LIMITED OFFICIAL USE PAGE 01 GUATEM 03803 220045Z 63 ACTION ARA-10 INFO OCT-01 ISO-00 CIAE-00 DODE-00 PM-03 H-02 INR-07 L-03 NSAE-00 NSC-05 PA-01 PRS-01 SP-02 SS-15 USIE-00 INRE-00 NSCE-00 SSO-00 FEA-01 EB-07 OMB-01 TRSE-00 COME-00 /059 W --------------------- 015035 O R 220015Z JUL 75 FM AMEMBASSY GUATEMALA TO SECSTATE WASHDC IMMEDIATE 7464 INFO AMEMBASSY TEGUCIGALPA AMEMBASSY SAN SALVADOR AMEMBASSY SAN JOSE AMEMBASSY MANAGUA AMEMBASSY PANAMA LIMITED OFFICIAL USE GUATEMALA 3803 E.O. 11652: N/A TAGS: PINT, EINV, GT SUBJECT: IDENTIFICATION OF DEL MONTE CONSULTANT 1. DOMINGO ALEJANDRO MOREIRA MARTINEZ ACKNOWLEDGED JULY 21 THAT HE HAD BEEN DEL MONTE'S "CONSULTANT" IN GUATEMALA. REVELATION MADE IN STATEMENT TO ATTORNEY GENERAL WHICH MOREIRA PUBLISHED IN TWO-PAGE PAID AD IN JULY 21 AFTERNOON PRESS. 2. MOREIRA IS A CUBAN-BORN NATURALIZED GUATEMALAN CITIZEN WHO CAME TO GUATEMALA SOON AFTER BATISTA'S OVERTHROW. HE QUICKLY ACQUIRED A REPUTATION AS A POLITICALLY-SHREWD OPERATOR, ONE WHO MADE THE RIGHT CONNECTIONS DURING THE YDIGORAS AND SUBSEQUENT GOVERNMENTS AND MANAGED TO BUILD UP SUBSTANTIAL FISH, POULTRY, AND MEAT EXPORTING BUSINESSES. 3. MOREIRA REPORTEDLY GAVE FINANCIAL ASSISTANCE TO THE LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 02 GUATEM 03803 220045Z ARANA CAMPAIGN AND THEREAFTER DEVELOPED EXCELLENT RAPPORT WITH PRESIDENT ARANA. DURING ARANA ADMINISTRA- TION IT WAS SAID THAT MOREIRA WAS ONE OF VERY FEW INDIVIDUALS WHO COULD VISIT ARANA WITH NO PRIOR APPOINTMENT. THIS CLOSE RELATIONSHIP HAS APPARENTLY CONTINUED. IN LATE 1974 MOREIRA, ANOTHER CUBAN EXILE NAMED SAMPEDRO, AND ARANA FORMED CAYMAN PETROLEO DE GUATEMALA; CAYMAN IS ONE OF 31 OIL COMPANIES CURRENTLY ANGLING FOR PETROLEUM SERVICE CONTRACTS (GUATEMALA A-81). 4. MOREIRA DEFENDED HIMSELF FROM BRIBERY CHARGES BY SAYING THAT "FOR THE ACCOMPLISHMENT OF MY JOB, IT WAS NOT NECESSARY FOR ME TO CONSULT WITH OR DEAL WITH ANY HIGH-LEVEL OR LOW-LEVEL OFFICIAL. MY OWN EXPERIENCE WAS SUFFICIENT." MANY GUATEMALANS ARE LIKELY TO VIEW WITH SKEPTICISM STATMENT THAT MOREIRA WAS PAID $500,000 FOR SERVICES WHICH DID NOT INCLUDE SPEAKING TO ANY GUATEMALAN OFFICIAL. 5. MOREIRA'S STATEMENT SHOWED SOME SENSITIVITY TO POSSIBILITY OF PROSECUTION FOR TAX EVASION. LEADING GUATEMALAN OFFICIALS HAVE SAID BOTH PUBLICLY AND PRIVATELY THAT IF CONSULTANT HAD FAILED TO REPORT PAYMENT, INCOME TAX CHARGES WOULD BE PRESSED. MAOREIRA ARGUED IN HIS STATEMENT THAT HIS SERVICES WERE CONTRACTED OUTSIDE GUATMALA AND MONEY WAS PAID OUTSIDE GUATEMALA, THEREFORE "I OWE NOTHING TO THE TREASURY IN THIS REGARD." 6. CARLOS MOLINA MENCOS, ARANA'S MINISTER OF ECONOMY, WHO HAD BEEN LEADING CANDIDATE IN PRESS SPECULATION REGARDING IDENTITY OF "CONSULTANT," CALLED ON AMBASSADOR JULY 21 APPARENTLY PREPARED TO ASSERT VIGOROUSLY HIS INNOCENCE AND APPEARED BOTH RELEIVED AND SOMEWHAT DEFLATED WHEN AMBASSADOR SHOWED HIM AFTERNOON PAPERS WITH MOREIRA STATEMENT. HE READILY AGREED THAT QUESTION EVERY- ONE WILL BE ASKING IS WHAT MOREIRA DID WITH MONEY, ALTHOUGH MOLINA ALSO POINTED OUT THAT ONLY OFFICIALS WITH SUFFICIENT AUTHORITY TO CHANGE ORIGINALLY NEGATIVE GOG DECISION ON DEL MONTE PURCHASE WERE PRESIDENT ARANA AND HIMSELF. MOLINA ADMITTED HE HAD CHANGED HIS OWN MIND LIMITED OFFICIAL USE LIMITED OFFICIAL USE PAGE 03 GUATEM 03803 220045Z ON THE SALE, BUT WITHOUT ANY HELP FROM MOREIRA. MOLINA SAID HE HAD ASKED ARANA WHETHER MOLINA'S EFFORTS TO CLEAR HIMSELF WOULD IN ANY WAY AFFECT ANY INTEREST OR FRIEND OR RELATIVE OF ARANA'S AND ARANA HAD TOLD HIM TO PRESS AHEAD. 7. MOLINA ALSO EXPRESSED CONCERN THAT IN CURRENT ATMOSPHERE ATTENTION WOULD TURN FROM DEL MONTE SALE TO EXMIBAL AND BOISE CASCADE (ELECTRIC COMPANY) TRANSACTIONS WHICH HE HAD ALSO HANDLED DURING HIS TENURE AS MINISTER, BUT IN CONTRAST TO BANANA COMPANY SALE HE HAD HANDLED EVERY DETAIL OF THESE LATTER NEGOTIATIONS HIMSELF AND COULD DEFEND THEM WITH EASE. MELOY LIMITED OFFICIAL USE