 The US @-@ based United Fruit Company ( UFC ) was one of many foreign companies that acquired large tracts of both state land and indigenous land . Manuel Estrada Cabrera , who was president of Guatemala from 1898 to 1920 , permitted limited unionization in rural Guatemala , but also made further concessions to the UFC . In 1922 , the Communist Party of Guatemala was created , and became a significant influence among urban laborers ; however , it had little reach among the rural and Indian populations . In 1929 , the Great Depression led to the collapse of the economy and a rise in unemployment , leading to unrest among workers and laborers . Fearing the possibility of a revolution , the landed elite lent their support to Jorge Ubico y Castañeda , who had built a reputation for ruthlessness and efficiency as a provincial governor . Ubico won the election that followed in 1931 , in which he was the only candidate . 
