814.48/10–2749

The Ambassador in Guatemala (Patterson) to President Truman

confidential

Guatemala Flood Disaster

My Dear Mr. President: In response to your directive of October 21 that I visit Guatemala and report back promptly to you my [Page 668] findings and recommendations as to the damage to life and property caused by the recent flood disaster, I submit the following:

Dead and Homeless: The rain storms (claimed to be the worst in the history of Guatemala) started September 28 and ended October 14, 1949. Damages were severe but not catastrophic.1 500 to 1000 persons are dead and a maximum of 20,000 homeless. Immediate relief needs were taken care of by mobilizing available resources, supplemented by supplies sent by the American Red Cross and other outside sources. The country faces an emergency period of 30–60 days. The estimated homeless population of 20,000 persons must be fed and sheltered and supplies distributed in large part by air until other means of communication can be restored. Food, clothing and medical supplies already in Guatemala and contracted for abroad seem adequate for immediate needs. No epidemics are likely.

Crop Losses: Coffee and banana crops, the two chief exports, suffered losses of ten and twenty percent respectively. Corn, beans and rice crops suffered severely and increased imports will be necessary. Livestock losses also were considerable.

Communications: Trunk roads were rendered impassable by washouts and landslides in most areas. Large outlays of funds will be required to restore highways to normality. The railway system suffered damages estimated at one million dollars; but normal service should be restored by November 6. The purchase of machinery, hand tools, foodstuffs and seeds and their distribution present a knotty problem in procurement and organization.

Finance: The chief problem confronting the Government, however, is long range financing, since foreign exchange holdings will be diminished and Government spending increased at a time when a budget deficit is in prospect.

Recommendation:

While urgent relief needs have been provided, I recommend we give further Red Cross aid during the period of rehabilitation and this the Red Cross is prepared to do. Additional aid in the form of foodstuffs, etc. requested by the Guatemalan Emergency Committee would be an effective good will gesture, and would appear desirable politically in [Page 669] view of our published statement that we wished to render every possible assistance.2

When, as, and if the Guatemalan Government makes application for a loan, it is recommended that consideration be given the request, provided that:

(a)
the Guatemalan Government takes positive concrete measures to halt the persecution of American interests and to insure them fair treatment, and
(b)
any funds so granted be earmarked in detail and their expenditure be under strict U.S. control.

For details, please see Exhibits A through H–A. Photographs comprise Exhibits I through V.3

Respectfully yours,

Richard C. Patterson, Jr.
  1. The first sentence of Ambassador Patterson’s telegram 490, October 26, from Guatemala to the Department of State read as follows:

    “My impression based upon three-day intensive survey including long flight over affected areas, talks with President Arévalo, other government officials and representative businessmen, is that devastation and loss life result floods exaggerated by press (encouraged intentionally or unintentionally by government), that immediate relief needs well in hand, but that country suffered heavily economically and government confronted serious long-range financial problem respecting rehabilitation.” (814.48/10–2649)

  2. The text of a statement by Secretary of State Acheson on October 26 is printed in the Department of State Bulletin, Nov. 7, 1949, p. 712.
  3. Not printed.