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Williams College Libraries Copyright Assignment And WILLIAMS COLLEGE LIBRARIES COPYRIGHT ASSIGNMENT AND INSTRUCTIONS FOR A STUDENT THESIS Your unpublished thesis, submitted for a degree at Williams College and administered by the Williams College Libraries, will be made available for research use. You may, through this form, provide instructions regarding copyright, access, dissemination and reproduction of your thesis. The College has the right in all cases to maintain and preserve theses both in hardcopy and electronic format, and to make such copies as the Libraries require for their research and archival functions. _ The faculty advisor/s to the student writing the thesis claims joint authorship in this work. _ I1we have included in this thesis copyrighted material for which I1we have not received permission from the copyright holder/so If Y\)lI do flt)i SC(:llrc copyright pcrl11issior.s b) the' time your lhc<;j:-;; I':> submitted. you will Qilll'C' alloweu iii ::;ubmit. I 10\\"e\""::I". if the ncccsstJlY L:opyright pcrmissil)nS 'lfl..' not receiv(-d, c-p,bting of YDur ihc�i; 1fj,IY be ;tff'o:.'.lIt:d. Copyrighwd 111<ttcrial may im.:ludc i1l1:1gc..; (idbk':,. dn(\\ ing:-;. pholOgraph:-.. ligul''':s, Ill;JpS, gr:lph<... �:I(.), St)unJ tilC'.:." vide() TlllHcrillt. cI.ltl sets. :\l1d large portions (Irk,xl. I. COPYRIGHT An author by law owns the copyright to hislher work, whether or not a copyright symbol and date are placed on the piece. Please choose one of the options below with respect to the copyright in your thesis. �� /we choose not to retain the copyright to the thesis, and hereby assign the copyright to Williams College. Sdcc llllg tlli" ()fHion \' ill a,,�igJl copyrighl 10 the College. If the iluthor'" wi"ttl's I:'ltl;r 10 puhli�h (' .... �o \;, tlK ,,-orK, hl',:'shc/'th.::y wil! Ih� J 1(1 obtain pcrmi sioll 10 do 1'1"0111 Ihe Libr:1ri,;" lJi(:h wil! be g,l';mh.'J C,'-;(:('pl illlU1USU.t! ...:irc\lTn."I.mce" The Libr,lric5 will he frc(' in this (',ISl' In ;11<:.0 gr:1!lt p('rmj�:c;il)Jl to<1nother :\�se;lJchi..'r 10 publi<;h ";\)liK or all o/lhc the·"j", IfY\)lI h3V''; cll(l�(:n tlli .... optioll. you d\) Ill'! lK'(:d to COl1lplck� [-he next section ,'lIld <.';)ll proc('cd to Ih� sign:ltun:: line. _ I1we choose to retain the copyright to the thesis for a period of __ years, or until my/our death/s, whichever is the earlier, at which time the copyright shall be assigned to Williams College without need of further action by me/us or by my/our heirs, successors, or representatives of my/our estate/so SC'J...;(;lil1t!, this option 3ilO\v's the author/,.; the llc:dbilily ot rCI:1ining hi<;/hcr/tilcir ...:opvrighr ror a )'\;'rind or Y8a!':-> or (or Ii t�,. II. ACCESS AND COPYING If you have chosen in section I, above, to retain the copyright in your thesis for some period of time, please choose one of the following options with respect to access to, and copying of, the thesis. I/we grant pennission to Williams College to provide access to (and therefore copying of) the thesis in electronic fonnat via the Internet or other means of electronic transmission, in addition to pennitting access to and copying of the thesis in hardcopy format. ';,'1,,('1 1:li:; upli<lll all<1i\s Ilh: I..ibillrics lu InHIQllilti1c Ih".I�is il! ckClr,mic i"tT!lat \'i:l Ihe Illknw\. Illis 1)I>lil)11 will ilwrc'i<q\' q-kilI. ide to lil,: th,:,;!:·: <In,L IX::;;lu the: I/we grant permission to Williams College to maintain and provide access to the thesis in hardcopy format. In addition, I1we grant permission to Williams College to provide access to (and therefore copying of) the thesis in electronic format via the Internet or other means of electronic transmission after a period of ___ years. _ I1we grant permission to Williams College to maintain, provide access to, and provide copies of the thesis in hardcopy format only, for as long as I1we retain copyright. Ill' np]!\)fl �dl\l',\,\ (l�l,:l-'>,,; [() YUllf \.\�)lk ill dl( \vork ��l!ch �;Ck;(.�lj (urln . lint iu electronic j'Or1YHd. _ I/we grant permission to Williams College to maintain and to provide access to the thesis in hardcopy format only, for as long as I1we retain copyright. Signatures removed IN FLUE CE AND IMPOTENCE: MULTINATIONAL CORPORATIONS AND THE UNITED STATES GOVERNMENT IN GUATEMALA AND CHILE by ROBERT ALEXANDER DYROFF Roger A. Kittleson, Advisor A thesis submitted in partial ful fillment of the requirements for the Degree of Bachelor of Arts with Honors in History WILLIAMS COLLEGE Williamstown, Massachusetts April 19'", 2010 For my brother, Adam ii Contents Abbreviations ............................................................................................................................. v Introduction ............................................................................................................................... 1 I. Influence, Intelligence, and the Fall of the United Fruit Empire ................................ .......... 9 II. Government, Gossens, and Geneen: ITT and the U.S. Government in Chile ................... 69 III. Cracks in the Barrier, Commies in the South ................................................................... 117 Conclusion: At Atm's Length .................................................................................................. 132 Bibliography ............................................................................................................................137 iii Acknowledgements The alleged collusion between two titans of global power, U.S. multinationals and the U.S. government, was the topic of my college entrance essay, and so I suppose it is fitting to end my time in the Purple Valley in the same manner that it began. I had no idea that the inspiration for the few hundred words that I sent to the admissions office would eventually fuel the creation of this work. I thank my advisor, Professor Roger Kittleson, whose faith in me helped to right the ship even as I believed capsize was inevitable. I thank the educators I have come to know in the history field, from Peter Tenney at Crossroads Academy, who captured the imagination of a class full of rowdy elementary students, to William Murphy at Hanover High School, who administered practice quizzes on computers old enough to be history lessons by themselves. I thank my coach, Ed Grees, whose guidance over the past few years has been invaluable. I thank my housemates; particularly Marc Pulde and Nick Daen, who dragged me out of the library, dazed and burntout, to experience the more social side of college life. I thank Zach Miller, a friend and confidante, whose drive and work ethic has inspired me to openly accept each new challenge. This work was one of rhem. Finally, I thank my mother and father, who gave me the chance and the space to explore the world on my own, and supported me when I returned from its corners badly bruised. For their wisdom and insight, and the help of countless others missing from this page, I am truly grateful. R. Alexander Dyroff iv Abbreviations DCI Director of Central Intelligence OPIC Overseas Private Investment Corporation UFCO United Fruit Company lIT International Telephone and Telegraph Company IRCA International Railways of Central America DOS State Department v Introduction 'The incestuolls relationship between government and big business thrives in the dark. " -Jack Anderson Jack Anderson was a muckraking journalist known for his tenacious attempts to expose corruption in Washington. For Anderson, corporations and the government were always in bed with one another, the key was figuring out how to turn on the light, and expose their machinations. There couldn't have been a better time for Anderson to find his . swing as a newspaperman. In the 1970's, the rise of the multinational was on the mind of the American public in the wake of the 1973 Arab oil embargo, as steep increases in oil prices reflected the extent to which corporate policy could supersede the demands of sovereignties!. The new power of multinationals had granted them extraordinary privilege throughout the world, and possibly in Washington. When Anderson published papers suggesting that one of the country's largest conglomerates, International Telephone and Telegtaph, had collaborated with the CIA in the overthrow of the Marxist government of Salvador Allende in 1973, ir was the clarion call for which the public had been waiting.' Public concern quickly turned into federal action, as the Subcommittee on Multinationals was formed to investigate this relationship in 1973. When the trial commenced, "the mystery unfolded like a far-fetched whodunit, with false trails and comic relief.'" Ending without a conviction, the trial left the public with a confusing collection of conflicted accounts and ! Reza Bassiry, Power vs. Profit:Multin ational Corporation-Nation State Interaction (New York: Arno Press, 1980), I. 2 Jack Anderson with George Clifford. The Anderson Papers (New York: Random House, 1973). , Anthony Sampson, The Sovereign State iflIT (New York: Stein and Day, 1973), 269. 1 vague testimony. If the American people were upset, they would later be distracted by another trial: that of the U.S. President, as the alarm and unease for multinationals would be replaced with anger over Watergate. The concerns of the American public in 1973 were not new, nor would they go away in the coming years. Perspectives on the multinational have continually evolved, anxiery waxed in the early 1970's just as it waned in the 1990's. Corporations today are larger, stronger, and more global than they were in the 1970's, and the questions still persist. How close is the relationship between U.S. corporations and the U.S. government' To what extent have corporations and the United States Government been able to fashion a common policy in order ro further both federal and corporate interests? Ground zero for the development of this relationship has been Latin America, which has and continues ro have a troubled affiliation with the United States and multinationals throughout the 20th century.
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