US embassy cable - 05LIMA3476

UNCLAS LIMA 003476 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, PINR, PE 
SUBJECT: APPOINTMENT OF FERNANDO OLIVERA AS FOREIGN 
MINISTER SPARKS CABINET CRISIS 
 
REF: LIMA 3416 
 
1.  (U) SUMMARY:  President Alejandro Toledo appointed 
coalition ally Fernando Olivera as Foreign Minister on 8/11; 
Prime Minister Carlos Ferrero and Housing Minister Carlos 
Bruce resigned in response.  Health Minister Pilar Mazzetti 
and Justice Minister Eduardo Salhuana reportedly boycotted 
Olivera's swearing-in ceremony and may follow suit.  Toledo 
has refused to accept Ferrero's "irrevocable" resignation, 
and is trying to forge a rapprochement within the Cabinet and 
rally his Peru Posible party in support.  The Cabinet crisis 
raises governability questions (a new Prime Minister requires 
congressional ratification within 30 days), creates tenstions 
within the governing coalition and is certain to re-energize 
the opposition parties.  END SUMMARY. 
 
2.  (U) Fernando Olivera, leader of the Independent 
Moralizing Front (FIM) Party, was sworn in by Toledo as 
Minister of Foreign Relations on 8/11.  Prime Minister 
Ferrero and Housing Minister Bruce submitted their 
"irrevocable" resignations in response.  The President 
reportedly has refused to accept Ferrero's resignation; it is 
unclear whether he has accepted Bruce's.  Ferrero, Bruce, and 
Health Minister Mazzetti did not/not attend Olivera's 
swearing-in ceremony, and there are conflicting reports that 
Justice Minister Salhuana also boycotted the event. 
 
3.  (U)  Toledo reportedly visited the Prime Minister's 
Office to lobby Ferrero personally to stay on, without 
success.  On the afternoon of 8/11, the President called on 
legislators of his Peru Posible party to a meeting at the 
Presidency to address the crisis. 
 
4.  (U)  COMMENT:  Toledo's intention to name Olivera Foreign 
Minister has been public knowledge for weeks, sparking nearly 
unanimous negative reactions from the media, opposition 
parties, and even within his Peru Posible party.  Olivera's 
decision to defend Cuzco Regional President Carlos Cuaresma's 
coca ordinance, which sought to under cut the GOP's 
antinarcotics policy, led to open confrontation with Ferrero 
and Bruce and raised further doubts about the FIM leader's 
suitability for a ministerial post (Reftel).  The President's 
decision to go ahead with Olivera's appointment nonetheless 
has now resulted in a Cabinet crisis that creates 
governability questions (a new Prime Minister will need to 
obtain congressional approval within 30 days of nomination or 
the Cabinet is dissolved), heightens political tensions 
between Peru Posible and its FIM coalition ally, and is 
certain to re-energize opposition attacks on the GOP.  The 
next few days should determine whether Toledo can somehow 
fashion a rapprochement within the Cabinet and maintain the 
governing coalition.  Embassy will continue to follow events 
cloesely.  END COMMENT. 
STRUBLE