Under Secretary’s Meetings, Lot 53 D 250,
Minutes—Memoranda

Unsigned Memorandum of the Under Secretary’s Meeting

confidential

1. Current Relations with Guatemala (UM D–101)

Mr. Miller mentioned the Guatemalan request for Ambassador Patterson’s recall and the subsequent speech by Senator Wiley1 pointing out the seriousness of the situation. He asked the members of the [Page 902] UM for their views on (a) present policy towards Guatemala; (b) possible tougher policies; (c) the status of Ambassador Patterson; and (d) Mr. Miller’s proposed visit to Guatemala.

Mr. McGhee2 asked about the role of the United Fruit Company and likened the Guatemalan situation to that existing in Liberia and Saudi Arabia where Firestone and Aramco dominate the local economy. Mr. Miller indicated that the record of the United Fruit Company had been bad in the past and that they have not moved fast enough with the times. In spite of their higher wage scales, they are deficient especially in public relations and the handling of grievances. Mr. McGhee pointed to the danger inherent in the dominating position which the company may hold with respect to our own Embassy people.

Mr. Jessup3 asked what our relations are with the management of the United Fruit Company. Mr. Miller replied that we have a good working relationship with the top people in the United States but that this does not carry over to their local representatives. He felt that the company was moving in the right direction but that it would be some time before the local representatives changed their attitudes.

Mr. Howe4 suggested that ARA might send a prominent new Ambassador who would be able to talk firmly to the United Fruit Company and to encourage local non-Communist elements. Mr. Miller felt it was largely a matter of timing, complicated by the fact that this is an election year in Guatemala. Mr. McGhee suggested that the next Ambassador should have a labor background but Mr. Miller said that he preferred to know what he was getting and therefore favored a career man. He intends, however, to send a Labor Attaché to the post.

Mr. Perkins5 mentioned the difficulty the company had in getting good management and indicated that this was one of the main obstacles to changing their old ways.

Mr. Jessup commented that the memorandum does not sufficiently emphasize that we should praise the Guatemalans for the progress they are making—it concentrates rather on their weak points.

Mr. Miller mentioned that Cuba, Costa Rica, and Mexico are also working with Arevalo and impressing on him the seriousness of the Communist situation.6

[Here follows a discussion of topics other than Guatemala.]

  1. Alexander Wiley of Wisconsin, a member of the Senate Foreign Relations Committee. Text of his remarks of April 27, “Communist Outrages in Guatemala,” is printed in the Congressional Record, vol. 96, pt. 5, pp. 5879–5881.
  2. George C. McGhee, Assistant Secretary of State for Near Eastern, South Asian, and African Affairs.
  3. Philip C. Jessup, Ambassador at Large.
  4. Fisher Howe, Deputy Special Assistant for Intelligence.
  5. George W. Perkins, Assistant Secretary of State for European Affairs.
  6. An unsigned “Action Summary” of this meeting dated June 2 stated: “General concurrence was expressed with the policy outlined in the ARA paper.” (Lot 53 D 250: Box 2: Folder 2: UM S–201)