THE SITUATION IN GUATEMALA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00472A000600050009-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: March 2, 2004
• Sequence Number: 9
• Publication Date: December 10, 1965
• Content Type: IM

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OCI No. 2924/65
CENTRAL INTELLIGENCE AGENCY
Office of Current Intelligence
10 December 1965
The Situation in Guatemala
1. The Guatemalan government is facing crisis
on several fronts. A worsening economic problem,
destructive political maneuvering attending the elec-
tion campaign, and increasing public disorder have
left the Peralta regime seriously deprived of sup-
port and national confidence. Unless dramatic
measures are taken quickly the regime's ability to
withstand the combination of poor finances, terror-
ism, and conspiracy is doubtful.
2. Businessmen and financiers, already concerned
by Guatemala's worsening foreign exchange deficit and
a commodity scandal which has reflected on the integrity
of prominent members of the administration, have begun
to doubt the regime's ability to cope with terrorists.
The latter three times in recent weeks have abducted
members of prominent Guatemala City families for ran-
som. To date, $180,000 in ransom has been paid fur-
tively and in the face of police protests. Inept
police investigations have been hampered by the refusal
of the families of the kidnap victims to cooperate in
any investigation or apprehension of the criminals.
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7. There is also a danger that non-military fac-
tions--particularly those on the left-- will at some
point be willing to engage in civil dissidence to forward
their own objectives. This possibility of violence
might be reduced in the unlikely event that the regime
made a convincing exhibition of its willingness to permit
honest competition, such as inviting OAS observers on
election day. The ouster of Peralta by a group which
does not endorse the established schedule for a return
to constitutional government would almost surely precipi-
tate political violence.
8. Finally, recent terrorism has raised the specter
of continued instability to be faced by any type of gov-
ernment forseeable for Guatemala over the next few years.
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Not only has violent subversion increased of late, in
the face of strong security measures, but kidnapings
and extortion have channeled large amounts of money into
coffers of the insurgents (Yon Sosa's group and the
Communists). Further increased capability on the part
of these extremists spells continuing and intensified
trouble for anyone at the palace in Guatemala City.
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10 December 1965
OCI No. 2924/65
Copy No.
Q c~_
INTELLIGENCE MEMORANDUM
THE SITUATION IN GUATEMALA
DIRECTORATE OF INTELLIGENCE
Office of Current Intelligence
NO CHANGE- 1N CLASS
I 1 l)ECL S`~lt iEO
CLASS. C-I .N'r~i1 TO
NEXT i~ 1 1`~ '.ATE
GROUP 1
excluded from automatic
downgrading and
dedassification
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elease 200 3/16
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This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
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 Approved For Release 2004/03/16 : CIA-RDP79T00472A000600050009-2
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