39. Telegram From the Embassy in Guatemala to the Department of State1

35. Greenberg, Acting Manager United Fruit Company, says Guatemalan Agrarian authorities have now turned their attention from company’s Pacific coast properties (my telegram 386, March 26)2 to those on Atlantic side and National Agrarian Department notified company on August 12 of order for expropriation of 174,000 acres of company’s bananera division. Affected area embraces 138,000 acres in forest; 25,000 in abandoned banana lands; 158 leased to independent banana growers; and 10,000 occupied by squatters under nominal leases. According to Greenberg, company is left with 89,000 acres, including 4,000 in bananas, 5,000 abaca, 59,000 forests and 6,000 pastures.

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He adds that forest land left company is too rugged for banana cultivation and in general other acreages left company are too scattered for future large-scale development.

Company plans file appeal to President Arbenz.

  1. Source: Central Intelligence Agency, Job 79–01025A, Box 65, Folder 8. Restricted Security Information.
  2. Not printed. (National Archives and Records Administration, RG 59, Central Files, 814.20/3–2653)