NAS MONTHLY REPORT, SEPTEMBER 2006

C O N F I D E N T I A L LIMA 004066 SIPDIS SIPDIS STATE FOR INL/LP STATE FOR WHA/PPC ONDCP FOR LT COL RONALD GARNER E.O. 12958: DECL: 10/12/2016 TAGS: SNAR KCRM ASEC PREL PE SUBJECT: NAS MONTHLY REPORT, SEPTEMBER 2006 REF: A. LIMA 03677 ¶B. LIMA 03882 ¶C. LIMA 03777 Classified By: Susan Keogh, NAS Director, for reasons 1.5 (c and d) -------------- SUMMARY -------------- ¶1. (U) The key developments in September 2006: ** As of September 30, CORAH eradicated 9,039 hectares of coca. ** Cocalero confrontation with PNP eradication security in Sion caused a halt in eradication while GOP investigated. CORAH is now working in areas away from populated areas to avoid social conflict. ** New CORAH Director named--a change for the better. ** NAS is working on a new public communications strategy for counternarcotics. ** Coca leaf prices hover around 70 Nuevo Soles per arroba; price depends on eradication/interdiction efforts. ** NAS signed a USD $1 million, one-year extension for the maintenance and operational support of two FAP C-26 aircraft. ** Ports Program received a Commendation Award from the International Narcotics Enforcement Officer Association. ** NAS initiates innovative computer system to target cargo/containers for inspection. Airport seizures continue to increase. ** Community Anti-Drug Coalitions start second year with many lessons learned. END SUMMARY -------------- ERADICATION HALTED AFTER COCALERO CONFRONTATION -------------- -- ¶2. (U) On September 11, after months of peaceful eradication, cocaleros attacked the 105 Peruvian police (PNP) protecting 199 coca eradicators in Sion, San Martin department. The police restored control after 30 minutes, and eradication continued. The cocalero demonstrators injured two police, one with gunshot wounds; both are in stable condition. A number of Police, CORAH workers and cocaleros received contusions in a rock throwing melee. The Prime Minister, who two weeks earlier had initiated a dialog with cocalero leaders, called for a temporary halt to eradication. On September 26, pro-coca Congresswoman Nancy Obregon threatened the GOP with a "coca war" against eradication at a press conference. Minister of Interior Pilar Mazzetti immediately responded that the GOP would continue eradicating illegal coca (Ref B). -------------- COCA ERADICATION TOPS THE 9,000 MARK -------------- ¶3. (SBU) As of September 30, CORAH had eradicated a total of 9,039 hectares. The monthly total was lower than expected due to the conflict in Sion. On September 29, 97 police and 102 CORAH workers resumed eradication operations in areas away from settlements and roads, to try to avoid social conflict, although the call for resistance by Nancy Obregon indicates we can expect more confrontations. CORAH and the PNP identified over 1,300 hectares in central San Martin that were not close to populated areas, making it harder for local growers to congregate. (Ref A). ¶4. (C) The GOP's newest eradication plan (dubbed "Eradication Lite") calls for eradication in the San Martin/Upper Huallaga area to operate within certain limits, e.g., not in proximity to towns (Ref C). To avoid conflict, the eradicators and security forces will be rotating out of an operational area every few days and "leapfrogging" to avoid demonstrators. ¶5. (C) One result of the Sion confrontation was the appointment of PNP Gen. (retired) Juan Zarate as the new CORAH chief. Zarate has a background in police intelligence as well as having served in the Ministry of Interior (MININT) intelligence unit. He has maintained extensive contacts in the government, particularly in MININT. (Comment: Zarate is a positive change as the new CORAH Director--he is forthright and supportive of the programs. We expect he will be a real asset for CORAH in dealing with the political dimensions of eradication. End Comment) ¶6. (U) On September 19, NAS accompanied Vice Minister of Interior Dardo Lopez-Dolz and other GOP representatives on a familiarization visit to the Santa Lucia and Mazamari police bases, to give them an opportunity to talk to eradication security police, CORAH workers and students at the NAS-sponsored Training Academies. Lopez-Dolz also met with students from the newly-instituted pre-Academy in Santa Lucia, where 300 students from the area will study general education with the goal of qualifying for the entrance exams for the NAS/PNP Academies. -------------- -------------- NAS WORKING ON NEW PUBLIC COMMUNICATIONS STRATEGY -------------- -------------- ¶7. (SBU) NAS is working with other USG agencies to develop a new public communications strategy for counternarcotics. One part of the strategy that is being developed now is a quick-response system for gathering accurate information on an event, analysis of that information, and then rapid delivery of the information to all levels of the GOP for background use and release to the media. A second part of the strategy is to expand to the national level the program countering cocalero propaganda--a message extolling the successes of alternative development and the importance of coca eradication for assuring the security and future of Peru. -------------- CORAH IMPROVES ITS INTERNAL OPERATIONS -------------- ¶8. (U) CORAH hired a new Internal Auditor, who will ensure the efficient use of funds for reaching CORAH's objectives. It is also in the process of hiring a new Legal Advisor. By the end of the year, CORAH will be using a new computer system (SIA - Integrated Administration System) that will integrate all administration sections. It should save money and improve operations by simplifying the paperwork, reducing the administrative staff, and producing financial statements more rapidly. -------------- -------------- ERADICATION AND INTERDICTION AFFECT COCA LEAF PRICES -------------- -------------- ¶9. (U) As of September 30,2006, the DIRANDRO Special Operations Team has seized 589 cocaine-base laboratories, 9 cocaine-HCl laboratories,166 tons of precursor chemicals, and destroyed 869 tons of coca leaf, which has prevented the production of 9 tons of cocaine-HCl in the VRAE. To date, the coca leaf price in Aguaytia is 70 nuevo soles per arroba (11.5 kg),the same as last month. However, after the GOP stopped eradication in San Martin (see Para 2),the price of the coca leaf rose from 80 to 95 nuevo soles in that particular area. -------------- -------------- SUPPORT FOR C-26 AIRCRAFT CONTINUES; UH-2 PILOTS TRAINED -------------- -------------- ¶10. (U) On September 15, NAS signed a one-year extension of the MOA with the Peruvian Air Force (FAP) for the continued maintenance and operational support by the USG for two FAP C-26 aircraft. The USD $1 million ARINC contract covers time and materials. This is the second year NAS has provided support for the FAP Counternarcotics Joint C-26 air squadron. Nine new Air Police pilots started the UH-2 qualification course in Pucallpa. Two Peruvian Air Police instructor pilots are participating, with the long-term goal to nationalize the qualification course. ¶11. (U) The Peruvian (FAP) and Colombian (FAC) Air Forces conducted a joint counternarcotics aerial interdiction exercise in Iquitos September 10-15. Two USAF technicians advised the FAP in the use of their CNIES (Cooperating Nations Information Exchange System) station in Iquitos. This is the second joint exercise with FAC in the last year. -------------- -------------- PORTS PROGRAM WINS LAW ENFORCEMENT AWARD; SEIZURES INCREASE -------------- -------------- ¶12. (SBU) The NAS-sponsored, Peruvian Customs/Police Manifest Review Unit (MRU) at the Port of Callao was recognized this month by the International Narcotics Enforcement Officer Association with a Commendation Award for "Outstanding Service and Dedication to Duties in the Area of Law Enforcement, 2005-2006". This is the top annual award for all units engaged in interdiction of illicit narcotics in export products. From August 2005 to July 2006, the NAS Ports Program (at seaports) was directly/indirectly involved in the seizure of 11.83 metric tons of cocaine (76 percent of which was heading for the U.S.). Data provided by Peruvian Customs/National Police indicate a 3-fold increase in cocaine seizures over last year. Next month, an operation to scan shipping cargo/containers will begin at the port of Callao (nearly one millon containers pass through this port annually); such large-scale automated container searches have never been attempted in Peru before. ¶13. (SBU) The interdiction effort at the Lima International Airport has netted 1500 kg o cocaine-HCl since January 2006, twice the amount seized prior to NAS support. Soon, mobile x-ray vans will be used at the international airport, increasing seizures significantly. The Peruvian Post Office (SERPOST) seized 200 kg of cocaine during the same period. NAS air/seaport counter-drug efforts continue with infrastructure support, training, technical assistance, communications connectivity, and equipment, e.g., non-intrusive instruments such as ion scanners and fiber-optics. ¶14. (SBU) On September 27, Peruvian Customs unveiled an innovative computer program to increase drug interdiction inspections of shipping containers and cargo. Previously, Peruvian Customs received very limited manifest information, and ship owners were not required to provide the information until five days after the ship left port. Many containers went straight from the terminals to the ships for export. Peruvian Customs now requires export information 48 hours prior to departure. Data from the terminals, the national port authority, and Peruvian Customs are submitted to a data analysis system that provides information for targeting cargo/containers for scanner and physical inspections. -------------- -------------- LESSONS LEARNED ABOUT COMMUNITY ANTI-DRUG COALITIONS -------------- -------------- ¶15. (U) Based on in-depth evaluations by an external team during the first year of community anti-drug coalitions (CAC),NAS has learned some lessons. For example, community resources are usually sufficient to pay the majority of the costs of CAC activities--you just have to ask and be a bit inventive. Members of the community and social-organization leaders need training in basic skills such as leadership, managing meetings, conflict resolution, and fundraising, to name a few--all life skills necessary for running a CAC. The Peruvian-held stereotype that Peruvians will not volunteer and are just looking out for themselves is wrong-headed--community members have been overwhelmingly enthusiastic with no lack of volunteers. STRUBLE