Identifier
Created
Classification
Origin
04GUATEMALA89
2004-01-15 22:46:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Guatemala
Cable title:  

VISIT OF GOV. BUSH FOR BERGER INAUGURAL

Tags:  OVIP PREL PGOV PINR ETRD EAID 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.
UNCLAS SECTION 01 OF 02 GUATEMALA 000089 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: OVIP PREL PGOV PINR ETRD EAID GT
SUBJECT: VISIT OF GOV. BUSH FOR BERGER INAUGURAL

UNCLAS SECTION 01 OF 02 GUATEMALA 000089

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: OVIP PREL PGOV PINR ETRD EAID GT
SUBJECT: VISIT OF GOV. BUSH FOR BERGER INAUGURAL


1. (SBU) Summary: Governor Jeb Bush headed the White House
Delegation to the inauguration of Guatemalan President Oscar
Berger, January 13-14, 2004, and met privately with both
outgoing President Portillo and incoming President Berger.
In the meeting with Berger, Governor Bush pledged continued
USG support for Guatemalan democracy, and discussed the
benefits of CAFTA. Berger responded that his government will
seek closer ties with the U.S.; said that his advisors had
still not seen the full text of the CAFTA agreement initialed
by the Portillo Government; and expressed concerns about the
treatment of some sectors, beer in particular. The U.S.
Delegation attended a presentation by the non-traditional
export association, where Governor Bush spoke about the
growing importance to the U.S. and Guatemala of bilateral
trade and investment. In a lunch with several of the new
ministers, civil society leaders and private sector
representatives, Governor Bush restated the priority
President Bush assigns to strong relations with our
hemispheric neighbors. Press coverage was uniformly positive
and the visit strongly supported U.S. interests in enhanced
cooperative relations with the incoming government. End
Summary.

Delegation Membership
--------------


2. (U) Governor of Florida Jeb Bush and his wife Columba
headed the White House Delegation to the inaugural of
President Oscar Berger, January 13-14, 2004. The U.S.
Delegation also included the Ambassador, Hamilton (Tony)
James (Vice Chairman of the Blackstone Group),Bob Martinez
(former Governor of Florida and Managing Director of Carlton
Fields) and Alberto Piedra (former Ambassador of the U.S. to
Guatemala, 1984-87),and was accompanied by State Department
Deputy Chief of Protocol Jeffrey Eubank and Protocol Officer
Christian Vanderbrouk, and Alan Florez, aide to Governor Bush.

Meeting with President Portillo
--------------


3. (SBU) Following their arrival in Guatemala City in the
early evening of January 13, Governor Bush and the U.S.
Delegation met privately at the Palace with outgoing
President Alfonso Portillo. The Governor thanked Portillo

for the warm bilateral relationship during his four years as
President, noting that his negotiation of a free trade
agreement with the U.S. (CAFTA) would be an historic legacy
that would transform Guatemala. Portillo said he was honored
that President Bush had sent his brother to Guatemala to head
the U.S. Delegation, and expressed pride in Guatemala's
recent elections that had had record voter turnout. He said
he was looking forward to retiring from politics. Governor
and Mrs. Bush attended President Portillo's farewell dinner
for heads of state at the Palace on the night of January 13,
and other delegation members participated in a dinner hosted
by outgoing Minister of Foreign Affairs Edgar Gutierrez also
at the Palace.

Meeting with President-Elect Berger and VP-elect Stein
-------------- --------------


4. (SBU) The delegation had a breakfast briefing by the
Country Team on January 14, followed by a private meeting
with President-elect Oscar Berger. Berger was accompanied by
Vice President-elect Eduardo Stein, Foreign
Minister-designate Jorge Briz, Vice Foreign
Minister-designate Jorge Skinner-Klee, and Berger's Private
Secretary Alfredo Vila. Berger welcomed Governor Bush, and

SIPDIS
said he was honored that President Bush had sent his brother
to represent him at the inaugural. Berger apologized for the
poor relationship President Portillo had had with the United
States, and pledged to make strengthening the bilateral
relationship one of his first priorities. Governor Bush said
that CAFTA would boost economic growth on both sides of our
borders and strengthen the bilateral relationship more
broadly. Berger said that his government was deeply
committed to CAFTA, but noted that the Portillo Government
had not shared a full text of the agreement with the incoming
government. He said that the lack of transparency with which
the Portillo Government had negotiated CAFTA had created some
doubts that the new government hoped to quickly clear up.
Foreign Minister Briz expressed particular concern about
CAFTA's liberalization of beer imports, noting that Guatemala
has a new brewery that would have difficulty competing
without some form of protection from imports (Note: The
owners of the new brewery were major contributors to Berger's
electoral campaign. End Note). Governor Bush responded that
a limited number of individual industries in the U.S. and
Guatemala would be negatively affected in the short term by
trade liberalization, but that CAFTA would have an overall
effect of boosting both of our economies.


5. (SBU) Berger said that his government would strengthen
cooperation with us on fighting transnational crime,
especially narcotics trafficking, and said he will fully
support the creation of the UN Mission to attack organized
crime and threats against human rights workers (CICIACS).
Berger said that he would name a Vice Minister of Foreign
Affairs dedicated to migrant issues, to improve GOG services
to its citizens living outside the country. He noted that
remittances from Guatemalans in the U.S. exceeded all of
Guatemala's traditional exports in 2003. Governor Bush told
Berger that the United States is acutely sensitive to the
need to document illegal aliens in order, among other things,
to find ways to bring down the transaction costs for
remittances. He noted that security concerns arising from
September 11 and legal authorities belonging to the states
would have to be taken into account in finding a solution to
this situation. Berger said he looked forward to working
with us to find a solution.

Other Delegation Activities
--------------


6. (U) The U.S. Delegation met with the non-traditional
export association (AGEXPRONT),and received a presentation
on this growing sector of the Guatemalan economy. Guatemalan
exporters expressed their support for CAFTA's potential to
encourage investment and trade, and emphasized the growing
optimism within Guatemala about the new, pro-business
government and prospects for overcoming the effects of low
world coffee prices. With assistance from USAID, AGEXPRONT
is helping Guatemalan coffee producers find niche markets for
high quality, ecological and organic coffees, while also
promoting a range of non-traditional products including
apparel, handicrafts, and non-traditional agricultural goods.
They also emphasized the central role that Florida plays as
the main entry-point for Guatemalan exports to the U.S.


7. (U) The Ambassador hosted a lunch at the Residence for the
delegation to meet key leaders, including a number of
designated ministers (Economy, Finance, Agriculture, Culture)
and other key members of the incoming government, prominent
civil society leaders (including Nobel laureate Rigoberta
Menchu and human rights defender Helen Mack, who were seated
a Governor Bush's side),and private sector representatives.
Governor Bush praised the role these members of Guatemalan
society had played in strengthening their democracy, remarked
on the sense of optimism he sensed at this historic moment
and conveyed President Bush's interest in and support for the
region.


8. (U) The U.S. Delegation participated in the inaugural
ceremony at the National Theater on the afternoon of January

14. In his departure speech, President Portillo exhaustively
defended his government's performance, to deafening silence.
In his shorter speech President Berger used his remarks to
call for unity instead of confrontation, but proceeded to
denounce the corruption of the outgoing government. The
audience gave Portillo the loudest applause when he
surrendered the presidential sash.


9. (U) Following the conclusion of the inaugural ceremony,
the U.S. Delegation departed Guatemala by milair at 1900 hrs.
local time.

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


10. (U) The Presidential delegation advanced U.S. interests
and the bilateral relationship tremendously by effectively
conveying U.S. support for and interest in Guatemalan
democracy. That message was warmly received by both outgoing
and incoming governments, despite their mutual animosity.
The goodwill generated by Governor Bush's public and private
appearances and the delegation's composition and behavior was
evident throughout the visit and in press coverage, which was
uniformly positive. President Berger was effusive in his
praise for the delegation's visit in private remarks to the
Ambassador on January 15.


11. (U) This cable was prepared following the departure of
Governor Bush and his party.
HAMILTON