US embassy cable - 03GUATEMALA2080

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