In 1953, during the Eisenhower administration, Peurifoy was sent to Guatemala, the first Western Hemisphere nation to allegedly include Communists in its government. The fabrications regarding the communist regime had been triggered by a year long smear campaign instigated by the United Fruit Company UFCO, after a series of social reforms had expropriated land acquired under dubious circumstances by UFCO. The "standard" of the smear campaign had been using the social reforms in the country to accuse the regime of communism. The CIA led operation was codenamed PBSuccess. He took up his position as Ambassador there in November 1953. Carlos Castillo Armas, leader of the CIA sponsored rebel forces, was already raising and arming his forces. Peurifoy made clear to Guatemalan President Jacobo Arbenz that the United States cared only about removing Communists from any role in the government. In June 1954, the CIA set into motion a plan to overthrow the Arbenz government. Peurifoy pressed Arbenz hard on his positions on land reform and played an active role in the coup. He then played a central role negotiations between Guatemala's army officers, Elfego Monzon, the head of the military junta that seized power and Carlos Castillo Armas, leader of rebel forces. Carlos Castillo Armas was later declared president of Guatemala.