VZCZCXYZ0000
RR RUEHWEB

DE RUEHPE #1169/01 1911217
ZNR UUUUU ZZH
R 091217Z JUL 08
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC 8972
INFO RUEHBO/AMEMBASSY BOGOTA 5865
RUEHBR/AMEMBASSY BRASILIA 7905
RUEHLP/AMEMBASSY LA PAZ JUL QUITO 1991
RHMFIUU/DEPT OF STATE AIR WING PATRICK AFB FL
RHEHOND/DIRONDCP WASHDC
RHMFIUU/COGARD INTELCOORDCEN WASHINGTON DC
RUCOWCA/COMLANTAREA COGARD PORTSMOUTH VA
RHMFIUU/COMCOGARD MLC PAC ALAMEDA CA

UNCLAS LIMA 001169 
 
SENSITIVE 
SIPDIS 
 
STATE FOR INL/LP 
STATE FOR WHA/PPC 
ONDCP FOR LT COL RONALD GARNER 
 
E.O. 12958: N/A 
TAGS: SNAR KCRM ASEC PREL PE
SUBJECT: LIMA NAS MONTHLY REPORT - JUNE 2008 
 
¶1. (U) Summary: 
 
- Recent economic analysis confirms considerable diminution 
of coca in San Martin, the first clear and measurable result 
of the Eradication/Alternative Development nexus. 
- NAS Deputy Director traveled to Quito, Bogota, and La Paz 
to identify areas of regional collaboration. 
- Visit to NAS-funded Police Base and Academy in Ayacucho. 
- Eradication totals 5,196 hectares at the end of June. 
- DIRAVPOL Air Police failure to provide MI-17 helicopters 
and Antonov (An-32) fixed-wing cargo aircraft support in June 
causes NAS to look at other alternatives. 
- Temporary facilities at Tingo Maria Forward Operating 
Location (FOL) 85 percent completed; construction of the 
advance eradication base at Aucuyacu set for August 1. 
- NAS evaluating cost of required repairs of Palmapampa 
runway. 
- CICAD presents Money Laundering projects for 2008-2009 to 
Attorney General. 
- Dramatic increase in number of scanned containers in 
seaports causes shift in smuggling patterns in past year. 
- Damaged helicopter successfully transported to US for 
repairs. 
- NAS continues to support MAAG refueling needs for New 
Horizons Exercise. 
- Uptick in GOP operations in VRAE results in increase in 
MEDEVAC requests. 
- Peruvian Air Force cross border exercises with Brazil to 
begin in July. 
- Relocation of FAP C-26 squadron to the Jorge Chavez airport 
delays reinstallation of digital imaging camera 
- 300 VRAE youth leaders gather in Ayacucho under CEDRO 
program. 
- Peruvian Customs drug and currency seizures for June. 
- PNP Chemical Group Interdiction and Chemical Seizures for 
June.   End Summary. 
 
--------------------- 
THE TOCACHE MIRACLE 
--------------------- 
¶2. (U) The respected Institute for International Studies 
(IDEI) of the Catholic University recently published an 
economic analysis that confirms the considerable diminution 
of coca in the economy of San Martin ) the area of focus for 
NAS-supported eradication combined with USAID Alternative 
Development programs.   The IDEI analysis attributes the drop 
of coca in the regional economy from 17.4 percent in 1992 to 
1.9 percent in 2006 to &insignificant levels8 in 2008 to 
the integrated GOP/USG anti-drug policy.   The daily &El 
Commercio8 and other media are hailing this as the first 
clear and measurable 
result of the Eradication/Alternative Development nexus, 
calling the change in this previously narco-ridden province 
&the Tocache miracle.8 
 
--------------------------------------------- ---------- 
DEPUTY DIRECTOR TRIP TO QUITO/BOGOTA/LA PAZ - JUNE 4-22 
--------------------------------------------- ---------- 
¶3. (U) During the period June 4-22, NAS Lima Deputy Director 
visited counterparts in Ecuador, Colombia and Bolivia to gain 
first-hand knowledge of the various activities of each NAS 
and to seek areas of common interest and collaboration with 
Peru as we face lowered budgets.  While each NAS has recorded 
successes in various program areas, the visit identified 
areas where collaboration between the four country programs 
will contribute to greater effectiveness and reduce expenses 
of the overall programs with minimal staff reductions.  A key 
area of collaboration that spans all NAS programs is training 
and procurement.  A follow up visit is planned to expand on 
the specific types of cooperation that will be most 
beneficial to each country's program. 
 
-------------------- 
SITE VISIT: AYACUCHO 
-------------------- 
¶4. (U) On June 27, NAS Deputy Director and NAS Program 
Officer visited the Police Base and Academy in Ayacucho 
opened in December 2007.  This was the first visit for both 
officers to review the police program in Ayacucho.  Both 
 
 
noted the good maintenance of both the academy and the base. 
Personnel take great pride in the appearance of the 
facilities, especially the Academy.  The Commander of the 
Academy has established a community outreach program where he 
regularly meets with community members and leaders.  He hosts 
approximately forty (40) school children of single parents 
for breakfast at the Academy dining hall every Saturday 
morning.  In addition, the students (police cadets) regularly 
deliver food and beverages during off-duty community 
activities, enhancing the image of the police in an area 
known for SL activity and coca-production.  The NAS-funded 
base and academy in Ayacucho are known by the local community 
as "El Joyo" -- the Jewel -- for its modern facilities, 
computer labs, and dormitories. 
 
--------------------------- 
JUNE ERADICATION STATISTICS 
--------------------------- 
¶5. (U) By month,s end, CORAH had eradicated a total of 5,196 
hectares of illegal coca.  Prior to the planned August move 
to the new Aucayacu Base Camp, CORAH will eradicate coca in 
Sion, the only remaining area of significant coca in San 
Martin, depending on MI-17 support for both insertion and 
extraction of CORAH personnel.  Beginning mid June and ending 
July 5, CORAH will have completed eradication of new coca in 
the Yanajanca area, a priority area for USAID.  Ninety 
percent of eradicated coca occurred in the San Martin 
Department, the remaining ten percent in Huanuco. 
 
------------------------------------- 
LIMITED AVAILABILITY OF MI-17 SUPPORT 
------------------------------------- 
¶6. (U) In June, the move of eradication operations further 
south from Santa Lucia increased the distance required to 
move the eradicators and security police.  However, DIRAVPOL 
Aviation Police cite the national tasking to respond to 
social unrest in Moquegua as the reason for their inability 
to provide MI-17 helicopter and Antonov fixed-wing support in 
June; DIRAVPOL forecasts limited availability in July, 
causing NAS to seek other alternatives. 
 
--------------------------------------------- ----------- 
TEMPORARY FACILITIES AT TINGO MARIA 85 PERCENT COMPLETED 
--------------------------------------------- ----------- 
¶7. (U) Preparations to shift UH-2 operations from Santa Lucia 
to Tingo Maria FOL are continuing, to support upcoming 
eradication operations in Aucayacu.  Foul weather had 
hindered work, but in June installation advanced rapidly and 
is now 85 percent completed. Construction of the advanced 
eradication base is now set to begin 1 August. Little 
progress has been made in the preparation of the operating 
area in terms of intelligence and interdiction operations to 
determine the extent of the threat in this known Sendero 
Luminoso stronghold.  Furthermore, the move into Aucayacu has 
aroused opposition from local cocalero organizations that are 
threatening organized resistance. 
 
----------------------------------------- 
PALMAPAMPA RUNWAY REQUIRES URGENT REPAIRS 
----------------------------------------- 
¶8. (U) Interdiction operations continue from Palmapampa FOL. 
However, the runway remains closed to NAS/PNP fixed-wing 
traffic, thus increasing the flight hour expenditure for the 
UH-2s. NAS and DIRANDRO Director Hidalgo have agreed on the 
urgent need of repairs on the notorious up-hill landing strip 
so that fixed-wing aircraft can provide necessary logistical 
support for the remote base.  NAS is currently evaluating the 
costs involved. 
 
----------------- 
MONEY LAUNDERING 
----------------- 
¶9. (U) NAS accompanied CICAD representatives to a meeting 
with Peru's new Attorney General, Gladys Echais.  CICAD 
presented a series of proposed money laundering training 
projects to enhance the Public Ministry,s capabilities. The 
projects will focus on how the Ministry,s prosecutors will 
manage money laundering and organized crime cases in 
2008-2009.  Echais welcomed CICAD,s offer of this training 
and expressed optimism that improved coordination between the 
Ministry of Interior and the Public Ministry in investigating 
drug trafficking and related crimes would result in more 
successful prosecutions. 
 
------------------------------------- 
PORTS PROGRAMS SEIZURES AND ACTIVITIES 
------------------------------------- 
¶10. (U) In June, SUNAT and the Peruvian Post Office (SERPOST) 
seized a total of 100.36 kilos of cocaine, bringing the total 
of HCL cocaine seized by SUNAT in Lima this year to 5,267 
kilos.  Fifteen internal carriers (mules) were arrested in 
June: a total of 256 passengers have been arrested for 
transporting drugs in/on their person since the deployment of 
the Body Scanner in August 2007.  On June 7, SUNAT detained a 
Peruvian passenger arriving from Uruguay for failing to 
declare 50,000 USD affixed to his person.  The currency was 
seized by the PNP and the case is under investigation. Since 
the currency interdiction program commenced less than a year 
ago, SUNAT has seized 1,050,000 USD of illicit money from 
foreign and domestic passengers at Jorge Chavez Airport. 
Peruvian officials believe that the installation of the body 
scanners has caused passengers to make more accurate 
declarations on the amount of currency being transported 
internationally ) not previously the case.  Since the 
arrival of the container scanners at the seaports in 2006, a 
total of 153,647 containers have been scanned, 3,938 of which 
were referred for secondary inspection. The dramatic increase 
in numbers of scanned containers is also functioning as a 
deterrent that is causing a clear shift in smuggling patterns 
through the seaports in the last year. 
 
------------------------------------ 
NAS/DEA/PNP CHEMICAL GROUP SEIZURES 
------------------------------------ 
¶11. (U) On June 6, the PNP Chemical Group (PNPCG) seized a 
total of 650 kilos of acetone -- a 32,500 USD Peruvian black 
market value -- and laboratory equipment (microwave ovens, 
hydraulic presses, metal molds, a large distiller utilized to 
recycle acetone, and electric generators).  The NAS-supported 
Special Operations Group conducted interdiction operations in 
the VRAE that resulted in the destruction of 108 cocaine base 
laboratories and 3 metric tons  of precursor chemicals in 
June. 
 
------------------------------------ 
DAMAGED HELICOPTER TRANSPORTED TO US 
------------------------------------ 
¶12. (U) The PNP-347 (UH-2) helicopter, damaged during a 
routine training flight landing at Santa Lucia, was 
transported to Pucallpa by truck, loaded aboard a 
Bolivian/NAS C-130 at the PNP/NAS facilities at Pucallpa, and 
on June 23rd, flown to Patrick AFB for repairs. 
 
--------------------------------------------- -------------- 
NAS CONTINUES SUPPORT FOR MAAG &NUEVOS HORIZONTES8 EXERCISE 
--------------------------------------------- -------------- 
¶13. (U) NAS continues to support Exercise New Horizons with 
refueling for the CH-47s. NAS is continuing to order fuel and 
is providing one fuel operator to oversee the dispensing of 
fuel from the NAS-provided bladder and pump equipment and to 
monitor the quality of fuel.  All incurred expenses will be 
reimbursed by MAAG. 
 
------------------------------ 
INCREASE IN MEDEVAC OPERATIONS 
------------------------------ 
¶14. (U) NAS received more than the normal amount of MEDEVAC 
requests during June, mostly for DIRANDRO stationed at the 
FOLs. However, the Peruvian Navy and Army also indirectly 
requested Medevac support. One case involved five Peruvian 
Marines injured (one with significant head trauma) in a 
transport vehicle during an operation, requiring a night 
evacuation by an Air Police crew using NVGs.  This increase 
in MEDEVAC requests is a direct result of the up-tick in 
operations by Peruvian Army and Navy units in the VRAE and is 
expected to increase further in the coming months. 
 
--------------------------------------------- ----------------- 
START OF CROSS-BORDER COMMAND AND CONTROL EXERCISE WITH BRAZIL 
--------------------------------------------- ----------------- 
¶15. (U) Peruvian Air Force (FAP) units have begun to arrive 
at NAS/PNP FOL Pucallpa to prepare for the semi-annual 
cross-border command-and-control exercise with Brazil, 
scheduled for July 7 -11.  Five A-37 &Dragonfly8 aircraft 
have arrived and will be joined by a FAP Turbo Commander and 
a C-26 aircraft. NAS has made ramp/hangar space available 
which includes lodging for FAP aircrews. 
 
------------------------------------------- 
DELAY IN INSTALLING DIGITAL CAMERA FOR C-26 
------------------------------------------- 
¶16. (U) The FAP C-26 aircraft -- and the NAS-funded ARINC 
contractors -- have moved from Las Palmas to Jorge Chavez 
International Airport because of the continuing encroachment 
of the FAP/FAA-approved commercial repair center at Las 
Palmas.  The re-installation of the digital imaging camera 
has been delayed due to the move; other problems include the 
FLIR system hand controller which has to be returned to the 
manufacturer for repair. 
 
--------------------------------------------- ------ 
CEDRO PROJECT GATHERS 300 YOUTH LEADERS IN AYACUCHO 
--------------------------------------------- ------ 
¶17. (U) The Ayacucho Youth Project 'Towards a Culture of 
Lawfulness' gathered 300 youth leaders from the five 
provinces of Ayacucho - areas where youth are the most at 
risk of becoming involved with narco-trafficking.  NAS 
Program Officer gave remarks at the start of the three day 
gathering.  The Provincial Mayor of Huamanga attended as did 
a representatives from the Ministry of Work and Promotion and 
the Regional Commercial and Tourism agency.  Many of the 
youth expressed frustration over the lack of resources going 
into social programs at the grass roots level, despite 
political promises. 
NEALON