Guatemalan Post Files: Lot 59 F 15, Container 15, File 500
Memorandum of Conversation, by the Chargé in Guatemala (Wells)
Subject: Conversation with Minor Keilhauer1
Minor Keilhauer dropped in this morning at his request. He said he had been wanting to talk to me for several days. He “wonders” whether the attitude of the Embassy is antagonistic toward the future Arbenz regime. His concern arose, he said, from certain indications in banking circles in the United States that the doors are still closed to Guatemala. Does this indicate lack of confidence in Arbenz?
I replied that, as I had told him several months ago, the situation cannot be expected to change materially over night. Such antagonism as exists in the United States toward Guatemala is strictly of Guatemalan making and is something that has built up over a five-year period. Regardless of goodwill toward Arbenz and any optimism as regards the policy his Government will pursue, it is illogical to assume that banking and other circles in the United States will forget the past and act on optimism alone. It is entirely reasonable that bankers, including the Export-Import bank, should observe a period of watchful waiting. Only encouraging deeds, and not abstract assurances, can be expected to instill full confidence as to the future of foreign investments in Guatemala.
As for the Embassy, I assured him that we are entirely objective. It is also my impression that American businessmen in Guatemala share the general feeling of hopeful expectancy as to Arbenz’ future policy, and will do everything within their power to cooperate with him. However, their cooperation depends upon the Guatemalan Government in the last analysis. In my personal opinion, the Arbenz administration will have to decide once and for all whether Guatemala will give fair treatment and encouragement to foreign capital or whether it will proceed along the road to nationalism. The constant emphasis which Guatemalan revolutionary spokesmen place on “economic independence” is utterly unrealistic, and could only have the end effect of retarding the very industrial development they profess to promote. Guatemala must have foreign capital for any important industrial development.