PERU'S GARCIA EXTENDS HAND TO CHILE

UNCLAS LIMA 003016 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PINR PHUM PE SUBJECT: PERU'S GARCIA EXTENDS HAND TO CHILE -------------- Summary: -------------- ¶1. (U) During his inauguration, Peruvian President Alan Garcia Perez made a deliberate and highly successful effort to improve Peru's relations with Chile. Garcia invited President Bachelet to be a guest of honor at Peru's annual Independence Day Military Parade on 7/29, and Peruvian Foreign Minister Jose Garcia Belaunde told the Chileans that the Garcia Administration was intent in improving the bilateral relationship. The Garcia administration clearly sees Chile as a geo-strategic and economic partner. For her part, President Bachelet was a hit with the press and public, receiving plaudits for, among a number of gestures, publicly singing Peru's national anthem. End summary. -------------- Inaugurating a New Relationship -------------- ¶2. (U) During his inauguration ceremonies, Peruvian President Alan Garcia Perez made a deliberate and so far highly successful effort to improve Peru's relations with Chile. Peruvians, occasional animus for their southern neighbor dates from the 19th century War of the Pacific, and during the Toledo Administration maritime border disputes, a flap over an unflattering video of Peru shown on the Chilean-owned Lan Peru Airline, controversy over possible Chilean acquisition of Peruvian ports and anti-Chilean elements in former opposition presidential candidate Ollanta Humala,s presidential campaign all, in their way, introduced tensions into the relationship. Garcia clearly saw the inauguration as a chance to get past these tensions and make headway on a geopolitical and economic relationship that he considers a priority for Peru. ¶3. (SBU) Chilean Political Counselor Fernando Velasco summed up for Poloff the positive gestures by both sides that he saw in the visit on 7/31. -Velasco emphasized that Chile sent a large, high-level delegation to the inauguration, one that included, not only the President and Foreign Minister, but also a dozen parliamentarians, including two members of the opposition. -The Chileans were pleasantly surprised when the Peruvians invited President Bachelet to be a special guest of honor at the traditional Independence Day military parade on 7/29. Velasco mentioned that there had actually been talk of having Chilean military officials march in the parade, but there had been no time to arrange this. -President Bachelet paid a visit to 91-year old APRA Party historic leader Armando Villanueva del Campo on Saturday, 7/29, along with Prime Minister Jorge del Castillo. Villanueva was a close friend and political ally of APRA Party founder Haya de la Torre. ¶4. (SBU) Gestures were also accompanied by clear words of encouragement from the Peruvians. Velasco noted that Peruvian Foreign Minister Jose Garcia Belaunde told the visiting Chilean delegation that former President Toledo had "mistreated" Chile and that the new APRA government intended to change this. ¶5. (U) For her part, President Bachelet proved skillful at responding. The Chilean President's mother lived in Peru for many years, and President Bachelet's knowledge of Peru was in evidence. She sang the Peruvian National Anthem during the military parade and remarked on her family connection to the country during the visit. Press coverage was laudatory. Chilean Ambassador Christian Barros hosted a dinner on Friday 7/28 that included his country's entire delegation as well as various Chilean business representatives. Peru's new Minster of Defense Alan Wagner, Housing Minister Hernan Lecca and various members of the new Peruvian Congress also attended. During the visit, Bachelet stated Chile's interest in signing a free trade agreement with Peru and in having her country return to the Andean Community. -------------- Comment: -------------- ¶6. (SBU) The Garcia administration is signaling a new tack toward Chile. Disputes like that over the maritime bourndary will be relegated to the appropriate international bodies. Garcia and his people see Chile as a key geostrategic partner on the Pacific Rim, and they are eager to build a strong relationship. So far, they are off to a good start. STRUBLE