US embassy cable - 05LIMA2185

C O N F I D E N T I A L SECTION 01 OF 02 LIMA 002185 
 
SIPDIS 
 
E.O. 12958: DECL: 05/11/2015 
TAGS: PGOV, MARR, ETRD, ECON, PE 
SUBJECT: REGIONAL PRESIDENT YEHUDE SIMON:  MOVING AHEAD ON 
NEW HORIZONS; UNLIKELY TO RUN FOR PRESIDENT 
 
 
Classified By: Ambassador Curtis Struble for Reason 1.4 (B, D) 
 
1. (C) SUMMARY.  Lambayeque Regional President Yehude Simon 
briefed the Ambassador 5/4 on the extensive consultations he 
has carried out to smooth the way for the SOUTHCOM New 
Horizons Exercise anticipated for next year.  Simon expressed 
confidence he would win a referendum on creating a northern 
macro-region together with Piura and Tumbes; he said this 
would speed the pace of foreign investment, with the U.S. 
being welcome to participate.  Simon voiced support for the 
Andean Free Trade Agreement, although he has concerns with 
agriculture and IPR.  He said it was very unlikely he would 
run for President of Peru in 2006.  END SUMMARY. 
 
2. (U) The Ambassador met with Lambayeque Regional President 
Yehude Simon in Chiclayo on May 4.  Simon began by expressing 
satisfaction with the nine-day MEDRETE (Medical Readiness 
Training Exercise) being carried out in Chiclayo and environs 
by the 96th Medical Group from Maxwell Air Force Base.  Simon 
explained that he had not visited the exercise himself 
because he didn't want to politicize the event by giving the 
impression he was taking credit for it.  Nonetheless, he had 
seen to it that the MEDRETE was well-publicized, and had 
publicly voiced his support for the initiative. 
 
3. (C) Simon also commented on his efforts to prepare the way 
for the SOUTHCOM New Horizons Exercise (NH-06) which may take 
place the second half of next year.  He said he had consulted 
with Defense Minister Chiabra and with the local military 
commander, and felt he had a good rapport with each.  He has 
also reached out to NGOs, in particular Peru Solidarity Forum 
(which has done important work in Lambayeque with European 
and Japanese donors), and the Legal Defense Institute (IDL). 
He said IDL head Ernesto de la Jara supported carrying out 
NH-06 in Lambayeque, as did Social Democratic Party leader 
Susana Villaran. 
 
4. (C) Simon said the congressional delegation from 
Lambayeque was also on board, and even leftist Congessman 
Javier Diez Canseco, although opposed to NH-06, would not 
undermine it.  (NOTE:  Diez Canseco was primarily responsible 
for torpedoing a proposed New Horizons Exercise in 2003, 
denouncing it as an attempt to establish a U.S. military base 
in Peru's coca zone.  END NOTE.)  In discussions with local 
mayors and school directors, Simon said he had received an 
85-90 percent positive response.  Once a public announcement 
of NH-06 became imminent, he also intended to brief a 
sympathetic group of media executives.  The Ambassador 
confirmed that planning for NH-06 was still on track, and 
that once all of the funding commitments were secured 
(hopefully in the near future), we would be prepared to join 
in a public roll-out. 
 
5. (SBU) The Ambassador asked about prospects for creating a 
macro-region in the north, which would lend a measure of 
unity to the regional governments' dealings with the national 
government.  He said that in a visit to neighboring 
Cajamarca, he had noted differences between the attitudes of 
regional officials, who opposed a macro-region, and local 
businessmen, who saw the need for integration.  Simon said 
that the referendum on a macro-region was set to take place 
in October, and that this would include participation by 
Cajamarca, since a sufficient number of voters had signed on 
to petitions. 
 
6. (C) Simon said he had always had two strategies for the 
formation of a macro-region, one looking east toward 
Cajamarca and Amazonas, and the other looking north to Piura 
and Tumbes.  No matter what happened with Cajamarca, he 
expected the fusion with Piura and Tumbes to take place, 
despite initial opposition at the national level from the 
APRA party, which controls both regional presidencies.  APRA 
sees Simon's Humanist Movement as a serious political 
competitor in the north.  APRA leader Alan Garcia had, Simon 
asserted, thought he could block the macro-region but was 
estranged from fellow party member Cesar Trelles, Regional 
President of Piura.  Trelles decided to buck orders from 
above.  Garcia now understood his poor position and had just 
asked to meet with Simon.  (The latter had agreed, but the 
meeting hadn't taken place at the time of the Ambassador's 
meeting with Simon.)  Simon felt a macro-regional 
administration would speed even further the growing pace of 
foreign investment in northern Peru, and said he welcomes 
greater U.S. presence as part of this process. 
 
7. (C) The Ambassador gave an overview of the status of 
negotiations on the Andean Free Trade Agreement (FTA).  Simon 
said he had some concerns about how the FTA would affect 
agriculture and intellectual property rights, but overall he 
was a supporter.  He said he had told Prime Minister Ferrero 
that the GOP needs to do a better job of coordinating its 
message on the FTA, and he emphasized the need to focus on 
the implementation phase, in particular to ensure that fears 
about small companies being eaten up by larger ones are not 
realized. 
 
8. (C) The Ambassador asked about the 2006 presidential race, 
and whether an electoral coalition might develop under the 
leadership of ex-President Valentin Paniagua (Popular Action 
Party - AP).  Simon said he had spoken to Paniagua three days 
earlier.  Simon's analysis was that  Paniagua was an honest 
man and was seen as a conciliator, but his party was weak, 
and brought very little to the table in terms of being able 
to lead a coalition.  The conventional wisdom in Peru, 
however, was that parties win elections, not coalitions. 
Paniagua had told Simon that despite his personal interest in 
a coalition, his backers in AP, particularly party President 
Victor Andres Garcia Belaunde, wanted to go it alone, 
calculating it would enhance their Congressional 
representation. 
 
9. (C) Simon said he was aware of the interest in his own 
plans for 2006 and whether he would take a "leap into the 
void" of a presidential campaign, but commented that this was 
very unlikely.  His priority was to fortify what he had begun 
with the regional government, gain more experience in guiding 
a sucessful administration in Lambayeque, and work to build 
the Humanist Party's strength in local elections.  Susana 
Villaran and Drago Kisic (President of the National 
Independent Party) had urged him to head up a national 
ticket; he intended to remain allied with them, but said 
there was little chance he would run for President. 
 
10. (C) COMMENT:  As chief executive of the Lambayeque 
Region, Yehude Simon gets rave reviews from all save his most 
entrenched political opponents.  He is a committed and 
compassionate leftist, but a practical manager as well, who 
seeks out private investment as a means to improve the lot of 
the region's populace.  His political standing makes him an 
ideal choice for hosting the New Horizons Exercise.  Simon's 
inclination toward sitting out the 2006 presidential election 
is probably sound, as he needs more seasoning and national 
exposure to be ready for prime time.  END COMMENT. 
STRUBLE