1. Case Study: The Americas
Guatemala during the Cold War

2. Background & Causes of Conflict
Guatemalan politics/economy linked to U.S. because of UFCO
“Loans” to government = corporate tax cuts
Largest landowner & employer
Controlled majority of transport (sea & railway)
Led to racial/wealth inequalities and corruption
1944: pro-U.S. leader overthrown by middle-class movement
The new leader, Juan Jose Arevalo, became president after a free and fair election and implemented social programs:
Housing for farmers, wage increase, literacy program
In 1950, Jacobo Arbenz was elected! Main goal  Agrarian Reform!
Decree 900: Government could buy un-cultivated land by compensating landowners with value, as determined by taxes.
UFCO had 85% of unused land  Government offered $600,000 (U.S. counter = $15 million)

4. Juan Jose Arevalo

5. Arbenz and Agrarian Reform

7. Map of railway lines in Guatemala and El Salvador
Map of railway lines in Guatemala and El Salvador. The lines were owned by the IRCA, the subsidiary of the United Fruit Company that controlled the railroad in both countries; the only Atlantic port was controlled by the Great White Fleet, also a UFCO subsidiary.

9. Description of Conflict
U.S. fearful of leftist policies  implemented embargo
Fearing invasion, Arbenz asked Europe for help (Czechoslovakia sent weapons)
U.S. & CIA assisted exiled Colonel Castillo to lead a coup  1954: Arbenz resigns (Violated OAS agreements)
Why did the U.S. intervene?
Arbenz was “communist” and unfair to UFCO
Domino Theory: Central America & U.S. could fall to communism
Panama Canal could fall under Soviet control and limit free trade
Conflict of interest  Dulles & UFCO board

11. Conflict of interest?
John Foster Dulles (Secretary of State) and his brother Allen Dulles (Director of the CIA) had personal ties to UFCO

12. Outcome/Effects
Castillo became president (rigged election) and returned Guatemala to a brutal dictatorship:
Dominance of elites
Death penalty for sabotage
Literacy laws for voting
Launched Guatemala into a 30 year Civil War
U.S. aided government and military ($186 million)
Did NOT aide social programs = wealth gap grew
By 1990’s: 150,000 killed by military, 200,000 fled & 40,000 missing
1990: Cold War policy change = President Bush ended aide
1993: UN peace talks (est. elections for 1995)

14. Impact on Cold War
U.S. government confused leftist social policies and anti- Americanism with communism
Led to support of brutal & militant regimes to defend against communism
Guatemala became a model for future CIA operations

15. CLOSURE
Summarize the chain of events leading to the Guatemalan Civil War.
In your opinion, what was the main reason the U.S. intervened in Guatemala?
Why was there a huge misconception regarding the U.S. view of leftist movements in the Americas? Can you see this misconception applied anywhere else? (Think of past Cold War conflicts…)