Pubdate: Sat, 01 Feb 2003 Source: San Antonio Express-News (TX) Copyright: 2003 San Antonio Express-News Contact: http://www.mysanantonio.com/expressnews/ Details: http://www.mapinc.org/media/384 GUATEMALA CROSSED OFF LIST WASHINGTON - President Bush dropped Guatemala from the roster 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 Guatemala had received a failing grade, unlike Myanmar and Haiti. 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. 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 only would lead to a further deterioration of drug-fighting institutions. He said aid to Haiti will be continued on humanitarian grounds. Sanctions were continued against Myanmar, also known as Burma. 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. In a memo to Secretary of State Colin Powell, Bush decried an increase in illegal synthetic drugs entering the United States, especially ecstasy from Europe. He said the Netherlands is a major production center for ecstasy. The president said Canada has become a primary source of pseudoephedrine and is an increasing source of high-potency marijuana. 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. - --- MAP posted-by: Derek