In Guatemala, the CIA’s motives followed a similar pattern. President Jacobo Arbenz was popularly elected in 1950. He was known to have established an effective alliance with Communists. What is generally thought to be the reason for US intervention was that the Arbenz government damaged US business interests by the expropriation and redistribution of much of the United Fruit Company’s land in the Agrarian Reform Act of 1952 (Faragher). Guatemala initially planned to compensate UFC with $594,572 in government bonds, but the company valued the land at $15,854,849 ("GUATEMALA: Square Deal Wanted"). The US billed Guatemala for UFC, yet Guatemala denied, claiming violation of its sovereignty. However, this was not the prominent reason for CIA intervention. A plan for Operation PBFortune under the Truman administration had been drafted in 1951, before the UFC expropriation.