814.6156/11–2247: Telegram
The Acting Secretary of State to the Embassy in Guatemala
337. Since Dept has received no info indicating that question of proposed modifications of Labor Code has been presented Congress, you requested seek interview with President and remind him of his conversation with Ambassador Kyle Sept 20, in course of which he agreed certain provisions of code are discriminatory against United Fruit Company, and agreed present proposed modifications to Congress probably in late October or early November.
You may, if you see fit, point out that enforcement of discriminatory conditions such as Article 13(b) paragraph 3 and Article 243(b) only serve to increase difficulties of reaching satisfactory solution and cause serious concern in US business circles interested in economic development in Guatemala and elsewhere in Latin America.
You may also wish emphasize fact that proposed development plan of United Fruit Company in Guatemala and its relation to pest control is of fundamental importance in continuation of banana industry and that it would be most unfortunate for national economy if Company, because of uncertainty of future labor relations, would be forced curtail this activity.