Editing History of Guatemala (section)

==== Presidency of Jacobo Árbenz Guzman (1951–1954) ====
{{Main|Jacobo Árbenz Guzman}}

[[File:Posesionarbenz.jpg|thumb|Inauguration of Colonel [[Jacobo Árbenz]] as President of Guatemala, 1951.]]

In his inaugural address, Árbenz promised to transform Guatemala from "a backward country with a predominantly feudal economy into a modern capitalist state".{{sfn|Streeter|2000|p=18}} He declared his intent to reduce dependency on foreign markets and diminish the influence of foreign corporations on Guatemalan politics.{{sfn|Fried|1983|p=52}} He also stated that he would modernize Guatemala's infrastructure without relying on foreign capital.{{sfn|Gleijeses|1992|p=149}}

Based on his government plan, he:
# Promulgated Decree 900, expropriating idle land from UFCO.
# Began construction of the Atlantic Highway.
# Initiated construction of the Santo Tomas de Castilla port, where Puerto Matías de Gálvez used to be, to compete with UFCO's Puerto Barrios.
# Began studies for the ''Jurun Marinalá'' generation plant to compete with the American-owned electric company.

Árbenz was a [[Christian socialism|Christian socialist]] and governed as a European-style [[democratic socialist]], taking great inspiration from [[Franklin D. Roosevelt|Franklin Delano Roosevelt's]] [[New Deal]]. According to historian [[Stephen Schlesinger]], while Árbenz had a few communists in lower-level positions in his administration, he "was not a dictator, he was not a crypto-communist." Nonetheless, some of his policies, particularly his agrarian reforms, were branded "communist" by Guatemala's upper classes and the [[United Fruit Company]].<ref>{{Cite news|url=https://www.nytimes.com/2011/06/04/opinion/04schlesinger.html |archive-url=https://ghostarchive.org/archive/20220102/https://www.nytimes.com/2011/06/04/opinion/04schlesinger.html |archive-date=2022-01-02 |url-access=limited |url-status=live|title=Opinion {{!}} Ghosts of Guatemala's Past|last=Schlesinger|first=Stephen|author-link=Stephen Schlesinger|date=2011-06-03|work=[[The New York Times]]|access-date=2019-07-28|issn=0362-4331 }}{{cbignore}}</ref><ref>{{Cite news|url=https://www.nytimes.com/2011/10/21/world/americas/an-apology-for-a-guatemalan-coup-57-years-later.html|title=An Apology for a Guatemalan Coup, 57 Years Later|last=Malkin|first=Elisabeth|date=2011-10-20|work=[[The New York Times]]|access-date=2019-07-28|issn=0362-4331|archive-url=https://web.archive.org/web/20170224074845/http://www.nytimes.com/2011/10/21/world/americas/an-apology-for-a-guatemalan-coup-57-years-later.html |archive-date=24 February 2017 }}</ref><ref name="Chomsky 1985 154–160">{{cite book|last=Chomsky|first=Noam|title=Turning the Tide|url=https://archive.org/details/turningtideusint00chom|url-access=registration|year=1985|publisher=South End Press|location=Boston, Massachusetts|pages=[https://archive.org/details/turningtideusint00chom/page/154 154–160]}}</ref>

===== Land reform =====
[[File:Central America, the West Indies South America and Portions of the United States and Mexico WDL62.png|thumb|Route map of the Great White Fleet of the [[United Fruit Company]], which held a monopoly on freight and passenger maritime transport to and from Puerto Barrios in Guatemala since 1903.]]

Prior to Árbenz's election in 1950, a handful of U.S. corporations controlled Guatemala's primary electrical utilities, the nation's only railroad, and the banana industry, which was Guatemala's chief agricultural export.{{sfn|Streeter|2000|pp=8–10}} By the mid-1940s, Guatemalan banana plantations accounted for more than one-quarter of all of the [[United Fruit Company]]'s production in Latin America.<ref>{{Cite book|url={{google books |plainurl=y |id=Fv2VH9LGQqoC|page=192}}|title=Banana Wars: Power, Production, and History in the Americas|last1=Striffler|first1=Steve|last2=Moberg|first2=Mark|last3=Joseph|first3=Gilbert M.|last4=Rosenberg|first4=Emily S.|date=2003-11-20|publisher=Duke University Press|isbn=9780822331964}}</ref> Land reform was the centerpiece of Árbenz's election campaign.{{sfn|Gleijeses|1992|p=49}}{{sfn|Handy|1994|p=84}} The revolutionary organizations that had helped put Árbenz in power applied constant pressure on him to fulfill his campaign promises regarding land reform.{{sfn|Handy|1994|p=85}} Árbenz continued Arévalo's reform agenda, and in June 1952, his government enacted an agrarian reform program. Árbenz made land reform his central goal, as only 2% of the population owned 70% of the land.{{sfn|Paterson et al.|2009|p=304}}

On 17 June 1952, Árbenz's administration enacted an agrarian reform law known as [[Decree 900]]. The law empowered the government to create a network of agrarian councils, which would be in charge of expropriating uncultivated land on estates larger than {{convert|672|acre|ha|order=flip}}.{{sfn|Streeter|2000|p=18}} The land was then allocated to individual families. Owners of expropriated land were compensated according to the value claimed in May 1952 tax assessments, which they had often dramatically understated to avoid paying taxes. The land was paid for in 25-year bonds with a 3% interest rate.{{sfn|Rabe|1988}} The program was in effect for 18 months, during which it distributed {{convert|1500000|acre|ha|sigfig=1|order=flip}} to about 100,000 families. Árbenz himself, a landowner through his wife, gave up {{convert|1700|acre|ha|-2|order=flip}} of his own land in the land reform program.<ref>{{cite book|title=Talons of the Eagle: Dynamics of U.S.-Latin American Relations|url=https://archive.org/details/talonsofeagledyn00smit|url-access=registration|year=2000|publisher=Oxford University Press|isbn=0-19-512997-0|author=Smith, Peter H.|page=[https://archive.org/details/talonsofeagledyn00smit/page/135 135]}}</ref>

In 1953, the reform was ruled unconstitutional by the Supreme Court; however, the democratically elected Congress later impeached four judges associated with the ruling.{{sfn|Gleijeses|1992|pp=155, 163}}

Decree 900, which implemented Agrarian Reform in Guatemala, provided the opportunity for landless field workers to cultivate crops. The effect of this law was similar to what occurred in Europe after the bubonic plague in the Middle Ages. After the plague, which killed one-third of Europe's population, the number of landowners decreased, releasing much of the land, increasing supply, and lowering land prices. Simultaneously, many farmers died, reducing the labor force, which, in turn, led to higher wages. The economic effects of the plague mirrored those of Guatemala's land reform. During the first harvest after the law's implementation, the average income of farmers increased from Q225.00 per year to Q700.00 per year. Some analysts argue that conditions in Guatemala improved after the reform, leading to a "fundamental transformation of agricultural technology due to the reduced labor supply." Similarly, rising living standards and large-scale technological advances occurred in Europe during the fifteenth century, with the missing workforce acting as "the mother of invention." The reform's benefits extended beyond the working class, resulting in increased consumption, production, and domestic private investment.

===== Construction of transport infrastructure =====
[[File:Guatemala railways.svg|thumb|Map of railway lines in Guatemala and El Salvador, owned by the IRCA, a subsidiary of the United Fruit Company that controlled the railroads in both countries. The only Atlantic port was controlled by the Great White Fleet, also a UFCO company.]]

To establish the necessary physical infrastructure for "independent" and national capitalist development, and reduce extreme dependence on the United States while breaking the American monopolies in the country—primarily those controlling the banana enclave economy—Árbenz and his government began planning and constructing the Atlantic Highway. This highway aimed to compete with the [[United Fruit Company]]'s (UFCO) monopoly on land transport, which was managed through its subsidiary, the International Railways of Central America (IRCA). The IRCA had held this concession since 1904, granted by then-President [[Manuel Estrada Cabrera]]. Construction of the highway was initiated by the Roads Department of the Ministry of Communications, with assistance from the military engineering battalion. The highway was designed to run parallel to the railway line wherever possible. Additionally, the construction of a new port was intended to challenge another UFCO monopoly: Puerto Barrios, which was exclusively owned and operated by The Great White Fleet, another UFCO subsidiary.

===== National power plant Jurun Marinalá =====
[[File:Jurun Marinalá.jpg|thumb|The Jurun Marinalá power plant was conceived during the Árbenz government to compete with the Electricity Company of Guatemala, which was then an American company using foreign oil instead of Guatemala's natural resources. Construction of the plant was not completed until 1968, fourteen years after Árbenz was removed in a [[1954 Guatemalan coup d'état|CIA-sponsored coup d'état in 1954]].]]
[[File:Jurun marinala.jpg|thumb|Advertisement for the Marinalá power plant during the Árbenz government]]

The Jurun Marinalá electric power generation plant was planned as Guatemala's first national hydroelectric power plant. Its goal was to challenge the monopoly of the Electric Company, a subsidiary of American Electric Bond and Share (Ebasco), which used fossil fuels instead of local water resources, thus draining foreign currency reserves. Due to its significant economic importance, construction continued beyond the Árbenz presidency and was completed under President [[Julio César Méndez Montenegro]] in 1968. The plant is located in the village of Agua Blanca, within El Salto, [[Escuintla]].

===== Catholic national pilgrimage campaign against communism =====
The [[Catholic Church]], which held significant power in Central America during the Colonial Era, gradually lost its influence following independence from Spain. Initially, the rise of liberal forces displaced the conservative Guatemalan elites, including senior clergy, who had previously wielded considerable power. By 1838, with the fall of liberal President Mariano Gálvez, Lieutenant General Rafael Carrera emerged as the conservative leader. Carrera restored the Church's influence in Guatemala, which became the last bastion of conservatism in the region. The Central American Federation, which was liberal in nature, could not be established due to Carrera's military power, and he eventually founded the Republic of Guatemala on 21 March 1847. After Carrera's death in 1865, Guatemalan Liberals seized the opportunity to reclaim power, leading to the Liberal Revolution of 1871. This period saw increased attacks on the senior clergy, secular education, freedom of religion, the expulsion of religious orders, and the expropriation of church properties. These policies continued through subsequent liberal governments until the October Revolution of 1944, which worsened the situation as revolutionary factions became increasingly anti-religious.

By 1951, Archbishop [[Mariano Rossell y Arellano]] sought to restore the Catholic Church's elite position in Guatemala. He allied with the [[United Fruit Company]] and the National Liberation Movement, aiming to overthrow the revolutionary government, which he denounced as [[atheists]] and [[communists]]. After the consecration of the Shrine of Esquipulas in 1950, Rossell y Arellano commissioned sculptor Julio Urruela Vásquez to create a replica of the Christ of Esquipulas. This bronze replica, established as a symbol of the national pilgrimage against communism, was appointed as the ''Commander in Chief'' of the National Liberation Movement's forces during the June 1954 invasion.

On 4 April 1954, Rossell y Arellano issued a pastoral letter condemning the progress of communism in the country and calling on Guatemalans to rise up against this common enemy of God and the nation. The letter was widely distributed throughout the country.

===== National Liberation (1954) =====

===== Agrarian Reform and UFCo conflict =====
In 1953, when the government implemented [[Agrarian Reform]], its goal was to redistribute large holdings of unused land to peasants, both Latino and Amerindian, for subsistence farming. The reform expropriated 250,000 of the 350,000 hectares held by the [[United Fruit Company]] (UFCO) and, according to Decree 900, intended to redistribute this land for agricultural purposes. UFCO continued to hold thousands of hectares of pastureland and substantial forest reserves. The Guatemalan government offered the company Q 609,572 in compensation for the appropriated land.{{sfn|Gleijeses|1992|pp=201–215}} The company contested the expropriation with several legal arguments. It claimed the government had misinterpreted its own law, which was meant to target unused land suitable for agricultural development. According to the company, land in pasture, forest cover, and under cultivation should have remained untouched. UFCO argued that most of the land taken was cultivated and in use, making the expropriation illegal.{{sfn|Gleijeses|1992|pp=210–215}}

Additionally, the company contended that the offered compensation was inadequate for the amount and value of the land taken. The valuations of UFCO's rural property were based on values declared in its tax filings. In 1945, Arevalo's administration ordered new assessments to be completed by 1948. UFCO submitted the assessment by the due date but later claimed that the values used for taxation purposes were outdated and did not reflect the true value of the land. The government had investigated in 1951, but a new assessment was never completed. UFCO argued that the 1948 assessment was outdated and estimated that just compensation should be as high as Q 15,854,849, nearly twenty times more than what the Guatemalan government had offered.{{sfn|Gleijeses|1992|pp=201–215}}

The U.S. State Department and embassy actively supported the position of UFCO, a major U.S. company. The Guatemalan government faced significant pressure as a result. While the U.S. officially acknowledged Guatemala's right to conduct its own politics and business, U.S. representatives claimed they were protecting UFCO, a company that generated substantial revenue and contributed to the U.S. economy.{{Citation needed|date=June 2023}} Arbenz's administration maintained that Agrarian Reform was essential for improving Guatemala's economy. He insisted on adopting nationalist economic policies if necessary, stating that all foreign investments would be subject to Guatemalan laws. Arbenz was resolute in promoting Agrarian Reform and, within a few years, acted decisively. He asserted that the Guatemalan government could not make exceptions for the U.S. concerning Decree 900 and that it was not Guatemala's fault that UFCO had understated the value of its land on tax forms.{{sfn|Gleijeses|1992|pp=201–215}}

As Arbenz resisted pressure to reconsider the expropriation of UFCO's land, his government was targeted by propaganda. For the U.S., national security concerns were paramount, intertwining political and economic interests. The fear of communist influence was shared by Guatemala's urban elite and middle classes,{{sfn|Sabino|2007|p=115}} who were reluctant to relinquish their privileges.{{sfn|Gleijeses|1992|pp=201–215}} Local media outlets, such as the newspapers ''[[El Imparcial]]'' and ''La Hora'', exploited press freedoms under the regime and, with UFCO's sponsorship, criticized communism and the government's legal recognition of the Communist Party. Opposing political parties organized anti-communism campaigns, drawing large crowds to rallies and steadily increasing membership in anti-communist organizations.{{sfn|Sabino|2007|p=116}}

===== Arrival of John Peurifoy to Guatemala =====
Between 1950 and 1955, during General Eisenhower's presidency in the United States, a witch hunt for communists known as [[McCarthyism]] was conducted. This period was marked by the persecution of innocent people based on mere suspicion, leading to unfounded accusations, interrogations, job losses, passport denials, and even imprisonment. These methods of social control and repression in the U.S. bordered on totalitarian and fascist practices.

One of the key figures of [[McCarthyism]] was [[John Peurifoy]], who was appointed U.S. Ambassador to Guatemala. Guatemala was the first country in the American sphere of influence after World War II to include openly communist elements in its government. Peurifoy, who had previously engaged in anti-communist activities in Greece, was installed as ambassador in November 1953, around the time [[Carlos Castillo Armas]] was organizing his small revolutionary army. After a lengthy meeting, Peurifoy informed President Arbenz that the U.S. was concerned about the communist elements in his government. He reported to the [[Department of State]] that while Arbenz himself was not a communist, it was likely that a communist leader would follow him. In January 1954, he told ''[[Time (magazine)|Time]]'' magazine, ''"American public opinion could force us to take some measures to prevent Guatemala from falling into the orbit of international communism."''

===== Operation PBSuccess =====
{{Main|Operation PBSuccess}}
The Communist Party was not the focal point of the communist movement in Guatemala until [[Jacobo Árbenz]] came to power in 1951. Prior to 1951, communism existed within urban labor forces in small study groups from 1944 to 1953, exerting considerable influence on these groups. Despite its limited size in Guatemala, many Communist leaders were highly vocal about their beliefs, particularly through protests and literature. In 1949, the Communist Party had fewer than forty members in Congress, but by 1953, this number had increased to nearly four thousand. Before Árbenz came to power, the communist movement largely operated through mass organizations. Following Árbenz's rise, the Guatemalan Communist Party expanded its activities into the public sphere.

Upon assuming power in 1951, Árbenz extended political freedoms, allowing communists in Guatemala to engage in politics. This policy enabled many opponents of Ubico's regime to identify as communists. By 1952, Árbenz implemented land reform, redistributing about {{convert|225,000|acre|ha|sigfig=2|order=flip}} of unused agricultural land from large landowners to rural workers and farmers. The land, primarily taken from the United Fruit Company, was to be compensated; however, the UFC argued that the compensation was insufficient. Meanwhile, Árbenz permitted the Communist Party to organize and include leaders, notably his leftist adviser. The propaganda campaign by the United Fruit Company against the Guatemalan revolution influenced the U.S. government to combat communism in Guatemala. The [[Eisenhower administration]] in the U.S. was displeased with Árbenz's government, viewing him as too aligned with communism. There were reports suggesting that Árbenz's wife was a communist and part of the Communist Party in Guatemala. Despite the lack of concrete evidence linking Guatemala to the Soviet Union, the U.S. was inclined to believe in the presence of communism in Guatemala.

As Árbenz proceeded with land reform, the [[United Fruit Company]], which had a near-monopoly on Guatemalan fruit production and some industry, lobbied the [[Eisenhower]] administration to remove him. More significantly, there was widespread American concern about the potential establishment of a so-called "[[Soviet Union|Soviet]] beachhead."<ref>{{cite book | author=Cullather, Nick | title=''Secret History: The CIA's Classified Account of Its Operations in Guatemala, 1952–1954'' | publisher=Stanford University Press | year=1999 | isbn=0-8047-3311-2}}, pg 17, quoting [[Allen Dulles]]</ref> Árbenz's sudden legalization of the Communist Party and the importation of arms from the Soviet-[[satellite state]] of [[Czechoslovakia]],<ref>[http://www.coha.org/NEW_PRESS_RELEASES/Matt%20Ward/MW_Appendix_A.htm Master's with Honours Thesis<!-- Bot generated title -->] {{webarchive|url=https://web.archive.org/web/20090211051553/http://www.coha.org/NEW_PRESS_RELEASES/Matt%20Ward/MW_Appendix_A.htm |date=11 February 2009 }}</ref> among other actions, convinced major policy makers in the [[White House]] and [[Central Intelligence Agency|CIA]] to seek Árbenz's removal, despite his term being due to end naturally in two years. This led to a CIA-orchestrated coup in 1954, known as [[Operation PBSuccess]], which resulted in Árbenz being toppled and forced into exile by Colonel [[Carlos Castillo Armas]]. Although many Guatemalans were committed to the original ideals of the 1944 uprising, some private sector leaders and military figures came to view Árbenz as a communist threat and supported his overthrow, hoping that his successor would continue the more moderate reforms initiated by Arevalo.

Armed and trained by the CIA, groups of Guatemalan exiles, commanded by Colonel Carlos Castillo Armas, invaded Guatemala on 18 June 1954. The Americans portrayed this as an anti-communist coup against Árbenz. Supported by CIA radio broadcasts, the Guatemalan army did not resist the coup, leading to Árbenz's resignation. In 1954, a military government replaced Árbenz's administration, disbanded the legislature, and arrested communist leaders, with Castillo Armas assuming the presidency.

Following the CIA coup, hundreds of Guatemalans were rounded up and killed. Documents obtained by the [[National Security Archive]] revealed that the CIA was involved in planning the assassinations of enemies of the new military government, should the coup prove successful.{{sfn|Blakeley|2009|p=92}}