Friday, August 8, 2014

Child Refugees - The Honduras Story

The Bitter Fruits of American Neo-Colonialism

Over the past two years, the border between the US and Mexico has been flooded with thousands of unaccompanied children from Central America trying to enter the United States illegally1. There is compelling evidence that most of them are are being driven by a fears of gang violence in their home countries - primarily Honduras, Guatemala, and El Salvador - fears powerful enough to make them and their parents willing to accept the risks of a perilous journey to the US.  Because of its past actions to suppress the development of democratic institutions in each of these countries, the US bears a direct responsibility for the breakdown in the rule of law in each country that has generated the current flood of desperate children seeking entrance to the US.

Anti-immigrant zealots who complain so bitterly about the terrible burden these child refugees impose on the US fail to understand that they are just one more example of “chickens coming home to roost”, which is to say that they are the long-term consequence of US interventions that go back to the late 19th century in the case of Honduras and Guatemala and to the 1980s in the case of El Salvador. The first two countries were classic “banana Republics” where the US intervened directly to suppress the development of political and social reforms and supported oppressive military dictatorships in order to protect the interests of US corporations. In El Salvador, a tiny country with little in the way of exploitable resources, American interventions were the product of US concerns in the 1980's that communism was gaining a foothold in Latin America and must be met with a vigorous response.

The Honduran version of this story begins with Sam "the Banana Man" Zemurray, a colorful character who was born in Moldova in 1877 and emigrated to America in 1896 ending up at the age of 19 on the docks of Mobile, Alabama. After observing stevedores dumping over-ripe bananas into the sea, he came up with the idea of taking those bananas, moving them quickly to inland towns nearby and selling them at bargain prices before they spoiled. By age 21, he had already banked $100,000.

In 1910, he borrowed half a million dollars, bought a steamship and sailed to Honduras where he purchased 5,000 acres of land along the Cuyamel River2. He continued to borrow money and accumulate land but soon found himself over-extended and heavily in debt. Unfortunately for Sam, his personal debt crisis coincided with a sovereign debt crisis on the part of the Honduran government which had borrowed heavily from American banks and was now unable to make its payments. The country found itself under intense pressure from the US government to come up with a plan to repay its debts and reluctantly agreed to impose a package of excise taxes, the proceeds of which would go directly to the American banks (J P Morgan being the largest) that held the loans. The plan spelled disaster for Sam since the excise taxes would have destroyed his banana exporting business. Even worse, the repayment plan called for the direct oversight of the tax collections by agents of the American banks, a provision that precluded any opportunity to avoid the taxes with the usual expedient of bribing local officials.

A desperate Zemurray appealed to US Secretary of State Philander C. Knox for help but, having considerably less influence than J. P. Morgan, he was rebuffed. Sam then turned to Plan B - the overthrow of the Honduran government. He enlisted the services of a pair of mercenaries, one with the colorful name of "Machine Gun" Molony and selected, as the future President of Honduras, Manuel Bonilla, a retired General who had seized control of the Honduran government in 1903, served as president until overthrown in 1907, and was now living in New Orleans. After formulating their plans in a New Orleans whore house and with more than a little assistance from the US Government, this ragtag posse of conspirators succeeded in seizing power and Bonilla returned in triumph as President of Honduras.

Bonilla quickly expressed his gratitude by awarding Zemurray 50,000 acres of prime banana growing land. He also gave Zemurray a unique permit allowing his businesses to import whatever they needed duty-free. Finally, he authorized Zemurray to raise a $500,000 loan in the name of the Honduran government, and use the money to repay himself for what he claimed to have spent organizing the revolution. Like so many revolutions, this one was financed by the citizens of the “liberated” country.

Zemurray liked to describe Honduras, which lies just across Nicaragua's northern border, as a country where "a mule costs more than a congressman." Over the ensuing decades, he bought plenty of both, and a string of pliable presidents as well. His Cuyamel Fruit Company and two others-Standard Fruit and United Fruit which he ultimately acquired - -came to own almost all the fertile land in the country. They also owned and operated its ports, electric power plants, sugar mills, and largest bank.

After Bonilla's death in 1913, [Zemurray] controlled a string of presidents. In 1925 he secured exclusive lumbering rights to a region covering one-tenth of Honduran territory. Later he merged his enterprises with United Fruit and took over as the firm's managing director. Under his leadership, United Fruit became inextricably interwoven with the fabric of Central American life. According to one study, it 'throttled competitors, dominated governments, manacled railroads, ruined planters, choked cooperatives, domineered over workers, fought organized labor and exploited consumers.'"3

In exchange for the the early concessions granted by Bonilla,, the fruit companies had promised to build a rail network that would tie the country together. They never did. The only lines they built were the ones they needed, connecting their plantations to Caribbean ports. The Life Pictorial Atlas of the World, published in 1961, devoted exactly one sentence to Honduras: "A great banana exporter, Honduras has 1,000 miles of railroad, 900 of which belong to U.S. fruit companies." Strikes, political protests, uprisings, and attempted coups racked Honduras for decades. To suppress them, the country's presidents maintained a strong army that absorbed more than half of the national budget. When the army could not do the job, it called in the United States Marines.”4

Fast forward to 1958. A reformer, Ramon Villeda, is elected President of Honduras, tries to pass a land reform law, but is forced to withdraw under intense pressure from United Fruit. In the 1963 Presidential election, the Liberal candidate seeking to succeed Villeda vows to revive the law and to curb the power of the army - admirable, if not very prudent campaign promises. Ten days before the election, the army stages a coup, installs General Oswaldo Lope Arellano as President, dissolves Congress, and suspends the constitution.

Honduras remained under military/United Fruit Company rule for the next 18 years. In 1981 the ruling general, Gustavo Alvarez, was more than happy to accommodate Ronald Reagan by allowing the US to use Honduras as a base for the anti-Sandinista rebels (Contras) who were working to overthrow Daniel Noriega in Nicaragua. . From 1980 to 1984, annual United States military aid to Honduras increased from $4 million to $77 million and consolidated the military's grip on power. Alvarez's successors established a secret squad called Battalion 3-16, trained and supported by the CIA, that maintained clandestine torture chambers and carried out kidnappings and killings. The most powerful figure in the country during this period was the American ambassador, John Negroponte, who studiously ignored all pleas that the US intervene to curb the regime's excesses.

While the contra war raged, progress toward democracy in Honduras was impossible and citizens faced a frightening form of government sponsored terror. The war had another effect, which did not become clear until years later. Thousands of poor Honduran families, submerged in grinding poverty and fearful of the military, fled the country during the 1980s. Many ended up in Los Angeles. There, large numbers of Honduran teenagers joined violent street gangs. In the 1990s many of these youths were deported back to Honduras, where they faced the same lack of opportunity that had forced their parents to flee. Soon they established in their homeland a replica of the bloody gang culture absorbed in Los Angeles.”5
And so, thanks in no small part to the United States and the United Fruit Company, we again have the sad spectacle of thousands of children fleeing violence6 in their homeland and seeking refuge in the United States. Honduras has the dubious distinction of having the highest homicide rate in the world6 and the US is dealing with a flood of children who are literally fleeing for their lives.
2Wikipedia http://en.wikipedia.org/wiki/Sam_Zemurray
3Ibid. p. 77
4Stephen Kinzer, “Overthrow”, Times Books, New York, 2006. p. 100
5Ibid. p. 102
6UN Office on Drugs and Crime

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