PRIME MINISTER BLASTS BOLIVARIAN CENTER IN PUNO

C O N F I D E N T I A L LIMA 002490 SIPDIS SIPDIS E.O. 12958: DECL: 07/12/2027 TAGS: PGOV PHUM PINR PE VE SUBJECT: PRIME MINISTER BLASTS BOLIVARIAN CENTER IN PUNO REF: A. LIMA 2000 ¶B. LIMA 2236 ¶C. LIMA 2319 Classified By: A/POLCON David Boyle, for Reasons 1.4 (c,d) ¶1. (SBU) Summary: Prime Minister Jorge Del Castillo has publicly criticized the Venezuelan-funded Bolivarian Alternative for Latin America and the Caribbean (ALBA) center in Puno as a front for foreign political meddling in Peru and has said ALBA exists "on the margins of the law." Other officials have joined in what has become a chorus of criticism directed at Puno regional president Hernan Fuentes. Defending himself vigorously, Fuentes has insisted that the ALBA center, opened earlier this year, seeks only to increase Latin American solidarity and to improve medical services for the poor. Fuentes also declared Castillo "persona non grata" in Puno. Most Puno politicians see the affray as the result of a blundering regional president trying to redirect local discontent away from his administration's failings. At the same time, the renewed public attention directed to the ALBA center has revealed, once again, Venezuelan efforts to stir unrest in Peru. End Summary -------------- ALBA's Critics -------------- ¶2. (C) On July 8, Prime Minister Del Castillo said the existence of an ALBA center in Puno was "on the margins of the law" and asked Foreign Minister Jose Garcia Belaunde to investigate whether Fuentes had broken Peruvian law by entering into an agreement with a foreign state. (Comment: Garcia Belaunde told Ambassador Struble July 16 that the center probably does not violate any laws and would be difficult to shut down. End Comment) Del Castillo rejected the claim made by President of Venezuela Hugo Chavez that the center's role was merely "symbolic" and insisted ALBA represented a clear example of foreign meddling in Peruvian affairs. Del Castillo told the Ambassador July 9 that in his view, Venezuelan Charge Virily Torres should be expelled for her public association with radical protesters and the ALBA center, although the GOP had not made a final decision on her status. ¶3. (SBU) Other government officials seconded del Castillo's criticisms. Minister of Commerce Mercedes Aaroz said Venezuela had funded the ALBA center to coordinate radical protests against the Garcia administration. Congressman Caesar Zumaesta claimed ALBA's purpose was to slow Peru's 
economic growth and to create opposition to the PTPA. Rolando Sousa, head of the congressional committee on external relations, said Venezuelan money was flowing into the ALBA center to fund the street protests that have broken out in different regions of Peru (reftel C). -------------- ALBA's Defenders -------------- ¶4. (SBU) Fuentes refused to back down in the face of widespread criticism and said that he was an admirer of Chavez and the Bolivarian model of government. He declared del Castillo and President Alan Garcia "persona non grata" in Puno and insisted he would continue to lead street protests, including marches to demand an international highway through Puno. In an interview with poloff on June 7, Fuentes said the real issue was the central government's unwillingness to fund social development in Puno, which had forced him to turn to Venezuela for help (reftel A). Fuentes admitted he was a radical, but a "pragmatic radical." ¶5. (SBU) The head of the Alba center, Marcial Maidona, gave Poloff a two-hour tour of the center on June 7. ALBA is housed in a decaying building two blocks from downtown Puno. Although pictures of Chavez and Castro adorn the walls, the center lacks chairs, telephones, computers, and staff, and every door in the building hangs crooked. Meetings are held in one of two open courtyards. Maidona said the center exists to coordinate medical treatment for the poor as part of Mission Milagros, funded by Venezuela, and to coordinate regional political meetings. Poloff attended one of the meetings, which consisted of municipal representatives from northern Puno arguing over who was in charge of the meeting. -------------- Fuentes - The Immediate Threat -------------- ¶6. (SBU) Residents of Puno, including the regional vice president, congressional representatives, and the opposition, see Fuentes as the immediate threat to democracy in the region. Alberto Quintanilla, who lost the regional election to Fuentes by one percentage point, told poloff that Fuentes has been thrown out of the party that elected him and that four former allies of Fuentes in the 12-member regional legislature had joined the opposition. Mario Justo, vice-president of Puno, said Fuentes was interested in Bolivarianism because he was an "autocrat in training." Puno congressman Yonhoy Lescano said plans are already underway to recall Fuentes. -------------- Venezuela -- The Long-Term Threat -------------- ¶7. (SBU) For many GOP officials and civil society representatives, the ALBA center in Puno provides an example of how Venezuela plans to exploit local discontent to further the cause of Bolivarian revolution. Although hard evidence about Venezuelan funding is lacking, observers note that demonstrations in Puno -- and throughout the region -- have become better organized and financed since ALBA opened. The regional presidents of Loreto and Lambayeque have announced their interest in opening ALBA centers, and in Lambayeque, the Venezuelans repeated the pattern established in Puno by sending more than 100 residents to Caracas for free medical treatment and by offering scholarships to poor students. ¶8. (C) Comment: Local Puno officials expect Fuentes to be recalled in January (by law, he can only be recalled after serving one year in office). Fuentes has, within six months, alienated everyone he works with and has polarized an already fragmented electorate. But the real significance of his term in office is that it reveals Venezuela's strategy of grafting socialist revolution onto localized discontent. Garcia Belaunde and Defense Minister Alan Wagner told the Ambassador that the GOP lacks evidence that Venezuela is funneling money through the Alba center, but both are convinced that Venezuelan funds are being used to destabilize the countryside. What is clear is that the Venezuelans are taking a long-term approach in Puno and elsewhere in Peru, exploiting the weaknesses of regional and municipal governments to fuel popular unrest that they hope, in time, will produce a movement capable of revolutionary change. End Comment. STRUBLE