Identifier
Created
Classification
Origin
03GUATEMALA188
2003-01-23 22:24:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Guatemala
Cable title:  

AMBASSADOR'S FIRST MEETING WITH G-13

Tags:  PREL EAID SNAR PGOV PHUM GT 
pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 GUATEMALA 000188 

SIPDIS

SENSITIVE

E.O. 12958:N/A
TAGS: PREL EAID SNAR PGOV PHUM GT
SUBJECT: AMBASSADOR'S FIRST MEETING WITH G-13
REPRESENTATIVES (DONOR DIALOGUE GROUP)


UNCLAS SECTION 01 OF 02 GUATEMALA 000188

SIPDIS

SENSITIVE

E.O. 12958:N/A
TAGS: PREL EAID SNAR PGOV PHUM GT
SUBJECT: AMBASSADOR'S FIRST MEETING WITH G-13
REPRESENTATIVES (DONOR DIALOGUE GROUP)



1. (SBU) Summary: The Ambassador met on January 14 with
members of the Donor Dialogue group (6 major bilateral
donors, plus 4 multilaterals, MINUGUA, USAID, and UNDP) to
discuss development cooperation and preparations for the
May consultative group meeting. Ambassadors and IFI Reps
queried the Ambassador on possible narcotics
decertification, voicing concern that it could negatively
impact on promoting the Peace Accord agenda and the
Consultative Group meeting scheduled for May, as well as
complicate multilateral loan review and approval processes.
Spain cautioned that decertification could influence
Guatemalan electoral outcomes. The Ambassador said the USG
is committed to promoting peace, human rights, anti-
corruption -- not just a narrow anti-drug agenda -- and
described how U.S.-Central American trade negotiations
would also lend support for advancing a broad agenda. He
discussed the difficulty that we would have in securing
Congressional ratification of a trade agreement if
Guatemala was not cooperating fully in counter-narcotics
efforts, and if there was not progress on human rights,
corruption and the like. There was agreement to work
together on a public relations strategy that would preserve
the unified front and strength of the group's message
before GOG and civil society. End summary.


2. (SBU) On January 14, the Ambassador, USAID Director
Anders and Deputy Director Kennedy met with Ambassadors
from the Netherlands, Spain, Canada, Germany, and Norway,
Charge d'Affairs of Sweden, and Resident Representatives of
IDB, World Bank, EU and MINUGUA. Following opening remarks
by the Ambassador on U.S. policy priorities in Guatemala
(improved cooperation in drug trafficking, trade
negotiations, Peace Accord implementation, improvements in
human rights and anti-corruption),the chair of the donor
dialogue group (Dutch Ambassador Arend Pieper) welcomed the
Ambassador's participation in the donor dialogue group,
noting how important U.S. leadership had been to organizing
the donor dialogue group, building credibility with civil
society, and facilitating a common front of donors at the
last Consultative Group. Ambassador Pieper expressed his

hope that the donor dialogue group could again reach
consensus on a group statement for the upcoming
Consultative Group.

Decertification, Peace Accords, and the Upcoming Elections
-------------- --------------


3. (SBU) Discussion quickly turned to the issue of possible
U.S. counter-narcotics decertification, with IDB
representative Barbery asking whether the public
announcement would make specific mention of involvement of
high level GOG officials in drug trafficking or
moneylaundering, or if the public statements would remain
more general. Barbery noted that the Board members have
increasingly raised the issue of corruption in loan review
and approval meetings. The Canadian Ambassador asked about
the timing of the U.S. decision and benchmarks for a
recertification decision. The Ambassador noted that any
U.S. public statement would be carefully crafted, and that
countries not certified would be reviewed periodically and
could be recertified when significant progress had been
made against quantifiable benchmarks. The Ambassador noted
that we would again review Guatemala's level of cooperation
and efforts in September, along with other countries.
MINUGUA Rep. Koenigs noted that if decertified, a
"recertification" for Guatemala in September or October
could have tremendous impact on the Guatemalan elections.
The Spanish Ambassador echoed this concern, stating that a
decision would have negative ("nefasto") consequences.
The IDB opined that both the opposition and FRG would hope
to use certification in the upcoming electoral campaign,
either as a promise of future performance ("we'll get the
country recertified") or as a vote of confidence (if the
FRG succeeds in getting Guatemala recertified). The
Ambassador noted that without a possibility of
recertification, the Portillo Administration would have
little incentive to make improvements, and that we would
make a judgment strictly on the merits of the government's
response.


4. (SBU) European countries and MINUGUA were especially
concerned that U.S. emphasis on drug trafficking would sap
what little implementation capability the Portillo
Administration had left, shifting resources and GOG
attention away from the Peace Accords and the nine point CG
agenda. The World Bank rep noted the possibility that the
EU would soon release a report critical of Guatemalan
progress against the CG agenda, possibly coinciding with a
suspension of project funding, leading Guatemalan
authorities to question the utility of a CG later this
year. (NOTE: EU rep noted that a consultant's report
summarizing progress against the nine point CG agenda would
be presented and discussed in a meeting of EU members in
early February. He noted that the EU had already discussed
suspending specific programs/activities where the GOG
lacked political will, and that they would soon make good
on the threat giving two examples, the failure of the
Government to appropriate counterpart funds for education
and justice sector programs. The EU report will not be
made available publicly, nor to other Embassies.) The
Ambassador responded to the concern about overemphasis on
drugs by detailing again the ways in which the CAFTA
process could be used to advance a broader agenda, largely
overlapping with Peace Accords goals.

Leveraging GOG Performance in an Election Year
-------------- -


5. (SBU) Spurred by MINUGUA, there was a brief discussion
of various mechanisms for leveraging GOG performance during
a difficult election year. MINUGUA noted several:
negotiation of a new IMF stand-by agreement; the CG meeting
in May; and formation of a special investigative body to
look into parallel forces. U.S.-Central American trade
negotiations (including pressure that could be brought by
other Central American countries on Guatemala to "clean up
their act") is another. The Swedish Charge noted that
their insistence on a CG this year was to keep the Peace
Accords front and center on the national agenda of this
Administration as well as that of the opposition parties.
He noted that the opposition's attention could be easily
shifted to another agenda, if allowed to by the
international community. The Ambassador noted that we
would be supportive of the various efforts, especially the
creation of the special investigative body promoted by the
Human Rights Ombudsman. He noted that the U.S. was seeking
ways to contribute financing, and urged other countries to
provide support. (Note: The Canadian and Norwegian
ambassadors told him afterward that, in view of the
Ambassador's support, they would attend the January 16
launching of the proposal. End note)

A Carefully-Crafted Public Diplomacy Strategy Needed
-------------- --------------


6. (SBU) Ambassador Pieper suggested that the next meeting
of the donor dialogue group focus on how individual
countries and the group should respond as the media
attempts to build the case that the international community
is making good on conditionality expressed at the last
Consultative Group to withdraw funding if progress falters.
World Bank rep Somensatto suggested that it was equally
important to make sure to clarify differences, if any, on
member positions on bilateral versus multilateral
assistance. He urged all members not to lose sight of the
importance of helping this Administration sustain macro-
economic stability during the election period. Somensatto
also asked that the U.S. specifically, and donor group at
large, express public support for the National Commission
on Transparency and Corruption, so as to ensure this effort
is fully supported by Guatemalans.

Comment
--------------


7. (SBU) This was a lively and useful exchange of views
that brought concerns of our donor community colleagues
clearly into view. Their fear that decertification will
hijack the Peace Accords agenda strikes us as a bit
overdrawn, and the Ambassador attempted to assuage these
concerns by emphasizing that our bilateral agenda is much
broader than just drug interdiction. We will remain
actively engaged with this group.
HAMILTON