IB History of the Americas SL 7.3

Key Notes: Eisenhower’s Foreign Policy and the Cold War

1. Eisenhower’s Focus Shift (Post-Korean War):

• Expected foreign policy focus on the Korean War, but it ended abruptly in June 1953.

• Focus shifted to containment of communism, particularly in Latin America.

2. Guatemala and the Arbenz Administration:

• The Arbenz administration in Guatemala was seen as a socialist and pro-Soviet threat.

• The U.S., using the CIA, intervened to undermine regimes perceived as communist or socialist, especially in Central American “banana republics.”

3. Role of the United Fruit Company (UFCO):

• The UFCO had significant political and economic influence in Central America, shaping U.S. interventions.

• The USSR criticized U.S. actions in the region as driven by capitalist interests, not containment.

4. U.S. Influence in South America:

• U.S. dominance replaced British influence post-WWII, welcomed by elites but questioned by the emerging middle class.

• U.S. increasingly supported anti-communist military regimes, despite previously opposing dictatorships.

5. Eisenhower’s New Look Policy:

• Eisenhower and Secretary of State John Foster Dulles extended Truman’s containment policy but were more aggressive.

• Economic Focus: Faced with a downturn, Eisenhower aimed to reduce U.S. expenditures and embraced a laissez-faire approach.

• Halted initiatives like the Intra-American Development Bank and left Latin American commodity producers (cacao, coffee) vulnerable.

6. Military Realignment (NSC-162/2):

• The New Look policy prioritized a smaller army/navy and focused on nuclear weapons and air force expansion.

• Brinkmanship strategy: Dulles promoted the idea of using the threat of nuclear retaliation to force communist powers to back down.

• U.S. nuclear arsenal grew dramatically from 1,200 to 22,229 weapons under Eisenhower.

7. Mutual Assured Destruction (MAD):

• Both the U.S. and the USSR built up nuclear arsenals, leading to the concept of MAD: if one side attacked, the other would retaliate, ensuring mutual destruction.

• Led to U.S.-Soviet summits in 1955 and 1959 to address nuclear threats.

8. Economic Policies in Latin America:

• The U.S. advised Latin American countries not to discourage private investment.

• U.S. economic policy under Eisenhower was less focused on direct assistance, emphasizing private investment and military stability over social welfare.

Key Notes: Eisenhower Era - Covert Operations and U.S. Policy in Latin America

1. CIA and Covert Operations:

• CIA created in 1947 from the Office of Strategic Services (OSS) as a data-gathering organization.

• By Eisenhower’s era, the CIA, led by Allan Dulles, was involved in subversive tactics, paramilitary actions, and intelligence acquisition.

• Activities included:

• Paying foreign leaders, funding anti-communist groups, using U.S. academics/journalists to gather intel.

• Supporting U.S. cultural influence through Radio Free Europe, Radio Liberty, and Voice of America.

• Training foreign military officers in counter-revolutionary methods.

• Overthrowing regimes hostile to the U.S., e.g., Iran and Guatemala.

2. Plausible Deniability:

• Presidents were kept at arm’s length from CIA decisions, allowing them to deny involvement in covert actions.

• Used by Eisenhower in places like Iran and Guatemala to distance the administration from controversial operations.

3. New Look Policy in the Americas:

• U.S. emphasized continental defense, leading to the creation of NORAD (North American Aerospace Defense Command) in 1958, a U.S.-Canada joint defense organization.

• Dulles viewed Latin America as the largest threat, drawing comparisons to China in the 1930s.

• Domino Theory: Feared if one Latin American country fell to communism, others would follow.

4. U.S. Interests in Latin America:

• U.S. economic and security interests shaped its interventions.

• Although communism was weak, the U.S. feared socialist economic policies like Import Substitution Industrialization (ISI), which threatened U.S. economic dominance.

• UFCO’s Role: U.S. companies like United Fruit Company (UFCO) had significant influence, monopolizing industries and shaping U.S. interventions.

5. Training and Arming Latin American Military:

• U.S. supported Latin American military forces, most notably through the School of the Americas, training officers in leadership, infantry, and counter-insurgency.

• This policy aimed to bolster anti-communist regimes and ensure U.S. dominance in the region.

6. Guatemala and Covert Operations:

• Guatemala: Under Jorge Ubico, Guatemala had supported UFCO’s monopoly, which controlled banana production and other industries.

• After Ubico’s ousting, the U.S. used covert CIA operations to overthrow the left-leaning Arbenz government in 1954, fearing its socialist policies and communist ties.

7. Economic Threat of ISI:

• Many Latin American countries embraced ISI (Import Substitution Industrialization) to develop local industries and reduce dependence on imports.

• The U.S. saw ISI as a threat to its free-market interests, which had dominated the region since WWII.

Guatemala under Ubico and Arbenz

• Ubico’s regime: Brutal dictatorship, supporting pro-US policies and United Fruit Company (UFCO) monopoly.

• Juan José Arévalo (1945): Democratically elected president, land and labor reforms, new constitution.

• Jacobo Arbenz Guzmán (1951): Center-leftist president focused on social and economic reforms, free and fair elections.

• Objectives: Economic independence, modern capitalist state, better living standards.

• Agrarian Reform Bill (Decree 900, 1952): Expropriated uncultivated lands from large plantations, including UFCO land (85% unused).

• Arbenz offered UFCO compensation based on tax value ($627,572), but the US State Department demanded $15,854,849.

US Intervention in Guatemala

• UFCO’s underreported land value: Deliberately undervalued to avoid taxes, leading to conflict over compensation.

• US Charges: Arbenz accused of communism, despite limited communist influence in his government.

• Domino theory: Fear that Guatemala’s fall to communism could destabilize Central America and US interests (Panama Canal).

• US Actions: Embargoes, covert operations, OAS appeal for intervention.

• Arbenz sought military equipment from Eastern Europe (Poland), giving the US a pretext for intervention.

• CIA and Colonel Castillo Armas: US-backed invasion of Guatemala (1954), Arbenz forced to resign, Castillo took power.

Aftermath in Guatemala

• Castillo’s rule: Reversed land reforms (Decree 900), return to dictatorship, dominated by local and foreign elites.

• US perception: Dulles brothers argued that the communist threat in Latin America had been diminished.

Nixon’s 1958 South America Visit

• Anti-American sentiment: Encountered protests and debates, especially from students and intellectuals.

• Violent encounters in Lima and Caracas.

• US Response: Nixon reported the need for policy changes in Latin America, leading to increased focus on economic aid.

• Eisenhower’s new policy: Commitment to economic aid ($500 million), but hindered by US economic downturn and fears aid would support dictators.

Cuban Revolution (1959)

• Fidel Castro’s rise: Overthrew Batista, promised free elections, and social reforms.

• Shift toward socialism, hesitant at first to nationalize or align with the Soviet Union.

• US Reaction: Eisenhower refused to meet Castro; instead, authorized CIA to train Cuban exiles to overthrow Castro’s regime.

• Plan faltered after Nixon lost the 1960 election to JFK.