The Guatemalan Government has recalled its ambassador to the United States for consultations one day after a senior American official is alleged to have accused President Alfonso Portillo's administration of being involved in corruption and drug trafficking.

Foreign Minister Gabriel Orellana said he wanted the ambassador to clarify the comments reportedly made by the US Assistant Secretary of State for Latin America, Otto Reich.

On Thursday, Mr Reich is reported to have told American legislators that leaders of organized crime, narcotics, and immigrant smuggling gangs had very close ties with the highest levels of government in Guatemala.

Mr Reich also said the Bush administration was weighing how to pressure Guatemala to take measures to combat the trade with illegal drugs, most of which ended up in the US, he maintained.

From the newsroom of the BBC World Service