GENERAL-PBSUCCESS - SPECIFIC-REPORTING OF CURRENT DEVELOPMENTS TO LINCOLN - RUN

Created: 2/3/1954

OCR scan of the original document, errors are possible

CIA HISTORICAL REVIEW PROGRAM

RELEASE AS SANITIZED

O rjO -FEB 3 4

Chief of Station, Washington

SUBJECT: coew.- PBSUCCESS

Reporting of Current Developments to Lincoln -Running Memoranda

Reference:

Attached for Linooln and Headquarters is the second in the series of running memoranda being prepared andby this atntion. It is composed of information submitted by various members of the Guatemalan ststion and each report bears the initials (in pseudonym) of tho contributor and his evaluation of the material at the time it was dictated.

The identity of aourcoa indicated in the memorandum follows by soparate dispatch.

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Clara M. Keagey.

Enclosure:

Running

2u. CMH .

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FEB 5

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anuary jf-**

the evening of 2fctated hetold by hi ^rankin* 0uuto"7ia]ah Armv officers that"- iqiiejT/iP.HIIiSLLO de Leon, Arny Chief or1only opposed to Comnunisn buteep-rootedit. Colonel PAHRIN3LL0 said that even though he hasfor President ARDEKZ and hatos his Communist leaningsto resign his post of Army Chief of Staff becauseto be on the seene when AFfBEUZ* government fallsopposition.

Evaluation:

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the evening ofanuary.OSSUdvisedbeen told by several members of the Partido'frabajo (PGT-Communist) that the Communists areto stir up some form of violence in order thatauthorities will have an excuse to retaliateannouncing that the government had beenin order to insure its future the government isdeclare the country under martial law.

Evaluation:

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Comment; On the following evening Identityelatedthe same information. It was the latter's belief that the government seeks an excuse to suspend all guarantees in order to muzzle the Guatemalan press.

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the morning of'ldvisedepartaller at his office tothat Oscan^CONDE, owner of Radio station knownUniversal,"had been arrested on the nightews program on his station known as aid that he would inquire intomembers of the local press.

Evaluation:

anuary lQgli

k- Onireection- of the municipal marketplace locatedh Street in Guatemala City. The stands and stores of nany small, independent vendors weredestroyed and, according to the press, damages are est; mated0 plus. According to Identity k, who was at the scene during and after the height of the fire, many of the burned out proprietors arc convinced that the fire was started by the government and/or Communists because the market peopleroup have been militantly anti-government and anti-Comnu Evaluation:

Comment: The fire and its consequent hardshios have been headlin

in the local press, but there has boon no mention of theth-st the "Ire was staged as Indicated above. !ioiever. the militant opposition of the market peopleact and it ia entirely possible thet they would blame theand/or the Connunlata as stnted by source.

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5. Cnanunrveported that tho following rumor Is cip^ulatintT rerjar'iin^ the recent sudden departure of MfonooVkARTINRZ, head of the National Agrarian Department.

MA^TJKEZ reportedly left -Hia'emala at the indirect request of FY sident ARBENZ. Afterscuintla to investigate illegal invasions of non-affectaolo lands by Communist-inspired campesinos, MARTINEZ returned to the capital to discuss the j altuation with ARBENZ. laixed thatwaa seeking to ! have him killed and demanded sufficient presidential support to insure an orderly application of the agrarian law. ARBENZ renortodly replied that he knew there was not room ln Guatemala for both PELL3CER and MAHTIKEZ. Ha pointedly added that PELLUC had bean very helpful in auoportln^ the government. *hen ilARTIHRZ left the President's office heaaa intercepted in the hallway by an official who informed him that his passport was ready. MARTINEZ took tho hint and left the country, but it Is believed he will not be ao easily deposed and will seek revenge against ARBENZ for faillnt; to support hla. The rumor did not include speculation as to the possible steps MARTINEZ would take to retaliate aRainst ARBENZ. Evaluation:

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On4eport from sources he considers reliable that tMore la increasing animosity betweenf the Armed "orces, and President ARBENZ. Identity b's /nidentlfiod sources claim that DIAZ has approached Roi*elioJ^RHZ VTer, head of the Guardia Civil, to seek hla support ln anr attempt to seize power. It ia not know: how CRUZ Wer reacted the proposal, but it Is alloged that CRUZ wer has not-reported the mattor to ARBENZ. Evaluation: Immediate source: C; Ultimate source: P; Content: 3*

oNote: DIAZ has been previously reported as being dissatisfied because ARBENZ was dool toward his ^residential aspirations."

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7. On.onversation with Identity u, who reportedly made the follo-.viruf statements: The arrest and detentionjcr Enrique8pLIVA and other In oppositionists were based on unfounded de/Vunciatlon3 and imaginary vslots reported to the government byuardia Civil agents, and intelligence units of ths Guardia Judicial. OLIVA has neither the prestige within the army nor sufficient intelligence and courage toubversive armed movement against the government. The police ho^ed that theyorture and threaten some of their victim into confessing details and identities involvedlot that actually did not exist. The net result of this new series of arrests willoss of hope and the disintegration of op"ngitlon forces. However, it is well to remember that many Army officers who are now ostensibly in favor of theernmenfc ln order to retain their jobs are actually opposed to present trends. mplied that such officers will desert Arbenz at the first sign of effective opposition).

(Evaluation: Immediate source: C; Ultimste source: F;.

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' 6. On the morning^dvised that he has heard three different roactions sterxning from the current publicity by the Guatemalan government to an alleged plot to overthrow the government. One reaction, which originated within business groups in Guatemala City, was to the effect that the thinking Guatemalan public considers theomplete fake i and forgery by the government; that the documents, photographs | of which appeared In. all leading papers, were fakes and that i the government is trying to stir up excitement in order to take the limelight off itself during the forthcoming Caracas Conferenc

The same identity statedecond reaction, reportedly stemming from the upper social levels in Guatemala, is to the effect that the present Guatemalan regime is completely weakened and that it is using the pretext of havinglot for employing the use of violence In the event the occasion justifies violence. The identity stated If this is true the effect Is adverse and the upper social strata is hoping that the government will dissolve itself immediately.

A third reaction, according to the same source, 3teamedelements in Guatemala City. Those oppositionof the opinion that the anti-Communist movement hasimportance than they realize; that they are better thanand daily taking couragefrom the apparent nervousnessArbenz

Original document.

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