IO. 
29 dunes 1954 
we 
CENTRAL 
AGENCY 
NC 
INTELLIG 
OFFICE CF CU! 
Chae: 
| 
oval’ 
22 COPY 
! 
ms 
vA 
» 
~~ 
6. * 
a. 
‘ 
¥ 
“ 
| 
| 
| 
| 
| 
WY 7 
| 
| 
INTELLIGENCE 
+ 
|
28. 
Gemrent on the situation in Gustevala: 
. Only limited and 
redatively wminportant territory 
ves time for been eecupied 
the pgebe)] 
forees of Gastilla 
. 
the eities ot 
and Zacap2 resid uider 
control, 
' 
to an 
COLL 
Visited Castijlo's 
in the 
town or Esarinulas on 
‘nee, 
reports that Jocal recuitirs, Gsic) by the Castillo 
Maetillo forees were attacking the city of Chinquimula, 
25 wiles in fron the border, cu 235 
Meandiule, there appear te have 
nie vnoicsale 
desertions from the Guatemalan army anc key commanders 
apparently remain loyal. 
Kebel air activity has, however, 
seriously weakened army morale and the ary as yet to prove 
itself in a major engagcrent. 
The chief of staff of neighboring, Ei Saivador informed 
on 22 June that 2,500 trained army 
reserves had been called to active service. 
President 
Qsorio told the American ambassador on 23 June that he was 
“not too confident"' of Castillo Arms’ success. 
He said that 
if Castillo fails, Guatemala will probably invade Honduras. 
"If a general Central American war develops," he said, 
“naturally El Salvador will participate." 
| 
Ururuay opposes further planning, for OAS meeting on 
Guatanila: 
In response to a danarche 
by Anbassador McIntosh 
on 22 June, Uruguayan foreipn minister Pittaluga expressed 
strong, opposition to poing ahcad with the plans, made prior 
to the current Guatemalan crisis, for an Orgunization of 
American States (OAS) meeting, on Guatemala on 7 July. 
He 
said that Uruguay may revoke permission to use Montevideo 
as a site. 
Pittaluga stressed the "impropriety" of holding such a 
meeting, while the Cuateml1an govermient is "fishting for its 
life." 
He also said that the resolution proposed by Washington 
~25 June 54 
r 
“Ff
> 
~ 
micht violate the, Securiiy 
s resolution of 20 
asking Ui menbers ioe to aid either 
side. 
| 
\ 
| 
Cooment: 
Siuce the beginnirg of hostilities in Guatonala, 
countries have atreed to so through with the original Patt 
al, and one of these--Panamu--has stated it may propose 
A two-thirds majority, or 14 votes, 
necegsary 
to: netion in tke Z2i-menber OAS. 
Anti-American and pro-Guatenalan rioting and other demon- 
| 
strations in Uruguay, Chile, Argentina, Nexico aud Honduras-— 
nonu2 of which countries is included in the ten mentioned 
i 
2bove--may increase pressure for having any full OAS meeting 
i | 
Giscuss thr ats’ to hemisphero security in -general rather thar 
! : 
‘ 
ae 
.
* 
coPY 
:TEM 
Guatemalan Army takes over Coverament from Arbenz: 
. 
On 27 June pressure from Guatemalan 
. 
army leaders forced President Arbenz’ 
a 
resignation and Chief of the Armed Forces 
- 
Colonel Carlos Enrigue Diaz assumed con- 
During the afte rnocd of 27 See Colonel 
Diaz requested aan meetings withAmbassador Peurifoy. In the 
first meeting, Diaz informed the ambassador that in order to 
ie, 
bring the fighting to an end he was prepared to take over the 
presidency and clean out the Communists from the government. 
. 
He asked that the United States use its good offices to stop the 
fighting. 
In the second meeting, Diaz informed the ambassador 
that he had just told President Arbenz of the army's unanimous 
desire for Arbenz' removal from office. Arbenz had replied 
that he would not try to coutinue without army Support. 
Diaz 
=: 
gave his word of honor, at Arbenz’ demand, not to enter into 
negotiat! ons with the rebel leader Castillo Armas. 
In a ten minute radio 
that even- 
ing, Arbenz announced ‘the’ transfer of power. to ‘Diaz... He _ 
. 
concemred the United Fruit Company and "U.S. ruling circles" 
for unleashing the " cruel war against Guatemala” on the "pre- 
text of Communism," but declared that “unless we do away 
Si 
. with our powerful enemies’ pretext, Guatemala might be 
stroyed." He promised, however, that under Colonel Diaz 
_.“ - 
“all social conquests will be kept" and asked "all democratic 
political and povular" organizations to give Diaz their full 
Suocort. 
“He then exnressed the opinion that "the military 
Situation is not difficult, not at ali," and that the "enemy, 
commanding barbarous mercenarias, is incompetent, coward- 
ly. 
Following Arbenz on the radio, Diaz 
eppealed for popular support while assuring his Guatemalan 
listeners that the "struggle against the invaders will ccntinue 
.- 
implacebly” and that the "acouisitions 
democracy" will be | 
- 
meintgined. 
27 «Tune 
- 
| 
° 
| 
| 
‘ 
|