Political History LAS 34 “A valuable . . . really first-rate piece of work.” Streeter —Noam Chomsky, MIT Managing the Counterrevolution “Because of the outstanding writing, the originality of the topic, and the extensiveness of the research, Managing the Counterrevolution The United States and Guatemala, 1954–1961 makes an important contribution to the field and marks the emer- gence of an outstanding new historian.” —W. Michael Weis, Illinois Wesleyan University “Streeter has synthesized beautifully the substantial secondary lit- erature in both English and Spanish, combining it with substantial research in an impressive array of primary materials.” T M —Ralph Lee Woodward, Texas Christian University h e a U n n a The Eisenhower administration’s intervention in Guatemala is one of the eti g d i most closely studied covert operations in the history of the Cold War. Yet n S we know far more about the 1954 coup itself than its aftermath. This book t g a uses the concept of “counterrevolution” to trace the Eisenhower adminis- et t s h tration’s efforts to restore U.S. hegemony in a nation whose reform gov- a e ernment had antagonized U.S. economic interests and the local elite. dn C G o In comparing the Guatemalan case to U.S.-sponsored counterrevolutions u u a n in Iran, the Dominican Republic, Brazil, and Chile, Streeter finds that et t m e Washington’s efforts to roll back “communism” in Latin America and else- a r where during the Cold War represented in reality a short-term strategy to al re , protect core American interests from the rising tide of Third World nation- 1 v 9 o alism. 5 l 4 u – t 1 i 9 o 6 n 1 Stephen M. Streeter teaches in the history department at McMaster University, Hamilton, Ontario. Ohio University Center for International Studies Research in International Studies Latin America Series No. 34 ISBN 0-89680-215-9 ,!7IA8J6-iacbff! Cover illustration by Leoncio Sáenz Stephen M. Streeter Cover design by Emma Heinemann OHIO Managing the Counterrevolution This series of publications on Africa,Latin America,and Southeast Asia is designed to present significant research,translation,and opinion to area specialists and to a wide community of persons interested in world affairs.The editor seeks manuscripts of quality on any subject and can generally make a decision regarding publication within three months of receipt of the original work.Production methods generally permit a work to appear within one year of acceptance.The editor works closely with authors to produce a high quality book.The series appears in a paperback format and is distrib- uted worldwide.For more information,contact the executive editor at Ohio University Press,Scott Quadrangle,University Terrace,Athens,Ohio . Executive editor: Gillian Berchowitz AREA CONSULTANTS Africa: Diane Ciekawy Latin America: Thomas Walker Southeast Asia: William H.Frederick The Ohio University Research in International Studies series is published for the Cen- ter for International Studies by the Ohio University Press.The views expressed in in- dividual volumes are those of the authors and should not be considered to represent the policies or beliefs of the Center for International Studies,the Ohio University Press,or Ohio University. Managing the Counterrevolution The United States and Guatemala, ‒ Stephen M.Streeter Ohio University Center for International Studies Research in International Studies Latin America Series No.  Athens © by the Center for International Studies Ohio University Printed in the United States of America All rights reserved The books in the Ohio University Research in International Studies Series are printed on acid-free paper (cid:1)∞                Chapter appeared originally,in slightly different form,in International History Re- view,no.(June ): ‒,as “The Failure of‘Liberal Developmentalism’: The United States’s Anti-Communist Showcase in Guatemala,‒.” Library of Congress Cataloging-in-Publication Streeter,Stephen M. Managing the counterrevolution : the United States and Guatemala, ‒/ Stephen M.Streeter. p.cm.— (Research in international studies.Latin America series ; no.) Includes bibliographical references and index. ISBN ---(pbk.: acid-free paper) . United States—Relations—Guatemala. . Guatemala—Relations—United States. . United States—Foreign relations—‒. . Guatemala— History—Revolution, . . Guatemala—Politics and government— ‒. . Counterrevolutionaries—Guatemala—History—th century. . Imperialism—United States—History—th century. I. Title. II. Series. E..GS  .'—dc - for Kathy Contents Acknowledgments xi Abbreviations xiii Introduction  Chapter  Overthrowing the Revolution: U.S.-Guatemalan Relations to   Chapter  Installing the Dictator: The Presidency of Carlos Castillo Armas  Chapter  Manipulating Politics: The ‒ Presidential Elections  Chapter  Guiding a Caudillo: The Presidency of Miguel Ydígoras Fuentes  Chapter  Financing the Counterrevolution: The Guatemala Lobby  Chapter  Shaping the Public Sector: The Parallel Government  Chapter  Salvaging the Multinational Corporations: UFCO,IRCA,and Empresa Eléctrica  Chapter  Shaping the Private Sector: Diversifying Foreign Investment  Chapter  Keeping the Top on the Volcano: The MR- Rebellion  Chapter  Conclusion  Abbreviations Used in the Notes  Notes  Bibliography  Index  vii Managing the Counterrevolution