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years…the right to control water that encroached on railway lands…the sole and exclusive<br />

government on the railway and [to never] be subject to the intervention of the government”<br />

(Handy, 1984, 80). Approximately twenty years later the United Fruit Company was the largest<br />

employer, exporter, and the largest landowner in Guatemala. 13 United Fruit Company’s<br />

monopoly on bananas, monopoly on transportation and position as the largest employer meant<br />

that it could set prices for wages, conditions and working hours on the job, transportation and<br />

agricultural goods within Guatemala; the company begins to act as a “state within a state”<br />

(Vanden, 2002, 256; Schlesinger and Kinzer, 1982, 70-71). However it was a joint effort<br />

between the Guatemalan government and Untied Fruit Company that kept wages low and<br />

workers forcibly pacified. 14<br />

Thousands of Mayan laborers lived out their lives on the large<br />

banana plantations in Guatemala. Housing and food, of extremely poor quality, was provided at a<br />

marked up cost to the laborers by the plantation owners, many laborers did not earn enough<br />

money to pay for the supplies they were charged for and lived their lives in debt peonage. The<br />

United States consumed eighty percent of Guatemalan exports and provides seventy percent of<br />

the imports to Guatemala in the 1920s (REMHI, 1999, 182). For most Guatemalans there was no<br />

need to discern between United Fruit Company and the United States government, the two<br />

entities were perceived as one in the same (Schlesinger and Kinzer, 1982, 73).<br />

The 1920s and 1930s continued to be turbulent times for Guatemala. As the number of<br />

Guatemalan workers participating in unions and worker associations increased there was a<br />

13 Handy, 94. The relationship between Guatemala and the U.S. was further strengthened-by the 1940s the<br />

United States was purchasing “90% of Guatemalan produce.”<br />

14 An example of Guatemalan government interference on behalf of United Fruit Company is the rewritten<br />

1878 Anti-Vagrancy Law, the 1934 Anti-Vagrancy Law “stipulated that peasants work at least 150 days<br />

per year on the plantations, with the number of days they worked to be written down in the passbook they<br />

were required to carry. If a peasant was found without his passbook or if it was determined that he had not<br />

worked the required number of days, he faced jail, public whipping, or road labor” (Ropp et al, 131-2). The<br />

Anti-Vagrancy Law specifically targeted “Indians who owned no land or less than a prescribed amount”<br />

this ensured that the Anti-Vagrancy Law targeted Indians not landowners (Gleijeses, 1991, 13).<br />

68

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