Fifty-sixth session

Agenda item 44

The situation in Central America: procedures for the establishment of

a firm and lasting peace and progress in fashioning a region of peace, freedom, democracy and development

United Nations Verification Mission in Guatemala

Report of the Secretary-General

Summary

I. Introduction

1. This is the seventh report on the verification of compliance with the peace agreements signed by the Government of Guatemala and the Unidad Revolucionaria Nacional Guatemalteca (URNG), submitted pursuant to the mandate given to the United Nations Verification Mission in Guatemala (MINUGUA) by the General Assembly in resolution 51/198 B of 27 March 1997. This mandate was extended until 31 December 2002 by resolution 56/223 of 24 December 2001, in which the General Assembly repeated its request that I should keep it informed. This report covers the period from 1 April 2001 to 30 April 2002.

MINUGUA - Seventh report

2. During the reporting period, the Mission continued its verification activities, preserving the structure and deployment that I described in my previous report (A/55/973). It also continued to support the process of coordinating with the agencies, programmes and funds of the United Nations so that the peace agreements provide the framework for the technical and financial assistance programmes.

MINUGUA - Seventh report

3. In 2001, the peace process made little progress. However, with the aim of establishing targeted sectoral partnerships on urgent topics, the Commission to Follow-up the Implementation of the Peace Agreements, which is composed of representatives of civil society and one member of Congress, submitted priority agendas for the three branches of government. Subsequently, in an effort to meet the expectations of various members of civil society, the Commission presented to the Minister of Finance 12 measures linked to the Fiscal Pact and a programme giving priority to spending for peace, to be taken into consideration during drafting of the budget for the year 2002. Implementation of the agendas and the 12 measures was slow and showed little progress.

MINUGUA - Seventh report

4. The Congress approved some measures provided for in the Fiscal Pact, such as an increase in some taxes and the strengthening of the State’s sanctioning capacity. Since these measures were approved, the internal political debate has polarized. The Government was accused of corruption and there were anti-Government demonstrations which were aimed at prompting its resignation. In August 2001, the private sector staged a protest strike, which turned violent in some provinces. The Government overreacted, declaring a state of siege in the department of Totonicapán.

5. In June 2001, my Chef de Cabinet and Assistant Secretary-General, Mr. Iqbal Riza, visited Guatemala, at my request. He suggested that a frank and constructive dialogue be initiated, which would make it possible to resolve current problems and overcome the climate of tension that prevailed in the country at that time. At the end of January 2002 and at the Government’s request, a delegation from the Organization of American States (OAS) visited the country and concluded that the conditions for dialogue did not exist.

6. As of the end of 2001, many of the commitments that had been rescheduled for that year had not been fulfilled (A/55/973, para. 4). Despite the efforts made as regards taxes, it was clear that the target for the tax burden provided for in the Agreements would not be attained. There are worrying signs of militarization within the civilian authorities, especially at the Interior Ministry. The Ministry of Defence received a number of credits, which increased its budget to 0.96 per cent of Gross Domestic Product (GDP). This increase represents a serious breach of the spending target commitment set out in the Peace Agreements. On the other hand, social programmes related to the peace process encountered financial difficulties. The Ministries of Education and Health suffered real constraints regarding access to funds, especially with regard to investment projects.

7. The Government, with the assistance of the Inter-American Development Bank, organized the meeting of the Consultative Group on Guatemala, which took place in Washington, D.C., from 10 to 12 February 2002. The Peace Agreements and the degree of progress made towards their implementation were the central focus of the agenda. At the Government’s invitation, a broad and diverse sector of Guatemalan civil society participated in the meeting, which was held in a climate of mutual respect, dialogue and readiness to work together to find ways to make progress with the Peace Agreements.