GUATEMALA RATES LOW FOR ANTI-DRUG EFFORTS

Pervasive Corruption Cited In White House Report;
U.S. Stops Short Of Imposing Sanctions

WASHINGTON -- President Bush dropped Guatemala from the list of allies
in counternarcotics efforts Friday, concluding it had "failed
demonstrably" during 2002 to meet international drug control standards.

Guatemala and 22 other countries were graded on their counternarcotics
performances last year. It was the first time that Guatemala had
received a failing grade, unlike Myanmar and Haiti, which also were
singled out for poor performances, as they were a year ago.

Pervasive corruption was a principal reason for Guatemala's poor
rating. "Police stole twice the quantity of drugs they officially
seized," said Paul Simon, the State Department's top counternarcotics
official.

Under law, Bush can impose economic sanctions against countries that
do not measure up on counterdrug policy. Bush waived sanctions on
national security grounds for both Guatemala and Haiti.

"These two countries will receive assistance, notwithstanding their
counternarcotics performance," White House press secretary Ari
Fleischer said.

Simon said an aid cut for Guatemala would only lead to a further
deterioration of drug-fighting institutions. He said aid to Haiti will
be continued primarily on humanitarian grounds.

Sanctions were continued against Myanmar, also known as Burma. This
was symbolic because that country has not received U.S. foreign aid
for years.

Simon said Myanmar took some useful steps but added that large-scale
poppy cultivation and opium production continued as did trafficking in
methamphetamine.

He said Haiti remains a major transshipment point for drugs, primarily
cocaine, moving from South America to the U.S. market. He described
Haiti's counterdrug commitment as very weak.

In a memo to Secretary of State Colin Powell, Bush also decried an
increase in illegal synthetic drugs entering the United States,
especially Ecstasy from Europe. He said the Netherlands is a major
clandestine production center for Ecstasy.

Rep. Cass Ballenger, R-N.C., chairman of the House International
Relations subcommittee on the Western Hemisphere, welcomed Bush's
decision on Guatemala.

"Regrettably, the Guatemalan government deserves to be decertified,"
he said.

In Guatemala City, Foreign Minister Edgar Gutierrez criticized Bush's
decision. It could create "a bad atmosphere for business, investments
and the development of the financial and banking system," Gutierrez
said.