CIA, United Fruit Company and Overthrow of Guatemala's Democracy Email Print

General Walter Bedell Smith was General Dwight Eisenhower's Chief of Staff when the future president served as Supreme Allied Commander.  

Once that Smith culminated his lengthy military career with influential  involvement in West Germany's governmental transition at the close of World War Two, he went into the federal government with important positions in both the Truman and Eisenhower administrations.  

A CIA operation in 1954 overthrew popularly elected Guatemala President Jacobo Arbenz.  There were leaflets alleging that the democratically elected Arbenz was some kind of Communist stooge.  Mercenaries were sent in to aid "The Company's" activities, engaging in acts of sabotaging trains and oil supplies.

Arbenz, who won Guatemala's presidency in a 1951 landslide, hoped to transform Guatemala's former dictatorial leadership and feudalist economy into a vibrant and modern democratic nation, and was instead driven from power.

The reason for dissatisfaction with Arbenz was adherence to a fairer policy of land and economic reform pertaining to the powerful Rockefeller-owned United Fruit Company, which was a gigantic economic influence in Guatemala.

Note the pedigree of the operation's Washington based masterminds.  Secretary of State John Foster Dulles was at the helm during the overthrow.  His brother Allen was CIA director at the same time.  At one point Allen Dulles had been president of United Fruit Company while his brother served as corporate counsel for the large corporation.  

Who became president of the United Fruit Company after the coup had been achieved and Jacobo Arbenz had been removed?  It was none other than Walter Bedell Smith, who had formerly been CIA Director.

The Dulles brothers jockeyed between "government service" and "private sector activity" with the highly connected, governmentally active Washington firm of Sullivan and Cromwell, attentively pursuing the interests of valued corporate clients whether there or in government.

Eisenhower came to the presidency after a long military career and a period as president of Columbia University, leaving there to assume the position of Supreme Allied Commander of the North Atlantic Treaty Organization.  

Despite his prominence on the world scene, Eisenhower was politically naïve.  He had been apolitical before being coaxed by Republicans to seek the presidency.

In a frank conversation with longtime peace advocate, author, and editor of Saturday Review Norman Cousins shortly before leaving office, Eisenhower admitted his exasperation in being thwarted to achieve international peaceful goals and was looking forward to earnestly pursuing them as a private citizen.  

Eisenhower conceded he felt exasperation and frustration in dealing with controversial Secretary of State Dulles, who bore the nickname of "John Foster Brinkmanship" based on his "brink of war"  global geopolitical strategy.

It was no coincidence that the most memorable public statement Eisenhower uttered was his farewell speech wherein he warned about the "unwarranted influence" of the military-industrial complex.    


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