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Fifty years ago, in June of 1954, the government of the United States overthrew the legitimate and democratically elected government of Guatemala. It was the Central Intelligence Agency's first major covert action in Latin America, and by leading to the rise to a series of military regimes across the region, it changed the course of history.
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After throwing off dictatorial rule in the 1940's, Guatemala had several democratic elections that culminated in 1950 with the selection of Jacobo Arbenz as president with 65% of the popular vote. Arbenz was committed to modernizing the country. He pushed for more labor rights and higher wages, more spending on infrastructure and education, and land reform. The latter was a kind of Central American "trust busting" - an effort to break up large uncultivated land holdings to create thousands of family farms. President Arbenz himself lost 1700 acres to the reform program.
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United Fruit spent heavily on public relations, and alleged that Guatemala was under the control of communists. Reader's Digest, The Saturday Evening Post, and NBC News - among others - joined in hyping the red scare. But the truth was that, while the communist party was legal in Guatemala, its membership never exceeded 4,000 in a nation of nearly three million people. In Arbenz' governing coalition, only four of fifty-one deputies were communists, and none were cabinet members.
"Operation Success", as the CIA coup was called, removed by force the Arbenz government in June of 1954, and installed its hand-picked "Liberator", Castillo Armas, who promptly cancelled the land reform program, imposed press censorship, banned political parties, outlawed most labor union and leftist political activity, and re-hired the chief of the secret police from the old dictatorship. Book burnings soon followed. The U.S. ambassador presented to the new government a list of names of Guatemalans that had been marked for immediate assassination by the CIA.
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http://www.commondreams.org/views04/0618-13.htm