Identifier
Created
Classification
Origin
04GUATEMALA1313
2004-05-26 19:22:00
UNCLASSIFIED
Embassy Guatemala
Cable title:  

COLITE APPLICATION FOR BILLBOARD CONSTRUCTION

Tags:  EINV GT 
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This record is a partial extract of the original cable. The full text of the original cable is not available.

261922Z May 04
UNCLAS GUATEMALA 001313 

SIPDIS

PASS OPIC FOR INSURANCE OFFICER STEPHANIE M. DOWNEY

E.O. 12958: N/A
TAGS: EINV GT
SUBJECT: COLITE APPLICATION FOR BILLBOARD CONSTRUCTION

REF: A. STATE 127407


B. GUATEMALA 01783

UNCLAS GUATEMALA 001313

SIPDIS

PASS OPIC FOR INSURANCE OFFICER STEPHANIE M. DOWNEY

E.O. 12958: N/A
TAGS: EINV GT
SUBJECT: COLITE APPLICATION FOR BILLBOARD CONSTRUCTION

REF: A. STATE 127407


B. GUATEMALA 01783


1. Summary: Embassy has no objections to Colite Outdoor's
application for OPIC insurance for its billboard operation
but recommends caution in defining what is covered due to the
vagueness of Guatemalan law with respect to "visual
pollution." End Summary.


2. The construction of billboards in Guatemala is regulated
by Legislative Decree 34-2003, the Law of Advertisements in
Urban, Suburban and Other Roads. This law was put in place
because the prior laws (43-95 and 144-96) were declared
unconstitutional by the Supreme Court for multiple reasons.
Copies of the national laws and court rulings are being
mailed to OPIC, Attn. Mr. Rivera Montes (documents are not
suitable for faxing).


3. Companies must obtain permission from the landowner and
the local municipality. They may not construct on road
rights of way. Tax rates are uniform across the county.
Foreign firms are taxed at the same rate as domestic ones.
The location of (urban, rural, etc) and size of the signs
impact the tax rate.


4. The two fundamental norms regulating posting of
billboards are found in Article four of Decree 34-2003:
"--a) All necessary means should be taken to obtain the best
appearance in urban, suburban and other roads, in order to
avoid danger and facilitate the free circulation of vehicles
and pedestrians, thus reducing to a minimum the visual
pollution of the environment.
"--b) Respect for the liberty of industry, commerce, and
work, which one will attempt to stimulate and encourage,
except in the case of legal limitations and social
inconviences."


5. More specific regulations are found in Chapters two and
four. The prohibition of primary concern is Article 17, Part
B:

"It is prohibited to place advertisements that impede views
of legitimate tourist interest..."

The local municipalities, which are part of the approval
process, define what is a view of legitimate tourist interest.


6. Embassy is not aware of any cases of forcible removal of
billboards that might be interpreted as expropriation, but we
recommend caution in defining insurance coverage so that a
reasonable application of Guatemalan law does not require
payment of insurance benefits.
HAMILTON