711.14/6–2849: Telegram
The Ambassador in Guatemala (Patterson) to the Secretary of Stale
274. During one hour, 40 minutes interview President Arevalo yesterday I expressed in friendly but frank manner deep concern with adverse impression created within US Government as well as within US business circles certain attitudes and actions Guatemalan government affecting good relations two countries. My remarks deviated little from Department’s instruction 80 June 14 which I expanded to cite virtually all difficulties harrassing US firms and citizens during past four years and the examples apparent pro-Soviet propaganda and attitudes. I emphasized that continuing cooperation must be based upon reciprocity as stated last paragraph reference instructions. Stressed also need to rectify present atmosphere hostility toward US concerns as prerequisite encouragement new private capital for needed economic development.
[Page 655]Arevalo interspersed frequent explanations on given situations basing defense in general on premise these difficulties and apparent harrassments due fundamental nature Guatemalan revolution resulting inevitably conflict between capital and labor effects of which felt by Guatemalan capital as well as US private interests. Policy his government precisely one of social and economic betterment as only long range means remove maladjustments that now unfortunately provide fertile soil Communist propaganda. He brushed off issuance diplomatic passport to Gutierrez and Fortuny for attendance World Peace Congress as courtesy gesture toward two ex-deputies.
Arevalo assured me his personal desire fullest cooperation US and intention use his influence this direction within bounds possible under democracy and Guatemalan laws, without assuming dictatorial powers like Somoza1 and Trujillo.2 He took many notes and I came away with impression he fully understands our viewpoint. We agreed have further talk about two or three weeks hence. Full report follows by despatch.3