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Last Updated: Friday, 10 September, 2004, 22:21 GMT 23:21 UK
Guatemalan army to open records
Former Guatemalan President Alfonso Portillo
Portillo left Guatemala under a cloud
Guatemala's military has been forced to open up its records to officials investigating alleged corruption under former President Alfonso Portillo.

Investigators are trying to trace about $100m in funds allegedly transferred to the military between 2001 and 2003.

The army argued that its records were a state secret - an argument rejected by an appeals court on Friday.

Mr Portillo left Guatemala for Mexico in February under a cloud of corruption allegations - which he denies.

The former president has said he fled because he could not get a fair trial in Guatemala.

President Oscar Berger - who succeeded Mr Portillo in January - welcomed the investigation, saying it was part of the transformation of the military.

Three army generals have been banned from leaving Guatemala while the inquiry proceeds.

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