VIEWS FROM THE CAMPAIGN TRAIL: CRACKS APPEAR IN

UNCLAS LIMA 001345 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PINR PE SUBJECT: VIEWS FROM THE CAMPAIGN TRAIL: CRACKS APPEAR IN APRA'S "SOLID NORTH" Sensitive but Unclassified. Please Protect Accordingly. -------------- Summary: -------------- ¶1. (U) During a 4/4-5 visit to the northern coastal area, local observers told Poloff that APRA presidential candidate Alan Garcia will likely carry Chiclayo by a narrow margin, with Unidad Nacional's Lourdes Flores and Union por el Peru's (UPP) Ollanta Humala battling for second place. In Piura, Garcia may well lose to Flores, as dissatisfaction with unpopular local APRA officials is dragging him down. The north coast has traditionally been considered solid APRA country, and Garcia is counting on a strong showing there to carry him into the second round of presidential balloting. Consequently, the evidence of wavering supper for APRA in this region bodes ill for Garcia's prospects. End Summary. -------------- A Swing Through APRA's "Solid North" -------------- ¶2. (U) Poloff visited Chiclayo and Piura on 4/4 and 4/5 to gauge support for the different candidates in two regions that have historically formed a key part of APRA's political base in the so-called "solid north." In Chiclayo, Poloff met with Binational Board members Luis Noriega (businessman, construction) and Victor Vaca (attorney); Dr. Julio Hidalgo of the local Ombudsman's Office; Lambayeque Regional President Yehude Simon; Regional Government Technical Advisor Juan Sandoval; editor of the local paper "La Industria" Ivan Vasquez; University of Pedro Ruiz Gallo Rector Francis Villena Rodriguez; and President of the Chiclayo Chamber of Commerce German Fernandez Castro (raises fruits for export to the U.S. and EU). In Piura, Poloff met with Editor for local paper "El Tiempo: Rosa Laban; National University of Piura Rector Antenor Aliaga and his staff; Dr. Eugenia Fernan Zegarra of the local Ombudsman's Office; University of Piura (private) Vice Rector Dr. Sergio Balarezo; APRA Party Piura Regional President Cesar Trelles; and local "Radio Cultivalu" Director Ricardo Castillo. ¶3. (U) Chiclayo and Piura are primarily dependent on agriculture. Chiclayo produces sugar, though the industry is very weak, hobbled by an inefficient series of cooperatives that date from the 1968-74 Velasco era and depend on state support for their survival. Piura's economic base lies in agricultural exports (fruits like lemons and mangos as well 
as paprika),a significant fishing industry as well as petroleum production. -------------- Chiclayo Seen Going with Garcia, But Barely -------------- ¶4. (U) Most observers in Chiclayo stated that the region would likely go for Alan Garcia, but not by much. A constantly-repeated refrain was, "The North is no longer so solid (for APRA)." When asked to hazard a guess as to final vote percentages in the presidential race, most locals predicted that Garcia would win Lambayeque Department with about 30 percent of the local vote, trailed closely by Flores Nano and Ollanta Humala, who would fight it out for the second spot. ¶5. (SBU) While most saw Garcia winning, Dr. Julio Hidalgo of the Ombudsman's Office, a person with constant contact with poor, marginalized Peruvians who have complaints against the government, predicted that Ollanta Humala would carry Chiclayo. Hidalgo noted several factors that had contributed to Humala's support, including: opposition to the Peru Trade Promotion Agreement from local sugar producers, whose inefficient cooperatives survive on protest-generated tax breaks and occasional state subsidies; the strong support Humala has in rural areas; and the fact that many locals trust neither Lourdes Flores nor Alan Garcia. ¶6. (SBU) Hidalgo echoed other local observer's comments in both Chiclayo and Piura that most of Humala's supporters are socially and economically marginalized persons who at a gut level identify with Humala as a protest instrument, and may have vague hopes to getting some benefit from him should he become President. -------------- Humala Has Captured the Left's Electorate -------------- ¶7. (U) Regional President Yehude Simon, leader of the leftist Humanist Party (part of the Concertacion Decentralizada alliance),lamented how the combination of fragmentation on the left and Humala's populist message has enabled the ultra-nationalist "outsider" candidate to rob much of the left's natural electorate among the urban poor and marginalized rural dwellers. Simon said that he knew of middle class leftists so disgusted with APRA and Lourdes Flores that they will vote for Humala. Simon himself plans to vote for his alliance partner Susanna Villaran in the first round, but stated unequivocally that he would support Lourdes Flores in the second round because, as he put it, "She is a democrat, not an autocrat (like Humala),and we can work to correct her errors." Simon views Humala as a serious threat to Peruvian democracy. ¶8. (U) In regard to Chiclayo's five Congressional seats, most observers expected a split result, similar to that likely in the presidential race, with APRA taking two Congressional seats and the rest being divided between Humala's Union por el Peru (UPP) Party, Paniagua's Centrist Front and Unidad Nacional. -------------- Could Lourdes Pull an Upset in Piura? -------------- ¶9. (SBU) The majority of local contacts in Piura said that Flores was on the verge of upsetting Garcia. Ironically, APRA's domination of the municipal, district and regional governments is working against the party. The Regional President, Cesar Trelles, has suffered politically from scandals in his management of the government's "Glass of Milk" Program, which provides free milk to poor families. Two years in a row, the milk has been stored badly; last year it soured and this year it was exposed to the elements before delivery. In addition, Trelles has been criticized for accepting a post as Garcia's local campaign chief while serving as Regional President. He quit as campaign head after the local Ombudsman's Office cited him for conflict of interest. Finally, the Ombudsman's Office has cited Trelles for mixing campaign activities with his duties as Regional President. Ombudsman's local rep Eugenia Fernan Zegarra said that Trelles appeared to be hoarding project funds so that initiatives could be announced late in the campaign. Her office also publicly cited Trelles for advertising inauguration ceremonies in the newspapers with ads that used APRA's colors (Trelles has stopped running the questionable ads). -------------- Rally to Rally, Lourdes Comes Out Ahead -------------- ¶10. (U) Dissatisfaction with local officials marred a Garcia rally in Piura on 4/2. Local motor taxi drivers (drivers of small-motor, three-wheeled vehicles that operate informally as taxis) are angry with a municipal ordinance that prevents them from operating as taxis. When Garcia arrived, the drivers formed a protest caravan that interrupted the beginning of his rally. In contrast, a number of observers noted that a 4/4 rally by Flores went far better. She attracted an enthusiastic crowd of 8,000 that was notably young and female. ¶11. (U) A local poll taken March 23 and 28 puts Flores in the lead with 26 percent of the vote. Garcia trails with 23 percent and Humala scores 19 percent. The poll measured the opinions of 440 local voters who lived in 14 districts of the 8 provinces of Piura, an area that includes 67 percent of the Piura Region's population. -------------- Local APRA Officials Confident -------------- ¶12. (SBU) Despite evident public criticism, APRA Regional President Cesar Trelles and his advisors waxed confident in a meeting with Poloff. They were sure that Alan Garcia would win the local vote with 42-44 percent, sweeping in as many as three of the Region's six congressional candidates with him. (The other Congressional seats, they said, would be divided between Humala's Union for Peru, Lourdes Flores' National Unity and Valentin Paniagua's Central Front.) ¶13. (SBU) The APRA reps spent a significant amount of time describing how a second Garcia government would be different from the first. Garcia, they said, had learned from his mistakes and would not nationalize banks, permit high inflaion or antagonize the United States this time around. Garcia believes in "the Chilean model" of Socialist Presidents Lagos and Bachelet, they said. APRA would also govern in alliance with other parties. Trelles advisor Victor Raul Trujillo told Poloff that he would not be surprised if Garcia invited Flores to take a high post in a future Garcia government. -------------- Comment: -------------- ¶14. (SBU) APRA will need a very strong showing in its "solid north" if Garcia is to reach the presidential run-off and/or if the party is to win a plurality in the next congress. Poloff's observations indicate that both possibilities are in doubt, given Flores' apparent appeal in the region, coupled with popular disenchantment for APRA's discredited performance in its northern regional and municipal governments. End Comment. STRUBLE