMALA, May 22?The Guatemalan Government is con- sidering eirthg its dispute with the United States before the United Nations Security Council. Foreign Minister Guillermo Toriello let some members of the diplomatic corps in on the Gov- ernment's intentions last night, although no mention of the pos- sibility has been made publicly. The diplomatic corps, with the notable exception of the United States Ambassador, was called to the Foreign Office to hear Guatemala's case on her recent purchase of arms, presumably from Czechoslovakia: The arms, believed to total 2,000 tons, arrived in Puerto Bar- rios last Saturday aboard the Swedish freighter Alf hem. They were shipped from Stettin, Po- land, and the State Department has described the purchase as a "development of gravity" be- cause of the quantity involved, the point of embarkation and the origin and destination of the arms. Nicaragua, which broke off relations with Guatemala this week, has taken the initiative in sounding out other Latin-Ameri- can republics on the possibility of calling a consultative meeting of the Organization of American States to discuss the menace of communism in Guatemala. Sehor Toriello told the diplomats that Guatemala would attend a con- sultative meeting if one were called. voted in favor of an economic or any other kind of boycott of Guatemala, he was reported to have said. He also mentioned the possibil- ity of bringing Guatemala's case before the Security Council if wnat he described ee the "at- tacks" against Guatemala con- tinued. Sehor Toriello received the Am- bassadors and ministei's individ- ually, then five charges'd'affaires as a group. Each received a copy of the declaration made by Sehor Toriello to the correspondents! yesterday morning, the minister1 remarking that he wanted the dip-, lomats to have an official copy because the foreign press and particularly newspapers of the United States sometimes left things out. As he did with the press, Serior Toriello amplified the official declaration with numerous ex- temporaneous remarks. The ma-1 jor point in the declaration was that the United States had pre- vented Guatemala from buying arms there and in many other parts of the world mid had left the country no other recourse than to buy where it could. According to the Minister, this was a deliberate boycott on the part of the United States to leave the present Guateinalan Govern- . ment in which the Communists have considerable influence an easy prey for its enemies both here and abroad. The boycott ex- tended so far as to prevent the country's hunting and fishing club from obtaining ammunition, the Minister emarked bitterly. He emphasized to the diplo- mats that Guatemala had the right to trade with any ,country in the world. Guatemala, the of- ficial declaration said, "is not a colony of the United States nor an associated state that requires permission of the United States Government to acquire the things indispensable for its defense and security." Possibility of Boycott He raised the possibility of Se- curity Council action in tliscues- ing this point with some members of the corps. The Security Council! !would be asked to act, if the Or- Approved For Release 2000/05/03 : C1A-RDE162600865R000600264)00?2 ? U. S. Aggression Charged The declaration foreshadowed the grounds on which Guatemala might take the dispute to the Security Council. As this coun- try's officials see it, a United States military boycott impeded: the Government in fulfilling its' duty to provide for defense of the country and for internal order and this constituted aggression against Guatemala. Anticipating what a consulta- tive meeting of the Organization of American States would be like- ly to be asked to decide, the dec- laration said an economic or mili- tary boycott and the propaganda campaign constituted aggression grave or even graver than ed aggression. Sefior Toriello told some of the diplomats at the Foreign Office c.. ka?-. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 last night that 'reports on the amount of arms bought by Guate- mala had been "exaggerated." But he did not give any figures. Diplomats have accepted the fig- ure of 2,000 tons because that was the amount the railroad was told it would need to carry from Puerto Barrios to the capital. Up to yesterday afternoon the railroad already had carried sixty-nine carloads of crates un- loaded from the Alfhem and each carload was of twenty tons. The shipping job was still under way today. The Alfhent's manifest listed the shipment as "hardware" and detailed it as automobile parts, Iron rods, optical glass and the like. There were no fewer than sixteen crates of iron rods on the manifest. U. S. Arms Refusal Explained Special to The New York Times, WASHINGTON, May 22?The United States has refused Guate- malan requests to buy arms here because of the "obvious uncer- tainty" of the use that might be made of them, the State Depart- ment aaid today. Amid widely heard but uncon- firmed reports that two more shiploads of weapons from Com- munist sources were now on their way to Guatemala, a State De- partment spokesman said that both commercial export of arms and United States military. as- sistance available to other Latin- American countries had been barred from the pro-Communist Guatemalan Government. Requests for normal commer- cial purchases by Guatemala have been turned down because offi- cials feared their use for illegit- imate purposes, possibly for smuggling to Communist guer- rillas in neighboring Central American republics. United States military aid has been prohibited, the State De- partment, explained, because Gua- temala is the one Latin-American nation that has not ratified the Inter-American Treaty of Recip- rocal Assistance, the so-called Rio de Janeiro pact of 1947. The United States now has un- der way a thorough study of the arms shiment by the Alfhem, with a view to possible requests for action under either domestic or international law. At least two countries may be indirectly involved in the ship- ment?Sweden, because the ship sailed under a Swedish flag and the consignor of the cargo was a Swedish national, and Britain be- cause a British concern, chartered the vessel from its Swedish owner and then subleased it back to a Swedish consignor. 11.T. Times M A Y 2 5 1954 U. S. FLYING ARMS TO 2 LATIN LANDS NEAR GUATEMALA Nicaragua. and Honduras Get Small Weapons as Result of Red Shipment to Neighbor By DANA ADAMS SCHMIDT Special to The New York 'Tines. WASHINGTON, May 24?The United States is airlifting arms to Nicaragua and Honduras, the IState Department announced today. , The airlift was started after the department discovered a week ago that "an important shipment of arms" from. Commu- nist Poland was being unloaded at Puerto Barrios, in Communist- dominated Guatemala. Honduras is east of Guatemala and Nicaragua east of Honduras. The United States is treating the latter two countries as possible targets of Guatemalan aggres- sion or of internal.. Communist subversion. A Defense Department spokes- man said that two or three Unit- ed States Air Force Globemas- ters, each capable of carrying about twenty-five tons, were transporting small arms?pistols, rifles, machine guns and am- munition?to the two Central American republics. [Guatemala's Foreign Minis- ter, Guillermo Toriello, after a conference with John E. Peuri- foy, United States Ambassador, said the "groundwork" had been laid to end tension be- tween the two countries.] Defense Pacts in Force The State Department issued its announcement in response to reports that arms Were being flown from Mobile, Ala. Neither the State nor the Defense De- partments would confirm that this was the point of origin, how- ever. Approved For Re I arge YOMCP57035.1CFA- tual defense agreement with Hon- duras only last Thursday and a similar agreement with Nicara- gua on April 23. These are the only Central American Republics that have signed agreements pro- viding for United States arms and training programs. Mutual defense treaties had been signed previously with Ecuador, Peru, Cuba, Brazil, Chile, Colombia, Uruguay and the Dominican Re- public, The arms delivered in the last week to Communist-dominated Guatemala are believed to be of Czechoslovak manufacture and have been estimated at 2,000 tons A. State Department spokesman Lincoln White, acknowledged that the department was aware of rumors that two additional ship- ments of Czechoslovak arms were on their way to Guatemala from the Polish port of Stettin. - Mr. White said arms shipments to Honduras and Nicaragua un- der the agreements had been speeded up because of develop- ments in Central America. But he maintained that delivery of arms by air was in itself "not unusual" since there was little difference between the costs of sea and of air delivery to that part of the world. "The United States, in imple- mentation of the Mutual Defense Assistance Program agreements recently signed with Nicaragua and Honduras, is making an initial shipment of military equip- ment to both these countries by air," he said. Other sources believed Mr. White was mistaken about the relative costs of air and sea transportation. , Quatemala has any army of about 22,000 men and a small air force. Honduras has an army of 2,500 men organized in twenty- three and a battery of artillery, and an air force of forty-six planes. Nicaragua, whose Pres- ident is Gen. Anastaso Somoza, has a National Guard of 220 offi- cers and 3,000 noncommissioned officers and enlisted men, and a reserve of 4,000 men. Small United States mill*ry missions have been stationed in all three countries for several years. Quatemala has maintained that the United States would not sell her arms and that she had the right to buy them where she could. 62-00865R000300200002-7 LT. Times MAY25 1954 GUATEMALA EASES STAND TOWARD U.S. After Meeting With Peurifoy, Foreign Minister Sees Basis for Ending Tensions By SYDNEY GRUSON Special to The New York Times. GUATEMALA, May 25?The Guatemalan Government asserted today that the "groundwork for talks to end the tenseness" of relations with the United States had been laid in a conference this morning between Foreign Minis- ter Guillermo Toriello and John E. Peurifory, United States Am- bassador. Senor Toriello made this an- nouncement at a press conference held immediately after his ninety- minute talk with the Ambas- sador. It came as a stunning surprise. Relations between the coun- tries have been deteriorating steadily and had reached a crisis over Guatemala's recent pur- chase of 2,000 tons of arms from behind the Iron Curtain. Senor Toriello implied that the atmosphere in which the two countries have been discussing their problems had already or was about to change completely, although he conceded that no specific proposals had been ad- vanced by either side at the meeting. Envoy Restricts Comment "We had a long friendly talk, as a result of which I have hopes that the problems between our two countries can be resolved cordially," the Minister declared. Mr. Peurifoy confirmed that the meeting had ranged over a 'wide variety of problems. But neither he nor other embassy officials commented on the inter- pretation placed on the talk by Senor Toriello. After the press conference the Minister told this correspondent: "The situation just could not continue. It was like an elastic band that had been stretched and stretched until it was at the breaking point." ? He added with a smile: "Of course, we were not going to de- clare war on the United States." He said further talks had been arranged with the Ambassador, in which they would move from a general discussion to specific !problems. It was learned that I Sefior Toriello had suggested the c obeli- ? Approved For REglikse 2000/05/03 : CIA-RDP62-00865R0A300200002-7 possibility of Guatemala's ad- vancing specific proposals at the next ;fleeting, either late this week or early next week, for set- tlement of the United Fruit Com- pany dispute. The initiative for today's meet- ing came from the Foreign Min- ister. He asked the Ambassador to call at the Foreign Office to receive an official memorandum rejecting the State Department's claim for nearly $16,000,000 on ibehalf of United Fruit. The claim arose out of Guatemala's expro- priation of company land under her agrarian reform law. The memorandum declared: "The Guatamalan Government cannot accept any claim seeking privileged treatment for foreign- ers, which, under internal legis- lation, may not be given even to Guatemalan nationals." According to company figures, the Government had exporpriated up to May 1 a total of 392,945 acres. This has left the company 145,187 acres for banana produc- tion and other operations, To date the Government has deposited in the Bank of Guate- mala $1,185,115 worth of agra- rian bonds as compensation for the seized land. Compensation has been paid on the basis of tax evaluation of property Med with the Government by the com- pany many years ago. ? The company has refused to accept this, basis of compensation. Its officials noted that they had tried unsuccessfully since 1948 to have te Government aceept in- creased evaluations for tax pur- poses. Discussing the possibility of, Guatemala's bringing the arms case before the United Nations Security Council, Sefior Toriello said his Government had consid- ered this step. Then he added, "But this was before my conver- sation with the Ambassador." Also, he asserted that the ship- load of arms that arrived ten days ago was all that Guatemala had purchased. No other arms are on the way, he said, adding that reports of two 'other ship- loads en route must refer to "phantom ships." Cuba Tightens Security Special to The New York Times. HAVANA, May 25?President Fulgencio Batista has ordered Army, NNavy, police and intelli- gence chiefs to take stronger measures to prevent a resurgence of Communist activities in Cuba. His action stemmed from the situation in Guatemala. The President said: "Agents of international communism have been speeding up their activities in this hemisphere recently, and in the face of this danger the Cuban Government will increase and reinforce its measures to pre- vent a resurgence of Commtudat Approved For R maneuvers, such as espionage and infiltration into distinct sec- tors that are susceptible to such penetration." He added that the need for greater precautions was based on recent information obtained by the police. "I believe it is imperative that we act quickly," the President de- clared. "Toward that end, I have ordered the Ministers of Labor, Interior, State, Defense, Justice land Education to prepare a legal formula that will permit us to defend the masses and the na- tional peace from those risks that today are greater than even be- fore and constitute an extreme menace to our free people." Guatemala's arms purchase from the Soviet area and the statement by President Anastasio Somoza of Nicaragua that his regime has seized a quantity of arms manufactured in the Soviet Union were termed "alarming symptoms" by President Batista. "It is the duty of the American nations to prevent the possibility Of beachheads being established on our coasts by such slave-like and distant nations as Soviet Russia," he asserted. "If we do not realize the threats in time, if we do not fore- see these enormous dangers, we can see repeated here in our own part of the world the endless tra- gedies that today grip the na- tions of Europe and Asia." Mexico Begins to Worry Special to The New York Times. MEXICO CITY, May 25?Gua- temala's purchase of arms from the Soviet sphere and the mount- ing uneasiness in Central America have begun to jolt Mexico out of her saparent indifference to events juIt, below her soutlmn border. There still has been no official reaction, A Foreign Ministry aide said privately that authorities here were discussing the situation among themselves and were growing disturbed. The press, which normally re- flects the Government's attitude closely, has been devoting more attention than usual to Guate- mala in the last few days. The tone of it comments has changed from sympathetic understanding of fellow Latin Americans' hav- ing their troubles with the United States to frank alarm. The most forthright comment was contained in a ,cartoon in the newspaper Excelsior. It showed a switchboard operator marked "Guatemala" plugging a line into a board marked "Central Amer- ica." Leering from behind the board was the head of Georgi M. Malenkov, Soviet Premier. The girl was saying, "Ready, Sir," and the title of the cartoon was arms purchase, according to "Direct Contact." press comment, is the tension , that has suddenly erupted The paper Novedades said it CT. VON MAY 26 1954 Guatemala Fails to Grasp U. S. Concern Over Reds If Relations Are to Improve, It Is Felt, They Must Think in Terms of Checking Communists By SYDNEY GRUSON Special to The New York Times. GUATEMALA, May 25?The odds are against any meaningful improvement of United States- Guatemalan relations unless a change has come about, unan- nounced and unnoticed, in the Guatemalan Government's basic Embassy refused to comment on thinking on the Communist ques- the Foreign Minister's statement tion. that the groundwork had been It becomes more evident daily laid for easing the tense situa- that Guatemala has a basic mis- tion between the two countries. conception of the causes of, Knowing the Foreign Minister's United States concern over her, position on the Communist ques- Most officials seem unable to tion, an observer would have to realize that this concern is guess that he was being vastly rooted in the Communist prob- overoptimistic. lem. The few who do realize it It has been reported without consider it to be unjustified. confirmation that many of the Most officials here appear to Foreign Minister's remarks dealt have convinced themselves that with the fruit company problem, if the trouble over the United and that he skipped the question Fruit Company could be straight- of Communist influence on the ened out, everything else would Government. This is entirely in fall neatly into place. They are line with the official reasoning mistaking effect for cause, and here that the United States has no amount of pointing this out raised a Communist bogy in has made them see it. Guatemala as a pretext for in- Even if a working agreement tervening on behalf of the fruit between the fruit company and company. the Government were to be Officials like the Foreign Min- reached tomorrow, nothing would be changed unless the agreement was accompanied by steps to halt the Communists' tightening grip on the Land-reform administra- tion, worker peasant union and These officials refer frequently the Government's propaganda to the constitutional bar against machinery, political discrimination, without ever showing any awareness that Backgrounll t? be Weighed , Communist practice elsewhere in It is against this background; the world has been to destroy such constitutions. ereign tight to purchase arms oi Iron Curtain origin if she wished, could n eavr egru e become thatenin e Guatemala another "But it is undoubtedly an act Czeclioslovakia because "Czecho- of open hostility to the United slovakia was close ,to the Soviet States and of complete ignorance union and we are close to the of the spirit that animates the United States." Organization of American States," it added. They do not believe what Previously, checked, the Communists would the press had foreign observers and many Gua- shown complete approval for the temalans think: that, left un- Mexican Government's stand on Guatemala. Recent developments, eventually take over the Govern- however, seem to have given rise ment and the country by default. These officials see no connec- to reconsideration. Even more tion between the Guatemalan disturbing than Guatemala's Communist party and the Mos- cow-directed international Com- munist movement. This is prob- ( that the optimism expressed by Foreign Minister Guillermo Tori- ello, after his long talk yesterday with John E. Peurifoy, United States Ambassador, should be considered. A few details of the talk have become known. The United States isters do not see any menace in the Communists' takeover of the labor movement or in their dom- ination of machinery for the ad- ministration of land reform. gr6At/?066/05/0*ICIAaRDnyttaantabiffe:rm002-7 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 .4w ably the hardest part of the official reasoning to understand, since the ComMunistS here make no secret of their travels to Mos- cow and other Communist capitals and they echo Moscow propa- ganda as faithfully as, say, the ruling Communist party of Po- land. There is no evidence available to indicate any desire to check the Communists. They have never had a freer hand than they -en- joy today in the agrarian reform department. They have never been as strong in the labor move- ment and they show signs of wanting to increase their numeri- cal, strength in Congress, where they now hold only five of fifty- six seats. Many persons believe it may already be too late for effective action to halt the Communists' rise even if the Government sud- denly decided it wanted to do so. The Reds can summon 3,000 to 5,000 workers for street demon- strations. Their zealous work in land reform has undoubtedly won them ardent support among the Indians, to whom they have given land. Few believe they would ac- cept blocks to their advancement lying down. The worker and peasant bat- talions, even if they were armed with nothing more than clubs and machetes, represent the only or- ganized force in the country out- side the army and must be con- sidered in any assessment of po- litical factors at work here. As for the army, there is noth- ing to indicate that the recently acquired arms shipment from Czechoslovakia has caused It any- thing but joy. The connections between Guatemala and the Com- munist world, indicated by the shipment, has caused no apparent concern to the officer corps, on which in the long run the power of President Jacobo Arbenz Guz- man must rest, tit rife tnY 26 195?41 Text of Dulles' Statement on ? Guatemala WASHINGTON, May 25 (2P)? Follow4ng is the text of Secretary Dulles' formal statement on Gua- temala at his press conference today: The Guatemalan nation and _ people as a wholeare not Com- munists. They are predomi- nantly patriotic people who do not want their nation to be dominated by any foreign pow- er. However, it must be borne in mind that the Communists always operate in terms of small minorities who gain posi- tions of power. In Soviet Rus- sia itself only about 3 per cent of the people are Communists. In judging Communist influ- ence in Guatemala, three facts are significant: 1. Guatemala is the only Amer- ican state which has not com- pleted ratification of the Rio pact of the Americas. 2. Guatemala was the only one of the American states which at the last Inter-American Confer- ence at Caracas voted against a declaration that "the domina- tion or control of the political institutions of any -American state by the international Com- munist movement, extending to this hemisphere the political system of an extra continental power, would constitute a threat to the American states, endan- gering the peace of America." 3. Guatemala is the only Amer- ican nation to be the recipient of a massive shipment of arms from behind the Iron Curtain. Now Heavily Armed It has been suggested from Guatemala that it needs more. The New York Times May 26, 1954 RED BASE FEARED: Sec- retary Dulles said the recent arms shipment to Puerto Barrios (1) might have been designed to set up a bastion near the Panama Canal (2). armament for defense. Already Guatemala is the heaviest armed of all the Central American states. Its military establish- ment is three to four times the size of that of its neighbors, such as Nicaragua, Honduras or El Salvador. The recent shipment was ef- fected under conditions which are far from normal. The ship- ment was loaded at Stettin in Communist Poland. The ship was cleared for Dakar, Africa. The operation was cloaked un- der a series of chartering ar- CA. Monitor - RAY 2 6 1954 Honduras Recalls Envoy to Guatemala rangements so that the real shipper was very difficult to discover. When he was discov- ered he claimed that the ship- ment consisted of nothing but optical glass and laboratory equipment. When the ship was diverted from its ostensible destination and arrived at Puerto Barrios, it was landed under conditions of extraordinary secrecy and in the personal presence of the Minister of Defense. One can- not but wonder why, if the operation was an above-board and honorable one, all of its de- tails were so masked. In Position to Dominate By this arms shipment a gov- ernment, in which Communist influence is very strong, has come into a position to dominate militarily the Central American area. Already the Guatemalan Government has made gestures against its neighbors which they deem to be threatening and which have led them to appeal for aid. The Guatemalan Government boasts that it is not a colony of the United States. We are proud that Guatemala can honestly say that the United States is not in the business of collecting colonies. The important ques- tion is whether Guatemala is subject to Communist colonial- ism, which has already subjected 800,000,000 people to its despotic , rule. The extension of Cominu- nist colonialism to this henii- I I sphere would, in the words of the Caracas resolution, endan- ger the peace of America. By the United Press Guatemala City The Honduran Ambassador to Guatemala has been recalled by his government. Jacinto Octavio Durdn left immediately for home. Diplo- matic circles thought he would I not return here. Although when he boarded the plane he said he did not believe H.anduras would break diplomatic relations with Gvaternala, In an?ther development, Gu,atemalan Foreign Minister Guillermo Toriello said his government was Concerned LabolukAagrUtates_decision_. Approved For Rel ,iiitWA-t181011=r62-00865R000300200002-7 are "hostile to this country." ' IS Approved For Redikse 2000/05/03 : CIA-RDP62-00865R0,11300200002-7 Wag. test MAY 26 1954 These Days . Communists in Guaternula IT IS NOT casual that the Soviet universal state se: lected Guatemala as a base for operations against the United States in the Amer- icas. It is a populous country a n d t h e second largest in area in Cen- tral America. It lies on Mexico and the Hondu- rases. Its coattline touches both the Caribbean and the Pacific. Its influence can extend throughout Central America and into Mexico. It can be an excellent base to endanger the Panama Canal. The country is rich in raw materials, bananas, hard- woods, chicle, sugar cane, co- chineal, and coffee. Bananas became the principal item for export and most definitely af- fected the standard of living of the people, which was dread- fully low. The population con- sists of Negroes, Caribs and Indians and the various combi- nations of these races. The principal commercial ? ? By George Sokolsky enterprise in Guatemala was the United Fruit Co., which, under the agrarian reform law, June 17, 1952, was divest- ed of about 240;000 acres by expropriation. The assets of the International Railway of Central America were seized as the result of a tax dispute in April, 1953. Other companies have been confis- cated. Guatemala is now in that state of the Communist de- velopment known as a peo- ple's republic. This means a coalition of left wing politi- cal parties, in which the Com- munists are numerically not prevailing, but which they control anyhow by techniques developed in other countries. The leading party is called the Revolutionary Action Party in New York State. Most of the leading Commu- nists are now in their own Party (PAR), which has 25 out of 56 members in the Congre- so Nacional. This used to be a cover for Communists like the American Labor Party in New York State. Most of the leading Communists are now in their own party, but this was done only to make it possible for the dominant ?party to be able to deny that Guatemala is a Communist country. It is interesting to note that all political parties in Guate- mala are either wholly Com- munist or have a Communist group within them. The most moderate of these is the Parti- do de la Revolucion Guatemal- teca. The President of the country Is Col. Jacobo Arbenz, who was elected for a six-year term in 1950. Almost immediately after his inauguration in March, 1951, the Communists came out intO the open, leav- ing the cover party, the PAR, and by December, 1952, estab- lished their own party, the ? Guatemalan Workers' Party, which was legally registered and is now a member of the government coalition. Not a single fact justifies the claim ?that this is not a Communist country except that in the Approved For Release 2000/05/MMM, people's republic. SOVIET RUSSIA has since 1934 sought to establish a base of operations either in Cuba or in Mexico. In Cuba, the Communists encountered the opposition of General Batista, who suspended the functions of Congress and abolished po- litical parties temporarily. Batista seized power on March 10, 1952, and will hold it until the next general election, which has twice been post- poned. The Communists have not been able to work under Batista. In Mexico, the Commu- nist parties are legal but not included in the government. The labor leader, Vicente Lombardo Toledano, is gener- ally regarded as the Commu- nist leader not only of Mexico but of Latin America. The failure to establish a Communist base in Mexico, after the Soviet diplomat, Constantine Oumansky, was killed in an airplane accident In 1945, forced the Russians to develop another base. Other Central American countries were tried, but Marxism took hold best in Guatemala, which is now the first country af- filiated with the Soviet uni- versal state in the Americas. It represents a distinct threat to the peace of these continents because, pursuing a Marxist course, it must en- courage revolutionary action among all its neighbors. Im- Mediate 'trouble is to be ex- pected in the Hondurases, Costa Rica, Nicaragua and Venezuela. The most impor- tant next objective will be Colombia because of its prox- imity to the Panama Canal. In the development? of a revolution leading to the es- tablishment of a people's re- public, arms are as essential as propagandists and pene- trators into government. It must always be remembered that a confirmed Marxist, in whatever country, regards himself as belonging to the Soviet universal state and not to his own country. Some may even be Russian citizens, as are the Communist leaders in Korea. If Guatemala is to be the center of this operation, Its operations in other coun- gzpoifittaticiatld:PC=esi!y (Congrigkt. 1054. King Features EMICCatit Inc.) Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200 02-7 Wash. Deny ligni MAY 2 6 1954 Hidden Radio Station, and a Pastoral Letter Underground ant a Cardinal .., Fight the Reds in Guatemala By CHARLES LUCEY Scripps-Howard Staff Writer GUATEMALA CITY, May 26?A clandestine radio hidden in the mountains sput- tered a caustic attack on this country's communist-slanted government-- Thin-drenched plaza from the goy': An underground passes anti_ ernment palace, where sits President U. S. markings. They presumably came from lend-lease stocks given Jacobo Arbenz. Russia in government pamphlets quietly ANOTHER MINDZENTY? , World War II. The communist idea, the sources from hand to hand, or paints the In any real communist crackdown suggested, would be to plant the number' "32" in big figures on on the whole country the Archbish- American-made weapons in the op could become the Cardinal Mind- hands of foreign agents in Guate- the stuccoed walls?a reference zenty of this piece?and he recog- male and then charge them with to the section of the constitution nized it in the pastoral letter in plotting against the Guatemalan which prohibits political organi- which he recently rallied Catholics government. against the Soviet stooges here. zations of foreign or interna- This church leader knows the value of a Catholic action move- tional character? ment in combating communism, but ? as he observed today in an inter- Exiles scattered all thru Central view, the constitution severely re- America hope for backing and stricts priests from either political wait to strike at the government or labor activity. palace here? That means they cannot go among ? the workers of the fincas, as the A considerable but curbed anti- large coffee lands are called, alert- communist movement among uni- ing them to the Red danger. And, versity students, and a steadily even if this were permitted, there weakened opposition in the Guate- aren't the priests to carry on such malan congress? a work?in a strongly Catholic These are the local elements of country of 3,000,000 there' are only an opposition, whose strength is im- something over 100 priests. possible to measure, which chal- But at least a few Catholic lay- length the potentially solid commu- men are beginning to take up the nist control of this Central Amer- fight?very late?on a basis that lean republic, opposes the communists but does But these are not the greatest ob- not overlook the need to establish stacles to the unchecked spread of social justice for workers in terms communism here. Rather this op- of fair wages and individual owner- position rests in the stooped, slen- ship of land. der, gray-haired person of Msgr. The hold the Archbishop has on Mariano Rossell y Arellano, Catholic the masses was demonstrated last Archbishop of Guatemala. year when rumors swept the capi- tal that because he had participated POPULAR SUPPORT in a "political" meeting he was to He is the one figure in the coun- be exiled from Guatemala. Msgr. try, observers say, who would have Rossell y Arellano said today the the people on his side in any direct meeting was in tact religious and conflict with the communists, now was political only to the extent of intrenched in some of the most im- playing the national anthem. portant functions of the govern- . . But as the tumor spread, firEit govern- ment. the Women selling flowers ahd frUit In recent months he has spoken out courageously in an attempt to Cloak and Dagger rally the people against the com- munist force, to emphasize that Diplomatic sources today said communism and Catholicism can- the communists may be using not be reconciled, to w a r n that American-labeled arms to make it. whom communism favors today it look as if the United States is sends to the noose tomorrow. plotting to overthrow the Guate- ? A man in his late 50s, reminiscent malan government. In appearance and manner of Pope They said there are reports Pius XII, this man administers the that some of -the guns recently affairs of his church from his ca- shipped from communist Poland thedral-size residence facing across to Red-tinged Guatemala bear Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 In the market nearby, then others in thousands from all over the city, swarmed about the Archbishop's residence, took up positions on the pavements, stood ready to oppose any government move to lay hands on his person. Hour after hour they gathered ? and refused to move. All night they remained. At the end police offi- cials announced there was no thought of expelling or harming the Archbishop. It was a lesson not lost on the officials at government palace. Today the Archbishop exhibited letters he had received in great num- ber from Guatemalans praising his anti-communist stand in the pastoral letter attacking communism. He disclosed that 460,000 copies have been reproduced to be passed from hand to hand and village to village to reach the campesinos, or farm laborers, even in remote moun- tain? areas where there are neither churches nor priests. "The people are good people," he said. "They have been misled by the communists. If we could have a counter-propaganda to the commu- nists in the fincas where they talk social justice, there would be no division in our country." The Archbishop condemns the communists for hiding under the cloak of social improvement for the needy classes, warns against the flood of communist literature and a burrowing into the educational sys- tem?thru communist control of teacher training?to convert Guate- malan youth. He proclaims against an illusory Soviet paradise which turns out to be a "concentration camp where, be- fore the force of tanks and can- nons, all are obliged to work ?for o Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 the state master." These are strong words in Guate- mala today., So tense has become the situa- tion since the arrival of a 2000-ton arms shipment from behind the Iron Curtain two weeks ago that nobody can guess when or whether an ex- plosive act might inflame this little piece of America. But all the opposition there is now still doesn't add up, on its face, to getting the communists out of power in the elections in 1955. /Ewen the Archbishop, the strong- est of all forces against the com- munists, knows the fight is a hard one. It needs much greater strength than it' has today. THE EVENING STAB, Washington, D. Q. * waremsnsx, MAT 26, 1965 Constantine Brown? N.Y. Intie MAY 2 7 1954 In The Nation A Communist Arms Depot in Central America? By ARTHUR KROCK WASHINGTON, May 26?Informa- tion coming here from Central Amer- ica through diplomatic channels is that Guatemala's neighbors to the south see a much greater potential of danger than an increase in Guate- mala's military power in the arms supply to that country from an Iron Curtain port. What is chiefly troll- Red Subs Near U. S.? U-Boats Believed to Belong to Russia Reported in Caribbean Waters Submarines suspected of be- longing to the U. S. S. R. are now prowling waters in the Western Hemisphere and par- ticularly in the Caribbean Sea. The number is estimated at be- tween four and six. In official language they are described as belonging to "a nation or na- tions other than allies or neu- trals," The presence of these sub- marines may be due to Mos- cow's desire to test them on long-range cruises, and it is in keeping with its policies to overlook notifying the inter- ested countries of such exer- cises. A less optimistic specula- tion is that they are in our back-yard for no such healthy purpose as training cruises. The highly tense interna- tional sitnation justifies the following two evaluations: (1) The U. S. S. R. has dispatched these 'vessels to our waters to be ready to perform a special mission, possibly against the Panama Canal; or (2) to help the Communist moves in Cen- tral America where the Soviet government is involved in fo- mates, military supplies amounting to nearly 7,000 tons have been sent to Guatemala frqm various ports in Europe. The latest cargo, some 2,000 tons, was carried by a Swedish freighter, It' was sent from the Polish port of Stettin and neither ?the Swedish captain nor the crew knew what the ship was carrying nor her ul- timate destination. On this long trip the skipper, who orig- inally was instructed to put in at Algiers, had to chane his course four times. Simultaneously with the Swedish freighter's sailing, a "pacemaker" put out of Libau in Latvia having all the ear- marks that she was carrying war Materials. The camou- flage was successful. When she 'put in at San Juan, Puerto Rico, she was searched but no war material was found. In the meantime the arms-carry- ing vessel made port at Puerto Barrios in Guatemala and be- gan unloading its freight. There is no official account yet as to what type of weapons the Swedish freighter was car- rying but the speculation is rnenting a general revolution, that the bulk of the material The latter evaluation appears consisted of rifles and ma- more logical at this moment. thine guns and'vast quantities. Guatemala has become a of ammunition, besides some Kremlin proving ground. It is dismantled planes. Two thou- no exaggeration to say that the sand tons might sound small Guatemalan government has to persons who remember the become Moscow's active torch tens of thousands of tons we bearer in the Western Hemi- have sent to Indo-China. But 4 bling these nations is the thought that, through secret jungle paths, the hard core of Communists in their countries could be supplied from the large shipment with machine guns for the purpose of effecting the internal Social disorder in non-Communist states that is a cardinal foreign pol- icy of the world Bolshevist move- ment, Such hidden arms, produced during a general strike or a hotly contested election in Honduras, El Salvador, Nicaragua, Costa Rica or Panama, could be effectively employed by the Communists toward the objective of civil war. And, while the private ad- vices reaching here arethat civil war could be subdued in any of these nit- tions by the power which local armed forces can provide, the effects would be to create new areas of bitterness and desolation and to distract the Americas in some degree from con- centration on world Bolshevist threats elsewhere. According to these advices, Guate- rifles in boxes represent only-, 50 tons the importance of this particular shipment cannot be denied. This cargo alone has the potential of arming most of the would-be Communist helpers throughout Central America. The explanation of the Guatenialan government that it needed these weapons for its own armed forces and that sovereign Guatemala can put- ,chase military equipment wherever it chooses is flimsy. The whole Guatemalan regu-_ lar army consists of no more than 1,600 men. The militia is about 5,000 strong. These forces already have necessary. equipment. The 2,000-ton shipment contains enough war material to arm every adult in Guatemala between the ages of 16 and 40. And that surely., is not the intention of the: Guatemalan government. In some military quarters in Washington there is a strong suspicion that Russia's in. terest in that small Central American republic is not due only to the desire to create an additional international prob- lem for us. They see an at- tempt to establish a "home" for Soviet planes. which, after performing eventual bombing missions in the United States from three major bases in the Arctic Ocean, would be able to ' continue southward and land in friendly Central Americanterritory. This would not be possible unless some or all tile Central American govern- ? ments became Soviet con- According to reliable sti- when we figure out that 10,000 trolled. Fe mala's neighbors to the south fully recognize that the arms shipment adds to the military advantage over them already possessed by that coun- try, and in this respect presents a sufficient cause for anxiety. Also it has been verified, to the satisfaction of these neighbors, that Guatemala has been assembling troops at the border of Honduras, where the politi- cal situation has a special appeal to the promoters of world bolshevism. But, since a border incident plainly. provoked by Guatemala would in- stantly bring into play the Pan- American collective security eompact, and-this fact is well known in Guate. mala City, a border incident does not figure importantly in Central Ameri- can speculations at this time. Costa Rica's Experience But the possible distribution through the jungles of clusters of machine guns to places known to Communists and simple to conceal from the au- thorities is high among the specula- tions. Without foreign armament .supply, and only with locally acquired weapons that included revolvers and machetes, Costa Ricans fought a civil war in 1948 in which a general strike, of typical Communist nature, was a prominent factor. This strike, im- .puted by its generators to,an Infringe- ment of political rights by the party in power, brought on skirmishes in which several were killed and .many injured. The fact that the arms shrp- ment for Guatemala from the Iron Curtain port arrived at a time when strikes exist and others are threat- ened in the neighboring areas has Approve or Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 t Approved For Release 2000/05/03 : CIA-RDP62-00865R0003002?002Anis MAY 27 1954 evoked vivid memories of the inci- dents of 1948, and visions of what their repetition would be,if Commu- nists were armed with machine guns. 1 The nations principally concerned I with Guatemala are, however, in a lquandary what to do about it, arid not the least uncertain as to the next collective move is the United States. The President of Costa Rica, as an- nouxced, is pondering a conference of the Foreign Ministers of the nations to the south of Guatemala ("the only direction," said one diplomat today, "in which arms leaving Guatemala will go"-). That conference conic], lead ?to the employment of the hemispheric? collective security measures on the initiative of other Latin-American re- ; publics. And the United Statea could not effectively take this initiative, at this juncture anyhow, for reasons very familiar to persons even sliihtly acquainted with the unifying effect in Latin America of a charge that the "Colossus of the North" is sub- verting the sovereignty of its member nations. A Criticism It was in grateful recognition of this historic fact that Foreikit Min- ister, 'repel? 0.1 Guatsimala ineesnPY countered inks eoverrit4eids# OriiiStiii, of tie arnal sRipment `fr'bin - dzeclio- NA, Times 4 thitt, after all, - Guetetiiiitii is mit -a ' Ay 27 1354 ? fov,av,s to Ais country by remarking "cblOriyil of the United States. On thel same basis the Administration is be Guatemala for Talks here i mentrig criticized ,by some, here and By SYDNEY GRUSON Senorwouldut on Toriello saily d his Govern- - , abroad, for, taking' the lead in that special to The New York Times? tion on negotiations with the p one exposure It It would have been a simple GUATEMALA, May 28?The company. The agrarian reform diplomatic maneuver by the United Guatemalan Government is pre- law, under which two-thirds of States, say these critics, to arrange pared to negotiate directly with the company's vast land holdings the United Fruit , Company to; have been expropriated, "is not a for the revelation to come from a , . , reach an amicable basis for the subject for negotiation or diScus- Latin-AnleFican country, aha that company's future operations in sion," he emphasized. ,wmild have spiked in advance , the this country. The Government's new ap- inevitable comment made by? Senor According to present plans, proach to the problem of rela- Toriello. . Foreign Minister Guillermo To tions with the United States has Be that as it may, and whether or riello will tell this to John? C. already been felt. Its influence not in the circumstances the comment Peurifoy, United States Ambas. has been exerted to end a strike will have the Usual effect, the initia- hsaodlgra'nwiot thherwdhisocmusshieorweanpeuontsitto of 4,000 workers in Bananera, the ed company plantations near the tive has now Passed to Guatemala'a States - Guatemalan relatiorts west coast, and in Puerto Bar- neighbors. What major part the early neat week. rios, the near-by port where the United State, openly or behind "If the fruit company is pr- company operates wharves and pared to discuss matters on a an office of the Tropical Radio scenes, will henceforth play in the basis of equity and to negotiate eTegraph Company, a subsidiary. developing hemispheric drama has not rather than demand acquiescence The strike is now in concilia- been decided. Or the decision, if it to terms laid down by the corn- tion and is expected to be settled has been made, does not appear to be pany, a settlement can easily be quickly. knoVirn to the other Pan-American !reached," Senor Toriello said in It has been conducted under nations. Today's annbuncement that an interview. he leadership of the Communist- United States bombers are going tell ominated General Confederation This new attitude toWard the ink company, whose treatmen lof Workers. But unlike every Nicaragua on a "goodwill' mission is 'by the Government' has been other labor dispute with the com- merely a maneuver reminiscent of the major 'bone of contention betwee pany in the last three years, it 1910 muscular diplomacy celebrated ithe United States and Guatemala has not been accompanied by the by Richard Harding Davis. 1 1 -ms 'from. the belief that a usual anti-United States, anti- Among some, diplomats here ash? Senor Toriello put it, "the. fruit company propaganda barrages. represent nations outside this hemi- strategy designed to increase popular - sphere there is a disposition to attrib- support for intervention in Southeast N.Y. ?Wee MAY 27 1954 LEFTISTS TO GET VOICE Permitted to Join Government in British Honduras Special to The New York Times. LONDONt May 26?Britain is going to give the Left-Wing Peo- ple's United party in British Hon- duras an opportunity to show good faith in participating in the colony's new government. Oliver Lyttelton, Colonial Sec- retary, announced in the House of Commons today that the party's leaders, who got a big ina.ndate from the colony's elec- torate last month, had promised Gov. Sir Alfred Savage that they would cooperate loyally. "They are prepared to take the oath of allegiance freely and without reservation," Mr. Lyttel- ton said. The party officially was found to have accepted financial aid from Communist-dominated Guatemala, but nonetheless Hon- duran voters gave it eight out of nine Legislative Assembly seats. GUATEMALAN RED IS OUT I" Party Leader 1$ Temporarily.i Retired Because of Illness Special to The New York Timm GUATEMALA, May 28?The temporary retirement of Jos? Manue Fortuny as Secretary Gen- eral of The Guatemalan Labor [Communist] party was an- nounced today by the party's cen- tral committee. Senor Fortuny was said to be ill. Bernardo Al- varado Monzon, secretary of the Central Committee, was named to replace him temporarily. The party announcement said Senor Monzon had reported at the meeting of the Central Committee on Senor Fortuny's health and measures taken to arrange medi- cal treatment and holiday for him. The announcement did not state the nature of Senor For- tun's illness. It was learned that he had been suffering from severe sinus trouble and probably would leave Guatemala for medical treatment In Europe. Senor Fortuny has been leader of the party since it was founded. He iti credited with being the architect of the strategy that has won the Communists so much in- fluence in Guatemala. company's problems are the main thing between the two countries." This is a mistaken belief, ac- cording to United States officials, who are primarily concerned over the rise of Communist influence lute the activity of the United States Asia. But Guatemala's neighbors I with reepectAp rOgrtl 414FIRilt?astelleGt910Virffi 611/014EFP(S2460865R000300200002-7 MAY 27 1354 Guatemala Air Travel Curbed By Wireless to the Herald 'Tribune Copyrisht, 1554, N. Y. Herald Tribune Inc. SAN SALVADOR, Republic of El Salvador, May 26.?A pilot for TACA International Airlines re- ported this morning that the Guatemalan authorities have forbidden flights by private or commercial planes over any part of the railroad linking Puerto Barrios and Guatemala City. Puerto Barrios is on Guatemala's Caribbean coast. The pilot said the order was issued, this morning without ex- planation. It forces commercial planes through Central America to and from Guatemala to make detours. The railroad has been trans- porting to Guatemala City mili- tary supplies received recently from behind the Iron Curtain. TACA pilots say the restrica tion probably stems from a re- cent unsuccessful ground attack on a train transporting arms. The Guatemalan Air Force ob- viously would - be concerned about possible aerial bombing by anti-ComMunists. 19 Approved For ReitIlLse 2000/05/03 : CIA-RDP62-00865R0A000200002-7 N.Y. Thus MAY 28 1954 Guatemala Proposes 'Pact With Honduras IBy SYDNEY GRUSON special to The New York Times. GUATEMALA, May 27?Guate- mala proposed to neighboring Honduras today that they im- mediately sign a pact Of friend- ship and nonaggression. The proposal apparently was aimed at countering increased fear in the hemisphere that Guatemala's recent purchase of about 2,000 tons of arms from Czechoslovakia had created a Communist menace to the safety of the Americas, and particularly the safety of Guatemala's neigh- bors. Indications were that the Guate- malan Government, for the first time since the present crisis de- veloped with arrival of the arms May 15, was seriously concerned that what it had always consid- ered a war of nerves against it, might turn into a shooting war. Foreign Minister Guillermo, Tollejio sidestepped normal diploi matic procedures to ,propose the paet, At 3:30 o'clock this morn- ing, about nine hours after an unidentified C-47 plane had show- ered the city of Guatemala with anti-Government leaflets, he sent aotelegram to Dr. Edgardo Valen- zuela, Honduran Foreign Minister. Sehor Toriello and his Govern- ment considered the plane inci- dent a "provocation of the Ut- most gravity." In an umnistaka- ble warning, he said Guatemala would be justified in taking mili- tary measures against another similar attempt. "If they could drop paper leaf- lets one day, they could dyop other things, too," he observed. The leaflets carted on the peo- ple to join with Col. Carlos Cas- tillo Armas, who is in exile in Elonduras, in the struggle against communism in Guatemala. A long-time foe of the present regime, Colonel .Castillo was ar- rested Nov. 5, 1950, after an at- tempt to seize a military base near the capital's airport. He tunneled his way out of prison a year later and rallied a large group of Guatemalan exiles around him in Honduras. The colonel has become the focal point of the Government's opposition abroad. Officials here I make no secret of their tear that Ihe will be used to foment border Approved For !incidents and possibly a full- !scale armed conflict that may !bring about organized armed in- tervention. ? Selior Toriello said the Gov- ernment did not know where the plane had come from. It was flown with great skill and by someone who knew the capital well.. Because of a day- long rain there was virtually no visibility yesterday when the plane arrived and dropped its cargo over the center of the city. A Pan American Airways Con- stellation had just taken offl after a four-hour weather delay when the C-47 broke through the low clouds. Senor Toriello, whose wife and daughter were among the United States-bound passen- gers on the Pan American flight, said the Constellation had been briefly endangered. As a result, the Government barred private flights over parts, of the capital and also closed the northeastern half of the country to private *nes. Senor Toriello reiterated to the Honduran Foreign Minister his position that the arms had been purchased solely for normal se, curity -needs. They would nevet be used with aggressive inten- tions or to menace Guatemala's brother republics, he asserted. The State, Department had called the? purchase a "develop- ment of gravity," having said that the amount bought was far in excess of Guatemala's normal needs. Accordint to Senor To- riello, this statement was par of a tendentious propaganda campaign to destroy good rela- tions between Honduras and Guatemala. He added that Washington's in-, timation that Guatemala had pro- voked the present wave of strikes' in northern Honduras not only: was false, but was an insult to'? the Honduran people because it implied that they were being led from abroad. Further, Senor Toriello said Guatemala was being made the victim of a rising campaign aimed at intervention in her in- ternal affairs. He declared his country was beset by the menace of an armed invasion.. A' :nonaggression pact would strbngly reinforce peace and friendship between both coun- tries, he urged, and would elimi- nate all anxieties in their rela- tions. U. S. Bombers Visit Nicaragua MANAGUA, Nicaragua, May 27 (UN?Three United States B-36 bombers arrived today on a "goodwill" flight. The visit coincided with this country's Army Day. Celebration and the birthday of Senora Sal- vadorita de Somoza, the First Release 2000/05/03 : CIA- Timm MAY 2 8 1954 CONGRESSMAN EXPELLED Arenas, Who Fled Guatemala, Is Accused of Subversion GUATEMALA, May 27? Con- gress decreed the expulsion of Jose Luis Arenas, Opposition member. Sefior Arenas is charged With subversive activities and with having failed to attend three consecutive Congressional set- sions without excuse. Senor Arenas, a prominent agriculturist and anti-Commu- nist, was elected to Congress by anti-Communist groups two years ago. In March, following a Government announcement that an ,Opposition Congressman was implicated in a plot to overthrow the regime, he took refuge in the Salvadorean Embassy. Later he left the country. He is now in Mexico. ? Only three Opposition members remain in Congress. N. Y. MIRROR MAY 28 1954 Honduras Strikers Toss ut Guatemala Red Agent By VICTOR RIMEL There is an impulse for decency and freedom in the / "little people" before which we of the Western world should bow in homage. This loathing of shackles on the mind and the foot has just won for us a great military and propaganda battle on the Guatemala-Honduras front. pie of these steaming jungles hia hands, at a moment when Wtih their fists, the good peolorganize a got help. Into union,. and banana towns have beaten tri t6 fpr'ainedCom risntatiagonenalts lower; back the heav- S fly financed, heavily armed, scientifi ca I ly trained Comin- tern cadres which almost tore another Central Ameri- can nation from our side. It was dorre under the lead- ership of a man the world does not yet know. His Manuel Valn- cia. :There is always one such man in each beleagured nation. If we help him, he beats back the Communist machine. If not ?Czechoslovakia! ? ? * LAST WEEKEND, Manuel Va- lencia, leader of the Honduran Ub- e/021668385*o CM1521$160 , into a Soviet revolution, were placed some documents. Carrying these papers, Manuel Valencia disdained the trigger- happy killer squads assigned by the Comintern's muscle. department to the Communist strike-leading cadres. 'Valencia rushed to a strikers' mass- meeting in El Progresso. There he faced the Soviet agent who had skillfully sealpeled him right out of the leadership of the strike committee last month. The man who Valencia chal- lenged is Thomas Cardona, a Communist agent sent in from Guatemala. With money, muscle and the characteristic behind-the- scenes organizing tactics of Com- munist cells everywhere, Cordona had driven Valencia and the hon- est strike leaders from power and personally took over the leadership. 7 ? ? ? BUT NOW CARDONA was c ot 0 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 law Nor finished. Valencia had the docu- ments to prove to the roaring crowd that Cardona was a Soviet agept. The "little people" followed their instincts, and struck back agetnst the Agent, of, international communism who wanted to ex- ploit their drive for more bread and butter and less hours of toil. They manhandled Cardona. They found on him papers and credentials linking him with the Guatemalan Communists. They restored their own people and Manuel Valencia to leader- ship. They sent a committee to Mexico City headquarters of the anti-Communist, pro U. S. ORT, which works with the interna- tional sections of the AFL and CIO. The anti-Communist Hon- duran strike committee delega- tion asked the ORIT for technical help in building a union and for guidance In fighting the Commu- nist invasion from Guatemala. ? ? ? THEY WILL GET some help from the GRIT, which is a Pan- American federation of anti-Com- munist unions. But they need more than such help. Their gov- ernment must reform itself. Hon- duras Is the only modern govern- ment which literally has no labor code or laws. Men can be worked 24 hours a day, seven days a week, 82 weeks a year without violating any law. The Honduran strike, which almost toppled the government, was originally an economic move IM by Manuel Valencia. There had been AV wage In- ...44VIIIIPARAOBLYM-ree,?TIT-ett pie were restless,. muer discontented. Valencia got the strike rolling and Cardona'S muscle men took over and turned it into a revolutionary move, aided by a native Corn- munist whip called Coto. The Communists had hoped that Honduran President Dr. Juan Manuel Galvez would declare martial law?and that armed groups would then cross the bor- der from Guatemala disguised as Honduran peasants and laborers. Those armed groups would win as they have in China and Indo- China. * BUT PRESIDENT Galvez out- maneuvered the Comintern. lie appointed a three-man commis- sion to negotiate with the strike committee. So long .as the Com- munists controlled that workers' group, there was no hope for a ? settlement. And each day the strike lasted gave the Communist operatives more time to inteneify, their violence. But Manuel Valencia got his ? documents from some intel- ligence sour c e?and rewon leadership. The strike is ?veil for all intents and purpose& ? Honduras VANtilysicrl.ntEgleaSe Guatemala, go buf*TY Arabi. Wash. Evening Star MAY 2 8 1954 Recognizing a Threat It is clear that Communist activity in dull- temala is a threat to the security of the Amer- icas which is causing serious concern in our State Department. Certainly it is right that this concern should be felt, for an out-and-out satellite Communist state in Central America would be in position to spread evil in all directions on the north and south continents. And while Guatemala for a long time has been less than a good neighbor and plainly has shown thesimprint of Commu- nist influence, the brazen buying of armaments from behind the Iron Curtain has served to emphasize the threatening demeanor of that government today. As Secretary Dulles told his news conference, the military strength of Gua- temala already is several times that of its neighboring Central American states?and there have been no threats to its security that require a further build-up of arms. Indeed, the real question now is whether Guatemala's security and its independence are not being taken from It by the conspiratorial workings of Communist Imperialism. Mr. Dulles was wise in noting that the Gua- temalan people as a whole are not Communists, but that control is being exercised in the famil- iar Communist manner through a small and dil- igent minority. Quite logically, the smaller Latin American states are quick to react against what may seem like meddling by thefl United States and it had been reported in the past few days that many non-Comm'unist and pro-Amer- ican Guatemalans had been disturbed by the impression that Washington was applying a blanket condemnation to their country. Mr. Dulles has made clear that this is not so, but he has made equally clear that further movement toward a Communist "capture" of Guatemala?or any other American state?will lead to quick and decisive counteraction, as pro- vided by the Caracas resolution to which all but Guatemala are signatories. It has been adequately demonstrated in the past that there is solidity in the inter-American relationship and there is no doubt that a strong front would be mustered in any step necessary to protect other parts of the hemisphere from Red aggression. It is greatly to be hoped, however, that the tensions which have arisen between Guatemala and its neighbors can be eased by peaceful means. 2000/05/03 : CIA-RDP62-00865R000300200002-7 .2l Approved For Realise 2000/05/03 : CIA-RDP62-00865R0"300200002-7 lwabillibtoir WILY Palnat'llAt A Name hi Remember in Guatemala Exiled Col. Armas Leads the Anti-Reds By CHARLES LUCEY -ScriPPs-}loward Staff Writer GUATEMALA CITY, May 28?Paste the name of Col. Carlos Castillo Armas in your hat against the day when they may start rolling the tanks into the public squares down this way in the fight against Latin American communism. He is the exiled former headT with what strength, is an unan- Observers say the government is of this country's Millitary Poly- swered question here. But his worried by this possibility and that technic Institute ? the Guate- name constantly is before the na- 'its proposal to Honduras is to en- I n alan West Point?and a figure bon. able itto say to the rest of the Western of acknowledged brains and dar- Castillo Armas was a member of , rn Hemisphere: We don't the 1934 Polytechnic Institute grad- want war ? we want peace ? this mg. lie stands today as an im-- uating class, as was Arbenz an proves it portant rallying poimt of oppon- army officer and defense minister ! ents of the pro-communist gov- before becoming president. ernment here. LOST OUT Castillo Armas is about 40, a Colonel Armas participated in the handsome man of education and 1944 revolution which overthrew culture who led an abortive at- the old dictatorship and later tempt to gain control of the Guate- showed a personal leadership that rnalan army in 1950 and later made won him a following within the a spectacular escape from the coun- army. But there were differences try's strongest jail by burrowing and Castillo Armas lost his place ti n . nder its walls. i 1950. MOST FEARED He stayed in civilian life for some months, then led a mere hand- 'lucre is little question that he is fill of soldiers in an attack on La the man most feared today by Aurora, the country's chief military 1-resident Jacob? Arbenz and For- cign Minister Guillermo Toriello. headquarters. It failed because, his supporters say, men inside the A couple of nights ago this capi- army reneged on a promise to de- tat was surprised by a"mystery liver the barracks over to him. plane flying over the city to drop The Armas force was wiped out; thousands of pro-Armas, anti-corn- by machine guns. He was wounded munist leaflets. Observers say the seriously. First he went to the occurrence has given the govern- hospital, then prison. plant real worry?perhaps even a One day in 1951 the country woke I bad case of the jitters. uo to find Colonel Armas I But concern over what Castillo - Armas may do long antedates this carted jail and had been given asylum in the- Ecuadorean Em- occurrence. bassy. He next went into exile in I ? He frequently is attacked by the povernment. A few days ago Honduras. the foreign minister charged that The stir raised in this capital by the leaflet-dropping was plainly Armas was being financed by the United Fruit Co., which is in con- apparent today. Everyone talked filet with the government over of it. Toriello said the act violated ast land grabs made under an Coatemalan territory and the gov- v agrarian reform. program. ernment would have been justified in Colonel Armas has ga4ned the shooting the plane down. support of many who oppose the I The government, showing deep concern present pro-communist regime but over the diplomatic-military) screw-tightening who want no return to the dictator- of recent davR ships of other years?who want a proposed yesterday to Honduras government that will carry on so- the signing of a mutual non-aggres- cial and economic reforms king sion pact. This was seen as an at- cverdue but without Moscow ties. tempt to counteract possible action Today Colonel Armas bides his I against the pro-communist govern- time in adjoining Honduras, where I ment here by the Organization of he has been since his prison escape I American States under the Caracas stirred the whole country. When anti-communist resolution. an whether .hemove, Approvea ror rtelease 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 'MEV May 21, ififtU %Ai s , Woe I d ge FROM THE THE CAPITALS OF THE WORLD GUATEMALA CITY....WASHINGTON....PARIS....BONN GENEVA.... >> While Washington worries about Indo-China, 10,000 miles away A U.S. neighbor, Guatemala, two hours distant from the Panama Canal by fast bomber, is acquiring many of the earmarks of a Soviet outpost. The earmarks, as they have been identified thus far, are these: Arms are reaching Guatemala from behind the Iron Curtain. A general strike spreading throughout neighboring Honduras was apparently touched off and encouraged by Guatemalans, including consular officials. An assassination attempt on the life of Nicaragua's President, widely known as anti-Communist, is being blamed on a plot hatched in Guatemala. An election in British Honduras, another Guatemalan neighbor, has shown a surprisingly strong leftist trend. Guatemalans had a hand in this, too. Guatemalans, in short, appear unusually busy outside their borders doing missionary work of the kind that Moscow wants done in the U.S, back yard. ?) In Guatemala itself, when you look into that situation The Government, though not Communist at the top, follows Moscow's line. Guatemala's "FBI" is in the hands of Communists. Press and radio, under Government control, are run by Communists. Labor unions are controlled by known Communists. Reforms pushed by the Government are those publicly urged by Communists. U.S. firms, U.S. capital get kicked around, sometimes expropriated. U.S. policies are bitterly opposed by Guatemala at home and abroad. }, In addition: Guatemalans regularly attend Communist meetings in Peiping and East Europe. Two leaders of Guatemala's Communist Party recently visited Moscow. This visit preceded the current outbreak of trouble in Central America. Guatemala may not actually be a Soviet outpost. But it acts like one. ), U.S. officials, disturbed about Guatemala, are on this spot: U.S. intervention to drive the Communists out of Guatemala is prohibited inter-American treaties and by long-standing U.S. policy. Anything that even looks like U.S. intervention arouses the ire of all Latin-American nations. A Soviet outpost, on the other hand, can hardly be permitted by the U.S. develop in its own back yard, and close to the Panama Canal. Only alternative, if the U.S. is not to intervene, is for Latin Americans take the lead in putting pressure on Guatemala's Government. This pressure is now beginning. Nicaragua has broken off relations with Guatemala. Honduras recently kicked out two Guatemalan consular officials. Next stan agte_e_reent_bv_a_matority of Western Hemisphere governments Appruved ror Kelease 2000/05/03 CIA-RDP62-00865R000300200002-7 by to .2 .3 Approved For Reese 2000/05/03 : CIA-RDP62-00865R021/11200200002-7 WORLDGRAM--(Continued) that Guatemala is in fact a threat to Hemisphere peace and security. Sanptions, including an economic squeeze, might then go into effect. First though, Latin Americans have to come around to the U.S. view that Guatemala, as a budding Soviet outpost, deserves attention and action fast. APost tuisk. aday, May 29, 1954 Spanish Exiles Are Blamed I For Guatemala Wash. Evening Star MAY 29 1954 1 's Red Shift Top Guatemala Red 9 Ousted as Party Split BALTIMORE, May 28 UPI.? won control of the government,' The Evening Sun today said it and have the support of Presi- is the informed opinion in dent Jacobo Arbenz Guzman, Rumors Boost Jitters Washington "exiled Spaniards theEvening Sun said. are behind the transformation Arbenz, it explained, rules of Guatemala into a Commu- through the National Demo- nist state." cratic front, a coalition of four William Manchester reported parties, and "of 11 members on in a Washington dispatch that the executive committee five exiles fleeing Spain a f t e r ' are Communists and the others Franco's victory in 1939 are are fellow-travelers." believed to have concentrated in Guatemala since 1944. Secret Radio Continues Undet their prodding, he Attacks in Guatemala wrote, intellectuals of the half- caste Ladino class in Guate- GUATEMALA, May28 UM? mala infiltrated civil service and labor unions so success- A secret radio urging andGuate- fully, they now dominate the malans to fight communism government, and attacking the government continued its broadcasts today Leaders of the expatriate despite reports officials had Spaniards in GUatemala City*, smashed it. Manchester reported, are un- Guatemala issued two emer- derstood to include Roberto gency regulations today as a Basco Alava, Carlos Sennaro result of the crisis Pith the Linares and Rafel de Blum. United States. They require "With the reported arrival of that: an arms shipment in Guate- All private planes in effect mala this month, Waahington be grounded under an order has become sharply aware of banning cross-country flights. a grave threat to peace in this Any messages in code or in hemisphere a language other than Spanish "Behind that threat lies an must be accompanied by a international drama which has Spanish translation filed at the been unfolding in America's cable office. This meant all back yard for 10 years. Al- press messages in English must though the stage managers have a Spanish translation. were imported from abroad, Outside of this development. the performers are half-Span- .the capital settled down to nor- ish, half-Indian Ladinos." The "curtain raiser" in. the drama, the story said, was the overthrow of Gen. Jorge Ubico's dictatorship in Guate- mala in 1944. The Evening Sun did not traced developments in Guate- mala since 1944 and said two underground Communist parties in Guatemala cme out in the open in 1950. With the two groups amalga- mated and un er ComlnSopn domination, C Och Defense Chief Delays Visit to U. S. as Cable ? Censorship Is Invoked By the Associated Press GUATEMALA, May 29.?Com- munist Party headquarters an- nounced today Jose Manuel For- tuny has been dropped as secre- tary general of the party. It said Mr. Fortuny, a close advisor to President Jacobo Arbenz, had been relieved because of ill health. But there was immediate spec- ulation that he had been ousted because of a split inside the party. There also were rumors that Mr. Arbenz forced the party to take the action to remove the stigma of communism from the government. Mr. Fortuny, as secretary gen- ciuden: The Swedish freighter Alf- helm, said by the U. S. State Department to have delivered Communist-made arms to Gua- temala, was anchored at Key West, Fla., while U. S. officials questioned the captain and crew. The French Line freighter mal after a jittery 24-hour pe- Wyoming awaited reloading of nod in which a plane rained its cargo before resuming its anti-Red leaflets over the city, passage through the Panama Airline service was resumed. Canal. The ship had been halt- Stores reopened and foreigners ed at the Atlantic mouth of sent their children back to the canal while U. S. authori- school. The top story in newspapers here was one from Washing- ton saying the United States was thinking of recalling its air and military missions to Guatemala. Other deve Rees . . . I, ties searched for possible con- traband arms destined for Guatemala and El Salvador. No contraband was found. Assigned to Guatemala were a box of .22-caliber target rifles, . two boxes of 16-gauge 'shotuns 1,1 mIDtv2i-oossrageaoasesi10 eral, was rated as top man in the nation's Communist Party.. He was also a member of the important National Democratic Front, which some observers be- lieve helps shape government policy. His removal as party leader automatically removes him from the Democratic Front, Heated Meeting Reported. The independent newspaper La Hora said Mr. Fortuny had been ousted after a heated party meeting. Another announcement today said Defense Minister Jose Angel Sanchez has decided not to visit the United States as planned, until the situation eases. The move came as tension gripped the country in the wake of United States State Depart- ment accusations that Guate- mala has received arms from behind the Iron Curtain and re- ports from Washington that the United States was thinking of recalling its air and military missions to Guatemala. Emergency Rules Issued. Last night the government is- sued two emergency regulations as a result of its crisis with the United States. They require that: 1. All private planes be grounded under an order ban- ning cross-country flights. 2. Any dispatches written in code or in a language other than Spanish must be accompanied by a Spanish translation filed at the cable office. This means all press Messages in English must , have a Spanish translation at- tached for study by a govern- ment agent. Secret broadcasts urging Guatemalans to fight commu- nism and attacking the govern- ment continued last night. In Panama at Canal Zone of- fice announced last night that the French Line freighter Wyoming had been cleared for transit through the waterway after a search of its cargo re- vealed no contraband arms. 02-7 .2f Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 AMY' 14.I. totes SATURDAY, MAY 29, HONDURAS CHARGE REDS HELP STRIKE Infiltration, Especially From Guatemala, Described in Government Statement Special to The New York Thnes. TEGUCIGALPA, Honduras, May 28?The Foreign Office has charged that international com- munism has infiltrated the ranks of strikers on the north coast of Honduras. Foreign Minister Jos?duardo Valenzuela issued a statement last night citing six indications of intervention in Honduran strikes by Communists, particu- larly from Guatemala. About 27,000 workers of the United Fruit Company and other Industries, mostly controlled by United States interests, are on strike. At their peak the walk- outs affected more than 40,000 workers. An hour after Senor Valenztiela had issued his statement a note was received from Guatemala in- viting Honduras to join her in a friendship and nonaggression pact. The offer caught the Hon- duran dovernment by Surprise. Note Under Study ? The Foreign Minister said at a Special press conference this morning th4 the Government was studying the Guatemalan note. He declined to comment on his own reaction or to estimate when the note would be answered. He said he had conferred with President Juan Manuel Galvez about the note. -In his statement Sefior Valen- zuela cited what he termed a "manifest interest" in sabotaging the settlement of the Standard Fruit Company strike 'last week, in which a majority of the work- ers were ppreventedfrom return- ing to their jobs. He said the strikers' demands on the Government were unusual- ly blunt. .A.ccording to the an- nouncement, the strikers used "language of a subversive char- acter" and defied governmental authority. Furthermore, the "general com- portment and tactics of the strik- ers" indicated that instructions were Issued' ii the procedure used by international communism, the Minister declared. He also charged that "strikers of the communistic type" had tried to prolong the strike. Fi- nally, his statement quvtgol le ters to PresiROP DAMS! A@ It C.S. Monitor MAY 29 1954 Arms in Guatemala The Western Hemisphere faces a first-rate diplomatic problem in What to do about Communist infiltration in the government of Guatemala. The problem roughly divides itself into three parts. First, there is the question of how the United States shall continue to deal with a situation which presents no major threat but is nevertheless troublesome and potentially danger- ous. The affair continues to build up with discovery of a falsely listed cargo of machine guns. Second is the question of what action, if any, the Organization of American States should take about recent receipt of a shipment of 1,900 tons of arms from Soviet-controlled Czethoslovakia: This amounts to a 100-car trainload of guns and am- munition for a country the size of Louisiana, and makes Guatemala much the most heavily armed nation between Mexico and the Panama Canal. Third, there is the question whether Guatemalans themselves can yet awake to the perils in Com- munist influence in time to prevent their government from being used as an instrument to do serious damage to themselves as well as others. Guatemala is in the throes of a far-reaching land reform, such as other Latin-American .countries have needed from time to time. That pro- gram involved seizure, if not confis- cation, of lands of the United Fruit strikers from Vicente Lombardo Toledano, leader of a Mexican pro-Communist faction. The Foreign Minister's charge Is expected to have a strong ef- fect on the course of the strike. Thousands of strikers had been told repeatedly by their leaders, some of whom undoubtedly be- lieved it, that there was no for- eign influence or ideologoy af- ecting the stoppage. ? Indications were that the Gov- tniment was preparing to take a hilly active interest in the strike. Until recently, it had remained ? distant from th,e north coast sit- ing3U000/05/03 : CIA-RDP62-00865R0 Company, and Guatemalans have attributed North American "inter- ventionism" to mere concern over a company investment. Much more is involved than that. Spanish Republicans accepted Com- munist help in the civil war of the 1930's, and found it a dagger at their backs. Czechoslovakia began by electing 114 Communists in its 300- member Assembly, and ended two years later as an iron-ringed police state under Russian orders. Such are the dangers of inviting Communist imperialism. Latin Americans?in Brazil, Peri., and elsewhere -- have had their brushes with communism. But they tend to be less disturbed about it than North Americans. There may be some virtue in this, but it is also something of an uncalculated. risk. To dissuade Latins from taking so casual an attitude about a vast and sihister international intrigue some- thing more than scare talk is re- quired. Alarms such as Secretary of State Dulles has sounded are to a degree necessary. But some other actions also would give North Ameri- can appeals more impact. One of these would be a greater concern over suppression of human liberties when those come from re- actionary juntas and dictatorships in Latin America. Another would be helpful consultation in working out social problems such as communism exploits. Another?and the Latin- countries themselves have a good deal to do with this?is the encour- agement of capital investment from the United States. More can be done than at present in technical assistance, economic aid, and acceptance of imports to help South and Central American coun- tries improve the lot of their people. But while every effort is made to lift the stigma of dollar diplomacy, a cer- tain amount of perceptiveness also is needed on the part of Latin Ameri- cans to re o,_ni,ze when their safety Q4' P' new kind of Eastern Hemisphere ambitions. .15 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 fiash Evening Star MAY 30 1954 Guatemalan Arms Reported Shunted to Honduras Frontier By the Associeted Press An authoritative source said yesterday Guatemala has shunted part of a $10 million shipment of Communist arms to a railroad siding near the frontier of Honduras. Diplomatic circles wondered whether the reported move was part of a war of nerves?or !something more sinister. Guate- mala offered two days ago to 'sign a non-aggression pact with Honduras. Nicaragua appealed meanwhile for nations of the Americas to act promptly to end "subversive movements of international com- munism" in this hemisphere. Guillermo Sevilla Sacasa, Nic- aragua's Ambassador to Wash- ington, said he was "very opti- mistic something will be done." Wash EyefllDg Star MAY 30 1954 Guatemala U. S. Moves to Block Communist Threat In Central, Americo The United ,States moved last week to counter the Com- munist threat, to Central America. America extended both the gloved hand of diplomacy and the mailed fist of military power in its attempt to handle the Guatemala crisis. The trouble in Guatemala has been developing for many months. Local Yted leaders, in regular contact with Russia and using standard made-in- Moscow techniques, gained gradual control over the Guatemalan government and sent agitators into neighbor- countries. The crisis came In a statement he said "the alarming situation in Central America demands the most seri- ous attention of the continent to put an end to subversive move- ments of international conamu- nisra and its agents.' The mutual defense pact of Rio de Janeiro and the anti- Communist declaration of the American nations signed at Caracas, Venezuela, last March "face the test of fire," the am- bassador said. - Guillermo Toriello. The talks were secret, but Mr. Toriello told newsmen, surpris- ingly, that all the problems seemed to be working them- selves out and that there was no reason for concern. No Meeting of Minds After further elaboration, however, it seemed likely that the Foreign Minister was talk- ing only about the quarrel be- tween Guatemala and the American-owned United Fruit Co., all pretty much beside the point in the present contro- versy. Obviously there was no meeting of minds on the Corn- ,Air r*e planes under terms inunist issue. ' of indtual defense treaties. Later in the week, Secre- There were reports that more tary of State Dulles outlined arms were coming by sea. And . the problem in a press confer- three huge B-36 bombers were ence. He said he feared that sent to Nicaragua for a "good one reason for the "massive will" ?visit?a demonstration shipment of arms from behind to the Guatemalans that the the Iron Curtain" was to build United States was willing to a strong Communist base near help Central American nations the Panama Canal. He pointed cOntain Guatemala. out that the new weapons were There was one strong indi- enough to permit Guatemala cation that the pressure was to dominate all her lightly being felt in Guatemala. Thai armed neighbors. country asked Honduras to A Honduras radio station sign a pact of friendship and reported that several Soviet nonaggression. It apparently technicians landed by Russian was the hope of the govern- submarine at Guatemala at the ment that this gesture would same time the freighter was take the heat off. unloading arms. The Station And the Communist Party ?f. Times MAY 30 1954 HONDURAS WEIGHS 'WIDE AMITY PLAN Considers Asking Guatemala to Extend Offer of Pact to All Her Neighbors ? By PAUL P. KENNEDY Special to The New York Times. TEGUCIGALPA, Honduras, May 29?The Honduran Govern- ment is preparing to ask Guate- mala to extend her offer of a nonaggression and friendship pact to all the Central American republics, This would be a counter-pro- posal to Guatemala's offer to Honduras Thursday of a bilat- eral agreement to put an'end to international tension, which has been rising steadily. Foreign Minister Jose Eduardo Valen- zuela has the counter-proposal under consideration. Honduras' proposal would meet with considerable difficul- ties even if Guatemala cared to to .?ead two weeks ago wherr also reported that five MIGs seemed to be having internal a ship from Communist Poland were included in the shipment problems. The Secretary Gen- brought some $10 million worth of arms. If these reports were eral of the party was removed of Czech-made anus to Gila- true, then the Panama Canal last week. temala. . was indeed menaced by Rus- Reports from other Cen- Last week the United States sian Communists. And there tral American capitals said studied means of invoking was little on the ground to stop Guatemala's neighbors were hemispheric treaties which pro- the Reds between Guatemala becoming more aware that the vide for sanctions against and the Canal'Zone itself. threat of communism was real, contrles threatening peace in In a move tArard restoring . not just another gringo cry of the area. At the same time, the balance of power, the "Wolf." It would take more the American Ambassador to United States last week sent than gestures from Guatemala Guatemala, John E. peurifoy, about $60,000 worth of arms to to remove the heat. called onForeign Minister , Nicaragua and Honduras in Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 , go along, which in itself is doubt- ful. For one thing, diplomatic relations are severed between Guatemala'. and Nicaragua and are strained between Guatemala and other Central American re- publics, notably El Salvador. However, the fact that Guate- mala suggested such a pact in the first place would indicate that even without ulterior mo- tives?of which there are at least some suspicions here?the at- mosphere throughout Central America is such that nonaggres- sion assurances are desirable, U not absolutely necessary. There is no indication when Honduras will 'reply formally to the Guatemalan note, which was received here shortly after the Honduran Foreign Office had issued an announcement charging that Guatemalan Communists had intervened in the strikes on the north coast of Honduras. Meanwhile, according to re- ports reaching here, tension in the strike-disturbed north coast area has been eased slightly. One of the minor industry strikes, that of the British-American Tobacco Company of San Pedro Sula, was settled yesterday and factory operations are reported to have been resumed today. The settlement came a few hours after the first meeting be- tween the United Fruit Company management and representatives of 25,000 striking employes. The negotiations began yesterday morning and continued into the early evening. Only a few preliminary mat- ters were disposed of at yester- day's meeting. The meeting to- day was repotted at noon to have accomplished considerably more. Among other concessions made by the strikers was permission for the United Fruit Company to open its commissaries to dispense food three days a week. Permis- sion also was granted to operate one train every ten days to sup- ply the commissaries. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 , SUNDAY, MAY 30, 1 mg from ; A within and without the country.,bands tried to blow up two trainloads of the new mili- tary equipment coming to the capital from Puerto Barrios. An unidentified airplane flew over the capital to drop leaflets urg- ing the people to prepare to fight the Communists. Walls only just cleaned were painted over again this week with large 32's, the anti-Government symbol repre- senting the constitutional article barring political parties with in- ternational ties. Leaflets were pushed under doors two nights this week telling the people to prepare lists of known Communists and Commu- nist sympathizers. Immediately after, the Government was over- thrown, the leaflets said, the peo- ple Were to take the lists to the new authorities, who would deal but "justice." The crisis has left the capital a city of little gaiety. The trickle of tourists who camp intermit- tently during the last few years has virtually stopped. Hotel lob- bies, restaurants and night clubs are empty, melancholy places. Th p business depression has worsened as people hoard their assets against an unknown fu- ture. For the public view, the Gov- ernment's mood was a combina- tion of conciliation and determi- nation. Gestures toward easing its long-standing dispute with the United Fruit Company mirrored the new conciliatory attitude. CoL. Eurique Parinello, Army Chief of, Staff, spoke in a radio address to, the nation of "our determination' to die if necessary in defense of: the country." The man who could do more than any other single person to settle the crisis rpmained silent. What President Arbenz Guzman thought of the latest develop- ments was his own secret. There was an unconfirmed report that army leaders had gone to the na- tional palace to discuss the situa- tion with him and express their concern at the way events were developing. But it was becoming clearer each day that the President is his own boss and that, although he may listen to advice, he makes up his own mind. Evidence at hand was that recent events had not caused him to change his mind about the internal political situation and that he was pre- pared to try to weather the crisis, as he has many others. NW.rHE--YORI TIMES GUMMI GRIM AS TENSION RISES People Look for a Climax to End Crisis?Rumors Add to Nervous Mood By SYDNEY GRUSON Special to The New York Times. GUATEMALA, May 29?This Is a tense, nervous city at the end of the second week of the crisis stirred up over the Gov- enunent's purchase of arms from Czechoslovakia. The climax of the crisis in the Immediate future is widely ex- pected. There is talk of a possi- bility of an economic boycott or of an armed invasion by Guate- malan exiles, or even of the pos- sibility of a landing of United States troops to sweep the Com- munists from political power. ? There are a decreasing few who say: "It's all talk. We have heard it all before. There will be more and more talk and like be- fore, nothing will happen." The nervousness is not con- fined to the ordinary people here. Tie Government's concern is apparent to observers familiar with the Guatemalan scene. Even more apparent are the jit- ters spreading among leaders of the non-Communist revolutionary parties. As a result of the crisis these leaders, for the first time, are talking guardedly of the dangers to the results a the 1944 revolu- tion from having allowed the Communists to gain wide powers. There are reports of serious strains within the National Dem- ocratic Front, the organization of the three non-Communist par- ties, the Communists and the country's two major labor con- federations. Communist Power Felt This is the country's most im- portant political body. President Jacobo Arbenz Guzman presides over its meetings. It is mainly responsible? for defining Govern- ment policy. As President Col. Arbenz Guzman holds a veto over its decisions, but it has been within the front that the Com- munists have been most persua- sive in having their views prevail. The nervousness and tension are compounded not only of talk, rumors, newspaper headlines and daily utterances of Government leaders abroad about Guatemala. The present crisis has been ac- companied by an intensification of the "cold war" that the Gov- ernment's oPpunents are conduct- Approved i-or N.Y. Times MAI 2i) 1S54 U. S. TAKES A NEW LOOK AT CENTRAL AMERICANS 'Guatemala Arms Shipment Awakens Diplomatic Interest in Affairs There By SYDNEY GRUSON Special to The New 'York 'Mies. GUATEMALA, May 29?For too long there was no planned United States policy, as the word is understood today, for Central America, Governments, mainly dictatorships, came and went and little was asked of them except generous treatment for, and pro- tection of, United States business interests. This has changed. The week's events showed by how much. World issues have hung in the balance at the Geneva Far East- ern conference. But newspaper headlines and a big share of the State Department's acknowledged worries have been concentrated on the six Central American re- publics stretching from Mexico to the Panama Canal. A policy for Central America is being hammered out at long last under pressure of what the United \ States considers to be a growing Communist menace in Guatemala, largest of the six re- publics. Purpose Befogged The nature of the political friction between" the United States and Guatemala has served the United States poorly. It has obscured the positive aims of Washington's policy and has pointed up what many Latins consider a negativism in stand- ing primarily for a halt to Com- munist advances in Latin Amer- ica. But to anyone willing to lopk only slightly deeper than the sur- face in Central America these days, it quickly becomes evident that Washington stands for something more than merely anticommunism. There are heartening examples of the positive side of United States policy?to improve the living standards, the social wel- fare and the educational level of elease 2000/05/03 : CIA-RDP62-00865R00030020000 the people of Central America. El Salvador provides what is perhaps the best example. Scores of United States technicians and many thousands of United States dollars have gone into various programs to give that country more power to help it industrial- ize, to combat disease, to open nursing centers and to start rural schools. Case of Costa .Rica Costa Rica provides another ? kind of example. There, Jose (Pepe) Figueres came to power in the election last year. There are two very distinct and oppo- site opinions about Colonel Fi- gueres. To a large group, he is an anticommunist Leftist whose ideas of social progress hold out the only hope of improving a sleepy sun-sodden, jungle-ridden Central American region. Another group, many of them North Americans who have been in Costa Rica at one time or an- other', consider him a woolly- thinking, would-be dictator, basic- ally more Communist - inclined than 'anyone on the Guatemalan scene. Critics of Washington pol- icies assumed that the State De- partment would fight Colonel Figueres and his reform program bitterly. It did not, and its at- titude helped considerably in achieving settlement of Costa Rica's dispute with the United Fruit Company. Guatemala Since \'44 For many people the tragedy of the Guatemalan situation is that, in their opinion, the present acute conflict came about be- cause of a lack of policy after Guatemala freed herself in 1944 from the oppressive dictatorship of Gen. Jorge Ubico. But Washington then was occu- pied with World War II, and -7 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 since then it has had problems regarded as of far greater magni- tude than this tiny Central American republic. The Commu- nists won their position of influ- ence here almost by default. Is there any means of chang- ing the situation here, short of changing the Government? Ap- parently not. There is a basic conflict between the United States and the Guatemalan Government on the causes of the dispute be- tween the two countries. Both sides badly want a settlement, but as of this moment the basis for one does not appear to be in sight. Conciliatory Moves Guatemalan officials believe that the Communist question is really secondary for the United States. They feel that the dis- pute centers on United States concern for the United Fruit Company, biggest single employ- er and biggest single economic unit in the country. Believing this, the Guatemalan Govern- ment this week made some con- ciliatory moves toward the com- pany. The Guatemalan Foreign Min- ister, Guillermo Toriello, even went so far as to express publicly his belief that the groundwork had been laid to eliminate the tension between the two coun- MAY 30 1954 Ni aragua ForRioPact Conference . Finds Guatemala Crisis 'Alarming' By James E. Warner WASHINGTON, May 29. ? Nicaragua declared today that the "alarming" situation in Cen- tral America with regard to Com- munist infiltration is "putting to the test" the Rio de Janeiro mutual defense treaty of 1947 and the Caracas anti-Commu- nist resolution of this spring. Dr. Guillermo Seville Sacasa, Nicaraguan Ambassador to the United States, in a formal state- ment and in an hour-long news conference, said he is confident that a meeting of all twenty-one Foreign Ministers of the Ameri- can republics will be called. ; Broke With Guatemala tries. But it Is the United States be- Nicaragua has broken diplo- lief that the campaign against'i inatic relations with Guatemala, the company is only one of the effects of the dispute, not its cause. The cause, as seen from the United States side, is the toleration and even open support accorded a conspiracy directed by the international Communist movement to establish a Commu- nist state at the United States' back door and close?about 750 air miles?to the Panama Canal. It is in the light of this reason- ing that Washington's concern over Guatemala's purchase of 2,000 tons of arms from Czecho- slovakia must be considered. Ar- rival of the arms two weeks ago established Guatemala as the strongest military power in Cen- tral America. Airlifting of if. S. arms to Honduras and Nicaragua this week did little to redress the imbalance. Communists in Power dation of his administration. The President _values their work. So long as they have the Presi- dent on their side the Commu- nists' position(' in Guatemala can- not be Seriously threatened. As in most Latin-American countries the political power in Guatemala resides in the Presidency. The arm' is always a possible check in Latin-American politics but there is no reason to doubt that the Guatemalatt army sides with Colonel Arbenz. This being the case, it is a good bet that the situation here will not change?at least not for a considerable time. Looking into the future, most observers here believe that there will be many more crises such as the one that arose with the arrival of the Czech arms. But they expect that The Guatemalan Government until the Gifatemalan people shows no inclination to strip themselves make up their own Communists of their positions of minds about the country's politi- influence. They have worked well cal future little can be done to and hard for measures, such as alter the path on which President land reform, that President Ja- Arbenz has (embarked. cobo Arbenz has made the foun- Approved For Release 2000/05/03 : CIA-RDP62-00865R00030020000277 whose Leftist . government re- ceived a shipment of 1,900 tons aisnalrom Soviet Poland, and has received an emergency air shipment of arms from the United States to bolster its de- fenses. Dr. Sevilla Sacasa's proposal Is broader than that of Dr. An- tonio A. Facto, Ambassador of Costa Rica, whose government now is conducting conversations which may lead \ to a meeting of the Foreign Ministers of Odeca the organization of Foreign Min- isters of the Central American republics excluding Guatemala, which withdrew from the group two years ago. Sen. Allen J. Ellender, D., La., meanwhile said in a radio broad- cast that there is "little doubt that Guatemala has become the hub of a widespread ComMuilist network which covers South America." He said that "while. we have preoccupied ourselves with the problems of Europe and Asia we have neglected our good neighbors to the south" and may have "Invited" the Communist evil which thus far has been kept outof this hemisphere. Nicaragua invited, and her populace received with cheers, a non-stop good-will flight of three United States Air Force intercontinental B-36 bombers from Fort Worth on Thursday. Envoy's Statement Dr, Seville Sacasa said today: "My governMent believes that by having a meeting of the consultative organ (Foreign Ministers of all American republics) there will be not only an opportunity to analyze the danger to American security which arises from the unload- ing in Guatemala of a large quantity of armaments from Poland, but also those other grave events which have a close relationship to the general plan of Communist infiltration, such as the discovery of a plot in NiCaragUa to assassinate Presi- dent Somoza and his sons, planned by agents of interna- tional communism and mem- bers of the Caribbean Legion who reached Managua from Costa Rica, and the discovery on the Pacific coast of Nicaragua of Soviet arms which presumably were unloaded by a submarine which was sighted in Nicaraguan coastal waters early in May." The Nicaraguan government obtained photographs of the aubmarine, which have been) forwarded to Washington for. Naval Intelligence study, but this government has refused an 'comment thus far on the inci- dent or the photographs. President Eisenhower and Secretary of State John Foster Dulles have expressed grave con- cern over the Central American situation, which Dr. Sevilla Sacasa today called "critical," adding: ? "The alarming situatiori in Central America demands the most serieus attention of the entire continent to put an end, to the subversive movements of international communism and its agents. Without doubt, I be- have the Pact of Petropolis and the anti-Communist declaration of Caracas are being put to the test." 1947 Rio Treaty (His reference to the Pact of, Petropolis was to the 1947 Rio de Janeire treaty of mutual de- fense for the hemisphere, which was signed at the Quitandhina Hotel in Petropolis, ancient sum- mer capital of Brazil. The Cara- cas resolution of this spring has been called the "Dulles doc- trine," by Dr. Facio: proposed by the United States, it was op- posed only by Guatemala.) Old diplomatic papers released today by the State Department showed that Nicaragua and El Salvador recognized the danger of Communist infiltration in Central America as far back as 1936, and advised this govern- ment of their fears, but nothing was done about it. Nicaragua proposed forma- tion of a Central American al- liance against Communists at that time, the papers showed but the United States Depart- ment of State, while declining to take a formal position on the confidential memoranda for- warded to it by both Nicaragua and El SalVador, cautioned Nicaragua to consider the grave nature of the step it was propos- ing, and nothing was done. .2 t Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Nor Wash. Daily Onys* NAY 31 1954 Ifs Time to Face the Facts Guatemalan Government Is Incontrovertibly Red By EDWARD TOMLINSON , There has been a dangerous tendency in this country to blame labor union bosses and other Moscow agents for all the communistic activities in Guatemala, and to absolve President Jacobo Arbenz ?and his administration from any direct association with the movement. The Guatemalan army is also generally credited with being free of any ac- tual Red affiliations. groups to travel back and forth be- Guatemalan ambassador in Panama Yet, e v e r y bit of evidence hind the iron curtain. It has opened openly connived with local extrem- points to the fact that the Gua- the country's doors to and received ists and known Reds as President- with open arms all the Russian elect Remon, a militant anti-commu- sympathizers and known Reds from nist, made it known he would not net are 'willing servants of the neighboring countries?Vicenti Loin- tolerate any foreign diplomat who Kremlin and that the Imilitary bardo Toledano of Mexico, Pablo consorted with these elements. backs them to the hilt. . Neruda of Chile and numerous The ambassador did not wait for others. It plays host to communist Sr. Remon's inaugaration, but left President Arbenz was and is the sponsored International Peace Meet- the Isthmian capitol well in advance head of the army. Yet neither he, ings and other conferences. Of the event. the cabinet nor the army has given the slightest indication that President Arbenz and his gov- NEIGHBORS COMPLAIN ernment denounce as subversive t h e y disapprove every anti-communist comment The El Salvador and Nicaragua of any of the corn- g o v e r n m e n t s have frequently and criticism and even the warn- munistic activities ing of the church against the Red charged Guatemalan Reds with in- ? They have, menace. terferring with their internal al- in their ,country. The Archbishop of Guatemala in fairs. without exception, openly aided and his recent pastoral letter warning Nicaragua has finally broken dip- against Russian communists was at lomatic relations with the Arbenz abetted every pains not to criticize the president government. There is convincing communistic move P ersonally, or any official of the evidence in Washington that Guate- a n d demonstra- P have government. But the government malans were involved in the recent tion. They plot, originating in Costa Rica to ruthlessly put press, radio and government politi- cal party leaders all denounced the assassinate President Anastasio So- down every open moza and his family. resistance to corn- Primate's statement as a vicious at- tack on the chief executive and his The Honduran government not munism. , administration. only blames Guatemalan ploters, in- Nor can they be eluding three Guatemalan Counsuts, ignorant of who and what they are NEWSMEN ATTACKED for the paralyzing strike which has supporting. They have openly and Altho American correspondents stopped every activity in the United continuously played the game of and editorial writers have usually States owned banana fields and such avowed communists as Man- stated that ."President Arbenz is other enterprises in the Eastern part uel Guttierez, Manuel Fortuny and himself not a communist," every of the country. other labor leaders. Guatemalan o f f i c i a I, including American business m e n and President Arbenz and his advisors Arbenz himself, has denounced the American officials have know of have practiced every radical and ex- "imperialistic and capitalistic Yan. and been in possession of indisput- tremist policy advocated and insti- kee press" for misreprensentation. able proof of the truthfulness of gated by there Red labor leaders. At the Caracas conference the these charges for more than a year. They have carried out the Reds' United States delegation in its advo- expropriation schemes, protected cacy of an anti-communist resolu- ARMS IMPORTED and encouraged them in demons tra- tion never mentioned Guatemala. Now the Arbenz government has tions against United States interests Yet the Guatemalan foreign minis- imported a large shipment of arms and have denounced this country ter directed every one of his state- from an "iron curtain" country. Altho Washington has evidence, the every time it has asked about the ments and tirades against what he arbitrary treatment of its nationals. called "United States intervention." Guatemalans deny these arms came from Russia or Poland. They do CONTROLLED PRESS Guatemalan officials and diplo- not deny these arms may have come The Arbenz government has per- mats have been and are busy in- from Czechoslovakia, which is the milted the avowed Reds to use the terfering and intervening in the principal arm producer of the satel- government-controlled radio and affairs of practically all their lite states. , press to broadcast and openly neighbors. Just how much More evidence do spread the despicable and false For three years and more they we need to explode the myth, or Chinese charges that the United have openly campaigned, by radio, disabuse ourselves of the idea that States engaged in germ warfare in newspapers, pamphlets and secret Jacobo Arbenz and Co. are innocent i KoreaArroved for Release 2000105/03a.giglAtROPagt008,B5R000 worrynymniste plot instead _ The benz regime has permitted isn Honduras. Before um,. Jose e-'161317 of Moscow that they Red union heads, leaders of student Remon was elected president, the are? 1 .2? Approved For Rdliliase 2000/05/03 : CIA-RDP62-00865R011119300200002-7 N. Y. H. T. JUN 1 1954 Guatemala Plot to Kill Exile Told By Wireless to the Herald Tribune Copyright, 104. N. Y. Herald Tribune Inc. TEGUCIALPA, Honduras, May 31.?A former employee of the United Fruit Co. in Guatemala, Rafael Mendez Rodriguez, this noon unfolded a bizarre plot which he asserted had been hatched by high Guatemala offi- cials to murder or abduct here a quatemalan exiled and anti- Communist leader, Col. Carlos Castillo Armas. Col. Armes is the recognized head of the large exiled Guate- malan anti-Communist groups which oppose the present ad- ministration of President Jacobo Arbenz in Guatemala. His or- ganization reportedly exists in four Central American countries and has underground connec- tions in Guatemala. At a meeting with foreign cor- respondents before a Honduran notary public, Mr. Mendez Rod- riguez said h ehad been con- tacted in Guatemala some months ago by the Guatemalan police chief, Col, Rogelio Crub Wer, with whom he had long been friends. Col. Cruz Wer sent him to Honduras, Mr. Mendez Rodriguez said, to "eliminate" Col. Armas by kidnaping and murder. Says Arbenz Fears Armas Mr. Mendez Rodriguez quoted Cot Cruz Wer as stating that President Arbenz and the Com- munists feared Cp. Armas more than any other man and that he Was a menace to the Guate- malan government. The Guatemalan stated he was to have the assistance of six men who would be sent from Guatemala later. These men ar- rived on the north coast of Hon- duras last week, and were ar- rested by Honduran authorities, It was confirmed today. All six were heavily armed. Victim Told of Plot -Mr. Mendez Rodriguez stated he arrived in Honduras near the end of March and immediately contacted Col. Armes, and, after talking to him, secretly exposed the alleged Guatemalan plans. However, he liguiVitmatterrybit NY Timms.% Jona. I. 19.51. GUATEMALAN AIDE MEETS U. S. ENVOY Hastily Convened Conference Indicates Attempts to Ease Friction in Relations By PAUL P. KENNEDY Special to The New York Times. GUATEMALA, June 1?For- eign Minister Guillermo Toriello and John E. Peurifoy, United States Ambassador, held a quickly arranged conference in the Foreign Ministry today. This and other recent events indicate extraordinary attempts at light- ening the tension between the two countries that has been mounting steadily in the last few weeks. ? Little information is available of the conference. It is under- stood it was requested . by the foreign minister shortly after n000n. That the request for the conference had come as a sur- prise to the Embassy was indi- cated by the fact Mr. Peurifoy's office hastily canceled the Am- bassador's calls at approximately 4 P. M., when the conference is understood to have been held. This conference followed what is regarded as a highly crucial meeting last night between Pres- ident Jacobo Arbenz Guzman and leaders of the parties and groups supporting the administration. These leaders have been highly influential in shaping the Gov- ernment's top level policies. United Fruit Issue Raised Present at a the meeting were the leaders of the Guatemalan Revolutionary party, the Party of National Renovation, the Party of Revolutionary Action and the Guatemalan Labor party. It is understood that? the prin- cipal matter under discussion last night, and likely to be the main topic of discussion between Senor Toriello and Mr. Peurifoy , today, was some ne* approach - to a solution of the problem of the United Fruit Company against which demands have been made by Guatemala. The latest dispute involving the company arose last month, when the State Department pre- sented an indemnity claim for company of almost $16,000,000. However, the State Department has stated repeatedly that the United Fruit issue was not the principal cause of United States- Guatemalan disagreement. There was no indication that the meeting of the party leaders last night considered what the United States deems is the pri- mary point of the disagreement with Guatemala. The main issue is Communist influence in Gua- temalan Government. The United States Government has repeated- ly stressed the point that without some action on the latter prob- lem all other points of discussion are next to fruitless. It is understood that Ambas- sador Peurifoy's conception of his! role in the Guatemalan Govern- ment-United Fruit fight is to act as the transfer medium for Gua- temalan proposals to the State Department, which in turn acts as the transfer medium for the fruit company, Approach Called Difficult Without so ,formally express- ing himself, Mr. Peurifoy has let it be known unofficially numer, ous times that he would prefer to devote his diplomatr, ener- gies here almost solely to what he considers the greatest obstacle to international understanding, Communist infiltration and? ex- pansion in Guatemala, the Guatemalan Embassy here to receive funds, and named .Guatemalan military attche Col. 'Luis Morales as his contact. I Although Honduran author!- , ;les were advised of the plot it has not been made public inas- much as Mr. Mendez Rodriguez's wife and children were in Gua- temala, he said. They crossed the frontier yesterday, he said. However, tonight he received a message from Guatemala that his wife and children were not falibusted2600/05/03 : CIA-RDP62-00865R000300200002-7 3D Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Noe -Nor' N.Y. Times St. JUN 1 1954 p Plot in Guatemala Charged.L n21 r"etsiln KEPT As 5 Flee to Embassy Haven' ON IAD Rtr ON EMBASSIES 11 GUATEMALA By PAUL P. KENN,AMI Special to The New Tint TIM% GUATEMALA, May 31?The Government announced to- day the discovery of 6, plot to overthrow President Jacobo Arbenz Guzman. The announcement followed a series of raids and arrests in the last forty est of more than 100 persons, eight hours. of which about seventy have re- At least five Guatemalans, mained in jail without a trial. three of them well known, have sought political asylum in two embassies here, and an unknown number of persons have been ar- rested in the provinces, espe.: cfally along the Honduran bor- der. Augusto Charnaud MacDonald, Interior Minister, issued a state- ment early today promising to give details of the intense police activity as quickly as possible, probably tomorrow. He said a plot had been discovered and smothered in its early stages. The raids started about 6 A. M. Saturday and were confined to two houses of the Goicoleas, a well-known old Guatemalan family. Jaime Rosenberg, Mayor and chief of police, led the raids. He acknowledged that he had had no search warrant. The po- lice searched the houses /or three hours. Among those who gained political asylum were Dr. Hector Goicolea, former secretary of the economics faculty at National University, and his brother, Domingo. The former fled with I three others to the El Salvador jEmbassy. Domingo Goicolea, who had been sought by the police since the abortive Salama revolt in IMarch, 1953, found asylum in the Ecuadorian Embassy. On Saturday night, guards were placed at the embassies of all Western Hemisphere coun- tries, including the United States, presumably .to prevent further attempts to obtain asylum. The raids and arrests were reminiscent of the Salama upris- ing, and particularly of the Jan. 29 announcement of an alleged plot to overthrow the adrninis-, tration. The quelling of tlis Salerno. revokriflitatlie Ch Ewe& There were only a few arrests In the January episode, but sev- eral persons were exiled in con- tradiction to explicit injunctions in the Constitution against such acts. As in the uprising at Selma; a northern village, aid the Janu- ary seizures, a growing opposi- tion had applied sustained pre- sure on the Government. In each Instance the oppositioh appeared to be effectively smothered. The opposition recently had been getting stronger and bolder. It was only a matter of time be- fore the regime would have to lash out again. In late April, a clandestine ra- dio station began a series of viru- lent attacks on President Arbenz and his regime. This was followed by minor irritations, such as painting walls with the numeraa "32" to signify the constitutional article forbidding Communist ac- tivities. Attacks Renewed Recently The recent receipt of Czecho- slovak arms in Puerto Barrios with the resultant international publicity aroused renewed at- tacks on the Government by op- position forces abroad. These were epitomized by a group around Col. Carlos Castillo Ar- Refugees Sought in Roundup of Opposi- tion Leaders Follow- ing Reported Plot. are coming so they can escape or seek refuge." Five leading opponents of President Jacob? Arbenz's gov- ernment already have found asylum in the embassies of El Salvador and Ecuador. Reliable reports said the government was maintaining a guard on these ' and other embassies to prevent other tagitives escaping to them. , Meeting Reported. Unconfirmed rep or ts said seven of the Latin American ambassadors to the Guatemalan capital -met Sunday to discuss possible action if a wave of refugees descended on them. El Salvador's ambassador Al- berto runes, host to four of the oppositionists; made a quick trip home for instructions. He was expected back today, The continuing police searches fel' rebels and arms increased the capital's uneasy tension and r ?due ed ' fresh rumors hoUrly. Guatemalans have been jittery since the United States began blasting their government for receiving a large shipment of arms from Communist Poland two weeks ago. The refugees in the Salva- dorean embassy were Jose B. Linares, secret police chief 11 years ago under the rule of the late President Jorge Ubicts Hector Goicolea, an economics professor; and two anti-Commu- nist workers, Aquillo Morales and Manuel Gonzales. Hector Goicolea's brother, Domingo, a' student leader who has been underground for almost a year, was reported in the Ecuadorean embassy. The newspaper El Espectador said "recruiters" for Col. Carlos Castillo Armes, a leading oppo- nent of. Arbenz now living in neighboring Honduras, had been discovered near ,the Honduran border. Without giving any source for its report, the paper said the government has found evidence of a "vast conspiracy" to build up a rebel army. To Take Over Radio. The government announced its plans to take over the Puerto Barrios radio formerly operated by the United States - owned United Fruit Co. The company las operated the station since he 1920s under a contract pro- iiding for government4takeover in payment of compensation to se agreed on. Under Communist prodding, Arbenz's government already has confiscated large tracts of company land but re- imbursement to the company is still under dispute. In Tegucigalpa, capital of Honduras, a 45-year-old man identifying himself as a Guate- malan named Rafael Mendez Rodriguez summoned corre- 7 (ck,*- GUATEMALA, June 1 CAP)? Guatemala's leftist government kept a close watch on Latin American embassies here today for fugitives from a roundup of underground opposition leaders in Guatemala. Local newspapers said wide- spread police searches so far had uncovered nothing to sup- port the government's charges Sunday that plans were under way for an uprising and that arms had been assembled se- cretly. 1 One diplomatic source viewed this as evidence that anti-gov- ernment forces had "well or- ganized intelligence" forcet, en- abling them to learn "an hour or two before the raids that they Diplomatic sources revealed that three others besides the Giocoleas were: Jose Bernabe Linares, former head of the secret police under President Jorge Ubico; Aquilino Morales and Manuel Gonzales, both described as laborers. The dropping of anti-Govern- mas, in exile in Honduras. The Foreign Office was ad- ment leaflets by an unidentified vised by both embassies of the plane last week possibly set off granting of asylum. Safe conduct police raids. the El Salvador Embassy on the papers will be asked for those in as much as anything else the P The appearance of the plane, return of Ambassador Abel Ro- which flew low and in visibility mero from his homeland, Em- that few pilots would challenge bassy aides said. in this mountainous country, It was not indicated whether fired the imusination of Guate- the Ecuadorian Embassy would malans, at least those in this ask safe conduct for Domingo city. After nearly a week, it is still prime conversational mate- rial. The interior Minister did not tell of the number of arrests nr Goicolea. Observers who have seen this type of police activity here in the past expect the Government to put out a brief description of the alleged plot, probably Involving where they had occurred, nor did the United States and the United :zot he identify those who had gained Fruit Company, against which it ludi?ea2000105/03 : CIA-RD . 2200W65ititaild2a0002 Approved For Rabase 2000/05/03 : CIA-RDP62-00865ROISS300200002-7 spondents to a grout conference EVENING STAR, Washington, Wask. Even' Mat yesterday and said Guatemala's WEDMISDAYs 411701S 2, 1054 secret police chief had sent him to kill Col. Castillo. The man's story closely re- sembled that told recently by Soviet secret police Capt. Niko- lai Khokhlov, who gave himself up to the United States Army in West Germany earlier this year and said he had been ordered to kill a prominent anti-Soviet Russian leader. Mendez said he had not dis- closed his story previously in order to lain time to get his wife and five children out of Guatemala. He said he did not know yet whether they had escaped, Mendez said he had held, secret conferences about the plot against Castillo with Col. Jose Luis Morales, Guate- malan military attache in Tegu- cigalpa. Most Formidable Attempt. Asked about Mendez's dis- closures, Morales 'said he had neVer heard of either the alleged plot or the man, Castillo, how- ever, said "many times Guate- mala has made plans to kill me and this was the most formidable attempt." He said Mendez had disclosed to him the names of six other Guatemalans who were to join in the plot. At Charleston, S.C., the United States Coast Guard last night boarded the Panamanian freight- er Franco List as it entered Charleston harbor to take on a load of tall oil, a paper mill by-product. Capt. George H. Miller, cap- tain .of the port, said the inspec- tion was ordered by the Coast Guard commandant in Wash- ington. .1 . I U. S. Forwards Arms \ Guatemala President By Ship to Honduras, Trains Troops There By the Associated Press TEGUCIAGALPA, Honduras, June 2.? The United States stepped tip military aid today, to Honduras, southern neighbor I of Communist-influenced Guate- mala and a potential ally in blocking any Red move toward the Panama Canal. United States Army Col. M. C. Shattuck, chief of the United States military mission in Hon- duras, lined up a training pro- gram for officers of a new 800- man combat battalion. The Honduras war minister, Gen. Leonidas Pineda, an- nounced the United States is sending more arms and tanks for the outfit. 'Col. Shattuck said his staff would begin training officers and noncoms for the battalion to- day. "By the time troops are re- cruited," he went on, "there will be ample of their own instruc- tors to show the men how to use the weapons." Munitions Come by Sea. Gen. Pineda said the addi- tional arms are en route here by ship to supplement weapons air- lifted from the United States last week after it was learned Guatemala was getting arms from behind ,the Iron Curtain. Authorities here said the total tonnage of arms being shipped? a military secret?was "consider- able." There appeared little doubt it would narrow the advan- tage the Guatemalan army ob- tained in last month's shipment of arms from Red Poland. A sim- ilar air shipment of United States arms went to Nicaragua, south of Honduras. Gen. Pineda said in an inter- 'view the new combat battalion is being formed from the ablest men in Honduras' 5,000-man armed force. He said it was being readied for use "in case of any war or internal trouble." Honduran Foreign Minister J. Edgardo Valenzuela warned to- day his government would have to take "some measures" if the crippling, month-old banana workers' strike does not end Sees Tension Easing Tension Easing mala's policy to grant such safe conducts," Arbenz declared, "and we will in this case." ' The President did not give de- tails of the alleged plot against his government, which the Unit- ed States has claimed is Com- munist-dominated. He said his country has no plans to expand the size of its army despite the shipload of arms which arrived here last week from the Red Polish port of Stettin. In another development yes- terday, Foreign Minister Guil- lermo Toriello conferred with United States Ambassador John Peurifoy on the long-simmering dispute over compensation for expropriated lands formerly owned by the United Fruit Co. The foreign minister reported ? the results of his meeting to Mr. Arbenz and said later he was optimistic a solution would be worked out. Riot in Interior Reported. Delayed reports said Commu- nists joined up with members of the government's Revolutionary Party to stage a riot in rural Mazatenango and attacked the mayor. The newspaper La Hora said armed troops put down the violence. G,u ate a 1 a 's government, meanwhile, got a message of sympathy from former President Lazaro Cardenas of Mexico. He referred to Guatemala's war against monopolies in the face of a threat to national sov- ereignty "on the pretext of I combatting international com- munism." Mr. Cardenas has been iden- tified with the Communist- sponsored World Peace Congress since he was named a vice- president of the group in 1949. He was elected a presidium mem- ber by the 1950 peace congress I Warsaw. By the Associated Press GUATEMALA, June 2.?Gua- temala's President Jacobo Ar- benz Guzman said yesterday a well-financed plot of "serious proportions" against his leftist government had been uncovered in this country. It was the first official con- firmation of the widespread rumors which followed the dght ot five Guatemalans to foreign embassies here for asylum and reports of unusual police activity. The President said in an in- terview he believed, nevertheless, the internal situation in his country was under control and that general conditions through- out jittery Central Ameri="1,p- parently had eased. Safe Conduct Pledged, Mr. Arbenz said the four Guatemalans who took refuge in the Salvadorian Embassy and the other man, who fled to the Ecuadorean Embassy, would be given safe passage out of the country if they wished to go into exile. "It always has been Guate- quickly. Great Cost Cited. Mr. Valenzuela told newsmen the strike, involving some 25,000 United Fruit Co. employes, is costing his government hundreds of thousands of dollars. Company officials said they see little .hope of resuming negotia- tions, which collapsed yesterday when strike leader Cesar Augusto repudiated points settled in pre- vious talks. , Workers of the Tela Railroad I Co. became involved in a dispute among themselves over the col- lapse. One group refused to sign an agreement which would per- mit a train to run once each 10 days to carry foodstuffs to the strike area. Another group im- mediately demanded Mr. Au- gusto resign. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 N.Y. Times JUN 3i4 r. S. Aid to Grow Special to The New York Times. 'WASHINGTON, June 2?Sub- stantial United States military assistance will begin to flow to Honduras and Nicaragua in about a month, defense officials report- ed today. A shipload of weapons and sup- plies, provided under the terms of military assistance agree- ments, with the two Central American republics, will supple- ment the recent airlift 0 arms flown to those countries? in the wage of an estimated 1,900-ton shipment of arms to Guatemala from Poland: Officials sal dthat the airlift was intended to give a '"psycho- logical" lift to the neighbors of Communist-dominated Guatemala and to dramatize the cuncern with which the United States re- garded the shipment from behind the Iron Curtain. The airlift included jeeps, weapeins carriers and arms and amintinition. The shipload of supplies now being assembled, it was emphasized, will be the "nor- mal fellow-up" to the airlift and start the flow of aid under the military aid agreements. N.Y. Times JUN 3 lqk PLOT STILL F04116111 BY GUATEMALANS Regime Continues to Combat 'Best Organized Attempt in History of Nation persons arrested and the data already uncovered because it would be "prejudicial" to the rest of the campaign against the plotters. He implied also that a suspen- sion of constitutional guarantees had been contemplated but that it was not considered necessary at this tithe. The Go,-ernment wants to give the press every possible liberty, he added, but there are newspaper men who are Writing "sheer lies." . Move Began Last Week The Government's move against the plot began late last week. The first news was made public MonL day morning, When it wa's discov- ered that five persons had gained political asylum in the Salva- dorean and Ecuadorean Embas- sies. By Saturday night guards had been placed before the em- bassies, presumably to head off any other persons seeking asylum. Since that time there havc been an unannounced number, of arrests here and in the provinces. Estimates of these arrested, here Irange from seven upward. Sefioi Charnaud MacDonald said he wa going to withheld the names o those arrested because 'they form the vanguard of farces abroad." This is the third major plot un- covered against the present Ad- ministration. The first, in April, 1953, was broken up after a small shooting affray in the village of jSalarna, north of Guatemala City. An unknown nuinber of arrests were made at that time and about seventy persons still re- main imprisoned without having been brought to trial, The second plot uncovered was in January, when the Government reported the seizure of documents ? By PAUL P. KENNEDY Special to The New York boles. GUATEMALA, 34ne 2? The Guatemalan Government will use all its means to smash the "best organized plot in the history of the country," Interior Minister Augusto Charnaud Ma6Donald said today. In a news conference, which he said he had called to acquaint the p:ress "with the gravity of the situation," he implied that the plot had not yet been entire- ly rooted out. He said he would. not give details concerning tug Approved For R N.Y. Nes JUN 5 1954 Guatemala Moving should trouble start. ? . To Curb Opposition' centration camps, becauee t It is not necessary to have con- fui st stick to be heard in case of an emergency we will order the beheading of all anti-Communists, committee of the National Peas- ants Confederation and a Com- munist member of Congress, caused a sensation last night by declaring that anti-Communists were in danger of being beheaded By PAUL P. KENNEDY goe6tat fp The Nevi 'rOr Titttea. ? GUATEMALA, June 4?Evi- dence is multiplying that the Guatemalan Government is mov- ing quickly and forcefully to take over the initiative held briefly by the opposition. That the boldness of tlie under- ground opposition had awakened the regime and its supporting groups to near belligerency was indicated in statements by lead- ers of Communist-dotninated la- bor organizations. Cesar Montenegro Paniagua, chairman of the.lar-dispute arge number of unspecified tech- nicians. Of the five persone now in exile, four are in the Salvadorean embassy and one in that of Ecuador. 'Only'the latter 'indi- vidual, Domingo Goicolea, a mem- implicating Nicaragua and the United Fruit Company in a plan to overthrow the Government by force, Few arrests were made, ber of a prominent family in op- position to the Communist-influ- enced Government, has applied for safe conduct out of the coun- try. It is not known whether his request has been granted, but President Jacobo Arbenz Guzman indicated in an interview yester- day that all such aPplications would be approved. ? Senor Goi- colea has been in hiding since the Salama uprising. President Denounces U. S. GUATEMALA., June 2 (UP)? President Arbenz Guzman ac- Used United States interests to- day of trying to-provoke a "frat- ricidal struggle" in Central Amer- ica under the "pretext of combat- ting so-called international com- munism. but a number of persons were The statement was contained exiled, in his reply to a message of sym- Concha Estevez, an outstanding The third plot, Safi Charnaud pathy received from former Mexi- anti-Communist, took refuge in MacDonald said, differed from can President Lazar? Cardeeas. legation. the others in that it Was a highly In a letter to Foreign Minister thel iipSleaFas secretary general of the Corn- developed organization that, in- Guillermo Toriello, Senor Carde- Women's Anti-Communist Com- nas said Guatemala was "waging mittee. With Horacio de Cordoba, war against monopolies, in the she founded a powerful anti-Red vestigstion showed, was .,far au_ perior" to that of lite previous 'face of a threat to national soy-, radio program, the operation of ones. . ereigntx: eaTelddiRcithill 612(drasvuz- - -00865R0OuSIKT200-00!- c which forced Sefior de Cordoba he said at a press conference. While those present took this and similar statements more or less lightly, newspapers here did not. The statements were gener- ally of a violent pattern and they evoked an immediate protest from several independent papers. Leonardo Castillo Flores, Sec- retary General of the peasant group, sent telegrams last night to all confederation chapters, tell- ing members, in view of the latest alleged plot against the Govern- ment, "to be very vigilant for acts of reactionary elements." In cases of Unusual activity, the message said, members should inform the central committee and await instructions "on how to combat immediately the enemies 'oferr evo lution " _ Prensa Libre, a morning paper, had a big headline on the "Dan- ger of a Saint Bartholomew." This alluded to the massacre of thouands of Huguenots in France on Saint Bartholomew's Day, Aug. 24, 1572. Peasant Group Chided Impacto, another paper, chided the peasant confederation for an attempt ascribed to it to arro- gate to itself the duties of the army. The Confederation of Labor, also heavily infiltrated by Com- munists, pledged "our lives in defense of democratic liberties" in a telegram to President Jacobo Arbenz Guzman. Meanwhile, the Government it- self was pushing its campaign to crush what it called "the best- organized plot in the history of the nation." While no new arrests were re- ported, another case of political asylum was made known. Sefiora 35 Approved ForPhase 2000/05/03 : CIA-RDP62-00865R4M0300200002-7 - into exile early this year. Seliora Estevez said she had sought asylum because she was persecuted by the police. Granted Safe Conduct Thus far, eight persons have been granted safe conduct from the country and are preparing to leave. They have taken refuge in four foreign missions, those of El Salvador, Costa ica, Ecua- dor and the Vatican. Continued police activityl against political suspects? state- ments by Government and labor leaders and the constant activity of opposition propaganda agen- cies have kept the people in a nervous state. A clandestine radio and the distribution of pamphlets warning of an air raid are adding to the tension. The most telling tactic so far has been a warning to all non- Government persona to evacuata residences in a four-block radiv of the National Palace. This hammered out incessantly on th radio. Pamphlets containing th warning were slipped unde doors yesterday. Some familie have moved out of .the neighbor hood. The clandestine announcement say an air raid will be carriel out to wipe out Government offi cials. They add that the time o the raid has not been decided oi yet, but that it will not be an nounced until the final minutes Wash. Pod JUN 6 '1954 Billings Ends Secret Survey Red Plot to Seize Latin America Seen New York News Representative Patrick Hill, would fly to Washington today Ings (R-Calif.) keturned yester- and report to Kersten and Vice cl ay from a secret trip to Red President Richard M. Nixon, - his close friend. Nixon is ? ex- dominated Guatemala an d pected to relay the report to neighboring countries, con- the National Security Council vinced that the Czechoslovak. next week. Ian Legation in Mexico City is , Besides holding hearings, }fillings said, Congress should the headquarters of a Russian "reajlpraise" the Fqreign Aid effort tq, take over Latin Program to give more than 1.3 Amerka. percent of it to our friends in Highlights of Hillings' con- Latin America. elusions during his nine-day He urged U.S. labor leaders survey were: to invite anti-Red union lead- e ? "There is no question thatrs from south of the border, the leaders of Guatemala arej here and show them how Corn. taking orders from Soviet1 munism has been licked in Russia." most American unions. ? There is a "definite" anti- Red underground in Guate- mala. ? The Communists' next tar- get is Honduras, where a "defi- nitely Communist-led strike is in progress against the United Fruit Co. ? The quick action of the United States in shipping arms to Nicaragua and Honduras has "had a very good effect." ? The House Committee on Communist Aggression headed by Representative Charles Ker- sten (R-Wis.) should hold hear- ings on 'Red infiltration of Latin-America quickly. "The cancer is definitely If a conference of West- ern Hemisphere nations were called, ?he said, the conferees should "seriously consider eco- nomic sanctions" against Guate- mala. A cdnference "just for talk" would do more harm than good, he declared. But if the United States and its al- lies stop buying Guatemala cof. fee, and refuse to sell fuelk the Communist regime"mightvery I well collapse." "In all this, we should make it clear that the issue is not Guatemala, but international communism directed by Soviet Russia, Hillings emphasized. "We have many friends among the people of Guatemala. I understand that the number of Guatemalan leaders going to the Soviet Union has doubled In the last six months," Hillings reported. "Much of the negotia- tion has been handled through the Czech legation in Mexico City. In fact, that seems to be be the headquarters. Orders are going out from there to Com- munist leaders, throughout all of Latin America." The ihvestigators twice vis- ited Guatemala and stopped al- so in neighboring Honduras, ap- parently the Communists' next target, a few hours away from the Panama Canal. Hillings' companion, whose name cannot be revealed at this time, is also back in safe terri,i 62-00865R000300200010 there," he declared. "I think the American people must know more about it. The Red menace In the Western Hemisphere is very real, very serious," Hillings made his trip as a member of the Kersten Com- mittee. Accompanied by a Com- mittee investigator he tray- eled through Latin-America for nine days. His trip was not an. nounced in advance, and- ocea- sionally he fohnd it wise to drop his congressional title. Approved For Ratteaseolitie0106403ticCIAA 'd954 irhirtAtis AIM FOR MOBILIZATION 80,000 Members of Peasant Federation Are Notified? Newspapers Protest By PAUL P. KENNEDY Special to The New York Timm GUATEMALA, June 5?Mobi- lization plants for timid 80,000 members of the National Confed- eration of Peasants are under study. These plans and the moves that led to them have caused a furor in the local press, adding to the general state of tension. Editorials were virtually unani- mous in warning that recent events speled the formation of a "people's army." Reports published in this morn- ing's PrOnsa, Libre and verified by authoritative sources said that trial mobilizations would be held tomorrow in El Progresso and Zacapa, principal cities of the Guatemala Department, or prov- ince. The primary object of the call is to study "action against any intent of reactionists and in- terventionists," according to a telegram sent to all chapters of the peasant organization. Forerunner to Plan Leonardo Castillo Flores, sec- retary of the group, could not be reached today. His circular tele- gram, however would be a logical forerunner of a mobilization plan. The telegram urged all mem- bers to be "alert and vigilant for reactionary elements." It further advised provincial leaders that should "anything new occur, the central committee will advise immediately as to how to proceed against the enemies of our revo- lution." Impacto, a morning newspaper, called this the first step toward a people's army and warned of the possibility of civil War. It warned that a word from Senor Castillo could 'launch ac- tion against the defenseless peo- ple of the country and villages and cities, and start a killing orgy without parallel in the coun- try's history.' The paper voiced the hope that authorities would calm the pop- ulace by assurances that a civil- ian army would not become a reality. I Since yesterday, a clandestine radio has reported that the mili- tary's old arms are being stored ffa distribution among civilians. - /Events of the. last week have _ ftist? ley Approved For Release 2000e103 : CIA-RDP62-00865R000300200002-7 Noe. Ial,the grounthirork for the mobilization plan. Political ar- rests and the flight of political suspects to displomatk asylum heightened unrest. Augusto Charnaud MacDonald, Interior Minister, announced Wednesday the existence of a highly organ- ized plot to overthrow the Gov- ernment. On Thursday, both the peas- ants' group and the Confedera- tion of Workers issued state- ments pledging their support to the Government. In the revolt of 1949, arms vvere passed out to union mem- bers.. Most of these were never re*rieved. thlr. Thou 1954 drAimirAls CASE DUE FOR SCRUTINY American States Expectedio Convene This Month to Discuss Red Activity By SYDNEY GRUSON Special to The New York Timm MEXICO CITY, June 6?It is almost certain thItt the Organizi- tion of American States will meet by the end of this month to dis- cuss the case of communism in Guatemala. According to reliable informa- tion here, preliminary conversa- tions in the last two weeks among members of the Organiza- tion of American States have shown that a sufficinet number are agreed on the necessity of a meeting. Th enegotiations now going on are to decide what ac- tion against Guatemala can be agreed on beforehand. [Col. Rodolfo Mendoza Az- rudia, Guatemala's foremost flier, fled the country Friday In a private plane.] , Under the Rio de Janeiro pact, eleven of the twenty-one nations in the organization must agree before a consultative meeting can be held. For diplom?atic or eco- nomic sanctions there Must be fourteen votes or a unanimous vote, save for the country against whom action is contemplated, is necessary to approve militaw Approved ror tervention. Guatemala has hever ratified the Rio pact. However, she can participate in the consultative. meeting without the right to vote. Guillermo Toriello, Guatemalan. Foreign Minister, has said he would attend a meeting if one were called. He has also said that Guatemala might appeal to the United Nations Security Council if any action against her Were decided on by the 0. A. S. At the very least, according to information , here, the United States wants communism in Guatemala condemned by the or- ganization as a ?menace to hem- isphere peace. But there are no illusions among United States officials or Latin diplomats that, mere condemnation would? re- solve the Guatemalan problem. The administration of Presi- dent Jacobo ArbenZ Guzman is far too firmly entrenched to .be shaken by resolutions. It will be difficult to get, a sufficient number of Latin-Amer- ican republics to go further at this stage. The informatin lure is that many of them have agreed to a meeting with considerable reluctance, and only because the United States has been persuasive On the issue of Guatemala's re- cent purchase of 2,000 tons of arms from Czechoslovakia. The first reaction of many Latin countries to the arms trans- action was that Guatemala had acted normally, especially since the United States had refused to sell her arms and had used its in- fluence to bar purchases in other non-Communist countries. Patient explaining by United, mates representatives was saici to succeed in putting a different light on the transaction. Accord- ing to diplomatic sources here, the United States supplied de- tailed figures to show how ex- cessive were 2,000 tons of arms for a nation with, a 6,000-pan army. The United States also drew attention to the fact that the secret and roundabout manner of the arms purchase and shipment hardly fitted the picture of a normal transaction, which Gua- temala had tried to paint. Mexico is an example of the countries that have come to view the Guatemalan case differently since the arms shipment in mid- May. For Mexico, the principles of nonintervention and the right of a people to decide its own po- litical future; without foreign pressure, are sacred. These were the principles on which Mexico argued so vigor- ously and effectively at the tenth Inter-American Conference in 90150/175,03 ?tAtIRCI Wash. Post JUN ,8 Guatemalan Unions Back Government GUATEMALA, June 7 (R).? Guatemalan workers gathered at four Communist-dominated mass meetings yesterday to or- ganize vigilante defense units. The rallies served as a show of support for President Jacobo Arbenz Guzman's leftist gov- ernment. The meetings were called by the Nation's two 'biggest labor organizations?the, General Confederation of Workers (CGTG) and the National Con- federation of Farmers (CNCG)., Both are controlled by the Reds. ' The CGTG sponsored a meet- ing at Puerto Barrios. CNCG rallies' were held in Guatemala City, El Progresso and Zacapa to lay the foundations for a farmer's milita to defend "the national sovereignty." Some newspapers have re- ported this militia would be The fact that Mexico has now agreed to participate in a con- sultative meeting on the Guate- malan case 'reflects the belief that this country is no longer so sure there has been no Soviet intervention in Guatemala. However, like many other Latin- American governments, Mexico has not yet decided how for the 0. A. S. should go in trying to change the situation in Guate- mala. A member, of. the Govern- ment said privately that he thought President Adolfo Ruiz Certines would approve "any reasonable action." However, as of this moment, "reasonable action" for the Mex- icans does not include economic sanctions, and definitely not mili- tary intervention. But if economic conditions were voted , by the 0. A. S., it is most likely that Mexico would observe them, how- ever reluctantly. This country's help in enforc- ing such sanctions would be im- portant. Guatemala is dependent on the United States for gasoline. It is known that many GUata- malan officials hope that Mexico would sell enough to Guatemala to sustain her essential services if the 'United States cut off supplies. 1 67-170665-ROG03002uouoz--1 . armed with weapons discarded by the army. Gen. Carlos H. Sarti, Army Chief of Staff, said, however, the army had no con- nection with the project. Guatemala received a 10 mil- lion dollar arms shipment last month from Stettin in Com- munist-ruled Poland. As a re- sult, the army reportedly is get- ting rid of some of its older weapons. The former chief of the Guatemalan Air Force, Col. Rodolfo Mendoza Azurdia, fled the country yesterday in a pri- vate plane. Informed sources said he had received asylum in El Salvador. The newspaper Prensa Libre said Mendoza was accompanied on the flight by Ferdinand F. Schupp, 38, a former member of the United States air force mission to this country. 35 Approved For Rehease 2000/05/03 : CIA-RDP62-00865Rele0300200002-7 .THS'NfAsfrelMstosi MTV/ IMO, '700:524314.V. jtnollel" War's Not a Factor Reds Sent Arms to Guatamala for a Toehold By EDWARD TOMLINSON The charges and conflicting opinions arisen here over Guate- mala's importation of arms from behind the Iron Curtain is what the Moscow propaganda doctors pr,icribed. This is the opinion of one of the highest Latin diplomats here in Washington. pened in Guatemala and is happen- "If you take stock in such scare- Ing in Honduras. heads as 'imminent warfare in Cen- I Tho the United States is their tral America' and 'threatened at- main target, no South American tack on the Panama Canal,' you will Red is naive enough to advise be underestimating the intelligence taking us op openly. And if we of the Red brain trusters in this started distributing rifles and hemisphere, and losing sight of Limbers overealrond uaraasndanl flying hemisphere, main strategy." Central Americas, they can howl about the Yankee "big stick." ? First, the Kremlin, and its stooges in Guatemala, know they OUR ACHILLES HEEL could not get away with open war- Our Achille's heel is our economic stake in Latin America?$6,000,000,- 000 worth of investments and our $7,000,000,000 annual trade. If they could immobilize all the mineral mines and oil fields, branch plants and factories, the agricultural de- velopments which produce raw ma- terials and foods that we need, it would be one of the severest blows unified action so they could deal us. 'quickly. Nor would any Latin In Central America their imme- American Govern- diate aim is to disorganize, destroy ment expect Uncle the crops of the big United States Sam to haggle owned agricultural developments, about what should throw thousands out of work, bank- be done, or who rupt the employing classes and then should do it first. blame us. This is what they have done to the banana industry in , ? Second, it would be contrary to Guatemala. communist tactics employed every- The Reds are not after the U , where else in the world. Their . _ _ _ United States Fruit Company, as methods are more devious. such. They want to destroy it be- cause it is a U.S. investment, it's HOW THEY DO IT big and plays an important part They first indoctrinate selected in the economy of these little natives, ambitious labor leaders and nations. small bore politicians, who in turn If they can destroy the Fruit innoculate and subvert their own company in Guatemala, Honduras, Costa Rica and Panama, they could people. Then follow strikes, demon- destroy the United States' gigantic strations and pressures against big oil industry in Venezuela, the Am- busines s enterprises, especially erican operated copper industry in Yankee firms. This is what hap- Chile and others. They wott do it Approved For Release 2000/05/03: CIA-RDP62-0 fare against any- body in the Am- ericas. That auto- matically would invoke the hemi- sphere defense treaty. Nothing would produce 'A444111/ Exile Warns of Red Plans MEXICO CITY, June 7 MD? The head of the anti-Commu- nist Guatemalan exiles abroad, charged today that the Guate- malan Government, acting under Communist inspiration, were arm- ing, "popular militias" recruited from Communist-led labor groups against democratic Latin-Ameri. can government. Lieut. Col. Carlos Castillo Armas said the $10,000,000 arms shipment to Guatemala from be- hind the iron curtain last month was being used "to arm the fifth column that is soqn to extend its radius of action against the democracies of this continent." ; Colonel Castillo Armas has his headquarters in Honduras, where most of the Guatemalan exiles re- side. His statement was made in reply to a: questionnaire sent to him at Tegucigalpa, Honduran capital. with guns or bombs, but by carefully directed labor turmoil, anti-foreign demonstrations and if necessary local civil strife. THEY NEED A BASE What, then, were the Russian arms for? To tighten the commun- ist hold on the government and maintain Guatemala as a base of operations. They already were get- ting worried over the possibility of the Arbenz Government being over- thrown. The broadcasts from secret anti- communist radio stations have them jittery. They also are haunted by signs that substantial numbers are responding to the call of the Catho- lic Church for a "crusade against communism," and the effect the stories of tortured exiles is having thruout Latin America. Meantime, Moscow strategists hope their ruse in getting a big cargo of arms into Puerto Barrios under our noses will divert attention, from eventS elsewhere. Throwing a scare into us in our own front yard will take some of the pressure off in Southeast Asia, Geneva, Germany and other areas of the world. 0865R000300200002-7 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 4vesse sky. Times JUN 9 1954 IIILLES FOR AIRING GUATEMALAN CASE Favors Hemisphere Meeting on Red Threat, but Awaits Views of Other Republics Special to The New York Times. WASHINGTON, June 8?Sec- retary of State Dulles said today the United States favored a spe- At an extraordinary session, the cently. cial inter-American Meeting on ted unanimously fort Cabinet voted the Communist threat from will. Specifically, suspension of Guatemala. However, he added the 'suspension, which custom- guarantees means: that a decision on such a matter arily is resorted to only in times !Eleven articles In the Con- must await consultations with of national emergency. The last stitution are inoperable during other talks are now going on the period. The first withdraws was ther American governments, time guarantees were suspended amid reports that the Organiza- a person's right to remain in in July, 1951, early in the Ad- tion of American States, the? ministration of President Jacob? Guatemalan territory Or to enter twenty-one nation alliance of this Arbenz Guzman, when rioting it, whether or not he is a Gua- hemisphere, would convene July 3, broke out and guards fired over temalan national. Calling attention to both the at Montevideo, UrUgUaY I crowds before the National Pal- !Services such as tranSporta- anti-Communist resolution adopt-i ace. tion and communications can be ed at the hemisphere conference[In the 1951 incident, troops utilized gratuitously by the Gov- in Caracas, Venezuela, last March I fired on anti-Communist dem- ernment. and the "surrrePtitious shipment I onstrators July 12, killing three !Freedom of assembly is auto- of arms to Guatemala from be- persons and wounding thirty. matically suspended. This means Censorship in Guate la de- hind the Iron Curtain," the Sec- retary Said "we are disposed to - The shooting began when that not more than two persons layed receipt of the rest of the feel that thee situation is one soldiers tried to disperse the can legally converse at any oneI foregoing dispatch. which calls for such a meeting." marchers. It followed two days place. But he spoke of "keeping our of disorders in the city of !Liberty to organize political 2 at Liberty in El Salvador minds open" until arguments on Guatemala. The demonstrationsSAN SALVADOR, June 8 UP) the other side had been heard. were touched off by the Gov- parties is suspended. The right Rules Out Presidential Talk ernment's removal of three Mr. Dulles diScouraged any Sisters of Charity from an suggestion that the President of ornhanage staff.] Guatemala meet with President - Eisenhower "to iron out differ- Under the Constitution, suspen- ences between the two countries! sion of guarantees can be in- "There is a persistent effort voked in the first instance for by the authorities in Guatemala only thirty days. However, that to represent the present problem means little because the Consti- there as primarily a problem be- tution further specifies the tween Guatemala and the United suspension can be renewed at States relating to the United Fruit Company," he said. "That is a totally false pre- sentation of the situation. There In a statement issued after a is a problem in Guatemala which talk with Henry F. Rolland, AS- affects the other American statessistant Secretary of State for just as much as it does the United 'Inter-Arnerican Affairs, Senor States, and it is not a problem Facio said that Costa Rica was which the United States regards consulting with her neighbors 011 as exclusively a 'United States the "situation in Central Ameri- " ca,'I-and that he expected a "firm Guatemala problem. If the United Fruit Company and common policy" to develop. "gave a gold piece for every ba- nana," the problem of Communist Washington was requiring the "home- Infiltration in Guatemala would , Soviet Union to do such work" as Moscow was.forcing the remain, Mr. Dulles asserted. -' United States to do in the case Support For Costa Rica of Guatemala. The secretary answered yes, Support for the Secretary's position came quickly from Am- Antonio A. Facio of Costa Rica who said his Govern- N.Y. Times JUN 9 1954 Guatemala Calls Emergency And Suspends Civil Liberty By PAUL P. KENNEDY Special to The New York Timm GUATEMALA, June 8?The Guatemalan Government to- day suspended constitutional guarantees of freedom. Affected were the freedom of speech, press and assembly and the in- violability of home and the re- eliminated. This provision also quirement for arrest warrants. had been largely overlooked re- The immediate cause of the drastic Government action was laid to the reappearance of an unidentified plane over the capital last night. It frew directly west- ward and dropped opposition leaf- lets over Quetzaltenango, the sec- ond largest city. On May 24, a, C-47 without markings appeared over the cap- ital at almost roof-top height and dropped hundreds of anti-Govern- ment leaflets. The pilot braved weather conditions that had grounded all commercial and pri- vate flights. While officials were silent on both plane incidents, speculation centered on the disappearance Friday of Col. Hodolfo Mendoza, the country's foremost flier, and Ferdinand F. Schupp, former United States Air Force major. According to information re- ceived here, Colonel Mendoza took off in a borrowed private plane, landed in a pasture to pick up Mr. Schupp and then flew on to El Salvador. Of citizens to exercise suffrage is also suspended. However, no elections are scheduled for some time. Leaflets Dropped Again All documents, private or Colonel Mendoza said he re- otherwise, are subject to exami- ceived information that the nation without a court order. Guatemalan Government had or- !Legal rights regarding home dered his arrest. entry are suspended. Authorities am anti-Communist,' he said. Mr. I belong to no party, but I may invade a home at any time Schupp, a native of Loinsville, without a court order. 1Ky., resigned his official job in 41Guarantees regarding the11851 . . 6 habeas corpus are suspended. illesetofore, persons arrested were supposed to be either arraigned or brought to trial within forty- eight hours. This constitutional provision had been overlooked since the Government began to move against what it alleged to be a plot to overthrow it. (IGuarantees against arrests for major crimes without written order are suspended. . qFinally, a provision that au- -- th t more of cia and observe a had defected from the Soviet re- thorities must, on demanding an gime in the last six months than interview with a person, explain ?Ferdinand F. Schupp, former United States Air Force mission aide in Guatemala and Col. Ro- dolfo Mendoza Azurbia, former Guatemalan Air Force chief have received full liberty in El Salva- or after their flight here. ? merit had iteriACkkrnelPligiffrff : - DP62-00865R000300200002-7 ever before. the object of this Interview Approved For Relike 2000/05/03 : CIA-RDP62-00865R0(16400200002-7 N.Y. Times JuN 1 0 1954 PANAMAFORAIRINt andpla cocefuo lrd then fix Some the repotritmsehaanvde indicated that the date has been GUATEMALAN CAS Efixed at July 1 and the place at Montevideo, -Uruguay, but State Department officials say those details are still to be discussed. Accepts U. S. Sid to Attend ?a Hemisphere Meeting on Communist Threat SPecial to The New York Times. WASHINGTON, June 9?Ap- parently confident of support by a majority of the other American republics, the United States is prepared to call for a meeting soon of the American Foreign Ministers on the Guatemalan situation. One sign of that support came today from Panama, where it was reported that the Pana- manian Government had accepted the United States "invitation" to a high-level conference on the Communist threat to the hemis- phere. State Department officials "categorically" denied that an "invitation" had been extended, but it was clear that discussions between this and other American governments had encouraged au- thorities to expect an affirmative decision, possibly as early as next week. Costa Rica and Nicaragua have also informally but publicly pro- posed a meeting of consultation by the American Foreign Minis- ters, charging the Communist- influenced Guatemalan regime with having aggressive inten- tions on their countries. When the decision has finally been made to hold a foreign min- isters meeting, the procedure might be for some Government-- the United States is ready to take the initiative--to go before the Council of the Organization of American States and ask for a meeting of the foreign min- isters. By a majority vote, the coun- ell could agree to call a meeting, The foreign ministers meeting, which is second in importance only to the full-dress Inter-Amer- ican Conference, such as the Caracas conference, held every five years, could take the follow- ing action against the offending government, in this case, Guate- mala: By a two-thirds vote, diplo- matic restrictions or economic auctions; by a majority vote, excepting the defendant, military action. United States authorities are encouraged by two developments emerging from their consulta- tions with other American capi- tals. rhe first is the public sup- port by Costa Rica, which is cred- ited here with being influential with Latin Antericans because of her democratic nature. The second is the progress be- ing made in winning the support of Mexico. Mexico and Argentina were the only two governments to abstain from the Caracas vote approving the. Washington-spon- sored anti-Communist resolution. Guatemala, at which it was aimed, opposed it. N. 1. H. T. JUN 1 0 1954 The Real Issue in Guatemala The problem that confronts the United States in Guatemala was once again clearly stated by Secretary Dulles at his news confer- ence on Tuesday. It is, he saiu, "the presence of Communist infiltration" in that country. Communist charges that the real issue is Yankee imperialism, and specifically the stake of the United Fruit Co. in Guatemala, are "totally false." Even if the dispute arising from the expropriation of United Fruit ba- nana land were settled on the most generous terms, the essential problem of Communist infiltration would remain just as it is. The Guatemalan government's attempt to shift blame to the fruit company's shoulders has not been faring very well of late. Its own attitude to its neighbors has been called into question by its extraordinary importation of arms from behind the Iron Curtain, and its relations with Nicaragua and Honduras have turned sharply downward. Mexico, which gave some support to Guatemalan views at Caracas, Is reported to be taking a new look at its foreign 'policy. And Costa Rica, which has been far from hostile to the Guatemalan gov- ernment, has undertaken consultations with certain of its neighbors which may result in a meeting of a larger organization of American states to consider the Guatemala question. Meanwhile the United Fruit Co., regarded as a tool of imperialism by some in Guate- mala, has been demonstrating a quite unim- perialistic attitude a little farther south. Com- pany representatives in Costa Rica have nego- tiated an agreement with the Figueres govern- ment providing, among other things, for an increased income tax on net earnings, an adjusted wage scale and a new schedule of customs duties. This agreement, which should prove a boon to the Costa Rican economy, has been hailed with cordial satisfaction both by President Figueres and by company officials. A diplomatic achievement of no mean propor- tions, it may well serve to show, as Mr. Dulles suggests, how the governments and peoples of this hemisphere "may profit by the co-opera- tive attitude of United States enterprise." Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 38/ Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200W-7 Now -THE WASHINGTON DAILY NEWS, THURSDAY, JUNE If, 19M Leff-Wing Figueres Against Guatemalan Reds Costa Rica Offers Support' but Warns Against Big Stick By CHARLES LUCEy Scripps-Howard Staff Writer _ SAN JOS, Costa Rica, June 10?President Jose Figueres, a shrewd, nimble poli- tician of the non-communist far left, said today his country would support the United States at the expected Montevideo conference to act against the rise of Guatemala') communism. T At a time when Guatemala and But he warned against Wash- Honduras are in turmoil over ' ington brandishing a big stick. United Fruit Co. operations, Mr. The pint-sized man known as Don Figueres has been able to gdt what P looks like a model arrangement epe is one of the most controver- ? with the company by comparison with his neighbors. The fruit company has agreed that Costa Rica gets 30 instead of 15 per cent tax on its income, and this is seen as giving the Govern- ment a stake in stabilized opera- tions and continuing good business. sial figures in Centra America. He's in a wrangle at the moment with Anastasio Somoza, the one- man boss of neighboring Nicaragua, who claims Mr. Figueres was in on a plot to bump off Mr. Somoza and overthrow the Nicaraguan Govern- Many charge Figueres with a At the same time plantation work- Messiah complex and a wish to ers will be raised about 20 per cent Govern- ment some weeks ago. run not only Costa Rica, but all to a minimum of about $2.40 a day. Central America. Which way he Labor unions have been weak up jumps in the coming months is im- to now and mostly communist dom? , ortant in this whole tense area. mated. Mr. Figueres says he is tr in to drive out the Reds and Up and down the mountain ridge that runs from Mexico City to Pan_ let non-communist unions organize. ama, Mr. Figueres is accused of left- The communists are outlawed by 1st political beliefs from moderate law but keep burrowing. socialism to pro-communism. MUST BE ALERT Mr. Figueres says he recognizes the Red danger. He agrees that "It would be ruinous, to our institu- tions if the banana workers went communist." He says the commu- nists have infiltrated Guatemala? now the same way they were here a few years ago, and believes the best way to 'control communism in Central America is for each coun- try to be alert. The fact is, it's almost impossi- ble; even in Nicaragua with the SAT OUT CARACAS He and Costa Rica sat out the Caracas conference which acted against communism in the Western Hemisphere. He says it was to pro- test the fact that nobody ever re- members to say anything against dictatorships such as he sees exist- ing in Nicaragua, Venezuela, Cuba, the Dominican Republica and else- where. In an Interview Mr. Figueres denied most of the charges against him. He talked a good case against communism and said he recognized the danger of a Soviet outpost in this hemisphere. He said he under- stood the U. S. State Department's concern and agreed Red growth could present another Indo-China In Central America. CITES UNITED FRUIT "But," he said, "if stern measures are taken it could do more harm than good. The United Fruit Co., powerful in Central America, is a symbol of colonialism. "If there is going to be a spon- sored revolution, who in Guate- mala will explain to 160,000,000 Latin Americans that this is not an economic move upholding the fruit company? It would be taken as a sign of the big stick again." strongly anti-communist Somoza regime they are not stamped out. Here Mr. Figueres believes that if the coffee-banana prosperity con- tinues and social measures are de- veloped, communism can be licked. It is plain to this government as to others in Latin America, that letting communists run free leads to trouble. Examples are sharp in 'Guatemala and now in Honduras where strikes have paralyzed the banana plantations for weeks. Mr. Figueres denies any part in the attempted assassination of Mr. Somoza. He says the Nicaraguan President is trying to make the 'affair appear an assassination when in fact it was an attempted overthrow which shows the real sentiment among Nicaraguans against Mr. Somoza. Mr. Figueres is well aware of Mr. Somoza's bitter hatred of him. "I reciprocate," he 'says con- ? vincingly. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved Thasi JUN ii 1954 GUATEMALA SAYS 'FOREIGNERS PLOT , New Element Has Taken Over Subversion, Chief of Police Tells Tense Populace For Releitse 2000/05/03 : CIA-RDP62-00865R089800200002-7 By PAUL P. KENNEDY Special t2 The New York Times. GUATEMALA, June 10?For- eign elements in Guatemala have taken over the plot against the Government, Maj. Jaime Rosen- berg Rivera, chief of the National Civil Guard, said last night. In a nation-wide broadcase de- signed to keep the public calm in the face of suspension of consti- tutional guarantees, Major Ro-- senberg said: . "These foreign elements have thus taken in the interior of the country the direction of the prin- cipal ramifications of this new conspiracy." He referred again in his state- ment to a "new plot," and did not clarify whether this ineant a later plot than that reported June 2 by Augusta Charnaud MacDon- ald, Interior Minister. "The people of Guatemala should be certain that police or- ganizations have complete con- trol over this situation," Major Rosenberg's statement said. It added: "Not only do we know the new plot thoroughly, but we know the identity of those active n the conspiracy from their for- eign inspirers and executives, down to the last of their Guate- malan co-conspirators." Cites War of Nerves "We have been able to prove that suspension of guarantees has been sufficiently efficacious to cope with the war of nerves and with the lack of tranquility that had been instilled by the enemies of democracy and independents Within the country. , "This war of nerves had as its objective, as is easily proyed, the owing of panic among our peo- ple, the paralysis, in short, of all democratic eleielents within Guatemala, in order to make easier the work of conspirators and produce uprisings within the country." The police chief said the "est- tire conspiracy" would be un- masked in due time. He suggest- ed, meanwhile, that the people "remain tranquil." His statement obviously was Issued to ease coneern over ' ru- mors that had arisen from cen- sorship. "The people of Guatemala and conscientious citizens who follow' honest and normal activities have nothing to fear from police au- rioorities and official organiza- ns, despite the fact that some constitutional guarantees bave been suspended," Major Rosen- berg d For the first time it was charged officially that "subver- sive foreign elements" were in- 'volved in sabotage and incite- ment to overthrow the Guate- malan Government. I ,siness Showe Effects So far as could be learned in the capital, the country was calm but tense. It was apparent that the drastic curb on travel had affected business here. Com- plaints were mounting. The censorship situation im- proved last night with an an- nouncement by Carlos Gonzalez Orellana, chief of the Palace press and propaganda, tat for- eign dispatches henceforth would be censored and cleared during three periods daily. Censorship' af local newspapers and radio! appeared to be lightening. Suspension of -guarantees al- tered little the procedures that had been carried out immediate- ly before the decree was in- voked, except for complete con-1 trol of the press. That the Gov- ' ernment had decided hastily to act was evidenced in the censor- ship, which seemed ill-prepared for the emergency. The effect of the suspension order was immediate at the United States Embassy. United States citizens flocked there anxiously for information or in- structions. They were told to re- main in their residences until the situation had been clarified. Another development was a ommunicationh Department order shutting down all amateur radio stations. Operators of these stations were directed to dismantle sets and bring them in for an official seal. All afternoon papers Tuesday carried stories of the decree, but there were no editorials about it. ImpaCto, whose entire edition was seized Tuesday morning, came out yesterday. The Gov- ernment paper, Nuestro Diario, appeared with several blank col- N. LILT. JUN 11 Issi Guatemalan Exiles Charge Government Readies 'Plot' By Wireless to the Herald Tribune Copyright, 104, N. Y. /braid Tribune Inc. TEGUCIGALPA, Honduras, June 10.?Responsible sources in the anti-Communist movement of Guatemalan exiles here told today about a purported propa- ganda plot in Guatemala de- signed to label the United States as a fomenter of revolutions. According to these reports, the propaganda plot has the backing of the Communist-influenced Guatemalan. government and in- volves also the American-owned United Fruit Co. in Guatemala. This is the scheme, according to the. informants here: The Guatemalan government on Fri- day will announce the "discov- ery" of a cache of military sup- plies on United Fruit property in Guatemala. V5ith the arms Will be fake documents purporting to show that the materiel was im- ported by the United States gov- ernment ant United Fruit and A theory being widely circu- lated is that the Government acted because it was hard pressed by the opposition abroadi and felt it -must have complete control at home to be tree to strike back. This opposition is centered largely in Honduras. Chile Web:mines Parley SANTIAGO, Chile, June 10 UP)?The Foreign Office said to- day that Chile had accepted a United States suggestion that a conference of American foreign ministers be held to examine the situation in Guatemala. ? Honduras Rejects Pact Bid Special to The Na,, York Times, TEGUCIGALPA, Honduras, June 10?Honduras rejected to- day Guatemala's proposal for a nonaggression pact. She said such a pact would be viewed with concern by the other Central American republics. The added that existing international and inter-American treaties guaran- teed cordial relations. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 labeled "replacement machi- nery." This is to be advanced by the Guatemalan government as "proof" that the United States is helping anti-Communist ele- ments in Guatemala in an effort to overthrow by force the gov- ernment of President Jacob? Arbenz. [A New York source in close touch with the Guatemalan situation said some details of the purported plot were broad- cast a week ago by the clandestine anti-Communist ra- dio in Guatemala. The broad- cast did not Mention June 11 as the date for the plot.] Meanwhile, Honduras today formally rejected a Guatemalan offer of a treaty of "friendship and non-aggression Made May 27. Foreign Minister Guillermo Tiriello said in a note that exist- ing international pacas cover the situation. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Wash. Post $LTimes JUN 12 1454 JUN 1 2 1954 GUATEMALA ACTS Mexico Would join TO DISPEL RUMORS Guatemala Study By Laurance F. Stuntz MEXICO CITY, June 11 US.? Mexico?a chief critic of United States efforts to fight commu- nism in the Americas?stood ready today to join in a hemi- spheric study of charges that the Reds boss neighboring Guatemala. Acting Foreign Minister Jose Gorostiza announced last night his government would go along with the "general sentiment" among the American republics for such a review. Since Mexico has been one of Guatemala's stanchest defend- ers, her consent virtually as- sured the holding of an Inter- American conference to find out what is going on in the banana- producing republic 1000 miles northwest of the Panama Canal. Gorostiza's statement retailed that under the Rio de Janeiro Defense Pact any country is en- titled to ask for a meeting to discuss defense matters. Thus, he said, Mexico "Is in accord" with recent informal proposals for a session. There was no indication yet who Would call the conference. Secretary of State John Foster Dulles told newsmen in Wash- ington this week that the United States favors such a meeting to discuss the Guate- malan situation. But the United States, conscious of traditional Latin-American aversion to "pressure" from the big north- ern neighbor, would like to see another of the republics take the lead. . At the Inter-American Con- ference in Caracas last March Mexico was one of three calm- _ ties which did not support United States sponsored resolu tion condemning Red inffitra lion in the Americas. She ab stained along with Argentina Guatemala voted against it. ? The United States argued that establishment of a Com- munist government in the Americas was intervention from pbroad, to be combatted under the terms of the Rio Defense Tact. - Mexico's Foreign Minister Luis Padillo Nervo argued that c un ry s own affair if It wanted to set up a Red gov- ernment. The apparent reversal of this policy by last night's announce ment raised speculation here about Padilla Nervo's future The Foreign Minister has not been at his office for the past week and is reported suffering from "nervous exhaustion." American concern over Com- munist influence in Guatemala came to a head last month when the Latin American re- public on Mexico's southern border received 10 million dol- lars worth of arms shipped from Red Poland. The United States promptly increased arms aid to neighboring Nicaragua and Honduras. Guatemala countered by of- fering a friendship and .non- aggression pact to Honduras, her immediate southern neigh- bor. The Hondurans announced yesterday they have turned I down the bid. Press and Radio Deny Arrest of High Officers and Alleged Disappearance of Planes By PAUL P. KENNEDY Special to The New York Times. GUATEMALA, June 1.1 ? A drive against rumors that have - been gathering momentum here in recent days has been launched by the press and radio. For the first time since consti- tutional guarantees were sus- pended on Tuesday the Govern- ment has acknowledged the ex- istence of rumors that have been going the rounds on the streets and in cafes.. Heretofore the publicizing of their existence has been frowned upon by the official censorship. Two appraches directed toward dispelling of these rumors were made last night by the Govern- ment's organ Guardia Judicial. The Guardia Judicial message was ? published and broadcast last night at the request of the Sec- retary of the Press and Propa- ganda and fhe Censorship chief. The message stated that "in view of a series of rumors that have been manufactured by the ene- mies of the revolution and of na- tional tranquility the Guardia Judicial considers it its duty to contradict them in order to re- Store tranquility among our citizens." The Guardia Judicial bulletin mentioned two of the most prom- inent rumors racing through the capital in the last day's bulletin stated that "rumors have said that because of the suspension of Some constitutional guarantees the chief of the armed forces, the Army Chief of Staff and Col. El- fego Monzon, Minister without Portfolio, have all been arrested." These rumors, the bulletin stated, "are completely false and the of- ficials mentioned are at their re- spective offices." In the second instance the bul- letin said it had been rumored "that air force planes flown re- cently in the line of duty had dis- appeared from the country with their pilots. "This rumor also," the bulletin declared, "lacks truth and the pilots are now performing their normal functions." A. decree canceling flights of all private planes was made pub- lic today. The decree states that authori- zations and permissions for all private planes, whether sport or commercial planes, to fly in Gua- temalan territory have been with- Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 drawn. All flying fields in the national territory and private airstrips be- longing to private persons, or sports organizations, or commer- cial firms, henceforth will oper- ate under the )strict control and vigilance of the army air forde, the decree says. The decree further regulates entry and eXit procedures for in- ternational comtnercial lines, which generally are excepted from the foregoing articles. It also places the implementation of the decree under the chief of staff of the army. Cuba to Join Parley Special to The New York Times. HAVANA, June 11?Cuba is ready to discuss the Guatemalan situation with other American nations and will attend a meet- ing of the American foreign min- isters when called by the council of the Organization of American States, Dr .Miguel Angel Campa, Minister of State, said today. The feeling of the Government that Guatemala constitutes a Communist threat in the hemi- sphere was emphasized by Er- nesto de la Fe, Minister Withotit Portfolio in a broadcast today. "Guatemala at this time rep- resents the tentacle through which Russia wishes to suck the liberty of America," he said. Meanwhile the resurgence of Communist influence in Cuba is being viewed with concern by Government, industrial and la- bor circles and repressive meas- ures have been enacted. President Fulgencio Batista conceded recently that "Commu- nism is gaining ground." Last night the Cabinet pro- hibited the issuance of passports to any persons attemptin; t visit countries behind the Iron Curtain or to attend internation- aauscpoincefesr.ences under Communist The Ministry of Education has begun the dismissal of Commu- nist teachers and professors and other departments of Govern- ment are preparing dismissals, Approved For Reese 2000/05/03 : CIA-RDP62-00865R0GIO800200002-7 ti:;61NRIT5 1954 U.S. Flyer Menaced in Honduras By Wireless to the Herald Tribune Copyright. 1954, N.Y. Herald Tribune Inc TEGUCIGALPA, Honduras, June 12,?An American pilot, Capt. L. J. Carlin, of Miami, re- later today what he described as a "close call" from b,ostile na- tives in the Honoduras north- coast strike zone Thursday when his plane crashed in a strike- bound banana plantation. I Capt. Carlin said he was fer- rying a new plane from Miami ?to El Salvador but was forced to detour around Guatemala due to the present ban on foreign aircraft flying over the country. The detour took him' out over the Caribbean and to the coast ,of Honduras where he ran out of gas and crashlanded in the strikebound United Fruit Co. plantation near Puerto Cortes. The plane nosed over, and Capt. Carlin was shaken but un- hurt. "The plane was immedi- ately, surrounded by hundreds of hostile and grim-looking natives," Capt. Carlin stated. "They apparently thought I was a Communist from Guatemala, and they certainly were un- friendly but did not actually put their hands on me." ? Plane Landings Reported Guatemalan planes have been recently repprted landing in re- /note sectimis of the Honduras -strike zone with Communist .literature and strike agitators. The strikers?of whom there are ?25,000?assert they are elimin- !Ming any Communist influence. Capt. Carlin said police ar- rived and took him into custody ."for my own protection, they said, but they sure acted as though I was an international Communist spy."' He spent two days in Puerto Cortes jail be- fore his identification was con- firmed and he was released. Capt. Carlin, who left for Miami by commercial plane to- day, said his plane could be repaired but that he had no plans to treturn "until that strike is over and they learn to tell a Communist froma non- Communist." Wjatsit. IE.. 4Star Guatemala and the Americas Guatemala's extremely leftist government has now ordered a 30-day suspension of all con- stitutional guarantees. In effect, this means that freedom of the press and other civil rights affecting individual and group liberties have ceased to exist in the country for the time being. It could also mean something more ominous and permanent than that?something serving as a prelude to a Communist coup. The staging of such a coup is a very real possibility. Indeed, tIA government itself? since it is already strongly influenced by them ?might connive in turning over full control to the Communists. They are riding high down there, and the recent arms shipment from Red Poland has very probably given them a great deal of additional strength. Accordingly, now that I' ,e constitution has been suspended, they may move out in the open to take over the whole of Guatemala for the greater honor and glory of the Kremlin. And if that happens, then Honduras and other neighboring states will be threatened with serious trouble. The situation is thus. one that calls for the kind of hemi- spheric meeting that Secretary of State Dulles has just said he favors?a meeting of the for- eign ministers of all the Americas. Such a get-together?expected to begist in , July?will be altogether in order because Guate- mala seems definitely in danger of becoming a captive of international communism?a captive that would quickly be a menace to its neighbors. The Rio de Janeiro pact and the Caracas decla- ration provide for common action to cope with any threats of that kind, and the inter-Vimeri- can community should not hesitate to invoke them if need be. N.Y. Times JUN 1 a 1954 GUATEMALAN PACT ENDS FRUIT STRIKE Accord, Increasing Pay, Aids Country?More Political Exiles Are Departing Special to The New York Times. GUATEMALA, June 12?A United Fruit Company official said today that an agreement had been reached with workers to end the strike that began May 20. The strike had virtually para- lyzed the company's Atlantic Coast plantations, affecting 2,000 acres cultivated to bananas and abaca or hemp plant. About 4,000 men were affected. The settlement was reached through mediation by Roberto Fanjul, Minister of Economy. Under the new two-year working agreement, 60 per cent of the laborers will reoeive an immedi- ate daily wage rise of 28 cents. Workers earping between $1.64 and $4 a day will get 15 per cent Increases, and higher salaried workers will get a 7 per cent rise. The agreement will be retroac- tive to May 20, so that the com- pany will pay the strikers full wages for the time of the work stoppage. Other benefits granted include improved housing, insurance and social security. Labor Must Ratify The agreement was signed last night by management and union officials in the presence of carlos Manuel Pellecer, Communist Con- gressman representing the Guate- malan Confederation of Labor, which supervised the strike. The agreement still requires ratifica- tion in a general assembly of the laborers. Workers are expect- ed to return to work Monday. The company estimates a week- ly loss of 15,000 stems of bananas during the strike. Eleven persons who had sought political asylum in the Embassies Approved For Release 2000/05/03 : CIA-RDP62-00865R00030020 00117Salvador and Ecuador in Con A" ? Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200W-7 Noe recent data leave duate- mala today under safe-conduct passes granted by the Foreign Office. This brought the total of such persons leaving the country to about twenty since the an- nouncement by the Government of the discovery of a plot to overthrow the regime. Col. Miguel Mendoza Azurdia, a Presidential candidate in the 1950 elections and a brother ,of Rodolfo Mendoza Azurdia, who fled the country to El Salvador in a bortowed plane last week, was among those who sought asylum. Others are Capt. Rodolfo Rodas, Capt. Augustin Castro Monzon, Jos?orales Torres, Err nesto Gomez Savedra, Flavio Segura Ruiz, Maj. Enrique Trini- dad Oliya, Aden Manrique Rios, Carlos Alberto Recinos, Juan Fer- min Valladares and Rodolfo Cas- tubo Armas. None was active in military service. The Foreign Office denied that the Government was exercising control over exit visas or pas- ports. No restrictions have been decreed about granting visas to citizens or foreigners wishing to leave Guatemala, a Foreign Of- fice spokesman said. The rumoredl restriction stemmed from a Gov- ernment decree last Tuesday 'sus- pending several constitutional guarantees for thirty days be- cause of a "national emergency." In Guatemala by political foes of President Jacobo Arbenz Guz- man was joined openly today by another station in a near-by country and one in the Domini- can Republic in predicting that, the uprising might come next' week. Parley Call Expected Special to The New York Times. WASHINGTON, June 12?The United States is expected to issue a call next week for a special hemispheric conference of foreign ministers on the ?threat of Com- munist-infiltrated Guatemala. A tentative draft of a resolu- tion designed for consideration by the ministers, it is understood, would exhort the people of Guate- mala to rid their country of Com- munist influence. To avoid doing anything that would resemble intervention, the resolution would not seek any diplomatic or economic action against Guatemala except what the Guatemalans themselves might take. Because the State ,Department has all but decided on that course of action, rather than on more drastic measures, it has ap- parently won the support of the other American republics excepts Guatemala. Consultations have been going on between the United States and those states since the ar- rival at Guatemala of about 1900, tons of arms from the Polish port of Stettin, behind the Iron Two Policemen Killed GUATEMALA, June 12 (tIP)? Villagers killed two. policemen and routed others when officers tried to arrest an opposition leader yesterday in Amatitlan, it was reported today. Col. Rogelio Cruz, director ef the civil guard, said the deputy chief of the detachment stationed 'in the town, nineteen miles southwest of here, and a guards- curtain. man had been killed by "thirty Washington sources suggest men armed with machetes." that the foreign ministers' con- Colonel Cruz did not identify the ference would probably be held anti-government "plotter." Nu- early in July, but other diplo- merous opposition leaders have matic informants mention June ' been arrested in the last two 28 as the tentative date. Monte- weeks in a reported conspiracy. video, Uruguay, is mentioned most often as the probable site. Exodus to El Salvador What has also impressed the SAN SALVADOR, June, 12 UP) American republics, t is under- arrived stood, is the earnestness with ?Jittery Guatemalans today in a general exodus of which the United States has pre- wives and children of foreigners, pared its case against Guate- of wealthy Guatemalans and mala, a case that, despite a even of some Guatemalan of fi- fairly skeptical reception at the start, has won wide support. cials. It is expected that the United They reported that rumors of revolt fill the air in Guatemala.1 States will propose a resolution To the man in the street, they against communism in G1iate- 1 mala under the terms of the declared, the big question was not whether but when a revolu- Inter-American Treaty of Re- tion would start.Rio de Janeiro in ciprocal Assistance, signed at Lol The clApptivir etrincypERMas bwaap6 N.Y. Times JUN 1 4 1954 GUATEMALA HELD RIPE FOR REVOLT Leader of Exiles Says 90% ef .People Are Ready to Rise Against Regime TEGUCIGALPA, Honduras, June 13 ,UP)?Guatemalan exiles, eager for their country to throw off its leftist government, say 1954 is "the year of independence from Russian imperialism." Their leader is a 40-year-old, slender, soft-spoken former lieu- tenant colonel in the Guatemalan Army, Carlos Castillo Armas. Ie calls his resistance movement the Anti-Communist Front of Guate- malans in exile. Colonel Castillo Armes. keeps silent on any plans he may have to end the regime of Guatemalan President Jacobo Arbenz Guz- man. But he said in an interview that a "tiny spark" of uprising within the country could trigger a revolt of the entire resistance organization, both inside and out- side Guatemala. People Held Ready to Rise "I am certain that 90 per cent of the people in Guatemala are thoroughly ready to rise up and fight against the government," Colonel Castillo Armas said. "I think one of the reasons the Arbenz Government bought arms from the Communists is to pro- tect itself from a revolution by the people." He was referring to a recent shipment of arms from Commu- nist-governed Poland that pro- voked a sharp protest by Wash- ington. Asked if his forces had arms, he replied with a smile: "that is our secret." Guatemalan officials say they attach no importance to Colonel Castillo Armas. But his followers call him the Government's No. 1 enemy in exile. He says the Guatemalan Government has in- spired several attempts to kidnap 2-00865R000300200002-7 or kill him. The main propaganda weapons in the exiles' control are a roving radio station inside Guatemala that has to keep moving to escape detection, two stations in Hon- duras broadcasting across the border, three newspapers in Honduras and one each in Mexico and El Salvador. 7 Dead In Guatemala Clash Special to The New York Times. GUATEMALA, June 13?Seven persons are dead, one seriously wounded and many are under arrest following an armed clash in the village of El Durazno, twenty-four miles from the cap- ital, between Civil Guards and villagers. A bulletin released today by the Civil Guard said the clash occurred when a guard unit sought to arrest several villagers in a plot to overthrow the Arbenz Guzman regime. The leader of the Guard detachment, Lieut. Antonio Sanchez Gaitan, and an- other guard were among those killed. Approved For Reitte 2000/05/03 : CIA-RDP62-00865R090800200002-7 N.Y. Times JUL 1 5 1954 AID TO ARBENZ PLEDGED I Three Guatemalan Parties Issue Manifesto of Support Special to The New York Times. GUATEMALA, June 14?Three political parties supporting Presi- dent Jacobo Arbenz Guzman pub- lished today a manifesto pledging to assist this Government "in a moment in which external and internal forces are plotting to subvert the constitutional re- gime." The organizations are the Party of Revolutionary Action, Party of the Guatemalan Revolution and the Labor party, which is actually the Communist party. The manifesto referred to so- cial reforms gained by the ad- ministration, It said the three parties had an interest in "main- taining the unity of the popular forces" and to explain "the mo- tives through which amalga- mated, imperialistic monopolies, principally the United Fruit Com- pany, with their feudal land man- agement" maintained their poli- cies. It described unidentified for- eign investment companies as "dis- qualified elements which, through tne years, have gained their ends by inhuman exploitation, by deny- ing our sovereignty and by dic- tatorial oppression." , The document accused the "enemies" of Guatemala of hav- ing found a "pretext" at the tenth Inter-American Conference at Caracas, Venezuela, last March for "presenting an accusation against this nation." This is "believed to have been indirectly responsible for the de- barkation recently of arms in Puerto Barrios," the manifesto declared. It held that the United States was using the arms ship- ment as a lever to convene the American states. On Friday, two labor confeder- ations issued a joint resolution .callint, on members to become active In their support of the iregime. They were the General 'Confederation of Workers and , the General Confederation of ' Peasants. N.Y. Times JUN 1 5 1954 Shells for Guatemala Held At Hamburg Under Inquiry Special to The New York Times. BONN, Germany, June 14?The United States announced today that six tons of anti-aircraft shells in 'transit from Switz- erland to Guatemala had been intercepted in Hamburg. German ;port police, acting with United States and British authorities, prevented the loading of the 20-mm. shells aboard the Ham- burg-American line freighter Coburg about May 20. sisted today that the ammunition destined for Guatemala was live, although a port representative said it had been marked "dummy ammunition," meaning that the shells were without explosives. The confusion apparently was An official of the United States cleared up in Berne, where Swiss saidl chased a quantity of 20-mm. High Commissioner's Commissioner's office officials said Guatemala had pur- the documents that accompanied the shipment were in perfect or- der. The (' lents described the, contents of six packing cases andl covered shipment from Basel,; Switzerland, to ?the free port of Hamburg. The official explained that the shipment was legitimate export and therefore had been detained but not confiscated. An investiga- tion is continuing. [Washington has rejected Guatemala's proposal for a con- ference to study "all causes of tension" between the two coun- tries.] The legal authority of the oc- cupying powers in connection with the shipment is not clear, since no fraud by the shipper was indicated. Occupation au- thorities are empowered only to seize weapons and munitions manufactured in Germany. It was believed the port police would probably have to release the shipment if the consigner were to decide to transship the ammunition through another country. aircraft shells with cheap prac- tice heads several months ago.1 They added that such shells had been made for a pre-war type of gun, were not high explosives and could not pierce armor. United States action in re- questing the Germans to hold up the ammunition appeared in line with a policy of alertness that Washington has maintained since an arms shipment from Czecho- slovakia reached Guatemala last month. Hamburg is in the British oc- cupation zone. A spokesman for the British consulate said Ham- burg-American's refusal to for- ward the cargo to Guatemala had come after a discussion with Bri- tish authrities "in which our [the British and American] view was made known to,the company au- thorities." On Central American Run The 2,399-ton Coburg sailed from Hamburg May 30 for Bar- ranquilla, Colombia. The 311-foot motor vessel was scheduled to call at Venezuelan, Colombian Shells Pre-War Type and Netherlands West Indies HAMBURG, Germany, June 14 ports, according to shipping cir- GT1?United States officials in- cies in New York. On her previous voyage the vessel, employed in the line's ser- vices to Central America, called at Pacific Central American 'ports, among them Sall Jose de Guatemala. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For Release 2000/W3 : CIA-RDP62-00865R0003002000Q2 ?lice:kilo 14,1y Naws %lune 1151-i CAN'T BE BLUFFED Gentle Archbishop Leads Fight on Guatemala Reds Communists' Aims Stymied ily Prelate's Hold on People BY EDWIN A. LAHEY Daily News Foreign service GUATEMALA CITY?The .small band of tightly knit Communists in Guatemala bare their fangs occasionally in episodes that might herald the coming of a police state. But they also show a cautious regard for the anti-Commu- nist forces in this little republic, and tread gingerly In dan- gerous social zones. The most powerful single anti-Communist force in the country today .is a slender, 64-year-old man, whose ascetic gentleness belies not only his courage but his defensive power against Reds. He is the Most Rev. Don Mariano Rossell y Arellano, beloved 'Archbishop of Guate- mala, to whom the Commu- nists behind the scenes of gov- ernment would like to give the Cardinal Mindszenty treat- ment if they thought they could get away with it. ? * * ARCHBISHOP Rossell y Arellano has been threatened with physical violence and with exile from his native Guatemala, but he has called every bluff, official or unoffi- cial, with increased toughness on his part. As recently as Palm Sun- day in early April, the Arch- bishop challenged the Commu- nist influence in Guatemala with a vigorously anti-commu- nist pastoral letter, of which 460,000 copies have already been distributed through the country. "Com munist propaganda has reached the most remote corners of Guatemala," the -- Archbishop said, "and has spread its ugly seed in many Places." In the strongest terms, the Catholic prelate denounced "the castoffs of other coun- tries who have paid for the hospitality of Guatemala by spreading class hatred to pre- pare for the hour of national assassination." * ? ? THE ARCHBISHOP called upon all Catholics in this Catholic nation, especially the workers and peasants, to fight against "Communism's hypo- critical and criminal intrusion into the social life of Guate- mala." The ieftwing press in Guate- mala exiiressed mild criticism of this pastoral letter, and the leftwing political parties that control the government pre- tended to ignore the letter, but they were furious at the Archbishop. The pro-Communists and professed Communists are re- strained from silencing the Archbishop because of his deep hold on the sentiments of the people. * * * THREE TIMES, between 1944 and 1951, in the first years of the "revolution," there were discussions in the government about exiling the , Archbishop, but the proposal never came to a head. "The wise ones knew that if they touched him they would be sunk," an inter- preter explained during an interview with the Arch- bishop in his palace, which looks across the main plaza of Guatemala City at the government palace. In February, 1953, govern- ment officials, under the goading of party leaders, ap- parently decided to exile the Archbishop and get it over with. "I had been threatened so many times before, I paid no attention to this report when it came to us," the Arch- bishop said through our in- terpreter. "But the word spread in the streets, and the people came to the Archbishop's pal- ace. The women from the market nearby came first, and said they would defend us. They slept in front of the palace all night." ? * * THE STATE police head fi- nally came over to assure the Archbishop that the govern- ment war. not going to exile him. The police chief did not dare to enter the front of the Archepiscopal palace through the mass picket line, but made his entrance through the rear instead. There is an ostensible free- dom of press in Guatemala, and some of the newspapers Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 criticize the government free- ly. But not more than 25 per cent of the people can read, so the written word is not re- garded by the Reds as a threat to their influence among the peasants, or "cam- pesinos." ? * * THE RADIO reaches these people, however, and the Gua- temalan radio stations have learned that it is unwise to specialize in anti-Communist programs. A few weeks ago four masked thugs entered a down- town radio station which had a daily anti-Communist pro- gram, and wrecked the place. Shortly after this radio sta- tion had its equipment broken up by the unidentified thugs, another radio station in Gua- temala City prudently discon- tinued using the program of one of its news commentators, who was consistently anti- Communist. * * * A CLANDESTINE radio has been set up somewhere near ? Guatemala, and blasts the government daily with charges of Communist domi- nation. The radio, which calls itself "The Voice of Liberation," recently claimed credit for the "army of liberation" for the dynamiting of a train car- rying arms from Puerto Bar- rios to Guatemala City. 45 Approved For Itlikase 2000/05/03 : CIA-RDP62-00865RIN,0300200002-7 dash. EvenIntstar JUN 1 9 Mgr Glitemall4ests Itimore Reporter NJ. Times JUN 1 6 1954 'DULLES 'PICTURES GUATEMALAN FEAR Says People Would Clean Up Country if Red Terror Could Be Overcome Special to The New York Timm WASHINGTON, June 15?Sec- retary of State Dulles said today that the "Communist type of ter- rorism" in Guatemala was all that stood in the way of an anti- Communist house-cleaning by the Guatemalan people. The ,Secretary, at a news con- ference, said the State Depart- ment had no information about Guatemala "from a clearly de- pendable source," but he added that "no doubt there is going on somewhat of a reign of terror." His reference to a lack of de- pendable information was taken to mean that, in view of guate- mala's tense political situation,j normally reliable sources of in- formation, had been closed even to John? E. Peurifoy,. United States Ambassador. Hopeful About People "There is no doubt, in my opin- ion, but what the great majority of the Guatemalan people have both the desire and the capability of cleaning their own house," Mr. Dulles said. "But of course, those things are difficult in the face of the Communist type of terrorism which is manifesting itself in 24uatemala, and which is perhaps most dramatically expressed by the statement of one Communist member of the Guatemalan Con- gress that if there was a dis- turbance, that would mark the beginning of a beheading of allr anti-Communist elements in Gua- temala. "I am confident that the great majority of the Guatemalan peo- ple do not want that state of affairs." The Secretary's remarks were in response to_a_cruestion about a report that GUatemalan Army officers had delivred an ulti- matum to President Jacobo Ar- benz Guzmar to break with com- munism or resign. Mr. Dulles disclaimed any first- hand knowledge of the report, al- though he said the State Depart- ment had also heard it. ? He was asked, too, about re- ports that the United States9 would use tomorrow's meeting o?f the Council cAlip1115WIL1AS110 By the Associated BALTIMORE, June 19.?Staff Correspondent Patrick Skene Catling of the Baltimore Sun re- ported from Guatemala today that he and another American newspaperman had been ar- rested and held for a short time by "Communist-prodded nolice " Mr. Catling, in a front-page dispatch, identified the other newsman as Tom Gerber of he Boston Traveler. He said: "We had been taking pictures at the scheduled scene of a loyalty demonstration for President Jacob Arbenz?a dem- onstration which, of course, was called off because of the news that the cciuntry was at war. "Before long we were spotted by Victu. Gutierrez, Guatemala's The report said that eighty No. 1 Communist. Aithough not army heads had invited the Presi- officially connected with either dent to meet with them and that NN.Y. Times JUN 1 6 1954 Pd SAID To President Arbenz Reported Asked toe a Flit Decision on Policy Toward Reds , Special to pe New, York Times. MEXICO, June 15?The Guate- malan Army was reported here today to have called on President Jacob? Arbenz Girzinan to make a firm decision on governmental policy toivard communism. the government or the police, the sallow-faced, shabbily dresser./ Gutierrez ordered a spic-and- span police sergeant to put us under arrest." , of American States to call for an inter-American foreign.minis- ters' conference on the Guate- malan situation. Tells of Exchange of Views He could not confirm that re- port, either, Mr. Dulles said, but that does not mean it is untrue. He explained that the United States had been exchanging views with the other American states on the possibility of such a meet- ing, but he did not know whether at their meeting had submitted to him a list of questions regarding administration policy. According to the report, the President asked until some time this week to give his replies. The report came from a source whose ability to obsebe the Government's activities is un- questioned, according to visitors. [This news threw a different light on reports in Washington Monday night that the Guate- malan Army had given an ulti- matum to President Arbenz to break with the Communists or resign. Secretary of State Dulles said in Washington the question would be raised at Tuesday that the State Depart- the council session. hent had heard about the ulti- Speculation persists, however, matum reports, but that he had that the United States is ready to propose the meeting in view of no first-hand knowledge of the support it has received from their basis. He said the "Com almost all of the Latin-American munist type of terrorism" in governments. It is believed that Guatemala was all that stood the conference may open as early in the way of aNanti-Commu- as June 28. nis,t house-cleaning by the rie0- It is understood that the United States position has gained sub- pie of that country.) stantial strength since Washing- This week could be a decisive ton first reported, with some con- one in the Arbenz administration, cerq, the shipment of about 1,900 travelers arriving front pirate- tons of arms to Guatemala early mala said. Tension has been build- last month. Mr. Dulles said the arms ship- ing up at such a rate in the coun- ment greatly exceeded Guate- try that there seems to be little mala's legitimate defense needs more capacity to maintain pres- and had given the Communist- sure without some sort of solu- infiltrated country military su- tion. periority in Central America. Except for Costa Rica and This tension is indicated not only in the activity of the oppo- sition, but in the 'proportionately Nicaragua, there appeared to be little imedmiate support for the United Stites expressions of stepped up activity of th Gov- ficial tabulation listed 325 politi- cal arrests in the city of Guatemala alone. Travelers reported that the Guatemalan police were *operat- ing in plainclothes and using jeeps. Official police cars are rarely seen is political arreats, they said. ? ' `? It wa- reported that rite body of a min who had disappeared Friday was delivered to his family this morning. The police said that the man, who obviously had been beaten to death, was a suicide. The family suspected that the man had been seized on political suspicion. Responsible observers in Guate- mala were said to suspect that the regime was indicating des- peration by the mass arrtsts. This has become apparent, par- ticularly in lwallit censorship, the reginie was displaying des- peration in the mass arrests. This has become apparent, par- ticularly in press censorship, which began in chaos, settled temporarily into something de- scribed as reasonable and then leaned more and more toward total irresponsibility, according tolreports from Guatemala. One correspondent in Guate- mala complained to a visitor that among the items deleted was a comment that the Guatemalan press was paying particular at- tention to the forthcoming Marci- ano-Charles heayyweight cham- pionship bout. The effects of suspension of constitutional guarantees were described as becoming more pro- nounced daily. Several articles in the Constitution guaranteeing basic fr,gedoms were suspended last week in what was officially termed "a national crisis." Homes Are Invaded Suspension of guarantees, for the most part, was a legalization of practices that had been in force many days before the for- mal act was taken. Homes were invaded and arrests made with- out warrant and informal gath- erings were broken up. According to travelers from Guatemala, the present custom of talking softly and looking over one's shoulders dates to last Tues- day when suspension of civil rights was officially announced. Events have moved with greater tempo since. All political parties and groups supporting the Administration have warned their members in published man- ifestos of "grave" disaffections Iktie 2000/05/03: CIA-R6P82408:65R8803G0e2E104102-7 4/1 111810" Approved For Release_2000/05/03 : CIA RDR62-00865R000300200002-7 throughout tb.e country and urged them to close ranks and fight off attempts to overthrow the Government. While these manifestos were printed in the Guatamelan press, foreign Correspondents were pro- hibited from sending reports on them, informants said. During this build-up of tension, Leonardo Castillo Flores, sec- retary geheral of the Commu- nisted-infiltrated National Con- federation of Peasants, issued mobilization notices to the mem- bership. These notices were inter- preted by the press, which then was independent, as the first step' toward a civilian army. Senor Castillo denied this em- phatically, but visitors from Guatemala cited credible reports that peasants were being armed by the Civil Guard. Many believe that the spark to ignite an explosion was given off in the town of El Durazno in the jurisdiction of Amatitlan, near the capital. Seven persons, in- cluding two civil guards, were :killed in a clash there when guards attempted to arrest anti- Communists. Two guards were slashed to death and five civilians were rounded up by reinforce- ments from the capital and executed. This incident is having a pro- found effect on civilian in the capital, according to reports. Exile Chief Vows Return TEGUCIGALPA, Honduras, June 15 (1P)?An exiled Guate- malan leader said today he would return "very shortly" to Guate- mala. A showdown there between the army and the leftist Govern- ment of President Jacobo Arbenz seemed imminent. Carlos Castillo Armes, former Guatemalan Army officer who heads the resistance movement here, issued a statement ad- dressed to his compatriots. He told them to "have faith and con- fidence that I shall be with you very shortly." A broadcast by the Guatemalan Governrnent radio, heard here to- day, denied "categorically" the report of the army ultimatum. It said: "Now , more than ever, the army and people of Guatemala offer their support" to the President. Germans Bar Arms Cargo HAMBURG, Germany, June 15 UP)?German officials said today that six tons of Swiss anti-air- craft ammunition consigned to Guatemala, but held up here at the request of the United States, Approved For Re Wash. Past JUN 16 195f Czech Reds Shipped Guns To Guatemala I BONN, Germany, June 15 (18. Communist Czechoslovakia shipped 100 pistols through the German port of Hamburg in March to Guatemala, American High Commission officials said today. The pistol shipment was made two months before the United States disclosed that the Communist Czechs had shipped 2000 tons of assorted infantry weapons from the Polish port of Stettin to Puerto Barrios, Guatemala. The United States accuses the Guatemala government of having Commu- nist sympathies. Yesterday the High Commis- sion disclosed that American, British and West German agents had intercepted in Ham: burg 8 tons of Swiss 20- millimeter antiaircraft train- ing ammunition destined for Guatemala. would be returned to the shipper. The shipper's name was not dis- closed. The officials said the German Shipping Association had agreed not to carry such cargoes in the Ii future. lease 2000/05/03 : CIA-RD 13 N.Y. Tunes JUN 1 7 1954 GUATEMALA SPURS PRO-REGIME UNITY AS-UNREST WIDENS Army Ultimatum to Arbenz Denied?Red Party Role in Coalition Defended By PAUL P. KENNEDY Special to The New York Times. GUATEMALA, June 16 ? Events of potential political im- portance have been piling up here within the past twenty-four hours, The Army and the Government denied that President Jacobo Ar- benz Guzman had received an ultimatuth from the armed serv- ices to resign within the twenty- four-hour period ended last night. Hardly less important was a! resolution published by the Com- munist party organ Tribuna Pop- ular in which the Guatemalan Revolutionary party strongly de- fended inclusion of the Commu- nist party in the National Demo- cratic front. This coalition of three political, parties and two labor confederations supports the regime of President Arbenz. In- terior Minister Augusto Charnaud MacDonald is chief of the Revo- lutionary party. [President Arbenz called a Cabinet meeting Wednesday to discuss political matters of "transeendent importance," the Guatemalan radio said, accord- ing to an Associate Press dis- patch from Tegucigalpa, Hon- duras.] The director of public relations far the Army Chief of Staff and the Secretary of Press and Prop- aganda for the National Palace issued a joint statement yester- day denying foreign reports that the Army had given President Arbenz an ultimatum Sunday night. The report "totally lacks truth," the statement said, add- ng: "Today more than ever the atriotic army of the National Ev'O85fOt@2O6O&27 to Citizen President Jacobo Ar- benz." [A dispatch filed from Mex- ico City Tuesday quoted re- ports dere as having said that eighty army heads had sub- mitted to President Arbenz a list of questions concerning, , Guatemalan administration policy.] National Rally Organized Daily this week the pattern of seeking unification and as much support as possible for the regime through loyalty pledges has con- tinued to expand. The Arbenz supporters hope the pattern will reach its most vigorous point Friday, when a nation-wide rally is scheduled here. The planning of this rally, at which the sponsoring committee's spokesmen have said 80,000 par- ticipants are expected, has taken on the energy and force typical of the organization of a May Day celebration. Through strict disci- pline and army-like timing, these celebrations usually are medels of mass reunion sita performance. For nearly a week the parties and organizations supporting the regime have been calling their forces into conference to consider their pain of action in what has been called in censor-passed press dispatches a "national emergen- cy" and a "thhe of crisis." The latest of these was a four- day committee meeting of the Guatemalan Revolutionary party, headed by Interior Minister Charnaud MacDonald. The meet- ing adopted a resolution that emphasized that separation of the Communists from the Gov- ernment would result in the de- struction of forces supporting the Arbenz regime. , = The objective of the "forces of reaction" is to destroy the unity' of these supporting factors, the resolution declared. It continued: "The reactionary forces know that, while the people of the dem- ocratic organiz,ation maintain their unity around their revolu- tionary government, it would be practically impossible to conquer their political power. "To reach their objective, the reactionaries insist that the cause of all difficulties can be traced to the Guatemalan Workers party [Communist] and the support this party gives the Govern- ment." These opposition forces, the &keit .g41 12 Approved For Rffitease 2000/05/03 : CIA-RDP62-00865Re180300200002-7 resolution said, "feel that the re- moval of all those [Communist] officials from Ale Government would make peace and transquil- ity prevail in Guatemala. This is completely false." Sefior Charnaud MacDonald's party ia one of three supporting the Arbenz regime, the others being the Communists and the Revolutionary Action party. The Central Committee of the latter party met late yesterday to con- sider the external and internal political situation of the country at this moment." Officials' Kin in Mexico By SYDNEY GRUSON Special to The New York Times. MEXICO CITY, June 16?The 16-year-old daughter of the President of Guatemala and the wife of a former Guatemalan for- eign minister? have arrived in Mexico. Their arrival here coincided with unconfirmed reports that President Arbenz was on the verge of resigning or of being forced out of office by a group of army officers concerned over the rise of Communist influence in Guatemala. The President's daughter, Ara- bella, was said to be en route to a school in Montreal and Sefiora Bertha Osegueda to be visiting her daughter, who lives in Mexi- co City. However? Guatemalan exiles here read into the arrivals fresh indications that President Arbenz and his close collabora- tors of the last few years might be preparing to leave Guatemala. Roberto Alvarado Fuentes, Guatemalan Ambassador to Mex- ico, arrived here yesterday. He said. "there is no truth whatso- ever" to reports that the Army had demanded President Arbenz's resignation. "I have received information from the high command of the Guatemalan armed forces," Se- fior Fuentes said, "asking me to deny categorically all informa- tion that involves the Army in political problems. I have also been asked to state that the armed forces are giving their complete support to the Govern- ment presided over by Colonel Arbenz in these trying times." The ambassador's description of Guatemala. is "tranquil and calm" was contradicted by United States travelers who reached here yesterday from Guatemala. They said a tense sit- uation that might "blow up" any minute existed there. Because of this, Pan American World Airways' regular south- ward flight to Panama was in- structed today to omit its 'regu- lar stop at -Guatemala and pro- ceed directly from Mexico City; to San Salvador. The flight plan was drawn p to avoid flying over Guatemalan territory. Pan American offices here did t not know how long the order to bypass Guatemala would remain in effect. Taca International Air- ways, which flies there four times a week from Mexico City, said its flight tomorrow morning would be made as scheduled. Information was extremely limited, but according to reports by travelers from Guatemala who reached here today, these pare- roopers were seen by an agent at a small international railway station In the San Jose section of the coast. The agent notified his chief dispatcher, who notified the police in the city of Guate- mala. There also were persistent Mexican Reds Demonstrate Meanwhile, Communist leaders in Mexico prepared a series of demonstrations in support of Guatemala and in an effort to dissuade the Mexican Govern- ment from joining the United States in the expected meeting of the Organization of American States to discuss the Guatemalan situation. The Mexican Government ab- stained from voting on an anti- communist resolution involving Guatemala at the recent inter- American conference in Caracas. But it ';as since changed its atti- tude toward the Guatemalan sit- uation and .has implied it would support an anti-Guatemalan res- olution at the projected meeting. The first of the Communist- organized demonstrations was held today. Between 200 and 300 high school and university stu- dents paraded with placards pro- claiming support of Guatemala and denouncing the United States. The authorities took no chances. They posted riot policemen armed ?with tear-gas guns through the downtown area and around a square where the students met briefly. The meeting passed off peacefully. The afternoon newspaper Ulti- mas Noticias editorially called Gen. Lazaro Cardenas an "indis- creet demagogue" for having sent telegrams of support to? the Guatemalan Government. General Cardenas is ? former President] of Mexico who expropriated for- eign oil properties here is 1938 and has remained a powerful political figure. In effect, the -newspaper told General Cardenas to mind his own business and advised him that, if he had counsel to give on international affairs to give it to the President or the Foreign Min- ister of Mexico. This is the first 1 time in most observers' memory ? that General Cardenas has been attacked this way publicly. Parachute Landings Reported Special to The New York Times. MIAMI, Fla., June 15?The landing of six paratroopers In the Pacific Coast section of Guate- mala was reported to the police there last night. reports of several arms drops in the Tiquisate area of the Pacific Coast. [Guillermo Palmieri, Guate- malan chief of tourism, said in Panama that he had learned by telephone that ammunition, not paratroopers, had been dropped and that farmers had turned it over to the Govern- ment. Sefior Palmieri has not been dismissed from office, as reported earlier.] ? The reported parachute drop was of a series of events that have been keeping Guatemala on edge for the last few days, ac- cording to reports from that country. The most .recent to arouse interest in political circles was the revelation' that 'Jose .An- tonio Palmieri, an outstanding 'anti-Communist editor, had taken poiitical asuylum in the Salva- doran embassy. Editor of the evening news- paper El Imparcial, Senor Pal- mieri is known throughout Cen- tral America as "Jap" and as a forceful writer on communism. It was considered unusual when his daily column did not appear yes- terday. He is a brother of Guillermo Palmieri, head of the National Tourist Bureau, who yesterday was read out of the Guatemalan Revolutionary party, of whicb he was secretary for press and prop- aganda. The two brothers have been at political odds since the start of the present regime. Guillermo Palmieri went to Panama Saturday to attend the Central American Tourist Con- gress. He and Alejandro Silva Falla, another secretary, were stripped of their party jobs for "having abandoned their country in a national emergency." Sedior Silva Falla, who was secretary ; of agriculture in the party, was known to have been openly criti- cal of Communist activities within the national agrarian reform movement. KA. Tim! JUN 1 7 1954 EISENHOWER SEES GUATEMALA PERIL Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 President Deplores Pressure on Reds' Foes?Bid for New Arms Stores Reported By WALTER H. WAGGONER Special to The New York Times. WASHINGTON, June 16 ? While President Eisenhower de- scribed recent developments in Guatemala as very disturbing, the State Department paid today that the Communist-dominated government there had been try- ng to buy large quantities of ;military vehicles, aircraft and ammunition. The State Department's dis- closure followed by only a few hours the President's news con- ference remarks deploring the suspension of constitutional rights and the arrest of anti- Communists in Guatemala. The State Department said it was "significant" that Guatemala has been especially interested in buyin gmachine guns, automatic rifles and small arms. The De- partment announced last month that Guatemala had received 1,900 tons of arms from behind the Iron Curtain. Although the composition of the shipment has never been officially described, it is understood the bulk of that cargo was small arms and am- munition. The State Department added in today's statement that this dovernment was "making every effort to prevent further ship- ment of arms to that country [Guatemala] and has consulted with a number of the free world [governments] to request their, cooperation toward this end." President Deplores Actions President Eisenhower directed his comment primarily to actions being taken against the Guate- malan people, such as the arrest of some anti-Communists. Those actions, he said, form the pat- tern upon ' which the United States has looked with great dis- pleasure in more than one country. Yesterday Secretary of State John Foster Dulles charged that Guatemala was held in a "Com- munist-type" reign of terror. The President said the develop- ments in Guatemala were the sort of thing tht the recent Cara- cas anti-Communist resolution A Approved For Release 2000/e03 : CIA-RDP62-00865R000300200002; was designed to handle. That resolution, adopted at the Inter-American conference at Caracas in March, makes it pos- sible for 'the American republics to invoke the 1947 Rio de Ja- neiro Treaty of Reciprocal As- sistance or other hemispheric pacts against Communist aggres- sion or domination of the mem- ber governments. The President said the 'United States was consulting with the other Latin American countries and that the Guatemalan 'situa- tion was under the most urgent and serious study. The United States, meanwhile, is expected in the near future to call for a meeting of the Inter- American foreign ministers to try ? to develop a hemisphere-wide progress of checking the spread of communism from its foothold ?in Guatemala. Some observers had expected the United States to take the matter before the Council of the , Organization of American States, 1which met this morning. The move was not made there, but officials said the Council could be convened on a few hours, notice. It is assumed that Mr. Dulles would represent the United States at the proposed foreign ministers' conference, but if he could not attend, it would not be improper to send an alternate, authorities said. Latin Congressmen to Meet Special to The New York Times. SANTIAGO, Chile, June 16? Preparations are well advanced for a meeting here of Latin American members of Congress and other outstanding elements to discuss the Guatemala prob- lem, it was reported today. The four-day gathering is scheduled to open July 1 and it is expected to cause repercus- sions throughout the continent before the meeting of foreign ministers to discuss Communist penetration in American repub- lics, principally Guatemala. A committee of Chilean leftist I members o Congress?four sen- ators and t ine deputies?has ex- tended an , invitation to all con- gressional jbodies throughout the continent. 1 ,!5V61P 4 et r 4 1444,44 1,)1/ Anti-Reds Disappear In Guatemala `War' By Edwin A. Lahey C.D.N. Foreign Service GUATEMALA CITY, June 16. A small minority of "agrarian reformers" in one week has turned the essentially non-Com- munist Republic of Guatemala into a pretty good reproduction of a Soviet police state. Since the Communist-influ- enced government of President Jacob Arbenz Guzman sus- pended constitutional liber- ties last week, potential lead- ers of the anti-Communist uprising have been arrested by the hundreds. Some have dis- appeared. One shopkeeper, a member of a wealthy family, was ar- rested Saturday for having a store of clandestine arms in his possession. His body was returned to his family Sun- day, with an explanation from the police that he had com- mitted suicide. Another anti-Communist, married to a relative of Col. Castillo Armas, who leads the anti-Arbenz forces from his ref-. uge in Honduras, was found dead on the street near the home of United States Am- bassador John Peurifoy, an ap- parent victim of a hit and run driver. Jose A. Miranda, editor of a small anti-Communist weekly, who was arrested Saturday after police had confiscated the Friday issue of his newspaper, the Mundo Libre, has disap- peared. Police told his wife they knew nothing of Miranda's whereabouts. The Editor of El Especadore, J. A. Palmyri, critic of the Arbenz regime, has taken ref- uge in the embassy of El Sal- vador, awaiting safe passage out of Guatemala. Another; anti-Communist editor, Rafael; Escobar Aiguello of Correo de! Occidente, also has taken ref- uge there. ? Offers to Play Host MONTEVIDEO, Uruguay. June 16 I1P1.?The Uruguayan government today formally of- fered to play host to any inter- American foreign ministers' meeting held to discuss Commu- nist penetratio nM Guatemala. A Foreign Office communique welcomed proposals to hold the conference in Montevideo. It added that there has not yet been a formal request to con- vene such a meeting from any hemisphere nation as required under the 1947 Rio de Janeiro treaty. "Wash. Past JUN _1 8 1954 Exiles Say 1500 Are Held Hostage MEXICO CITY, June 17 , ? Guatemalan politic al ' exiles claimed today that more than 1500 hostages are being held in the presidential palace in Guatemala City and will be put to death the mo- ment a revolution breaks out against the present Commu- nist-tinted government. The hostages reportedly in- clude many women and chil- dren, relatives of government opponents. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 eia. pines (IN 1 8 1954 ANTI-ARBENZ MEN MOVE IN HONDURAS Open Activities of Uniformed Throngs Bring Plea for Curb .From Guatemala's Envoy TEGUCIGALPA, Honduras, June 17 UPI ? Recruits for an apparent resistance move against Guatemala's leftist government Tegucigalpa's streets in uniform today, despite a plea from the Guatemalan envoy to curb them. Foreign correspondents in the Honduran capital were impressed by the numbers of khaki-clad men in the city and gathered at the airport. Wearing no insignia, the men boarded planes without any apparent effort to hide their movements. Reports from San Pedro Sula, a banana center 110 miles northwest of Tegucigalpa and only twenty-five miles from the Guatemalan border, said the reistance forces also were mov- ing about openly there. Guatemalan Ambassador Ama- dep Chincilla urged Honduras last night to halt the movement of men and arms to points near the common border. But usually re- liable sources said Guatemalan exiles loyal to Carlos Castillo Armas, who heads the resistance movement here, still were being' airlifted toward their native country. Senor Chinchilla made his plea to Honduran Foreign Minister J. Edgardo Valenzuela. Later he told news men: "We have reports that well- equipped soldiers carrying guns are being flown and driven by car to points near our border. They are being flown in chartered planes." Reports of Friction Heard The Ambassador said Senor Valenzueia had assured him Hon- duras "will prevent any incidents at the border and has given or- ders for the seizure of any arms there." Senor Chinchilla said Col. Car- los Diaz, chief of the Guatemal- an armed forces, had told him by telephone that two planes dropped "modern arms" by parachute Monday near Tiquisate, Guate- mala, near the Pacific Coast. He said the arms had been picked up by farmers and turned over to the police. The Ambassador said many Costa Ricans and Nicaraguans Approved For Meese 2000/05/03 : CIA-RDP62-00865R010300200002-7 were believed to be "around Cas- tillo Armas." Senor Castillo Armas said his resistance movement was manned by Guatemalans, that some Costa Ricans at his headquarters were not taking an active part in it, and thta there are no Nicaragu- ans with him. Additional reports of friction between President Jacobo Arbenz Guzman and the army and of bloody clashes between the police and anti-Communists filtered through Guatemala's censership. Most significant of these was a report President Arbenz had met frequently with leading Army officesrs in the last two weeks after rumors spread the Govern-, ment would arm farm workers. Informed sources close to the President said he had been able to placate the officers. Earlier advices had said eighty officers gave the President a questionnaire last week-end call- ing on him to clarify this week his relationship with the Com- munists. Informed sources said eleven persons were killed last week in continued police round-ups of anti-Communists, at least 450 of whom are being held in the capi- tal's jails. Flight from Guatemala Special to The New York Times. NEW ORLEANS, June 17?All Indications are that the mother and two children of President Jacobo Arbenz Guzman left Guatemala by military transport plane late Tuesday night, accord- ing to visitors reaching here to- day from Guatemala. . A series of bewilderingly rapid events that has served to keep Guatemala off balance this past week seems to be leading almost certainly to a conclusion that will decide whether the present Com- munist infiltrated Guatemalan regime can survive. An opposition force within and Without the country has been gaining momentum rapidly these past few days. According to ob- servers from Guatemala, the time must come soon when the two forces must come to grips with the Government or dissolve. Arrests, Beatings, Torture Thus far, even without direct clashes, there have been mass ar- rests, brutal beatings and three known instances in which victims have been killed by authorities during or after torture. ' These events have occurred within the past twenty-four hours: flTravelers from the southwest coastal area are being searched dozens of times while en route to Guatemala City. The searches are being conducted by armed peasant groups. (iThere were drops of arms by parachute over this area, partic- ularly around the port of San Jose 'during the past three nights. tIThe Cabinet met with Presi- ent Arbenz late yesterday after- noon in an extraordinary session which was called shortly before noon. (I The number of political ar- rests have been increased dras- tically. The nearest count as of Wednesday morning was that apwards of 800 had been arrested m suspicion of political opposi- tion activity. Eighteen who sought mlitical asylum in the Salvador Embassy left the country by )lane this morning, according to ;ravelers. The flight of the military trans- mrt plane caused a sensation in Guatemala, according to visitors from there. At about six o'clock soldiers with bayoneted guns surrounded the airport and prohibited en- trance not only of the public but of airport personnel. Both Pan- american and T. A. C. A. Airline personnel were forbidden to en- ter, the visitors reported. According to the witnesses, Col: J. Arturo Mendizabal, com- manding officer of the airport, called his superior, Col. Luis A. Giron, chief of the Air Force, to ask for an explanation. He was reportedly told there would be no explanation. Shortly before ten o'clock the Presidential automobile, a black Cadillac bearing the license plate No. 1, came to the airport en- trance. It was surrounded by soldiers for some moments and then witnesses could see a large number of packages being re- moved. It seemed likely that one or more persons had entered the airport terminal while the auto- mobile was surrounded, accord- ing to witnesses. At about 10:45 P. M., the transport plane, a DC-3, took off. About five min- utes later two fighter planes took off, presumably as an escort and disappeared in a westerly di- rection. President Arbenz' mother, Senora Octavia Guzman Serra had been living at the Presiden- tial residence some tirne. The President and his wife have three children, Anabella, 14; Leonora, 12, and Jacobo, 8. The eldest has been visiting in Canada since last week. According to the visitors, Gua- temala abounds in rumors that the days of the Arbenz regime are numbered. The report of the Tuesday night plane flight am- plified these rumors to encom- pass the possibility the President and his wife had fled the coun- try. This, was discounted later in the day but as of last night Senora Arbenz had not been seen. N.Y. Times JUN 1. 9 1954 [OIL STORES BOMBED Minister Says Foreign Forces Join Exiles in an Invasion By PAUL P. KENNEDY Special to The New York Times, GUATEMALA, June 18?The battle for Guatemala is on, Foreign Minister Guillermo Toriello announced today. Speaking from his office in the National Palace, he said that un- identified planes from an un- known take-off point bombed the country's gasoline stores last, night. He did not identify the location of these stores, but it was believed one target was San Jos?major port on the south- western Pacific coast. Shortly before 10 A. M. today, word reached this correspondent that shooting had broken out in Puerto Barrioes, an East Coast port. No details were available. A half-hour later, word came that the uprising had begun in the town of Retalhuleu, about thiryt miles south of the Mexican border. [In a broadcast heard in ? Tegucigalpa, Honduras, Sefior Toriello confirmed that an in- vasion had started in Puerto Barrios and San Jose.] Minister Shows Strain Sehor Toriello began his press conference with this announce- ment: "As most of you know, Guate- mala is faced with a grave situ- ation. At this moment, our coun- try is under attack." He did not say that land forces had invaded Guatemala, but he constantly used the word "inva- sion." He said planes had in- vaded Guatemalan territory. During his explanation, Sehor Torrello continually referred to "Guatemalan exiles." When asked whether the invasion forces were composed only of Guate- malans, he replied: "There were others, including Cubans, Nica- Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 raguans, Dominicans and merce- naries." Asked whether the attackers were led by Col. Carlos Castillo Armas, exiled Guatemalan Army officer, the Minister replied: "Exactly." Sehor Toriello emphasized Guatemala's friendship with Hon- duras and exonerated that coun- try from participation in the at- tack. He spoke bitterly of Nica- ragua, especially President Aria- ,stasio ,Somoza. He charged that Nicaragua had "helped this attack" and that the ? invasion hadt,inid 'the direct as- sistance, of GeheralBomoza. Foreign elements) especially the United Fruit company, are helping the invasion and trying to establish tyranny over Gatemala, the Minister asserted. Arms Dropped by Air ? The peeple learned for the first time late yesterday that foreign unidentified planes not only had flown repeatedly over. the country without permission,, but had dropped a significant amount of arms and ammunition. Also made known in the last twenty-four hours: were the fol- lowing: qVVholesalers and retailers have been notified that further upward price adjustments of basic commodities will be punish- able. ci1Officials are considering the creation of a spe6ial police agen- cy to combat smuggling which has been increasing in the na- tional emergency. 411The Information Ministry re- vealed that the appearance of unidentified aircraft had been re- sponsible for the country's first blackout Tuesday night. The blackout caught the popu- lace completely by aurprise. It was evident that many had thought it to be simply a power failure. The drone of the planes was the conclusive clue, how- ever. According to an 'official com- ment, a plane flew over the south- ern coast Monday night and parachuted arms and ammuni- tion in the area around Tiquisate, where large United Fruit Com- pany holdings are situatedePacke ages containing the arms were quickly discovered and turned over to the civil guard, the Gov- ernment said. "Great numbers of farm workers, residents in the area, were said to have cooper- ated "with great efficiency and patriotism in the work of locat- ing and turninrover these para- chute drops." Unofficial ' reports Tuesday morning said that an agent of ("ON la Ms" Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Noe Exile. Its policies have been called the liberation of his coun- try from foreign domination and exotic doctrines. Reds Hold Vital Posts Neither Guatemala's president nor its Government is CP111111U- iiist. But the Guatemalan Work- ers' party, which is Communist, is pa'rt of the Government ctali- tion, and the president has al- lowed avowed Communists to hold important sub-Cabinet posts. In. ad4ition Guatemala recently purchased $10,000,000 worth of arms from behind the Iron Cur- tain. This purchase was protested by the United States, and Colonel Castillo Armas charged that the arms were not going to the Army but to a "fifth column that is soon to extend its radius of action against the democracies of this Continent." Colonel Castillo., Armas has been in opposition to the present reghne in Guatemala since the March, 1949, assassination of Col. Francisco Javier Arafia, then the chief of thern country's armed forces. Colonel Arafia was one of the leaders with President Arbenz of the revolution of October, 1944, that overthrew the then acting President, Frederico Ponce. Two days of riots in Guate- mala City followed the assassi- nation of Colonel . Arana, and after they were quelled Col Castillo Armas was removed from his post of chief Of the Fourth Military District. In November 1950, during the elections that made,Sefior Arbenz president, Colonel Castillo Armas was the leader of an abortive up- rising. With a force of seventy civilians he attacked the base of the First Infantry Regiment on the outskirts of the capital, and in the clash sixteen were killed and ten wounded. Colonel Castillo Armas was ar- rested and confined in the central penitentiary. In June 1951, how- ever, he succeeded in tunnelling his way 'to freedom "sand took refuge in the Colombian legation. He received a safe conduct from the Foreign Ministry and left the country. Colonel Castillo Armas will be 40 years old in November. He was born in Guatemala, was gradu- ated from the Polytechnical School and was commissioned in 1936. From July, 1945, to Febru- ary, 1946, he attended a ground and service course at Fort Leav- enworth, Kan. the International Railway Com- pany in the Tiquisate area had spotted at least six parachutes at the same time as the arms were dropped. Markings Are Described The parachuted packages were said to have contained machine gunS, automatic pistols, rifles, hand grenades and a large amount of cartridges of various caliber. The machine guns had no par- ticular markings to identify their manufacture. The cartridge belts appeared to be of a type used by the United States. The Army announcement said markings on the rifles "lead us to believe they were manufac- tured in the Soviet, Union since they bear a little circle in which is enclosed a hammer and sickle," the Government statement added. It added that apparently the arms had been directed to "groups of conspirators whb, because ,of suspension of constitutional guar- antees, have been brought under national control." The Government's statement ended by demanding that sanc- tions be brought against the country responsible for the arms drop. Meanwhile, the Confederation of Labor appealed today to "all organized labor,Avederations and democratic'forme" to attend a mass meeting arranged by the Democratic University. Front to show support for the regime of President Jacob? Arbenz Guzman. The appeal urged that it was necessary that "we give, clear and categoric answer to interial- ist Yankees and their lackeys, the feudal landowners and the great merchants, that the people of Guatemala do not intend to al- low delivery of our country to foreign powers or to take one step backward in the support of the Arbenz democratic regime." Approved N.Y. Time JUN 1 9 1954 UPRAIN PLOTTED EARLY THIS YEAR Anti-RegimeForcesH aveBeen Massing in-Honduras?U. S. Accused by Guatemala Col, Carlos Castillo Armes, a leader of the resistance move- ment in the Guatemalan armed forces, has been massing forces in Horiclura,s since early this year in preparation for an invasion. Just two, days ago, when re- ports filtered out of Guatemala that the army hadT called on President Jacob? Athena Guz- man to make 'a firm decision on his attitUde toward communism, Col. Castillo Armes told his fcil- lowers to "have faith and con- fidence and I will be with you shortly." In an effort to forestall the threatened invasion, Guatemala proposed to Honduras late last month that' the two nations Sign a pad of friendship and non- aggression. The bid followed the flight of a C-47 plane over the city of Guatemala dropping leaflets call- ing on the people to join with Col. Castillo Armas in the strug- gle against communism in Guat- emala. Guatemalan Scores Flight Guillermo Toriello, called the flight a "provocation of the ut- most gravity" and declared: "If they could drop paper leaflets one day, they, could drop other things, too." Earlier Guatemala had charged that the United States, which had protested the country's ap- parently increasing orientation toward communism, was plotting an invasion through Nicaragua. And it charged the United Fruit Company, which has large ba- nana holdings in Guatemala, with supplying arms to the plot- ters. That company had 233,973 acres of its land expropriated by the Guatemalan Government un- der a land reform program, and is facing the expropriation of 174,000 acres more. The United States has protested the com- pensation offered to the com- pany. Col. Castillo Armas calls his resistance organization, which has its headquarters in Teguci- galpa, Honduras, the Anti-Com- munist Front of Guatemalans in For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 N.Y. TWA JUN 1 9 1954 EXILE REBEL HEAD IN RADIO 'WARNING' Castillo Armas Broadcasts to Backers and to Guatemala From Honduran Center By MILTON BRACKER Special to 'The New York Time,. TEGUCIGALPA, Honduras, June 18?Headquarters of Lieut. Col. 'Carlos Castillo Armas, leader of the Guatemalan forces in ex- ile, said tonight it would have an important announcement within a few hours. In the absence of Colonel Castillo Armas, believed to have flown to join his sup- porters at an assembly point near the border, this was taken as confirmation that the invasion of Guatemala iiad begun. Earlier, Colonel Castillo Armas in a broadcast monitored here, appealed to friends in Guatemala to withdraw money from banks and to leave the lights in their houses on to guide rebel bombers through the blackout of the cap- ital city. Colonel Castillo Armas said that otherwise invading airmen could not be responsible for what they might hit in the center of the city. From Guatemala, Foreign Min- ister Guillermo Toriello in a broadcast for the Arbenz Gov- ernment, made a direct personal appeal to President Juan Manuel Galvez of Honduras to disown the Guatemalan exiles. Sailor Toriello said that Guatemala had always respected the inviola- bility of the territory of her neighbors. In another government broad- cast from Guatemala, it was said that nee had starter, presumably in Guatemala City, but the gas- oline dumps were nowhere near the flames and that there was no danger of explosion. The Guatemalan Government alio said that two planes had 6014 S Approved For Meese 2000/05/03 : CIA-RDP62-00865R650300200002-7 flown over the national capital, but had been routed by anti-air- craft fire. The National Palace is a beautiful building, of pale green stone and is noted as a landmark throughout Latin America. It contains the offices of the President and Cabinet members. The Guatemalan Ambassador to Honduras, Arnadeo received urgent instructions from Senor Toriello to protest to the Honduran Foreign Ministry and, if possible, to see President Juan Manuel Galvez. Foreign Minister J. Edgard? Valenzuela of Hbn- duras left his office this evening before the Guatemalan envby could arrange an appointment. Earlier, it was clear that the build-up, of a potential striking force of Guatemalan exiles was continuing under the noses and in plain view of Honduran offi- cials. The charter aircraft busi- ness at Toncontin airport boomed So that it was virtually impos- sible to hire a private plane: It Was confirmed that the forces of Colonel Castilla ,Arrnas had concentrated in the area be- tween Nueva Ocotepeque and Co- pan, near the Guatemalan-Hon- duran border. From either point It is only a few Miles to the border. Men from here were be- ing joined along the frontier by other exiles from El ,Salvador. The, three countries 'come to- gether just Weft of Nueva Onto- peque. ? Armarnent assembly .1:4y the rebels--some of which has been flown_ in to ,Toncontin 'iAirpert here in unmarked transports-- includes mortars. Bi-en guns and at least one flamethrower. The man who said he saw the flame- thrower in a crate at the air- port, an oldtime resident hem thought he saw the marking, ?"Veracrus." There is a tiny community by that name a few miles northeast of Nueva Oc-, topeque. " Estimates of the number of Guatemalans gathered between Nueva Ocotepeque and the Gua- temala border ranged from 300 to 5,000. Since the men were known to be converging from two countries?and possibly three to the extent that some Guatema- lans may be coming out acrose theb order -to join their compatri- ots on the Honduran side?there wag no way to fix the figure. At least aik chartered flights of DC-3 planes have left Tongon- tin with twenty-eight passengers each. A. four-place Stinson has been making at least one flight The men who pianage and fly these planes naturally do not aware of such a. threat. N.Y. Times JUN 1 9 1954 U. S. CONTACTS CUT planes had bOmhed Guatemalan icted to meet in Montevideo oil storage facilities, one infer- )(int July 1, to consider actioh mant said that appeared to be a halt the spread of communistrii "logical strike" if an invasion om Guatemala. 1 T were actually in preparation. he resolution was understood contain the following points: It is understood that Guite- vile American states reserve male's easoline and oil reserves sir right to exercise the power are severely limited, and may amount to only a two or. three- week supply. But Reports Assert the Another observer said it was reasonable, too, that an invasion Revolt Is Serious? Capital Watchful might be timed with the anti- Government uprisings. There were no indications, however, that Guatemala City had yet felt the ? unrest of the widely separated By WALTER H. WAGGONER Special to The New York Times. WASHINGTON', June 18?The State Department said this eve- ning it had information of "seri- ous uprisings" in Guatemala but had received no 'word about a bombing announced by the Guate- malan Foreign Minister. Through sources that it declined to disclose, the Department said it had learned that anti-Commu- nist uprisings were under way in Puerto Barnes, Qustzaltenango and Zacapa. "Because of these uprisings," a Department spokesman said, "our communications are not functioning as they should." Despite the difficulty of com- municating with the United States Embassy in Guatemala, Ambassador John E. Peurifoy has standing instructions, which aply to all chiefs of diplomatic missions, on the protection of American life and property. Department officials declined to comment on the Guatemalan Foreign Minister's announce- ment that his country was being bombed and that the troops were mobilized in Honduras for the invasion of Guatemala. 'Logical Strike' Seen To Fereign Minister Guillerno Toriello's statement that foreign Puerto Barrios Zacapa and Que- zaltenango. The first two are close to Guatemala's border with Hon- duras, while the third is closer to Mexico in the mountainous re- gion overlooking the Pacific. Puerto Barrios was the des- tination last month of a shipload of arms, estimated at 1,900 tons, that originated in Stettin, a port in Conimunist Poland. The big question-mark here to- night was the possible effect of the developments in Guatemala on the proposed Inter-American of search and sei re On the high seas. This right would bel zu exercised only as a I last resort after other measures to prevent arms shipments to Guatemela had failed. igThey call upon all American republics to regulfite travel ' of known Communist agents. commision to put these recom- mendations into efect. ilThey call upon the Gate- malan Government and people to rid their country of Communist subversives. , - State Department officials de- clined to confirm or deny that the draft existed, but pointed out that the Department was consulting with Latin American Governments on steps to be taken at a meeting of the Organ- ization of American States. tinder international law a country may exercise the power of search and seizure on the ,high seas by consent or if it is maintaining an effective block- ade. The declaration contained in the proposed United States, Foreign Ministers' meeting tenta- resolution would therefore coneti,-I tively scheduled for Montevideo, tute a warning that the blockade Uruguay, early next month. might ..Undertaken, There appeared to be no doubt , Peruvian Sees Eisenhower but that the uprisings, the bomb- The Peruvian Foreign Minister, ings, and the poised invasion Ricardo Rivera Schreiber, con- force in Honduras?if the report ferred with President Eisenhower this morning and later lunched with Secretary of State John Foster Dulles. The minister said later that he discussed with President Eisen- hower the problems of preserving democracy and combatting com- munism in the American hemi- sphere. With Mr. Dulles he said he discussed the possibility that the United States may increase the tariff on lead and zinc or isnit its imp "tation by quota. om Guatemala is true?could ?riously disrupt plans. for a eeting based instead on the po- "ntial threat of Guatemala to 'r neighbors. Officials declined-to speculate what the purpose of the iatemalan Foreign Minister's mouncement would be, if it is ,t true, but they emphasized at, until its own official m- irth began coming through, the .ate Department would adopt "wait and see" attitude. Right of Search Urged The State Department is seek- g the backing of Latin Ameri- a governments for a declara- of Pan American ?Airways, whith m of the right of the American has a fleet of ,ei,ght planes, con- ates to search ships on the high firms merely that it hai always as for arms destined for Gua.t- catered to charter flights at the rue& rate of $200 an hour. Latin American diplomats ,said The ground Around Nueva Oco- day that the declaration was tepeque is fairly high,- but the IA of a draft resolution, pre- valley of the Lempa,River, which 'red for the meeting of the Or- flows from Guatemala into Hon- mization of American States, duras and then into El Salvador, hich the State Department has would provide a logical invasion route_ At the same time, defend- ing iorces Would certainly be rculated among Latin Ameri- In governments. The Organf- Ltion of American States is ex- Sahsa, ate ApProvrea roiriKelease 2000/05/03 : CIA-RDP62-00865R000300200002-7 the ndu atf I Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200W-7 ILYA. T. JUN 1 9 1954 Took Credit for Reform Communists Moved Slowly And Carefuly in Guatemala Communist dominance in Gua- had already been done, and temalan politics Was not an Arevalo compounded his initial event that occurred overnight, error by allowing the Commu- although it seemed so to many Americans, and neither has it reached its ultimate goal: Com- plete, undisguised rule of Gua- temala, Latin America's most populated country. Preparation and infiltration continued to build. began after the "October Rev...^- They were ready when Jacobo lution" of 1944 when the "genial Arbenz, who had risen from cap- dictator," Gen. Jorge Ubico Cas- tai, to colonel since Ubico's re- teneda, was ungently hoisted movalo won the 1950 election and from office after thirteen years sacceeded to the presidenay on of rule. , March 15, 1951. When the Guatemalan army i 'There were, and are, relatively and? students of the National f)w Communists, but, what they University of San Carlos banded Leked in numbers, they Made together to send Gen. Casteneda-tp in determination, energy and into exile at New Orleans, a willingness to play along with revolutionary 'junta?including any plan so long as it furthered the then-Capt. Jacobo Arbenz? t ieir ultimate aim. assumed control. Land Reform President Arbenz knew he faced strong opposition in his determination to push through a country-wide program of land reform, including those prop- erties owned by the United Fruit Co., and he gladly accepted the aid of the energetic Communists. The Communists immediately The Communist Party adopted set up a Marxist indoctrination the land reform program as its school, the Escuela Claridad, to own, changed its name to the lure and train Guatemalan youth Guatemalan Labor Party, moved who knew there had been social more and more into the open, !injustice but did not know what and convinced near-starving to do about it. The school told peasants that communism, and them. communism alone, provided the In 1946, President Arevalo, his Agrarian Reform Law of June political innocence seemingly 17. 1952. wearing off, closed the school President Arbenz; also im- on the grounds that the consti- pressed, has taken more and tution forbade 'political organi- more outright Communists or zations of a foreign or interna- fellow travelers into his coalition tional character" and, in 1947 government, and anti-Commu- he exiled several Communist nist demonstrations generally leaders. The damage, however, have been dealt with severely. nists to return. Take Credit When the Congress passed the country's first social security law in 1946, the Communists quietly claimed the credit and Professor Elected ? Juan Jose Areval, a university professor who held rather-vague theories of socialism, was elected president and, with the junta's consent, declared that all politi- cal partis were welcome. ILL JournaAnuttietra Iffi I 9 lgt Guatemala's Arms Made by Czechs' 'By JOHN H. MARTIN THAT famous ten-million-dollar cargo 1. of arms shipped into Guatemala, where a Communist-backed government reigns 700 miles from the Panama Canal, has been identified as coming from Czechoslovakia. A reliable report to the Free Europe Committee says that since Jan. 1 in Czechoslovakia the Brno Armament fac- tory bas been producing pistols of a known French military pattern. One interesting part of this informa- tion is that the' copied French pistols do not bear the usual trade mark of "Made' In Czechoslovakia." The wooden crates in which the arms leave the factory at 'a rate of 10,000 weekly also are not marked except for serial numbers. These pistols have been shipped to Poland. The Free EuroPe Committee does not speculate about the eventual destina- tion of these arms, which are only one type of many turned out by experts in Czechoslovakia. But the implication seems clear that some of these arms are going to Guate- mala, where early last night the anti- Reds invaded the country. The United States, not Guatemala, first disclosed the landing of the arms In Guatemala. Washington officially said ;they left the Polish port of Stettin and originated in Czechoslovakia, Another Red Fraud A report of another bit of Communist .fraud that has reached the Free Europe Committee is that a Soviet Russian company last year filmed "a docu- mentary film" on alleged "American atrocities in Korea." Not in Korea, but made in Czechoslovakia. Details of this deception reached the Committee through a young Czecho- slovakian soldier who was a member of a special military guard covering the film area in the vicinity of Naklerov, near Usti and Labem, North of Prague. Czechs dressed in American uniforms acted out such atrocity scenes as setting fire to a church in which little Korean children were "burn to death." Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For Reese 2000/05/03 : CIA-RDP62-00865R0G4600200002-7 OIL Time; AIN 20 1954 Hundreds Join Rebel Push, Base in Honduras Reports By MILTON BRACK= Special to The New Yeeig, Thee. COPAN, Honduras, June 19--Guatemalan insurgents under 1Col. Carlos Castillo Armes an "marchitg on the capital" against light resistance and are being joined by "hundreds" of their countrymen as they advance Guatemalan national flag, which is blue and white. A Guatemalan party, gath- ered near the tiny airport here, which normally serves traffic to the ruins of Copan, were in in- formal uniforms and bore side- arms. The party included Manuel Orellana Portillo, a business man wearing suntans , and with a heavy growth of %black whiskers, and Manuel Orellana Cardona, a Guatemala City attorney who had a German machine pistol in his belt. was in the Guate- malan diplomatic service in Eu- rope for twelve years and took exile in the Costa Rican Embas- sy two weeks ago. ? Others in the party were Juan Fermin Valladares, a landowner, whose property is at San Jos? Pinula, near the capital, and who left on June 13; Carlos A. Re- cinos, another lawyer carrying a German Luger and belted with 38-caliber ammunition; Luis There were some clashes, in- Davis Eskanasy, a chemist who 1 eluding one at Zacapa, opposite had attended a recent anti-Com- here, but a spokesman said so munist conference in Mexico, and far no insurgent casualties had Edrain Espinosa, a Honduran C. who lives and has a shoe store in been evacuated. Guatemala. Colonel Castillo -Armes has Information Chief Chosen established his headquarters in Senor Orellana Portillo said he Guatemala. A supply base exists had been chosen as chief of in- between twenty and twenty-five formation by Colonel Castillo kilometers on the Guatemalan Armes. He said there had been side of the border! It is being no resistance to rebel planes that bombed gasoline tanks at San supplied exclusively by mule Jos?n the Pacific coast, Puerto train. The country is roadless Barrios on the Atlantic and the with thickly forested hills capital itself. I creased by primitive trails. The invaders have chosen as identifieatiop. blue armband bearing a conventionalized short sword with a broad crossbar. Their moito is "God and Hon- or." Some units also carry the alcording to a "liberation' liaison unit here. Copan is four miles from the frontier and not far from the point where Guatemala, El Sal- vador and Honduras Meet. Copan is the site of famed Honduran ruins and is not to be confused with the town of Santa Rosa de Copan farther from the border. After several days of secret forays into Guatemala, the inva- sion Started officially at 5 P. M. 'yesterday with heavily armed men crossing into Guatemala at "several points." The insurgents said that in gen- eral regular Guatemalan Army forces had withdrawn, leaving virtually the entire frontier un- defended. Mule Trains Supply Units Continued on Page 3, Column 5 Fighting was said to have oc- curred at Zacapa, twenty miles west of here, but the impression was strong that relatively little combat actually took place along this border region. Senor Orellana Portillo said Guatemalan farm workers had been making their way to the rebels' supply base where they drew equipment and joined the invaders. Obvibusly aware of-the political delicacy of the situation, Senor Orellana Portillo said that "with or without the recent declarations of General Eisenhower and Sec- retary [of State] Dulles [about the Communist menace in Guate- mala] we would have entered Guatemala." He added that the movement did draw "some hope and optim- ism" from recent expressions of United States policy. The Castillo Armes group, sur- rounded by ?big- a e on .0- ran peasants as they spoke, said a two-motored Guatemalan recon- naissance plane, flying very low, had "crossed into Honduran ter- ritory" at 12:15 P. M. yesterday. They said Colonel Castillo A,rmas had information that the Arbenz regime had transformed the National Palace in the city of Guatemala into a great shelter for women and children and that up to 1,500 -efugees were living there. In Tegucigalpa, the Guate- malan Ambassador, Amadeo Chinchilla, was to see Honduran President Juan Manuel Galvez this afternoon. Senor Chinchilla said he had a conversation with Jos?dgardo Valenzuela, Hon- duran Foreign Minister, late last night and received "assurances" that Honduras would not permit abuses by the Guatemalan exiles: Senor Chinchilla was received by President Galvez this after- noon. He asked the President to assemble all Guatemalan exiles with a view to seeing their status unabused and he asked the ex- pulsion of Colon& Castillo Armes. According to Senor Chinchilla, "the President said he would im- mediately give strict orders with a view to granting these requests y Guatemala and seeing to it that relations between the sister republics remained unchanged It was noted that Colonel Cas- tillo Armes had left Honduras and was already in Guatemala with his insurgent forces. An air tour of the border be- tween Copan and Puerto Cortes, with the -plane getting as .close to Guatemalan territory as pos- sible, showed no indication of action in the frontier zone. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 law N.Y. Times JUN 0 TORIELLO HITS U S. ?a' Foreign Minister Tells Telephone Interviewer Here of Casualties By TAD SZULC Guillermo Toriello, the Foreign Minister of Guatemala, declared early today that the entire na- tion?the Army, the workers and the peasants?stood united, be- hind the Guatemalan Government in the current crisis. Senor Toriello said in a tele- phone interview with The New York Times that the "internal front of Guatemala is perfectly united." "The Army is with the Govern- ment, and so are the workers and the peasants," he said. "The Gov- ernment has the most cern- plete support of all the patriotic Guatemalans." Supplying the most up-to-date Government report on the mili- tary operations resulting from the invasion of Guatemala on Friday by anti-Communist forces led by Col. Carlos Castillo Ar- mes, the Foreign Minister said that the rebels occupied at noon Saturday two, "small villages" near the Honduras border. These are Esquipulas and Joaatan, he Strafing Plane Kills Child Speaking from the National Palace in Guatemala City, Senor Toriello said that the capital was attacked once yesterday by rebel airplanes. One little girl was killed when a plane strafed a house in the capital and nine persons were wounded, he de- clared. The aerial attack, he said, was primarily directed at the mili- tary base in the capital. The Foreign Minister said that damage caused at the military base in the capital was insignifi- cant. The capital was attacked twice on Friday. out estettlay eggint?t the Atlan- tic port of Puerto Barrios, Senor Toriello insisted Omit, despite rebel claims, Puertta Barrios re- Mained Governuinnt bands. "We are in full iiittrol of the situation," he said. Senor Toriello Said that four rehel planes also attacked yester- day the town of Chiquimula in the Department of Chiquiraula and another town in the Depart- ment of Chalapa. He said that a young girls' school in the latter town was strafed by the attack- ing planes,' ' Senor Toriello said that the Guatemalan Army was purposely refraining from attacking the rebels, whose forces he estimated at between 1,500 and 2,000 men. 4 ' ? Another air raid was carried iio aimed at "end He said that the President was rsidili ceuntr, ing elanaenraey in Guatemala ta in the National Palace, having impose in its plata a, tyranny completed hours earlier a radio broadcast to the nation. When , that would Serfs the interests, 11,e-was told- that the broadcast of foreign companies." "But the people of Guatemala could not be heard in New York, are not disposed to permit the success of this enterprise under- Wants World to Know "The Guatemalan Army does not want to attack," he said "We want the entire world to become aware of the? aggression agaiust our country." He said later in the interview that the command of the Army would decide if and when an at- tack on the rebels would take place. "It all depends," he added. The Foreign Minister charged that the "aggresision" had "the firm support" of the United States Department of State. He said that Honduras and Nica- ragua were guilty of aiding and abetting the attack. "The aggression," he declared, "Is directed by the big interests and monopolies, such as the United Fruit Company, which have the firm support of the De- partment of State and of mer- cenaries from the Dominican Republic, Cuba, Nicaragua and Honduras." "Tits aggression is carried out with the absolute tolerance of the Honduran Government, with which Guatemala always had un- changing relations of friendship." He said that instead of dis- arming the rebels, the Honduran Government was allowing rebel planes to take off and land on its territory on missions against Guatemala. Senor Toriello said that the United Nations Security Council, meeting this afternoon on Guate- mala's request, would be asked to take action under the Charter against Honduras and Nicaragua. The Foreign Minister, speak- ing in Spanish in quick, short sentences, charged that those at- Senor Toriello said that "there is a good reason for it." "The reason is," he said, "that taken with the complicity of Honduras and Nicaragua, of the foreign companies and of the high officials of the [Unitea States] Department Of State." "The Department of State," he said, "wants to end democracy in Guatemala." Senor Toriello branded as "ab- solutely false" the recent charges by Secretary of State John Foster Dulles that a Communist terror reigns in Guatemala. He said: "This declaration is absolutely false. It is completely tendentious and false, because if it were true the entire people of Guatemala. would not be supporting the Gov- ernment and the army. The army would not, either, be standing by the Government." "This calumny tends to prove that under the pretext of wanting to combat the so-called interna- tional communism, efforts are made to destroy the progressive Government of Guatemala," Sefior Toriello aeserted. He said that attacks were made on Guatemala because she had insisted on the "exercise of her sovereignty" in her relations with foreign companies. Call Breaks Barrier The New York Times interview with the Foreign Minister was believed to be the first telephone call by a New York newspaper to beleaguered Guatemala City since early yesterday. The call was completed many hours after it was placed here, and it was made possible when Sehor Toriello agreed to a request channeled to him through the Guatemala City operator that he grant an inter- view. Earlier yesterday evening the Guatemalan Government had banned all the press calla. The Foreign Minister made the following appeal to the Ameri- can people: "In the name of the people of Guatemala I appeal to the demo- cratic tradition of the people of the United States, asking them not to permit that the economic interests of a handful of stock- holders of foreign companies stand as the motivation for this criminal attitude toward Guate- mala." In response to questions, Seftor Toriello said that President Jaco- bo Athena Guzman, as the con- stitutional supreme chief of the Guatemalan Army, was directing operations against the rebels. Reports from Tegucigalpa, Hon- duras, had said that President .A.rbenz had assumed personal command of the army only yes- terday, but the Foreign Minister said this was done as "a matter of course." special jamaniki.V stations have been set up in the United States to prevent oar broadcasts from being heard." In an answer 'to another ques- tion, Sehor. Toriello said that "no more than 100 prisoners" were being held in prisons in Guate- mala. He emphatically denied re- ports of wholesale political ar- rests in recent days. ? The Foreign Minister, who Spent nearly thirty-five minutes talking to The New York Times, stressed that rebel planes were "attacking civilian populations because the aggressors have failed in achieving their objec- tives." Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 ( s Approved For Reese 2000/05/03 : CIA-RDP62-00865R008400200002-7 Amo Lcan 12 0 19547 Invasion Chief Aided Arbenz Col. 'Carlos Castillo Armas, leader of the resistance movement in the Guatemalan armed forces, has been mapping the present uprising since he escaped as a po- litical prisoner from the central penitentiary in Guate- mala City in June, 1951. Slender, soft-spoken, and determined, the 40-year-old head of the invasion forces seeks to overthrow the Red-infiltrated regime of President Jacob? Arbenz Guzman. ILL leunial?Aswiaan k20 1954 remlin Hailed By Arbenz Pal By TOM WHITNEY ? Associated Press Foreign News Writer One of Guatemala's top labor leaders, speaking in the Kremlin a few days ago, swore fealty to moscow. A Moscow newspaper which arrived here today published the text of a speech made by the secretary of Guatemalan General Confederation of Labor, Vergilio Guerra, whose organization is one of the biggest supporters of embatEed leftist President Jacob( Arbenz Guzman. workers, the creators of the In his speech Guerra made happiness of their own people plain that he and his labor and of all humanity, point out movement look to the Soviet to us the path. Union for guidance. "Hail the friendship be- tween the workers of the So- viet Union and Guatemala! Hail proletarian internation- alism, peace and friendship between all the peoples of the world! Hail the glorious So- viet Union. Guerra said the working class of Guatemala, "with delight, tollow the Soviet Union and its successes in the struggle for peace, for the welfare of hu- Guerra arrived in Moscow in early June, to attend the Soviet trade union conference. He spoke June 11 in the Kremlin to this assembly and his speech was published in the Moscow paper Trud June 13. HE CLAIMS HAPPINESS. Trud quoted him: "The attainments of colon- ial peoples, and in the first place of the peoples of Viet Nam who Ilave thrown off the Imperialist yoke, serve us as an example. muccesses of Soviet manitY." ? ? He received, said Trud; stormy applause from the Soviet trade unionists. , He has been in oppOsition to Guatemala's present leaders since the assassination Of Col. Francisco Javier Arana in March 1949. Arana then was chief of the country's armed forces. LED 1950 UPRISING. Arena was one of the leaders with President Arbenz in the October, 1944, revolution that overthrew the then acting presi- dent Frederic Ponce and result ed in Castillo's removal from his post Of chief of the 4th Military District after two days of fight- ing. In November, 1950, Castillo led an abortive uprising during the elections that made Arbenz pres- ident. Castillo attacked the base of the 1st Infantry Regiment on the outskirts of the capital with a force of 70 civilians. Sixteen were killed and 10 wounded in the clash which end- ed with Castillo's arrest and confinement in the penitentiary. He tunneled his way out. He took refuge in the Colom- bian legation, Born in Guatemala, Castillos was educated at the Polytech- nical School and commissioned In 1936. In 1945-46 he took a ground and service eourst at Port Leavenworth, Kane 54 Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 #3. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200W-7 -Jur' Times JUN 20 1954 State Department Declares Only a Revolt Is Indicated Views events as Uprising of Guatemalans Against Regime?Ambassador Peurifoy Contradicts the Local Version By WALTER H. WAGGONER Special to The New York Times. WASHINGTON, June 19?The fifteen kilometers inside the Gua- United States rejected today temalan border, and that this Guatemala's assertion that she constituted aggression and that had been invaded, he had asked the [United Na- The State Department, in a tions] Security Council to take formal statement, said that it 11P the case. "The department has no evi- had no evidence indicating that deuce," its statement said, "that the violent developments of the this is anything than a revolt of Guatemalans against their Gov- ernment. Aggression Charge Discounted The State Department made it clear that it would not be dis- tracted by Guatemala's charges of "invasion" and "aggression" from its intention to bring the ? Guatemalan Government's own actions before a meeting of the Inter-American Foreign Minis- ters. "The latest outbursts of vio- lence," said the Department statement, "are another confir- mation of the previously ex- A. M. today, local time,' accord_ pressed United States view re- garding 'possible action by the Organization of American States on the problem of Communist in- tervention in Guatemala. . "The. Department has been ex- changing views and will continue to exchange views with other governments in this hemisphere last twenty-four hours were any- thing but "a revolt of Guatema- lans against the Government." Today's statement was based on telephone and telegraph re- ports from Ambassador John E. Peurifoy in Guatemala. Ambas- sador Peurifoy, the department said, also asserted that "there had been no bombings by planes in the Guatemala City area." There had been "three over- flights by unidentified planes" between 4 P. M. yesterday and 11 ments from Central America re- flected a widely-held hope that those developments may in fact be signs that the people of Guatemala may have begun a on Honduras. ing to the Ambassador, and while? the appearance of the aircraft caused alarm, "there have been no disorders." What the United States Am- bassador reported to Washington was quite different, however, from what Guatemalan Foreign Minister Guillermo Toriello had asked him to report. The State Department related that the Foreign Minister had called Ambassador Peurifoy, the French minister and the British charg?'affaires to the National Palace last night and had asked them to "inform their Govern- ments that Guatemala City had been attacked by two aircraft which bombed a house near the center of the city and strafed the National Palace." Senor Toriello also charged, ac. 'cording to the Ambassador's re. port to the State Department "mat troops had crossed the bor- ...ber and captured El Olorido, mien sources, it was reasoned that the Guatemalan Government might have created the "inva- sion" story to justify an 'attack move in earnest against their government. If this were the case, it would be a dramatic sequence to a who are also greatly concerned about action needed to protect this hemisphere from further en- croachment by international com- munism." Accounts of uprisings in wide- ly separated points of the Central American republic have now reached the State Department through official, first-hand re- ports. Those reports have not yet confirmed the Guatemalan Gov- ernment's announcement of an imminent invasion from Hon- duras, where "an army of libera- tion" is said to be on the march across the border. I3ut the re- sponse here to the last twenty- four hours is shaping into a con- viction that Guatemala may be faced with a full-scale anti-Com- munist revolution. The State Department's first formal response to the develop-I statement by Secretary of State JohnFoster Dulles last Tuesday ..hat "the great majority of the Cluatemalan people have both the lesire and he capability of clean- ng their own house." President Eisenhower was at he Marine Corps base at Quan- deo, Va., attending a National security conference, but James C. _iagerty, White House press sec- setary, said that the President was very interested in the Guate- malan situation and was being kept informed of the latest de- velopments by the State Depart- :nent. Secretary of State John Foster Duller was at his retreat at Duck Island Ont., and Robert Murphy, Deputy Under Secretary of State, Congress to the Guatemalan de- is acting Secretary. It is under- velopments ranged from cautious stood that Secretary Dulles and almost to exultant. Senator Mr. Murphy have also discussed Alexander Wiley, Republican of the developments by telephone. Wisconsin and chairman of the The Inter-American Division of Senate Foreign Relations Com- the department was on a virtu-I mittee, said in a statement issued ally full-mobilization basis today,' through his office here that it and most officials connected in was "too early to predict the out- any way with the area expected come of the revolutionary activi- to return to their offices .amor- ties now taking place." ' row. These informantsc, who do not represent any of the Central 'American countries, explained that Honduras would have to be crossed if the Guatemalans were to reach the "most important tar- get," Nicaragua. The Guatemalan charge d'af- faires, on the other hand, insisted that there had not been "one case of uprising," but that an inva- sion was underway supported by planes flying from Nicaragua and Honduras. Alfredo Chocano, th a Guate- mai an charg?said he had not been instructed to make any rep- resentations to the United States about the reported invasion, but he added: "I would not deny nor confirm that the United States Govern- ment is behind it, but the United Fruit Company is financing it." Reaction from members of Invasion Talk "Suspicious" Some Latin-American diplo- mats, meanwhile, found the invatsion reports "rather suspi- cious." Because all of them ap- p?arid to be coming from Guate- Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 5 Approved For Reese-2000/05/03 : CIA-RDP62-00865R0118600200002-7 THE NEW YQ1A/C TIMES, 'SUNDAY, JUNE 20, 1954. Guatemala's Note mid U. N. Charter Articles Cited Guatemalan Note Speclol to The New York Times. UNITED NATIONS',N.Y., June 19?Following are the texts of a protest sent by Guatemala today to the United Nations, addressed to this month's President of the Security Council and of the parts of the United Nations Charter re- ferred to: I have the honor to address Your Excellency on behalf of the Government of Guatemala in order to inform you of the following: . On April 1, 1953, the Govern- ment of Guatemala informed the UnitecrNationi of the inten- tion of certain international political groups to interfere in the internal affairs of Guate- mala and in the document it submitted it set forth a whole series of facts illustrating these intentions. There have now oc- curred events of such gravity that my Government feels obliged to appeal to the United Nations Security Couneil in or- der to prevent a disruption of thweace in the American con- tinent: Since the are,ival in Guatemala of arms for her .5rhteedefp,rcee, official United States spoiries- men have been sayieg, falsely and tendenciously that tills de- fense equipment, acquired by My Government in the perform- ance of its sovereign rights, was intended for the purpose of at- tacking neighboring Central American countries. Such state- ments were and are completely false. Aggressive Aims Denied Guatemala has many times de- clared that it neither had nor has aggressive intentions. Events have shown that while the Gua- temalan Government maintains an unshakable policy of friend- ship and nonintervention, other governments are pursuing a policy of hostility and aggres- siveness toward our country. The first response to the in- citement provided by the offi- cial United States spokesman came from the Government of Nicaragua, which unilaterally announced the breaking off of diplomatic relations with Guate- mala on 19 May, last. The Gov- ernment of Nicaragua gave ex- planations which were not only false but which, even if they had been true, would not have justified a rupture of interna- tional relations. Op 26 May, 1954, unidentified aircraft from the direction of Honduras and Nicaragua violated Guatemalan territory by flying over the city of Quatemala and dropping pro- paganda leaflets ieciting the Guatemalan army to rise against Approved ? The New York Times June 20. 1954 GUATEMALAN INSURGENTS ADVANCE:. The Govern- ment annoanced a penetration of nine miles (1) inside the border but digpnted the rebels' claim of the capture of Puerto Barrios (2). The invaders said they had seized San Jos?3). Guatemala City (4) was strafed, as several planes flew, over, the capital reported. the legitimate and constitutional government of our country. On 7 June, 1934, these planes made another incursion and dropped similar propaganda leaf- lets over various parts of our territory. On 14 June, the planes did not confine themselves to dropping propaganda .leaflets: this time they parachuted arms and ammunition Into the area of Tiquisate, headquarters of the Compania Agricola de Guate- mala, which is a subsidiary of the United Fruit Company. These arms appear to be of So- viet and North American make. The Guatemalan Government, reliably informed that expedi- tionary forces. situated in Hon- duras were preparing to invade Guatemalan territory, made representations to the Govern- ment of Honduras through the normal diplomatic channels, re- questing it, for the sake of in- ternational friendship) to re- strain and control these armed groups. The Honduran Government in reply gave assurances that these elements would be restrained, but in fact no measure was taken for that purpose, as may easily be proved by statements In the Honduran press itself. On ^ 15 'June the invading aircraft again violated our territory, fly- ing over the same area of Tiqui- sate and other places. On 16 June there was another violation, apparently for the purpose of carrying out recon- naissance over various parth. of the country. On 17 June I ap- pealed directly to the Chancellor of Honduras, and stated that in spite of the assurances given by his Government, the expedition- ary forces preparing to invade Guatemala had not been re- strained, I repeated our request in this connection, and demand- ed that they should be disarmed in accordance with international law and the agreements in force. Cites Loss of Border. Post The same day the diplomatic representative of Guatemala in Honduras made strong repre- sentations to the Government of that country, protesting agairet the Government's passive atti- tude toward the preparations being made by the expeditionary forces to invade Guatemala. At the same time we reiterated our desire to maintain the friendli- est dt relations with that coun- try and to avoid any breach of the peace in Central America. However, notwithstanding the repeated requests which we made in friendly fashion, the ex- peditionary forces which we had condemned captured the Guate- malan frontier post of El Florio in the Department of Chiqui- mule, and later advanced about fifteen kilometers inside Guate- malan territory. These forces are still in our territory and we have not demanded their with- drawal precisly because we do not want to give other pretexts, this time in connection with frontier incidents: This morning aircraft from the direction of Honduras and Nica- ragua have invaded our country, dropping explosive bombs on stocks of fuel in the Port of San Jose and on the City of Retalhuleu. Today at 4 P. M. P-47 type planes of North Amer- ican make also from the direc- tion of these two countries at- tacked the City of Guatemala, Strafing government buildings and private dwellings and bomb- ing military bases. The same aircraft later attacked the mili- tary base at the Port of San Jose. The aggressor governments and international provocateurs have felt safe in comrniting such outrages and acts of aggression because they knew that Guate- mala pursues a policy of friend- ly and peaceful relations with her neighbors, and also, more particularly+, because the policy of boycotting our country which has been pursued by United States leaders has left us with- out an Air Force sufficient to repel repeated acts of aggres- 81?nh Tose governments prebe.blyi felt safe, too, beeauee they have recently signed inilittry agxee... ments with the United States of America, while at the same time the Government of Honduras re- jected the pact of friendship and nonaggression offered by my Government to that of Honduras In proof of its friendly and peaceable Intentions, Aggression Held Proved The facts we have lust cited clearly prove that open aggres- , Won has been perpetrated by the Governments of Honduras and Nicaragua at the instigation of certain foreign monopolies whose interests have been af- fected by the progressive policy of my Government . Guatemala has simply defend- ed her sovereign rights, by en- acting and applying those laws which seem to her necessary to promote the country's eccinornio and social progress. For that reason the interne- COW JOL, For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For Release 2000/05/03 : CIA-RDP62-00865R0003002000Z-7 Now tional crime which has been committed is all the more to be condemned. In view of the fore- going, I would request Your Excellency urgently to convene a meeting of the United Na- tions Security Council in order that, in accordance with Arti- cles 34, 35 and 39 of the United Nations Charter, it may take the measures necessary to pre- vent the disruption of peace and International security in this part of Central America and also to put a stop to the aggression in progress against Guatemala. I I have the honor to be, etc. GUILLERMO TORIELLO, Minister of Foreign Affairs Sections of U. N. Charter ARTICLE 34 The Security Council may in- vestigate any dispute, or any situation which might lead to international friction or give rise to a dispute, in order to determine whether the continu- ance of the dispute or situation I s likely to endanged the main- tenance of international peace and security. ARTICLE 35 1. Any member of the 'United Nations may bring any dispute, or any situation of the nature referred to in Article 34, to the attention of the Security Coun- cil or of the General Assembly. 2. A state which is not a mem- ber of the United Nations may bring to the attention of the Security Council or of the Gen- eral Assembly any dispute to which it is a party if it ac- cepts in advance, for the pur- poses of the dispute, the obliga- tions of pacific settlement pro- vided in the present Charter. 3. The proceeding of the Gen- eral Assembly in respect to mat- ters brought to its attention under this article will be subject to the provisions of Articles 11 and 12. ART10E 39 The Security Council shall de- termine the existence of any threat to the peace, breach of the peace, or act of aggression and shall make recommenda- tions, or decide what measures shall be taken in accordance with Articles 41 and 42, to main- tain or restore international peace and security. N.Y. Times )0N1 20 vs REVOLT IN GUATEMALA The expected has happened in Guatemala. Elements opposed to the slow Communist infiltration of the Government have taken- up arms to end it. Censorship yesterday delayed or suppressed news from inside the country. News from outside indicated well-planned movements from Hon- duras and from Mexico and from the sea into Puerto Barrios on the At- lantic side and San Jose on the Pa- cific side. Between these two ports runs the country's main railroad. On the plateau on the railroad line be- tween them is Guatemala City?a spic and span metropolis familiar in years gone by to thousands of Ameri- ? can tourists. The setting, with its great varia- tions of climate, with its tall volcanic mountains, is melodramatic. So is the human background. This is a land of an ancient culture and race overlaid by the thin veneer of European civil- ization. This is not to say that the Mayas who make up most of the population of Guatemala are a trucu- lent or unintelligent people. They are neither. They are quiet, soft-spoken, long-suffering, hampered largely by their lack of knowledge of modern technological equipment. These toiling millions, clinging to their old traditions, cultivating their corn according to those traditions rather than to the latest findings of the agricultural experts, had nothing to say as ? to whether Guatemala should be Communist or not. They did have grievances that perhaps made it easy to stir them against any existing situation. They could not be expected to know that if their lot was hard now it would be infinitely worse if a new Moscow-linked tyranny were set up. Guatemala has had ten years of un- certainty since its dictator, General Jorge Ubico, was thrown out in 1944. For a time it looked as though dem- ocratic reform might create and per- petuate a fre6 country. But there was unrest and rivalry among the pol- iticians and these did not express themselves freely in elections and Congressional committee hearings as they do here. There was and is a genuine anti-foreignism, although this has almost never showed itself in open unfriendliness toward Individuals, and although American-controlled under- takings in Guatemala have greatly liberalized and humanized their policies. It would be dangerously inconsist- ent for our Government to welcome any revolution in Latin America achieved principally by troops moving in from neighboring states. That prac- tice, if used by reactionaries to over- throw democratic governments, would obviously seem wrong. We have to withhold judgment on what has ;sap pened. in this instance. We need not, however, conceal our satisfaction if what is happening now in Guatemala were to result in a new trend toward democracy and toward friendlier rela- tions with other democratic cotintries. We can only hope that this can take place without needless loss of life or destruction of property in that sadly poverty-stricken country. 111.1f. Times 1 N 2 0 1954 ADVANCE 9 MILES Anti-Reds' Invasion Progresses?Arbenz Assails Neighbors By PAUL P. KENNEDY Special to The New York Times. GUATEMALA, June 19?The Guatemalan Government has an- nounced that the invading anti. Communist rebel forces have captured the town of El Florido and have advanced about nine miles into Guatemala from the Honduras border. Foreign Minister Guillermo Toriello told United States, Brit. ish and French diplomats that ground forces under Col. Carlos Castillo Armas, exiled former Guatemalan Army officer, con- tinued to occupy El Florido. ' This capital city awakened to its second day under attack to the gunfire of hostile fighter planes and to its own anti-air- craft fire. An air raid early this morning on the city of Guatemala was the third since Foreign Minister Gui- llermo Toriello announced yester- day afternoon that the battle for Guatemala was on. One Port Disputed [President Jacobo Arbenz Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 SI Approved-For Rellbse 2000/05/03 : CIA-RDP62-00865R080600200002-7 Guzman of Guatemala, in a broadca,st speech to his coun- try at 10 P. M., Eastern day. light time, accused Honduras and Nicaragua of "open ag- gression" in conjunction with the United States. He said his army would throw back the Invasion and appealed to the people for support. [The invaders captured two port towns?Puerto Barrio/3 on the Caribbean and San Jose on the Pacific?the exiles' head. quarters in Tegucigalpa, Hon- duras, reported, according to The Associated Press. The Gnatemalan Interior Ministry denied that Puerto Barrios had fallen. The insurgent army's information chief said the in- vaders had forces twenty-five miles inside Guatemala. [The Guatemalan radio said the invaders seized a town thirty miles from the Mexican border and that President Ar- bens had assumed personal command of Guatemala's army. "owing to the disaffection of certain elements," The United Press reported.] The Interior Ministry, in a bul- letin issued this morning, said that a plane yesterday, last night and this morning had "produced a new and flagrant act of aggres- ion." The bulletin said ,a fighter ,lane had strafed public office mildings and dropped bombs on a military establishment. The bulletin continued: "The Government denounces before na- tional and international public opinion these incidents, which were brought about by the en- emies of Guatemala and their powerful allies." Peurifoy Sees Torino Meanwhile, Ambassador John E. Peurifoy was called to the Nati:Mai Palace last night and was officially informed by For- eign Minister Toriello that the 1 attack on Guatemala had begun and that he had requested a con- vocation of the United Nations Security Council to study the af- fair. The Ambassador, with the French Minister and the British charge d'affaires, was called to the Palace at 7 P. M. Other members of the diplomatic corps were called in later. . The Foreign Minister 'also re. t marked that two planes that "buzzed" the capital yesterday afternoon had been identified ag of North American manufacture. Mr. Peurifoy is reported to have replied that ,planes of North American manufacture were in all parts of the world. The planes that "buzzed" the city were identified as P-47 Thunderbolts of post-World War II design. They roared over the downtown section at about 700 feet. They drew several bursts of anti-aircraft fire and disappeared in tile southwest, gaining altitude. Each of the three raids drew anti-aircraft fire, this morning's the heaviest so far. There were bomb detonations, though no hits could be located. According to authorities, these raids resulted in bombing and setting afire the heme of fait Rodolfo Mendoza's mother. Colonel Mendoza was former chief of the Guatemalan Air Farce, .but, fled this country to join Celenel Castillo-Armas. The clandestine radio announced that Colonel Mendoza was going tor fly over the city of Guatemala, but explained that it was to be only a propaganda action and not a honibing raid. No witnesses in the downtown area could see evi- dence that either plane had dropped bombs yesterday. Meanwhile, the first .casualty of the attack was reported last night when a Guatemalan AT-6 Orashed into a mountain north of the capital, killing a man identi- fied only as Castillo. The United States Embassy an- nounced today that Ambassador Peurifoy had requested all United States citizens to remain indoors as much as possible and particu- larly not to go into the streets at night. Two rTnited States fam- ilies in a technical assistance project on the Pacific coast have been evacuated to the capital. Mr. Peurifoy said the embassy had no immediate plans to evacu- ate 1,200 United States citizens from Guatemala. He explained, however, that the embassy al- ways had this under considera- tion when trouble broke out. Despite the excitement of the air raid, the capital city re- mained superficially calm. Down- town streets were becoming in- creasingly deserted and some stores did not open for busi- ness today. A majority kept their iron window shutters closed throughout the day. The effect of attack is most ptonotmced night, when an eerie silence falls over the blacked-out city. The police yesterday issued warnings to motorists to draw heir cats up to the curb during a raid and to turn out lights. The police put teeth into this orae today with a radio announcement that motorists disobeying would be liable to being fired at There wai an unverified report that a motorist was picked up last night while giving signals to raiding planes. r . The southerninost column of the pincer Movement was said to be advancing into Guatemala from Ocotepeque in Honduras neat the junction of the frontiers of Guatemala, El Salvador and Honduras. The center column en- tered Guatemala at a point mid- way between Copan and Florida, Honduran border towns. The third group attacked from Ma- cuelizo and was apparently head- ed for the Motagua valley be- tween Bananera and Puerto Bar- rios. Oil Tanks Fliers' Targets 'TEGUCIGALPA, Honduraa, Jtnie 19 UP)?Guatemalan offi- cials said rebel ,planes had bombed oil tanks and military bases at San Jos?nd strafed military targets and Government buildings in the capital in other flights- last night and yesterday afternoon. There was no word on any casualties. The planes also dropped leaflets. The first report. of looting said thie peasants had stopped a train between Puerto Barrios and Guatemala and forced 150 pas- t:enters to get off. Pane American and other *- lines announced suspension of all operations in the capital. Guatemalan radio stations broadcast frequent appeals to the people to aid the Government in itse"fight against invasion." The exiles' headquarters here Said it was possible the Arbenz, regime had sent reinforcements Into Puerto Barrios and San Jose, but no word along that line had been received in Tegucigalpa. Puerto Barrios served as the hind the Iron Curtain?a move received by Guatemala from be- port of entry for arms seipments that caused deep concern in the United' States. San Jose, a small- er town of 2,683, is pie site of gasoline and oil storage dumps, which are the principal source of supply for Guatemala. San Jose was a United States long-range, pattol bomber base in World War II. A spokesman here 'for the re- sistance group warned that Guatemala's 6,000-man army was strong enough to menace in- surgent forces at all occupied points. REBELS SEVERING DEFENSE Strategy of Cutting Guatemala Government Lines Is Seen The strategy of the ant: ?7_1orn-, munist Guatemalan rebels at- tacking Guatemala appeared aim at the severing the nation's only coast-to-coast railroad and. bottling up the Government ie the capital. Private advices from persons who left Guatemala last week and remain in touch with the situation through non-official channels indicated that the pene- tration of the forces under Col j Carlos Castillo Armas followed' a predetermined plan of actioe involving a three-pronged drive overland from Honduras. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 A rebel triumph in Zacapa, the source said, cut the trans- cotit'meatal airoad and deprived the Arberm Government of coin- M.unications linking' it to the eastern seaboard. Zaeapa domi- nates the Motagua Valley and is the junction for the branch of the International Railway lead- ing into El Salvador. Destruction of the petroleum supplies at Puerto ki4.1TiOS and San Jose on the Paelfic coast deprived the Government of much of its fuel reserves be- cause only a small quantity is Maintained in, the capital. One. ef the Bret acts of the rebels Friday was to bomb The gasoline dumps 'in the two ports. A Private telephone converse- , bibn. from here to Guatemala last might reported that the main po- llee station on Sixth Avenue, near Fou31.eenth Street, in the Guatemala capital was damaged in a rebel aerial raid yesterday. Reports iso said that civilians armed with submachine guns patrolled the streets of the cap- ital, where outward calm pre- vailed. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Wash. Eventing Star JUN 20 1954 Guatemalan President Arbenz A Nervous and Reserved Man Belief Widespread That He Is Addicted To Use of Narcotics By J. A. O'Leary Sallow, chain-smoking Col. Jacob? Arbenz Guzman, presi- dent of Guatemala, speaks so softly I had difficulty catching his words at all when I inter- viewed him last year in the green Palacio Nacional in Guatemala City. The interview itself was futile since President Arbenz insisted on submission of the questions in writing and spoke only in Spanish through an interpreter? although he is fluent in English. His replies were to be sent to me, according to the arrangement, but I never received them. Col. Arbenz, who, is Only 39- years-old, was very reserved. Since controversial snbjects were ruled out, he spoke only in gen- eralities on the beauty and aims of his mountainous land. Called A Narcotics Addict. He sat cross-legged through the meeting, nervously rubbing the thumb and forefinger of his right hand. This nervous habit has contributed, in part, to Col. Arbenz' acquisition 'of the nick- name by which he is best known in Guatemala, "El Morfine." This is a reference to the wide- spread belief that Arbenz is a narcotics addict. The nation's volatile univer- sity students?largely anti-Com- munist in a country which has lately been controlled by Red sympathizers?made capital of this belief in their annual Good Friday parade last year. One of their floats was a huge papier- mache hypodermic needle labeled "El Morflno" in a pointed reference to the President. Another parade feature was a procession of students, garbed as undertakers, carrying two large coffins labeled "Hitler" and "Stalin," and a small coffin on which was written in Span- ish "Ultimo?El Morflno."? "Arbenz next." There was no police interfer- ence with the students parade, partly because traditionally any- thing goes on that occasion and nartly because the government ii,Ight have stirred up a hornet's nest by attempting to break up the anti-Arbenz demonstration. Queries on Communism. The questions I submitted fruitlessly to Col. Arbenz con- cerned the country's political course and the bitter expropria- tion wrangle with the United Fruit Co. In one question, Col. Arbenz was asked point blank if he was a Communist or a Com- munist sympathizer. In another, he was asked to state the meas- ure of Red influence on his re- gime. 1-le has on other occasions, however, denied there is any Communist influence in Guate- mala, facts to the contrary. It was in Guatemala that the one- chamber Congress decreed a minute of silence in deference to the death of Joseph Stalin al- though only four members of the body admit to the party label. Col. Arbenz' course seems to have been to play to the working class and the Indians through land reform and socialtted medi- cine at the expense of United Fruit and the big coffee and fruit growers. His government took over vast tracts of falldw land, ? to be paid for in government bonds at an unrealistic tax eval- uation. 1 Ostensibly he turned it over to the landless Juan Chap- ins (the Guatemalan equivalent of John Q. Public): 90% of Population is Indian. Even if the land reform pro- gram had worked out as the Arbenz government claims, there seems room to doubt that such a plan would ever be practical in a country where more than 90 per cent of the population are full or part-blood Indians who will live nowhere excePt in the village where they were born. Col. Arbenz himself is ;of Swiss-Spanish descent. He came up through the Army and holds the rank of colonel?highest title in the 6,000-man Guatemalan Army. The Army is a rag-tag outfit, in which most of the enlisted men are Indians who earn only a few dollars a month. The officers are well-paid, power- ful social lions. The soldiers Wear rumpled American khaki uniforms and are armed with little more than rifles and pistols. Except 'in Guatemala City and on the marches of British Honduras?_ which Guatemalans call Belice and covet to the extent of print- .ing postage stamps which show Belice as a part of Gupatemala ?the troops are not concen- trated in more than company strength. Col. Arbenz' air force is a motley collection of obsolete American planes flown by United States-trained pilots. He has no navy or marine corps. Arbon Led 1944 Revolt. Col. Arbenz is no stranger to the coup d'etat. He was a leader of the revolt of 1944 in which a triumvirate of Guate- malans swept to power while exiling Dictator Jorge Ubico. Another leader of this rebellion was Jorge Toriello, a bold and blustery businessman know as "El Citidano," the Citizen. He is a brother of Guillermo Toriello, former Ambassador to the United States and now Foreign Minister of Guatemala. Many believe that Col. Ar- benz master-minded the assas- sination several years ago of Gen. Francisco Arena, who seemed likely to become presi- dent., When Gen. Arana was machine-gunned to death near Lake Atitlan by unknown assail- ants, Col. Arbenz became chief of state. How long he will coutinue in office now that the anti-Com- munist forces are on the march remains to be seen. Portrait of a Bad Neighbor Son of Swiss-born druggist and Guatemalan mother, President Jacob? Arbenz (photo inset) is 40, is called "The Sphinx," is shy, tense, nervous. Organized army revolution which overthrew dic- tator Jorge Ubico in 1944. Is ardent nationalist, has deep-seated hatred of foreign monopolies. Gave Reds subsidies for two newspaperx. Govern- ment runs radio, press, movie propaganda campaigns pitched to Moscow line. Sample: Kremlin-doctored film of alleged U. S. germ warfare in Korea widely shown. Approved For Release 2000/05/03 : CIA-RDP62-00865R000300200002-7 Approved For RAIkse 2000/05/03 : CIA-RDP62-00865ROI300200002-7 N.Y. Times ,i? JUN 1 19511 U. S. Likely to Get the Blame However Latin Revolt Ends Diplomats Believe Situation in Guatemala Will Stir Up All the Old Antagonisms By MILTON BRACKER Spada. to The New York Times. TEGUCIGALPA, Honduras, June 20?No matter how the ' Guatemalan uprising ends, the United States is hound to be blamed by elements throughout Latin America, diplomatic ob- servers agree. All the old doubts about inter- vention will be raised?even in those countries where, officially, there has been applause for the United States, strong stand against the Communist-infiltrat- ed regime of President Jacobo Arbenz Guzman. It is assumed in informed quar- ters that Washington was fully aware of the probable march of ;events involving Guatemala once the State Department took its strong stand against last month's arms shipments to Puerto Bar- rios, Guatemala, from behind the Iron Curtain. Col. Carlos Castillo Armes, leader of the anti-Com- munist rebels, had been appeal- ing to his countrymen by radio and in Salvadorean newspapers for many months. Since the start of the invasion, Colonel Castillo Armas and his top aides have been careful to avoid suggesting that the United States' attitude in any way brought their plans to fruition. Effect on Honduras Seen In the first direct comment by the insurgents in the invasion zone, Manuel Orellana Portillo, the rebel leader's new informa- tion chief, answered a direct question about the influence of 1903 Incident. in Panama the United States' attitude this way: It already has been suggested "With or without the recent; that the situation is something of declarations of General Eisen-' a throwback to the Panama inci- 'stand ha i had an encouraging effect both on Colonel Castillo Armas and on the apparent de- cision of the Honduran Govern- ment to look on blandly while invasion preparations were going on under its very nose. One Honduran source felt that his country was in a delicate position because of the way the Guatemalans had been permitted to build up their forces here despite the token gesture by Foreign Minister Jos?dgardo Valenzliela, who called in Colonel dastilh Armas the day before ;the invasion and "warned" him not to violate his status as an exile. A United States source conceded this but suggested that if Hon- duras had decided "to blink" at what the exiles were doing, it may, have been because Honduras resented the Communist agita- tion that led to the big United Fruit Company strike at Tela. Observers agree that Washing- ton was aware of the danger of alienating some sections of Latin- American opinion when its strong reaction to the arms shipment was decided upon. It is noted that a military assistance pact with Honduras was signed within four days of the announcement that the arms we being un- loaded in Puerto Barrios. It is felt that hemisphere policy- makers in Washington were wil- ling to risk some resurgence of old Latin-American fears in view of the primary purpose: To' make absolutely clear the United States attitude on Communist maneuvering in the heart of the Americas. hower and Secretary Dulles [about the Communist menace In Guatemala], we would have entered Guatemala." Sefior Orellana Portillo ac- knowledged, however, that the rebels did draw "some hope and optimism" from recent indica- tions of United States policy. The Hondurans also are fully aware that ' the United States' dent of 1903, when the United States encouraged revolt in Panama, then part of Colombia, because Colombia had refused ;to ratify the accord making possible the building of the Panama Canal. On that occasion the up- rising came Nov. 3 and United States Marines landed Nov. 4'to preserve order." Clearly, the biggest single dif- ference between that era and this is the word "marines" and all has come to connote in this part of the world. Even the bitterest foes of the United States these days do not think President Ei- stnhower would revert to that particular tactic of Theodore Roosevelt's. But the Guatemala case is sure to make them sug- gest?with or without Commu- nist instigation?that the United States, by extraordinarily under- lining its own position, has tend- ed to encourage a violent move against a constitutional Govern- ment. One other matter is clear. The Guatemalan regime certainly had plenty of warning of the United States attitude toward open Com- munist infiltration. Yet Presi- dent Arbenz took not the slight- est step to alter the situation? and its possible consequences. While President Arbenz failed to be moved by all the diplomatic signs and portents, Col. Castillo Armas plainly was heartened and activated by them. There lies the crux of the mat- ter. Whatever the United States does?or does not do?in Latin American affairs, it may be in- terpreted as "intervention." This fact usually shows up most sharply when the question of rec- ognition of a revolutionary regime arises. And Latins here nave no doubt the United States would recognize Colonel Castillo Armas the minute he seemed to have effective control of the country. Nol. Times JUN 21 1954 REBEL CHIEF NAPS FARM LAW CHANGE Castillo Armas Declares Life of the Guatemala Worker Must Be improved Special to The New York Times TEQUCIGA.LPA, Hondurn s, June 20?Col. Carlos Castile Armes' program includes dras- tic revision of the Guatemalan agrarian reform law. The statute has been considered the heart of the program of President Jacobo Arbenz Guzman. Colonel Castillo Armas, leader of the Guatemalan revolt, gave an interview Thursday night, just before he flew north to his head- quarters in Guatemala. The colonel, who is 43' years old, emphasized his awe rartess that the standard of Ilya