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UNCLAS GUATEMALA 001177 SUBJECT: ANOTHER STEP FORWARD: FURTHER REDUCTION OF EMP STAFF REF: 02 GUATEMALA 3309 1. (U) Summary: At a May 2 public event, President Portillo officially demobilized 107 Presidential Guard (EMP) members in the second phase of the peace accord-mandated process to replace the EMP with a civilian agency. The Ambassador attended the ceremony at the National Cultural Palace, and later discussed with the press the GOG's progress on peace accord implementation, advocating prompt EMP dissolution and other advances in the Peace Accord agenda. End Summary. 2. (U) President Portillo announced on May 2 that the 107 members of the EMP staff being retired would be absorbed by other civilian agencies within the GOG. Added to the first staff reduction, which occurred on December 29, 2002 (reftel), the EMP has now been reduced by 55 percent (204 members) of its pre-Peace Accord size. According to Portillo and Peace Secretary Catalina Soberanis, the GOG will demobilize the remainder of the EMP staff by October 31, 2003.

3. (U) The Ambassador attended the public ceremony along with other chiefs of diplomatic missions. After the event he told the press that the demobilization of the EMP was a positive sign of the GOG's commitment to fulfilling pending items on the peace agenda. He also expressed USG concern over the lack of action so far towards completion of such peace accord mandates as increasing the tax burden, creating a transparent military budget, or increasing the budget of the Judiciary. 4. (SBU) Ricardo Marroquin, director of the Secretariat for Administrative Matters and Security (SAAS), the new civilian agency tasked with taking over the bulk of the EMP's functions, told PolMilOff that the former EMP members joining his ranks were being very carefully screened before admittance. Marroquin also noted that he was pleased with the transition thus far and that both he and the EMP staff were on schedule to meet the October 31, 2003, demobilization deadline. 5. (SBU) COMMENT: The continuing demobilization of the EMP is encouraging, and has created expectations that the Portillo Administration will meet its goal of completely demobilizing the EMP and replacing it with a civilian agency by October. While in recent years the EMP has not been accused of the human rights abuses it was involved in during the internal conflict, the total lack of transparency into its actions and budget have led to concerns that it could be used, as it was in the past, for corruption and even election-year dirty

tricks. Its definitive departure later this year will be an important step forward in the peace process. HAMILTON (Edited and reading.) reformatted by Andres for ease of