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National Trade Data Bank
ITEM ID     : ST BNOTES GUATEMALA
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - GUATEMALA

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | GUATEMALA

US DEPARTMENT OF STATE
BACKGROUND NOTES SERIES, GUATEMALA, APRIL 1992
PUBLISHED BY THE BUREAU OF PUBLIC AFFAIRS

OFFICIAL NAME:  Republic of Guatemala

PROFILE

Geography

Area: 108,780 sq. km. (42,000 sq. mi.); about the size of Tennessee.
Cities: Capital--Guatemala City (pop. 1.9 million). Other major cities--
Quezaltenango (72,000 est.), Escuintla (87,000 est.).  Terrain: Mountainous,
with fertile coastal plain. Climate: Temperate in highlands; semitropical on
coasts.

People

Nationality:  Noun and adjective--Guatemalan(s).  Population (1990 est.):
9 million.  Annual population growth rate: 3%.  Ethnic groups:  Mestizo
(mixed Spanish-Indian), Indian.  Religions:  Roman Catholic, Protestant,
traditional Mayan.  Languages:  Spanish, 23 Indian languages (Quiche,
Cakchiquel, Kekchi).  Education: Years compulsory--6.  Attendance--35%.
Literacy--52%.  Health: Infant mortality rate--73/1,000.  Life expectancy--
60 yrs., 44 yrs.  (Indian pop.).  Work force:  Agriculture--36%. Industry
and commerce--24%. Services--34%.  Construction, mining, utilities--4%.

Government

Type: Constitutional democratic republic. Independence: September 15, 1821.
Branches: Executive--president. Legislative--Congress.  Judiciary--Supreme
Court of Justice (9 members).  Subdivisions:  22 departments and Guatemala
City.

Political parties:  Christian Democratic Party (DCG), Union of the
National Center (UCN), National Liberation Movement (MLN), Nationalist
Authentic Central (CAN), Democratic Institutional Party (PID), Democratic
Party of National Cooperation (PDCN), National Renewal Party (PNR),
Revolutionary Party (PR), Social Democratic Party (PSD), National United
Front (FUN), Organized Nationalistic Unity (UNO), Solidarity Action Movement
(MAS), Popular Alliance 5 (AP5), and Emerging Movement for Harmony (MEC).

Central government budget (1990 est.): $1.1 billion (10% of GDP).

Flag: Blue and white vertical stripes. Centered is a coat of arms with a
green and scarlet quetzal bird perched on a scroll framed by a wreath.

Economy

GDP (1990 est.): $10 billion.  Annual growth rate (1990): 3%. Per capita GDP:
$1,300.  Natural resources: Oil, nickel, timber.  Agriculture (23% of GDP):
Products--corn, beans, coffee, cotton, cattle, sugar, bananas, timber, rice,
cardamom.  Manufacturing (13% of GDP): Types--prepared food, textiles,
construction materials, tires, pharmaceuticals.

Trade (19% of 1990 GDP): Exports--$1.1 billion: coffee, cotton, sugar, meat,
cardamom, bananas, petroleum.  Major markets--US 39%, Central American Common
Market (CACM) 25%, Germany 5%, Japan 3%.  Imports--$1.6 billion: fuels and
lubricants, industrial machinery, motor vehicles, iron and steel.  Major
markets--US 40%, CACM, and Europe. Major suppliers--US 39% of imports, CACM,
Mexico, Europe, Venezuela, Japan.

Exchange rate (1991): US$1= 5.10 quetzals.

US assistance: Bilateral official development assistance FY 1990:
economic $118 million; military $3.3 million (suspended December 1990).

PEOPLE

More than half of Guatemala's population are descendants of Maya Indians.
Ladinos--Westernized Mayans and mestizos (Spanish-Indian)--live in a crescent-
shaped area running from the northern border on the Pacific, along the coastal
plains, and up through Guatemala City to the Caribbean.  Most of Guatemala's
population is rural, although urbanization is accelerating.

The predominant religion is Roman Catholicism, which many Indians have
superimposed onto their traditional forms of worship. Protestantism and
traditional Mayan religious practices account for an estimated 30% of the
population. Although the official language is Spanish, it is not universally
understood by the Indians.

HISTORY

The great Mayan civilization flourished throughout much of Guatemala and
surrounding territories before the Spanish conquest. In 1523-24, the Mayans
were defeated by Pedro de Alvarado. Under Spanish colonial rule the Captaincy-
General of Guatemala extended throughout Central America. The first colonial
capital, Ciudad Vieja, was ruined by flood and earthquake in 1542. Survivors
founded Antigua, the second capital, in 1543. In the 17th century, it became
one of the richest capitals in the New World. Always vulnerable to volcanic
eruptions, floods, and earthquakes, it was destroyed by two earthquakes in
1773, but the remnants of its magnificent Spanish colonial architecture have
been preserved as a national monument. The third capital, Guatemala City, was
founded in 1776, after Antigua was abandoned.

Since gaining independence from Spain on September 15, 1821, first as part of
the Mexican Empire and then as part of the American Federation, Guatemala has
had a turbulent history. After the federation's dissolution in 1840, the
country passed through a series of dictatorships broken only by short periods
of representative government.

With the overthrow of Gen. Jorge Ubico's dictatorship in 1944 by the "October
Revolutionaries"--dissident military officers, students, and liberal
professionals--Guatemalans set about modernizing the society. Social reforms
begun under President Juan Jose Arevalo (1945-50) were continued by his
successor, Col. Jacobo Arbenz.

Col. Arbenz permitted a communist party (Guatemalan Labor Party) to gain
legal status in 1952. By the mid-point of Arbenz's term, communists
controlled key peasant organizations, labor unions, and the governing
political party, holding some key government positions.

Despite most Guatemalans' attachment to the ideals of the 1944 revolution,
with which Arbenz identified his administration, key segments of society
and the military viewed his policies as a menace. The army refused to defend
the government when a group led by Col. Carlos Castillo Armas invaded the
country from Honduras in 1954 and eventually took over the government.
The assassination of President Castillo in 1957 precipitated a period of
confusion from which Gen. Miguel Ydigoras Fuentes emerged as president in
1958.

A 1960 revolt by junior military officers failed, and some of the participants
went into hiding, creating the nucleus of a guerrilla movement which
established close ties with Cuba.  In early 1963, a new military group,
headed by Col. Enrique Peralta Azurdia, restored order. However, the
unconstitutional nature of the regime created disaffection, played upon by
the guerrillas, especially among students. A Constituent Assembly drafted a
new constitution, promulgated in September 1965. The moderate Revolutionary
Party won the presidency by a plurality in the 1966 elections.

Shortly after President Julio Cesar Mendez Montenegro took office, the army
launched a major counter insurgency campaign that largely broke up the
guerrilla movement in the countryside.  The guerrillas concentrated their
attacks in Guatemala City, where they assassinated many leading figures,
including US Ambassador John Gordon Mein, in 1968. The new president, Gen.
Carlos Arana (1970-74), declared a state of siege, and an intense anti-
terrorist campaign forced terrorist groups to reduce their activity markedly.
Gen. Kjell Laugerud Garcia was declared winner of the disputed 1974 elections.
During his administration, political violence decreased, and there was greater
freedom of expression.

Gen. Fernando Romeo Lucas Garcia was inaugurated on July 1, 1978, and promised
to attack vigorously Guatemala's socioeconomic problems; however, political
violence increased.  Three principal left-wing guerrilla groups--the Guerrilla
Army of the Poor (EGP), the Revolutionary Organization of Armed People (ORPA),
and the Rebel Armed Forces (FAR)--conducted economic sabotage and targeted
government installations and members of government security forces in armed
attacks.

These three organizations have since combined with a fourth guerrilla
organization, the outlawed communist party (PGT), to form the
Guatemalan National Revolutionary Unity (URNG). At the same time, extreme
right-wing groups of self-appointed vigilantes, such as the Secret Anti-
Communist Army (ESA) and the White Hand, tortured and murdered students,
professionals, and peasants, whom they suspected were involved in leftist
activities.  As the March 7, 1982, elections approached, political violence
steadily increased as guerrillas sought to disrupt the electoral process.

The winner by plurality was former Defense Minister Gen. Anibal Guevara.
Opposition parties, however, claimed electoral fraud. On the morning of
March 23, 1982, the National Palace in Guatemala City was surrounded by
army troops commanded by junior officers. The coup leaders asked Brig. Gen.
Efrain Jose Rios Mont to negotiate the departure of Gen. Lucas. Rios Mont
had been the candidate of the Christian Democratic Party in the 1974
presidential elections and was widely believed to have lost by fraud.

Rios Mont headed a junta that canceled the 1965 constitution, dissolved
the Congress, suspended political parties, and canceled the election law.
On June 9, Rios Mont accepted the resignations of the two other junta members
and assumed the title of President of the Republic.  The Rios Mont Government
imposed a state of siege on July 1, 1982, severely restricting civil
liberties, and created a system of special courts, which were completely
independent of the regular judiciary. Politically, Rios Mont formed an
advisory Council of State to assist him in returning the nation to democracy.
In 1983, a series of electoral laws was promulgated, the state of siege was
lifted, and political activity was once again allowed. The Rios Mont
Government scheduled Constituent Assembly elections for July 1, 1984.

Guerrilla forces denounced the new government and stepped up their attacks.
Rios Mont sought to combat them through military actions and economic reforms,
or, in his words, through "rifles and beans."  The government also formed
civilian defense forces and achieved success in containing the insurgency.
Disturbances occurred within the government on June 29, leading to the
imposition of a state of alarm and a shake-up of Rios Mont's advisers.  Coup
rumors continued, and on August 8, 1983, Rios Mont was deposed by the
Guatemalan Army.

The Minister of Defense, Oscar Humberto Mejia Victores, was proclaimed head
of state on August 8. Gen. Mejia claimed that a group of "religious fanatics"
was abusing their positions in the government and that corruption had to be
weeded out. The Mejia Government quickly abolished the controversial courts
of special jurisdiction. Constituent Assembly elections were held on July 1,
1984.  On May 30, 1985, after 9 months of debate, the Constituent Assembly
finished drafting a new constitution which went into effect on January 14,
1986. Chief of State Mejia called general elections--president, congress,
mayor, and city councils--for November 3, 1985.  A run-off election was held
on December 8.  The Christian Democratic Party of Guatemala (DCG) candidate,
Vinicio Cerezo, won the presidency, receiving almost 70% of the vote.
The DCG won 51 of the 100 seats in the national congress.

The first 2 years of Cerezo's administration were characterized by a stable
economy and a marked decrease in the level of politically motivated violence.
The Cerezo Government was able to withstand two attempted coups (May 1988
and May 1989) that marked the onset of renewed political and general violence.
The Cerezo Administration was heavily criticized for its lack of willingness
to investigate or prosecute cases of human rights violations. The final 2
years of Cerezo's Government were also marked by a failing economy, strikes,
protest marches, and allegations of widespread corruption.  The government's
inability to deal with many of the nation's problems--infant mortality,
illiteracy, deficient health and social services, and rising levels of
violence--contributed to a sense of discontent among the population.

Presidential and congressional elections were held on November 11, 1990,
and Jorge Serrano was inaugurated on January 14, 1991. These elections
marked the first transition from one democratically elected civilian
government to another in modern times.

Current Political Situation

In his inaugural speech, Serrano announced an ambitious human rights program
with its centerpiece being an end to immunity from prosecution for human
rights violations. He also made clear his intention to control the army.
Serrano announced that his government, with the support of the army, would
meet with the guerrillas to negotiate an end to the 30-year-long insurgency.

Serrano's first 6 months as president saw continuing violence and an elevated
crime rate, but the administration kept its promise and initiated a series of
serious negotiations with the URNG.  Serrano's Government also prosecuted
corrupt government officials and has arrested the former heads of the national
electrical utility and the head of the national telephone company. The
government has also begun to serve warrants against members of the para-
military civil patrols accused of serious human rights violations, including
murder, and has prosecuted and convicted police officers accused of beating
and, in some cases, murdering street children.

Principal Government Officials

President--Jorge SERRANO Elias
Vice President--Gustavo ESPINA Salguero
Minister of Foreign Affairs--Gonzalo MENENDEZ Park
Ambassador to the US--Juan Jose CASO-FANJUL
Ambassador to the UN--Francisco VILLAGRAN de Leon
Ambassador to the OAS --Vacant

Guatemala maintains an embassy in the United States at 2220 R Street, NW,
Washington, DC  20008 (tel. [phone]), and consulates in New York,
Miami, Chicago, Houston and Los Angeles, as well as an honorary consul in
New Orleans.

HUMAN RIGHTS

Upon its inauguration in January 1986, the new civilian government announced
that ending political violence and establishing the rule of law would be its
top priorities. To that end the President undertook a reorganization of the
police forces and disbanded the Department of Technical Investigations (DIT),
the plain-clothes arm of the National Police widely acknowledged to have
engaged in extortion, robbery, and political kidnappings and assassinations.
The Supreme court also embarked on a series of reforms designed to end
corruption and improve the efficiency of the legal system.  New laws of
habeas corpus and "amparo," or court ordered protection, are designed to
give citizens legal recourse when they feel their rights are threatened by
the government.  The Congress, in accordance with the constitution, has
established a legislative human rights committee, and in 1987 approved the
establishment of a Human Rights Ombudsman.

The number of politically motivated deaths and kidnappings is substantially
lower than in the early 1980s, but important human rights problems remain,
involving the use of force and abuses by political extremists and some
individual and former members of the security forces.  These problems are
aggravated by a legacy of violence, vigilante justice, and common crime,
with which the judiciary and democratic institutions have thus far developed
only limited capacity to cope.

In the waning days of the Cerezo administration, the US Government took
several actions to signal official displeasure over the lack of progress in
investigation of several notorious human rights abuse cases.  In December of
1990, the US suspended military assistance to Guatemala until the army
personnel involved in the June 1990 murder of American citizen Michael Devine
were brought to justice.

The Serrano Government is on record as being unwilling to tolerate human
rights abuses.  The nomination of a former human rights deputy ombudsman
as Minister of Interior, with responsibility for the police, and a cabinet-
level commission to ensure the prosecution of human rights cases are hopeful
signs that the Serrano Administration is fully committed to establishing
civilian authority over security forces and instituting broad respect for
human rights and the rule of law.

DEFENSE

The mission of the Guatemalan armed forces is defense against external
threats, internal security, and national development.  The president as
commander in chief acts through his minister of defense.  Day-to-day
operations are run by the chief of staff and the national defense staff.
The Guatemalan army has a total strength of some 43,000, with subordinate
air force (700) and navy (1,300) elements. The army is operationally organized
into 19 military zones and 3 strategic brigades. The air force operates three
air bases, the navy has two.

When the army divested itself of its governing role through democratic
elections, it rededicated itself to the professionalization of its forces
and combat against the insurgents.  The armed forces are equipped with
armaments and materiel from the United States, Israel, Yugoslavia, Taiwan,
Argentina, Spain, and France.  Guatemala is a signatory to the Rio Pact and
is a member of the Central American Defense Council (CONDECA).

Since the early 1960s, the military has been engaged in counter insurgency
operations against Marxist-Leninist guerrillas.  The army has witnessed
considerable progress since 1982 and has reduced the insurgency to a point
that it does not currently threaten national stability. In March 1990, the
National Reconciliation Commission (NRC), formed under the Esquipulas II
process, and the guerrilla umbrella organization (URNG) met in Oslo, Norway,
to negotiate a framework for achieving a negotiated political settlement to
the 30-year internal conflict. The agreement called for a series of meetings,
chaired by the NRC, between URNG representatives, political parties, business
leaders, Christian and popular groups, and the government. This process was
designed to build a consensus for dialogue within Guatemalan society and hope
for achieving a negotiated solution to one of the world's oldest continuous
insurgencies. Such a solution would greatly contribute to an improvement in
Guatemala's human rights and economic situation.

ECONOMY

Guatemala's return to civilian democratic rule in 1986 spurred a reversal of
the steep economic decline that had reduced real per capita income by nearly
20% in the first half of the 1980s. It also marked the beginning of a trend
toward economic diversification and improved international competitiveness.
These improvements were made possible by economic policies that promoted
financial stability and growth through exports.

These policies have included:  raising taxes and reducing the fiscal deficit
(Guatemala's tax burden is still among the lowest in the world); restraining
growth of domestic credit, especially to the public sector; eliminating most
price controls (only basic staples remain subject to controls); and unifying
the (previously multi-tiered) exchange rate.

In November 1989, the government completely freed the exchange rate, after
having freed interest rates in August.  The changes in the exchange
rate and interest rate systems in particular are far-reaching reforms that
should make the economy more resilient. Assuming continuing political
stability, Guatemala is well-positioned for rapid economic growth over the
next few years.

Responding to Guatemala's dramatically changed political and economic policy
environment, the international community has mobilized substantial resources
to support the country's economic and social development objectives.  The
United States, in particular, and West Germany, to a lesser extent, have
provided significant amounts of balance-of-payments assistance.  Together
with other donor countries (especially France, Italy, Spain, and Japan),
they have also stepped up considerably development project financing.  US
official assistance to Guatemala since 1986 totals some $800 million--doubling
the total of all US assistance to Guatemala in the preceding 40 years.

Guatemala's economy is dominated by the private sector, which generates nearly
90% of gross domestic product (GDP).  The government's participation in the
productive process is limited largely to public utilities and several
development oriented financial institutions. The government, however,
continues to exercise a significant regulatory role.  Agriculture is the
dominant economic activity, contributing about a quarter of GDP and accounting
for more than 75% of exports. There is no heavy industry.

Most manufacturing is devoted to light assembly and food processing
operations and is still geared mainly toward the domestic and Central
American markets. However, a marked trend toward diversification, both of
products and exports, has emerged since 1986. In particular, textile and
apparel exports to industrialized country markets (especially the United
States) and non-traditional agricultural exports (NTAE) are booming. (NTAEs
are essentially all agricultural products other than coffee, cotton, sugar,
and meat.  Some NTAEs already being exported in significant volume include
winter vegetables, fruits, and cut flowers).

Problems hindering economic growth include illiteracy and low levels of
education among the population, an inadequate capital market, and
infrastructure constraints particularly in the transportation and economic
sectors.

FOREIGN RELATIONS

Guatemala's major diplomatic interests are related to regional security
issues and, increasingly, to regional development and economic integration
issues.  Guatemala has been an active participant in the Contadora and
Esquipulas processes.  It recently hosted the June 1990 Central American
Economic Summit, attended by the Presidents of El Salvador, Honduras, Costa
Rica, Nicaragua, and for the first time, Panama.  It also originated the idea
of, and has been the strongest advocate for, a Central American Parliament.

Its long-standing  claim to Belize caused a dispute with the United Kingdom.
On September 21, 1981, the UK granted Belize its independence. In 1986,
Guatemala and the UK re-established commercial and consular relations, and
in July 1987, they re-established full diplomatic relations. Guatemalan
President Cerezo and Belizean Prime Minister Price met twice in 1990 to
discuss bilateral relations, and in December 1989 Guatemala sponsored Belize
for permanent observer status in the OAS. In September 1991, Guatemala
recognized Belize's independence and established diplomatic ties.

US-GUATEMALAN RELATIONS

Relations between the United States and Guatemala traditionally have been
good.  United States policy in Guatemala includes:

        -- Supporting the institutionalization of democracy;
        -- Supporting broad-based economic growth;
        -- Encouraging Guatemalan respect for human rights and the rule of law;
        -- Cooperating with the Guatemalan Government to combat narcotics
                 trafficking;
        -- Supporting Central American integration and regional peace efforts,
                 including the dialogue process with the Guatemalan insurgency;
        -- Maintaining mutually beneficial trade relations; and
        -- Supporting a solution of the Belize dispute acceptable to the
                 parties involved.

Principal US Officials

Ambassador--Thomas F. Stroock
Deputy Chief of Mission--Philip B. Taylor III

The US Embassy in Guatemala  is at Avenida la Reforma 7-01, Zone 10, Guatemala
City (tel. 31-15-41).

Travel Notes

Travel advisory: The Department of State recommends that travellers to
Guatemala exercise caution when travelling in certain areas of conflict
or frequent common crime.  Travellers are also advised to register with the
Embassy upon arrival in Guatemala City.

Clothing:  Spring or summer-weight clothing is needed most of the year;
woolens are practical November through February.

Customs: Visas are easily obtainable at the Guatemalan Embassy in Washington,
DC and at consulates in six US cities are required for stays of more than 30
days.  For shorter visits, purchase tourist cards at ticket counters of
airlines serving Guatemala.

Health:  Good medical services are available in Guatemala City.  There has
been an outbreak of cholera in Guatemala, mainly located in the western
departments that border with Mexico.  Because of altitude, however, the
capital is free of most tropical diseases. There is a risk, however, of
malaria in rural areas, except in the central highlands.  Tap water is not
potable, and fruits and vegetables should be prepared carefully.  Although
not required for entry, immunizations against hepatitis, typhoid, polio, and
tetanus are recommended for extended stays. Travelers should consult a
physician for most recent information.

Published by the United States Department of State
Bureau of Public Affairs
Office of Public Communication
Washington, DC
April 1992
Editor: Peter A. Knecht.

Department of State Publication 7798.  Background Notes Series -- This
material is in the public domain and may  be reprinted without permission;
citation of this source is appreciated.

For sale by the Superintendent of Documents, US Government Printing Office,
Washington, DC  20402.