PAYMENT OF LETOURNEAU SETTLEMENT DELAYED

UNCLAS LIMA 001830 SIPDIS SENSITIVE SIPDIS DEPT FOR WHA/AND, WHA/EPSC, EB/TPP/BTA, EB/IFD/OFD, EB/CBA, EB/IFD/OIA, L/CID TREASURY FOR OASIA/INL COMMERCE FOR 4331/MAC/WH/MCAMERON USTR FOR AUSTR EEISSENSTAT AND BHARMAN E.O. 12958: N/A TAGS: EINV ETRD ECON PGOV PREL PE SUBJECT: PAYMENT OF LETOURNEAU SETTLEMENT DELAYED REF: LIMA 1263 and previous ¶1. (SBU) Summary. GOP Disputes Coordinator Aurelio Loret de Mola informed us May 11 that the GOP will be unable to pay LeTourneau its $10 million settlement by the May 15 deadline due to procedural delays. The Peruvian Government will issue a Supreme Decree regarding payment and will send the supplementary budget bill to the Economic Commission of Congress on May 12. Loret de Mola indicated that the Commission should approve the bill, sending it to the Congressional Plenary for a possible vote by May 22. Loret de Mola will contact LeTourneau with the news as soon as the Supreme Decree is published. End Summary. ¶2. (SBU) After LeTourneau's attorney accepted Peru's compensation offer on March 30, the payment of the approximately $10 million settlement appeared to be on track for the May 15 deadline (reftel). Aurelio Loret de Mola, Peru's Disputes Coordinator, informed us on May 11 that, due to procedural delays, the GOP would have to defer payment to LeTourneau until after the Peruvian Congress approves the supplemental budget. ¶3. (SBU) The GOP, according to Loret de Mola, will issue a Supreme Decree on payment on May 12 and will simultaneously send the supplemental budget bill to the Economic Commission of Congress for a vote. He estimates that the Commission will approve the supplemental budget -- which is the last budget request of the Toledo Government -- sending it next to the Congressional Plenary for a vote. Under the best- case scenario, the plenary vote would occur the week of May ¶22. Once Congress approves the budget, the GOP will issue an immediate payment to LeTourneau. ¶4. (SBU) Comment: Loret de Mola indicated that he will discuss the latest developments with LeTourneau's attorney on May 12, after the Supreme Decree is published. We will also contact LeTourneau to provide further clarification of the process. We are confident that the Peruvian Congress will approve the budgetary request and will issue payment to LeTourneau, concluding this ATPDEA dispute after more than 35 years. End Comment. STRUBLE