Event

The U.S. antitrust action against United Fruit

A U.S. antitrust action against United Fruit: prepared by Justice in 1951 and suspended, discussed by the National Security Council on 17 June 1954, and ended by a consent decree in 1958.

7 links, 7 backed by primary records

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Dates
1951–1958

Connections 7

interventions

  • Allen Dulles 17 Jun 1954 advised delaying the suit by a month Primary record 1
  • John Foster Dulles 17 Jun 1954 told the National Security Council on 17 June 1954 that the suit might show Central Americans U.S. policy was not meant to protect the fruit company, but feared it might interfere “with certain activities of the Central Intelligence Agency” Primary record 1

involved

  • U.S. Department of Justice was preparing court action in May 1951 when the State Department objected that it would have “serious foreign policy implications”; the action was suspended Primary record 2
  • United Fruit Company defendant in a U.S. antitrust action; in 1954 it refused a settlement Primary record 1
  • U.S. Department of Justice proposed a settlement in 1954 Primary record 1
  • Dwight D. Eisenhower saw no reason not to proceed with the suit Primary record 1
  • United Fruit Company the CIA history says the administration proceeded with its suspended action once the company’s usefulness to PBSUCCESS was at an end; “The United Fruit Company did not profit from victory” Primary record 2
Timeline 3 dates
  1. 1951–1958 The U.S. antitrust action against United Fruit
  2. 17 Jun 1954 Allen Dulles intervened in The U.S. antitrust action against United Fruit
  3. 17 Jun 1954 John Foster Dulles intervened in The U.S. antitrust action against United Fruit
Proof 2 sources
  1. Editorial Note on the National Security Council meeting of 17 June 1954 (FRUS Guatemala 1952–1954, doc. 196), U.S. Department of State, Office of the Historian. Primary record
    given a little more time, the Central American states would do Justice’s job for it.
    Many of the Central American countries were convinced that the sole objective of United States foreign policy was to protect the fruit company.
    with certain activities of the Central Intelligence Agency.
    The Justice Department proposed a settlement but United Fruit continued to insist that the company had done nothing wrong
    The Justice Department proposed a settlement
    Both Secretary Dulles and President Eisenhower saw no reason not to proceed.
  2. Operation PBSUCCESS: The United States and Guatemala, 1952–1954 (CIA History Staff, Nicholas Cullather; released 1997), Central Intelligence Agency, 1994. Primary record Archived copy
    In May 1951, they were preparing for court action to force United Fruit to divest itself of railroads and utilities in Guatemala when the State Department intervened.
    The action was suspended until the situation in Guatemala had improved.
    Once United Fruit's usefulness to PBSUCCESS was at an end, the Eisenhower administration proceeded with its suspended antitrust action
    The United Fruit Company did not profit from victory. Castillo Armas restored many of the company's privileges, but they were worth less than before.
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