HUMALA'S LIAISON TO BUSINESS SECTOR MEETS WITH THE AMBASSADOR

Reference ID 06LIMA1247
Created 2006-03-30 21:09
Released 2011-02-21
Classification CONFIDENTIAL
Origin Embassy Lima


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DE RUEHPE #1247/01 0892152
ZNY CCCCC ZZH
P 302152Z MAR 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 9508
INFO RUEHBO/AMEMBASSY BOGOTA 3178
RUEHCV/AMEMBASSY CARACAS 9239
RUEHLP/AMEMBASSY LA PAZ MAR QUITO 0176
RUEHSG/AMEMBASSY SANTIAGO 0351
RUEHBR/AMEMBASSY BRASILIA 6618
RUEHGL/AMCONSUL GUAYAQUIL 4175
RHMFISS/CDR USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC

C O N F I D E N T I A L LIMA 001247

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/20/2016
TAGS: PGOV PINR ETRD PE
SUBJECT: HUMALA'S LIAISON TO BUSINESS SECTOR MEETS WITH THE
AMBASSADOR

REF: LIMA 1126

Classified By: Ambassador Curt Struble....
id: 58820
date: 3/30/2006 21:52
refid: 06LIMA1247
origin: Embassy Lima
classification: CONFIDENTIAL
destination: 06LIMA1126
header:
VZCZCXYZ0016
PP RUEHWEB

DE RUEHPE #1247/01 0892152
ZNY CCCCC ZZH
P 302152Z MAR 06
FM AMEMBASSY LIMA
TO RUEHC/SECSTATE WASHDC PRIORITY 9508
INFO RUEHBO/AMEMBASSY BOGOTA 3178
RUEHCV/AMEMBASSY CARACAS 9239
RUEHLP/AMEMBASSY LA PAZ MAR QUITO 0176
RUEHSG/AMEMBASSY SANTIAGO 0351
RUEHBR/AMEMBASSY BRASILIA 6618
RUEHGL/AMCONSUL GUAYAQUIL 4175
RHMFISS/CDR USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC


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C O N F I D E N T I A L LIMA 001247

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/20/2016
TAGS: PGOV PINR ETRD PE
SUBJECT: HUMALA'S LIAISON TO BUSINESS SECTOR MEETS WITH THE
AMBASSADOR

REF: LIMA 1126

Classified By: Ambassador Curt Struble. Reason: 1.4(d).

¶1. (C) SUMMARY: Salomon Lerner Ghitis, ultranationalist
"outsider" Union por el Peru (UPP) party presidential
candidate Ollanta Humala's unofficial liaison to the business
community, provided his impressions of Humala's policies,
personality and advisors during a meeting with the Ambassador
on March 24. Lerner described Humala as honest, reasonable
and not anti-American, although most of his advisors are.
The latter, Lerner explained, feed "The Commandante's"
paranoia, as evidenced by Humala's buying into a blogger's
claim that the USG, through its funding of human rights
organizations, was behind the allegations that Humala
committed human rights abuses when serving in the Huallaga
Valley in the early 1990s. Lerner tried to be reassuring
about Humala's intentions to "renegotiate" tax stability
agreements, but had little to say other than to say that the
UPP candidate wanted foreign companies to share with Peru
their windfall profits from high prices for natural
resources. While admitting that he was ignorant regarding
Humala's coca policy, Lerner thought it was designed by
Hernando de Soto. Lerner also mentioned that Humala has
expressed interest in visiting the United States between the
first and second round of presidential balloting. END
SUMMARY.

¶2. (C) On March 24, the Ambassador held an extended
conversation with Salomon Lerner Ghitis, Ollanta Humala,s
earliest prominent supporter within the Peruvian business
community. Lerner is Humala,s unofficial liaison with
business groups and has also been involved in some of the
candidate,s meetings with foreign officials. The Ambassador
noted that he had requested a meeting with Humala which had
been scheduled for March 19. A few hours before the
appointed time, Humala,s wife called to say that it would
have to be postponed until Ollanta met with his political
advisors; the Embassy had heard nothing since. The
Ambassador said that we were prepared to wait but it was
looking as though there was more to the delay than campaign
obligations, inviting Lerner s insights.

¶3. (C) Lerner said that Humala is not anti-American but
some people around him are. They feed his paranoia. Most
recently, they had passed to him press articles alleging that
the USG is financing the Human Rights groups -- particularly
the Instituto de Defensa Legal (IDL) -- that have accused
Humala of serious abuses against peasants in Madre Mia
(Huallaga Valley) when he was stationed there with the Army
in the early 1990s. This had led Humala to conclude that he
should not meet with the U.S. Ambassador at this time.
Lerner also mentioned the frequent criticism of Humala by
former Minister of Interior Fernando Rospigliosi, whose firm
CHS receives USG funding. The "Comandante," Lerner said,
also was resentful over distorted statements by some
businessmen he had met with, particularly Carlos del Solar
who heads the Mining and Energy Society and represents Hunt
Oil in the Camisea gas export consortium. Humala believes
that the campaign is about to get even dirtier because
Lourdes Flores has just hired J. J. Rendon, who Lerner termed
an anti-Chavista tied to Venezuela,s COPEI. (Lerner
asserted that Rendon is being paid by COPEI to work for
Flores.) In sum, Lerner concluded, Humala believes that he
has to really watch himself in the runup to the April 9 first
round.

¶4. (C) The Ambassador said that he had seen the press
reports alleging that we are behind the human rights
accusations against Humala. The source for these charges
appears to be blogger Jeremy Bigwood, who claims that the
National Endowment for Democracy, AID, and AID,s Office of
Transition Initiatives finances and controls both the
Washington Office on Latin America (WOLA) and IDL, who have
pushed the human rights abuse charges. Our support of NGOs
is conducted in a very transparent way*we publicize the
amount of grants and their purpose. The Ambassador said that
he was unaware of whether NED had contributed money to WOLA,
but anyone who knows the organization would find allegations
that the USG controls it unreal; WOLA is a prominent critic
of many USG programs and policies in Latin America. IDL, the
Ambassador noted, had been a contractor for AID,s judicial

reform program, but funding ran out for the activity last
September. IDL receives funding from many sources and like
WOLA has often criticized the USG posture on issues like the
International Criminal Court. (Lerner interjected a comment
here that Humala agrees with our reservations about the ICC.)
The Ambassador noted that he represents the U.S. Government,
not NGOs, a Peruvian political party nor particular
businessmen, who are responsible for their actions. He would
wait until Humala found it convenient to meet, but very much
regretted that the candidate was making a decision based upon
bad information. Lerner said he would talk to Humala and
suggest that he reconsider.

¶5. (C) Turning to his own association with the Humala camp,
Lerner said that he has repeatedly told the candidate that he
does not want a position in an eventual government. Lerner
thought that had given him greater credibility with Ollanta,
who recognizes that many who are rushing into his camp are
looking for patronage. Lerner said that he believes Humala
is honest and reasonable, but added that Humala is untested
and this assessment could be wrong. There are people around
Humala who are low quality and worrisome, Lerner said; he is
trying to orient Humala in a good direction. When Humala
concludes that someone is incapable he does act decisively to
remove the person. Lerner,s informal role has been to
facilitate contact between the candidate and the business
community. He had helped set up meetings with the National
Industrial Society and with Spanish businessmen and was
involved in some of the planning or facilitation of foreign
travel. In that connection Lerner mentioned that Humala is
now thinking of visiting the United States between the first
and second rounds.

¶6. (C) The Ambassador asked about Humala,s call to revise
the juridical and tax stability agreements that underpin
large foreign investments in Peru. Lerner said that Humala
has repeatedly stated that he will not expropriate nor
nationalize businesses. He will "suggest" that companies
which have signed tax stability agreements when oil, to cite
an example, was 15 dollars a barrel versus its current value
of 60 dollars a barrel either pay more in royalties or
contribute to the development of Peru,s petrochemical
industry. As he did during Humala's recent meeting with EU
Ambassadors (Reftel), Lerner implied that this would not/not
be a big change because 85 out of 194 stability agreements
had been modified in the past four years. The Ambassador
said that to his knowledge such modifications had happened
when companies were making significant new capital
investments. Lerner conceded the point while adding that
modifications had also been sought when foreign companies
like Doe Run argued that they could not meet their
obligations.

¶7. (C) Lerner admitted that he knew too little about the
coca issue to clarify Humala,s thinking other than to say
that the candidate,s proposal for a huge rural/alternative
development program is one he got from famed Peruvian
economist Hernando de Soto. The latter told Humala that he
has a fully fleshed out plan that he had developed in the
1980s. Lerner termed "nuts" the proposal, floated by leading
UPP Congressional candidate Daniel Abugattas, to use coca
powder as a nutritional supplement in the bread given to
schoolchildren.

¶8. (C) Lerner said that in private conversations Humala has
expressed firm confidence that he can eliminate the "Artemio"
Sendero Luminoso column in 90 days. The Armed Forces know
where Artemio is, Humala has claimed, they just need
determined and firm leadership to deal with the problem.

¶9. (C) COMMENT: Humala,s core group of advisors embraces
both prickly ex-military nationalists and members of Peru,s
old left. Both groups harbor deep suspicions of the United
States and are inclined to view us through a conspiratorial
lens. We have important substantive differences with the
candidate on issues like the Free Trade Agreement and counter
narcotics policies, and we work with local allies to defend
our viewpoint. That gives broad latitude for conspiracy
theories within the Humala camp. Ollanta himself is trying
to reassure voters that he will have productive relations
with the U.S.: his most recent statement to that effect was
made over the past weekend. At almost the same time,

however, his First Vice Presidential candidate, Gonzalo
Garcia, responded to a reporter,s question about an alleged
threat by Sendero Luminoso to oppose an Humala government in
the following way: "In the final weeks of an electoral
process where the candidate who is supported by the United
States Embassy is not winning, the statement of Sendero
Luminoso appears. This is a smoke screen, as is well known
by all, to create fear in the electorate and seek conditions
for a response to fear." END COMMENT.
STRUBLE

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Source: Wikileaks