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Cablegate: Fore Visit: Fostering Public-Private Partnerships

VZCZCXYZ0002
PP RUEHWEB

DE RUEHPE #0194/01 0312234
ZNR UUUUU ZZH
P 312234Z JAN 08
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 7811
INFO RUEHAC/AMEMBASSY ASUNCION PRIORITY 1911
RUEHBO/AMEMBASSY BOGOTA PRIORITY 5476
RUEHBR/AMEMBASSY BRASILIA PRIORITY 7750
RUEHBU/AMEMBASSY BUENOS AIRES PRIORITY 3266
RUEHCV/AMEMBASSY CARACAS PRIORITY 1030
RUEHLP/AMEMBASSY LA PAZ JAN 4726
RUEHMN/AMEMBASSY MONTEVIDEO PRIORITY 9429
RUEHQT/AMEMBASSY QUITO PRIORITY 1724
RUEHSG/AMEMBASSY SANTIAGO PRIORITY 1723
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC PRIORITY
RUMIAAA/USCINCSO MIAMI FL PRIORITY

UNCLAS LIMA 000194

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PGOV PREL EAID SNAR PINR PE
SUBJECT: FORE VISIT: FOSTERING PUBLIC-PRIVATE PARTNERSHIPS
IN PERU'S REGIONS

REF: LIMA 114

1. (SBU) Summary: Director of US Foreign Assistance Henrietta
Fore, during her January 10-11 visit to Peru, underscored the
importance of public, private and civil society collaboration
to foster development. To this end, Director Fore attended a
signing ceremony on January 10th to launch a partnership
initiative between USAID and three
major mining companies to support a wide range of development
activities. On January 11, she traveled to Ayacucho to visit
USAID supported projects in support of rural producers, local
governments, and civil society. Director Fore also visited a
NAS-sponsored police academy that is training hundreds of new

police annually as part of the effort to establish security
and state presence East of the Andes, thereby enabling
development in narco-trafficking zones. (Director Fore's
meetings with the Foreign Minister and other cabinet
officials are covered septel.) End Summary.

Working with the Mining Sector to Promote Development
--------------------------------------------- --------
2. (SBU) Director Fore attended an event on January 10 to
launch public-private partnership initiatives between USAID
and three major mining companies -- Barrick, Buenaventura,
and Antamina. With these initiatives, the three companies
have committed to work with the USG to reduce poverty by
promoting sustainable income and employment generating
activities in mining regions such as Huancavelica and Ancash.
In private comments after the ceremony, company
representatives lamented the inability of municipalities to
invest the considerable tax revenues gained from mining
activities into meaningful local development projects. They
also criticized the central government's inability to build
needed transportation and other infrastructure. Company
representatives hoped that continued collaboration with USAID
will help improve the effectiveness of their own social
investments, thereby undercutting potential social unrest.
Director Fore encouraged the companies to identify additional
opportunities for such public-private cooperation on poverty
reduction.

Collaborative Development in Ayacucho
-------------------------------------
3. (U) On January 11, Director Fore traveled to the
impoverished city of Ayacucho -- the birthplace and epicenter
of Shining Path terrorism -- to view USAID and NAS assistance
activities as well as infrastructure and training programs.
Fore met with a wide range of micro and small business
operators that have used USAID development support to link
their output with national and international markets. These
enterprises now sell a broad array farm products and textiles
in Peru's major cities, the US, Europe, and Japan,
demonstrating that poor producers can compete internationally
and generate
employment through trade.

4. (SBU) Director Fore also met with Ayacucho's Regional
President, Regional Council, and Mayor to discuss local
development challenges. All expressed interest in developing
the region in consultation with civil society, local mayors
(regardless of political affiliation) and the private sector.
The officials thanked Fore for US assistance in these
efforts, and identified their top priorities as 1) improving
health by focusing on malnutrition; 2) making
decentralization work by building the capacity of regional
and municipal staff; and 3) bolstering growth by exploiting
the benefits of the new free trade agreement.

5. (SBU) Director Fore met separately with a cross section of
civil society actors who confirmed the openness of
regional and local governments to consult and collaborate
with citizen groups. Civil society representatives also
discussed the ongoing threat of the Shining Path, which,
while much diminished, has linked up with narco-trafficking
operations
and continues to exploit impoverished youth in rural areas.


Visit to NAS-Supported Police Training Academies
--------------------------------------------- ---

6. (U) Director Fore also visited the recently inaugurated
NAS-PNP Basic Training Academy - a $10 million USG
investment. The academy is recruiting qualified students
from local communities to ensure that police officers
represent their communities and will remain East of the Andes
in counter-narcotics functions for a minimum of three years.
With NAS support, this new academy, along with two others
East of the Andes, will dramatically increase police
presence, with the goal of providing a lawful and secure
environment that enables economic development. Director Fore
saw recent female academy graduates undergoing specialized
intelligence and counter-narcotics training and learned from
the students about their strong commitment to free their
communities from narco-trafficking
and violence.

7. (U) Director Fore cleared this message.
NEALON

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