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relationship between church and state had been ratified by the Concordat of 1852, which was the law until Cerna was deposed in 1871.[69] Even liberal generals like Serapio Cruz [es] realized that Rafael Carrera's political and military presence made him practically invincible. Thus the generals fought under his command,[54] and waited—for a long time—until Carrera's death before beginning their revolt against the tamer Cerna.[70] During Cerna's presidency, liberal party members were prosecuted and sent into exile; among them, those who started the Liberal Revolution of 1871.[54] In 1871, the merchants guild, Consulado de Comercio, lost their exclusive court privilege. They had major effects on the economics of the time, and therefore land management. From 1839 to 1871, the Consulado held a consistent monopolistic position in the regime.[71] Liberal governments (1871–1898) Further information: Justo Rufino Barrios Guatemala's "Liberal Revolution" came in 1871 under the leadership of Justo Rufino Barrios, who worked to modernize the country, improve trade, and introduce new crops and manufacturing. During this era coffee became an important crop for Guatemala.[72] Barrios had ambitions of reuniting Central America and took the country to war in an unsuccessful attempt to attain it, losing his life on the battlefield in 1885 against forces in El Salvador.
Manuel Barillas was president from 16 March 1886 to 15 March 1892. Manuel Barillas was unique among liberal presidents of Guatemala between 1871 and 1944: he handed over power to his successor peacefully. When election time approached, he sent for the three Liberal candidates to ask them what their government plan would be.[73] Happy with what he heard from general Reyna Barrios,[73] Barillas made sure that a huge column of Quetzaltenango and Totonicapán indigenous people came down from the mountains to vote for him. Reyna was elected president. [74] José María Reina Barrios was President between 1892 and 1898. During Barrios's first term in office, the power of the landowners over the rural peasantry increased. He oversaw the rebuilding of parts of Guatemala City on a grander scale, with wide, Parisian-style avenues. He oversaw Guatemala hosting the first "Exposición Centroamericana" ("Central American Fair") in 1897. During his second term, Barrios printed bonds to fund his ambitious plans, fueling monetary inflation and the rise of popular opposition to his regime. His administration also worked on improving the roads, installing national and international telegraphs and introducing electricity to Guatemala City. Completing a transoceanic railway was a main objective of his government, with a goal to attract international investors at a time when the Panama Canal was not built yet

After the assassination of general José María Reina Barrios on 8 February 1898, the Guatemalan cabinet called an emergency meeting to appoint a new successor, but declined to invite Estrada Cabrera to the meeting, even though he was the designated successor to the Presidency. There are two different descriptions of how Cabrera was able to become president. The first states that Cabrera entered the cabinet meeting "with pistol drawn" to assert his entitlement to the presidency,[75] while the second states that he showed up unarmed to the meeting and demanded the presidency by virtue of being the designated successor.[76] The first civilian Guatemalan head of state in over 50 years, Estrada Cabrera overcame resistance to his regime by August 1898 and called for elections in September, which he won handily.[77] In 1898 the Legislature convened for the election of President Estrada Cabrera, who triumphed thanks to the large number of soldiers and policemen who went to vote in civilian clothes and to the large number of illiterate family that they brought with them to the polls.[78] One of Estrada Cabrera's most famous and most bitter legacies was allowing the entry of the United Fruit Company (UFCO) into the Guatemalan economic and political arena. As a member of the Liberal Party, he sought to encourage development of the nation's infrastructure of highways, railroads, and sea ports for the sake of expanding the export economy. By the time Estrada Cabrera assumed the presidency there had been repeated efforts to construct a railroad from the major port of Puerto Barrios to the capital, Guatemala City. Due to lack of funding exacerbated by the collapse of the internal coffee trade, the railway fell 100 kilometres (60 mi) short of its goal. Estrada Cabrera decided, without consulting the legislature or judiciary, that striking a deal with the UFCO was the only way to finish the railway.[79] Cabrera signed a contract with UFCO's Minor Cooper Keith in 1904 that gave the company tax exemptions, land grants, and control of all railroads on the Atlantic side.[80] Estrada Cabrera often employed brutal methods to assert his authority. Right at the beginning of his first presidential period he started prosecuting his political rivals and soon established a well-organized web of spies. One American ambassador returned to the United States after he learned the dictator had given orders to poison him. Former President Manuel Barillas was stabbed to death in Mexico City. Estrada Cabrera responded violently to workers' strikes against UFCO. In one incident, when UFCO went directly to Estrada Cabrera to resolve a strike (after the armed forces refused to respond), the president ordered an armed unit to enter a workers' compound. The forces "arrived in the night, firing indiscriminately into the workers' sleeping quarters, wounding and killing an unspecified number."[81] In 1906 Estrada faced serious revolts against his rule; the rebels were supported by the governments of some of the other Central American nations, but Estrada succeeded in putting them down. Elections were held by the people against the will of Estrada Cabrera and thus he had the president-elect murdered in retaliation. In 1907 Estrada narrowly survived an assassination attempt when a bomb exploded near his carriage.[82] It has been suggested that the extreme despotic characteristics of Estrada did not emerge until after an attempt on his life in 1907.[83] Guatemala City was badly damaged in the 1917 Guatemala earthquake. Estrada Cabrera continued in power until forced to resign after new revolts in 1920. By that time his power had declined drastically and he was reliant upon the loyalty of a few generals. While the United States threatened intervention if he was removed through revolution, a bipartisan coalition came together to remove him from the presidency. He was removed from office after the national assembly charged that he was mentally incompetent, and appointed Carlos Herrera in his place on 8 April 1920.[84] Jorge Ubico regime (1931–1944) Main article: Jorge Ubico The Great Depression began in 1929 and badly damaged the Guatemalan economy, causing a rise in unemployment, and leading to unrest among workers and laborers. Afraid of a popular revolt, the Guatemalan landed elite lent their support to Jorge Ubico, who had become well known for "efficiency and cruelty" as a provincial governor. Ubico won the election that followed in 1931, in which he was the only candidate.[85][86] After his election his policies quickly became authoritarian. He replaced the system of debt peonage with a brutally enforced vagrancy law, requiring all men of working age who did not own land to work a minimum of 100 days of hard labor.[87] His government used unpaid Indian labor to build roads and railways. Ubico also froze wages at very low levels, and passed a law allowing land-owners complete immunity from prosecution for any action they took to defend their property,[87] an action described by historians as legalizing murder.[88] He greatly strengthened the police force, turning it into one of the most efficient and ruthless in Latin America.[89] He gave them greater authority to shoot and imprison people suspected of breaking the labor laws. These laws created tremendous resentment against him among agricultural laborers.[90] The government became highly militarized; under his rule, every provincial governor was a general in the army.[91] Ubico continued his predecessor's policy of making massive concessions to the United Fruit Company, often at a cost to Guatemala. He granted the company 200,000 hectares (490,000 acres) of public land in exchange for a promise to build a port, a promise he later waived.[92] Since its entry into Guatemala, the United Fruit Company had expanded its land-holdings by displacing farmers and converting their farmland to banana plantations. This process accelerated under Ubico's presidency, with the government doing nothing to stop it.[93] The company received import duty and real estate tax exemptions from the government and controlled more land than any other individual or group. It also controlled the sole railroad in the country, the sole facilities capable of producing electricity, and the port facilities at Puerto Barrios on the Atlantic coast.[94] Ubico saw the United States as an ally against the supposed communist threat of Mexico, and made efforts to gain its support. When the US declared war against Germany in 1941, Ubico acted on American instructions and arrested all people in Guatemala of German descent.[95] He also permitted the US to establish an air base in Guatemala, with the stated aim of protecting the Panama Canal.[96] However, Ubico was an admirer of European fascists, such as Francisco Franco and Benito Mussolini,[97] and considered himself to be "another Napoleon".[98] He occasionally compared himself to Adolf Hitler.[99] He dressed ostentatiously and surrounded himself with statues and paintings of Napoleon, regularly commenting on the similarities between their appearances. He militarized numerous political and social institutions—including the post office, schools, and symphony orchestras—and placed military officers in charge of many government posts.[100][101][102][103][104] Guatemalan Revolution (1944–1954) Main article: Guatemalan Revolution On 1 July 1944 Ubico was forced to resign from the presidency in response to a wave of protests and a general strike inspired by brutal labor conditions among plantation workers.[105] His chosen replacement, General Juan Federico Ponce Vaides, was forced out of office on 20 October 1944 by a coup d'état led by Major Francisco Javier Arana and Captain Jacobo Árbenz Guzmán. About 100 people were killed in the coup. The country was then led by a military junta made up of Arana, Árbenz, and Jorge Toriello Garrido.[106] Guatemala's democratically elected president Jacobo Árbenz was overthrown in a coup planned by the CIA to protect the profits of the United Fruit Company. The junta organized Guatemala's first free election, which the philosophically conservative writer and teacher Juan José Arévalo, who wanted to turn the country into a liberal capitalist society won with a majority of 86%.[107] His "Christian Socialist" policies were inspired to a large extent by the U.S. New Deal of President Franklin D. Roosevelt during the Great Depression.[108] Arévalo built new health centers, increased funding for education, and drafted a more liberal labor law,[109] while criminalizing unions in workplaces with less than 500 workers,[110] and cracking down on communists.[111] Although Arévalo was popular among nationalists, he had enemies in the church and the military, and faced at least 25 coup attempts during his presidency.[112] Arévalo was constitutionally prohibited from contesting the 1950 elections. The largely free and fair elections were won by Jacobo Árbenz Guzmán, Arévalo's defense minister.[113] Árbenz continued the moderate capitalist approach of Arévalo.[114] His most important policy was Decree 900, a sweeping agrarian reform bill passed in 1952.[115][116] Decree 900 transferred uncultivated land to landless peasants.[115] Only 1,710 of the nearly 350,000 private land-holdings were affected by the law,[117] which benefited approximately 500,000 individuals, or one-sixth of the population.[117] Coup and civil war (1954–1996) Main articles: 1954 Guatemalan coup d'état and Guatemalan Civil War See also: United States involvement in regime change Despite their popularity within the country, the reforms of the Guatemalan Revolution were disliked by the United States government, which was predisposed by the Cold War to see it as communist, and the United Fruit Company (UFCO), whose hugely profitable business had been affected by the end to brutal labor practices.[111][118] The attitude of the U.S. government was also influenced by a propaganda campaign carried out by the UFCO.[119] U.S. President Harry Truman authorized Operation PBFORTUNE to topple Árbenz in 1952, with the support of Nicaraguan dictator Anastasio Somoza García,[120] but the operation was aborted when too many details became public.[120][121] Dwight D. Eisenhower was elected U.S. President in 1952, promising to take a harder line against communism; the close links that his staff members John Foster Dulles and Allen Dulles had to the UFCO also predisposed him to act against Árbenz.[122] Eisenhower authorized the CIA to carry out Operation PBSUCCESS in August 1953. The CIA armed, funded, and trained a force of 480 men led by Carlos Castillo Armas.[123][124] The force invaded Guatemala on 18 June 1954, backed by a heavy campaign of psychological warfare, including bombings of Guatemala City and an anti-Árbenz radio station claiming to be genuine news.[123] The invasion force fared poorly militarily, but the psychological warfare and the possibility of a U.S. invasion intimidated the Guatemalan army, which refused to fight. Árbenz resigned on 27 June.[125][126] Following negotiations in San Salvador, Carlos Castillo Armas became President on 7 July 1954.[125] Elections were held in early October, from which all political parties were barred from participating. Castillo Armas was the only candidate and won the election with 99% of the vote.[125] Castillo Armas reversed Decree 900 and ruled until 26 July 1957, when he was assassinated by Romeo Vásquez

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