Letter of Agreement of Narcotics Control between

UNCLAS SECTION 01 OF 04 LIMA 003419

SIPDIS

INL FOR MATANO; WHA FOR MONSERRATE, BISCHOFF

E.O. 12958: N/A
TAGS: SNAR PREL PGOV PE
SUBJECT: Letter of Agreement of Narcotics Control between
the USG and the GOP

REF: 04 Lima 4638


1. Post has completed discussions with the GOP on the text
for an amendment to the 1996 Operating Agreement for the
Project for Control of Narcotics last amended in September
2004 (Reftel). The amendment would incorporate Fiscal Year
05 funds in the amount of 57,932,000 dollars. We have
agreed to a one-year continuation of the 1996 Operating
Agreement until September 30, 2006. The manner of concluding
the agreement would be an exchange of diplomatic notes. The
diplomatic notes would incorporate into the Operating
Agreement the amendments whose text is provided in this
message. The bilateral umbrella Agreement To Combat the
Illegal Use, Illicit Production and Trafficking of Drugs
Between the Government of the United States of America and
the Government of Peru would remain in force as specified in
Article IX of that Agreement.


2. Post requests Authorization to sign the Letter of
Agreement (LOA) and that INL provide the appropriate fiscal
data.


3. Text of the Diplomatic Note:

The Embassy of the United States of America presents its
compliments to the Ministry of Foreign Relations of the
Republic of Peru and has the honor to propose amending the
1996 Operating Agreement for the Project to Control of
Narcotics, as amended in September 2004, in the following
manner:

Article III: Replace the language with the following text:

SPECIFIC PROJECTS & MEASUREMENT CRITERIA


Specific projects and their respective goals and measures of
performance for Fiscal Year 2005 funds provided by the USG
are contained in the Annex which is part of this amendment
that describe this year's activities.

For the period from October 1, 2005 to September 30, 2006
the targets and measures of performance for this LOA will be
the following:

(1) Coca Reduction: The goal of this project is to reduce
the number of hectares of coca under cultivation through
eradication of illegal coca to 27,000 hectares. The Crime
and Narcotics Center (CNC) of the Government of the United
States of America is responsible for measuring progress
toward this goal.

(2) Police counter-narcotics enforcement: The goal of this
project is to develop police operations to combat illicit
drug trafficking and associated crimes, to eradicate opium
poppy and its by-products 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 law enforcement operations; the
dismantling of drug trafficking organizations, increased
arrests of drug traffickers, and greater seizures of illegal
weapons, illicit drugs, precursor chemicals and goods as a
result of these operations. Funds will be used by Peruvian
institutions to implement the Chemical Control Law approved
by Peru's Congress in 2004 through the establishment of
checkpoints on major roads and a mobile unit that will
operate in the drug producing zones. One goal will be an
increase in arrests of drug traffickers and seizures of
chemicals.

Another goal shall be to increase the number of PNP DIRANDRO
troops deployed in drug production zones from a baseline of
570 troops in 2004 to 1350 troops in 2006. A third police
academy shall be opened in Ayacucho in 2006.

3) Counter-narcotics Police Aviation Support: The goal of
this project is to optimize the operating capability of the
anti-drug units of the PNP Aviation police. The criteria for
measuring progress toward this goal is the number of counter-
drug missions undertaken in cooperation between the PNP
Aviation Police (DIRAVPOL) and the anti-narcotics police
(DIRANDRO).

Another goal is to use 24 UH-2 helicopters that have or will
be turned over to the PNP during the term of this amendment
for eradication and interdiction missions. With the
increase of the PNP helicopter fleet by 8, the number of
flight hours will increase from 5,000 to 7,200 hours.

(4) Prosecutions by the Public Ministry: The goal of this
project is to train senior prosecutors throughout Peru and
integrate the prosecutors that they supervise into anti-drug
operations. The measurement criteria shall be the increase
in the participation of prosecutors to support counter-drug
operations.

(5) Demand Reduction: The goals of this project are to halt
the increase in drug abuse and, in the longer term, to
reduce the incidence of drug abuse in Peru; to increase
popular support for effective action against narcotics
production and trafficking; and to protect youth from the
dangers of drug abuse through community activities. Criteria
for measuring progress toward this goal include a reduction
in the number of drug-abusers; results of public opinion
surveys that measure changes in public sentiment toward the
production and trafficking of drugs; community activities to
protect the population from drug sales in their
neighborhoods; and the reduction in public tolerance of
narcotics production and trafficking.
(6) Policy and Institutional Development: The goal of this
project is to strengthen the process of counter-drug
policymaking and its implementation within the Peruvian
Government. Criteria for measuring progress towards this
goal are set forth in Peru's National Strategy for the Fight
Against Drugs. Another measure will be progress by the GOP
in implementing its anti-money laundering laws and anti-
corruption programs related to narco-trafficking.

(7) Airports and Seaports: The goals of this project are to
interdict the flow of illicit drugs, people suspected of
drug trafficking, illegal weapons and illicit precursor
chemicals passing through airports, seaports and lakes
to/from Peru. A key element of this project is to establish
fully functioning Manifest Review Groups and canine teams in
2006 at Jorge Chavez International Airport, and in the ports
of Callao, Paita, and in two other ports to be determined by
mutual agreement. The target for measuring progress towards
this goal will include the number of cargo manifest reviews,
inspections and operations conducted by Peruvian Coast
Guard, Customs, and Police units. Another goal is to
establish a capability at Jorge Chavez airport to inspect
air cargo that is suspected of containing narcotics or other
contraband.

Article XI, point a. Replace the language with the
following text:

This Operating Agreement will continue in effect until
October 1, 2006, unless the Parties decide to extend it.

Replace the language in Annex 2 of the Operating Agreement
with the following text:

Narcotics Affairs Section (NAS) Programs in Peru with FY
2005 Funds ($57,932,000)

Law Enforcement Support, ($18,400,000)

The goal of this project is to strengthen the operational
capabilities of the Counter-narcotics Police in Peru (PNP -
DIRANDRO) in order to seize chemicals and illicit drugs. A
significant number of law enforcement operations are planned
during the term of this Amendment in the major coca-growing
valleys as well as in the transit zones, to interdict
illicit chemicals and drugs. These operations are essential
to discourage these activities including the cultivation of
coca. These operations will be conducted in the air, on land
and on rivers and along the coast, and will include road
stops and the use of canines. Funding will be used to
provide training and field exercises for DIRANDRO troops to
enhance their capabilities to conduct operations, as well as
to provide security for CORAH eradication teams. These
enhanced law enforcement efforts will require additional
vehicles, communications equipment, field gear,
emergency/safety reaction gear, and drug detector dogs.

These funds will also be used to support basic police
training academies in Santa Lucia and Mazamari as well as
the training at WHINSEC. The FBI, DEA and other
institutions will also conduct training.

The funds will also be used to provide DIRANDRO with
necessary infrastructure at police bases in the Huallaga and
Apurimac/Ene Valleys. The funds will also be used to
enlarge the Special Operations Unit of DIRANDRO.

Aviation Police Support, ($18,517,000)

Aviation support for law enforcement covers operating and
maintenance costs for the National Police Aviation Division
(DIRAVPOL). It provides funding for pilots, aircrews, and
support personnel for up to 24 USG-owned helicopters and 2
fixed wing aircraft, which will be used to support coca
eradication and law enforcement actions. Funding will be
used to support the counter-narcotics operations of the USG-
owned helicopters, providing fuel, maintenance, hangars,
aircraft rental and operational support for DIRAVPOL
personnel. Funds will be used to acquire and operate an
additional C-208 aircraft that can carry out transport and
reconnaissance missions.

Riverine and Port Security Support, ($992,000)

The goal of this project is to strengthen Peruvian
capabilities to conduct counter-narcotics law enforcement
operations at Peru's seaports and airports. These funds
will be used to strengthen the capabilities of the Ministry
of Transportation and Communications, the Peruvian Coast
Guard, the National Port Authority, Peruvian Customs and the
Peruvian National Police to carry out operations against
drug trafficking and related crimes. The Port Security
Project will support the activities of Manifest Review
Groups to examine cargo manifests in the Port of Callao, at
the Jorge Chavez International Airport and at three
additional Peruvian ports to identify cargo containers
suspected of containing contraband. Funds will also be used
to maintain USG-provided riverine infrastructure and
facilities and provide support to Peruvian institutions for
counter-narcotics activities designed to disrupt and
dismantle illegal trafficking. A third objective is support
the Peruvian government authorities that undertake counter-
narcotics operations in Peru's coastal waters. Six 40-foot
Sea Ark boats will be used to intensify port security and
carry out patrols and the inspection of vessels suspected of
carrying contraband.

Coca and Opium Poppy Eradication, ($7,640,000)

The objective of eradication efforts is to reduce the amount
of coca leaf destined for drug trafficking as well as to
eliminate coca being grown in national parks and other areas
protected by the State of Peru. Funds will also be provided
to DIRANDRO to provide security protection to CORAH
eradication operations. CORAH will also support programs
that identify and eradicate opium poppy that will be carried
out by DIRANDRO. Funding will support CORAH to build,
improve and/or maintain facilities used by the PNP and the
military that are involved in counter-narcotics operations.

Support to the Armed Forces, ($2,140,000)

The Peruvian Air Force will use funding to support counter-
narcotics operations. These funds may be used to improve
facilities, for construction, operational costs and aircraft
modifications, communications equipment, fuel and refueling
facilities and training.

Peruvian Customs, ($1,500,000)

The purpose of this project is to support the Customs
Service, a component of the Ministry of Economy and Finance,
which is responsible for the control and inspection of cargo
arriving and departing Peru through its ports and borders at
airports and maritime terminals. Funds will be used to
support expanded Customs operations at Jorge Chavez
International Airport to improve the control and inspection
efforts directed against drug trafficking via air cargo.

Crop Monitoring and Research, ($3,970,000)

CADA (Coca Survey and Verification) is a branch of CORAH.
CADA prepares maps, and monitors the amount of coca and
opium poppy being grown in Peru in order to measure the
growth trends, identify areas for eradication and to verify
the extent of coca reduction. It also supports and verifies
gradual and concerted reduction of coca eradicated
voluntarily. Initially founded to track the reduction of
coca in certain areas where there were Alternative
Development programs, CADA has expanded its coverage to all
coca-growing zones. The measurement of coca and the
verification of crop reductions that CADA undertakes is a
key component to the gradual and concerted reduction of the
coca crop.

This project will also be used to support the Tropical Crop
Institute (ICT),whose task is to provide research and
extension services for alternative crops to coca that form
part of the Alternative Development program. This project
will continue to undertake activities designed to raise the
profitability of alternative crops in alternative
development areas. The ICT will provide agricultural
extension services with a variety of training and technical
assistance programs to farmers who stop growing coca.

Administration of Justice/Prosecutors, ($1,685,000)

Funds will be used to support prosecutors with the Public
Ministry of the Peruvian Government that have jurisdiction
to intervene in operations directed against drug trafficking
and related crimes. This project will provide training and
support to Public Ministry prosecutors working in drug
growing and drug transit zones. Funds will be used to
provide equipment and to support prosecutors working outside
of Lima.

Money Laundering and Anti-Corruption Programs ($496,000)

Funds will be used to strengthen the operational capability
of Peruvian government institutions that have responsibility
for money laundering and combating corruption related to
drug trafficking. The goal is to increase their ability to
carry out investigations for reference to the Public
Ministry.

A portion of these funds will be provided to the Financial
Intelligence Unit of Peru to strengthen its technical
capacity in combating money laundering. The remaining funds
will be used to support other institutions that develop
programs directed against money laundering and corruption
related to drug trafficking.

Chemical Diversion Control, ($124,000)

The purpose of this project is to reduce the availability of
chemicals that could be diverted to make illegal drugs.
These funds will be used to finance activities to implement
the Chemical Control Law 28305 and its regulations.

The funds will be used to support the Ministry of Interior -
DIRANDRO, Customs, and the Public Ministry to develop
national training programs for authorities in the legal,
technical and enforcement aspects of chemical control.
Funds will also be used to rehabilitate a computer-based
registry for the chemicals industry and users. Resources
will also be used to establish chemical controls checkpoints
on the major roads connecting Lima to the source zones using
a mobile unit.

Institutional Development, ($248,000)

The purpose of this project is to strengthen the capacity of
DEVIDA to fulfill its mandate to coordinate the
implementation of GOP drug policy set forth in the National
Strategy to Fight Drugs. Funds will be used to support
development of national drug control policies and to enhance
communication and coordination between the various GOP
agencies involved in the counter-narcotics effort. Another
goal is to promote multilateral and bilateral coordination
of counter-narcotics programs.

Drug Awareness/Demand Reduction, ($1,585,000)

The program is directed at supporting the Ministry of
Education and other state institutions, the Municipal
Council and other civil society entities that operate drug
demand reduction and prevention programs through public
relations and community action activities that include:

- conducting surveys on drug abuse to identify groups
requiring assistance,
- meetings and other activities related to demand
reduction and prevention
- promotion of community coalitions to protect vulnerable
populations from drug trafficking and consumption.

Public Relations/Media Engagement, ($635,000)

This project is designed to fund information campaigns
compatible with the National Strategy to Fight Drugs about
the problems and incidence of the illegal drug trade in
Peru.

NGO partners selected to inform the Peruvian public about
the dangers of narcotics trafficking will use funding to
continue supporting efforts. Funds will also be used to
raise public media's awareness of and engagement in the
fight against drugs and related crimes.


3. If your Government agrees with this text, the Embassy
proposes that this note together with its reply, signaling
that the above text is accepted, would constitute an
agreement between our Governments that will enter into
effect from the date of the reply.

Complimentary closing

End text of Diplomatic note
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