US embassy cable - 04GUATEMALA821

UNCLAS GUATEMALA 000821 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PREL, MOPS, GT 
SUBJECT: BERGER PUBLICLY ANNOUNCES DEEP MILITARY CUTS 
 
REF: A. GUATEMALA 548 
     B. GUATEMALA 771 
 
1. (U) In a public ceremony at the National Palace on April 
1, President Berger formally announced a reduction in troop 
levels, to be implemented by June 30, from 27,214 to 15,500 
(about 43%) and a 30% reduction in the military's budget for 
2004 (the budget cut for 2004 was even deeper if intra-budget 
transfers that plussed up the Defense budget beyond 
Congressionally approved levels are taken into account). 
Beginning in 2005, the military budget will be capped at 
0.33% of GDP, or exactly half the limit set by the 1996 Peace 
Accords.  The announcement, jointly made by Security 
Commissioner Otto Perez Molina, the Minister of Defense, and 
President Berger, was consistent with political agreements 
reported reftels and contained no surprises. 
 
2. (SBU) Comment: Vice President Stein and Presidential 
Advisor Eduardo Gonzales told the Ambassador that a March 30 
4-hour session with 60 senior officers to explain the 
decision was tense, but had ultimately gone well.  Military 
leaders have expressed concern to us as well that the 
drawdown will not be accompanied, as the GOG is promising, by 
real modernization.  Perez Molina's participation in the 
ceremony was significant after earlier indications he might 
distance himself from the reductions.  At the Ambassador's 
suggestion, the GOG will be briefing the diplomatic corps in 
greater detail early next week. 
HAMILTON