ACTING FOREIGN MINISTER ON HANDLING OF RELATIONS

C O N F I D E N T I A L SECTION 01 OF 02 LIMA 002226

SIPDIS

E.O. 12958: DECL: 05/16/2015
TAGS: PREL PE CI
SUBJECT: ACTING FOREIGN MINISTER ON HANDLING OF RELATIONS
WITH CHILE

REF: A. SANTIAGO 1070


B. LIMA 2180

C. SANTIAGO 1011

D. SANTIAGO 1000

E. LIMA 2061

F. LIMA 2018

Classified By: Political Counselor Alexander Margulies. Reason: 1.4(b
/d).


1. (C) SUMMARY: Acting Foreign Minister Armando Lecaros,
in response to a query from the Ambassador during a meeting
on 5/16, stated that the Foreign Ministry has worked closely
with President Alejandro Toledo in handling the crisis in
bilateral relations with Chile over the latter's delivery of
arms to Ecuador during the 1995 border war; that Foreign
Ministers Manuel Rodriguez and Ignacio Walker almost had a
joint declaration worked out, but the Chilean Government
pulled back at the last moment, presumably in response to
pressure from the Chilean Armed Forces; that Rodriguez will
again attempt to reach an accord with Walker upon the
former's expected return on 5/23 from an extended illness;
and that if no accord is reached, the worst likely scenario
would be for no/no movement forward on bilateral ties until
the next Peruvian Government takes office in July 2006.
Lecaros added that a solution could be reached if Chile put
in writing what Foreign Minister Walker had already said
publicly. The Acting Foreign Minister welcomed the
Ambassador's interest in the issue, and said he thought it
would be "positive" for a similar expression of USG interest
to be made in Santiago. The Ambassador noted that the U.S.
was following the issue with interest, but not/not trying to
inject itself into this Peru-Chile bilateral matter. END
SUMMARY.


2. (C) The Ambassador raised the ongoing crisis in
Peruvian-Chilean relations over Chilean arms deliveries to
Ecuador during the 1995 border war (Reftels) during a 5/16
meeting with Acting Foreign Minister Manuel Lecaros. Lecaros
explained that:

-- Contrary to claims by opposition politicians and some
media commentators, Peru's response has not/not been
influenced in any way by a desire to divert attention from
the Toledo Government's domestic political problems.

-- The Foreign Ministry has been fully involved in
developing the GOP's response, with Lecaros himself working
side-by-side with President Toledo.

-- This is not a question of one arms shipment, as the GOC
claims, but rather of multiple shipments that Peru believes
occurred.

-- It is possible that Chilean President Ricardo Lagos is
unaware of the additional arms shipments, as he expressed
surprise when Toledo mentioned this at a dinner in Brasilia
during the South American-Arab Summit.

-- Peruvian Foreign Minister Manuel Rodriguez and his
Chilean counterpart Ignacio Walker almost resolved this issue
in Morocco, during the late-March meeting of South American
and Arab Foreign Ministers. The two developed a draft joint
declaration that the GOC walked back from at the last minute.

-- The Peruvians suspect that objections from the Chilean
Armed Forces scuttled the draft joint declaration, and that
the Chilean military continues to exert influence over the
GOC's public comments, judging from the tenor and tone of
those statements.

-- Foreign Minister Rodriguez, who has been seriously ill
for the past few weeks, is expected to return to his office
on 5/23, and will make it a priority to work the issue.

-- While other efforts, such as an initiative by Peruvian
Congress President Antero Flores-Araoz to discuss the issue
with the leader of Chile's legislature, are welcome, a
resolution can only be achieved through negotiations by the
two Foreign Ministries.

-- GOP officials will maintain a closed mouth policy on the
issue of bilateral relations with Chile for the time being,
in order to facilitate talks.

-- If no/no accord is reached, the most likely worst case
scenario would be that there will be no/no forward movement
on bilateral ties until a new Peruvian Government takes
office in July 2006.

-- Foreign Minister Walker had in one public declaration
said that Chile acknowledged and expressed regret for the
arms shipment in 1995 and reiterated that expression of
regret now. Repeating the apology in writing in the present
tense, Lecaros emphasized, is the key to resolving the
dispute from Peru's perspective.

3. (C) Lecaros then asked the Ambassador what was the
nature of USG interest in this issue, adding that if the
Ambassador had not raised the matter he would have brought it
up. The Ambassador noted that the USG is a guarantor of the
Rio Protocol of 1942, that it has excellent relations with
Peru and Chile, and that it desires to see friendly relations
between the two countries restored. He explained that the
USG is not/not seeking to involve itself in Peru-Chile
negotiations, particularly as neither country has expressed
interest in U.S. participation. Lecaros agreed, but replied
that he was glad to hear of the USG's interest in the matter,
and opined that it would be "positive" for the U.S. to make a
similar expression of interest in Santiago.


4. (U) President Alejandro Toledo, in a 5/17 speech
commemorating the 36th anniversary of the Andean Community of
Nations, suggested that his government would like to see
bilateral ties with Chile improve. Although he did not
mention Chile specifically, the President stated, "We have
other challenges and should not let ourselves be distracted
by the issue of arms or of conflicts in the past. As Peru is
not disposed to delve into other issues that have passed, we
simply have to arrive at an agreement to resolve this. It
would be a grave error to remain trapped in the past." When
asked by the press whether his comments were intended as a
positive gesture towards Chile, the President noted that
Chile has invested over USD four billion in Peru, bilateral
trade exceeds USD one billion, Chilean President Ricardo
Lagos was the first to be accorded a State Visit from Toledo,
who made a State Visit to Santiago in return. "We have a lot
in common," Toledo concluded, but there is a pending issue
that has to be resolved. How will it be resolved? We have
left that in the hands of the Foreign Ministry."


5. (C) COMMENT: Foreign Minister Rodriguez will have his
work cut out for him in trying to develop a formula that can
reconcile Peru's demand for a public apology with Chile's
insistence that the matter was dealt with a decade ago. It
probably does not/not help that both countries are entering
into election campaigning, which can only restrict their
respective governments' maneuver room. With respect to
Lecaros' account, we note that Foreign Ministry Under
Secretary for Political Affairs Oscar Maurtua alluded to

SIPDIS
frustrated talks between the two Foreign Ministries in his
5/10-11 op-eds (Ref B),but did not provide the details
Lecaros did. In addition, Prime Minister Carlos Ferrero,
Congress Foreign Relations Committee Chairman Gustavo
Pacheco, and the Foreign and Defense Ministries previously
referred to Peruvian intelligence reports from 1995 to
support their assertions that there were more than one
shipment of arms by airplane (Refs B, D-E),although hard
evidence to corroborate these reports has not/not been made
public. END COMMENT.
STRUBLE