740.00112A European War, 1939/36567a: Telegram
The Secretary of State to the Ambassador in Guatemala (Long)
214. Department has been informed that War Department desires to purchase entire block of Proclaimed List Guatemalan green bean coffee for use of Army. Army is anxious to make early procurement of coffee in order that shipment can be effected without delay to a foreign theater. For your confidential information it is possible that the coffee quotas will be increased 20 per cent in the near future.51
Please report results of any discussions held with the Guatemalan authorities as suggested by the Department’s instruction no. 416 of February 28 and whether you believe proposed purchase by Army can be used as a lever to induce Guatemalan Government to take some effective action toward nationalization of plantations owned by most objectionable Axis spearhead firms. It should be emphasized that this Government does not wish to press for nationalization of all Proclaimed List firms but only those which constitute the spearheads of Axis influence in Guatemala such as the Nottebohm properties.
Your comments are also requested on the most desirable procedure to be followed in the event that the War Department negotiates for the purchase of the Proclaimed List coffee.