C O N F I D E N T I A L SECTION 01 OF 03 GUATEMALA 000933

SIPDIS

HARARE FOR BRUCE WHARTON

E.O. 12958: DECL: 04/07/2013
TAGS: PREL PGOV SNAR OVIP KIPR PHUM ELAB MARR GT
SUBJECT: AMBASSADOR AND FOREIGN MINISTER DISCUSS
PRESIDENTIAL SUMMIT AND BILATERAL ISSUES

Classified By: PolCouns David Lindwall for reason 1.5 (b) and (d).


1. (C) Summary: The Ambassador and Foreign Minister
Gutierrez met on April 3 to discuss the upcoming visit of the
Central American presidents to Washington to meet with
President Bush on CAFTA. The Ambassador carried out
demarches on CUBA and Iraq (septels), mentioned upcoming
visits of USG officials to discuss GSP labor concerns and
Article 98 Agreement, asked for expedited signing of the new
IPR law and discussed progress in setting up CICIACS.
Foreign Minister Gutierrez welcomed the information on the
Presidential meeting. He informed us of problems in the
DECAM (GOG arms and munitions regulatory agency), and
remedial actions being taken by the GOG to avoid arms being
held legally by drug-traffickers. End summary.

The April 10 Presidential Meeting
--------------

2. (C) The Ambassador met with Foreign Minister Edgar
Gutierrez at the Foreign Ministry on April 3 to discuss the
upcoming meeting of the Central American Presidents with
President Bush. He said the Presidential meeting reflects
something much bigger than the sum of our individual
bilateral issues, but rather the future of the entire
bilateral relationship and regional integration. The
Ambassador noted that President Bush would like to focus the
meeting on free trade (CAFTA), and hoped that the Central
American presidents would take advantage of this opportunity
to keep attention focused on that theme. If, as apparently
had been agreed in Roatan, the Presidents were going to
address such subjects as regional integration, agriculture
and arms reduction, it would be useful to relate them to
CAFTA and to keep the remarks short and conversational, not
set-piece speeches. Gutierrez said, "don't worry about us --

will keep it short."


3. (C) The Ambassador noted that other bilateral themes,
including counter-narcotics cooperation, would be a topic for
discussion at the April 11 breakfast between President
Portillo and WHA Acting A/S Struble. However, the meeting
with President Bush would not be an appropriate venue for a
debate on certification. The Ambassador commented that WHA
A/S Struble would be holding a tele-briefing for the
Guatemalan press on April 8 to draw attention to recent
improvements in Guatemala's counter-narcotics cooperation.
We believe that this will generate a positive climate for the
Presidential meeting. The Ambassador noted, however, that
the USG decision to decertify Guatemala as a cooperating
partner in the war on drugs would not be reviewed prior to
the April 10 meeting, and the GOG should not expect action on
this front prior to the summit. Gutierrez thanked us for the
upcoming press briefing by WHA A/S Struble, which he thought
would be useful for setting a positive tone. He did not push
back on our statement that Guatemala would not be recertified
before the April 10 meeting, and appeared satisfied that the
USG was pleased with continuing progress and would say so in
the April 8 press briefing. He welcomed the April 11
breakfast between Portillo and A/S Struble.

Torture of Drug Suspects
--------------

4. (C) The Ambassador told Gutierrez that we were concerned
that state agents may have used torture and illegal detention
to carry out a drug seizure in Zacapa in March (septels).
Furthermore, it appears they planted drugs on three suspects
in order to incriminate them. The Ambassador said he has
already talked to the President, the Ministers of Defense and
Government and the PNC Director about this matter, and
received their assurances that it would not happen again.
The Ambassador told Gutierrez that the GOG needed to ensure
that the drug war is pursued solely by means that are legal
and that do not violate human rights. Actions outside the
law will hurt, not help, re-certification.

Counter-Narcotics Maritime Agreement
--------------

5. (C) Prior to the discussion of the Struble
tele-conference, Gutierrez gave the Ambassador a MFA legal
opinion on our proposed CN Maritime Agreement. Gutierrez
said the GOG had gotten hung up for some time on the
sovereignty issue, but had come up with what he hoped we
would regard as a creative solution. We will report this
issue septel once we have analyzed the GOG proposal.

Article 98 Agreement
--------------

6. (C) The Ambassador advised Gutierrez of the April 10-11
visit to Guatemala of Ambassador Marisa Lino and a team of
USG negotiators to discuss signing an Article 98 Agreement.
He asked that the GOG assign the highest level negotiators to
ensure that the discussions succeed. Gutierrez noted that he
had already given instructions for the head of the MFA's
legal department to meet with the USG delegation, and
lamented that the senior officials who could initial an
agreement would all be out of the country those dates.
Gutierrez believes that, despite the absence from the country
of the senior MFA officials, the discussions of an Article 98
Agreement can make progress.

IPR Law
--------------

7. (C) The Ambassador expressed appreciation for the recent
passage of improved IPR legislation, and said that it was
important that the law be signed by President Portillo before
April 8 in order for it to be taken into consideration in our
Special 301 Review. The Foreign Minister took note and
promised to advise us.

GSP Review
--------------

8. (C) The Ambassador commented that USTR would decide on
April 15 whether to accept a GSP petition filed against
Guatemala, based in large part on violence against labor
leaders. The Ambassador noted the April 4 visit of Assistant
USTR for Labor William Clatanoff and Department of State
Director of International Labor Affairs George White would
give the GOG an opportunity to hear USG concerns and provide
a GOG response. Gutierrez said that the GOG takes this issue
seriously, and he had asked Vice Minister Aguilera to
represent him in meetings with the senior USG visitors, as
Gutierrez would be in Belize that day.

CICIACS
--------------

9. (C) In early April, the GOG sent senior Guatemalan
diplomat Maritza Ruiz de Vielmann to Washington and New York
to discuss the modalities for OAS and UN participation in the
commission being established to investigate threats against
human rights workers (CICIACS). Specifically, Ruiz was to
explore UN willingness to have the CICIACS constituted as an
international mission under UN auspices, like MINUGUA, as
this was what the Human Rights Ombudsman and the NGO
community were now demanding. Gutierrez doubted that the UN
would want to be responsible for a second international
mission, but wanted to explore the option as a gesture of
good faith. The Ambassador commented that we viewed recent
GOG flexibility on this matter (together with the GOG
dropping the idea of CICIACS reporting to the GOG Peace
Secretariat, to which the Ombudsman objected) as a positive

SIPDIS
sign, as it had convinced the human rights NGO community that
the GOG would not obstruct efforts to establish a credible
investigatory commission. Gutierrez commented that he had
placed Ambassador Ruiz de Vielmann in charge of this effort
to demonstrate the seriousness the GOG assigns to
establishing a credible mechanism to investigate clandestine
groups.

DECAM
--------------

10. (C) Foreign Minister Gutierrez told the Ambassador that
President Portillo had instructed him to inform us that the
GOG was investigating "serious abuses" by the DECAM (the
GOG's arms and ammunition regulatory agency belonging to the
Ministry of Defense). According to Gutierrez, the GOG found
out that the DECAM has been issuing assault rifle permits to
the bodyguards of the major narco-traffickers. The GOG has
temporarily invalidated all fire-arms licenses, and will
carefully review all requests for restoring permits in an
attempt to more carefully control the issuance of such
licenses. Gutierrez promised to keep us informed of progress
(Note: Minister of Defense Moran mentioned the same charge
against the DECAM earlier in the week, and similarly noted
that the GOG is in the process of cleaning it up. End note).

Comment:
--------------

11. (C) The Guatemalans view the upcoming meeting with
President Bush as very important for generating a modicum of
domestic credibility for Portillo's battered presidency.
Appearances on April 10 will be as important to them as
substance. With the national election campaign only five
weeks away from officially starting, the perception that the
U.S. views the Portillo administration negatively has
implications for his party, the FRG. This explains why, in
April 5-6 press coverage, Portillo has stated he will raise
with the President the statements made by former A/S Reich
(GOG official corruption) and decertification. Our
assessment, however, is that Portillo will be statesman-like
at the presidential meeting, and will try to convey the
impression that, despite our doubts about his government's
counter-narcotics cooperation, he is someone we can work with.
HAMILTON