PRESIDENT, FOREIGN MINISTER TALK PERU'S FOREIGN

C O N F I D E N T I A L LIMA 001131 SIPDIS E.O. 12958: DECL: 08/06/2019 TAGS: PGOV PREL PINR PTER PE SUBJECT: PRESIDENT, FOREIGN MINISTER TALK PERU'S FOREIGN RELATIONS, COLOMBIA BASES, AND REGIONAL CONCERNS Classified By: Amb. P Michael McKinley for reasons 1.4b and d. ¶1. (C) Summary: Ambassador McKinley met in late July with President Alan Garcia and spoke separately on several recent occasions with Foreign Minister Jose Garcia Belaunde. Garcia and Belaunde discussed a range of Peruvian foreign policy issues, including the situation in Honduras, Colombian politics and bases, Venezuelan asylum seekers and trade, Ecuador's weak government, outreach to Paraguayan President Lugo, and the status of relations with Chile and Bolivia. In some of the highlights, Belaunde emphasized the importance of a stronger US role in resolving the Honduran crisis, expressed support for Colombian President Uribe on the bases issue, said Peru continued to try to reduce tensions with Bolivia. The Foreign Minister emphasized the importance that Garcia be able to meet with President Obama at the earliest opportunity. End Summary. Honduras Viewed Through Chavez Prism -------------- ¶2. (C) Ambassador had a small informal dinner on July 21 with President Garcia and spoke with Foreign Minister Jose Garcia Belaunde on July 21, July 27th, and August 4th. Both Foreign Minister Belaunde and President Garcia view the Honduras situation in the context of the regional contest with Venezuelan President Hugo Chavez. As such, both view Zelaya's ouster as the first major setback for Chavez's efforts to dominate Latin America and clearly would prefer a solution to the crisis that does not allow Zelaya to return to Honduras with much power. Both the President and his Foreign Minister are disappointed with OAS Secretary General Jose Miguel Insulza's handling of the crisis and believe he has been manipulated by Chavez. They believe he has failed to conduct honest diplomacy in favor of public grandstanding. ¶3. (C) Garcia and the FM praised Secretary Clinton for allowing the OAS to rush in to take the lead on the Honduras crisis but then supporting Costa Rican President Oscar Arias as the principle mediator. At the same time, they think Arias may have reached an impasse, and Belaunde argued that only a more visible USG presence in negotiations can resolve the crisis. In each conversation, Belaunde reiterated the case for a strong and visible US role in defusing the crisis. Comment: The GOP has sought to smooth its sometimes tense relations with Venezuela and Bolivia in the past couple weeks, including by holding a recent Foreign Minister-level meeting with La Paz. Given this context, we doubt that Peru itself is likely to take a more visible or forward-leaning approach in dealing with President Chavez or the Honduran crisis. End Comment. Regional Round Up -------------- ¶4. (C) The President and FM gave their views on the principal challenges in the region: --Colombia: President Garcia said he did not believe Colombian President Alvaro Uribe would run for a third term in office. Belaunde said he believed the resignations of Defense Minister Juan Manuel Santos and Ambassador to London Neomi Sanin also indicated that Uribe would not attempt to hold on to power. Regarding Uribe's visit to discuss the bases issue, Belaunde said Peru supports Colombia, and publicly stated that they are "not traditional military bases" and that "Colombia's sovereignty is respected." Garcia likewise publicly praised Uribe's "efforts to promote the democratic model throughout the continent." --Venezuela: Foreign Minister Belaunde indicated that a Venezuelan backer of opposition leader Manuel Rosales would soon be granted asylum in Peru. Regarding bilateral trade, Belaunde reported that Peru has increased textiles sales to Venezuela since the crisis in the US market, but the GOV refuses to release the $500 million in foreign exchanged needed to pay Peruvian producers. The GOP will continue pushing for payment. --Ecuador: Belaunde stressed the GOP's close relationship with Ecuadorian President Rafael Correa, but emphasized Correa's political weakness and said the US should be careful not to confront or undermine him. Belaunde said Uribe is making a mistake by baiting Correa on the FARC issue. (Ecuador's Foreign Minister is visited Peru on August 5th to discuss bilateral ties and to prepare for presidential talks in October.) --Paraguay: Belaunde discussed his efforts to convince President Garcia to invite Paraguayan President Fernando Lugo to Peru. Lugo himself has requested the visit to demonstrate that he was not enthralled to Venezuela and its alliance of ALBA countries. Garcia, however, remains disinclined. --Bolivia: Belaunde said the GOP is working hard to reduce tensions with Bolivia and keep the relationship as quiet as possible. --Chile: Belaunde and Garcia both view Chilean President Michelle Bachelet and Foreign Minister Mariano Fernandez as unnecessarily provocative towards Peru and are concerned about Chile's continued arms buildup. President Garcia openly hoped for opposition leader Sebastian Pinera to win the presidential election later this year. FM Underscores Symbolic Importance of Garcia-Obama Meeting -------------- -------------- ¶5. (SBU) Belaunde spoke about the importance of having a working level meeting between President Garcia and President Obama. The political struggle for the hearts and minds of Latin America continues, he explained, and President Obama's meetings with Colombian President Uribe and Chilean President Bachelet while leaving President Garcia out of the mix left the impression that Peru was not part of the mainstream. Garcia Belaunde emphasized the symbolic importance of such a meeting, and hoped it could take place in the next few months (either before or after UNGA, which President Garcia did not plan to attend) while Peru continued to enjoy a lull in internal social tensions. Vice Minister Popolizzio reiterated the importance of a Garcia-Obama meeting in a July 31 conversation with Charge. MCKINLEY