 Knowing that he could not fight on without the support of the army , Jacobo Árbenz resigned on 27 June 1954 , handing over power to Colonel Carlos Enrique Diaz . US ambassador John Peurifoy then mediated negotiations held in El Salvador between the army leadership and Castillo Armas which led to Armas being included in the ruling military junta on 7 July 1954 , and was named provisional president a few days later . The US recognized the new government on 13 July . Elections were held in early October , from which all political parties were barred from participating , and Castillo Armas was the only candidate , winning the election with 99 % of the vote . Among the outcomes of the meeting in El Salvador was a planned new constitution , which would rollback most of the progressive reform brought by the revolution . 
