740.00112A E. W. 1939/36572: Telegram
The Secretary of State to the Ambassador in Guatemala (Long)
268. The Army has stated that it will not purchase this year’s Proclaimed List coffee crop in Guatemala unless such purchase is approved by the Department and interested agencies. Attitude of Department and interested agencies as stated in instruction no. 416 of February 28 is that approval will not be granted for purchase by the Army nor by private firms unless effective measures are taken [Page 1158] to implement Guatemalan Government’s expressed intention to nationalize most objectionable Axis spearheads.
Embassy apparently misinterpreted Department’s telegram no. 214 of April 14. Department’s inquiry was whether the willingness of the Army to purchase this coffee coupled with the above mentioned attitude of this Government would induce the Guatemalans to take effective action along these lines.
With regard to Embassy’s comments that a general expropriation policy is not desirable, it is not the Department’s intention to urge such a general policy but rather to concentrate on most objectionable Axis spearheads. It is felt that effective action with regard to Nottebohm and similar properties would substantially accomplish the desired result.
Unless you perceive strong objection, Department proposes to inform Guatemalan Embassy here concerning this Government’s attitude and suggests that you take similar action in Guatemala. Please reply by telegram whether you concur.