CUBA: PERU REVIEW FOR SUSPENSION OF TITLE III OF

C O N F I D E N T I A L LIMA 004579 SIPDIS SIPDIS DEPT FOR WHA/CCA AND WHA/AND E.O. 12958: DECL: 12/06/2016 TAGS: ETTC ETRD PREL CU PE SUBJECT: CUBA: PERU REVIEW FOR SUSPENSION OF TITLE III OF THE LIBERTAD ACT REF: STATE 191752 Classified By: CDA Phyllis M. Powers, reasons 1.4 (b) and (d) ¶1. (U) Following is Post's response to reftel questions. PERUVIAN INVESTMENTS IN CUBA -------------- ¶2. (U) There is no reliable data on Peruvian investment in Cuba. The vast majority of Peru's limited foreign direct investment is in Mexico, Bolivia, Ecuador, Central America, and the Cayman Islands. TRADE AGREEMENTS -------------- ¶3. (U) There are no bilateral trade agreements between Peru and Cuba. Trade between the two countries is minimal. From January through November 2006, the value of Peru's exports to Cuba totaled USD 2.8 million, ranking Cuba 70th worldwide in terms of exports received from Peru. About 75 percent of Peru's exports to Cuba consisted of: polymer plates, laminates, sheets, strips, bags, cones and adhesives; books, brochures and similar printed materials; and frozen, dry, salted or briny squid and cuttlefish. Peru only imports about half a million dollars worth of products from Cuba per year, including rum, vaccines and medical products. PERU-CUBA EXCHANGE PROGRAMS -------------- ¶4. (SBU) In 1999 the two countries signed a Basic Agreement on Technical Cooperation, but little has been implemented under this agreement due to lack of financing and prioritization. About 40 Peruvian students study medicine and physical education in Cuba on GOC scholarships at any given time. GOP EFFORTS TO PROMOTE DEMOCRACY AND HUMAN RIGHTS IN CUBA -------------- ¶5. (C) Peru's current leaders have been guarded and pragmatic on the leadership situation in Cuba. After lamenting Fidel's deteriorating health, Peruvian Prime Minister Jorge Del Castillo told the press on August 1 that the international community should prepare itself to assist in a political transition in Cuba to avoid "a civil war." Del Castillo noted that Cubans are divided into "impassioned groups" and that "it is necessary to form a group that can play a role" in assuring a peaceful transition in that country. While the previous Toledo Administration was often openly hostile towards the Castro regime, including support for many of the UNCHR resolutions on Cuba, the new Garcia Administration has not yet made any significant pronouncements on Cuba one way or the other. MFA officials have told us Peru would likely not play a prominent or high-profile role in any future political transition. HIGH LEVEL VISITS -------------- ¶6. (SBU) There have been no high-level diplomatic visits between the two countries in the past six months. Peruvian President Alan Garcia took office in July 2006 after defeating Chavez and Castro-friendly far-left nationalist candidate Ollanta Humala in a heated race, and has openly criticized both Chavez and Castro. The MFA's Assistant Secretary-level chief of Multilateral Issues, Ambassador SIPDIS Antonio Garcia Revilla, represented Peru at the Non-Aligned Movement (NAM) summit in Havana in September 2006. POWERS