This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 03 LIMA 003416 
 
SIPDIS 
 
E.O. 12958: DECL: 08/03/2015 
TAGS: ASEC PGOV SNAR ETRD PE
SUBJECT: CUZCO COCA REGULATION - NO LEGAL IMPACT BUT 
POLITICAL TENSIONS BUILD 
 
REF: A. LIMA 3264 
 
     ¶B. LIMA 303...

id: 38244
date: 8/9/2005 14:18
refid: 05LIMA3416
origin: Embassy Lima
classification: CONFIDENTIAL
destination: 05LIMA3264
header:
This record is a partial extract of the original cable. The full text of the original cable is not available.



----------------- header ends ----------------

C O N F I D E N T I A L SECTION 01 OF 03 LIMA 003416 
 
SIPDIS 
 
E.O. 12958: DECL: 08/03/2015 
TAGS: ASEC PGOV SNAR ETRD PE
SUBJECT: CUZCO COCA REGULATION - NO LEGAL IMPACT BUT 
POLITICAL TENSIONS BUILD 
 
REF: A. LIMA 3264 
 
     ¶B. LIMA 3033 
     ¶C. LIMA 2813 
     ¶D. LIMA 2699 
 
Classified By: PolCouns Alex Margulies Reason: 1.4 (b,d) 
 
(U) 1. SUMMARY: The regulation implementing the Cuzco 
Regional Government's ordinance on coca production/commerce 
was published in the official gazette on 8/1; it largely 
conforms with current national policy.  The Cabinet 
authorized lawsuits challenging the constitutionality of the 
Cuzco and Huanuco ordinances on coca, which has put Prime 
Minister Carlos Ferrero, Housing Minister Carlos Bruce and 
national anti-drug agency DEVIDA director Nils Ericsson at 
odds with Fernando Olivera (leader of the pro-GOP FIM party, 
to which Cuzco Regional President Cuaresma belongs).  We 
expect the Constitutional Tribunal to declare the regional 
ordinances unconstitutional, but the political consequences 
of the regional governments' pro-coca initiatives remains to 
be determined.  An unofficial Embassy translation of the 
Cuzco regulation follows in Para 7. END SUMMARY. 
 
¶2. (SBU) On 8/1 the Regional Government of Cuzco published in 
the official GOP newspaper "El Peruano" its regulation to 
implement the coca ordinance previously released on 6/12 (Ref 
C, D).  The regulation declares coca produced in three Cuzco 
valleys (La Convencion in La Convencion Province, Yanatile in 
Calca Province, and Kosnipata in Paucartambo Province) to be 
a botanical resource and part of the regional, natural, 
biological, cultural, and historical patrimony of Cuzco.  The 
regulation limits the scope of coca to be considered legal to 
that destined for medicinal, religious, cultural, ceremonial, 
and chewing purposes.  The regulation goes on to limit the 
production of licit coca to that within the law and to those 
producers who are legally registered.  (COMMENT: The limits 
established in the regulation essentially reiterate the 
existing definitions for licit coca production, and do not 
appear to go beyond current national law.  Though the GOP has 
an outdated list, the issue of who is legally registered will 
likely be a source of future debate. END COMMENT.)  The 
regulation seeks to promote research on the benefits of coca 
and calls for a Regional Institute for Scientific Research 
dedicated to the topic. 
 
3) (C) The GOP filed a challenge to the constitutionality of 
the Cuzco ordinance with the Constitutional Tribunal (TC) on 
7/26 before the regulation was issued.  On 8/1 the GOP 
similarly challenged the constitutionality of the Huanuco 
regional ordinance (Ref A).  The regional governments have 30 
days to respond after which the TC convenes a hearing 
allowing both parties to present their arguments.  The Cuzco 
ordinance hearing is scheduled for 9/26 or 9/27, with the TC 
expected to issue a decision in October. TC President Javier 
Alva Orlandi noted in the press that this is the first case 
of the national government challenging the constitutionality 
of a regional ordinance.  The primary issue will be national 
versus regional authority over the issue of coca control.  On 
8/2 President Toledo told the Ambassador that the GOP was 
not/not going to back down from the case the government has 
filed with the TC. 
 
4) (C) Fernando Olivera, Peru's Ambassador to Spain and 
leader of the Independent Moralizing Front (FIM) party, a 
member of President Toledo's governing coalition, has 
publicly come to the defense of Cuzco Regional President 
Cuaresma, also of the FIM party. (COMMENT: Olivera is now in 
Lima and expected to soon receive a cabinet appointment, most 
likely Foreign Relations.  END COMMENT.)  Meanwhile, Prime 
Minister Carlos Ferrero and Nils Ericsson, the head of the 
Antidrug Agency, DEVIDA, have publicly criticized the 
ordinance, while popular Housing Minister Carlos Bruce has 
threatened to resign if the GOP backs off from its 
constitutional challenge to the regional ordinances.  Press 
continues to highlight the ongoing political spat between the 
FIM and GOP leaders punctuated by Olivera calling for 
Ericsson's resignation. 
 
¶5. (C) The Ambassador met with Olivera on 8/1.  Olivera said 
that the Cuzco regulation makes clear that the ordinance is 
in conformity with the national law.  The Ambassador told 
Olivera that he was more concerned with the political than 
the legal implications of the ordinance. The Ambassador said 
that Regional President Cuaresma had opened the door for 
courting the cocaleros -- others were now outbidding him and 
Cuaresma himself was treating the issue in a populist manner. 
The Ambassador also deplored divisions on drug policy within 
the GOP that the Cuzco ordinance had provoked. 
 
¶6. (C) COMMENT: The regional ordinances will likely be 
declared unconstitutional by the TC.  The political effect of 
these regional challenges to GOP drug policy remain to be 
seen. The current infighting within the GOP, between the 
FIM's Olivera, PM Ferrero/DEVIDA's Ericsson, and the 
President's Peru Posible Party demonstrates the issue's 
divisive potential.  The cocaleros have been silent in 
response to the Cuzco regulation, which legally delivers 
nothing new to them, likely viewing the ordinance itself as a 
victory.  END COMMENT. 
 
¶7. (U) Begin text of the ordinance: 
 
WHEREAS: 
 
By means of Regional Ordinance number 031-2005-GRC/CRC, dated 
June 21, 2005, it was determined that the coca leaf is a 
natural, biological, cultural, and historical regional 
patrimony of Cuzco, as well as a botanical resource, 
integrated into the culture and cosmological vision of the 
Andean world and to the cultural and medical customs and 
traditions; 
 
The Ordinance must be implemented through regulatory 
standards that complement its contents in an appropriate 
manner in order for it to be fully enforced, in view of the 
fact that it is a matter which concerns the public and 
citizens, and since its contents do not transgress any law; 
 
With the authority granted by the Regional Governments 
Organic Law, Law 27867, amended by Law number 27902, in its 
Article 40; 
 
RESOLVES: 
 
Sole Article: To Authorize the Regional Ordinance No. 
031-2005-GRC/CRC Regulation, which is made up of seven 
Articles and whose content follows makes up this Executive 
Regional Decree, is to be published in the "El Peruano" 
Official Daily. 
 
Transcribe it, record it and notify it. 
 
CARLOS RICARDO CUARESMA SANCHEZ 
President 
 
REGULATIONS 
 
Regional Ordinance 
Number 031-2005-GRC/CRC 
Regarding the Coca Leaf 
 
Article 1: Purpose of the Regulation 
The purpose of this regulation is to set complementary 
standards to aid in the appropriate application of Regional 
Ordinance number 031-2005-GRC/CRC, that determines that the 
coca leaf is a natural, biological, cultural, historical, and 
regional patrimony of Cuzco, as well as a botanical resource. 
 This regulation has been enacted in accordance with 
provisions included in Law 27867, Organic Law of Regional 
Governments. 
 
Article 2: Scope of Application 
The scope of its application are the production areas 
referred to in Article 2 of the Regional Ordinance, found in 
the Department of Cuzco and encompasses the coca valleys of: 
La Convencion, in the province of the same name; Yanatile in 
the province of Calca and Kosnipata in the province of 
Paucartambo. 
 
Article 3: Identification of the Coca Valleys or Basins 
Coca valleys are areas called by that name, which are located 
in: La Convencion in the province of the same name; Yanatile 
in the province of Calca and Kosnipata in the province of 
Paucartambo, all of them belong to the Department of Cuzco 
and are acknowledged to be coca basins, in accordance with 
legal norms and the demarcation made at a national level, 
which ENACO S.A. is responsible for identifying. 
 
Article 4: The Legal Nature of the Coca Leaf Production 
The legal nature of the coca leaf production is limited to 
the valleys which are specifically mentioned in the Ordinance 
and refers to those that are designed for medical, religious, 
cultural and ceremonial use, as well as traditional chewing, 
practiced in the Peruvian Andean Region, whose purposes are 
protected by the regional regulation. 
 
Article 5: Limits to the Production of Coca Leaf 
The production of coca leaf must not exceed the limits set by 
the appropriate legal regulations and covers those producers 
who are registered in accordance to law. 
 
Article 6: Promotion and Incentives for the Research on the 
Attributes of the Coca Leaf 
The promotion and incentives granted to foster research of 
the attributes of the coca leaf, shall be complemented 
subject to available financial and economic resources 
provided by the Cuzco Regional Government, and in compliance 
with the Agreed Strategic Regional Plan for Cuzco through 
¶2012.  This research shall promote its beneficial, medical, 
scientific and nourishing aspects, and shall foster its 
industrialization in those aspects with the participation of 
the private sector, as well as the cooperation of 
professional and university institutions with a bearing on 
that issue. 
 
Article 7:  Establishment of the Regional Institute for 
Scientific Research 
In order to foster the promotion and research of the 
attributes of the coca leaf, the establishment of the 
Regional Institute for Scientific Research will be promoted, 
with the participation of the Cuzco universities, the 
producers, coca leaf research institutions, the civil society 
and country and city dwellers, devoted to the research and 
promotion of the benefits of the coca leaf. 
 
End Text. 
STRUBLE 

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