711.14/11–949

Memorandum of Conversation, by the Officer in Charge of Central America and Panama Affairs (Wise)

confidential
Participants: Sr. Don Ismael Gonzalez Arévalo, Guatemalan Foreign Minister.
Sr. Frank Linares, Chargé d’Affaires ad interim, Embassy of Guatemala.
James Webb, Acting Secretary.
Richard C. Patterson, Jr., American Ambassador to Guatemala.
Murray M. Wise, Officer in Charge, Central America & Panama Affairs.

Mr. Webb very warmly and courteously received the Foreign Minister, recalling at the outset their previous conversation September 15 [16]. The Minister was happy for the occasion to see Mr. Webb again and to thank him and other interested Government officials in the name of the Government of Guatemala for the immediate relief assistance which the United States Government and the American Red Cross had extended following the severe recent flood. He was particularly grateful for the President’s personal interest in the flood and for his sending Ambassador Patterson to Guatemala on a special survey mission.

Mr. Webb stated that, as the Ambassador knew, the President had now received a personal report from the Ambassador on the flood. [Page 670] The Minister replied that he was well aware of this and hoped to have an appointment with the President within the next few days to express gratitude for the Ambassador’s mission.

Mr. Webb then referred to the conversation of September 15 during which our philosophy of cooperation among governments was discussed. The Minister remarked that he remembered the conversation quite well and agreed thoroughly with what Mr. Webb had said. At this point, Mr. Webb stated that we had been deeply concerned over the treatment in Guatemala of American business during recent past months—treatment which we considered unfair and unjust. Mr. Webb asked if the Minister had noticed any improvement in attitude toward American business. The Minister replied that, of course, he had been in office only a little over a month and, accordingly, had had little occasion to do a great deal about the situation. He admitted, however, that he also was greatly disturbed and hoped shortly to effect a change in the situation.

Upon leaving Mr. Webb’s office, both the Minister and Mr. Linares expressed their gratitude for the interview which they felt had been most friendly.

Before the interview with Mr. Webb, the Minister voluntarily, and without inquiry on my part, stated that he was aware of a great deal of speculation concerning his visit to Washington and that in many circles it was believed he had come to seek a loan. He said that this was not true, that he had come primarily to thank the U.S. Government for the prompt relief assistance offered Guatemala after the flood. He said that Guatemala’s actual rehabilitation needs were not yet known and that while he was here he hoped to get advice concerning the best methods for specifically determining them and how aid could best be obtained from the U.S. if needed. According to him, the Guatemalan Government, in the coming weeks, will decide whether or not it should approach the World Bank for a credit with which road equipment, farm machinery, livestock and other necessities could best be acquired. He emphasized the fact that his Government in any event would not ask for the outlay of a lump sum of money but rather an extension of credit, the use of which would be entirely supervised by the U.S. Government.1

  1. No request was received, Prior to the end of 1949, from the Guatemalan Government for the extension of a credit from the U.S. Government.