» present government in Guatemala has been called a Moscow-financed conspiracy whose aim is to establish a Soviet Re- public in the Americas. What is the truth? The Guatemalan Revolution of 1944 had its roots in the anti- fascist struggle of World War Il and was guided and inspired by the “Four Freedoms” of the At- lantic Charter. It was an out- as such. This democratic movement was backed by a coalition of profes- sional, business and labor ele- ments supported by the army. The present regime is popular with the middle class as well as with labor and the peasantry. The economic system prior to the 1944 revolution was feudal- istic; the economy today is in a transitional stage between feud- alism and liberal capitalism. Guatemala does not have nor does it envision socialism. a Guatemala’s government has been described as a “Slav-type oligarchy” dominated by a left- wing minority. What is the actual form of government in Guate- , mala? Guatemala is a constitutional democracy. The President and the Congress are freely elected by the citizens, who exercise the right to organize political parties either for or against the govern- ment. a Most newspapers take the offi- cial U.S. State Department line that Guatemala is “Communist controlled.” Is this ‘true? The Communist party is legal in Guatemala. Only four years old, it is one of the smallest par- ties. Communists comprise only about one-fifteenth of one per- cent of the total population. There is not a single Commun- ist in the cabinet, and there are only four Communists in the 56- member Congress. a it is often stated that the Guate- malan Communist party exercises an influence far out of proportion to its membership. If this is true, how can it be accounted for? The Communist party (called the Guatemalan Workers party) has taken an active part in labor organization and in promoting and © accelerating the legal distribution ef land to the landless peasants; by doing so, it has earned the respect of the people. Gordon Pates wrote in The San Francisco Chronicle (October 11, 1953): _“Theit success .... appears to stem largely from: their willing- ness to embrace popular. national ‘eauses, and their. ability to iden- - tify themselves closely with the Guatemalan people in their strug- gle for economic betterment.” :. Sydney Gruson of the New ’ York Times wrote (February 23, 1953): “ . . . there is a tendency to lose sight of the fact that if there had not been a single Commun- ist in Guatemala, the revolution- aries who overthrew (Dictator) Jorge Ubico still would have in- sisted on the present program ... that is generally condemned as Communist-inspired.” , a a What are the Guatemalan re- forms that have caused so much controversy? ; : The most important has been the land reform. In Guatemala two percent of the people owned 70 percent of the land, while mil- Kons of peasants were without any land whatever. The govern- ment expropriates only the un- cultivated land of large landown- ers and pays for it with interest- growth of the Roosevelt Good | Neighbor policy and was hailed Dallas, : = Pacitic Ocean answers on Guatemala hearing bonds. So far about one million acres (less than four per- cent of the total land area) have been expropriated. - There is no discrimination against foreign-owned land; gov- ernment plantations have been expropriated as well as private holdings of the president, the foreign minister, and other mem- bers of the government. ; Under the dictators no labo laws or unions were permitted. New labor laws have favored the formation of unions of workers and farmers. : i Some other reforms are a so- cial security system, expanded public schools, national hygiene and health programs, government liousing, extension of highways, government loans to farmers and power projects. Who objects to these reforms, vand why? i The principal opponent of re- form is the U.S. fruit trust, Unit- ed Fruit Co., Guatemala’s largest landowner and largest. employer. Four hundred thousand acres of its uncultivated land were expro- priated and paid for at the com- pany’s own evaluation. Prior to the revolution this corporation dominated Guatemala’s economic life. It controlled the govern- ment, and ran the country for its own profit. United still con- trols the country’s only railroad, its seaport facilities and ocean shipping to and from Guatemala. Democracy threatened United’s r:gid control of Guatemala. Land reform, unions, labor codes, high- ways and new ports hinder Unit- ed’s unfettered exploitation of the Guatemalan people. Formerly the United Fruit Company and other foreign monopolies enjoyed spec- jal privileges and exemptions in Guatemala; now they must oper- ate on a, basis of equality with domestic enterprises and obey the laws. a lt has been asserted frequent- ly that the operation of foreign enterprises has been beneficial to Guatemala. To what extent is this true? By Under United Fruit control for almost half a century, Guatemala - was one of the least developed countries in the world. Its peo- joyed no democratic rights, were decimated by tropical’ diseases and tuberculosis, and were 70 percent illiterate. Farm laborers received less than 25 cents a day in wages and all workers were forbidden to organize. : The country had almost n roads or other communications, virtually no industry and little electric power. Its agricultural production was so low that basic foods had to be imported at ex- erbitant prices. It is true that United Fruit modernized those facilities relat- ed to its own operations; but ‘meanwhile, progress of the coun- try as a-whole was kept at a standstill.’ : « & Are monopolies such as United» Fruit able to influence U.S. for- eign policy? : Yes. Some of the principal ad- vocates of intervention in Guate- mala have versonal or family con- nections with these monopolies and also exert strong influence in the U.S. government. John Moors Cabot, Assistant Secretary of State for Inter-Am- erican Affairs, led the attack against Guatemala. His brother, Thomas D. Cabot, is a director of the First National Bank of Bos- . ton (the United» Fruit bank). Thomas D. Cabot is also Director of International Security Affairs for the U.S. State Department. U.S. Secretary of .Commerce Sinclair Weeks is a director of the First National Bank of Boston. Spruille Braden, former Assist- - ant Secretary of State for Inter- American: Affairs, is now. Public Relations Director of United Fruit. The electric monopoly in Guate- mala is controlled by Morgan in- terests, and the tieup between the Morgan empire and the Eisen- hower administration, through such figures as Defense Secre- tary Charles E. Wilson, Sen. Hen- ry Cabot Lodge and Robert T. Stevens, Secretary of the Army, is well known. United Fruit also has interlocking directorates with key Morgan concerns. How serious is the threat of foreign intervention in Guate- mala? The threat i$ grave and im- - By ELLIOT CLAY ple lived on a starvation diet, en- JACOBO ARBENZ GUZMAN GUILLERMO TORIELLO. A Communist government? A threat to the Panama Canal? ‘That’s what U.S’ government spokesmen say. Here are the facts--the questions and answers. - Questions and ———2 mediate. A growing number of US. legislators, politicians, busi- nessmen, financiers and even labor and farm leaders have open-. ly advocated intervention. The democratic Guatemalan government has weathered over 20 armed revolts since 1944, most of them involving foreign armies” and financial support. In Febru- ary the government published | documentary evidence of an in- vasion plot implicating Nicaragua ~ and the Dominican Republic. Un- ited Fruit Co. was to supply weapons. i ‘ The U.S. has refused to permit sale of arms to Guatemala in re- cent years, . while supplying abundant war materials to Nica- ragua, El Salvador, Honduras and Costa Rica, all hostile to Guate- mala. According to Business Week (March 21, 1953) these — countries are “spoiling for a chance to uproot the present Guatemalan government.” Yet when Guatemala imported neces- sary defensive armaments and anti-aircraft shells from Europe, the U.S. government and ‘press regarded this as “aggressive.” A US. resolution passed at the recent Inter-American Conference at Caracas, supposedly to pre- vent “communist aggression,” was aimed directly against Guate- mala. A meeting of the Organiz- ation of American States set for July will plan intervention by neighboring dictator - governed countries under U.S. political » control. Nicaragua has already broken diplomatic ties with Guate- mala‘ and asks that the Caracas resolution be applied. The, “rebel” invasion from Honduras which began a fortnight ago was the opening move in the foreign intervention: plan. Does Guatemala really threaten neighboring countries or the Pana- ma Canal? . 1 Nos PACIFIC TRIBUNE — JULY 2, 1954 — PAG The Guatemalan border is, 4 distant from the ‘Panama Cana, as it is from Brownsville, Texas, or Key West, Fla. An assault on the canal would require the mevement of ground troops through more than 800 miles of mountains and. trackless jungle, and through four well-armed hos: — tile’ countries. ca \ Why, then, is Guatemala of such great concern to the U.5- government? ak Guatemala has asserted its 1% dependence from foreign contro at a time when U.S. imperialism is expanding rapidly and requires subservient governments to i sure steady profits to investors. Forty percent of all U.S. direct foreign investments is in Latin America, some $6 billion in all. Latin America takes 40 percent OF all U.S. exports. : Guatemala endangers imperial: ism by setting an example of d& mocracy .and independence for people now under U.S. controlled dictatorships. Why is Guatemala of particU: — lar concern to North America® labor? : The campaign against Guate mala is a campaign to perpetuate — the United Fruit Co. monopoly. Anyone who has worked for this. corporation, for the United Frul Steamship Lines, for Fruit DS patch or for any of United’s more than 50 subsidiaries, knows’ t anti-labor policy which has chat — acterized the corporation throug?” out history. Strengthening ‘monopoly through the suppre> sion of Guatemalan democra¢ means weakening both U.S. 22° Central American labor. : In Guatemala we see the strug gle between an independent 0© mocracy and U.S, ‘imperialis®™- Imperialism aids monopoly, # injures workers and consumer=. Imperialism is internatio?, -and defense against it must. 4 international. Thus organ workers of the U.S. and Cam must join with their Latin crican allies if the anth pe cratic, anti-labor forces oo We held in check. Every North | iy mala. : 10. ae