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Cablegate: Lima Nas Monthly Report - June 2008

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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

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