814.6156/12–1847: Telegram

The Chargé in Guatemala (Wells) to the Secretary of State

confidential

434. Deptel 337, November 27 [22]. During interview with President Arévalo today to discuss discriminatory features Labor Code, President reaffirmed favorable attitude indicated his conversation with Ambassador Kyle on September 20; likewise referred recent assurances given Turnbull and Taillon of United Fruit to effect these clauses are being studied for purpose submitting proposed amendments to Congress in March. (Embassy’s despatch 2733, November 26.)

I felt it opportune to cover all points mentioned Deptel 337, particularly comments re Article 13 of Labor Code since only two days ago Minister of Economy and Labor31 reminded President International Railways32 of existence government’s discretionary authority under this article to reduce percentage foreign employees, as thinly veiled threat, during discussion re labor demands on railway. (Embassy’s A–434, December 17.30)

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The President readily admitted matter should have been taken care of sooner, but said that time did not permit consideration by Congress of proposed amendments during session which ended November 30. Twice during interview he suggested we again remind him of matter some two weeks before Congress reconvenes.

Wells
  1. Augusto Charnaud MacDonald.
  2. Thomas A. Bradshaw, President, International Railways of Central America.
  3. Not printed.