PERU AND CUBA: NSC-DIRECTED REVIEW REGARDING

C O N F I D E N T I A L SECTION 01 OF 02 LIMA 005087

SIPDIS

DEPT FOR WHA/CCA, WHA/AND

E.O. 12958: DECL: 12/01/2015
TAGS: ETTC PREL PE
SUBJECT: PERU AND CUBA: NSC-DIRECTED REVIEW REGARDING
SUSPENSION OF TITLE III OF THE LIBERTAD ACT

REF: A. STATE 207359

B. LIMA 1556

Classified By: CDA Phyllis Powers for reasons 1.4 (b) and (d).


1. (U) The following is Post's response to reftel A.

No Political Support for Cuba
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2. (U) The Peruvian Government maintains formal relations
with the Cuban Government, but the two countries have modest
diplomatic contacts and bilateral trade. The last visit by a
Peruvian Foreign Minister to Cuba was in January 2002 (Diego
Garcia Sayan),while the last visit by a Cuban Foreign
Minister to Lima was in October 2000. In 1999 the two
countries signed a Basic Agreement on Technical Cooperation,
but little has been implemented under this agreement due to
lack of financing. Some 400 Peruvian students study medicine
and physical education in Cuba on GOC scholarships.


3. (C) President Alejandro Toledo personally condemns the
Castro regime, its human rights abuses, and its economic
policies. He and the GOP are also concerned over Castro's
ties to Venezuelan President Hugo Chavez, whom Toledo has
termed "a Castro with petrodollars." Under Toledo's
leadership, Peru supported the UNCHR Cuba resolutions in
2001-2004, earning rebuffs from the GOC. In May 2004, Peru
temporarily withdrew its Ambassador to Havana in protest over
derogatory comments by Fidel Castro related to Peru's role in
passage of that year's Cuba Resolution. In 2005, however,
Peru abstained on the Cuba Resolution at the urging of
Brazilian President Lula and Argentine President Kirchner
(Ref B). On the other hand, Peru opposed the Cuba-sponsored
resolution on alleged human rights violations in Guantanamo
at the 2005 UNCHR.


4. (U) Peru, as a member of the Non-Aligned Movement,
traditionally supports United Nations resolutions condemning
the U.S. economic "embargo" against Cuba, as well as
declarations condemning the Libertad Act by regional
organizations such as the Rio Group, ALADI and the
Ibero-American Summit.

No Confirmed Investment in Cuba
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5. (SBU) Peru has minimal foreign direct investments (FDI)
abroad, totaling $800 million in 2004. Most of Peru's FDI,
invested by Banco de Credito (Peru's largest bank),is found
in Mexico, Bolivia, Ecuador, Central America and the Cayman
Islands. Gladys Choy, Director of the Central Bank's Balance
of Payment Division, could not confirm whether Peruvian
companies or individuals had any investments in Cuba. She
did allude, however, that if any investments exist, they are
very small and not worthwhile. (Note: While the Central Bank
tracks Peruvian foreign direct investment abroad, it does not
release the data to the public because it believes the data
is unreliable. End Note.)


6. (U) Trade between Peru and Cuba is negligible. According
to the Ministry of Trade and SUNAT (Peru's Tax and Customs
Authority),Cuba is Peru's 70th trading partner. Peruvian
exports to Cuba totaled $2.5 million in 2004, up from $2.4
million the previous year. Peru exported fishmeal and other
fish products, plastic goods, and zinc alloy. Imports from
Cuba were $0.4 million in 2004 and $0.3 million in 2003.
Imported products included rum, vaccines and medical
products.

Comment
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7. (C) The Peruvian Government is hostile to the Castro
regime and, until this year's UNCHR, was the leading Latin
American proponent of UNCHR resolutions condemning Cuba's
human rights record. Continued suspension of the Libertad
Act's application to Peru and its citizens would be in the
U.S. national interest. Application of that legislation to
Peru would likely engender ill will, reduce the likelihood of
GOP support in the future, and (inasmuch as Peru has minimal
bilateral trade and investment links with Cuba) have little
or no effect on the trafficking or use of confiscated
property in Cuba.
POWERS