Once in power, Orellana Contreras reformed the Cabinet and worked on restructuring the Guatemalan military bases. However, given the large investments that American companies had in Guatemala -especially the United Fruit Company, the United States Secretary of State Henry Stimson publicly denounced Orellana as an unconstitutional leader and demanded his removal. Realizing that the Americans would not recognize his government, Orellana resigned on 29 December. Stimson sent Ambassador Sheltom Whitehouse to tell Orellana Contreras that his country would not be dealing with the new Guatemalan president whatsoever. Whitehouse pressed the National Assembly to force Orellana Contreras to resign, taking advantage of Orellana's lack of political experience, and the American government needed a stable regime in Guatemala.
