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Strategic Visions: Volume 17, Number II. 1 Which Was the Most Significant Factor in Causing the United States to Intervene in G Strategic Visions: Volume 17, Number II. Which was the Most Significant factor in interests the most significant factor in Causing the United States to Intervene in triggering US involvement in the 1954 Guatemala in 1954: Business Interests or Guatemalan coup, or was it the potential Anti-Communism? communist threat? By: Tom Golebiowski The divisiveness of this issue is In 1954, Guatemala underwent a reflected strongly in scholarship of the controversial US-engineered coup d’état subject. Notable academics such as that would prove to be a significant Stephen Kinzer and Stephen Schlesinger moment in US-Latin American Cold War point to United Fruit as the driving force relations. The coup was seen by many in creating a false communist panic across the world as a clear example of whereas others like Richard Immerman the United States testing the limits of and Piero Gleijeses argue that business justifying its intervention in foreign interests only contributed minimally to regimes. The US defended its actions by what was a long-established anti- directing focus to the left-wing policies communism campaign.3 In this essay, I of President Jacobo Arbenz and his will be exploring the different frequent collaboration with known arguments surrounding this debate and communists. Overthrowing Arbenz was showing that, despite the complexity argued to be a legitimate act as the US and interdependence of both factors, the was exercising its responsibilities to threat of communism was ultimately the protect the western hemisphere from main cause of the coup. communist infiltration as agreed by Organisation of American States.1 The arguments presented for both However the fact that Arbenz’ anti-communism and business interests government made significant challenges as factors within this debate are to the businesses interests of the US in comparably coherent. The suggestion Guatemala hints that anti-communism that the United Fruit Company (UFCO) may not have been the true source of had a significant impact on the 1954 the coup. The US-owned United Fruit coup is convincing when the scale of Company was a dominant force in their influence is revealed. UFCO was a Guatemala’s economy with ownership major player in the Guatemalan of over 42% of the country’s land as economy. Conventionally, the company well as control of the country’s railroad focused on fruit production and and telegraph systems.2 Arbenz’ distribution and had a monopoly over extensive land reforms threatened the Guatemalan banana industry. United Fruit and US business hegemony However as it grew, ‘El Pulpo’ (the in Guatemala and it could be argued that octopus), as it came to be known, this is true reason why he was expanded into Guatemala’s overthrown. There therefore exists an infrastructure.4 By the late 1940s, UFCO important debate over the cause of US controlled 690 of the 719 miles of intervention: were American business Guatemala’s railroad as well as the telegraph system and two out of three of 1 Council on Foreign Relations. The Organization of American States. [online] Available at: https://www.cfr.org/backgrounder/organization-american- 3 Streeter, S. "Interpreting the 1954 U.S. Intervention in states [Accessed 12 Dec. 2017] Guatemala: Realist, Revisionist, and Post Revisionist 2 Agyeman, Opoku. Power, Powerlessness, and Perspectives” The History Teacher, Vol. 34, No. 1 Society for Globalization: Contemporary Politics in the Global South History Education, 2000 p. 65-67 Lexington Books, 2014, p. 45 4 Immerman, R. The CIA in Guatemala. Austin: University of Texas Press, 1982 p. 70 1 Strategic Visions: Volume 17, Number II. the country’s trading ports.5 It is twenty times more was demanded by unsurprising that by 1954, 77% of all UFCO and its lobbyists in the State Guatemala’s exports went to the US and Department.12 UFCO’s power was 65% of imports came from the US.6 heavily diminished by Arévalo and Arbenz and it is clear to see why they Prior to the 1944 revolution in would have a motive for wanting Guatemala, UFCO was looked upon revolution. favourably by Guatemalan dictators Manuel Estrada Cabrera and Jorge Ubico In addition, UFCO affiliates had a who independently granted the strong presence within the US company a number of tax concessions government. John Foster Dulles and and deregulation opportunities with the Allen Dulles, Secretary of State and goal of gaining favour with the US.7 Director of the CIA under Eisenhower However after the overthrow of Ubico respectively, were both former lawyers and the rise of new president and of UFCO.13 Eisenhower’s personal former professor Juan José Arévalo, secretary was married to UFCO’s chief UFCO’s previously unchallenged power lobbyist and Henry Cabot Lodge, US began to diminish.8 In 1947 Arévalo ambassador to the UN, was a major introduced the Labor Code which stockholder in the company.14 It was awarded protection and benefits, such John Foster Dulles in fact who lobbied as a minimum wage, to Guatemala’s Arbenz’ government for greater workers.9 As the largest employer in the compensation for UFCO’s expropriated country, UFCO was strongly affected by lands.15 A representative of Dulles’ State Arévalo’s reforms and accordingly felt Department even argued that “If persecuted by the new regime.10 [Guatemala] handles an American Matters were made worse when company roughly, it is our business.”16 Arévalo’s successor, Arbenz, went a step UFCO had important influence at the further by enacting mass land reforms highest level and was even heavily that expropriated around 408,000 acres involved in the CIA’s early operation of uncultivated land from UFCO.11 PBFORTUNE, in which it offered to turn Arbenz offered compensation to the over two its freighters to the CIA for company to the value of $1,185,000 but arms transportation.17 Likewise UFCO had massively undervalued its independently from the CIA, at Salama, land for tax avoidance purposes. Nearly United Fruit, together with Dominican dictator Rafael Trujillo, provided weapons and funds to a group led by a 5 Magoc, C. and Berstein, D. Imperialism and Expansionism in American History. A Social, Political, and Cultural former UFCO associate in a failed Encyclopaedia and Document Collection. 4 vols. Santa uprising.18 It is unsurprising therefore Barbara: ABC-CLIO, Inc. 2015, p. 856 6Agyeman, p. 45 7 Mirza, R. (2010). American invasions. Canada to Afghanistan, 1775 to 2010. Trafford, 2010, p. 161 12 Ibid. 8 The Library of Congress. Juan José Arévalo Bermejo 13 Schoultz, L. Beneath the United States. Cambridge, Mass.: (Guatemala) (1904-1990). [online] Available at: Harvard University Press. 2003, p. 338 https://www.loc.gov/item/n81127285/juan-jose-arevalo- 14 Cohen, Rich The Fish that Ate the Whale. New York: bermejo-guatemala-1904-1990/ [Accessed 12 Dec. 2017] Farrar, Straus & Giroux, 2012. p. 186. 9 Gleijeses, P. Shattered Hope: The Guatemalan Revolution 15 Schlesinger, S. and S, Kinzer. Bitter Fruit: The Story of the and the United States, 1944-1954. Princeton, N.J.: Princeton American Coup in Guatemala. Cambridge, Mass: Harvard University Press, 1992, p. 94 University, David Rockefeller Center for Latin American 10 Streeter, S. Managing the Counterrevolution: The United Studies, 2005, p. 76 States and Guatemala, 1954-1961 Ohio University Press, 16 Cullather, N. and Gleijeses, P. Secret History: The Cia's 2000, p. 15 Classified Account of Its Operations in Guatemala, 1952- 11 Gleijeses, P. “Juan Jose Arevalo and the Caribbean 1954. Stanford, Calif: Stanford University Press, 1999, p. 16 Legion.” Journal of Latin American Studies, vol. 21, no. 1, 17 Gleijeses, Shattered Hope, p. 230 1989 p. 474 18 Gleijeses, Shattered Hope, p. 220/221 2 Strategic Visions: Volume 17, Number II. that in his final address to the nation leanings of Arbenz.24 This assessment before abdicating, Arbenz claimed: “the was intensified by the close relationship United Fruit Company, in collaboration of his wife to known communists25 and with the governing circles of the United the fact that upon the death of Stalin in States, is responsible for what is 1953, Arbenz declared that Guatemala happening to us.”19 was in public mourning.26 Despite the clear influence of United In the early 50s, the political climate Fruit on the overthrow of Arbenz, the of the United States also contributed to notion of communism within the the assessment of Guatemala as a administration provides a similarly communist threat. The US was gripped strong argument for the basis of the by the ‘red scare’; a communist witch- coup. Within Arbenz’s government hunt led by Senator Joseph McCarthy of there was considerable leniency Wisconsin that heightened the fear of towards communism and to some communist infiltration in the US.27 degree, actual communist influence. Risking being blacklisted if they did not Although Arbenz was not a communist stand with McCarthy, government himself, Arbenz’s left-wing ideology employees sought to demonstrate their matched the political objectives of the anti-communist leanings and many Partido Guatemalteco del Trabajo reports on strong communist threat of (Guatemalan communist party) and Arbenz were written by McCarthyites.28 thus they mobilised support for him in This was contributed to by a number of the working classes.20 Though they Eisenhower’s top advisors such as the played only a small part in his Dulles brothers, who were hard-line government (only four out of fifty-one anti-communists.29 John Foster Dulles deputies in 1953/54 Guatemalan consistently increased tension over the congress were PGT representatives), communist threat in Guatemala, even Arbenz legitimised the PGT as one of remarking over national television: “If four ruling parties in Guatemala.21 In the United Fruit matter were settled, if fact one of Arbenz’s closest advisors on they gave a gold piece for every banana, his controversial land reforms came the problem would remain as it is today from the PGT.
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