Evening star., 1951-12-30

have waged q ceaseleSs campaign
against United States commercial and
industrial enterprises in Latin Amer
lea. So far their efforts have met
with conspicuous success only in
Guatemala, where they have been
able to gain control of the principal
labor unions, which in turn dominate
the government.
In the last few weeks, Red union
bosses, many of whom now hold key
positions in the Guatemalan Con-
gress and even the cabinet of Presi-
dent Jacobo Arbenz, have whipped
UP dangerously angry sentiment
against all United States companies,
but especially against the United
Fruit Co. and the international
Railways of Central America, in
which the fruit company owns
controlling interest. In fact, the
situation has become so grave and
tense that many observers within
the country agree that the slightest
overt incident could result In anti
' United States demonstrations and
possibly violence.
There is abundant evidence of
Moscow's influence in the Arbenz
government as well as among Or
ganiZed labor groups. Well-known
Reds from all over the world are
welcomed in Guatemala City. In the
past year and a half, such avowed
Communists as Louis Saillant of
France, general secretary of the
Moscow dominated World Federation
of Trade Unionists; Pablo Neruda,
famed Chilean poet and former Com
muniSt Senator of that country;
Vicente Lombardo Toledano of Mex
leo, head of the pro-Russian CTAL
Natin American Confederation of
Labor, and others have visited the
country as guests Of the government.
Labor Leoders Welcomed
On October IL, 1851, Lombardo
Toledano was welcomed to the Guate-
malan capital by members Of the
Presidents cabinet on the occasion
Of the merging of the leading labor
unions into a single body, which has
ioined the CTAL and the WFTU.
The principal labor leaders, such as
Victor Manuel Gutierrez, Pinto USaga
and Carlos Manuel Penecer. are. by
their own admission, Communists.
The newspapers, Octubre, edited by
Jose Manuel Fortuny. former MEM
ber of the National Congress, operates
under the Communist banner, al
though according to the constitution.
no publication advocating a foreign
political doctrine can be published.
The Communists likewise maintain
a school for the indoctrination OF the
young, known as the Colegio Jacabo
Sanchez, although this. too. is con-
trary to the law.
The recent buildup of sentiment
against the fruit company has fol-
lowed the familiar Soviet pattern.
First, an appeal to narrow national
ism by wholesale charges OF Yankee
imperialism, exploitation OF the ma
tion's natural resources and OF the
working classes. This was followed
by widespread agitation, not only
among organized workers but especl-
ally among student groups and other
irresponsible leftist elements, ana
finally pressure on the government
for confiscatory labor laws, GRIPPING
strikes and work stoppages.
In Guatemala, all these activities
are carried on in the name OF oe-
mocracy, "the restoration OF the
freedom of the people, after the
overthrow of the dictatorship" OF
the late President Jorge Ublco, follow
ing the last war. Without offering
any apology for his strict rule OF the
country. it should be pointed out that
IIhico came to power by the electlon
of the people (at least those VINO
voted) much in the same manner as
the present regime succeeoeo 70 u
fee.
Pick on Fruit Company
Of course, all contracts, concessions
and agreements affecting foreign III
terests made during and before Uplco
ore suspect. in spite of the TACT tnaU
they we're ratified by then exlsClhg
leoislatiye bodies. The American
owned power company (Empresa
Electrica de Guatemala, American
insurance companies, United states
firms that import and dlstrlpute OIL
and gasoline, American-operateo al,
lines and others, as well as the unlteo
Eruit Co. have all been subjected TO
the Communist squeeze. But united
Fruit being the largest, and having
the greatest investment, has oeen
tba object of the bittereSt condem-
nation.
The operation of several concerns
became so difficult during the past
three years. due to restrictive leglsla,
ton, Communist-inspired strikes anu
abusive agitation that they nave
closed down completely or transferred
their activities to other countries
For wears Pan American A1rWays
maintained a divisional headquarters
and a maintenance depot in Guate-
mala City. 1t employed native engl-
neers and mechanics whom it had
laboriously trained and paid good
wages. Nearly all these services are
performed elsewhere with the result
that many Guatemalans were COM
pelled to seek other employment.
Only a few days ago % United
States, Canadian and other North
American life, fire and accident in
surance companies announced then
intentions to discontinue operations
in the country. This was due to the
passage of law, now awaiting the
signature of the President, providing
for the enforced investment OF prac-
tically 100 per cent of all insurance
resources locally, and the payment o.
all policies in local currency, alon&
with other crippling restrictions.
More Concessions Demanded
Unfortunately, it is not SO easy fol
a hYdroelectric plant, railroad or