United Fruit, CIA, Do Business with Guatemala, Cold War Style: 1) 1944 Revolution to FBFortune

Economics and society,, International Relations, National politics, Political geography, Regional History

From the late 19th century to the Second World War Guatemalan politics followed a familiar path to most states in Latin America at the time – dominance by caudillos – military strongmen who were favourably disposed towards foreign investment and economic exploitation, especially from the USA.  Under General Jorge Ubico (president 1931-44), this practice intensified with massive concessions given to Guatemala’s biggest foreign investor, the US United Fruit Company (UFCo), and to the country’s wealthy landowning class.

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Belize (to the west of Guatemala) was the colony of British Honduras till 1964

By 1944 the economy in Guatemala was effectively monopolised by a “Big Three” oligopoly of US corporations – UFCo, in commanding control of the banana industry, International Railways of Central America, with its stranglehold (together with UFCo) over the country’s rail and ports facilities, and Electric Bond and Share, which controlled over 80% of Guatemala’s electricity supply. Poverty among the bulk of the rural population was endemic, agricultural workers earned between five and 20 centavos a day. 72% of the country’s land was held by just 2% of the population and there was an over-reliance on food imports because of the under-utilisation of land. Ubico’s oppressive rule was iron-tight and likened by international visitors to a “police state” [Gordon, Max. “A Case History of U. S. Subversion: Guatemala, 1954.” Science & Society, 35, no. 2 (1971): 129-55. Accessed July 27, 2020. www.jstor.org/stable/40402561].

A40-1300530 - © - JosÈ Enrique MolinaGuatemala. Izabal. Banana plantation.

(Source: AFAR)

The spring of democracy 1944-1954
In 1944 a coalition of middle class professionals, teachers and junior army officers, with the backing of trade unions, forced Ubico’s removal [Juan Gonzalez, Harvest of Empire: A History of Latinos in America, (2011)]. This “Guatemalan Revolution” paved the way for free elections and an overwhelming victory for liberal professor Juan José Arévalo. The Arévalo government followed a moderate reformist path, establishing civil rights, a social welfare apparatus and achieved considerable success in improving national literacy levels. Arévalo was succeeded in 1951 by another democratically elected government, this time led by former soldier and defence minister Jacobo Árbenz. The progressive Árbenz moved beyond his predecessor in introducing much-needed, comprehensive agrarian reforms, something Arévalo had carefully avoided for fear of antagonising Guatemala’s landed elite and being branded pro-communist [‘Foreign Relations of the United States, 1952-1954, Guatemala’, Office of the Historian, www.history.state.gov/].

President Árbenz Guzman 
(www.wikia.org)

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Decreto número 900
This put the Árbenz regime on a collision course with UFCo and the US government. The government’s Agrarian Reform Law (Decree 900) allowed for the expropriation of all Guatemalan land more than around 600 acres in size that was not under cultivation (which nonetheless only added up to less than 5% of all private land-holdings). UFCo’s reaction was to complain to Washington that Árbenz’s land reforms threatened its monopolistic position in Guatemala. The Company’s resolve to resist the Guatemalan move was hardened by the government’s offer of about $627,000, a figure derived from UFCo’s own estimate of the land value for tax purposes. The US State Department then demanded compensation from Guatemala of over $15,800,000 for UFCo’s properties in the country  [‘Decree 900’, Wikipedia, http://en.m.wikipedia.org/].

Árbenz’s ‘gift’ to the landless masses
(Source: Life Mag.)

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Upturning democracy: the build-up to the coup
UFCo turned its energies to lobbying Washington to secure its assets and investments in the small Central American country. The US government however had its own (wider) agenda in mind. With America in the grip of the “Second Red Scare” of McCarthyism in the early 1950s, the US chose to see Árbenz’s anti-colonial land reforms (an attempt by the Third World agrarian country to extricate itself from a backward feudal mode of existence) as prefiguring an encroachment of communism onto the Guatemalan political landscape. The US government, operating through the agency of the CIA, initiated a smear campaign against the Árbenz regime, using misinformation and infiltration to try to undermine its legitimacy within the country and the region. By 1952 the decision had been made to intervene in Guatemala. President Truman authorised the CIA to launch Operation PBFORTUNE, with the complicit involvement of Nicaraguan dictator Somoza García (Snr), but when its cover was prematurely blown the operation was quickly aborted. Plans in Washington for the coup d’état were shelved – for the time being, and the CIA and its co-conspirators resumed the covert task of subverting and destabilising the increasingly isolated Guatemalan government.

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 Allen Dulles, CIA director

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 drawing inspiration from FD Roosevelt’s American “New Deal” and from Mexico’s nationalising Cárdenas regime

 Árbenz has the support of the small Guatemalan Communist Party and some communists filled minor offices in the administration but there were no communist members in the ruling cabinet

 which had connexions with UFCo through those arch-cold warriors, the Dulles brothers, John Foster and Allen 

 

Remembering the “Forgotten War”: The Korean War, 70 Years On

International Relations, Military history, Political geography, Regional History

This week marked the 70th anniversary of the first shots fired in anger of probably the most consequential of the numerous forgotten wars in modern history – the Korean War (25th June 1950).

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Prelude to the conflict
Tensions between the north and south of the Korean Peninsula can be traced back to the 1930s and the Japanese occupation of Korea. Japan’s dominance prompted a resistance movement which included future communist leader and dynasty patriarch of North Korea Kim Il-sung. Some Koreans willingly collaborated with the Japanese invaders including fighting for it against the Korean guerrillas trying to liberate the country (one such agent of the Japanese was a former South Korean president, Park Chung-hee, assassinated in 1979) [‘Collaboration with Japanese hangs over South Korea’, Taipei Times, 08-Mar-2019, www.taipeitimes.com].

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(Photo: Bettman Archive/Getty Images)

At the end of WWII, Korea was divided into two zones of military occupation, north (with Kim as leader under the tutelage of the Soviet Union) and south (under US control but eventually with right-wing strongman Syngman Rhee installed as president), with the demarcation line quite arbitrarily defined at the 38th Parallel (38° N) by two American officers . The leaders of both Koreas held ambitions for reunification of the peninsula but with very different kinds of political outcomes in mind. The US’ withdrawal of almost all its military forces from the South in the late 1940s decided Kim on putting the communist reunification plan into action. With USSR and China agreeing to support it, North Korean forces attacked the South in June 1950. The ensuing three years saw the opposing forces push each other back and forth along the peninsula (the South’s capital Seoul was captured on four separate occasions) resulting in a stalemate.

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Chinese Volunteer Army crossing the Yalu River (Source: www.goodfreephotos.com)

The Korean War was both a Korean civil war and a proxy superpower war militarily pitting the US v Communist China – as well as an early chapter of Cold War confrontation with the Soviet Union and America wrestling for influence over strategically-positioned Korea. The response to North Korea’s invasion was a UN-sanctioned “police action” comprising sixteen nations including Britain and Commonwealth countries but led by the US. After initial defeats and a re-consolidation of its position, the US army drove the North Korean forces back into the northern border with China—at one point the US army captured and held the communists’ capital Pyongyang for eight weeks—this prompted China to enter the conflict with a massive manpower commitment, throwing over 250,000 troops against the Americans and allies and forcing them back deep into South Korea [‘The US Army once ruled Pyongyang and 5 other things you might not know about the Korean War’, (Brad Lendon), CNN, 24-Jun-2020, www.amp.cnn.com].

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MiG-15 fighter: the Korean War saw the first appearance of  jet vs jet ‘dogfights’—American F-80s & F-86s fought Russian MiG-15s (manned, first by Russian, and later Chinese and North Korean pilots) with aerial combat taking place in a section of North Korea and the Yalu River that became known as “MiG Alley”

A heavy toll including civilians and MIAs
All together, somewhere between three and four million people died in the conflict. The US army lost nearly 37,000, the South Koreans nearly 138,000. The North Koreans lost up to 400,000 soldiers and the Chinese forces, over 180,000. The MIA tally (missing in action) was very high, over 300,000 from both sides combined. The toll on the civilian population was greatest – the US military unleashed a relentless bombing campaign on North Korea resulting in excess of 280,000 casualties. Virtually all of the modern buildings in North Korea were levelled by the 635,000 tons of US bombs dropped (Lendon).

Picasso’s ‘Massacre in Korea’ (1951)

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A Cold Warrior blueprint from the Pentagon
The US’ involvement in Korea was a key plank in the overall strategy of containing communism in Asia – known in the Pentagon as “Forward Defence”. With the postwar map of Eastern Europe encompassed within the Soviet empire and China under communist rule, Washington saw intervention in the peninsula as fundamental and essential to prevent South Korea from becoming another fallen ‘domino’ to communist infiltration of Eurasia…the same logic that held sway a decade later when America stumbled into an infinitely harder regional conflict to disentangle itself from in Vietnam.

A “limited war”
Mindful of the risk that the Korean War might escalate into a wider Asia conflict or even into “World War III”, US president, Harry S Truman, ordered the US military not to extend it’s aircraft raids into Manchuria and Chinese territory, even though the Chinese were using its north-east provinces to amass its forces to enter the Korean war-zone. This also ruled out using atomic weapons in the conflict, Washington’s reticence to do this was sharpened by awareness of the Soviet Union’s recent demonstration of its own nuclear weapons capability [’Never Truly Forgotten: The Lethal Legacy of the Korean War’, (Rebecca Lissner), War on the Rocks, 25-Jun-2020, www.warontherocks.com].

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Korea’s Cold War reverberations for America 
An armistice in 1953 brought an end to the hostilities on the peninsula but left the issue unresolved. A demilitarised zone (DMZ) was set up between the two Koreas – a ‘contained’ hotspot which threatens periodically to spill over and reignite hostilities. The conflict in Korea prompted a radical transformation in US defence thinking. To secure its regional forward defence perimeters the US in the early Fifties forged defence alliances with the Philippines, Australia and New Zealand, South Korea, Japan and Taiwan. And with this came a diverse mushrooming of US overseas military postings and bases in the Asia-Pacific region. Most significantly, the war reversed an earlier contraction of US defence spending, by 1951 it’s spending skyrocketed to $48.2 Bn, setting a pattern for future US military expenditure, including a large standing army in peacetime and an increasingly-funded CIA which expanded its surveillance activities across the globe (Lissner; Cummings).

a US M-24 tank crew, Nakdong River, 1950

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Out of sight …
Why was the Korean War consigned to history’s back pages so swiftly? Timing is part of the answer. WWII ended less than five years earlier, it was still fresh in people’s minds and they had had enough of war. The Korean War, when it came, was an unpleasant reminder of that world-shattering, traumatic episode [Eric McGeer, quoted in Toronto Sun, 21-Jun-2020]. Korea was “overshadowed by the global conflagration that preceded it and the nation-rending counter-insurgency campaign in Vietnam that followed it” (Lissner). But the Korean War’s unresolved conclusion has “kept it alive as a major influence on Asian affairs” [Shiela Miyoshi Jager, “5 US Wars Rarely Found in History Books’, ( Jessica Pearce Rotondi), History, 11-May-2020, www.history.com]. Since the ceasefire in 1953 the peninsula has remained a potential world hotspot, a state of tension persisting to the present thanks largely to the periodical bellicose threats of North Korea’s communist dictator Kim Jong-un to use nuclear warfare against South Korea and the US.

End-note: Perpetual state of war

Though hostilities ceased on July 27, 1953, technically the Korean War has never ended as no peace treaty between the combatants was ever signed.

PostScript: A reprieve for Taiwan 🇹🇼 
The outbreak of war on the Korean peninsula presaged a change of fate for Taiwan. In 1949, Mao Zedong, having emerged triumphant from the Chinese Civil War against Chiang Kai-shek and the KMT, had amassed a force of troops on the mainland ready to invade and “take back” Taiwan. Korea turned that seeming fait accompli on its head! With fighting starting, Truman, fearful of the war spreading across east Asia, positioned the US 7th Fleet in the Taiwan Strait. Stymied, Peking jettisoned its plans to invade Taiwan and relocated the formation of soldiers to the Korean front (Lendon).

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during the three years of direct US military administration of South Korea to 1948, the US injudiciously misread the political situation and employed despised Korean officers of the former Japanese colonial police to impose security – leading to an open revolt in the country (Cumings).
although the conventional view is that Pyongyang was the aggressor and initiated the fighting by invading the South, some observers have noted that in earlier encounters on the border in 1949, South Korea arguably initiated the bulk of the fighting (Cumings)