8 Tawl?El GUATEMALAN PROCUREMENT OF AS FROM THE SOVIBT ORBIT a Content Summary Page 142 Arrival tnd Unloeding at Puerto Barrios 23 Security Measures 3 Admissions Regarding Receipt of Arms by Guatanelon Officta?s Bh History of Althen Consignsent bs Transshipaent of Cargo b 56 Estinated Typos afd Guantities of Arms Received 7 Vatuo of the altho» cargo 7 Finanelal Arrangements 7 Guatemalan Negotiations for the Alfhes Shipcent 18 Previous Guatenslan Efforts to Obtain sme 8-10 Other Recent Reporte of Aras Shipcents Attactnonte: Ay BALL of Laing B, Statenont of Johan Henry Lind, Captain of tho ¥/S Althen, taken at Key Vest, Florida on’28 Nay 1954 ©, Sworn Statenent of Harold Haase, Vico President and General Yerager, Guntouale Division, International Railieys of Central’ inertia D, Itinerary of Dantol Alfonso MIRIINEZ Esteves and Jose Yamuo) Foro CIA HISTORICAL REVIEW PROG| RELEASE AS SANITIZED =CUATEMALAN PROCURERENT OF ARS FROM THE SOVIET ONBIT Sumary The shipront of arms thon the Soviet otbtt to Guatenala on the Svedian flag: vessel Athen vag the outcone of clandestine ropeeierions Between agente of the Custonalan goversnont and duechsslovanter aise atie and comercial agontel fe ehertering, losding ang selling orders of tho Althon wore devtousty contrived by tho Soviet srbtt supplier so as 1 Conceal the trio origin, nature and deetinetion of fhe cargo, and the operations of unloading and transforsing the cao 28 Qustontta were covered with searcey, under close militety mache by tho Guatemalan governnonte ‘The Althen sailed under blind orders on a ‘nislesding course, Neither the captain nor the crew knew their true destination until Mithin hours of Pusrto Barrios, Neither the, captain nor the erow knew for cortain their cargos ‘Their suspiaifiions were aroused, however, by the weight and dinensions of the cases and the serongth gf the packings The crew was not surprised whon the ship wes nee by military officers and placed under engod guards Since thet, tine ‘the Guatemalan Govormnent and military officials, by inference ao Gireot statement, have admitted that the Puerto Sarvios coneignesnt consisted. of arn, Hed tho arms boon new, the ootinated valuo of that shipnent would be $10,000,000, Tha'known transfers of Gustonsian foreign exchange during the period of transaction, hovever, although they were much higher thn normal, indicate thet Guatensla by no mead paid this anount of money for the Alfhor ehipnent to the Ceechoslovekian Suppliers What advantages did the Soviet orbit gain iron thie barges sale? In spite of the carefully concealed financial and shipping arrangenents, the felec cargo manifest of tho Aifhen, and the extras ordinary s-curity precautions maintained by the Guatemalan governsent gver unloading the cargo at Puerto Barrios end transferring te te snland points, the dotails of the var munitions delivered ty the {afhen have becom known, The mortars and horitaere, groneleg ond PEE mines, a5 well as the michizegung,autonatic rifles ent soho {kens, appear to exceed by far, in fire pover, nature and quit ty any forsveable Quatenalan reed for national defense or tho wernt’ ance of internal order, Guatenala's oun estinates of ite necks fre ams and amunition heretofore have been about $260,600 s seece Final negotiations for the recont oxtraordimry arms purchase Hage, Carried out in Prague during January and February, I9sia ty [ader A2fonso Martinez, apparently dealing at hgh levels af” the Ceechoslovakian State Morarchy 98 a persenal agent of Prosidere Apeena, Although bearing a military ttle, vajor Martines hac co 2 glose relations with the Army, but occupies a politically important government post as Chief of the National Agrarian Desertvent™ Tots agency adnintstors tho controwrelal Agrarian Reform Law, &@ day which vas drafted with tho assihance of Jose lanuel Foray, unt] rocantly seoretary general of the Guatonslan Conmunioy Party (P02), ‘and pushed through tho Guatemalan Congress Gy Communist pressure, Fentany gpent two months in Moscow Just prior to the joumey TREGR feck Mesor Martinos to Pragisy During the sano period, aauinbaments Wore centurnated for tho formal establishsoxt of diplo- Babig relations with the Comunist satellite governnont of cect EDURSE: ant the Minister of that county presented his credseesale hat ene geaaene of Cuatenala on danlary 29, 195lu rt was not sunpetoing Mggaite date of this asplonatie accord coincided with lajor Martina ission tn the Czechoslovakian capital, where he semained fron January 21 to Febriary 9. 85This acquisition of ails fron the Soviet orbit is but representative of many other known efforts by tho prosent government fron early sn 1952 to the present, to obtain military supplics in substantial quantitioss Using as agente various Guatenalans and certain well iziown international txeffickers in arms, appreaches on tho subject have beon made in mst, of the countries of stern Europe and even in nany Latin Ameri cen fapitals, The broadly inclusive nature of this amme qucst is, connon knowledge in military, banking and comercial circles of Surepe, Tt inges fron mall arms and low calibre ammunition up through anti-tank and antisaivoraft cannon, tanks, half-tracks, amy trucks, and airplanoss These persistent, widespread efforts goneraily have met with failures Sono comdtnonts and actual deliveries nevertholees havo beon sade, Cuatenale has received Oerliken canon and replaconent parts, anne nition, and nurerous spare parts for military trucks, fet even before sizo and population. The delivery of the Alfhen/consigneont, together with the possibility of furthor contemplated negotiations mth te Soviot orbit, constitutes a continuing source of apprehension for Gustenalate militarily weaker neighbors and of danger to the peace of the Westom Homiephore, Im chronological sequence, tho knovn facts regenling the W/S Hand its cargo aro es sot forth dn the following paress and Unloading at Puorte Barrios 2, On 15 May 19S, the Gonerel Manager of the Internations) Railnays of Centrat America (IRCA), in Guatonala City, received information ron the Terminal Superintendent of the radlway ot Fuerte Barrios, Guatensla, that @ ship was due on or about thet dete with cargo for tho uatenalan goverment Dut that nothine definite was imoin as to class of cargo, quantity or origin “Ono Arturo Papedopolo was supposed to be the agent for the ship’ anf it was "understood! that the shipts cargo was ernanont” Aertvad 2, Later the sano day the ship entered and was received by the Modstar of Defense of Guatorala, Col, Jose. sngol Sanches) tho Director of the National Agrarian Dopartmont, Hajor iafoseo Martiners and othor government officials, 2/ 3a, Gol, Sanchez requested the IRCA Terminal Superintendent {2 provide 15 flat cars and as many box care and locomotives ae vould be suquired to move the cargo without delay and asked to have the ship docked immediately, No Shinte docunents, nanifeote ee eiise of lading Were prosented or shown to IROA officials, as requisite wnder normal conditions, 3/ lis | Eefective dlocharging bogan on 16 May, col, sanchos txtomed IRCA employees that fo wished to discharge Sheer a Gay ard desired that there bo no dolay due to shortage of cars, er power, or novenent over the railraad fron Porte Barvios es Quaterald Clty. On tho basis of the Tooninal, Superintenaest's egtinate of costs, Cols Sanches paid ovor to the latter a depsstt cf 6,000 queteales on 17 Nays (Tho Guatenalan govermane wos provicusly in arrears to IRCA for unpaid freight shipnonte, The Sesh deposit was to covor the cost of handling the Althan ghiptont alone, although tho coat of moving the Jlthon shipaant probably eal. exceed this axcunts) li _ 5 qlnloading vas completed on Sunday, 23 May. The first train wath elght cars lett Puerto Barrios at midnight, 18 Maye an {yPlosion occurred under the loconative at Mile’ 26 (Oestenoda) ae At Passed over @ snail bridge, Following this sabotage evtesst the Ministry of Defense requested TARA te supply, six rail motor gars with tratlers for handling troops and piloting the trains with the special Goverment cargo. “an ogeort of! mbeut £0 eolelane and offSeore asconpanied each: train, 5/6, On 20 Yay Untted Fruit Company employes at Bananera went on strike and ase consequence IRCA (@ subsidiary of United Frule) suspended service, All locomotive pover and practically all equtpnent as reroved fron the Untted Fruit Linea, the following day, Lio Alfonso Bauer Patz, Goverment Interrentor of the IRCAY Seqte Toestablishnent of service, The Director Generel of the Guardia ‘Chvt3, Col. Rogelio Crus Wer, and the Direotor of the Guariie Jutletel: MaJor Jaime Rosenberg, acconpented Lio, Bauer Faiz to the offices of TRGA to discuss resumption of service, 6/ During these conversations, Guatenalan Goverment wished to have this "araanont" moved as "rapidly The General Manager of IRCA commented that TRA. offledale had supposed the cargo consiated of armancnt because they hed heard minors to that effect, Subsequently in the conversation when any reference vas sade to the movenent of the cargo by she three Gustenalans present, they referred to it as "special cargo’, Tt vas understood by IRCA officials dn Guatemala City that their Tersdnal, Superintendent in Puorto Barrios had been informed efter by Colonel Sanchez, Defenso Minister, oz by sone of hie party at the port, that ‘the Alfhew cargo consisted of aranonts, 7/ Sanchez end Yafor Yartines vent to Puerto Barstos vith a party of offtetate and resatnad severe! days at's Gant oeliiey the Geetval of the Litnaa,6/f0on the tioe Ge fhe teseTe eee ae, Srrivel uted unoading ae sosqioted a” offre we ee rane 8s Ppt discharge of cargo and tts ante rene ee ese, A gutod of tpoope vas anintained go" thee 12 aa ieee Se oe Uotuthordaed persons to approtth tho disotarge' wie SP a5/ mere wore twonty to thtsty guards on tho Gosh et gil ieee” eet eee theTaare eonaptoucus Wf the derricks ard wilitery guards were on duty on a2] the suiluy ae chooking the cargo into thea. 11/" Tho Aifhen ene ves alien shoro leave during tho unloading, Regular Ueltea Foust Gomes td THOR employes wore alloved £0 continue thefr vomal norte Put strangers vore barred fron the area end the U.S, Service ittiones ae the fort vere Kops wider survetlance, 42/" Sven the losal shipping agont, to whoa tho Alfhen bed radios on 13 Nay segerding 48s Inponding éevivad, vas probibtted. trom Sounding the’ sole ace vas not given aocess to ito" paper Acmloctons Regarding Receipt of Ams by Guatonalen Offlotels 2+ Guatemlan offtetel efforts to maintain secrecy and to preserve the fiction that an innocuous eargo of machinery was ‘brought by the woro quickly nullified, not only by the flow of Pumor et the harbor, which began even betére the sitp's arrives gad by tho evident, special concern of the Guatemslan Arey chiefs to take tho cargo imediatoly under their coatrel, but ty the charactertatie shape and dimensions of the {tens tnlcaded, eithough gYorvthing wae closely boxed and sone packages carried deceptive sork- ings. 1u/ Mombore of tho Alten crew had had peovious experieveo tn Sreighting arms and wore reported as saying sboue the post thee while they vere toJa the shipment was machinery thay vel loved tt to be armanents, rz2s By 18 May, the Swedish Foreign Office informed the pres that the swedish Government vas satisfied by reports fron ite os Gtplonatic sources that the Alfhen carried 4 cargo of munitions: 16/ Tho charterer of the vossel hoveFtholess dented that the earee consisted of ams, “But the vososl's owners, convinced that the cargo had been loaded under falso doseription,, then cancelled. the harter, on 21 May, at Stockholay ‘Tho ewmers’ then reaioed instruclions for wlthdravel of the ship fron Pusrto Barfiax. 21/ Be Public intoxft in the subject wag now high in Quatenala as oD as abroad and official stetonanta adnttting fuceipe af come finally began to appears Foreign Minister Ouillomo Tortelle admitted in a progg interview on’ Mey that the 1athon cargo consisted of ams, | 18/ On 22 May the official governabit fapers Diario’ se Contre dgericas and also tho paper fusstre Diario carried’ statanenes BREE star of Government, jugusto Charaaud Wasbonald, referring ‘3 ‘ithe shipment of arms" to Guatonsla City. 19/ Gh Bl vay lusetes Diario published and interview with Toriello in whith Torietlo see Teta asgutees hip, tebaondor Purify He ohonent of are recently acquired by the Guatenalan Governmant,® 26/on 25 liny El taparcest gusted oslelto ae stating tae te iifhel es the Sa ETRE outa bring arma "to Guatemala,” 2/0n 26 Way, the official Slarie we Contes cat published a statenont by Mejor Brique ParinelloieageCRer se Str Panic he Sotensed gevebe nye eat, stele Ty Ci ghipnénts Gh 23 May, sn Moxdco, Gustonalan anbassador Roberto idvarado Fuentes adnitted in a press interview given the Hexico City newepieee Excolsigr that arns had been receivads ie aloo inplied tue the seco arked'on the Llthon et Stettin wore of Crochoalovakian origina’ 9/ History of te s1thom Corsignnont As bite and pieces of information from Stockholn, London, and Czechoslovakia cane out, togethor with the ship's log, sailing orders and felsifiod manifest, the history of the Alghom shipment omrged os detailed below: 1y_ The Ws althon was purchased ono or two yours ago bY be Be Bahuslandska Kustan, Uddevalla, Swedon, ‘The conpary is Smo by Stetav Thorden and associates, and mataged by Kid Yordendorphe “23/ 24 The actual charterer of the ifhon for thie voyage was sf zed Ghetgtingen of Stocktcia, an indopendGnt Ship eraser ub Sapeesuces fe Ceochoslovakian Stet Corporation, Cqschotvaakt Qu)” Cebsheteecnt ig identified in the Osechoslovak Sconseis BeTTES te, Bare eet oewary 195, es the’ (Cgechostovaisst State) Conpetavion fer chieetfey Gsachofbacht paid the shipping coats, foweres, tuo othen heen eee ate Corporations are shown on thi {thong doading tina ‘chor’ as ghlopors, ninoly "SFOORAPEDY and M@PRMGP>” the lator te Zestee tn Pie Fobriery 1954 Ceschoslovak Economic Duliotin as tcorparetion ten seternations) forvirGings™ Tat THe Ee Case hoverinoet pees 3s, Because of complications in arranging payment through transfer Of Saochoslovalcian funds from London to Sveden, tifred Christensen: the s charterer, obtained the services of Ey Z. Dean ci London, Deen ootained emission fron tho Dank of England 49 effect the paymants and wes given a tsteay charter" 2y Christensen, Thie was no nove then a femal fimaterrents Chetavenscn agroed in writing wo seks ali responsibility in }egei and financial matterss 26/ the existenos of tals tum’ chartes in London does not in itself prove the cove-t nature of the Wishes trangaotion, because Dean moroly played the rolo of oxyoaieing-tirch Beywent to Syodon, with the full knowledge and consont of the beck a? Englands, 21/ The ricords of the rual charterer, “ifzed Christensen, and of the Alghom itself, hovover, show witting collaboretios “s trtered flepdostind Onterprigns “pho fithin at luast once previowsigy y Gaschetracht, in June 1953," te carry Czochosioval goods Lo Communist Sahar thetstaos else acted ao chatter es thatalest oe BT ae 83,4, In Stockholm on 19 Yay Christenson stated that the Alghem cargo gonsisted only of chentcal and opticel glassvare and machinery as indicated in the bill of lading, He naxed as shipper John Mllop and Brothers, London, Be date {¢ bas not been posetblo to verify the maze or existence of this férm, Ho doolared that the bill of Inding vas desuod to tho buyer and that tho Gaptain of the vessel vas specifically instructed not to release tho cargo Yo any agent or person other than tho actual holder of the fully pat bi22 of lending, Christensen clainod not to Imow vho was teking delivery of the cargo, but Inter indicated thet it vos the Guatesalan Govermont, 29/ 5, Christenson cooperated with the Guatenslan Mintster of Dofenso in the latter's urgent efforts to got the Alfhen cargo transferred to Gustonsien Possession as rapldly a8 possible, and contrived so as to enable the Alfhow Sq resin in port until the consigmont vas discharged, ‘This was 1n daspite of an appeal to Christenson by tho U, 3, Enbassy in Stockholn to onler tho Captain to caso unloading and depart simodiately, 30/ On tho night of 19 Mey he finally agreed to do so, but two days lator adattted to Guster’ Thorden, tho owner, that ho had not carried out tke promise, "because bo thought thet, {8 would bo no use", The saxo day Thorden cancelled the charter ond hinself Assued the Airthor instructions to the ship, 3t/ 32/ 6, Ho actual violation of Svodish lay occurred tn tho Alfhos tion Inasmuch as the ship did not pass through Svedieh territertel 9 vidle carmying {ts cargo of arms, Hovever, the fact thot the Girector-nanager, Knut Nordendorph, went all the wey to Copenhagen to 800 the Captain on his way out of tho Baitto rather than havo tho stip stop at Goteborg or Udevalla, vould indioste that the Alfhem wee trying £0 evold entering Svedich waters, ‘The devious and unusual’ course taken by the vesael on Christensents erders'also becrs out the assueption that ho wae a wivting conspirator 4n tho plot to deliver arne secretly fron Czechoslovakia te Guatemala, > 7. Tho Alfhem departed Uddevolle, Sweden on 6 April for Copenhagen fer bunkers and provisions, thon proceeded to Stottin, Poland, Before Jeaving Uadevalie, the Captain vos told by a represontative of the charterer (Christensen) that e enell part of tho cargo might bo "seconi-class explosives", At Stottin, the shipperts represontatives doniod this, The saip's jhere wes one Miollor, from the Polish goverment ageney "lorske Agengta" Mucler ia mown to have handled previous cargo from Ceechofracht in Giynia, 33/ This agent vas responsible for the bill of Inding and manifest; tho Ceptain Rorely accepted it, 34/ From Stettin, the {2fhem returned to Copenhagen Roads but did not enter the port, There Kuud erdendorph, as states, boarded tho veesel and examined the papors received by the Captain at Steteih, Withert returning to hore waters, the Alfnen thon procoaded 17 dprll toward Dakar "for ordore", The Captain belfoved from his dnatructions that he wcula toke the vessel to a destination on the coast of South imorion; he carried go detailed charts of tho Caribbean, On 23 upril, while in the Bay of Biscay, radio instructions were reedived to proooed ta Curaseno "for orders", On 7 Mayy the Captain received instructions to proceed to Pusrto Cartes, on the coast of Honduras, "for orders", The charterer thon roqucetod hie eatinated tine of arrival at the dlacharging port, and on 17 May, cee doy gut of Puerto Cortes, he vas instructed to take the Litho inte’ Puorto Berrios, Guntenala, 35/° " ttn ‘ 8, Tho fuot that tho ship carrtod cme seane to have toon almost an {open secret” snong those on board, Certainly there 4s a strong possibility fast the Captain suspected if he did not know tha true neture of his cargos Several of the crew monoers wore certain that it consisted of arma, and lies avare of their speculations, it lonst one evewan secretly investigated 8 dasaged packing case in the hole and found tho content to be gun replace pent parts, 36/ By the tine he mado this discovery ho considered 42 200 iste to denchd the extra pay vhich the eraw would have received lind the charterer acknowledged ho vas freighting arms, There 42 8 change, of course, Hast the crew recsived sone form of bonus for tho voyage, lo evidenco of ‘this has eppeered, hovever, Transhtonont of cango AI of the cargo from the Alfher you renoved under military guard ewer an IRGA fretght cars, At the Gerona frofght yard in Gustonala Clty, tt was unloaded by the Guatemalan soldiers end transported clocwnere tn niidtary, trucks, The firet three or four trains were held under gucra in tho Oergca verde during the dey and dtscharged at night, This offort to maintain eceresy HOLEer shamdoneds 31/ Umaswd socurity precautions havo buen continicg, howwvery to tho oxtint Chat members of tho Us Se Army Viosion, who forma i oe_| nd ready deteas to a12 siailad) indtattetlond, nave not bepd peruitted so wich aa a, glinpae of the erates in hich thooe'arey wore saber sate rsy Mission cfttoore wore told by masbera of the Gusceanlan tendral Stair that they vill be poraitted to ses this nor equisennt fas seth as it has Boon cobplotoly uneratody cleaned and asamasicee ay 2, The ALfhen cargo unloaded at Pusrto Harrios consisted of 25,21 Packages weighing 4,122,145 pounds in all, 39/ This yas es deseriaed, with a vory Slight discrepancy, in the bil of lading signed at Statin, which shoved 25,424 casos weighing a total of 1,887,458 kilograms, 40/ The ‘cargo vas Alscharged into 123 froight cars Of the IRCA, “OF thoes, 129 vent directly to Gustemia City, The remaining four cors vere tien to a siding near'tho Puerto Barrios airport, From these cars 200 peolnges weighing 53,799 pounds vere transferred by air to unicioin prints, fe 4s suralsed that scéo of the latter packages went to Zacana, the principal sillitary baso in eastern Gustemia, near the Honduran frontier, dd 3 A12 cargo delivered to Gutozala Gity ty IRCA wes discharged ig the Gerona froight yard, 42/ The subsoquent*distribution so fer as the Tec nny taete £2 Gunton fas bien able to aoertain, wae arprretaely 40% each to the First Reginent (Guardia ge Honor) end the Second Reginent (Gen Mister) and 208 to the Ordnance tosoe Gnestoansa) achat Gentes, “ey Estimated Tyeas ond Quantities of some Rocotzed 1. Informtion evatiatie fron al sources to date indteates that the arus received are of Gercan World War II manufacture, (44/ The nun berg of each tan are uninovn, and st So uncertain wotner tay snbotane tial quantity of anmnition se included in this chigaont, ‘The moron of handling the cargo docs not indicate that high explosives vere eeerted, 2, According to an individual who reportedly participated 4a un Packing the shiment received at the Base llitar the arsa have toon Foconditioned, appear in excellent condition, and consist of tho felloving: (2) A dango mumber of Crechetype bolt~action 7 mz Newser rifles equipped with Taround mgasines, (2) Bipod~type Leht machine gins, Sloth-telt fed, fring a bullet about the same size es a 9 m Luger pistol, (2 7 SS machine guns sounted on tripod. 4) 7 um automatic rifles resoubling tho Broming rifle, except that clip 4s loaded fron the side, (5) 37 tm anti-tank guns sinilar to US type wth lov etthcuette and frounatte tires (6) Axtilory tlovitiers of @ caliber between 65 and 75 ux, mounted gn wooden whools with steel tires and equipped vith steel pro tection shields (approximately 100 of those have been unpacked at the Second Reginont), These weapons were crated in sruncated pyramid-shapod boxes, {2} Meny sortarg of a calitter tetveen 65 and 1 ma, (6) A large mumber of hand grenades, black in color, that appeared to have @ fiber covering and roaenblod the action ond of the Gorman World ‘ar IT "potato masher," (9) Toller enti-tank nines, packod 30 to a caso, These cases bore t ‘the imprint of a champagne glass and were sarked “Fragile,” apparently to create the iupression that they contained glassware, 3, Aevording to the sans soures, all veapons were shipped vith @ dares quantity of spare parts, Ho degeribed the ammunition carried ag for all Weapons snd sufficient, in his opinion, to last the Gastesaion Avay for "the next ton to fifteen youre," According to the source, no dnstructional manuals vere shipped vith’ the equipnent, There wore’ ne anti-porsonné] ines, no arscred carsy no tanks, no vehicles ef ely ¢yps, no conmundeations eqitpcont, no tochnieal advisors and no eirplances Ge?” a x0 ef ¢ 4, The foregoing 1s probably a conservative but fairly realistic eetinate which vould be representative of the totel Alfnen shipment, Much speculation and many allegations have cirowlated on the question, L6/ Such reports tend to reflect however, sexe of the emggeration naturally arising from epprebenoions of Gustaralals neighbors regarding Guaten la military strength ond intentions, The Guatemalan Government, on the other hand, has trie’ ta diminish the tspertance of the Achim cargo by releasing stateaonts implying that the arms received are adequate only for defense and still leavo the country weak in striking powers 2, _ The 2,000 ton consigment discharged at Puerto Barrios was the sole cargo of the Alfuen, a ship which norsally earriss 7,000 tons, After unloading, the Alzhen departed empty, on 24 tiny, 2 thts 2,000 tons of arms had uy the cost would have boot, approximately’ $20,000,000, accomiing toUS Amy ostinates, 42/ Guevexaia, however, Seeks to have obtained this great quantity of reconditioned’ equipaont at a bargain price, to judge by the Imowm movozont of governaant foreign exchange finds at the tine, aa shown below, Ednanciad Arrangements 2, During March 1954 Gurtenste completed an unusual and complicated financial transaction in which about $4,467,000 vas tranaferred. trea fhe sceount of the Bank of Guaterala in’the Federal Rosorvs Bank of How York, Tho transfor probably vas nade to the account of the Caschoslomkden National Bank in Sviteorland, Tho foroign exchange tnvolved in thie ‘twansaction ies about tivo tines the normal aonthly forelgn exchenge sales by Guatemala, Careful srrangononts were mide to conceal what Was going on. The transaction ima split up and fumelled through seven Hew York banks and ono Yew Orleans tank in eoveral separate stop ‘Those cloaking measures successfully Ria tho olse end nature of the transe gotion, To follow 4 in detail, on § March 1954 tho Bank of Cuntomale instructed the Foderel Reserve Bank of Now Yori to transfer $49487s000 ‘fron the Bank of Gustouala account there to the Beni of Cuatentia hor gouts vith various Yow York Banks and ono Yfev Orleans Beni Five gaye later, on 10-11 March, thoso banka were in tarn instructed to {tensor approximately equivalent azounta,to the acccante of the tnion Banaue da Suiese meintained in those bunks, 48/ A subsequent report fren Sviteorland chovs that "in late Fobrary? Guatouaia transferred fte equivalent in dollars cf 20 million Sutss france (84,666,766). 9/ Jn late March, 1954, Gustesala inforsed tho Union 23 ‘that Guatonaia ied draim two checks on this axcurt, Ono April aio checks totalling almost 20 millton Syisa france were presented 0° the Unton Banquo tank by tho Ceochoslovak Hationed Bank (erebstly the Statni bania ceskoslovonoim, the Czech State Bank.) 50/ 2, While the anount of mtittery equipment obtained appears to be great in couparison with the cash outlay hore represonted, @ sosparigen of the contrast between the cost of thie single arns purchase and the annual military budget of Gustonela shows the extraordinary nature of tho transaction, as the whole budget for all military costs for 1952-59 vas $6,000,000 and for 1953-54 was $6,500,000, Since 1952 Gustensla fie paid out'an additional $700,000, 0 far'as can bo deter ined, for arms bought through Col, Hubert Julian, 51/ a hs 2. Final negotiations for the Alfhen arms shipment vere carried out in Prague during January and February, 2954, by Vator Alfonse Martinos, aprarontly dealing at high levels of the Ceochoslovakion State hierarchy ase personal agont of President Arbenz, There 1aic 85 reason to belicve that the egreonents, instructions, end final trans+ agtdon,mmagad etrough Caochosiovaldan’ and Ouatomainh diplomtio chan 2, Major Martinez hes boon identified with numerous previous Guatemalan attenpts to buy arms, He 4s an intinite friend and nonchaan of President arbonz, 52/ Although bearing a military title, he hos ne close relations with the arny, but cocuples a politically iapectent governnent post as Chief of the National Agrarian Departuente Tale gency adninisters the controversial Agrarian Reform lay, a iaw wihich $e, dtatted vith the aoiatance of dose Maen Fortuny, Unit recently Sesretary-deneral of the Guatenalan Communist Party (Partido Gutem taco el Teabate), and pushed through the Guatemalan Congress ty Commo Pressure, 3,_ Just prion to the aystertously euddon Jou-ney which teok Major Martinez to Sviterlaad ond Prague last January, 56/ Fortuny spent ino Zonths in Moscow, 45/ Also present at tho Sovict capital in the sane period was Victor Haruo] Gutierrez, Communist chiot of the Gustension labor organization, 56/ 4+) During tho sane period, arrangenonts were consumnated for tho forml establishnent of diplomatic relations with the Soviet satellite goverment of Cecchoslovakia, and the Minister of that country presented ‘ls credentials to the Prosident of Guatenala on 29 Jamsary esi, Te was not surprising that the date of this diplonatic accord coincided with Major Martines's mission in tho Ceechoslovakian capital, uhore ho rensined from 21 January to @ February. 3, A minor but possibly related strand in the net of political and comnercidi intrigue surrounding the Alfhem arns shipnant 40 the fact Fortuny in 1953 obtained for hie brother-in-lau, Uario Joes Rivera (elias U, J, Olivora), tho offiotal representation in Gustonala for Cacchoslovakinh products, To do so, Fortuny displaced the log established representative, Jose Polacek, by whoa Jeres formerly we employed, 58/ Erevious Cuntenslan Btfortsto Obtain sms 1, Guatenalan efforts to procure arms through irregular cbsnnels ge back at least to 19,9, In a statenent quoted ty the Eutemsien Rovepaper E) Inoarolal on 22 October 1952, the Undersecretary of Defense, Ie, Col. Juan Jose Serra, revoaled that Col, Hubert Fauntlerey Julie hed served Cuntenala tudes as an intermediary in the purchase of ares, once in 1949! end again von he procured *tuslve Svico Ostlikon anita adveraft guna," The latter vore delivered during tho week before the ovaargr interview, Julian haseit wae qucted in the Guatoeadan neva Papora Prensa Libre and La Hora of 21 Octcber 1952, as saying that a Guntenalan Goverment was considering the parchase’ through hia of an undisclosed munbor of British Spitfire airplanes, In Ja‘Hora of 2 Setaber 2952, Julian declared that during the year he bad delivered $84,000 dollars worth of military equipaont including halftrecks. “ie denied that any of the goods he had obtained for Cunteanlan wore namic . factured behind the Iron Ourtain, Tho Undersccretary of Defense denied ‘elisn's clain that a purchase of Spittires wis contemplated, "hen te vant airplanes," he said "vo wil] get then in tho United Staves.” 2, Hubert Fauntleroy Julian, tho "Black Eagle of Harlea," is a flamboyant Negro soldier of fortute vho wes born in Trinidad, B,W.1~ Gf a Veneauelan mother and British father and nov hag US citizenship. st / He was undoubtedly a principal in arranging purchase of the Cerlikon anti-adroraft gung end halftracks mentioned above, Of that deal, the @nti-airoraft guns were actually delivered, but arrangements never have been completed for shizment of the woapenloss halftracks beewuse of export conse problens, —Thes Row are legally in the possession of the Guatemalan fntegsader in England and ere physically located in tho latter country, 60/on fan arms agent has been widely publicized oxer the past several years and he tas told hie story freely, toasting of suece 3 failures, in so many different versions that references to his activities samstines tend sere to confuse then to clarity the history of Guatonalan efforts to obtain amas te fn certain that Julian has obtained military supplics for the Gustesaian Government through the Suiss fir REXIM and the associated Italian fire GERAR. S1/ Misundorstandings or fraud in the financial accsint ing 28 well as frustrations regarding actual delivery have caused contros Yersy end veerimintion between all parties to these deals, ‘The present, study will not be served by attenpting to sift out the facts hore’ tact of the ftetioulty, however, ws the reoult of Yack of tochnical kowleage Geupled with carelessness on Julian's part, It is no sesret that one CeuE {im deliberately took advantage of his lack of technical efftetency and delivered training ammunition, for exanple, in place of the high exe plosive type the Guatenalans expected to receive, Go) fe, Julian clutns to have bed @ part in arranging the purchase of fie Athen arms cargo, It is unillkety that he hed angthing’to ee et ‘the Seed go far as it’ tnvolved naterial fren Coechslovakin’ But this dees not rule out tho possibility that seas itens he eoquifed elserhore for Goatensia could have boon transported to Stettin and losdes is nigh the dlfhes shiment, Julian waa in Guatemala on 19 Fobruary 1954, 63) Precisely shen tinal arrangononts for the Alfhea shipeent core ae’ peeecoso, He Bien retumed to Burope, &i/ In larch, he wes tn Swlteeriond ane free dn Svoden where bo tried t0 tuy surplus Suedish planes and antieineeet firs for Guatemala, offering cash paynent in US Goliare, eB) A fotos £3 32 Merch 2054 hd reportedly ‘bought fron AKT Nanit, Tinseecseogaten $0 49» Stockhets, "24 halftracks, two landing craft, 'and five tacos frallors," G2/' On dune 9-11, after tho Alghen ineiéent, Jullan wo gsin in Sweden, and again 1h contact wlth the Stocihola fsa ak Ranke, Mere ves no trace of any contact at that tine with indtviduels connected with the alfhen, é3/ fz, An ghundance of inforsation from nany sources shoxs thet Guate- ale has attesptod to obtain ams, airplanes, and tilitary equiyoent in almost every Europoan country and in the United States over the sast several years, 69/ Apart from the cases discussed above, however, fa Anpertant information enexges excopt to show the pattern of persistent, determined effort, Sy, Gontacts in this quest heve been carried out through regular gennercial channels, through adventurous arms dealere such a3 CoLene) {ullan, and through Guatemalan diplonetic representatives, In the ‘Seckground of these transactions nove the Communist pelitictans. Ze, Gok, Augusto Morales Derdon, Guateman Minister to Belgtus, and Jusn Grajeday Guatenalan Consul General in Antwerp, long heve been suspected ao participating in clandestine atteapts to tuy asne, Joon Grajeds 1s a fomnor protege of the late Foreign Ministery Enrique tunes Meany, who veo'a vell-Inown pro-Comaunist, Under Meany in tho Guatemalan Pubassy in Paris, in 1919, Grajeda wis associated vith Carlos Manus] Pellecor, ho’ sinco thén has atandonea his diploatie career to becone one of the threo principal Conmnist leaders in Goate= mala today, Oraseda and Col, Morelos Dardon were reported in 1953 a8 in contact sath a German industrialist, ono (tna) Phelling, tte ches {hey traveled by atr to Berlin in an effort to make arse parchases, Turing Yay» 1954, Grajods was reporting to Morales Darden regarding ship departures troa Hanburg and Antwerp with evident referenes te cuntetons sought ty Guatanaia, 76/ 8. The principal officers of the Guatemalan armed forces seem fe,tawe bed Little connectien with surreptitious atteapts to got arms. Ereeident Arbon reportedly once authorized the Chief of his Miltary Steff, Col, Riuardo WEYMaNii, to survoy with the Italian Astascador io GusteSela the possibilities ‘of obtaining aiveraft and aras in Italy, Gol. Weymann touched on the idea of trading coffee for armas Zi/Co ye 9. During his recent tour of South Aneriean capitals, Colonel Enrique Diat, Chief of the Guatemalan Armed Forces, nade afew pleas for arms and ammunition, and according to an unconfirmed reports ebe jsined @ token chigmont of hand grendes (of German Worlé Wer Ii vintage) from Argentina, 72/ If acquisition of arms uss a real part of the pure Hyse of Col, Dink? journey, however, he pursued the mission with Itttle 20, "In view of the fact that President srbens and Colonel Yartines mew before Colonel Diaz departed that the Alfhom was scheduled to bring arms fron Czechoslovakia, the Diaz quest for arms could have been laid on merely as a bit of stage setting, in advance of future cleine that farms assistance had been asked and tefused by friendly Western Hemisphere countries before recourse was had to the Soviet Orbit, o Re shty 1, Rumors were current azong the Alfhen crew and in Puerto Barrios during the unloading period to tho effect that at least two nore voovele ‘bringing eras and armmition wore duo to arrive shortly in Ouatensla, Daily surveys wore conducted thoreafter by AIUSNA, Hlondures, The nove™ sents of sone forty vessels traveling tovard or expected in the Caribbean area vere closely checked, Z4/ Two ships, the Wolfstruk end the Moning, ware inspected for possible arms cargo, 74/ Results vore nogstive in all cases, 2, [Tho full oxtont of the activity of the Sviss fir REXIM and ‘the effsliated Italian GBUAR, in supplying arms to Guatemala 15 not yet clear, “Althgugh they now give the appearance of willingness te cooperate in denying arms to Guatemala, the responsible heads of the two conpenies have responded only to limited and specifie requests or questions, and At 4s possible that they ney have withhold other pertinent inforastion. REXIM wna founded at Geneva in 1947 by M, Roger Sinonin, The conpany deals in buying, selling, inporting and exporting of rav materials, and RerchanGise of G11 ‘sorts fron all sources, manufactured or note. T¢ hao dealt heavily in roplacezent parts, munitions and arms, a3 vell «3 large quantities of surplus jserican army automobiles and parts, ‘Tho fira is Fepresented by CENAR, S, r. 1,5 the Italian International Development in Roney Cu1.F4E, in’ Paris, ESPERAVZA & CIE, and APRIGONTRA tn Vadusy with correspondents in ali’ countries, Roger Mare Auguste Simonin, who Lives in Genova, ie the president, fe vas born in 1913 of Swiss fation= ality, 26/ Robert A, AUEERT, a naturalized American citizen, is came nected vith the firm, 77/ “Murico Maubert, en ams dealer in Parte, ‘also has boon mentioned in relation wth their activities. 73/ 3, In 1950 a ohtyment was delivered to Guatemala from the GENAR company, through Colonel Julian's efforts, as follow! 22 Breds machine guns, 12, 7mm 22 Breda machine guns, 7,7 2 24 Tripoas for above 22,000 rounds 12,7 mm, axunition £0)000 rounds 7,7 ma, axmunition 1 Ylauser Cannon 20 tiny 1,000 reunds 20'ns, amtunition, 4, The Génar company shipped at Toast 255 cases of cartridges ant aching guns to Cuatensie sn 1951, 72/ “In 1953, Genar supplied Guster ala ‘lth 25,009 rounds ef 20 nm, s¥eol antivaiteratt Osriitanctype ammunition, 20/ In 1954, Roxim celivered ofght boxes weighing #586 pounds, to’ Aierto Berrios nanifestad ae auteaoble ccosssries, Bi/ erin dta'not obtain the mun) Sviss export iicenee end. the suspicion arises that this may have been s small arms shipment, §2/3. 48 proviously steted, the Rexim company unloaded second-rate eateriel in filling cons of these orders for Gustenala, The Geriikes type ammunition here Listed previously hed beon declared valucless ty the Seles Arsy Technical Departuont and consisted of training shells, with lov fragnentation and reduosd explosive charge, 83/ Guatens lan cétleers were reported as disgusted vith the poor quslity of the anu nition, 84/' Since thet tine the Aray has been pressing for delivery of nore ammunition for the Oeriiken entieaireraft gins 5/ 6, extn was responstble for or involved in obtaining for the Guesontlan governsent the consignent of 25,000 rounde of Sleak Seles anticalrcreft shells which wes intercepted ft tho fros port of Henneg gu 15 dune, 2254, 86/ Reportedly those shell originated tn Suise cesplus stocks, 87/_ The 'shipeing agont at Haaburg ropresosted the tudes’ Piss Natural Te cowtre, £57 2s My Sean Jacques Renaud, an offietal of Rexin S,4,, on 28 Yay yont to the /serican Consulate at Hamburg to discuss this’ ahipcent oF 70m snmunition, Ho stated that the anount was 8 tons and that Reis bad drain raynent for it from a deposit of £200,000 paced with the firm ty Colone} Julian, on behalf of tho Guatentlan Goverment, in 1952, Rensud implied that the present shipment contained practice ammunition, Tether than higheoxplosive ammunition. This has not been verified, 32 will be recalled, hovever, that the previous shipuont of acsanitica Was Practice anminition, and was unsatisfactory to the Gusteunlan hray Sifteere, Te does not does likoly thatthe Gusteralana would aocopt second shipnent of training ammunition, 8, The recont investigations of arms traffic also revealed thet lesburg bas eon the port of departure for previous ascccasful, ‘shimcents of arms to Giatesala, Three specific shipaents have besa reporter fe Hy Fr OORDES & 60, 89/ A ropresontative of this Tira, Ney {ind} durgelaus), yont to Gustonala tn 1953 and obtained fron the Chior’ of the Gatin sialy (Gol, Rogelio Cruz Ver) an order for subeachine guns, ammunition and pistols, He also obtained, he seid, "a certificate trex the Gusrdin Civil Stating that these ers vere destined for the Gustemalan Police force only," 90, Tareo “shipsenta then wore delivered to Gustenalajas fellevst 24 Asmunition for Machine Guns "MP 40" - 288,310 rounds, This vas purchased fren Porsvarets Fabriksverk, Stockhsin, and sae shipped fron Sveden on « through bill of lading to Guntenela via ‘the Hanburg Freeport, bs Pistols - 150, purchased from the Manufacture de Machines du Rattrfin, Mulhouse, Alsace, Tho French export license ves ‘obtained by the camufacturer, oy Submachine guns "MP 40" = 200, Tate shipment vee purchased fron Forsvarets Fabrikeverk, Stockholy and shipped to Hanburg Freo= Fort en a through bill of lading to Gustonala, According to H, F. Cordes & Co.) payment for this order ws mde by Srrevocable dollar letter of credit opened at the Chase National Sank of New York on instructions of tho Banoo Aertcola Meromttl of Guatensin, Upon shipment of tho arms and anmunition, Condes paid the suppliers from the letter of credit, and retained the balance as profit, Q1/ Seige traffic in ars for GuatemJan nilitery use has been uncovered a Belgian ports, The Belgian Goverraent approved, in March and April, 2954, three Leenses for shipnont to Guatemala of a sun]l quantity of arse and emrunttion, on the grounds thet they vere for sporting purposes and not military uso, The three Iiconses covered aprroxinately 250 ppspons, 92/ The shipment was loaded at Antwerp for Guatenala on French flag vessel Nyoring, This cargo ves found to be as described in the goverment-approved export licenses, consisting of 36 shotguns, two Pistols, 25 .22 caliber rifles, together with spare parts, 3/ The shippero se, vias the Schroodor Lege Conpany and the consignee was J] Polasek, Gustee mala, Polasek, as previously rontiened, formerly was the representative in Guntensla of the Czechoslovak Govorntent Export Menopoly anti that agency vas conveyed to the brothor=in~lav of Communist Party Secrotary= Generel Joso Manuel Fortuny, The present order nay well represent no Bore then an attenpt on Polasek's part to develop & new import Dine, 20, Guatennla's urgont efforts to obtain arms and esmnition ex: tended to Spain early in 1954, According to a representative of the Gonar fia,’ desl wis concluied through ortn of Geneva vith a Spanish fira, for i millon rounds of 7 mz, Mauser rifte aminition to be shipped fron'a Spanish port, 21/ Allogedly this shimment sas to go to knsterdaa, seoro 1% would be reconsigned direct, to Guntensia, Tt was incidentally stated that Guntentla has considerably in excess of 10,000 7 tx, Meuse? rifles (type produced eapootally for Tatin Anorien), but has only the 22 Prods Eachine guns noted in the Listing above, to wtilice an available 209,000 rounds of 7.7 asminition, 95/ In responso to US representations, Rexln cancolled tho order for tho Ttllicn Feunds of eimnition tras the Spanish eource vas cancelled, Sonelustons 1, Guntenala has succeeded in obtaining considerable supplies of arus ahd military equipment, but hes not been able to obtain conplenentary supplies of azminition, All of the arms and equignent obtained is old and much 42 deficient in vardous ways 2, Guatemala can be expected ta continue its efforts to obtain ax runition and supplenentary ars and equipment to overcone deficiencies. Various cargo vessels Inown to be loading or at sea are still suspect and subject to vateb,of uu uma OUTFORM BILL OF LapING 1946 The Documentary Council of the Baltic and Internettona) Marie ‘time Conference To be used with Gherter-Perties Code a eongenbi22 Shipped at Stettin in apparent good order end condition by John Milles & Brothe: of London on beard the good Vessel called the "ALFEM for carriage te Dakar for order er sn near therete as she nay safely get, the Following goods: 8 15.424 cases nachinery equ: > ° ‘spare parts, labes chemieal glass et: ° 25 per specification uy and ACTUALLY ON BOARD! ‘FREIGHT PREPAID! Dated at Szezoctn, the 17th April 1954 /o/ sexx aay: Specification to the B11 of Lading dated 17 April 1954 n/n "ALFERM shippers John Milles & Brothers, London Gestination: Dakar for onder 5 ° Wes: 1/1-1000 . 1,000 shovels 81,,300,-kos afer * 4.167 nails 570.379,-kos 3/1-50 Plokaxas 750,08 a/rea3e Rachinory spare parte 29,000)-kos 5/1-200 pachinery parte 36,000)-kes o/nizes sereve 190156,-koe 7f-500 hand tools €2,000)-Ke8 8/1-300 Pachines and 7 machine tools hsk2Byakos 2-232, 2,334 cases spare parte and nachinery parte 273,834y-kos 20/1-2022 2,032 casea laboratory and chenical glass 1283,100,-Kes n/en3 103 cases labsratery equip ont 1B,041y-kos 12/1m2525 2,525 cages fine mechanical fand optical aparatuses 281,993,.ko afase 92 cases disassembled sachinea 38. 801,ekoo U/2-501 501 cages nachinery oqutpaent _63,177.cke9 25,124 cases Total 1,8874456 rioye Statonont of Johan Henry LIKD) Captain of the ¥/S ALSHEM, taken at Key Westy Florida, on 28 May 195lh Jy name i Johan ienty S210 and Zan presently Master of the 1/s AIPHEM. T have been Captain of the vessel eines April 7, 2954, when Captain Johsns became i11, the vessel then wee dn Copenhagens Previous to this voyage, I had been Chief Officer since Soptenber 1953, T have held ny Captain's Certificate in Sveden since 1950, I have been with the ALPIEM's owners since they purchased the ALPEEM, at which time I went aboard ao Chief Mate, Previous to my employment by the omnere of the JLFHEM, T vas with ‘the owmers of the Salen Line for sbout seven years as a ddck officcr, I have been an officer since 193%. On ipril 5, 195ly when the ALFHEM was at Uddevalla, Sweden, I received Anstructions fron the ‘omners to proceod to Stettin for loading.’ I also received a copy of the charter party betveon the NGF. RIYOSIKTIEBOLAGS? EOHISLANSKA KUSTEN, UDDEVALLA, Gwnors, and :KTTEBOLAGET NAVIGATION, Stock~ holm, charterers, dated April’1, 195i, The ;LPHEM sailed fron Uddevalla on ipril 6, 195i, and procesded first’ to Copenhagen for bunkers and provisions, We Lay at Copenhagen Roads and the bunker station for approxinately 2uhours, We thon sailed directly to stettin, Upon leaving Uddevella, it'was my understanding that the cargo which would bbe loaded at Stettin would be genaral ard other legal cargo, according to the charter party, Beforo leaving Uddevalla a charterer's representative (trom Donalfredo) mentioned to mo that a onall part of the cargo. to be loaded at Stattin night be sone "secondeclass explosives", I later in- quired of a Mr, Mueller, representing tho shipper in stottin, about the srall cargo of seconivelass explosives, He informed mo that’ there would be no such cargos ‘The vessel arrived at Stettin on April 9, 1954, snd commenced Loading the following morning, Loading procoodod in accordance with the rotations made in the ship's logs Tho vessel loaded at a governnent pier which had two cranes for light lifts (approxinately § tons). The stevedores who loaded the cargo apparently were ordinary longshorenen and I did not seo any unusual security guards in the ares. I did not see any Latin mericans concorming thenselves with the loading of the cargo ab Stettin, The usual military quard was stationed at the gangway and ‘there were’ two other ships at the sano dock in Stettin, one Swedish and one Finnish, according to my recollection, both of vanish were tied up shead of us; So far as I could see all of the cargo loaded aboard the SLBHEM cane ‘out of railvay ears which wore pulled up slongetde the vessel on the quays T did not pay any particular attention to the marke on the railway cars indicating their possible origin, but Lt was the usual mixture of railway care from various countrice, ‘the ship's agent in Stettin was the Government gency, "YORSKA JGHIICLA" (Cable address: POLEROKER)s {1 vessels are required to use this agont in Stettin and in all other Polish ports, Mr Mueller was the chief taliyman in charge of loading the cargo, Ho apparently represente the various shippers of cargo fron Polish ports, T had previously seen him handling cargo for CUECHOPRACHT in Guignday 4 List of the cargo to be loaded was not provided to ne or to the ship's officers before loading began. Tho Chief Mate prepared the cargo plan on the basis of hie ow cbsorvattons of the cargo being loaded. Checkers also were provided, T think by tho ehippors, although at ny request, to check the cargo into the vessel, Gn the basis of the checkor!s tally sheets tho BATl of Lading and manifest were prepared by the shipper's agent, The ship's agent obtains thie information fron the shippers, as mentioned above. When signing the bill of lading, it was necessary for me to accept the List of cargo aboard, as prepared by the shippers ALL of the cargo was loaded by the dock cranes the shipts derricks were not used for this purpose, There was no deck cargo loaded for this voyage. {11 of the cargo was in wooden casos of aiffetent sizes, So far as T could tell the weights of the cases and cargo shown on tho epecifi~ cation attached to the ELI of lading wore approxinately correct. the xJargest case taken aboard was dpproxinately one noter square on the dase and two meters high, ‘The cases in which the cargo Was packed wore strongly construsted of woed, aid I had no opportunity to cbserve wat was in then, The Chie# Nate told ne about one oase which had been danaged and a wooden chost wes seen inside the outside packing, In accordance with oar regular practice, we repaired the outside case, I heard soveral runors fom nenhers of the exow that the cargo night othe a5 Listed in the specification, but it was necessary for me to aecept the specification as given to me with tho bills of ladingy if T had Jearmad that the cargo loaded aboard was not that specified in tho charter, At would havo been necessary for mo to notify my omore of thie fuct, and ‘Shon it would be up ta them to straighten it out with tho charterer, In addition, if T had been avare thet weapons or explosives wore aboard, 2 iso would have notified the mere, particularly because in such @ ease ‘there might be violations of various safety regulationss During the voyage from Stottin the ower of the vessel, KID NORDENDORPH, boarded the vessel at Copenhagen, I shoved hin the papers received in’Stettin, Tho charterer did not assign a super cargo to the vessel under the provisions of paragraph 33 of the charter party for the voyage, There were no passengors aboard the veesel during the voyages Hy wife, sony and daughter were aboard, eiged on as menbers of the crew and the wife and con of the Chief Engineer were also aboard, a8 monbérs of the ores On april 17, the ALPHRM satlod from Stettin and our ordere wore to proceed to Dakar for orders, ‘This was in accordance with the statencnt in the bills of lading, and’also the clurterer hed informed in Usdevalla ‘that these would be myorders fron Stottin, although he was not certainy Dakar has been known to be an Yorder port" and dt was my fooling that when vo left Stottin that it would not be the destination of the cargos I therefore assuned that our destination would be sone place on the east coast of South imerica and to be ready for that eventuality, I obtained charts for thet area, However, T did not obtain and did not have lange scale navigational charts for the Ceribbean arses Originally, I had no thought that ie would be going into the Oarébben area because Dakar ie too far South for such a diversion and considerable tine would bo lost ‘he voyage proceeded without incident until on ipril 23nd hon T yecoived radio orders from the charterer, while the vessel was sonewhore in the Bay of Biscay, to procoed to Guratac for ordors,, Upon receiving the orders to proceed to Curacao for ordre, I cables’ the amore ant infornod thon thet I thought that T night need additional chartse I expected that I would have posoibly two er three days in Curaao Roads ani therefore would have tine to obtain charts for the order ports. While the ALPHEM was still to the east of the West Indies T recetved on May’ 7th further orders by radio to proceed to Puerto Cortes, Honduras, Por orders ‘This message was received in tino for ne to pass through Windward Passage on a route to Puerto Cortos, Subsequently T received a noseage asking for ny BMA st the discharging port, T ratioed an ansvor giving the Efh at the order port (Fuerto Cortes). Finally, when the vessel was approxie mately one day out of Puerto Cortes, I received on May 13th a moceage paning Puerto Barrios for the dischtrging port, I have never before been in Fusrto Barcios and had no harbor plan fer that port, I therefore radioed to the agent naned in the message which had naned the final port cf Giechargo, PAPADOPOLO, to bring out a harbor plan before I entered ‘the harbor. "Upon arrival outside Puorto Barrios, he serit a harbor chart out by launch, There are no pilots in Puerto Barrios ari therefore it was necessary for ne to pilot the vessel into the herbor myself, Tho ALIEN first anchored in the toner hazbor on the 16th of Maye Shortly after we anchored, a person in a uniform case aboard the ALFHEM fand ordered ne to cone ashore, He took me to an office which T accurad to be the Port Captain's offices Upon arrival at this office, I found a Jargo group of military and civiaian persona, They iimodiately asked ne Af I was the Master of the ALAHEN and whon T’ said that Iwas, thoy handed fe the original bills of lading. 1 took tho original bills of lading and thon asked to see the wosol!s agent, because I nected assistance inclearing, ete. I lodated the agont in another room in the sane building, but'he informed me that he did net want to act as agent for the Yessel, Wo lod na to believe that sonothing was wrong and ‘that he was worried about losing his ageney for other compeniesy He was vory friendly to me personally and told ne that I really did not hood an agent and could handle natters mpeelf. However, he did arrange clearance for the ALFHEM when we vere ‘ready to leave the porte The vessel wont alongside the quay on the afternoon of arrival and I notdood that there vere, what I considered to be tutustal security precautions being taken. “tho cargo was discharged directly into +1i2- Sway cars on the quay with the chiple derricks, The rilitary guazcs wore stationed on all of the railvay ears and wore checking the Cargo into them, The discharging of the cargo itself wae handled by the regular stevedoress In all there were approximately 20 to 30 nilitary guards on the quay at any one tine, It was imposeible to uso tho ship's radio as a practical matter because it was necessary to tale “ion the antenna to use tha shipts derricks, The messages receive? ab Pusrto Barrios were received through the ship's agont, and ry messages were ‘also sent through the agent, {11 nonbers of tho crew were povmi tied, shore leave. Upon complotion of discharge, my copy of the specifiestion attached to tho bill of lading was signed by a uniformed individual hor T thought to be the Port Captain. Ho elgned with the notation that the cargo had been received in good order and condition and without any ronarkse ‘There vore approximately 8 or 10 other vessels in the harbor of Puerto Barrios ani lor § more in the Roads at all tinsel, to 6 vessels could get to the quay at one tine but the ALPHEM was the only Vossel which had militery persomel in attendance at the quay while Gischerging while we were there, ‘The vessole in the harbor wore of severe] different flags, including one Swedish; one or possibly to Norwegians to or possibly three German; and eeveral United fruit veseols, The harbor was vory crowded and there was not much space for us. whon we arrived, ‘wod the exew menbers, an engine roon apprentice by the nane of BO AKEL CIMITS, and a waiter by the nano of SViN BERTIL OHLSSON, deserted ship while we vere at Puorto Barrios after about five layse T have no ides why they left the vessel, They had been ashore nest of ‘the day and aboard st night but they aid no work during the day tines Several menbors of the crew had heard that they had stéwved away on another vescoly State of Florida County of Monroe Stor to before me this 28th day of May, 195he‘SHORN STATEMENT OF HAROLD HAASE, VICE PRESIDENT IND GENERAL MANAGER, CURTEUALA DIVISION, INTHWATTONAL RATINAYS OF CENTRAL AMERICA E, Harold Haase, a citizen of the United States, Vice President ant General Manager of the International Raflnays of Central Anerica, do solemnly swear thats ‘A’ about 10 an. on Soturday, May 15, 1954, 8 memorandum dated Yay Uy 1954) written by Humbesto Ciottt Gempce, IRCA Terminal Superin~ fendent at Puerto Berrica, Gustenale, and directed to the General Superin= fendent of Transportation’ in Gantensia ity was received An ny offi. Jt states thet a chip was due on or about thet date with cargo for the Cuntes Belan Goverment but that no definite information a6 to class of cares, gpsntity or origin vas known, “Innediately on receipt of this manorasiin, E checked with Mr. Ofott’ by'ratircad telephone, ant he stated he had no further information exeept that Arturo Papadopolo was supposed 19 bo the asent for the ship and thet he understood the ship's cargo wae lazaent", A Purther check with Mr, Chotti later the sexe day and by the same asene Setonol Sanches (Minister of Defense of Gustenale) and Major Alfonse Martiner, Director of the National Agrarien Departnent, together with sone of the loos] Goverment port officials, but thet in so fer as he knew there were no shits Gocments, manifests, or bills of Iading covering the cargo. Mr. (lott seta Colonel Sanches asked hin to provide fittean flat cars, epi eo many box core ani loocnotives as would be required to move this special cargo ws thout Gelay end asked that the ship be docked tmnediately, I instricted Mes clots fe inform Colonel Sanches that all of the berths were occupied at the Fuerte Earrics pier but thet Colonel Sanches could order one of the ships to leave the pier so that the Alfhen eould be docked. A United Pratt Conpany ship that, was not vorking st that tine noved out into the strean and the Alston es dooked, I vas told that no IRCA or United Fruit Conpany officials of eaployees wore permitted aboard the ship excopt leborere to handle fhe discharge of the cargo. I vas informed that Colonel Senses stated hhe wished the ship to commence discharging immediately, but aue ts bea westher and other deleys on their part, actual effective dieonerging was ot cosnenesd until between 6 and 7 aut, on the moraing of May 16, Atter fhe discharging vas started on May 16 °Colonel Soncho: informed oxpany gmployses that he wished to discharge twenty-four houra a day end accired thet there be no dolay due toa shortage of cars, or power, a novenens over the railroed tron Puerto Berrios to Guatenaia City. When Mr. Clot. asked for instructions, on May 25, with regard to docking the ship, he wae instructed to estimate the cost of the Isbor involved in the Clecherging of the ship and to info Colone! Sanches thet the emount estinn ted woul have to be deposited before any work was done, This information sas given to Colonel Sanches, and on Monday, May 17, he deposited 6,000 quetzales with Hr, Olotth to cover it, “The cost to the IRCA may be some= what more than this, The discharging during tho first three or four days was slow and only about eight railroad cars wore dispatched fron Puerto Barrios every biclte hours Gut from the 20th on sone ten to twenty cars were dispatched every ‘welve hours, or a total of 123 care for tho ontize shigment aboard. the Alihen. Unléading vas finished on Sunday, May 23, The first train with oight cars left Puerto Barrios st Midnight, May 16, According to infornation given International Railways off Centred American employees by soldiers vho ware aboard the trein ea guards, cn explosion occurred under the locorotive at Kile 16 (Cesteneds) as 44 Passed over @ muali bridge. ‘The soldiers who were accompanying the train ordered the conductor to stop innedietely after passing over the bridge amd on investigation found that bonbe hed been rigged on both rails over the bridge snd connected by a wire loading see 200 yards into the avanp 2 4 detonating machine, ‘The local nevapapers printed a picture of the bridge and the bond.” Following the attenpt to blow up thie train wiidch was investigated by the local military end police people fron Puerto Barrios, Zaccpa and Guatanela, tho Ministry of Defense asked ne for efx: rail motor care with trailers’ to be placed at the disposition of the sitGuntansien Goverment for the handling of troops fron these three Points to the bridge at Mile 16, Thess motor cera were eleo for the purpose of piloting the trains with the special Goverment cargo fren Puerto Berrios to Guatanala City. In conection with this movement of Guatenaian Governent spectal gorge the Internstional Railvays of Central America received Tesorta from various employees of the United Fruit Company at Sananera thet the United Fruit Company employees were all going on strike on Yay 19. Ae a result, I suspended ratiroed operations on the United Fruit Company, pines but ordered service resumed vhen the atrike did not materialize, However, on tho 20th the strike did take place and ell Taternational Radlweys of Contral Anerica train service on United Fruit Coapany Lines was cancelled end 611 locomotive pover and practicni2y all equimoont yee removed fron those lines. On Friday, May 21, tho Governaant Anterventor of the Internaticnal Railways of Central Ancrica, Lic, ‘fongo Bauer Pai2, called ne on the phone and asked that ref eorvice be re-established,’ I told hin that T'could not operate our tralne through those 1inds unlegs the Goverment vould in writing guarentee safe operation, assuxe all responsibility for any accidents: deathe, ete, and retum to service the regular employees of the Unite! Fruit Coupany who vero required to operate our train services, Lic, Bauer Peta confimed his orel request in a letter of May 22, to viich T replied Am writing in the sone terns as mentioned to him verbally the day before, Qn the morning of Saturday, May 22, Lic. Alfonso Bauer Paiz, Colne Rogelio Crus Wer, Director Gonoral’ of the Guardia Civil, and Yajor Jelne Rosonber, Director of the Guardia Judicial, called at ny office at about 10 of clock and Bauer Paiz anid he only fai two points to Giscuss with ne, Tho first wes thet he wanted ali care and locosotive Power necessary placed at the disposition of the Gustenalan Govermoxt fe handle without delay, end 1f possible in one train, the balance of the Nermanont" thet hed arrived on the steamship Algnan. "I inforned Bauer Pata that such « request required a little practical study tecmuse T aid et know how many nore cars or hov many more tons of armament was stil) fo be Sischarged from the ship and sent to Guntenale City, I cleo told Goloned Crus ver that thie request appoered unisual to me because An eo far aI know there hadn't been any shortage of care or power since the arrival of the ship. Colonel Crus Wer then said they were very interested an gotting this "armament" noved as rapidly ae possible, I told him thet International Rallways of Central America officials supsosed the dango Gonsidted of armanent beccuse wo had heard rimors to thet effects After fis statement when ony reference vas nade to the moverent of this cargo by ‘the three men calling on ne, they referred to it 29 "special cargots Tho sooond point vhich Bauer Pits stated he wished te spark to ne stout yas the re-ostablistment of International Rallvays of Central America train service in the United Fruit Company lines betwecn Bananere ana Quirtgua. From the various conversations which International Radlways of Centre) Anerice officials in Gustemnla City hed with Mr, Clotti in Pierto Berrios over International Radiveys of Central inerica telephone Lines, it wae understood that Mr, CLottt had been informed either by Colonel Sanches or sone of his part in Puerto Barrios that the shiynent aboard the Alfhan considted of arninenta, ALL of the cargo from the Alfhen vas discharged in the Gerona frotght yard in Guetonsle City by Gustonalan goldiers and transported in nilitery jrucks to ® dostinstion in the City which I understocd wee the Guardia de Honors The cars arriving on the firet three or four treina vere held under Guard at the Gerona freight yard during the dey and discharged at nigh Dut the last several trains were discharged imnediately after arrival at Gerona. I supposed thet the action in unloading at night at firet vas es g matter of secrecy, When the first train of Aifhen cargo arrived ot Guatemala City, the "International Ratlveys of Central snorica hed resolved ho information’fron anyone with regand to vhere it wes to be dlecharged #0 tho train ves brought to the Guatenala City fretght yards, About thirty ninutes Inter eevoral officore from the Ministry of Defense arrived at our .sey Gispatchor!s office and asked that thio train be returned to Gerone freight yard for discharge and that all further trains of this type of cargo te set out et Gerona for unloading, According to reports tone from our offteieis ard employees, oach of the special eargo trains from Puerto Barrios te (uatenala carried en Army officer end fron ten to twenty soldiers guosding tho shipment, Tn co far as tho offictels of the Internations] Re{Jvays of Central ‘Amerien inex, the ship shoved no ship's docurente nor documents, covecing the cargo which is elways nocosstry requisite under normal conditions, in handling cars on our rattrosd the dispatchers made out the Noonssst List” Properly, oxcept thet on their ovn initiative they described the cantante as "afvecho" (bran). As soon as this cane to ny attention T instrastes our general superintendent of transportation end chief dfapatcher to fave 11 such consists! corrected to read "special cargo" or "Governneny onrgo", ‘The dates given above, including that of ay interview with Lic, Bauer Pata, Colonel Cruz Ver and’YaJor Rosenberg (stated to be May 22), are correct to thebost of ny redollection without reference 42 ny fecerds im Ouatenala; thoy ere in any over sorrect within one or two doje, ¥IMEss Se Swarn and subseribed to before ne 2 NOTARY PUBLIC in ond for the District of Columbia this 10th day Sune, 29544 wasimamoN, D.c. Ty MeagiTa Itinerary of Dehtel Alfonse MARTINEZ Estoven: 1B January 1954 = Left Gustenala City for Mextoo City, KIM ‘flight 648, Pianned to leave for Atster= Gan KIM flight 650, tranaiting Canada, 20 January 2954 = Arrived Anstendan; loft sane day for Zurich ‘vin Swiss Air (flight musber not given). 21 Jammry «9 February 4 Th Prague 9 February 1954 Bolieved to have travolled Prague te Zurich 0 Bern, 9 February - 19 Fotruary - stated ho vould be in Born approxinatoly ‘this pertod, 29 Fobrumry 1954 = Bern to Zurich to Ansterdam via Sules Ait flight 120, 29 Februnry 1954 = Left Ansterdan via KIM flight 649/627 tor Mexico City, 21 February 1954 ~ Returned to Cuntenala Oty (Getaite not given), Itinerary of Jess Manuel FORTIN: 5 Novertbor 1953 = Toft Guatemala City for Nexto, 9 November 1953 = Left Mexioo City via KIM Eight 650 for szstorda, Route from Amsterdam = Yoscow not available, 8 January 1954 ~ Left Mexico City for Ouatenale City via TACA fight 101, —_ “Mertines travelled on Guatemala diplomatic passport; ihe had a Czech vise watch vas not attached to bis presporteCp ‘scuRGES, ca a 3 be 5. 6 % 8 % yw, 2, 2, 23, 2. 30. a 2 Be Sworn Statenent of Harold Haase, Manager, IRCA, Bua, hig. Thi. Tid. hig. Bien State Telegran 675, Guatenala, 17 May 1954, Secret, mia. MA, Ouatonala, Unmunbered, 20 May 1954, Secret Sworn Statonents of Alfher Captein and crew, MA Gustenale, Unmumbered, 20 Yay 1954, Seoret, State Telegran 675, op, ott. Tha. Suorn Statenente of Alfhes Grev, State Telegram 675, op, cht State Tolegran 989, Stockholm, 21 Yay 1954, Secret, State Tologran 1021, Stockholm, 21 May 1954, Secret, Enbassy Guatemela, Letter to Raymond G, Leddy, 1 June 1954, Secret, Toa, Tht. State Telegran 1386, Mexico City, 25 Yay 1954, Secrets ©S 38807, 21 May 1954, Scoret, State Tologran 5185, London, 18 May 1954, Secret, State Telegram 1000, Stockholn, 2 May 1954, Socrots State Telogran 5185, op. oft. State Tolegran 5204, London, 19 Yay 1954, Sacrety State Telegram 1047, Stockholm, 8 June 1954, Secrot, State Telogran 978, Stockholm, 19 May 1954, Secret, hig. State Telegram 987, Stockholm, 21 May 1954, Secret, Stato Telegram 980, Stockholn, 26 Yay 1954, Secret. © 38807, 22 May 1954, Secret, fao @ sop 3k, Svorn Statenent of Alfhen Captain, 35. Toba 36, Svorn Statenonte of Athen Crev, 27 Sworn Statenent of Harold Haase, Manager, TRCA, 38, ARA79-54, Guntemia, 27 May 1954, Secret, 39. State Tolegran 891, Gustonale, 5 June 1954, Confidential. 40, Original Bill of Iading, signed at Stettin, 4, Tota 42, Sworn Statenont of Harold Haase, 1B. IRA79-54y op. git 44, State Telegran 859, Guatemala, 1 June 1954, Secret 4x MBAT9~54, op, site 46, USAR, San Salvador 98, 16 May 1954, Secret. 47, Stato Ciroular Telegram 440 to London, 28 May 1954, Secret. 480 a 0 a 50.6 1 51, State despatch 990, Cuntonala, 4 June 1954, Offtotal Use Only. 52, State Telogran 1075, Stockholm, 15 June 1954y Secrets 53, TR9-54, Cuntosala, 1 Jamary 1954, Confidential, 54, State Telegram 726, Contonsla, 23 February 1954, Unclassified, 55, State BI Files, 56, Hidde 57, State despatch 259, Zurich, 19 February 195% 98, Stato despatch 859, Guntemla, 14 Apri 2954, Confidential, 59, State BI Files, 60, State Telegras 661, Geneva, 28 Yay 1954, Confidential, 61, State Telegran 635, Geneva, 2% February 1954, Confident &, State duspatch 126, Auoengon Hosturg, 28 Yay 1954, Socret, 63. Ny Ys Muga, 26 Fotounry 1954, 4p Stato Tetegran 295, Genova, 18 March 2954, Socrot, 65, State Telegran 776, Stocttols, 19 March 1954, Secret, 66, State Telegran 788, Stocthola, 24 Yarch 1954, Secret,Cad - 23 68, State Telegren 1089, Stockhota, 17 Jane 1954p Secret, ®o earl 70, Ibid. ‘TL, SDD 767, Guatenala, & Varch 1954, Confidential, ‘T, Stato Telegram 597, Buenos Aires, 30 April 1954, Secrets Bs Sworn Statenontyof Alfhem Crow, State Telegram 742, Guatemala, 21 May 1954, Secret ‘Th, Series COMORIBSEAPRON 3022102, 30 May 1954, ot seas 75, State Telegram 45600, Paris, 27 May 1954, Secrets 7%. State Telegram ‘19, Geneva, 10 June 1954, Restricted, m™ mia, F ; (uiae ay 79, State Toagr 2646 to Many 26 Pbnnsy H95y Sexes 20, Stat fondern 52, den, 2 Tatar B95y Sez, G1, Stato Telegram 737, Guatemnia, 31 May 1954, Confidential, 2, State Telegram 1085, Bern, 9 June 1954, Secret, 83, State Telegram 1046, Bern 24 May 1954, Secrets 2, R$9-54y Guatemala, 26 March 1954, Confidential, 85, State Telegran 3661, Paris, 26 May 1954, Secret, State Telegran 4861, Paris, 15 Juno 195, Secret, 86, State Telegran £467, Faria, 20 May 1954, Secret, 8% State Telegram 1046, Bern, 24 May 1954, Secret, 88, State Telegram 212, Harburg, 24 May 1954, Secret, 8% State despatch 429, Ancongen, Hamburg, 2 June 1954, Seerot, 92. State desmatch 1212, Brussols, 21 Yay 196%, Secret, 9B, State Tologren °25, Brussels, 28 Nay 2954, Secret, Ske Stato Telegram 2522, Rone, 24 Februsty 1954, Secret, 95. Ihde