VZCZCXYZ0032
RR RUEHWEB

DE RUEHPE #3273/01 2711209
ZNY CCCCC ZZH
R 281209Z SEP 07
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 6986
INFO RUEHBO/AMEMBASSY BOGOTA 5122
RUEHBR/AMEMBASSY BRASILIA 7604
RUEHLP/AMEMBASSY LA PAZ SEP QUITO 1480
RHMFISS/DEPT OF STATE AIR WING PATRICK AFB FL
RHEHOND/DIRONDCP WASHDC
RHMFISS/COGARD INTELCOORDCEN WASHINGTON DC
RULSJGA/COMDT COGARD WASHINGTON DC//G-CI/G-M/G-OLE//
RUCOCGR/COMLANTAREA COGARD PORTSMOUTH VA
RUWDQAA/COMPACAREA COGARD ALAMEDA CA

C O N F I D E N T I A L LIMA 003273 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR INL/LP 
STATE FOR WHA/PPC 
ONDCP FOR LT COL RONALD GARNER 
 
E.O. 12958: DECL: 09/06/2017 
TAGS: SNAR KCRM ASEC PREL PE
SUBJECT: NAS MONTHLY REPORT, AUGUST 2007 
 
REF: A. LIMA 2927 
     ¶B. LIMA 2917 
     ¶C. LIMA 2940 
 
Classified By: Susan Keogh, NAS Director.  Reason 1.5 (d) 
 
--------- 
SUMMARY 
--------- 

¶1. (U) The key developments in August 2007: 
 
** Joint operations by the Peruvian National Police and Army 
have captured a total of 28 Shining Path terrorists. 
 
** To date, CORAH has eradicated 5,480 hectares of coca and 
eliminated 29,595 square meters of seedbeds. 
 
** In support of USAID, eradication started in Alternative 
Development communities that are still growing coca. 
 
** NAS Aviation reaches helicopter availability goal of 16, 
while demand for flying hours remained high in August. 
 
** The NAS/DynCorp/PNP aviation operations passed the INL/A 
ARMS inspection with satisfactory and commendable ratings. 
 
** An Advanced Officer Tactical Training School will begin in 
September to train officers for jungle operations. 
 
** Peruvian Customs found 525 kg of cocaine HCL mixed in 18 
MT of guano fertilizer. 
 
** So far this year, Peruvian Customs at Lima Airport have 
seized more cocaine (3 metric tons) than in all of 2006. 
 
** NAS-supported interdiction team seizes 51 liters of opium 
latex in Chiclayo. 
 
** NAS is analyzing the pros and cons of supporting the 
operation of container scanners in Peruvian ports. 
 
** NAS is combating a resurgence in pro-coca ideology via an 
activist media program. 
 
** NAS Money Laundering Project joined forces with OAS/CICAD 
to present a series of anti-money laundering programs. 
 
** NAS instituted a top-to-bottom analysis of the Strategic 
Plan for Community Anti-Drug Coalitions to improve results. 
END SUMMARY 
 
---------------------------- 
GOP SEIZES SENDERO SUSPECTS 
---------------------------- 

¶2. (C) Two Huallaga Front (Peruvian National Police/Peruvian 
Army) operations have captured a total of 28 Sendero Luminoso 
(Shining Path or SL) suspects in the past two weeks (Ref A). 
The most recent operation on August 25 captured 2 suspects 
who are believed to be bodyguards of the Upper Huallaga SL 
Committee capo "Artemio," as well as participants in a June 
ambush near Tocache that resulted in the deaths of a 
prosecutor and 3 police.  Meanwhile on August 25-27, 
Sendero-type attacks occurred in illegal coca plantations in 
Tocache where eradication operations are ongoing; IEDs 
injured 3 CORAH workers.  The successful Huallaga Front 
collaboration is a positive change and indicates government 
seriousness in tackling the growing nexus between the SL and 
narco-trafficking.  President Garcia is determined not to 
repeat the mistakes of his previous Administration, when 
terrorism became a national nightmare, by confronting active 
Sendero remnants east of the Andes.  We anticipate violent 
reaction in the region to the most recent arrests. 
 
--------------------------------------------- ------------- 
CORAH UPROOTS MILLIONS OF COCA PLANTS AMID TIGHT SECURITY 
--------------------------------------------- ------------- 

¶3. (U) As of August 29, CORAH has eradicated a total of 5,480 
hectares and eliminated 29,595 square meters of seedbeds of 
illegal coca.  CORAH finished working in the La Morada area 
on August 22.  The previous day CORAH uprooted an estimated 
4,691,240 plants from 65 different fields, totaling 123.10 
hectares.  This figure represents a one-day record for manual 
eradication in the Andes, and quite possibly in the world. 
The three-month total, from June 1 until August 22, is 3724 
hectares, more than double the total for the first 5 months 
of the year (Ref B).  Since August 20, PNP and CORAH 
rotations in the field are taking place every 6 days (5 
nights) in the Santa Lucia Area in order to save flight 
hours.  During this period, DIRANDRO fielded 400 police to 
provide security. 
 
¶4. (U) On August 25, CORAH started eradicating in the San 
Miguel sector located northwest of Santa Lucia.  Operations 
started in this area to support USAID in ensuring that 
communities that signed Alternative Development agreements 
remain coca-free.  CORAH has a history of encountering IEDs 
in San Miguel.  So far, 3 booby traps have been found and an 
additional 2 exploded injuring 6 eradicators.  The injuries 
have not been severe since the eradicators are now using 
protective gear.  Eradication numbers are relatively low 
because of safety measures being taken against IEDs. 
 
--------------------------------------------- -------------- 
HELICOPTER CRISIS ABATED, BUT STILL EXCEEDING FLYING HOURS 
--------------------------------------------- -------------- 

¶5. (U) Helicopter availability for this month reached the 
forecast goal of 16 helicopters by the third week in August. 
The additional DynCorp phase maintenance teams are processing 
the helicopters more rapidly than anticipated, so as the 
UH-2s are returned to operational status, others are brought 
in for phase inspection.  The training efforts conducted 
during July to reduce the over-torques and over-powers has 
resulted in not having any aircraft being grounded for 
unscheduled maintenance in August. 
 
¶6. (U) It is still possible that NAS still could exceed its 
contractual flying-hours, so each NAS program has been 
allocated a percentage of the remaining flight hours through 
October 31.  Nonetheless, August flight hours were exceeded 
by 15 percent.  One reason was the U.S. response to the 8.0 
magnitude earthquake that devastated the city of Pisco and 
the surrounding area on August 15.  Two UH-2s were deployed 
from Palmapampa to Pisco to assist in the GOP's disaster 
relief operations.  The two aircraft flew 46 hours in going 
to/from the area and providing relief support while in Pisco. 
 The Beechcraft 1900D also flew additional missions in 
support of the Embassy's earthquake relief operations.  The 
FAP C-26 aircraft--funded by NAS-- supported the earthquake 
relief effort by transporting the Peruvian president and 
government ministers.  Flight hours should decrease with 
September's eradication efforts being moved to a location 
much closer to the Santa Lucia base. 
 
----------------------------- 
NAS AVIATION ARMS INSPECTION 
----------------------------- 

¶7. (U) The biennial Aircraft Resource Management Survey 
(ARMS) was conducted by INL/A (Air Wing) on August 20-23. 
INL/A Director Sharon Nell and a team of 8 inspectors visited 
the NAS/PNP operating bases at Pucallpa, Santa Lucia, 
Mazamari, and Palmapampa to determine compliance with INL/A 
Directives and Procedures.  The overall findings of the ARMS 
show that the NAS/DynCorp/PNP operations are satisfactory 
with some areas receiving commendable ratings. 
 
--------------------------------------------- -- 
NEW PNP OFFICER TRAINING SCHOOL IN SANTA LUCIA 
--------------------------------------------- -- 

¶8. (U) In July, Lima-based PNP Officers (i.e., of officer 
rank rather than enlisted personnel) assigned to DIRANDRO for 
rotations of 1 to 2 months in the jungle went on strike 
because they felt they lacked the necessary training.  This 
insubordination was picked up by the media, resulting in 
negative publicity for the PNP.  The incident prompted the 
PNP to accept NAS's recommendation to start an Advanced 
Officer Tactical Training School in Santa Lucia to develop a 
cadre of officers specially trained and equipped to operate 
for prolonged periods in remote areas of Peru.  This 
NAS-funded Officer Training School will accept recent 
graduates of the PNP Officers Academy in Lima who volunteer 
to serve 2 years with DIRANDRO East of the Andes.  These 
officers will lead some of the approximately 3,500 new police 
being graduated from the PNP/NAS Academies in Santa Lucia, 
Mazamari, and Ayacucho.  Officer graduates will be given the 
extra incentive of preferential consideration for courses in 
the U.S. to broaden their leadership and operational 
capabilities.  The first class is scheduled to start on 
September 8. 
 
¶9. (U) This month DIRANDRO interdiction operations destroyed 
2 cocaine HCl labs, 26 cocaine base labs, and seized 25.8 
metric tons of precursor chemicals capable of producing 2.3 
metric tons of cocaine HCl.  During this same period, 
DIRANDRO fielded 400 police security support for eradication 
operations. 
 
--------------------------------------------- -------------- 
COCAINE FOUND IN FERTILIZER HIGHLIGHTS PERU'S CAPABILITIES 
--------------------------------------------- -------------- 

¶10. (SBU) Based on an alert from the Manifest Review Unit 
(MRU) on August 20, Peruvian Customs discovered cocaine HCl 
mixed with powdered guano/fertilizer in an outward-bound 
container in Callao carrying 18 MT (720 sacks weighing 25 kg 
each) of the stuff.  The Customs inspectors used ion-scanners 
(NII) and canine units to find high levels of cocaine in 
several sacks.  The NAS-trained Peruvian chemist confirmed a 
total of 525 kg of cocaine HCL mixed into 21 sacks of guano. 
This seizure demonstrated the significant advances in the 
Peruvian Customs interdiction capabilities.  Earlier this 
year, a NAS Advisor had to be on hand at the port to ensure 
that all interdiction components (MRU intelligence, Customs 
inspections with NII and/canines, and chemist support) would 
be coordinated and used effectively.  The seizure is a 
milestone on the road to nationalization of Peruvian Customs 
seaport interdiction operations. 
 
--------------------------------------------- ----------- 
SEIZURES AT LIMA AIRPORT ALREADY SURPASS THE 2006 TOTAL 
--------------------------------------------- ----------- 

¶11. (U) By the end of August, 3 MT of cocaine HCl had been 
seized at JCIA in air cargo, passenger luggage, and internal 
carriers ("mules"), along with 487 arrests -- 247 internal 
carriers and 240 individuals attempting to smuggle cocaine in 
luggage (Ref C).  This seizure rate triples the total for 
2005 (approximately 980 kg) when NAS Ports program did not 
provide support to Peruvian Customs and National Police units 
at the airport.  The trend toward technical self sufficiency 
and nationalization of JCIA interdiction means it will be the 
model for three other Peruvian airports that will start 
receiving international passengers and cargo within the next 
year. 
 
¶12. (SBU)  On August 10, a passenger body x-ray machine was 
installed at Jorge Chavez International Airport (JCIA) in 
Lima as a deterrent for the large number of internal carriers 
who have been arrested within the last two years.  This 
month, 162 kg of cocaine HCl was interdicted at JCIA in air 
cargo, luggage, internal carriers, and the Peruvian Post 
Office.  Since the deployment of the body x-ray scanner, 
Peruvian Customs has screened 174 suspect passengers, 
catching 25 "mules" in the first 19 days since it has been 
operational.  Currently 14 percent of screened passengers are 
carrying up to 1 kg of cocaine.  NAS provided the equipment 
and the training to operate it; the screenings and seizures 
are handled by GOP interdiction officials at JCIA. 
 
------------------------------- 
OPIUM LATEX SEIZED IN CHICLAYO 
------------------------------- 

¶13. (SBU)  On August 28, in the northern port city of 
Chiclayo, an intelligence/interdiction unit, led by DEA and 
supported by NAS, seized 51 liters of opium latex.  Three 
traffickers were arrested in Chiclayo and there more arrests 
are pending in Cajamarca (a poppy growing area in northern 
Peru).  The intelligence/interdiction unit was created to 
provide information to the MRU in Callao and to act on 
interdiction alerts provided by the MRU.  The intelligence 
that led to this particular seizure was gathered by the unit 
itself. 
 
--------------------------------------------- ---------- 
NAS ANALYZING COSTS AND BENEFITS OF CONTAINER SCANNERS 
--------------------------------------------- ---------- 

¶14. (SBU) NAS is leasing three maritime container scanners 
and one mobile x-ray scanner.  The container scanners are 
located at 1) the Port of Callao (nearly one million 
containers move through this port annually); 2) the Port of 
Paita (up to 80,000 containers annually, many to the U.S.); 
and 3) JCIA to monitor air cargo.  The mobile scanner is 
moved to sea/airports as needed.  NAS is now analyzing the 
counterdrug efficacy vs. costs of continuing to lease these 
expensive-to-operate scanners.  So far, no narcotics have 
been detected by the scanners, but it is quite likely that 
fear of detection has limited the number of traffickers who 
are exporting via containers.  Only the more technically 
sophisticated traffickers who have chemists working for them 
seem inclined to risk being scanned.  For example, all the 
drug seizures in Peruvian seaports that have been detected 
using canines and NII were chemically mixed into or masked by 
a legal product (e.g., fish meal, herbal/vitamin supplements, 
pineapple juice, and fertilizer).  The traffickers who are 
still shipping bags or bricks of cocaine are using other 
routes. 
 
--------------------------------------------- --------- 
NAS SUPPORTS OAS/CICAD TERRORIST FINANCING CONFERENCE 
--------------------------------------------- --------- 

¶15. (U) The NAS Money Laundering Project joined forces with 
OAS/CICAD to present a series of anti-money laundering 
programs in August 2007.  The two seminal events were a 
terrorist financing conference followed by a money-laundering 
investigative techniques course and mock oral trial.  The 
terrorist financing conference brought together senior 
officials from Argentina, Brazil, Bolivia, Chile, Colombia, 
Ecuador, Paraguay and Uruguay.  Legal authorities from Spain 
-- Baltasar Garzon, Senior Judge (Juez Instructor de Espana) 
and Javier Zaragoza, Senior Prosecutor (Fiscal Jefe de la 
Audiencia Nacional de Espana) -- led the team of expert 
instructors for these events. 
 
--------------------------------------------- --------------- 
NEWS AGENCY FIGHTS PRO-COCA IDEAS ON AIR WAVES AND INTERNET 
--------------------------------------------- --------------- 

¶16. (U) NAS is combating a resurgence in pro-coca ideology by 
narco-traffickers and leftist intellectuals via an activist 
media program.  One of NAS' key activities in 2007 is the 
creation of a news agency, INFOREGION, that feeds news on 
drug trafficking, the environment, human rights, and security 
matters to national and provincial radio and TV stations. 
View at their website at www.inforegion.com.pe to learn about 
what's happening in Peru's provinces and how NAS is 
supporting efforts to influence public opinion regarding drug 
trafficking and associated crimes in Peru. 
 
--------------------------------------------- ------------- 
NAS REVIEWS PERFORMANCE OF COMMUNITY ANTI-DRUG COALITIONS 
--------------------------------------------- ------------- 

¶17. (U) NAS staff instituted a top-to-bottom analysis of the 
Community Anti-Drug Coalition (CAC) initiative through a 
series of meetings with NGO leaders and evaluators.  FY 2008 
will be the third year of development for 6 CACs and NAS is 
starting 6 new CACs as well.  The analysis was done to 
improve the CAC Strategic Plan and Logic Model by 
incorporating the lessons learned from the past years.  Some 
changes are: 
    -- focus the NGO teams in each CAC more on providing just 
technical assistance to improve sustainability, 
    -- redefine project objectives to achieve more measurable 
results, and 
    -- integrate the new Social Marketing and Communications 
Strategic Plan more effectively into CAC activities in order 
to rapidly increase the visibility of the CACs. 
MCKINLEY