US embassy cable - 05LIMA3341

UNCLAS SECTION 01 OF 02 LIMA 003341 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: SNAR, PREL, ETRD, PTER, EU, PE 
SUBJECT: EU AMBASSADOR PROVIDES READOUT ON SOUTH AMERICAN 
VISIT OF EU EXTERNAL RELATIONS COMMISSIONER 
 
REF: LIMA 3208 
 
Sensitive But Unclassified.  Please Handle Accordingly. 
 
1.  (SBU)  SUMMARY:  Ambassador met with EU Ambassador Mendel 
Goldstein on 7/27 to convey concerns about statements 
attributed to EU External Relations Commissioner Benita 
Ferrero-Waldner that appeared to criticize U.S. 
counternarcotics policies in the Andes.  Goldstein stated 
that Ferrero-Waldner's trip was designed to send a strong 
political message of the EU's continued interest in the 
region, with the Peru portion focusing on narcotics, trade 
and development assistance.  Goldstein argued that the media 
improperly interpreted Ferrero-Waldner's statements on 
narcotics issues as undercutting USG/GOP drug policies, but 
was not convincing.  He added that in Brazil, a planned 
meeting with President Lula fell through, but agreement was 
reached on holding Ministerial meeting in Brussels 9/2 to 
re-energize EU-MERCOSUR free trade agreement talks.  END 
SUMMARY. 
 
2.  (SBU)  According to Goldstein: 
 
--  Ferrero-Waldner's visit was intended to send a strong 
political message to Latin America as a whole of her personal 
interest in the region, in response to Brussels' perception 
that South America perceives the EU as refocusing its 
attention on Asia to the detriment of the new world. 
 
--  The Brazil portion was not very successful as a planned 
meeting with Lula fell-through due to the latter's domestic 
troubles, and the chief practical outcome was agreement to 
hold a ministerial-level meeting in Brussels on 9/2 in an 
attempt to re-energize the EU-MERCOSUR free trade agreement 
negotiations. 
 
--  The Lima portion was divided between the Andean Community 
of Nations (CAN) and the GOP. 
 
--  Ferrero-Waldner was not able to meet with the CAN 
Presidents because Colombian President Alvaro Uribe requested 
a last-minute shift in the date of the Presidents' meeting 
due to his own trip to Europe, but she did meet with the CAN 
Foreign Ministers. 
 
--  The EU and CAN reached agreement last January on an "FTA 
evaluation process."  They had a follow up meeting in Lima in 
the spring.  The CAN Presidents agreed to meet before 
December to discuss how they can meet the EU's minimal 
conditions for FTA negotiations and to establish a program. 
(COMMENT: Most daunting of the minimal conditions is that 
Andeans have not been able to harmonize tariffs.  END 
COMMENT.)  There will be a third meeting in November either 
in Caracas or Lima.  A mixed EU-CAN commission is to meet in 
December.  If its evaluation is positive, announcement of the 
start of FTA negotiations would likely be made at the May 
2006 EU-Latin America Summit in Vienna. 
 
--  The Peru bilateral sessions were designed to pay tribute 
to the GOP for maintaining an island of stability in the 
Andean region, and the agenda focused on narcotics, trade, 
and the future of development assistance. 
 
--  Ferrero-Waldner received a warm reception, met with 
President Alejandro Toledo and senior officials, and the 
visit as a whole met expectations. 
 
--  The London terrorist attack influenced the narcotics 
discussions.  Toledo referred to them in launching a 
reflection on Peru's experience with terrorism, an experience 
that left him convinced that the problems of narcotics 
trafficking and terrorist violence are firmly linked. 
Ferrero-Waldner agreed and suggested that these links be 
analyzed with a view towards cutting them.  She mentioned EU 
cooperation with the U.S. in the G-8 to find a solution, 
emphasizing the need for a global approach.  She then 
proposed that this be a priority item for the EU-Latin 
America Summit. 
--  On antinarcotics efforts, Ferrero-Waldner called for a 
more "innovative and coherent" approach, one that goes after 
money laundering and precursor chemicals, as well as other 
police actions. 
 
3.  (SBU)  The Ambassador noted that the local media had 
quoted Ferrero-Waldner as saying that Peru and the 
international community had to come up with a better response 
to narcotics than "chasing peasants around," remarks that had 
been interpreted widely as a criticism of eradication of coca 
crops.  The Ambassador told Goldstein this was unfortunate 
because it appeared to drive a wedge between the U.S. and EU 
positions.  The Ambassador added that even more important, 
USG experience is that general development programs that are 
not accompanied by a credible threat that illegal coca crops 
will be eradicated are ineffective in reducing leaf/narcotics 
production. 
 
4.  (SBU)  Goldstein claimed that Ferrero-Waldner did not say 
anything against eradication, though he admitted she observed 
that it is not having the results that were expected.  He 
said that she also expressed concern about the social aspect 
of the cocalero condition, declaring that they should not 
feel stigmatized.  The EU, Goldstein continued, believes that 
income replacement in coca regions is difficult, given the 
poor agricultural conditions that are usually found. 
Therefore, general development is needed to generate 
alternatives. 
 
5.  (SBU)  COMMENT:  Despite Goldstein's effort to minimize 
differences, we believe the press accurately captured what 
Peruvian authorities think they heard from Ferrero-Waldner. 
The EU office in Lima generally has strong donor coordination 
with us and Goldstein does not/not try to play up our 
disagreements in the press.  However, other members of the EU 
office regularly try to put light between themselves and our 
more muscular policy, something that does cause difficulties 
for us, particularly in the coca zones.  END COMMENT. 
STRUBLE