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:
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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
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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