Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

714.00/6–254:Telegram

The Ambassador in Guatemala (Peurifoy) to the Department of State

secret
priority

Guatemala City, June 2, 1954—midnight.
[Received June 2—5:58 p.m.]

866. Re Embtel 816, June 1.¹ Toriello’s proposal for appointment non-government commission by Presidents Eisenhower and Arbenz to discuss problems affecting relations between two countries obviously designed to gain time to permit lowering of recent local tensions which have caused grave concern in Guatemalan Government circles and have greatly heartened opposition. Let-down in tensions following crisis caused by arrival arms already noticeable and they can be expected to decline further when government press seizes upon omission of economic sanctions from agenda of proposed Montevideo conference² as evidence of strong Latin American support for Guatemala. Government’s recent moves against opposition elements may also depress opposition morale. (Embtel 848, May 31.)³

Under circumstances, it is desirable steps be taken to maintain tensions. Two such steps which occur to me are:

1. President Eisenhower might care to reply to pre-arranged questions in his next press conference that he has made no proposal of any kind for discussion of differences between US and Guatemala but state Department proposal for direct negotiation or arbitration of UFCO claims was rejected by Guatemalan Government.⁴ President might wish to add that he doubted visit by President Arbenz to Washington would be conducive to solution of problems in US-Guatemala relations as long as Communists retain their influence in Guatemalan political circles. These statements would scotch rumors of possible direct conversations between President Eisenhower and Arbenz and would make it difficult for Toriello to persist in his claim that President Eisenhower had proposed discussion of Guatemalan differences by an impartial board.⁵

2. US Government might within next few days give notice intention denounce reciprocal trade treaty with Guatemala. This would cause great uncertainty in Guatemalan Government, business and other circles as it would be interpreted as preliminary to application of economic sanctions by US Government. Denunciation would not only have immediate impact on political circles but would cause increasing concern during six-month period between denunciation of treaty and its expiration, particularly since new coffee crop will begin to move in December. Denunciation could be made on grounds that Guatemalan Government has repeatedly contravened terms of agreement and has not given us courtesy of substantive reply to its protests of these contraventions except in one instance in which its arguments were unsubstantial.⁶ See Embassy Despatches 877, April 26, 1954; 773, March 10, 1954; 750 March 2, 1954.⁷

Peurifoy

1. Telegram 816 is not dated June 1; presumably the reference is to telegram 860, in which Ambassador Peurifoy reported that at a meeting with Foreign Minister Toriello that day to continue discussion of mutual problems begun May 24, 1954, the Foreign Minister stated that after consultation with President Arbenz he had decided that the best way to improve relations between Guatemala and the United States would be the adoption of the proposal made by President Eisenhower, on the occasion of Toriello’s farewell call in January 1954, for the appointment of a non-governmental, neutral commission authorized to discuss all outstanding problems (714.00/6–154). For the memorandum of conversation between President Eisenhower and then Ambassador Toriello, dated Jan. 16, see p. 1095.
2. Proposed site of the OAS meeting to consider developments in Guatemala.
3. In the referenced telegram Ambassador Peurifoy reported renewed searches by Guatemalan authorities of the residences of opposition elements (714.00/5–3154).
4. At a press conference on June 8, 1954, Secretary Dulles made a statement along the lines suggested by Ambassador Peurifoy; for text of the statement, see Department of State Bulletin, June 21, 1954, pp. 950–951.
5. In telegram 870, from Guatemala City, dated June 2, 1954, Ambassador Peurifoy reported that Foreign Minister Toriello stated that he had changed his mind about requesting a presidential commission because he had received information that the United States “was holding consultations which had progressed very far toward a meeting of OAS.” (714.00/6–254)
6. The Department’s telegram 1194, to Guatemala City, dated June 8, 1954, reads in part as follows: “Department desires avoid action suggestive of unilateral economic sanctions against Guatemala which would prejudice quick adoption our [anti-Communist] resolution at proposed consultative meeting; therefore does not favor denunciation trade agreement this moment.” (714.00/6–254)
7. The referenced despatches, none printed, all transmit to the Department of State copies of notes delivered to the Guatemalan Foreign Office by the Embassy pertaining to alleged violations of the United States–Guatemala Reciprocal Trade Agreement by Guatemala; they are filed, respectively, under 411.1431/3–254, 411.1431/3–1054, and 411.1431/4–2654.