Identifier
Created
Classification
Origin
10GUATEMALA47
2010-02-17 22:09:00
CONFIDENTIAL
Embassy Guatemala
Cable title:  

Your Meeting with Guatemalan President Alvaro Colom

Tags:  PREL PGOV ECON SOCI EAID GT 
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FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1049
INFO RUEHGT/AMEMBASSY GUATEMALA
C O N F I D E N T I A L GUATEMALA 000047 

SIPDIS

E.O. 12958: DECL: 2020/02/17
TAGS: PREL PGOV ECON SOCI EAID GT
SUBJECT: Your Meeting with Guatemalan President Alvaro Colom

CLASSIFIED BY: Drew G. Blakeney, Political and Economic Counselor,
State, P/E; REASON: 1.4(B),(D)

C O N F I D E N T I A L GUATEMALA 000047

SIPDIS

E.O. 12958: DECL: 2020/02/17
TAGS: PREL PGOV ECON SOCI EAID GT
SUBJECT: Your Meeting with Guatemalan President Alvaro Colom

CLASSIFIED BY: Drew G. Blakeney, Political and Economic Counselor,
State, P/E; REASON: 1.4(B),(D)


1. (C) Summary: During your February 18 meeting with Guatemalan
President Alvaro Colom you will have the opportunity to address
several key issues including poverty alleviation, general and food
security, rule of law, transparency, and taxes. Your meeting comes
in the wake of his January exoneration by the UN-led International
Commission Against Impunity in Guatemala (CICIG, supported by the
USG) of the murder of prominent attorney Rodrigo Rosenberg.
Rosenberg's accusation from the grave, circulated in a posthumous
video, that Colom and his inner circle had murdered him had sparked
street protests and threatened to bring the government down last
year; the USG, among others, convinced the President and opposition
to step back from confrontation. Colom is now eager to
demonstrate through meetings with world leaders that he has
recovered his legitimacy. Even Colom's opponents acknowledge he
is a good, well-intentioned president. He is weakened by a) an
ineffective and corrupt bureaucracy, b) contradictions between the
demands of his wife's rumored 2011 Presidential candidacy and the
need to reach agreements on taxes and security issues with the
opposition, and c) a stunningly corrupt police and judicial
apparatus. Colom values highly his relationship with the USG, and
we have consistently worked closely with the President to support
his efforts to dialogue with opponents and to support his efforts
on citizen security and poverty reduction. End Summary.




2. (C) President Colom's tenure has been characterized by some
successes in the social field, and growing challenges in others,
especially security. Controversial First Lady Sandra Torres de
Colom leads the government's programs to address pressing social
needs via her Social Cohesion Council, and plans to seek the
presidency in 2011 despite a constitutional prohibition on
presidents' family members running for the office. Although she
has not yet publicly announced her candidacy, she is counting on

grateful program recipients to secure electoral victory. The
Coloms' political opponents criticize growing social welfare
programs, which are popular with the extremely poor, for their
lack of transparency, and as a vehicle for political patronage and
corruption. We believe that the government indeed needs and can do
much more to improve transparency. Collecting just 10.4% of GDP in
taxes, the Guatemalan state remains chronically under-funded.
Political consensus on raising taxes remains elusive, with
opponents objecting to rampant corruption and ineffective
collection of existing taxes and customs duties. Forty-three
percent of Guatemalan children -- mostly indigenous -- suffer from
chronic malnutrition, the highest percentage in the Western
Hemisphere. We are working with the GOG on food security within
the framework of the Global Food Security and Hunger Initiative,
and recently inaugurated an additional $16 million single-year
food security program (SYAP). The annual USAID budget for
Guatemala is approximately $75 million.




3. (C) President Colom is right to try to ameliorate the plight of
the 51% of Guatemalans who live in poverty. Expansion of the
social programs under First Lady Sandra Torres de Colom's direction
is a step in the right direction. However, the government has
consistently acted to ensure the opacity of these programs'
finances, raising credible domestic and international concerns
about corruption. Better government transparency might encourage
political opponents to dialogue on increasing inadequate tax
collection. Shortly after his election, Colom said his government
would "have a Mayan face," but his current cabinet includes just
one indigenous person and no women. Greater inclusion of women and
indigenous people would help to generate broader sympathy for his
government. The US Embassy has taken the initiative on three
occasions to host meetings for President Colom with political
opponents and the private sector. The most recent January 2010
dialogue we hosted between Colom and the private sector led to the
formation of multiple government-business commissions on taxes,
fighting contraband, and transparency. Still, Colom will likely
sound you out on pressing the private sector to agree to raise
taxes; we have urged all sides to push for better collection of
existing taxes, consideration of additional taxes, and more steps
to improve transparency of public expenditures.




4. (C) The GOG must do better on security. We are assisting on
many fronts, including through the Merida Initiative and support
for CICIG (pronounced SEE-SEEG). Our support is presented as a
partnership with the Guatemalan government and people, and
Guatemalans largely appreciate our role. Reform of domestic rule
of law institutions, with which CICIG is helping, is essential.
We stand ready to support the critically important, upcoming
initiative to reform the police. The Guatemalan people deserve
better from their courts than a 96.5% impunity rate for homicides;
the new Supreme Court needs to provide better leadership. Former

President Portillo has already demonstrated his ability to
manipulate Guatemala's courts, so we think his quick extradition to
face money laundering charges in the U.S. makes good sense. The
Attorney General is to be congratulated for the improvements at his
office, and we hope to be able to continue effective cooperation
when President Colom chooses his successor in May.




5. (C) The New York street value of the 300 metric tons of cocaine
estimated to have transited Guatemala in 2009 is greater than the
national budget. In 2009, the GOG seized eleven metric tons of
cocaine. The cocaine trade corrodes every state institution it
touches, exacerbating already endemic corruption and violence.
Zetas and other heavily armed Mexican drug traffickers battle
Guatemalan traffickers for control of routes. With a homicide rate
of 48.4 per 100,000, Guatemala is among the most dangerous
countries in Latin America. The Embassy and CICIG encouraged
Congress to elect a cleaner Supreme Court, which is making some
efforts to improve the inefficient and corrupt court system. In
May the GOG will start a new campaign to reform the corrupt, human
rights-abusing National Civilian Police. The Army is subservient
to civilian authority and has played a helpful role in supporting
law enforcement operations, but has yet to adequately address its
history of Cold War-era human rights abuses. Despite institutional
shortcomings, some Embassy-supported vetted units are working well.
With encouragement from the USG and CICIG, Congress has passed a
number of laws giving authorities modern crime fighting tools.
More such important reform legislation is now before Congress. GOG
performance on combating TIP, including prosecutions of
traffickers, has been inadequate. The Department is considering
placing Guatemala in Tier III for TIP.




6. (SBU) Colom, a self-described social democrat, was elected to a
four-year term in 2007 on a center-left platform promising rural
development, poverty alleviation, and greater social inclusion of
the 43% of Guatemalans who are indigenous Mayans. Maintenance of
good relations with all countries in the hemisphere -- including
Cuba and Venezuela -- is the lodestar of the GOG's foreign policy.
Colom is mindful, however, that his most important bilateral
relationship by far is with the United States; he also has a good
personal relationship with Colombian President Uribe. More than
one million Guatemalans live in the U.S., nearly all illegally, and
the U.S. is Guatemala's top trade partner as well as source of
foreign investment and assistance. Remittances from the U.S. have
transformed the Guatemalan countryside. CAFTA has been a boon for
the Guatemalan economy, and has afforded the USG a mechanism for
raising concerns about violence against labor leaders and working
conditions. No foreign policy issue is more important to
Guatemalans than U.S. immigration reform; Colom will raise it. You
may also wish to thank President Colom for his helpful approach to
the Haiti crisis and by contributing to Central American stability
through recognition of the Lobo Government in Honduras, as well as
his close relationship with President Funes.
MCFARLAND