VZCZCXYZ0000
PP RUEHWEB

DE RUEHGT #0529/01 1161422
ZNR UUUUU ZZH
P 251422Z APR 08
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC PRIORITY 5234
INFO RHEHNSC/NSC WASHDC PRIORITY
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RHMFIUU/CDR USSOUTHCOM MIAMI FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC

UNCLAS GUATEMALA 000529 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ASEC GT
SUBJECT: COLOM DEFENDS FIRST 100 DAYS 
 
REF: A. GUATEMALA 387 
     ¶B. GUATEMALA 464 
 
Introduction 
------------ 
¶1.  (U) On April 23, President Alvaro Colom publicly outlined 
his government's achievements during its first 100 days.  The 
Vice President, First Lady, Cabinet, Diplomatic Corps, some 
Members of Congress, press, and others were in attendance. 
Colom described his government as breaking with the past 50 
years of governance to favor the poor.  "Some will like it, 
and some won't, but that's the way it is," he said, adding 
that the only criticisms that would concern him would be 
those of the poor.  Some restructuring of the state was 
needed to achieve new policy objectives.  To this end he 
named his wife to head a new Social Cohesion Council, and he 
personally would head a new Rural Development Council 
focusing on the 44 poorest municipalities.  He said the 
polemics surrounding his wife being named to lead major 
social initiatives should not overshadow the social problems 
that her Council will redress.  Colom blasted the previous 
Berger Government for having left more debt than it had 
acknowledged. 
 
Security 
-------- 
¶2.  (U) Colom asserted that the security situation has 
improved during his administration and was "under control," 
but allowed that many might not share that view.  He asserted 
that daily homicide rate had fallen from 17 in 2007 to 11.3. 
(Comment: According to the National Police, the current daily 
homicide rate is 15.)  In a dramatic improvement over 2007, 
security forces have made several major cocaine seizures 
already this year.  Eight hundred new police officers have 
been hired, 431 fired for cause, and much new police 
equipment purchased during his administration, Colom said. 
The Ministry of Government's new civilian intelligence 
service had been inaugurated, but it would take time for it 
to have an impact on crime.  Colom acknowledged that the 
March 25 melee in Zacapa Department (Ref A) had been a 
worrying manifestation of narco-violence, but said it was a 
product of successful GOG counternarcotics efforts in 
neighboring Izabal Department. 
 
Taxes and Economy 
----------------- 
¶3.  (SBU) Colom heralded a new tax reform proposal unveiled 
April 22 that would raise tax collection from 12.3% to 13.2%. 
 He acknowledged that "certain sectors" were reticent to pay 
more taxes, and that there were "problems even inside our own 
party" in generating support for the initiative.  However, he 
insisted that it was time for the rich to pay more taxes. 
Colom told the private sector not to worry, saying the 
government "would not do anything crazy."  The GOG maintains 
good relations with international financial institutions, 
Colom said, and would try to promote small and medium 
enterprises.  Colom asserted that the GOG had already begun 
distributing property titles to owners of untitled land. 
 
Energy 
------ 
¶4.  (SBU) Noting that the price of oil had risen dramatically 
since his inauguration, Colom cited fuel prices as a major 
concern and the driver behind rising inflation.  Without 
explicitly mentioning a possible PetroCaribe deal with 
Venezuela, Colom said the GOG is looking for energy 
solutions.  In reference to the existing contract with U.S. 
company Tampa Electric, Colom denounced the terms of some 
existing public electricity contracts with foreign companies 
as being so unfavorable that he was tempted to abrogate them, 
but instead was trying renegotiate them. 
 
Health Care and Education 
--------------------------------------------- ---- 
¶5.  (U) Seven hundred and forty schools had been refurbished 
since he took office, Colom said, and 75% of schools had 
received new teaching kits.  The public health system had 
hired 300 new doctors, and public hospitals that used to work 
half-days are now open eight hours per day.  Colom said 
members of the opposition "had never been inside public 
hospitals," and were therefore unfamiliar with their needs. 
Colom also extolled the new "My Family Progresses" program, 
which provides small subsidies to a limited number of poor 
families in exchange for parents keeping their children in 
school. 
 
Comment 
¶6.  (SBU) The tenor of Colom's speech alternated between 
self-assured and combative.  Missing from the speech was an 
outline of how the government plans to achieve the unmet 
goals from the 100-Day Plan.  Public reaction to the speech 
and to the government's performance in its first 100 days has 
been mixed.  For Embassy's review of the Colom Government's 
first three months, see Ref B. 
Lindwall