GOP RESOLVES POTENTIAL CONFLICT OVER MARKET

UNCLAS LIMA 001940 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PTER PROG SNAR PIN PE SUBJECT: GOP RESOLVES POTENTIAL CONFLICT OVER MARKET REF: LIMA 1709 SUMMARY: -------------- ¶1. (SBU) In a near-flawless May 29 operation, several thousand Peruvian Police peaceably removed close to one thousand merchant squatters from Santa Anita market in central Lima. The success of the Santa Anita operation sent a powerful message that the GOP is serious about enforcing the rule of law. By resolving a tense, potentially explosive situation without recourse to physical violence, the GOP dodged a dangerous bullet and emerged with both its human rights credentials and its image of political resolve powerfully burnished. End Summary. ¶2. (SBU) In a near-flawless operation, one thousand Peruvian Police, backed by three thousand reinforcements, entered the Santa Anita Market in Lima and removed close to one thousand merchant squatters early in the morning of 5/29. The occupiers, mostly informal vendors, had taken over the market and refused to leave despite a judge's order that the property be returned to its rightful owner - the Lima Municipality. The demonstrators threatened to resist any attempt to eject them and appeared poised to use their children as human shields in the event of a police incursion. Unconfirmed rumors circulated that Ethnocaceristas, Venezuelans and other "agents provocateurs" were supporting the squatters and seeking to incite violence for political gain. According to news reports, syndicate leaders within the market were preventing people from leaving the premises. Cocalero leaders Nelson Palomino and Elsa Malpartida visited the market in the run-up to the eviction in a clear attempt to pressure state authorities to stand down. ¶3. (U) The Santa Anita Market conflict began November 2002, when three thousand informal vendors took over the market and set up shop there. The leader of the protest, Hermino Porras, reportedly earned millions "selling" lots to the vendors over the next several years. According to media reports, most vendors understood they were buying property without proper legal title. At the same, they likely also expected to occupy their market stalls for the long haul. (Comment: Seventy percent of Peru's economically active population, like Santa Anita's squatting vendors, participate in the informal economy. Moreover, much of Lima's recent expansion began as land invasions by squatters coming from outlying provinces. Over time, many squatter neighborhoods have subsequently been converted to formal, even incorporated status. The Santa Anita case was reportedly different because the land is owned by a known entity, namely the city of Lima, which has plans to create a modern formal market in the same space. End Comment.) Despite repeated court orders to leave the market, the vendors refused to budge. The situation came to a head in April with the latest judicial decision. In response, market vendors dug in and swore to resist any attempt to move them. ¶4. (U) Over the last four weeks, in a carefully calibrated tightening of the noose, Peruvian National Police surrounded the market, cutting off water and electricity. Peru's Human Rights Ombudsman's Office visited the site and condemned the protesters for involving children in a potentially violent confrontation. The massive and efficient police operation that ended the standoff on 5/29 proceeded largely without incident. Police seized a number of weapons in the market, including shotguns and homemade bombs. One policeman was injured by a homemade bomb. No children were hurt. Twenty-one protesters were detained. Press coverage of the Police operations was laudatory, accompanied by front-page images of PNP Officers carrying frightened children and infants out of danger. COMMENT: GOP RULE OF LAW AND HUMAN RIGHTS CREDENTIALS BURNISHED -------------- ¶5. (SBU) After the operation was completed, President Garcia publicly praised the National Police for carrying out the operation efficiently, with discipline and without resorting to physical violence. We agree. The operation also showed excellent coordination among different branches and levels of government, and a brilliant public relations strategy. As a result, the government dodged a potentially explosive bullet and emerged with its image and credentials burnished. By refusing to back down in the face of violent protest, it sent a powerful warning to potential protesters that the government will refuse to bow to the demands of the street; and by ensuring no protesters were injured in the denouement, it demonstrated a commitment to protect the human rights of all its citizens, including those seeking to goad it into politically embarrassing actions. Struble