TOLEDO CRITICIZES CHAVEZ IN ARMY DAY SPEECH

UNCLAS LIMA 005322 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: PREL PGOV PINR PE SUBJECT: TOLEDO CRITICIZES CHAVEZ IN ARMY DAY SPEECH Sensitive but Unclassified. Please protect accordingly. ¶1. (U) President Alejandro Toledo clearly, albeit indirectly, criticized Venezuelan President Hugo Chavez during his Army Day speech on 12/9. In his remarks, President Toledo recalled that Army Day commemorates the Battle of Ayachucho, where an army made up of recruits from many nations defeated Spain and won Peru's independence. Toledo noted that the republics of this continent began with a dream of integration and said that the region is again seized with this desire. He warned, however, that integration must be based on the common values of democracy, rejecting the false path of populism. ¶2. (U) Toledo stated that Peru had advanced both politically and economically since he took over the presidency in July ¶2001. He explained that the country had transitioned from an oppressive dictatorship to a democracy and had maintained four years of solid economic growth. The President then contrasted the path taken by Peru with that offered by "other states" where politicians use populism to gain power and then, upon taking power, concentrate all control in their own hands. He criticized any ruler who would foment discontent and divisions among his own people to achieve personal objectives, as well as leaders who made false promises to the poor and disenfranchised to gain their support only to betray their hopes by not following through with sound economic policies. Toledo concluded by urging his countrymen to continue the successful polices of his government and to remain united. ¶3. (SBU) At a lunch later that day, Toledo asked the Ambassador whether he had noted the condemnation of Chavismo and was pleased at the Ambassador's assent. When President Toledo subsequently addressed those at the lunch, he repeated his messages about the right and the wrong path towards South American integration, highlighting the common values of democracy that Peru shares with the United States. He added that the Free Trade Agreement (FTA) is more than just a commercial accord. ¶4. (U) Comment: Toledo's comments were a thinly-veiled criticism of Venezuelan President Hugo Chavez and his anti-democratic, anti-U.S., anti-market model. A substantial Venezuelan military contingent attended the Army Day celebration, and undoubtedly understood the Peruvian President's message. End Comment. STRUBLE