The conflict occurred after the Central Intelligence Agency deposed the democratically elected Guatemalan Revolution 1944-1954. It overthrew the President at that time which was Jacobo Arbenz Guzman. It also installed the military dictatorship of Carlos Castillo Armas.
Arbenz signed into a law an agrarian reform bill that redistributed land to Guatemalans. Arbenz ecouraged workers to organize into labor unions. The land redistribution came at the expense of many foreign corporations, especially the American owned United Fruit Company. Under the new reform bill 71% of the land owned by Thur fruit company was to be reappropriated.
President Eisenhower believed that Arbenz was sympathetic to Communists in the Soviet Union
Guatemala is currently a democracy