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SECRET 47 be difficult and the influence of labor (and In the immediate future, a slightly more con- Communism) would be considerably dimin- ciliatory attitude toward the US may be ex- ished. There would, of course, continue to be pected to result from the replacement of the a large number of the working class who would leftist Muñoz Meany by moderate González be receptive to Communist propaganda, but if Arévalo as Foreign Minister. There is no in- not adequately led and not favored by a tol- dication, however, that the government's an- erant government, they could exert little in- tagonistic attitude toward US business inter- fluence. (4) The increasing indebtedness of ests will be abandoned, although it may be the government will favor adoption of a pro- modified somewhat. Concentration on the US policy. The United States has offered presidential campaign may cause Guatemalan financial and technical assistance to Guate- aid to foregn "democratic" revolutionary mala, and leading Guatemalan officials and groups to diminish, but expressions of sym- presidential candidates are aware of the ad- pathy with "democratic" governments and vantages of a pro-US policy. No evidence is political factions will continue. Guatemala's available to indicate that the USSR has offered claim to Belize, supported by conservatives and comparable benefits to Guatemala, or that the liberals alike, will continue to be advanced. country, the government, or high officials of 5. Military. the government would benefit materially from The growth of a militant labor movement in a pro-Communist, pro-USSR policy. (5) Guatemala will, it is estimated, force the army Whereas Arévalo's political idealism has led to assume a more active role in political af- him to establish an administration that per- fairs-to the advantage of the conservative mits the freedom of expression enjoyed by the factions. Although some efforts may be made Communists, there is no evidence to suggest under Major Paz Tejada to improve army that his successor is imbued with a similar equipment and training, no great change is to idealism. It is likely that all the presidential candidates are less idealistic and more mate- be expected in the capabilities or functions of the armed forces. rialistic (or "practical") than Arévalo. 6. Strategic Considerations Affecting US Se- 3. Economic. curity. In view of prospects for a continued world Pending the development of possible oil re- coffee shortage, which would assure the sale, serves at some time in the unforseeable future, at advantageous prices, of Guatemala's pri- the positive contribution which Guatemala can mary export, and in view of a continued de- make toward US security will continue to be mand for Guatemalan bananas, Guatemala's economic situation should remain favorable. slight. Its location within the US defense The development of Guatemalan oil resources sphere, however, will continue to make it a in the near future is not indicated. possible location for US or enemy military and propaganda operations. Because Guatemala 4. Foreign Affairs. is incapable of defending itself against a strong In event of a third world war, Guatemala enemy, the denial of its facilities and resources may be expected to support the US, provided (admittedly limited) to such an enemy is pri- its economic security would not be endangered. marily a US responsibility. SECRET

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    "ocrText": "SECRET\n47\nbe difficult and the influence of labor (and\nIn the immediate future, a slightly more con-\nCommunism) would be considerably dimin-\nciliatory attitude toward the US may be ex-\nished. There would, of course, continue to be\npected to result from the replacement of the\na large number of the working class who would\nleftist Muñoz Meany by moderate González\nbe receptive to Communist propaganda, but if\nArévalo as Foreign Minister. There is no in-\nnot adequately led and not favored by a tol-\ndication, however, that the government's an-\nerant government, they could exert little in-\ntagonistic attitude toward US business inter-\nfluence. (4) The increasing indebtedness of\nests will be abandoned, although it may be\nthe government will favor adoption of a pro-\nmodified somewhat. Concentration on the\nUS policy. The United States has offered\npresidential campaign may cause Guatemalan\nfinancial and technical assistance to Guate-\naid to foregn \"democratic\" revolutionary\nmala, and leading Guatemalan officials and\ngroups to diminish, but expressions of sym-\npresidential candidates are aware of the ad-\npathy with \"democratic\" governments and\nvantages of a pro-US policy. No evidence is\npolitical factions will continue. Guatemala's\navailable to indicate that the USSR has offered\nclaim to Belize, supported by conservatives and\ncomparable benefits to Guatemala, or that the\nliberals alike, will continue to be advanced.\ncountry, the government, or high officials of\n5. Military.\nthe government would benefit materially from\nThe growth of a militant labor movement in\na pro-Communist, pro-USSR policy. (5)\nGuatemala will, it is estimated, force the army\nWhereas Arévalo's political idealism has led\nto assume a more active role in political af-\nhim to establish an administration that per-\nfairs-to the advantage of the conservative\nmits the freedom of expression enjoyed by the\nfactions. Although some efforts may be made\nCommunists, there is no evidence to suggest\nunder Major Paz Tejada to improve army\nthat his successor is imbued with a similar\nequipment and training, no great change is to\nidealism. It is likely that all the presidential\ncandidates are less idealistic and more mate-\nbe expected in the capabilities or functions of\nthe armed forces.\nrialistic (or \"practical\") than Arévalo.\n6. Strategic Considerations Affecting US Se-\n3. Economic.\ncurity.\nIn view of prospects for a continued world\nPending the development of possible oil re-\ncoffee shortage, which would assure the sale,\nserves at some time in the unforseeable future,\nat advantageous prices, of Guatemala's pri-\nthe positive contribution which Guatemala can\nmary export, and in view of a continued de-\nmake toward US security will continue to be\nmand for Guatemalan bananas, Guatemala's\neconomic situation should remain favorable.\nslight. Its location within the US defense\nThe development of Guatemalan oil resources\nsphere, however, will continue to make it a\nin the near future is not indicated.\npossible location for US or enemy military and\npropaganda operations. Because Guatemala\n4. Foreign Affairs.\nis incapable of defending itself against a strong\nIn event of a third world war, Guatemala\nenemy, the denial of its facilities and resources\nmay be expected to support the US, provided\n(admittedly limited) to such an enemy is pri-\nits economic security would not be endangered.\nmarily a US responsibility.\nSECRET"
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