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DE RUEHPE #0336/01 0371600
ZNR UUUUU ZZH
R 061600Z FEB 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 3869
INFO RUEHBO/AMEMBASSY BOGOTA 4339
RUEHBU/AMEMBASSY BUENOS AIRES 2782
RUEHCV/AMEMBASSY CARACAS 0149
RUEHQT/AMEMBASSY QUITO 0998
RUEHLP/AMEMBASSY LA PAZ FEB SANTIAGO 1107
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC

UNCLAS LIMA 000336

SIPDIS

SIPDIS

DEPT FOR STAS, WHA/AND,/EPSC (Boyer, Bando, Corneille), EB/ESC/IEC
(Izzo)
DEPT FOR OES/STC (PBates), S/P (GManuel)
TREASURY FOR J. LEVINE
STATE PASS TO EXIM, OPIC, TDA
DEPT OF ENERGY FOR S. LADISLAW
USGS FOR J. WEAVER
ENERGY INFORMATION ADMINISTRATION FOR CHARLES ESSER

E.O. 12958: N/A
TAGS: OEXC OSCI EINV TSPL ETRD ECON PGOV SENV PE
SUBJECT: STAS VISIT: S&T RESEARCH GOALS AND CHALLENGES

¶1. SUMMARY: Science and Technology Adviser to the Secretary (STAS)
Dr. George Atkinson and delegation visited Peru on November 2 to
survey S&T capabilities.  The delegation met with the GOP's S&T
innovation agency CONCYTEC, the National Engineering and Agrarian
Universities, and the National Geographic Institute.  Research and
development, as well as science and engineering education, are
underfunded in Peru, but are a new priority for President Garcia.
The agencies and universities appear aligned with Garcia's goals of
stimulating economic development in poor areas. Research foci in the
next five years will concentrate on textiles, water and agriculture.
 A new IDB loan will help support S&T innovation in small
enterprises.  A universal theme was the desire for more cooperation
with U.S. universities and research institutions.  END SUMMARY.

¶2. The STAS Delegation visited Lima on November 2 as the first leg
of a multi-nation science and technology assessment. STAS Adviser
George Atkinson was accompanied by a delegation that included Deputy
Adviser Andrew Reynolds, Jefferson Science Fellows Dr. Kim Boyer and
Dr. Edward Samulski, Dr. Lee Schwartz, the Department Geographer,
STAS AAAS Fellow Dr. Christina McCain, and UPenn cancer researcher
Nathan Singh.  The delegation's objective, constrained by one day in
Lima, was to briefly survey current science and technology (S&T)
capabilities in Peru by visiting key universities and research
centers responsible for education, basic R&D, innovations, and
incubation of new business. The delegation was also interested in
exploring the relationship between innovation and economic
development in the country.

National Engineering University and Hydraulics Lab
--------------------------------------------- -----

¶3. The STAS Delegation visited the Science Department's Research
Institute at the Universidad National de Ingeneria (UNI).
Professors stressed a critical deficiency in the engineering
education system, especially limited research funding.  They also
cited inadequate exchange programs with U.S. universities; only
isolated opportunities are created by direct contact from U.S.
alumni. (Note: the professors had a limited awareness of the
Fulbright program but in any event said Peru needed many more
opportunities.) Universities from Switzerland and France have some
exchange programs, but most students go to Brazil on fellowships.
There is no national program for grants and GOP agency CONCYTEC (The
National Council for Science and Technology) handles only 300
fellowship grants in all facilities and disciplines of the public
university system. Funding constraints are the main reason, they
said, for Peru's inability to produce quality engineers in the
mining and hydrocarbons.

¶4. At the National Hydraulic Laboratory, the delegation saw their
latest irrigation pilot project, a full-scale hydraulic model for
remediation of heavy metal contamination and soil erosion.  Though
underfunded, the GOP is prioritizing irrigation research to boost
agricultural exports.  An important research focus was mitigating
the water-related effects of the El Nino phenomenon, which
historically has resulted in flooding of the coast and drought on
the moist eastern side of the Andes. (A mild El Nino is currently
occurring in Peru.)

NATIONAL COUNCIL OF SCIENCE, TECHNOLOGY AND INNOVATION
--------------------------------------------- ---------

¶5. The delegation met with CONCYTEC, the GOP agency that promotes
S&T innovation. CONCYTEC's long term plan for innovation that will
coordinate with other strategic plans such as the National
Competitiveness Plan, as well as Regional government, Social
Development and Environmental sustainability plans. The plan was
begun under the Toledo administration (2000-2005), but as amended,
aligns with President Garcia's development priorities for both the
poor and the nation's most promising export sectors:  forestry,
biodiversity (medicines, biofuels), textiles, Alpaca wool
production, aquaculture (shrimp in the north, trout in the south),
mining and agriculture.

¶6. CONCYTEC representatives explained how Peru would use a $36
million Interamerican Development Bank (IDB) loan package to the GOP
for S&T development. The loan is designed to offset the current
disincentive for investments in technological innovation; it will
leverage private sector funding for innovation in textiles,
agriculture and fishing/fish farming. At least $18 million of the
IDB loan will be disbursed as matching grants for technological
research by universities or research institutions. The rest will be
used as loans to private firms or local governments to for
technological innovation. A multi-sector executive council will
direct the program, with a CONCYTEC official as president.

MEETING AT NATIONAL AGRARIAN UNIVERSITY (UNALM)
---------------------------------------

¶7.  UNALM contacts included Dr. Igancio Lombardi, the delegated
Scientific Authority for the mahogany listing under the Convention
Against Trafficking in Endangered Species (CITES).  UNALM ag
researchers were enthusiastic about President Garcia's emphasis on
developing efficient crops for the impoverished mountain and jungle
residents.  Researchers in crop science for Peru's diverse
environments -- arid coast, high mountains and soil-poor jungle -
were optimistic about future innovations in agricultural
productivity but concerned about lack of research funding.  Silva
culturists are researching forest plantations and some of the
fast-growing trees and other plants that hold promise for biofuels
and wood products.

FUNDING FOR MAHOGANY RESEARCH?
-----------------------------

¶8.  UNALM hosts complained of few opportunities to work with the
U.S. universities they held in high esteem.  Dr. Lombardi noted that
his inventory of mahogany, as well as species such as cedar that are
also threatened by overlogging, could use more funding and U.S.
assistance. Dr. Lombardi emphasized deforestation as an important
problem, as well as the lack of adequately incorporating economic
valuation of forests and needs of local communities in forest
management.  He noted that President Garcia's government is focusing
on reforestation in mountain habitats, envisioning his "Highland
Exporter" program as a way to promote export of mountain livestock
and crops.  The scientists agreed on the need to find alternatives
to the coca production which is causing deforestation and
pollution.

NATIONAL GEOGRAPHIC INSTITUTE
-----------------------------

¶9. Embassy's U.S. National Geospatial Agency (NGA) representative
hosted Geographer Schwartz and others for a visit to Peru's National
Institute of Geography. The director agreed to explore the
delegation's suggestion that the Institute work with CONCYTEC and
UNI to coordinate mapping tools for development priorities such as
aquaculture and watershed management, using the IDB loan.  The
director lauded NGA's support for many years for mapping technology.
 Although the Institute is not at the cutting edge of mapping and
imagery analysis, with NGA help it has a great deal of untapped

MEETING WITH DCM
----------------

¶10. STAS Atkinson and Science Fellow Samulski described the
Jefferson Science Fellows Program to the DCM, emphasizing the
potential for Fellows to spend time at an embassy working on a
predetermined project. The DCM was receptive, noting that Embassy
Lima often has finite, well-defined technical/engineering-oriented
project needs that a practicing scientist could readily move along.

COMMENT
-------

¶11. The delegation found well-trained Peruvian scientists and
engineers who hunger for more interaction with the U.S.
organizations they admire so much.  Most of the representatives we
talked with were relatively unaware of Mission-supported programs
such as Fulbright, IVP, TDA and FAS programs.  ESTHoff is following
up with PAS to forward packets of materials to each of the
institutions with whom we met.  The time is ripe for USG cooperation
in water research, for example to improve production of agricultural
products, many of which are exported to the U.S.  With a steady
increase in U.S. investment in mining and hydrocarbons, improving
engineering education would benefit both nations. USAID, FAS, FCS
and ESTHoff will work with CONCYTEC and the universities with whom
we met to explore areas for future cooperation, and how the
Environmental Cooperation Agreement that would accompany the Peru
Trade Promotion Act could be used to foster S&T cooperation. As a
result of the recent Forest Transparency Workshop held in Lima, OES
is organizing a voluntary visitor program for foresters to visit
Yale University and other centers of U.S. forestry excellence.  Post
will also explore how a Jefferson Science Fellow and/or AAAS Fellow
could help advance mutual interests.

¶14. This cable was cleared with the STAS delegation.
STRUBLE