Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

HO–16. Telegram from the Ambassador in Honduras (Burrows) to the Department of State¹

Tegucigalpa, November 4, 1960, 5 p.m.

359. Deptel 193.²

Following estimate preliminary with despatch to be pouched soonest.³ Re United Fruit policies and prospective labor and political repercussions, see Embassy despatch 62⁴, 128⁵, 137⁶, Embassy airgram G-25⁷. Latest information indicates company planning invest eleven million dollars in planting 32,000 acres with disease resistant banana varieties plus two million in paper box factory. Unknown whether additional land investment anything more than replacement for lands rapidly being abandoned to disease; and unknown whether investment to be for company or independent operations. Latter still primary labor concern. November 20. Hale told Labor Attache⁸ Sitraterco has lost approximately 1,000 dues-paying members since 1958, probably half due to land turn-over policies, remainder to other company disengagement practices. Resultant deteriorating labor situation places leaders under extreme pressure from membership. Labor’s immediate concern is fact GOH has not yet replied their petition to apply collective bargaining rights to independents. Meanwhile opportunists continue exploit situation, particularly Tegucigalpa labor advisor Reyes Ayestas. Most ORIT-oriented labor leaders not likely to be seduced by Castro. Real danger is that there may be ousted by membership unless effective combination GOH and company policies and actions forthcoming soon.

Moderate liberal GOH leadership has generally resisted extremist leftwing pressure, although always with indecisiveness which reflects essential political weakness. Embassy repeats loss of organized friendly labor support could well be critical in terms continuance present GOH policies or, ultimately in terms survival present administration. In latter circumstance only armed forces could save administration. These, although neutral in last 18 months vis-a-vis internal political groupings, are overwhelmingly anti-Communist and anti-Castro. Their minimum current requirements cited in points one-three, paragraph 8, Embassy despatch 79.⁹

Burrows

1. Source: Department of State, Central Files, 815.062/11–460. Confidential; Priority. Charles R. Burrows was appointed Ambassador to Honduras on August 27 and presented his credentials in Tegucigalpa on November 3.
2. See Document HO–15, footnote 1.
3. On November 10, Ambassador Burrows transmitted the Embassy’s assessment of the United Fruit Company’s operations and plans to the Department of State. (Desp. 159 from Tegucigalpa; 725.00/11–1060)
4. Not printed; 815.2376/8–3160.
5. Not printed; 815.2376/10–1960.
6. Not printed; 815.062/10–2660.
7. Not printed; 815.062/10–2160.
8. John H. O’Grady.
9. On September 9, the Embassy in paragraph 8 of the referenced despatch informed the Department of State of the Honduran Armed Forces’ minimum requirements of arms and ammunition. (715.5-MSP/9–960)