OLLANTA HUMALA CLAIMS HE CAN SAVE PERU FROM

C O N F I D E N T I A L LIMA 001108 SIPDIS E.O. 12958: DECL: 06/27/2018 TAGS: PGOV PREL PINR PE SUBJECT: OLLANTA HUMALA CLAIMS HE CAN SAVE PERU FROM EXTREMISTS REF: LIMA 1081 Classified By: Amb. P Michael McKinley for reasons 1.b and d. ¶1. (C) Summary: Ambassador McKinley met with opposition Peruvian Nationalist Party (PNP) leader Ollanta Humala and his wife (and advisor) Nadine Heredia June 18 for a cordial two-hour discussion. Humala argued that the Garcia government is neglecting Peru's mounting social concerns and needs to find pragmatic solutions to prevent the spread of conflict. He said the recent protests in Moquegua over the allocation of mining royalties (canon) broke out after the government first ignored the problem and then lost control. Humala called for "pragmatic" solutions to mounting social conflicts in the mining sector and proposed to increase taxes on mining profits and to improve mining canon distribution among regions. Asked about the possible impact on juridical security and investment, Ollanta said companies have no security if social conflicts can shut down production. Humala claimed to favor free trade but lamented the irony that the US Congress had done more to protect Peru's labor and environmental norms in the FTA framework than had Peru's own Congress. Turning to constitutional reform, Ollanta said the 1993 Constitution was illegitimate and called for the return of the 1979 Constitution. Ambassador McKinley closed the conversation by addressing Humala's concerns about the New Horizons military-humanitarian mission currently in progress in Ayacucho. On June 25th, the Ambassador saw Humala again at a dipomatic function, and Humala endorsed the Ambassador's upcoming trip to Ayacucho toexplain New Horizons to a skeptical audience, although he made clear that he stuck to his concerns. End Summary. Cordial Atmospherics -------------- ¶2. (C) Ambassador McKinley received opposition Peruvian Nationalist Party (PNP) leader Ollanta Humala and his wife Nadine Heredia at his residence on June 18th for a cordial and broad-ranging two-hour conversation. Ollanta sat relaxed and attentive throughout, making his points in a calm, non-confrontational tone. Nadine -- the PNP's Secretary for International Relations and effectively Ollanta's "Chief of Staff" and principal political advisor -- sat on the edge of her seat with a serious and guarded facial expression at first, intermittently joining the discussion to clarify Ollanta's comments. She let down her guard and warmed as the discussion drew to a close. Humala: I Can Save Peru From Radicalism -------------- ¶3. (C) Humala argued throughout the conversation that Alan Garcia's government is neglecting Peru's mounting social concerns and that, absent pragmatic solutions, regional conflicts like the recent violent protests in Moquegua region would spread. Ollanta expressed concern about this prospect and warned that dangerous, anti-systemic radicals could ultimately threaten the stability of the state. Declaring himself "a nationalist, not a leftist", Humala said that he represents the pragmatic change that Peru needs. (Comment: Humala did not mention credible reports that he often seeks to stir up, for political gain, the very social conflict he told us he wants to prevent. End Comment.) Conflict in Moquegua Region -------------- ¶4. (C) Humala cited the recent conflict in Moquegua over regional mining canon allocations to underscore his general thesis on the government's neglect of social problems. Moquegua's leadership, he said, had repeatedly presented their complaints to the government during the previous year but received no response. The government finally paid attention after the first week of protests when roadblocks began to cause shortages in neighboring Tacna region. He warned that Moquegua's elected leaders had lost credibility with the local populace because of their inability to win