On 2 February 1952 PROG was dissolved and its members returned to PCG. The 2nd congress of PCG, held the same year, elected Gutiérrez as a Central Committee member. The congress also decided to adopt the name
PGT, a move which was intended to facilitate legalization of the party. A 1945 legislation banned "international organizations" from working in Guatemala, a legislation used to maintain the illegality of any communist organization. By changing the name to PGT the party wanted to state that it was an independent and national party. At the same time, communists came to use the similar names abroad. One prominent example is the
Swiss Party of Labour. However, Although communism had not been officially legalized until the inauguration of reformist president
Jacobo Arbenz, the party had participated in political activities more or less openly; some avowed communists were employed in high-level positions in the civil service and educational bureaucracy. The PGT program tended to emphasize participation in the
trade unions and direct action rather than electoral politics, though at one point there were four PGT members in the 58-seat parliament in the period of 1953-1954. The four PGT MPs were José Alberto Cardoza, Victor Manuel Gutiérrez, Carlos Manuel Pellecer and Antonio Ardón. The PGT was generally supportive of the reform efforts launched by
Juan José Arévalo and Arbenz after the overthrow of right-wing military dictator Gen.
Jorge Ubico in 1944. Because of this, the governments and press in Western countries (especially the United States) attempted to gather support for an economic or military intervention to halt the 'Communist threat'. A
CIA intelligence estimate in 1952 reported that the PGT had a membership of about five hundred and an undetermined number of sympathizers. Later estimates raised the membership total to 3,000, including a group of five hundred described as 'hard-core'. The PGT publication
Octubre had a circulation of about 3,000 in 1952. American intelligence briefings and post reports conceded that the PGT did not have sufficient popular backing or resources to foment a
coup or revolution. On 2 August 1953
Octubre was substituted by
Tribuna Popular as the party organ. The
land reform initiatives implemented by the Arbenz government attracted more foreign attention to Guatemala's political scene. About 100,000 landless peasants were to benefit from the expropriation of unused arable land from landed interests (such as the U.S.-based
United Fruit Company). The plan was never fully executed, as the Arbenz government fell in a U.S.-sponsored ''
coup d'état'' on 29 June 1954; the government offered no significant resistance. The first decree issued by the new military régime banned the PGT. Following the ban a section of the party, including Fortuny, went into exile in
Mexico where they continued to operate politically. Inside Guatemala, PGT was largely marginalized. == Third Congress ==