From: rich@pencil.cs.missouri.edu (Rich Winkel)
Subject: El Rescate Report 8/31-9/7
Followup-To: alt.activism.d
Originator: rich@pencil.cs.missouri.edu
Organization: PACH
Date: Sat, 12 Sep 1992 01:08:21 GMT

/** reg.elsalvador: 170.0 **/
** Topic: report from el salvador, 8/31-9/7/ **
** Written  4:50 pm  Sep 11, 1992 by elrescate in cdp:reg.elsalvador **
REPORT FROM EL SALVADOR
August 31-September 7, 1992

Salvadorans suffered a heavy economic blow this week with 
the simultaneous implementation of the "IVA" (value-added 
tax), and hikes in utility rates, gasoline and public 
transportation. Opposition organizations vehemently 
condemned the measures and are planning massive protest 
demonstrations on for Independence Day, September 15. 
However, one union leader pointed out "two intelligent 
decisions" by the government: implementing the IVA 18 months 
before the election and making several concessions to private 
enterprise to obtain its participation in the Economic/Social 
Forum. A concession was also made to the opposition with the 
passage of the Consumer Protection Law after months of delay. 

Corruption charges continued this week against several 
government institutions including CEL, as Colonel Ochoa Perez 
bid farewell to the power company and, apparently, to politics. 
He told reporters his retirement was his own decision: "I'm not 
leaving like a cork from a bottle of champagne." Asked if he 
would be leaving ARENA, he replied, "just as I am not 
necessary in CEL, nor will I be necessary in the leadership of 
the party." (1) Ochoa said he will remain an "Arenero", "but I 
have my own way of thinking which may not be in agreement 
with the leadership." (2)
        
The FMLN political party was legally constituted on September 
1, and one leader predicted a victory by a left coalition in 
1994. "The greatest advantage the FMLN has," declared Gerson 
Martinez, "is its political instinct." (3) Eighty-seven year old 
Miguel Marmol also expressed confidence in a victory: "Without 
the security forces, without repression, we will win." (4)

Meanwhile, no incidents were reported this week along the 
border with Honduras as both countries await the World Court 
decision on disputed areas. Presidents Cristiani and Callejas 
will receive the ruling together at the El Amatillo checkpoint 
on September 11.

"ARENA says: 'First El Salvador, second El Salvador, third El 
Salvador,' but it really is: 'First the IMF, second the World 
Bank, third AID.'"
Ruben Zamora (5)

President Cristiani insisted the inflationary effect from the 
IVA would "not be permanent" but admitted the yearly inflation 
rate would be "10-12%" rather than the 8% predicted earlier in 
the year by government economic planners. Despite the leak of 
a World Bank report critical of the government for delaying 
implementation of the IVA, the President denied that the tax 
and other structural adjustment measures have been "imposed" 
by international institutions and declared that the tax is part 
of the government economic program. (6) As the IVA went into 
effect, CEL authorities announced a 30% hike in electric rates 
and the Director of Transportation informed the press that a 
35-50% increase in public transportation rates would go into 
effect immediately.


"The population is being condemned to pay the foreign debt 
with its hunger."
NotiMundo Editorial (7)

Opposition political parties announced a "National Civic 
Protest" against the IVA on September 1, to be "spontaneous, 
unorganized and non-partisan." (8) PCN deputies who had voted 
for the IVA agreed to support the protest, "as long as it does 
not become the personification of the left." (9) On the morning 
of the first of September, bus fares and gasoline prices were 
up and confusion reigned as businesses and customers 
attempted to interpret the IVA regulations. There were 
individual protests and complaints on radio talk shows, but the 
"Civic Protest" was largely limited to several opposition 
deputies who symbolically banged on pots and pans in the 
parking lot of the National Assembly at mid-day. "The 
government is massacring the people economically," declared 
Ruben Zamora. (10)

Union leaders denounced the recent approval of $45 million in 
credits to coffee growers and the reduction of taxes on beer 
and cigarettes as concessions to private enterprise, promising 
a series of protests including a massive demonstration on 
September 15. "They have bowed to pressure from the IMF and 
AID," said Marco Tulio Lima, "and have shown their willingness 
to sell the sovereignty of the country to the highest bidder." 
(11) Opposition leaders demanded a reduction of the military 
budget and adjustment of the tax burden. "We're not against 
taxes," explained a UNTS leader, "but rather against the way 
they are doing it. Those who have more should pay more." (12) 
FENASTRAS promised that ARENA "will pay the bill" in 1994 
for its concessions to coffee growers and beer and cigarette 
monopolies, "while burdening the poor with economic 
measures." (13)

"These taxes are part of the patriotic contribution to peace."
Dr. Armando Calderon Sol (14)

ARENA leaders insist the IVA will provide the revenue 
necessary in order to implement the peace agreement. Party 
President Calderon Sol justified the tax saying, "the war, 
destruction, violence and death in our country have a cost. We 
want all Salvadorans to contribute to the peace accords." (15) 
Assembly President Roberto Angulo urged the population to use 
"common sense" and "not be manipulated" by the opposition. 
(16) A PCN Deputy warned, however, of the complexities of 
administering the new tax. "If not well-managed," he said, "it 
will cause problems for the government." (17) ARENA Deputy 
Mario Valiente admitted the party could suffer repercussions 
in the 1994 election from the economic measures but said, "it 
would be worse to assume the political cost of doing nothing 
and then be without services." (18) According to DIARIO DE 
HOY, there were "no negative reactions" to the economic 
measures except from "urban terrorist squads" who 
"threatened to burn busses if fares were increased." (19)

The President of ANEP criticized the government for 
implementing the IVA simultaneously with other price 
increases, contending, "It is too great a shock." (20) The IVA 
tax should be 5% instead of 10%, according to the FMLN, and 
utility rates and transportation fares should be frozen: "This is 
an attack against the dignity of the population." (21)

"We will join the Forum without yielding on any of our 
positions."
Camilo Bolanos, President of ANEP (22)

Following months of internal debate and public discussion, on 
September 1 ANEP announced its decision to participate in the 
Economic/Social Forum. However, President Camilo Bolanos 
conditioned the participation of the powerful private 
enterprise organization, warning ANEP will withdraw if there 
are any further land occupations. "We agree that 'concertacion' 
is necessary," declared Bolanos, "but with a statesman's, not a 
politician's, mentality." (23)

Ruben Zamora called ANEP's decision "a positive step" and 
added, "This is not the moment for recriminations about the 
past but to look forward to the future." (24) The small 
business council, CONAPES, announced its "unconditional" 
participation in the Forum and referred to ANEP's 
announcement as "appropriate and opportune." (25)

The Consumer Protection Law required by the peace accords 
has been stuck in the Assembly Political Commission for 
months since President Cristiani returned the bill with 
recommendations. On September 3 the legislation was finally 
passed. "We believe this is only an aspirin for the economic 
cancer," declared CD Deputy Silvia Barrientos, (26) "but at 
least it gives consumers one mechanism of protection." (27)

"Something is rotten in Denmark."
Dr. Francisco Lima (28)

Jurist Dr. Francisco Lima is stepping up the attack against 
government corruption. After publicly charging ARENA with 
corruption on a television interview several weeks ago, 
opposition deputies proposed that he head a commission to 
investigate corruption cases, and President Cristiani asked 
that he prove the allegations. In response, the jurist appeared 
again this week on television, declaring, "There are cases 
where any person of average intelligence can realize that 
something is rotten which should be investigated." Lima 
claimed he was not criticizing the President but attempting to 
cooperate: "I don't want him to become another Collor de 
Mello," he said, referring to scandals which threaten to topple 
the current Brazilian government. (29)

Dr. Lima enumerated a number of cases which merit 
investigation including El Espino and the privatization of 
banks, where, "in some cases" minorities have purchased more 
shares than legally permitted. He also charged that CEL 
recently purchased a $44 million gas turbine engine without 
taking bids or consulting the Assembly. CEL then awarded a 
scandalous $20 million contract to a firm for installing the 
unit when a competitor had submitted a bid for half that price. 
Lima cited another recent incident where a government 
contract for pharmaceuticals went to a firm owned by 
President Cristiani "at double the price" offered by another 
company. 

Asked about the controversial Rene Garcia case, Dr. Lima said 
he met with the former Supreme Court process server in prison 
several weeks ago. Garcia told him he had received an offer of 
freedom if he signed a statement exonerating Supreme Court 
officials from charges of corruption. "If I don't sign I am going 
to rot in jail," Garcia said. He signed a document accusing 
Ruben Zamora and others of "manipulation" of his case and was 
released from Mariona Prison on September 4. Garcia and his 
family reportedly left the country immediately for the United 
States. (30)

Sounding very much like a presidential candidate, Dr. Calderon 
Sol called on the Attorney General to investigate charges of 
corruption: "What is Mr. Attorney General doing? Mr. Attorney 
General some people have denunciations. Intervene! Investigate! 
Corruption cannot go unpunished. We hope ARENA champions the 
fight against corruption!" (31) The Attorney General responded 
that "despite limited resources" his office is actively 
investigating corruption by public officials in institutions 
including CONADES, the Banco Agricola, the Banco de Fomento 
Agropequario, the Banco Capitalizador as well as 
"embezzlement by some city government officials." (32)

Although an Assembly sub-commission investigation 
determined that "no violations of the law" occurred during the 
privatization of the Banco de Desarrollo e Inversion, the final 
report did admit that an "intent of abuse was detected" by the 
Central Reserve Bank. (33) A BCR official explained that "a 
group" attempted to purchase 55% of the shares but the 
purchases were "disqualified." (34)

During the PDC government, "more people were stealing less," 
remarked Ruben Zamora. "Now there are fewer, but they are 
stealing more." (35) On September 5 a judge ordered the arrest 
of two former Ministers of Public Works, the former President 
of the Central Reserve Bank, and three executives of a 
construction company, all charged with participation in a $13 
million fraud scheme which occurred during the Duarte 
administration. (36)

"We will continue to be revolutionary."
Schafik Handal (37)

The FMLN political party was officially established on 
September 1 in the Camino Real Hotel. The ceremonial signing 
by 125 founders, including the legendary Miguel Marmol, was 
attended by diplomats, political, religious, social and labor 
leaders as well as international guests. "The fact that we are 
here in the capital and in this hotel cannot be interpreted to 
mean that we were given permission," declared Schafik Handal. 
"These spaces have been won with our struggle."

Handal referred to persistent rumors of renewed violence after 
October 31, saying, "the Salvadoran people will respond" if 
there is an attempt "to repeat the 70's." "People are going 
around saying, 'wait until October 31, then you will see who is 
who in this country'. In the face of these threats we want to 
say that we will never be afraid...It is ingenuous to think that 
after all that has happened in this country, October 31 is the 
'punto final'." The FMLN leader insisted that 100% of the 
agreements must be honored: "Any other interpretation is an 
attempt to distort the accords." (38)

The FMLN party is based on thirteen "ideological, political, 
moral and historic principles" including: "revolutionary 
humanism; the primacy of civil society; a democratic-
revolutionary ideology of change; the promotion and defense of 
women's rights; the recovery and development of the 
environment, and the historic vocation of serving the interests 
of the humble majority." (39)  

Party organizers will collect 6000 signatures in the coming 
days, twice the number required, and a public ceremony will be 
held on September 13. According to Eugenio Chicas, the party 
could be fully legalized within fifteen days following the 
presentation of signatures. (40)

On August 31, 129 former FMLN combatants entered the 
National Civil Police Academy as members of the first class. 
The night before one cadet commented, "it won't be easy, but it 
won't be impossible either. Tomorrow we will be inside the 
walls of the Academy making a new history for our country. 
Tomorrow, for us and the people, history begins. The revolution 
continues." (41)

Meanwhile, on September 7 the press received a communique 
from the "Frente Revolucionario Salvadoreno" (FRS), claiming 
to represent ex-combatants and soldiers. The FRS charged that 
the FMLN General Command has forgotten its "revolutionary 
principles" and denounced a "conspiracy" between the FMLN 
General Command and the government: "The dignity of a 
combatant cannot be bought with machetes and hoes," referring 
to the basic assistance packages given to demobilized 
combatants. The FRS called on ex-combatants to join and 
warned of sabotage to busses and the electrical infrastructure. 
(42)

"It's a difficult process but, little by little, they are 
advancing."
Lt. Cuellar, Atlacatl Battalion (43)

The "Reynaldo Nochez Marroquin" counterinsurgency battalion 
of the First Brigade was demobilized this week, and members 
of the Atlacatl Battalion are learning "animal husbandry and 
cheese-making" (44) in preparation for civilian life. Military 
dexterity exercises were held in several garrisons and soldiers 
of the CITFA battalion participated in a campaign called 
"United Against Crime," giving lectures to teenagers on 
delinquency. (45) The Chamber of Commerce and Fusades signed 
contracts with the National Reconstruction Office to provide 
vocational training for ex-combatants of both armies, and 
Minister to the President, Dr. Oscar Santamaria, promised 
"substantial" cuts in the military budget next year as the army 
is reduced.

Meanwhile, as soldiers prepare for civilian life, tensions are 
reportedly high in the officer corps as younger "tandas" 
attempt to dislodge the powerful "tandona." According to a 
story released this week, a "very heated meeting" took place 
two months ago between Minister of Defense Ponce and Colonel 
Mariano Munguia Payes, second-in-command of the First 
Brigade. Munguia Payes, a "close collaborator of President 
Duarte" and a very popular officer, was later removed from his 
post by the High Command and will reportedly be exiled to an 
assignment abroad. According to the unnamed source of the 
report, some younger officers are "confident" that the results 
of the Ad-Hoc and Truth Commissions will "contribute to 
destabilizing" the "Tandona." (46)

A former assistant director of the National Police escaped an 
assassination attempt on September 4 in Sonsonate, 
apparently ordered by someone within the military structure. 
Colonel Joel Alejandro Sanchez Paredes, now retired, stated 
that two young men on a motorcycle fired at his vehicle with 
M-16s. He attributed the incident to "personal vengeance": "As 
the head of the investigations department I had to investigate 
many members of the Armed Forces involved in criminal 
activities...I'm not involved in politics, I am purely military 
without any political participation...But I discard the 
possibility that this was an attempted robbery. There was a 
plan, their mission was to eliminate me." (47)

The three members of the Truth Commission arrived on 
September 6 for another short visit to the country, and the Ad-
Hoc Commission members will depart for New York on 
September 16 to complete their final report. On September 4 
Eduardo Molina reported that the Ad-Hoc had only interviewed 
and evaluated 200 of the 2013 officers and revealed that no 
captains, first or second lieutenants had been evaluated. (48)

"The September 16 evaluation will be very complex, very 
delicate."
Dr. Iqbal Riza (49)

ONUSAL Director Dr. Iqbal Riza said this week that the October 
31 cease-fire deadline is still "feasible" but "won't be easy." 
On September 16 Dr. Riza and U.N. Assistant Secretary for 
Peace Operations, Marrack Goulding, will present an evaluation 
of the implementation process to the U.N. Secretary General.
Dr. Riza commented on the importance of the ONUSAL Mission 
as a model for the new role of the United Nations following the 
end of the Cold War. Since the El Salvador mission was 
installed, the U.N. has also taken on peace operations in 
Yugoslavia, Somalia and Cambodia. "The experiences of this 
mission are of great importance to us," said Riza, who added 
that ONUSAL has exceeded its original mandate of simple 
verification due to the complexities of the implementation 
process: "We are involved to an unexpected degree." (50)

ONUSAL Interim Human Rights Director Roberto Rodriguez 
spoke candidly about the human rights situation in a separate 
interview. Asked why the latest human rights report focuses 
on government violations, Rodriguez explained that the mission 
made "observations, criticisms and recommendations" to the 
FMLN when they were required, "but the State is the principle 
and only guarantor of the law...The circumstances which 
provoked violations by the FMLN have disappeared." The 
violence attributed to the government is not necessarily direct 
action by agents of the State, "but rather due to the failure to 
guarantee a state of law."

Questioned about the crime wave, Rodriguez said ONUSAL 
investigations have found a "high level" of participation by 
members of the military or National Police. He also expressed 
concern about the continued threat posed by clandestine groups 
which "in one way or another are protected within an 
impressive framework of impunity...which allows them to 
operate with great freedom." (51) 

SOURCES: 1. DIARIO DE HOY, 9/1/92; 2. Radio YSFF, 8/31/92; 3. 
DIARIO LATINO, 9/5/92; 4. IBID; 5. TV 6, 9/1/92; 6. Radio YSU, 
8/31/92; 7. NotiMundo, 9/1/92; 8. TV 12, 8/31/92; 9. IBID; 10. 
TV 6, 9/1/92; 11. DIARIO LATINO, 9/2/92; 12. Radio 
Venceremos, 9/2/92; 13. DIARIO LATINO, 9/2/92; 14. TV 6, 
9/3/92; 15. TV 12, 9/1/92; 16. LA PRENSA GRAFICA, 9/1/92; 
17. TV 12, 9/1/92; 18. TV 6, 9/1/92; 19. DIARIO DE HOY, 
9/2/92; 20. TV 6, 9/1/92; 21. Radio YSU, 9/4/92; 22. TV 12, 
9/1/92; 23. IBID; 24. TV 2, 9/2/92; 25. DIARIO DE HOY, 9/3/92; 
26. Radio YSU, 9/4/92; 27. TV 12, 9/3/92; 28. TV 12, 8/31/92; 
29. IBID; 30. TV 12, 9/4/92; 31. TV 12, 9/2/92; 32. LA PRENSA 
GRAFICA, 9/4/92; 33. DIARIO DE HOY, 9/1/92; 34. DIARIO DE 
HOY, 9/4/92; 35. TV 12, 9/3/92; 36. LA PRENSA GRAFICA, 
9/5/93; 37. Event, 9/1/92; 38. IBID; 39. DIARIO LATINO, 
9/1/92; 40. TV 12, 9/3/92; 41. Radio YSFF, 8/31/92; 42. Radio 
YSU, 9/7/92; 43. TV 6, 9/3/92; 44. IBID; 45. DIARIO DE HOY, 
1/4/92; 46. Radio YSFF, 9/2/92; 47. TV 12, 9/6/92; 48. Radio 
YSU, 9/5/92; 49. TV 12, 9/2/92; 50. IBID; 51. TCS, 9/4/92.

Copyright  1992, El Rescate Human Rights Department. This 
report may be quoted and partially reprinted on condition that 
El Rescate be cited as the source.


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