Travel Reference
In-Depth Information
CARIBBEAN COAST
This is a very different Guatemala - a lush and sultry landscape dotted with palm trees and
inhabited by international sailors (around the yachtie haven of Río Dulce and the working
port of Puerto Barrios) and one of the country's lesser-known ethnic groups, the Garífuna
(around Lívingston).
A boat ride down the Río Dulce is pretty much mandatory for any visit to this region,
and many visitors find a few days in Lívingston to be a worthy detour. Nature buffs will
want to check out the huge wetlands reserves at Bocas del Polochic and Punta de Manabi-
que.
BANANA REPUBLIC
Bananas were first imported to the US in 1870. Few Americans had ever seen a banana, let alone tasted one. By
1898 they were eating 16 million bunches annually.
In 1899 the Boston Fruit Company and Brooklyn-born Central American railroad baron Minor C Keith joined
forces, forming the United Fruit Company (UFC). The aim was to cultivate large areas of Central America, grow-
ing bananas that Keith would transport by rail to the coast for shipment to the USA.
Central American governments sold UFC large tracts of undeveloped jungle. The company created road and/or
rail access to the land, cleared and cultivated it and built extensive port facilities.
By 1930, UFC - the largest employer in Central America - was capitalized at US$215 million and owned one of
the largest private navies in the world. By controlling Puerto Barrios and the railroads, UFC effectively controlled
Guatemala's international commerce, bananas or otherwise.
Local journalists began referring to UFC as El Pulpo, 'the Octopus', accusing it of corrupting government offi-
cials, exploiting workers and exercising influence far beyond its role as a foreign company in Guatemala.
On October 20, 1944, a liberal military coup paved the way for Guatemala's first-ever free elections. The new
president was Dr Juan José Arévalo, who sought to remake Guatemala into a democratic, liberal nation. His suc-
cessor, Jacobo Arbenz, was an even more vigorous reformer. Labor unions began clamoring for better conditions,
with almost constant actions against UFC. The government demanded more equitable tax payments from the com-
pany and divestiture of large tracts of unused land.
The US government supported UFC. Powerful members of Congress and the Eisenhower administration were
convinced that Arbenz was intent on turning Guatemala communist. Several high-ranking US officials had ties to
UFC, and others were persuaded that Arbenz was a threat.
In 1954 a CIA-orchestrated invasion by 'anti-communist' Guatemalan exiles led to Arbenz' resignation and ex-
ile. His replacement was Carlos Castillo Armas, an old-school military man, who returned Guatemala to rightist
military dictatorship.
A few years later, the US Department of Justice brought a suit against UFC for operating monopolistically. UFC
was ordered to reduce its size by two-thirds within 12 years. It began by selling off its Guatemalan holdings and
yielding its monopoly on the railroads.
UFC later became part of United Brands, which later sold its remaining land in Guatemala to the Del Monte
Corporation, which is still active in Guatemala.
