Pres. Arbenz signed a land reform bill. Arbenz reiterated his commitment to capitalism, but the reform was supported by a variety of labor and left-wing organizations active in the subsequently formed peasant leagues. Under the reform, holdings of over 223 acres were to be expropriated and given to the landless, paid for with 25-year bonds.
The United Fruit Company (UFCO) was told of a plan to expropriate 225,000 of its 550,000 acres in holdings, only 15 percent of which were under cultivation. TheUFCOimmediately began a public relations campaign in theU.S. to portray Arbenz as a Communist.
The U.S. State Department declared that Guatemala, “openly playing the Communist game,” could expect no U.S. help or cooperation. UFCOexecutives requested CIA help in overthrowing the Arbenz regime.
