US embassy cable - 04GUATEMALA2804

UNCLAS SECTION 01 OF 02 GUATEMALA 002804 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ASEC, GT, PGOV, PHUM, PINS 
SUBJECT: GUATEMALA'S EX-PARAMILITARY GROUPS BLOCK 
TRANSPORTATION COUNTRY-WIDE 
 
REF: GUATEMALA 
 
1. Summary.  Guatemala's ex-PAC members practically shut down 
the nation on November 3 in protests over the Government's 
failure to disburse payments promised to them in the 2003 
election.  These payments have been delayed due to 
constitutional challenges to the process.  Congress 
immediately met to resolve the primary challenge, but many 
others remain.  The economic damage from the blockades was 
significant as the transportation network was paralyzed.  The 
ex-PAC leaders are likely encouraged by their success and may 
use these tactics again if their grievances are not resolved, 
given that there is little talk of punishment for the illegal 
activity.  End summary. 
 
Protests and damages 
-------------------- 
2. Veterans of the Civilian Self-defense Patrols (known as 
ex-PAC, by their Spanish initials) again protested the 
failure of government to approve payments for their service 
during the Guatemalan civil war by blocking highways, 
airports, seaports, and other transportation infrastructure 
on November 2.  The protests blocked at least 38 different 
highways and facilities throughout Guatemala, disrupting 
commerce, transportation, and tourism.  Some highways were 
blocked at dozens of points, trapping travelers between 
blockades.  Flights were diverted from the airport serving 
major tourist destinations in the north of Guatemala to other 
installations. 
 
3. Economic damage from the protests was significant.  In at 
least one major seaport, no ship could load or unload cargo, 
nor could local industrial operations access the port to 
process their exports.  The paralyzation of the road network 
shut down commerce nationwide.  Representatives from the 
umbrella business chamber CACIF estimated that this type of 
interruption costs Guatemalan businesses USD 1.5 million per 
day.  They further noted that the hardest hit amongst the 
victims of these interruptions were the small- and 
medium-sized businesses, many of whom deal with perishable 
goods. 
 
Reasons for discontent 
---------------------- 
4. Payments to the ex-PAC were a major issue in the 2003 
presidential campaign.  Before the 2003 elections, the former 
Portillo Government made the first of a projected three 
payments to approximately 500,000 ex-PAC members.  (Note:  At 
their peak in the 1980s, the Guatemalan Army had enrolled 1.2 
million members in the PAC, many in an involuntary manner. 
End note.)  Under President Berger, the new Government passed 
a bill to continue the project, however, the Constitutional 
Court upheld a privately-mounted legal challenge.  The 
Guatemalan Constitution requires that new proposals identify 
funding sources, which the original ex-PAC payment 
authorization bill did not. 
 
5. While the protests and highway blockades passed without 
overt violence, the national disruption spurred Congress to 
consider immediately the draft revisions to the bill 
authorizing issuance of treasury bonds to finance payments in 
2004, 2005, and 2006.  Congress passed the bill with the 
favorable vote of 114 of 120 Members of Congress present in 
the late afternoon of November 2, but Government officials 
reportedly stated that they would send the revised bill to 
the Constitutional Court for review before enacting its 
provisions.  Indeed, a second constitutional challenge by a 
coalition of human rights groups and private citizens remains 
pending.  While this second challenge includes the funding 
issue that Congress ostensibly resolved, it also challenges 
the project under more than a dozen other constitutional 
provisions. 
 
Comment 
------- 
6. Many observers, including Members of Congress, human 
rights organizations, and the international community are 
repelled by both the general idea of making payments to the 
ex-PAC and the specific processes for doing so, which are 
rife with potential for abuse.  Nonetheless, the Government 
cannot go back on its promise to make the payments, given the 
ex-PAC demonstrated capability of mobilization and the 
percentage of the electorate that stand to gain short-term 
benefit from the payments.  The Government inherited this 
mess from the previous administration, and has neither 
sufficient funds nor sufficient support for the project. 
They have no choice, however, but to continue anyway. 
 
7. It is unfortunate that it took such significant social 
interruption to spur Congress into action.  Having rewarded 
the ex-PAC for their economically damaging protests, 
Guatemala can expect more of the same, particularly as there 
has been little discussion of punishment for ex-PAC leaders 
for these illegal activities (although the Public Ministry 
did request arrest warrants for three of the ex-PAC leaders). 
 We expect further disruption on the part of ex-PAC members 
who did not receive payments in the first tranche, as well as 
more wide-spread protest over any delay of further tranches, 
which can be expected due to financial and legal 
considerations. 
HAMILTON