MEETING WITH PRESIDENT PORTILLO

C O N F I D E N T I A L SECTION 01 OF 02 GUATEMALA 002080

SIPDIS

E.O. 12958: DECL: 08/14/2013
TAGS: PREL PGOV SNAR GT
SUBJECT: MEETING WITH PRESIDENT PORTILLO


Classified By: CLASSIFIED BY AMBASSADOR JOHN R. HAMILTON, REASONS 1.5 (
B)


1. (C) Summary: In an August 13 meeting with the Ambassador
and DCM, President Portillo promised to veto a badly flawed
law on the new civilian presidential security force, to
reinstate the highly-regarded, recently-fired head of the
national disaster relief agency, to look into a decision
taken in his absence to stand down joint customs control with
El Salvador on their mutual border and to take vigorous
action against any misuse of state resources in the election.
End Summary.


2. (C) The meeting, whose main purpose was to introduce newly
arrived DCM Bruce Wharton, took place the President's
personal residence. He was relaxed, friendly and looked fit
after losing what he claimed was 18 pounds in six weeks.
After pleasantries and at the mention in passing by the
President of the new civilian presidential security service
(SAAS),designed to replace the presidential military guard
(EMP),the Ambassador said there was deep concern among donor
country diplomatic missions over a number of amendments to
the proposed law, whose net effect is to inappropriately
reinsert the military into the business of protecting and
supporting the president. Portillo nodded soberly in
agreement with the concerns and said he intended to veto the
law, if it arrived in his office in its current form. He
noted he was meeting the next day with Congress President
General Rios Montt and intended to raise the issue; he seemed
hopeful that the mischievous amendments, which he attributed
to military officers lobbying friends in the Congress on
their own, could be beaten back. But he reiterated his
determination not to let the flawed legislation become law.


3. (C) Turning to elections, the Ambassador said he knew from
previous conversations that the President wanted Guatemala's
elections to be judged free and fair by the international
community. Much depended on the political parties and the
elections tribunal to preclude any possibility of
election-day fraud. But a major concern among civil society,
opposition and the press is misuse of state resources. The
responsibility to prevent such abuse is primarily the
President's, the Ambassador said. In that regard, two recent
developments were troubling. One was the firing of the
highly regarded head, Alejandro Maldonado, of Guatemala's
national disaster relief agency (CONRED),which USAID and
SOUTHCOM had supported to the tune of at least US$1 million
in just the last year. The new chief was a political hack
with no visible qualifications; even more troubling had been
the naming of a retired military officer, well and
unfavorably unknown to us, as CONRED's chief of operations.
All of this pointed at potential misuse of CONRED resources,
especially as the fired individual had repeatedly resisted
pressure from the Vice President to hire ruling party (FRG)
members and to let contracts with FRG supporters.


4. (C) The second troubling development was a decision the
Vice President apparently had taken to withdraw Guatemala
from the joint customs inspection stations with El Salvador
along their common frontier. We had learned about this, the
Ambassador said, only because he Salvadoran foreign minister
had checked with San Salvador Charge Phil French to confirm
Vice President Reyes contention that he had made the decision
under pressure from the U.S., supposedly to beef up narcotics
controls. It simply was not true that we had sought the
change or had even expressed a view at all, the Ambassador
said, and the decision invited suspicion that customs
revenues would be siphoned off into FRG coffers.


5. (C) Portillo was well aware of the CONRED issue, said he
had met that day with Maldonado whom he thought highly of,
and that he had taken the decision to reinstate Maldonado
effective September 1. "Why September 1," the President
asked -- "because I am leaving for a ten-day trip to Taiwan
and if I reinstate Maldonado before then, the Vice President
will undo my decision while I am gone." But Portillo only
laughed merrily when the Ambassador suggested that he send
the VP to Taiwan instead of going himself and went on to
complain that VP Reyes had given him nothing but grief their
whole time in office together. Portillo said he was hearing
about the customs issue for the first time, did not like the
sound of it and would get on it first thing in the morning.
He went on to say that he was determined that there would be
no misuse of state resources in the election and that he had
told his cabinet that any employee, high or low, who violated
that prohibition would be fired and prosecuted. The
Ambassador also told Portillo that GANA VP candidate Eduardo
Stein had told him two weeks ago of GANA's interest in
keeping a direct channel of communication to the FRG open
during the campaign. Portillo, showing interest, said he
would pass this on to Rios Montt.

Note: The Ambassador briefed Stein on the exchange the next
morning, Stein reiterating GANA's interest in a channel of
communication.
The President also mentioned that, in response to continuing
legal challenges to Rios Montt's candidacy, the FRG is likely
to seek to file legal actions to prevent GANA candidate
Berger's registration.


6. (C) Finally, the Ambassador made a pitch for the
President's help in securing Congressional approval of the CN
Maritime Agreement, signed June 17. Portillo indicated he
would.

7. (C) Comment: As usual, Portillo gave every appearance of
caring about the concerns we raised as much or more than we
do. He does not invariably follow through, but perhaps he
will this time, on the SAAS, CONRED and Customs issues at
least.
HAMILTON