810.154/3115

The Ambassador in Guatemala (Long) to the Secretary of State

No. 466

Sir: In amplification of my despatch no. 439 of September 21, 1943,32 I have the honor to report that Colonel Bickford was rather jittery lest the President be unwilling to operate under the Kelton plan. He came to the Embassy for two extended conferences during which consideration was given to almost all phases of “liquidating” the Pioneer Highway and as a result of his impressions our telegram no. 490 of September 23, 12 noon, was despatched.

Sunday, September 26, at 7 p.m., Lieutenant Colonel Zass, Majors Spickard and Tobin and Colonel Bickford called. Lieutenant Colonel Zass stated that when he left Managua on the 25th he was advised that the Army was not in a position to turn over the equipment to Guatemala as there were legal inhibitions.

Mr. Drew,33 upon joining the meeting, pointed out that this obstacle was not mentioned in the Department’s cable no. 512 of September 25, 8 p.m. Its purport was then conveyed to Colonel Zass who wished to consult the War Department before seeing President Ubico.

On September 27, 9 a.m. Colonel Zass telephoned to San José and then he spoke with Washington over the long distance telephone and was informed that the position taken in the Department’s telegram last above mentioned could be carried out. Immediately thereafter the gentlemen above mentioned joined me for a conference.

Colonel Bickford informed us that he had just seen President Ubico and thought that the matter could be arranged, but nothing had been said about which Guatemalan organization would carry on the actual work; also it was certain there would be a reduction in the weekly expenditure. Guatemala would not rush so much after it took over. It was regretted that October, probably the rainiest month of the year, would be the last under the present set up.

Those present at the conference decided that it would be better to submit to the President an amended contract which would cover, as nearly as possible, the Kelton or War Department plan.

[Page 89]

At 5:30 p.m. on the 27th the draft contract was read in the presence of all the persons mentioned. We pointed out to Lieutenant Colonel Zass that the Army might wish to retain certain of the equipment. He stated that, as the contract said that Guatemala would do work up to the value of the equipment, and as there was a great deal of the latter, he thought there would be no difficulty in arranging the withdrawal prior to October 31st. However, he was without details as to precisely what equipment the Army might wish to retain but that the proposed amendment, if it could be signed up, would be referred to Washington, which would no doubt outline what it was desired to remove from the country before October 31st.

President Ubico received Lieutenant Colonel Zass, Colonel Bickford and myself on September 28 at 10 a.m. After a preliminary discussion of the work remaining to be done in the country, the contract was read by the President and I explained that the Army might retire certain of the equipment which was why the contract gave October 31st as the inventory date. President Ubico expressed the hope that Guatemala might retain as much as possible and referred to his ambition to undertake additional road building after the completion of the present Pioneer Highway.

Having read carefully the contract President Ubico requested Colonel Bickford to ask General Ydigoras Fuentes34 to the Presidential Palace to sign the amendment.

Publicity

In response to the President’s query regarding publicity, it was suggested that the arrangement be regarded as confidential because its terms might be different from those in the other countries and after all it was not firm until approved by the War Department. The President thought this a good plan and instructed Colonel Bickford to inform General Ydigoras in this sense, which was done. President Ubico then suggested, instead of issuing a decree announcing the signing of this supplemental agreement, that a statement be inserted at the bottom that it had executive approval.

As the Pioneer Highway has never supplied this office with copies of the other amendments English copies are enclosed as per list below.35

It is hoped that the latest supplement will be satisfactory.

Respectfully yours,

For the Ambassador:
Gerald A. Drew

Second Secretary of Embassy
  1. Not printed.
  2. Gerald Drew, Second Secretary of Embassy and Consul at Guatemala.
  3. Director General of Highways, Guatemala.
  4. Supplementary contracts of June 14, August 8, and September 28 not printed.