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)

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SUMMARY
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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

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ERADICATION HALTED AFTER COCALERO CONFRONTATION
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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).

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COCA ERADICATION TOPS THE 9,000 MARK
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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.

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NAS WORKING ON NEW PUBLIC COMMUNICATIONS STRATEGY
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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.

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CORAH IMPROVES ITS INTERNAL OPERATIONS
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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.

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ERADICATION AND INTERDICTION AFFECT COCA LEAF PRICES
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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.

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SUPPORT FOR C-26 AIRCRAFT CONTINUES; UH-2 PILOTS TRAINED
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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.

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PORTS PROGRAM WINS LAW ENFORCEMENT AWARD; SEIZURES INCREASE
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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.

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LESSONS LEARNED ABOUT COMMUNITY ANTI-DRUG COALITIONS
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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