714.02/7–854: Telegram

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

secret

45. As arranged yesterday with Colonel Castillo Armas (Embtel July 6)1 Juan Cordova Cerna called on me this afternoon to explain Castillo’s views on future organization of government.

Cordova Cerna said Guatemala was currently distracted with [Page 1210] politics, fears of army plots against Castillo and possibility of Communist uprising; what was needed was strong established government to insure internal order and put end to politicking. I asked whether he thought a Junta composed of Castillo Armas, Monzon and Oliva would be sufficiently strong, and he replied affirmatively without hesitation. Having in mind current whispering campaign against Monzon, I then asked whether Castillo’s friends would accept Monzon as member of Junta and cooperate loyally with him, and Cordova said he thought they would.

We then discussed whether Castillo could run for constitutional presidency if he assumed presidency of Junta. Cordova Cerna said under existing constitution he was disqualified because he had led revolt against previous government; hence it would not matter whether he was president of Junta, a plain member or held no government office. While constitution could be revised, Cordova said he and Castillo thought it preferable Castillo should complete Arbenz term of office (to March 1957), and meanwhile have new constitution drawn up and hold presidential elections in which he would not be candidate. In interim country would be governed by basic status [statutes?] which would provide definite limitations on governments powers and guarantees of people.

He then launched into lengthy discussion of his plan for constituting government: Under Junta, there would be 5-man political council to formulate policy on political matters and 15-man planning council to formulate and coordinate economic policy. Policies drawn up by councils, when approved by Junta would be executed by ministries, which would be stripped of policy making functions. Economic policy would be based on free enterprise system, foreign investment would be encouraged on mutually advantageous terms, and social gains of workers would be retained and carried further.

Cordova Cerna impressed me as highly idealistic and he had obviously studied question thoroughly, but his ideas might be difficult to carry out here.

I have reason to believe Monzon will accept reduction of Junta to three members,2 will suggest holding elections in next few days and will himself propose Castillo for presidency of Junta. At moment this seems best way to solve dilemma of army—Castillo relationship.

Peurifoy
  1. Reference is to telegram 32, from Guatemala City, not printed (714.00/7–654).
  2. On July 7, 1954, the five-member Guatemalan Junta of Government unanimously elected Castillo Armas as its permanent President; Colonels Cruz and Dubois resigned, leaving the new Junta comprised of Castillo Armas, Colonel Monzón, and Major Oliva.