FY 2006 Narcotics Certification for Peru

UNCLAS SECTION 01 OF 03 LIMA 002546

SIPDIS

E.O. 12958: N/A
TAGS: SNAR
SUBJECT: FY 2006 Narcotics Certification for Peru

REF: SECSTATE 94578


1. Peru has cooperated fully in the bilateral drug program
with the United States. This report is based on the
benchmarks.


2. Coca reduction - The goal is to reduce the amount of coca
for illicit uses under cultivation through eradication of
illegal coca to 27,800 hectares as measured by the Crime and
Narcotics Center (CNC).

-- Peru eradicated over 10,500 hectares of coca in CY 2004.
Almost 8000 were conventional eradication, while 2500
hectares were voluntarily eradicated, for a total of 10,500.
CNC estimated that in 2004 there were 27,500 HA of fully
productive coca being grown in Peru. The Government of
Peru, using a different methodology, estimates there are
46,000 hectares of coca, close to 10,000 hectares more than
it recorded last year.

-- In 2005, the GOP has planned and mounted aggressive
interdiction and eradication campaigns in the Huallaga
Valley in traditional coca cultivation zones that had
previously been off limits because of violent resistance by
farmers to any law enforcement presence. The PNP mounted
extensive interdiction campaigns directed at destroyed
cocaine base laboratories in this zone prior to initiating
eradication teams. Attacks against helicopters delayed the
start of eradication until police revamped their tactics and
inserted larger numbers of troops to protect eradicators.
With strong backing by senior GOP officials, These new
tactics have proven successful in the cocalero stronghold of
Pizana.

--CORAH (government eradication entity) has conducted
eradication in communities that have refused to participate
or failed to fulfill a commitment to voluntary eradication
under the PDAP (Participative Alternative Development
Program). This effort has prompted adjacent communities
that had not joined the PDAP to reconsider this option.

-- CORAH's next major eradication effort after Pizana will
be in the San Gaban area, Puno Department. CORAH eradicated
1,500 hectares of coca in San Gaban in 2004. The effort
this year will be to eradicate the remaining 2,000 hectares.
We expect significant eradication productivity because the
coca fields are denser and confined to a narrower area
closer to our base of operations.

-- The GOP set a goal of 8,000 hectares of programmed
(forced) eradication. At this time, it is unlikely that the
GOP will meet this goal by December 2005. The principal
reason for the shortfall is delays in the Huallaga Valley
operations because of the requirement for increased
security.


3. Police counter-narcotics enforcement: The goal of this
project is to develop police operations to combat illicit
drug trafficking and to support eradication of illegal coca
cultivation. Criteria for measuring progress toward this
goal shall be the increased presence of Peruvian law
enforcement authorities in drug-growing regions with a
concurrent increase in the dismantling of drug trafficking
organizations, increased arrests of drug traffickers,
greater seizures of illegal weapons, illicit drugs,
precursor chemicals and goods seized as a result of these
operations. The target shall be to increase the number of
PNP drug police (DIRANDRO) deployed from a baseline of 569
troops in 2004 to 969 troops in 2005.

-- The PNP established two new basic training academies in
coca growing regions in 2004. Two hundred students
graduated in May 2005. They have all been assigned to the
Peruvian drug police units operating in the coca growing
valleys for the next three years. Another 200 students will
graduate in December 2005.

--. The Peruvian National Police (PNP) have seized and/or
destroyed sizeable quantities of drugs in 2005. The PNP
continually conduct operations approximate to coca growing
regions and have made a significant impact in interdiction
and seizure of coca leaf and destruction of rustic labs and
cocaine base laboratories pits. They successfully
identified and disrupted major international cocaine
trafficking organizations responsible for maritime and air
shipment of metric tons of cocaine to U.S., South American,
and European markets. In the first five months of 2005, PNP
has seized record quantities of cocaine HCl and opium latex.
Utilizing DEA's concept of priority targeting, U.S. Embassy
helped DIRANDRO successfully identify and disrupt major
international cocaine trafficking organizations responsible
for maritime and air shipment of metric tons of cocaine to
U.S., South American, European and Far Eastern markets.

-- As of May 30, the PNP has seized approximately 5.6
metric tons of cocaine HCl and 139 kgs of cocaine base
through law enforcement investigative efforts. This is
significant in comparison to CY 2004 where cocaine base and
cocaine HCl seizures measured at approximately 6.5 metric
tons and 2.7 metric tons respectively. Information from
multiple sources, including intelligence reporting and
recent seizures, indicates that cocaine HCl is being
produced in greater quantities in large clandestine
processing laboratories located in the coastal regions of
Peru.

-- The opium poppy cultivation and opium latex trafficking
in Peru remains a concern as evidenced by seizures and
arrests by the PNP. Poppy cultivation and opium poppy
trafficking continues in multi-kilogram quantities in Peru,
as evidenced by the opium latex seizures by the PNP. Based
on the poor quality of latex seized to date, however,
Peruvian producers reportedly cannot deliver a product
suitable for heroin production. DIRANDRO seized 573 kgs of
opium latex in the first five months of CY2005, up from 383
kgs in all of CY 2004. It is unknown if these sizeable
seizures are related to increased opium poppy cultivation in
Peru.

-- In most seizures, the suspects are low-level operators or
transportation specialists within the organization. Most
suspects do not cooperate; primarily due to a cumbersome
legal framework which limits post seizure investigations to
15 days and does not provide any benefit or legal
flexibility. After the 15 days have concluded, PNP normally
closes out the investigation as any further evidence and/or
witnesses are not allowed in judicial proceedings related to
that particular case. Weak asset forfeiture legislation and
indifference towards asset forfeiture by the Peruvian
judicial system is why asset seizures are non-existent in
Peru. The GOP has put Fernando Zevallos, whom the USG
designated as a drug kingpin in 2004, on trial for narcotics
trafficking offenses. This judicial proceeding is ongoing.

-- The PNP has eradicated 98 hectares of opium fields in
CY2005. The GOP has estimated there are about 1,500
hectares of opium under cultivation. This estimate is based
on an extrapolation from seizures and hectares eradicated.
No one really knows how much opium is being grown in Peru.
The GOP and USG are cooperating to do a limited short-term
aerial survey of suspected opium growing areas in Northern
Peru. So far, very little opium has been found.

-- In an effort to further identify distribution points,
identify opium drug trafficking organizations and final
destination for the opium product, DIRANDRO has increased
its intelligence and investigative resources to include
joint cross-border cooperation with Peru's neighbors.

-- Although drug trafficking organizations were disrupted
through these seizures, no major traffickers were arrested
or significant assets seized. None of the money laundering
cases that have been passed by the GOP's Financial
Intelligence Unit to the Public Ministry have resulted in
indictments.

-- The Peruvian National Police proactively cooperate with
neighboring countries and the U.S. to conduct regional
chemical control operations. As a result from Operation
Six Frontiers interdiction operations in CY 2004, the PNP
seized over 1200 metric tons of precursor chemicals.
Separate from this regional initiative, PNP DEPCIQ has
conducted several chemical investigations resulting in over
3 metric tons of precursor chemicals in CY 2005.

-- DIRANDRO and Peruvian Customs have established a joint
interdiction group at the Port of Callao to review all
export documents of containerized-freight and identify
suspect cargo for further inspection. Due to increased
transportation of cocaine products to the coastal regions
for maritime smuggling, DEA and PNP are increasing
investigative and intelligence resources to address this
problem.


4. Aviation support - The goal was to achieve a 10 percent
increase in the number of counter-narcotics operations by
the PNP annually and to maintain an operations rate of 80
percent.

-- The GOP has improved its mission planning coordination
and actual flight hours have risen by 28 percent from
October 2004 through April 2005 compared to the same 7-month
period a year earlier.

5. Prosecutions by Public Ministry - The 2005 target was
to train general prosecutors in key drug growing and transit
regions to assist the special anti-drug prosecutors in
counter-narcotics operations by the PNP.

-- The GOP has provided counter-narcotics training to 146
fiscals in 7 cities. The next step in the process will be
to assign them to eradication or interdiction operations
when a special narcotics prosecutor is unavailable.


6. Policy & Institutional Development - Criteria for
measuring progress towards this goal include the goals
established in Peru's National Strategy for the Fight
Against Drugs; further progress by the GOP in implementing
its anti-money laundering regime and anti-corruption
programs.

-- In 2004 DEVIDA and the National Statistics and
Information Institute (INEI) published a rigorous scientific
study of traditional use of coca. The study showed that
8,800 tons of leaf would meet the licit demand, but that 2/3
of that amount is by-passing the "official" marketing
agency, ENACO. The study establishes that 84 percent of
coca leaf grown in Peru goes to drugs.

-- Peru's progress with the G8 anti-corruption initiative
is excellent. The GOP was the first country to present a
complete action plan thanks to strong Peruvian interagency
effort. USG is funding 2.21 million in projects in support
of this plan. The USG is working with Comptroller to do an
audit and assessment of its anti-corruption functions.


7. Airports and seaports - The target is to establish
fully functioning Cargo Manifest Review Units (MRU) and
canine teams in four key Peruvian seaports and at Jorge
Chavez international airport.

-- One MRU has been established at the Port of Callao. The
GOP and USG signed a memorandum of Understanding to
formalize its operation in April. Progress is being made
towards setting up a second MRU at the Port of Paita. In
the coming months we will need to move ahead with
establishing container security regimes at two other
seaports.
STRUBLE