Editing History of Guatemala (section)

===== 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 UFCO submitted the assessment by the due date but later claimed that the values used for taxation purposes were outdated and did not reflect the true value of the land.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 UFCO argued that the 1948 assessment was outdated and estimated that just compensation should be as high as Q 15,854,849, nearly twenty times more than what the Guatemalan government had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}}