527Approved For Release 2008 08 06 - I EAL INCOMING 09 FRP 2 3 IMMEDIATE 25x1 I PAGE 001 NC 9130033 - TOR 2816342 um 82 25X1 zloo zuv zoc STATE ZZH STU2471 Do RUEHC A 1 I RUESGT #5518 01 2082359 22H - D 2723442 JUL 82 - - FM GUATEMALA To WASHDC IMMEDIATE INFO NASHDC PRIORITY BT I I A GUATEMALA 551a IPASS OPIC EXIM lSta IeDept review completed p 31 usDGc FOR - MR BATEMAN E D 12065 GUS 7 27 82 STEBBING DAVID H OR-E OREP EINV EFIN MASS GT -E SUBJECT GUATEMALA 0F wILsoM25 OF TEXAS A - ENTIRE TEXT 2 SUMMARY IN UNOFFICIAL VISIT TO GUATEMALA JULY 23-26 AT GOG INVITATION REPRESENTATIVE CHARLES WILSON CONSTRUCTIVE EXCHANGE OF VIEWS WITH PRESIDENT RIOS MONTT THE MINISTER OF AGRICULTURE AND THE ECONOMIC CABINET AND TOURED CONFLICT ZONE BY HELICOPTER HE ARRANGED FOR ACCOMPANYING BUSINESSMEN TO MAKE ORAL -OF PROPOSAL CONCERNING HARD MINERALS TO ECONOMIC CABINET PRESIDENT RISO HEARTFELT PLEA FOR UNDERSTANDING REALITY IN GUATEMALA LEFT THE CONGRESSMAN SOMEHHAT PERPLEXED AFTER HALF-HOUR MEETING JULY 23 SESSION WITH ECONOMIC CABINET JULY-26 CULMINATED IN NILLINGNESS SET UP MEETINGS WITH TEXAS BUSINESSMEN STARTING WITH OILMEN TO PUBLICIZE OPPORTUNITIES IN GUATEMALA WE REP WILSON LEFT GUATEMALA STRENGHENED IIN HIS CONVICTION THAT THE HUMAN RIGHTS SITUATION IMPROVED AND THAT THE U S SHOULD NOW MOVE G TO IMPROVE RELATIONS IN PARTICULAR HE TOLD HIS HOSTS THAT HE UOULD WORK HARD FOR PASSAGE OF THE CBI LEGISLATION BEFORE THE AUGUST RECESS REMOVAL OF THE BAN ON SALES OF HELICOPTER SPARE PARTS A LEVEL OF MILITARY TRAINING AND ASSISTANCE AON IMPROVED COMMUNICATION WITH THE U S PRIVATE SECTOR HE AND HIS COMPANIONS WERE FAVORABLV IMPRESSED BY THE ABSENCE OF SIGNS OF VIOLENCE IN GUATEMALA CITY AND ANTIGUA AS NELL AS BY CONVERSATIONS WITH TROOP COMMANDERS IN-EL QUICHE IN THE PRIMARY CONFLICT ZONE CONGRESSMAN WILSON TOOK QUESTIONS FROM NENSMEN AFTER HIS THE PRESIDENT AND THE Approved Release 2008 08 06 A Approved For Release 2008 08 06 CIA-RDP84BOO148R000200440037-7 CONFIDENTIAL 82 9130038 SCO PAGE 002 NC 9130038 TOR 2816342 JUL 82 ECONOMIC HIS VISIT RECEIVED STRAIGHT- FDRHARD COVER-AGE AS A POSITIVE DEVELOPMENT IN BILATERAL RELATIONS THE CONGRESSMAN PORTRAYEO HIMSELF AS THE ONE MEMBER 0F THE FOEIGN TIONS SUBCOMMITTEE OF THE HOUSE APPROPRIATIONS COMMITTEE WHO IS FAVORABLY DISPOSED IN GENERAL ITO BOTH ECONOMIC AND MILITARY ASSISTANCE ABROAD REQUEST INFORMATION ON CURRENT OPIC POLICY REGARDING INVESTMENT PROJECTSDIN HARD MINERALS END SUMMARY IWXR DURING- UNOFFICIAL VISITI TO GUATEMALA JULY 23- AT GOG INVITATION REP CHARLES WILSON O- AND TWO-PRIVATE BUSINESSMAN MET WITH - RIOS MONTT MIN AS SANDOVAL ADN THE ECONOMIC OF ECONOMY FIGUEROA OF FINANCE GONZALEZ DEL VALLE OF CENTRAL BANK AND CONTRERAS OF THEY TOURED THE CONFLICT ZONE BY MILITARY HELICOPTER AND A DAY SIGHTSEEING IN ANTIGUA THE COLONIAL CAPITAL ONE PURPOSE OF THE TRIP HAS TO ESTABLISH CONTACT WITH GOG FOR THE BUSINESS VISITORS 4 CONG MILSON LEFT THE UULY 23 MEETING UITH RISO MONTT SOMEHHAT PERPLEXED BY THE SINGLEMINOEONESS AND CONTRASTS THAT COEXIST IN PERSONALITY RIOS APPEARED TO UNDER- STAND PERFECTLY CONG POINTS ON THE NECESSITY DF CONTINUING TO STRENGTEN ITS RECORD ON HUMAN RIGHTS AND THE SIGNIFICANCE OF THE UNANIMOUS HFAC VOTE ON 11 MILLION ESF FUNDS FOR GUATEMALA- THEME FOR THE DAY HOU- EVER HAS A PLEA-FOR THE 0 5 TO UNDERSTAND GUATEMALA INATHE LIGHT OF THE CULTURE AND VALUES TO REPEATED QUESTIONING ALONG THE LINES OF UHAT SPECIFICALLY IS RIGHT OR WRONG AODUT u S POLICY RIOS MONTT RETURNED CONSTANTLY TO THE CONCEPT THAT GUATEMALA IS AN ABORIGINAL COUNTRY STEEPED IN 2000 YEARS OF POVERTY IGNORANCE AND DISEASE WHOSE POLITICAL SYSTEM THEREFORE CANNOT POSSIBLY PARALLEL THE D 5 OR EUROPE HESTERN OR EASTERN HE POINTED OUT THAT HIS CNN POSITION AS PRESIDENT MAS NERELY DE FACTD 4 AND THAT HE HAS NOT ELECTED TO HIS CURRENT OFFICETw w HUNGER HAS THE BASIS FOR THE INSURGENCY RIOS SAID MILSON ADDED THE PEOPLE MUST BE CONVINCED THE GOVERNMENT CARES FOR THEN GET THE MINORITY OFF THE BACKS OF THE MAUORTTY - GUATEMALAN DEVELOPMENT IN TERMS OF - SOCIAL INTEGRATION NOT CEMENT PRODUCTION RISO NOTED THAT MAR MAS ILLEGAL AND PREVENTED THE ROLE OF BUT IN VIEM OF THE NEED TO MEET FORCE MITH FORCE - - - HE ASKED FORQ L MILITARY TRAINING MITHIN THE HESTERN SYSTEM OF - -THOUGHT 0N EL SALVADOR HE THOUGHT U 5 POLICY HRONG AND DUARTE RIGHT BECAUSE THE CURRENT GOES HAS BEEN BROUGHT TO A POLITICAL BASE MILITARY AND A BUSINESS THAT IS TOO DUARTE GOVERN- - MENT ENCORPASSED MORE SOCIAL GROUPS MEETING HITH MINAG LEOPOLDO SANDOVAL JULY 23 - 1 HAS CONFINEO TO EXCHANGE OF PLEASANTRIES ON THE COOPERATIVE MOVEMENT SUPPORT FOR THE PEACE - - CORPS THE MEDFLY PROGRAM AND APPROPRIATE 3- - IN RESPONSE TO THE 64-DOLLAR QUESTION ABOUT FOREIGN CREDIT NEEDS OF CONFIDENTIAL Approved For Release 2008 08 06 CIA- RDP84I300148R000200440037- 7 WW3 wman-w q Approved For Release 2008 08 06 CIA-RDP84BOO148R000200440037-7 CONFIDENTIAL 82 9130038 SCO PAGE 003 NC 9130038 TOR 2816342 JUL 82 AGRICULTURE THE MINISTER DWELT 0N REFORESTA- TIDN COMMENT CONCEIVABLY THE MINISTER HAS BEEN ASKED TO WATCH HIS TONGUE WHILE NEW ON THE JOB AFTER HE CREATED A FLAP LAST WEEK BY PUBLICLY SUPPORTING AGRARIAN REFORM IS A FDR SALVADDRANIZATION I OF COMMERCIAL AGRICULTURE END COMMENT 6 THE HELICOPTER TRIP TO THE COMBAT ZONE IN EL OUICHE DEPARTMENT JULY 24 MAS UNEVENTFUL IN TERMS OF INCIDENTS OF VIOLENCE THE GROUP PUT DOHN IN STA CRU2 DEL OUICHE AND JDYABAJ HHERE REP MILSON MET MITH LOCAL TROOP COMMANDERS THE CONGRESSMAN SAID HE HAS VERY FAVDRABLY IMPRESSED A LECTURE ON HEARTS AND FROM COLONEL COMMANDING THE STA CRUZ GARRISON HELL AS BY-THE APPARENT SKILL LEVEL OF THE GUATEMALAN ARMY REP HILSON TOLD EMBOFFS AFTERHARD THAT HELPING GUATEMALA PROCURE HELI- COPTERS AND COMMUNICATIONS EOUIPMENT IS A TOP 7 THE MEETING WITH THE ECONOMIC CABINET JULY 26 DOT INTO A CONCRETE EXCHANGE ON HAYS TO IMPROVE RELATIONS REP HILSON AND SECRETARY CONTRERAS HERE IN AGREEMENT ON THE NEED TO IMPROVE THE PETROLEUM PARTICULARLY TO ATTRACT MEDIUM AND SMALL EXPLORATION COMPANIES CONTRERAS SUGGESTED THAT USG GUARANTEES COVERING OIL EXPLORATION HOULO BENEFIT BOTH COUNTRIES TO MHICH ECONOMY MINISTER MATHEU ADDED THAT HE HAS HAD VERY POSITIVE MEETINGS MITH OPIC IN RECENT MONTHS ON THE FINANCIAL SIDE CENTRAL BANK PRESIDENT GONZALEZ DEL VALLE SAID THAT HE IS EXTREMELY PLEASED PROGRESS VITH THE IDB -AND HORLD BANK WHICH ARE WORKING ON TO DOUBLE AND TRIPLE RESPECTIVELY LENDING TO GUATEMALA 8 ECON MIN MATHEU THEN GOT TO THE MITTY-GRITTY MITH AN INOUIRY ON MOM TO IMPROVE COMMUNICATION HITH FRIENDS IN THE U S REP MILSON SUGGESTED HIRING PROFESSIONAL REPRESENTATION IN HASHINGTON AND INCREASING ECONOMIC TIES E G ATTRACTING OIL INVESTMENT SEVERAL STATES TD FDLLOM-UP QUESTION ON BEST USE OF THIN CHAMBERS OF COMMERCE THE CHAMBERS OF COMMERCE OF HOUSTON AND SAN ANTONIO POSSIBLY TO-BE UOINED BY OALLAS- FORT NORTH RECENTLY ESTABLISHED A CHAMBER -LINKAGE TO FURTHER CONTACTS THE RESPECTIVE BUSINESS SECTORS SEE GUTEMALA 3138 REP HILSON ADVISED MEETINGS MTTH PARTICULAR INDUSTRIES FROM TEXAS BEGINNING MITH PETROLEUM IT HAS SUGGESTED THAT PROFESSIONALS WORKING MITH THE OIL INDUSTRY SUCH AS GEOLOGISTS BE INCLUDED SUGGESTED SEPTEMBER AFTER COMPLETION OF THE NEH PETROLEUM LAM REP MILSON THEN ASKED THE GOG OFFICIALS MITH EMBASSY ASSISTANCE TO DRAM UP A PRIORITY LIST OF SECTORS VITH MHOM GUATEMALA PUBLIC AND PRIVATE SECTORS HOULD LIKE TO MEET TO INVESTMENT OPPORTUNITIES AND INDICATED HIS MILLINGNESS TO MITH ARRANGEMENTS 9 AFTER-REP WILSON AND HAD DEPARTED - MEETING WITH CABINET BUSINESSMEN CONFIDENTIAL 7 Approved For Release'deB OB OB 4 I f5 Approved For Release 2008 08 06 CIA-RDP84B00148R000200440037-7 CONFIDENTIAL 82 9130038 SCO PAGE 004 NC 9130033 TOR 2816342 JUL 82 ACCOMPANYING CODEL MADE ORAL PRESENTATION OF PROPOSAL TO-EXPLORE FOR HARD MINERALS IN GUATEM- MALA ALTHOUGH PROPOSAL MAY BE A LONG TIME GESTAT- ING GOG OFFICIALS APPEARED APPRECIATIVE OF REP ROLE IN BRINGING POTENTIAL INVESTORS TO GUATEMALA 10 IN TWO IMPROMPTU MEETINGS WITH THE PRESS REP WILSON STATED PURPOSE OF TRIP HAS TO GET TO KNOW NEEDS OF GUATEMALA FIRST HAND AS WELL AS TO LOOK INTO WAYS OF IMPROVING ECONOMIC COOPERATION PARTICULARLY REGARDING PETROLEUM HE COMMENTED THAT THE HUMAN RIGHTS SITUATION HAD IMPROVED AND THE U S PERCEPTION OF GUATEMALA RECOGNIZED THAT FACT HE JUDGED THE POSSIBILITY OF MILITARY SALES AS VERY GOOD- PRESS STORIES 27 WERE STRAIGHTFORNARD WITH ONE LEADING DAILY HEADLINGING THE PETROLEUM CONNECTION AND THE OTHER THE IMPROVED RELATIONS 11 COMMENT THE CONCRESSMAN AND HIS HOSTS MAOE IMPRESSIONS ON EACH OTHER REP AON HIS PARTY SAM FOR THEMSELVES THAT AT LEAST IN THE CAPITAL AND ANTIGUA 25 MILES ANAY BUSINESSMEN ARE SECURITY CONSCIOUS BUT ABLE TO CARRY ON NORMALLY THE CONGRESSMAN UNDERTOOK A NUMBER OF COMMITMENTS GOG OFFICIALS I E TO NORK ON PASSAGE OF THE CBI TO REMOVE BARRIERS TO MILITARY TRAINING AND SALES AND TO HELP STRENGHEN CUATEMALAN TIES AND FRIENDSHIPS IN THE U S REP NILSON PROTRAYED HIMSELF AS THE ONE MEMBER OF THE FOREIGN OPERATIONS SOOCOMNITTEE OF THE HOUSE APPROPRIATIONS COMMITTEE WHO IS FAVURABLY OISPOSEO IN GENRAL BOTH TO ECONOMIC AND MILITARY ASSISTANCE ABROAD ANO THEREFORE A KEY FIGURE IN THE LEGISLATIVE PROCESS ENO COMMENT 12- ACTION REQUEST FOR AND OPIC EMBASSY WOULD APPRECIATE MATERIALS ON CURRENT NORLWIDE POLICIES REGARDING INVESTMENTS IN PETROLEUM ADN HARD MINERALS SUCH AS BROCHURES BRIEFING MATERIALS OR OPIC BOARD OF DIRECTORS RESOLUTION END ACTION REQUEST TAYLOR END OF MESSAGE '4 CONFIOENTIAL CONFIDENTIAL -i Approved For Release 2008 08 06 CIA-RDP84B00148R000200440037-7 This document is from the holdings of The National Security Archive Suite 701 Gelman Library The George Washington University 2130 H Street NW Washington D C 20037 Phone 202 994-7000 Fax 202 994-7005 nsarchiv@gwu edu