ID:241671
    Date:2009-12-24 18:16:00
    Origin:09GUATEMALA1035

VZCZCXYZ0000
RR RUEHWEB
DE RUEHGT #1035/01 3581816
ZNY CCCCC ZZH
R 241816Z DEC 09
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC 0650
INFO WHA CENTRAL AMERICAN COLLECTIVE
RHEHNSC/WHITE HOUSE NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 0062
RUEAIIA/CIA WASHINGTON DC
    
C O N F I D E N T I A L GUATEMALA 001035 
 
SIPDIS 
 
E.O. 12958: DECL: 2019/12/24 
TAGS: PREL, ECON, SNAR, PGOV, PHUM, UN, HO, GT 
SUBJECT: WHA DAS Reynoso's Visit Reaffirms Partnership with Guatemala 
 
REF: A) 09 GUATEMALA 254; B) 09 GUATEMALA 1284; C) 09 GUATEMALA 917 
D) 09 GUATEMALA 1023 
 
CLASSIFIED BY: Stephen G. McFarland, Ambassador, STATE, POL/ECON; 
REASON: 1.4(B), (D) 
 
1. (C) Summary: During her December 13-16 visit to Guatemala,
WHA DAS Julissa Reynoso met with President Colom, First Lady
Sandra Torres de Colom, senior members of government, CICIG
Commissioner Castresana, and representatives of civil society,
the press, and the business community. Colom focused on the
situation in Honduras and Guatemala's pending tax legislation
while the First Lady noted the positive impact of the many
social programs which fall under the Social Cohesion Council,
which she leads. Colom also expressed interest in making an
official visit to Washington to meet President Obama and the
Secretary. CICIG Commissioner Castresana detailed the
continuing challenges his commission faces in prosecuting
cases in Guatemala and sought support for a U.S.-based CICIG
office in Houston. DAS Reynoso also visited various
USG-supported projects which are decreasing rates of
malnutrition, supporting microenterprise, and making the
judicial system more efficient. She also met with Otto Perez
Molina, the principal opposition leader, who explained his
party's platform for the upcoming 2011 elections. DAS
Reynoso's visit received wide and positive press coverage
indicating interest on the part of Guatemalans in seeing
high-level USG engagement. End Summary.
 
Meeting with President Colom Focuses on Honduras, Tax Reform
 
2. (C) President Alvaro Colom, accompanied by Foreign Minister
Haroldo Rodas, opened his meeting with DAS Reynoso by
discussing justice reform in Guatemala. Colom acknowledged
that the UN-led International Commission Against Impunity in
Guatemala (CICIG) has provided crucial support to the justice
sector, particularly to the Attorney General's office (Public
Ministry) and the courts. Colom also touched on his
administration's pending tax legislation proposals, and noted
that there was still a chance of passing them this year
despite the traditional resistance Guatemalans have to taxes.
(Note: The proposed law would increase taxes on businesses and
impose a much-derided cell phone tax. Recent press reports
following the visit indicate this issue will be tabled until
2010. End Note.) Turning to the issue of food security, Colom
lauded the First Lady's Social Cohesion Council programs,
which he claimed have improved human development indicators in
all areas where the programs are active except for maternal
deaths (Ref A). Colom then expressed interest in making an
official visit to Washington in the first half of 2010, and
underscored his desire to meet with President Obama and
Secretary Clinton.
 
3. (C) Shifting the focus to Honduras, Colom agreed with DAS
Reynoso that newly-elected President Porfirio "Pepe" Lobo
seems like a well-intentioned interlocutor and someone who can
restore peace to the country. Foreign Minister Rodas
interjected, stating that once Lobo begins his mandate,
Guatemala will have to wait and see what happens. Rodas
asserted that Guatemala could not accept that a coup, followed
by elections, would somehow justify the illegal overthrow of
the government. Rodas also noted that the USG's continued role
in Honduras is critical to ensure a smooth recovery. According
to Rodas, the economic and social impact of the crisis will
only begin to be felt once a more stable government is in
place.
 
4. (C) DAS Reynoso asked Colom for Guatemala's support on the
upcoming UN vote on the "Situation of Human Rights in the
Islamic Republic of Iran". Rodas responded that Guatemala was
awaiting the results of a UN commission deliberating the issue
and hinted that Guatemala would follow this commission's
recommendation. (Note: Guatemala previously abstained from
voting on this issue. End Note.) Rodas also indicated that
Guatemala is not interested in establishing a closer
relationship with Iran as other Bolivarian Alternative for the
Americas (ALBA) countries have done.
 
5. (C) In an otherwise positive meeting, Rodas criticized the
USG for its reporting cycle which publicizes country
indicators from the prior year. While Rodas was likely
alluding to Guatemala's less-than-stellar MCC report card,
Rodas generalized and stated that he did not feel Guatemala is
treated as well as other countries in the region despite its
importance in Central America (Ref B). HehEhHeHe argued that
Guatemala's indicators have improved in the last year. Colom,
however, ended the meeting on a positive note claiming that
2010 would be a better year for Guatemala and that with
Honduras resolved, the country could proceed to aggressively
tackle other issues, including focusing on empowering
indigenous women.
 
First Lady Emphasizes Development and Women's Issues
 
6. (C) DAS Reynoso's conversation with First Lady Sandra
Torres de Colom centered on development and women's issues.
The First Lady acknowledged the support Guatemala has received
through USAID programs. In addition, she detailed the many
successes of the social programs which fall under the Social
Cohesion Council, which she spearheads. Despite implementation
obstacles, including the difficulty of working with a
population that speaks 23 different indigenous languages, a
traditionally male-dominated society, and a natural suspicion
of social programs, a number of her initiatives have been
highly successful. She noted that the "My Family Progresses"
program has assisted 500,000 families by providing monthly
cash stipends to poor mothers on the condition that they keep
their children in school and vaccinated. Torres de Colom noted
that this has resulted in a 53% increase in school attendance
where the program is established. She also noted that another
component of the Council is the "Open Schools" program which
provides children in gang-infested neighborhoods a safe place
to play and learn on the weekends. Torres de Colom advocated
that these programs should be permanently institutionalized
within the government.
 
7. (C) When discussing conflicts with the private sector over
pending tax legislation, Torres de Colom argued that the
private sector needs to be more flexible and was dismissive of
its accusations of government corruption, which, she claimed
have never amounted to anything but have only detracted from
finding real solutions. The Ambassador offered to facilitate
dialogue between the private sector and the Colom
administration (including the First Lady) in the hopes that
they could come to a mutual understanding of how best to
tackle the country's problems. (Comment: Torres de Colom
appeared calm, confident and likable during the meeting. She
linked her initiatives with those of Secretary Clinton in
terms of advancing the rights of minorities and women. She was
clearly convinced that the Colom administration's
domestic-rural focus was the appropriate one. Torres de Colom
is hoping to garner rural support when she runs for president
in 2011 and these programs are an integral part of
establishing herself as an effective leader in these
communities (Ref C). End Comment.)
 
Private Sector Frustrations
 
8. (C) In a meeting hosted by the Ambassador at his residence,
a dozen representatives from private industry and the
influential Coordinating Committee for the Chambers of
Agriculture, Commerce, Industry, and Finance (CACIF), voiced
their concerns and frustrations over the current poor state of
relations with the Colom administration. They repeatedly
justified their opposition to the president's tax reform
package based on the high levels of corruption that they
believe characterize the government. All appreciated the
Ambassador's efforts to bring the two sides together but
stated that President Colom has only provided empty promises
to date. When DAS Reynoso pressed the private sector to focus
on making practical solutions, they pushed the blame onto
Colom and said that without a credible partner, they could not
accomplish anything. DAS Reynoso pressed back, urging the
private sector to take some responsibility for bridging
Guatemala's extreme wealth distribution gap. In response they
noted that the private sector pays 89% of the country's taxes
while individuals only contribute 11%. Many added that the
wealthy are not the only ones responsible for combating
poverty, and argued that the government needs to increase
competition attacking corruption, tax evasion, and smuggling.
 
9. (C) Government corruption was also a recurrent theme in a
separate meeting between DAS Reynoso and members of the
American Chamber of Commerce (AmCham). A number of members
remarked that the goal of the current administration is to
ensure the First Lady is elected president in 2011. However,
they also praised CICIG and the Embassy for their efforts in
helping to pass needed legislation and for bringing together
civil society and government organizations in an effort to
foster communication between the two. Members also brought
attention to various training programs the AmCham is
sponsoring to educate judges on intellectual property rights
and to train labor inspectors. Some board members also
highlighted their efforts to demonstrate good corporate social
responsibility. For example, Microsoft has a program in place
which teaches former gang members technical computer skills.
Citibank, the largest foreign banking institution in
Guatemala, wants to partner with USAID to allow Citibank
customers to use their credit cards to make contributions to a
food security campaign while doing their regular shopping.
When some AmCham representatives asked DAS Reynoso for the
USG's continued assistance in Guatemala in order to resolve
the country's problems, DAS Reynoso made clear that the USG
does not solve problems but works in partnership with other
countries. She reminded the AmCham guests that Guatemala, and
its citizens, need to take responsibility for making positive
change.
 
CICIG Commissioner Maps Out Next Two Years
 
10. (C) Carlos Castresana told DAS Reynoso that CICIG would
focus on strengthening the police, the prison system, the
Attorney General's Office, and the courts during his second
two-year tour as Commissioner. Castresana noted that beefing
up security programs for judges and prosecutors are two areas
that he plans to emphasize. Castresana explained that he
expects the next two years to be extremely difficult and a
time for critical decisions, including election of the new
Attorney General in May 2010 and the appointment of a new
Constitutional Court in 2011. Castresana thanked the
Ambassador for his continued political support of CICIG, and
for the USG's financial and operational support to the
organization. Castresana also sought resources for a
U.S.-based CICIG office in Houston and suggested that it would
cost around 3 million USD per year to operate although he said
a more specific proposal would be submitted soon. When asked
about cooperation with Mexican law enforcement, Castresana
stated that CICIG has utilized DEA Guatemala to communicate
with DEA Mexico and identify reliable Mexican counterparts.
Castresana lamented that the chances of compromising
operational integrity are too great in dealing directly with
Mexican authorities. Castresana opined that 60% of Guatemala
was already in the hands of Mexican drug trafficking
organizations and claimed that if Guatemala becomes a
narco-state, El Salvador and Honduras will fall immediately
thereafter.
 
USG-Supported Projects Showcase Success
 
11. (U) A Peace-Corps supported women's cooperative and a
USDA-assisted food donation program welcomed DAS Reynoso on
site visits. One Peace Corps volunteer has been working with a
small, local cooperative that makes organic shampoos,
detergents, and soaps. The volunteer, who holds a degree in
advertising and marketing communications, has been assisting
the cooperative in marketing its products with professional
labels and teaching participants how to improve business
practices through employee hour logs and inventory records. A
USDA-assisted food donation program is functioning in 15
departments around Guatemala and has assisted 175,000 people
by providing basic staple foods. The local implementer noted
that there has been a 19% decrease in malnutrition among those
children participating in the program. The assistance also
includes an educational component where mothers give lectures
to their peers on a range of health and social issues. (Note:
Residents reported that the government's social programs,
under the First Lady's Social Cohesion Council, were not
active in the community visited. End Note.)
 
12. (U) DAS Reynoso also visited a USAID-supported 24-hour
court in Guatemala City. USAID has supported the creation of
five 24-hour courts where police, prosecutors, judges, public
defenders, prison officials, forensic technicians and court
administrators are co-located in one building and able to
efficiently process offenders through the judicial system. The
24-hour courts are able to hold arraignments, order pre-trail
detention or bail, and authorize arrest and search warrants,
and have been successful in significantly reducing the
opportunities for corruption during this process. Erick
Alvarez, the newly-elected President of the Supreme Court,
described for DAS Reynoso the numerous challenges facing
Guatemala's judicial system
- lack of security for judges and witnesses, a lack of focus
on victim protection, the constant struggle prosecutors face
in bringing strong cases to judges for prosecution, and
bureaucratic hurdles which prevent the easy purchase of needed
equipment, including armored vehicles.
 
Civil Society Pessimism
 
13. (SBU) In a meeting with representatives of civil society,
DAS Reynoso heard about their frustrations with the current
administration. Influential human rights activist Helen Mack,
of the Myrna Mack Foundation, stated that Guatemala is "going
the way of Honduras" and there is increasing instability.
Others criticized the corruption and inefficiency of the
government but offered no solutions. NGO Mutual Support Group
(GAM) leader Mario Polanco thanked DAS Reynoso for Embassy
support for human rights, including the Ambassador's presence
at the trial that resulted in the first conviction of a
military officer for forced disappearance (Ref D).
 
Opposition Candidate Prepares for 2011
 
14. (C) DAS Reynoso also met with Otto Perez Molina, the
leading opposition candidate, of the Patriot Party (PP). Perez
Molina described his party's platform and his focus for the
2011 election. He said that PP also has included a version of
the "My Family Progresses" in his party's platform but wants
to add additional elements of transparency and accountability.
He stated that security and justice reform will be a central
part of his proposal although he is also working on a
social/rural development plan.
 
15. (C) When asked what the USG could do to help Guatemala,
Perez Molina responded that the U.S. and Guatemala are
"natural allies" who should enjoy even better commercial
relations. Perez Molina thought CAFTA-DR could be better
managed by the government to compel local businesses to meet
their obligations under the agreement. In turn, this would
make the government look better; however, the current
organization is weak and inefficient. He remarked that human
rights seemed to be the Obama's administration dominant
priority while for him, the commercial relationship between
the two countries was the most important issue. He also
acknowledged that Guatemala needs to do its part as a
responsible U.S. partner rather than always asking for help.
The government must provide basic services including
education, health care, potable water, and roads. In addition,
the government must invest in establishing a proper police
academy to better train police officers. PP envisions creating
a police academy with vetted cadets who will pursue a
six-month intensive training program. Perez Molina also
faulted the lack of civil service employees for inconsistency
in the execution of basic services. He noted that there is a
civil service law in the Guatemalan Congress which his party
supports.
 
16. (C) Perez Molina predicted that beginning next year,
Congressional deputies would begin to change parties in an
attempt to align themselves with the presidential candidate
they think has the greatest chance of winning. However, he
noted that this lack of attention on domestic problems will
make it even more difficult for President Colom to pursue his
agenda. Regarding tax reform, Perez Molina criticized Colom
for showing no interest in this issue earlier in the year and
said that it is not the kind of legislation that can be "put
together at the last minute." Consequently, he believed the
legislation was unlikely to pass.
 
Broad Press Coverage
 
17. (U) DAS Reynoso's visit received wide and positive press
coverage. In her public statements and private meetings, DAS
Reynoso emphasized the USG's desire to partner with countries
in the region to improve the justice and security sectors,
alleviate poverty and develop fitting food security
iQtiatives. Her visit reaffirmed for the Guatemalans that it
is considered a USG- partner nation and that USG assistance,
through USAID programs, the Merida initiative, the Department
of Defense, and other sources, will continue to help Guatemala
prosper. It was clear from the positive reaction to her visit
that Guatemala highly values its relationship with the U.S.
and would eagerly support another high-level visitor.
 
18. (U) WHA Deputy Assistant Secretary Reynoso cleared this
message prior to transmission.

MCFARLAND