Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII

810.154/3266

The Chargé in Guatemala (Drew) to the Secretary of State

No. 847

Guatemala, February 11, 1944.
[Received February 15.]

Sir: I have the honor to refer to the Embassy’s despatch no. 466 of September 28, 1943,⁴ transmitting the text of the Agreement⁵ between the Guatemalan Government and the United States War Department providing for the transfer to the former of road building equipment, in return for which the Guatemalan government agreed to spend an amount equivalent to the value thereof on the completion of the Pioneer Highway⁶ (formerly RUME, now known as CIPA⁷).

Since the transfer of this equipment to the Guatemalan Government, the Embassy has been informed that there has been constant pressure from various agencies of the Guatemalan Government to divert certain items of equipment and machinery to other purposes. Colonel Charles Bickford, sub-Director of the Guatemalan Highway Department and Director of RUME and later of CIPA, has resisted such efforts and, according to him, has repeatedly reminded President Ubico that the Guatemalan Government is committed under its contract to use this equipment for the exclusive purpose of completing the military highway.

Colonel Bickford recently reported to the Embassy that he has been replaced by General Ydigoras Fuentes as Director of CIPA. He also expressed the fear that General Ydigoras Fuentes may divert equipment to other highway projects in the country. Colonel Bickford is highly dissatisfied with his demotion and threatens to resign from his position with the Government.

The fact remains that, according to Colonel Bickford, the only equipment which has been diverted from work on the CIPA to date consists of six dump trucks and two tractors, which is considered insignificant and at most could only be regarded as a technical violation of the terms of the Agreement between the Government and our War Department. Furthermore, it is understood that the Guatemalan Government has spent $50,000 per month on the highway during November and December and $30,000 during January. In view of the relatively small amounts which the Government spends on the entire highway system of the country, it is considered that the expenditures allocated to the Military Highway are an indication of good faith on its part. It might also be pointed out that President Ubico has cooperated with our War Department by releasing to it a large number of trucks, as well as scrapers and rock crushers for use on the emergency resurfacing job now under way at the air port in Guatemala City.

In that connection, Lieutenant Colonel W. W. Zass of the U. S. E. D.⁸ called at the Embassy a few days ago to report that he was leaving Central America for other duties in the United States. In the course of our conversation Colonel Zass stated that he intends to propose to the Office of the Chief of Engineers a modification in the Agreement of September 28, 1943, which would enable the Guatemalan Government each quarter to withdraw equipment from the work on the Military Highway to the value of funds expended by it during such period. I believe that this suggestion is sound, as it would permit the Government, as the work approaches completion, to divert increasing amounts of equipment to other highway projects, I agree with Colonel Zass that it would not be logical for us to insist that the Government retain on the Military Highway equipment valued at over one million dollars if it could be used more effectively on other projects. Such an arrangement, furthermore, would have the advantage of relieving us from the possibly embarrassing position of having to insist with the Government on strict compliance with its agreement as now drafted. I should like to recommend that the Department express to the Office of the Chief of Engineers its concurrence in the proposed modification of this agreement.

In connection with the foregoing, it has occurred to me that the Department might like to explore with the Public Roads Administration the possibility of reaching an agreement with the Guatemalan Government for the release of certain funds understood to be available under Public 375⁹ for the completion of work on the section of the Inter-American Highway from Guatemala City to the Salvador border. It is my understanding that a precedent has been established in other countries of Central America for the local government to contribute as its one-third share of the cost of various projects the rental value of machinery and equipment obtained from our War Department. It is believed that such an arrangement would be welcomed by the Guatemalan Government, as it would not involve any major cash outlay on its part and would have the effect of expediting completion of work on this section of the Inter-American Highway. Assistance from us on this section would undoubtedly serve to stimulate the Guatemalan Government to intensified efforts toward the completion of the remaining section of the CIPA highway (Guatemalan Route 6–W) from Guatemala City to Ayutla.

If officials of the Department and the Public Roads Administration are in agreement in principle on the possibility of such a plan, I believe I could informally sound out the Guatemalan Government regarding its position without making any specific commitment.

The Embassy would be interested in receiving the Department’s comments on the suggestions contained in this despatch.

Respectfully yours,

Gerald A. Drew

4. Foreign Relations, 1943, vol. v. p. 88.
5. The Supplemental Agreement of September 28, 1943, was Modification No. 3 of the original contract No. W–8022–Eng.–403 of September 28, 1942; neither printed.
6. This arrangement was a variation of the termination procedure generally followed in each Central American country whereby the War Department-owned equipment, material, and supplies not required elsewhere would be offered for sale first to the Republic in which they were located, second, to the Public Roads Administration, and third, to the general public.
7. RUME, Ruta Militar de Emergencia (Emergency Military Route);CIPA, Carretera International del Paoífico (International Road of the Pacific).
8. United States Engineering Department, United States Army.
9. Public Law 375, “An Act to provide for cooperation with Central American republics in the construction of the Inter-American Highway,” December 26, 1941; 55 Stat. 860.